Segment Information (Tables)

6 Months Ended

Jun. 30, 2011

Segment Information

Reportable Segments

Reportable Segments

Three Months Ended June 30,

(Millions of dollars)

	2011
	External sales and revenues	Inter- segment sales & revenues	Total sales and revenues	Depreciation and amortization	Segment profit	Segment assets at June 30	Capital expenditures
Construction Industries	$4,941	$124	$5,065	$126	$482	$7,133	$158
Resource Industries	3,206	284	3,490	72	796	3,600	105
Power Systems	4,918	541	5,459	129	736	7,879	132
Machinery and Power Systems	$13,065	$949	$14,014	$327	$2,014	$18,612	$395
Financial Products Segment	764	—	764	182	172	31,550	339
Total	$13,829	$949	$14,778	$509	$2,186	$50,162	$734
	2010
	External sales and revenues	Inter- segment sales & revenues	Total sales and revenues	Depreciation and amortization	Segment profit	Segment assets at December 31	Capital expenditures
Construction Industries	$3,391	$142	$3,533	$126	$218	$6,927	$88
Resource Industries	2,095	192	2,287	70	418	3,892	44
Power Systems	3,736	388	4,124	118	594	8,321	108
Machinery and Power Systems	$9,222	$722	$9,944	$314	$1,230	$19,140	$240
Financial Products Segment	744	—	744	180	110	30,346	213
Total	$9,966	$722	$10,688	$494	$1,340	$49,486	$453

Reportable Segments

Six Months Ended June 30,

(Millions of dollars)

	2011
	External sales and revenues	Inter- segment sales & revenues	Total sales and revenues	Depreciation and amortization	Segment profit	Segment assets at June 30	Capital expenditures
Construction Industries	$9,412	$271	$9,683	$246	$1,026	$7,133	$237
Resource Industries	5,974	558	6,532	143	1,592	3,600	161
Power Systems	9,367	1,095	10,462	265	1,436	7,879	217
Machinery and Power Systems	$24,753	$1,924	$26,677	$654	$4,054	$18,612	$615
Financial Products Segment	1,494	—	1,494	358	308	31,550	519
Total	$26,247	$1,924	$28,171	$1,012	$4,362	$50,162	$1,134

	2010
	External sales and revenues	Inter- segment sales & revenues	Total sales and revenues	Depreciation and amortization	Segment profit	Segment assets at December 31	Capital expenditures
Construction Industries	$6,003	$302	$6,305	$254	$250	$6,927	$164
Resource Industries	3,598	346	3,944	140	645	3,892	71
Power Systems	6,677	644	7,321	226	886	8,321	182
Machinery and Power Systems	$16,278	$1,292	$17,570	$620	$1,781	$19,140	$417
Financial Products Segment	1,483	—	1,483	363	216	30,346	387
Total	$17,761	$1,292	$19,053	$983	$1,997	$49,486	$804

Reconciliation of Sales and revenues:

Reconciliation of Sales and revenues:
(Millions of dollars)	Machinery and Power Systems	Financial Products	Consolidating Adjustments	Consolidated Total
Three Months Ended June 30, 2011:
Total external sales and revenues from reportable segments	$13,065	$764	$—	$13,829
All other operating segments	475	—	—	475
Other	(5)	13	(82)1	(74)
Total sales and revenues	$13,535	$777	$(82)	$14,230
Three Months Ended June 30, 2010:
Total external sales and revenues from reportable segments	$9,222	$744	$—	$9,966
All other operating segments	529	—	—	529
Other	(28)	9	(67)1	(86)
Total sales and revenues	$9,723	$753	$(67)	$10,409

1 Elimination of Financial Products revenues from Machinery and Power Systems.

Reconciliation of Sales and revenues:
(Millions of dollars)	Machinery and Power Systems	Financial Products	Consolidating Adjustments	Consolidated Total
Six Months Ended June 30, 2011:
Total external sales and revenues from reportable segments	$24,753	$1,494	$—	$26,247
All other operating segments	1,064	—	—	1,064
Other	(5)	23	(150)1	(132)
Total sales and revenues	$25,812	$1,517	$(150)	$27,179
Six Months Ended June 30, 2010:
Total external sales and revenues from reportable segments	$16,278	$1,483	$—	$17,761
All other operating segments	1,023	—	—	1,023
Other	(27)	16	(126)1	(137)
Total sales and revenues	$17,274	$1,499	$(126)	$18,647

1 Elimination of Financial Products revenues from Machinery and Power Systems.

Reconciliation of Consolidated profit (loss) before taxes:

Reconciliation of Consolidated profit (loss) before taxes:
(Millions of dollars)	Machinery and Power Systems	Financial Products	Consolidated Total
Three Months Ended June 30, 2011:
Total profit from reportable segments	$2,014	$172	$2,186
All other operating segments	122	—	122
Cost centers	(22)	—	(22)
Corporate costs	(298)	—	(298)
Timing	(93)	—	(93)
Methodology differences:
Inventory/cost of sales	16	—	16
Postretirement benefit expense	(166)	—	(166)
Financing costs	(89)	—	(89)
Equity in profit of unconsolidated affiliated companies	10	—	10
Currency	(93)	—	(93)
Interest rate swaps	(124)	—	(124)
Other income/expense methodology differences	(97)	—	(97)
Other methodology differences	(3)	1	(2)
Total profit (loss) before taxes	$1,177	$173	$1,350
Three Months Ended June 30, 2010:
Total profit from reportable segments	$1,230	$110	$1,340
All other operating segments	195	—	195
Cost centers	(3)	—	(3)
Corporate costs	(264)	—	(264)
Timing	(126)	—	(126)
Methodology differences:
Inventory/cost of sales	4	—	4
Postretirement benefit expense	(115)	—	(115)
Financing costs	(74)	—	(74)
Equity in profit of unconsolidated affiliated companies	4	—	4
Currency	10	—	10
Other income/expense methodology differences	(23)	—	(23)
Other methodology differences	(1)	(1)	(2)
Total profit (loss) before taxes	$837	$109	$946

Reconciliation of Consolidated profit (loss) before taxes:
(Millions of dollars)	Machinery and Power Systems	Financial Products	Consolidated Total
Six Months Ended June 30, 2011:
Total profit from reportable segments	$4,054	$308	$4,362
All other operating segments	367	—	367
Cost centers	(2)	—	(2)
Corporate costs	(568)	—	(568)
Timing	(169)	—	(169)
Methodology differences:
Inventory/cost of sales	22	—	22
Postretirement benefit expense	(358)	—	(358)
Financing costs	(178)	—	(178)
Equity in profit of unconsolidated affiliated companies	18	—	18
Currency	(75)	—	(75)
Interest rate swaps	(149)	—	(149)
Other income/expense methodology differences	(156)	—	(156)
Other methodology differences	(4)	3	(1)
Total profit (loss) before taxes	$2,802	$311	$3,113
Six Months Ended June 30, 2010:
Total profit from reportable segments	$1,781	$216	$1,997
All other operating segments	380	—	380
Cost centers	(5)	—	(5)
Corporate costs	(470)	—	(470)
Timing	(112)	—	(112)
Methodology differences:
Inventory/cost of sales	38	—	38
Postretirement benefit expense	(243)	—	(243)
Financing costs	(169)	—	(169)
Equity in profit of unconsolidated affiliated companies	6	—	6
Currency	45	—	45
Interest rate swaps	(2)	—	(2)
Other income/expense methodology differences	(50)	—	(50)
Other methodology differences	(3)	3	—
Total profit (loss) before taxes	$1,196	$219	$1,415

Reconciliation of Assets:

Reconciliation of Assets:
(Millions of dollars)	Machinery and Power Systems	Financial Products	Consolidating Adjustments	Consolidated Total
June 30, 2011:
Total assets from reportable segments	$18,612	$31,550	$—	$50,162
All other operating segments	1,931	—	—	1,931
Items not included in segment assets:
Cash and short-term investments	9,456	—	—	9,456
Intercompany receivables	59	—	(59)	—
Investment in Financial Products	4,471	—	(4,471)	—
Deferred income taxes	3,626	—	(398)	3,228
Goodwill, intangible assets and other assets	1,608	—	—	1,608
Operating lease methodology difference	(499)	—	—	(499)
Liabilities included in segment assets	9,662	—	—	9,662
Inventory methodology differences	(2,634)	—	—	(2,634)
Other	993	(186)	(110)	697
Total assets	$47,285	$31,364	$(5,038)	$73,611
December 31, 2010:
Total assets from reportable segments	$19,140	$30,346	$—	$49,486
All other operating segments	2,472	—	—	2,472
Items not included in segment assets:
Cash and short-term investments	1,825	—	—	1,825
Intercompany receivables	618	—	(618)	—
Investment in Financial Products	4,275	—	(4,275)	—
Deferred income taxes	3,745	—	(519)	3,226
Goodwill, intangible assets and other assets	1,511	—	—	1,511
Operating lease methodology difference	(567)	—	—	(567)
Liabilities included in segment assets	8,758	—	—	8,758
Inventory methodology differences	(2,913)	—	—	(2,913)
Other	627	(233)	(172)	222
Total assets	$39,491	$30,113	$(5,584)	$64,020

Reconciliation of Depreciation and amortization:

Reconciliations of Depreciation and amortization:
(Millions of dollars)	Machinery and Power Systems	Financial Products	Consolidating Adjustments	Consolidated Total
Three Months Ended June 30, 2011:
Total depreciation and amortization from reportable segments	$327	$182	$—	$509
Items not included in segment depreciation and amortization:
All other operating segments	41	—	—	41
Cost centers	24	—	—	24
Other	23	2		25
Total depreciation and amortization	$415	$184	$—	$599
Three Months Ended June 30, 2010:
Total depreciation and amortization from reportable segments	$314	$180	$—	$494
Items not included in segment depreciation and amortization:
All other operating segments	49	—	—	49
Cost centers	25	—	—	25
Other	(9)	3	—	(6)
Total depreciation and amortization from reportable segments	$379	$183	$—	$562

Reconciliations of Depreciation and amortization:
(Millions of dollars)	Machinery and Power Systems	Financial Products	Consolidating Adjustments	Consolidated Total
Six Months Ended June 30, 2011:
Total depreciation and amortization from reportable segments	$654	$358	$—	$1,012
Items not included in segment depreciation and amortization:
All other operating segments	86	—	—	86
Cost centers	48	—	—	48
Other	22	6		28
Total depreciation and amortization	$810	$364	$—	$1,174
Six Months Ended June 30, 2010:
Total depreciation and amortization from reportable segments	$620	$363	$—	$983
Items not included in segment depreciation and amortization:
All other operating segments	96	—	—	96
Cost centers	49	—	—	49
Other	(15)	3	—	(12)
Total depreciation and amortization	$750	$366	$—	$1,116

Reconciliation of Capital expenditures:

Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery and Power Systems	Financial Products	Consolidating Adjustments	Consolidated Total
Three Months Ended June 30, 2011:
Total capital expenditures from reportable segments	$395	$339	$—	$734
Items not included in segment capital expenditures:
All other operating segments	51	—	—	51
Cost centers	25	—	—	25
Timing	(74)	—	—	(74)
Other	10	22	(24)	8
Total capital expenditures	$407	$361	$(24)	$744
Three Months Ended June 30, 2010:
Total capital expenditures from reportable segments	$240	$213	$—	$453
Items not included in segment capital expenditures:
All other operating segments	39	—	—	39
Cost centers	14	—	—	14
Timing	3	—	—	3
Other	(4)	11	(30)	(23)
Total capital expenditures	$292	$224	$(30)	$486

Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery and Power Systems	Financial Products	Consolidating Adjustments	Consolidated Total
Six Months Ended June 30, 2011:
Total capital expenditures from reportable segments	$615	$519	$—	$1,134
Items not included in segment capital expenditures:
All other operating segments	89	—	—	89
Cost centers	41	—	—	41
Timing	240	—	—	240
Other	(10)	55	(45)	—
Total capital expenditures	$975	$574	$(45)	$1,504
Six Months Ended June 30, 2010:
Total capital expenditures from reportable segments	$417	$387	$—	$804
Items not included in segment capital expenditures:
All other operating segments	55	—	—	55
Cost centers	24	—	—	24
Timing	168	—	—	168
Other	(4)	11	(34)	(27)
Total capital expenditures	$660	$398	$(34)	$1,024