Segment Information (Tables)

6 Months Ended

Jun. 30, 2018

Reconciliation of Sales and revenues




Reportable Segments
Three Months Ended June 30
(Millions of dollars)
	2018
	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	$	6,137		$	35	$	6,172	$	90	$	1,154	$	4,915	$	62
Resource Industries	2,431			95		2,526		115		411		6,410		39
Energy & Transportation	4,714			1,010		5,724		157		1,012		8,088		140
Machinery, Energy & Transportation	$	13,282		$	1,140	$	14,422	$	362	$	2,577	$	19,413	$	241
Financial Products Segment	829		¹	—		829		212		134		35,908		533
Total	$	14,111		$	1,140	$	15,251	$	574	$	2,711	$	55,321	$	774

	2017
	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	$	4,930		$	29	$	4,959	$	100	$	900	$	4,838	$	36
Resource Industries	1,759			77		1,836		130		99		6,403		31
Energy & Transportation	3,941			827		4,768		162		694		7,564		91
Machinery, Energy & Transportation	$	10,630		$	933	$	11,563	$	392	$	1,693	$	18,805	$	158
Financial Products Segment	776		¹	—		776		204		191		34,893		439
Total	$	11,406		$	933	$	12,339	$	596	$	1,884	$	53,698	$	597

¹ Includes revenues from Machinery, Energy & Transportation of $118 million and $102 million in the second quarter of 2018 and 2017, respectively.




Reportable Segments
Six Months Ended June 30
(Millions of dollars)
	2018
	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	$	11,796		$	53	$	11,849	$	179	$	2,271	$	4,915	$	104
Resource Industries	4,639			196		4,835		231		789		6,410		62
Energy & Transportation	8,990			1,953		10,943		315		1,886		8,088		302
Machinery, Energy & Transportation	$	25,425		$	2,202	$	27,627	$	725	$	4,946	$	19,413	$	468
Financial Products Segment	1,622		¹	—		1,622		415		275		35,908		894
Total	$	27,047		$	2,202	$	29,249	$	1,140	$	5,221	$	55,321	$	1,362

	2017
	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	$	9,021		$	38	$	9,059	$	202	$	1,534	$	4,838	$	57
Resource Industries	3,429			168		3,597		257		259		6,403		52
Energy & Transportation	7,297			1,607		8,904		320		1,239		7,564		207
Machinery, Energy & Transportation	$	19,747		$	1,813	$	21,560	$	779	$	3,032	$	18,805	$	316
Financial Products Segment	1,536		¹	—		1,536		412		374		34,893		710
Total	$	21,283		$	1,813	$	23,096	$	1,191	$	3,406	$	53,698	$	1,026

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




	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
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, 2018
Total profit from reportable segments	$	2,577		$	134		$	2,711
All Other operating segments	23			—			23
Cost centers	(1		)	—			(1		)
Corporate costs	(178		)	—			(178		)
Timing	(66		)	—			(66		)
Restructuring costs	(113		)	(1		)	(114		)
Methodology differences:
Inventory/cost of sales	31			—			31
Postretirement benefit expense	82			—			82
Stock-based compensation expense	(60		)	(2		)	(62		)
Financing costs	(69		)	—			(69		)
Currency	(52		)	—			(52		)
Other income/expense methodology differences	(95		)	—			(95		)
Other methodology differences	(29		)	5			(24		)
Total consolidated profit before taxes	$	2,050		$	136		$	2,186

Three Months Ended June 30, 2017
Total profit from reportable segments	$	1,693		$	191		$	1,884
All Other operating segments	(19		)	—			(19		)
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	44			—			44
Stock-based compensation expense	(65		)	(3		)	(68		)
Financing costs	(123		)	—			(123		)
Currency	(119		)	—			(119		)
Other income/expense methodology differences	21			—			21
Other methodology differences	(30		)	—			(30		)
Total consolidated profit before taxes	$	971		$	188		$	1,159



Reconciliation of Consolidated profit before taxes:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidated Total
Six Months Ended June 30, 2018
Total profit from reportable segments	$	4,946		$	275		$	5,221
All Other operating segments	80			—			80
Cost centers	26			—			26
Corporate costs	(346		)	—			(346		)
Timing	(150		)	—			(150		)
Restructuring costs	(182		)	(1		)	(183		)
Methodology differences:
Inventory/cost of sales	23			—			23
Postretirement benefit expense	169			—			169
Stock-based compensation expense	(108		)	(4		)	(112		)
Financing costs	(147		)	—			(147		)
Currency	(49		)	—			(49		)
Other income/expense methodology differences	(173		)	—			(173		)
Other methodology differences	(42		)	3			(39		)
Total consolidated profit before taxes	$	4,047		$	273		$	4,320

Six Months Ended June 30, 2017
Total profit from reportable segments	$	3,032		$	374		$	3,406
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	91			—			91
Stock-based compensation expense	(112		)	(5		)	(117		)
Financing costs	(253		)	—			(253		)
Currency	(158		)	—			(158		)
Other income/expense methodology differences	(34		)	—			(34		)
Other methodology differences	(61		)	4			(57		)
Total consolidated profit before taxes	$	1,076		$	372		$	1,448

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, 2018
Construction Industries	$	1,154		$	(29	)	$	1,125
Resource Industries	411			(52		)	359
Energy & Transportation	1,012			(24		)	988
Financial Products Segment	134			(1		)	133
All Other operating segments	23			(5		)	18
Total	$	2,734		$	(111	)	$	2,623

Three Months Ended June 30, 2017
Construction Industries	$	900		$	(27	)	$	873
Resource Industries	99			(111		)	(12		)
Energy & Transportation	694			(44		)	650
Financial Products Segment	191			(1		)	190
All Other operating segments	(19		)	(13		)	(32		)
Total	$	1,865		$	(196	)	$	1,669



Reconciliation of Restructuring costs:
(Millions of dollars)	Segment profit (loss)			Restructuring costs			Segment profit (loss) with restructuring costs
Six Months Ended June 30, 2018
Construction Industries	$	2,271		$	(43	)	$	2,228
Resource Industries	789			(96		)	693
Energy & Transportation	1,886			(29		)	1,857
Financial Products Segment	275			(1		)	274
All Other operating segments	80			(9		)	71
Total	$	5,301		$	(178	)	$	5,123

Six Months Ended June 30, 2017
Construction Industries	$	1,534		$	(694	)	$	840
Resource Industries	259			(170		)	89
Energy & Transportation	1,239			(58		)	1,181
Financial Products Segment	374			(2		)	372
All Other operating segments	(33		)	(19		)	(52		)
Total	$	3,373		$	(943	)	$	2,430

Reconciliation of Assets:



Reconciliation of Assets:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidating Adjustments			Consolidated Total
June 30, 2018
Total assets from reportable segments	$	19,413		$	35,908		$	—		$	55,321
All Other operating segments	1,278			—			—			1,278
Items not included in segment assets:
Cash and short-term investments	7,786			—			—			7,786
Intercompany receivables	1,585			—			(1,585		)	—
Investment in Financial Products	4,063			—			(4,063		)	—
Deferred income taxes	2,107			—			(586		)	1,521
Goodwill and intangible assets	4,325			—			—			4,325
Property, plant and equipment – net and other assets	2,196			—			—			2,196
Operating lease methodology difference	(183		)	—			—			(183		)
Inventory methodology differences	(2,333		)	—			—			(2,333		)
Liabilities included in segment assets	9,757			—			—			9,757
Other	(642		)	—			(39		)	(681		)
Total assets	$	49,352		$	35,908		$	(6,273	)	$	78,987

December 31, 2017
Total assets from reportable segments	$	18,805		$	34,893		$	—		$	53,698
All Other operating segments	1,312			—			—			1,312
Items not included in segment assets:
Cash and short-term investments	7,381			—			—			7,381
Intercompany receivables	1,733			—			(1,733		)	—
Investment in Financial Products	4,064			—			(4,064		)	—
Deferred income taxes	2,166			—			(574		)	1,592
Goodwill and intangible assets	4,210			—			—			4,210
Property, plant and equipment – net and other assets	2,341			—			—			2,341
Operating lease methodology difference	(191		)	—			—			(191		)
Inventory methodology differences	(2,287		)	—			—			(2,287		)
Liabilities included in segment assets	9,352			—			—			9,352
Other	(399		)	(14		)	(33		)	(446		)
Total assets	$	48,487		$	34,879		$	(6,404	)	$	76,962

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, 2018
Total depreciation and amortization from reportable segments	$	362	$	212	$	574
Items not included in segment depreciation and amortization:
All Other operating segments	58		—		58
Cost centers	32		—		32
Other	13		9		22
Total depreciation and amortization	$	465	$	221	$	686

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



Reconciliations of Depreciation and amortization:
(Millions of dollars)	Machinery, Energy & Transportation		Financial Products		Consolidated Total
Six Months Ended June 30, 2018
Total depreciation and amortization from reportable segments	$	725	$	415	$	1,140
Items not included in segment depreciation and amortization:
All Other operating segments	115		—		115
Cost centers	63		—		63
Other	30		19		49
Total depreciation and amortization	$	933	$	434	$	1,367

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

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, 2018
Total capital expenditures from reportable segments	$	241		$	533	$	—		$	774
Items not included in segment capital expenditures:
All Other operating segments	27			—		—			27
Cost centers	26			—		—			26
Timing	(18		)	—		—			(18		)
Other	(45		)	43		(36		)	(38		)
Total capital expenditures	$	231		$	576	$	(36	)	$	771

Three Months Ended June 30, 2017
Total capital expenditures from reportable segments	$	158		$	439	$	—		$	597
Items not included in segment capital expenditures:
All Other operating segments	25			—		—			25
Cost centers	14			—		—			14
Timing	(9		)	—		—			(9		)
Other	(18		)	11		(5		)	(12		)
Total capital expenditures	$	170		$	450	$	(5	)	$	615



Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments			Consolidated Total
Six Months Ended June 30, 2018
Total capital expenditures from reportable segments	$	468		$	894	$	—		$	1,362
Items not included in segment capital expenditures:
All Other operating segments	38			—		—			38
Cost centers	40			—		—			40
Timing	157			—		—			157
Other	(149		)	120		(40		)	(69		)
Total capital expenditures	$	554		$	1,014	$	(40	)	$	1,528

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