The Financial Products segment provides financing to Cat customers for the purchase and lease of equipment, as well as financing for Cat sales to dealers. Finance plans offered include operating and finance leases, installment sale contracts, working capital loans and wholesale financing plans. The segment also provides various types of insurance to customers and dealers to help support the purchase and lease of our equipment.


While sales and revenues declined for the fourth straight year, our financial performance was helped through cost management, restructuring actions and operational execution. We lowered our period costs and variable manufacturing costs $2.3 billion compared to 2015; our product quality remained at high levels and our safety levels continued to be world class. In addition, we were able to maintain positive cash flow after capital expenditures and dividends.