Caterpillar (CAT) 10-K17 Feb 212020 FY Annual reportFinancial data

Company Profile

Cover Page

Cover Page - USD ($) $ in Billions	12 Months Ended
Cover Page - USD ($) $ in Billions	Dec. 31, 2020	Jun. 30, 2020
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Document Transition Report	false
Entity File Number	1-768
Entity Registrant Name	CATERPILLAR INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	37-0602744
Entity Address, Address Line One	510 Lake Cook Road,
Entity Address, Address Line Two	Suite 100,
Entity Address, City or Town	Deerfield,
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60015
City Area Code	224
Local Phone Number	551-4000
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float		$ 67.9
Entity Common Stock, Shares Outstanding	545,303,847
Entity Central Index Key	0000018230
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
ICFR Auditor Attestation Flag	true
Documents Incorporated by Reference	Documents Incorporated by Reference Portions of the documents listed below have been incorporated by reference into the indicated parts of this Form 10-K, as specified in the responses to the item numbers involved. Part III 2021 Annual Meeting Proxy Statement (Proxy Statement) to be filed with the Securities and Exchange Commission (SEC) within 120 days after the end of the fiscal year.
Common Stock ($1.00 par value)
Entity Information [Line Items]
Title of 12(b) Security	Common Stock ($1.00 par value)
Trading Symbol	CAT
Security Exchange Name	NYSE
9 3/8% Debentures due March 15, 2021
Entity Information [Line Items]
Title of 12(b) Security	9 3/8% Debentures due March 15, 2021
Trading Symbol	CAT21
Security Exchange Name	NYSE
8% Debentures due February 15, 2023
Entity Information [Line Items]
Title of 12(b) Security	8% Debentures due February 15, 2023
Trading Symbol	CAT23
Security Exchange Name	NYSE
5.3% Debentures due September 15, 2035
Entity Information [Line Items]
Title of 12(b) Security	5.3% Debentures due September 15, 2035
Trading Symbol	CAT35
Security Exchange Name	NYSE

Consolidated Results of Operati

Consolidated Results of Operations - USD ($) shares in Millions, $ in Millions		12 Months Ended
		Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Sales and revenues:
Sales and revenues		$ 41,748	$ 53,800	$ 54,722
Operating costs:
Cost of goods sold		29,082	36,630	36,997
Selling, general and administrative expenses		4,642	5,162	5,478
Research and development expenses		1,415	1,693	1,850
Other operating (income) expenses		1,467	1,271	1,382
Total operating costs		37,195	45,510	46,429
Operating profit		4,553	8,290	8,293
Other income (expense)		(44)	(57)	(67)
Consolidated profit before taxes		3,995	7,812	7,822
Provision (benefit) for income taxes		1,006	1,746	1,698
Profit (loss) of consolidated companies		2,989	6,066	6,124
Equity in profit (loss) of unconsolidated affiliated companies		14	28	24
Profit (loss) of consolidated and affiliated companies		3,003	6,094	6,148
Less: comprehensive income attributable to the noncontrolling interests		5	1	1
Profit (loss)	[1]	$ 2,998	$ 6,093	$ 6,147
Profit (loss) per common share (in dollars per share)		$ 5.51	$ 10.85	$ 10.39
Profit (loss) per common share - diluted (in dollars per share)	[2]	$ 5.46	$ 10.74	$ 10.26
Weighted-average common shares outstanding (millions)
Basic (in shares)		544.1	561.6	591.4
Diluted (in shares)	[2]	548.6	567.5	599.4
Machinery, Energy & Transportation
Sales and revenues:
Sales and revenues		$ 39,022	$ 50,755	$ 51,822
Financial Products
Sales and revenues:
Sales and revenues		2,726	3,045	2,900
Operating costs:
Interest Expense		589	754	722
All other excluding Financial Products
Operating costs:
Interest Expense		$ 514	$ 421	$ 404

[1]	Profit attributable to common shareholders.
[2]	Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

Consolidated Comprehensive Inco

Consolidated Comprehensive Income - USD ($) $ in Millions	12 Months Ended
Consolidated Comprehensive Income - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Profit (loss) of consolidated and affiliated companies	$ 3,003	$ 6,094	$ 6,148
Foreign currency translation	577	16	(396)
Pension and other post retirement benefits	(29)	(34)	(34)
Derivative financial instruments	97	(8)	(39)
Available-for-sale securities	34	35	(12)
Total other comprehensive income (loss), net of tax	679	9	(481)
Comprehensive income (loss)	3,682	6,103	5,667
Less: comprehensive income attributable to the noncontrolling interests	5	1	1
Comprehensive income (loss) attributable to shareholders	$ 3,677	$ 6,102	$ 5,666

Consolidated Financial Position

Consolidated Financial Position - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and short-term investments	$ 9,352	$ 8,284
Receivables - trade and other	7,317	8,568
Receivables - finance	9,463	9,336
Prepaid Expense and Other Assets, Current	1,930	1,739
Inventories	11,402	11,266
Total current assets	39,464	39,193
Property, Plant and Equipment, Net	12,401	12,904
Long-term receivables - trade and other	1,185	1,193
Long-term receivables - finance	12,222	12,651
Noncurrent deferred and refundable income taxes	1,523	1,411
Intangible assets	1,308	1,565
Goodwill	6,394	6,196
Other assets	3,827	3,340
Total assets	78,324	78,453
Short-term borrowings:
Short-term borrowings	2,015	5,166
Accounts payable	6,128	5,957
Accrued expenses	3,642	3,750
Accrued wages, salaries and employee benefits	1,096	1,629
Customer advances	1,108	1,187
Dividends payable	562	567
Other current liabilities	2,017	2,155
Long-term debt due within one year:
Total current liabilities	25,717	26,621
Long-term debt due after one year:
Liability for postemployment benefits	6,872	6,599
Other liabilities	4,358	4,323
SPC liabilities in consolidated statement	62,946	63,824
Shareholders' equity
Authorized shares: 2,000,000,000 Issued shares: (2020 and 2019 – 814,894,624 shares) at paid-in amount	6,230	5,935
Treasury Stock, Value	(25,178)	(24,217)
Profit employed in the business	35,167	34,437
Accumulated other comprehensive income (loss)	(888)	(1,567)
Noncontrolling interests	47	41
Total stockholders' equity	15,378	14,629
Total liabilities and stockholders' equity	$ 78,324	$ 78,453
Common Stock, par value (in dollars per share)	$ 1
Common Stock, Authorized shares	2,000,000,000	2,000,000,000
Common Stock, Issued shares	814,894,624	814,894,624
Treasury Stock, shares	269,590,777	264,812,014
Machinery, Energy & Transportation
Short-term borrowings:
Short-term borrowings	$ 10	$ 5
Long-term debt due within one year:
Long-term Debt and Lease Obligation, Current	1,420	16
Long-term debt due after one year:
Long-term Debt and Lease Obligation	9,749	9,141
Financial Products
Short-term borrowings:
Short-term borrowings	2,005	5,161
Long-term debt due within one year:
Long-term Debt and Lease Obligation, Current	7,729	6,194
Long-term debt due after one year:
Long-term Debt and Lease Obligation	$ 16,250	$ 17,140

Changes in Consolidated Shareho

Changes in Consolidated Shareholders' Equity - USD ($) $ in Millions		Total	Cumulative Effect, Period of Adoption, Adjustment [Member]	Cumulative Effect, Period of Adoption, Adjusted Balance	Common Stock	Common StockCumulative Effect, Period of Adoption, Adjustment [Member]	Common StockCumulative Effect, Period of Adoption, Adjusted Balance	Treasury stock	Treasury stockCumulative Effect, Period of Adoption, Adjustment [Member]	Treasury stockCumulative Effect, Period of Adoption, Adjusted Balance	Profit employed in the business	Profit employed in the businessCumulative Effect, Period of Adoption, Adjustment [Member]	Profit employed in the businessCumulative Effect, Period of Adoption, Adjusted Balance	Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss)Cumulative Effect, Period of Adoption, Adjustment [Member]	Accumulated other comprehensive income (loss)Cumulative Effect, Period of Adoption, Adjusted Balance	Noncontrolling interests	Noncontrolling interestsCumulative Effect, Period of Adoption, Adjustment [Member]	Noncontrolling interestsCumulative Effect, Period of Adoption, Adjusted Balance
Dividends per share declared		$ 3.36
Balance at Dec. 31, 2017		$ 13,766		$ 13,719	$ 5,593		$ 5,593	$ (17,005)		$ (17,005)	$ 26,301		$ 26,265	$ (1,192)		$ (1,203)	$ 69		$ 69
Balance (Revenue Recognition) at Dec. 31, 2017			$ (12)			$ 0			$ 0			$ (12)			$ 0			$ 0
Balance (Tax accounting for intra-entity asset transfers) at Dec. 31, 2017			(35)			0			0			(35)			0			0
Balance (Recognition and measurement of financial assets and liabilities) at Dec. 31, 2017			0			0			0			11			(11)			0
Increase (Decrease) in Stockholders' Equity
Profit (loss) of consolidated and affiliated companies		6,148			0			0			6,147			0			1
Foreign currency translation		(396)			0			0			0			(396)			0
Pension and other post retirement benefits		(34)			0			0			0			34			0
Derivative financial instruments, net of tax		(39)			0			0			0			(39)			0
Available-for-sale securities		(12)			0			0			0			(12)			0
Change in ownership from noncontrolling interests		(53)			(25)			0			0			0			(28)
Dividends declared		(1,985)			0			0			(1,985)			0			0
Distribution to noncontrolling interests		(1)			0			0			0			0			(1)
Common shares issued from treasury stock for stock-based compensation		313			41			272			0			0			0
Stock-based compensation expense		197			197			0			0			0			0
Common shares repurchased		(3,798)			0			(3,798)			0			0			0
Other		21			(21)			0			0			0			0
Balance at Dec. 31, 2018		$ 14,080		14,315	5,827		5,827	(20,531)		(20,531)	30,427		30,554	(1,684)		(1,576)	41		41
Balance (Lease accounting) at Dec. 31, 2018			235			0			0			235			0			0
Balance (Reclassification of certain tax effects from accumulated other comprehensive income) at Dec. 31, 2018			0			0			0			(108)			108			0
Increase (Decrease) in Stockholders' Equity
Common shares issued from treasury stock for stock-based compensation (in shares)		5,590,641
Common shares repurchased (in shares)		27,673,675
Dividends per share declared		$ 3.95
Profit (loss) of consolidated and affiliated companies		$ 6,094			0			0			6,093			0			1
Foreign currency translation		16			0			0			0			16			0
Pension and other post retirement benefits		(34)			0			0			0			34			0
Derivative financial instruments, net of tax		(8)			0			0			0			(8)			0
Available-for-sale securities		35			0			0			0			35			0
Dividends declared		(2,210)			0			0			(2,210)			0			0
Distribution to noncontrolling interests		(3)			0			0			0			0			(3)
Common shares issued from treasury stock for stock-based compensation		238			(4)			242			0			0			0
Stock-based compensation expense		205			205			0			0			0			0
Common shares repurchased		(3,928)			0			(3,928)			0			0			0
Other		(91)			93			0			0			0			(2)
Balance at Dec. 31, 2019		$ 14,629		$ 14,604	5,935		$ 5,935	(24,217)		$ (24,217)	34,437		$ 34,412	(1,567)		$ (1,567)	41		$ 41
Balance (Credit losses) at Dec. 31, 2019	[1]		$ (25)			$ 0			$ 0			$ (25)			$ 0			$ 0
Increase (Decrease) in Stockholders' Equity
Common shares issued from treasury stock for stock-based compensation (in shares)		5,126,379
Common shares repurchased (in shares)		30,586,507
Dividends per share declared		$ 4.12
Profit (loss) of consolidated and affiliated companies		$ 3,003			0			0			2,998			0			5
Foreign currency translation		577			0			0			0			577			0
Pension and other post retirement benefits		(29)			0			0			0			(29)			0
Derivative financial instruments, net of tax		97			0			0			0			97			0
Available-for-sale securities		34			0			0			0			34			0
Dividends declared	[2]	(2,247)			0			0			(2,247)			0			0
Common shares issued from treasury stock for stock-based compensation		229			(61)			290			0			0			0
Stock-based compensation expense		202			202			0			0			0			0
Common shares repurchased	[3]	(1,250)			0			(1,250)			0			0			0
Other		(158)			154			(1)			4			0			1
Balance at Dec. 31, 2020		$ 15,378			$ 6,230			$ (25,178)			$ 35,167			$ (888)			$ 47
Increase (Decrease) in Stockholders' Equity
Common shares issued from treasury stock for stock-based compensation (in shares)		5,317,243
Common shares repurchased (in shares)		10,096,006

[1]	See Note 1J regarding new accounting guidance.
[2]	Dividends per share of common stock of $4.12, $3.95 and $3.36 were declared in the years ended December 31, 2020, 2019 and 2018, respectively.
[3]	See Note 16 regarding shares repurchased.

Consolidated Statement of Cash

Consolidated Statement of Cash Flow - USD ($) $ in Millions	12 Months Ended
Consolidated Statement of Cash Flow - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flow from operating activities:
Profit (loss) of consolidated and affiliated companies	$ 3,003	$ 6,094	$ 6,148
Adjustments for non-cash items:
Depreciation and amortization	2,432	2,577	2,766
Actuarial (gain) loss on pension and postretirement benefits	383	468	495
Provision (benefit) for deferred income taxes	(74)	28	220
Other	1,000	675	1,006
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other	1,442	171	(1,619)
Inventories	(34)	274	(1,579)
Accounts payable	98	(1,025)	709
Accrued expenses	(366)	172	101
Accrued wages, salaries and employee benefits	(544)	(757)	(162)
Customer advances	(126)	(10)	(183)
Other assets - net	(201)	(93)	41
Other liabilities - net	(686)	(1,662)	(1,385)
Net Cash Provided by (Used in) Operating Activities	6,327	6,912	6,558
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others	(978)	(1,056)	(1,276)
Expenditures for equipment leased to others	(1,137)	(1,613)	(1,640)
Proceeds from disposals of leased assets and property, plant and equipment	772	1,153	936
Additions to finance receivables	(12,385)	(12,777)	(12,183)
Collections of finance receivables	12,646	12,183	10,901
Proceeds from sale of finance receivables	42	235	477
Investments and acquisitions (net of cash acquired)	(111)	(47)	(392)
Proceeds from sale of businesses and investments (net of cash sold)	25	41	16
Proceeds from sale of securities	345	529	442
Investments in securities	(638)	(552)	(506)
Other - net	(66)	(24)	13
Net Cash Provided by (Used in) Investing Activities	(1,485)	(1,928)	(3,212)
Cash flow from financing activities:
Dividends paid	(2,243)	(2,132)	(1,951)
Common stock issued, including treasury shares reissued	229	238	313
Common shares repurchased	(1,130)	(4,047)	(3,798)
Proceeds from debt issued (original maturities greater than three months):
Machinery, Energy & Transportation	1,991	1,479	57
Financial Products	8,440	8,362	8,850
Payments on debt (original maturities greater than three months):
Machinery, Energy & Transportation	(26)	(12)	(7)
Financial Products	(8,211)	(8,285)	(7,822)
Short-term borrowings - net (original maturities three months or less)	(2,804)	(138)	762
Other - net	(1)	(3)	(54)
Net Cash Provided by (Used in) Financing Activities	(3,755)	(4,538)	(3,650)
Cash and short- term investments and restricted cash at beginning of period	8,292	7,890	8,320
Cash and short- term investments and restricted cash at end of period	9,366	8,292	7,890
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	(13)	(44)	(126)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total	$ 1,074	$ 402	$ (430)

Operations and summary of signi

Operations and summary of significant accounting policies	12 Months Ended
Operations and summary of significant accounting policies	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Operations and summary of significant accounting policies	Operations and summary of significant accounting policiesNature of operations Information in our financial statements and related commentary are presented in the following categories: Machinery, Energy & Transportation (ME&T) – We define ME&T as Caterpillar Inc. and its subsidiaries, excluding Financial Products. ME&T's information relates to the design, manufacturing and marketing of our products. Financial Products – We define Financial Products as our finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment. We sell our products primarily under the brands “Caterpillar,” “CAT,” design versions of “CAT” and “Caterpillar,” “EMD,” “FG Wilson,” “MaK,” “MWM,” “Perkins,” “Progress Rail,” “SEM” and “Solar Turbines”. We conduct operations in our ME&T line of business under highly competitive conditions, including intense price competition. We place great emphasis on the high quality and performance of our products and our dealers’ service support. Although no one competitor is believed to produce all of the same types of equipment that we do, there are numerous companies, large and small, which compete with us in the sale of each of our products. We distribute our machines principally through a worldwide organization of dealers (dealer network), 45 located in the United States and 116 located outside the United States, serving 192 countries. We sell reciprocating engines principally through the dealer network and to other manufacturers for use in products. We also sell some of the reciprocating engines manufactured by our subsidiary Perkins Engines Company Limited through its worldwide network of 92 distributors covering 183 countries. We sell the FG Wilson branded electric power generation systems primarily manufactured by our subsidiary Caterpillar Northern Ireland Limited through its worldwide network of 150 distributors covering 109 countries. We also sell some of the large, medium speed reciprocating engines under the MaK brand through a worldwide network of 20 distributors covering 130 countries. Our dealers do not deal exclusively with our products; however, in most cases sales and servicing of our products are the dealers’ principal business. We sell some products, primarily turbines and locomotives, to end customers through sales forces employed by the company. At times, these employees are assisted by independent sales representatives. The Financial Products line of business also conducts operations under highly competitive conditions. Financing for users of Caterpillar products is available through a variety of competitive sources, principally commercial banks and finance and leasing companies. We offer various financing, insurance and risk management products designed to support sales of our products and generate financing income for our company. We conduct a significant portion of Financial Products activity in North America, with additional offices in Latin America, Asia/Pacific, Europe, Africa and the Middle East. The consolidated financial statements include the accounts of Caterpillar Inc. and its subsidiaries where we have a controlling financial interest. Investments in companies where our ownership exceeds 20 percent and we do not have a controlling interest or where the ownership is less than 20 percent and for which we have a significant influence are accounted for by the equity method. We consolidate all variable interest entities (VIEs) where Caterpillar Inc. is the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. See Note 21 for further discussion on a consolidated VIE. Cat Financial has end-user customers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support to these entities and therefore have a variable interest, we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. These risks were evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses. We include shipping and handling costs in Cost of goods sold in Statement 1. Other operating (income) expenses primarily include Cat Financial’s depreciation on equipment leased to others, Insurance Services’ underwriting expenses, (gains) losses on disposal of long-lived assets, long-lived asset impairment charges, legal settlements and accruals, contract termination costs and employee separation charges. Prepaid expenses and other current assets in Statement 3 primarily include prepaid insurance, contract assets, right of return assets, prepaid and refundable income taxes, assets held for sale, core to be returned for remanufacturing, restricted cash and other short-term investments. C. Inventories We state inventories at the lower of cost or net realizable value. We principally determine cost using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis represented about 60 percent of total inventories at December 31, 2020 and 2019. If the FIFO (first-in, first-out) method had been in use, inventories would have been $2,132 million and $2,086 million higher than reported at December 31, 2020 and 2019, respectively. D. Depreciation and amortization We compute depreciation of plant and equipment principally using accelerated methods. We compute depreciation on equipment leased to others, primarily for Financial Products, using the straight-line method over the term of the lease. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term. In 2020, 2019 and 2018, Cat Financial depreciation on equipment leased to others was $758 million, $813 million and $819 million, respectively, which we include in Other operating (income) expenses in Statement 1. In 2020, 2019 and 2018, consolidated depreciation expense was $2,122 million, $2,253 million and $2,435 million, respectively. We compute amortization of purchased finite-lived intangibles principally using the straight-line method, generally not to exceed a period of 20 years. E. Foreign currency translation The functional currency for most of our ME&T consolidated subsidiaries is the U.S. dollar. The functional currency for most of our Financial Products consolidated subsidiaries is the respective local currency. We include gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency in Other income (expense) in Statement 1. We include gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars in Accumulated other comprehensive income (loss) in Statement 3. F. Derivative financial instruments Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates and commodity prices. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate and commodity price exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option and cross currency contracts, interest rate contracts and commodity forward and option contracts. All derivatives are recorded at fair value. See Note 4 for more information. G. Income taxes We determine the provision for income taxes using the asset and liability approach taking into account guidance related to uncertain tax positions. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. We recognize a current liability for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. We adjust deferred taxes for enacted changes in tax rates and tax laws. We record valuation allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. See Note 6 for further discussion. H. Goodwill For acquisitions accounted for as a business combination, goodwill represents the excess of the cost over the fair value of the net assets acquired. We are required to test goodwill for impairment, at the reporting unit level, annually and when events or circumstances make it more likely than not that an impairment may have occurred. A reporting unit is an operating segment or one level below an operating segment (referred to as a component) to which goodwill is assigned when initially recorded. We assign goodwill to reporting units based on our integration plans and the expected synergies resulting from the acquisition. Because Caterpillar is a highly integrated company, the businesses we acquire are sometimes combined with or integrated into existing reporting units. When changes occur in the composition of our operating segments or reporting units, we reassign goodwill to the affected reporting units based on their relative fair values. We perform our annual goodwill impairment test as of October 1 and monitor for interim triggering events on an ongoing basis. We review goodwill for impairment utilizing either a qualitative assessment or a quantitative goodwill impairment test. If we choose to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. For reporting units where we perform the quantitative goodwill impairment test, we compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows, to the respective carrying value, which includes goodwill. If the fair value of the reporting unit exceeds its carrying value, we do not consider the goodwill impaired. If the carrying value is higher than the fair value, we would recognize the difference as an impairment loss. See Note 10 for further details. I. Estimates in financial statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts. The more significant estimates include: residual values for leased assets; fair values for goodwill impairment tests; warranty liability and reserves for product liability and insurance losses, postretirement benefits, post-sale discounts, credit losses and income taxes. J. New accounting guidance A. Adoption of new accounting standards Credit losses (Accounting Standards Update (ASU) 2016-13) – In June 2016, the Financial Accounting Standards Board (FASB) issued new accounting guidance to introduce a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The new guidance applies to loans, accounts receivable, trade receivables, other financial assets measured at amortized cost, loan commitments and other off-balance sheet credit exposures. The new guidance also applies to debt securities and other financial assets measured at fair value through other comprehensive income. The new guidance was effective January 1, 2020. We applied the new guidance using a modified retrospective approach through a cumulative effect adjustment to retained earnings as of January 1, 2020. We have not recast prior period comparative information, which we continue to report under the accounting guidance in effect for those periods. Our adoption of the new guidance did not have a material impact on our financial statements. We adopted the following ASUs during 2020, none of which had a material impact on our financial statements: ASU Description Effective Date 2018-13 Fair value measurement January 1, 2020 2018-15 Internal-use software January 1, 2020 2018-19 Codification improvements - Credit losses January 1, 2020 2019-04 Codification improvements - Credit losses, Derivatives & hedging, and Financial instruments January 1, 2020 2019-05 Financial instruments - Credit losses January 1, 2020 2019-11 Codification improvements - Credit losses January 1, 2020 2019-12 Simplifying accounting for income taxes January 1, 2020 2020-02 Financial instruments - Credit losses January 1, 2020 2020-03 Codification improvements - Financial instruments January 1, 2020 2018-14 Disclosure requirements - Defined benefit plans December 31, 2020 B. Accounting standards issued but not yet adopted Reference rate reform (ASU 2020-04) – In March 2020, the FASB issued accounting guidance to ease the potential burden in accounting for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and may be elected over time as reference rate reform activities occur between March 12, 2020 through December 31, 2022. In January 2021, we elected to adopt optional expedients impacting our derivative instruments. We continue to evaluate the impact of reference rate reform on our other contracts and assess the impacts of adopting this guidance on our financial statements. We consider the applicability and impact of all ASUs. We assessed ASUs not listed above and determined that they either were not applicable or were not expected to have a material impact on our financial statements.

Sales and revenue recognition S

Sales and revenue recognition Sales and revenue recognition (Notes)	12 Months Ended
	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer [Text Block]	Sales and revenue recognition A. Sales of Machinery, Energy & Transportation We recognize sales of ME&T when all the following criteria are satisfied: (i) a contract with an independently owned and operated dealer or an end user exists which has commercial substance; (ii) it is probable we will collect the amount charged to the dealer or end user; and (iii) we have completed our performance obligation whereby the dealer or end user has obtained control of the product. A contract with commercial substance exists once we receive and accept a purchase order under a dealer sales agreement, or once we enter into a contract with an end user. If collectibility is not probable, the sale is deferred and not recognized until collection is probable or payment is received. Control of our products typically transfers when title and risk of ownership of the product has transferred to the dealer or end user. Typically, where product is produced and sold in the same country, title and risk of ownership transfer when we ship the product. Products that are exported from a country for sale typically transfer title and risk of ownership at the border of the destination country. Our remanufacturing operations are primarily focused on the remanufacture of Cat engines and components and rail related products. In this business, we inspect, clean and remanufacture used engines and related components (core). In connection with the sale of our remanufactured product to dealers, we collect a deposit that is repaid if the dealer returns an acceptable core within a specified time period. Caterpillar owns and has title to the cores when they are returned from dealers. The rebuilt engine or component (the core plus any new content) is then sold as a remanufactured product to dealers and end users. We recognize revenue pursuant to the same transfer of control criteria as ME&T sales noted above. At the time of sale, we recognize the deposit in Other current liabilities in Statement 3, and we recognize the core to be returned as an asset in Prepaid expenses and other current assets in Statement 3 at the estimated replacement cost (based on historical experience with usable cores). Upon receipt of an acceptable core, we repay the deposit and relieve the liability. We then transfer the returned core asset into inventory. In the event that the deposit is forfeited (i.e., upon failure by the dealer to return an acceptable core in the specified time period), we recognize the core deposit and the cost of the core in Sales and Cost of goods sold, respectively. We provide discounts to dealers through merchandising programs. We have numerous programs that are designed to promote the sale of our products. The most common dealer programs provide a discount when the dealer sells a product to a targeted end user. Generally, we estimate the cost of these discounts for each product by model by geographic region based on historical experience and known changes in merchandising programs. We report the cost of these discounts as a reduction to the transaction price when we recognize the product sale. We accrue a corresponding post-sale discount reserve in Statement 3, which represents discounts we expect to pay on units sold. If discounts paid differ from those estimated, we report the difference as a change in the transaction price. Except for replacement parts, no right of return exists on the sale of our products. We estimate replacement part returns based on historical experience and recognize a parts return asset in Prepaid expenses and other current assets in Statement 3, which represents our right to recover replacement parts we expect will be returned. We also recognize a refund liability in Other current liabilities in Statement 3 for the refund we expect to pay for returned parts. If actual replacement part returns differ from those estimated, we recognize the difference in the estimated replacement part return asset and refund liability in Cost of goods sold and Sales, respectively. Our standard dealer invoice terms are established by marketing region. Our invoice terms for end user sales are established by the responsible business unit. Payments from dealers are due shortly after the time of sale. When we make a sale to a dealer, the dealer is responsible for payment even if the product is not sold to an end user. Dealers and end users must make payment within the established invoice terms to avoid potential interest costs. Interest at or above prevailing market rates may be charged on any past due balance, and generally our practice is to not forgive this interest. In addition, Cat Financial provides wholesale inventory financing for a dealer’s purchase of inventory. Wholesale inventory receivables have varying payment terms. We include wholesale inventory receivables in Receivables – trade and other and Long-term receivables – trade and other in Statement 3. See Note 7 for further information. Trade receivables from dealers and end users were $6,310 million, $7,648 million and $7,743 million as of December 31, 2020, 2019 and 2018, respectively. We recognize trade receivables from dealers and end users in Receivables – trade and other in Statement 3. Long-term trade receivables from dealers and end users were $657 million, $693 million and $674 million as of December 31, 2020, 2019 and 2018, respectively. We recognize long-term trade receivables from dealers and end users in Long-term receivables – trade and other in Statement 3. We establish an allowance for credit losses for ME&T receivables when it becomes probable that we will not collect the receivable. Our allowance for credit losses is not significant. We invoice in advance of recognizing the sale of certain products. We recognize advanced customer payments as a contract liability in Customer advances and Other liabilities in Statement 3. Contract liabilities were $1,526 million, $1,654 million and $1,680 million as of December 31, 2020, 2019 and 2018, respectively. We reduce the contract liability when we recognize revenue. During 2020, we recognized $1,012 million of revenue that was recorded as a contract liability at the beginning of 2020. During 2019, we recognized $1,171 million of revenue that was recorded as a contract liability at the beginning of 2019. We have elected the practical expedient to not adjust the amount of revenue to be recognized under a contract with a dealer or end user for the effects of time value of money when the timing difference between receipt of payment and recognition of revenue is less than one year. As of December 31, 2020, we have entered into contracts with dealers and end users for which sales have not been recognized as we have not satisfied our performance obligations and transferred control of the products. The dollar amount of unsatisfied performance obligations for contracts with an original duration greater than one year is $5.7 billion, of which $2.2 billion is expected to be completed and revenue recognized in the twelve months following December 31, 2020. We have elected the practical expedient to not disclose unsatisfied performance obligations with an original contract duration of one year or less. Contracts with an original duration of one year or less are primarily sales to dealers for machinery, engines and replacement parts. We exclude sales and other related taxes from the transaction price. We account for shipping and handling costs associated with outbound freight after control over a product has transferred as a fulfillment cost which is included in Cost of goods sold. We provide a standard manufacturer’s warranty of our products at no additional cost. At the time we recognize a sale, we record estimated future warranty costs. See Note 21 for further discussion of our product warranty liabilities. See Note 23 for further disaggregated sales and revenues information. B. Revenues of Financial Products Revenues of Financial Products are generated primarily from finance revenue on finance receivables and rental payments on operating leases. We record finance revenue over the life of the related finance receivable using the interest method, including the accretion of certain direct origination costs that are deferred. We recognize revenue from rental payments received on operating leases on a straight-line basis over the term of the lease. We suspend recognition of finance revenue and operating lease revenue and place the account on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). We resume recognition of revenue, and recognize previously suspended income, when the account becomes current and we consider collection of remaining amounts to be probable. We write off interest earned but uncollected prior to the receivable being placed on non-accrual status through Provision for credit losses when, in the judgment of management, we consider it to be uncollectible. See Note 7 for more information.

Stock-based compensation

Stock-based compensation	12 Months Ended
Stock-based compensation	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Stock-based compensation	Stock-based compensation Our stock-based compensation plans primarily provide for the granting of stock options, restricted stock units (RSUs) and performance-based restricted stock units (PRSUs) to Officers and other key employees, as well as non-employee Directors. Stock options permit a holder to buy Caterpillar stock at the stock’s price when the option was granted. RSUs are agreements to issue shares of Caterpillar stock at the time of vesting. PRSUs are similar to RSUs and include performance conditions in the vesting terms of the award. Our long-standing practices and policies specify that the Compensation Committee (the Committee) of the Board of Directors approve all stock-based compensation awards. The award approval process specifies the grant date, value and terms of the award. We consistently apply the same terms and conditions to all employee grants, including Officers. The Committee approves all individual Officer grants. We determine the number of stock-based compensation award units included in an individual’s award based on the methodology approved by the Committee. The exercise price methodology approved by the Committee is the closing price of the Company stock on the date of the grant. In June of 2014, shareholders approved the Caterpillar Inc. 2014 Long-Term Incentive Plan (the Plan) under which all new stock-based compensation awards are granted. In June of 2017, shareholders amended and restated the Plan. The Plan initially provided that up to 38,800,000 Common Shares would be reserved for future issuance under the Plan, subject to adjustment in certain events. Subsequent to the shareholder approval of the amendment and restatement of the Plan, an additional 36,000,000 Common Shares became available for all awards under the Plan. Common stock issued from Treasury stock under the plans totaled 5,317,243 for 2020, 5,126,379 for 2019 and 5,590,641 for 2018. The total number of shares authorized for equity awards under the amended and restated Caterpillar Inc. 2014 Long-Term Incentive Plan is 74,800,000, of which 36,488,284 shares remained available for issuance as of December 31, 2020. Stock option and RSU awards generally vest according to a three-year graded vesting schedule. One-third of the award will become vested on the first anniversary of the grant date, one-third of the award will become vested on the second anniversary of the grant date and one-third of the award will become vested on the third anniversary of the grant date. PRSU awards generally have a three-year performance period and cliff vest at the end of the period based upon achievement of performance targets established at the time of grant. Upon separation from service, if the participant is 55 years of age or older with more than five years of service, the participant meets the criteria for a “Long Service Separation.” Award terms for stock option and RSU grants allow for continued vesting as of each vesting date specified in the award document for employees who meet the criteria for a “Long Service Separation” and fulfill a requisite service period of six months. We recognize compensation expense for eligible employees for the grants over the period from the grant date to the end date of the six-month requisite service period. For employees who become eligible for a “Long Service Separation” subsequent to the end date of the six-month requisite service period and prior to the completion of the vesting period, we recognized compensation expense over the period from the grant date to the date eligibility is achieved. For PRSU awards granted in 2018, only a prorated number of shares may vest at the end of the performance period based upon achievement of the performance target, with the proration based upon the number of months of continuous employment during the three-year performance period. Employees with a “Long Service Separation” must also fulfill a six-month requisite service period in order to be eligible for the prorated vesting of outstanding PRSU awards granted in 2018. We recognize compensation expense for the 2018 PRSU grant on a straight-line basis over the three-year performance period for all participants. Award terms for the 2020 and 2019 PRSU grants allowed for continued vesting upon achievement of the performance target specified in the award document for employees who meet the criteria for a “Long Service Separation” and fulfill a requisite service period of six months. We recognize compensation expense for the 2020 and 2019 PRSU grants with respect to employees who have met the criteria for a “Long Service Separation” over the period from the grant date to the end of the six-month requisite service period. For employees who become eligible for a “Long Service Separation” subsequent to the end date of the six-month requisite service period and prior to the completion of the vesting period, we recognize compensation expense over the period from the grant date to the date eligibility is achieved. At grant, option awards have a term life of ten years. For awards granted prior to 2016, if the “Long Service Separation” criteria are met, the vested options have a life that is the lesser of ten years from the original grant date or five years from the separation date. For awards granted beginning in 2016, the vested options have a life equal to ten years from the original grant date. Accounting guidance on share-based payments requires companies to estimate the fair value of options on the date of grant using an option-pricing model. The fair value of our option grants was estimated using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model considers a range of assumptions related to volatility, risk-free interest rate and historical employee behavior. Expected volatility was based on historical Caterpillar stock price movement and current implied volatilities from traded options on Caterpillar stock. The risk-free interest rate was based on U.S. Treasury security yields at the time of grant. The weighted-average dividend yield was based on historical information. We determine the expected life from the actual historical employee exercise behavior. The following table provides the assumptions used in determining the fair value of the Option awards for the years ended December 31, 2020, 2019 and 2018, respectively. Grant Year 2020 2019 2018 Weighted-average dividend yield 2.5 % 2.6 % 2.7 % Weighted-average volatility 25.7 % 29.1 % 30.2 % Range of volatilities 24.5%-29.7% 25.1%-38.7% 21.5%- 33.0% Range of risk-free interest rates 1.21%-1.39% 2.48%-2.68% 2.02%-2.87% Weighted-average expected lives 8 years 7 years 8 years Beginning with the 2018 grant, we credit RSU and PRSU awards with dividend equivalent units on each date that we pay a cash dividend to holders of Common stock. We determine the fair value of the RSU and PRSU awards granted in 2020, 2019 and 2018 as the closing stock price on the date of the grant. Please refer to Tables I and II below for additional information on our stock-based compensation awards. TABLE I — Financial Information Related to Stock-based Compensation Stock options RSUs PRSUs Shares Weighted- Shares Weighted- Shares Weighted- Outstanding at January 1, 2020 14,464,994 $ 99.29 1,369,203 $ 132.88 670,115 $ 144.46 Granted to officers and key employees 1,913,888 $ 127.60 743,783 $ 128.07 399,149 $ 128.41 Exercised (6,247,628) $ 91.21 — $ — — $ — Vested — $ — (724,606) $ 124.25 (326,217) $ 151.12 Forfeited / expired (54,271) $ 113.64 (60,430) $ 133.28 (15,290) $ 141.15 Outstanding at December 31, 2020 10,076,983 $ 109.60 1,327,950 $ 134.89 727,757 $ 132.81 Exercisable at December 31, 2020 6,711,398 $ 97.29 Stock options outstanding and exercisable as of December 31, 2020: Outstanding Exercisable Exercise Prices Shares Outstanding at 12/31/2020 Weighted- Weighted- Aggregate Intrinsic Value 1 Shares Outstanding at 12/31/2020 Weighted- Weighted- Aggregate Intrinsic Value 1 $74.77-$83.00 3,076,885 4.76 $ 78.72 $ 318 3,076,885 4.76 $ 78.72 $ 318 $89.75-$96.31 2,245,247 4.82 $ 94.92 196 2,244,742 4.82 $ 94.92 196 $102.13-$110.09 164,103 1.01 $ 108.70 12 164,103 1.01 $ 108.70 12 $127.60-$138.51 3,284,693 8.86 $ 132.16 164 408,768 8.27 $ 138.35 18 $141.32-$151.12 1,306,055 7.28 $ 150.95 41 816,900 7.28 $ 150.94 6 10,076,983 $ 109.60 $ 731 6,711,398 $ 97.29 $ 550 1 The difference between a stock award’s exercise price and the underlying stock’s closing market price at December 31, 2020, for awards with market price greater than the exercise price. Amounts are in millions of dollars. The computations of weighted-average exercise prices and aggregate intrinsic values are not applicable to RSUs or PRSUs since these awards represent an agreement to issue shares of stock at the time of vesting. At December 31, 2020, there were 1,327,950 outstanding RSUs with a weighted average remaining contractual life of 1.5 years and 727,757 outstanding PRSUs with a weighted-average remaining contractual life of 1.5 years. TABLE II— Additional Stock-based Award Information (Dollars in millions except per share data) 2020 2019 2018 Stock options activity: Weighted-average fair value per share of stock awards granted $ 25.98 $ 40.98 $ 46.09 Intrinsic value of stock awards exercised $ 386 $ 264 $ 348 Fair value of stock awards vested 1 $ 64 $ 100 $ 86 Cash received from stock awards exercised $ 282 $ 298 $ 370 RSUs activity: Weighted-average fair value per share of stock awards granted $ 128.07 $ 138.61 $ 150.58 Fair value of stock awards vested 2 $ 87 $ 110 $ 180 PRSUs activity: Weighted-average fair value per share of stock awards granted $ 128.41 $ 138.67 $ 150.98 Fair value of stock awards vested 2 $ 59 $ 59 $ 70 1 Based on the grant date fair value. 2 Based on the underlying stock’s closing market price on the vesting date. In accordance with guidance on share-based payments, stock-based compensation expense is based on the grant date fair value and is classified within Cost of goods sold, Selling, general and administrative expenses and Research and development expenses corresponding to the same line item as the cash compensation paid to respective employees, officers and non-employee directors. We recognize stock-based compensation expense on a straight-line basis over the requisite service period for awards with terms that specify cliff or graded vesting and contain only service conditions. Stock-based compensation expense for PRSUs is based on the probable number of shares expected to vest and is recognized primarily on a straight-line basis. Before tax, stock-based compensation expense for 2020, 2019 and 2018 was $202 million, $205 million and $197 million, respectively, with a corresponding income tax benefit of $34 million, $35 million and $36 million, respectively. The amount of stock-based compensation expense capitalized for the years ended December 31, 2020, 2019 and 2018 did not have a significant impact on our financial statements. At December 31, 2020, there was $133 million of total unrecognized compensation cost from stock-based compensation arrangements granted under the plans, which is related to non-vested stock-based awards. We expect to recognize the compensation expense over a weighted-average period of approximately 1.6 years. We currently use shares in Treasury stock to satisfy share award exercises.

Derivative financial instrument

Derivative financial instruments and risk management	12 Months Ended
Derivative financial instruments and risk management	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative financial instruments and risk management	Derivative financial instruments and risk management Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates and commodity prices. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate and commodity price exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option and cross currency contracts, interest rate contracts and commodity forward and option contracts. Our derivative activities are subject to the management, direction and control of our senior financial officers. We present at least annually to the Audit Committee of the Board of Directors on our risk management practices, including our use of financial derivative instruments. We recognize all derivatives in Statement 3 at their fair value. On the date the derivative contract is entered into, we designate the derivative as (1) a hedge of the fair value of a recognized asset or liability (fair value hedge), (2) a hedge of a forecasted transaction or the variability of cash flow (cash flow hedge) or (3) an undesignated instrument. We record in current earnings changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged recognized asset or liability that is attributable to the hedged risk. We record in Accumulated other comprehensive income (loss) (AOCI), to the extent effective, in Statement 3 changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge until they are reclassified to earnings in the same period or periods during which the hedged transaction affects earnings. We report changes in the fair value of undesignated derivative instruments in current earnings. We classify cash flows from designated derivative financial instruments within the same category as the item being hedged on Statement 5. We include cash flows from undesignated derivative financial instruments in the investing category on Statement 5. We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities in Statement 3 and linking cash flow hedges to specific forecasted transactions or variability of cash flow. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the designated derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flow of hedged items. When a derivative is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, we discontinue hedge accounting prospectively, in accordance with the derecognition criteria for hedge accounting. A. Foreign currency exchange rate risk Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. Our ME&T operations purchase, manufacture and sell products in many locations around the world. As we have a diversified revenue and cost base, we manage our future foreign currency cash flow exposure on a net basis. We use foreign currency forward and option contracts to manage unmatched foreign currency cash inflow and outflow. Our objective is to minimize the risk of exchange rate movements that would reduce the U.S. dollar value of our foreign currency cash flow. Our policy allows for managing anticipated foreign currency cash flow for up to approximately five years. As of December 31, 2020, the maximum term of these outstanding contracts was approximately 60 months. We generally designate as cash flow hedges at inception of the contract any Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese yuan, Indian rupee, Japanese yen, Mexican peso, Norwegian Krona, Singapore dollar or Thailand baht forward or option contracts that meet the requirements for hedge accounting and the maturity extends beyond the current quarter-end. We perform designation on a specific exposure basis to support hedge accounting. The remainder of ME&T foreign currency contracts are undesignated. In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our assets and liabilities and exchange rate risk associated with future transactions denominated in foreign currencies. Our foreign currency forward and option contracts are primarily undesignated. We designate fixed-to-fixed cross currency contracts as cash flow hedges to protect against movements in exchange rates on foreign currency fixed-rate assets and liabilities. B. Interest rate risk Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate contracts to manage our exposure to interest rate changes. Our ME&T operations generally use fixed-rate debt as a source of funding. Our objective is to minimize the cost of borrowed funds. Our policy allows us to enter into fixed-to-floating interest rate contracts and forward rate agreements to meet that objective. We designate fixed-to-floating interest rate contracts as fair value hedges at inception of the contract, and we designate certain forward rate agreements as cash flow hedges at inception of the contract. Financial Products operations has a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate and duration) of Cat Financial’s debt portfolio with the interest rate profile of our receivables portfolio within predetermined ranges on an ongoing basis. In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the receivables portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move. Our policy allows us to use fixed-to-floating, floating-to-fixed and floating-to-floating interest rate contracts to meet the match-funding objective. We designate fixed-to-floating interest rate contracts as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate. We designate most floating-to-fixed interest rate contracts as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate. We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate contracts at both ME&T and Financial Products. We amortize the gains or losses associated with these contracts at the time of liquidation into earnings over the original term of the previously designated hedged item. C. Commodity price risk Commodity price movements create a degree of risk by affecting the price we must pay for certain raw materials. Our policy is to use commodity forward and option contracts to manage the commodity risk and reduce the cost of purchased materials. Our ME&T operations purchase base and precious metals embedded in the components we purchase from suppliers. Our suppliers pass on to us price changes in the commodity portion of the component cost. In addition, we are subject to price changes on energy products such as natural gas and diesel fuel purchased for operational use. Our objective is to minimize volatility in the price of these commodities. Our policy allows us to enter into commodity forward and option contracts to lock in the purchase price of a portion of these commodities within a five-year horizon. All such commodity forward and option contracts are undesignated. The location and fair value of derivative instruments reported in Statement 3 were as follows: Consolidated Asset (Liability) Fair Value (Millions of dollars) Years ended December 31, 2020 2019 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables — trade and other $ 74 $ 18 Machinery, Energy & Transportation Long-term receivables — trade and other 71 9 Machinery, Energy & Transportation Accrued expenses (36) (20) Machinery, Energy & Transportation Other liabilities (1) — Financial Products Receivables — trade and other 1 54 Financial Products Long-term receivables — trade and other 1 13 Financial Products Accrued expenses (148) (3) Interest rate contracts Machinery, Energy & Transportation Long-term receivables — trade and other 4 — Financial Products Receivables — trade and other 2 — Financial Products Long-term receivables — trade and other 57 5 Financial Products Accrued expenses (5) (25) $ 20 $ 51 Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables — trade and other $ 10 $ 1 Machinery, Energy & Transportation Accrued expenses (1) — Financial Products Receivables — trade and other 17 7 Financial Products Long-term receivables — trade and other 7 5 Financial Products Accrued expenses (107) (22) Commodity contracts Machinery, Energy & Transportation Receivables — trade and other 35 4 Machinery, Energy & Transportation Long-term receivables — trade and other 2 — Machinery, Energy & Transportation Accrued expenses — (1) $ (37) $ (6) The total notional amounts of the derivative instruments were as follows: Years ended December 31, (Millions of dollars) 2020 2019 Machinery, Energy & Transportation $ 3,553 $ 2,563 Financial Products $ 11,260 $ 8,931 The notional amounts of the derivative financial instruments do not represent amounts exchanged by the parties. We calculate the amounts exchanged by the parties by reference to the notional amounts and by other terms of the derivatives, such as foreign currency exchange rates, interest rates or commodity prices. The effect of derivatives designated as hedging instruments on Statement 1 was as follows: Cash Flow Hedges (Millions of dollars) Year ended December 31, 2020 Recognized in Earnings Amount of Classification of Amount of Gains (Losses) Reclassified from AOCI Amount of the line items in Statement 1 Foreign exchange contracts Machinery, Energy & Transportation $ 48 Sales of Machinery, Energy & Transportation $ 2 $ 39,022 Cost of goods sold (55) 29,082 Financial Products (130) Interest expense of Financial Products 32 589 Other income (expense) (164) (44) Interest rate contracts Machinery, Energy & Transportation (11) Interest expense excluding Financial Products (4) 514 Financial Products (23) Interest expense of Financial Products (52) 589 $ (116) $ (241) Year ended December 31, 2019 Recognized in Earnings Amount of Classification of Amount of Gains (Losses) Reclassified from AOCI Amount of the line items in Statement 1 Foreign exchange contracts Machinery, Energy & Transportation $ 34 Sales of Machinery, Energy & Transportation $ 11 $ 50,755 Cost of goods sold (3) 36,630 Financial Products 93 Interest expense of Financial Products 33 754 Other income (expense) 37 (57) Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (4) 421 Financial Products (70) Interest expense of Financial Products (8) 754 $ 57 $ 66 Year ended December 31, 2018 Recognized in Earnings Amount of Classification of Amount of Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (47) Other income (expense) $ (33) $ — Financial Products 165 Other income (expense) 148 — Interest expense of Financial Products 19 — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (3) — Financial Products (38) Interest expense of Financial Products — — $ 80 $ 131 $ — As of December 31, 2020, $14 million of deferred net gains, net of tax, included in equity (AOCI in Statement 3), are expected to be reclassified to current earnings over the next twelve months when earnings are affected by the hedged transactions. The actual amount recorded in current earnings will vary based on exchange rates at the time the hedged transactions impact earnings. The effect of derivatives not designated as hedging instruments on Statement 1 was as follows: Years ended December 31, (Millions of dollars) Classification of Gains (Losses) 2020 2019 2018 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 38 $ 13 $ (54) Financial Products Other income (expense) (112) (37) 19 Commodity contracts Machinery, Energy & Transportation Other income (expense) 11 18 (39) $ (63) $ (6) $ (74) We enter into International Swaps and Derivatives Association (ISDA) master netting agreements within ME&T and Financial Products that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits the company or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. Collateral is generally not required of the counterparties or of our company under the master netting agreements. As of December 31, 2020 and 2019, no cash collateral was received or pledged under the master netting agreements. The effect of the net settlement provisions of the master netting agreements on our derivative balances upon an event of default or termination event was as follows: December 31, 2020 Gross Amounts Not Offset in the Statement of Financial Position (Millions of dollars) Gross Amount of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Net Amount of Assets Presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount of Assets Derivatives Machinery, Energy & Transportation $ 196 $ — $ 196 $ (38) $ — $ 158 Financial Products 85 — 85 (57) — 28 Total $ 281 $ — $ 281 $ (95) $ — $ 186 December 31, 2020 Gross Amounts Not Offset in the Statement of Financial Position (Millions of dollars) Gross Amount of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amount of Liabilities Presented in the Statement of Financial Position Financial Instruments Cash Collateral Pledged Net Amount of Liabilities Derivatives Machinery, Energy & Transportation $ (38) $ — $ (38) $ 38 $ — $ — Financial Products (260) — (260) 57 — (203) Total $ (298) $ — $ (298) $ 95 $ — $ (203) December 31, 2019 Gross Amounts Not Offset in the Statement of Financial Position (Millions of dollars) Gross Amount of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Net Amount of Assets Presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount of Assets Derivatives Machinery, Energy & Transportation $ 32 $ — $ 32 $ (13) $ — $ 19 Financial Products 84 — 84 (21) — 63 Total $ 116 $ — $ 116 $ (34) $ — $ 82 December 31, 2019 Gross Amounts Not Offset in the Statement of Financial Position (Millions of dollars) Gross Amount of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amount of Liabilities Presented in the Statement of Financial Position Financial Instruments Cash Collateral Pledged Net Amount of Liabilities Derivatives Machinery, Energy & Transportation $ (21) $ — $ (21) $ 13 $ — $ (8) Financial Products (50) — (50) 21 — (29) Total $ (71) $ — $ (71) $ 34 $ — $ (37)

Other income (expense)

Other income (expense)	12 Months Ended
Other income (expense)	Dec. 31, 2020
Other Income and Expenses [Abstract]
Other income (expense)	5. Other income (expense) Years ended December 31, (Millions of dollars) 2020 2019 2018 Investment and interest income $ 112 $ 202 $ 195 Foreign exchange gains (losses) 1 (193) (67) (201) License fee income 104 121 125 Gains (losses) on securities 37 65 (29) Net periodic pension and OPEB income (cost), excluding service cost (90) (363) (118) Miscellaneous income (loss) (14) (15) (39) Total $ (44) $ (57) $ (67) 1 Includes gains (losses) from foreign exchange derivative contracts. See Note 4 for further details.

Income taxes

Income taxes	12 Months Ended
Income taxes	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income taxes	6. Income taxes Reconciliation of the U.S. federal statutory rate to effective rate: Years ended December 31, (Millions of dollars) 2020 2019 2018 Taxes at U.S. statutory rate $ 839 21.0 % $ 1,641 21.0 % $ 1,643 21.0 % (Decreases) increases resulting from: Non-U.S. subsidiaries taxed at other than the U.S. rate 285 7.1 % 365 4.7 % 282 3.6 % State and local taxes, net of federal 1 32 0.8 % 59 0.8 % 22 0.3 % Interest and penalties, net of tax 28 0.7 % 34 0.4 % 33 0.4 % U.S. tax incentives (52) (1.3) % (149) (1.9) % (106) (1.3) % Net excess tax benefits from stock-based compensation (49) (1.2) % (41) (0.5) % (56) (0.7) % Prior year tax adjustments (80) (2.0) % — — % — — % Mandatory deemed repatriation of non-U.S. earnings — — % (178) (2.3) % 50 0.7 % U.S. deferred tax rate change — — % — — % (154) (2.0) % Valuation allowances — — % — — % (29) (0.4) % Other—net 3 0.1 % 15 0.2 % 13 0.1 % Provision (benefit) for income taxes $ 1,006 25.2 % $ 1,746 22.4 % $ 1,698 21.7 % 1 Excludes amounts included in valuation allowances, mandatory deemed repatriation of non-U.S. earnings, and net excess tax benefits from stock-based compensation. Included in the line item above labeled “Non-U.S. subsidiaries taxed at other than the U.S. rate” are the effects of local and U.S. taxes related to earnings of non-U.S. subsidiaries, changes in the amount of unrecognized tax benefits associated with these earnings, losses at non-U.S. subsidiaries without local tax benefits due to valuation allowances and other permanent differences between tax and U.S. GAAP results. The line item above labeled "Prior year tax adjustments" was an adjustment to prior year U.S. taxes including the impact of regulations received in 2020. Included in the line item above labeled “Valuation allowances” was a decrease in the valuation allowance for U.S. state deferred tax assets resulting in a $63 million non-cash benefit in 2018, net of federal deferred tax adjustment. Also included in 2018 was a decrease in the valuation allowance for a non-U.S. subsidiary of $25 million offset by a charge of $59 million to correct for an error which resulted in an understatement of the valuation allowance offsetting deferred tax assets for prior years. Management has concluded that the error was not material to any period presented. On December 22, 2017, U.S. tax legislation was enacted containing a broad range of tax reform provisions including a corporate tax rate reduction and changes in the U.S. taxation of non-U.S. earnings. In 2018, measurement period adjustments of $104 million reduced the provisionally estimated charge of $2.371 billion recognized during the fourth quarter of 2017. A $154 million benefit revised the estimated impact of the write-down of U.S. net deferred tax assets to reflect the reduction in the U.S. corporate tax rate from 35 percent to 21 percent. This benefit primarily related to the decision to make an additional discretionary pension contribution of $1.0 billion to U.S. pension plans in 2018 which was treated as deductible on the 2017 U.S. tax return. A $50 million charge revised the estimated cost of a mandatory deemed repatriation of non-U.S. earnings, including changes in the deferred tax liability related to the amount of earnings considered not indefinitely reinvested as well as the amount of unrecognized tax benefits and state tax liabilities associated with these tax positions. During 2019, we recorded a $178 million tax benefit to adjust previously unrecognized tax benefits as a result of receipt of additional guidance related to the calculation of the mandatory deemed repatriation of non-U.S. earnings. As a result of U.S. tax reform legislation, distributions of profits from non-U.S. subsidiaries are not expected to cause a significant incremental U.S. tax impact in the future. However, these distributions may be subject to non-U.S. withholding taxes if profits are distributed from certain jurisdictions. Undistributed profits of non-U.S. subsidiaries of approximately $14 billion are considered indefinitely reinvested. Determination of the amount of unrecognized deferred tax liability related to indefinitely reinvested profits is not feasible primarily due to our legal entity structure and the complexity of U.S. and local tax laws. The components of profit (loss) before taxes were: Years ended December 31, (Millions of dollars) 2020 2019 2018 U.S. $ 590 $ 2,888 $ 2,131 Non-U.S. 3,405 4,924 5,691 $ 3,995 $ 7,812 $ 7,822 Profit before taxes, as shown above, is based on the location of the entity to which such earnings are attributable. Where an entity’s earnings are subject to taxation, however, may not correlate solely to where an entity is located. Thus, the income tax provision shown below as U.S. or non-U.S. may not correspond to the earnings shown above. The components of the provision (benefit) for income taxes were: Years ended December 31, (Millions of dollars) 2020 2019 2018 Current tax provision (benefit): U.S. 1 $ 18 $ 405 $ 179 Non-U.S. 1,031 1,261 1,291 State (U.S.) 31 52 8 1,080 1,718 1,478 Deferred tax provision (benefit): U.S. 1 (44) 17 298 Non-U.S. (34) (7) 4 State (U.S.) 4 18 (82) (74) 28 220 Total provision (benefit) for income taxes $ 1,006 $ 1,746 $ 1,698 1 Includes U.S. taxes related to non-U.S. earnings. We account for U.S. taxes on global intangible low-taxed income as a period cost. We paid net income tax and related interest of $1,311 million, $1,847 million and $1,429 million in 2020, 2019 and 2018, respectively. Accounting for income taxes under U.S. GAAP requires that individual tax-paying entities of the company offset all deferred tax liabilities and assets within each particular tax jurisdiction and present them as a noncurrent deferred tax liability or asset in the Consolidated Financial Position. Amounts in different tax jurisdictions cannot be offset against each other. The amount of deferred income taxes at December 31, included on the following lines in Statement 3, were as follows: December 31, (Millions of dollars) 2020 2019 Assets: Noncurrent deferred and refundable income taxes $ 1,358 $ 1,324 Liabilities: Other liabilities 418 414 Deferred income taxes—net $ 940 $ 910 The components of deferred tax assets and liabilities were: December 31, (Millions of dollars) 2020 2019 Deferred income tax assets: Tax carryforwards $ 1,346 $ 1,218 Postemployment benefits other than pensions 919 876 Pension 396 445 Warranty reserves 247 263 Research expenditures 193 219 Allowance for credit losses 126 171 Post sale discounts 153 200 Other employee compensation and benefits 186 197 Lease obligations 154 157 Stock-based compensation 81 107 Other—net 317 250 4,118 4,103 Deferred income tax liabilities: Capital and intangible assets, including lease basis differences (1,526) (1,574) Bond discount (117) (122) Translation (147) (194) Other outside basis differences (284) (257) Undistributed profits of non-U.S. subsidiaries (95) (118) (2,169) (2,265) Valuation allowance for deferred tax assets (1,009) (928) Deferred income taxes—net $ 940 $ 910 At December 31, 2020, approximately $1,399 million of U.S. state tax net operating losses (NOLs) and $139 million of U.S. state tax credit carryforwards were available. The state NOLs primarily expire over the next twenty years. The state tax credit carryforwards primarily expire over the next fifteen years, with some credits having an unlimited carryforward period. In total, we have established a valuation allowance of $183 million related to certain of these carryforwards. At December 31, 2020, approximately $350 million of U.S. foreign tax credits were available to carryforward on the U.S. federal tax return. These credits have a ten-year carryforward period and begin to expire in 2028. At December 31, 2020, amounts and expiration dates of net operating loss and interest carryforwards in various non-U.S. taxing jurisdictions were: (Millions of dollars) 2021 2022 2023 2024-2026 2027-2041 Unlimited Total $ 45 $ 81 $ 10 $ 79 $ 819 $ 3,929 $ 4,963 At December 31, 2020, non-U.S. entities that have not yet demonstrated consistent and/or sustainable profitability to support the realization of net deferred tax assets have recorded valuation allowances of $803 million, including certain entities in Luxembourg. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for uncertain tax positions, including positions impacting only the timing of tax benefits, follows. Reconciliation of unrecognized tax benefits: 1 Years ended December 31, (Millions of dollars) 2020 2019 2018 Beginning balance $ 1,778 $ 1,796 $ 1,286 Additions for tax positions related to current year 44 72 61 Additions for tax positions related to prior years 46 112 461 Reductions for tax positions related to prior years (12) (201) (5) Reductions for settlements 2 (94) — (6) Reductions for expiration of statute of limitations (3) (1) (1) Ending balance $ 1,759 $ 1,778 $ 1,796 Amount that, if recognized, would impact the effective tax rate $ 1,657 $ 1,616 $ 1,716 1 Foreign currency impacts are included within each line as applicable. 2 Includes cash payment or other reduction of assets to settle liability. We classify interest and penalties on income taxes as a component of the provision for income taxes. We recognized a net provision for interest and penalties of $38 million, $43 million and $42 million during the years ended December 31, 2020, 2019 and 2018, respectively. The total amount of interest and penalties accrued was $264 million and $233 million as of December 31, 2020 and 2019, respectively. On January 31, 2018, we received a Revenue Agent ’ s Report from the IRS indicating the end of the field examination of our U.S. income tax returns for 2010 to 2012. In the audits of 2007 to 2012 including the impact of a loss carryback to 2005, the IRS has proposed to tax in the United States profits earned from certain parts transactions by Caterpillar SARL (CSARL), based on the IRS examination team’s application of the “substance-over-form” or “assignment-of-income” judicial doctrines. We are vigorously contesting the proposed increases to tax and penalties for these years of approximately $2.3 billion. We believe that the relevant transactions complied with applicable tax laws and did not violate judicial doctrines. We have filed U.S. income tax returns on this same basis for years after 2012. Based on the information currently available, we do not anticipate a significant change to our unrecognized tax benefits for this position within the next 12 months. We currently believe the ultimate disposition of this matter will not have a material adverse effect on our consolidated financial position, liquidity or results of operations.

Cat Financial Financing Activit

Cat Financial Financing Activities	12 Months Ended
Cat Financial Financing Activities	Dec. 31, 2020
Receivables [Abstract]
Cat Financial Financing Activities	Cat Financial Financing Activities Wholesale inventory receivables Wholesale inventory receivables are receivables of Cat Financial that arise when Cat Financial provides financing for a dealer’s purchase of inventory. We include these receivables in Receivables—trade and other and Long-term receivables—trade and other in Statement 3 and were $1,233 million and $1,401 million, at December 31, 2020 and 2019, respectively. Contractual maturities of outstanding wholesale inventory receivables: (Millions of dollars) December 31, 2020 Amounts Due In Wholesale Wholesale Total 2021 $ 516 $ 52 $ 568 2022 241 37 278 2023 141 27 168 2024 62 20 82 2025 23 13 36 Thereafter 10 4 14 Total 993 153 1,146 Guaranteed residual value 1 51 36 87 Unguaranteed residual value 2 33 35 Less: Unearned income (11) (24) (35) Total $ 1,035 $ 198 $ 1,233 1 For Wholesale loans, represents residual value on failed sale leasebacks. Cat Financial’s wholesale inventory receivables generally may be repaid or refinanced without penalty prior to contractual maturity. Please refer to Note 18 and Table III for fair value information. Finance receivables are receivables of Cat Financial and are reported in Statement 3 net of an allowance for credit losses. Contractual maturities of outstanding finance receivables: (Millions of dollars) December 31, 2020 Amounts Due In Retail Retail Total 2021 $ 6,305 $ 3,222 $ 9,527 2022 3,617 2,032 5,649 2023 2,621 1,107 3,728 2024 1,378 467 1,845 2025 464 171 635 Thereafter 384 56 440 Total 14,769 7,055 21,824 Guaranteed residual value 1 44 412 456 Unguaranteed residual value 2 771 773 Less: Unearned income (280) (613) (893) Total $ 14,535 $ 7,625 $ 22,160 1 For Retail loans, represents residual value on failed sale leasebacks. Cat Financial’s finance receivables generally may be repaid or refinanced without penalty prior to contractual maturity. Please refer to Note 18 and Table III for fair value information. Effective January 1, 2020, we implemented the new credit loss guidance using a modified retrospective approach. Prior period comparative information has not been recast and continues to be reported under the accounting guidance in effect for those periods. See Note 1J for additional information. Portfolio segments A portfolio segment is the level at which Cat Financial develops a systematic methodology for determining its allowance for credit losses. Cat Financial's portfolio segments and related methods for estimating expected credit losses are as follows: Customer Cat Financial provides loans and finance leases to end-user customers primarily for the purpose of financing new and used Caterpillar machinery, engines and equipment for commercial use, the majority of which operate in construction-related industries. Cat Financial also provides financing for vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. The average original term of Cat Financial's customer finance receivable portfolio was approximately 46 months with an average remaining term of approximately 26 months as of December 31, 2020. Cat Financial typically maintains a security interest in financed equipment and requires physical damage insurance coverage on the financed equipment, both of which provide Cat Financial with certain rights and protections. If Cat Financial's collection efforts fail to bring a defaulted account current, Cat Financial generally can repossess the financed equipment, after satisfying local legal requirements, and sell it within the Caterpillar dealer network or through third-party auctions. Cat Financial estimates the allowance for credit losses related to its customer finance receivables based on loss forecast models utilizing probabilities of default and the estimated loss given default based on past loss experience adjusted for current conditions and reasonable and supportable forecasts capturing country and industry-specific economic factors. During the year ended December 31, 2020, Cat Financial's forecasts for the markets in which it operates reflected an overall decline in economic conditions resulting from a contracting economy, elevated unemployment rates and an increase in delinquencies due to the COVID-19 pandemic. The company believes the economic forecasts employed represent reasonable and supportable forecasts, followed by a reversion to long-term trends. Dealer Cat Financial provides financing to Caterpillar dealers in the form of wholesale financing plans. Cat Financial's wholesale financing plans provide assistance to dealers by financing their mostly new Caterpillar equipment inventory and rental fleets on a secured and unsecured basis. In addition, Cat Financial provides unsecured loans to Caterpillar dealers for working capital. Cat Financial estimates the allowance for credit losses for dealer finance receivables based on historical loss rates with consideration of current economic conditions and reasonable and supportable forecasts. Although our forecasts continued to indicate a decline in economic conditions, Cat Financial's Dealer portfolio segment has not historically experienced increased credit losses during prior economic downturns due to its close working relationships with the dealers and their financial strength. Therefore, we made no adjustments to historical loss rates during the year ended December 31, 2020. Classes of finance receivables Cat Financial further evaluates portfolio segments by the class of finance receivables, which is defined as a level of information (below a portfolio segment) in which the finance receivables have the same initial measurement attribute and a similar method for assessing and monitoring credit risk. Typically, Cat Financial's finance receivables within a geographic area have similar credit risk profiles and methods for assessing and monitoring credit risk. Cat Financial's classes, which align with management reporting for credit losses, are as follows: • North America - Finance receivables originated in the United States and Canada. • EAME - Finance receivables originated in Europe, Africa, the Middle East and the Commonwealth of Independent States. • Asia/Pacific - Finance receivables originated in Australia, New Zealand, China, Japan, Southeast Asia and India. • Mining - Finance receivables related to large mining customers worldwide. • Latin America - Finance receivables originated in Mexico and Central and South American countries. • Caterpillar Power Finance - Finance receivables originated worldwide related to marine vessels with Caterpillar engines and Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems. Receivable balances, including accrued interest, are written off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible (generally upon repossession of the collateral). The amount of the write-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost. Subsequent recoveries, if any, are credited to the allowance for credit losses when received. An analysis of the allowance for credit losses was as follows: (Millions of dollars) December 31, 2020 Customer Dealer Total Allowance for Credit Losses: Balance at beginning of year $ 375 $ 45 $ 420 Adjustment to adopt new accounting guidance 1 12 — 12 Receivables written off (263) — (263) Recoveries on receivables previously written off 41 — 41 Provision for credit losses 262 (1) 261 Other 4 — 4 Balance at end of year $ 431 $ 44 $ 475 Individually evaluated $ 187 $ 39 $ 226 Collectively evaluated 244 5 249 Ending Balance $ 431 $ 44 $ 475 Finance Receivables: Individually evaluated $ 594 $ 78 $ 672 Collectively evaluated 18,644 2,844 21,488 Ending Balance $ 19,238 $ 2,922 $ 22,160 1 See Note 1J regarding new accounting guidance related to credit losses. (Millions of dollars) December 31, 2019 Customer Dealer Total Allowance for Credit Losses: Balance at beginning of year $ 486 $ 21 $ 507 Receivables written off (281) — (281) Recoveries on receivables previously written off 44 — 44 Provision for credit losses 138 24 162 Other (12) — (12) Balance at end of year $ 375 $ 45 $ 420 Individually evaluated $ 178 $ 39 $ 217 Collectively evaluated 197 6 203 Ending Balance $ 375 $ 45 $ 420 Finance Receivables: Individually evaluated $ 594 $ 78 $ 672 Collectively evaluated 18,093 3,632 21,725 Ending Balance $ 18,687 $ 3,710 $ 22,397 Credit quality of finance receivables At origination, Cat Financial evaluates credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit ratings, loan-to-value ratios, probabilities of default, industry trends, macroeconomic factors and other internal metrics. On an ongoing basis, Cat Financial monitors credit quality based on past-due status as there is a meaningful correlation between the past-due status of customers and the risk of loss. In determining past-due status, Cat Financial considers the entire finance receivable past due when any installment is over 30 days past due. Customer The table below summarizes the aging category of Cat Financial's amortized cost of finance receivables in the Customer portfolio segment by origination year: (Millions of dollars) December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Total Finance Receivables North America Current $ 3,777 $ 2,423 $ 1,344 $ 522 $ 212 $ 27 $ 89 $ 8,394 31-60 days past due 52 49 33 16 7 2 — 159 61-90 days past due 22 25 16 9 2 1 — 75 91+ days past due 14 35 31 20 9 4 2 115 EAME Current 1,605 931 501 203 60 18 — 3,318 31-60 days past due 5 15 3 2 — — — 25 61-90 days past due 1 1 2 1 — — — 5 91+ days past due 7 7 12 4 39 43 — 112 Asia/Pacific Current 1,375 745 321 61 10 3 — 2,515 31-60 days past due 12 22 13 6 — — — 53 61-90 days past due 7 11 7 1 — — — 26 91+ days past due 4 10 9 3 — — — 26 Mining Current 490 571 287 152 92 151 137 1,880 31-60 days past due 5 — 5 1 — — — 11 61-90 days past due — — — — — — — — 91+ days past due — 11 8 2 — — 1 22 Latin America Current 561 348 151 48 13 34 — 1,155 31-60 days past due 3 6 4 3 — — — 16 61-90 days past due 1 7 6 3 2 — — 19 91+ days past due 2 14 11 24 5 4 — 60 Caterpillar Power Finance Current 217 172 111 273 99 117 119 1,108 31-60 days past due — — 6 — — — — 6 61-90 days past due — — — — — 9 — 9 91+ days past due 2 — 20 3 25 79 — 129 Total Customer $ 8,162 $ 5,403 $ 2,901 $ 1,357 $ 575 $ 492 $ 348 $ 19,238 Finance receivables in the Customer portfolio segment are substantially secured by collateral, primarily in the form of Caterpillar and other machinery. For those contracts where the borrower is experiencing financial difficulty, repayment of the outstanding amounts is generally expected to be provided through the operation or repossession and sale of the machinery. Dealer As of December 31, 2020, Cat Financial's total amortized cost of finance receivables within the Dealer portfolio segment was current, with the exception of $81 million that was 91+ days past due in Latin America. Of these past due receivables, $78 million were originated in 2017 and $3 million were originated prior to 2016. The table below summarizes Cat Financial's recorded investment in finance receivables by aging category. (Millions of dollars) December 31, 2019 31-60 Days Past Due 61-90 Days Past Due 91+ Total Past Current Total Customer North America $ 72 $ 23 $ 55 $ 150 $ 8,002 $ 8,152 EAME 30 31 141 202 2,882 3,084 Asia/Pacific 40 14 29 83 2,181 2,264 Mining 5 — 19 24 2,266 2,290 Latin America 41 23 80 144 1,089 1,233 Caterpillar Power Finance 10 10 225 245 1,419 1,664 Dealer North America — — — — 2,136 2,136 EAME — — — — 342 342 Asia/Pacific — — — — 437 437 Mining — — — — 4 4 Latin America — — 78 78 712 790 Caterpillar Power Finance — — — — 1 1 Total $ 198 $ 101 $ 627 $ 926 $ 21,471 $ 22,397 Impaired finance receivables A finance receivable is considered impaired, based on current information and events, if it is probable that Cat Financial will be unable to collect all amounts due according to the contractual terms. Impaired finance receivables include finance receivables that have been restructured and are considered to be troubled debt restructurings. In Cat Financial’s Customer portfolio segment, impaired finance receivables and the related unpaid principal balances and allowance were as follows: December 31, 2019 (Millions of dollars) Recorded Unpaid Related Impaired Finance Receivables With No Allowance Recorded North America $ 6 $ 6 $ — EAME — — — Asia/Pacific — — — Mining 22 22 — Latin America 8 8 — Caterpillar Power Finance 58 58 — Total $ 94 $ 94 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 30 $ 30 $ 11 EAME 61 61 29 Asia/Pacific 8 8 2 Mining 37 36 9 Latin America 58 58 20 Caterpillar Power Finance 306 319 107 Total $ 500 $ 512 $ 178 Total Impaired Finance Receivables North America $ 36 $ 36 $ 11 EAME 61 61 29 Asia/Pacific 8 8 2 Mining 59 58 9 Latin America 66 66 20 Caterpillar Power Finance 364 377 107 Total $ 594 $ 606 $ 178 Years ended December 31, 2019 2018 (Millions of dollars) Average Interest Average Interest Impaired Finance Receivables With No Allowance Recorded North America $ 9 $ — $ 16 $ 1 EAME 6 — 14 — Asia/Pacific — — 27 3 Mining 27 1 57 2 Latin America 21 1 38 2 Caterpillar Power Finance 54 3 130 7 Total $ 117 $ 5 $ 282 $ 15 Impaired Finance Receivables With An Allowance Recorded North America $ 34 $ 2 $ 49 $ 2 EAME 81 2 53 2 Asia/Pacific 9 1 4 — Mining 48 2 46 3 Latin America 72 5 67 3 Caterpillar Power Finance 396 11 378 12 Total $ 640 $ 23 $ 597 $ 22 Total Impaired Finance Receivables North America $ 43 $ 2 $ 65 $ 3 EAME 87 2 67 2 Asia/Pacific 9 1 31 3 Mining 75 3 103 5 Latin America 93 6 105 5 Caterpillar Power Finance 450 14 508 19 Total $ 757 $ 28 $ 879 $ 37 There were $78 million in impaired finance receivables with a related allowance of $39 million as of December 31, 2019 for the Dealer portfolio segment, all of which was in Latin America. Non-accrual finance receivables Recognition of income is suspended and the finance receivable is placed on non-accrual status when management determines that collection of future income is not probable. Contracts on non-accrual status are generally more than 120 days past due or have been restructured in a troubled debt restructuring (TDR). Recognition is resumed and previously suspended income is recognized when the finance receivable becomes current and collection of remaining amounts is considered probable. Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. Interest earned but uncollected prior to the receivable being placed on non-accrual status is written off through Provision for credit losses when, in the judgment of management, it is considered uncollectible. In Cat Financial's Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income were as follows: December 31, 2020 Amortized Cost (Millions of dollars) Non-accrual Non-accrual 91+ Still North America $ 86 $ 1 $ 34 EAME 113 1 1 Asia/Pacific 13 — 13 Mining 21 1 — Latin America 63 — 1 Caterpillar Power Finance 170 17 — Total $ 466 $ 20 $ 49 There was $12 million of interest income recognized during the year ended December 31, 2020, for customer finance receivables on non-accrual status. (Millions of dollars) December 31, 2019 Recorded Investment Non-accrual Finance Receivables 91+ Still Accruing North America $ 44 $ 15 EAME 165 4 Asia/Pacific 21 8 Mining 47 — Latin America 89 2 Caterpillar Power Finance 361 — Total $ 727 $ 29 As of December 31, 2020 and 2019, finance receivables in our Dealer portfolio segment on non-accrual status were $81 million and $78 million, respectively, all of which was in Latin America. There were no finance receivables in Cat Financial's Dealer portfolio segment more than 90 days past due and still accruing income as of December 31, 2020 and 2019 and no interest income was recognized on dealer finance receivables on non-accrual status during the years ended December 31, 2020 and 2019. Troubled Debt Restructurings A restructuring of a finance receivable constitutes a TDR when the lender grants a concession it would not otherwise consider to a borrower experiencing financial difficulties. Concessions granted may include extended contract maturities, inclusion of interest only periods, below market interest rates, payment deferrals and reduction of principal and/or accrued interest. There were no finance receivables modified as TDRs during the years ended December 31, 2020, 2019 and 2018 for the Dealer portfolio segment. Cat Financial’s finance receivables in the Customer portfolio segment modified as TDRs were as follows: (Millions of dollars) Year ended December 31, 2020 Number of Contracts Pre-TDR Post-TDR North America 40 $ 13 $ 13 EAME 4 — — Asia/Pacific 1 183 12 12 Mining 2 63 35 35 Latin America 3 77 45 45 Caterpillar Power Finance 22 115 115 Total 389 $ 220 $ 220 Year ended December 31, 2019 Number Pre-TDR Post-TDR North America 15 $ 11 $ 11 EAME 19 17 17 Asia/Pacific — — — Mining 2 8 8 Latin America 5 5 3 Caterpillar Power Finance 21 168 165 Total 62 $ 209 $ 204 Year ended December 31, 2018 Number Pre-TDR Post-TDR North America 38 $ 21 $ 21 EAME — — — Asia/Pacific — — — Mining 1 29 29 Latin America 1 3 3 Caterpillar Power Finance 12 133 99 Total 52 $ 186 $ 152 1 During the year ended December 31, 2020, 183 contracts with a pre-TDR and post-TDR amortized cost of $12 million were related to seven customers. 2 During the year ended December 31, 2020, 63 contracts with a pre-TDR and post-TDR amortized cost of $35 million were related to five customers. 3 During the year ended December 31, 2020, 77 contracts with a pre-TDR and post-TDR amortized cost of $45 million were related to ten customers. TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date, were as follows: (Millions of dollars) Year ended December 31, 2020 Year ended December 31, 2019 Year ended December 31, 2018 Number Post-TDR Number Post-TDR Number Post-TDR North America 4 $ 8 11 $ 5 10 $ 10 EAME 2 10 — — — — Asia/Pacific 27 2 — — — — Mining 21 10 — — — — Latin America 4 1 — — 3 1 Caterpillar Power Finance 2 18 1 10 3 33 Total 60 $ 49 12 $ 15 16 $ 44

Inventories

Inventories	12 Months Ended
Inventories	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories (principally using the LIFO method) are comprised of the following: December 31, (Millions of dollars) 2020 2019 Raw materials $ 4,021 $ 4,263 Work-in-process 1,052 1,147 Finished goods 6,054 5,598 Supplies 275 258 Total inventories $ 11,402 $ 11,266 We had long-term material purchase obligations of $309 million at December 31, 2020.

Property, plant and equipment

Property, plant and equipment	12 Months Ended
Property, plant and equipment	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Property, plant and equipment	Property, plant and equipment December 31, (Millions of dollars) Useful 2020 2019 Land — $ 681 $ 664 Buildings and land improvements 20-45 7,091 6,710 Machinery, equipment and other 2-10 13,004 13,287 Software 3-7 1,679 1,728 Equipment leased to others 1-7 6,077 6,208 Construction-in-process — 739 620 Total property, plant and equipment, at cost 29,271 29,217 Less: Accumulated depreciation (16,870) (16,313) Property, plant and equipment–net $ 12,401 $ 12,904

Intangible assets and goodwill

Intangible assets and goodwill	12 Months Ended
Intangible assets and goodwill	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets and goodwill	Intangible assets and goodwill A. Intangible assets Intangible assets were comprised of the following: December 31, 2020 (Millions of dollars) Weighted Gross Accumulated Net Customer relationships 15 $ 2,493 $ (1,600) $ 893 Intellectual property 12 1,439 (1,073) 366 Other 14 164 (115) 49 Total finite-lived intangible assets 14 $ 4,096 $ (2,788) $ 1,308 December 31, 2019 Weighted Gross Accumulated Net Customer relationships 15 $ 2,450 $ (1,406) $ 1,044 Intellectual property 12 1,510 (1,055) 455 Other 13 191 (125) 66 Total finite-lived intangible assets 14 $ 4,151 $ (2,586) $ 1,565 Finite-lived intangible assets are amortized over their estimated useful lives and tested for impairment if events or changes in circumstances indicate that the asset may be impaired. Amortization expense related to intangible assets was $311 million, $324 million and $331 million for 2020, 2019 and 2018, respectively. As of December 31, 2020, amortization expense related to intangible assets is expected to be: (Millions of dollars) 2021 2022 2023 2024 2025 Thereafter $300 $282 $223 $165 $155 $183 B. Goodwill There were no goodwill impairments during 2020, 2019 or 2018. The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2020 and 2019 were as follows: (Millions of dollars) December 31, 2019 Acquisitions Other Adjustments 1 December 31, 2020 Construction Industries Goodwill $ 306 $ — $ 14 $ 320 Impairments (22) — — (22) Net goodwill 284 — 14 298 Resource Industries Goodwill 4,156 — 97 4,253 Impairments (1,175) — — (1,175) Net goodwill 2,981 — 97 3,078 Energy & Transportation Goodwill 2,875 41 43 2,959 All Other 2 Goodwill 56 — 3 59 Consolidated total Goodwill 7,393 41 157 7,591 Impairments (1,197) — — (1,197) Net goodwill $ 6,196 $ 41 $ 157 $ 6,394 December 31, 2018 Acquisitions Other Adjustments 1 December 31, 2019 Construction Industries Goodwill $ 304 $ — $ 2 $ 306 Impairments (22) — — (22) Net goodwill 282 — 2 284 Resource Industries Goodwill 4,172 — (16) 4,156 Impairments (1,175) — — (1,175) Net goodwill 2,997 — (16) 2,981 Energy & Transportation Goodwill 2,882 — (7) 2,875 All Other 2 Goodwill 56 — — 56 Consolidated total Goodwill 7,414 — (21) 7,393 Impairments (1,197) — — (1,197) Net goodwill $ 6,217 $ — $ (21) $ 6,196 1 Other adjustments are comprised primarily of foreign currency translation. 2 Includes All Other operating segment (See Note 23).

Investments in debt and equity

Investments in debt and equity securities	12 Months Ended
Investments in debt and equity securities	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Investments in debt and equity securities	Investments in debt and equity securities We have investments in certain debt and equity securities, primarily at Insurance Services, which we record at fair value and primarily include in Other assets in Statement 3. We classify debt securities as available-for-sale, and we include the unrealized gains and losses arising from the revaluation of these debt securities, net of applicable deferred income taxes, in equity (Accumulated other comprehensive income (loss) in Statement 3). We include the unrealized gains and losses arising from the revaluation of the equity securities in Other income (expense) in Statement 1. We generally determine realized gains and losses on sales of investments using the specific identification method for debt and equity securities and include them in Other income (expense) in Statement 1. The cost basis and fair value of debt securities with unrealized gains and losses included in equity (Accumulated other comprehensive income (loss) in Statement 3) were as follows: December 31, 2020 December 31, 2019 (Millions of dollars) Cost Unrealized Fair Cost Unrealized Fair Government debt U.S. treasury bonds $ 10 $ — $ 10 $ 9 $ — $ 9 Other U.S. and non-U.S. government bonds 58 1 59 54 — 54 Corporate bonds Corporate bonds 962 50 1,012 836 20 856 Asset-backed securities 156 3 159 62 — 62 Mortgage-backed debt securities U.S. governmental agency 362 12 374 327 4 331 Residential 5 — 5 6 — 6 Commercial 60 4 64 46 1 47 Total debt securities $ 1,613 $ 70 $ 1,683 $ 1,340 $ 25 $ 1,365 As of December 31, 2020, there was no available-for-sale investments with net losses in accumulated other comprehensive income. As of December 31, 2019, the total unrealized loss for available-for-sale investments in an unrealized loss position that were not other-than temporarily impaired was $1 million. The cost basis and fair value of the available-for-sale debt securities at December 31, 2020, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations. December 31, 2020 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 135 $ 136 Due after one year through five years 702 737 Due after five years through ten years 279 295 Due after ten years 70 72 U.S. governmental agency mortgage-backed securities 362 374 Residential mortgage-backed securities 5 5 Commercial mortgage-backed securities 60 64 Total debt securities – available-for-sale $ 1,613 $ 1,683 Sales of available-for-sale securities: Years Ended December 31, (Millions of dollars) 2020 2019 2018 Proceeds from the sale of available-for-sale securities $ 290 $ 260 $ 247 Gross gains from the sale of available-for-sale securities $ 2 $ 1 $ — Gross losses from the sale of available-for-sale securities $ 1 $ 1 $ — For the years ended December 31 2020 and 2019, the net unrealized gains (losses) for equity securities held at December 31, 2020 and 2019 were $47 million and $29 million, respectively.

Postemployment benefit plans

Postemployment benefit plans	12 Months Ended
Postemployment benefit plans	Dec. 31, 2020
Retirement Benefits [Abstract]
Postemployment benefit plans	Postemployment benefit plans We provide defined benefit pension plans, defined contribution plans and/or other postretirement benefit plans (retirement health care and life insurance) to employees in many of our locations throughout the world. Our defined benefit pension plans provide a benefit based on years of service and/or the employee’s average earnings near retirement. Our defined contribution plans allow employees to contribute a portion of their salary to help save for retirement, and in most cases, we provide a matching contribution. The benefit obligation related to our non-U.S. defined benefit pension plans are for employees located primarily in Europe, Japan and Brazil. For other postretirement benefits (OPEB), substantially all of our benefit obligation is for employees located in the United States. Our U.S. defined benefit pension plans for support and management employees were frozen for certain employees on December 31, 2010 and were frozen for the remaining employees on December 31, 2019. On the respective transition dates employees moved to a retirement benefit that provided a frozen pension benefit and a 401(k) plan that will include a matching contribution and a new annual employer contribution. U.S. Pension Benefits Non-U.S. Other Postretirement 2020 2019 2020 2019 2020 2019 Weighted-average assumptions used to determine benefit obligation, end of year: Discount rate 2.4 % 3.2 % 1.4 % 1.9 % 2.3 % 3.2 % Rate of compensation increase 1 — % — % 2.0 % 2.0 % 4.0 % 4.0 % 1 Effective December 31, 2019, all U.S. pension benefits were frozen, and accordingly this assumption is no longer applicable. We use the assumed discount rate to discount future benefit obligations back to today’s dollars. The U.S. discount rate is based on a benefit cash flow-matching approach and represents the rate at which our benefit obligations could effectively be settled as of our measurement date, December 31. The benefit cash flow-matching approach involves analyzing Caterpillar’s projected cash flows against a high quality bond yield curve, calculated using a wide population of corporate Aa bonds available on the measurement date. We use a similar process to determine the assumed discount rate for our most significant non-U.S. plans. This rate is sensitive to changes in interest rates. A decrease in the discount rate would increase our obligation and future expense. U.S. Pension Benefits Non-U.S. Other Postretirement (Millions of dollars) 2020 2019 2020 2019 2020 2019 Accumulated benefit obligation, end of year $ 19,177 $ 17,773 $ 4,680 $ 4,502 Change in benefit obligation: Benefit obligation, beginning of year $ 17,773 $ 15,953 $ 4,666 $ 4,215 $ 3,960 $ 3,649 Service cost 1 — 115 55 80 94 80 Interest cost 483 600 68 94 103 136 Plan amendments — — 6 (5) (8) 8 Actuarial losses (gains) 2 1,922 2,090 258 424 192 350 Foreign currency exchange rates — — 213 95 (25) (1) Participant contributions — — 4 7 44 46 Benefits paid - gross (997) (982) (159) (237) (317) (316) Less: federal subsidy on benefits paid — — — — 8 9 Curtailments, settlements and termination benefits (4) (3) (264) (7) — (1) Benefit obligation, end of year $ 19,177 $ 17,773 $ 4,847 $ 4,666 $ 4,051 $ 3,960 Change in plan assets: Fair value of plan assets, beginning of year $ 15,994 $ 12,697 $ 4,525 $ 4,025 $ 255 $ 328 Actual return on plan assets 2,552 2,740 385 482 23 71 Foreign currency exchange rates — — 164 105 — — Company contributions 44 1,542 76 143 142 127 Participant contributions — — 4 7 44 46 Benefits paid (997) (982) (159) (237) (317) (316) Settlements and termination benefits (4) (3) (264) — — (1) Fair value of plan assets, end of year $ 17,589 $ 15,994 $ 4,731 $ 4,525 $ 147 $ 255 Over (under) funded status $ (1,588) $ (1,779) $ (116) $ (141) $ (3,904) $ (3,705) Components of net amount recognized in financial position: Other assets (non-current asset) $ 409 $ 219 $ 556 $ 485 $ — $ — Accrued wages, salaries and employee benefits (current liability) (44) (42) (25) (19) (186) (161) Liability for postemployment benefits (non-current liability) 3 (1,953) (1,956) (647) (607) (3,718) (3,544) Net liability recognized $ (1,588) $ (1,779) $ (116) $ (141) $ (3,904) $ (3,705) Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of: Prior service cost (credit) $ — $ — $ 24 $ 16 $ (46) $ (78) 1 Effective December 31, 2019, all U.S. pension benefits were frozen, and accordingly there is no longer any service cost. 2 For 2020, Actuarial loss (gain) impacting the benefit obligation was primarily due to lower discount rates at the end of 2020 compared to the end of 2019. For 2019, Actuarial loss (gain) impacting the benefit obligation was primarily due to lower discount rates at the end of 2019 compared to the end of 2018. 3 The Liability for postemployment benefits reported in Statement 3 includes our liability for other postemployment benefits and our liability for non-qualified deferred compensation plans. For 2020, these liabilities were $63 million and $491 million, respectively. For 2019, these liabilities were $60 million and $432 million, respectively. U.S. Pension Benefits Non-U.S. (Millions of dollars) 2020 2019 2020 2019 Pension plans with projected benefit obligation in excess of plan assets: Projected benefit obligation $ 15,300 $ 14,037 $ 2,171 $ 2,010 Fair value of plan assets $ 13,302 $ 12,039 $ 1,499 $ 1,384 Pension plans with accumulated benefit obligation in excess of plan assets: Accumulated benefit obligation $ 15,300 $ 14,037 $ 1,988 $ 1,799 Fair value of plan assets $ 13,302 $ 12,039 $ 1,425 $ 1,269 The accumulated postretirement benefit obligation exceeds plan assets for all of our other postretirement benefit plans for all years presented. U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Components of net periodic benefit cost: Service cost 1 $ — $ 115 $ 125 $ 55 $ 80 $ 89 $ 94 $ 80 $ 83 Interest cost 483 600 534 68 94 96 103 136 125 Expected return on plan assets (791) (721) (808) (135) (148) (221) (12) (18) (32) Curtailments, settlements and termination benefits (1) (1) — 30 (7) (33) — — (2) Amortization of prior service cost (credit) — — — — — — (38) (40) (36) Actuarial loss (gain) 2 162 72 534 32 90 111 189 306 (150) Net Periodic benefit cost (benefit) 3 $ (147) $ 65 $ 385 $ 50 $ 109 $ 42 $ 336 $ 464 $ (12) Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax): Current year prior service cost (credit) $ — $ — $ — $ 8 $ (4) $ 20 $ (7) $ 8 $ (20) Amortization of prior service (cost) credit — — — — — — 38 40 36 Total recognized in other comprehensive income — — — 8 (4) 20 31 48 16 Total recognized in net periodic cost and other comprehensive income $ (147) $ 65 $ 385 $ 58 $ 105 $ 62 $ 367 $ 512 $ 4 Weighted-average assumptions used to determine net periodic benefit cost: Discount rate used to measure service cost 1 — % 4.3 % 3.7 % 1.5 % 2.5 % 2.3 % 3.2 % 4.1 % 3.5 % Discount rate used to measure interest cost 2.8 % 3.9 % 3.2 % 1.7 % 2.3 % 2.2 % 2.8 % 3.9 % 3.2 % Expected rate of return on plan assets 4 5.1 % 5.9 % 6.3 % 3.3 % 3.8 % 5.2 % 7.0 % 7.2 % 7.5 % Rate of compensation increase 1 — % 4.0 % 4.0 % 2.0 % 3.0 % 4.0 % 4.0 % 4.1 % 4.0 % 1 Effective December 31, 2019, all U.S. pension benefits were frozen, and accordingly there is no longer any service cost and certain assumptions are no longer applicable. 2 Actuarial loss (gain) represents the effects of actual results differing from our assumptions and the effects of changing assumptions. We recognize actuarial loss (gain) immediately through earnings upon the annual remeasurement in the fourth quarter, or on an interim basis as triggering events warrant remeasurement. 3 The service cost component is included in Operating costs and all other components are included in Other income (expense) in Statement 1. 4 The weighted-average rates for 2021 are 4.2 percent and 2.9 percent for U.S. and non-U.S. pension plans, respectively. The discount rates used in the determination of our service and interest cost components utilize a full yield curve approach which applies specific spot rates along the yield curve used in the calculation of the benefit obligation to the relevant projected cash flows. Our U.S. expected long-term rate of return on plan assets is based on our estimate of long-term passive returns for equities and fixed income securities weighted by the allocation of our pension assets. Based on historical performance, we increase the passive returns due to our active management of the plan assets. To arrive at our expected long-term return, the amount added for active management was 0.40 percent for 2020, 0.40 percent for 2019 and 0.75 percent for 2018. We use a similar process to determine this rate for our non-U.S. plans. The following table presents information about expected contributions and benefit payments for pension and other postretirement benefit plans: (Millions of dollars) 2021 Expected employer contributions: U.S. Pension Benefits $ 45 Non-U.S. Pension Benefits $ 90 Other Postretirement Benefits $ 175 Expected benefit payments: 2021 2022 2023 2024 2025 2026- Total U.S. Pension Benefits $ 1,040 $ 1,020 $ 1,020 $ 1,020 $ 1,020 $ 4,995 $ 10,115 Non-U.S. Pension Benefits $ 360 $ 180 $ 185 $ 190 $ 195 $ 1,055 $ 2,165 Other Postretirement Benefits $ 280 $ 275 $ 270 $ 265 $ 260 $ 1,270 $ 2,620 Expected Medicare Part D subsidy: $ 8 $ 8 $ 8 $ 7 $ 7 $ 30 $ 68 The above table reflects the total expected employer contributions and expected benefits to be paid from the plan or from company assets and does not include the participants’ share of the cost. The expected benefit payments for our other postretirement benefits include payments for prescription drug benefits. The above table also includes Medicare Part D subsidy amounts expected to be received by the company which will offset other postretirement benefit payments. In general, our strategy for both the U.S. and non-U.S. pensions includes ongoing alignment of our investments to our liabilities, while reducing risk in our portfolio. The current U.S. pension target asset allocation is 77 percent fixed income and 23 percent equities. We will revise this target allocation periodically to ensure it reflects our overall objectives. The non-U.S. pension weighted-average target allocations are 76 percent fixed income, 13 percent equities, 6 percent other and 5 percent real estate. The target allocations for each plan vary based upon local statutory requirements, demographics of plan participants and funded status. We primarily invest the non-U.S. plan assets in non-U.S. securities. Our target allocation for the other postretirement benefit plans is 70 percent equities and 30 percent fixed income. We rebalance the U.S. plans to within the appropriate target asset allocation ranges on a monthly basis. The frequency of rebalancing for the non-U.S. plans varies depending on the plan. As a result of our diversification strategies, there are no significant concentrations of risk within the portfolio of investments. We permit the use of certain derivative instruments where appropriate and necessary for achieving overall investment policy objectives. The plans do not use derivative contracts for speculative purposes. The accounting guidance on fair value measurements specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques (Level 1, 2 and 3). Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. See Note 18 for a discussion of the fair value hierarchy. We determine fair values as follows: • Equity securities are primarily based on valuations for identical instruments in active markets. • Fixed income securities are primarily based upon models that take into consideration such market-based factors as recent sales, risk-free yield curves and prices of similarly rated bonds. • Real estate is stated at the fund’s net asset value or at appraised value. • Cash, short-term instruments and other are based on the carrying amount, which approximates fair value, or the fund’s net asset value. The fair value of the pension and other postretirement benefit plan assets by category is summarized below: December 31, 2020 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value U.S. Pension Equity securities: U.S. equities $ 2,292 $ 5 $ 28 $ 133 $ 2,458 Non-U.S. equities 1,838 — 1 — 1,839 Fixed income securities: U.S. corporate bonds — 7,395 53 119 7,567 Non-U.S. corporate bonds — 1,372 — — 1,372 U.S. government bonds — 3,618 — — 3,618 U.S. governmental agency mortgage-backed securities — 27 — — 27 Non-U.S. government bonds — 133 — — 133 Real estate — — 9 — 9 Cash, short-term instruments and other 363 22 — 181 566 Total U.S. pension assets $ 4,493 $ 12,572 $ 91 $ 433 $ 17,589 December 31, 2019 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value U.S. Pension Equity securities: U.S. equities $ 2,578 $ — $ 23 $ 133 $ 2,734 Non-U.S. equities 2,068 — — — 2,068 Fixed income securities: U.S. corporate bonds — 6,577 57 — 6,634 Non-U.S. corporate bonds — 1,414 — — 1,414 U.S. government bonds — 2,220 — — 2,220 U.S. governmental agency mortgage-backed securities — 63 — — 63 Non-U.S. government bonds — 96 — — 96 Real estate — — 10 — 10 Cash, short-term instruments and other 230 10 — 515 755 Total U.S. pension assets $ 4,876 $ 10,380 $ 90 $ 648 $ 15,994 December 31, 2020 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value Non-U.S. Pension Equity securities: U.S. equities $ 97 $ — $ — $ — $ 97 Non-U.S. equities 368 33 — 50 451 Global equities 1 29 17 — 49 95 Fixed income securities: U.S. corporate bonds — 314 — — 314 Non-U.S. corporate bonds — 987 — — 987 U.S. government bonds — 2 — — 2 Non-U.S. government bonds — 1,743 — — 1,743 Global fixed income 1 — 131 — 325 456 Real estate — 239 — — 239 Cash, short-term instruments and other 2 71 276 — — 347 Total non-U.S. pension assets $ 565 $ 3,742 $ — $ 424 $ 4,731 December 31, 2019 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value Non-U.S. Pension Equity securities: U.S. equities $ 58 $ — $ — $ — $ 58 Non-U.S. equities 346 29 — 65 440 Global equities 1 26 16 — 111 153 Fixed income securities: U.S. corporate bonds — 253 — — 253 Non-U.S. corporate bonds — 808 — 7 815 U.S. government bonds — 65 — — 65 Non-U.S. government bonds — 1,952 — — 1,952 Global fixed income 1 — 182 — 208 390 Real estate — 211 — — 211 Cash, short-term instruments and other 2 68 120 — — 188 Total non-U.S. pension assets $ 498 $ 3,636 $ — $ 391 $ 4,525 1 Includes funds that invest in both U.S. and non-U.S. securities. 2 Includes funds that invest in multiple asset classes, hedge funds and other. December 31, 2020 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value Other Postretirement Benefits Equity securities: U.S. equities $ 88 $ — $ — $ — $ 88 Non-U.S. equities 21 — — — 21 Fixed income securities: U.S. corporate bonds — 11 — 1 12 Non-U.S. corporate bonds — 2 — — 2 U.S. government bonds — 3 — — 3 U.S. governmental agency mortgage-backed securities — 6 — — 6 Non-U.S. government bonds — 3 — — 3 Cash, short-term instruments and other — 2 — 10 12 Total other postretirement benefit assets $ 109 $ 27 $ — $ 11 $ 147 December 31, 2019 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value Other Postretirement Benefits Equity securities: U.S. equities $ 119 $ — $ — $ — $ 119 Non-U.S. equities 56 — — — 56 Fixed income securities: U.S. corporate bonds — 33 — — 33 Non-U.S. corporate bonds — 6 — — 6 U.S. government bonds — 9 — — 9 U.S. governmental agency mortgage-backed securities — 16 — — 16 Non-U.S. government bonds — 3 — — 3 Cash, short-term instruments and other 2 1 — 10 13 Total other postretirement benefit assets $ 177 $ 68 $ — $ 10 $ 255 Below are roll-forwards of assets measured at fair value using Level 3 inputs for the years ended December 31, 2020 and 2019. We valued these instruments using pricing models that, in management’s judgment, reflect the assumptions a market participant would use. (Millions of dollars) Equities Fixed Income Real Estate U.S. Pension Balance at December 31, 2018 $ 36 $ 61 $ 10 Unrealized gains (losses) (9) — — Realized gains (losses) 7 — — Purchases, issuances and settlements, net (10) (4) — Transfers in and/or out of Level 3 (1) — — Balance at December 31, 2019 $ 23 $ 57 $ 10 Unrealized gains (losses) — 1 — Realized gains (losses) (11) (6) (1) Purchases, issuances and settlements, net 17 1 — Transfers in and/or out of Level 3 — — — Balance at December 31, 2020 $ 29 $ 53 $ 9 We have both U.S. and non-U.S. employee defined contribution plans to help employees save for retirement. Our primary U.S. 401(k) plan allows eligible employees to contribute a portion of their cash compensation to the plan on a tax-deferred basis. Employees with frozen defined benefit pension accruals are eligible for matching contributions equal to 100 percent of employee contributions to the plan up to 6 percent of cash compensation and an annual employer contribution that ranges from 3 to 5 percent of cash compensation (depending on years of service and age). Employees that were still accruing benefits under a defined benefit pension plan up to December 31, 2019 were eligible for matching contributions equal to 50 percent of employee contributions up to 6 percent of cash compensation. All our U.S. defined benefit pension plans were frozen on December 31, 2019 for remaining employees still accruing a benefit. Starting in 2020, these employees receive matching contributions equal to 100 percent of employee contributions to the plan up to 6 percent of cash compensation and an annual employer contribution that ranges from 3 to 5 percent of cash compensation (depending on years of service and age). These 401(k) plans include various investment funds, including a non-leveraged employee stock ownership plan (ESOP). As of December 31, 2020 and 2019, the ESOP held 13.2 million and 14.9 million shares, respectively. We allocate all of the shares held by the ESOP to participant accounts. Dividends paid to participants are automatically reinvested into company shares unless the participant elects to have all or a portion of the dividend paid to the participant. Various other U.S. and non-U.S. defined contribution plans generally allow eligible employees to contribute a portion of their cash compensation to the plans, and in most cases, we provide a matching contribution to the funds. Total company costs related to U.S. and non-U.S. defined contribution plans were as follows: (Millions of dollars) 2020 2019 2018 U.S. plans $ 384 $ 414 $ 271 Non-U.S. plans 89 83 89 $ 473 $ 497 $ 360

Short-term borrowings

Short-term borrowings	12 Months Ended
Short-term borrowings	Dec. 31, 2020
Short-term Borrowings Disclosure [Abstract]
Short-term borrowings	Short-term borrowings December 31, (Millions of dollars) 2020 2019 Machinery, Energy & Transportation: Notes payable to banks $ 10 $ 5 10 5 Financial Products: Notes payable to banks 307 605 Commercial paper 1,321 4,168 Demand notes 377 388 2,005 5,161 Total short-term borrowings $ 2,015 $ 5,166 The weighted-average interest rates on short-term borrowings outstanding were: December 31, 2020 2019 Notes payable to banks 3.7 % 5.0 % Commercial paper 0.1 % 1.3 % Demand notes 0.3 % 1.7 % Please refer to Note 18 and Table III for fair value information on short-term borrowings.

Long-term debt

Long-term debt	12 Months Ended
Long-term debt	Dec. 31, 2020
Debt Disclosure [Abstract]
Long-term debt	Long-term debt December 31, (Millions of dollars) Effective Yield to Maturity 1 2020 2019 Machinery, Energy & Transportation: Notes—$1,250 million of 3.900% due 2021 2 4.01% $ — $ 1,248 Notes—$759 million of 5.200% due 2041 2 5.27% 752 752 Debentures—$120 million of 9.375% due 2021 9.41% — 120 Debentures—$500 million of 2.600% due 2022 2 2.70% 499 499 Debentures—$82 million of 8.000% due 2023 8.06% 82 82 Debentures—$1,000 million of 3.400% due 2024 3.46% 998 998 Debentures—$193 million of 6.625% due 2028 2 6.68% 192 192 Debentures—$500 million of 2.600% due 2029 2 2.67% 497 497 Debentures—$800 million of 2.600% due 2030 2 2.72% 793 — Debentures—$242 million of 7.300% due 2031 2 7.38% 240 240 Debentures—$307 million of 5.300% due 2035 2 8.64% 223 220 Debentures—$460 million of 6.050% due 2036 2 6.12% 456 456 Debentures—$65 million of 8.250% due 2038 2 8.38% 64 64 Debentures—$160 million of 6.950% due 2042 2 7.02% 158 158 Debentures—$1,722 million of 3.803% due 2042 2 6.39% 1,296 1,277 Debentures—$500 million of 4.300% due 2044 4.39% 493 493 Debentures—$1,000 million of 3.250% due 2049 2 3.34% 983 982 Debentures—$1,200 million of 3.250% due 2050 2 3.32% 1,185 — Debentures—$500 million of 4.750% due 2064 4.81% 494 494 Debentures—$246 million of 7.375% due 2097 2 7.51% 241 241 Finance lease obligations & other 103 128 Total Machinery, Energy & Transportation 9,749 9,141 Financial Products: Medium-term notes 16,012 16,719 Other 238 421 Total Financial Products 16,250 17,140 Total long-term debt due after one year $ 25,999 $ 26,281 1 Effective yield to maturity includes the impact of discounts, premiums and debt issuance costs. 2 Redeemable at our option in whole or in part at any time at a redemption price equal to the greater of (i) 100% of the principal amount or (ii) the discounted present value of the notes or debentures, calculated in accordance with the terms of such notes or debentures. All outstanding notes and debentures are unsecured and rank equally with one another. On September 19, 2019, we issued $1.0 billion of 3.250% Senior Notes due 2049 and $500 million of 2.600% Senior Notes due 2029. On April 9, 2020, we issued $1.2 billion of 3.250% Senior Notes due 2050 and $800 million of 2.600% Senior Notes due 2030. Cat Financial’s medium-term notes are offered by prospectus and are issued through agents at fixed and floating rates. Medium-term notes due after one year have a weighted average interest rate of 2.0% with remaining maturities up to 7 years at December 31, 2020. The above table includes $56 million of medium-term notes that can be called at par. The aggregate amounts of maturities of long-term debt during each of the years 2021 through 2025, including amounts due within one year and classified as current, are: December 31, (Millions of dollars) 2021 2022 2023 2024 2025 Machinery, Energy & Transportation $ 1,420 $ 520 $ 99 $ 1,010 $ 9 Financial Products 7,729 6,679 4,168 2,664 1,621 $ 9,149 $ 7,199 $ 4,267 $ 3,674 $ 1,630 Interest paid on short-term and long-term borrowings for 2020, 2019 and 2018 was $1,089 million, $1,057 million and $1,088 million, respectively. Please refer to Note 18 and Table III for fair value information on long-term debt.

Credit commitments

Credit commitments	12 Months Ended
Credit commitments	Dec. 31, 2020
Credit Commitments [Abstract]
Credit commitments	Credit commitments December 31, 2020 (Millions of dollars) Consolidated Machinery, Financial Credit lines available: Global credit facilities $ 10,500 $ 2,750 $ 7,750 Other external 3,178 146 3,032 Total credit lines available 13,678 2,896 10,782 Less: Commercial paper outstanding (1,321) — (1,321) Less: Utilized credit (744) (10) (734) Available credit $ 11,613 $ 2,886 $ 8,727 We have three global credit facilities with a syndicate of banks totaling $10.50 billion (Credit Facility) available in the aggregate to both Caterpillar and Cat Financial for general liquidity purposes. Based on management's allocation decision, which can be revised from time to time, the portion of the Credit Facility available to ME&T as of December 31, 2020 was $2.75 billion. Information on our Credit Facility is as follows: • The 364-day facility of $3.15 billion (of which $0.82 billion is available to ME&T) expires in September 2021. • The three-year facility, as amended and restated in September 2019, of $2.73 billion (of which $0.72 billion is available to ME&T) expires in September 2022. • The five-year facility, as amended and restated in September 2019, of $4.62 billion (of which $1.21 billion is available to ME&T) expires in September 2024. Other consolidated credit lines with banks as of December 31, 2020 totaled $3.18 billion. These committed and uncommitted credit lines, which may be eligible for renewal at various future dates or have no specified expiration date, are used primarily by our subsidiaries for local funding requirements. Caterpillar or Cat Financial may guarantee subsidiary borrowings under these lines. At December 31, 2020, Caterpillar’s consolidated net worth was $15.41 billion, which was above the $9.00 billion required under the Credit Facility. The consolidated net worth is defined as the consolidated shareholders’ equity including preferred stock but excluding the pension and other postretirement benefits balance within Accumulated other comprehensive income (loss). At December 31, 2020, Cat Financial’s covenant interest coverage ratio was 1.72 to 1. This is above the 1.15 to 1 minimum ratio, calculated as (1) profit excluding income taxes, interest expense and net gain/(loss) from interest rate derivatives to (2) interest expense calculated at the end of each calendar quarter for the rolling four quarter period then most recently ended, required by the Credit Facility. In addition, at December 31, 2020, Cat Financial’s six-month covenant leverage ratio was 6.74 to 1 and year-end covenant leverage ratio was 6.95 to 1. This is below the maximum ratio of debt to net worth of 10 to 1, calculated (1) on a monthly basis as the average of the leverage ratios determined on the last day of each of the six preceding calendar months and (2) at each December 31, required by the Credit Facility. In the event Caterpillar or Cat Financial does not meet one or more of their respective financial covenants under the Credit Facility in the future (and are unable to obtain a consent or waiver), the syndicate of banks may terminate the commitments allocated to the party that does not meet its covenants. Additionally, in such event, certain of Cat Financial’s other lenders under other loan agreements where similar financial covenants or cross default provisions are applicable may, at their election, choose to pursue remedies under those loan agreements, including accelerating the repayment of outstanding borrowings. At December 31, 2020, there were no borrowings under the Credit Facility.

Profit per share

Profit per share	12 Months Ended
Profit per share	Dec. 31, 2020
Earnings Per Share [Abstract]
Profit per share	Profit per share Computations of profit per share: (Dollars in millions except per share data) 2020 2019 2018 Profit for the period (A) 1 $ 2,998 $ 6,093 $ 6,147 Determination of shares (in millions): Weighted average number of common shares outstanding (B) 544.1 561.6 591.4 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 4.5 5.9 8.0 Average common shares outstanding for fully diluted computation (C) 2 548.6 567.5 599.4 Profit per share of common stock: Assuming no dilution (A/B) $ 5.51 $ 10.85 $ 10.39 Assuming full dilution (A/C) 2 $ 5.46 $ 10.74 $ 10.26 Shares outstanding as of December 31 (in millions) 545.3 550.1 575.5 1 Profit attributable to common shareholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. For the year ended December 31, 2020, 2019 and 2018, we excluded 4.6 million, 3.0 million and 1.5 million outstanding stock options, respectively, from the computation of diluted earnings per share because the effect would have been antidilutive. In July 2018, the Board approved a new share repurchase authorization of up to $10.0 billion of Caterpillar common stock effective January 1, 2019, with no expiration. As of December 31, 2020, approximately $4.8 billion remained available under the 2018 Authorization. During 2020, 2019 and 2018, we repurchased 10.1 million, 30.6 million and 27.7 million shares of Caterpillar common stock, respectively, at an aggregate cost of $1.3 billion, $4.0 billion and $3.8 billion respectively. We made these purchases through a combination of accelerated stock repurchase agreements with third-party financial institutions and open market transactions.

Accumulated other comprehensive

Accumulated other comprehensive income (loss)	12 Months Ended
Accumulated other comprehensive income (loss)	Dec. 31, 2020
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated other comprehensive income (loss) We present comprehensive income and its components in Statement 2. Changes in the balances for each component of Accumulated other comprehensive income (loss) were as follows: (Millions of dollars) 2020 2019 2018 Foreign currency translation: Beginning balance $ (1,487) $ (1,601) $ (1,205) Adjustments to adopt new accounting guidance related to reclassification of certain tax effects from AOCI — 98 — Balance at January 1 (1,487) (1,503) (1,205) Gains (losses) on foreign currency translation 513 21 (373) Less: Tax provision /(benefit) (42) 5 24 Net gains (losses) on foreign currency translation 555 16 (397) (Gains) losses reclassified to earnings 22 — 1 Less: Tax provision /(benefit) — — — Net (gains) losses reclassified to earnings 22 — 1 Other comprehensive income (loss), net of tax 577 16 (396) Ending balance $ (910) $ (1,487) $ (1,601) Pension and other postretirement benefits Beginning balance $ (3) $ 12 $ 46 Adjustments to adopt new accounting guidance related to reclassification of certain tax effects from AOCI — 19 — Balance at January 1 (3) 31 46 Current year prior service credit (cost) (1) (4) — Less: Tax provision /(benefit) — — 6 Net current year prior service credit (cost) (1) (4) (6) Amortization of prior service (credit) cost (38) (40) (36) Less: Tax provision /(benefit) (10) (10) (8) Net amortization of prior service (credit) cost (28) (30) (28) Other comprehensive income (loss), net of tax (29) (34) (34) Ending balance $ (32) $ (3) $ 12 Derivative financial instruments Beginning balance $ (97) $ (80) $ (41) Adjustments to adopt new accounting guidance related to reclassification of certain tax effects from AOCI — (9) — Balance at January 1 (97) (89) (41) Gains (losses) deferred (116) 57 80 Less: Tax provision /(benefit) (25) 14 19 Net gains (losses) deferred (91) 43 61 (Gains) losses reclassified to earnings 241 (66) (131) Less: Tax provision /(benefit) 53 (15) (31) Net (gains) losses reclassified to earnings 188 (51) (100) Other comprehensive income (loss), net of tax 97 (8) (39) Ending balance $ — $ (97) $ (80) 2020 2019 2018 Available-for-sale securities Beginning balance $ 20 $ (15) $ 8 Adjustments to adopt recognition and measurement of financial assets and liabilities guidance — — (11) Balance at January 1 20 (15) (3) Gains (losses) deferred 45 45 (15) Less: Tax provision /(benefit) 10 10 (3) Net gains (losses) deferred 35 35 (12) (Gains) losses reclassified to earnings (1) — — Less: Tax provision /(benefit) — — — Net (gains) losses reclassified to earnings (1) — — Other comprehensive income (loss), net of tax 34 35 (12) Ending balance $ 54 $ 20 $ (15) Total AOCI Ending Balance at December 31 $ (888) $ (1,567) $ (1,684)

Fair value disclosures

Fair value disclosures	12 Months Ended
Fair value disclosures	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Fair value disclosures	Fair value disclosures A. Fair value measurements The guidance on fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This guidance also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. In accordance with this guidance, fair value measurements are classified under the following hierarchy: • Level 1 – Quoted prices for identical instruments in active markets. • Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets. • Level 3 – Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable. When available, we use quoted market prices to determine fair value, and we classify such measurements within Level 1. In some cases where market prices are not available, we make use of observable market based inputs to calculate fair value, in which case the measurements are classified within Level 2. If quoted or observable market prices are not available, fair value is based upon valuations in which one or more significant inputs are unobservable, including internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves and currency rates. These measurements are classified within Level 3. We classify fair value measurements according to the lowest level input or value-driver that is significant to the valuation. We may therefore classify a measurement within Level 3 even though there may be significant inputs that are readily observable. Fair value measurement includes the consideration of nonperformance risk. Nonperformance risk refers to the risk that an obligation (either by a counterparty or Caterpillar) will not be fulfilled. For financial assets traded in an active market (Level 1 and certain Level 2), the nonperformance risk is included in the market price. For certain other financial assets and liabilities (certain Level 2 and Level 3), our fair value calculations have been adjusted accordingly. Investments in debt and equity securities We have investments in certain debt and equity securities, primarily at Insurance Services, that are recorded at fair value. Fair values for our U.S. treasury bonds and large capitalization value and smaller company growth equity securities are based upon valuations for identical instruments in active markets. Fair values for other government bonds, corporate bonds and mortgage-backed debt securities are based upon models that take into consideration such market-based factors as recent sales, risk-free yield curves and prices of similarly rated bonds. In addition, Insurance Services has an equity investment in a real estate investment trust (REIT) which is recorded at fair value based on the net asset value (NAV) of the investment and is not classified within the fair value hierarchy. See Note 11 for additional information on our investments in debt and equity securities. Derivative financial instruments The fair value of interest rate contracts is primarily based on models that utilize the appropriate market-based forward swap curves and zero-coupon interest rates to determine discounted cash flows. The fair value of foreign currency and commodity forward, option and cross currency contracts is based on a valuation model that discounts cash flows resulting from the differential between the contract price and the market-based forward rate. Assets and liabilities measured on a recurring basis at fair value, primarily related to Financial Products, included in Statement 3 as of December 31, 2020 and 2019 were as follows: December 31, 2020 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets Debt securities Government debt U.S. treasury bonds $ 10 $ — $ — $ — $ 10 Other U.S. and non-U.S. government bonds — 59 — — 59 Corporate bonds Corporate bonds — 1,012 — — 1,012 Asset-backed securities — 159 — — 159 Mortgage-backed debt securities U.S. governmental agency — 374 — — 374 Residential — 5 — — 5 Commercial — 64 — — 64 Total debt securities 10 1,673 — — 1,683 Equity securities Large capitalization value 199 — — — 199 Smaller company growth 58 — — — 58 REIT — — — 148 148 Total equity securities 257 — — 148 405 Total Assets $ 267 $ 1,673 $ — $ 148 $ 2,088 Liabilities Derivative financial instruments, net $ — $ 17 $ — $ — $ 17 Total Liabilities $ — $ 17 $ — $ — $ 17 December 31, 2019 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets Debt securities Government debt U.S. treasury bonds $ 9 $ — $ — $ — $ 9 Other U.S. and non-U.S. government bonds — 54 — — 54 Corporate bonds Corporate bonds — 856 — — 856 Asset-backed securities — 62 — — 62 Mortgage-backed debt securities U.S. governmental agency — 331 — — 331 Residential — 6 — — 6 Commercial — 47 — — 47 Total debt securities 9 1,356 — — 1,365 Equity securities Large capitalization value 187 — — — 187 Smaller company growth 29 — 4 — 33 REIT — — — 126 126 Total equity securities 216 — 4 126 346 Derivative financial instruments, net — 45 — — 45 Total Assets $ 225 $ 1,401 $ 4 $ 126 $ 1,756 In addition to the amounts above, Cat Financial impaired loans are subject to measurement at fair value on a nonrecurring basis and are classified as Level 3 measurements. A loan is considered impaired when management determines that collection of contractual amounts due is not probable. In these cases, we may establish an allowance for credit losses based either on the present value of expected future cash flows discounted at the receivables’ effective interest rate, the fair value of the collateral for collateral-dependent receivables, or the observable market price of the receivable. In determining collateral value, Cat Financial estimates the current fair market value of the collateral less selling costs. Cat Financial had impaired loans with a fair value of $243 million and $343 million for the years ended December 31, 2020 and 2019, respectively. B. Fair values of financial instruments In addition to the methods and assumptions we use to record the fair value of financial instruments as discussed in the Fair value measurements section above, we used the following methods and assumptions to estimate the fair value of our financial instruments: Cash and short-term investments Carrying amount approximated fair value. Restricted cash and short-term investments Carrying amount approximated fair value. We include restricted cash and short-term investments in Prepaid expenses and other current assets in Statement 3. Finance receivables We estimate fair value by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. Wholesale inventory receivables We estimate fair value by discounting the future cash flows using current rates, representative of receivables with similar remaining maturities. Short-term borrowings Carrying amount approximated fair value. Long-term debt We estimate fair value for fixed and floating rate debt based on quoted market prices. Guarantees The fair value of guarantees is based upon our estimate of the premium a market participant would require to issue the same guarantee in a stand-alone arms-length transaction with an unrelated party. If quoted or observable market prices are not available, fair value is based upon internally developed models that utilize current market-based assumptions. Fair values of our financial instruments were as follows: TABLE III—Fair Values of Financial Instruments 2020 2019 (Millions of dollars) Carrying Fair Carrying Fair Fair Value Levels Reference Assets at December 31, Cash and short-term investments $ 9,352 $ 9,352 $ 8,284 $ 8,284 1 Statement 3 Restricted cash and short-term investments 14 14 8 8 1 Statement 3 Investments in debt and equity securities 2,088 2,088 1,711 1,711 1, 2 & 3 Notes 11 & 19 Finance receivables–net (excluding finance leases 1 ) 14,028 14,357 14,473 14,613 3 Notes 7 & 19 Wholesale inventory receivables–net (excluding finance leases 1 ) 929 911 1,105 1,076 3 Notes 7 & 19 Foreign currency contracts–net — — 62 62 2 Notes 4 & 19 Interest rate swaps–net 58 58 — — 2 Notes 4 & 19 Commodity contracts–net 37 37 3 3 2 Notes 4 & 19 Liabilities at December 31, Short-term borrowings 2,015 2,015 5,166 5,166 1 Note 13 Long-term debt (including amounts due within one year): Machinery, Energy & Transportation 11,169 14,549 9,157 11,216 2 Note 14 Financial Products 23,979 24,614 23,334 23,655 2 Note 14 Foreign currency contracts–net 112 112 — — 2 Notes 4 & 19 Interest rate swaps–net — — 20 20 2 Notes 4 & 19 Guarantees 5 5 5 5 3 Note 21 1 Represents finance leases and failed sale leasebacks of $7,961 million and $7,800 million at December 31, 2020 and 2019, respectively.

Concentration of credit risk

Concentration of credit risk	12 Months Ended
Concentration of credit risk	Dec. 31, 2020
Risks and Uncertainties [Abstract]
Concentration of credit risk	Concentration of credit risk Financial instruments with potential credit risk consist primarily of trade and finance receivables and short-term and long-term investments. Additionally, to a lesser extent, we have a potential credit risk associated with counterparties to derivative contracts. Trade receivables are primarily short-term receivables from independently owned and operated dealers and customers which arise in the normal course of business. We perform regular credit evaluations of our dealers and customers. Collateral generally is not required, and the majority of our trade receivables are unsecured. We do, however, when deemed necessary, make use of various devices such as security agreements and letters of credit to protect our interests. No single dealer or customer represents a significant concentration of credit risk. Finance receivables and wholesale inventory receivables primarily represent receivables under installment sales contracts, receivables arising from leasing transactions and notes receivable. We typically maintain a security interest in retail financed equipment and, in some instances, wholesale financed equipment. We also typically require physical damage insurance coverage on financed equipment. No single customer or dealer represented a significant concentration of credit risk. Short-term and long-term investments are held with high quality institutions and, by policy, the amount of credit exposure to any one institution is limited. Long-term investments, primarily included in Other assets in Statement 3, are comprised primarily of available-for-sale debt securities and equity securities at Insurance Services. For derivative contracts, collateral is generally not required of the counterparties or of our company. The company generally enters into International Swaps and Derivatives Association (ISDA) master netting agreements within ME&T and Financial Products that permit the net settlement of amounts owed under their respective derivative contracts. Our exposure to credit loss in the event of nonperformance by the counterparties is limited to only those gains that we have recorded, but for which we have not yet received cash payment. The master netting agreements reduce the amount of loss the company would incur should the counterparties fail to meet their obligations. At December 31, 2020 and 2019, the maximum exposure to credit loss was $281 million and $116 million, respectively, before the application of any master netting agreements. Please refer to Note 18 and Table III above for fair value information.

Leases

Leases	12 Months Ended
Leases	Dec. 31, 2020
Leases [Abstract]
A. Lessee Disclosure	Leases A. Lessee arrangements We lease certain property, information technology equipment, warehouse equipment, vehicles and other equipment through operating leases. We recognize a lease liability and corresponding right-of-use asset based on the present value of lease payments. To determine the present value of lease payments for most of our leases, we use our incremental borrowing rate based on information available on the lease commencement date. For certain property and information technology equipment leases, we have elected to separate payments for lease components from non-lease components. For all other leases, we have elected not to separate payments for lease and non-lease components. Our lease agreements may include options to extend or terminate the lease. When it is reasonably certain that we will exercise that option, we have included the option in the recognition of right-of-use assets and lease liabilities. We have elected not to recognize right-of-use assets or lease liabilities for leases with a term of twelve months or less. Our finance leases are not significant and therefore are not included in the following disclosures. The components of lease costs were as follows: (Millions of dollars) Year Ended December 31, 2020 2019 Operating lease cost $ 204 $ 232 Short-term lease cost $ 50 $ 57 We recognize operating lease right-of-use assets in Other assets in Statement 3. We recognize the operating lease liabilities in Other current liabilities and Other liabilities. Supplemental information related to leases was as follows: (Millions of dollars) December 31, 2020 December 31, 2019 Operating Leases Other assets $ 603 $ 624 Other current liabilities $ 163 $ 173 Other liabilities $ 457 $ 461 Weighted average remaining lease term Operating leases 7 years 7 years Weighted average discount rates Operating leases 2 % 2 % Maturities of operating lease liabilities were as follows: (Millions of dollars) December 31, 2020 Amounts Due In 2021 $ 174 2022 118 2023 88 2024 66 2025 51 Thereafter 182 Total lease payments 679 Less: Imputed interest (59) Total $ 620 Supplemental cash flow information related to leases was as follows: (Millions of dollars) Year ended December 31 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 201 $ 224 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 178 $ 122
B. Lessor Disclosure	B. Lessor arrangements We lease Caterpillar machinery, engines and other equipment to customers and dealers around the world, primarily through Cat Financial. Cat Financial leases to customers primarily through sales-type (non-tax) leases, where the lessee for tax purposes is considered to be the owner of the equipment during the term of the lease. Cat Financial also offers tax leases that are classified as either operating or direct finance leases for financial accounting purposes, depending on the characteristics of the lease. For tax purposes, Cat Financial is considered the owner of the equipment. Our lease agreements may include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value. We determine the residual value of Cat Financial’s leased equipment based on its estimated end-of-term market value. We estimate the residual value of leased equipment at the inception of the lease based on a number of factors, including historical wholesale market sales prices, past remarketing experience and any known significant market/product trends. We also consider the following critical factors in our residual value estimates: lease term, market size and demand, total expected hours of usage, machine configuration, application, location, model changes, quantities, third-party residual guarantees and contractual customer purchase options. During the term of our leases, we monitor residual values. For operating leases, we record adjustments to depreciation expense reflecting changes in residual value estimates prospectively on a straight-line basis. For finance leases, we recognize residual value adjustments through a reduction of finance revenue over the remaining lease term. See Note 7 for contractual maturities of finance lease receivables (sales-type and direct finance leases). The carrying amount of equipment leased to others, included in Property, plant and equipment - net in Statement 3, under operating leases was as follows: December 31, (Millions of dollars) 2020 2019 Equipment leased to others - at original cost $ 6,077 $ 6,208 Less: Accumulated depreciation (2,035) (1,960) Equipment leased to others - net $ 4,042 $ 4,248 Payments due for operating leases as of December 31, 2020, were as follows: (Millions of dollars) 2021 2022 2023 2024 2025 Thereafter Total $842 $494 $260 $134 $64 $64 $1,858 Revenues from finance and operating leases, primarily included in Revenues of Financial Products on Statement 1, were as follows: (Millions of dollars) Year ended December 31 2020 2019 Finance lease revenue $ 492 $ 521 Operating lease revenue 1,124 1,248 Total $ 1,616 $ 1,769

Guarantees and product warranty

Guarantees and product warranty	12 Months Ended
Guarantees and product warranty	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Guarantees and product warranty	Guarantees and product warranty Caterpillar dealer performance guarantees We have provided an indemnity to a third-party insurance company for potential losses related to performance bonds issued on behalf of Caterpillar dealers. The bonds have varying terms and are issued to insure governmental agencies against nonperformance by certain dealers. We also provided guarantees to third-parties related to the performance of contractual obligations by certain Caterpillar dealers. These guarantees have varying terms and cover potential financial losses incurred by the third parties resulting from the dealers’ nonperformance. In 2016, we provided a guarantee to an end user related to the performance of contractual obligations by a Caterpillar dealer. Under the guarantee, which expires in 2025, non-performance by the Caterpillar dealer could require Caterpillar to satisfy the contractual obligations by providing goods, services or financial compensation to the end user up to an annual designated cap. Supplier consortium performance guarantee We have provided a guarantee to a customer in Europe related to the performance of contractual obligations by a supplier consortium to which one of our Caterpillar subsidiaries is a member. The guarantee covers potential damages incurred by the customer resulting from the supplier consortium's non-performance. The damages are capped except for failure of the consortium to meet certain obligations outlined in the contract in the normal course of business. The guarantee will expire when the supplier consortium performs all of its contractual obligations, which is expected to be completed in 2022. We have dealer performance guarantees and third-party performance guarantees that do not limit potential payment to end users related to indemnities and other commercial contractual obligations. In addition, we have entered into contracts involving industry standard indemnifications that do not limit potential payment. For these unlimited guarantees, we are unable to estimate a maximum potential amount of future payments that could result from claims made. No significant loss has been experienced or is anticipated under any of these guarantees. At both December 31, 2020 and 2019, the related recorded liability was $5 million. The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees at December 31 was as follows: (Millions of dollars) 2020 2019 Caterpillar dealer performance guarantees $ 993 $ 1,150 Supplier consortium performance guarantee 258 238 Other guarantees 234 221 Total guarantees $ 1,485 $ 1,609 Cat Financial provides guarantees to repurchase certain loans of Caterpillar dealers from a special-purpose corporation (SPC) that qualifies as a variable interest entity. The purpose of the SPC is to provide short-term working capital loans to Caterpillar dealers. This SPC issues commercial paper and uses the proceeds to fund its loan program. Cat Financial has a loan purchase agreement with the SPC that obligates Cat Financial to purchase certain loans that are not paid at maturity. Cat Financial receives a fee for providing this guarantee, which provides a source of liquidity for the SPC. Cat Financial is the primary beneficiary of the SPC as its guarantees result in Cat Financial having both the power to direct the activities that most significantly impact the SPC’s economic performance and the obligation to absorb losses, and therefore Cat Financial has consolidated the financial statements of the SPC. As of December 31, 2020 and 2019, the SPC’s assets of $1,026 million and $1,453 million, respectively, were primarily comprised of loans to dealers, and the SPC’s liabilities of $1,025 million and $1,452 million, respectively, were primarily comprised of commercial paper. The assets of the SPC are not available to pay Cat Financial’s creditors. Cat Financial may be obligated to perform under the guarantee if the SPC experiences losses. No loss has been experienced or is anticipated under this loan purchase agreement. Cat Financial has commitments to extend credit to customers and Caterpillar dealers through lines of credit and other pre-approved credit arrangements. Cat Financial applies the same credit policies and approval process for these commitments to extend credit as we do for other financing. Collateral is not required for these commitments, but if credit is extended, collateral may be required upon funding. The amount of unused commitments to extend credit to Caterpillar dealers was $11.63 billion at December 31, 2020. The amount of unused commitments to extend credit to customers was $675 million at December 31, 2020. A significant portion of these commitments is not expected to be fully drawn upon; therefore, the total commitment amounts do not represent a future cash requirement. Cat Financial generally has the right to unconditionally cancel, alter, or amend the terms of these commitments at any time. We determine our product warranty liability by applying historical claim rate experience to the current field population and dealer inventory. Generally, we base historical claim rates on actual warranty experience for each product by machine model/engine size by customer or dealer location (inside or outside North America). We develop specific rates for each product shipment month and update them monthly based on actual warranty claim experience. The reconciliation of the change in our product warranty liability balances for the years ended December 31 was as follows: (Millions of dollars) 2020 2019 Warranty liability, beginning of period $ 1,541 $ 1,391 Reduction in liability (payments) (897) (903) Increase in liability (new warranties) 968 1,053 Warranty liability, end of period $ 1,612 $ 1,541

Environmental and legal matters

Environmental and legal matters	12 Months Ended
Environmental and legal matters	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Environmental and legal matters	Environmental and legal matters The Company is regulated by federal, state and international environmental laws governing its use, transport and disposal of substances and control of emissions. In addition to governing our manufacturing and other operations, these laws often impact the development of our products, including, but not limited to, required compliance with air emissions standards applicable to internal combustion engines. We have made, and will continue to make, significant research and development and capital expenditures to comply with these emissions standards. We are engaged in remedial activities at a number of locations, often with other companies, pursuant to federal and state laws. When it is probable we will pay remedial costs at a site, and those costs can be reasonably estimated, we accrue the investigation, remediation, and operating and maintenance costs against our earnings. We accrue costs based on consideration of currently available data and information with respect to each individual site, including available technologies, current applicable laws and regulations, and prior remediation experience. Where no amount within a range of estimates is more likely, we accrue the minimum. Where multiple potentially responsible parties are involved, we consider our proportionate share of the probable costs. In formulating the estimate of probable costs, we do not consider amounts expected to be recovered from insurance companies or others. We reassess these accrued amounts on a quarterly basis. The amount recorded for environmental remediation is not material and is included in Accrued expenses. We believe there is no more than a remote chance that a material amount for remedial activities at any individual site, or at all the sites in the aggregate, will be required. On January 27, 2020, the Brazilian Federal Environmental Agency (“IBAMA”) issued Caterpillar Brasil Ltda a notice of violation regarding allegations around the requirements for use of imported oils at the Piracicaba, Brazil facility. We have instituted processes to address the allegations. While we are still discussing resolution of these allegations with IBAMA, the initial notice from IBAMA included a proposed fine of approximately $300,000. We do not expect this fine or our response to address the allegations to have a material adverse effect on the Company's consolidated results of operations, financial position or liquidity. On January 7, 2015, the Company received a grand jury subpoena from the U.S. District Court for the Central District of Illinois. The subpoena requested documents and information from the Company relating to, among other things, financial information concerning U.S. and non-U.S. Caterpillar subsidiaries (including undistributed profits of non-U.S. subsidiaries and the movement of cash among U.S. and non-U.S. subsidiaries). The Company has received additional subpoenas relating to this investigation requesting additional documents and information relating to, among other things, the purchase and resale of replacement parts by Caterpillar Inc. and non-U.S. Caterpillar subsidiaries, dividend distributions of certain non-U.S. Caterpillar subsidiaries, and Caterpillar SARL (CSARL) and related structures. On March 2-3, 2017, agents with the Department of Commerce, the Federal Deposit Insurance Corporation and the Internal Revenue Service executed search and seizure warrants at three facilities of the Company in the Peoria, Illinois area, including its former corporate headquarters. The warrants identify, and agents seized, documents and information related to, among other things, the export of products from the United States, the movement of products between the United States and Switzerland, the relationship between Caterpillar Inc. and CSARL, and sales outside the United States. It is the Company’s understanding that the warrants, which concern both tax and export activities, are related to the ongoing grand jury investigation. The Company is continuing to cooperate with this investigation. The Company is unable to predict the outcome or reasonably estimate any potential loss; however, we currently believe that this matter will not have a material adverse effect on the Company’s consolidated results of operations, financial position or liquidity. In addition, we are involved in other unresolved legal actions that arise in the normal course of business. The most prevalent of these unresolved actions involve disputes related to product design, manufacture and performance liability (including claimed asbestos exposure), contracts, employment issues, environmental matters, intellectual property rights, taxes (other than income taxes) and securities laws. The aggregate range of reasonably possible losses in excess of accrued liabilities, if any, associated with these unresolved legal actions is not material. In some cases, we cannot reasonably estimate a range of loss because there is insufficient information regarding the matter. However, we believe there is no more than a remote chance that any liability arising from these matters would be material. Although it is not possible to predict with certainty the outcome of these unresolved legal actions, we believe that these actions will not individually or in the aggregate have a material adverse effect on our consolidated results of operations, financial position or liquidity.

Segment Information

Segment Information	12 Months Ended
Segment Information	Dec. 31, 2020
Segment Reporting [Abstract]
Segment information	Segment information A. Basis for segment information Our Executive Office is comprised of a Chief Executive Officer (CEO), four Group Presidents, a Chief Financial Officer (CFO), a Chief Legal Officer and General Counsel and a Chief Human Resources Officer. The Group Presidents and CFO are accountable for a related set of end-to-end businesses that they manage. The Chief Legal Officer and General Counsel leads the Law, Security and Public Policy Division. The Chief Human Resources Officer leads the Human Resources Organization. The CEO allocates resources and manages performance at the Group President/CFO level. As such, the CEO serves as our Chief Operating Decision Maker, and operating segments are primarily based on the Group President/CFO reporting structure. Three of our operating segments, Construction Industries, Resource Industries and Energy & Transportation are led by Group Presidents. One operating segment, Financial Products, is led by the CFO who also has responsibility for Corporate Services. Corporate Services is a cost center primarily responsible for the performance of certain support functions globally and to provide centralized services; it does not meet the definition of an operating segment. One Group President leads one smaller operating segment that is included in the All Other operating segment. The Law, Security and Public Policy Division and the Human Resources Organization are cost centers and do not meet the definition of an operating segment. B. Description of segments We have five operating segments, of which four are reportable segments. Following is a brief description of our reportable segments and the business activities included in the All Other operating segment: Construction Industries : A segment primarily responsible for supporting customers using machinery in infrastructure and building construction applications. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support. The product portfolio includes asphalt pavers; backhoe loaders; compactors; cold planers; compact track and multi-terrain loaders; mini, small, medium and large track excavators; motor graders; pipelayers; road reclaimers; skid steer loaders; telehandlers; small and medium track-type tractors; track-type loaders; utility vehicles; wheel excavators; compact, small and medium wheel loaders; and related parts and work tools. Inter-segment sales are a source of revenue for this segment. Resource Industries : A segment primarily responsible for supporting customers using machinery in mining, heavy construction, quarry and aggregates, waste and material handling applications. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales, and product support. The product portfolio includes large track-type tractors, large mining trucks, hard rock vehicles, longwall miners, electric rope shovels, draglines, hydraulic shovels, rotary drills, large wheel loaders, off-highway trucks, articulated trucks, wheel tractor scrapers, wheel dozers, landfill compactors, soil compactors, select work tools, machinery components, electronics and control systems, and related parts. In addition to equipment, Resource Industries also develops and sells technology products and services to provide customers fleet management, equipment management analytics and autonomous machine capabilities. Resource Industries also manages areas that provide services to other parts of the company, including integrated manufacturing and research and development. Inter-segment sales are a source of revenue for this segment. Energy & Transportation : A segment primarily responsible for supporting customers using reciprocating engines, turbines, diesel-electric locomotives and related parts across industries serving Oil and Gas, Power Generation, Industrial and Transportation applications, including marine- and rail-related businesses. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales, and product support. The product portfolio includes turbine machinery and integrated systems and solutions and turbine-related services, reciprocating engine-powered generator sets, integrated systems used in the electric power generation industry, reciprocating engines and integrated systems and solutions for the marine and oil and gas industries, and reciprocating engines supplied to the industrial industry as well as Cat machinery. Responsibilities also include the remanufacturing of Caterpillar engines and components and remanufacturing services for other companies; the business strategy, product design, product management and development, manufacturing, remanufacturing, leasing and service of diesel-electric locomotives and components and other rail-related products and services; and product support of on-highway vocational trucks for North America. Inter-segment sales are a source of revenue for this segment. Financial Products Segment : Provides financing alternatives to customers and dealers around the world for Caterpillar products, as well as financing for vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. Financing plans include operating and finance leases, installment sale contracts, working capital loans and wholesale financing plans. The segment also provides insurance and risk management products and services that help customers and dealers manage their business risk. Insurance and risk management products offered include physical damage insurance, inventory protection plans, extended service coverage for machines and engines, and dealer property and casualty insurance. The various forms of financing, insurance and risk management products offered to customers and dealers help support the purchase and lease of Caterpillar equipment. The segment also earns revenues from ME&T, but the related costs are not allocated to operating segments. Financial Products’ segment profit is determined on a pretax basis and includes other income/expense items. All Other operating segment : Primarily includes activities such as: business strategy; product management and development; manufacturing and sourcing of filters and fluids, undercarriage, ground-engaging tools, fluid transfer products, precision seals, rubber sealing and connecting components primarily for Cat® products; parts distribution; integrated logistics solutions; distribution services responsible for dealer development and administration, including one wholly owned dealer in Japan; dealer portfolio management and ensuring the most efficient and effective distribution of machines, engines and parts; brand management and marketing strategy; and digital investments for new customer and dealer solutions that integrate data analytics with state-of-the-art digital technologies while transforming the buying experience. We include results for the All Other operating segment as a reconciling item between reportable segments and consolidated external reporting. C. Segment measurement and reconciliations There are several methodology differences between our segment reporting and our external reporting. The following is a list of the more significant methodology differences: • ME&T segment net assets generally include inventories, receivables, property, plant and equipment, goodwill, intangibles, accounts payable and customer advances. Beginning in 2020, we revised how we allocate certain assets between segments. We have recast all prior period amounts to align with the current methodology. We generally manage at the corporate level liabilities other than accounts payable and customer advances, and we do not include these in segment operations. Financial Products Segment assets generally include all categories of assets. • We value segment inventories and cost of sales using a current cost methodology. • We amortize goodwill allocated to segments using a fixed amount based on a 20-year useful life. This methodology difference only impacts segment assets. We do not include goodwill amortization expense in segment profit. In addition, we have allocated to segments only a portion of goodwill for certain acquisitions made in 2011 or later. • We generally manage currency exposures for ME&T at the corporate level and do not include in segment profit the effects of changes in exchange rates on results of operations within the year. We report the net difference created in the translation of revenues and costs between exchange rates used for U.S. GAAP reporting and exchange rates used for segment reporting as a methodology difference. • We do not include stock-based compensation expense in segment profit. • Postretirement benefit expenses are split; segments are generally responsible for service costs, with the remaining elements of net periodic benefit cost included as a methodology difference. • We determine ME&T segment profit on a pretax basis and exclude interest expense and most other income/expense items. We determine Financial Products Segment profit on a pretax basis and include other income/expense items. Reconciling items are created based on accounting differences between segment reporting and our consolidated external reporting. Please refer to pages 137 to 139 for financial information regarding significant reconciling items. Most of our reconciling items are self-explanatory given the above explanations. For the reconciliation of profit, we have grouped the reconciling items as follows: • Corporate costs: These costs are related to corporate requirements primarily for compliance and legal functions for the benefit of the entire organization. • Restructuring costs: May include costs for employee separation, long-lived asset impairments and contract terminations. These costs are included in Other operating (income) expenses except for defined-benefit plan curtailment losses and special termination benefits, which are included in Other income (expense). Restructuring costs also include other exit-related costs, which may consist of accelerated depreciation, inventory write-downs, building demolition, equipment relocation and project management costs and LIFO inventory decrement benefits from inventory liquidations at closed facilities, all of which are primarily included in Cost of goods sold. Only certain restructuring costs are excluded from segment profit. See Note 24 for more information. • Methodology differences: See previous discussion of significant accounting differences between segment reporting and consolidated external reporting. • Timing: Timing differences in the recognition of costs between segment reporting and consolidated external reporting. For example, we report certain costs on the cash basis for segment reporting and the accrual basis for consolidated external reporting. For the years ended December 31, 2020, 2019 and 2018, sales and revenues by geographic region reconciled to consolidated sales and revenues were as follows: Sales and Revenues by Geographic Region (Millions of dollars) North America Latin America EAME Asia/ Pacific External Sales and Revenues Intersegment Sales and Revenues Total Sales and Revenues 2020 Construction Industries $ 7,365 $ 1,031 $ 3,466 $ 5,014 $ 16,876 $ 42 $ 16,918 Resource Industries 2,286 1,253 1,570 2,337 $ 7,446 460 7,906 Energy & Transportation 6,843 932 4,448 2,441 $ 14,664 2,806 17,470 Financial Products Segment 1,930 257 392 465 $ 3,044 1 — 3,044 Total sales and revenues from reportable segments 18,424 3,473 9,876 10,257 42,030 3,308 45,338 All Other operating segment 27 4 26 56 113 354 467 Corporate Items and Eliminations (237) (45) (44) (69) (395) (3,662) (4,057) Total Sales and Revenues $ 18,214 $ 3,432 $ 9,858 $ 10,244 $ 41,748 $ — $ 41,748 2019 Construction Industries $ 11,455 $ 1,533 $ 4,012 $ 5,556 $ 22,556 $ 93 $ 22,649 Resource Industries 3,632 1,533 1,836 2,812 9,813 463 10,276 Energy & Transportation 8,864 1,389 4,994 3,238 18,485 3,612 22,097 Financial Products Segment 2,235 299 408 492 3,434 1 — 3,434 Total sales and revenues from reportable segments 26,186 4,754 11,250 12,098 54,288 4,168 58,456 All Other operating segment 25 7 28 67 127 373 500 Corporate Items and Eliminations (426) (51) (55) (83) (615) (4,541) (5,156) Total Sales and Revenues $ 25,785 $ 4,710 $ 11,223 $ 12,082 $ 53,800 $ — $ 53,800 2018 Construction Industries $ 10,754 $ 1,479 $ 4,410 $ 6,473 $ 23,116 $ 121 $ 23,237 Resource Industries 3,357 1,647 2,217 2,667 9,888 382 10,270 Energy & Transportation 9,685 1,331 4,934 2,882 18,832 3,953 22,785 Financial Products Segment 2,153 281 387 458 3,279 1 — 3,279 Total sales and revenues from reportable segments 25,949 4,738 11,948 12,480 55,115 4,456 59,571 All Other operating segment 63 3 18 70 154 328 482 Corporate Items and Eliminations (389) (46) (37) (75) (547) (4,784) (5,331) Total Sales and Revenues $ 25,623 $ 4,695 $ 11,929 $ 12,475 $ 54,722 $ — $ 54,722 1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other operating segment of $362 million , $524 million, and $470 million in the years ended December 31, 2020, 2019 and 2018, respectively. For the years ended December 31, 2020, 2019 and 2018, Energy & Transportation segment sales by end user application were as follows: Energy & Transportation External Sales (Millions of dollars) 2020 2019 2018 Oil and gas $ 3,701 $ 5,205 $ 5,763 Power generation 3,963 4,474 4,334 Industrial 2,945 3,749 3,640 Transportation 4,055 5,057 5,095 Energy & Transportation External Sales $ 14,664 $ 18,485 18,832 Reconciliation of Consolidated profit before taxes: (Millions of dollars) 2020 2019 2018 Profit from reportable segments: Construction Industries $ 2,373 $ 3,931 $ 4,174 Resource Industries 896 1,629 1,603 Energy & Transportation 2,405 3,910 3,938 Financial Products Segment 590 832 505 Total profit from reportable segments 6,264 10,302 10,220 Profit from All Other operating segment 28 4 23 Cost centers (4) (6) 2 Corporate costs (517) (607) (610) Timing (106) (93) (257) Restructuring costs (241) (207) (386) Methodology differences: Inventory/cost of sales 4 (19) 51 Postretirement benefit expense (173) (401) (124) Stock-based compensation expense (202) (205) (198) Financing costs (444) (248) (257) Currency (266) (175) (219) Other income/expense methodology differences (322) (481) (362) Other methodology differences (26) (52) (61) Total consolidated profit before taxes $ 3,995 $ 7,812 $ 7,822 Reconciliation of Assets: (Millions of dollars) December 31, 2020 2019 Assets from reportable segments: Construction Industries $ 4,259 $ 4,601 Resource Industries 6,035 6,505 Energy & Transportation 8,582 8,548 Financial Products Segment 34,278 35,813 Total assets from reportable segments 53,154 55,467 Assets from All Other operating segment 1,717 1,728 Items not included in segment assets: Cash and short-term investments 8,822 7,299 Deferred income taxes 1,413 1,294 Goodwill and intangible assets 4,847 4,435 Property, plant and equipment – net and other assets 2,833 2,529 Inventory methodology differences (2,536) (2,426) Liabilities included in segment assets 8,466 8,541 Other (392) (414) Total assets $ 78,324 $ 78,453 Reconciliation of Depreciation and amortization: (Millions of dollars) 2020 2019 2018 Depreciation and amortization from reportable segments: Construction Industries $ 245 $ 302 $ 367 Resource Industries 418 450 462 Energy & Transportation 593 624 640 Financial Products Segment 773 829 834 Total depreciation and amortization from reportable segments 2,029 2,205 2,303 Items not included in segment depreciation and amortization: All Other operating segment 267 210 225 Cost centers 126 135 130 Other 10 27 108 Total depreciation and amortization $ 2,432 $ 2,577 $ 2,766 Reconciliation of Capital expenditures: (Millions of dollars) 2020 2019 2018 Capital expenditures from reportable segments: Construction Industries $ 213 $ 201 $ 266 Resource Industries 125 168 188 Energy & Transportation 495 613 742 Financial Products Segment 1,100 1,534 1,559 Total capital expenditures from reportable segments 1,933 2,516 2,755 Items not included in segment capital expenditures: All Other operating segment 156 131 170 Cost centers 47 101 100 Timing 19 (11) 42 Other (40) (68) (151) Total capital expenditures $ 2,115 $ 2,669 $ 2,916 Enterprise-wide Disclosures: Information about Geographic Areas: Property, plant and equipment - net External sales and revenues 1 December 31, (Millions of dollars) 2020 2019 2018 2020 2019 Inside United States $ 16,269 $ 22,806 $ 22,690 $ 7,242 $ 7,568 Outside United States 25,479 30,994 32,032 5,159 5,336 Total $ 41,748 $ 53,800 $ 54,722 $ 12,401 $ 12,904 1 Sales of ME&T are based on dealer or customer location. Revenues from services provided are based on where service is rendered.

Restructuring Costs

Restructuring Costs	12 Months Ended
Restructuring Costs	Dec. 31, 2020
Restructuring Charges [Abstract]
Restructuring Costs	Restructuring costs Our accounting for employee separations is dependent upon how the particular program is designed. For voluntary programs, we recognize eligible separation costs at the time of employee acceptance unless the acceptance requires explicit approval by the company. For involuntary programs, we recognize eligible costs when management has approved the program, the affected employees have been properly notified and the costs are estimable. Restructuring costs for 2020, 2019 and 2018 were as follows: (Millions of dollars) 2020 2019 2018 Employee separations 1 $ 271 $ 48 $ 112 Contract terminations 1 2 1 7 Long-lived asset impairments 1 38 65 93 Defined benefit plan curtailments and termination benefits 2 — — (8) Other 3 43 122 182 Total restructuring costs $ 354 $ 236 $ 386 1 Recognized in Other operating (income) expenses. 2 Recognized in Other income (expense). 3 Represents costs related to our restructuring programs, primarily for inventory write-downs, equipment relocation, project management, accelerated depreciation and building demolition, all of which are primarily included in Cost of goods sold. The restructuring costs in 2020 were primarily related to various voluntary and involuntary employee separation programs implemented across the company and strategic actions to address certain product lines, which were partially offset by a gain on the sale of a manufacturing facility that had been closed. The restructuring costs in 2019 were primarily related to restructuring actions across the company. The restructuring costs in 2018 were primarily related to ongoing facility closures across the company. Beginning in 2019, only certain restructuring costs were excluded from segment profit. Restructuring costs included in segment profit were as follows: (Millions of dollars) 2020 2019 2018 Construction Industries $ 13 $ 4 $ — Resource Industries 19 5 — Energy & Transportation 55 7 — Financial Products Segment — — — All Other operating segment 9 8 — The following table summarizes the 2019 and 2020 employee separation activity: (Millions of dollars) 2020 2019 Liability balance, beginning of period $ 48 $ 85 Increase in liability (separation charges) 271 48 Reduction in liability (payments) (155) (85) Liability balance, end of period $ 164 $ 48 Most of the remaining liability balance as of December 31, 2020 is expected to be paid in 2021.

Selected quarterly financial re

Selected quarterly financial results	12 Months Ended
Selected quarterly financial results	Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]
Selected quarterly financial results (unaudited)	Selected quarterly financial results (unaudited) 2020 Quarter (Dollars in millions except per share data) 1st 2nd 3rd 4th Sales and revenues $ 10,635 $ 9,997 $ 9,881 $ 11,235 Less: Revenues (721) (687) (653) (665) Sales 9,914 9,310 9,228 10,570 Cost of goods sold 7,266 7,113 6,919 7,784 Gross margin 2,648 2,197 2,309 2,786 Profit 1 $ 1,092 3 $ 458 3 $ 668 3 $ 780 3 Profit per common share $ 2.00 $ 0.84 $ 1.23 $ 1.43 Profit per common share–diluted 2 $ 1.98 $ 0.84 $ 1.22 $ 1.42 2019 Quarter (Dollars in millions except per share data) 1st 2nd 3rd 4th Sales and revenues $ 13,466 $ 14,432 $ 12,758 $ 13,144 Less: Revenues (742) (761) (784) (758) Sales 12,724 13,671 11,974 12,386 Cost of goods sold 9,003 9,941 8,569 9,117 Gross margin 3,721 3,730 3,405 3,269 Profit 1 $ 1,881 4 $ 1,620 $ 1,494 $ 1,098 5 Profit per common share $ 3.29 $ 2.85 $ 2.69 $ 2.00 Profit per common share–diluted 2 $ 3.25 $ 2.83 $ 2.66 $ 1.97 1 Profit attributable to common shareholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. 3 The first quarter of 2020 includes pre-tax pension and other postretirement benefit plan actuarial gain of $254 million. The second, third and fourth quarters of 2020 include pre-tax pension and other postretirement benefit actuarial losses of $122 million, $77 million and $438 million, respectively. See Note 12 for additional information on these costs. 4 The first quarter of 2019 includes a benefit of $178 million to adjust unrecognized tax benefits due to the receipt of final regulations providing additional guidance related to the calculation of the mandatory deemed repatriation of non-U.S. earnings due to U.S. tax reform. 5 The fourth quarter of 2019 includes pre-tax pension and other postretirement benefit plan actuarial loss of $468 million. See Note 12 for additional information on these costs.

Subsequent Event

Subsequent Event	12 Months Ended
Subsequent Event	Dec. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent eventOn February 1, 2021, we acquired the Oil & Gas Division (“SPM Oil & Gas”) of the Weir Group PLC for approximately $375 million. Headquartered near Fort Worth, Texas, SPM Oil & Gas will produce a full line of pumps, flow iron, consumable parts, wellhead and pressure control products that are offered via an extensive global network of service centers.

Operations and summary of sig_2

Operations and summary of significant accounting policies (Policies)	12 Months Ended
	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation, Policy	Basis of presentation The consolidated financial statements include the accounts of Caterpillar Inc. and its subsidiaries where we have a controlling financial interest. Investments in companies where our ownership exceeds 20 percent and we do not have a controlling interest or where the ownership is less than 20 percent and for which we have a significant influence are accounted for by the equity method. We consolidate all variable interest entities (VIEs) where Caterpillar Inc. is the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. See Note 21 for further discussion on a consolidated VIE. Cat Financial has end-user customers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support to these entities and therefore have a variable interest, we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. These risks were evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses. We include shipping and handling costs in Cost of goods sold in Statement 1. Other operating (income) expenses primarily include Cat Financial’s depreciation on equipment leased to others, Insurance Services’ underwriting expenses, (gains) losses on disposal of long-lived assets, long-lived asset impairment charges, legal settlements and accruals, contract termination costs and employee separation charges. Prepaid expenses and other current assets in Statement 3 primarily include prepaid insurance, contract assets, right of return assets, prepaid and refundable income taxes, assets held for sale, core to be returned for remanufacturing, restricted cash and other short-term investments.
Inventories, Policy	C. Inventories We state inventories at the lower of cost or net realizable value. We principally determine cost using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis represented about 60 percent of total inventories at December 31, 2020 and 2019. If the FIFO (first-in, first-out) method had been in use, inventories would have been $2,132 million and $2,086 million higher than reported at December 31, 2020 and 2019, respectively.
Depreciation and Amortization, Policy	D. Depreciation and amortization We compute depreciation of plant and equipment principally using accelerated methods. We compute depreciation on equipment leased to others, primarily for Financial Products, using the straight-line method over the term of the lease. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term. In 2020, 2019 and 2018, Cat Financial depreciation on equipment leased to others was $758 million, $813 million and $819 million, respectively, which we include in Other operating (income) expenses in Statement 1. In 2020, 2019 and 2018, consolidated depreciation expense was $2,122 million, $2,253 million and $2,435 million, respectively. We compute amortization of purchased finite-lived intangibles principally using the straight-line method, generally not to exceed a period of 20 years.
Foreign Currency Translation, Policy	E. Foreign currency translation The functional currency for most of our ME&T consolidated subsidiaries is the U.S. dollar. The functional currency for most of our Financial Products consolidated subsidiaries is the respective local currency. We include gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency in Other income (expense) in Statement 1. We include gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars in Accumulated other comprehensive income (loss) in Statement 3.
Derivative Financial Instruments, Policy	F. Derivative financial instruments Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates and commodity prices. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate and commodity price exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option and cross currency contracts, interest rate contracts and commodity forward and option contracts. All derivatives are recorded at fair value. See Note 4 for more information.
Income Taxes, Policy	G. Income taxes We determine the provision for income taxes using the asset and liability approach taking into account guidance related to uncertain tax positions. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. We recognize a current liability for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. We adjust deferred taxes for enacted changes in tax rates and tax laws. We record valuation allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. See Note 6 for further discussion.
Goodwill, Policy	H. Goodwill For acquisitions accounted for as a business combination, goodwill represents the excess of the cost over the fair value of the net assets acquired. We are required to test goodwill for impairment, at the reporting unit level, annually and when events or circumstances make it more likely than not that an impairment may have occurred. A reporting unit is an operating segment or one level below an operating segment (referred to as a component) to which goodwill is assigned when initially recorded. We assign goodwill to reporting units based on our integration plans and the expected synergies resulting from the acquisition. Because Caterpillar is a highly integrated company, the businesses we acquire are sometimes combined with or integrated into existing reporting units. When changes occur in the composition of our operating segments or reporting units, we reassign goodwill to the affected reporting units based on their relative fair values. We perform our annual goodwill impairment test as of October 1 and monitor for interim triggering events on an ongoing basis. We review goodwill for impairment utilizing either a qualitative assessment or a quantitative goodwill impairment test. If we choose to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. For reporting units where we perform the quantitative goodwill impairment test, we compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows, to the respective carrying value, which includes goodwill. If the fair value of the reporting unit exceeds its carrying value, we do not consider the goodwill impaired. If the carrying value is higher than the fair value, we would recognize the difference as an impairment loss. See Note 10 for further details.
Estimates in Financial Statements, Policy	I. Estimates in financial statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts. The more significant estimates include: residual values for leased assets; fair values for goodwill impairment tests; warranty liability and reserves for product liability and insurance losses, postretirement benefits, post-sale discounts, credit losses and income taxes.

Sales and revenue recognition_2

Sales and revenue recognition sales and revenue recognition (Policies)	12 Months Ended
	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue [Policy Text Block]	Sales and revenue recognition A. Sales of Machinery, Energy & Transportation We recognize sales of ME&T when all the following criteria are satisfied: (i) a contract with an independently owned and operated dealer or an end user exists which has commercial substance; (ii) it is probable we will collect the amount charged to the dealer or end user; and (iii) we have completed our performance obligation whereby the dealer or end user has obtained control of the product. A contract with commercial substance exists once we receive and accept a purchase order under a dealer sales agreement, or once we enter into a contract with an end user. If collectibility is not probable, the sale is deferred and not recognized until collection is probable or payment is received. Control of our products typically transfers when title and risk of ownership of the product has transferred to the dealer or end user. Typically, where product is produced and sold in the same country, title and risk of ownership transfer when we ship the product. Products that are exported from a country for sale typically transfer title and risk of ownership at the border of the destination country. Our remanufacturing operations are primarily focused on the remanufacture of Cat engines and components and rail related products. In this business, we inspect, clean and remanufacture used engines and related components (core). In connection with the sale of our remanufactured product to dealers, we collect a deposit that is repaid if the dealer returns an acceptable core within a specified time period. Caterpillar owns and has title to the cores when they are returned from dealers. The rebuilt engine or component (the core plus any new content) is then sold as a remanufactured product to dealers and end users. We recognize revenue pursuant to the same transfer of control criteria as ME&T sales noted above. At the time of sale, we recognize the deposit in Other current liabilities in Statement 3, and we recognize the core to be returned as an asset in Prepaid expenses and other current assets in Statement 3 at the estimated replacement cost (based on historical experience with usable cores). Upon receipt of an acceptable core, we repay the deposit and relieve the liability. We then transfer the returned core asset into inventory. In the event that the deposit is forfeited (i.e., upon failure by the dealer to return an acceptable core in the specified time period), we recognize the core deposit and the cost of the core in Sales and Cost of goods sold, respectively. We provide discounts to dealers through merchandising programs. We have numerous programs that are designed to promote the sale of our products. The most common dealer programs provide a discount when the dealer sells a product to a targeted end user. Generally, we estimate the cost of these discounts for each product by model by geographic region based on historical experience and known changes in merchandising programs. We report the cost of these discounts as a reduction to the transaction price when we recognize the product sale. We accrue a corresponding post-sale discount reserve in Statement 3, which represents discounts we expect to pay on units sold. If discounts paid differ from those estimated, we report the difference as a change in the transaction price. Except for replacement parts, no right of return exists on the sale of our products. We estimate replacement part returns based on historical experience and recognize a parts return asset in Prepaid expenses and other current assets in Statement 3, which represents our right to recover replacement parts we expect will be returned. We also recognize a refund liability in Other current liabilities in Statement 3 for the refund we expect to pay for returned parts. If actual replacement part returns differ from those estimated, we recognize the difference in the estimated replacement part return asset and refund liability in Cost of goods sold and Sales, respectively. Our standard dealer invoice terms are established by marketing region. Our invoice terms for end user sales are established by the responsible business unit. Payments from dealers are due shortly after the time of sale. When we make a sale to a dealer, the dealer is responsible for payment even if the product is not sold to an end user. Dealers and end users must make payment within the established invoice terms to avoid potential interest costs. Interest at or above prevailing market rates may be charged on any past due balance, and generally our practice is to not forgive this interest. In addition, Cat Financial provides wholesale inventory financing for a dealer’s purchase of inventory. Wholesale inventory receivables have varying payment terms. We include wholesale inventory receivables in Receivables – trade and other and Long-term receivables – trade and other in Statement 3. See Note 7 for further information. Trade receivables from dealers and end users were $6,310 million, $7,648 million and $7,743 million as of December 31, 2020, 2019 and 2018, respectively. We recognize trade receivables from dealers and end users in Receivables – trade and other in Statement 3. Long-term trade receivables from dealers and end users were $657 million, $693 million and $674 million as of December 31, 2020, 2019 and 2018, respectively. We recognize long-term trade receivables from dealers and end users in Long-term receivables – trade and other in Statement 3. We establish an allowance for credit losses for ME&T receivables when it becomes probable that we will not collect the receivable. Our allowance for credit losses is not significant. We invoice in advance of recognizing the sale of certain products. We recognize advanced customer payments as a contract liability in Customer advances and Other liabilities in Statement 3. Contract liabilities were $1,526 million, $1,654 million and $1,680 million as of December 31, 2020, 2019 and 2018, respectively. We reduce the contract liability when we recognize revenue. During 2020, we recognized $1,012 million of revenue that was recorded as a contract liability at the beginning of 2020. During 2019, we recognized $1,171 million of revenue that was recorded as a contract liability at the beginning of 2019. We have elected the practical expedient to not adjust the amount of revenue to be recognized under a contract with a dealer or end user for the effects of time value of money when the timing difference between receipt of payment and recognition of revenue is less than one year. As of December 31, 2020, we have entered into contracts with dealers and end users for which sales have not been recognized as we have not satisfied our performance obligations and transferred control of the products. The dollar amount of unsatisfied performance obligations for contracts with an original duration greater than one year is $5.7 billion, of which $2.2 billion is expected to be completed and revenue recognized in the twelve months following December 31, 2020. We have elected the practical expedient to not disclose unsatisfied performance obligations with an original contract duration of one year or less. Contracts with an original duration of one year or less are primarily sales to dealers for machinery, engines and replacement parts. We exclude sales and other related taxes from the transaction price. We account for shipping and handling costs associated with outbound freight after control over a product has transferred as a fulfillment cost which is included in Cost of goods sold. We provide a standard manufacturer’s warranty of our products at no additional cost. At the time we recognize a sale, we record estimated future warranty costs. See Note 21 for further discussion of our product warranty liabilities. See Note 23 for further disaggregated sales and revenues information. B. Revenues of Financial Products Revenues of Financial Products are generated primarily from finance revenue on finance receivables and rental payments on operating leases. We record finance revenue over the life of the related finance receivable using the interest method, including the accretion of certain direct origination costs that are deferred. We recognize revenue from rental payments received on operating leases on a straight-line basis over the term of the lease. We suspend recognition of finance revenue and operating lease revenue and place the account on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). We resume recognition of revenue, and recognize previously suspended income, when the account becomes current and we consider collection of remaining amounts to be probable. We write off interest earned but uncollected prior to the receivable being placed on non-accrual status through Provision for credit losses when, in the judgment of management, we consider it to be uncollectible. See Note 7 for more information.

Derivative financial instrume_2

Derivative financial instruments and risk management (Policies)	12 Months Ended
	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Risk Management, Policy	Foreign currency exchange rate risk Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. Our ME&T operations purchase, manufacture and sell products in many locations around the world. As we have a diversified revenue and cost base, we manage our future foreign currency cash flow exposure on a net basis. We use foreign currency forward and option contracts to manage unmatched foreign currency cash inflow and outflow. Our objective is to minimize the risk of exchange rate movements that would reduce the U.S. dollar value of our foreign currency cash flow. Our policy allows for managing anticipated foreign currency cash flow for up to approximately five years. As of December 31, 2020, the maximum term of these outstanding contracts was approximately 60 months. We generally designate as cash flow hedges at inception of the contract any Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese yuan, Indian rupee, Japanese yen, Mexican peso, Norwegian Krona, Singapore dollar or Thailand baht forward or option contracts that meet the requirements for hedge accounting and the maturity extends beyond the current quarter-end. We perform designation on a specific exposure basis to support hedge accounting. The remainder of ME&T foreign currency contracts are undesignated. In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our assets and liabilities and exchange rate risk associated with future transactions denominated in foreign currencies. Our foreign currency forward and option contracts are primarily undesignated. We designate fixed-to-fixed cross currency contracts as cash flow hedges to protect against movements in exchange rates on foreign currency fixed-rate assets and liabilities. B. Interest rate risk Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate contracts to manage our exposure to interest rate changes. Our ME&T operations generally use fixed-rate debt as a source of funding. Our objective is to minimize the cost of borrowed funds. Our policy allows us to enter into fixed-to-floating interest rate contracts and forward rate agreements to meet that objective. We designate fixed-to-floating interest rate contracts as fair value hedges at inception of the contract, and we designate certain forward rate agreements as cash flow hedges at inception of the contract. Financial Products operations has a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate and duration) of Cat Financial’s debt portfolio with the interest rate profile of our receivables portfolio within predetermined ranges on an ongoing basis. In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the receivables portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move. Our policy allows us to use fixed-to-floating, floating-to-fixed and floating-to-floating interest rate contracts to meet the match-funding objective. We designate fixed-to-floating interest rate contracts as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate. We designate most floating-to-fixed interest rate contracts as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate. We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate contracts at both ME&T and Financial Products. We amortize the gains or losses associated with these contracts at the time of liquidation into earnings over the original term of the previously designated hedged item. C. Commodity price risk Commodity price movements create a degree of risk by affecting the price we must pay for certain raw materials. Our policy is to use commodity forward and option contracts to manage the commodity risk and reduce the cost of purchased materials. Our ME&T operations purchase base and precious metals embedded in the components we purchase from suppliers. Our suppliers pass on to us price changes in the commodity portion of the component cost. In addition, we are subject to price changes on energy products such as natural gas and diesel fuel purchased for operational use. Our objective is to minimize volatility in the price of these commodities. Our policy allows us to enter into commodity forward and option contracts to lock in the purchase price of a portion of these commodities within a five-year horizon. All such commodity forward and option contracts are undesignated.

Stock-based compensation (Table

Stock-based compensation (Tables)	12 Months Ended
Stock-based compensation (Tables)	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Schedule providing assumptions used in determining the fair value of stock-based awards	The following table provides the assumptions used in determining the fair value of the Option awards for the years ended December 31, 2020, 2019 and 2018, respectively. Grant Year 2020 2019 2018 Weighted-average dividend yield 2.5 % 2.6 % 2.7 % Weighted-average volatility 25.7 % 29.1 % 30.2 % Range of volatilities 24.5%-29.7% 25.1%-38.7% 21.5%- 33.0% Range of risk-free interest rates 1.21%-1.39% 2.48%-2.68% 2.02%-2.87% Weighted-average expected lives 8 years 7 years 8 years
Schedule of stock-based compensation activity	Please refer to Tables I and II below for additional information on our stock-based compensation awards. TABLE I — Financial Information Related to Stock-based Compensation Stock options RSUs PRSUs Shares Weighted- Shares Weighted- Shares Weighted- Outstanding at January 1, 2020 14,464,994 $ 99.29 1,369,203 $ 132.88 670,115 $ 144.46 Granted to officers and key employees 1,913,888 $ 127.60 743,783 $ 128.07 399,149 $ 128.41 Exercised (6,247,628) $ 91.21 — $ — — $ — Vested — $ — (724,606) $ 124.25 (326,217) $ 151.12 Forfeited / expired (54,271) $ 113.64 (60,430) $ 133.28 (15,290) $ 141.15 Outstanding at December 31, 2020 10,076,983 $ 109.60 1,327,950 $ 134.89 727,757 $ 132.81 Exercisable at December 31, 2020 6,711,398 $ 97.29 Stock options outstanding and exercisable as of December 31, 2020: Outstanding Exercisable Exercise Prices Shares Outstanding at 12/31/2020 Weighted- Weighted- Aggregate Intrinsic Value 1 Shares Outstanding at 12/31/2020 Weighted- Weighted- Aggregate Intrinsic Value 1 $74.77-$83.00 3,076,885 4.76 $ 78.72 $ 318 3,076,885 4.76 $ 78.72 $ 318 $89.75-$96.31 2,245,247 4.82 $ 94.92 196 2,244,742 4.82 $ 94.92 196 $102.13-$110.09 164,103 1.01 $ 108.70 12 164,103 1.01 $ 108.70 12 $127.60-$138.51 3,284,693 8.86 $ 132.16 164 408,768 8.27 $ 138.35 18 $141.32-$151.12 1,306,055 7.28 $ 150.95 41 816,900 7.28 $ 150.94 6 10,076,983 $ 109.60 $ 731 6,711,398 $ 97.29 $ 550 1 The difference between a stock award’s exercise price and the underlying stock’s closing market price at December 31, 2020, for awards with market price greater than the exercise price. Amounts are in millions of dollars.
Schedule of financial information related to stock-based compensation	TABLE II— Additional Stock-based Award Information (Dollars in millions except per share data) 2020 2019 2018 Stock options activity: Weighted-average fair value per share of stock awards granted $ 25.98 $ 40.98 $ 46.09 Intrinsic value of stock awards exercised $ 386 $ 264 $ 348 Fair value of stock awards vested 1 $ 64 $ 100 $ 86 Cash received from stock awards exercised $ 282 $ 298 $ 370 RSUs activity: Weighted-average fair value per share of stock awards granted $ 128.07 $ 138.61 $ 150.58 Fair value of stock awards vested 2 $ 87 $ 110 $ 180 PRSUs activity: Weighted-average fair value per share of stock awards granted $ 128.41 $ 138.67 $ 150.98 Fair value of stock awards vested 2 $ 59 $ 59 $ 70 1 Based on the grant date fair value. 2 Based on the underlying stock’s closing market price on the vesting date.

Derivative financial instrume_3

Derivative financial instruments and risk management (Tables)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Location and fair value of derivative instruments reported in the Consolidated Financial Position	The location and fair value of derivative instruments reported in Statement 3 were as follows: Consolidated Asset (Liability) Fair Value (Millions of dollars) Years ended December 31, 2020 2019 Designated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables — trade and other $ 74 $ 18 Machinery, Energy & Transportation Long-term receivables — trade and other 71 9 Machinery, Energy & Transportation Accrued expenses (36) (20) Machinery, Energy & Transportation Other liabilities (1) — Financial Products Receivables — trade and other 1 54 Financial Products Long-term receivables — trade and other 1 13 Financial Products Accrued expenses (148) (3) Interest rate contracts Machinery, Energy & Transportation Long-term receivables — trade and other 4 — Financial Products Receivables — trade and other 2 — Financial Products Long-term receivables — trade and other 57 5 Financial Products Accrued expenses (5) (25) $ 20 $ 51 Undesignated derivatives Foreign exchange contracts Machinery, Energy & Transportation Receivables — trade and other $ 10 $ 1 Machinery, Energy & Transportation Accrued expenses (1) — Financial Products Receivables — trade and other 17 7 Financial Products Long-term receivables — trade and other 7 5 Financial Products Accrued expenses (107) (22) Commodity contracts Machinery, Energy & Transportation Receivables — trade and other 35 4 Machinery, Energy & Transportation Long-term receivables — trade and other 2 — Machinery, Energy & Transportation Accrued expenses — (1) $ (37) $ (6)
Total notional amounts of derivative instruments	The total notional amounts of the derivative instruments were as follows: Years ended December 31, (Millions of dollars) 2020 2019 Machinery, Energy & Transportation $ 3,553 $ 2,563 Financial Products $ 11,260 $ 8,931
Effect of derivatives designated as hedging instruments on Consolidated Results of Operations	The effect of derivatives designated as hedging instruments on Statement 1 was as follows: Cash Flow Hedges (Millions of dollars) Year ended December 31, 2020 Recognized in Earnings Amount of Classification of Amount of Gains (Losses) Reclassified from AOCI Amount of the line items in Statement 1 Foreign exchange contracts Machinery, Energy & Transportation $ 48 Sales of Machinery, Energy & Transportation $ 2 $ 39,022 Cost of goods sold (55) 29,082 Financial Products (130) Interest expense of Financial Products 32 589 Other income (expense) (164) (44) Interest rate contracts Machinery, Energy & Transportation (11) Interest expense excluding Financial Products (4) 514 Financial Products (23) Interest expense of Financial Products (52) 589 $ (116) $ (241) Year ended December 31, 2019 Recognized in Earnings Amount of Classification of Amount of Gains (Losses) Reclassified from AOCI Amount of the line items in Statement 1 Foreign exchange contracts Machinery, Energy & Transportation $ 34 Sales of Machinery, Energy & Transportation $ 11 $ 50,755 Cost of goods sold (3) 36,630 Financial Products 93 Interest expense of Financial Products 33 754 Other income (expense) 37 (57) Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (4) 421 Financial Products (70) Interest expense of Financial Products (8) 754 $ 57 $ 66 Year ended December 31, 2018 Recognized in Earnings Amount of Classification of Amount of Recognized in Earnings (Ineffective Portion) Foreign exchange contracts Machinery, Energy & Transportation $ (47) Other income (expense) $ (33) $ — Financial Products 165 Other income (expense) 148 — Interest expense of Financial Products 19 — Interest rate contracts Machinery, Energy & Transportation — Interest expense excluding Financial Products (3) — Financial Products (38) Interest expense of Financial Products — — $ 80 $ 131 $ —
Effect of derivatives not designated as hedging instruments on the Consolidated Results of Operations	The effect of derivatives not designated as hedging instruments on Statement 1 was as follows: Years ended December 31, (Millions of dollars) Classification of Gains (Losses) 2020 2019 2018 Foreign exchange contracts Machinery, Energy & Transportation Other income (expense) $ 38 $ 13 $ (54) Financial Products Other income (expense) (112) (37) 19 Commodity contracts Machinery, Energy & Transportation Other income (expense) 11 18 (39) $ (63) $ (6) $ (74)
Effect of net settlement provisions of the master netting agreements on derivative assets	The effect of the net settlement provisions of the master netting agreements on our derivative balances upon an event of default or termination event was as follows: December 31, 2020 Gross Amounts Not Offset in the Statement of Financial Position (Millions of dollars) Gross Amount of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Net Amount of Assets Presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount of Assets Derivatives Machinery, Energy & Transportation $ 196 $ — $ 196 $ (38) $ — $ 158 Financial Products 85 — 85 (57) — 28 Total $ 281 $ — $ 281 $ (95) $ — $ 186	December 31, 2019 Gross Amounts Not Offset in the Statement of Financial Position (Millions of dollars) Gross Amount of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Net Amount of Assets Presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount of Assets Derivatives Machinery, Energy & Transportation $ 32 $ — $ 32 $ (13) $ — $ 19 Financial Products 84 — 84 (21) — 63 Total $ 116 $ — $ 116 $ (34) $ — $ 82
Effect of net settlement provisions of the master netting agreements on derivative liabilities	December 31, 2020 Gross Amounts Not Offset in the Statement of Financial Position (Millions of dollars) Gross Amount of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amount of Liabilities Presented in the Statement of Financial Position Financial Instruments Cash Collateral Pledged Net Amount of Liabilities Derivatives Machinery, Energy & Transportation $ (38) $ — $ (38) $ 38 $ — $ — Financial Products (260) — (260) 57 — (203) Total $ (298) $ — $ (298) $ 95 $ — $ (203)	December 31, 2019 Gross Amounts Not Offset in the Statement of Financial Position (Millions of dollars) Gross Amount of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amount of Liabilities Presented in the Statement of Financial Position Financial Instruments Cash Collateral Pledged Net Amount of Liabilities Derivatives Machinery, Energy & Transportation $ (21) $ — $ (21) $ 13 $ — $ (8) Financial Products (50) — (50) 21 — (29) Total $ (71) $ — $ (71) $ 34 $ — $ (37)

Other income (expense) (Tables)

Other income (expense) (Tables)	12 Months Ended
Other income (expense) (Tables)	Dec. 31, 2020
Other Income and Expenses [Abstract]
Other income (expense)	Years ended December 31, (Millions of dollars) 2020 2019 2018 Investment and interest income $ 112 $ 202 $ 195 Foreign exchange gains (losses) 1 (193) (67) (201) License fee income 104 121 125 Gains (losses) on securities 37 65 (29) Net periodic pension and OPEB income (cost), excluding service cost (90) (363) (118) Miscellaneous income (loss) (14) (15) (39) Total $ (44) $ (57) $ (67) 1 Includes gains (losses) from foreign exchange derivative contracts. See Note 4 for further details.

Income taxes (Tables)

Income taxes (Tables)	12 Months Ended
Income taxes (Tables)	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Reconciliation of the U.S. federal statutory rate to effective rate	Reconciliation of the U.S. federal statutory rate to effective rate: Years ended December 31, (Millions of dollars) 2020 2019 2018 Taxes at U.S. statutory rate $ 839 21.0 % $ 1,641 21.0 % $ 1,643 21.0 % (Decreases) increases resulting from: Non-U.S. subsidiaries taxed at other than the U.S. rate 285 7.1 % 365 4.7 % 282 3.6 % State and local taxes, net of federal 1 32 0.8 % 59 0.8 % 22 0.3 % Interest and penalties, net of tax 28 0.7 % 34 0.4 % 33 0.4 % U.S. tax incentives (52) (1.3) % (149) (1.9) % (106) (1.3) % Net excess tax benefits from stock-based compensation (49) (1.2) % (41) (0.5) % (56) (0.7) % Prior year tax adjustments (80) (2.0) % — — % — — % Mandatory deemed repatriation of non-U.S. earnings — — % (178) (2.3) % 50 0.7 % U.S. deferred tax rate change — — % — — % (154) (2.0) % Valuation allowances — — % — — % (29) (0.4) % Other—net 3 0.1 % 15 0.2 % 13 0.1 % Provision (benefit) for income taxes $ 1,006 25.2 % $ 1,746 22.4 % $ 1,698 21.7 % 1 Excludes amounts included in valuation allowances, mandatory deemed repatriation of non-U.S. earnings, and net excess tax benefits from stock-based compensation.
Components of profit (loss) before taxes	The components of profit (loss) before taxes were: Years ended December 31, (Millions of dollars) 2020 2019 2018 U.S. $ 590 $ 2,888 $ 2,131 Non-U.S. 3,405 4,924 5,691 $ 3,995 $ 7,812 $ 7,822
Components of the provision (benefit) for income taxes	The components of the provision (benefit) for income taxes were: Years ended December 31, (Millions of dollars) 2020 2019 2018 Current tax provision (benefit): U.S. 1 $ 18 $ 405 $ 179 Non-U.S. 1,031 1,261 1,291 State (U.S.) 31 52 8 1,080 1,718 1,478 Deferred tax provision (benefit): U.S. 1 (44) 17 298 Non-U.S. (34) (7) 4 State (U.S.) 4 18 (82) (74) 28 220 Total provision (benefit) for income taxes $ 1,006 $ 1,746 $ 1,698 1 Includes U.S. taxes related to non-U.S. earnings. We account for U.S. taxes on global intangible low-taxed income as a period cost.
Deferred income tax assets and liabilities	The amount of deferred income taxes at December 31, included on the following lines in Statement 3, were as follows: December 31, (Millions of dollars) 2020 2019 Assets: Noncurrent deferred and refundable income taxes $ 1,358 $ 1,324 Liabilities: Other liabilities 418 414 Deferred income taxes—net $ 940 $ 910 The components of deferred tax assets and liabilities were: December 31, (Millions of dollars) 2020 2019 Deferred income tax assets: Tax carryforwards $ 1,346 $ 1,218 Postemployment benefits other than pensions 919 876 Pension 396 445 Warranty reserves 247 263 Research expenditures 193 219 Allowance for credit losses 126 171 Post sale discounts 153 200 Other employee compensation and benefits 186 197 Lease obligations 154 157 Stock-based compensation 81 107 Other—net 317 250 4,118 4,103 Deferred income tax liabilities: Capital and intangible assets, including lease basis differences (1,526) (1,574) Bond discount (117) (122) Translation (147) (194) Other outside basis differences (284) (257) Undistributed profits of non-U.S. subsidiaries (95) (118) (2,169) (2,265) Valuation allowance for deferred tax assets (1,009) (928) Deferred income taxes—net $ 940 $ 910
Summary of net operating loss carryforwards	At December 31, 2020, amounts and expiration dates of net operating loss and interest carryforwards in various non-U.S. taxing jurisdictions were: (Millions of dollars) 2021 2022 2023 2024-2026 2027-2041 Unlimited Total $ 45 $ 81 $ 10 $ 79 $ 819 $ 3,929 $ 4,963
Reconciliation of unrecognized tax benefits	Reconciliation of unrecognized tax benefits: 1 Years ended December 31, (Millions of dollars) 2020 2019 2018 Beginning balance $ 1,778 $ 1,796 $ 1,286 Additions for tax positions related to current year 44 72 61 Additions for tax positions related to prior years 46 112 461 Reductions for tax positions related to prior years (12) (201) (5) Reductions for settlements 2 (94) — (6) Reductions for expiration of statute of limitations (3) (1) (1) Ending balance $ 1,759 $ 1,778 $ 1,796 Amount that, if recognized, would impact the effective tax rate $ 1,657 $ 1,616 $ 1,716 1 Foreign currency impacts are included within each line as applicable. 2 Includes cash payment or other reduction of assets to settle liability.

Cat Financial Financing Activ_2

Cat Financial Financing Activities (Tables)	12 Months Ended
Cat Financial Financing Activities (Tables)	Dec. 31, 2020
Receivables [Abstract]
Contractual maturities of outstanding wholesale inventory receivables	Contractual maturities of outstanding wholesale inventory receivables: (Millions of dollars) December 31, 2020 Amounts Due In Wholesale Wholesale Total 2021 $ 516 $ 52 $ 568 2022 241 37 278 2023 141 27 168 2024 62 20 82 2025 23 13 36 Thereafter 10 4 14 Total 993 153 1,146 Guaranteed residual value 1 51 36 87 Unguaranteed residual value 2 33 35 Less: Unearned income (11) (24) (35) Total $ 1,035 $ 198 $ 1,233 1 For Wholesale loans, represents residual value on failed sale leasebacks.
Contractual maturities of outstanding finance receivables	Finance receivables are receivables of Cat Financial and are reported in Statement 3 net of an allowance for credit losses. Contractual maturities of outstanding finance receivables: (Millions of dollars) December 31, 2020 Amounts Due In Retail Retail Total 2021 $ 6,305 $ 3,222 $ 9,527 2022 3,617 2,032 5,649 2023 2,621 1,107 3,728 2024 1,378 467 1,845 2025 464 171 635 Thereafter 384 56 440 Total 14,769 7,055 21,824 Guaranteed residual value 1 44 412 456 Unguaranteed residual value 2 771 773 Less: Unearned income (280) (613) (893) Total $ 14,535 $ 7,625 $ 22,160 1 For Retail loans, represents residual value on failed sale leasebacks.
Allowance for credit losses and recorded investment in finance receivables	An analysis of the allowance for credit losses was as follows: (Millions of dollars) December 31, 2020 Customer Dealer Total Allowance for Credit Losses: Balance at beginning of year $ 375 $ 45 $ 420 Adjustment to adopt new accounting guidance 1 12 — 12 Receivables written off (263) — (263) Recoveries on receivables previously written off 41 — 41 Provision for credit losses 262 (1) 261 Other 4 — 4 Balance at end of year $ 431 $ 44 $ 475 Individually evaluated $ 187 $ 39 $ 226 Collectively evaluated 244 5 249 Ending Balance $ 431 $ 44 $ 475 Finance Receivables: Individually evaluated $ 594 $ 78 $ 672 Collectively evaluated 18,644 2,844 21,488 Ending Balance $ 19,238 $ 2,922 $ 22,160 1 See Note 1J regarding new accounting guidance related to credit losses. (Millions of dollars) December 31, 2019 Customer Dealer Total Allowance for Credit Losses: Balance at beginning of year $ 486 $ 21 $ 507 Receivables written off (281) — (281) Recoveries on receivables previously written off 44 — 44 Provision for credit losses 138 24 162 Other (12) — (12) Balance at end of year $ 375 $ 45 $ 420 Individually evaluated $ 178 $ 39 $ 217 Collectively evaluated 197 6 203 Ending Balance $ 375 $ 45 $ 420 Finance Receivables: Individually evaluated $ 594 $ 78 $ 672 Collectively evaluated 18,093 3,632 21,725 Ending Balance $ 18,687 $ 3,710 $ 22,397
Amortized cost of finance receivables in the customer portfolio segment by origination year	The table below summarizes the aging category of Cat Financial's amortized cost of finance receivables in the Customer portfolio segment by origination year: (Millions of dollars) December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Total Finance Receivables North America Current $ 3,777 $ 2,423 $ 1,344 $ 522 $ 212 $ 27 $ 89 $ 8,394 31-60 days past due 52 49 33 16 7 2 — 159 61-90 days past due 22 25 16 9 2 1 — 75 91+ days past due 14 35 31 20 9 4 2 115 EAME Current 1,605 931 501 203 60 18 — 3,318 31-60 days past due 5 15 3 2 — — — 25 61-90 days past due 1 1 2 1 — — — 5 91+ days past due 7 7 12 4 39 43 — 112 Asia/Pacific Current 1,375 745 321 61 10 3 — 2,515 31-60 days past due 12 22 13 6 — — — 53 61-90 days past due 7 11 7 1 — — — 26 91+ days past due 4 10 9 3 — — — 26 Mining Current 490 571 287 152 92 151 137 1,880 31-60 days past due 5 — 5 1 — — — 11 61-90 days past due — — — — — — — — 91+ days past due — 11 8 2 — — 1 22 Latin America Current 561 348 151 48 13 34 — 1,155 31-60 days past due 3 6 4 3 — — — 16 61-90 days past due 1 7 6 3 2 — — 19 91+ days past due 2 14 11 24 5 4 — 60 Caterpillar Power Finance Current 217 172 111 273 99 117 119 1,108 31-60 days past due — — 6 — — — — 6 61-90 days past due — — — — — 9 — 9 91+ days past due 2 — 20 3 25 79 — 129 Total Customer $ 8,162 $ 5,403 $ 2,901 $ 1,357 $ 575 $ 492 $ 348 $ 19,238
Aging related to loans and finance leases	The table below summarizes Cat Financial's recorded investment in finance receivables by aging category. (Millions of dollars) December 31, 2019 31-60 Days Past Due 61-90 Days Past Due 91+ Total Past Current Total Customer North America $ 72 $ 23 $ 55 $ 150 $ 8,002 $ 8,152 EAME 30 31 141 202 2,882 3,084 Asia/Pacific 40 14 29 83 2,181 2,264 Mining 5 — 19 24 2,266 2,290 Latin America 41 23 80 144 1,089 1,233 Caterpillar Power Finance 10 10 225 245 1,419 1,664 Dealer North America — — — — 2,136 2,136 EAME — — — — 342 342 Asia/Pacific — — — — 437 437 Mining — — — — 4 4 Latin America — — 78 78 712 790 Caterpillar Power Finance — — — — 1 1 Total $ 198 $ 101 $ 627 $ 926 $ 21,471 $ 22,397
Impaired finance receivables	In Cat Financial’s Customer portfolio segment, impaired finance receivables and the related unpaid principal balances and allowance were as follows: December 31, 2019 (Millions of dollars) Recorded Unpaid Related Impaired Finance Receivables With No Allowance Recorded North America $ 6 $ 6 $ — EAME — — — Asia/Pacific — — — Mining 22 22 — Latin America 8 8 — Caterpillar Power Finance 58 58 — Total $ 94 $ 94 $ — Impaired Finance Receivables With An Allowance Recorded North America $ 30 $ 30 $ 11 EAME 61 61 29 Asia/Pacific 8 8 2 Mining 37 36 9 Latin America 58 58 20 Caterpillar Power Finance 306 319 107 Total $ 500 $ 512 $ 178 Total Impaired Finance Receivables North America $ 36 $ 36 $ 11 EAME 61 61 29 Asia/Pacific 8 8 2 Mining 59 58 9 Latin America 66 66 20 Caterpillar Power Finance 364 377 107 Total $ 594 $ 606 $ 178 Years ended December 31, 2019 2018 (Millions of dollars) Average Interest Average Interest Impaired Finance Receivables With No Allowance Recorded North America $ 9 $ — $ 16 $ 1 EAME 6 — 14 — Asia/Pacific — — 27 3 Mining 27 1 57 2 Latin America 21 1 38 2 Caterpillar Power Finance 54 3 130 7 Total $ 117 $ 5 $ 282 $ 15 Impaired Finance Receivables With An Allowance Recorded North America $ 34 $ 2 $ 49 $ 2 EAME 81 2 53 2 Asia/Pacific 9 1 4 — Mining 48 2 46 3 Latin America 72 5 67 3 Caterpillar Power Finance 396 11 378 12 Total $ 640 $ 23 $ 597 $ 22 Total Impaired Finance Receivables North America $ 43 $ 2 $ 65 $ 3 EAME 87 2 67 2 Asia/Pacific 9 1 31 3 Mining 75 3 103 5 Latin America 93 6 105 5 Caterpillar Power Finance 450 14 508 19 Total $ 757 $ 28 $ 879 $ 37
Investment in loans and finance leases on non-accrual status	In Cat Financial's Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income were as follows: December 31, 2020 Amortized Cost (Millions of dollars) Non-accrual Non-accrual 91+ Still North America $ 86 $ 1 $ 34 EAME 113 1 1 Asia/Pacific 13 — 13 Mining 21 1 — Latin America 63 — 1 Caterpillar Power Finance 170 17 — Total $ 466 $ 20 $ 49 There was $12 million of interest income recognized during the year ended December 31, 2020, for customer finance receivables on non-accrual status. (Millions of dollars) December 31, 2019 Recorded Investment Non-accrual Finance Receivables 91+ Still Accruing North America $ 44 $ 15 EAME 165 4 Asia/Pacific 21 8 Mining 47 — Latin America 89 2 Caterpillar Power Finance 361 — Total $ 727 $ 29
TDR tables	Cat Financial’s finance receivables in the Customer portfolio segment modified as TDRs were as follows: (Millions of dollars) Year ended December 31, 2020 Number of Contracts Pre-TDR Post-TDR North America 40 $ 13 $ 13 EAME 4 — — Asia/Pacific 1 183 12 12 Mining 2 63 35 35 Latin America 3 77 45 45 Caterpillar Power Finance 22 115 115 Total 389 $ 220 $ 220 Year ended December 31, 2019 Number Pre-TDR Post-TDR North America 15 $ 11 $ 11 EAME 19 17 17 Asia/Pacific — — — Mining 2 8 8 Latin America 5 5 3 Caterpillar Power Finance 21 168 165 Total 62 $ 209 $ 204 Year ended December 31, 2018 Number Pre-TDR Post-TDR North America 38 $ 21 $ 21 EAME — — — Asia/Pacific — — — Mining 1 29 29 Latin America 1 3 3 Caterpillar Power Finance 12 133 99 Total 52 $ 186 $ 152 1 During the year ended December 31, 2020, 183 contracts with a pre-TDR and post-TDR amortized cost of $12 million were related to seven customers. 2 During the year ended December 31, 2020, 63 contracts with a pre-TDR and post-TDR amortized cost of $35 million were related to five customers. 3 During the year ended December 31, 2020, 77 contracts with a pre-TDR and post-TDR amortized cost of $45 million were related to ten customers. TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date, were as follows: (Millions of dollars) Year ended December 31, 2020 Year ended December 31, 2019 Year ended December 31, 2018 Number Post-TDR Number Post-TDR Number Post-TDR North America 4 $ 8 11 $ 5 10 $ 10 EAME 2 10 — — — — Asia/Pacific 27 2 — — — — Mining 21 10 — — — — Latin America 4 1 — — 3 1 Caterpillar Power Finance 2 18 1 10 3 33 Total 60 $ 49 12 $ 15 16 $ 44

Inventories (Tables)

Inventories (Tables)	12 Months Ended
Inventories (Tables)	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventories	Inventories (principally using the LIFO method) are comprised of the following: December 31, (Millions of dollars) 2020 2019 Raw materials $ 4,021 $ 4,263 Work-in-process 1,052 1,147 Finished goods 6,054 5,598 Supplies 275 258 Total inventories $ 11,402 $ 11,266

Property, plant and equipment (

Property, plant and equipment (Tables)	12 Months Ended
Property, plant and equipment (Tables)	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Property, plant and equipment	December 31, (Millions of dollars) Useful 2020 2019 Land — $ 681 $ 664 Buildings and land improvements 20-45 7,091 6,710 Machinery, equipment and other 2-10 13,004 13,287 Software 3-7 1,679 1,728 Equipment leased to others 1-7 6,077 6,208 Construction-in-process — 739 620 Total property, plant and equipment, at cost 29,271 29,217 Less: Accumulated depreciation (16,870) (16,313) Property, plant and equipment–net $ 12,401 $ 12,904

Intangible assets and goodwill

Intangible assets and goodwill (Tables)	12 Months Ended
Intangible assets and goodwill (Tables)	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	Intangible assets were comprised of the following: December 31, 2020 (Millions of dollars) Weighted Gross Accumulated Net Customer relationships 15 $ 2,493 $ (1,600) $ 893 Intellectual property 12 1,439 (1,073) 366 Other 14 164 (115) 49 Total finite-lived intangible assets 14 $ 4,096 $ (2,788) $ 1,308 December 31, 2019 Weighted Gross Accumulated Net Customer relationships 15 $ 2,450 $ (1,406) $ 1,044 Intellectual property 12 1,510 (1,055) 455 Other 13 191 (125) 66 Total finite-lived intangible assets 14 $ 4,151 $ (2,586) $ 1,565
Expected amortization expense related to intangible assets	As of December 31, 2020, amortization expense related to intangible assets is expected to be: (Millions of dollars) 2021 2022 2023 2024 2025 Thereafter $300 $282 $223 $165 $155 $183
Goodwill	The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2020 and 2019 were as follows: (Millions of dollars) December 31, 2019 Acquisitions Other Adjustments 1 December 31, 2020 Construction Industries Goodwill $ 306 $ — $ 14 $ 320 Impairments (22) — — (22) Net goodwill 284 — 14 298 Resource Industries Goodwill 4,156 — 97 4,253 Impairments (1,175) — — (1,175) Net goodwill 2,981 — 97 3,078 Energy & Transportation Goodwill 2,875 41 43 2,959 All Other 2 Goodwill 56 — 3 59 Consolidated total Goodwill 7,393 41 157 7,591 Impairments (1,197) — — (1,197) Net goodwill $ 6,196 $ 41 $ 157 $ 6,394 December 31, 2018 Acquisitions Other Adjustments 1 December 31, 2019 Construction Industries Goodwill $ 304 $ — $ 2 $ 306 Impairments (22) — — (22) Net goodwill 282 — 2 284 Resource Industries Goodwill 4,172 — (16) 4,156 Impairments (1,175) — — (1,175) Net goodwill 2,997 — (16) 2,981 Energy & Transportation Goodwill 2,882 — (7) 2,875 All Other 2 Goodwill 56 — — 56 Consolidated total Goodwill 7,414 — (21) 7,393 Impairments (1,197) — — (1,197) Net goodwill $ 6,217 $ — $ (21) $ 6,196 1 Other adjustments are comprised primarily of foreign currency translation. 2 Includes All Other operating segment (See Note 23).

Investments in debt and equit_2

Investments in debt and equity securities (Tables)	12 Months Ended
Investments in debt and equity securities (Tables)	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Schedule of available-for-sale securities	The cost basis and fair value of debt securities with unrealized gains and losses included in equity (Accumulated other comprehensive income (loss) in Statement 3) were as follows: December 31, 2020 December 31, 2019 (Millions of dollars) Cost Unrealized Fair Cost Unrealized Fair Government debt U.S. treasury bonds $ 10 $ — $ 10 $ 9 $ — $ 9 Other U.S. and non-U.S. government bonds 58 1 59 54 — 54 Corporate bonds Corporate bonds 962 50 1,012 836 20 856 Asset-backed securities 156 3 159 62 — 62 Mortgage-backed debt securities U.S. governmental agency 362 12 374 327 4 331 Residential 5 — 5 6 — 6 Commercial 60 4 64 46 1 47 Total debt securities $ 1,613 $ 70 $ 1,683 $ 1,340 $ 25 $ 1,365
Cost basis and fair value of the available-for-sale debt securities by contractual maturity	The cost basis and fair value of the available-for-sale debt securities at December 31, 2020, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations. December 31, 2020 (Millions of dollars) Cost Basis Fair Value Due in one year or less $ 135 $ 136 Due after one year through five years 702 737 Due after five years through ten years 279 295 Due after ten years 70 72 U.S. governmental agency mortgage-backed securities 362 374 Residential mortgage-backed securities 5 5 Commercial mortgage-backed securities 60 64 Total debt securities – available-for-sale $ 1,613 $ 1,683
Schedule of proceeds and gross gain and losses from the sale of available-for-sale securities	Sales of available-for-sale securities: Years Ended December 31, (Millions of dollars) 2020 2019 2018 Proceeds from the sale of available-for-sale securities $ 290 $ 260 $ 247 Gross gains from the sale of available-for-sale securities $ 2 $ 1 $ — Gross losses from the sale of available-for-sale securities $ 1 $ 1 $ —

Postemployment benefit plans (T

Postemployment benefit plans (Tables)	12 Months Ended
Postemployment benefit plans (Tables)	Dec. 31, 2020
Retirement Benefits [Abstract]
Schedule of assumptions used to determine benefit obligation	U.S. Pension Benefits Non-U.S. Other Postretirement 2020 2019 2020 2019 2020 2019 Weighted-average assumptions used to determine benefit obligation, end of year: Discount rate 2.4 % 3.2 % 1.4 % 1.9 % 2.3 % 3.2 % Rate of compensation increase 1 — % — % 2.0 % 2.0 % 4.0 % 4.0 % 1 Effective December 31, 2019, all U.S. pension benefits were frozen, and accordingly this assumption is no longer applicable.
Schedule of changes in projected benefit obligations	U.S. Pension Benefits Non-U.S. Other Postretirement (Millions of dollars) 2020 2019 2020 2019 2020 2019 Accumulated benefit obligation, end of year $ 19,177 $ 17,773 $ 4,680 $ 4,502 Change in benefit obligation: Benefit obligation, beginning of year $ 17,773 $ 15,953 $ 4,666 $ 4,215 $ 3,960 $ 3,649 Service cost 1 — 115 55 80 94 80 Interest cost 483 600 68 94 103 136 Plan amendments — — 6 (5) (8) 8 Actuarial losses (gains) 2 1,922 2,090 258 424 192 350 Foreign currency exchange rates — — 213 95 (25) (1) Participant contributions — — 4 7 44 46 Benefits paid - gross (997) (982) (159) (237) (317) (316) Less: federal subsidy on benefits paid — — — — 8 9 Curtailments, settlements and termination benefits (4) (3) (264) (7) — (1) Benefit obligation, end of year $ 19,177 $ 17,773 $ 4,847 $ 4,666 $ 4,051 $ 3,960 Change in plan assets: Fair value of plan assets, beginning of year $ 15,994 $ 12,697 $ 4,525 $ 4,025 $ 255 $ 328 Actual return on plan assets 2,552 2,740 385 482 23 71 Foreign currency exchange rates — — 164 105 — — Company contributions 44 1,542 76 143 142 127 Participant contributions — — 4 7 44 46 Benefits paid (997) (982) (159) (237) (317) (316) Settlements and termination benefits (4) (3) (264) — — (1) Fair value of plan assets, end of year $ 17,589 $ 15,994 $ 4,731 $ 4,525 $ 147 $ 255 Over (under) funded status $ (1,588) $ (1,779) $ (116) $ (141) $ (3,904) $ (3,705) Components of net amount recognized in financial position: Other assets (non-current asset) $ 409 $ 219 $ 556 $ 485 $ — $ — Accrued wages, salaries and employee benefits (current liability) (44) (42) (25) (19) (186) (161) Liability for postemployment benefits (non-current liability) 3 (1,953) (1,956) (647) (607) (3,718) (3,544) Net liability recognized $ (1,588) $ (1,779) $ (116) $ (141) $ (3,904) $ (3,705) Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of: Prior service cost (credit) $ — $ — $ 24 $ 16 $ (46) $ (78) 1 Effective December 31, 2019, all U.S. pension benefits were frozen, and accordingly there is no longer any service cost. 2 For 2020, Actuarial loss (gain) impacting the benefit obligation was primarily due to lower discount rates at the end of 2020 compared to the end of 2019. For 2019, Actuarial loss (gain) impacting the benefit obligation was primarily due to lower discount rates at the end of 2019 compared to the end of 2018. 3 The Liability for postemployment benefits reported in Statement 3 includes our liability for other postemployment benefits and our liability for non-qualified deferred compensation plans. For 2020, these liabilities were $63 million and $491 million, respectively. For 2019, these liabilities were $60 million and $432 million, respectively.
Change in plan assets	U.S. Pension Benefits Non-U.S. Other Postretirement (Millions of dollars) 2020 2019 2020 2019 2020 2019 Accumulated benefit obligation, end of year $ 19,177 $ 17,773 $ 4,680 $ 4,502 Change in benefit obligation: Benefit obligation, beginning of year $ 17,773 $ 15,953 $ 4,666 $ 4,215 $ 3,960 $ 3,649 Service cost 1 — 115 55 80 94 80 Interest cost 483 600 68 94 103 136 Plan amendments — — 6 (5) (8) 8 Actuarial losses (gains) 2 1,922 2,090 258 424 192 350 Foreign currency exchange rates — — 213 95 (25) (1) Participant contributions — — 4 7 44 46 Benefits paid - gross (997) (982) (159) (237) (317) (316) Less: federal subsidy on benefits paid — — — — 8 9 Curtailments, settlements and termination benefits (4) (3) (264) (7) — (1) Benefit obligation, end of year $ 19,177 $ 17,773 $ 4,847 $ 4,666 $ 4,051 $ 3,960 Change in plan assets: Fair value of plan assets, beginning of year $ 15,994 $ 12,697 $ 4,525 $ 4,025 $ 255 $ 328 Actual return on plan assets 2,552 2,740 385 482 23 71 Foreign currency exchange rates — — 164 105 — — Company contributions 44 1,542 76 143 142 127 Participant contributions — — 4 7 44 46 Benefits paid (997) (982) (159) (237) (317) (316) Settlements and termination benefits (4) (3) (264) — — (1) Fair value of plan assets, end of year $ 17,589 $ 15,994 $ 4,731 $ 4,525 $ 147 $ 255 Over (under) funded status $ (1,588) $ (1,779) $ (116) $ (141) $ (3,904) $ (3,705) Components of net amount recognized in financial position: Other assets (non-current asset) $ 409 $ 219 $ 556 $ 485 $ — $ — Accrued wages, salaries and employee benefits (current liability) (44) (42) (25) (19) (186) (161) Liability for postemployment benefits (non-current liability) 3 (1,953) (1,956) (647) (607) (3,718) (3,544) Net liability recognized $ (1,588) $ (1,779) $ (116) $ (141) $ (3,904) $ (3,705) Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of: Prior service cost (credit) $ — $ — $ 24 $ 16 $ (46) $ (78) 1 Effective December 31, 2019, all U.S. pension benefits were frozen, and accordingly there is no longer any service cost. 2 For 2020, Actuarial loss (gain) impacting the benefit obligation was primarily due to lower discount rates at the end of 2020 compared to the end of 2019. For 2019, Actuarial loss (gain) impacting the benefit obligation was primarily due to lower discount rates at the end of 2019 compared to the end of 2018. 3 The Liability for postemployment benefits reported in Statement 3 includes our liability for other postemployment benefits and our liability for non-qualified deferred compensation plans. For 2020, these liabilities were $63 million and $491 million, respectively. For 2019, these liabilities were $60 million and $432 million, respectively.
Defined benefit plan funded status, components of net amount recognized in financial position and accumulated other comprehensive income	U.S. Pension Benefits Non-U.S. Other Postretirement (Millions of dollars) 2020 2019 2020 2019 2020 2019 Accumulated benefit obligation, end of year $ 19,177 $ 17,773 $ 4,680 $ 4,502 Change in benefit obligation: Benefit obligation, beginning of year $ 17,773 $ 15,953 $ 4,666 $ 4,215 $ 3,960 $ 3,649 Service cost 1 — 115 55 80 94 80 Interest cost 483 600 68 94 103 136 Plan amendments — — 6 (5) (8) 8 Actuarial losses (gains) 2 1,922 2,090 258 424 192 350 Foreign currency exchange rates — — 213 95 (25) (1) Participant contributions — — 4 7 44 46 Benefits paid - gross (997) (982) (159) (237) (317) (316) Less: federal subsidy on benefits paid — — — — 8 9 Curtailments, settlements and termination benefits (4) (3) (264) (7) — (1) Benefit obligation, end of year $ 19,177 $ 17,773 $ 4,847 $ 4,666 $ 4,051 $ 3,960 Change in plan assets: Fair value of plan assets, beginning of year $ 15,994 $ 12,697 $ 4,525 $ 4,025 $ 255 $ 328 Actual return on plan assets 2,552 2,740 385 482 23 71 Foreign currency exchange rates — — 164 105 — — Company contributions 44 1,542 76 143 142 127 Participant contributions — — 4 7 44 46 Benefits paid (997) (982) (159) (237) (317) (316) Settlements and termination benefits (4) (3) (264) — — (1) Fair value of plan assets, end of year $ 17,589 $ 15,994 $ 4,731 $ 4,525 $ 147 $ 255 Over (under) funded status $ (1,588) $ (1,779) $ (116) $ (141) $ (3,904) $ (3,705) Components of net amount recognized in financial position: Other assets (non-current asset) $ 409 $ 219 $ 556 $ 485 $ — $ — Accrued wages, salaries and employee benefits (current liability) (44) (42) (25) (19) (186) (161) Liability for postemployment benefits (non-current liability) 3 (1,953) (1,956) (647) (607) (3,718) (3,544) Net liability recognized $ (1,588) $ (1,779) $ (116) $ (141) $ (3,904) $ (3,705) Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of: Prior service cost (credit) $ — $ — $ 24 $ 16 $ (46) $ (78) 1 Effective December 31, 2019, all U.S. pension benefits were frozen, and accordingly there is no longer any service cost. 2 For 2020, Actuarial loss (gain) impacting the benefit obligation was primarily due to lower discount rates at the end of 2020 compared to the end of 2019. For 2019, Actuarial loss (gain) impacting the benefit obligation was primarily due to lower discount rates at the end of 2019 compared to the end of 2018. 3 The Liability for postemployment benefits reported in Statement 3 includes our liability for other postemployment benefits and our liability for non-qualified deferred compensation plans. For 2020, these liabilities were $63 million and $491 million, respectively. For 2019, these liabilities were $60 million and $432 million, respectively.
Schedule of pension plans with projected benefit obligation in excess of plan assets for all U.S and Non U.S Pension benefits	U.S. Pension Benefits Non-U.S. (Millions of dollars) 2020 2019 2020 2019 Pension plans with projected benefit obligation in excess of plan assets: Projected benefit obligation $ 15,300 $ 14,037 $ 2,171 $ 2,010 Fair value of plan assets $ 13,302 $ 12,039 $ 1,499 $ 1,384 Pension plans with accumulated benefit obligation in excess of plan assets: Accumulated benefit obligation $ 15,300 $ 14,037 $ 1,988 $ 1,799 Fair value of plan assets $ 13,302 $ 12,039 $ 1,425 $ 1,269 The accumulated postretirement benefit obligation exceeds plan assets for all of our other postretirement benefit plans for all years presented.
Schedule of pension plans with accumulated benefit obligation in excess of plan assets for all U.S and Non U.S Pension benefits	U.S. Pension Benefits Non-U.S. (Millions of dollars) 2020 2019 2020 2019 Pension plans with projected benefit obligation in excess of plan assets: Projected benefit obligation $ 15,300 $ 14,037 $ 2,171 $ 2,010 Fair value of plan assets $ 13,302 $ 12,039 $ 1,499 $ 1,384 Pension plans with accumulated benefit obligation in excess of plan assets: Accumulated benefit obligation $ 15,300 $ 14,037 $ 1,988 $ 1,799 Fair value of plan assets $ 13,302 $ 12,039 $ 1,425 $ 1,269 The accumulated postretirement benefit obligation exceeds plan assets for all of our other postretirement benefit plans for all years presented.
Components of net periodic benefit cost, other changes in plan assets and benefits obligations recognized in other comprehensive income and weighted-average assumptions used to determine net cost	U.S. Pension Benefits Non-U.S. Pension Benefits Other Postretirement Benefits (Millions of dollars) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Components of net periodic benefit cost: Service cost 1 $ — $ 115 $ 125 $ 55 $ 80 $ 89 $ 94 $ 80 $ 83 Interest cost 483 600 534 68 94 96 103 136 125 Expected return on plan assets (791) (721) (808) (135) (148) (221) (12) (18) (32) Curtailments, settlements and termination benefits (1) (1) — 30 (7) (33) — — (2) Amortization of prior service cost (credit) — — — — — — (38) (40) (36) Actuarial loss (gain) 2 162 72 534 32 90 111 189 306 (150) Net Periodic benefit cost (benefit) 3 $ (147) $ 65 $ 385 $ 50 $ 109 $ 42 $ 336 $ 464 $ (12) Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax): Current year prior service cost (credit) $ — $ — $ — $ 8 $ (4) $ 20 $ (7) $ 8 $ (20) Amortization of prior service (cost) credit — — — — — — 38 40 36 Total recognized in other comprehensive income — — — 8 (4) 20 31 48 16 Total recognized in net periodic cost and other comprehensive income $ (147) $ 65 $ 385 $ 58 $ 105 $ 62 $ 367 $ 512 $ 4 Weighted-average assumptions used to determine net periodic benefit cost: Discount rate used to measure service cost 1 — % 4.3 % 3.7 % 1.5 % 2.5 % 2.3 % 3.2 % 4.1 % 3.5 % Discount rate used to measure interest cost 2.8 % 3.9 % 3.2 % 1.7 % 2.3 % 2.2 % 2.8 % 3.9 % 3.2 % Expected rate of return on plan assets 4 5.1 % 5.9 % 6.3 % 3.3 % 3.8 % 5.2 % 7.0 % 7.2 % 7.5 % Rate of compensation increase 1 — % 4.0 % 4.0 % 2.0 % 3.0 % 4.0 % 4.0 % 4.1 % 4.0 % 1 Effective December 31, 2019, all U.S. pension benefits were frozen, and accordingly there is no longer any service cost and certain assumptions are no longer applicable. 2 Actuarial loss (gain) represents the effects of actual results differing from our assumptions and the effects of changing assumptions. We recognize actuarial loss (gain) immediately through earnings upon the annual remeasurement in the fourth quarter, or on an interim basis as triggering events warrant remeasurement. 3 The service cost component is included in Operating costs and all other components are included in Other income (expense) in Statement 1. 4 The weighted-average rates for 2021 are 4.2 percent and 2.9 percent for U.S. and non-U.S. pension plans, respectively.
Schedule of expected contributions, expected benefit payments and gross prescription drug subsidy receipts	nformation about expected contributions and benefit payments for pension and other postretirement benefit plans: (Millions of dollars) 2021 Expected employer contributions: U.S. Pension Benefits $ 45 Non-U.S. Pension Benefits $ 90 Other Postretirement Benefits $ 175 Expected benefit payments: 2021 2022 2023 2024 2025 2026- Total U.S. Pension Benefits $ 1,040 $ 1,020 $ 1,020 $ 1,020 $ 1,020 $ 4,995 $ 10,115 Non-U.S. Pension Benefits $ 360 $ 180 $ 185 $ 190 $ 195 $ 1,055 $ 2,165 Other Postretirement Benefits $ 280 $ 275 $ 270 $ 265 $ 260 $ 1,270 $ 2,620 Expected Medicare Part D subsidy: $ 8 $ 8 $ 8 $ 7 $ 7 $ 30 $ 68
Fair value of pension and other postretirement benefit plan assets, by category	The fair value of the pension and other postretirement benefit plan assets by category is summarized below: December 31, 2020 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value U.S. Pension Equity securities: U.S. equities $ 2,292 $ 5 $ 28 $ 133 $ 2,458 Non-U.S. equities 1,838 — 1 — 1,839 Fixed income securities: U.S. corporate bonds — 7,395 53 119 7,567 Non-U.S. corporate bonds — 1,372 — — 1,372 U.S. government bonds — 3,618 — — 3,618 U.S. governmental agency mortgage-backed securities — 27 — — 27 Non-U.S. government bonds — 133 — — 133 Real estate — — 9 — 9 Cash, short-term instruments and other 363 22 — 181 566 Total U.S. pension assets $ 4,493 $ 12,572 $ 91 $ 433 $ 17,589 December 31, 2019 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value U.S. Pension Equity securities: U.S. equities $ 2,578 $ — $ 23 $ 133 $ 2,734 Non-U.S. equities 2,068 — — — 2,068 Fixed income securities: U.S. corporate bonds — 6,577 57 — 6,634 Non-U.S. corporate bonds — 1,414 — — 1,414 U.S. government bonds — 2,220 — — 2,220 U.S. governmental agency mortgage-backed securities — 63 — — 63 Non-U.S. government bonds — 96 — — 96 Real estate — — 10 — 10 Cash, short-term instruments and other 230 10 — 515 755 Total U.S. pension assets $ 4,876 $ 10,380 $ 90 $ 648 $ 15,994 December 31, 2020 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value Non-U.S. Pension Equity securities: U.S. equities $ 97 $ — $ — $ — $ 97 Non-U.S. equities 368 33 — 50 451 Global equities 1 29 17 — 49 95 Fixed income securities: U.S. corporate bonds — 314 — — 314 Non-U.S. corporate bonds — 987 — — 987 U.S. government bonds — 2 — — 2 Non-U.S. government bonds — 1,743 — — 1,743 Global fixed income 1 — 131 — 325 456 Real estate — 239 — — 239 Cash, short-term instruments and other 2 71 276 — — 347 Total non-U.S. pension assets $ 565 $ 3,742 $ — $ 424 $ 4,731 December 31, 2019 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value Non-U.S. Pension Equity securities: U.S. equities $ 58 $ — $ — $ — $ 58 Non-U.S. equities 346 29 — 65 440 Global equities 1 26 16 — 111 153 Fixed income securities: U.S. corporate bonds — 253 — — 253 Non-U.S. corporate bonds — 808 — 7 815 U.S. government bonds — 65 — — 65 Non-U.S. government bonds — 1,952 — — 1,952 Global fixed income 1 — 182 — 208 390 Real estate — 211 — — 211 Cash, short-term instruments and other 2 68 120 — — 188 Total non-U.S. pension assets $ 498 $ 3,636 $ — $ 391 $ 4,525 1 Includes funds that invest in both U.S. and non-U.S. securities. 2 Includes funds that invest in multiple asset classes, hedge funds and other. December 31, 2020 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value Other Postretirement Benefits Equity securities: U.S. equities $ 88 $ — $ — $ — $ 88 Non-U.S. equities 21 — — — 21 Fixed income securities: U.S. corporate bonds — 11 — 1 12 Non-U.S. corporate bonds — 2 — — 2 U.S. government bonds — 3 — — 3 U.S. governmental agency mortgage-backed securities — 6 — — 6 Non-U.S. government bonds — 3 — — 3 Cash, short-term instruments and other — 2 — 10 12 Total other postretirement benefit assets $ 109 $ 27 $ — $ 11 $ 147 December 31, 2019 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets at Fair Value Other Postretirement Benefits Equity securities: U.S. equities $ 119 $ — $ — $ — $ 119 Non-U.S. equities 56 — — — 56 Fixed income securities: U.S. corporate bonds — 33 — — 33 Non-U.S. corporate bonds — 6 — — 6 U.S. government bonds — 9 — — 9 U.S. governmental agency mortgage-backed securities — 16 — — 16 Non-U.S. government bonds — 3 — — 3 Cash, short-term instruments and other 2 1 — 10 13 Total other postretirement benefit assets $ 177 $ 68 $ — $ 10 $ 255
Roll forward of assets measured at fair value using level 3 inputs	Below are roll-forwards of assets measured at fair value using Level 3 inputs for the years ended December 31, 2020 and 2019. We valued these instruments using pricing models that, in management’s judgment, reflect the assumptions a market participant would use. (Millions of dollars) Equities Fixed Income Real Estate U.S. Pension Balance at December 31, 2018 $ 36 $ 61 $ 10 Unrealized gains (losses) (9) — — Realized gains (losses) 7 — — Purchases, issuances and settlements, net (10) (4) — Transfers in and/or out of Level 3 (1) — — Balance at December 31, 2019 $ 23 $ 57 $ 10 Unrealized gains (losses) — 1 — Realized gains (losses) (11) (6) (1) Purchases, issuances and settlements, net 17 1 — Transfers in and/or out of Level 3 — — — Balance at December 31, 2020 $ 29 $ 53 $ 9
Company costs related to U.S. and non-U.S. defined contribution plans	Total company costs related to U.S. and non-U.S. defined contribution plans were as follows: (Millions of dollars) 2020 2019 2018 U.S. plans $ 384 $ 414 $ 271 Non-U.S. plans 89 83 89 $ 473 $ 497 $ 360

Short-term borrowings (Tables)

Short-term borrowings (Tables)	12 Months Ended
Short-term borrowings (Tables)	Dec. 31, 2020
Short-term Borrowings Disclosure [Abstract]
Short-term borrowings	December 31, (Millions of dollars) 2020 2019 Machinery, Energy & Transportation: Notes payable to banks $ 10 $ 5 10 5 Financial Products: Notes payable to banks 307 605 Commercial paper 1,321 4,168 Demand notes 377 388 2,005 5,161 Total short-term borrowings $ 2,015 $ 5,166 The weighted-average interest rates on short-term borrowings outstanding were: December 31, 2020 2019 Notes payable to banks 3.7 % 5.0 % Commercial paper 0.1 % 1.3 % Demand notes 0.3 % 1.7 %

Long-term debt (Tables)

Long-term debt (Tables)	12 Months Ended
Long-term debt (Tables)	Dec. 31, 2020
Debt Disclosure [Abstract]
Long-term debt	December 31, (Millions of dollars) Effective Yield to Maturity 1 2020 2019 Machinery, Energy & Transportation: Notes—$1,250 million of 3.900% due 2021 2 4.01% $ — $ 1,248 Notes—$759 million of 5.200% due 2041 2 5.27% 752 752 Debentures—$120 million of 9.375% due 2021 9.41% — 120 Debentures—$500 million of 2.600% due 2022 2 2.70% 499 499 Debentures—$82 million of 8.000% due 2023 8.06% 82 82 Debentures—$1,000 million of 3.400% due 2024 3.46% 998 998 Debentures—$193 million of 6.625% due 2028 2 6.68% 192 192 Debentures—$500 million of 2.600% due 2029 2 2.67% 497 497 Debentures—$800 million of 2.600% due 2030 2 2.72% 793 — Debentures—$242 million of 7.300% due 2031 2 7.38% 240 240 Debentures—$307 million of 5.300% due 2035 2 8.64% 223 220 Debentures—$460 million of 6.050% due 2036 2 6.12% 456 456 Debentures—$65 million of 8.250% due 2038 2 8.38% 64 64 Debentures—$160 million of 6.950% due 2042 2 7.02% 158 158 Debentures—$1,722 million of 3.803% due 2042 2 6.39% 1,296 1,277 Debentures—$500 million of 4.300% due 2044 4.39% 493 493 Debentures—$1,000 million of 3.250% due 2049 2 3.34% 983 982 Debentures—$1,200 million of 3.250% due 2050 2 3.32% 1,185 — Debentures—$500 million of 4.750% due 2064 4.81% 494 494 Debentures—$246 million of 7.375% due 2097 2 7.51% 241 241 Finance lease obligations & other 103 128 Total Machinery, Energy & Transportation 9,749 9,141 Financial Products: Medium-term notes 16,012 16,719 Other 238 421 Total Financial Products 16,250 17,140 Total long-term debt due after one year $ 25,999 $ 26,281 1 Effective yield to maturity includes the impact of discounts, premiums and debt issuance costs. 2 Redeemable at our option in whole or in part at any time at a redemption price equal to the greater of (i) 100% of the principal amount or (ii) the discounted present value of the notes or debentures, calculated in accordance with the terms of such notes or debentures.
Aggregate amounts of maturities of long-term debt	The aggregate amounts of maturities of long-term debt during each of the years 2021 through 2025, including amounts due within one year and classified as current, are: December 31, (Millions of dollars) 2021 2022 2023 2024 2025 Machinery, Energy & Transportation $ 1,420 $ 520 $ 99 $ 1,010 $ 9 Financial Products 7,729 6,679 4,168 2,664 1,621 $ 9,149 $ 7,199 $ 4,267 $ 3,674 $ 1,630

Credit commitments (Tables)

Credit commitments (Tables)	12 Months Ended
Credit commitments (Tables)	Dec. 31, 2020
Credit Commitments [Abstract]
Credit commitments	December 31, 2020 (Millions of dollars) Consolidated Machinery, Financial Credit lines available: Global credit facilities $ 10,500 $ 2,750 $ 7,750 Other external 3,178 146 3,032 Total credit lines available 13,678 2,896 10,782 Less: Commercial paper outstanding (1,321) — (1,321) Less: Utilized credit (744) (10) (734) Available credit $ 11,613 $ 2,886 $ 8,727

Profit per share (Tables)

Profit per share (Tables)	12 Months Ended
Profit per share (Tables)	Dec. 31, 2020
Earnings Per Share [Abstract]
Computations of Profit Per Share	Computations of profit per share: (Dollars in millions except per share data) 2020 2019 2018 Profit for the period (A) 1 $ 2,998 $ 6,093 $ 6,147 Determination of shares (in millions): Weighted average number of common shares outstanding (B) 544.1 561.6 591.4 Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price 4.5 5.9 8.0 Average common shares outstanding for fully diluted computation (C) 2 548.6 567.5 599.4 Profit per share of common stock: Assuming no dilution (A/B) $ 5.51 $ 10.85 $ 10.39 Assuming full dilution (A/C) 2 $ 5.46 $ 10.74 $ 10.26 Shares outstanding as of December 31 (in millions) 545.3 550.1 575.5 1 Profit attributable to common shareholders. 2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

Accumulated other comprehensi_2

Accumulated other comprehensive income (loss) (Tables)	12 Months Ended
Accumulated other comprehensive income (loss) (Tables)	Dec. 31, 2020
Equity [Abstract]
Schedule of Accumulated other comprehensive income (loss)	Changes in the balances for each component of Accumulated other comprehensive income (loss) were as follows: (Millions of dollars) 2020 2019 2018 Foreign currency translation: Beginning balance $ (1,487) $ (1,601) $ (1,205) Adjustments to adopt new accounting guidance related to reclassification of certain tax effects from AOCI — 98 — Balance at January 1 (1,487) (1,503) (1,205) Gains (losses) on foreign currency translation 513 21 (373) Less: Tax provision /(benefit) (42) 5 24 Net gains (losses) on foreign currency translation 555 16 (397) (Gains) losses reclassified to earnings 22 — 1 Less: Tax provision /(benefit) — — — Net (gains) losses reclassified to earnings 22 — 1 Other comprehensive income (loss), net of tax 577 16 (396) Ending balance $ (910) $ (1,487) $ (1,601) Pension and other postretirement benefits Beginning balance $ (3) $ 12 $ 46 Adjustments to adopt new accounting guidance related to reclassification of certain tax effects from AOCI — 19 — Balance at January 1 (3) 31 46 Current year prior service credit (cost) (1) (4) — Less: Tax provision /(benefit) — — 6 Net current year prior service credit (cost) (1) (4) (6) Amortization of prior service (credit) cost (38) (40) (36) Less: Tax provision /(benefit) (10) (10) (8) Net amortization of prior service (credit) cost (28) (30) (28) Other comprehensive income (loss), net of tax (29) (34) (34) Ending balance $ (32) $ (3) $ 12 Derivative financial instruments Beginning balance $ (97) $ (80) $ (41) Adjustments to adopt new accounting guidance related to reclassification of certain tax effects from AOCI — (9) — Balance at January 1 (97) (89) (41) Gains (losses) deferred (116) 57 80 Less: Tax provision /(benefit) (25) 14 19 Net gains (losses) deferred (91) 43 61 (Gains) losses reclassified to earnings 241 (66) (131) Less: Tax provision /(benefit) 53 (15) (31) Net (gains) losses reclassified to earnings 188 (51) (100) Other comprehensive income (loss), net of tax 97 (8) (39) Ending balance $ — $ (97) $ (80) 2020 2019 2018 Available-for-sale securities Beginning balance $ 20 $ (15) $ 8 Adjustments to adopt recognition and measurement of financial assets and liabilities guidance — — (11) Balance at January 1 20 (15) (3) Gains (losses) deferred 45 45 (15) Less: Tax provision /(benefit) 10 10 (3) Net gains (losses) deferred 35 35 (12) (Gains) losses reclassified to earnings (1) — — Less: Tax provision /(benefit) — — — Net (gains) losses reclassified to earnings (1) — — Other comprehensive income (loss), net of tax 34 35 (12) Ending balance $ 54 $ 20 $ (15) Total AOCI Ending Balance at December 31 $ (888) $ (1,567) $ (1,684)

Fair value disclosures (Tables)

Fair value disclosures (Tables)	12 Months Ended
Fair value disclosures (Tables)	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Assets and liabilities measured on a recurring basis at fair value	Assets and liabilities measured on a recurring basis at fair value, primarily related to Financial Products, included in Statement 3 as of December 31, 2020 and 2019 were as follows: December 31, 2020 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets Debt securities Government debt U.S. treasury bonds $ 10 $ — $ — $ — $ 10 Other U.S. and non-U.S. government bonds — 59 — — 59 Corporate bonds Corporate bonds — 1,012 — — 1,012 Asset-backed securities — 159 — — 159 Mortgage-backed debt securities U.S. governmental agency — 374 — — 374 Residential — 5 — — 5 Commercial — 64 — — 64 Total debt securities 10 1,673 — — 1,683 Equity securities Large capitalization value 199 — — — 199 Smaller company growth 58 — — — 58 REIT — — — 148 148 Total equity securities 257 — — 148 405 Total Assets $ 267 $ 1,673 $ — $ 148 $ 2,088 Liabilities Derivative financial instruments, net $ — $ 17 $ — $ — $ 17 Total Liabilities $ — $ 17 $ — $ — $ 17 December 31, 2019 (Millions of dollars) Level 1 Level 2 Level 3 Measured at NAV Total Assets Debt securities Government debt U.S. treasury bonds $ 9 $ — $ — $ — $ 9 Other U.S. and non-U.S. government bonds — 54 — — 54 Corporate bonds Corporate bonds — 856 — — 856 Asset-backed securities — 62 — — 62 Mortgage-backed debt securities U.S. governmental agency — 331 — — 331 Residential — 6 — — 6 Commercial — 47 — — 47 Total debt securities 9 1,356 — — 1,365 Equity securities Large capitalization value 187 — — — 187 Smaller company growth 29 — 4 — 33 REIT — — — 126 126 Total equity securities 216 — 4 126 346 Derivative financial instruments, net — 45 — — 45 Total Assets $ 225 $ 1,401 $ 4 $ 126 $ 1,756
Fair values of financial instruments	Fair values of our financial instruments were as follows: TABLE III—Fair Values of Financial Instruments 2020 2019 (Millions of dollars) Carrying Fair Carrying Fair Fair Value Levels Reference Assets at December 31, Cash and short-term investments $ 9,352 $ 9,352 $ 8,284 $ 8,284 1 Statement 3 Restricted cash and short-term investments 14 14 8 8 1 Statement 3 Investments in debt and equity securities 2,088 2,088 1,711 1,711 1, 2 & 3 Notes 11 & 19 Finance receivables–net (excluding finance leases 1 ) 14,028 14,357 14,473 14,613 3 Notes 7 & 19 Wholesale inventory receivables–net (excluding finance leases 1 ) 929 911 1,105 1,076 3 Notes 7 & 19 Foreign currency contracts–net — — 62 62 2 Notes 4 & 19 Interest rate swaps–net 58 58 — — 2 Notes 4 & 19 Commodity contracts–net 37 37 3 3 2 Notes 4 & 19 Liabilities at December 31, Short-term borrowings 2,015 2,015 5,166 5,166 1 Note 13 Long-term debt (including amounts due within one year): Machinery, Energy & Transportation 11,169 14,549 9,157 11,216 2 Note 14 Financial Products 23,979 24,614 23,334 23,655 2 Note 14 Foreign currency contracts–net 112 112 — — 2 Notes 4 & 19 Interest rate swaps–net — — 20 20 2 Notes 4 & 19 Guarantees 5 5 5 5 3 Note 21 1 Represents finance leases and failed sale leasebacks of $7,961 million and $7,800 million at December 31, 2020 and 2019, respectively.

Leases (Tables)

Leases (Tables)	12 Months Ended
Leases (Tables)	Dec. 31, 2020
Leases [Abstract]
Lease, Cost	The components of lease costs were as follows: (Millions of dollars) Year Ended December 31, 2020 2019 Operating lease cost $ 204 $ 232 Short-term lease cost $ 50 $ 57
Schedule of Supplemental Balance Sheet Information Related to Leases	Supplemental information related to leases was as follows: (Millions of dollars) December 31, 2020 December 31, 2019 Operating Leases Other assets $ 603 $ 624 Other current liabilities $ 163 $ 173 Other liabilities $ 457 $ 461 Weighted average remaining lease term Operating leases 7 years 7 years Weighted average discount rates Operating leases 2 % 2 %
Schedule of Maturities of Operating and Finance Leases Liabilities	Maturities of operating lease liabilities were as follows: (Millions of dollars) December 31, 2020 Amounts Due In 2021 $ 174 2022 118 2023 88 2024 66 2025 51 Thereafter 182 Total lease payments 679 Less: Imputed interest (59) Total $ 620
Schedule of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases was as follows: (Millions of dollars) Year ended December 31 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 201 $ 224 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 178 $ 122
Schedule of Equipment under Operating Leases	The carrying amount of equipment leased to others, included in Property, plant and equipment - net in Statement 3, under operating leases was as follows: December 31, (Millions of dollars) 2020 2019 Equipment leased to others - at original cost $ 6,077 $ 6,208 Less: Accumulated depreciation (2,035) (1,960) Equipment leased to others - net $ 4,042 $ 4,248
Lessor, Operating Lease, Payments to be Received, Maturity	Payments due for operating leases as of December 31, 2020, were as follows: (Millions of dollars) 2021 2022 2023 2024 2025 Thereafter Total $842 $494 $260 $134 $64 $64 $1,858
Revenue from finance and operating lease	Revenues from finance and operating leases, primarily included in Revenues of Financial Products on Statement 1, were as follows: (Millions of dollars) Year ended December 31 2020 2019 Finance lease revenue $ 492 $ 521 Operating lease revenue 1,124 1,248 Total $ 1,616 $ 1,769

Guarantees and product warran_2

Guarantees and product warranty (Tables)	12 Months Ended
Guarantees and product warranty (Tables)	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Guarantees	The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees at December 31 was as follows: (Millions of dollars) 2020 2019 Caterpillar dealer performance guarantees $ 993 $ 1,150 Supplier consortium performance guarantee 258 238 Other guarantees 234 221 Total guarantees $ 1,485 $ 1,609
Product warranty	The reconciliation of the change in our product warranty liability balances for the years ended December 31 was as follows: (Millions of dollars) 2020 2019 Warranty liability, beginning of period $ 1,541 $ 1,391 Reduction in liability (payments) (897) (903) Increase in liability (new warranties) 968 1,053 Warranty liability, end of period $ 1,612 $ 1,541

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
Segment Information (Tables)	Dec. 31, 2020
Reconciliation of Sales and revenues
Disaggregation of Revenue	For the years ended December 31, 2020, 2019 and 2018, sales and revenues by geographic region reconciled to consolidated sales and revenues were as follows: Sales and Revenues by Geographic Region (Millions of dollars) North America Latin America EAME Asia/ Pacific External Sales and Revenues Intersegment Sales and Revenues Total Sales and Revenues 2020 Construction Industries $ 7,365 $ 1,031 $ 3,466 $ 5,014 $ 16,876 $ 42 $ 16,918 Resource Industries 2,286 1,253 1,570 2,337 $ 7,446 460 7,906 Energy & Transportation 6,843 932 4,448 2,441 $ 14,664 2,806 17,470 Financial Products Segment 1,930 257 392 465 $ 3,044 1 — 3,044 Total sales and revenues from reportable segments 18,424 3,473 9,876 10,257 42,030 3,308 45,338 All Other operating segment 27 4 26 56 113 354 467 Corporate Items and Eliminations (237) (45) (44) (69) (395) (3,662) (4,057) Total Sales and Revenues $ 18,214 $ 3,432 $ 9,858 $ 10,244 $ 41,748 $ — $ 41,748 2019 Construction Industries $ 11,455 $ 1,533 $ 4,012 $ 5,556 $ 22,556 $ 93 $ 22,649 Resource Industries 3,632 1,533 1,836 2,812 9,813 463 10,276 Energy & Transportation 8,864 1,389 4,994 3,238 18,485 3,612 22,097 Financial Products Segment 2,235 299 408 492 3,434 1 — 3,434 Total sales and revenues from reportable segments 26,186 4,754 11,250 12,098 54,288 4,168 58,456 All Other operating segment 25 7 28 67 127 373 500 Corporate Items and Eliminations (426) (51) (55) (83) (615) (4,541) (5,156) Total Sales and Revenues $ 25,785 $ 4,710 $ 11,223 $ 12,082 $ 53,800 $ — $ 53,800 2018 Construction Industries $ 10,754 $ 1,479 $ 4,410 $ 6,473 $ 23,116 $ 121 $ 23,237 Resource Industries 3,357 1,647 2,217 2,667 9,888 382 10,270 Energy & Transportation 9,685 1,331 4,934 2,882 18,832 3,953 22,785 Financial Products Segment 2,153 281 387 458 3,279 1 — 3,279 Total sales and revenues from reportable segments 25,949 4,738 11,948 12,480 55,115 4,456 59,571 All Other operating segment 63 3 18 70 154 328 482 Corporate Items and Eliminations (389) (46) (37) (75) (547) (4,784) (5,331) Total Sales and Revenues $ 25,623 $ 4,695 $ 11,929 $ 12,475 $ 54,722 $ — $ 54,722 1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other operating segment of $362 million , $524 million, and $470 million in the years ended December 31, 2020, 2019 and 2018, respectively. For the years ended December 31, 2020, 2019 and 2018, Energy & Transportation segment sales by end user application were as follows: Energy & Transportation External Sales (Millions of dollars) 2020 2019 2018 Oil and gas $ 3,701 $ 5,205 $ 5,763 Power generation 3,963 4,474 4,334 Industrial 2,945 3,749 3,640 Transportation 4,055 5,057 5,095 Energy & Transportation External Sales $ 14,664 $ 18,485 18,832
Reconciliation of Consolidated profit before taxes:	Reconciliation of Consolidated profit before taxes: (Millions of dollars) 2020 2019 2018 Profit from reportable segments: Construction Industries $ 2,373 $ 3,931 $ 4,174 Resource Industries 896 1,629 1,603 Energy & Transportation 2,405 3,910 3,938 Financial Products Segment 590 832 505 Total profit from reportable segments 6,264 10,302 10,220 Profit from All Other operating segment 28 4 23 Cost centers (4) (6) 2 Corporate costs (517) (607) (610) Timing (106) (93) (257) Restructuring costs (241) (207) (386) Methodology differences: Inventory/cost of sales 4 (19) 51 Postretirement benefit expense (173) (401) (124) Stock-based compensation expense (202) (205) (198) Financing costs (444) (248) (257) Currency (266) (175) (219) Other income/expense methodology differences (322) (481) (362) Other methodology differences (26) (52) (61) Total consolidated profit before taxes $ 3,995 $ 7,812 $ 7,822
Reconciliation of Assets:	Reconciliation of Assets: (Millions of dollars) December 31, 2020 2019 Assets from reportable segments: Construction Industries $ 4,259 $ 4,601 Resource Industries 6,035 6,505 Energy & Transportation 8,582 8,548 Financial Products Segment 34,278 35,813 Total assets from reportable segments 53,154 55,467 Assets from All Other operating segment 1,717 1,728 Items not included in segment assets: Cash and short-term investments 8,822 7,299 Deferred income taxes 1,413 1,294 Goodwill and intangible assets 4,847 4,435 Property, plant and equipment – net and other assets 2,833 2,529 Inventory methodology differences (2,536) (2,426) Liabilities included in segment assets 8,466 8,541 Other (392) (414) Total assets $ 78,324 $ 78,453
Reconciliation of Depreciation and amortization:	Reconciliation of Depreciation and amortization: (Millions of dollars) 2020 2019 2018 Depreciation and amortization from reportable segments: Construction Industries $ 245 $ 302 $ 367 Resource Industries 418 450 462 Energy & Transportation 593 624 640 Financial Products Segment 773 829 834 Total depreciation and amortization from reportable segments 2,029 2,205 2,303 Items not included in segment depreciation and amortization: All Other operating segment 267 210 225 Cost centers 126 135 130 Other 10 27 108 Total depreciation and amortization $ 2,432 $ 2,577 $ 2,766
Reconciliation of Capital expenditures:	Reconciliation of Capital expenditures: (Millions of dollars) 2020 2019 2018 Capital expenditures from reportable segments: Construction Industries $ 213 $ 201 $ 266 Resource Industries 125 168 188 Energy & Transportation 495 613 742 Financial Products Segment 1,100 1,534 1,559 Total capital expenditures from reportable segments 1,933 2,516 2,755 Items not included in segment capital expenditures: All Other operating segment 156 131 170 Cost centers 47 101 100 Timing 19 (11) 42 Other (40) (68) (151) Total capital expenditures $ 2,115 $ 2,669 $ 2,916
Information about Geographic Areas	Enterprise-wide Disclosures: Information about Geographic Areas: Property, plant and equipment - net External sales and revenues 1 December 31, (Millions of dollars) 2020 2019 2018 2020 2019 Inside United States $ 16,269 $ 22,806 $ 22,690 $ 7,242 $ 7,568 Outside United States 25,479 30,994 32,032 5,159 5,336 Total $ 41,748 $ 53,800 $ 54,722 $ 12,401 $ 12,904 1 Sales of ME&T are based on dealer or customer location. Revenues from services provided are based on where service is rendered.

Restructuring Costs (Tables)

Restructuring Costs (Tables)	12 Months Ended
Restructuring Costs (Tables)	Dec. 31, 2020
Restructuring Charges [Abstract]
Restructuring and Related Costs	Restructuring costs for 2020, 2019 and 2018 were as follows: (Millions of dollars) 2020 2019 2018 Employee separations 1 $ 271 $ 48 $ 112 Contract terminations 1 2 1 7 Long-lived asset impairments 1 38 65 93 Defined benefit plan curtailments and termination benefits 2 — — (8) Other 3 43 122 182 Total restructuring costs $ 354 $ 236 $ 386 1 Recognized in Other operating (income) expenses. 2 Recognized in Other income (expense). 3 Represents costs related to our restructuring programs, primarily for inventory write-downs, equipment relocation, project management, accelerated depreciation and building demolition, all of which are primarily included in Cost of goods sold. Beginning in 2019, only certain restructuring costs were excluded from segment profit. Restructuring costs included in segment profit were as follows: (Millions of dollars) 2020 2019 2018 Construction Industries $ 13 $ 4 $ — Resource Industries 19 5 — Energy & Transportation 55 7 — Financial Products Segment — — — All Other operating segment 9 8 —
Summary of separation activity	The following table summarizes the 2019 and 2020 employee separation activity: (Millions of dollars) 2020 2019 Liability balance, beginning of period $ 48 $ 85 Increase in liability (separation charges) 271 48 Reduction in liability (payments) (155) (85) Liability balance, end of period $ 164 $ 48

Selected quarterly financial _2

Selected quarterly financial results (Tables)	12 Months Ended
Selected quarterly financial results (Tables)	Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]
Selected quarterly financial results	2020 Quarter (Dollars in millions except per share data) 1st 2nd 3rd 4th Sales and revenues $ 10,635 $ 9,997 $ 9,881 $ 11,235 Less: Revenues (721) (687) (653) (665) Sales 9,914 9,310 9,228 10,570 Cost of goods sold 7,266 7,113 6,919 7,784 Gross margin 2,648 2,197 2,309 2,786 Profit 1 $ 1,092 3 $ 458 3 $ 668 3 $ 780 3 Profit per common share $ 2.00 $ 0.84 $ 1.23 $ 1.43 Profit per common share–diluted 2 $ 1.98 $ 0.84 $ 1.22 $ 1.42 2019 Quarter (Dollars in millions except per share data) 1st 2nd 3rd 4th Sales and revenues $ 13,466 $ 14,432 $ 12,758 $ 13,144 Less: Revenues (742) (761) (784) (758) Sales 12,724 13,671 11,974 12,386 Cost of goods sold 9,003 9,941 8,569 9,117 Gross margin 3,721 3,730 3,405 3,269 Profit 1 $ 1,881 4 $ 1,620 $ 1,494 $ 1,098 5 Profit per common share $ 3.29 $ 2.85 $ 2.69 $ 2.00 Profit per common share–diluted 2 $ 3.25 $ 2.83 $ 2.66 $ 1.97

Operations and summary of sig_3

Operations and summary of significant accounting policies (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020USD ($)countriesdistributorsdealers	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Operations and summary of significant accounting policies
Number of countries served by dealers	192
Percentage of value of inventories on the LIFO basis to total inventories	60.00%
Maximum amortizable period of purchased intangibles (in years)	14 years	14 years
Incremental value of inventory if FIFO method had been in use \| $	$ 2,132	$ 2,086
Consolidated depreciation expense \| $	2,122	2,253	$ 2,435
Depreciation on equipment leased to others \| $	$ 758	$ 813	$ 819
Inside United States
Operations and summary of significant accounting policies
Number of dealers \| dealers	45
Countries Outside United States
Operations and summary of significant accounting policies
Number of dealers \| dealers	116
Perkins
Operations and summary of significant accounting policies
Number of countries where distributors are located	183
Number of distributors \| distributors	92
FG Wilson
Operations and summary of significant accounting policies
Number of countries where distributors are located	109
Number of distributors \| distributors	150
MaK
Operations and summary of significant accounting policies
Number of countries where distributors are located	130
Number of distributors \| distributors	20
Maximum
Operations and summary of significant accounting policies
Maximum amortizable period of purchased intangibles (in years)	20 years

Operations and summary of sig_4

Operations and summary of significant accounting policies (Details 2- Basis of presentation)	Dec. 31, 2020
Equity investment method and Variable Interest Entity
Ownership percentage of investments in companies below which the entity must exercise significant influence in order to be accounted for under the equity method	20.00%
Minimum
Equity investment method and Variable Interest Entity
Equity Method Investment, Ownership Percentage	20.00%

Sales and revenue recognition (

Sales and revenue recognition (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenue from External Customer [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 5,700
Contract with Customer, Receivable, after Allowance for Credit Loss, Current	6,310	$ 7,648	$ 7,743
Contract with Customer, Receivable, after Allowance for Credit Loss, Noncurrent	657	693	674
Contract with Customer, Liability	1,526	1,654	$ 1,680
Contract with Customer, Liability, Revenue Recognized	$ 1,012	$ 1,171
Period after which Collection of Future Income is Considered as Not Probable	120 days
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue from External Customer [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 2,200
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months

Stock-based compensation (Detai

Stock-based compensation (Details) - $ / shares	12 Months Ended
Stock-based compensation (Details) - $ / shares	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares issued from treasury stock for stock-based compensation (in shares)	5,317,243	5,126,379	5,590,641
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	36,488,284
Term life of SARs and option awards (in years)	10 years
Required minimum age of a participant upon separation from service to meet the criteria for Long Service Separation (in years)	55 years
Minimum term of service to meet criteria for Long Service Separation (in years)	5 years
Term life of vested options/SARs from separation date (in years)	5 years
Assumptions used in determining the fair value of the stock-based awards
Weighted-average dividend yield (as a percent)	2.50%	2.60%	2.70%
Weighted-average volatility (as a percent)	25.70%	29.10%	30.20%
Volatilities, low end of range (as a percent)	24.50%	25.10%	21.50%
Volatilities, high end of range (as a percent)	29.70%	38.70%	33.00%
Risk-free interest rates, low end of range (as a percent)	1.21%	2.48%	2.02%
Risk-free interest rates, high end of range (as a percent)	1.39%	2.68%	2.87%
Weighted-average expected lives (in years)	8 years	7 years	8 years
Weighted-Average Grant Date Fair Value for RSUs and PSUs
Number of additional shares authorized under the plan (in shares)			36,000,000
Number of shares authorized under the plans (in shares)	74,800,000			38,800,000
Stock Options and Stock Appreciation Rights (SARs)
Stock options/SARs activity
Outstanding at beginning of year (in shares)	14,464,994
Granted to officers and key employees	(1,913,888)
Exercised (in shares)	(6,247,628)
Forfeited / expired (in shares)	(54,271)
Outstanding at end of year (in shares)	10,076,983	14,464,994
Number of stock awards exercisable at end of the period (in shares)	6,711,398
Weighted- Average Exercise Price for Stock options/SARs
Outstanding at beginning of year (in dollars per shares)	$ 99.29
Granted to officers and key employees (in dollars per shares)	127.60
Exercised (in dollars per shares)	91.21
Forfeited / expired (in dollars per shares)	113.64
Outstanding at end of year (in dollars per shares)	109.60	$ 99.29
Exercisable at year-end (in dollars per share)	$ 97.29
Restricted Stock Units (RSUs)
RSUs/PSUs activity
Outstanding at beginning of year (in shares)	1,369,203
Granted to officers and key employees (in shares)	743,783
Vested (in shares)	(724,606)
Forfeited (in shares)	(60,430)
Outstanding at end of year (in shares)	1,327,950	1,369,203
Weighted-Average Grant Date Fair Value for RSUs and PSUs
Outstanding at beginning of year (in dollars per shares)	$ 132.88
Granted to officers and key employees (in dollars per shares)	128.07	$ 138.61	$ 150.58
Vested (in dollars per shares)	124.25
Forfeited (in dollars per shares)	133.28
Outstanding at end of year (in dollars per shares)	$ 134.89	$ 132.88
Performance Restricted Stock Units (PRSUs)
RSUs/PSUs activity
Outstanding at beginning of year (in shares)	670,115
Granted to officers and key employees (in shares)	399,149
Vested (in shares)	(326,217)
Forfeited (in shares)	(15,290)
Outstanding at end of year (in shares)	727,757	670,115
Weighted-Average Grant Date Fair Value for RSUs and PSUs
Outstanding at beginning of year (in dollars per shares)	$ 144.46
Granted to officers and key employees (in dollars per shares)	128.41	$ 138.67	$ 150.98
Vested (in dollars per shares)	151.12
Forfeited (in dollars per shares)	141.15
Outstanding at end of year (in dollars per shares)	$ 132.81	$ 144.46
2015 and later grants \| Performance Restricted Stock Units (PRSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Graded vesting period of awards granted	3 years
Percentage of award vested on first anniversary of grant date \| 2015 and later grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Portion of the award vested on each anniversary of the grant date	33.33%
Percentage of award vested on second anniversary of grant date \| 2015 and later grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Portion of the award vested on each anniversary of the grant date	33.33%
Percentage of award vested on third anniversary of grant date \| 2015 and later grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Portion of the award vested on each anniversary of the grant date	33.33%

Stock-based compensation (Det_2

Stock-based compensation (Details 2) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Additional Stock-based Award Information under Restricted Stock Units Activity
Stock-based compensation expense, before tax (in dollars)	$ 202	$ 205	$ 197
Income tax benefit corresponding to stock-based compensation expense	34	35	36
Unrecognized compensation cost related to nonvested stock-based compensation awards (in dollars)	$ 133
Term of amortization of unrecognized compensation cost over weighted-average remaining requisite service periods (in years)	1 year 7 months 6 days
Cash tax benefits realized from stock awards exercised	$ 108	$ 89	$ 103
Exercise Price Range One [Member]
Exercise Prices Stock Options/SARs outstanding and exercisable
Exercise Price Range, Minimum (in dollars per share)	$ 74.77
Exercise Price Range, Maximum (in dollars per share)	83
Exercise Price Range Two [Member]
Exercise Prices Stock Options/SARs outstanding and exercisable
Exercise Price Range, Minimum (in dollars per share)	89.75
Exercise Price Range, Maximum (in dollars per share)	96.31
Exercise Price Range Three [Member]
Exercise Prices Stock Options/SARs outstanding and exercisable
Exercise Price Range, Minimum (in dollars per share)	102.13
Exercise Price Range, Maximum (in dollars per share)	110.09
Exercise Price Range Four [Member]
Exercise Prices Stock Options/SARs outstanding and exercisable
Exercise Price Range, Minimum (in dollars per share)	127.60
Exercise Price Range, Maximum (in dollars per share)	138.51
Exercise Price Range Five [Member]
Exercise Prices Stock Options/SARs outstanding and exercisable
Exercise Price Range, Minimum (in dollars per share)	141.32
Exercise Price Range, Maximum (in dollars per share)	$ 151.12
Stock Options and Stock Appreciation Rights (SARs)
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	10,076,983
Weighted Average Exercise Price (in dollars per share)	$ 109.60
Aggregate Intrinsic Value outstanding	$ 731
Number of stock awards exercisable at end of the period (in shares)	6,711,398
Weighted Average Exercise Price (in dollars per share)	$ 97.29
Aggregate Intrinsic Value exercisable	$ 550
Additional Stock-based Award Information under Stock Option and Stock Appreciation Rights
Weighted-average fair value per share of stock awards granted (in dollars per share)	$ 25.98	$ 40.98	$ 46.09
Intrinsic value of stock awards exercised	$ 386	$ 264	$ 348
Fair value of stock awards vested	64	100	86
Cash received from stock awards exercised	$ 282	$ 298	$ 370
Stock Options and Stock Appreciation Rights (SARs) \| Exercise Price Range One [Member]
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	3,076,885
Weighted Average Remaining Contractual Life outstanding (in years)	4 years 9 months 3 days
Weighted Average Exercise Price (in dollars per share)	$ 78.72
Aggregate Intrinsic Value outstanding	$ 318
Number of stock awards exercisable at end of the period (in shares)	3,076,885
Weighted-Average Remaining Contractual Life exercisable (in years)	4 years 9 months 3 days
Weighted Average Exercise Price (in dollars per share)	$ 78.72
Aggregate Intrinsic Value exercisable	$ 318
Stock Options and Stock Appreciation Rights (SARs) \| Exercise Price Range Two [Member]
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	2,245,247
Weighted Average Remaining Contractual Life outstanding (in years)	4 years 9 months 25 days
Weighted Average Exercise Price (in dollars per share)	$ 94.92
Aggregate Intrinsic Value outstanding	$ 196
Number of stock awards exercisable at end of the period (in shares)	2,244,742
Weighted-Average Remaining Contractual Life exercisable (in years)	4 years 9 months 25 days
Weighted Average Exercise Price (in dollars per share)	$ 94.92
Aggregate Intrinsic Value exercisable	$ 196
Stock Options and Stock Appreciation Rights (SARs) \| Exercise Price Range Three [Member]
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	164,103
Weighted Average Remaining Contractual Life outstanding (in years)	1 year 3 days
Weighted Average Exercise Price (in dollars per share)	$ 108.70
Aggregate Intrinsic Value outstanding	$ 12
Number of stock awards exercisable at end of the period (in shares)	164,103
Weighted-Average Remaining Contractual Life exercisable (in years)	1 year 3 days
Weighted Average Exercise Price (in dollars per share)	$ 108.70
Aggregate Intrinsic Value exercisable	$ 12
Stock Options and Stock Appreciation Rights (SARs) \| Exercise Price Range Four [Member]
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	3,284,693
Weighted Average Remaining Contractual Life outstanding (in years)	8 years 10 months 9 days
Weighted Average Exercise Price (in dollars per share)	$ 132.16
Aggregate Intrinsic Value outstanding	$ 164
Number of stock awards exercisable at end of the period (in shares)	408,768
Weighted-Average Remaining Contractual Life exercisable (in years)	8 years 3 months 7 days
Weighted Average Exercise Price (in dollars per share)	$ 138.35
Aggregate Intrinsic Value exercisable	$ 18
Stock Options and Stock Appreciation Rights (SARs) \| Exercise Price Range Five [Member]
Stock Options/SARs outstanding and exercisable
Number of stock awards outstanding at end of the period (in shares)	1,306,055
Weighted Average Remaining Contractual Life outstanding (in years)	7 years 3 months 10 days
Weighted Average Exercise Price (in dollars per share)	$ 150.95
Aggregate Intrinsic Value outstanding	$ 41
Number of stock awards exercisable at end of the period (in shares)	816,900
Weighted-Average Remaining Contractual Life exercisable (in years)	7 years 3 months 10 days
Weighted Average Exercise Price (in dollars per share)	$ 150.94
Aggregate Intrinsic Value exercisable	$ 6
Restricted Stock Units (RSUs)
Additional Stock-based Award Information under Restricted Stock Units Activity
Outstanding at end of year (in shares)	1,327,950	1,369,203
Weighted average remaining contractual life (in years)	1 year 6 months
Weighted-average fair value per share of stock awards granted	$ 128.07	$ 138.61	$ 150.58
Fair value of stock awards vested	$ 87	$ 110	$ 180
Performance Restricted Stock Units (PRSUs)
Additional Stock-based Award Information under Restricted Stock Units Activity
Outstanding at end of year (in shares)	727,757	670,115
Weighted average remaining contractual life (in years)	1 year 6 months
Weighted-average fair value per share of stock awards granted	$ 128.41	$ 138.67	$ 150.98
Fair value of stock awards vested	$ 59	$ 59	$ 70

Derivative financial instrume_4

Derivative financial instruments and risk management (Details)	12 Months Ended
	Dec. 31, 2020
Derivative [Line Items]
Maximum length of time policy, foreign currency cash flow hedge	5 years
Foreign currency cash flow hedges, maximum period (in months)	60 months
Commodity forward and option contracts, maximum period (in years)	5 years

Derivative financial instrume_5

Derivative financial instruments and risk management (Details 2) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Derivatives Fair Value
Asset Fair Value	$ 281	$ 116
Liability Fair Value	(298)	(71)
Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	196	32
Liability Fair Value	(38)	(21)
Financial Products
Derivatives Fair Value
Asset Fair Value	85	84
Liability Fair Value	(260)	(50)
Designated derivatives
Derivatives Fair Value
Asset (Liability) Fair Value	20	51
Undesignated derivatives
Derivatives Fair Value
Asset (Liability) Fair Value	(37)	(6)
Foreign exchange contracts \| Designated derivatives \| Receivables - trade and other \| Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	74	18
Foreign exchange contracts \| Designated derivatives \| Receivables - trade and other \| Financial Products
Derivatives Fair Value
Asset Fair Value	1	54
Foreign exchange contracts \| Designated derivatives \| Long-term receivables - trade and other \| Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	71	9
Foreign exchange contracts \| Designated derivatives \| Long-term receivables - trade and other \| Financial Products
Derivatives Fair Value
Asset Fair Value	1	13
Foreign exchange contracts \| Designated derivatives \| Accrued expenses \| Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	(36)	(20)
Foreign exchange contracts \| Designated derivatives \| Accrued expenses \| Financial Products
Derivatives Fair Value
Liability Fair Value	(148)	(3)
Foreign exchange contracts \| Designated derivatives \| Other Liabilities \| Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	(1)	0
Foreign exchange contracts \| Undesignated derivatives \| Receivables - trade and other \| Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	10	1
Foreign exchange contracts \| Undesignated derivatives \| Receivables - trade and other \| Financial Products
Derivatives Fair Value
Asset Fair Value	17	7
Foreign exchange contracts \| Undesignated derivatives \| Long-term receivables - trade and other \| Financial Products
Derivatives Fair Value
Asset Fair Value	7	5
Foreign exchange contracts \| Undesignated derivatives \| Accrued expenses \| Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	(1)	0
Foreign exchange contracts \| Undesignated derivatives \| Accrued expenses \| Financial Products
Derivatives Fair Value
Liability Fair Value	(107)	(22)
Interest rate contracts \| Designated derivatives \| Receivables - trade and other \| Financial Products
Derivatives Fair Value
Asset Fair Value	2	0
Interest rate contracts \| Designated derivatives \| Long-term receivables - trade and other \| Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	4	0
Interest rate contracts \| Designated derivatives \| Long-term receivables - trade and other \| Financial Products
Derivatives Fair Value
Asset Fair Value	57	5
Interest rate contracts \| Designated derivatives \| Accrued expenses \| Financial Products
Derivatives Fair Value
Liability Fair Value	(5)	(25)
Commodity contracts \| Undesignated derivatives \| Receivables - trade and other \| Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	35	4
Commodity contracts \| Undesignated derivatives \| Long-term receivables - trade and other \| Machinery, Energy & Transportation
Derivatives Fair Value
Asset Fair Value	2	0
Commodity contracts \| Undesignated derivatives \| Accrued expenses \| Machinery, Energy & Transportation
Derivatives Fair Value
Liability Fair Value	$ 0	$ (1)

Derivative financial instrume_6

Derivative financial instruments and risk management (Details 3) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Machinery, Energy & Transportation
Derivative notional amounts
Derivative, Notional Amount	$ 3,553	$ 2,563
Financial Products
Derivative notional amounts
Derivative, Notional Amount	$ 11,260	$ 8,931

Derivative financial instrume_7

Derivative financial instruments and risk management (Details 4) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Derivative Instruments, Gain (Loss)
Gains (losses) deferred									$ (116)	$ 57	$ 80
(Gains) losses reclassified to earnings									241	(66)	(131)
Amount of the line items in Statement 1 [Abstract]
Other income (expense)									(44)	(57)	(67)
Sales and revenues	$ 11,235	$ 9,881	$ 9,997	$ 10,635	$ 13,144	$ 12,758	$ 14,432	$ 13,466	41,748	53,800	54,722
Cost of goods sold	7,784	6,919	7,113	7,266	9,117	8,569	9,941	9,003	29,082	36,630	36,997
Cash collateral received or pledged under master netting agreements	0				0				0	0
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months									14
Machinery, Energy & Transportation
Amount of the line items in Statement 1 [Abstract]
Sales and revenues	10,570	9,228	9,310	9,914	12,386	11,974	13,671	12,724	39,022	50,755	51,822
Financial Products
Derivative Instruments, Gain (Loss)
Interest Expense									589	754	722
Amount of the line items in Statement 1 [Abstract]
Sales and revenues	$ 665	$ 653	$ 687	$ 721	$ 758	$ 784	$ 761	$ 742	2,726	3,045	2,900
All other excluding Financial Products
Derivative Instruments, Gain (Loss)
Interest Expense									514	421	404
Designated derivatives \| Cash Flow Hedges
Derivative Instruments, Gain (Loss)
Gains (losses) deferred									(116)	57	80
(Gains) losses reclassified to earnings									(241)	66	131
Amount of the line items in Statement 1 [Abstract]
Recognized in Earnings (Ineffective Portion)											0
Designated derivatives \| Cash Flow Hedges \| Foreign exchange contracts \| Machinery, Energy & Transportation
Derivative Instruments, Gain (Loss)
Gains (losses) deferred									48	34	(47)
Designated derivatives \| Cash Flow Hedges \| Foreign exchange contracts \| Machinery, Energy & Transportation \| Sales
Derivative Instruments, Gain (Loss)
(Gains) losses reclassified to earnings									2
Designated derivatives \| Cash Flow Hedges \| Foreign exchange contracts \| Machinery, Energy & Transportation \| Cost of goods sold
Derivative Instruments, Gain (Loss)
(Gains) losses reclassified to earnings									(55)	(3)
Designated derivatives \| Cash Flow Hedges \| Foreign exchange contracts \| Machinery, Energy & Transportation \| Other Income (Expense)
Derivative Instruments, Gain (Loss)
(Gains) losses reclassified to earnings										11	(33)
Amount of the line items in Statement 1 [Abstract]
Recognized in Earnings (Ineffective Portion)											0
Designated derivatives \| Cash Flow Hedges \| Foreign exchange contracts \| Financial Products
Derivative Instruments, Gain (Loss)
Gains (losses) deferred									(130)	93	165
Designated derivatives \| Cash Flow Hedges \| Foreign exchange contracts \| Financial Products \| Other Income (Expense)
Derivative Instruments, Gain (Loss)
(Gains) losses reclassified to earnings									(164)	33	148
Amount of the line items in Statement 1 [Abstract]
Recognized in Earnings (Ineffective Portion)											0
Designated derivatives \| Cash Flow Hedges \| Foreign exchange contracts \| Financial Products \| Interest expense
Derivative Instruments, Gain (Loss)
(Gains) losses reclassified to earnings									32	37	19
Amount of the line items in Statement 1 [Abstract]
Recognized in Earnings (Ineffective Portion)											0
Designated derivatives \| Cash Flow Hedges \| Interest rate contracts \| Machinery, Energy & Transportation
Derivative Instruments, Gain (Loss)
Gains (losses) deferred									(11)	0	0
Designated derivatives \| Cash Flow Hedges \| Interest rate contracts \| Machinery, Energy & Transportation \| Interest expense
Derivative Instruments, Gain (Loss)
(Gains) losses reclassified to earnings									(4)	(4)	(3)
Amount of the line items in Statement 1 [Abstract]
Recognized in Earnings (Ineffective Portion)											0
Designated derivatives \| Cash Flow Hedges \| Interest rate contracts \| Financial Products
Derivative Instruments, Gain (Loss)
Gains (losses) deferred									(23)	(70)	(38)
Designated derivatives \| Cash Flow Hedges \| Interest rate contracts \| Financial Products \| Interest expense
Derivative Instruments, Gain (Loss)
(Gains) losses reclassified to earnings									(52)	(8)	0
Amount of the line items in Statement 1 [Abstract]
Recognized in Earnings (Ineffective Portion)											0
Undesignated derivatives
Amount of the line items in Statement 1 [Abstract]
Gains (Losses) on Derivatives Not Designated as Hedging Instruments									(63)	(6)	(74)
Undesignated derivatives \| Foreign exchange contracts \| Machinery, Energy & Transportation \| Other Income (Expense)
Amount of the line items in Statement 1 [Abstract]
Gains (Losses) on Derivatives Not Designated as Hedging Instruments									38	13	(54)
Undesignated derivatives \| Foreign exchange contracts \| Financial Products \| Other Income (Expense)
Amount of the line items in Statement 1 [Abstract]
Gains (Losses) on Derivatives Not Designated as Hedging Instruments									(112)	(37)	19
Undesignated derivatives \| Commodity contracts \| Machinery, Energy & Transportation \| Other Income (Expense)
Amount of the line items in Statement 1 [Abstract]
Gains (Losses) on Derivatives Not Designated as Hedging Instruments									$ 11	$ 18	$ (39)

Derivative financial instrume_8

Derivative financial instruments and risk management (Details 5) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Offsetting Assets
Gross Amount of Recognized Assets	$ 281	$ 116
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	281	116
Financial Instruments	(95)	(34)
Cash Collateral Received	0	0
Net Amount of Assets	186	82
Machinery, Energy & Transportation
Offsetting Assets
Gross Amount of Recognized Assets	196	32
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	196	32
Financial Instruments	(38)	(13)
Cash Collateral Received	0	0
Net Amount of Assets	158	19
Financial Products
Offsetting Assets
Gross Amount of Recognized Assets	85	84
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Assets Presented in the Statement of Financial Position	85	84
Financial Instruments	(57)	(21)
Cash Collateral Received	0	0
Net Amount of Assets	$ 28	$ 63

Derivative financial instrume_9

Derivative financial instruments and risk management (Details 6) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Offsetting Liabilities
Gross Amount of Recognized Liabilities	$ (298)	$ (71)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(298)	(71)
Financial Instruments	95	34
Cash Collateral Pledged	0	0
Net Amount of Liabilities	203	37
Machinery, Energy & Transportation
Offsetting Liabilities
Gross Amount of Recognized Liabilities	(38)	(21)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(38)	(21)
Financial Instruments	38	13
Cash Collateral Pledged	0	0
Net Amount of Liabilities	0	8
Financial Products
Offsetting Liabilities
Gross Amount of Recognized Liabilities	(260)	(50)
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amount of Liabilities Presented in the Statement of Financial Position	(260)	(50)
Financial Instruments	57	21
Cash Collateral Pledged	0	0
Net Amount of Liabilities	$ 203	$ 29

Other income (expense) (Details

Other income (expense) (Details) - USD ($) $ in Millions	12 Months Ended
Other income (expense) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other Income and Expenses [Abstract]
Investment and interest income	$ 112	$ 202	$ 195
Foreign exchange gains (losses)	(193)	(67)	(201)
License fee income	104	121	125
Debt and Equity Securities, Gain (Loss)	37	65	(29)
Net periodic pension and OPEB income (cost), excluding service cost	(90)	(363)	(118)
Miscellaneous income (loss)	(14)	(15)	(39)
Other income (expense)	$ (44)	$ (57)	$ (67)

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income taxes (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
(Decreases) increases in taxes resulting from:
Taxes at U.S. statutory rate	$ 839	$ 1,641	$ 1,643
Taxes at U. S. statutory rate (as a percent)	21.00%	21.00%	21.00%	35.00%
Non-U.S. subsidiaries taxed at other than the U.S. rate	$ 285	$ 365	$ 282
Non-U.S. subsidiaries taxed at other than the U.S. rate (as a percent)	7.10%	4.70%	3.60%
State and local taxes, net of federal	$ 32	$ 59	$ 22
State and local taxes, net of federal (as a percent)	0.80%	0.80%	0.30%
Interest and penalties, net of tax	$ 28	$ 34	$ 33
Interest and penalties, net of tax (as a percent)	0.70%	0.40%	0.40%
U.S. tax incentives	$ (52)	$ (149)	$ (106)
U.S. tax incentives (as a percent)	(1.30%)	(1.90%)	(1.30%)
Net excess tax benefits from stock-based compensation	$ (49)	$ (41)	$ (56)
Net excess tax benefits from stock-based compensation, percent	(1.20%)	(0.50%)	(0.70%)
Prior year tax and interest adjustments	$ (80)	$ 0	$ 0
Prior year tax and interest adjustments (as a percent)	(2.00%)	0.00%	0.00%
Mandatory deemed repatriation of non-U.S. earnings	$ 0	$ (178)	$ 50
Mandatory deemed repatriation of non-U.S. earnings (as a percent)	0.00%	(2.30%)	0.70%
U.S. deferred tax rate change	$ 0	$ 0	$ (154)
U.S. deferred tax rate change (as a percent)	0.00%	0.00%	(2.00%)
Valuation allowances	$ 0	$ 0	$ (29)
Valuation allowances (as a percent)	0.00%	0.00%	(0.40%)
Other-net	$ 3	$ 15	$ 13
Other-net (as a percent)	0.10%	0.20%	0.10%
Provision (benefit) for income taxes	$ 1,006	$ 1,746	$ 1,698
Provision (benefit) for income taxes (as a percent)	25.20%	22.40%	21.70%

Income taxes Income taxes (Deta

Income taxes Income taxes (Details 2) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Dec. 31, 2017	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Contingency
Valuation allowances			$ 0	$ 0	$ (29)
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount					$ (25)
Taxes at U. S. statutory rate (as a percent)			21.00%	21.00%	21.00%	35.00%
Adjustment to estimated tax for mandatory deemed repatriation of non-U.S. earnings	$ 178			$ 178	$ 50
Adjustment to U.S. 2017 tax reform estimated impact					(104)
Correction of Prior Year Valuation Allowance					59
U.S. 2017 tax reform provisionally estimated impact		$ 2,371
Charge/ (benefit) to U.S. deferred tax rate change 2017 U.S. tax reform					(154)
Undistributed earnings of foreign subsidiaries			$ 14,000
U.S. state taxing jurisdictions
Income Tax Contingency
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount					(63)
Discretionary Contribution
Income Tax Contingency
Payment for Pension and Other Postretirement Benefits					$ 1,000

Income taxes (Details 3)

Income taxes (Details 3) - USD ($) $ in Millions	12 Months Ended
Income taxes (Details 3) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Components of profit (loss) before taxes
U.S	$ 590	$ 2,888	$ 2,131
Non-U.S	3,405	4,924	5,691
Consolidated profit before tax	3,995	7,812	7,822
Current tax provision (benefit):
U.S.	18	405	179
Non-U.S.	1,031	1,261	1,291
State (U.S.)	31	52	8
Current tax provision (benefit)	1,080	1,718	1,478
Deferred tax provision (benefit):
U.S.	(44)	17	298
Non-U.S.	(34)	(7)	4
State (U.S.)	4	18	(82)
Deferred tax provision (benefit)	(74)	28	220
Provision (benefit) for income taxes	1,006	1,746	1,698
Income Taxes Paid	$ 1,311	$ 1,847	$ 1,429

Income taxes (Details 4)

Income taxes (Details 4) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets
Noncurrent deferred and refundable income taxes	$ 1,358	$ 1,324
Deferred tax liabilities
Other liabilities	418	414
Deferred income taxes-net	$ 940	$ 910

Income taxes (Details 5)

Income taxes (Details 5) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Deferred income tax assets:
Tax carryforwards	$ 1,346	$ 1,218
Postemployment benefits other than pensions	919	876
Pension	396	445
Warranty reserves	247	263
Research Expenditures	193	219
Allowance for credit losses	126	171
Post sale discounts	153	200
Other employee compensation and benefits	186	197
Lease Obligations	154	157
Stock-based compensation	81	107
Other-net	317	250
Deferred income tax assets, Total	4,118	4,103
Deferred income tax liabilities:
Capital and intangible assets, including lease basis differences	(1,526)	(1,574)
Bond discount	(117)	(122)
Translation	(147)	(194)
Other outside basis differences	(284)	(257)
Undistributed profits of non-U.S. subsidiaries	(95)	(118)
Deferred income tax liabilities, Total	(2,169)	(2,265)
Valuation allowance for deferred tax assets	(1,009)	(928)
Deferred income taxes-net	$ 940	$ 910

Income taxes (Details 6)

Income taxes (Details 6) - USD ($) $ in Millions	12 Months Ended
Income taxes (Details 6) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Operating loss and Tax credit carryforwards
Valuation allowance for deferred tax assets	$ 1,009	$ 928
Deferred Tax Assets, Tax Credit Carryforwards, Foreign	$ 350
U.S. state taxing jurisdictions
Operating loss and Tax credit carryforwards
Primary period of net operating loss carryforward expiration, years	twenty years
State tax credit carryforward expiration, over period of years, and unlimited	fifteen years
U.S. state taxing jurisdictions \| Primarily over the next 20 years
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	$ 1,399
Valuation allowance for deferred tax assets	183
U.S. state taxing jurisdictions \| Expiration date next one to fifteen years
Operating loss and Tax credit carryforwards
Tax credit carryforwards	139
Non-U.S. taxing jurisdictions
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	4,963
Valuation allowance for deferred tax assets	803
Non-U.S. taxing jurisdictions \| 2021
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	45
Non-U.S. taxing jurisdictions \| 2022
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	81
Non-U.S. taxing jurisdictions \| 2023
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	10
Non-U.S. taxing jurisdictions \| 2024-2026
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	79
Non-U.S. taxing jurisdictions \| 2027-2041
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	819
Non-U.S. taxing jurisdictions \| Unlimited
Operating loss and Tax credit carryforwards
Net operating loss carryforwards	$ 3,929

Income taxes (Details 7)

Income taxes (Details 7) - USD ($) $ in Millions	12 Months Ended
Income taxes (Details 7) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits
Unrecognized tax benefits, beginning	$ 1,778	$ 1,796	$ 1,286
Additions for tax positions related to current year	44	72	61
Additions for tax positions related to prior years	46	112	461
Reductions for tax positions related to prior years	(12)	(201)	(5)
Reductions for settlements	(94)	0	(6)
Reductions for expiration of statute of limitations	(3)	(1)	(1)
Unrecognized tax benefits, ending	1,759	1,778	1,796
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	1,657	1,616	1,716
Net provision for interest and penalties	38	43	$ 42
Interest and penalties, accrued	264	$ 233
Income tax examination, proposed liability increase/(decrease)	$ 2,300

Cat Financial Financing Activ_3

Cat Financial Financing Activities (Details A Wholesale inventory) - Wholesale receivables - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Contractual maturities of wholesale inventory receivables
2021	$ 568
2022	278
2023	168
2024	82
2025	36
Thereafter	14
Total	1,146
Guaranteed residual value	87
Unguaranteed residual value	35
Less: Unearned Income	(35)
Total	1,233	$ 1,401
Wholesale loans
Contractual maturities of wholesale inventory receivables
2021	516
2022	241
2023	141
2024	62
2025	23
Thereafter	10
Total	993
Guaranteed residual value	51
Unguaranteed residual value	2
Less: Unearned Income	(11)
Total	1,035
Wholesale Leases
Contractual maturities of wholesale inventory receivables
2021	52
2022	37
2023	27
2024	20
2025	13
Thereafter	4
Total	153
Guaranteed residual value	36
Unguaranteed residual value	33
Less: Unearned Income	(24)
Total	$ 198

Cat Financial Financing Activ_4

Cat Financial Financing Activities (Details B Finance Receivable) - Finance Receivables - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Contractual maturities of outstanding finance receivables
2021	$ 9,527
2022	5,649
2023	3,728
2024	1,845
2025	635
Thereafter	440
Total	21,824
Guaranteed residual value	456
Unguaranteed residual value	773
Less: Unearned Income	(893)
Total	22,160	$ 22,397
Retail loans
Contractual maturities of outstanding finance receivables
2021	6,305
2022	3,617
2023	2,621
2024	1,378
2025	464
Thereafter	384
Total	14,769
Guaranteed residual value	44
Unguaranteed residual value	2
Less: Unearned Income	(280)
Total	14,535
Retail Leases
Contractual maturities of outstanding finance receivables
2021	3,222
2022	2,032
2023	1,107
2024	467
2025	171
Thereafter	56
Total	7,055
Guaranteed residual value	412
Unguaranteed residual value	771
Less: Unearned Income	(613)
Total	$ 7,625

Cat Financial Financing Activ_5

Cat Financial Financing Activities (Details C Allowance for credit losses) - Finance Receivables - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Allowance for credit loss activity:
Balance at beginning of year	$ 420	$ 507
Receivables written off	(263)	(281)
Recoveries on receivables previously written off	41	44
Provision for credit losses	261	162
Other	4	(12)
Balance at end of year	475	420
Allowance for Credit Losses:
Individually evaluated			$ 226	$ 217
Collectively evaluated			249	203
Ending Balance	475	507	475	420
Finance Receivables:
Individually evaluated			672	672
Collectively evaluated			21,488	21,725
Total			22,160	22,397
Cumulative Effect, Period of Adoption, Adjustment [Member] \| Credit losses
Allowance for credit loss activity:
Balance at beginning of year	12
Balance at end of year		12
Allowance for Credit Losses:
Ending Balance	12	12		12
Customer
Allowance for credit loss activity:
Balance at beginning of year	375	486
Receivables written off	(263)	(281)
Recoveries on receivables previously written off	41	44
Provision for credit losses	262	138
Other	4	(12)
Balance at end of year	431	375
Allowance for Credit Losses:
Individually evaluated			187	178
Collectively evaluated			244	197
Ending Balance	375	375	431	375
Finance Receivables:
Individually evaluated			594	594
Collectively evaluated			18,644	18,093
Total			19,238	18,687
Customer \| Cumulative Effect, Period of Adoption, Adjustment [Member] \| Credit losses
Allowance for credit loss activity:
Balance at beginning of year	12
Balance at end of year		12
Allowance for Credit Losses:
Ending Balance	12	12		12
Dealer
Allowance for credit loss activity:
Balance at beginning of year	45	21
Receivables written off	0	0
Recoveries on receivables previously written off	0	0
Provision for credit losses	(1)	24
Other	0	0
Balance at end of year	44	45
Allowance for Credit Losses:
Individually evaluated			39	39
Collectively evaluated			5	6
Ending Balance	44	21	44	45
Finance Receivables:
Individually evaluated			78	78
Collectively evaluated			2,844	3,632
Total			$ 2,922	3,710
Dealer \| Cumulative Effect, Period of Adoption, Adjustment [Member] \| Credit losses
Allowance for credit loss activity:
Balance at beginning of year	0
Balance at end of year		0
Allowance for Credit Losses:
Ending Balance	$ 0	$ 0		$ 0

Cat Financial Financing Activ_6

Cat Financial Financing Activities Cat Financing Activities (Details 2 Credit quality- Customer Receivables Aging by origination year -Vintage disclosure) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Receivables [Abstract]
Period after which Unpaid Installments are Considered as Past Due	30 days
Dealer \| Latin America \| 91+ days past due
Financing Receivable, Credit Quality Indicator
2017	$ 78
Prior	3
Finance Receivables
Financing Receivable, Credit Quality Indicator
Total	22,160	$ 22,397
Finance Receivables \| Customer
Financing Receivable, Credit Quality Indicator
2020	8,162
2019	5,403
2018	2,901
2017	1,357
2016	575
Prior	492
Revolving Finance Receivables	348
Total	19,238	18,687
Finance Receivables \| Customer \| North America
Financing Receivable, Credit Quality Indicator
Total		8,152
Finance Receivables \| Customer \| North America \| Current
Financing Receivable, Credit Quality Indicator
2020	3,777
2019	2,423
2018	1,344
2017	522
2016	212
Prior	27
Revolving Finance Receivables	89
Total	8,394
Finance Receivables \| Customer \| North America \| 31 to 60 Days Past Due
Financing Receivable, Credit Quality Indicator
2020	52
2019	49
2018	33
2017	16
2016	7
Prior	2
Revolving Finance Receivables	0
Total	159
Finance Receivables \| Customer \| North America \| 61 to 90 Days Past Due
Financing Receivable, Credit Quality Indicator
2020	22
2019	25
2018	16
2017	9
2016	2
Prior	1
Revolving Finance Receivables	0
Total	75
Finance Receivables \| Customer \| North America \| 91+ days past due
Financing Receivable, Credit Quality Indicator
2020	14
2019	35
2018	31
2017	20
2016	9
Prior	4
Revolving Finance Receivables	2
Total	115
Finance Receivables \| Customer \| EAME
Financing Receivable, Credit Quality Indicator
Total		3,084
Finance Receivables \| Customer \| EAME \| Current
Financing Receivable, Credit Quality Indicator
2020	1,605
2019	931
2018	501
2017	203
2016	60
Prior	18
Revolving Finance Receivables	0
Total	3,318
Finance Receivables \| Customer \| EAME \| 31 to 60 Days Past Due
Financing Receivable, Credit Quality Indicator
2020	5
2019	15
2018	3
2017	2
2016	0
Prior	0
Revolving Finance Receivables	0
Total	25
Finance Receivables \| Customer \| EAME \| 61 to 90 Days Past Due
Financing Receivable, Credit Quality Indicator
2020	1
2019	1
2018	2
2017	1
2016	0
Prior	0
Revolving Finance Receivables	0
Total	5
Finance Receivables \| Customer \| EAME \| 91+ days past due
Financing Receivable, Credit Quality Indicator
2020	7
2019	7
2018	12
2017	4
2016	39
Prior	43
Revolving Finance Receivables	0
Total	112
Finance Receivables \| Customer \| Asia/Pacific
Financing Receivable, Credit Quality Indicator
Total		2,264
Finance Receivables \| Customer \| Asia/Pacific \| Current
Financing Receivable, Credit Quality Indicator
2020	1,375
2019	745
2018	321
2017	61
2016	10
Prior	3
Revolving Finance Receivables	0
Total	2,515
Finance Receivables \| Customer \| Asia/Pacific \| 31 to 60 Days Past Due
Financing Receivable, Credit Quality Indicator
2020	12
2019	22
2018	13
2017	6
2016	0
Prior	0
Revolving Finance Receivables	0
Total	53
Finance Receivables \| Customer \| Asia/Pacific \| 61 to 90 Days Past Due
Financing Receivable, Credit Quality Indicator
2020	7
2019	11
2018	7
2017	1
2016	0
Prior	0
Revolving Finance Receivables	0
Total	26
Finance Receivables \| Customer \| Asia/Pacific \| 91+ days past due
Financing Receivable, Credit Quality Indicator
2020	4
2019	10
2018	9
2017	3
2016	0
Prior	0
Revolving Finance Receivables	0
Total	26
Finance Receivables \| Customer \| Mining
Financing Receivable, Credit Quality Indicator
Total		2,290
Finance Receivables \| Customer \| Mining \| Current
Financing Receivable, Credit Quality Indicator
2020	490
2019	571
2018	287
2017	152
2016	92
Prior	151
Revolving Finance Receivables	137
Total	1,880
Finance Receivables \| Customer \| Mining \| 31 to 60 Days Past Due
Financing Receivable, Credit Quality Indicator
2020	5
2019	0
2018	5
2017	1
2016	0
Prior	0
Revolving Finance Receivables	0
Total	11
Finance Receivables \| Customer \| Mining \| 61 to 90 Days Past Due
Financing Receivable, Credit Quality Indicator
2020	0
2019	0
2018	0
2017	0
2016	0
Prior	0
Revolving Finance Receivables	0
Total	0
Finance Receivables \| Customer \| Mining \| 91+ days past due
Financing Receivable, Credit Quality Indicator
2020	0
2019	11
2018	8
2017	2
2016	0
Prior	0
Revolving Finance Receivables	1
Total	22
Finance Receivables \| Customer \| Latin America
Financing Receivable, Credit Quality Indicator
Total		1,233
Finance Receivables \| Customer \| Latin America \| Current
Financing Receivable, Credit Quality Indicator
2020	561
2019	348
2018	151
2017	48
2016	13
Prior	34
Revolving Finance Receivables	0
Total	1,155
Finance Receivables \| Customer \| Latin America \| 31 to 60 Days Past Due
Financing Receivable, Credit Quality Indicator
2020	3
2019	6
2018	4
2017	3
2016	0
Prior	0
Revolving Finance Receivables	0
Total	16
Finance Receivables \| Customer \| Latin America \| 61 to 90 Days Past Due
Financing Receivable, Credit Quality Indicator
2020	1
2019	7
2018	6
2017	3
2016	2
Prior	0
Revolving Finance Receivables	0
Total	19
Finance Receivables \| Customer \| Latin America \| 91+ days past due
Financing Receivable, Credit Quality Indicator
2020	2
2019	14
2018	11
2017	24
2016	5
Prior	4
Revolving Finance Receivables	0
Total	60
Finance Receivables \| Customer \| Caterpillar Power Finance
Financing Receivable, Credit Quality Indicator
Total		1,664
Finance Receivables \| Customer \| Caterpillar Power Finance \| Current
Financing Receivable, Credit Quality Indicator
2020	217
2019	172
2018	111
2017	273
2016	99
Prior	117
Revolving Finance Receivables	119
Total	1,108
Finance Receivables \| Customer \| Caterpillar Power Finance \| 31 to 60 Days Past Due
Financing Receivable, Credit Quality Indicator
2020	0
2019	0
2018	6
2017	0
2016	0
Prior	0
Revolving Finance Receivables	0
Total	6
Finance Receivables \| Customer \| Caterpillar Power Finance \| 61 to 90 Days Past Due
Financing Receivable, Credit Quality Indicator
2020	0
2019	0
2018	0
2017	0
2016	0
Prior	9
Revolving Finance Receivables	0
Total	9
Finance Receivables \| Customer \| Caterpillar Power Finance \| 91+ days past due
Financing Receivable, Credit Quality Indicator
2020	2
2019	0
2018	20
2017	3
2016	25
Prior	79
Revolving Finance Receivables	0
Total	129
Finance Receivables \| Dealer
Financing Receivable, Credit Quality Indicator
Total	2,922	3,710
Finance Receivables \| Dealer \| North America
Financing Receivable, Credit Quality Indicator
Total		2,136
Finance Receivables \| Dealer \| EAME
Financing Receivable, Credit Quality Indicator
Total		342
Finance Receivables \| Dealer \| Asia/Pacific
Financing Receivable, Credit Quality Indicator
Total		437
Finance Receivables \| Dealer \| Mining
Financing Receivable, Credit Quality Indicator
Total		4
Finance Receivables \| Dealer \| Latin America
Financing Receivable, Credit Quality Indicator
Total		790
Finance Receivables \| Dealer \| Latin America \| 91+ days past due
Financing Receivable, Credit Quality Indicator
Total	$ 81
Finance Receivables \| Dealer \| Caterpillar Power Finance
Financing Receivable, Credit Quality Indicator
Total		$ 1

Cat Financial Financing Activ_7

Cat Financial Financing Activities (Details 3 Credit quality of finance receivables) - Finance Receivables - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Total Past Due		$ 926
Current		21,471
Total Finance Receivables	$ 22,160	22,397
31 to 60 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		198
61 to 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		101
91 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		627
Customer
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	19,238	18,687
Customer \| North America
Financing Receivable, Past Due [Line Items]
Total Past Due		150
Current		8,002
Total Finance Receivables		8,152
Customer \| North America \| 31 to 60 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		72
Customer \| North America \| 61 to 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		23
Customer \| North America \| 91 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		55
Customer \| EAME
Financing Receivable, Past Due [Line Items]
Total Past Due		202
Current		2,882
Total Finance Receivables		3,084
Customer \| EAME \| 31 to 60 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		30
Customer \| EAME \| 61 to 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		31
Customer \| EAME \| 91 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		141
Customer \| Asia/Pacific
Financing Receivable, Past Due [Line Items]
Total Past Due		83
Current		2,181
Total Finance Receivables		2,264
Customer \| Asia/Pacific \| 31 to 60 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		40
Customer \| Asia/Pacific \| 61 to 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		14
Customer \| Asia/Pacific \| 91 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		29
Customer \| Mining
Financing Receivable, Past Due [Line Items]
Total Past Due		24
Current		2,266
Total Finance Receivables		2,290
Customer \| Mining \| 31 to 60 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		5
Customer \| Mining \| 61 to 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Customer \| Mining \| 91 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		19
Customer \| Latin America
Financing Receivable, Past Due [Line Items]
Total Past Due		144
Current		1,089
Total Finance Receivables		1,233
Customer \| Latin America \| 31 to 60 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		41
Customer \| Latin America \| 61 to 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		23
Customer \| Latin America \| 91 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		80
Customer \| Caterpillar Power Finance
Financing Receivable, Past Due [Line Items]
Total Past Due		245
Current		1,419
Total Finance Receivables		1,664
Customer \| Caterpillar Power Finance \| 31 to 60 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		10
Customer \| Caterpillar Power Finance \| 61 to 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		10
Customer \| Caterpillar Power Finance \| 91 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		225
Dealer
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	$ 2,922	3,710
Dealer \| North America
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Current		2,136
Total Finance Receivables		2,136
Dealer \| North America \| 31 to 60 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Dealer \| North America \| 61 to 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Dealer \| North America \| 91 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Dealer \| EAME
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Current		342
Total Finance Receivables		342
Dealer \| EAME \| 31 to 60 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Dealer \| EAME \| 61 to 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Dealer \| EAME \| 91 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Dealer \| Asia/Pacific
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Current		437
Total Finance Receivables		437
Dealer \| Asia/Pacific \| 31 to 60 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Dealer \| Asia/Pacific \| 61 to 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Dealer \| Asia/Pacific \| 91 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Dealer \| Mining
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Current		4
Total Finance Receivables		4
Dealer \| Mining \| 31 to 60 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Dealer \| Mining \| 61 to 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Dealer \| Mining \| 91 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Dealer \| Latin America
Financing Receivable, Past Due [Line Items]
Total Past Due		78
Current		712
Total Finance Receivables		790
Dealer \| Latin America \| 31 to 60 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Dealer \| Latin America \| 61 to 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Dealer \| Latin America \| 91 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		78
Dealer \| Caterpillar Power Finance
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Current		1
Total Finance Receivables		1
Dealer \| Caterpillar Power Finance \| 31 to 60 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Dealer \| Caterpillar Power Finance \| 61 to 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		0
Dealer \| Caterpillar Power Finance \| 91 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due		$ 0

Cat Financial Financing Activ_8

Cat Financial Financing Activities (Details 4 impaired finance receivable) - Finance Receivables - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Customer
Impaired finance receivables
Recorded Investment With No Allowance Recorded	$ 94
Unpaid Principal Balance With No Allowance Recorded	94
Related Allowance With No Allowance Recorded	0
Recorded Investment With An Allowance Recorded	500
Unpaid Principal Balance With An Allowance Recorded	512
Related Allowance With An Allowance Recorded	178
Recorded Investment, Total	594
Unpaid Principal Balance, Total	606
Related Allowance	178
Average Recorded Investment With No Allowance Recorded	117	$ 282
Interest Income Recognized With No Allowance Recorded	5	15
Average Recorded Investment With An Allowance Recorded	640	597
Interest Income Recognized With An Allowance Recorded	23	22
Average Recorded Investment, Total	757	879
Interest Income Recognized, Total	28	37
Customer \| North America
Impaired finance receivables
Recorded Investment With No Allowance Recorded	6
Unpaid Principal Balance With No Allowance Recorded	6
Related Allowance With No Allowance Recorded	0
Recorded Investment With An Allowance Recorded	30
Unpaid Principal Balance With An Allowance Recorded	30
Related Allowance With An Allowance Recorded	11
Recorded Investment, Total	36
Unpaid Principal Balance, Total	36
Related Allowance	11
Average Recorded Investment With No Allowance Recorded	9	16
Interest Income Recognized With No Allowance Recorded	0	1
Average Recorded Investment With An Allowance Recorded	34	49
Interest Income Recognized With An Allowance Recorded	2	2
Average Recorded Investment, Total	43	65
Interest Income Recognized, Total	2	3
Customer \| EAME
Impaired finance receivables
Recorded Investment With No Allowance Recorded	0
Unpaid Principal Balance With No Allowance Recorded	0
Related Allowance With No Allowance Recorded	0
Recorded Investment With An Allowance Recorded	61
Unpaid Principal Balance With An Allowance Recorded	61
Related Allowance With An Allowance Recorded	29
Recorded Investment, Total	61
Unpaid Principal Balance, Total	61
Related Allowance	29
Average Recorded Investment With No Allowance Recorded	6	14
Interest Income Recognized With No Allowance Recorded	0	0
Average Recorded Investment With An Allowance Recorded	81	53
Interest Income Recognized With An Allowance Recorded	2	2
Average Recorded Investment, Total	87	67
Interest Income Recognized, Total	2	2
Customer \| Asia/Pacific
Impaired finance receivables
Recorded Investment With No Allowance Recorded	0
Unpaid Principal Balance With No Allowance Recorded	0
Related Allowance With No Allowance Recorded	0
Recorded Investment With An Allowance Recorded	8
Unpaid Principal Balance With An Allowance Recorded	8
Related Allowance With An Allowance Recorded	2
Recorded Investment, Total	8
Unpaid Principal Balance, Total	8
Related Allowance	2
Average Recorded Investment With No Allowance Recorded	0	27
Interest Income Recognized With No Allowance Recorded	0	3
Average Recorded Investment With An Allowance Recorded	9	4
Interest Income Recognized With An Allowance Recorded	1	0
Average Recorded Investment, Total	9	31
Interest Income Recognized, Total	1	3
Customer \| Mining
Impaired finance receivables
Recorded Investment With No Allowance Recorded	22
Unpaid Principal Balance With No Allowance Recorded	22
Related Allowance With No Allowance Recorded	0
Recorded Investment With An Allowance Recorded	37
Unpaid Principal Balance With An Allowance Recorded	36
Related Allowance With An Allowance Recorded	9
Recorded Investment, Total	59
Unpaid Principal Balance, Total	58
Related Allowance	9
Average Recorded Investment With No Allowance Recorded	27	57
Interest Income Recognized With No Allowance Recorded	1	2
Average Recorded Investment With An Allowance Recorded	48	46
Interest Income Recognized With An Allowance Recorded	2	3
Average Recorded Investment, Total	75	103
Interest Income Recognized, Total	3	5
Customer \| Latin America
Impaired finance receivables
Recorded Investment With No Allowance Recorded	8
Unpaid Principal Balance With No Allowance Recorded	8
Related Allowance With No Allowance Recorded	0
Recorded Investment With An Allowance Recorded	58
Unpaid Principal Balance With An Allowance Recorded	58
Related Allowance With An Allowance Recorded	20
Recorded Investment, Total	66
Unpaid Principal Balance, Total	66
Related Allowance	20
Average Recorded Investment With No Allowance Recorded	21	38
Interest Income Recognized With No Allowance Recorded	1	2
Average Recorded Investment With An Allowance Recorded	72	67
Interest Income Recognized With An Allowance Recorded	5	3
Average Recorded Investment, Total	93	105
Interest Income Recognized, Total	6	5
Customer \| Caterpillar Power Finance
Impaired finance receivables
Recorded Investment With No Allowance Recorded	58
Unpaid Principal Balance With No Allowance Recorded	58
Related Allowance With No Allowance Recorded	0
Recorded Investment With An Allowance Recorded	306
Unpaid Principal Balance With An Allowance Recorded	319
Related Allowance With An Allowance Recorded	107
Recorded Investment, Total	364
Unpaid Principal Balance, Total	377
Related Allowance	107
Average Recorded Investment With No Allowance Recorded	54	130
Interest Income Recognized With No Allowance Recorded	3	7
Average Recorded Investment With An Allowance Recorded	396	378
Interest Income Recognized With An Allowance Recorded	11	12
Average Recorded Investment, Total	450	508
Interest Income Recognized, Total	14	$ 19
Dealer \| Latin America
Impaired finance receivables
Related Allowance With An Allowance Recorded	39
Recorded Investment, Total	78
Related Allowance	$ 39

Cat Financial Financing Activ_9

Cat Financial Financing Activities (Details 5 Non-accrual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Receivables [Abstract]
Period after which Collection of Future Income is Considered as Not Probable	120 days
Dealer
Financing Receivable, Nonaccrual [Line Items]
Interest income recognized for finance receivables on non-accrual status	$ 0
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	81	$ 78
Customer
Financing Receivable, Nonaccrual [Line Items]
Interest income recognized for finance receivables on non-accrual status	12
Finance Receivables \| Dealer
Financing Receivable, Nonaccrual [Line Items]
91+ Still Accruing	0
Finance Receivables \| Customer
Financing Receivable, Nonaccrual [Line Items]
Amortized Cost, Non-accrual With an Allowance	466
Amortized Cost, Non-accrual Without an Allowance	20
91+ Still Accruing	49	29
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest		727
Finance Receivables \| North America \| Customer
Financing Receivable, Nonaccrual [Line Items]
Amortized Cost, Non-accrual With an Allowance	86
Amortized Cost, Non-accrual Without an Allowance	1
91+ Still Accruing	34	15
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest		44
Finance Receivables \| EAME \| Customer
Financing Receivable, Nonaccrual [Line Items]
Amortized Cost, Non-accrual With an Allowance	113
Amortized Cost, Non-accrual Without an Allowance	1
91+ Still Accruing	1	4
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest		165
Finance Receivables \| Asia/Pacific \| Customer
Financing Receivable, Nonaccrual [Line Items]
Amortized Cost, Non-accrual With an Allowance	13
Amortized Cost, Non-accrual Without an Allowance	0
91+ Still Accruing	13	8
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest		21
Finance Receivables \| Mining \| Customer
Financing Receivable, Nonaccrual [Line Items]
Amortized Cost, Non-accrual With an Allowance	21
Amortized Cost, Non-accrual Without an Allowance	1
91+ Still Accruing	0	0
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest		47
Finance Receivables \| Latin America \| Customer
Financing Receivable, Nonaccrual [Line Items]
Amortized Cost, Non-accrual With an Allowance	63
Amortized Cost, Non-accrual Without an Allowance	0
91+ Still Accruing	1	2
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest		89
Finance Receivables \| Caterpillar Power Finance \| Customer
Financing Receivable, Nonaccrual [Line Items]
Amortized Cost, Non-accrual With an Allowance	170
Amortized Cost, Non-accrual Without an Allowance	17
91+ Still Accruing	$ 0	0
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest		$ 361

Cat Financial Financing Acti_10

Cat Financial Financing Activities (Details 6 TDR) $ in Millions	12 Months Ended
	Dec. 31, 2020USD ($)Contracts	Dec. 31, 2019USD ($)Contracts	Dec. 31, 2018USD ($)Contracts
Finance Receivables \| Customer
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) \| Contracts	389	62	52
Pre-TDR Outstanding Recorded Investment	$ 220	$ 209	$ 186
Post-TDR Outstanding Recorded Investment	$ 220	$ 204	$ 152
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) \| Contracts	60	12	16
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 49	$ 15	$ 44
Finance Receivables \| Customer \| North America
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) \| Contracts	40	15	38
Pre-TDR Outstanding Recorded Investment	$ 13	$ 11	$ 21
Post-TDR Outstanding Recorded Investment	$ 13	$ 11	$ 21
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) \| Contracts	4	11	10
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 8	$ 5	$ 10
Finance Receivables \| Customer \| EAME
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) \| Contracts	4	19	0
Pre-TDR Outstanding Recorded Investment	$ 0	$ 17	$ 0
Post-TDR Outstanding Recorded Investment	$ 0	$ 17	$ 0
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) \| Contracts	2	0	0
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 10	$ 0	$ 0
Finance Receivables \| Customer \| Asia/Pacific
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) \| Contracts	183	0	0
Pre-TDR Outstanding Recorded Investment	$ 12	$ 0	$ 0
Post-TDR Outstanding Recorded Investment	$ 12	$ 0	$ 0
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) \| Contracts	27	0	0
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 2	$ 0	$ 0
Finance Receivables \| Customer \| Mining
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) \| Contracts	63	2	1
Pre-TDR Outstanding Recorded Investment	$ 35	$ 8	$ 29
Post-TDR Outstanding Recorded Investment	$ 35	$ 8	$ 29
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) \| Contracts	21	0	0
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 10	$ 0	$ 0
Finance Receivables \| Customer \| Latin America
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) \| Contracts	77	5	1
Pre-TDR Outstanding Recorded Investment	$ 45	$ 5	$ 3
Post-TDR Outstanding Recorded Investment	$ 45	$ 3	$ 3
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) \| Contracts	4	0	3
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 1	$ 0	$ 1
Finance Receivables \| Customer \| Caterpillar Power Finance
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) \| Contracts	22	21	12
Pre-TDR Outstanding Recorded Investment	$ 115	$ 168	$ 133
Post-TDR Outstanding Recorded Investment	$ 115	$ 165	$ 99
TDRs with a payment default which had been modified within twelve months prior to the default date
Number of Contracts (in contracts) \| Contracts	2	1	3
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 18	$ 10	$ 33
Finance Receivables \| Dealer
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts)	0	0	0
Significant Amount of Amount Disclosed Represented by a Certain Number of Customers (Seven) [Member] \| Customer \| Asia/Pacific
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) \| Contracts	183
Pre-TDR Outstanding Recorded Investment	$ 12
Post-TDR Outstanding Recorded Investment	$ 12
Significant Amount of Amount Disclosed Represented by a Certain Number of Customers (Five) [Member] \| Customer \| Mining
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) \| Contracts	63
Pre-TDR Outstanding Recorded Investment	$ 35
Post-TDR Outstanding Recorded Investment	$ 35
Significant Amount of Amount Disclosed Represented by a Certain Number of Customers (Ten) [Member] \| Customer \| Latin America
Loan and finance lease receivables modified as TDRs
Number of Contracts (in contracts) \| Contracts	77
Pre-TDR Outstanding Recorded Investment	$ 45
Post-TDR Outstanding Recorded Investment	$ 45

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	12 Months Ended
Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Percentage of LIFO Inventory	60.00%
Raw materials	$ 4,021	$ 4,263
Work-in-process	1,052	1,147
Finished goods	6,054	5,598
Supplies	275	258
Total inventories	11,402	$ 11,266
Long-term material purchase obligations	$ 309

Property, plant and equipment_2

Property, plant and equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Property, plant and equipment
Total property, plant and equipment, at cost	$ 29,271	$ 29,217
Less: Accumulated depreciation	(16,870)	(16,313)
Property, plant and equipment - net	12,401	12,904
Land
Property, plant and equipment
Total property, plant and equipment, at cost	681	664
Buildings and land improvements
Property, plant and equipment
Total property, plant and equipment, at cost	7,091	6,710
Machinery, equipment and other
Property, plant and equipment
Total property, plant and equipment, at cost	13,004	13,287
Software
Property, plant and equipment
Total property, plant and equipment, at cost	1,679	1,728
Equipment leased to others
Property, plant and equipment
Total property, plant and equipment, at cost	6,077	6,208
Construction-in-process
Property, plant and equipment
Total property, plant and equipment, at cost	$ 739	$ 620
Minimum \| Buildings and land improvements
Property, plant and equipment
Useful Lives (Years)	20 years
Minimum \| Machinery, equipment and other
Property, plant and equipment
Useful Lives (Years)	2 years
Minimum \| Software
Property, plant and equipment
Useful Lives (Years)	3 years
Minimum \| Equipment leased to others
Property, plant and equipment
Useful Lives (Years)	1 year
Maximum \| Buildings and land improvements
Property, plant and equipment
Useful Lives (Years)	45 years
Maximum \| Machinery, equipment and other
Property, plant and equipment
Useful Lives (Years)	10 years
Maximum \| Software
Property, plant and equipment
Useful Lives (Years)	7 years
Maximum \| Equipment leased to others
Property, plant and equipment
Useful Lives (Years)	7 years

Intangible assets and goodwil_2

Intangible assets and goodwill (Details Intangible assets) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Intangible assets by major class
Weighted Amortizable Life (in years)	14 years	14 years
Gross Carrying Amount	$ 4,096	$ 4,151
Accumulated Amortization	(2,788)	(2,586)
Net	1,308	1,565
Amortization expense	311	$ 324	$ 331
Intangible Assets, Expected Amortization Expense
2021	300
2022	282
2023	223
2024	165
2025	155
Thereafter	$ 183
Customer relationships
Intangible assets by major class
Weighted Amortizable Life (in years)	15 years	15 years
Gross Carrying Amount	$ 2,493	$ 2,450
Accumulated Amortization	(1,600)	(1,406)
Net	$ 893	$ 1,044
Intellectual property
Intangible assets by major class
Weighted Amortizable Life (in years)	12 years	12 years
Gross Carrying Amount	$ 1,439	$ 1,510
Accumulated Amortization	(1,073)	(1,055)
Net	$ 366	$ 455
Other
Intangible assets by major class
Weighted Amortizable Life (in years)	14 years	13 years
Gross Carrying Amount	$ 164	$ 191
Accumulated Amortization	(115)	(125)
Net	$ 49	$ 66

Intangible assets and goodwil_3

Intangible assets and goodwill (Details 2 Goodwill) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill by reportable segment
Goodwill impairment charge	$ 0	$ 0	$ 0
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of year	7,393	7,414
Impairments, beginning of year	(1,197)	(1,197)
Goodwill, Acquired	41	0
Other Adjustments	157	(21)
Goodwill, end of year	7,591	7,393	7,414
Impairments, end of year	(1,197)	(1,197)	(1,197)
Net goodwill, end of year	6,394	6,196	6,217
Net goodwill, beginning of year	6,196	6,217
Construction Industries
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of year	306	304
Impairments, beginning of year	(22)	(22)
Goodwill, Acquired	0	0
Other Adjustments	14	2
Goodwill, end of year	320	306	304
Impairments, end of year	(22)	(22)	(22)
Net goodwill, end of year	298	284	282
Net goodwill, beginning of year	284	282
Resource Industries
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of year	4,156	4,172
Impairments, beginning of year	(1,175)	(1,175)
Goodwill, Acquired	0	0
Other Adjustments	97	(16)
Goodwill, end of year	4,253	4,156	4,172
Impairments, end of year	(1,175)	(1,175)	(1,175)
Net goodwill, end of year	3,078	2,981	2,997
Net goodwill, beginning of year	2,981	2,997
Energy & Transportation
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of year	2,875	2,882
Goodwill, Acquired	41	0
Other Adjustments	43	(7)
Goodwill, end of year	2,959	2,875	2,882
All Other
Changes in carrying amount of goodwill by reportable segment:
Goodwill, beginning of year	56	56
Goodwill, Acquired	0	0
Other Adjustments	3	0
Goodwill, end of year	$ 59	$ 56	$ 56

Investments in debt and equit_3

Investments in debt and equity securities (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Schedule of Debt and Equity Securities
Cost Basis	$ 1,613	$ 1,340
Unrealized Pretax Net Gains (Losses)	70	25
Fair Value	1,683	1,365
Government debt - U.S. treasury bonds
Schedule of Debt and Equity Securities
Cost Basis	10	9
Unrealized Pretax Net Gains (Losses)	0	0
Fair Value	10	9
Other U.S. and non-U.S. government bonds
Schedule of Debt and Equity Securities
Cost Basis	58	54
Unrealized Pretax Net Gains (Losses)	1	0
Fair Value	59	54
Corporate bonds
Schedule of Debt and Equity Securities
Cost Basis	962	836
Unrealized Pretax Net Gains (Losses)	50	20
Fair Value	1,012	856
Corporate bonds - Asset-backed securities
Schedule of Debt and Equity Securities
Cost Basis	156	62
Unrealized Pretax Net Gains (Losses)	3	0
Fair Value	159	62
U.S. governmental agency mortgage-backed securities
Schedule of Debt and Equity Securities
Cost Basis	362	327
Unrealized Pretax Net Gains (Losses)	12	4
Fair Value	374	331
Mortgage-backed securities - Residential
Schedule of Debt and Equity Securities
Cost Basis	5	6
Unrealized Pretax Net Gains (Losses)	0	0
Fair Value	5	6
Mortgage-backed securities - Commercial
Schedule of Debt and Equity Securities
Cost Basis	60	46
Unrealized Pretax Net Gains (Losses)	4	1
Fair Value	$ 64	$ 47

Investments in debt and equit_4

Investments in debt and equity securities (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Due in one year or less, Cost Basis	$ 135
Due after one year through five years, Cost Basis	702
Due after five years through ten years, Cost Basis	279
Due after ten years, Cost Basis	70
Due in one year or less, Fair Value	136
Due after one year through five years, Fair Value	737
Due after five years through ten years, Fair Value	295
Due after ten years, Fair Value	72
Cost Basis	1,613	$ 1,340
Fair Value	1,683	1,365
Schedule of Debt and Equity Securities
Proceeds from Sale of Debt Securities, Available-for-sale	290	260	$ 247
Available-for-sale Securities, Proceeds, Gains and Losses
Debt Securities, Available-for-sale, Realized Gain	2	1	0
Debt Securities, Available-for-sale, Realized Loss	1	1	$ 0
Unrealized gain (loss) on equity securities held on report date	47	29
U.S. governmental agency mortgage-backed securities
Investments, Debt and Equity Securities [Abstract]
Cost Basis	362	327
Fair Value	374	331
Mortgage-backed securities - Residential
Investments, Debt and Equity Securities [Abstract]
Cost Basis	5	6
Fair Value	5	6
Mortgage-backed securities - Commercial
Investments, Debt and Equity Securities [Abstract]
Cost Basis	60	46
Fair Value	$ 64	$ 47

Postemployment benefit plans (D

Postemployment benefit plans (Details A 1) - USD ($) $ in Millions	3 Months Ended					12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Change in benefit obligation:
Actuarial losses (gains)	$ 438	$ 77	$ 122	$ (254)	$ 468	$ 383	$ 468	$ 495
Components of net amount recognized in financial position:
Liability for postemployment benefits	$ 6,872				$ 6,599	$ 6,872	$ 6,599
U.S. pensions
Weighted-average assumptions used to determine benefit obligation, end of year:
Discount rate (as a percent)	2.40%				3.20%	2.40%	3.20%
Rate of compensation increase (as a percent)	0.00%				0.00%	0.00%	0.00%
Accumulated benefit obligation, end of year	$ 19,177				$ 17,773	$ 19,177	$ 17,773
Change in benefit obligation:
Benefit obligation, beginning of year				17,773		17,773	15,953
Service cost						0	115	125
Interest cost						483	600	534
Plan amendments						0	0
Actuarial losses (gains)						1,922	2,090
Foreign currency exchange rates						0	0
Participant contributions						0	0
Benefits paid - gross						(997)	(982)
Less: federal subsidy on benefits paid						0	0
Curtailments, settlements and termination benefits						(4)	(3)
Benefit obligation, end of year	19,177				17,773	19,177	17,773	15,953
Change in plan assets:
Fair value of plan assets, beginning of year				15,994		15,994	12,697
Actual return on plan assets						2,552	2,740
Foreign currency exchange rates						0	0
Company contributions						44	1,542
Participant contributions						0	0
Benefits paid						(997)	(982)
Settlements and termination benefits						(4)	(3)
Fair value of plan assets, end of year	17,589				15,994	17,589	15,994	12,697
Funded Status, end of year
Over (under) funded status	(1,588)				(1,779)	(1,588)	(1,779)
Components of net amount recognized in financial position:
Other assets (non-current asset)	409				219	409	219
Accrued wages, salaries and employee benefits (current liability)	(44)				(42)	(44)	(42)
Liability for postemployment benefits (non-current liability)	(1,953)				(1,956)	(1,953)	(1,956)
Net liability recognized	(1,588)				(1,779)	(1,588)	(1,779)
Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of:
Prior service cost (credit)	$ 0				$ 0	$ 0	$ 0
Non-U.S. pensions
Weighted-average assumptions used to determine benefit obligation, end of year:
Discount rate (as a percent)	1.40%				1.90%	1.40%	1.90%
Rate of compensation increase (as a percent)	2.00%				2.00%	2.00%	2.00%
Accumulated benefit obligation, end of year	$ 4,680				$ 4,502	$ 4,680	$ 4,502
Change in benefit obligation:
Benefit obligation, beginning of year				4,666		4,666	4,215
Service cost						55	80	89
Interest cost						68	94	96
Plan amendments						6	(5)
Actuarial losses (gains)						258	424
Foreign currency exchange rates						213	95
Participant contributions						4	7
Benefits paid - gross						(159)	(237)
Less: federal subsidy on benefits paid						0	0
Curtailments, settlements and termination benefits						(264)	(7)
Benefit obligation, end of year	4,847				4,666	4,847	4,666	4,215
Change in plan assets:
Fair value of plan assets, beginning of year				4,525		4,525	4,025
Actual return on plan assets						385	482
Foreign currency exchange rates						164	105
Company contributions						76	143
Participant contributions						4	7
Benefits paid						(159)	(237)
Settlements and termination benefits						(264)	0
Fair value of plan assets, end of year	4,731				4,525	4,731	4,525	4,025
Funded Status, end of year
Over (under) funded status	(116)				(141)	(116)	(141)
Components of net amount recognized in financial position:
Other assets (non-current asset)	556				485	556	485
Accrued wages, salaries and employee benefits (current liability)	(25)				(19)	(25)	(19)
Liability for postemployment benefits (non-current liability)	(647)				(607)	(647)	(607)
Net liability recognized	(116)				(141)	(116)	(141)
Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of:
Prior service cost (credit)	$ 24				$ 16	$ 24	$ 16
Other postretirement benefits
Weighted-average assumptions used to determine benefit obligation, end of year:
Discount rate (as a percent)	2.30%				3.20%	2.30%	3.20%
Rate of compensation increase (as a percent)	4.00%				4.00%	4.00%	4.00%
Change in benefit obligation:
Benefit obligation, beginning of year				3,960		$ 3,960	$ 3,649
Service cost						94	80	83
Interest cost						103	136	125
Plan amendments						(8)	8
Actuarial losses (gains)						192	350
Foreign currency exchange rates						(25)	(1)
Participant contributions						44	46
Benefits paid - gross						(317)	(316)
Less: federal subsidy on benefits paid						8	9
Curtailments, settlements and termination benefits						0	(1)
Benefit obligation, end of year	$ 4,051				$ 3,960	4,051	3,960	3,649
Change in plan assets:
Fair value of plan assets, beginning of year				$ 255		255	328
Actual return on plan assets						23	71
Foreign currency exchange rates						0	0
Company contributions						142	127
Participant contributions						44	46
Benefits paid						(317)	(316)
Settlements and termination benefits						0	(1)
Fair value of plan assets, end of year	147				255	147	255	$ 328
Funded Status, end of year
Over (under) funded status	(3,904)				(3,705)	(3,904)	(3,705)
Components of net amount recognized in financial position:
Other assets (non-current asset)	0				0	0	0
Accrued wages, salaries and employee benefits (current liability)	(186)				(161)	(186)	(161)
Liability for postemployment benefits (non-current liability)	(3,718)				(3,544)	(3,718)	(3,544)
Net liability recognized	(3,904)				(3,705)	(3,904)	(3,705)
Liability for postemployment benefits	63				60	63	60
Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of:
Prior service cost (credit)	(46)				(78)	(46)	(78)
Defined contribution
Components of net amount recognized in financial position:
Liability for postemployment benefits	$ 491				$ 432	$ 491	$ 432

Postemployment benefit plans _2

Postemployment benefit plans (Details A2) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
U.S. pensions
Pension plans with projected benefit obligations in excess of plan assets
Projected benefit obligations	$ 15,300	$ 14,037
Fair value of plan assets	13,302	12,039
Pension plans with accumulated benefit obligations in excess of plan assets
Accumulated benefit obligation	15,300	14,037
Fair value of plan assets	13,302	12,039
Non-U.S. pensions
Pension plans with projected benefit obligations in excess of plan assets
Projected benefit obligations	2,171	2,010
Fair value of plan assets	1,499	1,384
Pension plans with accumulated benefit obligations in excess of plan assets
Accumulated benefit obligation	1,988	1,799
Fair value of plan assets	$ 1,425	$ 1,269

Postemployment benefit plans _3

Postemployment benefit plans (Details B) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax):
Current year prior service cost (credit)	$ (1)	$ (4)	$ 0
Amortization of prior service (cost) credit	38	40	36
U.S. pensions
Components of net periodic benefit cost:
Service cost	0	115	125
Interest cost	483	600	534
Expected return on plan assets	(791)	(721)	(808)
Curtailments, settlements and termination benefits	(1)	(1)	0
Amortization of prior service cost / (credit)	0	0	0
Actuarial loss / (gain)	162	72	534
Net periodic benefit cost (benefit)	(147)	65	385
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax):
Current year prior service cost (credit)	0	0	0
Amortization of prior service (cost) credit	0	0	0
Total recognized in other comprehensive income	0	0	0
Total recognized in net periodic cost and other comprehensive income	$ (147)	$ 65	$ 385
Weighted-average assumptions used to determine net cost:
Discount rate used to measure service cost	0.00%	4.30%	3.70%
Discount rate used to measure interest cost	2.80%	3.90%	3.20%
Expected rate of return on plan assets	5.10%	5.90%	6.30%
Rate of compensation increase	0.00%	4.00%	4.00%
Expected return on plan assets, next fiscal year (as a percent)	4.20%
Additional percentage amount added to long-term passive rate of returns to arrive at the long-term expected rate of return (as a percent)	0.40%	0.40%	0.75%
Non-U.S. pensions
Components of net periodic benefit cost:
Service cost	$ 55	$ 80	$ 89
Interest cost	68	94	96
Expected return on plan assets	(135)	(148)	(221)
Curtailments, settlements and termination benefits	30	(7)	(33)
Amortization of prior service cost / (credit)	0	0	0
Actuarial loss / (gain)	32	90	111
Net periodic benefit cost (benefit)	50	109	42
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax):
Current year prior service cost (credit)	8	(4)	20
Amortization of prior service (cost) credit	0	0	0
Total recognized in other comprehensive income	8	(4)	20
Total recognized in net periodic cost and other comprehensive income	$ 58	$ 105	$ 62
Weighted-average assumptions used to determine net cost:
Discount rate used to measure service cost	1.50%	2.50%	2.30%
Discount rate used to measure interest cost	1.70%	2.30%	2.20%
Expected rate of return on plan assets	3.30%	3.80%	5.20%
Rate of compensation increase	2.00%	3.00%	4.00%
Expected return on plan assets, next fiscal year (as a percent)	2.90%
Other postretirement benefits
Components of net periodic benefit cost:
Service cost	$ 94	$ 80	$ 83
Interest cost	103	136	125
Expected return on plan assets	(12)	(18)	(32)
Curtailments, settlements and termination benefits	0	0	(2)
Amortization of prior service cost / (credit)	(38)	(40)	(36)
Actuarial loss / (gain)	189	306	(150)
Net periodic benefit cost (benefit)	336	464	(12)
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax):
Current year prior service cost (credit)	(7)	8	(20)
Amortization of prior service (cost) credit	38	40	36
Total recognized in other comprehensive income	31	48	16
Total recognized in net periodic cost and other comprehensive income	$ 367	$ 512	$ 4
Weighted-average assumptions used to determine net cost:
Discount rate used to measure service cost	3.20%	4.10%	3.50%
Discount rate used to measure interest cost	2.80%	3.90%	3.20%
Expected rate of return on plan assets	7.00%	7.20%	7.50%
Rate of compensation increase	4.00%	4.10%	4.00%
Assumed increase in health care trend rate
Assumed increase in health care trend rate over the current period to calculate benefit expenses (as a percent)	6.10%
Assumed increase in health care trend rate for the next year to calculate benefit expenses (as a percent)	5.80%
Year that heath care trend rate is assumed to reach ultimate trend rate (year)	2025
Ultimate health care cost trend rate (as a percent)	5.00%
General inflation rate that forms a part of ultimate health care trend rate (as a percent)	3.00%
Additional healthcare inflation rate that forms a part of ultimate health care trend rate (as a percent)	2.00%

Postemployment benefit plans _4

Postemployment benefit plans (Details C) $ in Millions	Dec. 31, 2020USD ($)
U.S. pensions
Expected contributions and benefit payments for pension and other Postretirement benefit plans
Employer contribution expected for 2021	$ 45
Expected benefit payments for 2021	1,040
Expected benefit payments for 2022	1,020
Expected benefit payments for 2023	1,020
Expected benefit payments for 2024	1,020
Expected benefit payments for 2025	1,020
Expected benefit payments from 2026-2030	4,995
Total expected benefit payments	10,115
Non-U.S. pensions
Expected contributions and benefit payments for pension and other Postretirement benefit plans
Employer contribution expected for 2021	90
Expected benefit payments for 2021	360
Expected benefit payments for 2022	180
Expected benefit payments for 2023	185
Expected benefit payments for 2024	190
Expected benefit payments for 2025	195
Expected benefit payments from 2026-2030	1,055
Total expected benefit payments	2,165
Other postretirement benefits
Expected contributions and benefit payments for pension and other Postretirement benefit plans
Employer contribution expected for 2021	175
Expected benefit payments for 2021	280
Expected benefit payments for 2022	275
Expected benefit payments for 2023	270
Expected benefit payments for 2024	265
Expected benefit payments for 2025	260
Expected benefit payments from 2026-2030	1,270
Total expected benefit payments	2,620
Other postretirement benefits, Medicare Part D subsidy expected
Other postretirement benefits, Medicare Part D subsidy expected in 2021	8
Other postretirement benefits, Medicare Part D subsidy expected in 2022	8
Other postretirement benefits, Medicare Part D subsidy expected in 2023	8
Other postretirement benefits, Medicare Part D subsidy expected in 2024	7
Other postretirement benefits, Medicare Part D subsidy expected in 2025	7
Other postretirement benefits, Medicare Part D subsidy expected from 2026-2030	30
Total expected Medicare D subsidy receipts	$ 68

Postemployment benefit plans _5

Postemployment benefit plans (Details D1) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
U.S. pensions
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 17,589	$ 15,994	$ 12,697
U.S. pensions \| U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	2,458	2,734
U.S. pensions \| Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	1,839	2,068
U.S. pensions \| U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	7,567	6,634
U.S. pensions \| Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	1,372	1,414
U.S. pensions \| U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	3,618	2,220
U.S. pensions \| U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	27	63
U.S. pensions \| Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	133	96
U.S. pensions \| Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	9	10
U.S. pensions \| Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	566	755
U.S. pensions \| Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets	4,493	4,876
U.S. pensions \| Level 1 \| U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	2,292	2,578
U.S. pensions \| Level 1 \| Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	1,838	2,068
U.S. pensions \| Level 1 \| U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Level 1 \| Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Level 1 \| U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Level 1 \| U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Level 1 \| Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Level 1 \| Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Level 1 \| Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	363	230
U.S. pensions \| Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	12,572	10,380
U.S. pensions \| Level 2 \| U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	5	0
U.S. pensions \| Level 2 \| Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Level 2 \| U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	7,395	6,577
U.S. pensions \| Level 2 \| Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	1,372	1,414
U.S. pensions \| Level 2 \| U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	3,618	2,220
U.S. pensions \| Level 2 \| U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	27	63
U.S. pensions \| Level 2 \| Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	133	96
U.S. pensions \| Level 2 \| Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Level 2 \| Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	22	10
U.S. pensions \| Level 3
Defined Benefit Plan Disclosure
Fair value of plan assets	91	90
U.S. pensions \| Level 3 \| U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	28	23
U.S. pensions \| Level 3 \| Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	1	0
U.S. pensions \| Level 3 \| Fixed income securities
Defined Benefit Plan Disclosure
Fair value of plan assets	53	57	61
U.S. pensions \| Level 3 \| U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	53	57
U.S. pensions \| Level 3 \| Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Level 3 \| U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Level 3 \| U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Level 3 \| Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Level 3 \| Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	9	10	10
U.S. pensions \| Level 3 \| Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Measured at NAV
Defined Benefit Plan Disclosure
Fair value of plan assets	433	648
U.S. pensions \| Measured at NAV \| U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	133	133
U.S. pensions \| Measured at NAV \| Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Measured at NAV \| U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	119	0
U.S. pensions \| Measured at NAV \| Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Measured at NAV \| U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Measured at NAV \| U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Measured at NAV \| Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Measured at NAV \| Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
U.S. pensions \| Measured at NAV \| Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	181	515
Non-U.S. pensions
Defined Benefit Plan Disclosure
Fair value of plan assets	4,731	4,525	4,025
Non-U.S. pensions \| U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	97	58
Non-U.S. pensions \| Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	451	440
Non-U.S. pensions \| Global equities
Defined Benefit Plan Disclosure
Fair value of plan assets	95	153
Non-U.S. pensions \| U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	314	253
Non-U.S. pensions \| Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	987	815
Non-U.S. pensions \| U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	2	65
Non-U.S. pensions \| Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	1,743	1,952
Non-U.S. pensions \| Global fixed income
Defined Benefit Plan Disclosure
Fair value of plan assets	456	390
Non-U.S. pensions \| Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	239	211
Non-U.S. pensions \| Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	347	188
Non-U.S. pensions \| Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets	565	498
Non-U.S. pensions \| Level 1 \| U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	97	58
Non-U.S. pensions \| Level 1 \| Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	368	346
Non-U.S. pensions \| Level 1 \| Global equities
Defined Benefit Plan Disclosure
Fair value of plan assets	29	26
Non-U.S. pensions \| Level 1 \| U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 1 \| Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 1 \| U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 1 \| Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 1 \| Global fixed income
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 1 \| Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 1 \| Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	71	68
Non-U.S. pensions \| Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	3,742	3,636
Non-U.S. pensions \| Level 2 \| U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 2 \| Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	33	29
Non-U.S. pensions \| Level 2 \| Global equities
Defined Benefit Plan Disclosure
Fair value of plan assets	17	16
Non-U.S. pensions \| Level 2 \| U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	314	253
Non-U.S. pensions \| Level 2 \| Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	987	808
Non-U.S. pensions \| Level 2 \| U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	2	65
Non-U.S. pensions \| Level 2 \| Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	1,743	1,952
Non-U.S. pensions \| Level 2 \| Global fixed income
Defined Benefit Plan Disclosure
Fair value of plan assets	131	182
Non-U.S. pensions \| Level 2 \| Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	239	211
Non-U.S. pensions \| Level 2 \| Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	276	120
Non-U.S. pensions \| Level 3
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 3 \| U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 3 \| Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 3 \| Global equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 3 \| U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 3 \| Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 3 \| U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 3 \| Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 3 \| Global fixed income
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 3 \| Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Level 3 \| Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Measured at NAV
Defined Benefit Plan Disclosure
Fair value of plan assets	424	391
Non-U.S. pensions \| Measured at NAV \| U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Measured at NAV \| Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	50	65
Non-U.S. pensions \| Measured at NAV \| Global equities
Defined Benefit Plan Disclosure
Fair value of plan assets	49	111
Non-U.S. pensions \| Measured at NAV \| U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Measured at NAV \| Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	7
Non-U.S. pensions \| Measured at NAV \| U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Measured at NAV \| Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Measured at NAV \| Global fixed income
Defined Benefit Plan Disclosure
Fair value of plan assets	325	208
Non-U.S. pensions \| Measured at NAV \| Real estate
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Non-U.S. pensions \| Measured at NAV \| Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits
Defined Benefit Plan Disclosure
Fair value of plan assets	147	255	$ 328
Other postretirement benefits \| U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	88	119
Other postretirement benefits \| Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	21	56
Other postretirement benefits \| U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	12	33
Other postretirement benefits \| Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	2	6
Other postretirement benefits \| U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	3	9
Other postretirement benefits \| U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	6	16
Other postretirement benefits \| Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	3	3
Other postretirement benefits \| Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	12	13
Other postretirement benefits \| Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets	109	177
Other postretirement benefits \| Level 1 \| U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	88	119
Other postretirement benefits \| Level 1 \| Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	21	56
Other postretirement benefits \| Level 1 \| U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Level 1 \| Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Level 1 \| U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Level 1 \| U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Level 1 \| Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Level 1 \| Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	0	2
Other postretirement benefits \| Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	27	68
Other postretirement benefits \| Level 2 \| U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Level 2 \| Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Level 2 \| U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	11	33
Other postretirement benefits \| Level 2 \| Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	2	6
Other postretirement benefits \| Level 2 \| U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	3	9
Other postretirement benefits \| Level 2 \| U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	6	16
Other postretirement benefits \| Level 2 \| Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	3	3
Other postretirement benefits \| Level 2 \| Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	2	1
Other postretirement benefits \| Level 3
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Level 3 \| U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Level 3 \| Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Level 3 \| U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Level 3 \| Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Level 3 \| U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Level 3 \| U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Level 3 \| Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Level 3 \| Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Measured at NAV
Defined Benefit Plan Disclosure
Fair value of plan assets	11	10
Other postretirement benefits \| Measured at NAV \| U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Measured at NAV \| Non-U.S. equities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Measured at NAV \| U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	1	0
Other postretirement benefits \| Measured at NAV \| Non-U.S. corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Measured at NAV \| U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Measured at NAV \| U.S. governmental agency mortgage-backed securities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Measured at NAV \| Non-U.S. government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Other postretirement benefits \| Measured at NAV \| Cash, short-term instruments and other
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 10	$ 10

Postemployment benefit plans _6

Postemployment benefit plans (Details D2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
U.S. pensions
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	$ 15,994	$ 12,697
Fair value of plan assets, end of year	$ 17,589	15,994
U.S. pensions \| Debt securities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	77.00%
U.S. pensions \| Equities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	23.00%
U.S. pensions \| Real estate
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	$ 10
Fair value of plan assets, end of year	9	10
Non-U.S. pensions
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	4,525	4,025
Fair value of plan assets, end of year	$ 4,731	4,525
Non-U.S. pensions \| Debt securities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	76.00%
Non-U.S. pensions \| Equities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	13.00%
Non-U.S. pensions \| Real estate
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	$ 211
Fair value of plan assets, end of year	$ 239	211
Information about plan asset allocations
Target allocation of plan assets (as a percent)	5.00%
Non-U.S. pensions \| Other plan assets
Information about plan asset allocations
Target allocation of plan assets (as a percent)	6.00%
Other postretirement benefits
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	$ 255	328
Fair value of plan assets, end of year	$ 147	255
Other postretirement benefits \| Debt securities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	30.00%
Other postretirement benefits \| Equities
Information about plan asset allocations
Target allocation of plan assets (as a percent)	70.00%
Level 3 \| U.S. pensions
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	$ 90
Fair value of plan assets, end of year	91	90
Level 3 \| U.S. pensions \| Equities
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	23	36
Unrealized gains (losses)	0	(9)
Realized gains (losses)	(11)	7
Purchases, issuances and settlements, net	17	(10)
Transfers in and/or out of Level 3	0	(1)
Fair value of plan assets, end of year	29	23
Level 3 \| U.S. pensions \| Fixed income securities
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	57	61
Unrealized gains (losses)	1	0
Realized gains (losses)	(6)	0
Purchases, issuances and settlements, net	1	(4)
Transfers in and/or out of Level 3	0	0
Fair value of plan assets, end of year	53	57
Level 3 \| U.S. pensions \| Real estate
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	10	10
Unrealized gains (losses)	0	0
Realized gains (losses)	(1)	0
Purchases, issuances and settlements, net	0	0
Transfers in and/or out of Level 3	0	0
Fair value of plan assets, end of year	9	10
Level 3 \| Non-U.S. pensions
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	0
Fair value of plan assets, end of year	0	0
Level 3 \| Non-U.S. pensions \| Real estate
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	0
Fair value of plan assets, end of year	0	0
Level 3 \| Other postretirement benefits
Change in Fair Value of Plan Assets
Fair value of plan assets, beginning of year	0
Fair value of plan assets, end of year	$ 0	$ 0

Postemployment benefit plans _7

Postemployment benefit plans (Details E) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Defined contribution plans
ESOP, number of allocated shares	13.2	14.9
Costs related to defined contribution plans	$ 473	$ 497	$ 360
U.S. Plans
Defined contribution plans
Percentage that the employer generally matches of employee contributions to U.S. defined contribution plans	100.00%
Employee compensation percentage contributed to defined contribution plan eligible for employer matching contributions	6.00%
New annual employer contribution, percentage of compensation, low end of range	3.00%
New annual employer contribution, percentage of compensation, high end of range	5.00%
Percentage that the employer generally matches of employee contributions to U.S. defined contribution plans for employees accruing benefits under a defined benefit plan	50.00%
Compensation percentage contributed to defined contribution plan eligible for employer matching contributions, for employees accruing benefits under defined benefit pension plan	6.00%
Costs related to defined contribution plans	$ 384	414	271
Non-U.S. Plans
Defined contribution plans
Costs related to defined contribution plans	$ 89	$ 83	$ 89

Short-term borrowings (Details)

Short-term borrowings (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Short-term borrowings:
Short-term borrowings	$ 2,015	$ 5,166
Notes payable to banks
Short-term borrowings:
Weighted-average interest rates on short-term borrowings (as a percent)	3.70%	5.00%
Commercial paper
Short-term borrowings:
Weighted-average interest rates on short-term borrowings (as a percent)	0.10%	1.30%
Demand notes
Short-term borrowings:
Weighted-average interest rates on short-term borrowings (as a percent)	0.30%	1.70%
Machinery, Energy & Transportation
Short-term borrowings:
Short-term borrowings	$ 10	$ 5
Machinery, Energy & Transportation \| Notes payable to banks
Short-term borrowings:
Short-term borrowings	10	5
Financial Products
Short-term borrowings:
Short-term borrowings	2,005	5,161
Financial Products \| Notes payable to banks
Short-term borrowings:
Short-term borrowings	307	605
Financial Products \| Commercial paper
Short-term borrowings:
Short-term borrowings	1,321	4,168
Financial Products \| Demand notes
Short-term borrowings:
Short-term borrowings	$ 377	$ 388

Long-term debt (Details)

Long-term debt (Details) - USD ($) $ in Millions	12 Months Ended
Long-term debt (Details) - USD ($) $ in Millions	Dec. 31, 2020	Apr. 09, 2020	Dec. 31, 2019	Sep. 19, 2019
Long-term Debt
Total long-term debt due after one year	$ 25,999		$ 26,281
Debentures-$500 million of 2.60% due 2029
Long-term Debt
Debt Instrument, Face Amount				$ 500
Debentures - $1000 million of 3.250% due 2049
Long-term Debt
Debt instrument, interest rate (as a percent)				3.25%
Debt Instrument, Face Amount				$ 1,000
Unsecured Debentures Due in 2030 at 2.60 Percent
Long-term Debt
Debt instrument, interest rate (as a percent)		2.60%
Debt Instrument, Face Amount		$ 800
Unsecured Debentures Due in 2050 at 3.250 Percent
Long-term Debt
Debt instrument, interest rate (as a percent)		3.25%
Debt Instrument, Face Amount		$ 1,200
Machinery, Energy & Transportation
Long-term Debt
Finance lease obligations and other	103		128
Total Machinery, Energy & Transportation	$ 9,749		9,141
Machinery, Energy & Transportation \| Notes-$1,250 million of 3.900% due 2021
Long-term Debt
Effective Yield to Maturity (as a percent)	4.01%
Notes	$ 0		1,248
Debt instrument, interest rate (as a percent)	3.90%
Debt Instrument, Face Amount	$ 1,250
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation \| Notes-$759 million of 5.200% due 2041
Long-term Debt
Effective Yield to Maturity (as a percent)	5.27%
Notes	$ 752		752
Debt instrument, interest rate (as a percent)	5.20%
Debt Instrument, Face Amount	$ 759
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation \| Debentures-$120 million of 9.375% due 2021
Long-term Debt
Effective Yield to Maturity (as a percent)	9.41%
Debentures	$ 0		120
Debt instrument, interest rate (as a percent)	9.375%
Debt Instrument, Face Amount	$ 120
Machinery, Energy & Transportation \| Debentures-$500 million of 2.600% due 2022
Long-term Debt
Effective Yield to Maturity (as a percent)	2.70%
Debentures	$ 499		499
Debt instrument, interest rate (as a percent)	2.60%
Debt Instrument, Face Amount	$ 500
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation \| Debentures-$82 million of 8.000% due 2023
Long-term Debt
Effective Yield to Maturity (as a percent)	8.06%
Debentures	$ 82		82
Debt instrument, interest rate (as a percent)	8.00%
Debt Instrument, Face Amount	$ 82
Machinery, Energy & Transportation \| Debentures-$1,000 million of 3.400% due 2024
Long-term Debt
Effective Yield to Maturity (as a percent)	3.46%
Debentures	$ 998		998
Debt instrument, interest rate (as a percent)	3.40%
Debt Instrument, Face Amount	$ 1,000
Machinery, Energy & Transportation \| Debentures-$193 million of 6.625% due 2028
Long-term Debt
Effective Yield to Maturity (as a percent)	6.68%
Debentures	$ 192		192
Debt instrument, interest rate (as a percent)	6.625%
Debt Instrument, Face Amount	$ 193
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation \| Debentures-$500 million of 2.60% due 2029
Long-term Debt
Effective Yield to Maturity (as a percent)	2.67%
Debentures	$ 497		497
Debt instrument, interest rate (as a percent)	2.60%			2.60%
Debt Instrument, Face Amount	$ 500
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation \| Debentures-$242 million of 7.300% due 2031
Long-term Debt
Effective Yield to Maturity (as a percent)	7.38%
Debentures	$ 240		240
Debt instrument, interest rate (as a percent)	7.30%
Debt Instrument, Face Amount	$ 242
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation \| Debentures-$307 million of 5.300% due 2035
Long-term Debt
Effective Yield to Maturity (as a percent)	8.64%
Debentures	$ 223		220
Debt instrument, interest rate (as a percent)	5.30%
Debt Instrument, Face Amount	$ 307
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation \| Debentures-$460 million of 6.050% due 2036
Long-term Debt
Effective Yield to Maturity (as a percent)	6.12%
Debentures	$ 456		456
Debt instrument, interest rate (as a percent)	6.05%
Debt Instrument, Face Amount	$ 460
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation \| Debentures-$65 million of 8.250% due 2038
Long-term Debt
Effective Yield to Maturity (as a percent)	8.38%
Debentures	$ 64		64
Debt instrument, interest rate (as a percent)	8.25%
Debt Instrument, Face Amount	$ 65
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation \| Debentures-$160 million of 6.950% due 2042
Long-term Debt
Effective Yield to Maturity (as a percent)	7.02%
Debentures	$ 158		158
Debt instrument, interest rate (as a percent)	6.95%
Debt Instrument, Face Amount	$ 160
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation \| Debentures-$1,722 million of 3.803% due 2042
Long-term Debt
Effective Yield to Maturity (as a percent)	6.39%
Debentures	$ 1,296		1,277
Debt instrument, interest rate (as a percent)	3.803%
Debt Instrument, Face Amount	$ 1,722
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation \| Debentures-$500 million of 4.300% due 2044
Long-term Debt
Effective Yield to Maturity (as a percent)	4.39%
Debentures	$ 493		493
Debt instrument, interest rate (as a percent)	4.30%
Debt Instrument, Face Amount	$ 500
Machinery, Energy & Transportation \| Debentures - $1000 million of 3.250% due 2049
Long-term Debt
Effective Yield to Maturity (as a percent)	3.34%
Debentures	$ 983		982
Debt instrument, interest rate (as a percent)	3.25%
Debt Instrument, Face Amount	$ 1,000
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation \| Debentures-$500 million of 4.750% due 2064
Long-term Debt
Effective Yield to Maturity (as a percent)	4.81%
Debentures	$ 494		494
Debt instrument, interest rate (as a percent)	4.75%
Debt Instrument, Face Amount	$ 500
Machinery, Energy & Transportation \| Debentures-$246 million of 7.375% due 2097
Long-term Debt
Effective Yield to Maturity (as a percent)	7.51%
Debentures	$ 241		241
Debt instrument, interest rate (as a percent)	7.375%
Debt Instrument, Face Amount	$ 246
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation \| Unsecured Debentures Due in 2030 at 2.60 Percent
Long-term Debt
Effective Yield to Maturity (as a percent)	2.72%
Debentures	$ 793		0
Debt instrument, interest rate (as a percent)	2.60%
Debt Instrument, Face Amount	$ 800
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Machinery, Energy & Transportation \| Unsecured Debentures Due in 2050 at 3.250 Percent
Long-term Debt
Effective Yield to Maturity (as a percent)	3.32%
Debentures	$ 1,185		0
Debt instrument, interest rate (as a percent)	3.25%
Debt Instrument, Face Amount	$ 1,200
Percentage of the redemption price to the principal amount of debentures to be redeemed	100.00%
Financial Products Segment
Long-term Debt
Medium-term notes	$ 16,012		16,719
Other	238		421
Total Financial Products	$ 16,250		$ 17,140
Financial Products
Long-term Debt
Medium-term Notes Weighted Average Interest Rate	2.00%
Medium-term Notes, Maximum Remaining Maturity	7 years
Medium-term notes, callable	$ 56

Long-term debt (Details 2)

Long-term debt (Details 2) - USD ($) $ in Millions	12 Months Ended
Long-term debt (Details 2) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Sep. 19, 2019
Long-term Debt
2021	$ 9,149
2022	7,199
2023	4,267
2024	3,674
2025	1,630
Interest paid on short-term and long-term borrowings	1,089	$ 1,057	$ 1,088
Machinery, Energy & Transportation
Long-term Debt
2021	1,420
2022	520
2023	99
2024	1,010
2025	$ 9
Financial Products
Long-term Debt
Medium-term Notes Weighted Average Interest Rate	2.00%
Medium-term Notes, Maximum Remaining Maturity	7 years
2021	$ 7,729
2022	6,679
2023	4,168
2024	2,664
2025	1,621
Unsecured Debentures Due in 2049 at 3.250 Percent
Long-term Debt
Debt Instrument, Face Amount				$ 1,000
Debt instrument, interest rate (as a percent)				3.25%
Unsecured Debentures Due in 2049 at 3.250 Percent \| Machinery, Energy & Transportation
Long-term Debt
Debt Instrument, Face Amount	$ 1,000
Debt instrument, interest rate (as a percent)	3.25%
Unsecured Debentures Due in 2029 at 2.60 Percent
Long-term Debt
Debt Instrument, Face Amount				$ 500
Unsecured Debentures Due in 2029 at 2.60 Percent \| Machinery, Energy & Transportation
Long-term Debt
Debt Instrument, Face Amount	$ 500
Debt instrument, interest rate (as a percent)	2.60%			2.60%
Notes-$759 million of 5.200% due 2041 \| Machinery, Energy & Transportation
Long-term Debt
Debt Instrument, Face Amount	$ 759
Debt instrument, interest rate (as a percent)	5.20%

Credit commitments (Details)

Credit commitments (Details) $ in Millions	12 Months Ended
Credit commitments (Details) $ in Millions	Dec. 31, 2020USD ($)facilities
Credit lines available:
Credit lines available	$ 13,678
Less: Commercial paper outstanding	(1,321)
Less: Utilized credit	(744)
Available credit	(11,613)
Consolidated net worth	15,410
Minimum consolidated net worth required under credit facilities	9,000
Utilized credit	(744)
Machinery, Energy & Transportation
Credit lines available:
Credit lines available	2,896
Less: Commercial paper outstanding	0
Less: Utilized credit	(10)
Available credit	(2,886)
Utilized credit	(10)
Financial Products Segment
Credit lines available:
Credit lines available	10,782
Less: Commercial paper outstanding	(1,321)
Less: Utilized credit	(734)
Available credit	(8,727)
Utilized credit	(734)
Global credit facilities
Credit lines available:
Credit lines available	10,500
Less: Utilized credit	$ 0
Number of global credit facilities \| facilities	3
Utilized credit	$ 0
Global credit facilities \| Machinery, Energy & Transportation
Credit lines available:
Credit lines available	2,750
Global credit facilities \| Financial Products Segment
Credit lines available:
Credit lines available	7,750
Other Consolidated Credit Lines
Credit lines available:
Credit lines available	3,178
Other Consolidated Credit Lines \| Machinery, Energy & Transportation
Credit lines available:
Credit lines available	146
Other Consolidated Credit Lines \| Financial Products Segment
Credit lines available:
Credit lines available	$ 3,032
Cat Financial
Credit lines available:
Interest coverage ratio, numerator	1.72
Interest coverage ratio, denominator	1
Minimum interest coverage ratio required under credit facilities, numerator	1.15
Minimum interest coverage ratio required under credit facilities, denominator	1
Six-month leverage ratio, numerator	6.74
Six month leverage ratio, denominator	1
Year-end leverage ratio, numerator	6.95
Year-end leverage ratio denominator	1
Maximum leverage ratio permissible under credit facility, numerator	10
Maximum leverage ratio permissible under credit facility, denominator	1
364-day credit facility \| Global credit facilities
Credit lines available:
Credit lines available	$ 3,150
Duration of credit facility (in years or days)	364 days
Line of Credit Facility, Expiration Date	Sep. 30, 2021
364-day credit facility \| Global credit facilities \| Machinery, Energy & Transportation
Credit lines available:
Credit lines available	$ 820
Three-year facility \| Global credit facilities
Credit lines available:
Credit lines available	$ 2,730
Duration of credit facility (in years or days)	3 years
Line of Credit Facility, Expiration Date	Sep. 30, 2022
Three-year facility \| Global credit facilities \| Machinery, Energy & Transportation
Credit lines available:
Credit lines available	$ 720
Five-year facility \| Global credit facilities
Credit lines available:
Credit lines available	$ 4,620
Duration of credit facility (in years or days)	5 years
Line of Credit Facility, Expiration Date	Sep. 30, 2024
Five-year facility \| Global credit facilities \| Machinery, Energy & Transportation
Credit lines available:
Credit lines available	$ 1,210

Profit per share (Details)

Profit per share (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended								12 Months Ended
		Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020		Dec. 31, 2019		Dec. 31, 2018		Jul. 01, 2018
Earnings Per Share [Abstract]
Profit for the period (A) (in millions of dollars)		$ 780	$ 668	$ 458	$ 1,092	$ 1,098	$ 1,494	$ 1,620	$ 1,881	$ 2,998	[1]	$ 6,093	[1]	$ 6,147	[1]
Determination of shares (in millions)
Weighted-average number of common shares outstanding (B) (in shares)										544,100,000		561,600,000		591,400,000
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price (in shares)										4,500,000		5,900,000		8,000,000
Average common shares outstanding for fully diluted computation (C) (in shares)	[2]									548,600,000		567,500,000		599,400,000
Profit (loss) per share of common stock:
Assuming no dilution (A/B) (in dollars per share)		$ 1.43	$ 1.23	$ 0.84	$ 2	$ 2	$ 2.69	$ 2.85	$ 3.29	$ 5.51		$ 10.85		$ 10.39
Assuming full dilution (A/C) (in dollars per share)		$ 1.42	$ 1.22	$ 0.84	$ 1.98	$ 1.97	$ 2.66	$ 2.83	$ 3.25	$ 5.46	[2]	$ 10.74	[2]	$ 10.26	[2]
Shares outstanding as of December 31		545,300,000				550,100,000				545,300,000		550,100,000		575,500,000
Common shares under SARs and stock options not included in the computation of diluted earnings per share (in shares)										4,600,000		3,000,000		1,500,000
Common Stock Repurchase
Stock Repurchase Program, Authorized Amount																$ 10,000
Common shares repurchased (in shares)										10,096,006		30,586,507		27,673,675
Payments for repurchase of common stock										$ 1,130		$ 4,047		$ 3,798
Stock Repurchase Program, Remaining Authorized Repurchase Amount		$ 4,800								4,800
Common shares repurchased										$ 1,250	[3]	$ 3,928		$ 3,798

[1]	Profit attributable to common shareholders.
[2]	Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
[3]	See Note 16 regarding shares repurchased.

Accumulated other comprehensi_3

Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment	$ (910)	$ (1,487)	$ (1,601)	$ (1,205)
Gains (losses) on foreign currency translation	513	21	(373)
Less: Tax provision /(benefit)	(42)	5	24
Net gains (losses) on foreign currency translation	555	16	(397)
(Gains) losses reclassified to earnings	22	0	1
Less: Tax provision /(benefit)	0	0	0
Net (gains) losses reclassified to earnings	22	0	1
Other comprehensive income (loss), net of tax	577	16	(396)
Accumulated Other Comprehensive (Income) Loss, Pension and other postretirement benefits	(32)	(3)	12	46
Current year prior service credit (cost)	(1)	(4)	0
Less: Tax provision /(benefit)	0	0	6
Net current year prior service credit (cost)	(1)	(4)	(6)
Amortization of prior service (cost) credit	(38)	(40)	(36)
Less: Tax provision /(benefit)	(10)	(10)	(8)
Net amortization of prior service (credit) cost	(28)	(30)	(28)
Other comprehensive income (loss), net of tax	(29)	(34)	(34)
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax	0	(97)	(80)	(41)
Gains (losses) deferred	(116)	57	80
Less: Tax provision /(benefit)	(25)	14	19
Net gains (losses) deferred	(91)	43	61
(Gains) losses reclassified to earnings	241	(66)	(131)
Less: Tax provision /(benefit)	53	(15)	(31)
Net (gains) losses reclassified to earnings	188	(51)	(100)
Other comprehensive income (loss), net of tax	97	(8)	(39)
AOCI, Debt Securities, Available-for-sale securities	54	20	(15)	8
Gains (losses) deferred	45	45	(15)
Less: Tax provision /(benefit)	10	10	(3)
Net gains (losses) deferred	35	35	(12)
(Gains) losses reclassified to earnings	(1)	0	0
Less: Tax provision /(benefit)	0	0	0
Net (gains) losses reclassified to earnings	(1)	0	0
Other comprehensive income (loss), net of tax	34	35	(12)
Accumulated other comprehensive income (loss)	$ (888)	(1,567)	(1,684)
Cumulative Effect, Period of Adoption, Adjusted Balance
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment		(1,487)	(1,503)	(1,205)
Accumulated Other Comprehensive (Income) Loss, Pension and other postretirement benefits		(3)	31	46
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax		(97)	(89)	(41)
AOCI, Debt Securities, Available-for-sale securities		20	(15)	(3)
Reclassification of certain tax effects from accumulated other comprehensive income \| Cumulative Effect, Period of Adoption, Adjustment [Member]
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment		0	98	0
Accumulated Other Comprehensive (Income) Loss, Pension and other postretirement benefits		0	19	0
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax		0	(9)	0
AOCI, Debt Securities, Available-for-sale securities		$ 0	$ 0	$ (11)

Fair value disclosures (Details

Fair value disclosures (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Assets
Fair Value of debt securities	$ 1,683	$ 1,365
Recurring basis
Assets
Fair Value of debt securities	1,683	1,365
Fair value of equity securities	405	346
Total Assets	2,088	1,756
Liabilities
Derivative Assets (Liabilities), at Fair Value, Net	17	(45)
Total Liabilities	17
Government debt - U.S. treasury bonds
Assets
Fair Value of debt securities	10	9
Government debt - U.S. treasury bonds \| Recurring basis
Assets
Fair Value of debt securities	10	9
Other U.S. and non-U.S. government bonds
Assets
Fair Value of debt securities	59	54
Other U.S. and non-U.S. government bonds \| Recurring basis
Assets
Fair Value of debt securities	59	54
Corporate bonds
Assets
Fair Value of debt securities	1,012	856
Corporate bonds \| Recurring basis
Assets
Fair Value of debt securities	1,012	856
Corporate bonds - Asset-backed securities
Assets
Fair Value of debt securities	159	62
Corporate bonds - Asset-backed securities \| Recurring basis
Assets
Fair Value of debt securities	159	62
U.S. governmental agency \| Recurring basis
Assets
Fair Value of debt securities	374	331
Mortgage-backed securities - Residential
Assets
Fair Value of debt securities	5	6
Mortgage-backed securities - Residential \| Recurring basis
Assets
Fair Value of debt securities	5	6
Mortgage-backed securities - Commercial
Assets
Fair Value of debt securities	64	47
Mortgage-backed securities - Commercial \| Recurring basis
Assets
Fair Value of debt securities	64	47
Large capitalization value \| Recurring basis
Assets
Fair value of equity securities	199	187
REIT \| Recurring basis
Assets
Fair value of equity securities	148	126
Smaller company growth \| Recurring basis
Assets
Fair value of equity securities	58	33
Level 1 \| Recurring basis
Assets
Fair Value of debt securities	10	9
Fair value of equity securities	257	216
Total Assets	267	225
Level 1 \| Government debt - U.S. treasury bonds \| Recurring basis
Assets
Fair Value of debt securities	10	9
Level 1 \| Other U.S. and non-U.S. government bonds \| Recurring basis
Assets
Fair Value of debt securities	0	0
Level 1 \| Corporate bonds \| Recurring basis
Assets
Fair Value of debt securities	0	0
Level 1 \| Corporate bonds - Asset-backed securities \| Recurring basis
Assets
Fair Value of debt securities	0	0
Level 1 \| U.S. governmental agency \| Recurring basis
Assets
Fair Value of debt securities	0	0
Level 1 \| Mortgage-backed securities - Residential \| Recurring basis
Assets
Fair Value of debt securities	0	0
Level 1 \| Mortgage-backed securities - Commercial \| Recurring basis
Assets
Fair Value of debt securities	0	0
Level 1 \| Large capitalization value \| Recurring basis
Assets
Fair value of equity securities	199	187
Level 1 \| REIT \| Recurring basis
Assets
Fair value of equity securities	0	0
Level 1 \| Smaller company growth \| Recurring basis
Assets
Fair value of equity securities	58	29
Level 2 \| Recurring basis
Assets
Fair Value of debt securities	1,673	1,356
Fair value of equity securities	0	0
Total Assets	1,673	1,401
Liabilities
Derivative Assets (Liabilities), at Fair Value, Net	17	(45)
Total Liabilities	17
Level 2 \| Government debt - U.S. treasury bonds \| Recurring basis
Assets
Fair Value of debt securities	0	0
Level 2 \| Other U.S. and non-U.S. government bonds \| Recurring basis
Assets
Fair Value of debt securities	59	54
Level 2 \| Corporate bonds \| Recurring basis
Assets
Fair Value of debt securities	1,012	856
Level 2 \| Corporate bonds - Asset-backed securities \| Recurring basis
Assets
Fair Value of debt securities	159	62
Level 2 \| U.S. governmental agency \| Recurring basis
Assets
Fair Value of debt securities	374	331
Level 2 \| Mortgage-backed securities - Residential \| Recurring basis
Assets
Fair Value of debt securities	5	6
Level 2 \| Mortgage-backed securities - Commercial \| Recurring basis
Assets
Fair Value of debt securities	64	47
Level 2 \| Large capitalization value \| Recurring basis
Assets
Fair value of equity securities	0	0
Level 2 \| REIT \| Recurring basis
Assets
Fair value of equity securities	0	0
Level 2 \| Smaller company growth \| Recurring basis
Assets
Fair value of equity securities	0	0
Level 3 \| Recurring basis
Assets
Fair Value of debt securities	0	0
Fair value of equity securities	0	4
Total Assets	0	4
Level 3 \| Government debt - U.S. treasury bonds \| Recurring basis
Assets
Fair Value of debt securities	0	0
Level 3 \| Other U.S. and non-U.S. government bonds \| Recurring basis
Assets
Fair Value of debt securities	0	0
Level 3 \| Corporate bonds \| Recurring basis
Assets
Fair Value of debt securities	0	0
Level 3 \| Corporate bonds - Asset-backed securities \| Recurring basis
Assets
Fair Value of debt securities	0	0
Level 3 \| U.S. governmental agency \| Recurring basis
Assets
Fair Value of debt securities	0	0
Level 3 \| Mortgage-backed securities - Residential \| Recurring basis
Assets
Fair Value of debt securities	0	0
Level 3 \| Mortgage-backed securities - Commercial \| Recurring basis
Assets
Fair Value of debt securities	0	0
Level 3 \| Large capitalization value \| Recurring basis
Assets
Fair value of equity securities	0	0
Level 3 \| REIT \| Recurring basis
Assets
Fair value of equity securities	0	0
Level 3 \| Smaller company growth \| Recurring basis
Assets
Fair value of equity securities	0	4
Measured at NAV \| Recurring basis
Assets
Fair value of equity securities	148	126
Total Assets	148	126
Measured at NAV \| REIT \| Recurring basis
Assets
Fair value of equity securities	$ 148	$ 126

Fair value disclosures (Detai_2

Fair value disclosures (Details 2) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Level 3 \| Financial Products \| Nonrecurring basis
Fair value of impaired loans
Fair value of impaired loans	$ 243	$ 343

Fair value disclosures (Detai_3

Fair value disclosures (Details 3) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Carrying Amount
Assets
Cash and short-term investments	$ 9,352	$ 8,284
Restricted cash and short-term investments	14	8
Investments in debt and equity securities	2,088	1,711
Finance receivables-net (excluding finance leases)	14,028	14,473
Wholesale inventory receivables-net (excluding finance leases)	929	1,105
Foreign currency contracts-net	0	62
Interest rate swap assets	58	0
Commodity contracts-net	37	3
Liabilities
Short-term borrowings	2,015	5,166
Foreign currency contracts-net	112	0
Interest rate swap liabilities	0	20
Guarantees	5	5
Carrying Amount \| Machinery, Energy & Transportation
Liabilities
Long-term debt (including amounts due within one year)	11,169	9,157
Carrying Amount \| Financial Products
Liabilities
Long-term debt (including amounts due within one year)	23,979	23,334
Carrying amount of assets excluded from measurement at fair value
Liabilities
Excluded items: Finance leases and failed sale leasebacks, Carrying Value	7,961	7,800
Cash and short-term investments	9,352	8,284
Short-term borrowings	2,015	5,166
Machinery, Energy & Transportation
Liabilities
Short-term borrowings	10	5
Financial Products
Liabilities
Short-term borrowings	2,005	5,161
Level 1 \| Fair Value
Assets
Cash and short-term investments	9,352	8,284
Restricted cash and short-term investments	14	8
Liabilities
Short-term borrowings	2,015	5,166
Level 1, 2 & 3 \| Fair Value
Assets
Investments in debt and equity securities	2,088	1,711
Level 2 \| Fair Value
Assets
Foreign currency contracts-net	0	62
Interest rate swap assets	58	0
Commodity contracts-net	37	3
Liabilities
Foreign currency contracts-net	112	0
Interest rate swap liabilities	0	20
Level 2 \| Fair Value \| Machinery, Energy & Transportation
Liabilities
Long-term debt (including amounts due within one year)	14,549	11,216
Level 2 \| Fair Value \| Financial Products
Liabilities
Long-term debt (including amounts due within one year)	24,614	23,655
Level 3 \| Fair Value
Assets
Finance receivables-net (excluding finance leases)	14,357	14,613
Wholesale inventory receivables-net (excluding finance leases)	911	1,076
Liabilities
Guarantees	$ 5	$ 5

Concentration of credit risk (D

Concentration of credit risk (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Risks and Uncertainties [Abstract]
Derivative contracts, maximum exposure to credit loss	$ 281	$ 116

Leases Lessee arrangements - Le

Leases Lessee arrangements - Lease costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Lease, Cost
Operating Lease, Cost	$ 204	$ 232
Short-term Lease, Cost	$ 50	$ 57

Leases Lessee arrangements - Su

Leases Lessee arrangements - Supplemental balance sheet information related to leases (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Operating leases in supplement balance sheet
Operating lease weighted average remaining lease term	7 years	7 years
Operating lease weighted average discount rate	2.00%	2.00%
Other Assets
Operating leases in supplement balance sheet
Other assets	$ 603	$ 624
Other Current Liabilities
Operating leases in supplement balance sheet
Other current liabilities	163	173
Other Noncurrent Liabilities
Operating leases in supplement balance sheet
Other liabilities	$ 457	$ 461

Leases Lessee arrangements - Ma

Leases Lessee arrangements - Maturity of lease liabilities (Details) $ in Millions	Dec. 31, 2020USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity
2021	$ 174
2022	118
2023	88
2024	66
2025	51
Thereafter	182
Total lease payments	679
Less: Imputed interest	(59)
Other Liabilities
Lease assets and liabilities
Total	$ 620

Leases Lessee arrangements - _2

Leases Lessee arrangements - Supplemental cash flow information related to leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Supplemental cash flow info related to leases
Operating cashflows from operating leases	$ 201	$ 224
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 178	$ 122

Leases Lessor arrangements- Equ

Leases Lessor arrangements- Equipment leased to others (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Equipment on operating leases
Equipment leased to others - at original cost	$ 29,271	$ 29,217
Less: Accumulated depreciation	(16,870)	(16,313)
Equipment leased to others - net	12,401	12,904
Equipment on operating leases
Equipment on operating leases
Equipment leased to others - at original cost	6,077	6,208
Less: Accumulated depreciation	(2,035)	(1,960)
Equipment leased to others - net	$ 4,042	$ 4,248

Leases Leases Lessor arrangemen

Leases Leases Lessor arrangements - Operating lease payment maturity (Details) $ in Millions	Dec. 31, 2020USD ($)
Operating Leases, Future Minimum Payments Receivable
2021	$ 842
2022	494
2023	260
2024	134
2025	64
Thereafter	64
Total	$ 1,858

Leases Leases Lessor arrangem_2

Leases Leases Lessor arrangements - Revenues from finance and operating leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Sales-type Lease, Revenue	$ 492	$ 521
Operating lease revenue	1,124	1,248
Lease Income	$ 1,616	$ 1,769

Guarantees and product warran_3

Guarantees and product warranty (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Related liability	$ 5	$ 5
Guarantor Obligations
Guarantees, maximum potential amount of future payments	1,485	1,609
SPC assets in consolidated statement	78,324	78,453
SPC liabilities in consolidated statement	62,946	63,824
Unused commitments and lines of credit for dealers	11,630
Unused commitments and lines of credit for customers	675
Variable Interest Entity, Primary Beneficiary [Member]
Guarantor Obligations
SPC assets in consolidated statement	1,026	1,453
SPC liabilities in consolidated statement	1,025	1,452
Caterpillar dealer performance guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	993	1,150
Supplier consortium performance guarantee
Guarantor Obligations
Guarantees, maximum potential amount of future payments	258	238
Other guarantees
Guarantor Obligations
Guarantees, maximum potential amount of future payments	$ 234	$ 221

Guarantees and product warran_4

Guarantees and product warranty (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Movement in Standard Product Warranty Accrual
Warranty liability, beginning balance	$ 1,541	$ 1,391
Reduction in liability (payments)	(897)	(903)
Increase in liability (new warranties)	968	1,053
Warranty liability, ending balance	$ 1,612	$ 1,541

Environmental and legal matte_2

Environmental and legal matters Environmental and legal matters (Details)	Jan. 27, 2020USD ($)	Mar. 03, 2017
IBAMA allegations
Loss Contingencies
Proposed fine	$ 300,000
IRS investigation
Loss Contingencies
Number of facilities served search and seizure warrants		3

Segment Information (Details)

Segment Information (Details)	12 Months Ended
Segment Information (Details)	Dec. 31, 2020segmentsgroup_presidentsdealers
Segment Reporting Information
Number of group presidents \| group_presidents	4
Number of operating segments	5
Useful life to amortize goodwill for segment assets	20 years
Reportable Subsegments
Segment Reporting Information
Number of operating segments led by Group Presidents	3
Number of operating segments led by Group president responsible for corporate services	1
Number of reportable segments	4
All Other operating segments
Segment Reporting Information
Number of group presidents \| group_presidents	1
Number of smaller operating segments led by Group President \| group_presidents	1
Number of wholly-owned dealers involved in segment reallocation \| dealers	1

Sales and revenues by geographi

Sales and revenues by geographic region (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Sales and revenue by geographic region
Sales and revenues	$ 11,235	$ 9,881	$ 9,997	$ 10,635	$ 13,144	$ 12,758	$ 14,432	$ 13,466	$ 41,748	$ 53,800	$ 54,722
Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									45,338	58,456	59,571
Intersubsegment Eliminations
Sales and revenue by geographic region
Sales and revenues									(4,057)	(5,156)	(5,331)
Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									42,030	54,288	55,115
Corporate, Non-Segment \| Intersubsegment Eliminations
Sales and revenue by geographic region
Sales and revenues									(395)	(615)	(547)
Segment Reconciling Items \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									3,308	4,168	4,456
Intersegment Eliminations \| Intersubsegment Eliminations
Sales and revenue by geographic region
Sales and revenues									(3,662)	(4,541)	(4,784)
North America
Sales and revenue by geographic region
Sales and revenues									18,214	25,785	25,623
North America \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									18,424	26,186	25,949
North America \| Corporate, Non-Segment \| Intersubsegment Eliminations
Sales and revenue by geographic region
Sales and revenues									(237)	(426)	(389)
Latin America
Sales and revenue by geographic region
Sales and revenues									3,432	4,710	4,695
Latin America \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									3,473	4,754	4,738
Latin America \| Corporate, Non-Segment \| Intersubsegment Eliminations
Sales and revenue by geographic region
Sales and revenues									(45)	(51)	(46)
EAME
Sales and revenue by geographic region
Sales and revenues									9,858	11,223	11,929
EAME \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									9,876	11,250	11,948
EAME \| Corporate, Non-Segment \| Intersubsegment Eliminations
Sales and revenue by geographic region
Sales and revenues									(44)	(55)	(37)
Asia/Pacific
Sales and revenue by geographic region
Sales and revenues									10,244	12,082	12,475
Asia/Pacific \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									10,257	12,098	12,480
Asia/Pacific \| Corporate, Non-Segment \| Intersubsegment Eliminations
Sales and revenue by geographic region
Sales and revenues									(69)	(83)	(75)
Construction Industries \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									16,918	22,649	23,237
Construction Industries \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									16,876	22,556	23,116
Construction Industries \| Segment Reconciling Items \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									42	93	121
Construction Industries \| North America \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									7,365	11,455	10,754
Construction Industries \| Latin America \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									1,031	1,533	1,479
Construction Industries \| EAME \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									3,466	4,012	4,410
Construction Industries \| Asia/Pacific \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									5,014	5,556	6,473
Resource Industries \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									7,906	10,276	10,270
Resource Industries \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									7,446	9,813	9,888
Resource Industries \| Segment Reconciling Items \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									460	463	382
Resource Industries \| North America \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									2,286	3,632	3,357
Resource Industries \| Latin America \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									1,253	1,533	1,647
Resource Industries \| EAME \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									1,570	1,836	2,217
Resource Industries \| Asia/Pacific \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									2,337	2,812	2,667
Energy & Transportation
Sales and revenue by geographic region
Sales and revenues									14,664	18,485	18,832
Energy & Transportation \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									17,470	22,097	22,785
Energy & Transportation \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									14,664	18,485	18,832
Energy & Transportation \| Segment Reconciling Items \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									2,806	3,612	3,953
Energy & Transportation \| North America \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									6,843	8,864	9,685
Energy & Transportation \| Latin America \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									932	1,389	1,331
Energy & Transportation \| EAME \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									4,448	4,994	4,934
Energy & Transportation \| Asia/Pacific \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									2,441	3,238	2,882
Financial Products Segment
Sales and revenue by geographic region
Revenue from Related Parties									362	524	470
Financial Products Segment \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									3,044	3,434	3,279
Financial Products Segment \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									3,044	3,434	3,279
Financial Products Segment \| Segment Reconciling Items \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									0	0	0
Financial Products Segment \| North America \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									1,930	2,235	2,153
Financial Products Segment \| Latin America \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									257	299	281
Financial Products Segment \| EAME \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									392	408	387
Financial Products Segment \| Asia/Pacific \| Operating Segments \| Reportable Subsegments
Sales and revenue by geographic region
Sales and revenues									465	492	458
All Other
Sales and revenue by geographic region
Sales and revenues									467	500	482
All Other \| Operating Segments
Sales and revenue by geographic region
Sales and revenues									113	127	154
All Other \| Segment Reconciling Items
Sales and revenue by geographic region
Sales and revenues									354	373	328
All Other \| North America \| Operating Segments
Sales and revenue by geographic region
Sales and revenues									27	25	63
All Other \| Latin America \| Operating Segments
Sales and revenue by geographic region
Sales and revenues									4	7	3
All Other \| EAME \| Operating Segments
Sales and revenue by geographic region
Sales and revenues									26	28	18
All Other \| Asia/Pacific \| Operating Segments
Sales and revenue by geographic region
Sales and revenues									$ 56	$ 67	$ 70

Energy & Transportation sales (

Energy & Transportation sales (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Energy and transportation sales
External sales and revenues	$ 11,235	$ 9,881	$ 9,997	$ 10,635	$ 13,144	$ 12,758	$ 14,432	$ 13,466	$ 41,748	$ 53,800	$ 54,722
Energy & Transportation
Energy and transportation sales
External sales and revenues									14,664	18,485	18,832
Energy & Transportation \| Oil And Gas
Energy and transportation sales
External sales and revenues									3,701	5,205	5,763
Energy & Transportation \| Power generation
Energy and transportation sales
External sales and revenues									3,963	4,474	4,334
Energy & Transportation \| Industrial
Energy and transportation sales
External sales and revenues									2,945	3,749	3,640
Energy & Transportation \| Transportation
Energy and transportation sales
External sales and revenues									$ 4,055	$ 5,057	$ 5,095

Reconciliations of consolidated

Reconciliations of consolidated profit before taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	$ 3,995	$ 7,812	$ 7,822
Operating Segments \| Reportable Subsegments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	6,264	10,302	10,220
Operating Segments \| All Other operating segments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	28	4	23
Consolidating Adjustments \| Cost Centers
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	(4)	(6)	2
Consolidating Adjustments \| Corporate Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	(517)	(607)	(610)
Consolidating Adjustments \| Timing
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	(106)	(93)	(257)
Consolidating Adjustments \| Restructuring Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	(241)	(207)	(386)
Consolidating Adjustments \| Inventory/cost of sales
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	4	(19)	51
Consolidating Adjustments \| Postretirement Benefits Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	(173)	(401)	(124)
Consolidating Adjustments \| Stock-Based Compensation Expense
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	(202)	(205)	(198)
Consolidating Adjustments \| Financing Costs
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	(444)	(248)	(257)
Consolidating Adjustments \| Currency
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	(266)	(175)	(219)
Consolidating Adjustments \| Other Income Expense Methodology Differences
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	(322)	(481)	(362)
Consolidating Adjustments \| Other
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	(26)	(52)	(61)
Construction Industries \| Operating Segments \| Reportable Subsegments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	2,373	3,931	4,174
Resource Industries \| Operating Segments \| Reportable Subsegments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	896	1,629	1,603
Energy & Transportation \| Operating Segments \| Reportable Subsegments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	2,405	3,910	3,938
Financial Products Segment \| Operating Segments \| Reportable Subsegments
Reconciliation of Consolidated profit (loss) before taxes
Consolidated profit before tax	$ 590	$ 832	$ 505

Reconciliation of assets (Detai

Reconciliation of assets (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of assets
Segment assets	$ 78,324	$ 78,453
Consolidating Adjustments
Reconciliation of assets
Inventory Methodology Difference	(2,536)	(2,426)
Consolidating Adjustments \| Cash and Short Term Investments
Reconciliation of assets
Segment assets	8,822	7,299
Consolidating Adjustments \| Deferred Income Taxes
Reconciliation of assets
Segment assets	1,413	1,294
Consolidating Adjustments \| Goodwill and Intangible Assets
Reconciliation of assets
Segment assets	4,847	4,435
Consolidating Adjustments \| Property Plant and Equipment-Net and Other Assets
Reconciliation of assets
Segment assets	2,833	2,529
Consolidating Adjustments \| Liabilities Included in Segment Assets
Reconciliation of assets
Segment assets	8,466	8,541
Consolidating Adjustments \| Other
Reconciliation of assets
Segment assets	(392)	(414)
Operating Segments \| Reportable Subsegments
Reconciliation of assets
Segment assets	53,154	55,467
Operating Segments \| All Other operating segments
Reconciliation of assets
Segment assets	1,717	1,728
Construction Industries \| Operating Segments \| Reportable Subsegments
Reconciliation of assets
Segment assets	4,259	4,601
Resource Industries \| Operating Segments \| Reportable Subsegments
Reconciliation of assets
Segment assets	6,035	6,505
Energy & Transportation \| Operating Segments \| Reportable Subsegments
Reconciliation of assets
Segment assets	8,582	8,548
Financial Products Segment \| Operating Segments \| Reportable Subsegments
Reconciliation of assets
Segment assets	$ 34,278	$ 35,813

Reconciliations of depreciation

Reconciliations of depreciation and amortization (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of Depreciation and amortization:
Depreciation and amortization	$ 2,432	$ 2,577	$ 2,766
Operating Segments \| Reportable Subsegments
Reconciliation of Depreciation and amortization:
Depreciation and amortization	2,029	2,205	2,303
Consolidating Adjustments \| All Other operating segments
Reconciliation of Depreciation and amortization:
Depreciation and amortization	267	210	225
Consolidating Adjustments \| Cost Centers
Reconciliation of Depreciation and amortization:
Depreciation and amortization	126	135	130
Consolidating Adjustments \| Other
Reconciliation of Depreciation and amortization:
Depreciation and amortization	10	27	108
Construction Industries \| Operating Segments \| Reportable Subsegments
Reconciliation of Depreciation and amortization:
Depreciation and amortization	245	302	367
Resource Industries \| Operating Segments \| Reportable Subsegments
Reconciliation of Depreciation and amortization:
Depreciation and amortization	418	450	462
Energy & Transportation \| Operating Segments \| Reportable Subsegments
Reconciliation of Depreciation and amortization:
Depreciation and amortization	593	624	640
Financial Products Segment \| Operating Segments \| Reportable Subsegments
Reconciliation of Depreciation and amortization:
Depreciation and amortization	$ 773	$ 829	$ 834

Reconciliations of capital expe

Reconciliations of capital expenditures (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of Capital expenditures:
Total capital expenditures	$ 2,115	$ 2,669	$ 2,916
Operating Segments \| Reportable Subsegments
Reconciliation of Capital expenditures:
Total capital expenditures	1,933	2,516	2,755
Consolidating Adjustments \| All Other operating segments
Reconciliation of Capital expenditures:
Total capital expenditures	156	131	170
Consolidating Adjustments \| Cost Centers
Reconciliation of Capital expenditures:
Total capital expenditures	47	101	100
Consolidating Adjustments \| Timing
Reconciliation of Capital expenditures:
Total capital expenditures	19	(11)	42
Consolidating Adjustments \| Other
Reconciliation of Capital expenditures:
Total capital expenditures	(40)	(68)	(151)
Construction Industries \| Operating Segments \| Reportable Subsegments
Reconciliation of Capital expenditures:
Total capital expenditures	213	201	266
Resource Industries \| Operating Segments \| Reportable Subsegments
Reconciliation of Capital expenditures:
Total capital expenditures	125	168	188
Energy & Transportation \| Operating Segments \| Reportable Subsegments
Reconciliation of Capital expenditures:
Total capital expenditures	495	613	742
Financial Products Segment \| Operating Segments \| Reportable Subsegments
Reconciliation of Capital expenditures:
Total capital expenditures	$ 1,100	$ 1,534	$ 1,559

Information about Geogrphic are

Information about Geogrphic areas (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information
External sales and revenues	$ 11,235	$ 9,881	$ 9,997	$ 10,635	$ 13,144	$ 12,758	$ 14,432	$ 13,466	$ 41,748	$ 53,800	$ 54,722
Property, Plant and Equipment, Net	12,401				12,904				12,401	12,904
Inside United States
Segment Reporting Information
External sales and revenues									16,269	22,806	22,690
Property, Plant and Equipment, Net	7,242				7,568				7,242	7,568
Outside the United States
Segment Reporting Information
External sales and revenues									25,479	30,994	$ 32,032
Property, Plant and Equipment, Net	$ 5,159				$ 5,336				$ 5,159	$ 5,336

Restructuring Costs (Details)

Restructuring Costs (Details) - USD ($) $ in Millions	12 Months Ended			52 Months Ended
Restructuring Costs (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019
Restructuring Cost [Abstract]
Restructuring costs	$ 354	$ 236	$ 386
Employee separation costs	271	48
Employee Separation Activity
Liability balance at beginning of period	48	85
Employee separation costs	271	48
Reduction in liability (payments and other adjustments)	155	85
Liability balance at end of period	164	48	85	$ 48
Construction Industries
Restructuring Cost [Abstract]
Restructuring costs	13	4	0
Resource Industries
Restructuring Cost [Abstract]
Restructuring costs	19	5	0
Energy & Transportation
Restructuring Cost [Abstract]
Restructuring costs	55	7	0
Financial Products Segment
Restructuring Cost [Abstract]
Restructuring costs	0	0	0
All Other
Restructuring Cost [Abstract]
Restructuring costs	9	8	0
Other restructuring costs
Restructuring Cost [Abstract]
Restructuring costs	43	122	182
Other operating income (expense) \| Employee separation
Restructuring Cost [Abstract]
Restructuring costs	271	48	112
Other operating income (expense) \| Contract termination
Restructuring Cost [Abstract]
Restructuring costs	2	1	7
Other operating income (expense) \| Long-lived asset impairments
Restructuring Cost [Abstract]
Restructuring costs	38	65	93
Other operating income (expense) \| Defined benefit retirement plan curtailment losses
Restructuring Cost [Abstract]
Restructuring costs	$ 0	0	(8)
September 2015 announcement
Restructuring Cost [Abstract]
Restructuring costs		$ 43	$ 121	$ 1,831

Selected quarterly financial _3

Selected quarterly financial results (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended									12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2017	Dec. 31, 2020		Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2017
Sales and revenues	$ 11,235	$ 9,881	$ 9,997	$ 10,635	$ 13,144	$ 12,758	$ 14,432	$ 13,466		$ 41,748		$ 53,800		$ 54,722
Cost of goods sold	7,784	6,919	7,113	7,266	9,117	8,569	9,941	9,003		29,082		36,630		36,997
Gross margin	2,786	2,309	2,197	2,648	3,269	3,405	3,730	3,721
Profit (loss)	$ 780	$ 668	$ 458	$ 1,092	$ 1,098	$ 1,494	$ 1,620	$ 1,881		$ 2,998	[1]	$ 6,093	[1]	$ 6,147	[1]
Profit (loss) per common share (in dollars per share)	$ 1.43	$ 1.23	$ 0.84	$ 2	$ 2	$ 2.69	$ 2.85	$ 3.29		$ 5.51		$ 10.85		$ 10.39
Profit (loss) per common share - diluted (in dollars per share)	$ 1.42	$ 1.22	$ 0.84	$ 1.98	$ 1.97	$ 2.66	$ 2.83	$ 3.25		$ 5.46	[2]	$ 10.74	[2]	$ 10.26	[2]
Pre-tax pension and other postretirement benefit plan actuarial losses	$ (438)	$ (77)	$ (122)	$ 254	$ (468)					$ (383)		$ (468)		$ (495)
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount														(25)
Charge/ (benefit) to U.S. deferred tax rate change 2017 U.S. tax reform														$ 154
Taxes at U. S. statutory rate (as a percent)										21.00%		21.00%		21.00%		35.00%
Correction of Prior Year Valuation Allowance														$ 59
Valuation allowances										$ 0		$ 0		(29)
Adjustment to estimated tax for mandatory deemed repatriation of non-U.S. earnings								$ 178				178		50
U.S. 2017 tax reform estimated impact									$ 2,371
U.S. state taxing jurisdictions
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount														(63)
Financial Products
Sales and revenues	665	653	687	721	758	$ 784	$ 761	742		2,726		3,045		2,900
Machinery, Energy & Transportation
Sales and revenues	$ 10,570	$ 9,228	$ 9,310	$ 9,914	$ 12,386	$ 11,974	$ 13,671	$ 12,724		$ 39,022		$ 50,755		$ 51,822

[1]	Profit attributable to common shareholders.
[2]	Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Millions	Feb. 01, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Subsequent Event
Net cash paid for acquisition		$ 111	$ 47	$ 392
SPM Oil and Gas [Member] \| Subsequent Event
Subsequent Event
Net cash paid for acquisition	$ 375