Caterpillar announced it has entered into a definitive agreement with Citibank N.A. to purchase about $1.7 billion of its common stock under an accelerated stock repurchase transaction, adding to the $2 billion of stock repurchased in 2013.

The agreement provides for the delivery of about 18 million shares based on current market prices. The final number of shares to be repurchased and the aggregate cost to Caterpillar will be based on Caterpillar’s volume-weighted average stock price during the term of the transaction, to be completed in March.

“The strength of our balance sheet and record 2013 operating cash flow enable us to announce the completion of our current $7.5 billion stock repurchase authorization,” said Caterpillar chairman and CEO Doug Oberhelman. “This repurchase, combined with the new $10 billion stock repurchase program announced on January 27, affirms our commitment to deliver superior returns to stockholders through the cycles.”

The current transaction will complete the $7.5 billion repurchase authorization originally approved by Caterpillar’s board in 2007 and set to expire at the end of 2015. The company’s board of directors approved a new $10 billion stock repurchase program that will expire at the end of 2018.