Segment information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment information

Segment information 

A. Basis for segment information

Our Executive Office is comprised of a Chief Executive Officer (CEO), Chief Operating Officer (COO), four Group Presidents, a Chief Financial Officer (CFO), a Chief Legal Officer and General Counsel and a Chief Human Resources Officer. The COO, Group Presidents and CFO are accountable for a related set of end-to-end businesses that they manage. The Chief Legal Officer and General Counsel leads the Law, Security and Public Policy Division. The Chief Human Resources Officer leads the Human Resources Organization. The CEO allocates resources and manages performance at the COO/Group President/CFO level. As such, the CEO serves as our Chief Operating Decision Maker (CODM), and operating segments are primarily based on the COO/Group President/CFO reporting structure.

Three of our operating segments, Construction Industries, Resource Industries and Energy & Transportation are led by Group Presidents. One operating segment, Financial Products, is led by the CFO who also has responsibility for Corporate Services. Corporate Services is a cost center primarily responsible for the performance of certain support functions globally and to provide centralized services; it does not meet the definition of an operating segment. One Group President leads one smaller operating segment that is included in the All Other Segment. The Law, Security and Public Policy Division and the Human Resources Organization are cost centers and do not meet the definition of an operating segment.

B. Description of segments

We have five operating segments, of which four are reportable segments. Following is a brief description of our reportable segments and the business activities included in the All Other Segment:

Construction Industries: A segment primarily responsible for supporting customers using machinery in infrastructure and building construction applications. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support. The product portfolio includes asphalt pavers; backhoe loaders; cold planers; compactors; compact track loaders; forestry machines; material handlers; motor graders; pipelayers; road reclaimers; skid steer loaders; telehandlers; track-type loaders; track-type tractors (small, medium); track excavators (mini, small, medium, large); wheel excavators; wheel loaders (compact, small, medium); and related parts and work tools. Inter-segment sales are a source of revenue for this segment.

Resource Industries: A segment primarily responsible for supporting customers using machinery in mining, heavy construction and quarry and aggregates. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support. The product portfolio includes large track-type tractors; large mining trucks; hard rock vehicles; electric rope shovels; draglines; hydraulic shovels; rotary drills; large wheel loaders; off-highway trucks; articulated trucks; wheel tractor scrapers; wheel dozers; landfill compactors; soil compactors; wide-body trucks; select work tools; machinery components; electronics and control systems and related parts. In addition to equipment, Resource Industries also develops and sells technology products and services to provide customers fleet management, equipment management analytics, autonomous machine capabilities, safety services and mining performance solutions. Resource Industries also manages areas that provide services to other parts of the company, including strategic procurement, lean center of excellence, integrated manufacturing, research and development for hydraulic systems, automation, electronics and software for Caterpillar machines and engines. Inter-segment sales are a source of revenue for this segment.

Energy & Transportation: A segment primarily responsible for supporting customers using reciprocating engines, turbines, diesel-electric locomotives and related services across industries serving Oil and Gas, Power Generation, Industrial and Transportation applications, including marine- and rail-related businesses as well as product support of on-highway engines. Responsibilities include business strategy, product design, product management, development and testing, manufacturing, marketing and sales and product support. The product and services portfolio includes turbines, centrifugal gas compressors, and turbine-related services; reciprocating engine-powered generator sets; integrated systems and solutions used in the electric power generation industry; reciprocating engines, drivetrain and integrated systems and solutions for the marine and oil and gas industries; reciprocating engines, drivetrain and integrated systems and solutions supplied to the industrial industry as well as Caterpillar machines; electrified powertrain and zero-emission power sources and service solutions development; and diesel-electric locomotives and components and other rail-related products and services, including remanufacturing and leasing. Responsibilities also include the remanufacturing of Caterpillar reciprocating engines and components and remanufacturing services for other companies. Inter-segment sales are a source of revenue for this segment.

Financial Products Segment: Provides financing alternatives to customers and dealers around the world for Caterpillar products and services, as well as financing for power generation facilities that, in most cases, incorporate Caterpillar products. Financing plans include operating and finance leases, revolving charge accounts, installment sale contracts, repair/rebuild financing, working capital loans and wholesale financing plans. The segment also provides insurance and risk management products and services that help customers and dealers manage their business risk. Insurance and risk management products offered include physical damage insurance, inventory protection plans, extended service coverage and maintenance plans for machines and engines, and dealer property and casualty insurance. The various forms of financing, insurance and risk management products offered to customers and dealers help support the purchase and lease of Caterpillar equipment. The segment also earns revenues from ME&T, but the related costs are not allocated to operating segments. Financial Products’ segment profit is determined on a pretax basis and includes other income (expense) items.

All Other Segment: Primarily includes activities such as: business strategy; product management and development; manufacturing and sourcing of wear and maintenance components primarily for Cat® products; parts distribution; integrated logistics solutions; distribution services responsible for dealer development and administration, including a wholly owned dealer in Japan; dealer portfolio management and ensuring the most efficient and effective distribution of machines, engines and parts; brand management and marketing strategy; and digital investments for new customer and dealer solutions that integrate data analytics with state-of-the-art digital technologies while transforming the buying experience. Results for the All Other Segment are included as a reconciling item between reportable segments and consolidated external reporting.

C. Segment measurement and reconciliations

We determine the segment profit of Construction Industries, Resource Industries, Energy & Transportation and our All Other Segment on a pretax basis and exclude most interest expense and certain other income (expense) items. We determine Financial Products Segment profit on a pretax basis and include other income (expense) items.

Our CODM evaluates the operating performance of the segments using segment profit as it provides insight into the financial health of each segment. The CODM reviews this metric regularly to compare the profitability of segments, identify trends, and evaluate which segments require additional resources or strategic adjustments. The CODM uses segment profit to support the allocation of resources predominantly in the annual budget and forecasting process. Additionally, the CODM monitors forecast-to-actual variances, focusing on areas where performance deviates from expectations, when evaluating the performance of each segment and making decisions about allocating capital and other resources to each segment.

There are several methodology differences between our segment reporting and our external reporting.  The following is a list of the more significant methodology differences:

•For Construction Industries, Resource Industries, Energy & Transportation and our All Other Segment, net assets generally include inventories, receivables, property, plant and equipment, goodwill, intangibles, accounts payable and customer advances. We generally manage at the corporate level liabilities other than accounts payable and customer advances, and we do not include these in segment operations.  Financial Products Segment assets generally include all categories of assets.

•We value segment inventories and cost of sales using a current cost methodology.

•We amortize goodwill allocated to segments using a fixed amount based on a 20-year useful life.  This methodology difference only impacts segment assets. We do not include goodwill amortization expense in segment profit. In addition, we have allocated to segments only a portion of goodwill for certain acquisitions made in 2011 or later.

•We generally manage currency exposures for operating segments, other than Financial Products, at the corporate level and do not include in segment profit the effects of changes in exchange rates on results of operations within the year.  We report the net difference created in the translation of revenues and costs between exchange rates used for U.S. GAAP reporting and exchange rates used for segment reporting as a methodology difference.

•We do not include stock-based compensation expense in segment profit.

•Postretirement benefit expenses are split; segments are generally responsible for service costs, with the remaining elements of net periodic benefit cost included as a methodology difference.

Reconciling items are created based on accounting differences between segment reporting and our consolidated external reporting. Please refer to pages 119 to 120 for financial information regarding significant reconciling items. Most of our reconciling items are self-explanatory given the above explanations. For the reconciliation of profit, we have grouped the reconciling items as follows:

•Corporate costs: These costs are related to corporate requirements primarily for compliance and legal functions for the benefit of the entire organization.

•Restructuring income/costs: May include costs for employee separation, long-lived asset impairments, contract terminations and (gains)/losses on divestitures. These costs are included in Other operating (income) expenses except for defined-benefit plan curtailment losses and special termination benefits, which are included in Other income (expense). Restructuring costs also include other exit-related costs, which may consist of accelerated depreciation, inventory write-downs, building demolition, equipment relocation and project management costs and LIFO inventory decrement benefits from inventory liquidations at closed facilities, all of which are primarily included in Cost of goods sold. See Note 24 for more information.

•Methodology differences: See previous discussion of significant accounting differences between segment reporting and consolidated external reporting.

•Timing: Timing differences in the recognition of costs between segment reporting and consolidated external reporting. For example, we report certain costs on the cash basis for segment reporting and the accrual basis for consolidated external reporting.

For the years ended December 31, 2024, 2023 and 2022, sales and revenues by geographic region reconciled to consolidated sales and revenues were as follows:

Sales and Revenues by Geographic Region
(Millions of dollars)	North America		Latin America		EAME		Asia/ Pacific		External Sales and Revenues			Intersegment Sales and Revenues		Total Sales and Revenues
2024
Construction Industries	$	14,576	$	2,553	$	4,315	$	3,900	$	25,344		$	111	$	25,455
Resource Industries	4,561		2,077		1,804		3,576		12,018			371		12,389
Energy & Transportation	13,005		1,763		5,787		3,533		24,088			4,766		28,854
Financial Products Segment	2,702		402		505		444		4,053		1	—		4,053
Total sales and revenues from reportable segments	34,844		6,795		12,411		11,453		65,503			5,248		70,751
All Other Segment	56		—		12		50		118			307		425
Corporate Items and Eliminations	(503)		(87)		(107)		(115)		(812)			(5,555)		(6,367)
Total Sales and Revenues	$	34,397	$	6,708	$	12,316	$	11,388	$	64,809		$	—	$	64,809
2023
Construction Industries	$	15,343	$	2,307	$	5,254	$	4,390	$	27,294		$	124	$	27,418
Resource Industries	5,256		2,040		2,069		3,879		13,244			339		13,583
Energy & Transportation	11,982		1,983		5,929		3,461		23,355			4,646		28,001
Financial Products Segment	2,440		416		491		438		3,785		1	—		3,785
Total sales and revenues from reportable segments	35,021		6,746		13,743		12,168		67,678			5,109		72,787
All Other Segment	65		(1)		18		49		131			318		449
Corporate Items and Eliminations	(480)		(80)		(88)		(101)		(749)			(5,427)		(6,176)
Total Sales and Revenues	$	34,606	$	6,665	$	13,673	$	12,116	$	67,060		$	—	$	67,060
2022
Construction Industries	$	12,367	$	2,843	$	5,099	$	4,818	$	25,127		$	142	$	25,269
Resource Industries	4,531		1,840		2,205		3,437		12,013			301		12,314
Energy & Transportation	9,175		1,784		5,232		3,146		19,337			4,415		23,752
Financial Products Segment	2,078		348		396		431		3,253		1	—		3,253
Total sales and revenues from reportable segments	28,151		6,815		12,932		11,832		59,730			4,858		64,588
All Other Segment	64		2		(66)		145		145			305		450
Corporate Items and Eliminations	(234)		(79)		(52)		(83)		(448)			(5,163)		(5,611)
Total Sales and Revenues	$	27,981	$	6,738	$	12,814	$	11,894	$	59,427		$	—	$	59,427

1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other Segment of $711 million, $690 million and $478 million in the years ended December 31, 2024, 2023 and 2022, respectively.

For the years ended December 31, 2024, 2023 and 2022, Energy & Transportation segment sales by end user application were as follows:

Energy & Transportation External Sales
(Millions of dollars)
	2024		2023		2022
Oil and gas	$	6,980	$	6,988	$	5,330
Power generation	7,756		6,362		4,940
Industrial	3,990		4,871		4,426
Transportation	5,362		5,134		4,641
Energy & Transportation External Sales	$	24,088	$	23,355	$	19,337

Profit from Reportable Segments
(Millions of dollars)
	Construction Industries		Resource Industries		Energy & Transportation		Financial Products Segment		Total from Reportable Segments
2024
Sales and revenues	$	25,455	$	12,389	$	28,854	$	4,053	$	70,751
Less 1:
Cost of goods sold	17,326		8,387		19,796		—		45,509
SG&A/R&D 2	1,931		1,451		3,241		771		7,394
Other segment items 3	33		18		81		2,350		2,482
Segment Profit	$	6,165	$	2,533	$	5,736	$	932	$	15,366
2023
Sales and revenues	$	27,418	$	13,583	$	28,001	$	3,785	$	72,787
Less 1:
Cost of goods sold	18,658		9,367		19,875		—		47,900
SG&A/R&D 2	1,844		1,389		3,084		691		7,008
Other segment items 3	(59)		(7)		106		2,185		2,225
Segment Profit	$	6,975	$	2,834	$	4,936	$	909	$	15,654
2022
Sales and revenues	$	25,269	$	12,314	$	23,752	$	3,253	$	64,588
Less 1:
Cost of goods sold	18,924		9,249		17,931		—		46,104
SG&A/R&D 2	1,629		1,308		2,655		660		6,252
Other segment items 3	(27)		(70)		(143)		1,729		1,489
Segment Profit	$	4,743	$	1,827	$	3,309	$	864	$	10,743
1 The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment income/expenses are included within the amounts shown.
2 Includes selling, general and administrative (SG&A) and research and development (R&D) expenses. The combined presentation aligns with the segment-level information that is regularly provided to the CODM.
3 Other segment items for each reportable segment primarily includes: Construction Industries – other operating (income) expenses, currency impacts defined as a methodology difference between exchange rates used in U.S. GAAP and segment reporting, and equity in (profit) loss of unconsolidated affiliated companies. Resource Industries – other operating (income) expenses, currency impacts defined as a methodology difference between exchange rates used in U.S. GAAP and segment reporting, and equity in (profit) loss of unconsolidated affiliated companies. Energy & Transportation – other operating (income) expenses, currency impacts defined as a methodology difference between exchange rates used in U.S. GAAP and segment reporting, and equity in (profit) loss of unconsolidated affiliated companies. Financial Products Segment – interest expense, Cat Financial’s depreciation on equipment leased to others, Insurance Services’ underwriting expenses and investment and interest income, and foreign exchange (gains) losses.

Reconciliation of Consolidated profit before taxes:
(Millions of dollars)
	2024		2023		2022
Total profit from reportable segments	15,366		15,654		10,743
Profit from All Other Segment	48		18		(11)
Cost centers	(1)		(7)		(13)
Corporate costs	(889)		(913)		(751)
Timing	133		(30)		(309)
Restructuring costs	(359)		(780)		(299)
Methodology differences:
Inventory/cost of sales	33		160		413
Postretirement benefit income (expense)	67		(65)		916
Stock-based compensation expense	(223)		(208)		(193)
Financing costs	(126)		(91)		(331)
Currency	145		6		23
Goodwill impairment charge	—		—		(925)
Other income/expense methodology differences	(740)		(624)		(409)
Other methodology differences	(81)		(70)		(102)
Total consolidated profit before taxes	$	13,373	$	13,050	$	8,752

Reconciliation of Assets:
(Millions of dollars)	December 31,
	2024		2023
Assets from reportable segments:
Construction Industries	$	5,546	$	5,384
Resource Industries	5,548		5,742
Energy & Transportation	11,772		10,555
Financial Products Segment	36,925		35,685
Total assets from reportable segments	59,791		57,366
Assets from All Other Segment	1,937		1,890
Items not included in segment assets:
Cash and cash equivalents	6,165		6,106
Deferred income taxes	3,194		2,668
Goodwill and intangible assets	4,478		4,452
Property, plant and equipment – net and other assets	4,808		6,548
Inventory methodology differences	(3,560)		(3,169)
Liabilities included in segment assets	11,973		11,781
Other	(1,022)		(166)
Total assets	$	87,764	$	87,476

Reconciliation of Depreciation and amortization:
(Millions of dollars)
	2024		2023		2022
Depreciation and amortization from reportable segments:
Construction Industries	$	233	$	221	$	231
Resource Industries	260		302		368
Energy & Transportation	578		551		547
Financial Products Segment	740		731		734
Total depreciation and amortization from reportable segments	1,811		1,805		1,880
Items not included in segment depreciation and amortization:
All Other Segment	254		236		229
Cost centers	95		91		84
Other	(7)		12		26
Total depreciation and amortization	$	2,153	$	2,144	$	2,219

Reconciliation of Capital expenditures:
(Millions of dollars)
	2024		2023		2022
Capital expenditures from reportable segments:
Construction Industries	$	323	$	376	$	271
Resource Industries	268		245		237
Energy & Transportation	1,279		944		756
Financial Products Segment	1,085		1,299		1,141
Total capital expenditures from reportable segments	2,955		2,864		2,405
Items not included in segment capital expenditures:
All Other Segment	245		260		219
Cost centers	193		102		76
Timing	(149)		(44)		(54)
Other	(29)		(90)		(47)
Total capital expenditures	$	3,215	$	3,092	$	2,599

Enterprise-wide Disclosures:
Information about Geographic Areas:
							Property, plant and equipment - net
	External sales and revenues 1						December 31,
(Millions of dollars)	2024		2023		2022		2024		2023
Inside United States	$	30,624	$	31,053	$	24,368	$	8,213	$	7,658
Outside United States	34,185		36,007		35,059		5,148		5,022
Total	$	64,809	$	67,060	$	59,427	$	13,361	$	12,680
1 Sales of ME&T are based on dealer or customer location. Revenues from services provided are based on where service is rendered.