Basis of Presentation

In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated profit for the three and six months ended June 30, 2014 and 2013, (b) the consolidated comprehensive income for the three and six months ended June 30, 2014 and 2013, (c) the consolidated financial position as of June 30, 2014 and December 31, 2013, (d) the consolidated changes in stockholder's equity for the six months ended June 30, 2014 and 2013 and (e) the consolidated cash flows for the six months ended June 30, 2014 and 2013. The preparation of financial statements, in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), requires management to make estimates and assumptions that affect reported amounts. The most significant estimates include those related to the residual values for leased assets, our Allowance for credit losses and the income tax reserve. Actual results may differ from these estimates.

Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q/A should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations and the audited consolidated financial statements and notes thereto included in our amended annual report on Form 10-K/A for the year ended December 31, 2013 filed with the SEC on November 14, 2014.

The December 31, 2013 financial position data included herein was derived from the audited consolidated financial statements included in our amended annual report on Form 10-K/A for the year ended December 31, 2013 filed with the SEC on November 14, 2014, but does not include all disclosures required by U.S. GAAP.

We consolidate all variable-interest entities (VIEs) where we are the primary beneficiary. The primary beneficiary of a VIE is the party that has the power to direct the activities that most significantly impact the performance of the entity and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. Please refer to Note 7 for more information.

Revision of prior period financial statements

In preparing our consolidated financial statements for the quarter ended September 30, 2014, we identified immaterial errors that impacted our previously issued consolidated financial statements for the interim periods ended March 31, 2014 and June 30, 2014 and the interim and annual periods ended December 31, 2013, 2012 and 2011. The prior period errors primarily relate to our Allowance for credit losses and our valuation of debt instruments in fair value hedges. Specifically as relating to our Allowance for credit losses, at one of our international subsidiary locations, an internal audit review during the second quarter 2014 identified certain finance receivables not appropriately evaluated for impairment. As a result, management performed a subsidiary level analysis during the third quarter which discovered one additional international subsidiary that was providing incomplete credit loss reporting. Both errors impacted management’s evaluation of the adequacy of the Allowance for credit losses. With respect to the fair value hedges, when debt instruments in fair value hedge transactions matured in 2014, management controls identified carrying value adjustments associated with the matured debt remaining on the balance sheet. Upon investigation, we learned that an incorrect discount rate was being used to value the hedged debt over the term of the hedge relationship.

We evaluated these errors and concluded that they did not, individually or in the aggregate, result in a material misstatement of our previously issued consolidated financial statements. However, if the entire correction was recorded out-of-period in the third quarter of 2014, the cumulative amount would have been material to estimated Profit for the year ending December 31, 2014 and would have impacted comparisons to prior periods. As such, the revisions for these corrections are reflected in the financial information of the applicable prior periods and will be reflected in future filings containing such financial information.

The following tables present the effect of these revisions for the financial statement line items impacted in the affected periods included within this quarterly financial report.

Revised Consolidated Statements of Profit Amounts



(Millions of dollars)
	As Previously Reported		Adjustment			As Revised			As Previously Reported			Adjustment			As Revised
	Three Months Ended June 30, 2014								Six Months Ended June 30, 2014
Retail finance	$	345	$	—		$	345		$	682		$	1		$	683
Operating lease revenue	259		—			259			521			(3		)	518
Total revenues	728		—			728			1,441			(2		)	1,439
Depreciation on equipment leased to others	213		—			213			429			(2		)	427
Provision for credit losses	35		(4		)	31			68			—			68
Total expenses	522		(4		)	518			1,042			(2		)	1,040
Other income (expense)	—		(2		)	(2		)	(5		)	(4		)	(9		)
Profit before income taxes	206		2			208			394			(4		)	390
Provision for income taxes	58		—			58			107			(1		)	106
Profit of consolidated companies	148		2			150			287			(3		)	284
Profit	$	146	$	2		$	148		$	282		$	(3	)	$	279



(Millions of dollars)
	As Previously Reported			Adjustment			As Revised			As Previously Reported			Adjustment			As Revised
	Three Months Ended June 30, 2013									Six Months Ended June 30, 2013
Operating lease revenue	$	229		$	1		$	230		$	449		$	1		$	450
Total revenues	694			1			695			1,374			1			1,375
Depreciation on equipment leased to others	183			1			184			358			1			359
Provision for credit losses	31			3			34			47			4			51
Total expenses	514			4			518			1,004			5			1,009
Other income (expense)	(22		)	(14		)	(36		)	(25		)	(15		)	(40		)
Profit before income taxes	158			(17		)	141			345			(19		)	326
Provision for income taxes	44			(4		)	40			87			(5		)	82
Profit of consolidated companies	114			(13		)	101			258			(14		)	244
Profit	$	111		$	(13	)	$	98		$	252		$	(14	)	$	238

Revised Consolidated Statements of Comprehensive Income Amounts



(Millions of dollars)	As Previously Reported		Adjustment		As Revised		As Previously Reported		Adjustment			As Revised
	Three Months Ended June 30, 2014						Six Months Ended June 30, 2014
Profit of consolidated companies	$	148	$	2	$	150	$	287	$	(3	)	$	284
Comprehensive income (loss)	179		2		181		321		(3		)	318
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation	$	177	$	2	$	179	$	317	$	(3	)	$	314



(Millions of dollars)	As Previously Reported		Adjustment			As Revised		As Previously Reported		Adjustment			As Revised
	Three Months Ended June 30, 2013							Six Months Ended June 30, 2013
Profit of consolidated companies	$	114	$	(13	)	$	101	$	258	$	(14	)	$	244
Comprehensive income (loss)	56		(13		)	43		97		(14		)	83
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation	$	51	$	(13	)	$	38	$	89	$	(14	)	$	75

Revised Consolidated Statements of Financial Position Amounts



(Millions of dollars)
	As Previously Reported			Adjustment			As Revised			As Previously Reported			Adjustment			As Revised
	June 30, 2014									December 31, 2013
Retail notes receivable	$	11,316		$	(6	)	$	11,310		$	10,863		$	(5	)	$	10,858
Finance leases and installment sale contracts - Retail	15,112			(16		)	15,096			14,582			(31		)	14,551
Total finance receivables	31,435			(22		)	31,413			30,078			(36		)	30,042
Less: Allowance for credit losses	(387		)	(8		)	(395		)	(378		)	(9		)	(387		)
Total net finance receivables	30,093			(30		)	30,063			28,724			(45		)	28,679
Equipment on operating leases, less accumulated depreciation	3,628			—			3,628			3,530			14			3,544
Deferred and refundable income taxes	129			7			136			160			6			166
Other assets	1,116			—			1,116			1,059			1			1,060
Total assets	$	36,487		$	(23	)	$	36,464		$	35,138		$	(24	)	$	35,114
Payable to Caterpillar - other	$	69		$	(16	)	$	53		$	96		$	(16	)	$	80
Income taxes payable	145			1			146			52			—			52
Long-term debt	17,812			21			17,833			18,720			17			18,737
Deferred income taxes and other liabilities	485			(6		)	479			517			(5		)	512
Total liabilities	32,355			—			32,355			31,127			(4		)	31,123
Retained earnings	3,106			(23		)	3,083			3,024			(20		)	3,004
Total stockholder's equity	4,132			(23		)	4,109			4,011			(20		)	3,991
Total liabilities and stockholder's equity	$	36,487		$	(23	)	$	36,464		$	35,138		$	(24	)	$	35,114



(Millions of dollars)
	As Previously Reported			Adjustment			As Revised
	June 30, 2013
Retail notes receivable	$	10,856		$	(4	)	$	10,852
Finance leases and installment sale contracts - Retail	14,075			(33		)	14,042
Total finance receivables	29,846			(37		)	29,809
Less: Allowance for credit losses	(422		)	(6		)	(428		)
Total net finance receivables	28,457			(43		)	28,414
Equipment on operating leases, less accumulated depreciation	3,075			15			3,090
Deferred and refundable income taxes	112			4			116
Other assets	1,054			1			1,055
Total assets	$	35,039		$	(23	)	$	35,016
Payable to Caterpillar - other	$	66		$	(17	)	$	49
Long-term debt	17,731			16			17,747
Deferred income taxes and other liabilities	525			(5		)	520
Total liabilities	31,319			(6		)	31,313
Retained earnings	2,846			(17		)	2,829
Total stockholder's equity	3,720			(17		)	3,703
Total liabilities and stockholder's equity	$	35,039		$	(23	)	$	35,016

Revised Consolidated Statements of Changes in Stockholder's Equity Amounts



(Millions of dollars)
	As Previously Reported		Adjustment			As Revised			As Previously Reported		Adjustment			As Revised
	June 30, 2014								June 30, 2013
Profit	$	282	$	(3	)	$	279	Profit	$	252	$	(14	)	$	238
Retained Earnings - Balance at June 30, 2014	$	3,106	$	(23	)	$	3,083	Retained Earnings - Balance at June 30, 2013	$	2,846	$	(17	)	$	2,829

Revised Consolidated Statements of Cash Flows Amounts



(Millions of dollars)
	As Previously Reported			Adjustment			As Revised			As Previously Reported			Adjustment			As Revised
	Six Months Ended June 30, 2014									Six Months Ended June 30, 2013
Profit of consolidated companies	$	287		$	(3	)	$	284		$	258		$	(14	)	$	244
Depreciation and amortization	436			(2		)	434			368			1			369
Provision for credit losses	68			—			68			47			4			51
Other, net	6			6			12			33			15			48
Receivables from others	(1		)	—			(1		)	(18		)	(1		)	(19		)
Other receivables/payables with Caterpillar	(22		)	—			(22		)	(10		)	(5		)	(15		)
Accrued expenses and other liabilities, net	(13		)	(1		)	(14		)	(46		)	(5		)	(51		)
Net cash provided by operating activities	655			—			655			451			(5		)	446
Expenditures for equipment on operating leases and for non-leased equipment	(779		)	—			(779		)	(771		)	(16		)	(787		)
Additions to finance receivables	(7,223		)	—			(7,223		)	(6,917		)	21			(6,896		)
Net cash provided by (used for) investing activities	$	(1,660	)	$	—		$	(1,660	)	$	(1,387	)	$	5		$	(1,382	)

The Notes to the Consolidated Financial Statements have been revised to reflect the above revisions for all periods presented.