XML 36 R22.htm IDEA: XBRL DOCUMENT v3.24.0.1
Segment and Geographic Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment and Geographic Information SEGMENT AND GEOGRAPHIC 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, revolving charge accounts, 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 - Corporate requirements and strategies that are considered to be for the benefit of the entire organization. Also included are the consolidated results of the SPC (see Note 10 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)

 
2023
External
revenues		Profit
before
income
taxes		Interest
expense		Depreciation
on equipment
leased to
others		Provision
for
credit
losses
Assets at
December 31, 2023
Capital
expenditures
North America$1,786 $596 $463 $512 $32 $16,303 $961 
EAME368 101 103 57 3 5,117 73 
Asia/Pacific278 105 102 4 (2)3,435 4 
Latin America348 103 174 12 1 2,583 21 
Mining341 99 80 126 (2)3,059 229 
Power58 (1)26 2 16 662 — 
Total Segments3,179 1,003 948 713 48 31,159 1,288 
Unallocated83 (507)394 — 1 2,054 9 
Timing(14)2 — — — 20 — 
Methodology— 262 (309)— — 145 — 
Inter-segment Eliminations (1)
— — — — — (266)— 
Total$3,248 $760 $1,033 $713 $49 $33,112 $1,297 


 
2022
External
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$1,512 $550 $263 $503 $25 $15,229 $862 
EAME285 12 79 55 49 5,067 117 
Asia/Pacific283 134 73 5 6 3,921 6 
Latin America284 85 136 10 7 2,636 25 
Mining294 63 42 143 9 2,700 120 
Power53 37 15 2 (15)704 — 
Total Segments2,711 881 608 718 81 30,257 1,130 
Unallocated35 (312)204 — — 1,628 9 
Timing(12)4 — — — 18 — 
Methodology— 158 (246)— — 278 — 
Inter-segment Eliminations (1)
— — — — — (224)— 
Total$2,734 $731 $566 $718 $81 $31,957 $1,139 

 

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 
Power52 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 
(1) Elimination is primarily related to intercompany loans.
Geographic information: 
(Millions of dollars)202320222021
Revenues   
Inside U.S.$1,879 $1,551 $1,422 
All other1,369 1,183 1,140 
Total$3,248 $2,734 $2,562 
Equipment on operating leases, net and property
  and equipment, net (included in Other assets)		20232022
Inside U.S.$2,066 $2,036 
Inside Canada539 507 
All other544 500 
Total$3,149 $3,043