Investments in Unconsolidated Affiliated Companies

9 Months Ended

Sep. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Affiliated Companies

Investments in unconsolidated affiliated companies

Combined financial information of the unconsolidated affiliated companies accounted for by the equity method (generally on a lag of 3 months or less) was as follows:

Results of Operations of unconsolidated affiliated companies: (Millions of dollars)	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Sales	$	205		$	453		$	558		$	1,253
Cost of sales	166			357			437			974
Gross profit	$	39		$	96		$	121		$	279
Profit (loss)	$	(10	)	$	(7	)	$	(2	)	$	(17	)

Financial Position of unconsolidated affiliated companies: (Millions of dollars)	September 30, 2015		December 31, 2014
Assets:
Current assets	$	506	$	716
Property, plant and equipment – net	187		653
Other assets	198		557
	891		1,926
Liabilities:
Current liabilities	298		518
Long-term debt due after one year	206		867
Other liabilities	13		215
	517		1,600
Equity	$	374	$	326

Caterpillar’s investments in unconsolidated affiliated companies: (Millions of dollars)	September 30, 2015		December 31, 2014
Investments in equity method companies	$	188	$	248
Plus: Investments in cost method companies	43		9
Total investments in unconsolidated affiliated companies	$	231	$	257

The changes in the 2015 results of operations, financial position and investments in equity method companies noted above are primarily related to the sale of Caterpillar's 35 percent equity interest in the third party logistics business, formerly Caterpillar Logistics Services LLC. In February 2015, we sold our interest to an affiliate of The Goldman Sachs Group, Inc. and investment funds affiliated with Rhône Capital LLC for $177 million, which was comprised of $167 million in cash and a $10 million note receivable included in Long-term receivables - trade and other in the Consolidated Statement of Financial Position. As a result of the sale, we recognized a pretax gain of $120 million (included in Other income (expense)) and derecognized the carrying value of our noncontrolling interest of $57 million, which was previously included in Investments in unconsolidated affiliated companies in the Consolidated Statement of Financial Position. The gain on the disposal is included as a reconciling item between Segment profit and Consolidated profit before taxes. The sale of this investment supports Caterpillar's increased focus on growth opportunities in its core businesses.