SEGMENT AND GEOGRAPHIC INFORMATION

A. Basis for Segment Information

We report information internally for operating segments based on management responsibility. Our operating segments provide financing alternatives to customers and dealers around the world for Caterpillar products, as well as financing for vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. Financing plans include operating and finance leases, installment sale contracts, working capital loans and wholesale financing plans within each of the operating segments.

B. Description of Segments

We have six operating segments that offer financing services. Following is a brief description of our segments:


•	North America - Includes our operations in the United States and Canada.


•	EAME - Includes our operations in Europe, Africa, the Middle East and the Commonwealth of Independent States.


•	Asia/Pacific - Includes our operations in Australia, New Zealand, China, Japan, Southeast Asia and India.


•	Latin America - Includes our operations in Mexico and Central and South American countries.


•	Caterpillar Power Finance - Provides financing worldwide for marine vessels with Caterpillar engines and for Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems.


•	Mining - Provides financing for large mining customers worldwide.

C. Segment Measurement and Reconciliations

Cash, debt and other expenses are allocated to our 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 is based on each segment's respective finance receivable portfolio. Capital expenditures include expenditures for equipment on operating leases and other miscellaneous capital expenditures.

Reconciling items are created based on accounting differences between segment reporting and 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 11 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 segment reporting and consolidated external reporting are as follows:


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


◦	The impact of differences between the actual leverage and the segment leverage ratios.


◦	Interest expense includes realized forward points on foreign currency forward contracts.


◦	The net gain or loss from interest rate derivatives is excluded from segment reporting.

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



(Millions of dollars) 2019	External Revenues			Profit before income taxes			Interest Expense			Depreciation on equipment leased to others		Provision for credit losses			Assets at December 31, 2019			Capital expenditures
North America	$	1,633		$	493		$	390		$	583	$	19		$	15,540		$	1,106
EAME	289			75			56			65		4			4,991			92
Asia/Pacific	386			181			112			11		15			4,801			11
Latin America	251			43			98			24		29			2,909			55
Caterpillar Power Finance	101			(41		)	42			3		71			1,673			—
Mining	277			40			57			127		24			2,488			254
Total Segments	2,937			791			755			813		162			32,402			1,518
Unallocated	59			(342		)	256			—		—			1,896			16
Timing	(30		)	(17		)	—			—		—			16			—
Methodology	—			196			(224		)	—		—			(216		)	—
Inter-segment Eliminations ⁽¹⁾	—			—			—			—		—			(405		)	—
Total	$	2,966		$	628		$	787		$	813	$	162		$	33,693		$	1,534

2018	External Revenues			Profit before income taxes			Interest Expense			Depreciation on equipment leased to others		Provision for credit losses			Assets at December 31, 2018			Capital expenditures
North America	$	1,533		$	434		$	363		$	572	$	42		$	15,632		$	1,108
EAME	279			14			50			71		58			4,862			108
Asia/Pacific	357			168			111			18		(5		)	4,639			14
Latin America	254			(3		)	101			27		73			2,972			32
Caterpillar Power Finance	110			(143		)	55			2		171			2,259			—
Mining	256			34			60			128		8			2,234			192
Total Segments	2,789			504			740			818		347			32,598			1,454
Unallocated	92			(267		)	248			1		—			1,957			104
Timing	(34		)	(1		)	—			—		7			55			1
Methodology	—			197			(231		)	—		—			(159		)	—
Inter-segment Eliminations ⁽¹⁾	—			—			—			—		—			(270		)	—
Total	$	2,847		$	433		$	757		$	819	$	354		$	34,181		$	1,559

2017	External Revenues			Profit before income taxes			Interest Expense			Depreciation on equipment leased to others		Provision for credit losses			Assets at December 31, 2017			Capital expenditures
North America	$	1,337		$	353		$	306		$	520	$	36		$	14,790		$	992
EAME	307			116			37			80		4			4,332			103
Asia/Pacific	267			99			87			25		(5		)	4,214			6
Latin America	292			5			121			38		55			3,407			54
Caterpillar Power Finance	155			42			44			3		39			2,746			—
Mining	272			49			50			142		8			2,399			210
Total Segments	2,630			664			645			808		137			31,888			1,365
Unallocated	90			(220		)	193			—		—			1,719			8
Timing	(31		)	(6		)	—			2		(5		)	53			—
Methodology	—			152			(171		)	—		—			(256		)	—
Inter-segment Eliminations ⁽¹⁾	—			—			—			—		—			(244		)	—
Total	$	2,689		$	590		$	667		$	810	$	132		$	33,160		$	1,373

⁽¹⁾ Elimination is primarily related to intercompany loans.

Geographic information:



(Millions of dollars)
	2019		2018		2017
Revenues
Inside U.S.	$	1,756	$	1,684	$	1,551
All other	1,210		1,163		1,138
Total	$	2,966	$	2,847	$	2,689

Equipment on operating leases, net and property and equipment, net (included in Other assets)	2019		2018
Inside U.S.	$	2,686	$	2,775
Inside Canada	479		402
All other	553		513
Total	$	3,718	$	3,690