Segment Information (Tables)

3 Months Ended

Mar. 31, 2017




Reportable Segments
Three Months Ended March 31
(Millions of dollars)
	2017
	External sales and revenues		Inter- segment sales and revenues		Total sales and revenues		Depreciation and amortization		Segment profit (loss)			Segment assets at March 31		Capital expenditures
Construction Industries	$	4,091	$	25	$	4,116	$	102	$	635		$	4,826	$	21
Resource Industries	1,670		91		1,761		127		158			6,797		21
Energy & Transportation	3,356		780		4,136		158		552			7,490		116
Machinery, Energy & Transportation	$	9,117	$	896	$	10,013	$	387	$	1,345		$	19,113	$	158
Financial Products Segment	760		—		760		208		183			36,367		246
Total	$	9,877	$	896	$	10,773	$	595	$	1,528		$	55,480	$	404

	2016
	External sales and revenues		Inter- segment sales and revenues		Total sales and revenues		Depreciation and amortization		Segment profit (loss)			Segment assets at December 31		Capital expenditures
Construction Industries	$	4,043	$	8	$	4,051	$	113	$	440		$	5,367	$	28
Resource Industries	1,449		71		1,520		155		(96		)	7,135		35
Energy & Transportation	3,278		632		3,910		166		410			7,791		147
Machinery, Energy & Transportation	$	8,770	$	711	$	9,481	$	434	$	754		$	20,293	$	210
Financial Products Segment	743		—		743		205		168			35,224		297
Total	$	9,513	$	711	$	10,224	$	639	$	922		$	55,517	$	507

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 March 31, 2017
Total external sales and revenues from reportable segments	$	9,117		$	760	$	—			$	9,877
All Other operating segments	37			—		—				37
Other	(24		)	17		(85		)	¹	(92		)
Total sales and revenues	$	9,130		$	777	$	(85	)		$	9,822

Three Months Ended March 31, 2016
Total external sales and revenues from reportable segments	$	8,770		$	743	$	—			$	9,513
All Other operating segments	38			—		—				38
Other	(28		)	16		(78		)	¹	(90		)
Total sales and revenues	$	8,780		$	759	$	(78	)		$	9,461
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 March 31, 2017
Total profit from reportable segments	$	1,345		$	183		$	1,528
All Other operating segments	(13		)	—			(13		)
Cost centers	7			—			7
Corporate costs	(115		)	—			(115		)
Timing	(38		)	—			(38		)
Restructuring costs	(751		)	(1		)	(752		)
Methodology differences:
Inventory/cost of sales	(68		)	—			(68		)
Postretirement benefit expense	41			—			41
Stock-based compensation expense	(47		)	(2		)	(49		)
Financing costs	(130		)	—			(130		)
Currency	(39		)	—			(39		)
Other income/expense methodology differences	(55		)	—			(55		)
Other methodology differences	(32		)	4			(28		)
Total consolidated profit before taxes	$	105		$	184		$	289

Three Months Ended March 31, 2016
Total profit from reportable segments	$	754		$	168		$	922
All Other operating segments	(7		)	—			(7		)
Cost centers	25			—			25
Corporate costs	(159		)	—			(159		)
Timing	32			—			32
Restructuring costs	(159		)	(2		)	(161		)
Methodology differences:							—
Inventory/cost of sales	(3		)	—			(3		)
Postretirement benefit expense	55			—			55
Stock-based compensation expense	(97		)	(4		)	(101		)
Financing costs	(135		)	—			(135		)
Currency	(40		)	—			(40		)
Other income/expense methodology differences	(56		)	—			(56		)
Other methodology differences	(12		)	5			(7		)
Total consolidated profit before taxes	$	198		$	167		$	365

Reconciliation of Restructuring costs:

As noted above, restructuring 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 costs:
(Millions of dollars)	Segment profit (loss)			Restructuring costs			Segment profit (loss) with restructuring costs
Three Months Ended March 31, 2017
Construction Industries	$	635		$	(667	)	$	(32	)
Resource Industries	158			(59		)	99
Energy & Transportation	552			(14		)	538
Financial Products Segment	183			(1		)	182
All Other operating segments	(13		)	(6		)	(19		)
Total	$	1,515		$	(747	)	$	768

Three Months Ended March 31, 2016
Construction Industries	$	440		$	(22	)	$	418
Resource Industries	(96		)	(25		)	(121		)
Energy & Transportation	410			(100		)	310
Financial Products Segment	168			(2		)	166
All Other operating segments	(7		)	(5		)	(12		)
Total	$	915		$	(154	)	$	761

Reconciliation of Assets:



Reconciliation of Assets:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidating Adjustments			Consolidated Total
March 31, 2017
Total assets from reportable segments	$	19,113		$	36,367		$	—		$	55,480
All Other operating segments	1,355			—			—			1,355
Items not included in segment assets:
Cash and short-term investments	8,223			—			—			8,223
Intercompany receivables	1,671			—			(1,671		)	—
Investment in Financial Products	3,863			—			(3,863		)	—
Deferred income taxes	3,766			—			(920		)	2,846
Goodwill and intangible assets	4,001			—			—			4,001
Property, plant and equipment – net and other assets	1,885			—			—			1,885
Operating lease methodology difference	(179		)	—			—			(179		)
Inventory methodology differences	(2,320		)	—			—			(2,320		)
Intercompany loan included in Financial Products' assets	—			—			(1,500		)	(1,500		)
Liabilities included in segment assets	8,312			—			—			8,312
Other	(484		)	(21		)	(49		)	(554		)
Total assets	$	49,206		$	36,346		$	(8,003	)	$	77,549

December 31, 2016
Total assets from reportable segments	$	20,293		$	35,224		$	—		$	55,517
All Other operating segments	1,381			—			—			1,381
Items not included in segment assets:
Cash and short-term investments	5,257			—			—			5,257
Intercompany receivables	1,713			—			(1,713		)	—
Investment in Financial Products	3,638			—			(3,638		)	—
Deferred income taxes	3,648			—			(947		)	2,701
Goodwill and intangible assets	3,883			—			—			3,883
Property, plant and equipment – net and other assets	1,645			—			—			1,645
Operating lease methodology difference	(186		)	—			—			(186		)
Inventory methodology differences	(2,373		)	—			—			(2,373		)
Liabilities included in segment assets	7,400			—			—			7,400
Other	(436		)	(29		)	(56		)	(521		)
Total assets	$	45,863		$	35,195		$	(6,354	)	$	74,704

Reconciliation of Depreciation and amortization:



Reconciliations of Depreciation and amortization:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidated Total
Three Months Ended March 31, 2017
Total depreciation and amortization from reportable segments	$	387		$	208	$	595
Items not included in segment depreciation and amortization:
All Other operating segments	54			—		54
Cost centers	35			—		35
Other	15			11		26
Total depreciation and amortization	$	491		$	219	$	710

Three Months Ended March 31, 2016
Total depreciation and amortization from reportable segments	$	434		$	205	$	639
Items not included in segment depreciation and amortization:
All Other operating segments	52			—		52
Cost centers	40			—		40
Other	(1		)	10		9
Total depreciation and amortization	$	525		$	215	$	740

Reconciliation of Capital expenditures:



Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments			Consolidated Total
Three Months Ended March 31, 2017
Total capital expenditures from reportable segments	$	158		$	246	$	—		$	404
Items not included in segment capital expenditures:
All Other operating segments	20			—		—			20
Cost centers	9			—		—			9
Timing	88			—		—			88
Other	(66		)	57		(3		)	(12		)
Total capital expenditures	$	209		$	303	$	(3	)	$	509

Three Months Ended March 31, 2016
Total capital expenditures from reportable segments	$	210		$	297	$	—		$	507
Items not included in segment capital expenditures:
All Other operating segments	16			—		—			16
Cost centers	12			—		—			12
Timing	217			—		—			217
Other	(76		)	73		(9		)	(12		)
Total capital expenditures	$	379		$	370	$	(9	)	$	740