Segment Information

6 Months Ended

Jun. 30, 2026

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 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 worldwide for large mining customers.

•Power - Provides financing worldwide to large power customers of 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 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 June 30 were as follows:

(Millions of dollars) 2026	External revenues		Interest expense		Depreciation on equipment leased to others		General, operating and administrative expenses		Provision for credit losses		Other segment items(1)		Profit before income taxes
North America	$	575	$	205	$	132	$	48	$	24	$	4	$	162
EAME	108		37		11		25		3		—		32
Asia/Pacific	72		28		1		20		4		1		18
Latin America	103		51		2		17		1		4		28
Mining	99		29		35		8		10		(1)		18
Power	19		10		—		3		(1)		—		7
Total Segments	976		360		181		121		41		8		265
Unallocated	20		142		—		49		—		12		(183)
Timing	(5)		—		—		(10)		—		—		5
Methodology	—		(128)		—		4		—		5		119
Total	$	991	$	374	$	181	$	164	$	41	$	25	$	206
2025	External revenues		Interest expense		Depreciation on equipment leased to others		General, operating and administrative expenses		Provision for credit losses		Other segment items(1)		Profit before income taxes
North America	$	520	$	172	$	126	$	48	$	24	$	4	$	146
EAME	96		34		13		25		—		1		23
Asia/Pacific	66		24		2		19		—		—		21
Latin America	89		44		2		17		2		2		22
Mining	95		27		31		9		(8)		2		34
Power	19		10		—		3		1		—		5
Total Segments	885		311		174		121		19		9		251
Unallocated	17		135		—		52		—		—		(170)
Timing	(3)		—		—		(5)		—		—		2
Methodology	—		(104)		—		4		—		—		100
Total	$	899	$	342	$	174	$	172	$	19	$	9	$	183

(1)    Other segment items are primarily costs related to repossessed and returned equipment.

Supplemental segment data and reconciliations to consolidated external reporting for the six months ended June 30 were as follows:

(Millions of dollars) 2026	External revenues		Interest expense		Depreciation on equipment leased to others		General, operating and administrative expenses		Provision for credit losses		Other segment items(1)		Profit before income taxes
North America	$	1,129	$	401	$	263	$	98	$	45	$	8	$	314
EAME	211		69		24		47		5		2		64
Asia/Pacific	138		56		3		39		8		1		31
Latin America	198		101		4		33		3		5		52
Mining	196		58		67		20		14		(1)		38
Power	37		19		—		6		(5)		—		17
Total Segments	1,909		704		361		243		70		15		516
Unallocated	39		282		—		105		—		15		(363)
Timing	(10)		—		—		(17)		—		—		7
Methodology	—		(256)		—		6		—		9		241
Total	$	1,938	$	730	$	361	$	337	$	70	$	39	$	401
2025	External revenues		Interest expense		Depreciation on equipment leased to others		General, operating and administrative expenses		Provision for credit losses		Other segment items(1)		Profit before income taxes
North America	$	1,020	$	342	$	251	$	96	$	43	$	7	$	281
EAME	189		67		25		44		1		2		50
Asia/Pacific	128		48		3		36		1		—		40
Latin America	172		84		5		30		3		3		47
Mining	188		54		63		19		1		1		50
Power	36		20		—		6		(1)		—		11
Total Segments	1,733		615		347		231		48		13		479
Unallocated	34		261		—		96		—		—		(323)
Timing	(8)		—		—		(10)		—		—		2
Methodology	—		(209)		—		6		—		4		199
Total	$	1,759	$	667	$	347	$	323	$	48	$	17	$	357

(1)    Other segment items are primarily costs related to repossessed and returned equipment.

(Millions of dollars)	Assets as of
	June 30, 2026		December 31, 2025
North America	$	21,157	$	19,738
EAME	5,717		5,638
Asia/Pacific	3,778		3,564
Latin America	3,159		2,921
Mining	3,379		3,325
Power	1,084		1,017
Total Segments	38,274		36,203
Unallocated	2,275		2,128
Timing	(20)		32
Methodology	37		148
Inter-segment Eliminations(1)	(109)		(198)
Total	$	40,457	$	38,313

(1)    Eliminations are primarily related to intercompany loans.

(Millions of dollars)	Capital Expenditures(1)
	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
North America	$	281	$	300	$	444	$	434
EAME	18		11		31		25
Asia/Pacific	7		4		23		8
Latin America	3		—		7		1
Mining	138		54		197		60
Total Segments	447		369		702		528
Unallocated	5		10		15		21
Total	$	452	$	379	$	717	$	549

(1)    Capital expenditures include expenditures for equipment on operating leases and other miscellaneous capital expenditures.