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Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
A.     Basis for Segment Information

Our executive office is comprised of our Chief Executive Officer (CEO), who is our Chief Operating Decision Maker (CODM) and five Vice Presidents. Each of our regional operating segments: North America, EAME, Asia/Pacific, and Latin America is led by a Vice President. The Mining and Power operating segments are led by one Vice President. Our CEO allocates resources and manages operating performance at the Vice President level.

B.    Description of Segments

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.

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 to large power customers related to 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

We determine segment profit on a pretax basis. Cash, debt and other expenses are allocated to our segments based on their respective portfolios. Interest expense is calculated based on the amount of allocated debt and the rates associated with that debt using a consistent leverage ratio.

Our CODM uses segment profit to evaluate the performance of each segment by monitoring key performance metrics to identify trends and evaluate which segments require additional resources or strategic adjustments. The CODM also uses segment profit to support the allocation of resources predominantly in the annual budget and forecasting process and monitors forecast-to-actual variances monthly.

Reconciling items are created based on accounting differences between segment reporting and consolidated external reporting. The following is a list of significant reconciling items:

•Unallocated - Corporate requirements and strategies that are considered to be for the benefit of the entire organization including notes receivable from Caterpillar. Also included are the consolidated results of the special-purpose corporation (SPC) (see Note 7 for additional information).
•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:
◦The impact of differences between the actual leverage and the segment leverage ratios.
◦Interest expense includes realized forward points on foreign currency forward contracts within segment reporting.
◦Segment results include off-balance sheet managed assets for which we maintain servicing responsibilities.
◦Designated derivative activity is excluded from segment results.
Supplemental segment data and reconciliations to consolidated external reporting for the three months ended March 31 were as follows:
(Millions of dollars)

 
2025
External
revenues		Interest expenseDepreciation on equipment leased to othersGeneral, operating and administrative expensesProvision
for
credit
losses
Other segment items(1)
Profit before income taxes
North America$500 $170 $125 $48 $19 $3 $135 
EAME93 33 12 19 1 1 27 
Asia/Pacific62 24 1 17 1 — 19 
Latin America83 40 3 13 1 1 25 
Mining93 27 32 10 9 (1)16 
Power17 10 — 3 (2)— 6 
Total Segments848 304 173 110 29 4 228 
Unallocated17 126 — 44 — — (153)
Timing(5)— — (5)— — — 
Methodology— (105)— 2 — 4 99 
Total$860 $325 $173 $151 $29 $8 $174 
2024External
revenues		Interest expenseDepreciation on equipment leased to othersGeneral, operating and administrative expensesProvision
for
credit
losses
Other segment items(1)
Profit before income taxes
North America$485 $143 $129 $46 $19 $4 $144 
EAME92 33 14 22 (8)1 30 
Asia/Pacific66 26 1 19 (1)— 21 
Latin America85 40 3 14 (2)1 29 
Mining92 24 33 3 — — 26 
Power15 7 1 9 (1)— 5 
Total Segments835 273 181 113 7 6 255 
Unallocated22 113 — 43 — (30)(104)
Timing(4)— — (4)— — — 
Methodology— (88)— 2 — 8 78 
Total$853 $298 $181 $154 $7 $(16)$229 
(1)    Other segment items are primarily costs related to repossessed and returned equipment.

(Millions of dollars)Assets as of
Capital Expenditures(1)
March 31, 2025December 31, 202420252024
North America$17,948 $17,800 $134 $161 
EAME4,907 4,668 14 8 
Asia/Pacific3,272 3,276 4 2 
Latin America2,533 2,423 1 8 
Mining3,268 3,306 6 49 
Power868 812 — — 
Total Segments$32,796 $32,285 $159 $228 
Unallocated1,813 1,921 11 5 
Timing(8)(12)— — 
Methodology64 128 — — 
Inter-segment Eliminations(2)
(242)(238)— — 
Total$34,423 $34,084 $170 $233 
(1)    Capital expenditures include expenditures for equipment on operating leases and other miscellaneous capital expenditures.
(2)    Eliminations are primarily related to intercompany loans.