Segment Information

12 Months Ended

Dec. 31, 2013

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

Cash, 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 performance of each segment is assessed based on a consistent leverage ratio. 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 10 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 consolidated external reporting are as follows:

◦ Segment assets include off-balance sheet managed assets for which we typically maintain servicing responsibilities.

◦ The impact of the difference between the actual leverage and the segment leverage ratios is included as a methodology difference.

◦ 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 U.S. GAAP.

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

(Millions of dollars) 2013	Revenues			Segment Profit			Interest Expense			Depreciation on equipment leased to others		Provision for credit losses			Segment Assets at December 31, 2013			Capital expenditures
North America	$	946		$	286		$	259		$	293	$	—		$	12,158		$	782
Europe and CPF	505			146			110			86		47			8,068			242
Asia/Pacific	399			168			135			25		5			5,272			54
Latin America	414			92			137			93		32			4,953			272
Mining	472			85			79			270		12			3,441			453
Total Segments	2,736			777			720			767		96			33,892			1,803
Unallocated	73			(73		)	53			1		2			1,595			1
Timing	(26		)	(10		)	—			—		(4		)	68			2
Methodology	—			24			(39		)	—		—			(190		)	—
Inter-segment Eliminations	—			—			—			—		—			(227		)	—
Total	$	2,783		$	718		$	734		$	768	$	94		$	35,138		$	1,806
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	$	938		$	263		$	270		$	274	$	15		$	11,305		$	565
Europe and CPF	467			84			134			76		65			7,785			243
Asia/Pacific	399			132			155			23		24			6,151			133
Latin America	389			111			141			64		26			4,973			172
Mining	451			60			90			250		27			3,212			545
Total Segments	2,644			650			790			687		157			33,426			1,658
Unallocated	73			(93		)	61			1		1			1,529			—
Timing	(24		)	(6		)	—			—		3			17			2
Methodology	—			40			(50		)	—		—			(61		)	—
Inter-segment Eliminations	—			—			—			—		—			(169		)	—
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	$	959		$	222		$	303		$	276	$	34		$	10,867		$	530
Europe and CPF	506			37			166			89		105			6,922			118
Asia/Pacific	333			112			129			16		28			4,605			42
Latin America	350			111			127			47		17			3,995			175
Mining	446			72			90			260		3			2,635			321
Total Segments	2,594			554			815			688		187			29,024			1,186
Unallocated	73			(92		)	69			2		2			1,253			3
Timing	(22		)	6			—			—		(13		)	67			1
Methodology	—			36			(57		)	—		—			15			—
Inter-segment Eliminations	—			—			—			—		—			(247		)	—
Total	$	2,645		$	504		$	827		$	690	$	176		$	30,112		$	1,190

Inside and outside the United States: 

(Millions of dollars)
	2013		2012		2011
Revenues
Inside U.S.	$	1,043	$	1,009	$	991
Inside Canada	329		330		324
Inside Australia	287		302		297
All other	1,124		1,052		1,033
Total	$	2,783	$	2,693	$	2,645
Equipment on Operating Leases and Non-Leased   Equipment (included in Other Assets), Net	2013		2012		2011
Inside U.S.	$	1,423	$	1,204	$	1,046
Inside Canada	729		735		639
Inside Australia	434		336		292
All other	1,037		788		686
Total	$	3,623	$	3,063	$	2,663