|                                          |
|------------------------------------------|
|                                          |  |  |
| 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 EndedJune 30, |   | Six Months EndedJune 30, |
|                                                             | 2016 |  | 2015 |   | 2016 |   | 2015 |
|                                                             |   |   |   |   |   |   |   |
| Revenues:                                                        |   |   |   |   |   |   |   |
| Retail finance                                                   | $ | 309 |  |   | $ | 313 |  |   | $ | 607 |  |   | $ | 633 |  |
| Operating lease                                                  | 254 |  |   | 256 |  |   | 499 |  |   | 512 |  |
| Wholesale finance                                                | 71 |  |   | 75 |  |   | 140 |  |   | 148 |  |
| Other, net                                                       | 25 |  |   | 39 |  |   | 56 |  |   | 79 |  |
| Total revenues                                                   | 659 |  |   | 683 |  |   | 1,302 |  |   | 1,372 |  |
|                                                             |   |   |   |   |   |   |   |
| Expenses:                                                        |   |  |   |   |  |   |   |  |   |   |  |
| Interest                                                         | 152 |  |   | 150 |  |   | 307 |  |   | 301 |  |
| Depreciation on equipment leased to others                       | 211 |  |   | 210 |  |   | 414 |  |   | 422 |  |
| General, operating and administrative                            | 97 |  |   | 108 |  |   | 195 |  |   | 211 |  |
| Provision for credit losses                                      | 38 |  |   | 49 |  |   | 67 |  |   | 67 |  |
| Other                                                            | 9 |  |   | 11 |  |   | 19 |  |   | 20 |  |
| Total expenses                                                   | 507 |  |   | 528 |  |   | 1,002 |  |   | 1,021 |  |
|                                                             |   |   |   |   |   |   |   |
| Other income (expense)                                           | (4 | ) |   | (5 | ) |   | (7 | ) |   | (14 | ) |
|                                                             |   |   |   |   |   |   |   |
| Profit before income taxes                                       | 148 |  |   | 150 |  |   | 293 |  |   | 337 |  |
|                                                             |   |   |   |   |   |   |   |
| Provision for income taxes                                       | 44 |  |   | 46 |  |   | 88 |  |   | 98 |  |
|                                                             |   |   |   |   |   |   |   |
| Profit of consolidated companies                                 | 104 |  |   | 104 |  |   | 205 |  |   | 239 |  |
|                                                             |   |   |   |   |   |   |   |
| Less:  Profit attributable to noncontrolling interests | 2 |  |   | — |  |   | 3 |  |   | 2 |  |
|                                                             |   |   |   |   |   |   |   |
| Profit 1                                                         | $ | 102 |  |   | $ | 104 |  |   | $ | 202 |  |   | $ | 237 |  |
|                                                             |   |   |   |   |   |   |   |

----

|                                                                                                                                                            |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                       | Three Months EndedJune 30, |   | Six Months EndedJune 30, |
|                                                                                                                                                       | 2016 |  | 2015 |   | 2016 |   | 2015 |
|                                                                                                                                                       |   |   |   |   |   |   |   |
| Profit of consolidated companies                                                                                                                           | $ | 104 |  |   | $ | 104 |  |   | $ | 205 |  |   | $ | 239 |  |
|                                                                                                                                                       |   |   |   |   |   |   |   |
| Other comprehensive income (loss), net of tax:                                                                                                             |   |   |   |   |   |   |   |
| Foreign currency translation, net of tax (expense)/benefit of: 2016 $(20) three months, $17 six months; 2015 $34 three months, $(66) six months            | (68 | ) |   | 136 |  |   | 105 |  |   | (266 | ) |
| Derivative financial instruments:                                                                                                                          |   |   |   |   |   |   |   |
| Gains (losses) deferred, net of tax (expense)/benefit of:  2016 $3 three months, $3 six months; 2015 $0 three months, $(1) six months                      | (4 | ) |   | — |  |   | (5 | ) |   | 1 |  |
| (Gains) losses reclassified to earnings, net of tax expense/(benefit) of: 2016 $(3) three months, $(3) six months; 2015 $(1) three months, $(1) six months | 4 |  |   | 1 |  |   | 6 |  |   | 2 |  |
| Available-for-sale securities:                                                                                                                             |   |   |   |   |   |   |   |
| Gains (losses) deferred, net of tax (expense)/benefit of:  2016 $0 three months, $0 six months; 2015 $0 three months, $0 six months                        | (2 | ) |   | — |  |   | (2 | ) |   | — |  |
| (Gains) losses reclassified to earnings, net of tax expense/(benefit) of: 2016 $0 three months, $0 six months; 2015 $0 three months, $0 six months         | — |  |   | — |  |   | — |  |   | — |  |
| Total Other comprehensive income (loss), net of tax                                                                                                        | (70 | ) |   | 137 |  |   | 104 |  |   | (263 | ) |
|                                                                                                                                                       |  |  |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                                                                                | 34 |  |   | 241 |  |   | 309 |  |   | (24 | ) |
|                                                                                                                                                       |   |   |   |   |   |   |   |
| Less:  Comprehensive income (loss) attributable to the noncontrolling interests                                                                            | (1 | ) |   | 2 |  |   | 1 |  |   | 3 |  |
|                                                                                                                                                       |   |   |   |   |   |   |   |
| Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation                                                                     | $ | 35 |  |   | $ | 239 |  |   | $ | 308 |  |   | $ | (27 | ) |
|                                                                                                                                                       |   |   |   |   |   |   |   |

----

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |
|                                                   | June 30, 2016 |   | December 31, 2015 |
| Assets:                                                |   |   |   |
| Cash and cash equivalents                              | $ | 1,075 |  |   | $ | 1,016 |  |
| Finance receivables, net                               | 27,323 |  |   | 27,388 |  |
| Notes receivable from Caterpillar                      | 1,530 |  |   | 490 |  |
| Equipment on operating leases,                         |   |  |   |   |  |
| less accumulated depreciation                          | 3,786 |  |   | 3,564 |  |
| Deferred and refundable income taxes                   | 116 |  |   | 240 |  |
| Other assets                                           | 1,225 |  |   | 1,169 |  |
| Total assets                                           | $ | 35,055 |  |   | $ | 33,867 |  |
|                                                   |   |   |   |
| Liabilities and stockholder’s equity:            |   |  |   |   |  |
| Payable to dealers and others                          | $ | 150 |  |   | $ | 137 |  |
| Payable to Caterpillar - other                         | 44 |  |   | 62 |  |
| Accrued expenses                                       | 189 |  |   | 200 |  |
| Income taxes payable                                   | 72 |  |   | 47 |  |
| Payable to Caterpillar - borrowings                    | 1,929 |  |   | 1,096 |  |
| Short-term borrowings                                  | 7,220 |  |   | 6,958 |  |
| Current maturities of long-term debt                   | 5,805 |  |   | 5,360 |  |
| Long-term debt                                         | 15,546 |  |   | 16,209 |  |
| Deferred income taxes and other liabilities            | 816 |  |   | 823 |  |
| Total liabilities                                      | 31,771 |  |   | 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                                      | 3,201 |  |   | 2,999 |  |
| Accumulated other comprehensive income/(loss)          | (791 | ) |   | (897 | ) |
| Noncontrolling interests                               | 127 |  |   | 126 |  |
| Total stockholder’s equity                       | 3,284 |  |   | 2,975 |  |
|                                                   |   |   |   |
| Total liabilities and stockholder’s equity       | $ | 35,055 |  |   | $ | 33,867 |  |
|                                                   |   |   |   |

----

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Six Months EndedJune 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             |   |  |   |   |  |   | 237 |  |   |   |  |   | 2 |  |   | 239 |  |
| Dividend paid to Caterpillar                 |   |  |   |   |  |   | (250 | ) |   |   |  |   |   |  |   | (250 | ) |
| Foreign currency translation, net of tax     |   |  |   |   |  |   |   |  |   | (267 | ) |   | 1 |  |   | (266 | ) |
| Derivative financial instruments, net of tax |   |  |   |   |  |   |   |  |   | 3 |  |   |   |  |   | 3 |  |
| Balance at June 30, 2015                     | $ | 745 |  |   | $ | 2 |  |   | $ | 3,126 |  |   | $ | (628 | ) |   | $ | 135 |  |   | $ | 3,380 |  |
|                                         |   |   |   |   |   |   |   |   |   |   |   |
| Six Months EndedJune 30, 2016                |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Balance at December 31, 2015                 | $ | 745 |  |   | $ | 2 |  |   | $ | 2,999 |  |   | $ | (897 | ) |   | $ | 126 |  |   | $ | 2,975 |  |
| Profit of consolidated companies             |   |  |   |   |  |   | 202 |  |   |   |  |   | 3 |  |   | 205 |  |
| Dividend paid to Caterpillar                 |   |  |   |   |  |   | — |  |   |   |  |   |   |  |   | — |  |
| Foreign currency translation, net of tax     |   |  |   |   |  |   |   |  |   | 107 |  |   | (2 | ) |   | 105 |  |
| Derivative financial instruments, net of tax |   |  |   |   |  |   |   |  |   | 1 |  |   |   |  |   | 1 |  |
| Available-for-sale securities, net of tax    |   |   |   |   |   |   | (2 | ) |   |   |   | (2 | ) |
| Balance at June 30, 2016                     | $ | 745 |  |   | $ | 2 |  |   | $ | 3,201 |  |   | $ | (791 | ) |   | $ | 127 |  |   | $ | 3,284 |  |
|                                         |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                       |
|---------------------------------------------------------------------------------------|
|                                                                                       |  |  |  |  |  |  |  |
|                                                                                  | Six Months EndedJune 30, |
|                                                                                  | 2016 |   | 2015 |
| Cash flows from operating activities:                                                 |   |   |   |
| Profit of consolidated companies                                                      | $ | 205 |  |   | $ | 239 |  |
| Adjustments for non-cash items:                                                       |   |  |   |   |  |
| Depreciation and amortization                                                         | 419 |  |   | 428 |  |
| Amortization of receivables purchase discount                                         | (110 | ) |   | (116 | ) |
| Provision for credit losses                                                           | 67 |  |   | 67 |  |
| Other, net                                                                            | 73 |  |   | (16 | ) |
| Changes in assets and liabilities:                                                    |   |  |   |   |  |
| Receivables from others                                                               | (1 | ) |   | (29 | ) |
| Other receivables/payables with Caterpillar                                           | (17 | ) |   | (25 | ) |
| Payable to dealers and others                                                         | 10 |  |   | 35 |  |
| Accrued interest payable                                                              | (3 | ) |   | (1 | ) |
| Accrued expenses and other liabilities, net                                           | (28 | ) |   | (35 | ) |
| Income taxes payable                                                                  | 169 |  |   | 119 |  |
| Other assets, net                                                                     | 1 |  |   | 2 |  |
| Net cash provided by operating activities                                             | 785 |  |   | 668 |  |
|                                                                                  |   |   |   |
| Cash flows from investing activities:                                                 |   |  |   |   |  |
| Capital expenditures for equipment on operating leases and other capital expenditures | (909 | ) |   | (636 | ) |
| Proceeds from disposals of equipment                                                  | 333 |  |   | 328 |  |
| Additions to finance receivables                                                      | (6,026 | ) |   | (6,171 | ) |
| Collections of finance receivables                                                    | 6,006 |  |   | 5,965 |  |
| Net changes in Caterpillar purchased receivables                                      | 396 |  |   | 295 |  |
| Proceeds from sales of receivables                                                    | 42 |  |   | 74 |  |
| Net change in variable lending to Caterpillar                                         | (1,000 | ) |   | — |  |
| Additions to other notes receivable with Caterpillar                                  | (69 | ) |   | (50 | ) |
| Collections on other notes receivable with Caterpillar                                | 29 |  |   | 33 |  |
| Restricted cash and cash equivalents activity, net                                    | 7 |  |   | (5 | ) |
| Settlements of derivatives                                                            | (29 | ) |   | (41 | ) |
| Net cash provided by (used for) investing activities                                  | (1,220 | ) |   | (208 | ) |
|                                                                                  |   |   |   |
| Cash flows from financing activities:                                                 |   |  |   |   |  |
| Net change in variable lending from Caterpillar                                       | 579 |  |   | — |  |
| Proceeds from borrowings with Caterpillar                                             | 253 |  |   | — |  |
| Payments on borrowings with Caterpillar                                               | (1 | ) |   | — |  |
| Proceeds from debt issued (original maturities greater than three months)             | 2,840 |  |   | 3,688 |  |
| Payments on debt issued (original maturities greater than three months)               | (3,324 | ) |   | (5,580 | ) |
| Short-term borrowings, net (original maturities three months or less)                 | 136 |  |   | 1,966 |  |
| Dividend paid to Caterpillar                                                          | — |  |   | (250 | ) |
| Net cash provided by (used for) financing activities                                  | 483 |  |   | (176 | ) |
|                                                                                  |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents                          | 11 |  |   | (12 | ) |
|                                                                                  |   |   |   |
| Increase/(decrease) in cash and cash equivalents                                      | 59 |  |   | 272 |  |
| Cash and cash equivalents at beginning of year                                        | 1,016 |  |   | 857 |  |
| Cash and cash equivalents at end of period                                            | $ | 1,075 |  |   | $ | 1,129 |  |
|                                                                                  |   |   |   |

----

|    |                       |
|----|-----------------------|
| 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 June 30, 2015                                        |   |   |   |   |   |   |   |
| Balance at March 31, 2015                                               | $ | (760 | ) |   | $ | (3 | ) |   | $ | — |  |   | $ | (763 | ) |
| Other comprehensive income/(loss) before reclassifications              | 134 |  |   | — |  |   | — |  |   | 134 |  |
| Amounts reclassified from accumulated other comprehensive (income)/loss | — |  |   | 1 |  |   | — |  |   | 1 |  |
| Other comprehensive income/(loss)                                       | 134 |  |   | 1 |  |   | — |  |   | 135 |  |
| Balance at June 30, 2015                                                | $ | (626 | ) |   | $ | (2 | ) |   | $ | — |  |   | $ | (628 | ) |
|                                                                    |   |   |   |   |   |   |   |
| Three Months Ended June 30, 2016                                        |   |   |   |   |   |   |   |
| Balance at March 31, 2016                                               | $ | (725 | ) |   | $ | 1 |  |   | $ | — |  |   | $ | (724 | ) |
| Other comprehensive income/(loss) before reclassifications              | (65 | ) |   | (4 | ) |   | (2 | ) |   | (71 | ) |
| Amounts reclassified from accumulated other comprehensive (income)/loss | — |  |   | 4 |  |   | — |  |   | 4 |  |
| Other comprehensive income/(loss)                                       | (65 | ) |   | — |  |   | (2 | ) |   | (67 | ) |
| Balance at June 30, 2016                                                | $ | (790 | ) |   | $ | 1 |  |   | $ | (2 | ) |   | $ | (791 | ) |
|                                                                    |   |   |   |   |   |   |   |
| Six Months Ended June 30, 2015                                          |   |   |   |   |   |   |   |
| Balance at December 31, 2014                                            | $ | (359 | ) |   | $ | (5 | ) |   | $ | — |  |   | $ | (364 | ) |
| Other comprehensive income/(loss) before reclassifications              | (267 | ) |   | 1 |  |   | — |  |   | (266 | ) |
| Amounts reclassified from accumulated other comprehensive (income)/loss | — |  |   | 2 |  |   | — |  |   | 2 |  |
| Other comprehensive income/(loss)                                       | (267 | ) |   | 3 |  |   | — |  |   | (264 | ) |
| Balance at June 30, 2015                                                | $ | (626 | ) |   | $ | (2 | ) |   | $ | — |  |   | $ | (628 | ) |
|                                                                    |   |   |   |   |   |   |   |
| Six Months Ended June 30, 2016                                          |   |   |   |   |   |   |   |
| Balance at December 31, 2015                                            | $ | (897 | ) |   | $ | — |  |   | $ | — |  |   | $ | (897 | ) |
| Other comprehensive income/(loss) before reclassifications              | 107 |  |   | (5 | ) |   | (2 | ) |   | 100 |  |
| Amounts reclassified from accumulated other comprehensive (income)/loss | — |  |   | 6 |  |   | — |  |   | 6 |  |
| Other comprehensive income/(loss)                                       | 107 |  |   | 1 |  |   | (2 | ) |   | 106 |  |
| Balance at June 30, 2016                                                | $ | (790 | ) |   | $ | 1 |  |   | $ | (2 | ) |   | $ | (791 | ) |
|                                                                    |   |   |   |   |   |   |   |

----

|                                                                            |
|----------------------------------------------------------------------------|
|                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)                                                      |   |   | Three Months EndedJune 30, |   | Six Months EndedJune 30, |
|                                                                       | Classification of income (expense) |   | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Cross currency contracts                                                   | Other income (expense) |   | $ | (6 | ) |   | $ | — |  |   | $ | (6 | ) |   | $ | — |  |
| Interest rate contracts                                                    | Interest expense |   | (1 | ) |   | (2 | ) |   | (3 | ) |   | (3 | ) |
| Reclassifications before tax                                               |   |   | (7 | ) |   | (2 | ) |   | (9 | ) |   | (3 | ) |
| Tax (provision) benefit                                                    |   |   | 3 |  |   | 1 |  |   | 3 |  |   | 1 |  |
| Total reclassifications from Accumulated other comprehensive income/(loss) |   | $ | (4 | ) |   | $ | (1 | ) |   | $ | (6 | ) |   | $ | (2 | ) |
|                                                                       |   |   |   |   |   |   |   |   |   |

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

----

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

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |
| (Millions of dollars)                                           |   | June 30, 2016 |   | December 31, 2015 |
| Finance leases and installment sale contracts – Retail    |   | $ | 13,952 |  |   | $ | 13,728 |  |
| Retail notes receivable                                         |   | 10,621 |  |   | 10,616 |  |
| Wholesale notes receivable                                      |   | 3,647 |  |   | 3,887 |  |
| Finance leases and installment sale contracts – Wholesale |   | 228 |  |   | 289 |  |
|                                                            |   | 28,448 |  |   | 28,520 |  |
| Less: Unearned income                                           |   | (779 | ) |   | (794 | ) |
| Recorded investment in finance receivables                      |   | 27,669 |  |   | 27,726 |  |
| Less: Allowance for credit losses                               |   | (346 | ) |   | (338 | ) |
| Total finance receivables, net                                  |   | $ | 27,323 |  |  | $ | 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 - Finance receivables originated in the United States or Canada. |

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

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

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

|         |                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------|
| • | Latin America - Finance receivables originated in Central and South American countries and Mexico. |

|         |                                                                                                                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Caterpillar Power Finance - 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)                            |   |   |   |   |   |   |   |
|                                             | June 30, 2016 |
| Allowance for Credit Losses:                     | Customer |   | Dealer |   | CaterpillarPurchased Receivables |   | Total |
| Balance at beginning of year                     | $ | 327 |  |   | $ | 9 |  |   | $ | 2 |  |   | $ | 338 |  |
| Receivables written off                          | (79 | ) |   | — |  |   | — |  |   | (79 | ) |
| Recoveries on receivables previously written off | 15 |  |   | — |  |   | — |  |   | 15 |  |
| Provision for credit losses                      | 64 |  |   | 1 |  |   | — |  |   | 65 |  |
| Adjustment due to sale of receivables            | — |  |   | — |  |   | — |  |   | — |  |
| Foreign currency translation adjustment          | 7 |  |   | — |  |   | — |  |   | 7 |  |
| Balance at end of period                         | $ | 334 |  |   | $ | 10 |  |   | $ | 2 |  |   | $ | 346 |  |
|                                             |   |   |   |   |   |   |   |
| Individually evaluated for impairment            | $ | 69 |  |   | $ | — |  |   | $ | — |  |   | $ | 69 |  |
| Collectively evaluated for impairment            | 265 |  |   | 10 |  |   | 2 |  |   | 277 |  |
| Ending Balance                                   | $ | 334 |  |   | $ | 10 |  |   | $ | 2 |  |   | $ | 346 |  |
|                                             |   |   |   |   |   |   |   |
| Recorded Investment in Finance Receivables:      |   |  |   |   |  |   |   |  |   |   |  |
| Individually evaluated for impairment            | $ | 676 |  |   | $ | — |  |   | $ | — |  |   | $ | 676 |  |
| Collectively evaluated for impairment            | 19,483 |  |   | 5,140 |  |   | 2,370 |  |   | 26,993 |  |
| Ending Balance                                   | $ | 20,159 |  |   | $ | 5,140 |  |   | $ | 2,370 |  |   | $ | 27,669 |  |
|                                             |   |   |   |   |   |   |   |

----

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (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)             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              | June 30, 2016 |
|                              | 31-60DaysPast Due |   | 61-90DaysPast Due |   | 91+DaysPast Due |   | TotalPast Due |   | Current |   | RecordedInvestment inFinance Receivables |   | 91+ Still Accruing |
| Customer                          |   |  |   |   |  |   |   |  |   |   |   |   |   |   |   |   |
| North America                     | $ | 64 |  |   | $ | 18 |  |   | $ | 70 |  |   | $ | 152 |  |   | $ | 8,029 |  |   | $ | 8,181 |  |   | $ | 8 |  |
| Europe                            | 18 |  |   | 9 |  |   | 79 |  |   | 106 |  |   | 2,381 |  |   | 2,487 |  |   | 46 |  |
| Asia/Pacific                      | 30 |  |   | 12 |  |   | 26 |  |   | 68 |  |   | 2,118 |  |   | 2,186 |  |   | 8 |  |
| Mining                            | 8 |  |   | 4 |  |   | 72 |  |   | 84 |  |   | 1,765 |  |   | 1,849 |  |   | 10 |  |
| Latin America                     | 57 |  |   | 27 |  |   | 305 |  |   | 389 |  |   | 1,956 |  |   | 2,345 |  |   | — |  |
| Caterpillar Power Finance         | 20 |  |   | 17 |  |   | 39 |  |   | 76 |  |   | 3,035 |  |   | 3,111 |  |   | 1 |  |
| Dealer                            |   |  |   |   |  |   |   |  |   |   |   |   |   |   |   |   |
| North America                     | — |  |   | — |  |   | — |  |   | — |  |   | 3,391 |  |   | 3,391 |  |   | — |  |
| Europe                            | — |  |   | — |  |   | — |  |   | — |  |   | 334 |  |   | 334 |  |   | — |  |
| Asia/Pacific                      | — |  |   | — |  |   | — |  |   | — |  |   | 652 |  |   | 652 |  |   | — |  |
| Mining                            | — |  |   | — |  |   | — |  |   | — |  |   | 7 |  |   | 7 |  |   | — |  |
| Latin America                     | — |  |   | — |  |   | — |  |   | — |  |   | 754 |  |   | 754 |  |   | — |  |
| Caterpillar Power Finance         | — |  |   | — |  |   | — |  |   | — |  |   | 2 |  |   | 2 |  |   | — |  |
| Caterpillar Purchased Receivables |   |  |   |   |  |   |   |  |   |   |   |   |   |   |   |   |
| North America                     | 12 |  |   | 5 |  |   | 4 |  |   | 21 |  |   | 1,402 |  |   | 1,423 |  |   | 4 |  |
| Europe                            | 1 |  |   | 1 |  |   | 3 |  |   | 5 |  |   | 293 |  |   | 298 |  |   | — |  |
| Asia/Pacific                      | — |  |   | — |  |   | — |  |   | — |  |   | 380 |  |   | 380 |  |   | — |  |
| Mining                            | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Latin America                     | — |  |   | — |  |   | — |  |   | — |  |   | 266 |  |   | 266 |  |   | — |  |
| Caterpillar Power Finance         | — |  |   | — |  |   | — |  |   | — |  |   | 3 |  |   | 3 |  |   | — |  |
| Total                             | $ | 210 |  |   | $ | 93 |  |   | $ | 598 |  |   | $ | 901 |  |   | $ | 26,768 |  |   | $ | 27,669 |  |   | $ | 77 |  |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (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 June 30, 2016 |   | As of December 31, 2015 |
| Impaired Finance Receivables WithNo Allowance Recorded | RecordedInvestment |   | UnpaidPrincipalBalance |   | RelatedAllowance |   | RecordedInvestment |   | UnpaidPrincipalBalance |   | RelatedAllowance |
| North America                                          | $ | 33 |  |   | $ | 33 |  |   | $ | — |  |   | $ | 12 |  |   | $ | 12 |  |   | $ | — |  |
| Europe                                                 | 49 |  |   | 48 |  |   | — |  |   | 41 |  |   | 41 |  |   | — |  |
| Asia/Pacific                                           | — |  |   | — |  |   | — |  |   | 1 |  |   | 1 |  |   | — |  |
| Mining                                                 | 81 |  |   | 81 |  |   | — |  |   | 84 |  |   | 84 |  |   | — |  |
| Latin America                                          | 38 |  |   | 38 |  |   | — |  |   | 28 |  |   | 28 |  |   | — |  |
| Caterpillar Power Finance                              | 280 |  |   | 279 |  |   | — |  |   | 242 |  |   | 241 |  |   | — |  |
| Total                                                  | $ | 481 |  |   | $ | 479 |  |   | $ | — |  |   | $ | 408 |  |   | $ | 407 |  |   | $ | — |  |
| Impaired Finance Receivables WithAn Allowance Recorded |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| North America                                          | $ | 33 |  |   | $ | 31 |  |   | $ | 11 |  |   | $ | 14 |  |   | $ | 13 |  |   | $ | 4 |  |
| Europe                                                 | 12 |  |   | 11 |  |   | 7 |  |   | 11 |  |   | 10 |  |   | 5 |  |
| Asia/Pacific                                           | 36 |  |   | 36 |  |   | 5 |  |   | 34 |  |   | 34 |  |   | 4 |  |
| Mining                                                 | 10 |  |   | 10 |  |   | 3 |  |   | 11 |  |   | 11 |  |   | 3 |  |
| Latin America                                          | 61 |  |   | 61 |  |   | 27 |  |   | 53 |  |   | 53 |  |   | 21 |  |
| Caterpillar Power Finance                              | 43 |  |   | 43 |  |   | 16 |  |   | 70 |  |   | 70 |  |   | 28 |  |
| Total                                                  | $ | 195 |  |   | $ | 192 |  |   | $ | 69 |  |   | $ | 193 |  |   | $ | 191 |  |   | $ | 65 |  |
| Total Impaired Finance Receivables                     |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| North America                                          | $ | 66 |  |   | $ | 64 |  |   | $ | 11 |  |   | $ | 26 |  |   | $ | 25 |  |   | $ | 4 |  |
| Europe                                                 | 61 |  |   | 59 |  |   | 7 |  |   | 52 |  |   | 51 |  |   | 5 |  |
| Asia/Pacific                                           | 36 |  |   | 36 |  |   | 5 |  |   | 35 |  |   | 35 |  |   | 4 |  |
| Mining                                                 | 91 |  |   | 91 |  |   | 3 |  |   | 95 |  |   | 95 |  |   | 3 |  |
| Latin America                                          | 99 |  |   | 99 |  |   | 27 |  |   | 81 |  |   | 81 |  |   | 21 |  |
| Caterpillar Power Finance                              | 323 |  |   | 322 |  |   | 16 |  |   | 312 |  |   | 311 |  |   | 28 |  |
| Total                                                  | $ | 676 |  |   | $ | 671 |  |   | $ | 69 |  |   | $ | 601 |  |   | $ | 598 |  |   | $ | 65 |  |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)                                   |   |   |   |   |   |   |   |
|                                                    | Three Months EndedJune 30, 2016 |   | Three Months EndedJune 30, 2015 |
| Impaired Finance Receivables With No Allowance Recorded | AverageRecordedInvestment |   | InterestIncomeRecognized |   | AverageRecordedInvestment |   | InterestIncomeRecognized |
| North America                                           | $ | 24 |  |   | $ | 1 |  |   | $ | 12 |  |   | $ | — |  |
| Europe                                                  | 44 |  |   | — |  |   | 42 |  |   | — |  |
| Asia/Pacific                                            | 3 |  |   | — |  |   | 3 |  |   | — |  |
| Mining                                                  | 80 |  |   | — |  |   | 80 |  |   | 1 |  |
| Latin America                                           | 29 |  |   | — |  |   | 32 |  |   | — |  |
| Caterpillar Power Finance                               | 273 |  |   | 2 |  |   | 176 |  |   | 1 |  |
| Total                                                   | $ | 453 |  |   | $ | 3 |  |   | $ | 345 |  |   | $ | 2 |  |
| Impaired Finance Receivables With An Allowance Recorded |   |  |   |   |  |   |   |  |   |   |  |
| North America                                           | $ | 25 |  |   | $ | — |  |   | $ | 6 |  |   | $ | — |  |
| Europe                                                  | 12 |  |   | — |  |   | 15 |  |   | 1 |  |
| Asia/Pacific                                            | 36 |  |   | 1 |  |   | 41 |  |   | 1 |  |
| Mining                                                  | 13 |  |   | — |  |   | 62 |  |   | — |  |
| Latin America                                           | 57 |  |   | — |  |   | 51 |  |   | — |  |
| Caterpillar Power Finance                               | 45 |  |   | 1 |  |   | 132 |  |   | 1 |  |
| Total                                                   | $ | 188 |  |   | $ | 2 |  |   | $ | 307 |  |   | $ | 3 |  |
| Total Impaired Finance Receivables                      |   |  |   |   |  |   |   |  |   |   |  |
| North America                                           | $ | 49 |  |   | $ | 1 |  |   | $ | 18 |  |   | $ | — |  |
| Europe                                                  | 56 |  |   | — |  |   | 57 |  |   | 1 |  |
| Asia/Pacific                                            | 39 |  |   | 1 |  |   | 44 |  |   | 1 |  |
| Mining                                                  | 93 |  |   | — |  |   | 142 |  |   | 1 |  |
| Latin America                                           | 86 |  |   | — |  |   | 83 |  |   | — |  |
| Caterpillar Power Finance                               | 318 |  |   | 3 |  |   | 308 |  |   | 2 |  |
| Total                                                   | $ | 641 |  |   | $ | 5 |  |   | $ | 652 |  |   | $ | 5 |  |
|                                                    |   |   |   |   |   |   |   |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)                                   |   |   |   |   |   |   |   |
|                                                    | Six Months EndedJune 30, 2016 |   | Six Months EndedJune 30, 2015 |
| Impaired Finance Receivables With No Allowance Recorded | AverageRecordedInvestment |   | InterestIncomeRecognized |   | AverageRecordedInvestment |   | InterestIncomeRecognized |
| North America                                           | $ | 19 |  |   | $ | 1 |  |   | $ | 13 |  |   | $ | — |  |
| Europe                                                  | 43 |  |   | — |  |   | 43 |  |   | — |  |
| Asia/Pacific                                            | 2 |  |   | — |  |   | 3 |  |   | — |  |
| Mining                                                  | 80 |  |   | 1 |  |   | 87 |  |   | 3 |  |
| Latin America                                           | 29 |  |   | — |  |   | 32 |  |   | — |  |
| Caterpillar Power Finance                               | 262 |  |   | 5 |  |   | 151 |  |   | 2 |  |
| Total                                                   | $ | 435 |  |   | $ | 7 |  |   | $ | 329 |  |   | $ | 5 |  |
| Impaired Finance Receivables With An Allowance Recorded |   |  |   |   |  |   |   |  |   |   |  |
| North America                                           | $ | 20 |  |   | $ | — |  |   | $ | 6 |  |   | $ | — |  |
| Europe                                                  | 12 |  |   | — |  |   | 14 |  |   | 1 |  |
| Asia/Pacific                                            | 35 |  |   | 2 |  |   | 34 |  |   | 1 |  |
| Mining                                                  | 12 |  |   | — |  |   | 66 |  |   | 1 |  |
| Latin America                                           | 54 |  |   | 1 |  |   | 49 |  |   | 1 |  |
| Caterpillar Power Finance                               | 53 |  |   | 1 |  |   | 131 |  |   | 1 |  |
| Total                                                   | $ | 186 |  |   | $ | 4 |  |   | $ | 300 |  |   | $ | 5 |  |
| Total Impaired Finance Receivables                      |   |  |   |   |  |   |   |  |   |   |  |
| North America                                           | $ | 39 |  |   | $ | 1 |  |   | $ | 19 |  |   | $ | — |  |
| Europe                                                  | 55 |  |   | — |  |   | 57 |  |   | 1 |  |
| Asia/Pacific                                            | 37 |  |   | 2 |  |   | 37 |  |   | 1 |  |
| Mining                                                  | 92 |  |   | 1 |  |   | 153 |  |   | 4 |  |
| Latin America                                           | 83 |  |   | 1 |  |   | 81 |  |   | 1 |  |
| Caterpillar Power Finance                               | 315 |  |   | 6 |  |   | 282 |  |   | 3 |  |
| Total                                                   | $ | 621 |  |   | $ | 11 |  |   | $ | 629 |  |   | $ | 10 |  |
|                                                    |   |   |   |   |   |   |   |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |
| (Millions of dollars)     |   |   |   |
|                      | June 30, 2016 |   | December 31, 2015 |
| North America             | $ | 70 |  |   | $ | 31 |  |
| Europe                    | 33 |  |   | 39 |  |
| Asia/Pacific              | 18 |  |   | 15 |  |
| Mining                    | 122 |  |   | 106 |  |
| Latin America             | 311 |  |   | 217 |  |
| Caterpillar Power Finance | 59 |  |   | 77 |  |
| Total                     | $ | 613 |  |   | $ | 485 |  |
|                      |   |   |   |

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions)     | Three Months EndedJune 30, 2016 |   | Three Months EndedJune 30, 2015 |
|                      | Number ofContracts |   | Pre-TDRRecorded Investment |   | Post-TDRRecorded Investment |   | Number ofContracts |   | Pre-TDRRecorded Investment |   | Post-TDRRecorded Investment |
| North America             | 2 |  |   | $ | 6 |  |   | $ | 6 |  |   | 1 |  |   | $ | — |  |   | $ | — |  |
| Europe                    | 3 |  |   | 11 |  |   | 8 |  |   | 19 |  |   | 2 |  |   | 2 |  |
| Asia/Pacific              | — |  |   | — |  |   | — |  |   | 20 |  |   | 25 |  |   | 25 |  |
| Mining                    | 1 |  |   | 10 |  |   | 5 |  |   | — |  |   | — |  |   | — |  |
| Latin America             | 88 |  |   | 12 |  |   | 13 |  |   | — |  |   | — |  |   | — |  |
| Caterpillar Power Finance | 26 |  |   | 144 |  |   | 137 |  |   | 2 |  |   | 21 |  |   | 21 |  |
| Total                     | 120 |  |   | $ | 183 |  |   | $ | 169 |  |   | 42 |  |   | $ | 48 |  |   | $ | 48 |  |
|                      |   |   |   |   |   |   |   |   |   |   |   |
|                      | Six Months EndedJune 30, 2016 |   | Six Months EndedJune 30, 2015 |
|                      | Number ofContracts |   | Pre-TDRRecorded Investment |   | Post-TDRRecorded Investment |   | Number ofContracts |   | Pre-TDRRecorded Investment |   | Post-TDRRecorded Investment |
| North America             | 13 |  |   | $ | 16 |  |   | $ | 16 |  |   | 4 |  |   | $ | 1 |  |   | $ | 1 |  |
| Europe                    | 3 |  |   | 11 |  |   | 8 |  |   | 19 |  |   | 2 |  |   | 2 |  |
| Asia/Pacific              | 4 |  |   | 3 |  |   | 3 |  |   | 20 |  |   | 25 |  |   | 25 |  |
| Mining                    | 1 |  |   | 10 |  |   | 5 |  |   | — |  |   | — |  |   | — |  |
| Latin America             | 90 |  |   | 12 |  |   | 13 |  |   | — |  |   | — |  |   | — |  |
| Caterpillar Power Finance | 30 |  |   | 183 |  |   | 164 |  |   | 4 |  |   | 104 |  |   | 101 |  |
| Total                     | 141 |  |   | $ | 235 |  |   | $ | 209 |  |   | 47 |  |   | $ | 132 |  |   | $ | 129 |  |
|                      |   |   |   |   |   |   |   |   |   |   |   |

----

|                       |
|-----------------------|
|                       |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Dollars in millions) | Three Months EndedJune 30, 2016 |   | Three Months EndedJune 30, 2015 |
|                  | Number ofContracts |   | Post-TDRRecordedInvestment |   | Number ofContracts |   | Post-TDRRecordedInvestment |
| North America         | 9 |  |   | $ | 3 |  |   | 1 |  |   | $ | — |  |
| Latin America         | 1 |  |   | — |  |   | — |  |   | — |  |
| Total                 | 10 |  |   | $ | 3 |  |   | 1 |  |   | $ | — |  |
|                  |   |   |   |   |   |   |   |
|                  | Six Months EndedJune 30, 2016 |   | Six Months EndedJune 30, 2015 |
|                  | Number ofContracts |   | Post-TDRRecordedInvestment |   | Number ofContracts |   | Post-TDRRecordedInvestment |
| North America         | 13 |  |   | $ | 3 |  |   | 5 |  |   | $ | 1 |  |
| Europe                | 13 |  |   | 1 |  |   | — |  |   | — |  |
| Asia/Pacific          | 3 |  |   | — |  |   | — |  |   | — |  |
| Latin America         | 2 |  |   | — |  |   | 1 |  |   | — |  |
| Total                 | 31 |  |   | $ | 4 |  |   | 6 |  |   | $ | 1 |  |
|                  |   |   |   |   |   |   |   |

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

----

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |
| (Millions of dollars)      |   |   |   |   |   |
|                       |   |   | Asset (Liability) Fair Value |
|                       | Consolidated Statements ofFinancial Position Location |   | June 30, 2016 |   | December 31, 2015 |
| Designated derivatives     |   |   |   |   |   |
| Interest rate contracts    | Other assets |   | $ | 50 |  |   | $ | 51 |  |
| Interest rate contracts    | Accrued expenses |   | (4 | ) |   | (4 | ) |
| Cross currency contracts   | Other assets |   | 8 |  |   | 1 |  |
| Cross currency contracts   | Accrued expenses |   | (2 | ) |   | — |  |
|                       |   |   | $ | 52 |  |   | $ | 48 |  |
| Undesignated derivatives   |   |   |   |  |   |   |
| Foreign exchange contracts | Other assets |   | $ | 6 |  |   | $ | 3 |  |
| Foreign exchange contracts | Accrued expenses |   | (9 | ) |   | (6 | ) |
| Cross currency contracts   | Other assets |   | 26 |  |   | 36 |  |
|                       |   |   | $ | 23 |  |   | $ | 33 |  |
|                       |   |   |   |   |   |

----

|                                                                               |
|-------------------------------------------------------------------------------|
|                                                                               |  |  |  |
| (Millions of dollars)                                                         |   |
| Balance as of December 31, 2015, net of tax (expense)/benefit of $0           | $ | — |  |
| Gains (losses) deferred during the period, net of tax (expense)/benefit of $3 | (5 | ) |
| (Gains) losses reclassified to earnings, net of tax expense/(benefit) of $(3) | 6 |  |
| Balance as of June 30, 2016, net of tax (expense)/benefit of $0               | $ | 1 |  |
|                                                                          |   |  |

|                                                                                 |
|---------------------------------------------------------------------------------|
|                                                                                 |  |  |  |
| (Millions of dollars)                                                           |   |
| Balance as of December 31, 2014, net of tax (expense)/benefit of $3             | $ | (5 | ) |
| Gains (losses) deferred during the period, net of tax (expense)/benefit of $(1) | 1 |  |
| (Gains) losses reclassified to earnings, net of tax expense/(benefit) of $(1)   | 2 |  |
| Balance as of June 30, 2015, net of tax (expense)/benefit of $1                 | $ | (2 | ) |
|                                                                            |   |  |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Fair Value Hedges       |
| (Millions of dollars)   |
|                    |   |   | Three Months EndedJune 30, 2016 |   | Three Months EndedJune 30, 2015 |
|                    | Classification |   | Gains(Losses)onDerivatives |   | Gains(Losses)onBorrowings  |   | Gains(Losses)onDerivatives |   | Gains (Losses)onBorrowings |
| Interest rate contracts | Other income (expense) |   | $ | (3 | ) |   | $ | 3 |  |   | $ | (13 | ) |   | $ | 12 |  |
|                    |   |   |   |   |   |   |   |   |   |
|                    |   |   | Six Months EndedJune 30, 2016 |   | Six Months EndedJune 30, 2015 |
|                    | Classification |   | Gains(Losses)onDerivatives |   | Gains(Losses)onBorrowings  |   | Gains(Losses)onDerivatives |   | Gains (Losses)onBorrowings |
| Interest rate contracts | Other income (expense) |   | $ | — |  |   | $ | (1 | ) |   | $ | (14 | ) |   | $ | 13 |  |
|                    |   |   |   |   |   |   |   |   |   |

----

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |  |  |
| Cash Flow Hedges         |
| (Millions of dollars)    |
|                     |   |   | Three Months Ended June 30, 2016 |
|                     | Classification |   | Reclassified from AOCIto Earnings(Effective Portion) |   | Recognized in Earnings(Ineffective Portion) |
| Interest rate contracts  | Interest expense |   | $ | (1 | ) |   | $ | — |  |
| Interest rate contracts  | Other income (expense) |   | — |  |   | — |  |
| Cross currency contracts | Other income (expense) |   | (6 | ) |   | — |  |
|                     |   |   | $ | (7 | ) |   | $ | — |  |
|                     |   |   |   |   |   |
|                     |   |   | Three Months Ended June 30, 2015 |
|                     | Classification |   | Reclassified from AOCIto Earnings(Effective Portion) |   | Recognized in Earnings(Ineffective Portion) |
| Interest rate contracts  | Interest expense |   | $ | (2 | ) |   | $ | — |  |
| Interest rate contracts  | Other income (expense) |   | — |  |   | — |  |
|                     |   |   | $ | (2 | ) |   | $ | — |  |
|                     |   |   |   |   |   |
|                     |   |   | Six Months Ended June 30, 2016 |
|                     | Classification |   | Reclassified from AOCIto Earnings(Effective Portion) |   | Recognized in Earnings(Ineffective Portion) |
| Interest rate contracts  | Interest expense |   | $ | (3 | ) |   | $ | — |  |
| Interest rate contracts  | Other income (expense) |   | — |  |   | — |  |
| Cross currency contracts | Other income (expense) |   | (6 | ) |   | — |  |
|                     |   |   | $ | (9 | ) |   | $ | — |  |
|                     |   |   |   |   |   |
|                     |   |   | Six Months Ended June 30, 2015 |
|                     | Classification |   | Reclassified from AOCIto Earnings(Effective Portion) |   | Recognized in Earnings(Ineffective Portion) |
| Interest rate contracts  | Interest expense |   | $ | (3 | ) |   | $ | — |  |
| Interest rate contracts  | Other income (expense) |   | — |  |   | — |  |
|                     |   |   | $ | (3 | ) |   | $ | — |  |
|                     |   |   |   |   |   |

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |
| Undesignated Derivatives   |   |   |   |   |   |
| (Millions of dollars)      |   |   | Three Months Ended June 30, |
|                       | Classification |   | 2016 |   | 2015 |
| Foreign exchange contracts | Other income (expense) |   | $ | (17 | ) |   | $ | 6 |  |
| Cross currency contracts   | Other income (expense) |   | (7 | ) |   | (2 | ) |
|                       |   |   | $ | (24 | ) |   | $ | 4 |  |
|                       |   |   |   |   |   |
|                       |   |   | Six Months Ended June 30, |
|                       | Classification |   | 2016 |   | 2015 |
| Foreign exchange contracts | Other income (expense) |   | $ | (16 | ) |   | $ | (32 | ) |
| Cross currency contracts   | Other income (expense) |   | (12 | ) |   | 8 |  |
|                       |   |   | $ | (28 | ) |   | $ | (24 | ) |
|                       |   |   |   |   |   |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |
| Offsetting of Derivative Assets and Liabilities |   |   |   |   |
| (Millions of dollars)                           |   |   |   |   |
|                                            |   | June 30, 2016 |   | December 31, 2015 |
| Derivative Assets                               |   |   |   |   |
| Gross Amount of Recognized Assets               |   | $ | 90 |  |   | $ | 91 |  |
| Gross Amounts Offset                            |   | — |  |   | — |  |
| Net Amount of Assets(1)                         |   | 90 |  |   | 91 |  |
| Gross Amounts Not Offset                        |   | (11 | ) |   | (5 | ) |
| Net Amount                                      |   | $ | 79 |  |   | $ | 86 |  |
|                                            |   |   |   |   |
| Derivative Liabilities                          |   |   |   |   |
| Gross Amount of Recognized Liabilities          |   | $ | (15 | ) |   | $ | (10 | ) |
| Gross Amounts Offset                            |   | — |  |   | — |  |
| Net Amount of Liabilities(1)                    |   | (15 | ) |   | (10 | ) |
| Gross Amounts Not Offset                        |   | 11 |  |   | 5 |  |
| Net Amount                                      |   | $ | (4 | ) |   | $ | (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 Brazil, Mexico and Chile.  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 atJune 30,2016 |   | Capitalexpenditures |
| North America                   | $ | 317 |  |   | $ | 94 |  |   | $ | 73 |  |   | $ | 118 |  |   | $ | 4 |  |   | $ | 15,094 |  |   | $ | 480 |  |
| Europe                          | 68 |  |   | 22 |  |   | 9 |  |   | 21 |  |   | — |  |   | 3,827 |  |   | 38 |  |
| Asia/Pacific                    | 64 |  |   | 15 |  |   | 21 |  |   | 7 |  |   | 6 |  |   | 3,801 |  |   | 59 |  |
| Latin America and CPF           | 120 |  |   | 18 |  |   | 40 |  |   | 15 |  |   | 25 |  |   | 7,142 |  |   | 7 |  |
| Mining                          | 78 |  |   | 11 |  |   | 11 |  |   | 49 |  |   | 2 |  |   | 2,749 |  |   | 28 |  |
| Total Segments                  | 647 |  |   | 160 |  |   | 154 |  |   | 210 |  |   | 37 |  |   | 32,613 |  |   | 612 |  |
| Unallocated                     | 21 |  |   | (32 | ) |   | 25 |  |   | — |  |   | 1 |  |   | 2,896 |  |   | 2 |  |
| Timing                          | (9 | ) |   | (2 | ) |   | — |  |   | 1 |  |   | — |  |   | 26 |  |   | (2 | ) |
| Methodology                     | — |  |   | 22 |  |   | (27 | ) |   | — |  |   | — |  |   | (190 | ) |   | — |  |
| Inter-segment Eliminations (1)  | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (290 | ) |   | — |  |
| Total                           | $ | 659 |  |   | $ | 148 |  |   | $ | 152 |  |   | $ | 211 |  |   | $ | 38 |  |   | $ | 35,055 |  |   | $ | 612 |  |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2015                            | External Revenues |   | Profitbeforeincometaxes |   | InterestExpense |   | Depreciationon equipmentleased toothers |   | Provisionforcreditlosses |   | Assets atDecember 31,2015 |   | Capitalexpenditures |
| North America                   | $ | 290 |  |   | $ | 93 |  |   | $ | 64 |  |   | $ | 100 |  |   | $ | 6 |  |   | $ | 14,419 |  |   | $ | 278 |  |
| Europe                          | 72 |  |   | 27 |  |   | 9 |  |   | 19 |  |   | — |  |   | 3,758 |  |   | 32 |  |
| Asia/Pacific                    | 77 |  |   | 15 |  |   | 27 |  |   | 5 |  |   | 11 |  |   | 3,923 |  |   | 13 |  |
| Latin America and CPF           | 133 |  |   | 19 |  |   | 38 |  |   | 28 |  |   | 21 |  |   | 7,376 |  |   | 19 |  |
| Mining                          | 102 |  |   | 12 |  |   | 14 |  |   | 58 |  |   | 12 |  |   | 2,947 |  |   | — |  |
| Total Segments                  | 674 |  |   | 166 |  |   | 152 |  |   | 210 |  |   | 50 |  |   | 32,423 |  |   | 342 |  |
| Unallocated                     | 16 |  |   | (28 | ) |   | 16 |  |   | — |  |   | — |  |   | 1,743 |  |   | — |  |
| Timing                          | (7 | ) |   | (3 | ) |   | — |  |   | — |  |   | (1 | ) |   | 164 |  |   | — |  |
| Methodology                     | — |  |   | 15 |  |   | (18 | ) |   | — |  |   | — |  |   | (216 | ) |   | — |  |
| Inter-segment Eliminations (1)  | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (247 | ) |   | — |  |
| Total                           | $ | 683 |  |   | $ | 150 |  |   | $ | 150 |  |   | $ | 210 |  |   | $ | 49 |  |   | $ | 33,867 |  |   | $ | 342 |  |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Millions of dollars) 2016 | External Revenues |   | Profitbeforeincometaxes |   | InterestExpense |   | Depreciationon equipmentleased toothers |   | Provisionforcreditlosses |   | Assets atJune 30,2016 |   | Capitalexpenditures |
| North America                   | $ | 617 |  |   | $ | 176 |  |   | $ | 146 |  |   | $ | 227 |  |   | $ | 13 |  |   | $ | 15,094 |  |   | $ | 652 |  |
| Europe                          | 134 |  |   | 42 |  |   | 17 |  |   | 41 |  |   | 2 |  |   | 3,827 |  |   | 76 |  |
| Asia/Pacific                    | 125 |  |   | 36 |  |   | 41 |  |   | 13 |  |   | 5 |  |   | 3,801 |  |   | 69 |  |
| Latin America and CPF           | 245 |  |   | 45 |  |   | 82 |  |   | 32 |  |   | 42 |  |   | 7,142 |  |   | 24 |  |
| Mining                          | 159 |  |   | 21 |  |   | 24 |  |   | 100 |  |   | 6 |  |   | 2,749 |  |   | 86 |  |
| Total Segments                  | 1,280 |  |   | 320 |  |   | 310 |  |   | 413 |  |   | 68 |  |   | 32,613 |  |   | 907 |  |
| Unallocated                     | 39 |  |   | (64 | ) |   | 49 |  |   | — |  |   | 1 |  |   | 2,896 |  |   | 3 |  |
| Timing                          | (17 | ) |   | (6 | ) |   | — |  |   | 1 |  |   | (2 | ) |   | 26 |  |   | (1 | ) |
| Methodology                     | — |  |   | 43 |  |   | (52 | ) |   | — |  |   | — |  |   | (190 | ) |   | — |  |
| Inter-segment Eliminations (1)  | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (290 | ) |   | — |  |
| Total                           | $ | 1,302 |  |   | $ | 293 |  |   | $ | 307 |  |   | $ | 414 |  |   | $ | 67 |  |   | $ | 35,055 |  |   | $ | 909 |  |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2015                            | External Revenues |   | Profitbeforeincometaxes |   | InterestExpense |   | Depreciationon equipmentleased toothers |   | Provisionforcreditlosses |   | Assets atDecember 31,2015 |   | Capitalexpenditures |
| North America                   | $ | 574 |  |   | $ | 190 |  |   | $ | 127 |  |   | $ | 201 |  |   | $ | 2 |  |   | $ | 14,419 |  |   | $ | 454 |  |
| Europe                          | 147 |  |   | 57 |  |   | 17 |  |   | 39 |  |   | — |  |   | 3,758 |  |   | 52 |  |
| Asia/Pacific                    | 157 |  |   | 35 |  |   | 58 |  |   | 10 |  |   | 20 |  |   | 3,923 |  |   | 17 |  |
| Latin America and CPF           | 273 |  |   | 48 |  |   | 76 |  |   | 56 |  |   | 40 |  |   | 7,376 |  |   | 43 |  |
| Mining                          | 204 |  |   | 42 |  |   | 29 |  |   | 116 |  |   | 2 |  |   | 2,947 |  |   | 69 |  |
| Total Segments                  | 1,355 |  |   | 372 |  |   | 307 |  |   | 422 |  |   | 64 |  |   | 32,423 |  |   | 635 |  |
| Unallocated                     | 32 |  |   | (48 | ) |   | 31 |  |   | — |  |   | — |  |   | 1,743 |  |   | — |  |
| Timing                          | (15 | ) |   | (14 | ) |   | — |  |   | — |  |   | 3 |  |   | 164 |  |   | 1 |  |
| Methodology                     | — |  |   | 27 |  |   | (37 | ) |   | — |  |   | — |  |   | (216 | ) |   | — |  |
| Inter-segment Eliminations (1)  | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (247 | ) |   | — |  |
| Total                           | $ | 1,372 |  |   | $ | 337 |  |   | $ | 301 |  |   | $ | 422 |  |   | $ | 67 |  |   | $ | 33,867 |  |   | $ | 636 |  |
|                            |   |   |   |   |   |   |   |   |   |   |   |   |   |

|    |            |
|----|------------|
| 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)                                  | June 30, 2016 |   | December 31, 2015 |   |   |   |   |
|                                                   | CarryingAmount |   | FairValue |   | CarryingAmount |   | FairValue |   | Fair ValueLevels |   | Reference |
| Cash and cash equivalents                              | $ | 1,075 |  |   | $ | 1,075 |  |   | $ | 1,016 |  |   | $ | 1,016 |  |   | 1 |   |   |
| Foreign currency contracts:                            |   |   |   |   |   |   |   |   |   |   |   |
| In a receivable position                               | $ | 6 |  |   | $ | 6 |  |   | $ | 3 |  |   | $ | 3 |  |   | 2 |   | Note 5 |
| In a payable position                                  | $ | (9 | ) |   | $ | (9 | ) |   | $ | (6 | ) |   | $ | (6 | ) |   | 2 |   | Note 5 |
| Cross currency contracts:                              |   |   |   |   |   |   |   |   |   |   |   |
| In a receivable position                               | $ | 34 |  |   | $ | 34 |  |   | $ | 37 |  |   | $ | 37 |  |   | 2 |   | Note 5 |
| In a payable position                                  | $ | (2 | ) |   | $ | (2 | ) |   | $ | — |  |   | $ | — |  |   | 2 |   | Note 5 |
| Investment in equity securities                        | $ | 2 |  |   | $ | 2 |  |   | $ | — |  |   | $ | — |  |   | 1 |   |   |
| Finance receivables, net (excluding finance leases(1)) | $ | 20,906 |  |   | $ | 20,901 |  |   | $ | 20,935 |  |   | $ | 20,925 |  |   | 3 |   | Note 4 |
| Restricted cash and cash equivalents(2)                | $ | 11 |  |   | $ | 11 |  |   | $ | 18 |  |   | $ | 18 |  |   | 1 |   |   |
| Short-term borrowings                                  | $ | (7,220 | ) |   | $ | (7,220 | ) |   | $ | (6,958 | ) |   | $ | (6,958 | ) |   | 1 |   |   |
| Long-term debt                                         | $ | (21,351 | ) |   | $ | (21,954 | ) |   | $ | (21,569 | ) |   | $ | (21,904 | ) |   | 2 |   |   |
| Interest rate swaps:                                   |   |   |   |   |   |   |   |   |   |   |   |
| In a net receivable position                           | $ | 50 |  |   | $ | 50 |  |   | $ | 51 |  |   | $ | 51 |  |   | 2 |   | Note 5 |
| In a net payable position                              | $ | (4 | ) |   | $ | (4 | ) |   | $ | (4 | ) |   | $ | (4 | ) |   | 2 |   | Note 5 |
| Guarantees                                             | $ | (1 | ) |   | $ | (1 | ) |   | $ | — |  |   | $ | — |  |   | 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 June 30, 2016         | $ | — |  |
|                                       |   |  |

----

|         |                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------|
| • | The decrease in revenues was primarily due to a $15 million unfavorable impact from lower average earning assets. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Profit before income taxes was $148 million for the second quarter of 2016, compared with $150 million for the second quarter of 2015. The decrease was primarily due to an $11 million unfavorable impact from the sale of returned or repossessed equipment primarily driven by the absence of gains recorded in the second quarter of 2015, a $7 million unfavorable impact from lower average earning assets and an unfavorable impact from other miscellaneous items.  These unfavorable impacts were partially offset by an $11 million decrease in provision for credit losses and an $11 million decrease in general, operating and administrative expenses. |

|         |                                                                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The provision for income taxes reflects an estimated annual tax rate of 30 percent in the second quarter of 2016, compared with 29 percent in the second quarter of 2015. The increase in the estimated annual tax rate is primarily due to changes in the geographic mix of profits. |

|         |                                                                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | During the second quarter of 2016, retail new business volume was $3.06 billion, an increase of $319 million, or 12 percent, from the second quarter of 2015. The increase was related to higher volume primarily in North America and Europe. |

|         |                                                                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | At the end of the second quarter of 2016, past dues were 2.93 percent, compared with 2.97 percent at the end of the second quarter of 2015. Write-offs, net of recoveries, were $33 million for the second quarter of 2016, compared with $38 million for the second quarter of 2015. |

|         |                                                                                                                                                                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | As of June 30, 2016, the allowance for credit losses totaled $346 million, or 1.25 percent of net finance receivables, compared with $405 million, or 1.42 percent of net finance receivables at June 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 EndedJune 30, |
|                                                                 | 2016 |  | 2015 |
| Finance receivable and operating lease fees (including late charges) | $ | 19 |  |  | $ | 19 |  |
| Fees on committed credit facility extended to Caterpillar            | 10 |  |  | 10 |  |
| Interest income on Notes Receivable from Caterpillar                 | 8 |  |   | 6 |  |
| Net loss on returned or repossessed equipment                        | (14 | ) |   | (3 | ) |
| Miscellaneous other revenue, net                                     | 2 |  |  | 7 |  |
| Total Other revenue, net                                             | $ | 25 |  |  | $ | 39 |  |
|                                                                 |   |   |   |

----

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |
| (Millions of dollars)                                | Three Months EndedJune 30, |
|                                                 | 2016 |   | 2015 |
| Net loss from interest rate derivatives              | $ | (2 | ) |  | $ | (1 | ) |
| Net currency exchange loss, including forward points | (2 | ) |  | (4 | ) |
| Total Other income (expense)                         | $ | (4 | ) |  | $ | (5 | ) |
|                                                 |   |   |   |

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |  |
| (Millions of dollars)                                           | Six Months EndedJune 30, |
|                                                                 | 2016 |   | 2015 |
| Finance receivable and operating lease fees (including late charges) | $ | 36 |  |   | $ | 35 |  |
| Fees on committed credit facility extended to Caterpillar            | 20 |  |   | 20 |  |
| Interest income on Notes Receivable from Caterpillar                 | 14 |  |   | 11 |  |
| Net loss on returned or repossessed equipment                        | (20 | ) |   | — |  |
| Miscellaneous other revenue, net                                     | 6 |  |   | 13 |  |
| Total Other revenue, net                                             | $ | 56 |  |   | $ | 79 |  |
|                                                                 |   |   |   |

----

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |
| (Millions of dollars)                                | Six Months EndedJune 30, |
|                                                 | 2016 |   | 2015 |
| Net loss from interest rate derivatives              | $ | (4 | ) |   | $ | (1 | ) |
| Net currency exchange loss, including forward points | (3 | ) |   | (13 | ) |
| Total Other income (expense)                         | $ | (7 | ) |   | $ | (14 | ) |
|                                                 |   |   |   |

----

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |
| (Millions of dollars)                  | June 30, 2016 |   | December 31, 2015 |
| Retail notes receivable                | $ | 90 |  |   | $ | 113 |  |
| Retail installment sale contracts      | 83 |  |   | 67 |  |
| Operating leases                       | 68 |  |   | 81 |  |
| Retail finance leases                  | 39 |  |   | 49 |  |
| Total off-balance sheet managed assets | $ | 280 |  |   | $ | 310 |  |
|                                   |   |   |   |

----

|                                                                        |
|------------------------------------------------------------------------|
|                                                                        |  |  |  |  |  |  |  |
| (Millions of dollars)                                             | June 30, 2016 |   | December 31, 2015 |
| Medium-term notes, net of unamortized discount and debt issuance costs | $ | 20,344 |  |   | $ | 20,574 |  |
| Commercial paper, net of unamortized discount                          | 6,218 |  |   | 5,811 |  |
| Bank borrowings – long-term                                      | 1,007 |  |   | 995 |  |
| Bank borrowings – short-term                                     | 403 |  |   | 440 |  |
| Variable denomination floating rate demand notes                       | 599 |  |   | 707 |  |
| Notes payable to Caterpillar                                           | 1,929 |  |   | 1,096 |  |
| Total outstanding borrowings                                           | $ | 30,500 |  |   | $ | 29,623 |  |
|                                                                   |   |   |   |

|                       |
|-----------------------|
|                       |  |  |  |
| (Millions of dollars) |   |
| 2016                  | $ | 2,217 |  |
| 2017                  | 5,907 |  |
| 2018                  | 5,312 |  |
| 2019                  | 3,260 |  |
| 2020                  | 1,109 |  |
| Thereafter            | 2,539 |  |
| Total                 | $ | 20,344 |  |
|                  |   |  |

----

|         |                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------|
| • | The 364-day facility of $3.15 billion (of which $2.33 billion is available to us) expires in September 2016. |

|         |                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The three-year facility, as amended and restated in September 2015, of $2.73 billion (of which $2.01 billion is available to us) expires in September 2018. |

|         |                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The five-year facility, as amended and restated in September 2015, of $4.62 billion (of which $3.41 billion is available to us) expires in September 2020. |

----

----

----

|            |
|------------|
|            |  |
| ExhibitNo. | Description of Exhibit |
|       |   |
| 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:        | August 3, 2016 | By:  | /s/Kent M. Adams |
|         |   | Kent M. Adams, President, Director and Chief ExecutiveOfficer |

|        |
|--------|
|        |  |  |  |
| Date:  | August 3, 2016 | By:  | /s/James A. Duensing |
|   |   | James A. Duensing, Executive Vice President and Chief Financial Officer |

|        |
|--------|
|        |  |  |  |
| Date:  | August 3, 2016 | By:  | /s/Leslie S. Zmugg |
|   |   | Leslie S. Zmugg, Secretary |

|        |
|--------|
|        |  |  |  |
| Date:  | August 3, 2016 | By:  | /s/Jeffry D. Everett |
|   |   | Jeffry D. Everett, Controller |