CATERPILLAR INC, 10-Q filed on 8/7/2024
Quarterly Report
v3.24.2.u1
Cover Page
 6 Months Ended
Jun. 30, 2024
shares
Entity Information [Line Items]  
Document Type 10-Q
Document Quarterly Report true
Document Period End Date Jun. 30, 2024
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 5205 N. O'Connor Boulevard,
Entity Address, Address Line Two Suite 100,
Entity Address, City or Town Irving,
Entity Address, State or Province TX
Entity Address, Postal Zip Code 75039
City Area Code 972
Local Phone Number 891-7700
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 Common Stock, Shares Outstanding 484,898,116
Entity Central Index Key 0000018230
Amendment Flag false
Current Fiscal Year End Date --12-31
Document Fiscal Year Focus 2024
Document Fiscal Period Focus Q2
Common Stock  
Entity Information [Line Items]  
Title of 12(b) Security Common Stock ($1.00 par value)
Trading Symbol CAT
Security Exchange Name NYSE
5.3% Debentures due September 15, 2035  
Entity Information [Line Items]  
Title of 12(b) Security 5.3% Debentures due September 15, 2035
Trading Symbol CAT35
Security Exchange Name NYSE
v3.24.2.u1
Consolidated Statement of Results of Operations - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Sales and revenues:        
Total sales and revenues $ 16,689 $ 17,318 $ 32,488 $ 33,180
Operating costs:        
Cost of goods sold 10,150 11,065 19,812 21,168
Selling, general and administrative expenses 1,652 1,528 3,229 2,991
Research and development expenses 535 528 1,055 1,000
Other operating (income) expenses 556 300 779 1,176
Total operating costs 13,207 13,666 25,487 26,797
Operating profit 3,482 3,652 7,001 6,383
Other income (expense) 155 127 311 159
Consolidated profit before taxes 3,500 3,652 7,032 6,286
Provision (benefit) for income taxes 836 752 1,524 1,460
Profit of consolidated companies 2,664 2,900 5,508 4,826
Equity in profit (loss) of unconsolidated affiliated companies 17 24 27 40
Profit of consolidated and affiliated companies 2,681 2,924 5,535 4,866
Less: Profit (loss) attributable to noncontrolling interests 0 2 (2) 1
Profit $ 2,681 [1] $ 2,922 [1] $ 5,537 [2] $ 4,865 [2]
Profit per common share (in dollars per share) $ 5.50 $ 5.70 $ 11.28 $ 9.46
Profit per common share - diluted (in dollars per share) $ 5.48 [3] $ 5.67 [3] $ 11.23 [4] $ 9.41 [4]
Weighted-average common shares outstanding (millions)        
Basic (in shares) 487.2 512.9 490.7 514.3
Diluted (in shares) 489.5 [3] 515.0 [3] 493.3 [4] 517.1 [4]
Machinery, Energy & Transportation        
Sales and revenues:        
Total sales and revenues $ 15,840 $ 16,545 $ 30,800 $ 31,644
Financial Products        
Sales and revenues:        
Total sales and revenues 849 773 1,688 1,536
Operating costs:        
Interest expense of Financial Products 314 245 612 462
All other excluding Financial Products        
Operating costs:        
Interest expense excluding Financial Products $ 137 $ 127 $ 280 $ 256
[1] Profit attributable to common shareholders.
[2] Profit attributable to common shareholders.
[3] Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
[4] Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
v3.24.2.u1
Consolidated Statement of Comprehensive Income - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Comprehensive Income [Abstract]        
Profit of consolidated and affiliated companies $ 2,681 $ 2,924 $ 5,535 $ 4,866
Other comprehensive income (loss), net of tax (Note 13):        
Foreign currency translation, net of tax (71) (142) (328) 465
Pension and other postretirement benefits, net of tax (3) (3) (6) (5)
Derivative financial instruments: (62) (41) (62) 43
Available-for-sale securities, net of tax (1) (14) (14) 8
Total other comprehensive income (loss), net of tax (137) (200) (410) 511
Comprehensive income 2,544 2,724 5,125 5,377
Less: comprehensive income (loss) attributable to the noncontrolling interests 0 2 (2) 1
Comprehensive income attributable to shareholders $ 2,544 $ 2,722 $ 5,127 $ 5,376
v3.24.2.u1
Consolidated Statement of Financial Position - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 4,341 $ 6,978
Receivables – trade and other 9,421 9,310
Receivables – finance 9,516 9,510
Prepaid expenses and other current assets 2,736 4,586
Inventories 17,082 16,565
Total current assets 43,096 46,949
Property, plant and equipment – net 12,582 12,680
Long-term receivables – trade and other 1,181 1,238
Long-term receivables – finance 12,797 12,664
Noncurrent deferred and refundable income taxes 2,920 2,816
Intangible assets 488 564
Goodwill 5,264 5,308
Other assets 5,008 5,257
Total assets 83,336 87,476
Short-term borrowings:    
Accounts payable 7,575 7,906
Accrued expenses 4,947 4,958
Accrued wages, salaries and employee benefits 1,677 2,757
Customer advances 2,324 1,929
Dividends payable 684 649
Other current liabilities 2,882 3,123
Long-term debt due within one year:    
Total current liabilities 33,564 34,728
Long-term debt due after one year:    
Liability for postemployment benefits 3,993 4,098
Other liabilities 4,807 4,675
Total liabilities 66,200 67,973
Commitments and contingencies (Notes 11 and 14)
Shareholders’ equity    
Common stock, authorized and issued 5,517 6,403
Treasury stock: (6/30/24 – 329,996,508 shares; 12/31/23 – 315,517,355 shares) at cost (41,612) (36,339)
Profit employed in the business 55,455 51,250
Accumulated other comprehensive income (loss) (2,230) (1,820)
Noncontrolling interests 6 9
Total shareholders’ equity 17,136 19,503
Total liabilities and shareholders’ equity 83,336 87,476
Financial Products    
Short-term borrowings:    
Short-term borrowings 5,298 4,643
Long-term debt due within one year:    
Long-term debt due within one year 8,132 7,719
Long-term debt due after one year:    
Long-term debt due after one year 15,299 15,893
Machinery, Energy & Transportation    
Long-term debt due within one year:    
Long-term debt due within one year 45 1,044
Long-term debt due after one year:    
Long-term debt due after one year $ 8,537 $ 8,579
v3.24.2.u1
Consolidated Statement of Financial Position (Parenthetical) - $ / shares
Jun. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Common stock, par value (in dollars per share) $ 1.00 $ 1.00
Common stock, authorized (in shares) 2,000,000,000 2,000,000,000
Common stock, issued (in shares) 814,894,624 814,894,624
Treasury stock (in shares) 329,996,508 315,517,355
v3.24.2.u1
Consolidated Statement of Changes in Shareholders' Equity - USD ($)
$ in Millions
Total
Common stock
Treasury stock
Profit employed in the business
Accumulated other comprehensive income (loss)
Noncontrolling interests
Beginning balance at Dec. 31, 2022 $ 15,891 $ 6,560 $ (31,748) $ 43,514 $ (2,457) $ 22
Increase (Decrease) in Shareholders' Equity            
Profit of consolidated and affiliated companies 4,866     4,865   1
Foreign currency translation, net of tax 465       465  
Pension and other postretirement benefits, net of tax (5)       (5)  
Derivative financial instruments, net of tax 43       43  
Available-for-sale securities, net of tax 8       8  
Dividends declared [1] (1,285)     (1,285)    
Common shares issued from treasury stock for stock-based compensation (22) (71) 49      
Stock-based compensation expense 118 118        
Common shares repurchased [2] (1,679)   (1,679)      
Outstanding authorized accelerated share repurchase (150) (150)        
Other 6 21 (13)     (2)
Ending balance at Jun. 30, 2023 18,256 6,478 (33,391) 47,094 (1,946) 21
Beginning balance at Mar. 31, 2023 18,170 6,546 (32,108) 45,457 (1,746) 21
Increase (Decrease) in Shareholders' Equity            
Profit of consolidated and affiliated companies 2,924     2,922   2
Foreign currency translation, net of tax (142)       (142)  
Pension and other postretirement benefits, net of tax (3)       (3)  
Derivative financial instruments, net of tax (41)       (41)  
Available-for-sale securities, net of tax (14)       (14)  
Dividends declared [1] (1,285)     (1,285)    
Common shares issued from treasury stock for stock-based compensation 3 (5) 8      
Stock-based compensation expense 74 74        
Common shares repurchased [3] (1,279)   (1,279)      
Outstanding authorized accelerated share repurchase (150) (150)        
Other (1) 13 (12)     (2)
Ending balance at Jun. 30, 2023 18,256 6,478 (33,391) 47,094 (1,946) 21
Beginning balance at Dec. 31, 2023 19,503 6,403 (36,339) 51,250 (1,820) 9
Ending balance at Mar. 31, 2024 17,645 5,663 (40,039) 54,108 (2,093) 6
Beginning balance at Dec. 31, 2023 19,503 6,403 (36,339) 51,250 (1,820) 9
Increase (Decrease) in Shareholders' Equity            
Profit of consolidated and affiliated companies 5,535     5,537   (2)
Foreign currency translation, net of tax (328)       (328)  
Pension and other postretirement benefits, net of tax (6)       (6)  
Derivative financial instruments, net of tax (62)       (62)  
Available-for-sale securities, net of tax (14)       (14)  
Dividends declared [1] (1,332)     (1,332)    
Common shares issued from treasury stock for stock-based compensation 8 (41) 49      
Stock-based compensation expense 119 119        
Common shares repurchased [2] (5,275)   (5,275)      
Outstanding authorized accelerated share repurchase (1,000) (1,000)        
Other (12) 36 (47)     (1)
Ending balance at Jun. 30, 2024 17,136 5,517 (41,612) 55,455 (2,230) 6
Beginning balance at Mar. 31, 2024 17,645 5,663 (40,039) 54,108 (2,093) 6
Increase (Decrease) in Shareholders' Equity            
Profit of consolidated and affiliated companies 2,681     2,681    
Foreign currency translation, net of tax (71)       (71)  
Pension and other postretirement benefits, net of tax (3)       (3)  
Derivative financial instruments, net of tax (62)       (62)  
Available-for-sale securities, net of tax (1)       (1)  
Dividends declared [1] (1,334)     (1,334)    
Common shares issued from treasury stock for stock-based compensation 16 4 12      
Stock-based compensation expense 75 75 0      
Common shares repurchased [3] (1,570)   (1,570)      
Outstanding authorized accelerated share repurchase (250) (250)        
Other 10 25 (15)      
Ending balance at Jun. 30, 2024 $ 17,136 $ 5,517 $ (41,612) $ 55,455 $ (2,230) $ 6
[1] Dividends per share of common stock of $2.71 and $2.50 were declared in the three months ended June 30, 2024 and 2023, respectively
[2]
1 Dividends per share of common stock of $2.71 and $2.50 were declared in the six months ended June 30, 2024 and 2023, respectively.
2 See Note 12 for additional information.
[3] See Note 12 for additional information.
v3.24.2.u1
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) - $ / shares
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]        
Common shares issued, shares, from treasury stock for stock-based compensation (in shares) 203,219 137,444 1,427,357 1,413,775
Common shares repurchased (in shares) 4,578,023 5,914,408 15,906,510 7,616,168
Dividends per share of common stock (dollars per share) $ 2.71 $ 2.50 $ 2.71 $ 2.50
v3.24.2.u1
Consolidated Statement of Cash Flow - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Cash flow from operating activities:    
Profit of consolidated and affiliated companies $ 5,535 $ 4,866
Adjustments to reconcile profit to net cash provided by operating activities:    
Depreciation and amortization 1,055 1,074
Provision (benefit) for deferred income taxes (133) (355)
(Gain) loss on divestiture 164 572
Other 105 106
Changes in assets and liabilities, net of acquisitions and divestitures:    
Receivables – trade and other (245) (465)
Inventories (643) (1,560)
Accounts payable (21) 34
Accrued expenses 69 381
Accrued wages, salaries and employee benefits (1,056) (562)
Customer advances 341 284
Other assets – net 20 81
Other liabilities – net (118) 366
Net cash provided by (used for) operating activities 5,073 4,822
Cash flow from investing activities:    
Capital expenditures – excluding equipment leased to others (841) (683)
Expenditures for equipment leased to others (614) (774)
Proceeds from disposals of leased assets and property, plant and equipment 342 368
Additions to finance receivables (7,446) (6,973)
Collections of finance receivables 6,743 6,759
Proceeds from sale of finance receivables 37 29
Investments and acquisitions (net of cash acquired) (32) (20)
Proceeds from sale of businesses and investments (net of cash sold) (61) (14)
Proceeds from maturities and sale of securities 2,574 463
Investments in securities (523) (1,078)
Other – net 57 41
Net cash provided by (used for) investing activities 236 (1,882)
Cash flow from financing activities:    
Dividends paid (1,283) (1,238)
Common stock issued, including treasury shares reissued 8 (22)
Payments to purchase common stock (6,275) (1,829)
Proceeds from debt issued (original maturities greater than three months): 4,151 3,299
Short-term borrowings – net (original maturities three months or less) 687 (406)
Net cash provided by (used for) financing activities (7,929) (2,499)
Effect of exchange rate changes on cash (17) (60)
Increase (decrease) in cash, cash equivalents and restricted cash (2,637) 381
Cash and short-term investments and restricted cash at beginning of period 6,985 7,013
Cash and short-term investments and restricted cash at end of period 4,348 7,394
Machinery, Energy & Transportation    
Cash flow from financing activities:    
Payments on debt (original maturities greater than three months): (1,014) (95)
Financial Products    
Cash flow from financing activities:    
Payments on debt (original maturities greater than three months): $ (4,203) $ (2,208)
v3.24.2.u1
Nature of Operations and Basis of Presentation
 6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Operations and Basis of Presentation A.  Nature 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.

B.  Basis of presentation
 
In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated results of operations for the three and six months ended June 30, 2024 and 2023, (b) the consolidated comprehensive income for the three and six months ended June 30, 2024 and 2023, (c) the consolidated financial position at June 30, 2024 and December 31, 2023, (d) the consolidated changes in shareholders’ equity for the three and six months ended June 30, 2024 and 2023 and (e) the consolidated cash flow for the six months ended June 30, 2024 and 2023.  The financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC).

Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in our company’s annual report on Form 10-K for the year ended December 31, 2023 (2023 Form 10-K).
 
The December 31, 2023 financial position data included herein is derived from the audited consolidated financial statements included in the 2023 Form 10-K but does not include all disclosures required by U.S. GAAP. Certain amounts for prior periods have been reclassified to conform to the current period financial statement presentation.
Cat Financial has end-user customers and dealers that are variable interest entities (VIEs) of which we are not the primary beneficiary. 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. Credit risk was evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses. See Note 11 for further discussions on a consolidated VIE.
v3.24.2.u1
New Accounting Guidance
 6 Months Ended
Jun. 30, 2024
Accounting Changes and Error Corrections [Abstract]  
New Accounting Guidance New accounting guidance
A. Adoption of new accounting standards

We consider the applicability and impact of all ASUs. We adopted the following ASUs effective January 1, 2024, none of which had a material impact on our financial statements:
ASUDescription
2022-03Fair value measurement – Equity securities subject to contractual sale restrictions
2023-01Leases – Common control arrangements
2023-02Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method

B. Accounting standards issued but not yet adopted

Segment reporting (ASU 2023-07) — In November 2023, the Financial Accounting Standards Board (FASB) issued accounting guidance that requires incremental disclosures related to reportable segments which includes significant segment expense categories and amounts for each reportable segment. The expanded annual disclosures are effective
for our year ending December 31, 2024, and the expanded interim disclosures are effective in 2025 and will be applied retrospectively to all prior periods presented. We are in the process of evaluating the effect of this new guidance on the related disclosures.

Income tax reporting (ASU 2023-09) — In December 2023, the FASB issued accounting guidance to expand the annual disclosure requirements for income taxes, primarily related to the rate reconciliation and income taxes paid. This guidance is effective January 1, 2025, with early adoption permitted. This guidance can be applied prospectively or retrospectively. We are in the process of evaluating the effect of this new guidance on the related disclosures.

All other ASUs issued but not yet adopted were assessed and determined that they either were not applicable or were not expected to have a material impact on our financial statements.
v3.24.2.u1
Sales and Revenue Contract Information
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Sales and Revenue Contract Information Sales and revenue contract information
Trade receivables represent amounts due from dealers and end users for the sale of our products, and include amounts due from wholesale inventory financing provided by Cat Financial for a dealer’s purchase of inventory. We recognize trade receivables from dealers and end users in Receivables – trade and other and Long-term receivables – trade and other in the Consolidated Statement of Financial Position. Trade receivables from dealers and end users were $8,024 million, $7,923 million and $7,551 million as of June 30, 2024, December 31, 2023 and December 31, 2022, respectively. Long-term trade receivables from dealers and end users were $625 million, $589 million and $506 million as of June 30, 2024, December 31, 2023 and December 31, 2022, respectively.

For certain contracts, we invoice for payment when contractual milestones are achieved. We recognize a contract asset when a sale is recognized before achieving the contractual milestones for invoicing. We reduce the contract asset when we invoice for payment and recognize a corresponding trade receivable. Contract assets are included in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position. Contract assets were $243 million, $246 million and $247 million as of June 30, 2024, December 31, 2023 and December 31, 2022, respectively.

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 the Consolidated Statement of Financial Position. Contract liabilities were $2,728 million, $2,389 million and $2,314 million as of June 30, 2024, December 31, 2023 and December 31, 2022, respectively. We reduce the contract liability when revenue is recognized. During the three and six months ended June 30, 2024, we recognized $360 million and $1,173 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2024. During the three and six months ended June 30, 2023, we recognized $398 million and $1,135 million, respectively.

As of June 30, 2024, 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 $13.4 billion, with about one-half of the amount expected to be completed and revenue recognized in the twelve months following June 30, 2024. We have elected the practical expedient not to 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.

See Note 16 for further disaggregated sales and revenues information.
v3.24.2.u1
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-based compensation
 
Accounting for stock-based compensation requires that the cost resulting from all stock-based payments be recognized in the financial statements based on the grant date fair value of the award.  Our stock-based compensation consists of stock options, restricted stock units (RSUs) and performance-based restricted stock units (PRSUs).

We recognized pretax stock-based compensation expense of $75 million and $119 million for the three and six months ended June 30, 2024, respectively, and $74 million and $118 million for the three and six months ended June 30, 2023, respectively.
The following table illustrates the type and fair value of the stock-based compensation awards granted during the six months ended June 30, 2024 and 2023, respectively:

 Six Months Ended June 30, 2024Six Months Ended June 30, 2023
 Shares GrantedWeighted-Average Fair Value Per ShareWeighted-Average Grant Date Stock PriceShares GrantedWeighted-Average Fair Value Per ShareWeighted-Average Grant Date Stock Price
Stock options296,295 $104.27 $338.65 777,275 $75.79 $253.98 
RSUs379,621 $338.65 $338.65 379,426 $253.98 $253.98 
PRSUs169,120 $408.64 $338.65 221,869 $253.98 $253.98 
 
The fair value of our stock options was estimated using the Black-Scholes option-pricing model. The following table provides the assumptions used in determining the fair value of the stock-options granted in the six months ended June 30, 2024 and 2023, respectively:
 
 Grant Year
 20242023
Weighted-average dividend yield2.40%2.60%
Weighted-average volatility30.7%31.0%
Range of volatilities
26.3% - 32.3%
28.5% - 35.5%
Range of risk-free interest rates
4.28% - 5.03%
3.92% - 5.03%
Weighted-average expected lives7 years7 years
 
The PRSUs granted in 2024 contain a market condition and a Monte Carlo simulation was utilized to estimate the fair value of the awards. The following table provides the assumptions used in determining the fair value of the PRSUs granted in the six months ended June 30, 2024:

 Grant Year
 2024
Expected volatility of the Company's stock29.8%
Risk-free interest rate4.38%
As of June 30, 2024, the total remaining unrecognized compensation expense related to nonvested stock-based compensation awards was $241 million, which will be amortized over the weighted-average remaining requisite service periods of approximately 1.8 years.
v3.24.2.u1
Derivative Financial Instruments and Risk Management
 6 Months Ended
Jun. 30, 2024
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, commodity prices, and certain deferred compensation plan liabilities.  Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate, commodity price and certain deferred compensation plan liability 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, commodity forward and option contracts and total return swap 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 at their fair value on the Consolidated Statement of Financial Position. 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 AOCI changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge, to the extent effective, on the Consolidated Statement of Financial Position until we reclassify them 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 the Consolidated Statement of Cash Flow.  We include cash flows from undesignated derivative financial instruments in the investing category on the Consolidated Statement of Cash Flow.
 
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 on the Consolidated Statement of Financial Position 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.
 
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 June 30, 2024, the maximum term of these outstanding contracts at inception was approximately 60 months.
 
We generally designate as cash flow hedges at inception of the contract any foreign currency 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.
 
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.
 
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.

Deferred Compensation Plan Liability Risk

We are also exposed to variability in compensation expense related to certain non-qualified deferred compensation obligations to employees. We utilize total return swaps to economically hedge this exposure to offset the related compensation expense. All such total return swap contracts are undesignated.
The location and fair value of derivative instruments reported in the Consolidated Statement of Financial Position were as follows:

(Millions of dollars)Fair Value
June 30, 2024December 31, 2023
Assets 1
Liabilities 2
Assets 1
Liabilities 2
Designated derivatives
Foreign exchange contracts$322 $(140)$389 $(155)
Interest rate contracts15 (243)58 (209)
Total$337 $(383)$447 $(364)
Undesignated derivatives
Foreign exchange contracts$54 $(22)$55 $(82)
Commodity contracts6 (4)18 (9)
Total return swap contracts5 (2)— — 
Total$65 $(28)$73 $(91)
1 Assets are classified as Receivables - trade and other or Long-term receivables - trade and other.
2 Liabilities are classified as Accrued expenses or Other liabilities.

The total notional amounts of the derivative instruments as of June 30, 2024 and December 31, 2023 were $24.7 billion and $25.6 billion, respectively. 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 referencing the notional amounts and by other terms of the derivatives, such as foreign currency exchange rates, interest rates, commodity prices or certain deferred compensation plan liabilities.

Gains (Losses) on derivative instruments are categorized as follows:

(Millions of dollars)Three Months Ended June 30,
Fair Value / Undesignated HedgesCash Flow Hedges
Gains (Losses) Recognized on the Consolidated Statement of Results of Operations1
Gains (Losses) Recognized in AOCI
Gains (Losses) Reclassified from AOCI2
202420232024202320242023
Foreign exchange contracts$64 $31 $(13)$(26)$56 $28 
Interest rate contracts(38)(34)4 14 14 14 
Commodity contracts11 (20)— — — — 
Total return swap contracts(12)— — — — — 
Total$25 $(23)$(9)$(12)$70 $42 
1 Foreign exchange contract, Commodity contract and Total return swap contract gains (losses) are included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense of Financial Products and Interest expense excluding Financial Products.
2 Foreign exchange contract gains (losses) are primarily included in Other income (expense). Interest rate contract gains (losses) are primarily included in Interest expense of Financial Products.
(Millions of dollars)Six Months Ended June 30,
Fair Value / Undesignated HedgesCash Flow Hedges
Gains (Losses) Recognized on the Consolidated Statement of Results of Operations 1
Gains (Losses) Recognized in AOCI
Gains (Losses) Reclassified from AOCI 2
202420232024202320242023
Foreign exchange contracts$93 $3 $82 $32 $147 $(37)
Interest rate contracts(74)(60)15 12 29 27 
Commodity contracts1 (12)— — — — 
Total return swap contracts18 — — — — — 
Total$38 $(69)$97 $44 $176 $(10)
1 Foreign exchange contract, Commodity contract and Total return swap contract gains (losses) are included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense of Financial Products and Interest expense excluding Financial Products.
2 Foreign exchange contract gains (losses) are primarily included in Other income (expense). Interest rate contract gains (losses) are primarily included in Interest expense of Financial Products.

The following amounts were recorded on the Consolidated Statement of Financial Position related to cumulative basis adjustments for fair value hedges:

(Millions of dollars)Carrying Value of the Hedged LiabilitiesCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities
June 30, 2024December 31, 2023June 30, 2024December 31, 2023
Long-term debt due within one year$793 $982 $(11)$(23)
Long-term debt due after one year5,070 4,245 (225)(156)
Total$5,863 $5,227 $(236)$(179)

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 may 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 typically not required of the counterparties or of our company under the master netting agreements. As of June 30, 2024 and December 31, 2023, 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:

(Millions of dollars)June 30, 2024December 31, 2023
AssetsLiabilitiesAssetsLiabilities
Gross Amounts Recognized$402 $(411)$520 $(455)
Financial Instruments Not Offset(155)155 (202)202 
Net Amount$247 $(256)$318 $(253)
v3.24.2.u1
Inventories
 6 Months Ended
Jun. 30, 2024
Inventory Disclosure [Abstract]  
Inventories Inventories
 
Inventories (principally using the last-in, first-out (LIFO) method) were comprised of the following:
 
(Millions of dollars)June 30,
2024		December 31,
2023
Raw materials$6,662 $6,492 
Work-in-process1,465 1,411 
Finished goods8,593 8,308 
Supplies362 354 
Total inventories$17,082 $16,565 
v3.24.2.u1
Intangible Assets and Goodwill
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill Intangible assets and goodwill
 
A.  Intangible assets
 
Intangible assets were comprised of the following:
 
 June 30, 2024
(Millions of dollars)Gross
Carrying
Amount		Accumulated
Amortization		Net
Customer relationships$2,226 $(1,882)$344 
Intellectual property496 (390)106 
Other117 (79)38 
Total finite-lived intangible assets$2,839 $(2,351)$488 

 December 31, 2023
Gross
Carrying
Amount		Accumulated
Amortization		Net
Customer relationships$2,232 $(1,814)$418 
Intellectual property484 (380)104 
Other117 (75)42 
Total finite-lived intangible assets$2,833 $(2,269)$564 

Amortization expense for the three and six months ended June 30, 2024 was $43 million and $87 million, respectively. Amortization expense for the three and six months ended June 30, 2023 was $64 million and $130 million, respectively. Amortization expense related to intangible assets is expected to be:

(Millions of dollars)
Remaining Six Months of 20242025202620272028Thereafter
$88$167$96$33$26$78
 
B.  Goodwill
 
No goodwill was impaired during the six months ended June 30, 2024 or 2023.
The changes in carrying amount of goodwill by reportable segment for the six months ended June 30, 2024 were as follows: 

(Millions of dollars)December 31,
2023
Other Adjustments 1
June 30,
2024
Construction Industries
Goodwill$277 $(16)$261 
Impairments(22)— (22)
Net goodwill255 (16)239 
Resource Industries
Goodwill4,151 (12)4,139 
Impairments(1,175)— (1,175)
Net goodwill2,976 (12)2,964 
Energy & Transportation
Goodwill2,959 (11)2,948 
Impairments(925)— (925)
Net goodwill2,034 (11)2,023 
All Other 2
Goodwill43 (5)38 
Consolidated total
Goodwill7,430 (44)7,386 
Impairments(2,122)— (2,122)
Net goodwill$5,308 $(44)$5,264 

1 Other adjustments are comprised primarily of foreign currency translation.
2 Includes All Other Segment (See Note 16).
v3.24.2.u1
Investments in Debt and Equity Securities
 6 Months Ended
Jun. 30, 2024
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, which we record at fair value and primarily include in Other assets in the Consolidated Statement of Financial Position.

We classify debt securities primarily as available-for-sale. We include the unrealized gains and losses arising from the revaluation of available-for-sale debt securities, net of applicable deferred income taxes, in equity (AOCI in the Consolidated Statement of Financial Position). We include the unrealized gains and losses arising from the revaluation of the equity securities in Other income (expense) in the Consolidated Statement of Results of Operations. We generally determine realized gains and losses on sales of investments using the specific identification method for available-for-sale debt and equity securities and include them in Other income (expense) in the Consolidated Statement of Results of Operations.

The cost basis and fair value of available-for-sale debt securities with unrealized gains and losses included in equity (AOCI in the Consolidated Statement of Financial Position) were as follows:
Available-for-sale debt securities
June 30, 2024December 31, 2023
(Millions of dollars)
Cost
Basis
Unrealized Pretax Net Gains
(Losses)
Fair
Value
Cost
Basis
Unrealized Pretax Net Gains
(Losses)
Fair
Value
Government debt securities      
U.S. treasury bonds$10 $— $10 $10 $— $10 
Other U.S. and non-U.S. government bonds67 (2)65 62 (2)60 
Corporate debt securities     
Corporate bonds and other debt securities2,870 (45)2,825 3,031 (36)2,995 
Asset-backed securities204 (1)203 195 (3)192 
Mortgage-backed debt securities  
U.S. governmental agency452 (33)419 433 (23)410 
Residential2 (1)1 3 (1)2 
Commercial136 (8)128 137 (9)128 
Total available-for-sale debt securities$3,741 $(90)$3,651 $3,871 $(74)$3,797 
Available-for-sale debt securities in an unrealized loss position:
 June 30, 2024
 
Less than 12 months 1
12 months or more 1
Total
(Millions of dollars)
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Government debt securities      
Other U.S. and non-U.S. government bonds$— $— $60 $2 $60 $2 
Corporate debt securities
Corporate bonds826 3 1,240 46 2,066 49 
Asset-backed securities8 — 37 3 45 3 
Mortgage-backed debt securities
U.S. governmental agency61 1 307 32 368 33 
Residential— — 1 1 1 1 
Commercial6 — 119 8 125 8 
Total$901 $4 $1,764 $92 $2,665 $96 
 December 31, 2023
 
Less than 12 months 1
12 months or more 1
Total
(Millions of dollars)
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Government debt securities      
Other U.S. and non-U.S. government bonds$— $— $25 $3 $25 $3 
Corporate debt securities
Corporate bonds765 — 1,011 45 1,776 45 
Asset-backed securities9 — 97 3 106 3 
Mortgage-backed debt securities      
U.S. governmental agency33 — 287 25 320 25 
Commercial2 — 121 9 123 9 
Total$809 $— $1,541 $85 $2,350 $85 
1 Indicates the length of time that individual securities have been in a continuous unrealized loss position.
The unrealized losses on our investments in government debt securities, corporate debt securities, and mortgage-backed debt securities relate to changes in underlying interest rates and credit spreads since time of purchase. We do not intend to sell the investments, and it is not likely that we will be required to sell the investments before recovery of their respective amortized cost basis. In addition, we did not expect credit-related losses on these investments as of June 30, 2024.

The cost basis and fair value of available-for-sale debt securities at June 30, 2024, 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.
        
June 30, 2024
(Millions of dollars)Cost BasisFair Value
Due in one year or less$1,066 $1,056 
Due after one year through five years1,747 1,711 
Due after five years through ten years223 220 
Due after ten years115 116 
U.S. governmental agency mortgage-backed securities452 419 
Residential mortgage-backed securities2 1 
Commercial mortgage-backed securities136 128 
Total debt securities – available-for-sale$3,741 $3,651 
  
Sales of available-for-sale debt securities:  
 Three Months Ended June 30,Six Months Ended June 30,
(Millions of dollars)2024202320242023
Proceeds from the sale of available-for-sale securities$300 $216 $660 $439 
Gross gains from the sale of available-for-sale securities$— $— $— $— 
Gross losses from the sale of available-for-sale securities$1 $— $2 $— 

In addition, we had $1,900 million of investments in time deposits classified as held-to-maturity debt securities as of December 31, 2023. We did not have any investments classified as held-to-maturity debt securities as of June 30, 2024. These investments matured within one year and were included in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position. We record held-to-maturity debt securities at amortized cost, which approximates fair value.

For the three months ended June 30, 2024 and 2023, the net unrealized gains (losses) for equity securities held at June 30, 2024 and 2023 were $(3) million and $(4) million, respectively. For the six months ended June 30, 2024 and 2023, the net unrealized gains (losses) for equity securities held at June 30, 2024 and 2023 were $14 million and $(14) million, respectively.
v3.24.2.u1
Postretirement Benefits
 6 Months Ended
Jun. 30, 2024
Retirement Benefits [Abstract]  
Postretirement Benefits Postretirement benefits
 
A.  Pension and postretirement benefit costs    
U.S. Pension
Benefits
Non-U.S. Pension
Benefits
Other
Postretirement
Benefits
June 30,June 30,June 30,
(Millions of dollars)202420232024202320242023
For the three months ended:      
Components of net periodic benefit cost:      
Service cost$— $— $11 $10 $17 $17 
Interest cost157 164 31 30 33 36 
Expected return on plan assets (175)(172)(42)(40)(2)(3)
Amortization of prior service cost (credit)— — — — (4)(3)
Net periodic benefit cost (benefit) 1
$(18)$(8)$— $— $44 $47 
For the six months ended:
Components of net periodic benefit cost:
Service cost$— $— $22 $20 $34 $34 
Interest cost313 328 61 61 66 72 
Expected return on plan assets (350)(344)(84)(80)(4)(6)
Amortization of prior service cost (credit)— — — — (7)(6)
Net periodic benefit cost (benefit) 1
$(37)$(16)$(1)$1 $89 $94 
1 The service cost component is included in Operating costs. All other components are included in Other income (expense).

We made $59 million and $172 million of contributions to our pension and other postretirement plans during the three and six months ended June 30, 2024, respectively. We currently anticipate full-year 2024 contributions of approximately $273 million.
 
B.  Defined contribution benefit costs
 
Total company costs related to our defined contribution plans, which are included in Operating costs in the Consolidated Statement of Results of Operations, were as follows:
 
 Three Months Ended June 30,Six Months Ended June 30,
(Millions of dollars)2024202320242023
U.S. Plans 1
$115 $136 $338 $285 
Non-U.S. Plans32 29 62 58 
 $147 $165 $400 $343 
1 Includes costs related to our non-qualified deferred compensation plans. We utilize total return swaps to economically hedge this exposure to offset the related costs. See Note 5 for additional information.
v3.24.2.u1
Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases Leases
Revenues from finance and operating leases, primarily included in Revenues of Financial Products on the Consolidated Statement of Results of Operations, were as follows:

Three Months Ended June 30,Six Months Ended June 30,
(Millions of dollars)2024202320242023
Finance lease revenue$107 $105 $215 $209 
Operating lease revenue293 275 606 550 
Total$400 $380 $821 $759 
We present revenues net of sales and other related taxes.
Leases Leases
Revenues from finance and operating leases, primarily included in Revenues of Financial Products on the Consolidated Statement of Results of Operations, were as follows:

Three Months Ended June 30,Six Months Ended June 30,
(Millions of dollars)2024202320242023
Finance lease revenue$107 $105 $215 $209 
Operating lease revenue293 275 606 550 
Total$400 $380 $821 $759 
We present revenues net of sales and other related taxes.
v3.24.2.u1
Guarantees and Product Warranty
 6 Months Ended
Jun. 30, 2024
Guarantees and Product Warranties [Abstract]  
Guarantees and Product Warranty Guarantees and product warranty
 
We have provided various guarantees that have varying terms and limit potential payment. Under the guarantees, non-performance by the third-parties could require Caterpillar to satisfy the contractual obligation by providing goods, services or financial compensation. The maximum potential amount of future payments (undiscounted and without reduction for any amounts possibly recoverable) that we could be required to make under the guarantees was $406 million and $353 million at June 30, 2024 and December 31, 2023, respectively.

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.  
 
Cat Financial provides guarantees to purchase certain loans of Caterpillar dealers from a special-purpose corporation (SPC) that qualifies as a variable interest entity. Cat Financial receives a fee for providing this guarantee. 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 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 June 30, 2024 and December 31, 2023, the SPC’s assets of $1.35 billion and $1.35 billion, respectively, were primarily comprised of loans to dealers, and the SPC’s liabilities of $1.35 billion and $1.35 billion, 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.

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 six months ended June 30 was as follows:

Six Months Ended June 30,
(Millions of dollars)20242023
Warranty liability, beginning of period$1,894 $1,761 
Reduction in liability (payments)(387)(410)
Increase in liability (new warranties) 276 471 
Warranty liability, end of period$1,783 $1,822 
  
v3.24.2.u1
Profit Per Share
 6 Months Ended
Jun. 30, 2024
Earnings Per Share Reconciliation [Abstract]  
Profit Per Share Profit per share
 
Computations of profit per share:Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions except per share data)2024202320242023
Profit for the period (A) 1
$2,681 $2,922 $5,537 $4,865 
Determination of shares (in millions): 
Weighted-average number of common shares outstanding (B)487.2512.9490.7514.3
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price2.32.12.62.8
Average common shares outstanding for fully diluted computation (C) 2
489.5515.0493.3517.1
Profit per share of common stock:  
Assuming no dilution (A/B)$5.50 $5.70 $11.28 $9.46 
Assuming full dilution (A/C) 2
$5.48 $5.67 $11.23 $9.41 
Shares outstanding as of June 30, (in millions)484.9 510.1 
1 Profit attributable to common shareholders.
2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

For the three and six months ended June 30, 2024 and 2023, we excluded 0.3 million and 0.8 million of outstanding stock options, respectively, from the computation of diluted earnings per share because the effect would have been antidilutive.

For the three and six months ended June 30, 2024, we repurchased 4.6 million and 15.9 million shares of Caterpillar common stock, respectively, at an aggregate cost of $1.6 billion and $5.3 billion, respectively. For the three and six months ended June 30, 2023, we repurchased 5.9 million and 7.6 million shares of Caterpillar common stock, respectively, at an aggregate cost of $1.3 billion and $1.7 billion, respectively. We made these purchases through the combination of accelerated stock repurchase (ASR) agreements with third-party financial institutions and open market transactions in 2024 and 2023.
In the first quarter of 2024, we entered into ASR agreements to repurchase an aggregate of $3.50 billion of common stock. We advanced the $3.50 billion and received approximately 7.6 million shares of Caterpillar common stock with a value of $2.45 billion. In the second quarter of 2024, we entered into ASR agreements to repurchase an aggregate of $1.00 billion of common stock. We advanced the $1.00 billion and received approximately 2.2 million shares of Caterpillar common stock with a value of $750 million. These ASR agreements may last into the fourth quarter of 2024. The final number of shares to ultimately be purchased will be based on the average of the daily volume-weighted average prices of our common stock during the term of the ASR agreements, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR agreements. The remaining $1.30 billion was evaluated as unsettled forward contracts and was classified as a reduction to Common stock within the Consolidated Statement of Financial Position.
v3.24.2.u1
Accumulated Other Comprehensive Income (Loss)
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss)
We present comprehensive income and its components in the Consolidated Statement of Comprehensive Income. Changes in the balances for each component of AOCI were as follows:

Three Months Ended June 30,Six Months Ended June 30,
(Millions of dollars)2024202320242023
Foreign currency translation:
Beginning balance$(2,039)$(1,721)$(1,782)$(2,328)
Gains (losses) on foreign currency translation(128)(144)(341)(41)
Less: Tax provision /(benefit)4 (2)15 (12)
Net gains (losses) on foreign currency translation(132)(142)(356)(29)
(Gains) losses reclassified to earnings61 — 28 494 
Less: Tax provision /(benefit)— — — — 
Net (gains) losses reclassified to earnings61 — 28 494 
Other comprehensive income (loss), net of tax(71)(142)(328)465 
Ending balance$(2,110)$(1,863)$(2,110)$(1,863)
Pension and other postretirement benefits
Beginning balance$(52)$(41)$(49)$(39)
Current year prior service credit (cost)— — — — 
Less: Tax provision /(benefit)— — — — 
Net current year prior service credit (cost)— — — — 
Amortization of prior service (credit) cost(4)(3)(7)(6)
Less: Tax provision /(benefit)(1)— (1)(1)
Net amortization of prior service (credit) cost(3)(3)(6)(5)
Other comprehensive income (loss), net of tax(3)(3)(6)(5)
Ending balance$(55)$(44)$(55)$(44)
Derivative financial instruments
Beginning balance$67 $112 $67 $28 
Gains (losses) deferred(9)(12)97 44 
Less: Tax provision /(benefit)(1)(3)27 9 
Net gains (losses) deferred(8)(9)70 35 
(Gains) losses reclassified to earnings(70)(42)(176)10 
Less: Tax provision /(benefit)(16)(10)(44)2 
Net (gains) losses reclassified to earnings(54)(32)(132)8 
Other comprehensive income (loss), net of tax(62)(41)(62)43 
Ending balance$5 $71 $5 $71 
Available-for-sale securities
Beginning balance$(69)$(96)$(56)$(118)
Gains (losses) deferred(1)(16)(18)10 
Less: Tax provision /(benefit)1 (2)(2)2 
Net gains (losses) deferred(2)(14)(16)8 
(Gains) losses reclassified to earnings1 — 2 — 
Less: Tax provision /(benefit)— — — — 
Net (gains) losses reclassified to earnings1 — 2 — 
Other comprehensive income (loss), net of tax(1)(14)(14)8 
Ending balance$(70)$(110)$(70)$(110)
Total AOCI Ending Balance at June 30,
$(2,230)$(1,946)$(2,230)$(1,946)
v3.24.2.u1
Environmental and Legal Matters
 6 Months Ended
Jun. 30, 2024
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.

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.
v3.24.2.u1
Income Taxes
 6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income taxes
 
The effective tax rate for the three months ended June 30, 2024 of 23.9 percent was negatively impacted by losses for the divestiture of two non-U.S. entities with no related tax benefit compared to 20.6 percent for the three months ended June 30, 2023 which included a benefit due to a change in a valuation allowance for certain deferred tax assets. The effective tax rate for the six months ended June 30, 2024 was 21.7 percent compared to 23.2 percent for the six months ended June 30, 2023.
v3.24.2.u1
Segment Information
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Information Segment information
 
A.    Basis for segment information
 
Our Executive Office is comprised of a Chief Executive Officer (CEO), Chief Operating Officer (COO), four Group Presidents, a Chief Financial Officer (CFO), a Chief Legal Officer and General Counsel and a Chief Human Resources Officer. The COO, 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 COO/Group President/CFO level. As such, the CEO serves as our Chief Operating Decision Maker, and operating segments are primarily based on the COO/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 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 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; cold planers; compactors; compact track loaders; forestry machines; material handlers; motor graders; pipelayers; road reclaimers; skid steer loaders; telehandlers; track-type loaders; track-type tractors (small, medium); track excavators (mini, small, medium, large); wheel excavators; wheel loaders (compact, small, medium); 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 and quarry and aggregates. 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; 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; wide-body trucks; 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, autonomous machine capabilities, safety services and mining performance solutions. Resource Industries also manages areas that provide services to other parts of the company, including strategic procurement, lean center of excellence, integrated manufacturing, research and development for hydraulic systems, automation, electronics and software for Caterpillar machines and engines. 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 services across industries serving Oil and Gas, Power Generation, Industrial and Transportation applications, including marine- and rail-related businesses as well as product support of on-highway engines. Responsibilities include business strategy, product design, product management, development and testing, manufacturing, marketing and sales and product support. The product and services portfolio includes turbines, centrifugal gas compressors, and turbine-related services; reciprocating engine-powered generator sets; integrated systems and solutions used in the electric power generation industry; reciprocating engines, drivetrain and integrated systems and solutions for the marine and oil and gas industries; reciprocating engines, drivetrain and integrated systems and solutions supplied to the industrial industry as well as Caterpillar machines; electrified powertrain and zero-emission power sources and service solutions development; and diesel-electric locomotives and components and other rail-related products and services, including remanufacturing and leasing. Responsibilities also include the remanufacturing of Caterpillar reciprocating engines and components and remanufacturing services for other companies. 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 and services, as well as financing for power generation facilities that, in most cases, incorporate Caterpillar products. Financing plans include operating and finance leases, revolving charge accounts, installment sale contracts, repair/rebuild financing, 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 and maintenance plans 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 Segment: Primarily includes activities such as: business strategy; product management and development; manufacturing and sourcing of wear and maintenance components primarily for Cat® products; parts distribution; integrated logistics solutions; distribution services responsible for dealer development and administration, including a 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. Results for the All Other Segment are included 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. 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 31 to 33 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 income/costs: May include costs for employee separation, long-lived asset impairments, contract terminations and (gains)/losses on divestitures. 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. See Note 20 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 three and six months ended June 30, 2024 and 2023, 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 RevenuesIntersegment Sales and RevenuesTotal Sales and Revenues
Three Months Ended June 30, 2024    
Construction Industries$3,957 $677 $1,047 $975 $6,656 $27 $6,683 
Resource Industries1,206 524 442 950 3,122 84 3,206 
Energy & Transportation3,308 439 1,421 912 6,080 1,257 7,337 
Financial Products Segment668 101 124 111 1,004 
1
— 1,004 
Total sales and revenues from reportable segments9,139 1,741 3,034 2,948 16,862 1,368 18,230 
All Other Segment13 — 4 12 29 79 108 
Corporate Items and Eliminations(109)(22)(41)(30)(202)(1,447)(1,649)
Total Sales and Revenues$9,043 $1,719 $2,997 $2,930 $16,689 $— $16,689 
Three Months Ended June 30, 2023    
Construction Industries$3,968 $566 $1,438 $1,149 $7,121 $33 $7,154 
Resource Industries1,342 538 517 1,076 3,473 90 3,563 
Energy & Transportation3,120 459 1,479 899 5,957 1,262 7,219 
Financial Products Segment593 102 118 110 923 
1
— 923 
Total sales and revenues from reportable segments9,023 1,665 3,552 3,234 17,474 1,385 18,859 
All Other Segment16 — 4 14 34 82 116 
Corporate Items and Eliminations(117)(23)(23)(27)(190)(1,467)(1,657)
Total Sales and Revenues$8,922 $1,642 $3,533 $3,221 $17,318 $— $17,318 
1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other Segment of $180 million and $172 million in the three months ended June 30, 2024 and 2023, respectively.
Sales and Revenues by Geographic Region
(Millions of dollars)
North
 America
Latin
 America
EAME
Asia/
 Pacific
External Sales and RevenuesIntersegment Sales and RevenuesTotal Sales and Revenues
Six Months Ended June 30, 2024    
Construction Industries$7,790 $1,272 $2,043 $1,968 $13,073 $34 $13,107 
Resource Industries2,470 1,000 907 1,841 6,218 181 6,399 
Energy & Transportation6,259 847 2,715 1,746 11,567 2,451 14,018 
Financial Products Segment1,327 202 247 219 1,995 
1
— 1,995 
Total sales and revenues from reportable segments17,846 3,321 5,912 5,774 32,853 2,666 35,519 
All Other Segment31 (1)8 25 63 154 217 
Corporate Items and Eliminations(261)(42)(71)(54)(428)(2,820)(3,248)
Total Sales and Revenues$17,616 $3,278 $5,849 $5,745 $32,488 $— $32,488 
Six Months Ended June 30, 2023    
Construction Industries$7,576 $1,165 $2,774 $2,310 $13,825 $75 $13,900 
Resource Industries2,650 1,012 1,116 2,054 6,832 158 6,990 
Energy & Transportation5,692 839 2,863 1,618 11,012 2,461 13,473 
Financial Products Segment1,168 206 232 219 1,825 
1
— 1,825 
Total sales and revenues from reportable segments17,086 3,222 6,985 6,201 33,494 2,694 36,188 
All Other Segment34 — 8 27 69 158 227 
Corporate Items and Eliminations(248)(41)(42)(52)(383)(2,852)(3,235)
Total Sales and Revenues$16,872 $3,181 $6,951 $6,176 $33,180 $— $33,180 
1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other Segment of $357 million and $334 million in the six months ended June 30, 2024 and 2023, respectively.
For the three and six months ended June 30, 2024 and 2023, Energy & Transportation segment sales by end user application were as follows:

Energy & Transportation External Sales
Three Months Ended June 30,Six Months Ended June 30,
(Millions of dollars)2024202320242023
Oil and gas$1,829 $1,760 $3,397 $3,074 
Power generation1,885 1,645 3,503 2,929 
Industrial1,045 1,318 2,034 2,573 
Transportation1,321 1,234 2,633 2,436 
Energy & Transportation External Sales$6,080 $5,957 $11,567 $11,012 

Reconciliation of Consolidated profit before taxes:  
(Millions of dollars)Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Profit from reportable segments:
Construction Industries$1,741 $1,803 $3,505 $3,593 
Resource Industries718 740 1,448 1,504 
Energy & Transportation1,525 1,269 2,826 2,326 
Financial Products Segment227 240 520 472 
Total profit from reportable segments4,211 4,052 8,299 7,895 
Profit from All Other Segment21 10 45 21 
Cost centers(2)13 12 43 
Corporate costs(276)(211)(477)(449)
Timing82 95 15 (111)
Restructuring income (costs)(258)(31)(252)(642)
Methodology differences:
Inventory/cost of sales9 13 3 139 
Postretirement benefit expense1 (40)(55)(71)
Stock-based compensation expense(75)(74)(119)(118)
Financing costs(41)(52)(69)(102)
Currency21 54 108 28 
Other income/expense methodology differences(168)(158)(418)(304)
Other methodology differences(25)(19)(60)(43)
Total consolidated profit before taxes$3,500 $3,652 $7,032 $6,286 
Reconciliation of Assets:
(Millions of dollars)June 30, 2024December 31, 2023
Assets from reportable segments:
Construction Industries$5,696 $5,384 
Resource Industries5,611 5,742 
Energy & Transportation11,119 10,555 
Financial Products Segment36,221 35,685 
Total assets from reportable segments58,647 57,366 
Assets from All Other Segment1,928 1,890 
Items not included in segment assets:  
Cash and cash equivalents3,481 6,106 
Deferred income taxes2,800 2,668 
Goodwill and intangible assets4,138 4,452 
Property, plant and equipment – net and other assets4,457 6,548 
Inventory methodology differences(3,493)(3,169)
Liabilities included in segment assets11,974 11,781 
Other(596)(166)
Total assets$83,336 $87,476 
Reconciliation of Depreciation and amortization:
(Millions of dollars)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Depreciation and amortization from reportable segments:
   Construction Industries$57 $54 $113 $108 
   Resource Industries63 82 126 169 
   Energy & Transportation143 133 280 262 
   Financial Products Segment185 181 370 359 
Total depreciation and amortization from reportable segments448 450 889 898 
Items not included in segment depreciation and amortization:
All Other Segment62 60 123 117 
Cost centers24 22 47 42 
Other(3)10 (4)17 
Total depreciation and amortization$531 $542 $1,055 $1,074 
Reconciliation of Capital expenditures:    
(Millions of dollars)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Capital expenditures from reportable segments:
Construction Industries$55 $51 $113 $83 
Resource Industries52 44 86 70 
Energy & Transportation257 177 379 346 
Financial Products Segment320 410 554 689 
Total capital expenditures from reportable segments684 682 1,132 1,188 
Items not included in segment capital expenditures:
All Other Segment57 49 86 75 
Cost centers24 22 54 44 
Timing(37)(27)208 185 
Other(9)(19)(25)(35)
Total capital expenditures$719 $707 $1,455 $1,457 
v3.24.2.u1
Cat Financial Financing Activities
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Cat Financial Financing Activities Cat Financial financing activities
 
Allowance for credit losses

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. Cat Financial also provides financing for power generation facilities that, in most cases, incorporate Caterpillar products. The average original term of Cat Financial's customer finance receivable portfolio was approximately 51 months with an average remaining term of approximately 27 months as of June 30, 2024.

Cat Financial typically maintains a security interest in financed equipment and generally 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 three and six months ended June 30, 2024, Cat Financial's forecasts reflected a continuation of the trend of historically low unemployment rates as well as low delinquencies within their portfolio. However, industry delinquencies show an increasing trend as the central bank actions aimed at reducing inflation have weakened global economic growth. 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 a variety of secured and
unsecured loans to Caterpillar dealers.
    
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.

In general, Cat Financial's Dealer portfolio segment has not historically experienced large increases or decreases in credit losses based on changes in economic conditions due to its close working relationships with the dealers and their financial strength. Therefore, Cat Financial made no adjustments to historical loss rates during the three and six months ended June 30, 2024.

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. 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 Eurasia.
•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.
•Power - Finance receivables originated worldwide related to 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). Generally, the amount of the write-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost of the receivable. Subsequent recoveries, if any, are credited to the allowance for credit losses when received.

An analysis of Cat Financial's allowance for credit losses was as follows:

   
 (Millions of dollars)Three Months Ended June 30, 2024Three Months Ended June 30, 2023
CustomerDealerTotalCustomerDealerTotal
Beginning balance$273 $4 $277 $278 $65 $343 
Write-offs(33)— (33)(21)— (21)
Recoveries15 — 15 13 — 13 
Provision for credit losses 1
15 — 15 (6)(15)(21)
Other(24)— (24)1 — 1 
Ending balance$246 $4 $250 $265 $50 $315 
   
Six Months Ended June 30, 2024Six Months Ended June 30, 2023
CustomerDealerTotalCustomerDealerTotal
Beginning balance$276 $51 $327 $277 $65 $342 
Write-offs(56)(47)(103)(41)— (41)
Recoveries30 — 30 23 — 23 
Provision for credit losses 1
24 — 24 4 (15)(11)
Other(28)— (28)2 — 2 
Ending balance$246 $4 $250 $265 $50 $315 
Finance Receivables$20,740 $1,780 $22,520 $19,814 $1,793 $21,607 
1 Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables.
Gross write-offs by origination year for Cat Financial's Customer portfolio segment were as follows:

      
 (Millions of dollars)Three Months Ended June 30, 2024
20242023202220212020PriorRevolving
Finance
Receivables		Total
North America$— $5 $2 $1 $— $1 $3 $12 
EAME— 1 1 1 1 — — 4 
Asia/Pacific— 1 1 2 — — — 4 
Latin America— — 2 2 1 8 — 13 
Total$— $7 $6 $6 $2 $9 $3 $33 
Three Months Ended June 30, 2023
20232022202120202019PriorRevolving
Finance
Receivables		Total
North America$— $2 $2 $1 $1 $1 $3 $10 
EAME— — 2 1 — 1 — 4 
Asia/Pacific— 1 1 2 — — — 4 
Latin America— 2 1 — — — — 3 
Total$— $5 $6 $4 $1 $2 $3 $21 
Six Months Ended June 30, 2024
20242023202220212020PriorRevolving
Finance
Receivables		Total
North America$— $8 $6 $3 $1 $1 $6 $25 
EAME— 2 2 2 1 — — 7 
Asia/Pacific— 2 3 3 1 — — 9 
Latin America— — 3 3 1 8 — 15 
Total$— $12 $14 $11 $4 $9 $6 $56 
Six Months Ended June 30, 2023
20232022202120202019PriorRevolving
Finance
Receivables		Total
North America$— $5 $5 $1 $1 $1 $7 $20 
EAME— 1 2 2 — 1 — 6 
Asia/Pacific— 1 3 3 1 — — 8 
Latin America— 2 2 2 1 — — 7 
Total$— $9 $12 $8 $3 $2 $7 $41 
For the three months ended June 30, 2024, there were no gross write-offs in Cat Financial's Dealer portfolio segment. For the six months ended June 30, 2024 there were $47 million of gross write-offs in Cat Financial's Dealer portfolio segment, all of which were in Latin America and originated prior to 2019.

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 aging category of Cat Financial's amortized cost of finance receivables in the Customer portfolio segment by origination year were as follows:

      
 (Millions of dollars)June 30, 2024
20242023202220212020PriorRevolving
Finance
Receivables 		Total Finance Receivables
North America      
Current$2,733 $3,729 $2,074 $1,454 $464 $116 $343 $10,913 
31-60 days past due13 43 36 25 9 3 3 132 
61-90 days past due4 19 13 9 3 1 1 50 
91+ days past due2 28 28 17 9 3 1 88 
EAME
Current631 1,105 702 400 165 132 — 3,135 
31-60 days past due5 12 8 4 2 — — 31 
61-90 days past due1 8 4 3 1 1 — 18 
91+ days past due— 18 13 19 6 3 — 59 
Asia/Pacific
Current524 715 400 160 35 7 — 1,841 
31-60 days past due3 9 8 6 1 — — 27 
61-90 days past due1 4 2 3 — — — 10 
91+ days past due— 2 3 2 1 — — 8 
Mining
Current383 921 565 286 97 52 13 2,317 
31-60 days past due— — — — — — — — 
61-90 days past due— 1 — 1 1 1 — 4 
91+ days past due— 2 3 1 — 6 — 12 
Latin America
Current424 520 338 113 21 8 — 1,424 
31-60 days past due2 8 7 2 1 1 — 21 
61-90 days past due— 2 4 — 1 1 — 8 
91+ days past due— 5 9 6 3 2 — 25 
Power
Current45 175 47 53 68 71 155 614 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — — — — — 
91+ days past due— — — — — 3 — 3 
Totals by Aging Category
Current$4,740 $7,165 $4,126 $2,466 $850 $386 $511 $20,244 
31-60 days past due23 72 59 37 13 4 3 211 
61-90 days past due6 34 23 16 6 4 1 90 
91+ days past due2 55 56 45 19 17 1 195 
Total Customer$4,771 $7,326 $4,264 $2,564 $888 $411 $516 $20,740 
      
 (Millions of dollars)December 31, 2023
20232022202120202019PriorRevolving
Finance
Receivables 		Total Finance Receivables
North America      
Current$4,430 $2,628 $2,000 $745 $220 $32 $312 $10,367 
31-60 days past due28 31 24 14 7 1 4 109 
61-90 days past due10 11 8 4 1 — 2 36 
91+ days past due12 23 18 9 4 1 2 69 
EAME
Current1,336 895 588 258 111 105 — 3,293 
31-60 days past due10 9 7 3 1 — — 30 
61-90 days past due4 3 3 1 1 — — 12 
91+ days past due7 17 15 8 3 1 — 51 
Asia/Pacific
Current943 594 293 73 16 4 — 1,923 
31-60 days past due5 6 7 2 — — — 20 
61-90 days past due2 3 3 2 — — — 10 
91+ days past due1 5 3 3 1 — — 13 
Mining
Current1,039 686 381 121 68 27 66 2,388 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — 1 1 — 2 
91+ days past due— — 1 — — 1 — 2 
Latin America
Current750 520 219 59 23 6 — 1,577 
31-60 days past due9 10 6 1 — — — 26 
61-90 days past due2 4 1 — — — — 7 
91+ days past due2 10 8 5 8 11 — 44 
Power
Current152 49 64 75 28 59 162 589 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — — — — — 
91+ days past due— — — — — 3 — 3 
Totals by Aging Category
Current$8,650 $5,372 $3,545 $1,331 $466 $233 $540 $20,137 
31-60 days past due52 56 44 20 8 1 4 185 
61-90 days past due18 21 15 7 3 1 2 67 
91+ days past due22 55 45 25 16 17 2 182 
Total Customer$8,742 $5,504 $3,649 $1,383 $493 $252 $548 $20,571 

Finance receivables in Cat Financial's Customer portfolio segment are substantially secured by collateral, primarily in the form of Caterpillar and other equipment. 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 equipment.
Dealer

As of June 30, 2024, Cat Financial's total amortized cost of finance receivables within the Dealer portfolio segment was current. As of December 31, 2023, Cat Financial's total amortized cost of finance receivables within the Dealer portfolio segment was current, with the exception of $44 million that was 91+ days past due in Latin America, all of which originated prior to 2019.

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. Recognition is resumed and previously suspended income is recognized when collection 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:
  
 (Millions of dollars)June 30, 2024December 31, 2023
 Amortized CostAmortized Cost

Non-accrual
With an
Allowance		91+ Still
Accruing		Non-accrual
With an
Allowance		91+ Still
Accruing
  
North America$71 $19 $52 $20 
EAME56 7 34 18 
Asia/Pacific5 3 8 5 
Mining13 — 2 — 
Latin America28 — 48 1 
Power3 — 8 — 
Total$176 $29 $152 $44 

There were no finance receivables in Cat Financial's Dealer portfolio segment on non-accrual status as of June 30, 2024. There were $44 million in finance receivables in Cat Financial's Dealer portfolio segment on non-accrual status as of December 31, 2023, all of which was in Latin America.

Modifications

Cat Financial periodically modifies the terms of their finance receivable agreements. Typically, the types of modifications granted are payment deferrals, interest-only payment periods and/or term extensions. Many modifications Cat Financial grants are for commercial reasons or for borrowers experiencing some form of short-term financial stress and may result in insignificant payment delays. Cat Financial does not consider these borrowers to be experiencing financial difficulty. Modifications for borrowers Cat Financial does consider to be experiencing financial difficulty typically result in payment deferrals and/or reduced payments for a period of four months or longer, term extension of six months or longer or a combination of both.

During the three and six months ended June 30, 2024 and 2023, there were no finance receivable modifications granted to borrowers experiencing financial difficulty in Cat Financial's Dealer portfolio segment. The amortized cost basis of finance receivables modified for borrowers experiencing financial difficulty in the Customer portfolio segment during the three months ended June 30, 2024 and 2023, was $3 million and $22 million, respectively. Total modifications with borrowers experiencing financial difficulty represented 0.02 percent and 0.10 percent of Cat Financial's finance receivable portfolio for the same periods, respectively. The amortized cost basis of finance receivables modified for borrowers experiencing financial difficulty in the Customer portfolio segment during the six
months ended June 30, 2024 and 2023, was $6 million and $30 million, respectively. Total modifications with borrowers experiencing financial difficulty represented 0.03 percent and 0.14 percent of Cat Financial's finance receivable portfolio for the same periods, respectively.

For the three months ended June 30, 2024 and 2023, the financial effects of term extensions for borrowers experiencing financial difficulty added a weighted average of 13 and 18 months, respectively, to the terms of modified contracts. For the six months ended June 30, 2024 and 2023, the financial effects of term extensions for borrowers experiencing financial difficulty added a weighted average of 11 and 21 months, respectively, to the terms of modified contracts. For the three months ended June 30, 2024 and 2023, the financial effects of payment delays for borrowers experiencing financial difficulty resulted in weighted average payment deferrals and/or interest only payment periods of 6 and 7 months, respectively. For the six months ended June 30, 2024 and 2023, the financial effects of payment delays for borrowers experiencing financial difficulty resulted in weighted average payment deferrals and/or interest only payment periods of 8 months.

After Cat Financial modifies a finance receivable, they continue to track its performance under its most recent modified terms. As of June 30, 2024 and 2023, defaults of loans modified in the prior twelve months were not significant.

The effect of most modifications made to finance receivables for borrowers experiencing financial difficulty is already included in the allowance for credit losses based on the methodologies used to estimate the allowance; therefore, a change to the allowance for credit losses is generally not recorded upon modification. On rare occasions when principal forgiveness is provided, the amount forgiven is written off against the allowance for credit losses.
v3.24.2.u1
Fair Value Disclosures
 6 Months Ended
Jun. 30, 2024
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 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 debt securities, corporate debt securities 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.

We also have investments in time deposits classified as held-to-maturity debt securities. The fair value of these investments is based upon valuations observed in less active markets than Level 1. These investments have a maturity of less than one year and are recorded at amortized costs, which approximate fair value.

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 8 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 a standard industry accepted valuation model that utilizes 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 standard industry accepted valuation models that discount cash flows resulting from the differential between the contract price and the market-based forward rate. The fair value of total return swap contracts is primarily based on valuing the underlying securities or funds using pricing by industry providers and the average Secured Overnight Financing Rate (SOFR) plus a spread.

See Note 5 for additional information.

Assets and liabilities measured on a recurring basis at fair value included in our Consolidated Statement of Financial Position as of June 30, 2024 and December 31, 2023 were as follows:
June 30, 2024
 (Millions of dollars)
Level 1Level 2Level 3Measured at NAVTotal
Assets / Liabilities,
at Fair Value
Assets    
Debt securities    
Government debt securities    
U.S. treasury bonds$10 $— $— $— $10 
Other U.S. and non-U.S. government bonds— 65 — — 65 
Corporate debt securities    
Corporate bonds and other debt securities— 2,825 — — 2,825 
Asset-backed securities— 203 — — 203 
Mortgage-backed debt securities    
U.S. governmental agency— 419 — — 419 
Residential— 1 — — 1 
Commercial— 128 — — 128 
Total debt securities10 3,641 — — 3,651 
Equity securities    
Large capitalization value249 — — — 249 
Smaller company growth37 — — — 37 
REIT— — — 168 168 
Total equity securities286 — — 168 454 
Derivative financial instruments - assets
Foreign currency contracts - net— 214 — — 214 
Commodity contracts - net— 2 — — 2 
Total return swap contracts - net— 3 — — 3 
Total assets$296 $3,860 $— $168 $4,324 
Liabilities    
Derivative financial instruments - liabilities
Interest rate contracts - net$— $228 $— $— $228 
Total liabilities$— $228 $— $— $228 
 
December 31, 2023
 (Millions of dollars)
Level 1Level 2Level 3Measured at NAVTotal
Assets / Liabilities,
at Fair Value
Assets    
Debt securities    
Government debt securities    
U.S. treasury bonds$10 $— $— $— $10 
Other U.S. and non-U.S. government bonds— 60 — — 60 
Corporate debt securities    
Corporate bonds and other debt securities— 2,995 — — 2,995 
Asset-backed securities— 192 — — 192 
Mortgage-backed debt securities   
U.S. governmental agency— 410 — — 410 
Residential— 2 — — 2 
Commercial— 128 — — 128 
Total debt securities10 3,787 — — 3,797 
Equity securities    
Large capitalization value223 — — — 223 
Smaller company growth35 — — — 35 
REIT— — — 180 180 
Total equity securities258 — — 180 438 
Derivative financial instruments - assets
Foreign currency contracts - net— 207 — — 207 
Commodity contracts - net— 9 — — 9 
Total Assets$268 $4,003 $— $180 $4,451 
Liabilities    
Derivative financial instruments - liabilities
Interest rate contracts - net$— $151 $— $— $151 
Total liabilities$— $151 $— $— $151 

In addition to the amounts above, certain Cat Financial loans are subject to measurement at fair value on a nonrecurring basis and are classified as Level 3 measurements. A loan is measured at fair value when management determines that collection of contractual amounts due is not probable and the loan is individually evaluated.  In these cases, an allowance for credit losses may be established 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 loans carried at fair value of $51 million and $55 million as of June 30, 2024 and December 31, 2023, 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 use the following methods and assumptions to estimate the fair value of our financial instruments:

Cash and cash equivalents
Carrying amount approximates fair value. We classify cash and cash equivalents as Level 1. See Consolidated Statement of Financial Position.
 
Restricted cash and short-term investments
Carrying amount approximates fair value.  We include restricted cash and short-term investments in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position. We classify these instruments as Level 1 except for time deposits which are Level 2, and certain corporate debt securities which are Level 3. See Note 8 for additional information.
 
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 approximates fair value. We classify short-term borrowings as Level 1. See Consolidated Statement of Financial Position.
 
Long-term debt
We estimate fair value for fixed and floating rate debt based on quoted market prices.

Our financial instruments not carried at fair value were as follows:
 
 June 30, 2024December 31, 2023 
(Millions of dollars)
Carrying
 Amount
Fair
 Value
Carrying
 Amount
Fair
 Value
Fair Value LevelsReference
Assets     
Finance receivables – net (excluding finance leases 1 )
$15,740 $15,222 $15,386 $15,017 3Note 17
Wholesale inventory receivables – net (excluding finance leases 1)
1,422 1,379 1,415 1,368 3
Liabilities     
Long-term debt (including amounts due within one year)
    
Machinery, Energy & Transportation8,582 7,898 9,623 9,550 2 
Financial Products23,431 23,126 23,612 23,299 2 

1    Represents finance leases and failed sale leasebacks of $6,720 million and $6,953 million at June 30, 2024 and December 31, 2023, respectively.
v3.24.2.u1
Other Income (Expense)
 6 Months Ended
Jun. 30, 2024
Other Income and Expenses [Abstract]  
Other Income (Expense) Other income (expense)
 Three Months Ended June 30,Six Months Ended June 30,
(Millions of dollars)2024202320242023
Investment and interest income$118 $96 $254 $189 
Foreign exchange gains (losses) 1
17 40 59 (32)
License fee income37 43 71 74 
Net periodic pension and OPEB income (cost), excluding service cost2 (12)5 (25)
Gains (losses) on securities(5)(10)12 (21)
Miscellaneous income (loss)(14)(30)(90)(26)
Total$155 $127 $311 $159 

1 Includes gains (losses) from foreign exchange derivative contracts. See Note 5 for further details.
v3.24.2.u1
Restructuring Income/Costs
 6 Months Ended
Jun. 30, 2024
Restructuring Charges [Abstract]  
Restructuring Income/Costs Restructuring income/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 the three and six months ended June 30, 2024 and 2023 were as follows:

(Millions of dollars)Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Employee separations 1
$19 $10 $32 $22 
Divestitures 1
228 — 164 586 
Contract terminations 1
1 — 1 — 
Long-lived asset impairments 1
— 2 7 2 
Other 2
10 19 48 32 
Total restructuring (income) costs$258 $31 $252 $642 
1 Recognized in Other operating (income) expenses.
2 Represents costs related to our restructuring programs, primarily for project management, inventory write-downs, equipment relocation and accelerated depreciation, all of which are primarily included in Cost of goods sold.

The restructuring costs for the six months ended June 30, 2024 were primarily related to the divestitures of certain non-US entities. The restructuring costs for the six months ended June 30, 2023 were primarily related to the divestiture of the company's Longwall business within Resource Industries. The divestiture closed on February 1, 2023 and resulted in a pre-tax loss of approximately $586 million, primarily a non-cash item driven by the release of $494 million of accumulated foreign currency translation.

In 2024 and 2023, all restructuring costs are excluded from segment profit.
v3.24.2.u1
Supplier Finance Programs
 6 Months Ended
Jun. 30, 2024
Payables and Accruals [Abstract]  
Supplier Finance Programs Supplier finance programs
We facilitate voluntary supplier finance programs (the “Programs”) through participating financial institutions. The Programs are available to a wide range of suppliers and allow them the option to manage their cash flow. We are not a party to the agreements between the participating financial institutions and the suppliers in connection with the Programs. The range of payment terms, typically 60-90 days, we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the Programs. The amount of obligations outstanding that are confirmed as valid to the participating financial institutions for suppliers who voluntarily participate in the Programs, included in Accounts payable in the Consolidated Statement of Financial Position, were $819 million and $803 million at June 30, 2024 and December 31, 2023, respectively.
v3.24.2.u1
Insider Trading Arrangements
 3 Months Ended 6 Months Ended
Jun. 30, 2024
shares
Jun. 30, 2024
shares
Trading Arrangements, by Individual    
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Gerald Johnson [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On May 22, 2024, Gerald Johnson, a member of the Company's Board of Directors, entered into a Rule 10b5-1 purchase plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended. The purchase plan will be in effect until the earlier of (1) May 9, 2025 and (2) the date on which an aggregate of 400 shares of our common stock have been purchased under the plan.
Name Gerald Johnson  
Title member of the Company's Board of Directors  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date May 22, 2024  
Expiration Date May 9, 2025  
Arrangement Duration 352 days  
Aggregate Available 400 400
v3.24.2.u1
Nature of Operations and Basis of Presentation (Policies)
 6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Operations and Basis of Presentation Nature 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.

B.  Basis of presentation
 
In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated results of operations for the three and six months ended June 30, 2024 and 2023, (b) the consolidated comprehensive income for the three and six months ended June 30, 2024 and 2023, (c) the consolidated financial position at June 30, 2024 and December 31, 2023, (d) the consolidated changes in shareholders’ equity for the three and six months ended June 30, 2024 and 2023 and (e) the consolidated cash flow for the six months ended June 30, 2024 and 2023.  The financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC).

Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in our company’s annual report on Form 10-K for the year ended December 31, 2023 (2023 Form 10-K).
 
The December 31, 2023 financial position data included herein is derived from the audited consolidated financial statements included in the 2023 Form 10-K but does not include all disclosures required by U.S. GAAP. Certain amounts for prior periods have been reclassified to conform to the current period financial statement presentation.
Cat Financial has end-user customers and dealers that are variable interest entities (VIEs) of which we are not the primary beneficiary. 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. Credit risk was evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses. See Note 11 for further discussions on a consolidated VIE.
Revenue
Trade receivables represent amounts due from dealers and end users for the sale of our products, and include amounts due from wholesale inventory financing provided by Cat Financial for a dealer’s purchase of inventory. We recognize trade receivables from dealers and end users in Receivables – trade and other and Long-term receivables – trade and other in the Consolidated Statement of Financial Position. Trade receivables from dealers and end users were $8,024 million, $7,923 million and $7,551 million as of June 30, 2024, December 31, 2023 and December 31, 2022, respectively. Long-term trade receivables from dealers and end users were $625 million, $589 million and $506 million as of June 30, 2024, December 31, 2023 and December 31, 2022, respectively.

For certain contracts, we invoice for payment when contractual milestones are achieved. We recognize a contract asset when a sale is recognized before achieving the contractual milestones for invoicing. We reduce the contract asset when we invoice for payment and recognize a corresponding trade receivable. Contract assets are included in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position. Contract assets were $243 million, $246 million and $247 million as of June 30, 2024, December 31, 2023 and December 31, 2022, respectively.
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 the Consolidated Statement of Financial Position. Contract liabilities were $2,728 million, $2,389 million and $2,314 million as of June 30, 2024, December 31, 2023 and December 31, 2022, respectively. We reduce the contract liability when revenue is recognized.
Share-Based Compensation
Accounting for stock-based compensation requires that the cost resulting from all stock-based payments be recognized in the financial statements based on the grant date fair value of the award.  Our stock-based compensation consists of stock options, restricted stock units (RSUs) and performance-based restricted stock units (PRSUs).
Derivatives
Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates, commodity prices, and certain deferred compensation plan liabilities.  Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate, commodity price and certain deferred compensation plan liability 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, commodity forward and option contracts and total return swap 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 at their fair value on the Consolidated Statement of Financial Position. 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 AOCI changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge, to the extent effective, on the Consolidated Statement of Financial Position until we reclassify them 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 the Consolidated Statement of Cash Flow.  We include cash flows from undesignated derivative financial instruments in the investing category on the Consolidated Statement of Cash Flow.
 
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 on the Consolidated Statement of Financial Position 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.
 
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 June 30, 2024, the maximum term of these outstanding contracts at inception was approximately 60 months.
 
We generally designate as cash flow hedges at inception of the contract any foreign currency 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.
 
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.
 
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.

Deferred Compensation Plan Liability Risk

We are also exposed to variability in compensation expense related to certain non-qualified deferred compensation obligations to employees. We utilize total return swaps to economically hedge this exposure to offset the related compensation expense. All such total return swap contracts are undesignated.
Investments
We have investments in certain debt and equity securities, which we record at fair value and primarily include in Other assets in the Consolidated Statement of Financial Position.

We classify debt securities primarily as available-for-sale. We include the unrealized gains and losses arising from the revaluation of available-for-sale debt securities, net of applicable deferred income taxes, in equity (AOCI in the Consolidated Statement of Financial Position). We include the unrealized gains and losses arising from the revaluation of the equity securities in Other income (expense) in the Consolidated Statement of Results of Operations. We generally determine realized gains and losses on sales of investments using the specific identification method for available-for-sale debt and equity securities and include them in Other income (expense) in the Consolidated Statement of Results of Operations.
Guarantees and Product Warranty
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.
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.
Segments
Our Executive Office is comprised of a Chief Executive Officer (CEO), Chief Operating Officer (COO), four Group Presidents, a Chief Financial Officer (CFO), a Chief Legal Officer and General Counsel and a Chief Human Resources Officer. The COO, 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 COO/Group President/CFO level. As such, the CEO serves as our Chief Operating Decision Maker, and operating segments are primarily based on the COO/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 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 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; cold planers; compactors; compact track loaders; forestry machines; material handlers; motor graders; pipelayers; road reclaimers; skid steer loaders; telehandlers; track-type loaders; track-type tractors (small, medium); track excavators (mini, small, medium, large); wheel excavators; wheel loaders (compact, small, medium); 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 and quarry and aggregates. 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; 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; wide-body trucks; 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, autonomous machine capabilities, safety services and mining performance solutions. Resource Industries also manages areas that provide services to other parts of the company, including strategic procurement, lean center of excellence, integrated manufacturing, research and development for hydraulic systems, automation, electronics and software for Caterpillar machines and engines. 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 services across industries serving Oil and Gas, Power Generation, Industrial and Transportation applications, including marine- and rail-related businesses as well as product support of on-highway engines. Responsibilities include business strategy, product design, product management, development and testing, manufacturing, marketing and sales and product support. The product and services portfolio includes turbines, centrifugal gas compressors, and turbine-related services; reciprocating engine-powered generator sets; integrated systems and solutions used in the electric power generation industry; reciprocating engines, drivetrain and integrated systems and solutions for the marine and oil and gas industries; reciprocating engines, drivetrain and integrated systems and solutions supplied to the industrial industry as well as Caterpillar machines; electrified powertrain and zero-emission power sources and service solutions development; and diesel-electric locomotives and components and other rail-related products and services, including remanufacturing and leasing. Responsibilities also include the remanufacturing of Caterpillar reciprocating engines and components and remanufacturing services for other companies. 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 and services, as well as financing for power generation facilities that, in most cases, incorporate Caterpillar products. Financing plans include operating and finance leases, revolving charge accounts, installment sale contracts, repair/rebuild financing, 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 and maintenance plans 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 Segment: Primarily includes activities such as: business strategy; product management and development; manufacturing and sourcing of wear and maintenance components primarily for Cat® products; parts distribution; integrated logistics solutions; distribution services responsible for dealer development and administration, including a 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. Results for the All Other Segment are included 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. 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 31 to 33 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 income/costs: May include costs for employee separation, long-lived asset impairments, contract terminations and (gains)/losses on divestitures. 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. See Note 20 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.
Allowance for Credit Losses
Allowance for credit losses

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. Cat Financial also provides financing for power generation facilities that, in most cases, incorporate Caterpillar products. The average original term of Cat Financial's customer finance receivable portfolio was approximately 51 months with an average remaining term of approximately 27 months as of June 30, 2024.

Cat Financial typically maintains a security interest in financed equipment and generally 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 three and six months ended June 30, 2024, Cat Financial's forecasts reflected a continuation of the trend of historically low unemployment rates as well as low delinquencies within their portfolio. However, industry delinquencies show an increasing trend as the central bank actions aimed at reducing inflation have weakened global economic growth. 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 a variety of secured and
unsecured loans to Caterpillar dealers.
    
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.

In general, Cat Financial's Dealer portfolio segment has not historically experienced large increases or decreases in credit losses based on changes in economic conditions due to its close working relationships with the dealers and their financial strength. Therefore, Cat Financial made no adjustments to historical loss rates during the three and six months ended June 30, 2024.

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. 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 Eurasia.
•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.
•Power - Finance receivables originated worldwide related to 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). Generally, the amount of the write-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost of the receivable. Subsequent recoveries, if any, are credited to the allowance for credit losses when received.
Fair Value Measurement 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 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 debt securities, corporate debt securities 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.

We also have investments in time deposits classified as held-to-maturity debt securities. The fair value of these investments is based upon valuations observed in less active markets than Level 1. These investments have a maturity of less than one year and are recorded at amortized costs, which approximate fair value.

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 8 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 a standard industry accepted valuation model that utilizes 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 standard industry accepted valuation models that discount cash flows resulting from the differential between the contract price and the market-based forward rate. The fair value of total return swap contracts is primarily based on valuing the underlying securities or funds using pricing by industry providers and the average Secured Overnight Financing Rate (SOFR) plus a spread.
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 use the following methods and assumptions to estimate the fair value of our financial instruments:

Cash and cash equivalents
Carrying amount approximates fair value. We classify cash and cash equivalents as Level 1. See Consolidated Statement of Financial Position.
 
Restricted cash and short-term investments
Carrying amount approximates fair value.  We include restricted cash and short-term investments in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position. We classify these instruments as Level 1 except for time deposits which are Level 2, and certain corporate debt securities which are Level 3. See Note 8 for additional information.
 
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 approximates fair value. We classify short-term borrowings as Level 1. See Consolidated Statement of Financial Position.
 
Long-term debt
We estimate fair value for fixed and floating rate debt based on quoted market prices.
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.
v3.24.2.u1
Stock-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Type and Fair Value of Stock-Based Compensation Awards
The following table illustrates the type and fair value of the stock-based compensation awards granted during the six months ended June 30, 2024 and 2023, respectively:

 Six Months Ended June 30, 2024Six Months Ended June 30, 2023
 Shares GrantedWeighted-Average Fair Value Per ShareWeighted-Average Grant Date Stock PriceShares GrantedWeighted-Average Fair Value Per ShareWeighted-Average Grant Date Stock Price
Stock options296,295 $104.27 $338.65 777,275 $75.79 $253.98 
RSUs379,621 $338.65 $338.65 379,426 $253.98 $253.98 
PRSUs169,120 $408.64 $338.65 221,869 $253.98 $253.98 
Schedule of Assumptions Used for Fair Value of Stock Options The following table provides the assumptions used in determining the fair value of the stock-options granted in the six months ended June 30, 2024 and 2023, respectively:
 
 Grant Year
 20242023
Weighted-average dividend yield2.40%2.60%
Weighted-average volatility30.7%31.0%
Range of volatilities
26.3% - 32.3%
28.5% - 35.5%
Range of risk-free interest rates
4.28% - 5.03%
3.92% - 5.03%
Weighted-average expected lives7 years7 years
Schedule of Assumptions Used for Fair Value of PRSUs The following table provides the assumptions used in determining the fair value of the PRSUs granted in the six months ended June 30, 2024:
 Grant Year
 2024
Expected volatility of the Company's stock29.8%
Risk-free interest rate4.38%
v3.24.2.u1
Derivative Financial Instruments and Risk Management (Tables)
 6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Location and Fair Value of Derivative Instruments
The location and fair value of derivative instruments reported in the Consolidated Statement of Financial Position were as follows:

(Millions of dollars)Fair Value
June 30, 2024December 31, 2023
Assets 1
Liabilities 2
Assets 1
Liabilities 2
Designated derivatives
Foreign exchange contracts$322 $(140)$389 $(155)
Interest rate contracts15 (243)58 (209)
Total$337 $(383)$447 $(364)
Undesignated derivatives
Foreign exchange contracts$54 $(22)$55 $(82)
Commodity contracts6 (4)18 (9)
Total return swap contracts5 (2)— — 
Total$65 $(28)$73 $(91)
1 Assets are classified as Receivables - trade and other or Long-term receivables - trade and other.
2 Liabilities are classified as Accrued expenses or Other liabilities.
Schedule of Gains (Losses) on Derivative Instruments
Gains (Losses) on derivative instruments are categorized as follows:

(Millions of dollars)Three Months Ended June 30,
Fair Value / Undesignated HedgesCash Flow Hedges
Gains (Losses) Recognized on the Consolidated Statement of Results of Operations1
Gains (Losses) Recognized in AOCI
Gains (Losses) Reclassified from AOCI2
202420232024202320242023
Foreign exchange contracts$64 $31 $(13)$(26)$56 $28 
Interest rate contracts(38)(34)4 14 14 14 
Commodity contracts11 (20)— — — — 
Total return swap contracts(12)— — — — — 
Total$25 $(23)$(9)$(12)$70 $42 
1 Foreign exchange contract, Commodity contract and Total return swap contract gains (losses) are included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense of Financial Products and Interest expense excluding Financial Products.
2 Foreign exchange contract gains (losses) are primarily included in Other income (expense). Interest rate contract gains (losses) are primarily included in Interest expense of Financial Products.
(Millions of dollars)Six Months Ended June 30,
Fair Value / Undesignated HedgesCash Flow Hedges
Gains (Losses) Recognized on the Consolidated Statement of Results of Operations 1
Gains (Losses) Recognized in AOCI
Gains (Losses) Reclassified from AOCI 2
202420232024202320242023
Foreign exchange contracts$93 $3 $82 $32 $147 $(37)
Interest rate contracts(74)(60)15 12 29 27 
Commodity contracts1 (12)— — — — 
Total return swap contracts18 — — — — — 
Total$38 $(69)$97 $44 $176 $(10)
1 Foreign exchange contract, Commodity contract and Total return swap contract gains (losses) are included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense of Financial Products and Interest expense excluding Financial Products.
2 Foreign exchange contract gains (losses) are primarily included in Other income (expense). Interest rate contract gains (losses) are primarily included in Interest expense of Financial Products.
Summary of Cumulative Basis Adjustments for Fair Value Hedges
The following amounts were recorded on the Consolidated Statement of Financial Position related to cumulative basis adjustments for fair value hedges:

(Millions of dollars)Carrying Value of the Hedged LiabilitiesCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities
June 30, 2024December 31, 2023June 30, 2024December 31, 2023
Long-term debt due within one year$793 $982 $(11)$(23)
Long-term debt due after one year5,070 4,245 (225)(156)
Total$5,863 $5,227 $(236)$(179)
Summary Offsetting Assets and Liabilities
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:

(Millions of dollars)June 30, 2024December 31, 2023
AssetsLiabilitiesAssetsLiabilities
Gross Amounts Recognized$402 $(411)$520 $(455)
Financial Instruments Not Offset(155)155 (202)202 
Net Amount$247 $(256)$318 $(253)
v3.24.2.u1
Inventories (Tables)
 6 Months Ended
Jun. 30, 2024
Inventory Disclosure [Abstract]  
Summary of Inventories
Inventories (principally using the last-in, first-out (LIFO) method) were comprised of the following:
 
(Millions of dollars)June 30,
2024		December 31,
2023
Raw materials$6,662 $6,492 
Work-in-process1,465 1,411 
Finished goods8,593 8,308 
Supplies362 354 
Total inventories$17,082 $16,565 
v3.24.2.u1
Intangible Assets and Goodwill (Tables)
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Intangible assets
Intangible assets were comprised of the following:
 
 June 30, 2024
(Millions of dollars)Gross
Carrying
Amount		Accumulated
Amortization		Net
Customer relationships$2,226 $(1,882)$344 
Intellectual property496 (390)106 
Other117 (79)38 
Total finite-lived intangible assets$2,839 $(2,351)$488 

 December 31, 2023
Gross
Carrying
Amount		Accumulated
Amortization		Net
Customer relationships$2,232 $(1,814)$418 
Intellectual property484 (380)104 
Other117 (75)42 
Total finite-lived intangible assets$2,833 $(2,269)$564 
Summary of expected amortization expense related to intangible assets Amortization expense related to intangible assets is expected to be:
(Millions of dollars)
Remaining Six Months of 20242025202620272028Thereafter
$88$167$96$33$26$78
Summary of Goodwill acquired
The changes in carrying amount of goodwill by reportable segment for the six months ended June 30, 2024 were as follows: 

(Millions of dollars)December 31,
2023
Other Adjustments 1
June 30,
2024
Construction Industries
Goodwill$277 $(16)$261 
Impairments(22)— (22)
Net goodwill255 (16)239 
Resource Industries
Goodwill4,151 (12)4,139 
Impairments(1,175)— (1,175)
Net goodwill2,976 (12)2,964 
Energy & Transportation
Goodwill2,959 (11)2,948 
Impairments(925)— (925)
Net goodwill2,034 (11)2,023 
All Other 2
Goodwill43 (5)38 
Consolidated total
Goodwill7,430 (44)7,386 
Impairments(2,122)— (2,122)
Net goodwill$5,308 $(44)$5,264 

1 Other adjustments are comprised primarily of foreign currency translation.
2 Includes All Other Segment (See Note 16).
v3.24.2.u1
Investments in Debt and Equity Securities (Tables)
 6 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of cost basis and fair value of available-for-sale securities
The cost basis and fair value of available-for-sale debt securities with unrealized gains and losses included in equity (AOCI in the Consolidated Statement of Financial Position) were as follows:
Available-for-sale debt securities
June 30, 2024December 31, 2023
(Millions of dollars)
Cost
Basis
Unrealized Pretax Net Gains
(Losses)
Fair
Value
Cost
Basis
Unrealized Pretax Net Gains
(Losses)
Fair
Value
Government debt securities      
U.S. treasury bonds$10 $— $10 $10 $— $10 
Other U.S. and non-U.S. government bonds67 (2)65 62 (2)60 
Corporate debt securities     
Corporate bonds and other debt securities2,870 (45)2,825 3,031 (36)2,995 
Asset-backed securities204 (1)203 195 (3)192 
Mortgage-backed debt securities  
U.S. governmental agency452 (33)419 433 (23)410 
Residential2 (1)1 3 (1)2 
Commercial136 (8)128 137 (9)128 
Total available-for-sale debt securities$3,741 $(90)$3,651 $3,871 $(74)$3,797 
Summary of investments in an unrealized loss position that are not other-than-temporarily impaired
Available-for-sale debt securities in an unrealized loss position:
 June 30, 2024
 
Less than 12 months 1
12 months or more 1
Total
(Millions of dollars)
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Government debt securities      
Other U.S. and non-U.S. government bonds$— $— $60 $2 $60 $2 
Corporate debt securities
Corporate bonds826 3 1,240 46 2,066 49 
Asset-backed securities8 — 37 3 45 3 
Mortgage-backed debt securities
U.S. governmental agency61 1 307 32 368 33 
Residential— — 1 1 1 1 
Commercial6 — 119 8 125 8 
Total$901 $4 $1,764 $92 $2,665 $96 
 December 31, 2023
 
Less than 12 months 1
12 months or more 1
Total
(Millions of dollars)
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Government debt securities      
Other U.S. and non-U.S. government bonds$— $— $25 $3 $25 $3 
Corporate debt securities
Corporate bonds765 — 1,011 45 1,776 45 
Asset-backed securities9 — 97 3 106 3 
Mortgage-backed debt securities      
U.S. governmental agency33 — 287 25 320 25 
Commercial2 — 121 9 123 9 
Total$809 $— $1,541 $85 $2,350 $85 
1 Indicates the length of time that individual securities have been in a continuous unrealized loss position.
Summary of cost basis and fair value of the available-for-sale debt securities by contractual maturity Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations.
        
June 30, 2024
(Millions of dollars)Cost BasisFair Value
Due in one year or less$1,066 $1,056 
Due after one year through five years1,747 1,711 
Due after five years through ten years223 220 
Due after ten years115 116 
U.S. governmental agency mortgage-backed securities452 419 
Residential mortgage-backed securities2 1 
Commercial mortgage-backed securities136 128 
Total debt securities – available-for-sale$3,741 $3,651 
  
Schedule of proceeds and gross gain and losses from the sale of available-for-sale securities
Sales of available-for-sale debt securities:  
 Three Months Ended June 30,Six Months Ended June 30,
(Millions of dollars)2024202320242023
Proceeds from the sale of available-for-sale securities$300 $216 $660 $439 
Gross gains from the sale of available-for-sale securities$— $— $— $— 
Gross losses from the sale of available-for-sale securities$1 $— $2 $— 
v3.24.2.u1
Postretirement Benefits (Tables)
 6 Months Ended
Jun. 30, 2024
Retirement Benefits [Abstract]  
Schedule of net benefit costs
U.S. Pension
Benefits
Non-U.S. Pension
Benefits
Other
Postretirement
Benefits
June 30,June 30,June 30,
(Millions of dollars)202420232024202320242023
For the three months ended:      
Components of net periodic benefit cost:      
Service cost$— $— $11 $10 $17 $17 
Interest cost157 164 31 30 33 36 
Expected return on plan assets (175)(172)(42)(40)(2)(3)
Amortization of prior service cost (credit)— — — — (4)(3)
Net periodic benefit cost (benefit) 1
$(18)$(8)$— $— $44 $47 
For the six months ended:
Components of net periodic benefit cost:
Service cost$— $— $22 $20 $34 $34 
Interest cost313 328 61 61 66 72 
Expected return on plan assets (350)(344)(84)(80)(4)(6)
Amortization of prior service cost (credit)— — — — (7)(6)
Net periodic benefit cost (benefit) 1
$(37)$(16)$(1)$1 $89 $94 
1 The service cost component is included in Operating costs. All other components are included in Other income (expense).
Summary of company costs related to U.S. and non-U.S. defined contribution plans
Total company costs related to our defined contribution plans, which are included in Operating costs in the Consolidated Statement of Results of Operations, were as follows:
 
 Three Months Ended June 30,Six Months Ended June 30,
(Millions of dollars)2024202320242023
U.S. Plans 1
$115 $136 $338 $285 
Non-U.S. Plans32 29 62 58 
 $147 $165 $400 $343 
1 Includes costs related to our non-qualified deferred compensation plans. We utilize total return swaps to economically hedge this exposure to offset the related costs. See Note 5 for additional information.
v3.24.2.u1
Leases (Tables)
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Revenue from finance and operating leases
Revenues from finance and operating leases, primarily included in Revenues of Financial Products on the Consolidated Statement of Results of Operations, were as follows:

Three Months Ended June 30,Six Months Ended June 30,
(Millions of dollars)2024202320242023
Finance lease revenue$107 $105 $215 $209 
Operating lease revenue293 275 606 550 
Total$400 $380 $821 $759 
v3.24.2.u1
Guarantees and Product Warranty (Tables)
 6 Months Ended
Jun. 30, 2024
Guarantees and Product Warranties [Abstract]  
Summary of product warranty
The reconciliation of the change in our product warranty liability balances for the six months ended June 30 was as follows:

Six Months Ended June 30,
(Millions of dollars)20242023
Warranty liability, beginning of period$1,894 $1,761 
Reduction in liability (payments)(387)(410)
Increase in liability (new warranties) 276 471 
Warranty liability, end of period$1,783 $1,822 
  
v3.24.2.u1
Profit Per Share (Tables)
 6 Months Ended
Jun. 30, 2024
Earnings Per Share Reconciliation [Abstract]  
Computations of profit per share
Computations of profit per share:Three Months Ended June 30,Six Months Ended June 30,
(Dollars in millions except per share data)2024202320242023
Profit for the period (A) 1
$2,681 $2,922 $5,537 $4,865 
Determination of shares (in millions): 
Weighted-average number of common shares outstanding (B)487.2512.9490.7514.3
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price2.32.12.62.8
Average common shares outstanding for fully diluted computation (C) 2
489.5515.0493.3517.1
Profit per share of common stock:  
Assuming no dilution (A/B)$5.50 $5.70 $11.28 $9.46 
Assuming full dilution (A/C) 2
$5.48 $5.67 $11.23 $9.41 
Shares outstanding as of June 30, (in millions)484.9 510.1 
1 Profit attributable to common shareholders.
2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
v3.24.2.u1
Accumulated Other Comprehensive Income (Loss) (Tables)
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Changes in Accumulated other comprehensive income (loss), net of tax
We present comprehensive income and its components in the Consolidated Statement of Comprehensive Income. Changes in the balances for each component of AOCI were as follows:

Three Months Ended June 30,Six Months Ended June 30,
(Millions of dollars)2024202320242023
Foreign currency translation:
Beginning balance$(2,039)$(1,721)$(1,782)$(2,328)
Gains (losses) on foreign currency translation(128)(144)(341)(41)
Less: Tax provision /(benefit)4 (2)15 (12)
Net gains (losses) on foreign currency translation(132)(142)(356)(29)
(Gains) losses reclassified to earnings61 — 28 494 
Less: Tax provision /(benefit)— — — — 
Net (gains) losses reclassified to earnings61 — 28 494 
Other comprehensive income (loss), net of tax(71)(142)(328)465 
Ending balance$(2,110)$(1,863)$(2,110)$(1,863)
Pension and other postretirement benefits
Beginning balance$(52)$(41)$(49)$(39)
Current year prior service credit (cost)— — — — 
Less: Tax provision /(benefit)— — — — 
Net current year prior service credit (cost)— — — — 
Amortization of prior service (credit) cost(4)(3)(7)(6)
Less: Tax provision /(benefit)(1)— (1)(1)
Net amortization of prior service (credit) cost(3)(3)(6)(5)
Other comprehensive income (loss), net of tax(3)(3)(6)(5)
Ending balance$(55)$(44)$(55)$(44)
Derivative financial instruments
Beginning balance$67 $112 $67 $28 
Gains (losses) deferred(9)(12)97 44 
Less: Tax provision /(benefit)(1)(3)27 9 
Net gains (losses) deferred(8)(9)70 35 
(Gains) losses reclassified to earnings(70)(42)(176)10 
Less: Tax provision /(benefit)(16)(10)(44)2 
Net (gains) losses reclassified to earnings(54)(32)(132)8 
Other comprehensive income (loss), net of tax(62)(41)(62)43 
Ending balance$5 $71 $5 $71 
Available-for-sale securities
Beginning balance$(69)$(96)$(56)$(118)
Gains (losses) deferred(1)(16)(18)10 
Less: Tax provision /(benefit)1 (2)(2)2 
Net gains (losses) deferred(2)(14)(16)8 
(Gains) losses reclassified to earnings1 — 2 — 
Less: Tax provision /(benefit)— — — — 
Net (gains) losses reclassified to earnings1 — 2 — 
Other comprehensive income (loss), net of tax(1)(14)(14)8 
Ending balance$(70)$(110)$(70)$(110)
Total AOCI Ending Balance at June 30,
$(2,230)$(1,946)$(2,230)$(1,946)
v3.24.2.u1
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Disaggregation of Revenue
For the three and six months ended June 30, 2024 and 2023, 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 RevenuesIntersegment Sales and RevenuesTotal Sales and Revenues
Three Months Ended June 30, 2024    
Construction Industries$3,957 $677 $1,047 $975 $6,656 $27 $6,683 
Resource Industries1,206 524 442 950 3,122 84 3,206 
Energy & Transportation3,308 439 1,421 912 6,080 1,257 7,337 
Financial Products Segment668 101 124 111 1,004 
1
— 1,004 
Total sales and revenues from reportable segments9,139 1,741 3,034 2,948 16,862 1,368 18,230 
All Other Segment13 — 4 12 29 79 108 
Corporate Items and Eliminations(109)(22)(41)(30)(202)(1,447)(1,649)
Total Sales and Revenues$9,043 $1,719 $2,997 $2,930 $16,689 $— $16,689 
Three Months Ended June 30, 2023    
Construction Industries$3,968 $566 $1,438 $1,149 $7,121 $33 $7,154 
Resource Industries1,342 538 517 1,076 3,473 90 3,563 
Energy & Transportation3,120 459 1,479 899 5,957 1,262 7,219 
Financial Products Segment593 102 118 110 923 
1
— 923 
Total sales and revenues from reportable segments9,023 1,665 3,552 3,234 17,474 1,385 18,859 
All Other Segment16 — 4 14 34 82 116 
Corporate Items and Eliminations(117)(23)(23)(27)(190)(1,467)(1,657)
Total Sales and Revenues$8,922 $1,642 $3,533 $3,221 $17,318 $— $17,318 
1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other Segment of $180 million and $172 million in the three months ended June 30, 2024 and 2023, respectively.
Sales and Revenues by Geographic Region
(Millions of dollars)
North
 America
Latin
 America
EAME
Asia/
 Pacific
External Sales and RevenuesIntersegment Sales and RevenuesTotal Sales and Revenues
Six Months Ended June 30, 2024    
Construction Industries$7,790 $1,272 $2,043 $1,968 $13,073 $34 $13,107 
Resource Industries2,470 1,000 907 1,841 6,218 181 6,399 
Energy & Transportation6,259 847 2,715 1,746 11,567 2,451 14,018 
Financial Products Segment1,327 202 247 219 1,995 
1
— 1,995 
Total sales and revenues from reportable segments17,846 3,321 5,912 5,774 32,853 2,666 35,519 
All Other Segment31 (1)8 25 63 154 217 
Corporate Items and Eliminations(261)(42)(71)(54)(428)(2,820)(3,248)
Total Sales and Revenues$17,616 $3,278 $5,849 $5,745 $32,488 $— $32,488 
Six Months Ended June 30, 2023    
Construction Industries$7,576 $1,165 $2,774 $2,310 $13,825 $75 $13,900 
Resource Industries2,650 1,012 1,116 2,054 6,832 158 6,990 
Energy & Transportation5,692 839 2,863 1,618 11,012 2,461 13,473 
Financial Products Segment1,168 206 232 219 1,825 
1
— 1,825 
Total sales and revenues from reportable segments17,086 3,222 6,985 6,201 33,494 2,694 36,188 
All Other Segment34 — 8 27 69 158 227 
Corporate Items and Eliminations(248)(41)(42)(52)(383)(2,852)(3,235)
Total Sales and Revenues$16,872 $3,181 $6,951 $6,176 $33,180 $— $33,180 
1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other Segment of $357 million and $334 million in the six months ended June 30, 2024 and 2023, respectively.
For the three and six months ended June 30, 2024 and 2023, Energy & Transportation segment sales by end user application were as follows:

Energy & Transportation External Sales
Three Months Ended June 30,Six Months Ended June 30,
(Millions of dollars)2024202320242023
Oil and gas$1,829 $1,760 $3,397 $3,074 
Power generation1,885 1,645 3,503 2,929 
Industrial1,045 1,318 2,034 2,573 
Transportation1,321 1,234 2,633 2,436 
Energy & Transportation External Sales$6,080 $5,957 $11,567 $11,012 
Reconciliation of Consolidated profit before taxes
Reconciliation of Consolidated profit before taxes:  
(Millions of dollars)Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Profit from reportable segments:
Construction Industries$1,741 $1,803 $3,505 $3,593 
Resource Industries718 740 1,448 1,504 
Energy & Transportation1,525 1,269 2,826 2,326 
Financial Products Segment227 240 520 472 
Total profit from reportable segments4,211 4,052 8,299 7,895 
Profit from All Other Segment21 10 45 21 
Cost centers(2)13 12 43 
Corporate costs(276)(211)(477)(449)
Timing82 95 15 (111)
Restructuring income (costs)(258)(31)(252)(642)
Methodology differences:
Inventory/cost of sales9 13 3 139 
Postretirement benefit expense1 (40)(55)(71)
Stock-based compensation expense(75)(74)(119)(118)
Financing costs(41)(52)(69)(102)
Currency21 54 108 28 
Other income/expense methodology differences(168)(158)(418)(304)
Other methodology differences(25)(19)(60)(43)
Total consolidated profit before taxes$3,500 $3,652 $7,032 $6,286 
Reconciliation of Assets:
Reconciliation of Assets:
(Millions of dollars)June 30, 2024December 31, 2023
Assets from reportable segments:
Construction Industries$5,696 $5,384 
Resource Industries5,611 5,742 
Energy & Transportation11,119 10,555 
Financial Products Segment36,221 35,685 
Total assets from reportable segments58,647 57,366 
Assets from All Other Segment1,928 1,890 
Items not included in segment assets:  
Cash and cash equivalents3,481 6,106 
Deferred income taxes2,800 2,668 
Goodwill and intangible assets4,138 4,452 
Property, plant and equipment – net and other assets4,457 6,548 
Inventory methodology differences(3,493)(3,169)
Liabilities included in segment assets11,974 11,781 
Other(596)(166)
Total assets$83,336 $87,476 
Reconciliation of Depreciation and amortization:
Reconciliation of Depreciation and amortization:
(Millions of dollars)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Depreciation and amortization from reportable segments:
   Construction Industries$57 $54 $113 $108 
   Resource Industries63 82 126 169 
   Energy & Transportation143 133 280 262 
   Financial Products Segment185 181 370 359 
Total depreciation and amortization from reportable segments448 450 889 898 
Items not included in segment depreciation and amortization:
All Other Segment62 60 123 117 
Cost centers24 22 47 42 
Other(3)10 (4)17 
Total depreciation and amortization$531 $542 $1,055 $1,074 
Reconciliation of Capital expenditures:
Reconciliation of Capital expenditures:    
(Millions of dollars)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Capital expenditures from reportable segments:
Construction Industries$55 $51 $113 $83 
Resource Industries52 44 86 70 
Energy & Transportation257 177 379 346 
Financial Products Segment320 410 554 689 
Total capital expenditures from reportable segments684 682 1,132 1,188 
Items not included in segment capital expenditures:
All Other Segment57 49 86 75 
Cost centers24 22 54 44 
Timing(37)(27)208 185 
Other(9)(19)(25)(35)
Total capital expenditures$719 $707 $1,455 $1,457 
v3.24.2.u1
Cat Financial Financing Activities (Tables)
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Allowance for credit losses and total finance receivables
An analysis of Cat Financial's allowance for credit losses was as follows:

   
 (Millions of dollars)Three Months Ended June 30, 2024Three Months Ended June 30, 2023
CustomerDealerTotalCustomerDealerTotal
Beginning balance$273 $4 $277 $278 $65 $343 
Write-offs(33)— (33)(21)— (21)
Recoveries15 — 15 13 — 13 
Provision for credit losses 1
15 — 15 (6)(15)(21)
Other(24)— (24)1 — 1 
Ending balance$246 $4 $250 $265 $50 $315 
   
Six Months Ended June 30, 2024Six Months Ended June 30, 2023
CustomerDealerTotalCustomerDealerTotal
Beginning balance$276 $51 $327 $277 $65 $342 
Write-offs(56)(47)(103)(41)— (41)
Recoveries30 — 30 23 — 23 
Provision for credit losses 1
24 — 24 4 (15)(11)
Other(28)— (28)2 — 2 
Ending balance$246 $4 $250 $265 $50 $315 
Finance Receivables$20,740 $1,780 $22,520 $19,814 $1,793 $21,607 
1 Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables.
Write-offs by origination year
Gross write-offs by origination year for Cat Financial's Customer portfolio segment were as follows:

      
 (Millions of dollars)Three Months Ended June 30, 2024
20242023202220212020PriorRevolving
Finance
Receivables		Total
North America$— $5 $2 $1 $— $1 $3 $12 
EAME— 1 1 1 1 — — 4 
Asia/Pacific— 1 1 2 — — — 4 
Latin America— — 2 2 1 8 — 13 
Total$— $7 $6 $6 $2 $9 $3 $33 
Three Months Ended June 30, 2023
20232022202120202019PriorRevolving
Finance
Receivables		Total
North America$— $2 $2 $1 $1 $1 $3 $10 
EAME— — 2 1 — 1 — 4 
Asia/Pacific— 1 1 2 — — — 4 
Latin America— 2 1 — — — — 3 
Total$— $5 $6 $4 $1 $2 $3 $21 
Six Months Ended June 30, 2024
20242023202220212020PriorRevolving
Finance
Receivables		Total
North America$— $8 $6 $3 $1 $1 $6 $25 
EAME— 2 2 2 1 — — 7 
Asia/Pacific— 2 3 3 1 — — 9 
Latin America— — 3 3 1 8 — 15 
Total$— $12 $14 $11 $4 $9 $6 $56 
Six Months Ended June 30, 2023
20232022202120202019PriorRevolving
Finance
Receivables		Total
North America$— $5 $5 $1 $1 $1 $7 $20 
EAME— 1 2 2 — 1 — 6 
Asia/Pacific— 1 3 3 1 — — 8 
Latin America— 2 2 2 1 — — 7 
Total$— $9 $12 $8 $3 $2 $7 $41 
Financing receivable credit quality indicators
The aging category of Cat Financial's amortized cost of finance receivables in the Customer portfolio segment by origination year were as follows:

      
 (Millions of dollars)June 30, 2024
20242023202220212020PriorRevolving
Finance
Receivables 		Total Finance Receivables
North America      
Current$2,733 $3,729 $2,074 $1,454 $464 $116 $343 $10,913 
31-60 days past due13 43 36 25 9 3 3 132 
61-90 days past due4 19 13 9 3 1 1 50 
91+ days past due2 28 28 17 9 3 1 88 
EAME
Current631 1,105 702 400 165 132 — 3,135 
31-60 days past due5 12 8 4 2 — — 31 
61-90 days past due1 8 4 3 1 1 — 18 
91+ days past due— 18 13 19 6 3 — 59 
Asia/Pacific
Current524 715 400 160 35 7 — 1,841 
31-60 days past due3 9 8 6 1 — — 27 
61-90 days past due1 4 2 3 — — — 10 
91+ days past due— 2 3 2 1 — — 8 
Mining
Current383 921 565 286 97 52 13 2,317 
31-60 days past due— — — — — — — — 
61-90 days past due— 1 — 1 1 1 — 4 
91+ days past due— 2 3 1 — 6 — 12 
Latin America
Current424 520 338 113 21 8 — 1,424 
31-60 days past due2 8 7 2 1 1 — 21 
61-90 days past due— 2 4 — 1 1 — 8 
91+ days past due— 5 9 6 3 2 — 25 
Power
Current45 175 47 53 68 71 155 614 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — — — — — 
91+ days past due— — — — — 3 — 3 
Totals by Aging Category
Current$4,740 $7,165 $4,126 $2,466 $850 $386 $511 $20,244 
31-60 days past due23 72 59 37 13 4 3 211 
61-90 days past due6 34 23 16 6 4 1 90 
91+ days past due2 55 56 45 19 17 1 195 
Total Customer$4,771 $7,326 $4,264 $2,564 $888 $411 $516 $20,740 
      
 (Millions of dollars)December 31, 2023
20232022202120202019PriorRevolving
Finance
Receivables 		Total Finance Receivables
North America      
Current$4,430 $2,628 $2,000 $745 $220 $32 $312 $10,367 
31-60 days past due28 31 24 14 7 1 4 109 
61-90 days past due10 11 8 4 1 — 2 36 
91+ days past due12 23 18 9 4 1 2 69 
EAME
Current1,336 895 588 258 111 105 — 3,293 
31-60 days past due10 9 7 3 1 — — 30 
61-90 days past due4 3 3 1 1 — — 12 
91+ days past due7 17 15 8 3 1 — 51 
Asia/Pacific
Current943 594 293 73 16 4 — 1,923 
31-60 days past due5 6 7 2 — — — 20 
61-90 days past due2 3 3 2 — — — 10 
91+ days past due1 5 3 3 1 — — 13 
Mining
Current1,039 686 381 121 68 27 66 2,388 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — 1 1 — 2 
91+ days past due— — 1 — — 1 — 2 
Latin America
Current750 520 219 59 23 6 — 1,577 
31-60 days past due9 10 6 1 — — — 26 
61-90 days past due2 4 1 — — — — 7 
91+ days past due2 10 8 5 8 11 — 44 
Power
Current152 49 64 75 28 59 162 589 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — — — — — 
91+ days past due— — — — — 3 — 3 
Totals by Aging Category
Current$8,650 $5,372 $3,545 $1,331 $466 $233 $540 $20,137 
31-60 days past due52 56 44 20 8 1 4 185 
61-90 days past due18 21 15 7 3 1 2 67 
91+ days past due22 55 45 25 16 17 2 182 
Total Customer$8,742 $5,504 $3,649 $1,383 $493 $252 $548 $20,571 
Investment in finance receivables 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:
  
 (Millions of dollars)June 30, 2024December 31, 2023
 Amortized CostAmortized Cost

Non-accrual
With an
Allowance		91+ Still
Accruing		Non-accrual
With an
Allowance		91+ Still
Accruing
  
North America$71 $19 $52 $20 
EAME56 7 34 18 
Asia/Pacific5 3 8 5 
Mining13 — 2 — 
Latin America28 — 48 1 
Power3 — 8 — 
Total$176 $29 $152 $44 
v3.24.2.u1
Fair Value Disclosures (Tables)
 6 Months Ended
Jun. 30, 2024
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 included in our Consolidated Statement of Financial Position as of June 30, 2024 and December 31, 2023 were as follows:
June 30, 2024
 (Millions of dollars)
Level 1Level 2Level 3Measured at NAVTotal
Assets / Liabilities,
at Fair Value
Assets    
Debt securities    
Government debt securities    
U.S. treasury bonds$10 $— $— $— $10 
Other U.S. and non-U.S. government bonds— 65 — — 65 
Corporate debt securities    
Corporate bonds and other debt securities— 2,825 — — 2,825 
Asset-backed securities— 203 — — 203 
Mortgage-backed debt securities    
U.S. governmental agency— 419 — — 419 
Residential— 1 — — 1 
Commercial— 128 — — 128 
Total debt securities10 3,641 — — 3,651 
Equity securities    
Large capitalization value249 — — — 249 
Smaller company growth37 — — — 37 
REIT— — — 168 168 
Total equity securities286 — — 168 454 
Derivative financial instruments - assets
Foreign currency contracts - net— 214 — — 214 
Commodity contracts - net— 2 — — 2 
Total return swap contracts - net— 3 — — 3 
Total assets$296 $3,860 $— $168 $4,324 
Liabilities    
Derivative financial instruments - liabilities
Interest rate contracts - net$— $228 $— $— $228 
Total liabilities$— $228 $— $— $228 
 
December 31, 2023
 (Millions of dollars)
Level 1Level 2Level 3Measured at NAVTotal
Assets / Liabilities,
at Fair Value
Assets    
Debt securities    
Government debt securities    
U.S. treasury bonds$10 $— $— $— $10 
Other U.S. and non-U.S. government bonds— 60 — — 60 
Corporate debt securities    
Corporate bonds and other debt securities— 2,995 — — 2,995 
Asset-backed securities— 192 — — 192 
Mortgage-backed debt securities   
U.S. governmental agency— 410 — — 410 
Residential— 2 — — 2 
Commercial— 128 — — 128 
Total debt securities10 3,787 — — 3,797 
Equity securities    
Large capitalization value223 — — — 223 
Smaller company growth35 — — — 35 
REIT— — — 180 180 
Total equity securities258 — — 180 438 
Derivative financial instruments - assets
Foreign currency contracts - net— 207 — — 207 
Commodity contracts - net— 9 — — 9 
Total Assets$268 $4,003 $— $180 $4,451 
Liabilities    
Derivative financial instruments - liabilities
Interest rate contracts - net$— $151 $— $— $151 
Total liabilities$— $151 $— $— $151 
Fair values of financial instruments
Our financial instruments not carried at fair value were as follows:
 
 June 30, 2024December 31, 2023 
(Millions of dollars)
Carrying
 Amount
Fair
 Value
Carrying
 Amount
Fair
 Value
Fair Value LevelsReference
Assets     
Finance receivables – net (excluding finance leases 1 )
$15,740 $15,222 $15,386 $15,017 3Note 17
Wholesale inventory receivables – net (excluding finance leases 1)
1,422 1,379 1,415 1,368 3
Liabilities     
Long-term debt (including amounts due within one year)
    
Machinery, Energy & Transportation8,582 7,898 9,623 9,550 2 
Financial Products23,431 23,126 23,612 23,299 2 

1    Represents finance leases and failed sale leasebacks of $6,720 million and $6,953 million at June 30, 2024 and December 31, 2023, respectively.
v3.24.2.u1
Other Income (Expense) (Tables)
 6 Months Ended
Jun. 30, 2024
Other Income and Expenses [Abstract]  
Other income (expense)
 Three Months Ended June 30,Six Months Ended June 30,
(Millions of dollars)2024202320242023
Investment and interest income$118 $96 $254 $189 
Foreign exchange gains (losses) 1
17 40 59 (32)
License fee income37 43 71 74 
Net periodic pension and OPEB income (cost), excluding service cost2 (12)5 (25)
Gains (losses) on securities(5)(10)12 (21)
Miscellaneous income (loss)(14)(30)(90)(26)
Total$155 $127 $311 $159 

1 Includes gains (losses) from foreign exchange derivative contracts. See Note 5 for further details.
v3.24.2.u1
Restructuring Income/Costs (Tables)
 6 Months Ended
Jun. 30, 2024
Restructuring Charges [Abstract]  
Restructuring and related costs
Restructuring costs for the three and six months ended June 30, 2024 and 2023 were as follows:

(Millions of dollars)Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Employee separations 1
$19 $10 $32 $22 
Divestitures 1
228 — 164 586 
Contract terminations 1
1 — 1 — 
Long-lived asset impairments 1
— 2 7 2 
Other 2
10 19 48 32 
Total restructuring (income) costs$258 $31 $252 $642 
1 Recognized in Other operating (income) expenses.
2 Represents costs related to our restructuring programs, primarily for project management, inventory write-downs, equipment relocation and accelerated depreciation, all of which are primarily included in Cost of goods sold.
v3.24.2.u1
Sales and Revenue Contract Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]            
Trade receivables from dealers and end users $ 8,024   $ 8,024   $ 7,923 $ 7,551
Long term trade receivables from dealers and end users 625   625   589 506
Contract assets 243   243   246 247
Contract liabilities 2,728   2,728   $ 2,389 $ 2,314
Revenue recognized from contract liability balance at beginning of period 360 $ 398 1,173 $ 1,135    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction            
Unsatisfied performance obligations with an original contract duration greater than one year $ 13,400   $ 13,400      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-07-01            
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction            
Expected period of performance satisfaction 12 months   12 months      
Remaining performance obligation, percentage 50.00%   50.00%      
v3.24.2.u1
Stock-Based Compensation (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]        
Stock-based compensation expense $ 75 $ 74 $ 119 $ 118
Unrecognized compensation expense $ 241   $ 241  
Term of amortization of unrecognized compensation cost over weighted-average remaining requisite service periods (in years)     1 year 9 months 18 days  
v3.24.2.u1
Stock-Based Compensation - Schedule of Type and Fair Value of Stock-Based Compensation Awards (Details) - $ / shares
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Stock options    
Stock-based compensation awards    
Shares Granted, stock options (in shares) 296,295 777,275
Weighted-Average Fair Value Per Share, stock options (in dollars per share) $ 104.27 $ 75.79
Weighted-Average Grant Date Stock Price (in dollars per share) 338.65 253.98
RSUs    
Stock-based compensation awards    
Weighted-Average Grant Date Stock Price (in dollars per share) $ 338.65 $ 253.98
Shares Granted, RSUs & PRSUs (in shares) 379,621 379,426
Weighted-Average Fair Value Per Share, RSUs & PRSUs (in dollars per share) $ 338.65 $ 253.98
PRSUs    
Stock-based compensation awards    
Weighted-Average Grant Date Stock Price (in dollars per share) $ 338.65 $ 253.98
Shares Granted, RSUs & PRSUs (in shares) 169,120 221,869
Weighted-Average Fair Value Per Share, RSUs & PRSUs (in dollars per share) $ 408.64 $ 253.98
v3.24.2.u1
Stock-Based Compensation - Schedule of Assumptions Used for Fair Value (Details)
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Stock options    
Stock-based compensation awards    
Weighted-average dividend yield 2.40% 2.60%
Weighted-average volatility 30.70% 31.00%
Rate of volatilities, minimum 26.30% 28.50%
Rate of volatilities, maximum 32.30% 35.50%
Risk-free interest rates, minimum 4.28% 3.92%
Risk-free interest rates, maximum 5.03% 5.03%
Weighted-average expected lives 7 years 7 years
PRSUs    
Stock-based compensation awards    
Expected volatility of the Company's stock 29.80%  
Risk-free interest rate 4.38%  
v3.24.2.u1
Derivative Financial Instruments and Risk Management (Details) - USD ($)
$ in Billions
 6 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Foreign currency cash flow hedges, maximum allowable period (in years) 5 years  
Foreign currency cash flow hedges, maximum period (in months) 60 months  
Commodity forward and option contracts, maximum period (in years) 5 years  
Notional amount $ 24.7 $ 25.6
v3.24.2.u1
Derivative Financial instruments and Risk Management- Summary of Location and Fair Value of Derivative Instruments (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Derivatives Fair Value    
Assets $ 402 $ 520
Liabilities (411) (455)
Designated derivatives    
Derivatives Fair Value    
Assets 337 447
Liabilities (383) (364)
Designated derivatives | Foreign exchange contracts    
Derivatives Fair Value    
Assets 322 389
Liabilities (140) (155)
Designated derivatives | Interest rate contracts    
Derivatives Fair Value    
Assets 15 58
Liabilities (243) (209)
Undesignated derivatives    
Derivatives Fair Value    
Assets 65 73
Liabilities (28) (91)
Undesignated derivatives | Foreign exchange contracts    
Derivatives Fair Value    
Assets 54 55
Liabilities (22) (82)
Undesignated derivatives | Commodity contracts    
Derivatives Fair Value    
Assets 6 18
Liabilities (4) (9)
Undesignated derivatives | Total return swap contracts    
Derivatives Fair Value    
Assets 5 0
Liabilities $ (2) $ 0
v3.24.2.u1
Derivative Financial instruments and Risk Management- Schedule of Gains (Losses) on Derivative Instruments (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Derivative Instruments, Gain (Loss)        
Gains (losses) recognized on the consolidated statement of results of operations $ 25 $ (23) $ 38 $ (69)
Foreign exchange contracts        
Derivative Instruments, Gain (Loss)        
Gains (losses) recognized on the consolidated statement of results of operations 64 31 93 3
Interest rate contracts        
Derivative Instruments, Gain (Loss)        
Gains (losses) recognized on the consolidated statement of results of operations (38) (34) (74) (60)
Commodity contracts        
Derivative Instruments, Gain (Loss)        
Gains (losses) recognized on the consolidated statement of results of operations 11 (20) 1 (12)
Total return swap contracts        
Derivative Instruments, Gain (Loss)        
Gains (losses) recognized on the consolidated statement of results of operations (12) 0 18 0
Designated derivatives | Cash Flow Hedges        
Derivative Instruments, Gain (Loss)        
Gains (losses) deferred (9) (12) 97 44
Gains (Losses) Reclassified from AOCI 70 42 176 (10)
Designated derivatives | Cash Flow Hedges | Foreign exchange contracts        
Derivative Instruments, Gain (Loss)        
Gains (losses) deferred (13) (26) 82 32
Gains (Losses) Reclassified from AOCI 56 28 147 (37)
Designated derivatives | Cash Flow Hedges | Interest rate contracts        
Derivative Instruments, Gain (Loss)        
Gains (losses) deferred 4 14 15 12
Gains (Losses) Reclassified from AOCI 14 14 29 27
Designated derivatives | Cash Flow Hedges | Commodity contracts        
Derivative Instruments, Gain (Loss)        
Gains (losses) deferred 0 0 0 0
Gains (Losses) Reclassified from AOCI 0 0 0 0
Designated derivatives | Cash Flow Hedges | Total return swap contracts        
Derivative Instruments, Gain (Loss)        
Gains (losses) deferred 0 0 0 0
Gains (Losses) Reclassified from AOCI $ 0 $ 0 $ 0 $ 0
v3.24.2.u1
Derivative Financial Instruments and Risk Management- Summary of Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Derivatives Fair Value    
Carrying Value of the Hedged Liabilities $ 5,863 $ 5,227
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities (236) (179)
Long-term debt due within one year    
Derivatives Fair Value    
Carrying Value of the Hedged Liabilities 793 982
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities (11) (23)
Long-term debt due after one year    
Derivatives Fair Value    
Carrying Value of the Hedged Liabilities 5,070 4,245
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities $ (225) $ (156)
v3.24.2.u1
Derivative Financial instruments and Risk Management - Summary Offsetting Assets and Liabilities (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Assets    
Gross Amounts Recognized $ 402 $ 520
Financial Instruments Not Offset (155) (202)
Net Amount 247 318
Liabilities    
Gross Amounts Recognized (411) (455)
Financial Instruments Not Offset 155 202
Net Amount $ (256) $ (253)
v3.24.2.u1
Inventories (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Inventory Disclosure [Abstract]    
Raw materials $ 6,662 $ 6,492
Work-in-process 1,465 1,411
Finished goods 8,593 8,308
Supplies 362 354
Total inventories $ 17,082 $ 16,565
v3.24.2.u1
Intangible Assets and Goodwill - Summary of Intangible Assets (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Intangible assets    
Gross carrying amount $ 2,839 $ 2,833
Accumulated Amortization (2,351) (2,269)
Net 488 564
Customer relationships    
Intangible assets    
Gross carrying amount 2,226 2,232
Accumulated Amortization (1,882) (1,814)
Net 344 418
Intellectual property    
Intangible assets    
Gross carrying amount 496 484
Accumulated Amortization (390) (380)
Net 106 104
Other    
Intangible assets    
Gross carrying amount 117 117
Accumulated Amortization (79) (75)
Net $ 38 $ 42
v3.24.2.u1
Intangible Assets and Goodwill (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]        
Amortization expense $ 43 $ 64 $ 87 $ 130
Goodwill, impairment loss     $ 0 $ 0
v3.24.2.u1
Intangible Assets and Goodwill - Summary Of Expected Amortization Expense Related To Intangible Assets (Details)
$ in Millions
Jun. 30, 2024
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Remaining Six Months of 2024 $ 88
2025 167
2026 96
2027 33
2028 26
Thereafter $ 78
v3.24.2.u1
Intangible Assets and Goodwill - Summary of Goodwill Acquired (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Goodwill    
Goodwill $ 7,386 $ 7,430
Impairments (2,122) (2,122)
Net goodwill 5,264 5,308
Changes in carrying amount of goodwill by reportable segment:    
Goodwill, beginning of period 7,430  
Other adjustments (44)  
Goodwill, end of period 7,386  
Net goodwill, beginning of period 5,308  
Other adjustments (44)  
Net goodwill, end of period 5,264  
Construction Industries    
Goodwill    
Goodwill 261 277
Impairments (22) (22)
Net goodwill 239 255
Changes in carrying amount of goodwill by reportable segment:    
Goodwill, beginning of period 277  
Other adjustments (16)  
Goodwill, end of period 261  
Net goodwill, beginning of period 255  
Other adjustments (16)  
Net goodwill, end of period 239  
Resource Industries    
Goodwill    
Goodwill 4,139 4,151
Impairments (1,175) (1,175)
Net goodwill 2,964 2,976
Changes in carrying amount of goodwill by reportable segment:    
Goodwill, beginning of period 4,151  
Other adjustments (12)  
Goodwill, end of period 4,139  
Net goodwill, beginning of period 2,976  
Other adjustments (12)  
Net goodwill, end of period 2,964  
Energy & Transportation    
Goodwill    
Goodwill 2,948 2,959
Impairments (925) (925)
Net goodwill 2,023 2,034
Changes in carrying amount of goodwill by reportable segment:    
Goodwill, beginning of period 2,959  
Other adjustments (11)  
Goodwill, end of period 2,948  
Net goodwill, beginning of period 2,034  
Other adjustments (11)  
Net goodwill, end of period 2,023  
Other Segments    
Goodwill    
Goodwill 38 $ 43
Changes in carrying amount of goodwill by reportable segment:    
Goodwill, beginning of period 43  
Other adjustments (5)  
Goodwill, end of period 38  
Other adjustments $ (5)  
v3.24.2.u1
Investments in Debt and Equity Securities - Schedule of Cost Basis and Fair Value of Available-for-Sale Securities (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Schedule of Investments in Debt and Equity Securities    
Cost Basis $ 3,741 $ 3,871
Unrealized Pretax Net Gains (Losses) (90) (74)
Fair Value 3,651 3,797
U.S. treasury bonds    
Schedule of Investments in Debt and Equity Securities    
Cost Basis 10 10
Unrealized Pretax Net Gains (Losses) 0 0
Fair Value 10 10
Other U.S. and non-U.S. government bonds    
Schedule of Investments in Debt and Equity Securities    
Cost Basis 67 62
Unrealized Pretax Net Gains (Losses) (2) (2)
Fair Value 65 60
Corporate bonds and other debt securities    
Schedule of Investments in Debt and Equity Securities    
Cost Basis 2,870 3,031
Unrealized Pretax Net Gains (Losses) (45) (36)
Fair Value 2,825 2,995
Asset-backed securities    
Schedule of Investments in Debt and Equity Securities    
Cost Basis 204 195
Unrealized Pretax Net Gains (Losses) (1) (3)
Fair Value 203 192
U.S. governmental agency    
Schedule of Investments in Debt and Equity Securities    
Cost Basis 452 433
Unrealized Pretax Net Gains (Losses) (33) (23)
Fair Value 419 410
Residential    
Schedule of Investments in Debt and Equity Securities    
Cost Basis 2 3
Unrealized Pretax Net Gains (Losses) (1) (1)
Fair Value 1 2
Commercial    
Schedule of Investments in Debt and Equity Securities    
Cost Basis 136 137
Unrealized Pretax Net Gains (Losses) (8) (9)
Fair Value $ 128 $ 128
v3.24.2.u1
Investments in Debt and Equity Securities - Summary of Investments In An Unrealized Loss Position That Are Not Other-Than-Temporarily Impaired (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Available-for-sale Securities, Continuous Unrealized Loss Position    
Less than 12 months - Fair Value $ 901 $ 809
Less than 12 months - Unrealized losses 4 0
12 months or more - Fair Value 1,764 1,541
12 months or more - Unrealized losses 92 85
Fair Value 2,665 2,350
Unrealized Losses 96 85
Other U.S. and non-U.S. government bonds    
Available-for-sale Securities, Continuous Unrealized Loss Position    
Less than 12 months - Fair Value 0 0
Less than 12 months - Unrealized losses 0 0
12 months or more - Fair Value 60 25
12 months or more - Unrealized losses 2 3
Fair Value 60 25
Unrealized Losses 2 3
Asset-backed securities    
Available-for-sale Securities, Continuous Unrealized Loss Position    
Less than 12 months - Fair Value 8 9
Less than 12 months - Unrealized losses 0 0
12 months or more - Fair Value 37 97
12 months or more - Unrealized losses 3 3
Fair Value 45 106
Unrealized Losses 3 3
Corporate bonds and other debt securities    
Available-for-sale Securities, Continuous Unrealized Loss Position    
Less than 12 months - Fair Value 826 765
Less than 12 months - Unrealized losses 3 0
12 months or more - Fair Value 1,240 1,011
12 months or more - Unrealized losses 46 45
Fair Value 2,066 1,776
Unrealized Losses 49 45
U.S. governmental agency    
Available-for-sale Securities, Continuous Unrealized Loss Position    
Less than 12 months - Fair Value 61 33
Less than 12 months - Unrealized losses 1 0
12 months or more - Fair Value 307 287
12 months or more - Unrealized losses 32 25
Fair Value 368 320
Unrealized Losses 33 25
Residential    
Available-for-sale Securities, Continuous Unrealized Loss Position    
Less than 12 months - Fair Value 0  
Less than 12 months - Unrealized losses 0  
12 months or more - Fair Value 1  
12 months or more - Unrealized losses 1  
Fair Value 1  
Unrealized Losses 1  
Commercial    
Available-for-sale Securities, Continuous Unrealized Loss Position    
Less than 12 months - Fair Value 6 2
Less than 12 months - Unrealized losses 0 0
12 months or more - Fair Value 119 121
12 months or more - Unrealized losses 8 9
Fair Value 125 123
Unrealized Losses $ 8 $ 9
v3.24.2.u1
Investments in Debt and Equity Securities - Summary of Cost Basis And Fair Value Of The Available-For-Sale Debt Securities By Contractual Maturity (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Cost Basis          
Due in one year or less $ 1,066   $ 1,066    
Due after one year through five years 1,747   1,747    
Due after five years through ten years 223   223    
Due after ten years 115   115    
Debt securities, available-for-sale, cost basis 3,741   3,741   $ 3,871
Fair Value          
Due in one year or less 1,056   1,056    
Due after one year through five years 1,711   1,711    
Due after five years through ten years 220   220    
Due after ten years 116   116    
Debt securities 3,651   3,651   3,797
Available-for-sale Securities, Proceeds, Gains and Losses          
Proceeds from the sale of available-for-sale securities 300 $ 216 660 $ 439  
Gross gains from the sale of available-for-sale securities 0 0 0 0  
Gross losses from the sale of available-for-sale securities 1 $ 0 2 $ 0  
U.S. governmental agency          
Cost Basis          
Debt securities, available-for-sale, cost basis 452   452   433
Fair Value          
Debt securities 419   419   410
Residential          
Cost Basis          
Debt securities, available-for-sale, cost basis 2   2   3
Fair Value          
Debt securities 1   1   2
Commercial          
Cost Basis          
Debt securities, available-for-sale, cost basis 136   136   137
Fair Value          
Debt securities $ 128   $ 128   $ 128
v3.24.2.u1
Investments in Debt and Equity Securities (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]          
Time deposit $ 0   $ 0   $ 1,900
Unrealized gain (loss) on equity securities $ (3) $ (4) $ 14 $ (14)  
v3.24.2.u1
Postretirement Benefits - Schedule Of Net Benefit Costs (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Pension Benefits | U.S. Pension Benefits        
Components of net periodic benefit cost:        
Service cost $ 0 $ 0 $ 0 $ 0
Interest cost 157 164 313 328
Expected return on plan assets (175) (172) (350) (344)
Amortization of prior service cost (credit) 0 0 0 0
Net periodic benefit cost (benefit) (18) (8) (37) (16)
Pension Benefits | Non-U.S. Pension Benefits        
Components of net periodic benefit cost:        
Service cost 11 10 22 20
Interest cost 31 30 61 61
Expected return on plan assets (42) (40) (84) (80)
Amortization of prior service cost (credit) 0 0 0 0
Net periodic benefit cost (benefit) 0 0 (1) 1
Other Postretirement Benefits        
Components of net periodic benefit cost:        
Service cost 17 17 34 34
Interest cost 33 36 66 72
Expected return on plan assets (2) (3) (4) (6)
Amortization of prior service cost (credit) (4) (3) (7) (6)
Net periodic benefit cost (benefit) $ 44 $ 47 $ 89 $ 94
v3.24.2.u1
Postretirement Benefits (Details)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
USD ($)
Jun. 30, 2024
USD ($)
Defined Benefit Plan Disclosure    
Expected full year contributions to pension and other postretirement benefit plans during the year $ 273 $ 273
Pension Benefits    
Defined Benefit Plan Disclosure    
Contributions to pension and other postretirement benefit plans $ 59 $ 172
v3.24.2.u1
Postretirement Benefits - Summary Of Company Costs Related To U.S. And Non-U.S. Defined Contribution Plans (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Defined Contribution Plan        
Costs related to defined contribution plans $ 147 $ 165 $ 400 $ 343
U.S. Pension Benefits        
Defined Contribution Plan        
Costs related to defined contribution plans 115 136 338 285
Non-U.S. Pension Benefits        
Defined Contribution Plan        
Costs related to defined contribution plans $ 32 $ 29 $ 62 $ 58
v3.24.2.u1
Leases - Lease Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Leases [Abstract]        
Finance lease revenue $ 107 $ 105 $ 215 $ 209
Operating lease revenue 293 275 606 550
Total $ 400 $ 380 $ 821 $ 759
Financial Products        
Lessor, Lease, Description        
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] Sales and revenues Sales and revenues Sales and revenues Sales and revenues
v3.24.2.u1
Guarantees and Product Warranty (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Guarantor Obligations    
Guarantees, maximum potential amount of future payments $ 406 $ 353
SPC assets in consolidated statement 83,336 87,476
SPC liabilities in consolidated statement 66,200 67,973
Variable Interest Entity, Primary Beneficiary    
Guarantor Obligations    
SPC assets in consolidated statement 1,350 1,350
SPC liabilities in consolidated statement $ 1,350 $ 1,350
v3.24.2.u1
Guarantees and Product Warranty - Summary Of Product Warranty (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Change in product warranty liability balances    
Warranty liability, beginning of period $ 1,894 $ 1,761
Reduction in liability (payments) (387) (410)
Increase in liability (new warranties) 276 471
Warranty liability, end of period $ 1,783 $ 1,822
v3.24.2.u1
Profit Per Share - Computations of profit per share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Earnings Per Share Reconciliation [Abstract]        
Profit for the period (A) (in dollars) $ 2,681 [1] $ 2,922 [1] $ 5,537 [2] $ 4,865 [2]
Determination of shares (in millions):        
Weighted-average number of common shares outstanding (B) (in shares) 487.2 512.9 490.7 514.3
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price (in shares) 2.3 2.1 2.6 2.8
Average common shares outstanding for fully diluted computation (C) (in shares) 489.5 [3] 515.0 [3] 493.3 [4] 517.1 [4]
Profit per share of common stock:        
Assuming no dilution (A/B) (in dollars per share) $ 5.50 $ 5.70 $ 11.28 $ 9.46
Assuming full dilution (A/C) (in dollars per share) $ 5.48 [3] $ 5.67 [3] $ 11.23 [4] $ 9.41 [4]
Shares outstanding as of end of period (in shares) 484.9 510.1 484.9 510.1
[1] Profit attributable to common shareholders.
[2] Profit attributable to common shareholders.
[3] Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
[4] Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
v3.24.2.u1
Profit Per Share (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Stock Repurchase          
Common shares under SARs and stock options not included in the computation of diluted earnings per share (in shares) 300,000   800,000 300,000 800,000
Common shares repurchased (in shares) 4,578,023   5,914,408 15,906,510 7,616,168
Common shares repurchased $ 1,570 [1]   $ 1,279 [1] $ 5,275 [2] $ 1,679 [2]
Cost of repurchase       6,275 $ 1,829
ASR Agreements          
Stock Repurchase          
Common shares repurchased (in shares) 2,200,000 7,600,000      
Common shares repurchased $ 750 $ 2,450      
Cost of repurchase $ 1,000 $ 3,500      
Stock repurchase program, unsettled forward contract, reduction to common stock       $ 1,300  
[1] See Note 12 for additional information.
[2]
1 Dividends per share of common stock of $2.71 and $2.50 were declared in the six months ended June 30, 2024 and 2023, respectively.
2 See Note 12 for additional information.
v3.24.2.u1
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Beginning balance $ 17,645 $ 18,170 $ 19,503 $ 15,891
Total other comprehensive income (loss), net of tax (137) (200) (410) 511
Ending balance 17,136 18,256 17,136 18,256
Foreign currency translation        
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Beginning balance (2,039) (1,721) (1,782) (2,328)
Gains (losses) on foreign currency translation (128) (144) (341) (41)
Less: Tax provision /(benefit) 4 (2) 15 (12)
Net gains (losses) on foreign currency translation (132) (142) (356) (29)
(Gains) losses reclassified to earnings 61 0 28 494
Less: Tax provision /(benefit) 0 0 0 0
Net (gains) losses reclassified to earnings 61 0 28 494
Total other comprehensive income (loss), net of tax (71) (142) (328) 465
Ending balance (2,110) (1,863) (2,110) (1,863)
Pension and other postretirement benefits        
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Beginning balance (52) (41) (49) (39)
Gains (losses) on foreign currency translation 0 0 0 0
Less: Tax provision /(benefit) 0 0 0 0
Net gains (losses) on foreign currency translation 0 0 0 0
(Gains) losses reclassified to earnings (4) (3) (7) (6)
Less: Tax provision /(benefit) (1) 0 (1) (1)
Net (gains) losses reclassified to earnings (3) (3) (6) (5)
Total other comprehensive income (loss), net of tax (3) (3) (6) (5)
Ending balance (55) (44) (55) (44)
Derivative financial instruments        
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Beginning balance 67 112 67 28
Gains (losses) on foreign currency translation (9) (12) 97 44
Less: Tax provision /(benefit) (1) (3) 27 9
Net gains (losses) on foreign currency translation (8) (9) 70 35
(Gains) losses reclassified to earnings (70) (42) (176) 10
Less: Tax provision /(benefit) (16) (10) (44) 2
Net (gains) losses reclassified to earnings (54) (32) (132) 8
Total other comprehensive income (loss), net of tax (62) (41) (62) 43
Ending balance 5 71 5 71
Available-for-sale securities        
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Beginning balance (69) (96) (56) (118)
Gains (losses) on foreign currency translation (1) (16) (18) 10
Less: Tax provision /(benefit) 1 (2) (2) 2
Net gains (losses) on foreign currency translation (2) (14) (16) 8
(Gains) losses reclassified to earnings 1 0 2 0
Less: Tax provision /(benefit) 0 0 0 0
Net (gains) losses reclassified to earnings 1 0 2 0
Total other comprehensive income (loss), net of tax (1) (14) (14) 8
Ending balance (70) (110) (70) (110)
Accumulated other comprehensive income (loss)        
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]        
Beginning balance (2,093) (1,746) (1,820) (2,457)
Ending balance $ (2,230) $ (1,946) $ (2,230) $ (1,946)
v3.24.2.u1
Income Taxes (Details) - entity
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Tax Disclosure [Abstract]        
Effective tax rate 23.90% 20.60% 21.70% 23.20%
Number of entities divested 2      
v3.24.2.u1
Segment Information (Details)
 6 Months Ended
Jun. 30, 2024
group_president
segment
Segment Reporting Information  
Number of group presidents | group_president 4
Number of operating segments 5
Useful life to amortize goodwill for segment assets 20 years
Reportable Segments  
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_president 1
Number of smaller operating segments led by Group President 1
v3.24.2.u1
Segment Information - Revenue By Geographic Region (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Sales and revenues by geographic region        
Sales and revenues $ 16,689 $ 17,318 $ 32,488 $ 33,180
Intersegment Sales and Revenues        
Sales and revenues by geographic region        
Sales and revenues (1,447) (1,467) (2,820) (2,852)
Corporate Items        
Sales and revenues by geographic region        
Sales and revenues (202) (190) (428) (383)
Corporate Reconciling Items and Eliminations        
Sales and revenues by geographic region        
Sales and revenues (1,649) (1,657) (3,248) (3,235)
North America        
Sales and revenues by geographic region        
Sales and revenues 9,043 8,922 17,616 16,872
North America | Corporate Items        
Sales and revenues by geographic region        
Sales and revenues (109) (117) (261) (248)
Latin America        
Sales and revenues by geographic region        
Sales and revenues 1,719 1,642 3,278 3,181
Latin America | Corporate Items        
Sales and revenues by geographic region        
Sales and revenues (22) (23) (42) (41)
EAME        
Sales and revenues by geographic region        
Sales and revenues 2,997 3,533 5,849 6,951
EAME | Corporate Items        
Sales and revenues by geographic region        
Sales and revenues (41) (23) (71) (42)
Asia/ Pacific        
Sales and revenues by geographic region        
Sales and revenues 2,930 3,221 5,745 6,176
Asia/ Pacific | Corporate Items        
Sales and revenues by geographic region        
Sales and revenues (30) (27) (54) (52)
Segments Excluding All Other Segments | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 16,862 17,474 32,853 33,494
Segments Excluding All Other Segments | Intersegment Sales and Revenues        
Sales and revenues by geographic region        
Sales and revenues (1,368) (1,385) (2,666) (2,694)
Segments Excluding All Other Segments | Operating Segments        
Sales and revenues by geographic region        
Sales and revenues 18,230 18,859 35,519 36,188
Segments Excluding All Other Segments | North America | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 9,139 9,023 17,846 17,086
Segments Excluding All Other Segments | Latin America | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 1,741 1,665 3,321 3,222
Segments Excluding All Other Segments | EAME | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 3,034 3,552 5,912 6,985
Segments Excluding All Other Segments | Asia/ Pacific | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 2,948 3,234 5,774 6,201
Construction Industries | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 6,656 7,121 13,073 13,825
Construction Industries | Intersegment Sales and Revenues        
Sales and revenues by geographic region        
Sales and revenues (27) (33) (34) (75)
Construction Industries | Operating Segments        
Sales and revenues by geographic region        
Sales and revenues 6,683 7,154 13,107 13,900
Construction Industries | North America | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 3,957 3,968 7,790 7,576
Construction Industries | Latin America | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 677 566 1,272 1,165
Construction Industries | EAME | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 1,047 1,438 2,043 2,774
Construction Industries | Asia/ Pacific | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 975 1,149 1,968 2,310
Resource Industries | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 3,122 3,473 6,218 6,832
Resource Industries | Intersegment Sales and Revenues        
Sales and revenues by geographic region        
Sales and revenues (84) (90) (181) (158)
Resource Industries | Operating Segments        
Sales and revenues by geographic region        
Sales and revenues 3,206 3,563 6,399 6,990
Resource Industries | North America | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 1,206 1,342 2,470 2,650
Resource Industries | Latin America | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 524 538 1,000 1,012
Resource Industries | EAME | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 442 517 907 1,116
Resource Industries | Asia/ Pacific | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 950 1,076 1,841 2,054
Energy & Transportation        
Sales and revenues by geographic region        
Sales and revenues 6,080 5,957 11,567 11,012
Energy & Transportation | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 6,080 5,957 11,567 11,012
Energy & Transportation | Intersegment Sales and Revenues        
Sales and revenues by geographic region        
Sales and revenues (1,257) (1,262) (2,451) (2,461)
Energy & Transportation | Operating Segments        
Sales and revenues by geographic region        
Sales and revenues 7,337 7,219 14,018 13,473
Energy & Transportation | North America | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 3,308 3,120 6,259 5,692
Energy & Transportation | Latin America | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 439 459 847 839
Energy & Transportation | EAME | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 1,421 1,479 2,715 2,863
Energy & Transportation | Asia/ Pacific | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 912 899 1,746 1,618
Financial Products Segment | Related Party        
Sales and revenues by geographic region        
Sales and revenues 180 172 357 334
Financial Products Segment | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 1,004 923 1,995 1,825
Financial Products Segment | Intersegment Sales and Revenues        
Sales and revenues by geographic region        
Sales and revenues 0 0 0 0
Financial Products Segment | Operating Segments        
Sales and revenues by geographic region        
Sales and revenues 1,004 923 1,995 1,825
Financial Products Segment | North America | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 668 593 1,327 1,168
Financial Products Segment | Latin America | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 101 102 202 206
Financial Products Segment | EAME | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 124 118 247 232
Financial Products Segment | Asia/ Pacific | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 111 110 219 219
Other Segments | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 29 34 63 69
Other Segments | Intersegment Sales and Revenues        
Sales and revenues by geographic region        
Sales and revenues (79) (82) (154) (158)
Other Segments | Operating Segments        
Sales and revenues by geographic region        
Sales and revenues 108 116 217 227
Other Segments | North America | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 13 16 31 34
Other Segments | Latin America | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 0 0 (1) 0
Other Segments | EAME | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues 4 4 8 8
Other Segments | Asia/ Pacific | Operating Segments Excluding Intersegment Eliminations        
Sales and revenues by geographic region        
Sales and revenues $ 12 $ 14 $ 25 $ 27
v3.24.2.u1
Segment Information - Energy & Transportation Sales (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Energy and transportation sales        
Sales and revenues $ 16,689 $ 17,318 $ 32,488 $ 33,180
Energy & Transportation        
Energy and transportation sales        
Sales and revenues 6,080 5,957 11,567 11,012
Energy & Transportation | Oil and gas        
Energy and transportation sales        
Sales and revenues 1,829 1,760 3,397 3,074
Energy & Transportation | Power generation        
Energy and transportation sales        
Sales and revenues 1,885 1,645 3,503 2,929
Energy & Transportation | Industrial        
Energy and transportation sales        
Sales and revenues 1,045 1,318 2,034 2,573
Energy & Transportation | Transportation        
Energy and transportation sales        
Sales and revenues $ 1,321 $ 1,234 $ 2,633 $ 2,436
v3.24.2.u1
Segment Information - Reconciliations of Consolidated Profit Before Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax $ 3,500 $ 3,652 $ 7,032 $ 6,286
Operating Segments | Reportable Segments        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax 4,211 4,052 8,299 7,895
Operating Segments | Reportable Segments | Construction Industries        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax 1,741 1,803 3,505 3,593
Operating Segments | Reportable Segments | Resource Industries        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax 718 740 1,448 1,504
Operating Segments | Reportable Segments | Energy & Transportation        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax 1,525 1,269 2,826 2,326
Operating Segments | Reportable Segments | Financial Products Segment        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax 227 240 520 472
Operating Segments | All Other operating segments        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax 21 10 45 21
Intersegment Sales and Revenues | Cost centers        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax (2) 13 12 43
Intersegment Sales and Revenues | Corporate costs        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax (276) (211) (477) (449)
Intersegment Sales and Revenues | Timing        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax 82 95 15 (111)
Intersegment Sales and Revenues | Restructuring income (costs)        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax (258) (31) (252) (642)
Intersegment Sales and Revenues | Inventory/cost of sales        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax 9 13 3 139
Intersegment Sales and Revenues | Postretirement benefit expense        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax 1 (40) (55) (71)
Intersegment Sales and Revenues | Stock-based compensation expense        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax (75) (74) (119) (118)
Intersegment Sales and Revenues | Financing costs        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax (41) (52) (69) (102)
Intersegment Sales and Revenues | Currency        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax 21 54 108 28
Intersegment Sales and Revenues | Other income/expense methodology differences        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax (168) (158) (418) (304)
Intersegment Sales and Revenues | Other methodology differences        
Reconciliation of Consolidated profit (loss) before taxes        
Reclassifications before tax $ (25) $ (19) $ (60) $ (43)
v3.24.2.u1
Segment Information - Reconciliation Of Assets (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Reconciliation of Assets    
Assets $ 83,336 $ 87,476
Intersegment Sales and Revenues    
Reconciliation of Assets    
Inventory Methodology Difference (3,493) (3,169)
Intersegment Sales and Revenues | Cash and cash equivalents    
Reconciliation of Assets    
Assets 3,481 6,106
Intersegment Sales and Revenues | Deferred income taxes    
Reconciliation of Assets    
Assets 2,800 2,668
Intersegment Sales and Revenues | Goodwill and intangible assets    
Reconciliation of Assets    
Assets 4,138 4,452
Intersegment Sales and Revenues | Property, plant and equipment – net and other assets    
Reconciliation of Assets    
Assets 4,457 6,548
Intersegment Sales and Revenues | Liabilities included in segment assets    
Reconciliation of Assets    
Assets 11,974 11,781
Intersegment Sales and Revenues | Other methodology differences    
Reconciliation of Assets    
Assets (596) (166)
Operating Segments | Reportable Segments    
Reconciliation of Assets    
Assets 58,647 57,366
Operating Segments | Reportable Segments | Construction Industries    
Reconciliation of Assets    
Assets 5,696 5,384
Operating Segments | Reportable Segments | Resource Industries    
Reconciliation of Assets    
Assets 5,611 5,742
Operating Segments | Reportable Segments | Energy & Transportation    
Reconciliation of Assets    
Assets 11,119 10,555
Operating Segments | Reportable Segments | Financial Products Segment    
Reconciliation of Assets    
Assets 36,221 35,685
Operating Segments | All Other operating segments    
Reconciliation of Assets    
Assets $ 1,928 $ 1,890
v3.24.2.u1
Segment Information - Reconciliations of Depreciation And Amortization (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Reconciliation of Depreciation and amortization        
Depreciation and amortization $ 531 $ 542 $ 1,055 $ 1,074
Operating Segments | Reportable Segments        
Reconciliation of Depreciation and amortization        
Depreciation and amortization 448 450 889 898
Operating Segments | Reportable Segments | Construction Industries        
Reconciliation of Depreciation and amortization        
Depreciation and amortization 57 54 113 108
Operating Segments | Reportable Segments | Resource Industries        
Reconciliation of Depreciation and amortization        
Depreciation and amortization 63 82 126 169
Operating Segments | Reportable Segments | Energy & Transportation        
Reconciliation of Depreciation and amortization        
Depreciation and amortization 143 133 280 262
Operating Segments | Reportable Segments | Financial Products Segment        
Reconciliation of Depreciation and amortization        
Depreciation and amortization 185 181 370 359
Intersegment Sales and Revenues | All Other operating segments        
Reconciliation of Depreciation and amortization        
Depreciation and amortization 62 60 123 117
Intersegment Sales and Revenues | Cost centers        
Reconciliation of Depreciation and amortization        
Depreciation and amortization 24 22 47 42
Intersegment Sales and Revenues | Other methodology differences        
Reconciliation of Depreciation and amortization        
Depreciation and amortization $ (3) $ 10 $ (4) $ 17
v3.24.2.u1
Segment Information - Reconciliations Of Capital Expenditures (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Reconciliation of Capital expenditures        
Capital expenditures $ 719 $ 707 $ 1,455 $ 1,457
Operating Segments | Reportable Segments        
Reconciliation of Capital expenditures        
Capital expenditures 684 682 1,132 1,188
Operating Segments | Reportable Segments | Construction Industries        
Reconciliation of Capital expenditures        
Capital expenditures 55 51 113 83
Operating Segments | Reportable Segments | Resource Industries        
Reconciliation of Capital expenditures        
Capital expenditures 52 44 86 70
Operating Segments | Reportable Segments | Energy & Transportation        
Reconciliation of Capital expenditures        
Capital expenditures 257 177 379 346
Operating Segments | Reportable Segments | Financial Products Segment        
Reconciliation of Capital expenditures        
Capital expenditures 320 410 554 689
Intersegment Sales and Revenues | All Other operating segments        
Reconciliation of Capital expenditures        
Capital expenditures 57 49 86 75
Intersegment Sales and Revenues | Cost centers        
Reconciliation of Capital expenditures        
Capital expenditures 24 22 54 44
Intersegment Sales and Revenues | Timing        
Reconciliation of Capital expenditures        
Capital expenditures (37) (27) 208 185
Intersegment Sales and Revenues | Other methodology differences        
Reconciliation of Capital expenditures        
Capital expenditures $ (9) $ (19) $ (25) $ (35)
v3.24.2.u1
Cat Financial Financing Activities - Allowance For Credit Losses (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Receivables [Abstract]          
Average term 51 months   51 months    
Average remaining term 27 months   27 months    
Allowance for Credit Loss Activity          
Beginning balance $ 277 $ 343 $ 327 $ 342  
Write-Offs by origination year (Prior) (33) (21) (103) (41)  
Recoveries 15 13 30 23  
Provision for credit losses 15 (21) 24 (11)  
Other (24) 1 (28) 2  
Ending balance 250 315 250 315  
Total Finance Receivables 22,520 21,607 22,520 21,607  
Customer          
Allowance for Credit Loss Activity          
Beginning balance 273 278 276 277  
Write-Offs by origination year (Prior) (33) (21) (56) (41)  
Recoveries 15 13 30 23  
Provision for credit losses 15 (6) 24 4  
Other (24) 1 (28) 2  
Ending balance 246 265 246 265  
Total Finance Receivables 20,740 19,814 20,740 19,814 $ 20,571
Customer | Latin America          
Allowance for Credit Loss Activity          
Write-Offs by origination year (Prior) (13) (3) (15) (7)  
Dealer          
Allowance for Credit Loss Activity          
Beginning balance 4 65 51 65  
Write-Offs by origination year (Prior) 0 0 (47) 0  
Recoveries 0 0 0 0  
Provision for credit losses 0 (15) 0 (15)  
Other 0 0 0 0  
Ending balance 4 50 4 50  
Total Finance Receivables 1,780 $ 1,793 1,780 $ 1,793  
Dealer | Latin America          
Allowance for Credit Loss Activity          
Write-Offs by origination year (Prior) $ 0   $ (47)    
v3.24.2.u1
Cat Financial Financing Activities - Write Offs (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Write-offs by origination year        
Total $ 33 $ 21 $ 103 $ 41
Customer        
Write-offs by origination year        
2024/2023 0 0 0 0
2023/2022 7 5 12 9
2022/2021 6 6 14 12
2021/2020 6 4 11 8
2020/2019 2 1 4 3
Prior 9 2 9 2
Revolving Finance Receivables 3 3 6 7
Total 33 21 56 41
Customer | North America        
Write-offs by origination year        
2024/2023 0 0 0 0
2023/2022 5 2 8 5
2022/2021 2 2 6 5
2021/2020 1 1 3 1
2020/2019 0 1 1 1
Prior 1 1 1 1
Revolving Finance Receivables 3 3 6 7
Total 12 10 25 20
Customer | EAME        
Write-offs by origination year        
2024/2023 0 0 0 0
2023/2022 1 0 2 1
2022/2021 1 2 2 2
2021/2020 1 1 2 2
2020/2019 1 0 1 0
Prior 0 1 0 1
Revolving Finance Receivables 0 0 0 0
Total 4 4 7 6
Customer | Asia/ Pacific        
Write-offs by origination year        
2024/2023 0 0 0 0
2023/2022 1 1 2 1
2022/2021 1 1 3 3
2021/2020 2 2 3 3
2020/2019 0 0 1 1
Prior 0 0 0 0
Revolving Finance Receivables 0 0 0 0
Total 4 4 9 8
Customer | Latin America        
Write-offs by origination year        
2024/2023 0 0 0 0
2023/2022 0 2 0 2
2022/2021 2 1 3 2
2021/2020 2 0 3 2
2020/2019 1 0 1 1
Prior 8 0 8 0
Revolving Finance Receivables 0 0 0 0
Total 13 3 15 7
Dealer        
Write-offs by origination year        
Total 0 $ 0 47 $ 0
Dealer | Latin America        
Write-offs by origination year        
Total $ 0   $ 47  
v3.24.2.u1
Cat Financial Financing Activities - Financing Receivable Credit Quality Indicator (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Jun. 30, 2023
Receivables [Abstract]      
Period after which Unpaid Installments are Considered as Past Due 30 days    
Financing Receivable, Credit Quality Indicator      
Total Finance Receivables $ 22,520   $ 21,607
Customer      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 4,771 $ 8,742  
2023 and 2022, respectively 7,326 5,504  
2022 and 2021, respectively 4,264 3,649  
2021 and 2020, respectively 2,564 1,383  
2020 and 2019, respectively 888 493  
Prior 411 252  
Revolving Finance Receivables 516 548  
Total Finance Receivables 20,740 20,571 19,814
Customer | Current      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 4,740 8,650  
2023 and 2022, respectively 7,165 5,372  
2022 and 2021, respectively 4,126 3,545  
2021 and 2020, respectively 2,466 1,331  
2020 and 2019, respectively 850 466  
Prior 386 233  
Revolving Finance Receivables 511 540  
Total Finance Receivables 20,244 20,137  
Customer | 31-60 days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 23 52  
2023 and 2022, respectively 72 56  
2022 and 2021, respectively 59 44  
2021 and 2020, respectively 37 20  
2020 and 2019, respectively 13 8  
Prior 4 1  
Revolving Finance Receivables 3 4  
Total Finance Receivables 211 185  
Customer | 61-90 days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 6 18  
2023 and 2022, respectively 34 21  
2022 and 2021, respectively 23 15  
2021 and 2020, respectively 16 7  
2020 and 2019, respectively 6 3  
Prior 4 1  
Revolving Finance Receivables 1 2  
Total Finance Receivables 90 67  
Customer | 91+ days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 2 22  
2023 and 2022, respectively 55 55  
2022 and 2021, respectively 56 45  
2021 and 2020, respectively 45 25  
2020 and 2019, respectively 19 16  
Prior 17 17  
Revolving Finance Receivables 1 2  
Total Finance Receivables 195 182  
Customer | North America | Current      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 2,733 4,430  
2023 and 2022, respectively 3,729 2,628  
2022 and 2021, respectively 2,074 2,000  
2021 and 2020, respectively 1,454 745  
2020 and 2019, respectively 464 220  
Prior 116 32  
Revolving Finance Receivables 343 312  
Total Finance Receivables 10,913 10,367  
Customer | North America | 31-60 days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 13 28  
2023 and 2022, respectively 43 31  
2022 and 2021, respectively 36 24  
2021 and 2020, respectively 25 14  
2020 and 2019, respectively 9 7  
Prior 3 1  
Revolving Finance Receivables 3 4  
Total Finance Receivables 132 109  
Customer | North America | 61-90 days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 4 10  
2023 and 2022, respectively 19 11  
2022 and 2021, respectively 13 8  
2021 and 2020, respectively 9 4  
2020 and 2019, respectively 3 1  
Prior 1 0  
Revolving Finance Receivables 1 2  
Total Finance Receivables 50 36  
Customer | North America | 91+ days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 2 12  
2023 and 2022, respectively 28 23  
2022 and 2021, respectively 28 18  
2021 and 2020, respectively 17 9  
2020 and 2019, respectively 9 4  
Prior 3 1  
Revolving Finance Receivables 1 2  
Total Finance Receivables 88 69  
Customer | EAME | Current      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 631 1,336  
2023 and 2022, respectively 1,105 895  
2022 and 2021, respectively 702 588  
2021 and 2020, respectively 400 258  
2020 and 2019, respectively 165 111  
Prior 132 105  
Revolving Finance Receivables 0 0  
Total Finance Receivables 3,135 3,293  
Customer | EAME | 31-60 days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 5 10  
2023 and 2022, respectively 12 9  
2022 and 2021, respectively 8 7  
2021 and 2020, respectively 4 3  
2020 and 2019, respectively 2 1  
Prior 0 0  
Revolving Finance Receivables 0 0  
Total Finance Receivables 31 30  
Customer | EAME | 61-90 days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 1 4  
2023 and 2022, respectively 8 3  
2022 and 2021, respectively 4 3  
2021 and 2020, respectively 3 1  
2020 and 2019, respectively 1 1  
Prior 1 0  
Revolving Finance Receivables 0 0  
Total Finance Receivables 18 12  
Customer | EAME | 91+ days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 0 7  
2023 and 2022, respectively 18 17  
2022 and 2021, respectively 13 15  
2021 and 2020, respectively 19 8  
2020 and 2019, respectively 6 3  
Prior 3 1  
Revolving Finance Receivables 0 0  
Total Finance Receivables 59 51  
Customer | Asia/ Pacific | Current      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 524 943  
2023 and 2022, respectively 715 594  
2022 and 2021, respectively 400 293  
2021 and 2020, respectively 160 73  
2020 and 2019, respectively 35 16  
Prior 7 4  
Revolving Finance Receivables 0 0  
Total Finance Receivables 1,841 1,923  
Customer | Asia/ Pacific | 31-60 days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 3 5  
2023 and 2022, respectively 9 6  
2022 and 2021, respectively 8 7  
2021 and 2020, respectively 6 2  
2020 and 2019, respectively 1 0  
Prior 0 0  
Revolving Finance Receivables 0 0  
Total Finance Receivables 27 20  
Customer | Asia/ Pacific | 61-90 days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 1 2  
2023 and 2022, respectively 4 3  
2022 and 2021, respectively 2 3  
2021 and 2020, respectively 3 2  
2020 and 2019, respectively 0 0  
Prior 0 0  
Revolving Finance Receivables 0 0  
Total Finance Receivables 10 10  
Customer | Asia/ Pacific | 91+ days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 0 1  
2023 and 2022, respectively 2 5  
2022 and 2021, respectively 3 3  
2021 and 2020, respectively 2 3  
2020 and 2019, respectively 1 1  
Prior 0 0  
Revolving Finance Receivables 0 0  
Total Finance Receivables 8 13  
Customer | Mining | Current      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 383 1,039  
2023 and 2022, respectively 921 686  
2022 and 2021, respectively 565 381  
2021 and 2020, respectively 286 121  
2020 and 2019, respectively 97 68  
Prior 52 27  
Revolving Finance Receivables 13 66  
Total Finance Receivables 2,317 2,388  
Customer | Mining | 31-60 days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 0 0  
2023 and 2022, respectively 0 0  
2022 and 2021, respectively 0 0  
2021 and 2020, respectively 0 0  
2020 and 2019, respectively 0 0  
Prior 0 0  
Revolving Finance Receivables 0 0  
Total Finance Receivables 0 0  
Customer | Mining | 61-90 days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 0 0  
2023 and 2022, respectively 1 0  
2022 and 2021, respectively 0 0  
2021 and 2020, respectively 1 0  
2020 and 2019, respectively 1 1  
Prior 1 1  
Revolving Finance Receivables 0 0  
Total Finance Receivables 4 2  
Customer | Mining | 91+ days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 0 0  
2023 and 2022, respectively 2 0  
2022 and 2021, respectively 3 1  
2021 and 2020, respectively 1 0  
2020 and 2019, respectively 0 0  
Prior 6 1  
Revolving Finance Receivables 0 0  
Total Finance Receivables 12 2  
Customer | Latin America | Current      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 424 750  
2023 and 2022, respectively 520 520  
2022 and 2021, respectively 338 219  
2021 and 2020, respectively 113 59  
2020 and 2019, respectively 21 23  
Prior 8 6  
Revolving Finance Receivables 0 0  
Total Finance Receivables 1,424 1,577  
Customer | Latin America | 31-60 days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 2 9  
2023 and 2022, respectively 8 10  
2022 and 2021, respectively 7 6  
2021 and 2020, respectively 2 1  
2020 and 2019, respectively 1 0  
Prior 1 0  
Revolving Finance Receivables 0 0  
Total Finance Receivables 21 26  
Customer | Latin America | 61-90 days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 0 2  
2023 and 2022, respectively 2 4  
2022 and 2021, respectively 4 1  
2021 and 2020, respectively 0 0  
2020 and 2019, respectively 1 0  
Prior 1 0  
Revolving Finance Receivables 0 0  
Total Finance Receivables 8 7  
Customer | Latin America | 91+ days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 0 2  
2023 and 2022, respectively 5 10  
2022 and 2021, respectively 9 8  
2021 and 2020, respectively 6 5  
2020 and 2019, respectively 3 8  
Prior 2 11  
Revolving Finance Receivables 0 0  
Total Finance Receivables 25 44  
Customer | Power | Current      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 45 152  
2023 and 2022, respectively 175 49  
2022 and 2021, respectively 47 64  
2021 and 2020, respectively 53 75  
2020 and 2019, respectively 68 28  
Prior 71 59  
Revolving Finance Receivables 155 162  
Total Finance Receivables 614 589  
Customer | Power | 31-60 days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 0 0  
2023 and 2022, respectively 0 0  
2022 and 2021, respectively 0 0  
2021 and 2020, respectively 0 0  
2020 and 2019, respectively 0 0  
Prior 0 0  
Revolving Finance Receivables 0 0  
Total Finance Receivables 0 0  
Customer | Power | 61-90 days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 0 0  
2023 and 2022, respectively 0 0  
2022 and 2021, respectively 0 0  
2021 and 2020, respectively 0 0  
2020 and 2019, respectively 0 0  
Prior 0 0  
Revolving Finance Receivables 0 0  
Total Finance Receivables 0 0  
Customer | Power | 91+ days past due      
Financing Receivable, Credit Quality Indicator      
2024 and 2023, respectively 0 0  
2023 and 2022, respectively 0 0  
2022 and 2021, respectively 0 0  
2021 and 2020, respectively 0 0  
2020 and 2019, respectively 0 0  
Prior 3 3  
Revolving Finance Receivables 0 0  
Total Finance Receivables 3 3  
Dealer      
Financing Receivable, Credit Quality Indicator      
Total Finance Receivables $ 1,780   $ 1,793
Dealer | Latin America | 91+ days past due      
Financing Receivable, Credit Quality Indicator      
Prior   $ 44  
v3.24.2.u1
Cat Financial Financing Activities - Investment In Finance Receivables On Non-Accrual Status (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Financing Receivable, Nonaccrual    
Period after which collection of future income is considered not probable 120 days  
Customer    
Financing Receivable, Nonaccrual    
Non-accrual With an Allowance $ 176 $ 152
91+ Still Accruing 29 44
North America | Customer    
Financing Receivable, Nonaccrual    
Non-accrual With an Allowance 71 52
91+ Still Accruing 19 20
EAME | Customer    
Financing Receivable, Nonaccrual    
Non-accrual With an Allowance 56 34
91+ Still Accruing 7 18
Asia/ Pacific | Customer    
Financing Receivable, Nonaccrual    
Non-accrual With an Allowance 5 8
91+ Still Accruing 3 5
Mining | Customer    
Financing Receivable, Nonaccrual    
Non-accrual With an Allowance 13 2
91+ Still Accruing 0 0
Latin America | Dealer    
Financing Receivable, Nonaccrual    
Non-accrual With an Allowance 0 44
Latin America | Customer    
Financing Receivable, Nonaccrual    
Non-accrual With an Allowance 28 48
91+ Still Accruing 0 1
Power | Customer    
Financing Receivable, Nonaccrual    
Non-accrual With an Allowance 3 8
91+ Still Accruing $ 0 $ 0
v3.24.2.u1
Cat Financial Financing Activities - Modifications (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Finance receivable, modifications        
Financing receivables in relation to total financing receivables, percentage 0.02% 0.10% 0.03% 0.14%
Weighted average term increase from modification 13 months 18 months 11 months 21 months
Weighted average term increase due to payment deferrals or interest only payment periods 6 months 7 months 8 months 8 months
Payment Deferral        
Finance receivable, modifications        
Financing receivable, borrowers not considered to be experiencing financial difficulty, maximum period     4 months  
Extended Maturity        
Finance receivable, modifications        
Financing receivable, borrowers not considered to be experiencing financial difficulty, maximum period     6 months  
Dealer        
Finance receivable, modifications        
Financing receivables, modified $ 0 $ 0 $ 0 $ 0
Customer        
Finance receivable, modifications        
Financing receivables, modified $ 3 $ 22 $ 6 $ 30
v3.24.2.u1
Fair Value Disclosures - Assets And Liabilities Measured On A Recurring Basis (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities $ 3,651 $ 3,797
Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 3,651 3,797
Equity securities 454 438
Total Assets 4,324 4,451
Total liabilities 228 151
Recurring basis | Foreign exchange contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 214 207
Recurring basis | Total return swap contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 3  
Recurring basis | Interest rate contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities (228) (151)
Recurring basis | Commodity contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 2 9
U.S. treasury bonds    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 10 10
U.S. treasury bonds | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 10 10
Other U.S. and non-U.S. government bonds    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 65 60
Other U.S. and non-U.S. government bonds | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 65 60
Corporate bonds and other debt securities    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 2,825 2,995
Corporate bonds and other debt securities | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 2,825 2,995
Asset-backed securities    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 203 192
Asset-backed securities | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 203 192
U.S. governmental agency | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 419 410
Residential    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 1 2
Residential | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 1 2
Commercial    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 128 128
Commercial | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 128 128
Large capitalization value | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Equity securities 249 223
Smaller company growth | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Equity securities 37 35
REIT | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Equity securities 168 180
Level 1 | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 10 10
Equity securities 286 258
Total Assets 296 268
Total liabilities 0 0
Level 1 | Recurring basis | Foreign exchange contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Level 1 | Recurring basis | Total return swap contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0  
Level 1 | Recurring basis | Interest rate contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Level 1 | Recurring basis | Commodity contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Level 1 | U.S. treasury bonds | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 10 10
Level 1 | Other U.S. and non-U.S. government bonds | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Level 1 | Corporate bonds and other debt securities | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Level 1 | Asset-backed securities | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Level 1 | U.S. governmental agency | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Level 1 | Residential | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Level 1 | Commercial | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Level 1 | Large capitalization value | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Equity securities 249 223
Level 1 | Smaller company growth | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Equity securities 37 35
Level 1 | REIT | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Equity securities 0 0
Level 2 | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 3,641 3,787
Equity securities 0 0
Total Assets 3,860 4,003
Total liabilities 228 151
Level 2 | Recurring basis | Foreign exchange contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 214 207
Level 2 | Recurring basis | Total return swap contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 3  
Level 2 | Recurring basis | Interest rate contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities (228) (151)
Level 2 | Recurring basis | Commodity contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 2 9
Level 2 | U.S. treasury bonds | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Level 2 | Other U.S. and non-U.S. government bonds | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 65 60
Level 2 | Corporate bonds and other debt securities | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 2,825 2,995
Level 2 | Asset-backed securities | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 203 192
Level 2 | U.S. governmental agency | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 419 410
Level 2 | Residential | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 1 2
Level 2 | Commercial | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 128 128
Level 2 | Large capitalization value | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Equity securities 0 0
Level 2 | Smaller company growth | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Equity securities 0 0
Level 2 | REIT | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Equity securities 0 0
Level 3 | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Equity securities 0 0
Total Assets 0 0
Total liabilities 0 0
Level 3 | Recurring basis | Foreign exchange contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Level 3 | Recurring basis | Total return swap contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0  
Level 3 | Recurring basis | Interest rate contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Level 3 | Recurring basis | Commodity contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Level 3 | Nonrecurring basis | Financial Products    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Loans carried at fair value 51 55
Level 3 | U.S. treasury bonds | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Level 3 | Other U.S. and non-U.S. government bonds | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Level 3 | Corporate bonds and other debt securities | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Level 3 | Asset-backed securities | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Level 3 | U.S. governmental agency | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Level 3 | Residential | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Level 3 | Commercial | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Level 3 | Large capitalization value | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Equity securities 0 0
Level 3 | Smaller company growth | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Equity securities 0 0
Level 3 | REIT | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Equity securities 0 0
Measured at NAV | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Equity securities 168 180
Total Assets 168 180
Total liabilities 0 0
Measured at NAV | Recurring basis | Foreign exchange contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Measured at NAV | Recurring basis | Total return swap contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0  
Measured at NAV | Recurring basis | Interest rate contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Measured at NAV | Recurring basis | Commodity contracts    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Derivate financial instruments - assets/liabilities 0 0
Measured at NAV | U.S. treasury bonds | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Measured at NAV | Other U.S. and non-U.S. government bonds | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Measured at NAV | Corporate bonds and other debt securities | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Measured at NAV | Asset-backed securities | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Measured at NAV | U.S. governmental agency | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Measured at NAV | Residential | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Measured at NAV | Commercial | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Debt securities 0 0
Measured at NAV | Large capitalization value | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Equity securities 0 0
Measured at NAV | Smaller company growth | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Equity securities 0 0
Measured at NAV | REIT | Recurring basis    
Assets and liabilities measured on a recurring and non-recurring basis at fair value    
Equity securities $ 168 $ 180
v3.24.2.u1
Fair Value Disclosures - Fair Value Of Financial Instruments (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Carrying Amount    
Assets    
Finance receivables-net (excluding finance leases) $ 15,740 $ 15,386
Wholesale inventory receivables-net (excluding finance leases) 1,422 1,415
Carrying Amount | Machinery, Energy & Transportation    
Liabilities    
Long-term debt (including amounts due within one year) 8,582 9,623
Carrying Amount | Financial Products    
Liabilities    
Long-term debt (including amounts due within one year) 23,431 23,612
Carrying amount of assets excluded from measurement at fair value    
Assets    
Excluded items: Finance leases and failed sale leasebacks, Carrying Value 6,720 6,953
Level 3 | Fair Value    
Assets    
Finance receivables-net (excluding finance leases) 15,222 15,017
Wholesale inventory receivables-net (excluding finance leases) 1,379 1,368
Level 2 | Fair Value | Machinery, Energy & Transportation    
Liabilities    
Long-term debt (including amounts due within one year) 7,898 9,550
Level 2 | Fair Value | Financial Products    
Liabilities    
Long-term debt (including amounts due within one year) $ 23,126 $ 23,299
v3.24.2.u1
Other Income (Expense) (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Other Income and Expenses [Abstract]        
Investment and interest income $ 118 $ 96 $ 254 $ 189
Foreign exchange gains (losses) 17 40 59 (32)
License fee income 37 43 71 74
Net periodic pension and OPEB income (cost), excluding service cost 2 (12) 5 (25)
Gains (losses) on securities (5) (10) 12 (21)
Miscellaneous income (loss) (14) (30) (90) (26)
Total $ 155 $ 127 $ 311 $ 159
v3.24.2.u1
Restructuring Income/Costs - Restructuring And Related Costs (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Restructuring Charges [Abstract]        
Gain (loss) on divestiture       $ (586)
(Gains) losses reclassified to earnings       494
Restructuring and Related Cost        
Restructuring costs $ 258 $ 31 $ 252 642
Gain (loss) on divestiture       (586)
(Gains) losses reclassified to earnings       494
Employee separations        
Restructuring and Related Cost        
Restructuring costs 19 10 32 22
Divestitures        
Restructuring and Related Cost        
Restructuring costs 228 0 164 586
Contract terminations        
Restructuring and Related Cost        
Restructuring costs 1 0 1 0
Long-lived asset impairments        
Restructuring and Related Cost        
Restructuring costs 0 2 7 2
Other        
Restructuring and Related Cost        
Restructuring costs $ 10 $ 19 $ 48 $ 32
v3.24.2.u1
Supplier Finance Programs (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Supplier Finance Program [Line Items]    
Supplier finance program, obligation outstanding $ 819 $ 803
Minimum    
Supplier Finance Program [Line Items]    
Supplier finance program, payment terms 60 days  
Maximum    
Supplier Finance Program [Line Items]    
Supplier finance program, payment terms 90 days