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Segment Information
 9 Months Ended
Sep. 30, 2024
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 below. 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 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.
•Divestiture - Loss on divestiture included in Other income (expense). See Note 10 for more information.
Supplemental segment data and reconciliations to consolidated external reporting for the three months ended September 30 were as follows:
(Millions of dollars)

 
2024
External
revenues		Profit
before
income
taxes		Interest
expense		Depreciation
on equipment
leased to
others		Provision
for
credit
losses
Assets at
September 30, 2024
Capital
expenditures
North America$513 $159 $165 $128 $9 $17,353 $197 
EAME98 23 39 14 1 4,998 20 
Asia/Pacific68 24 25 1 — 3,498 4 
Latin America83 32 38 3 (3)2,531 3 
Mining94 11 28 33 11 3,366 30 
Power16 3 9 1 1 747 — 
Total Segments872 252 304 180 19 32,493 254 
Unallocated21 (160)128 — — 1,997 10 
Timing(5)(1)— — — (18)— 
Methodology— 91 (96)— — 113 — 
Divestiture— — — — — — — 
Inter-segment Eliminations (1)
— — — — — (259)— 
Total$888 $182 $336 $180 $19 $34,326 $264 
2023External
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$459 $144 $128 $130 $10 $16,303 $274 
EAME102 35 26 14 1 5,117 14 
Asia/Pacific70 19 32 2 1 3,435 — 
Latin America95 15 48 3 13 2,583 3 
Mining86 17 23 32 5 3,059 49 
Power15 (1)7 1 4 662 — 
Total Segments827 229 264 182 34 31,159 340 
Unallocated23 (137)108 — 1 2,054 1 
Timing(4)1 — — — 20 — 
Methodology— 77 (92)— — 145 — 
Inter-segment Eliminations (1)
— — — — — (266)— 
Total$846 $170 $280 $182 $35 $33,112 $341 
 (1) Eliminations are primarily related to intercompany loans.
Supplemental segment data and reconciliations to consolidated external reporting for the nine months ended September 30 were as follows:

(Millions of dollars)


2024
External
revenues		Profit
before
income
taxes		Interest
expense		Depreciation
on equipment
leased to
others		Provision
for
credit
losses
Assets at
September 30, 2024
Capital
expenditures
North America$1,491 $451 $460 $385 $43 $17,353 $608 
EAME283 75 108 41 (11)4,998 39 
Asia/Pacific202 70 73 3 (2)3,498 8 
Latin America252 84 116 10 — 2,531 15 
Mining279 55 77 100 16 3,366 129 
Power46 27 24 2 (14)747 — 
Total Segments2,553 762 858 541 32 32,493 799 
Unallocated65 (406)360 — — 1,997 18 
Timing(12)— — — — (18)— 
Methodology— 247 (269)— — 113 — 
Divestiture— (210)— — — — — 
Inter-segment Eliminations (1)
— — — — — (259)— 
Total$2,606 $393 $949 $541 $32 $34,326 $817 
2023External
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$1,313 $447 $331 $380 $17 $16,303 $789 
EAME274 79 72 43 3 5,117 50 
Asia/Pacific213 86 78 4 (3)3,435 2 
Latin America264 81 132 9 (2)2,583 13 
Mining253 76 56 94 (2)3,059 168 
Power43 3 19 2 9 662 — 
Total Segments2,360 772 688 532 22 31,159 1,022 
Unallocated58 (378)279 — 1 2,054 7 
Timing(11)1 — — — 20 — 
Methodology— 184 (225)— — 145 — 
Inter-segment Eliminations (1)
— — — — — (266)— 
Total$2,407 $579 $742 $532 $23 $33,112 $1,029 
 (1) Eliminations are primarily related to intercompany loans.