Segment Information (Tables)

9 Months Ended

Sep. 30, 2015




Reportable Segments
Three Months Ended September 30,
(Millions of dollars)
	2015
	External sales and revenues		Inter- segment sales and revenues		Total sales and revenues		Depreciation and amortization		Segment profit			Segment assets at September 30		Capital expenditures
Construction Industries	$	3,792	$	34	$	3,826	$	118	$	378		$	5,712	$	54
Resource Industries	1,796		93		1,889		158		(68		)	8,682		66
Energy & Transportation	4,213		417		4,630		161		635			8,670		160
Machinery, Energy & Transportation	$	9,801	$	544	$	10,345	$	437	$	945		$	23,064	$	280
Financial Products Segment	752		—		752		210		207			35,414		359
Total	$	10,553	$	544	$	11,097	$	647	$	1,152		$	58,478	$	639

	2014
	External sales and revenues		Inter- segment sales and revenues		Total sales and revenues		Depreciation and amortization		Segment profit			Segment assets at December 31		Capital expenditures
Construction Industries	$	4,471	$	67	$	4,538	$	129	$	483		$	6,596	$	82
Resource Industries	2,172		105		2,277		172		122			9,497		65
Energy & Transportation	5,585		570		6,155		165		1,151			8,470		146
Machinery, Energy & Transportation	$	12,228	$	742	$	12,970	$	466	$	1,756		$	24,563	$	293
Financial Products Segment	851		—		851		229		220			37,011		427
Total	$	13,079	$	742	$	13,821	$	695	$	1,976		$	61,574	$	720




Reportable Segments
Nine Months Ended September 30,
(Millions of dollars)
	2015
	External sales and revenues		Inter- segment sales and revenues		Total sales and revenues		Depreciation and amortization		Segment profit		Segment assets at September 30		Capital expenditures
Construction Industries	$	12,928	$	130	$	13,058	$	359	$	1,705	$	5,712	$	139
Resource Industries	5,715		268		5,983		482		17		8,682		134
Energy & Transportation	13,519		1,418		14,937		477		2,527		8,670		527
Machinery, Energy & Transportation	$	32,162	$	1,816	$	33,978	$	1,318	$	4,249	$	23,064	$	800
Financial Products Segment	2,332		—		2,332		638		618		35,414		995
Total	$	34,494	$	1,816	$	36,310	$	1,956	$	4,867	$	58,478	$	1,795

	2014
	External sales and revenues		Inter- segment sales and revenues		Total sales and revenues		Depreciation and amortization		Segment profit		Segment assets at December 31		Capital expenditures
Construction Industries	$	14,942	$	198	$	15,140	$	394	$	1,845	$	6,596	$	225
Resource Industries	6,536		318		6,854		514		379		9,497		165
Energy & Transportation	15,536		1,706		17,242		483		3,012		8,470		317
Machinery, Energy & Transportation	$	37,014	$	2,222	$	39,236	$	1,391	$	5,236	$	24,563	$	707
Financial Products Segment	2,502		—		2,502		665		704		37,011		1,206
Total	$	39,516	$	2,222	$	41,738	$	2,056	$	5,940	$	61,574	$	1,913

Reconciliation of Sales and revenues:



Reconciliation of Sales and revenues:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments				Consolidated Total
Three Months Ended September 30, 2015
Total external sales and revenues from reportable segments	$	9,801		$	752	$	—			$	10,553
All Other operating segments	506			—		—				506
Other	(22		)	20		(95		)	¹	(97		)
Total sales and revenues	$	10,285		$	772	$	(95	)		$	10,962

Three Months Ended September 30, 2014
Total external sales and revenues from reportable segments	$	12,228		$	851	$	—			$	13,079
All Other operating segments	583			—		—				583
Other	(53		)	24		(84		)	¹	(113		)
Total sales and revenues	$	12,758		$	875	$	(84	)		$	13,549
¹ Elimination of Financial Products revenues from Machinery, Energy & Transportation.



Reconciliation of Sales and revenues:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments				Consolidated Total
Nine Months Ended September 30, 2015
Total external sales and revenues from reportable segments	$	32,162		$	2,332	$	—			$	34,494
All Other operating segments	1,729			—		—				1,729
Other	(62		)	58		(238		)	¹	(242		)
Total sales and revenues	$	33,829		$	2,390	$	(238	)		$	35,981

Nine Months Ended September 30, 2014
Total external sales and revenues from reportable segments	$	37,014		$	2,502	$	—			$	39,516
All Other operating segments	1,720			—		—				1,720
Other	(92		)	55		(259		)	¹	(296		)
Total sales and revenues	$	38,642		$	2,557	$	(259	)		$	40,940
¹ Elimination of Financial Products revenues from Machinery, Energy & Transportation.

Reconciliation of Consolidated profit before taxes:



Reconciliation of Consolidated profit before taxes:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidated Total
Three Months Ended September 30, 2015
Total profit from reportable segments	$	945		$	207		$	1,152
All Other operating segments	196			—			196
Cost centers	58			—			58
Corporate costs	(376		)	—			(376		)
Timing	38			—			38
Restructuring and related costs	(101		)	—			(101		)
Methodology differences:
Inventory/cost of sales	(22		)	—			(22		)
Postretirement benefit expense	(78		)	—			(78		)
Financing costs	(128		)	—			(128		)
Equity in (profit) loss of unconsolidated affiliated companies	4			—			4
Currency	(157		)	—			(157		)
Other income/expense methodology differences	(51		)	—			(51		)
Other methodology differences	(16		)	(1		)	(17		)
Total consolidated profit before taxes	$	312		$	206		$	518

Three Months Ended September 30, 2014
Total profit from reportable segments	$	1,756		$	220		$	1,976
All Other operating segments	228			—			228
Cost centers	31			—			31
Corporate costs	(408		)	—			(408		)
Timing	(125		)	—			(125		)
Restructuring costs	(81		)	—			(81		)
Methodology differences:
Inventory/cost of sales	6			—			6
Postretirement benefit expense	(84		)	—			(84		)
Financing costs	(136		)	—			(136		)
Equity in (profit) loss of unconsolidated affiliated companies	(4		)	—			(4		)
Currency	39			—			39
Other income/expense methodology differences	(55		)	—			(55		)
Other methodology differences	(9		)	3			(6		)
Total consolidated profit before taxes	$	1,158		$	223		$	1,381



Reconciliation of Consolidated profit before taxes:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidated Total
Nine Months Ended September 30, 2015
Total profit from reportable segments	$	4,249		$	618		$	4,867
All Other operating segments	638			—			638
Cost centers	139			—			139
Corporate costs	(1,307		)	—			(1,307		)
Timing	15			—			15
Restructuring and related costs	(226		)	—			(226		)
Methodology differences:
Inventory/cost of sales	(30		)	—			(30		)
Postretirement benefit expense	(301		)	—			(301		)
Financing costs	(394		)	—			(394		)
Equity in (profit) loss of unconsolidated affiliated companies	—			—			—
Currency	(257		)	—			(257		)
Other income/expense methodology differences	(48		)	—			(48		)
Other methodology differences	(33		)	2			(31		)
Total consolidated profit before taxes	$	2,445		$	620		$	3,065

Nine Months Ended September 30, 2014
Total profit from reportable segments	$	5,236		$	704		$	5,940
All Other operating segments	686			—			686
Cost centers	105			—			105
Corporate costs	(1,201		)	—			(1,201		)
Timing	(205		)	—			(205		)
Restructuring costs	(344		)	—			(344		)
Methodology differences:
Inventory/cost of sales	29			—			29
Postretirement benefit expense	(304		)	—			(304		)
Financing costs	(373		)	—			(373		)
Equity in (profit) loss of unconsolidated affiliated companies	(6		)	—			(6		)
Currency	16			—			16
Other income/expense methodology differences	(186		)	—			(186		)
Other methodology differences	(13		)	(1		)	(14		)
Total consolidated profit before taxes	$	3,440		$	703		$	4,143

Reconciliation of Restructuring costs:

As noted above, restructuring and related costs are a reconciling item between Segment profit and Consolidated profit before taxes. Had we included the amounts in the segments' results, the profit would have been as shown below:



Reconciliation of Restructuring and related costs:
(Millions of dollars)	Segment profit			Restructuring and related costs			Segment profit with restructuring and related costs
Three Months Ended September 30, 2015
Construction Industries	$	378		$	(22	)	$	356
Resource Industries	(68		)	(40		)	(108		)
Energy & Transportation	635			(10		)	625
Financial Products Segment	207			—			207
All Other operating segments	196			(16		)	180
Total	$	1,348		$	(88	)	$	1,260

Three Months Ended September 30, 2014
Construction Industries	$	483		$	(30	)	$	453
Resource Industries	122			(31		)	91
Energy & Transportation	1,151			(5		)	1,146
Financial Products Segment	220			—			220
All Other operating segments	228			(12		)	216
Total	$	2,204		$	(78	)	$	2,126



Reconciliation of Restructuring and related costs:
(Millions of dollars)	Segment profit		Restructuring and related costs			Segment profit with restructuring and related costs
Nine Months Ended September 30, 2015
Construction Industries	$	1,705	$	(61	)	$	1,644
Resource Industries	17		(83		)	(66		)
Energy & Transportation	2,527		(24		)	2,503
Financial Products Segment	618		—			618
All Other operating segments	638		(35		)	603
Total	$	5,505	$	(203	)	$	5,302

Nine Months Ended September 30, 2014
Construction Industries	$	1,845	$	(257	)	$	1,588
Resource Industries	379		(52		)	327
Energy & Transportation	3,012		(11		)	3,001
Financial Products Segment	704		—			704
All Other operating segments	686		(18		)	668
Total	$	6,626	$	(338	)	$	6,288

Reconciliation of Assets:



Reconciliation of Assets:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidating Adjustments			Consolidated Total
September 30, 2015
Total assets from reportable segments	$	23,064		$	35,414		$	—		$	58,478
All Other operating segments	2,675			—			—			2,675
Items not included in segment assets:
Cash and short-term investments	4,808			—			—			4,808
Intercompany receivables	1,172			—			(1,172		)	—
Investment in Financial Products	4,160			—			(4,160		)	—
Deferred income taxes	3,552			—			(700		)	2,852
Goodwill and intangible assets	3,583			—			—			3,583
Property, plant and equipment – net and other assets	1,221			—			—			1,221
Operating lease methodology difference	(211		)	—			—			(211		)
Liabilities included in segment assets	8,608			—			—			8,608
Inventory methodology differences	(2,629		)	—			—			(2,629		)
Other	(357		)	—			(59		)	(416		)
Total assets	$	49,646		$	35,414		$	(6,091	)	$	78,969

December 31, 2014
Total assets from reportable segments	$	24,563		$	37,011		$	—		$	61,574
All Other operating segments	2,810			—			—			2,810
Items not included in segment assets:
Cash and short-term investments	6,317			—			—			6,317
Intercompany receivables	1,185			—			(1,185		)	—
Investment in Financial Products	4,488			—			(4,488		)	—
Deferred income taxes	3,627			—			(674		)	2,953
Goodwill and intangible assets	3,492			—			—			3,492
Property, plant and equipment – net and other assets	1,174			—			—			1,174
Operating lease methodology difference	(213		)	—			—			(213		)
Liabilities included in segment assets	9,837			—			—			9,837
Inventory methodology differences	(2,697		)	—			—			(2,697		)
Other	(395		)	(102		)	(69		)	(566		)
Total assets	$	54,188		$	36,909		$	(6,416	)	$	84,681

Reconciliation of Depreciation and amortization:



Reconciliations of Depreciation and amortization:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidated Total
Three Months Ended September 30, 2015
Total depreciation and amortization from reportable segments	$	437		$	210	$	647
Items not included in segment depreciation and amortization:
All Other operating segments	68			—		68
Cost centers	39			—		39
Other	(6		)	10		4
Total depreciation and amortization	$	538		$	220	$	758

Three Months Ended September 30, 2014
Total depreciation and amortization from reportable segments	$	466		$	229	$	695
Items not included in segment depreciation and amortization:
All Other operating segments	70			—		70
Cost centers	37			—		37
Other	(10		)	6		(4		)
Total depreciation and amortization	$	563		$	235	$	798



Reconciliations of Depreciation and amortization:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidated Total
Nine Months Ended September 30, 2015
Total depreciation and amortization from reportable segments	$	1,318		$	638	$	1,956
Items not included in segment depreciation and amortization:
All Other operating segments	202			—		202
Cost centers	115			—		115
Other	(27		)	26		(1		)
Total depreciation and amortization	$	1,608		$	664	$	2,272

Nine Months Ended September 30, 2014
Total depreciation and amortization from reportable segments	$	1,391		$	665	$	2,056
Items not included in segment depreciation and amortization:
All Other operating segments	209			—		209
Cost centers	111			—		111
Other	(26		)	18		(8		)
Total depreciation and amortization	$	1,685		$	683	$	2,368

Reconciliation of Capital expenditures:



Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments			Consolidated Total
Three Months Ended September 30, 2015
Total capital expenditures from reportable segments	$	280		$	359	$	—		$	639
Items not included in segment capital expenditures:
All Other operating segments	68			—		—			68
Cost centers	52			—		—			52
Timing	(35		)	—		—			(35		)
Other	(29		)	35		(4		)	2
Total capital expenditures	$	336		$	394	$	(4	)	$	726

Three Months Ended September 30, 2014
Total capital expenditures from reportable segments	$	293		$	427	$	—		$	720
Items not included in segment capital expenditures:
All Other operating segments	93			—		—			93
Cost centers	17			—		—			17
Timing	10			—		—			10
Other	(18		)	37		(12		)	7
Total capital expenditures	$	395		$	464	$	(12	)	$	847



Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments			Consolidated Total
Nine Months Ended September 30, 2015
Total capital expenditures from reportable segments	$	800		$	995	$	—		$	1,795
Items not included in segment capital expenditures:
All Other operating segments	159			—		—			159
Cost centers	98			—		—			98
Timing	199			—		—			199
Other	(161		)	130		(23		)	(54		)
Total capital expenditures	$	1,095		$	1,125	$	(23	)	$	2,197

Nine Months Ended September 30, 2014
Total capital expenditures from reportable segments	$	707		$	1,206	$	—		$	1,913
Items not included in segment capital expenditures:
All Other operating segments	187			—		—			187
Cost centers	66			—		—			66
Timing	239			—		—			239
Other	(66		)	89		(46		)	(23		)
Total capital expenditures	$	1,133		$	1,295	$	(46	)	$	2,382