Segment Information

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

Segment Information

SEGMENT INFORMATION

A.     Description of segments

Our segment data is based on disclosure requirements of accounting guidance on segment reporting, which requires that financial information be reported on the basis that is used internally for measuring segment performance. Internally, we report information for operating segments based on management responsibility. Our operating segments offer primarily the same types of services within each of the respective segments. The operating segments are as follows:

• North America: We have offices in the United States and Canada that serve local dealers and customers.

• Europe and Caterpillar Power Finance: This segment includes our offices that serve dealers and customers in Europe, Africa, Middle East and the Commonwealth of Independent States.  This segment also includes Caterpillar Power Finance (CPF), which finances marine vessels with Caterpillar engines worldwide and also provides debt financing for Caterpillar electrical power generation, gas compression and co-generation systems, as well as non-Caterpillar equipment that is powered by these systems worldwide. 

• Asia/Pacific: This segment includes offices in Australia, China, Japan, South Korea and Southeast Asia that serve local dealers and customers.  

• Latin America: We have offices in Brazil, Mexico and Chile that serve local dealers and customers in Central and South America.

• Mining: This segment includes large mining customers worldwide. This segment also provides project financing in various countries. 

To align with changes in our executive management responsibilities at Cat Financial, our management reporting structure was updated effective January 1, 2012. Prior year data has been revised to conform to the 2012 presentation.

B.     Measurement and reconciliations

Debt and other expenses are allocated to operating segments based on their respective portfolios. The related Interest expense is calculated based on the amount of allocated debt and the rates associated with that debt. The Provision for credit losses included in each segment's profit is based on each segment's share of the Company's Allowance for credit losses.

Reconciling items are created based on accounting differences between segment reporting and our consolidated external reporting. For the reconciliation of profit before income taxes, we have grouped the reconciling items as follows:

• 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 9 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 our segment reporting and our external reporting are as follows:

◦ Segment assets include other managed assets for which we typically maintain servicing responsibilities.

◦ Interest expense includes realized forward points on foreign currency forward contracts, with the mark-to-market elements of the forward exchange contracts included as a methodology difference.

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

As noted above, the segment information is presented on a management-reporting basis. Unlike financial reporting, there is no authoritative guidance for management reporting equivalent to U.S. GAAP.

Supplemental segment data and reconciliations to consolidated external reporting for the years ended December 31,
(Millions of dollars) 2011	Revenues			Segment Profit			Interest Expense			Depreciation on equipment leased to others		Provision for credit losses			Segment Assets at December 31, 2011			Capital expenditures
North America	$	966		$	221		$	314		$	276	$	34		$	11,177		$	530
Europe and CPF	502			53			148			89		105			6,601			118
Asia/Pacific	333			111			130			16		28			4,557			42
Latin America	350			110			128			47		17			3,947			175
Mining	446			76			87			260		3			2,645			321
Total Segments	2,597			571			807			688		187			28,927			1,186
Unallocated	70			(55		)	22			2		2			1,350			3
Timing	(22		)	(6		)	12			—		(13		)	67			1
Methodology	—			(6		)	(14		)	—		—			15			—
Inter-segment Eliminations	—			—			—			—		—			(247		)	—
Total	$	2,645		$	504		$	827		$	690	$	176		$	30,112		$	1,190

(Millions of dollars) 2010	Revenues			Segment Profit			Interest Expense			Depreciation on equipment leased to others		Provision for credit losses			Segment Assets at December 31, 2010			Capital expenditures
North America	$	985		$	46		$	380		$	302	$	120		$	11,111		$	512
Europe and CPF	498			79			182			92		50			6,884			120
Asia/Pacific	441			96			138			133		25			4,315			21
Latin America	297			101			121			29		9			3,391			109
Mining	252			48			62			131		(3		)	1,523			156
Total Segments	2,473			370			883			687		201			27,224			918
Unallocated	104			(19		)	28			3		—			1,617			40
Timing	(25		)	(31		)	14			—		12			113			1
Methodology	—			9			(8		)	—		—			(21		)	—
Inter-segment Eliminations	—			—			—			—		—			(181		)	—
Total	$	2,552		$	329		$	917		$	690	$	213		$	28,752		$	959
2009	Revenues			Segment Profit			Interest Expense			Depreciation on equipment leased to others		Provision for credit losses			Segment Assets at December 31, 2009			Capital expenditures
North America	$	1,080		$	31		$	429		$	347	$	139		$	11,727		$	475
Europe and CPF	591			73			229			106		73			8,176			97
Asia/Pacific	412			101			143			121		(10		)	3,870			5
Latin America	276			85			136			22		5			3,101			78
Mining	233			29			68			114		10			1,842			256
Total Segments	2,592			319			1,005			710		217			28,716			911
Unallocated	144			(16		)	72			3		12			2,801			63
Timing	(22		)	16			—			—		2			67			2
Methodology	—			1			(29		)	—		—			(577		)	—
Inter-segment Eliminations	—			—			—			—		—			(359		)	—
Total	$	2,714		$	320		$	1,048		$	713	$	231		$	30,648		$	976

Inside and outside the United States:

(Millions of dollars)	2011		2010		2009
Revenue
Inside U.S.	$	1,112	$	1,138	$	1,338
Inside Canada	374		362		348
Inside Australia	259		222		188
All other	900		830		840
Total	$	2,645	$	2,552	$	2,714
Equipment on Operating Leases and Non-Leased   Equipment (included in Other Assets), Net	2011		2010		2009
Inside U.S.	$	986	$	1,044	$	1,246
Inside Canada	771		818		901
Inside Australia	314		343		325
All other	592		567		604
Total	$	2,663	$	2,772	$	3,076