Segment Information

12 Months Ended

Dec. 31, 2012

Segment Reporting [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 - Includes our operations in the United States and Canada that serve local dealers and customers.

• Europe and Caterpillar Power Finance - This segment includes our operations 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 our operations in Australia, China, Japan, South Korea and Southeast Asia that serve local dealers and customers.  

• Latin America - Includes our operations 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. 

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 operating segment's profit is based on each operating segment's share of the Company's Allowance for credit losses.

Reconciling items are created based on accounting differences between operating 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 operating segment reporting and consolidated external reporting.

• Methodology - Methodology differences between our operating segment reporting and our external reporting are as follows:

◦ Segment assets include off-balance sheet 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 operating segment information is presented on a management-reporting basis. Unlike financial reporting, there is no authoritative guidance for management reporting equivalent to generally accepted accounting principles in the United States of America.

Supplemental segment data and reconciliations to consolidated external reporting for the years ended December 31 was as follows:

(Millions of dollars) 2012	Revenues			Segment Profit			Interest Expense			Depreciation on equipment leased to others		Provision for credit losses			Segment Assets at December 31, 2012			Capital expenditures
North America	$	950		$	258		$	288		$	274	$	15		$	11,945		$	565
Europe and CPF	466			97			122			76		65			7,598			243
Asia/Pacific	399			142			145			23		24			5,956			133
Latin America	389			122			130			64		26			4,817			172
Mining	451			61			90			250		27			3,225			545
Total Segments	2,655			680			775			687		157			33,541			1,658
Unallocated	62			(93		)	46			1		—			1,409			—
Timing	(24		)	(11		)	5			—		4			17			2
Methodology	—			15			(25		)	—		—			(61		)	—
Inter-segment Eliminations	—			—			—			—		—			(164		)	—
Total	$	2,693		$	591		$	801		$	688	$	161		$	34,742		$	1,660
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
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

Inside and outside the United States:

(Millions of dollars)
	2012		2011		2010
Revenues
Inside U.S.	$	1,142	$	1,112	$	1,138
Inside Canada	347		374		362
Inside Australia	301		259		222
All other	903		900		830
Total	$	2,693	$	2,645	$	2,552
Equipment on Operating Leases and Non-Leased   Equipment (included in Other Assets), Net	2012		2011		2010
Inside U.S.	$	1,218	$	986	$	1,044
Inside Canada	761		771		818
Inside Australia	342		314		343
All other	742		592		567
Total	$	3,063	$	2,663	$	2,772