|                                          |
|------------------------------------------|
|                                          |  |  |
| Delaware                                 | 37-1105865 |
| (State of incorporation)                 | (IRS Employer I.D. No.) |
|                                     |   |
| 2120 West End Ave.Nashville, Tennessee   | 37203-0001 |
| (Address of principal executive offices) | (Zip Code) |

----

----

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | Three Months EndedSeptember 30, |   | Nine Months EndedSeptember 30, |
|                                                             | 2016 |  | 2015 |   | 2016 |   | 2015 |
|                                                             |   |   |   |   |   |   |   |
| Revenues:                                                        |   |   |   |   |   |   |   |
| Retail finance                                                   | $ | 307 |  |   | $ | 307 |  |   | $ | 914 |  |   | $ | 940 |  |
| Operating lease                                                  | 257 |  |   | 246 |  |   | 756 |  |   | 758 |  |
| Wholesale finance                                                | 62 |  |   | 69 |  |   | 202 |  |   | 217 |  |
| Other, net                                                       | 25 |  |   | 31 |  |   | 81 |  |   | 110 |  |
| Total revenues                                                   | 651 |  |   | 653 |  |   | 1,953 |  |   | 2,025 |  |
|                                                             |   |   |   |   |   |   |   |
| Expenses:                                                        |   |  |   |   |  |   |   |  |   |   |  |
| Interest                                                         | 151 |  |   | 144 |  |   | 458 |  |   | 445 |  |
| Depreciation on equipment leased to others                       | 213 |  |   | 207 |  |   | 627 |  |   | 629 |  |
| General, operating and administrative                            | 97 |  |   | 104 |  |   | 292 |  |   | 315 |  |
| Provision for credit losses                                      | 29 |  |   | 22 |  |   | 96 |  |   | 89 |  |
| Other                                                            | 12 |  |   | 12 |  |   | 31 |  |   | 32 |  |
| Total expenses                                                   | 502 |  |   | 489 |  |   | 1,504 |  |   | 1,510 |  |
|                                                             |   |   |   |   |   |   |   |
| Other income (expense)                                           | (3 | ) |   | (11 | ) |   | (10 | ) |   | (25 | ) |
|                                                             |   |   |   |   |   |   |   |
| Profit before income taxes                                       | 146 |  |   | 153 |  |   | 439 |  |   | 490 |  |
|                                                             |   |   |   |   |   |   |   |
| Provision for income taxes                                       | 48 |  |   | 44 |  |   | 136 |  |   | 142 |  |
|                                                             |   |   |   |   |   |   |   |
| Profit of consolidated companies                                 | 98 |  |   | 109 |  |   | 303 |  |   | 348 |  |
|                                                             |   |   |   |   |   |   |   |
| Less:  Profit attributable to noncontrolling interests | 1 |  |   | — |  |   | 4 |  |   | 2 |  |
|                                                             |   |   |   |   |   |   |   |
| Profit 1                                                         | $ | 97 |  |   | $ | 109 |  |   | $ | 299 |  |   | $ | 346 |  |
|                                                             |   |   |   |   |   |   |   |

----

|                                                                                                                                                            |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                       | Three Months EndedSeptember 30, |   | Nine Months EndedSeptember 30, |
|                                                                                                                                                       | 2016 |  | 2015 |   | 2016 |   | 2015 |
|                                                                                                                                                       |   |   |   |   |   |   |   |
| Profit of consolidated companies                                                                                                                           | $ | 98 |  |   | $ | 109 |  |   | $ | 303 |  |   | $ | 348 |  |
|                                                                                                                                                       |   |   |   |   |   |   |   |
| Other comprehensive income (loss), net of tax:                                                                                                             |   |   |   |   |   |   |   |
| Foreign currency translation, net of tax (expense)/benefit of: 2016 $4 three months, $21 nine months; 2015 $(2) three months, $(68) nine months            | (5 | ) |   | (206 | ) |   | 100 |  |   | (472 | ) |
| Derivative financial instruments:                                                                                                                          |   |   |   |   |   |   |   |
| Gains (losses) deferred, net of tax (expense)/benefit of:  2016 $5 three months, $8 nine months; 2015 $0 three months, $(1) nine months                    | (10 | ) |   | (1 | ) |   | (15 | ) |   | — |  |
| (Gains) losses reclassified to earnings, net of tax expense/(benefit) of: 2016 $(3) three months, $(6) nine months; 2015 $0 three months, $(1) nine months | 7 |  |   | 1 |  |   | 13 |  |   | 3 |  |
| Available-for-sale securities:                                                                                                                             |   |   |   |   |   |   |   |
| Gains (losses) deferred, net of tax (expense)/benefit of:  2016 $(1) three months, $(1) nine months; 2015 $0 three months, $0 nine months                  | 1 |  |   | — |  |   | (1 | ) |   | — |  |
| (Gains) losses reclassified to earnings, net of tax expense/(benefit) of: 2016 $0 three months, $0 nine months; 2015 $0 three months, $0 nine months       | — |  |   | — |  |   | — |  |   | — |  |
| Total Other comprehensive income (loss), net of tax                                                                                                        | (7 | ) |   | (206 | ) |   | 97 |  |   | (469 | ) |
|                                                                                                                                                       |  |  |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                                                                                | 91 |  |   | (97 | ) |   | 400 |  |   | (121 | ) |
|                                                                                                                                                       |   |   |   |   |   |   |   |
| Less:  Comprehensive income (loss) attributable to the noncontrolling interests                                                                            | 1 |  |   | (6 | ) |   | 2 |  |   | (3 | ) |
|                                                                                                                                                       |   |   |   |   |   |   |   |
| Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation                                                                     | $ | 90 |  |   | $ | (91 | ) |   | $ | 398 |  |   | $ | (118 | ) |
|                                                                                                                                                       |   |   |   |   |   |   |   |

----

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |
|                                                   | September 30, 2016 |   | December 31, 2015 |
| Assets:                                                |   |   |   |
| Cash and cash equivalents                              | $ | 1,051 |  |   | $ | 1,016 |  |
| Finance receivables, net                               | 26,656 |  |   | 27,388 |  |
| Notes receivable from Caterpillar                      | 1,536 |  |   | 490 |  |
| Equipment on operating leases,                         |   |  |   |   |  |
| less accumulated depreciation                          | 3,777 |  |   | 3,564 |  |
| Deferred and refundable income taxes                   | 147 |  |   | 240 |  |
| Other assets                                           | 1,174 |  |   | 1,169 |  |
| Total assets                                           | $ | 34,341 |  |   | $ | 33,867 |  |
|                                                   |   |   |   |
| Liabilities and stockholder’s equity:            |   |  |   |   |  |
| Payable to dealers and others                          | $ | 141 |  |   | $ | 137 |  |
| Payable to Caterpillar - other                         | 46 |  |   | 62 |  |
| Accrued expenses                                       | 191 |  |   | 200 |  |
| Income taxes payable                                   | 32 |  |   | 47 |  |
| Payable to Caterpillar - borrowings                    | 1,817 |  |   | 1,096 |  |
| Short-term borrowings                                  | 6,702 |  |   | 6,958 |  |
| Current maturities of long-term debt                   | 5,970 |  |   | 5,360 |  |
| Long-term debt                                         | 15,190 |  |   | 16,209 |  |
| Deferred income taxes and other liabilities            | 877 |  |   | 823 |  |
| Total liabilities                                      | 30,966 |  |   | 30,892 |  |
|                                                   |   |   |   |
| Commitments and contingent liabilities (Notes 7 and 9) |  |  |   |  |  |
|                                                   |   |   |   |
| Common stock - $1 par value                            |   |   |   |  |
| Authorized:  2,000 shares; Issued and        |   |  |   |   |  |
| outstanding: one share (at paid-in amount)             | 745 |  |   | 745 |  |
| Additional paid-in capital                             | 2 |  |   | 2 |  |
| Retained earnings                                      | 3,298 |  |   | 2,999 |  |
| Accumulated other comprehensive income/(loss)          | (798 | ) |   | (897 | ) |
| Noncontrolling interests                               | 128 |  |   | 126 |  |
| Total stockholder’s equity                       | 3,375 |  |   | 2,975 |  |
|                                                   |   |   |   |
| Total liabilities and stockholder’s equity       | $ | 34,341 |  |   | $ | 33,867 |  |
|                                                   |   |   |   |

----

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Nine Months EndedSeptember 30, 2015          | Commonstock |   | Additionalpaid-incapital |   | Retainedearnings |   | Accumulatedothercomprehensiveincome/(loss) |   | Noncontrollinginterests |   | Total |
| Balance at December 31, 2014                 | $ | 745 |  |   | $ | 2 |  |   | $ | 3,139 |  |   | $ | (364 | ) |   | $ | 132 |  |   | $ | 3,654 |  |
| Profit of consolidated companies             |   |  |   |   |  |   | 346 |  |   |   |  |   | 2 |  |   | 348 |  |
| Dividend paid to Caterpillar                 |   |  |   |   |  |   | (250 | ) |   |   |  |   |   |  |   | (250 | ) |
| Foreign currency translation, net of tax     |   |  |   |   |  |   |   |  |   | (467 | ) |   | (5 | ) |   | (472 | ) |
| Derivative financial instruments, net of tax |   |  |   |   |  |   |   |  |   | 3 |  |   |   |  |   | 3 |  |
| Balance at September 30, 2015                | $ | 745 |  |   | $ | 2 |  |   | $ | 3,235 |  |   | $ | (828 | ) |   | $ | 129 |  |   | $ | 3,283 |  |
|                                         |   |   |   |   |   |   |   |   |   |   |   |
| Nine Months EndedSeptember 30, 2016          |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Balance at December 31, 2015                 | $ | 745 |  |   | $ | 2 |  |   | $ | 2,999 |  |   | $ | (897 | ) |   | $ | 126 |  |   | $ | 2,975 |  |
| Profit of consolidated companies             |   |  |   |   |  |   | 299 |  |   |   |  |   | 4 |  |   | 303 |  |
| Dividend paid to Caterpillar                 |   |  |   |   |  |   | — |  |   |   |  |   |   |  |   | — |  |
| Foreign currency translation, net of tax     |   |  |   |   |  |   |   |  |   | 102 |  |   | (2 | ) |   | 100 |  |
| Derivative financial instruments, net of tax |   |  |   |   |  |   |   |  |   | (2 | ) |   |   |  |   | (2 | ) |
| Available-for-sale securities, net of tax    |   |   |   |   |   |   | (1 | ) |   |   |   | (1 | ) |
| Balance at September 30, 2016                | $ | 745 |  |   | $ | 2 |  |   | $ | 3,298 |  |   | $ | (798 | ) |   | $ | 128 |  |   | $ | 3,375 |  |
|                                         |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                                                                                                                                                                                                                                              |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                              |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                         | Nine Months EndedSeptember 30, |
|                                                                                                                                                                                                                                                                                                                                                                         | 2016 |   | 2015 |
| Cash flows from operating activities:                                                                                                                                                                                                                                                                                                                                        |   |   |   |
| Profit of consolidated companies                                                                                                                                                                                                                                                                                                                                             | $ | 303 |  |   | $ | 348 |  |
| Adjustments for non-cash items:                                                                                                                                                                                                                                                                                                                                              |   |  |   |   |  |
| Depreciation and amortization                                                                                                                                                                                                                                                                                                                                                | 635 |  |   | 639 |  |
| Amortization of receivables purchase discount                                                                                                                                                                                                                                                                                                                                | (158 | ) |   | (169 | ) |
| Provision for credit losses                                                                                                                                                                                                                                                                                                                                                  | 96 |  |   | 89 |  |
| Other, net                                                                                                                                                                                                                                                                                                                                                                   | 81 |  |   | 13 |  |
| Changes in assets and liabilities:                                                                                                                                                                                                                                                                                                                                           |   |  |   |   |  |
| Receivables from others                                                                                                                                                                                                                                                                                                                                                      | 10 |  |   | (41 | ) |
| Other receivables/payables with Caterpillar                                                                                                                                                                                                                                                                                                                                  | (2 | ) |   | (16 | ) |
| Payable to dealers and others                                                                                                                                                                                                                                                                                                                                                | 30 |  |   | 55 |  |
| Accrued interest payable                                                                                                                                                                                                                                                                                                                                                     | (17 | ) |   | (5 | ) |
| Accrued expenses and other liabilities, net                                                                                                                                                                                                                                                                                                                                  | 22 |  |   | (30 | ) |
| Income taxes payable                                                                                                                                                                                                                                                                                                                                                         | 100 |  |   | 72 |  |
| Proceeds from interest rate contracts                                                                                                                                                                                                                                                                                                                                        | 36 |  |   | 2 |  |
| Debt exchange premium                                                                                                                                                                                                                                                                                                                                                        | (33 | ) |   | — |  |
| Net cash provided by operating activities                                                                                                                                                                                                                                                                                                                                    | 1,103 |  |   | 957 |  |
|                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |
| Cash flows from investing activities:                                                                                                                                                                                                                                                                                                                                        |   |  |   |   |  |
| Capital expenditures for equipment on operating leases and other capital expenditures                                                                                                                                                                                                                                                                                        | (1,265 | ) |   | (993 | ) |
| Proceeds from disposals of equipment                                                                                                                                                                                                                                                                                                                                         | 497 |  |   | 418 |  |
| Additions to finance receivables                                                                                                                                                                                                                                                                                                                                             | (8,888 | ) |   | (9,434 | ) |
| Collections of finance receivables                                                                                                                                                                                                                                                                                                                                           | 9,307 |  |   | 9,000 |  |
| Net changes in Caterpillar purchased receivables                                                                                                                                                                                                                                                                                                                             | 580 |  |   | 758 |  |
| Proceeds from sales of receivables                                                                                                                                                                                                                                                                                                                                           | 55 |  |   | 101 |  |
| Net change in variable lending to Caterpillar                                                                                                                                                                                                                                                                                                                                | (1,001 | ) |   | — |  |
| Additions to other notes receivable with Caterpillar                                                                                                                                                                                                                                                                                                                         | (91 | ) |   | (100 | ) |
| Collections on other notes receivable with Caterpillar                                                                                                                                                                                                                                                                                                                       | 46 |  |   | 46 |  |
| Restricted cash and cash equivalents activity, net                                                                                                                                                                                                                                                                                                                           | 7 |  |   | 1 |  |
| Settlements of derivatives                                                                                                                                                                                                                                                                                                                                                   | (23 | ) |   | (43 | ) |
| Net cash provided by (used for) investing activities                                                                                                                                                                                                                                                                                                                         | (776 | ) |   | (246 | ) |
|                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |
| Cash flows from financing activities:                                                                                                                                                                                                                                                                                                                                        |   |  |   |   |  |
| Net change in variable lending from Caterpillar                                                                                                                                                                                                                                                                                                                              | 466 |  |   | — |  |
| Proceeds from borrowings with Caterpillar                                                                                                                                                                                                                                                                                                                                    | 253 |  |   | — |  |
| Payments on borrowings with Caterpillar                                                                                                                                                                                                                                                                                                                                      | (3 | ) |   | — |  |
| Proceeds from debt issued (original maturities greater than three months)                                                                                                                                                                                                                                                                                                    | 4,424 |  |   | 4,079 |  |
| Payments on debt issued (original maturities greater than three months)                                                                                                                                                                                                                                                                                                      | (5,077 | ) |   | (6,259 | ) |
| Short-term borrowings, net (original maturities three months or less)                                                                                                                                                                                                                                                                                                        | (365 | ) |   | 1,917 |  |
| Dividend paid to Caterpillar                                                                                                                                                                                                                                                                                                                                                 | — |  |   | (250 | ) |
| Net cash provided by (used for) financing activities                                                                                                                                                                                                                                                                                                                         | (302 | ) |   | (513 | ) |
|                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents                                                                                                                                                                                                                                                                                                                 | 10 |  |   | (32 | ) |
|                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |
| Increase/(decrease) in cash and cash equivalents                                                                                                                                                                                                                                                                                                                             | 35 |  |   | 166 |  |
| Cash and cash equivalents at beginning of year                                                                                                                                                                                                                                                                                                                               | 1,016 |  |   | 857 |  |
| Cash and cash equivalents at end of period                                                                                                                                                                                                                                                                                                                                   | $ | 1,051 |  |   | $ | 1,023 |  |
|                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |
| Non-cash activity:  In September 2016, $381 million of medium-term notes with varying interest rates and maturity dates were exchanged for $366 million of 1.93% medium-term notes due in 2021 and $15 million of cash.  In addition, a debt exchange premium of $33 million was paid and is included in the operating section of the Consolidated Statements of Cash Flows. |

----

|    |                       |
|----|-----------------------|
| 1. | Basis of Presentation |

----

|    |                                               |
|----|-----------------------------------------------|
| 2. | Accumulated Other Comprehensive Income/(Loss) |

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)                                                   | Foreign currency translation |   | Derivative financial instruments |   | Available-for-sale securities |   | Total |
|                                                                    |   |   |   |   |   |   |   |
| Three Months Ended September 30, 2015                                   |   |   |   |   |   |   |   |
| Balance at June 30, 2015                                                | $ | (626 | ) |   | $ | (2 | ) |   | $ | — |  |   | $ | (628 | ) |
| Other comprehensive income/(loss) before reclassifications              | (200 | ) |   | (1 | ) |   | — |  |   | (201 | ) |
| Amounts reclassified from accumulated other comprehensive (income)/loss | — |  |   | 1 |  |   | — |  |   | 1 |  |
| Other comprehensive income/(loss)                                       | (200 | ) |   | — |  |   | — |  |   | (200 | ) |
| Balance at September 30, 2015                                           | $ | (826 | ) |   | $ | (2 | ) |   | $ | — |  |   | $ | (828 | ) |
|                                                                    |   |   |   |   |   |   |   |
| Three Months Ended September 30, 2016                                   |   |   |   |   |   |   |   |
| Balance at June 30, 2016                                                | $ | (790 | ) |   | $ | 1 |  |   | $ | (2 | ) |   | $ | (791 | ) |
| Other comprehensive income/(loss) before reclassifications              | (5 | ) |   | (10 | ) |   | 1 |  |   | (14 | ) |
| Amounts reclassified from accumulated other comprehensive (income)/loss | — |  |   | 7 |  |   | — |  |   | 7 |  |
| Other comprehensive income/(loss)                                       | (5 | ) |   | (3 | ) |   | 1 |  |   | (7 | ) |
| Balance at September 30, 2016                                           | $ | (795 | ) |   | $ | (2 | ) |   | $ | (1 | ) |   | $ | (798 | ) |
|                                                                    |   |   |   |   |   |   |   |
| Nine Months Ended September 30, 2015                                    |   |   |   |   |   |   |   |
| Balance at December 31, 2014                                            | $ | (359 | ) |   | $ | (5 | ) |   | $ | — |  |   | $ | (364 | ) |
| Other comprehensive income/(loss) before reclassifications              | (467 | ) |   | — |  |   | — |  |   | (467 | ) |
| Amounts reclassified from accumulated other comprehensive (income)/loss | — |  |   | 3 |  |   | — |  |   | 3 |  |
| Other comprehensive income/(loss)                                       | (467 | ) |   | 3 |  |   | — |  |   | (464 | ) |
| Balance at September 30, 2015                                           | $ | (826 | ) |   | $ | (2 | ) |   | $ | — |  |   | $ | (828 | ) |
|                                                                    |   |   |   |   |   |   |   |
| Nine Months Ended September 30, 2016                                    |   |   |   |   |   |   |   |
| Balance at December 31, 2015                                            | $ | (897 | ) |   | $ | — |  |   | $ | — |  |   | $ | (897 | ) |
| Other comprehensive income/(loss) before reclassifications              | 102 |  |   | (15 | ) |   | (1 | ) |   | 86 |  |
| Amounts reclassified from accumulated other comprehensive (income)/loss | — |  |   | 13 |  |   | — |  |   | 13 |  |
| Other comprehensive income/(loss)                                       | 102 |  |   | (2 | ) |   | (1 | ) |   | 99 |  |
| Balance at September 30, 2016                                           | $ | (795 | ) |   | $ | (2 | ) |   | $ | (1 | ) |   | $ | (798 | ) |
|                                                                    |   |   |   |   |   |   |   |

----

|                                                                            |
|----------------------------------------------------------------------------|
|                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)                                                      |   |   | Three Months EndedSeptember 30, |   | Nine Months EndedSeptember 30, |
|                                                                       | Classification of income (expense) |   | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Cross currency contracts                                                   | Other income (expense) |   | $ | (10 | ) |   | $ | — |  |   | $ | (16 | ) |   | $ | — |  |
| Interest rate contracts                                                    | Interest expense |   | — |  |   | (1 | ) |   | (3 | ) |   | (4 | ) |
| Reclassifications before tax                                               |   |   | (10 | ) |   | (1 | ) |   | (19 | ) |   | (4 | ) |
| Tax (provision) benefit                                                    |   |   | 3 |  |   | — |  |   | 6 |  |   | 1 |  |
| Total reclassifications from Accumulated other comprehensive income/(loss) |   | $ | (7 | ) |   | $ | (1 | ) |   | $ | (13 | ) |   | $ | (3 | ) |
|                                                                       |   |   |   |   |   |   |   |   |   |

|    |                               |
|----|-------------------------------|
| 3. | New Accounting Pronouncements |

----

|    |                     |
|----|---------------------|
| 4. | Finance Receivables |

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |
| (Millions of dollars)                                           |   | September 30, 2016 |   | December 31, 2015 |
| Finance leases and installment sale contracts – Retail    |   | $ | 13,766 |  |   | $ | 13,728 |  |
| Retail notes receivable                                         |   | 10,492 |  |   | 10,616 |  |
| Wholesale notes receivable                                      |   | 3,365 |  |   | 3,887 |  |
| Finance leases and installment sale contracts – Wholesale |   | 155 |  |   | 289 |  |
|                                                            |   | 27,778 |  |   | 28,520 |  |
| Less: Unearned income                                           |   | (776 | ) |   | (794 | ) |
| Recorded investment in finance receivables                      |   | 27,002 |  |   | 27,726 |  |
| Less: Allowance for credit losses                               |   | (346 | ) |   | (338 | ) |
| Total finance receivables, net                                  |   | $ | 26,656 |  |  | $ | 27,388 |  |
|                                                            |   |   |   |   |

----

|         |                                                           |
|---------|-----------------------------------------------------------|
| • | Customer - Finance receivables with retail customers. |

|         |                                                            |
|---------|------------------------------------------------------------|
| • | Dealer - Finance receivables with Caterpillar dealers. |

|         |                                                                                                |
|---------|------------------------------------------------------------------------------------------------|
| • | Caterpillar Purchased Receivables - Trade receivables purchased from Caterpillar entities. |

|         |                                                                                             |
|---------|---------------------------------------------------------------------------------------------|
| • | North America - Includes finance receivables originated in the United States or Canada. |

|         |                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------|
| • | Europe - Includes finance receivables originated in Europe, Africa, Middle East and the Commonwealth of Independent States. |

|         |                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------|
| • | Asia/Pacific - Includes finance receivables originated in Australia, New Zealand, China, Japan, South Korea and Southeast Asia. |

|         |                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------|
| • | Mining - Includes finance receivables related to large mining customers worldwide and project financing in various countries. |

|         |                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------|
| • | Latin America - Includes finance receivables originated in Central and South American countries. |

|         |                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Caterpillar Power Finance - Includes finance receivables related to marine vessels with Caterpillar engines worldwide and Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems worldwide. |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)                            |   |   |   |   |   |   |   |
|                                             | September 30, 2016 |
| Allowance for Credit Losses:                     | Customer |   | Dealer |   | CaterpillarPurchased Receivables |   | Total |
| Balance at beginning of year                     | $ | 327 |  |   | $ | 9 |  |   | $ | 2 |  |   | $ | 338 |  |
| Receivables written off                          | (118 | ) |   | — |  |   | — |  |   | (118 | ) |
| Recoveries on receivables previously written off | 25 |  |   | — |  |   | — |  |   | 25 |  |
| Provision for credit losses                      | 93 |  |   | 2 |  |   | — |  |   | 95 |  |
| Adjustment due to sale of receivables            | (1 | ) |   | — |  |   | — |  |   | (1 | ) |
| Foreign currency translation adjustment          | 7 |  |   | — |  |   | — |  |   | 7 |  |
| Balance at end of period                         | $ | 333 |  |   | $ | 11 |  |   | $ | 2 |  |   | $ | 346 |  |
|                                             |   |   |   |   |   |   |   |
| Individually evaluated for impairment            | $ | 85 |  |   | $ | — |  |   | $ | — |  |   | $ | 85 |  |
| Collectively evaluated for impairment            | 248 |  |   | 11 |  |   | 2 |  |   | 261 |  |
| Ending Balance                                   | $ | 333 |  |   | $ | 11 |  |   | $ | 2 |  |   | $ | 346 |  |
|                                             |   |   |   |   |   |   |   |
| Recorded Investment in Finance Receivables:      |   |  |   |   |  |   |   |  |   |   |  |
| Individually evaluated for impairment            | $ | 819 |  |   | $ | — |  |   | $ | — |  |   | $ | 819 |  |
| Collectively evaluated for impairment            | 19,155 |  |   | 4,795 |  |   | 2,233 |  |   | 26,183 |  |
| Ending Balance                                   | $ | 19,974 |  |   | $ | 4,795 |  |   | $ | 2,233 |  |   | $ | 27,002 |  |
|                                             |   |   |   |   |   |   |   |

----

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)                            |   |   |   |   |   |   |   |
|                                             | December 31, 2015 |
| Allowance for Credit Losses:                     | Customer |   | Dealer |   | CaterpillarPurchased Receivables |   | Total |
| Balance at beginning of year                     | $ | 388 |  |   | $ | 10 |  |   | $ | 3 |  |   | $ | 401 |  |
| Receivables written off                          | (196 | ) |   | — |  |   | — |  |   | (196 | ) |
| Recoveries on receivables previously written off | 41 |  |   | — |  |   | — |  |   | 41 |  |
| Provision for credit losses                      | 119 |  |   | (1 | ) |   | (1 | ) |   | 117 |  |
| Adjustment due to sale of receivables            | (2 | ) |   | — |  |   | — |  |   | (2 | ) |
| Foreign currency translation adjustment          | (23 | ) |   | — |  |   | — |  |   | (23 | ) |
| Balance at end of year                           | $ | 327 |  |   | $ | 9 |  |   | $ | 2 |  |   | $ | 338 |  |
|                                             |   |   |   |   |   |   |   |
| Individually evaluated for impairment            | $ | 65 |  |   | $ | — |  |   | $ | — |  |   | $ | 65 |  |
| Collectively evaluated for impairment            | 262 |  |   | 9 |  |   | 2 |  |   | 273 |  |
| Ending Balance                                   | $ | 327 |  |   | $ | 9 |  |   | $ | 2 |  |   | $ | 338 |  |
|                                             |   |   |   |   |   |   |   |
| Recorded Investment in Finance Receivables:      |   |  |   |   |  |   |   |  |   |   |  |
| Individually evaluated for impairment            | $ | 601 |  |   | $ | — |  |   | $ | — |  |   | $ | 601 |  |
| Collectively evaluated for impairment            | 19,431 |  |   | 5,093 |  |   | 2,601 |  |   | 27,125 |  |
| Ending Balance                                   | $ | 20,032 |  |   | $ | 5,093 |  |   | $ | 2,601 |  |   | $ | 27,726 |  |
|                                             |   |   |   |   |   |   |   |

----

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              | September 30, 2016 |
|                              | 31-60DaysPast Due |   | 61-90DaysPast Due |   | 91+DaysPast Due |   | TotalPast Due |   | Current |   | RecordedInvestment inFinance Receivables |   | 91+ Still Accruing |
| Customer                          |   |  |   |   |  |   |   |  |   |   |   |   |   |   |   |   |
| North America                     | $ | 66 |  |   | $ | 18 |  |   | $ | 72 |  |   | $ | 156 |  |   | $ | 7,983 |  |   | $ | 8,139 |  |   | $ | 10 |  |
| Europe                            | 21 |  |   | 16 |  |   | 83 |  |   | 120 |  |   | 2,424 |  |   | 2,544 |  |   | 47 |  |
| Asia/Pacific                      | 30 |  |   | 10 |  |   | 20 |  |   | 60 |  |   | 2,057 |  |   | 2,117 |  |   | 4 |  |
| Mining                            | 4 |  |   | 1 |  |   | 63 |  |   | 68 |  |   | 1,802 |  |   | 1,870 |  |   | — |  |
| Latin America                     | 57 |  |   | 39 |  |   | 222 |  |   | 318 |  |   | 1,866 |  |   | 2,184 |  |   | — |  |
| Caterpillar Power Finance         | 1 |  |   | 5 |  |   | 72 |  |   | 78 |  |   | 3,042 |  |   | 3,120 |  |   | 12 |  |
| Dealer                            |   |  |   |   |  |   |   |  |   |   |   |   |   |   |   |   |
| North America                     | — |  |   | — |  |   | — |  |   | — |  |   | 2,971 |  |   | 2,971 |  |   | — |  |
| Europe                            | — |  |   | — |  |   | — |  |   | — |  |   | 337 |  |   | 337 |  |   | — |  |
| Asia/Pacific                      | — |  |   | — |  |   | — |  |   | — |  |   | 659 |  |   | 659 |  |   | — |  |
| Mining                            | — |  |   | — |  |   | — |  |   | — |  |   | 7 |  |   | 7 |  |   | — |  |
| Latin America                     | — |  |   | — |  |   | — |  |   | — |  |   | 819 |  |   | 819 |  |   | — |  |
| Caterpillar Power Finance         | — |  |   | — |  |   | — |  |   | — |  |   | 2 |  |   | 2 |  |   | — |  |
| Caterpillar Purchased Receivables |   |  |   |   |  |   |   |  |   |   |   |   |   |   |   |   |
| North America                     | 9 |  |   | 4 |  |   | 2 |  |   | 15 |  |   | 1,292 |  |   | 1,307 |  |   | 2 |  |
| Europe                            | 1 |  |   | — |  |   | 1 |  |   | 2 |  |   | 273 |  |   | 275 |  |   | — |  |
| Asia/Pacific                      | — |  |   | — |  |   | — |  |   | — |  |   | 348 |  |   | 348 |  |   | — |  |
| Mining                            | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Latin America                     | — |  |   | — |  |   | — |  |   | — |  |   | 300 |  |   | 300 |  |   | — |  |
| Caterpillar Power Finance         | — |  |   | — |  |   | — |  |   | — |  |   | 3 |  |   | 3 |  |   | — |  |
| Total                             | $ | 189 |  |   | $ | 93 |  |   | $ | 535 |  |   | $ | 817 |  |   | $ | 26,185 |  |   | $ | 27,002 |  |   | $ | 75 |  |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              | December 31, 2015 |
|                              | 31-60DaysPast Due |   | 61-90DaysPast Due |   | 91+DaysPast Due |   | TotalPast Due |   | Current |   | RecordedInvestment inFinance Receivables |   | 91+ Still Accruing |
| Customer                          |   |  |   |   |  |   |   |  |   |   |   |   |   |   |   |   |
| North America                     | $ | 45 |  |   | $ | 12 |  |   | $ | 30 |  |   | $ | 87 |  |   | $ | 8,031 |  |   | $ | 8,118 |  |   | $ | 4 |  |
| Europe                            | 18 |  |   | 7 |  |   | 44 |  |   | 69 |  |   | 2,358 |  |   | 2,427 |  |   | 9 |  |
| Asia/Pacific                      | 22 |  |   | 12 |  |   | 21 |  |   | 55 |  |   | 2,108 |  |   | 2,163 |  |   | 6 |  |
| Mining                            | 6 |  |   | 1 |  |   | 68 |  |   | 75 |  |   | 1,793 |  |   | 1,868 |  |   | 1 |  |
| Latin America                     | 45 |  |   | 31 |  |   | 199 |  |   | 275 |  |   | 1,998 |  |   | 2,273 |  |   | — |  |
| Caterpillar Power Finance         | — |  |   | 1 |  |   | 35 |  |   | 36 |  |   | 3,147 |  |   | 3,183 |  |   | 2 |  |
| Dealer                            |   |  |   |   |  |   |   |  |   |   |   |   |   |   |   |   |
| North America                     | — |  |   | — |  |   | — |  |   | — |  |   | 3,387 |  |   | 3,387 |  |   | — |  |
| Europe                            | — |  |   | — |  |   | — |  |   | — |  |   | 330 |  |   | 330 |  |   | — |  |
| Asia/Pacific                      | — |  |   | — |  |   | — |  |   | — |  |   | 611 |  |   | 611 |  |   | — |  |
| Mining                            | — |  |   | — |  |   | — |  |   | — |  |   | 4 |  |   | 4 |  |   | — |  |
| Latin America                     | — |  |   | — |  |   | — |  |   | — |  |   | 758 |  |   | 758 |  |   | — |  |
| Caterpillar Power Finance         | — |  |   | — |  |   | — |  |   | — |  |   | 3 |  |   | 3 |  |   | — |  |
| Caterpillar Purchased Receivables |   |  |   |   |  |   |   |  |   |   |   |   |   |   |   |   |
| North America                     | 16 |  |   | 5 |  |   | 1 |  |   | 22 |  |   | 1,386 |  |   | 1,408 |  |   | 1 |  |
| Europe                            | 4 |  |   | — |  |   | 4 |  |   | 8 |  |   | 307 |  |   | 315 |  |   | 3 |  |
| Asia/Pacific                      | — |  |   | — |  |   | — |  |   | — |  |   | 407 |  |   | 407 |  |   | — |  |
| Mining                            | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Latin America                     | — |  |   | — |  |   | — |  |   | — |  |   | 454 |  |   | 454 |  |   | — |  |
| Caterpillar Power Finance         | — |  |   | 1 |  |   | — |  |   | 1 |  |   | 16 |  |   | 17 |  |   | — |  |
| Total                             | $ | 156 |  |   | $ | 70 |  |   | $ | 402 |  |   | $ | 628 |  |   | $ | 27,098 |  |   | $ | 27,726 |  |   | $ | 26 |  |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)                                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                   | As of September 30, 2016 |   | As of December 31, 2015 |
| Impaired Finance Receivables WithNo Allowance Recorded | RecordedInvestment |   | UnpaidPrincipalBalance |   | RelatedAllowance |   | RecordedInvestment |   | UnpaidPrincipalBalance |   | RelatedAllowance |
| North America                                          | $ | 21 |  |   | $ | 21 |  |   | $ | — |  |   | $ | 12 |  |   | $ | 12 |  |   | $ | — |  |
| Europe                                                 | 49 |  |   | 48 |  |   | — |  |   | 41 |  |   | 41 |  |   | — |  |
| Asia/Pacific                                           | 2 |  |   | 2 |  |   | — |  |   | 1 |  |   | 1 |  |   | — |  |
| Mining                                                 | 119 |  |   | 118 |  |   | — |  |   | 84 |  |   | 84 |  |   | — |  |
| Latin America                                          | 73 |  |   | 73 |  |   | — |  |   | 28 |  |   | 28 |  |   | — |  |
| Caterpillar Power Finance                              | 290 |  |   | 289 |  |   | — |  |   | 242 |  |   | 241 |  |   | — |  |
| Total                                                  | $ | 554 |  |   | $ | 551 |  |   | $ | — |  |   | $ | 408 |  |   | $ | 407 |  |   | $ | — |  |
| Impaired Finance Receivables WithAn Allowance Recorded |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| North America                                          | $ | 50 |  |   | $ | 48 |  |   | $ | 19 |  |   | $ | 14 |  |   | $ | 13 |  |   | $ | 4 |  |
| Europe                                                 | 9 |  |   | 9 |  |   | 5 |  |   | 11 |  |   | 10 |  |   | 5 |  |
| Asia/Pacific                                           | 33 |  |   | 33 |  |   | 5 |  |   | 34 |  |   | 34 |  |   | 4 |  |
| Mining                                                 | 38 |  |   | 38 |  |   | 6 |  |   | 11 |  |   | 11 |  |   | 3 |  |
| Latin America                                          | 91 |  |   | 103 |  |   | 33 |  |   | 53 |  |   | 53 |  |   | 21 |  |
| Caterpillar Power Finance                              | 44 |  |   | 44 |  |   | 17 |  |   | 70 |  |   | 70 |  |   | 28 |  |
| Total                                                  | $ | 265 |  |   | $ | 275 |  |   | $ | 85 |  |   | $ | 193 |  |   | $ | 191 |  |   | $ | 65 |  |
| Total Impaired Finance Receivables                     |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| North America                                          | $ | 71 |  |   | $ | 69 |  |   | $ | 19 |  |   | $ | 26 |  |   | $ | 25 |  |   | $ | 4 |  |
| Europe                                                 | 58 |  |   | 57 |  |   | 5 |  |   | 52 |  |   | 51 |  |   | 5 |  |
| Asia/Pacific                                           | 35 |  |   | 35 |  |   | 5 |  |   | 35 |  |   | 35 |  |   | 4 |  |
| Mining                                                 | 157 |  |   | 156 |  |   | 6 |  |   | 95 |  |   | 95 |  |   | 3 |  |
| Latin America                                          | 164 |  |   | 176 |  |   | 33 |  |   | 81 |  |   | 81 |  |   | 21 |  |
| Caterpillar Power Finance                              | 334 |  |   | 333 |  |   | 17 |  |   | 312 |  |   | 311 |  |   | 28 |  |
| Total                                                  | $ | 819 |  |   | $ | 826 |  |   | $ | 85 |  |   | $ | 601 |  |   | $ | 598 |  |   | $ | 65 |  |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)                                   |   |   |   |   |   |   |   |
|                                                    | Three Months EndedSeptember 30, 2016 |   | Three Months EndedSeptember 30, 2015 |
| Impaired Finance Receivables With No Allowance Recorded | AverageRecordedInvestment |   | InterestIncomeRecognized |   | AverageRecordedInvestment |   | InterestIncomeRecognized |
| North America                                           | $ | 24 |  |   | $ | — |  |   | $ | 10 |  |   | $ | 1 |  |
| Europe                                                  | 49 |  |   | 1 |  |   | 43 |  |   | — |  |
| Asia/Pacific                                            | 1 |  |   | — |  |   | 1 |  |   | — |  |
| Mining                                                  | 90 |  |   | 2 |  |   | 63 |  |   | — |  |
| Latin America                                           | 58 |  |   | — |  |   | 32 |  |   | — |  |
| Caterpillar Power Finance                               | 282 |  |   | 3 |  |   | 165 |  |   | 1 |  |
| Total                                                   | $ | 504 |  |   | $ | 6 |  |   | $ | 314 |  |   | $ | 2 |  |
| Impaired Finance Receivables With An Allowance Recorded |   |  |   |   |  |   |   |  |   |   |  |
| North America                                           | $ | 42 |  |   | $ | — |  |   | $ | 10 |  |   | $ | — |  |
| Europe                                                  | 10 |  |   | — |  |   | 15 |  |   | — |  |
| Asia/Pacific                                            | 35 |  |   | — |  |   | 63 |  |   | — |  |
| Mining                                                  | 19 |  |   | — |  |   | 9 |  |   | — |  |
| Latin America                                           | 67 |  |   | 1 |  |   | 69 |  |   | 1 |  |
| Caterpillar Power Finance                               | 43 |  |   | — |  |   | 125 |  |   | 2 |  |
| Total                                                   | $ | 216 |  |   | $ | 1 |  |   | $ | 291 |  |   | $ | 3 |  |
| Total Impaired Finance Receivables                      |   |  |   |   |  |   |   |  |   |   |  |
| North America                                           | $ | 66 |  |   | $ | — |  |   | $ | 20 |  |   | $ | 1 |  |
| Europe                                                  | 59 |  |   | 1 |  |   | 58 |  |   | — |  |
| Asia/Pacific                                            | 36 |  |   | — |  |   | 64 |  |   | — |  |
| Mining                                                  | 109 |  |   | 2 |  |   | 72 |  |   | — |  |
| Latin America                                           | 125 |  |   | 1 |  |   | 101 |  |   | 1 |  |
| Caterpillar Power Finance                               | 325 |  |   | 3 |  |   | 290 |  |   | 3 |  |
| Total                                                   | $ | 720 |  |   | $ | 7 |  |   | $ | 605 |  |   | $ | 5 |  |
|                                                    |   |   |   |   |   |   |   |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)                                   |   |   |   |   |   |   |   |
|                                                    | Nine Months EndedSeptember 30, 2016 |   | Nine Months EndedSeptember 30, 2015 |
| Impaired Finance Receivables With No Allowance Recorded | AverageRecordedInvestment |   | InterestIncomeRecognized |   | AverageRecordedInvestment |   | InterestIncomeRecognized |
| North America                                           | $ | 19 |  |   | $ | 1 |  |   | $ | 12 |  |   | $ | 1 |  |
| Europe                                                  | 45 |  |   | 1 |  |   | 43 |  |   | — |  |
| Asia/Pacific                                            | 2 |  |   | — |  |   | 2 |  |   | — |  |
| Mining                                                  | 84 |  |   | 3 |  |   | 80 |  |   | 3 |  |
| Latin America                                           | 39 |  |   | — |  |   | 32 |  |   | — |  |
| Caterpillar Power Finance                               | 269 |  |   | 8 |  |   | 157 |  |   | 3 |  |
| Total                                                   | $ | 458 |  |   | $ | 13 |  |   | $ | 326 |  |   | $ | 7 |  |
| Impaired Finance Receivables With An Allowance Recorded |   |  |   |   |  |   |   |  |   |   |  |
| North America                                           | $ | 28 |  |   | $ | — |  |   | $ | 7 |  |   | $ | — |  |
| Europe                                                  | 11 |  |   | — |  |   | 15 |  |   | 1 |  |
| Asia/Pacific                                            | 34 |  |   | 2 |  |   | 42 |  |   | 1 |  |
| Mining                                                  | 15 |  |   | — |  |   | 47 |  |   | 1 |  |
| Latin America                                           | 59 |  |   | 2 |  |   | 56 |  |   | 2 |  |
| Caterpillar Power Finance                               | 50 |  |   | 1 |  |   | 128 |  |   | 3 |  |
| Total                                                   | $ | 197 |  |   | $ | 5 |  |   | $ | 295 |  |   | $ | 8 |  |
| Total Impaired Finance Receivables                      |   |  |   |   |  |   |   |  |   |   |  |
| North America                                           | $ | 47 |  |   | $ | 1 |  |   | $ | 19 |  |   | $ | 1 |  |
| Europe                                                  | 56 |  |   | 1 |  |   | 58 |  |   | 1 |  |
| Asia/Pacific                                            | 36 |  |   | 2 |  |   | 44 |  |   | 1 |  |
| Mining                                                  | 99 |  |   | 3 |  |   | 127 |  |   | 4 |  |
| Latin America                                           | 98 |  |   | 2 |  |   | 88 |  |   | 2 |  |
| Caterpillar Power Finance                               | 319 |  |   | 9 |  |   | 285 |  |   | 6 |  |
| Total                                                   | $ | 655 |  |   | $ | 18 |  |   | $ | 621 |  |   | $ | 15 |  |
|                                                    |   |   |   |   |   |   |   |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |
| (Millions of dollars)     |   |   |   |
|                      | September 30, 2016 |   | December 31, 2015 |
| North America             | $ | 71 |  |   | $ | 31 |  |
| Europe                    | 38 |  |   | 39 |  |
| Asia/Pacific              | 16 |  |   | 15 |  |
| Mining                    | 131 |  |   | 106 |  |
| Latin America             | 299 |  |   | 217 |  |
| Caterpillar Power Finance | 69 |  |   | 77 |  |
| Total                     | $ | 624 |  |   | $ | 485 |  |
|                      |   |   |   |

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)     | Three Months EndedSeptember 30, 2016 |   | Three Months EndedSeptember 30, 2015 |
|                      | Number ofContracts |   | Pre-TDRRecorded Investment |   | Post-TDRRecorded Investment |   | Number ofContracts |   | Pre-TDRRecorded Investment |   | Post-TDRRecorded Investment |
| North America             | 2 |  |   | $ | — |  |   | $ | — |  |   | 6 |  |   | $ | — |  |   | $ | — |  |
| Europe                    | — |  |   | — |  |   | — |  |   | 4 |  |   | — |  |   | — |  |
| Asia/Pacific              | 4 |  |   | 1 |  |   | 1 |  |   | 1 |  |   | 1 |  |   | 1 |  |
| Mining                    | 1 |  |   | 33 |  |   | 30 |  |   | 2 |  |   | 15 |  |   | 14 |  |
| Latin America(1)          | 341 |  |   | 105 |  |   | 74 |  |   | 10 |  |   | 1 |  |   | 2 |  |
| Caterpillar Power Finance | 4 |  |   | 13 |  |   | 13 |  |   | 8 |  |   | 93 |  |   | 79 |  |
| Total                     | 352 |  |   | $ | 152 |  |   | $ | 118 |  |   | 31 |  |   | $ | 110 |  |   | $ | 96 |  |
|                      |   |   |   |   |   |   |   |   |   |   |   |
|                      | Nine Months EndedSeptember 30, 2016 |   | Nine Months EndedSeptember 30, 2015 |
|                      | Number ofContracts |   | Pre-TDRRecorded Investment |   | Post-TDRRecorded Investment |   | Number ofContracts |   | Pre-TDRRecorded Investment |   | Post-TDRRecorded Investment |
| North America             | 15 |  |   | $ | 16 |  |   | $ | 16 |  |   | 10 |  |   | $ | 1 |  |   | $ | 1 |  |
| Europe                    | 3 |  |   | 11 |  |   | 8 |  |   | 23 |  |   | 2 |  |   | 2 |  |
| Asia/Pacific              | 8 |  |   | 4 |  |   | 4 |  |   | 21 |  |   | 26 |  |   | 26 |  |
| Mining                    | 2 |  |   | 43 |  |   | 35 |  |   | 2 |  |   | 15 |  |   | 14 |  |
| Latin America             | 431 |  |   | 117 |  |   | 87 |  |   | 10 |  |   | 1 |  |   | 2 |  |
| Caterpillar Power Finance | 34 |  |   | 196 |  |   | 177 |  |   | 12 |  |   | 197 |  |   | 180 |  |
| Total                     | 493 |  |   | $ | 387 |  |   | $ | 327 |  |   | 78 |  |   | $ | 242 |  |   | $ | 225 |  |
|                      |   |   |   |   |   |   |   |   |   |   |   |

----

|                       |
|-----------------------|
|                       |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions) | Three Months EndedSeptember 30, 2016 |   | Three Months EndedSeptember 30, 2015 |
|                  | Number ofContracts |   | Post-TDRRecordedInvestment |   | Number ofContracts |   | Post-TDRRecordedInvestment |
| North America         | 1 |  |   | $ | — |  |   | 5 |  |   | $ | — |  |
| Europe                | 1 |  |   | — |  |   | — |  |   | — |  |
| Latin America         | 2 |  |   | — |  |   | — |  |   | — |  |
| Total                 | 4 |  |   | $ | — |  |   | 5 |  |   | $ | — |  |
|                  |   |   |   |   |   |   |   |
|                  | Nine Months EndedSeptember 30, 2016 |   | Nine Months EndedSeptember 30, 2015 |
|                  | Number ofContracts |   | Post-TDRRecordedInvestment |   | Number ofContracts |   | Post-TDRRecordedInvestment |
| North America         | 14 |  |   | $ | 3 |  |   | 10 |  |   | $ | 1 |  |
| Europe                | 14 |  |   | 1 |  |   | — |  |   | — |  |
| Asia/Pacific          | 3 |  |   | — |  |   | — |  |   | — |  |
| Latin America         | 4 |  |   | — |  |   | 1 |  |   | — |  |
| Total                 | 35 |  |   | $ | 4 |  |   | 11 |  |   | $ | 1 |  |
|                  |   |   |   |   |   |   |   |

|    |                                                      |
|----|------------------------------------------------------|
| 5. | Derivative Financial Instruments and Risk Management |

----

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)      |   |   |   |   |   |
|                       |   |   | Asset (Liability) Fair Value |
|                       | Consolidated Statements ofFinancial Position Location |   | September 30, 2016 |   | December 31, 2015 |
| Designated derivatives     |   |   |   |   |   |
| Interest rate contracts    | Other assets |   | $ | 5 |  |   | $ | 51 |  |
| Interest rate contracts    | Accrued expenses |   | (2 | ) |   | (4 | ) |
| Cross currency contracts   | Other assets |   | 4 |  |   | 1 |  |
| Cross currency contracts   | Accrued expenses |   | (15 | ) |   | — |  |
|                       |   |   | $ | (8 | ) |   | $ | 48 |  |
| Undesignated derivatives   |   |   |   |  |   |   |
| Foreign exchange contracts | Other assets |   | $ | 2 |  |   | $ | 3 |  |
| Foreign exchange contracts | Accrued expenses |   | (5 | ) |   | (6 | ) |
| Cross currency contracts   | Other assets |   | 28 |  |   | 36 |  |
|                       |   |   | $ | 25 |  |   | $ | 33 |  |
|                       |   |   |   |   |   |

----

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Fair Value Hedges       |
| (Millions of dollars)   |   |   | Three Months EndedSeptember 30, 2016 |   | Three Months EndedSeptember 30, 2015 |
|                    | Classification |   | Gains(Losses)onDerivatives |   | Gains(Losses)onBorrowings  |   | Gains(Losses)onDerivatives |   | Gains (Losses)onBorrowings |
| Interest rate contracts | Other income (expense) |   | $ | (11 | ) |   | $ | 11 |  |   | $ | 3 |  |   | $ | (3 | ) |
|                    |   |   |   |   |   |   |   |   |   |
|                    |   |   | Nine Months EndedSeptember 30, 2016 |   | Nine Months EndedSeptember 30, 2015 |
|                    | Classification |   | Gains(Losses)onDerivatives |   | Gains(Losses)onBorrowings  |   | Gains(Losses)onDerivatives |   | Gains (Losses)onBorrowings |
| Interest rate contracts | Other income (expense) |   | $ | (11 | ) |   | $ | 10 |  |   | $ | (11 | ) |   | $ | 10 |  |
|                    |   |   |   |   |   |   |   |   |   |

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |  |  |  |  |  |
| Cash Flow Hedges         |
| (Millions of dollars)    | Three Months Ended September 30, 2016 |
|                     |   | Recognized in Earnings |
|                     | Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) | Classification |   | Reclassified from AOCI to Earnings(Effective Portion) |   | Recognized in Earnings (Ineffective Portion) |
| Interest rate contracts  | $ | 2 |  | Interest expense |   | $ | — |  |   | $ | — |  |
| Cross currency contracts | (17 | ) | Other income (expense) |   | (10 | ) |   | — |  |
|                     | $ | (15 | ) |   |   | $ | (10 | ) |   | $ | — |  |
|                     |   |   |   |   |   |   |
|                     | Three Months Ended September 30, 2015 |
|                     |   | Recognized in Earnings |
|                     | Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) | Classification |   | Reclassified from AOCI to Earnings(Effective Portion) |   | Recognized in Earnings (Ineffective Portion) |
| Interest rate contracts  | $ | (1 | ) | Interest expense |   | $ | (1 | ) |   | $ | — |  |
|                     |   |   |   |   |   |   |
|                     | Nine Months Ended September 30, 2016 |
|                     |   | Recognized in Earnings |
|                     | Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) | Classification |   | Reclassified from AOCI to Earnings(Effective Portion) |   | Recognized in Earnings (Ineffective Portion) |
| Interest rate contracts  | $ | — |  | Interest expense |   | $ | (3 | ) |   | $ | — |  |
| Cross currency contracts | (23 | ) | Other income (expense) |   | (16 | ) |   | — |  |
|                     | $ | (23 | ) |   |   | $ | (19 | ) |   | $ | — |  |
|                     |   |   |   |   |   |   |
|                     | Nine Months Ended September 30, 2015 |
|                     |   | Recognized in Earnings |
|                     | Amounts of Gains (Losses) Recognized in AOCI (Effective Portion) | Classification |   | Reclassified from AOCI to Earnings(Effective Portion) |   | Recognized in Earnings (Ineffective Portion) |
| Interest rate contracts  | $ | 1 |  | Interest expense |   | $ | (4 | ) |   | $ | — |  |
|                     |   |   |   |   |   |   |

----

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)      |   |   | Three Months Ended September 30, |
|                       | Classification |   | 2016 |   | 2015 |
| Foreign exchange contracts | Other income (expense) |   | $ | (5 | ) |   | $ | (2 | ) |
| Cross currency contracts   | Other income (expense) |   | — |  |   | 8 |  |
|                       |   |   | $ | (5 | ) |   | $ | 6 |  |
|                       |   |   |   |   |   |
|                       |   |   | Nine Months Ended September 30, |
|                       | Classification |   | 2016 |   | 2015 |
| Foreign exchange contracts | Other income (expense) |   | $ | (21 | ) |   | $ | (34 | ) |
| Cross currency contracts   | Other income (expense) |   | (12 | ) |   | 16 |  |
|                       |   |   | $ | (33 | ) |   | $ | (18 | ) |
|                       |   |   |   |   |   |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |
| Offsetting of Derivative Assets and Liabilities |   |   |   |   |
| (Millions of dollars)                           |   |   |   |   |
|                                            |   | September 30, 2016 |   | December 31, 2015 |
| Derivative Assets                               |   |   |   |   |
| Gross Amount of Recognized Assets               |   | $ | 39 |  |   | $ | 91 |  |
| Gross Amounts Offset                            |   | — |  |   | — |  |
| Net Amount of Assets(1)                         |   | 39 |  |   | 91 |  |
| Gross Amounts Not Offset                        |   | (3 | ) |   | (5 | ) |
| Net Amount                                      |   | $ | 36 |  |   | $ | 86 |  |
|                                            |   |   |   |   |
| Derivative Liabilities                          |   |   |   |   |
| Gross Amount of Recognized Liabilities          |   | $ | (22 | ) |   | $ | (10 | ) |
| Gross Amounts Offset                            |   | — |  |   | — |  |
| Net Amount of Liabilities(1)                    |   | (22 | ) |   | (10 | ) |
| Gross Amounts Not Offset                        |   | 3 |  |   | 5 |  |
| Net Amount                                      |   | $ | (19 | ) |   | $ | (5 | ) |
|                                            |   |   |   |   |

----

|    |                     |
|----|---------------------|
| 6. | Segment Information |

|         |                                                                              |
|---------|------------------------------------------------------------------------------|
| • | North America - Includes our operations in the United States and Canada. |

|         |                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------|
| • | Europe -  Includes our operations in Europe, Africa, Middle East and the Commonwealth of Independent States.   |

|         |                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------|
| • | Asia/Pacific - Includes our operations in Australia, New Zealand, China, Japan, South Korea and Southeast Asia.   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Latin America and Caterpillar Power Finance - Includes our operations in Central and South American countries.  This segment also includes Caterpillar Power Finance (CPF), which finances marine vessels with Caterpillar engines worldwide and also provides financing for Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems worldwide.  |

|         |                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------|
| • | Mining - Serves large mining customers worldwide and provides project financing in various countries.  |

|         |                                                                                                                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Unallocated - This item is related to corporate requirements and strategies that are considered to be for the benefit of the entire organization.  Also included are the consolidated results of the special purpose corporation (see Note 7 for additional information) and other miscellaneous items. |

|         |                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------|
| • | Timing - Timing differences in the recognition of costs between segment reporting and consolidated external reporting. |

|         |                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------|
| • | Methodology - Methodology differences between segment reporting and consolidated external reporting are as follows: |

|         |                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------|
| ◦ | Segment assets include off-balance sheet managed assets for which we maintain servicing responsibilities. |

|         |                                                                                        |
|---------|----------------------------------------------------------------------------------------|
| ◦ | The impact of differences between the actual leverage and the segment leverage ratios. |

|         |                                                                                          |
|---------|------------------------------------------------------------------------------------------|
| ◦ | Interest expense includes realized forward points on foreign currency forward contracts. |

|         |                                                      |
|---------|------------------------------------------------------|
| ◦ | The net gain or loss from interest rate derivatives. |

|         |                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------|
| ◦ | The profit attributable to noncontrolling interests is considered a component of segment profit. |

----

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars) 2016 | External Revenues |   | Profitbeforeincometaxes |   | InterestExpense |   | Depreciationon equipmentleased toothers |   | Provisionforcreditlosses |   | Assets atSeptember 30,2016 |   | Capitalexpenditures |
| North America                   | $ | 310 |  |   | $ | 79 |  |   | $ | 70 |  |   | $ | 123 |  |   | $ | 10 |  |   | $ | 14,709 |  |   | $ | 281 |  |
| Europe                          | 68 |  |   | 21 |  |   | 8 |  |   | 21 |  |   | 1 |  |   | 3,861 |  |   | 44 |  |
| Asia/Pacific                    | 65 |  |   | 20 |  |   | 21 |  |   | 8 |  |   | 1 |  |   | 3,722 |  |   | 4 |  |
| Latin America and CPF           | 122 |  |   | 31 |  |   | 36 |  |   | 15 |  |   | 17 |  |   | 7,065 |  |   | 11 |  |
| Mining                          | 73 |  |   | 14 |  |   | 11 |  |   | 45 |  |   | (3 | ) |   | 2,715 |  |   | 19 |  |
| Total Segments                  | 638 |  |   | 165 |  |   | 146 |  |   | 212 |  |   | 26 |  |   | 32,072 |  |   | 359 |  |
| Unallocated                     | 21 |  |   | (35 | ) |   | 32 |  |   | — |  |   | — |  |   | 2,723 |  |   | (3 | ) |
| Timing                          | (8 | ) |   | (7 | ) |   | — |  |   | 1 |  |   | 3 |  |   | 46 |  |   | — |  |
| Methodology                     | — |  |   | 23 |  |   | (27 | ) |   | — |  |   | — |  |   | (217 | ) |   | — |  |
| Inter-segment Eliminations (1)  | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (283 | ) |   | — |  |
| Total                           | $ | 651 |  |   | $ | 146 |  |   | $ | 151 |  |   | $ | 213 |  |   | $ | 29 |  |   | $ | 34,341 |  |   | $ | 356 |  |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2015                            | External Revenues |   | Profitbeforeincometaxes |   | InterestExpense |   | Depreciationon equipmentleased toothers |   | Provisionforcreditlosses |   | Assets atDecember 31,2015 |   | Capitalexpenditures |
| North America                   | $ | 291 |  |   | $ | 99 |  |   | $ | 66 |  |   | $ | 102 |  |   | $ | (4 | ) |   | $ | 14,419 |  |   | $ | 292 |  |
| Europe                          | 69 |  |   | 28 |  |   | 7 |  |   | 18 |  |   | — |  |   | 3,758 |  |   | 31 |  |
| Asia/Pacific                    | 66 |  |   | 17 |  |   | 22 |  |   | 5 |  |   | 2 |  |   | 3,923 |  |   | 2 |  |
| Latin America and CPF           | 127 |  |   | 21 |  |   | 37 |  |   | 25 |  |   | 18 |  |   | 7,376 |  |   | 31 |  |
| Mining                          | 92 |  |   | 4 |  |   | 13 |  |   | 57 |  |   | 7 |  |   | 2,947 |  |   | — |  |
| Total Segments                  | 645 |  |   | 169 |  |   | 145 |  |   | 207 |  |   | 23 |  |   | 32,423 |  |   | 356 |  |
| Unallocated                     | 16 |  |   | (27 | ) |   | 17 |  |   | — |  |   | — |  |   | 1,743 |  |   | — |  |
| Timing                          | (8 | ) |   | (3 | ) |   | — |  |   | — |  |   | (1 | ) |   | 164 |  |   | 1 |  |
| Methodology                     | — |  |   | 14 |  |   | (18 | ) |   | — |  |   | — |  |   | (216 | ) |   | — |  |
| Inter-segment Eliminations (1)  | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (247 | ) |   | — |  |
| Total                           | $ | 653 |  |   | $ | 153 |  |   | $ | 144 |  |   | $ | 207 |  |   | $ | 22 |  |   | $ | 33,867 |  |   | $ | 357 |  |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars) 2016 | External Revenues |   | Profitbeforeincometaxes |   | InterestExpense |   | Depreciationon equipmentleased toothers |   | Provisionforcreditlosses |   | Assets atSeptember 30,2016 |   | Capitalexpenditures |
| North America                   | $ | 927 |  |   | $ | 255 |  |   | $ | 216 |  |   | $ | 350 |  |   | $ | 23 |  |   | $ | 14,709 |  |   | $ | 933 |  |
| Europe                          | 202 |  |   | 63 |  |   | 25 |  |   | 62 |  |   | 3 |  |   | 3,861 |  |   | 120 |  |
| Asia/Pacific                    | 190 |  |   | 56 |  |   | 62 |  |   | 21 |  |   | 6 |  |   | 3,722 |  |   | 73 |  |
| Latin America and CPF           | 367 |  |   | 76 |  |   | 118 |  |   | 47 |  |   | 59 |  |   | 7,065 |  |   | 35 |  |
| Mining                          | 232 |  |   | 35 |  |   | 35 |  |   | 145 |  |   | 3 |  |   | 2,715 |  |   | 105 |  |
| Total Segments                  | 1,918 |  |   | 485 |  |   | 456 |  |   | 625 |  |   | 94 |  |   | 32,072 |  |   | 1,266 |  |
| Unallocated                     | 60 |  |   | (99 | ) |   | 81 |  |   | — |  |   | 1 |  |   | 2,723 |  |   | — |  |
| Timing                          | (25 | ) |   | (13 | ) |   | — |  |   | 2 |  |   | 1 |  |   | 46 |  |   | (1 | ) |
| Methodology                     | — |  |   | 66 |  |   | (79 | ) |   | — |  |   | — |  |   | (217 | ) |   | — |  |
| Inter-segment Eliminations (1)  | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (283 | ) |   | — |  |
| Total                           | $ | 1,953 |  |   | $ | 439 |  |   | $ | 458 |  |   | $ | 627 |  |   | $ | 96 |  |   | $ | 34,341 |  |   | $ | 1,265 |  |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2015                            | External Revenues |   | Profitbeforeincometaxes |   | InterestExpense |   | Depreciationon equipmentleased toothers |   | Provisionforcreditlosses |   | Assets atDecember 31,2015 |   | Capitalexpenditures |
| North America                   | $ | 865 |  |   | $ | 289 |  |   | $ | 193 |  |   | $ | 303 |  |   | $ | (2 | ) |   | $ | 14,419 |  |   | $ | 746 |  |
| Europe                          | 216 |  |   | 85 |  |   | 24 |  |   | 57 |  |   | — |  |   | 3,758 |  |   | 83 |  |
| Asia/Pacific                    | 223 |  |   | 52 |  |   | 80 |  |   | 15 |  |   | 22 |  |   | 3,923 |  |   | 19 |  |
| Latin America and CPF           | 400 |  |   | 69 |  |   | 113 |  |   | 81 |  |   | 58 |  |   | 7,376 |  |   | 74 |  |
| Mining                          | 296 |  |   | 46 |  |   | 42 |  |   | 173 |  |   | 9 |  |   | 2,947 |  |   | 69 |  |
| Total Segments                  | 2,000 |  |   | 541 |  |   | 452 |  |   | 629 |  |   | 87 |  |   | 32,423 |  |   | 991 |  |
| Unallocated                     | 48 |  |   | (75 | ) |   | 48 |  |   | — |  |   | — |  |   | 1,743 |  |   | — |  |
| Timing                          | (23 | ) |   | (17 | ) |   | — |  |   | — |  |   | 2 |  |   | 164 |  |   | 2 |  |
| Methodology                     | — |  |   | 41 |  |   | (55 | ) |   | — |  |   | — |  |   | (216 | ) |   | — |  |
| Inter-segment Eliminations (1)  | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (247 | ) |   | — |  |
| Total                           | $ | 2,025 |  |   | $ | 490 |  |   | $ | 445 |  |   | $ | 629 |  |   | $ | 89 |  |   | $ | 33,867 |  |   | $ | 993 |  |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |

|    |            |
|----|------------|
| 7. | Guarantees |

----

|    |                         |
|----|-------------------------|
| 8. | Fair Value Measurements |

|    |                         |
|----|-------------------------|
| A. | Fair Value Measurements |

|         |                                                                                |
|---------|--------------------------------------------------------------------------------|
| • | 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. |

----

|    |                                      |
|----|--------------------------------------|
| B. | Fair Values of Financial Instruments |

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)                                  | September 30, 2016 |   | December 31, 2015 |   |   |   |   |
|                                                   | CarryingAmount |   | FairValue |   | CarryingAmount |   | FairValue |   | Fair ValueLevels |   | Reference |
| Cash and cash equivalents                              | $ | 1,051 |  |   | $ | 1,051 |  |   | $ | 1,016 |  |   | $ | 1,016 |  |   | 1 |   |   |
| Finance receivables, net (excluding finance leases(1)) | $ | 20,435 |  |   | $ | 20,397 |  |   | $ | 20,935 |  |   | $ | 20,925 |  |   | 3 |   | Note 4 |
| Interest rate contracts:                               |   |   |   |   |   |   |   |   |   |   |   |
| In a net receivable position                           | $ | 5 |  |   | $ | 5 |  |   | $ | 51 |  |   | $ | 51 |  |   | 2 |   | Note 5 |
| In a net payable position                              | $ | (2 | ) |   | $ | (2 | ) |   | $ | (4 | ) |   | $ | (4 | ) |   | 2 |   | Note 5 |
| Cross currency contracts:                              |   |   |   |   |   |   |   |   |   |   |   |
| In a receivable position                               | $ | 32 |  |   | $ | 32 |  |   | $ | 37 |  |   | $ | 37 |  |   | 2 |   | Note 5 |
| In a payable position                                  | $ | (15 | ) |   | $ | (15 | ) |   | $ | — |  |   | $ | — |  |   | 2 |   | Note 5 |
| Foreign currency contracts:                            |   |   |   |   |   |   |   |   |   |   |   |
| In a receivable position                               | $ | 2 |  |   | $ | 2 |  |   | $ | 3 |  |   | $ | 3 |  |   | 2 |   | Note 5 |
| In a payable position                                  | $ | (5 | ) |   | $ | (5 | ) |   | $ | (6 | ) |   | $ | (6 | ) |   | 2 |   | Note 5 |
| Restricted cash and cash equivalents(2)                | $ | 11 |  |   | $ | 11 |  |   | $ | 18 |  |   | $ | 18 |  |   | 1 |   |   |
| Investment in equity securities                        | $ | 2 |  |   | $ | 2 |  |   | $ | — |  |   | $ | — |  |   | 1 |   |   |
| Short-term borrowings                                  | $ | (6,702 | ) |   | $ | (6,702 | ) |   | $ | (6,958 | ) |   | $ | (6,958 | ) |   | 1 |   |   |
| Long-term debt                                         | $ | (21,160 | ) |   | $ | (21,669 | ) |   | $ | (21,569 | ) |   | $ | (21,904 | ) |   | 2 |   |   |
| Guarantees                                             | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | 3 |   | Note 7 |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |

----

|    |               |
|----|---------------|
| 9. | Contingencies |

|     |                    |
|-----|--------------------|
| 10. | Income Taxes  |

|     |                             |
|-----|-----------------------------|
| 11. | Employee Separation Charges |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |
| (Millions of dollars)                      |   |
| Liability balance at December 31, 2014     | $ | — |  |
| Increase in liability (separation charges) | 15 |  |
| Reduction in liability (payments)          | (5 | ) |
| Liability balance at December 31, 2015     | $ | 10 |  |
| Increase in liability (separation charges) | — |  |
| Reduction in liability (payments)          | (10 | ) |
| Liability balance at September 30, 2016    | $ | — |  |
|                                       |   |  |

----

|         |                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The slight decrease in revenues includes a $10 million unfavorable impact from returned or repossessed equipment and a $9 million unfavorable impact from lower average earning assets, offset by a $19 million favorable impact from higher average financing rates. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Profit before income taxes was $146 million for the third quarter of 2016, compared with $153 million for the third quarter of 2015. The decrease was primarily due to a $10 million unfavorable impact from returned or repossessed equipment and a $7 million increase in provision for credit losses, partially offset by a $7 million decrease in general, operating and administrative expenses. |

|         |                                                                                                                                                                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The provision for income taxes reflects an estimated annual tax rate of 31 percent in the third quarter of 2016, compared with 29 percent in the third quarter of 2015. The increase in the estimated annual tax rate is primarily due to changes in the geographic mix of profits. |

|         |                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | During the third quarter of 2016, retail new business volume was $2.69 billion, a decrease of $161 million, or 6 percent, from the third quarter of 2015. The decrease was related to lower volume, primarily in North America. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | At the end of the third quarter of 2016, past dues were 2.77 percent, compared with 2.68 percent at the end of the third quarter of 2015. Write-offs, net of recoveries, were $29 million for the third quarter of 2016, compared with $69 million for the third quarter of 2015.  The decrease in write-offs, net of recoveries, was due to the absence of large write-offs that occurred in the third quarter of 2015 in the mining and marine portfolios. |

|         |                                                                                                                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | As of September 30, 2016, the allowance for credit losses totaled $346 million, or 1.28 percent of net finance receivables, compared with $348 million, or 1.26 percent of net finance receivables at September 30, 2015. The allowance for credit losses at year-end 2015 was $338 million, or 1.22 percent of net finance receivables. |

----

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |  |
| (Millions of dollars)                                           | Three Months EndedSeptember 30, |
|                                                                 | 2016 |  | 2015 |
| Finance receivable and operating lease fees (including late charges) | $ | 19 |  |  | $ | 17 |  |
| Fees on committed credit facility extended to Caterpillar            | 10 |  |  | 10 |  |
| Interest income on Notes Receivable from Caterpillar                 | 9 |  |   | 5 |  |
| Net loss on returned or repossessed equipment                        | (16 | ) |   | (6 | ) |
| Miscellaneous other revenue, net                                     | 3 |  |  | 5 |  |
| Total Other revenue, net                                             | $ | 25 |  |  | $ | 31 |  |
|                                                                 |   |   |   |

----

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |
| (Millions of dollars)                                | Three Months EndedSeptember 30, |
|                                                 | 2016 |   | 2015 |
| Net loss from interest rate derivatives              | $ | — |  |  | $ | (2 | ) |
| Net currency exchange loss, including forward points | (3 | ) |  | (9 | ) |
| Total Other income (expense)                         | $ | (3 | ) |  | $ | (11 | ) |
|                                                 |   |   |   |

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |  |
| (Millions of dollars)                                           | Nine Months EndedSeptember 30, |
|                                                                 | 2016 |   | 2015 |
| Finance receivable and operating lease fees (including late charges) | $ | 55 |  |   | $ | 52 |  |
| Fees on committed credit facility extended to Caterpillar            | 30 |  |   | 30 |  |
| Interest income on Notes Receivable from Caterpillar                 | 23 |  |   | 16 |  |
| Net loss on returned or repossessed equipment                        | (36 | ) |   | (6 | ) |
| Miscellaneous other revenue, net                                     | 9 |  |   | 18 |  |
| Total Other revenue, net                                             | $ | 81 |  |   | $ | 110 |  |
|                                                                 |   |   |   |

----

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |
| (Millions of dollars)                                | Nine Months EndedSeptember 30, |
|                                                 | 2016 |   | 2015 |
| Net loss from interest rate derivatives              | $ | (4 | ) |   | $ | (3 | ) |
| Net currency exchange loss, including forward points | (6 | ) |   | (22 | ) |
| Total Other income (expense)                         | $ | (10 | ) |   | $ | (25 | ) |
|                                                 |   |   |   |

----

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |
| (Millions of dollars)                  | September 30, 2016 |   | December 31, 2015 |
| Retail installment sale contracts      | $ | 81 |  |   | $ | 67 |  |
| Retail notes receivable                | 80 |  |   | 113 |  |
| Operating leases                       | 65 |  |   | 81 |  |
| Retail finance leases                  | 35 |  |   | 49 |  |
| Total off-balance sheet managed assets | $ | 261 |  |   | $ | 310 |  |
|                                   |   |   |   |

----

|                                                                        |
|------------------------------------------------------------------------|
|                                                                        |  |  |  |  |  |  |  |
| (Millions of dollars)                                             | September 30, 2016 |   | December 31, 2015 |
| Medium-term notes, net of unamortized discount and debt issuance costs | $ | 20,242 |  |   | $ | 20,574 |  |
| Commercial paper, net of unamortized discount                          | 5,686 |  |   | 5,811 |  |
| Bank borrowings – long-term                                      | 918 |  |   | 995 |  |
| Bank borrowings – short-term                                     | 420 |  |   | 440 |  |
| Variable denomination floating rate demand notes                       | 596 |  |   | 707 |  |
| Notes payable to Caterpillar                                           | 1,817 |  |   | 1,096 |  |
| Total outstanding borrowings                                           | $ | 29,679 |  |   | $ | 29,623 |  |
|                                                                   |   |   |   |

|                       |
|-----------------------|
|                       |  |  |  |
| (Millions of dollars) |   |
| 2016                  | $ | 755 |  |
| 2017                  | 5,876 |  |
| 2018                  | 4,973 |  |
| 2019                  | 3,399 |  |
| 2020                  | 1,118 |  |
| Thereafter            | 4,121 |  |
| Total                 | $ | 20,242 |  |
|                  |   |  |

----

|         |                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In September 2016, we entered into a 364-day facility. The 364-day facility of $3.15 billion (of which $2.33 billion is available to us) expires in September 2017. |

|         |                                                                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In September 2016, we amended and extended the three-year facility. The three-year facility of $2.73 billion (of which $2.01 billion is available to us) now expires in September 2019. |

|         |                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In September 2016, we amended and extended the five-year facility. The five-year facility of $4.62 billion (of which $3.41 billion is available to us) now expires in September 2021. |

----

----

----

----

|            |
|------------|
|            |  |
| ExhibitNo. | Description of Exhibit |
|       |   |
| 10.1       | Credit Agreement (2016 364-Day Facility), dated as of  September 8, 2016, among the Company, Caterpillar Inc., Caterpillar International Finance Limited and Caterpillar Finance Kabushiki Kaisha, certain financial institutions named therein, Citibank, N.A., as Agent, Citibank Europe PLC, UK Branch, as Local Currency Agent, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Japan Local Currency Agent (incorporated by reference from Exhibit 99.1 to the Company’s Current Report on Form 8-K filed September 14, 2016) |
| 10.2       | Local Currency Addendum, dated as of September 8, 2016, to the 364-Day Facility (incorporated by reference from Exhibit 99.2 to the Company's Current Report on Form 8-K filed on September 14, 2016) |
| 10.3       | Japan Local Currency Addendum, dated as of September 8, 2016, to the 364-Day Facility (incorporated by reference from Exhibit 99.3 to the Company's Current Report on Form 8-K filed on September 14, 2016) |
| 10.4       | Omnibus Amendment No. 1 to Amended and Restated Credit Agreement (3-Year Facility), Amendment No. 1 to Local Currency Addendum and Amendment No. 1 to Japan Local Currency Addendum, dated as of  September 8, 2016, among the Company, Caterpillar Inc., Caterpillar International Finance Limited and Caterpillar Finance Kabushiki Kaisha, certain financial institutions named therein, Citibank, N.A., as Agent, Citibank Europe PLC, UK Branch, as Local Currency Agent, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Japan Local Currency Agent (incorporated by reference from Exhibit 99.4 to the Company’s Current Report on Form 8-K filed September 14, 2016) |
| 10.5       | Omnibus Amendment No. 1 to Amended and Restated Credit Agreement (5-Year Facility), Amendment No. 1 to Local Currency Addendum and Amendment No. 1 to Japan Local Currency Addendum, dated as of  September 8, 2016, among the Company, Caterpillar Inc., Caterpillar International Finance Limited and Caterpillar Finance Kabushiki Kaisha, certain financial institutions named therein, Citibank, N.A., as Agent, Citibank Europe PLC, UK Branch, as Local Currency Agent, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Japan Local Currency Agent (incorporated by reference from Exhibit 99.5 to the Company’s Current Report on Form 8-K filed September 14, 2016) |
| 12         | Computation of Ratio of Earnings to Fixed Charges |
| 31.1       | Certification of Kent M. Adams, President, Director and Chief Executive Officer of Caterpillar Financial Services Corporation, as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.2       | Certification of James A. Duensing, Executive Vice President and Chief Financial Officer of Caterpillar Financial Services Corporation, as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 32         | Certifications of Kent M. Adams, President, Director and Chief Executive Officer of Caterpillar Financial Services Corporation, and James A. Duensing, Executive Vice President and Chief Financial Officer of Caterpillar Financial Services Corporation, as required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 101.INS    | XBRL Instance Document |
| 101.SCH    | XBRL Taxonomy Extension Schema Document |
| 101.CAL    | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF    | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB    | XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE    | XBRL Taxonomy Extension Presentation Linkbase Document |

----

|              |
|--------------|
|              |  |  |  |
|         |   | Caterpillar Financial Services Corporation |
| (Registrant) |   |   |
| Date:        | November 2, 2016 | By:  | /s/Kent M. Adams |
|         |   | Kent M. Adams, President, Director and Chief ExecutiveOfficer |

|        |
|--------|
|        |  |  |  |
| Date:  | November 2, 2016 | By:  | /s/James A. Duensing |
|   |   | James A. Duensing, Executive Vice President and Chief Financial Officer |

|        |
|--------|
|        |  |  |  |
| Date:  | November 2, 2016 | By:  | /s/Leslie S. Zmugg |
|   |   | Leslie S. Zmugg, Secretary |

|        |
|--------|
|        |  |  |  |
| Date:  | November 2, 2016 | By:  | /s/Jeffry D. Everett |
|   |   | Jeffry D. Everett, Controller |