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Segment Information
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
A.     Basis for Segment Information

The Chief Operating Decision Maker (the CEO) allocates resources and manages performance for our six operating segments described as follows. Our operating segments provide financing alternatives to customers and dealers around the world for Caterpillar products and services and power generation facilities 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 Eurasia.
•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.
•Power - Provides financing worldwide 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 (SPC) (see Note 7 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 three months ended September 30 was as follows:
(Millions of dollars)

 
2023
External
Revenues		Profit
before
income
taxes		Interest
Expense		Depreciation
on equipment
leased to
others		Provision
for
credit
losses		Assets at
September 30, 2023		Capital
expenditures
North America$459 $144 $128 $130 $10 $15,928 $274 
EAME102 35 26 14 1 4,867 14 
Asia/Pacific70 19 32 2 1 3,265 — 
Latin America95 15 48 3 13 2,579 3 
Mining86 17 23 32 5 2,880 49 
Power15 (1)7 1 4 644 — 
Total Segments827 229 264 182 34 30,163 340 
Unallocated23 (137)108 — 1 2,255 1 
Timing(4)1 — — — 19 — 
Methodology— 77 (92)— — 235 — 
Inter-segment Eliminations (1)
— — — — — (208)— 
Total$846 $170 $280 $182 $35 $32,464 $341 
2022External
Revenues		Profit
before
income
taxes		Interest
Expense		Depreciation
on equipment
leased to
others		Provision
for
credit
losses		Assets at
December 31, 2022		Capital
expenditures
North America$383 $150 $69 $126 $(5)$15,229 $205 
EAME72 — 27 13 7 5,067 45 
Asia/Pacific70 33 19 1 1 3,921 3 
Latin America75 31 37 3 (8)2,636 3 
Mining72 21 11 35 (4)2,700 36 
Power11 12 5 1 (7)704 — 
Total Segments683 247 168 179 (16)30,257 292 
Unallocated10 (80)53 — — 1,628 2 
Timing(3)— — — — 18 — 
Methodology— 21 (70)— — 278 — 
Inter-segment Eliminations (1)
— — — — — (224)— 
Total$690 $188 $151 $179 $(16)$31,957 $294 
 (1) Elimination is primarily related to intercompany loans
Supplemental segment data and reconciliations to consolidated external reporting for the nine months ended September 30 was as follows:

(Millions of dollars)


2023
External
Revenues		Profit
before
income
taxes		Interest
Expense		Depreciation
on equipment
leased to
others		Provision
for
credit
losses		Assets at
September 30, 2023		Capital
expenditures
North America$1,313 $447 $331 $380 $17 $15,928 $789 
EAME274 79 72 43 3 4,867 50 
Asia/Pacific213 86 78 4 (3)3,265 2 
Latin America264 81 132 9 (2)2,579 13 
Mining253 76 56 94 (2)2,880 168 
Power43 3 19 2 9 644 — 
Total Segments2,360 772 688 532 22 30,163 1,022 
Unallocated58 (378)279 — 1 2,255 7 
Timing(11)1 — — — 19 — 
Methodology— 184 (225)— — 235 — 
Inter-segment Eliminations (1)
— — — — — (208)— 
Total$2,407 $579 $742 $532 $23 $32,464 $1,029 
2022External
Revenues		Profit
before
income
taxes		Interest
Expense		Depreciation
on equipment
leased to
others		Provision
for
credit
losses		Assets at
December 31, 2022		Capital
expenditures
North America$1,112 $411 $181 $381 $11 $15,229 $652 
EAME207 5 45 41 49 5,067 101 
Asia/Pacific216 104 55 4 5 3,921 6 
Latin America204 65 98 7 (3)2,636 21 
Mining218 66 29 109 (14)2,700 83 
Power41 35 10 2 (14)704 — 
Total Segments1,998 686 418 544 34 30,257 863 
Unallocated21 (222)138 — — 1,628 6 
Timing(9)3 — — — 18 — 
Methodology— 113 (179)— — 278 — 
Inter-segment Eliminations (1)
— — — — — (224)— 
Total$2,010 $580 $377 $544 $34 $31,957 $869 
 (1) Elimination is primarily related to intercompany loans