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Segment and Geographic Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment and Geographic Information 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 and services and vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. Financing plans include operating and finance leases, retail loans, working capital loans to Caterpillar dealers and wholesale financing plans within each of the operating segments. Certain operating segments also purchase short-term trade receivables from Caterpillar.

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.
•Mining - Provides financing for large mining customers worldwide.
•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.

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 was as follows:
(Millions of dollars)

 
2021
External
Revenues		Profit
before
income
taxes		Interest
Expense		Depreciation
on equipment
leased to
others		Provision
for
credit
losses
Assets at
December 31, 2021
Capital
expenditures
North America$1,401 $419 $250 $542 $15 $15,755 $888 
EAME274 73 21 60 30 5,192 92 
Asia/Pacific340 170 84 7 9 4,117 10 
Latin America202 24 68 8 52 2,405 12 
Mining289 98 37 136 (15)2,672 206 
Caterpillar Power Finance52 41 13 2 (21)957 — 
Total Segments2,558 825 473 755 70 31,098 1,208 
Unallocated15 (295)179 — — 1,458 8 
Timing(11)6 — — — 15 — 
Methodology— 159 (197)— — 18 — 
Inter-segment Eliminations (1)
— — — — — (202)— 
Total$2,562 $695 $455 $755 $70 $32,387 $1,216 


 
2020
External
Revenues		Profit
before
income
taxes		Interest
Expense		Depreciation
on equipment
leased to
others		Provision
for
credit
losses
Assets at
December 31, 2020
Capital
expenditures
North America$1,401 $312 $322 $538 $69 $14,749 $864 
EAME271 44 37 62 50 4,981 37 
Asia/Pacific338 145 94 9 38 4,585 7 
Latin America201 41 70 11 33 2,621 7 
Mining279 33 53 137 27 2,575 151 
Caterpillar Power Finance54 (38)25 1 50 1,308 23 
Total Segments2,544 537 601 758 267 30,819 1,089 
Unallocated25 (287)207 — (1)1,576 11 
Timing(19)(3)— — — 12 — 
Methodology— 187 (217)— — (152)— 
Inter-segment Eliminations (1)
— — — — — (264)— 
Total$2,550 $434 $591 $758 $266 $31,991 $1,100 

 

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$1,627 $492 $389 $580 $19 $15,496 $1,105 
EAME281 72 54 65 4 4,918 92 
Asia/Pacific363 167 106 11 16 4,540 11 
Latin America239 42 94 16 29 2,809 11 
Mining326 56 73 138 23 2,966 299 
Caterpillar Power Finance101 (41)42 3 71 1,673 — 
Total Segments2,937 788 758 813 162 32,402 1,518 
Unallocated59 (342)256 — — 1,896 16 
Timing(30)(17)— — — 16 — 
Methodology— 199 (227)— — (216)— 
Inter-segment Eliminations (1)
— — — — — (405)— 
Total$2,966 $628 $787 $813 $162 $33,693 $1,534 
(1) Elimination is primarily related to intercompany loans.
Geographic information: 
(Millions of dollars)
202120202019
Revenues   
Inside U.S.$1,422 $1,443 $1,756 
All other1,140 1,107 1,210 
Total$2,562 $2,550 $2,966 
Equipment on operating leases, net and property
  and equipment, net (included in Other assets)		20212020
Inside U.S.$2,179 $2,482 
Inside Canada545 521 
All other532 497 
Total$3,256 $3,500