Segment Information (Tables)

6 Months Ended

Jun. 30, 2017




Reportable Segments
Three Months Ended June 30
(Millions of dollars)
	2017
	External sales and revenues		Inter- segment sales and revenues		Total sales and revenues		Depreciation and amortization		Segment profit			Segment assets at June 30		Capital expenditures
Construction Industries	$	4,930	$	29	$	4,959	$	100	$	901		$	4,475	$	36
Resource Industries	1,759		77		1,836		130		97			6,584		31
Energy & Transportation	3,941		827		4,768		162		700			7,405		91
Machinery, Energy & Transportation	$	10,630	$	933	$	11,563	$	392	$	1,698		$	18,464	$	158
Financial Products Segment	776		—		776		204		191			36,506		464
Total	$	11,406	$	933	$	12,339	$	596	$	1,889		$	54,970	$	622

	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	$	4,426	$	12	$	4,438	$	116	$	550		$	5,367	$	40
Resource Industries	1,457		57		1,514		153		(163		)	7,135		59
Energy & Transportation	3,750		658		4,408		169		602			7,791		96
Machinery, Energy & Transportation	$	9,633	$	727	$	10,360	$	438	$	989		$	20,293	$	195
Financial Products Segment	759		—		759		213		202			35,224		612
Total	$	10,392	$	727	$	11,119	$	651	$	1,191		$	55,517	$	807




Reportable Segments
Six Months Ended June 30
(Millions of dollars)
	2017
	External sales and revenues		Inter- segment sales and revenues		Total sales and revenues		Depreciation and amortization		Segment profit			Segment assets at June 30		Capital expenditures
Construction Industries	$	9,021	$	38	$	9,059	$	202	$	1,536		$	4,475	$	57
Resource Industries	3,429		168		3,597		257		255			6,584		52
Energy & Transportation	7,297		1,607		8,904		320		1,252			7,405		207
Machinery, Energy & Transportation	$	19,747	$	1,813	$	21,560	$	779	$	3,043		$	18,464	$	316
Financial Products Segment	1,536		—		1,536		412		374			36,506		710
Total	$	21,283	$	1,813	$	23,096	$	1,191	$	3,417		$	54,970	$	1,026

	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	$	8,469	$	20	$	8,489	$	229	$	990		$	5,367	$	68
Resource Industries	2,906		128		3,034		308		(259		)	7,135		94
Energy & Transportation	7,028		1,290		8,318		335		1,012			7,791		243
Machinery, Energy & Transportation	$	18,403	$	1,438	$	19,841	$	872	$	1,743		$	20,293	$	405
Financial Products Segment	1,502		—		1,502		418		370			35,224		909
Total	$	19,905	$	1,438	$	21,343	$	1,290	$	2,113		$	55,517	$	1,314

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 June 30, 2017
Total external sales and revenues from reportable segments	$	10,630		$	776	$	—			$	11,406
All Other operating segments	33			—		—				33
Other	(24		)	17		(101		)	¹	(108		)
Total sales and revenues	$	10,639		$	793	$	(101	)		$	11,331

Three Months Ended June 30, 2016
Total external sales and revenues from reportable segments	$	9,633		$	759	$	—			$	10,392
All Other operating segments	41			—		—				41
Other	(29		)	19		(81		)	¹	(91		)
Total sales and revenues	$	9,645		$	778	$	(81	)		$	10,342
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
Six Months Ended June 30, 2017
Total external sales and revenues from reportable segments	$	19,747		$	1,536	$	—			$	21,283
All Other operating segments	70			—		—				70
Other	(48		)	34		(186		)	¹	(200		)
Total sales and revenues	$	19,769		$	1,570	$	(186	)		$	21,153

Six Months Ended June 30, 2016
Total external sales and revenues from reportable segments	$	18,403		$	1,502	$	—			$	19,905
All Other operating segments	79			—		—				79
Other	(57		)	35		(159		)	¹	(181		)
Total sales and revenues	$	18,425		$	1,537	$	(159	)		$	19,803
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 June 30, 2017
Total profit from reportable segments	$	1,698		$	191		$	1,889
All Other operating segments	(20		)	—			(20		)
Cost centers	(11		)	—			(11		)
Corporate costs	(174		)	—			(174		)
Timing	(69		)	—			(69		)
Restructuring costs	(169		)	—			(169		)
Methodology differences:
Inventory/cost of sales	(8		)	—			(8		)
Postretirement benefit expense	38			—			38
Stock-based compensation expense	(65		)	(3		)	(68		)
Financing costs	(123		)	—			(123		)
Currency	(119		)	—			(119		)
Other income/expense methodology differences	21			—			21
Other methodology differences	(28		)	—			(28		)
Total consolidated profit before taxes	$	971		$	188		$	1,159

Three Months Ended June 30, 2016
Total profit from reportable segments	$	989		$	202		$	1,191
All Other operating segments	(14		)	—			(14		)
Cost centers	14			—			14
Corporate costs	(149		)	—			(149		)
Timing	9			—			9
Restructuring costs	(137		)	(2		)	(139		)
Methodology differences:							—
Inventory/cost of sales	(16		)	—			(16		)
Postretirement benefit expense	56			—			56
Stock-based compensation expense	(43		)	(2		)	(45		)
Financing costs	(132		)	—			(132		)
Currency	28			—			28
Other income/expense methodology differences	(54		)	—			(54		)
Other methodology differences	(11		)	1			(10		)
Total consolidated profit before taxes	$	540		$	199		$	739



Reconciliation of Consolidated profit before taxes:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidated Total
Six Months Ended June 30, 2017
Total profit from reportable segments	$	3,043		$	374		$	3,417
All Other operating segments	(33		)	—			(33		)
Cost centers	(4		)	—			(4		)
Corporate costs	(289		)	—			(289		)
Timing	(107		)	—			(107		)
Restructuring costs	(920		)	(1		)	(921		)
Methodology differences:
Inventory/cost of sales	(76		)	—			(76		)
Postretirement benefit expense	79			—			79
Stock-based compensation expense	(112		)	(5		)	(117		)
Financing costs	(253		)	—			(253		)
Currency	(158		)	—			(158		)
Other income/expense methodology differences	(34		)	—			(34		)
Other methodology differences	(60		)	4			(56		)
Total consolidated profit before taxes	$	1,076		$	372		$	1,448

Six Months Ended June 30, 2016
Total profit from reportable segments	$	1,743		$	370		$	2,113
All Other operating segments	(21		)	—			(21		)
Cost centers	39			—			39
Corporate costs	(308		)	—			(308		)
Timing	41			—			41
Restructuring costs	(296		)	(4		)	(300		)
Methodology differences:
Inventory/cost of sales	(19		)	—			(19		)
Postretirement benefit expense	111			—			111
Stock-based compensation expense	(140		)	(6		)	(146		)
Financing costs	(267		)	—			(267		)
Currency	(12		)	—			(12		)
Other income/expense methodology differences	(110		)	—			(110		)
Other methodology differences	(23		)	6			(17		)
Total consolidated profit before taxes	$	738		$	366		$	1,104

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 June 30, 2017
Construction Industries	$	901		$	(27	)	$	874
Resource Industries	97			(111		)	(14		)
Energy & Transportation	700			(44		)	656
Financial Products Segment	191			(1		)	190
All Other operating segments	(20		)	(13		)	(33		)
Total	$	1,869		$	(196	)	$	1,673

Three Months Ended June 30, 2016
Construction Industries	$	550		$	(3	)	$	547
Resource Industries	(163		)	(69		)	(232		)
Energy & Transportation	602			(55		)	547
Financial Products Segment	202			(2		)	200
All Other operating segments	(14		)	(9		)	(23		)
Total	$	1,177		$	(138	)	$	1,039



Reconciliation of Restructuring costs:
(Millions of dollars)	Segment profit (loss)			Restructuring costs			Segment profit (loss) with restructuring costs
Six Months Ended June 30, 2017
Construction Industries	$	1,536		$	(694	)	$	842
Resource Industries	255			(170		)	85
Energy & Transportation	1,252			(58		)	1,194
Financial Products Segment	374			(2		)	372
All Other operating segments	(33		)	(19		)	(52		)
Total	$	3,384		$	(943	)	$	2,441

Six Months Ended June 30, 2016
Construction Industries	$	990		$	(25	)	$	965
Resource Industries	(259		)	(94		)	(353		)
Energy & Transportation	1,012			(155		)	857
Financial Products Segment	370			(4		)	366
All Other operating segments	(21		)	(14		)	(35		)
Total	$	2,092		$	(292	)	$	1,800

Reconciliation of Assets:



Reconciliation of Assets:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidating Adjustments			Consolidated Total
June 30, 2017
Total assets from reportable segments	$	18,464		$	36,506		$	—		$	54,970
All Other operating segments	1,368			—			—			1,368
Items not included in segment assets:
Cash and short-term investments	8,926			—			—			8,926
Intercompany receivables	1,662			—			(1,662		)	—
Investment in Financial Products	4,169			—			(4,169		)	—
Deferred income taxes	3,651			—			(886		)	2,765
Goodwill and intangible assets	4,128			—			—			4,128
Property, plant and equipment – net and other assets	1,935			—			—			1,935
Operating lease methodology difference	(190		)	—			—			(190		)
Inventory methodology differences	(2,284		)	—			—			(2,284		)
Intercompany loan included in Financial Products' assets	—			—			(1,500		)	(1,500		)
Liabilities included in segment assets	8,890			—			—			8,890
Other	(454		)	(14		)	(30		)	(498		)
Total assets	$	50,265		$	36,492		$	(8,247	)	$	78,510

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 June 30, 2017
Total depreciation and amortization from reportable segments	$	392	$	204	$	596
Items not included in segment depreciation and amortization:
All Other operating segments	56		—		56
Cost centers	35		—		35
Other	24		9		33
Total depreciation and amortization	$	507	$	213	$	720

Three Months Ended June 30, 2016
Total depreciation and amortization from reportable segments	$	438	$	213	$	651
Items not included in segment depreciation and amortization:
All Other operating segments	53		—		53
Cost centers	38		—		38
Other	2		10		12
Total depreciation and amortization	$	531	$	223	$	754



Reconciliations of Depreciation and amortization:
(Millions of dollars)	Machinery, Energy & Transportation		Financial Products		Consolidated Total
Six Months Ended June 30, 2017
Total depreciation and amortization from reportable segments	$	779	$	412	$	1,191
Items not included in segment depreciation and amortization:
All Other operating segments	110		—		110
Cost centers	70		—		70
Other	39		20		59
Total depreciation and amortization	$	998	$	432	$	1,430

Six Months Ended June 30, 2016
Total depreciation and amortization from reportable segments	$	872	$	418	$	1,290
Items not included in segment depreciation and amortization:
All Other operating segments	105		—		105
Cost centers	78		—		78
Other	1		20		21
Total depreciation and amortization	$	1,056	$	438	$	1,494

Reconciliation of Capital expenditures:



Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidating Adjustments			Consolidated Total
Three Months Ended June 30, 2017
Total capital expenditures from reportable segments	$	158		$	464		$	—		$	622
Items not included in segment capital expenditures:
All Other operating segments	25			—			—			25
Cost centers	14			—			—			14
Timing	(9		)	—			—			(9		)
Other	(18		)	(14		)	(5		)	(37		)
Total capital expenditures	$	170		$	450		$	(5	)	$	615

Three Months Ended June 30, 2016
Total capital expenditures from reportable segments	$	195		$	612		$	—		$	807
Items not included in segment capital expenditures:
All Other operating segments	51			—			—			51
Cost centers	16			—			—			16
Other	(23		)	22			(8		)	(9		)
Total capital expenditures	$	239		$	634		$	(8	)	$	865



Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments			Consolidated Total
Six Months Ended June 30, 2017
Total capital expenditures from reportable segments	$	316		$	710	$	—		$	1,026
Items not included in segment capital expenditures:
All Other operating segments	45			—		—			45
Cost centers	23			—		—			23
Timing	79			—		—			79
Other	(84		)	43		(8		)	(49		)
Total capital expenditures	$	379		$	753	$	(8	)	$	1,124

Six Months Ended June 30, 2016
Total capital expenditures from reportable segments	$	405		$	909	$	—		$	1,314
Items not included in segment capital expenditures:
All Other operating segments	67			—		—			67
Cost centers	28			—		—			28
Timing	217			—		—			217
Other	(99		)	95		(17		)	(21		)
Total capital expenditures	$	618		$	1,004	$	(17	)	$	1,605