v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 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 March 31 were as follows:
(Millions of dollars)

 
2026
External revenuesInterest expenseDepreciation on equipment leased to othersGeneral, operating and administrative expensesProvision for credit losses
Other segment items(1)
Profit before income taxes
North America$554 $196 $131 $50 $21 $4 $152 
EAME103 32 13 22 2 2 32 
Asia/Pacific66 28 2 19 4 — 13 
Latin America95 50 2 16 2 1 24 
Mining97 29 32 12 4 — 20 
Power18 9 — 3 (4)— 10 
Total Segments933 344 180 122 29 7 251 
Unallocated19 140 — 56 — 3 (180)
Timing(5)— — (7)— — 2 
Methodology— (128)— 2 — 4 122 
Total$947 $356 $180 $173 $29 $14 $195 
2025External revenuesInterest 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 
(1)    Other segment items are primarily costs related to repossessed and returned equipment.
(Millions of dollars)Assets as of
March 31, 2026December 31, 2025
North America$19,928 $19,738 
EAME5,362 5,638 
Asia/Pacific3,549 3,564 
Latin America2,908 2,921 
Mining3,423 3,325 
Power1,009 1,017 
Total Segments36,179 36,203 
Unallocated2,171 2,128 
Timing(1)32 
Methodology71 148 
Inter-segment Eliminations(1)
(257)(198)
Total$38,163 $38,313 
(1)    Eliminations are primarily related to intercompany loans.
(Millions of dollars)
Capital Expenditures(1)
Three Months Ended March 31,
20262025
North America$163 $134 
EAME13 14 
Asia/Pacific16 4 
Latin America4 1 
Mining59 6 
Total Segments255 159 
Unallocated10 11 
Total$265 $170 
(1)    Capital expenditures include expenditures for equipment on operating leases and other miscellaneous capital expenditures.