Acquisitions |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Business Combination [Abstract] | |
| Acquisitions | Acquisitions RPMGlobal On February 17, 2026, Caterpillar completed the acquisition of RPMGlobal Holdings Limited (RPMGlobal), an Australian based software company. Headquartered in Brisbane, Australia, RPMGlobal is a leading provider of mining software solutions. RPMGlobal has deep domain expertise in mining technology enablement, providing global customers with data-driven software solutions at every stage of the mining lifecycle. The acquisition, within the Resource Industries segment, aligns with our strategy of providing customers with expanded product offerings including advanced technology solutions. The purchase price was approximately $733 million, net of $53 million of acquired cash. We financed the transaction with available cash. As of the acquisition date, the tangible assets acquired were $78 million which were recorded at their fair values and primarily included cash of $53 million and receivables of $18 million. Finite-lived intangible assets acquired included $110 million related to developed intellectual property, customer relationships of $85 million and trade names of $5 million, each of which were recorded at their acquisition date fair value. These intangible assets will be amortized on a straight-line basis over a weighted-average useful life of approximately 10 years. Liabilities assumed as of the acquisition date were approximately $38 million. Goodwill of $546 million, which is expected to be deductible for income tax purposes, represented the excess of the consideration transferred over the net assets acquired and is attributable to the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Factors that contributed to a purchase price resulting in the recognition of goodwill included RPMGlobal’s strategic fit into our Resource Industries product portfolio and related cross-selling opportunities, the ability to provide enhanced technological solutions to mining customers and the acquired assembled workforce. These values represent a preliminary allocation of the purchase price subject to finalization of fair value appraisals and post-closing procedures. The results of the acquired business from the acquisition date are included in the accompanying consolidated financial statements and reported in the Resource Industries segment in Note 16. Assuming this transaction had been made at the beginning of any period presented, the consolidated pro forma results would not be materially different from reported results.
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