Sales and Revenue Contract Information |
6 Months Ended |
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Jun. 30, 2026 | |
| Revenue from Contract with Customer [Abstract] | |
| Sales and Revenue Contract Information | Sales and revenue contract information Trade receivables represent amounts due from dealers and end users for the sale of our products, and include amounts due from wholesale inventory financing provided by Cat Financial for a dealer’s purchase of inventory. We recognize trade receivables from dealers and end users in Receivables – trade and other and Long-term receivables – trade and other in the Consolidated Statement of Financial Position. Trade receivables from dealers and end users were $10,920 million, $9,402 million and $7,864 million as of June 30, 2026, December 31, 2025 and December 31, 2024, respectively. Long-term trade receivables from dealers and end users were $1,274 million, $1,006 million and $640 million as of June 30, 2026, December 31, 2025 and December 31, 2024, respectively. For certain contracts, we invoice for payment when contractual milestones are achieved. We recognize a contract asset when a sale is recognized before achieving the contractual milestone for invoicing. We reduce the contract asset when we invoice for payment and recognize a corresponding trade receivable. Contract assets are included in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position. Contract assets were $277 million, $297 million and $238 million as of June 30, 2026, December 31, 2025 and December 31, 2024, respectively. We invoice in advance of recognizing the sale of certain products. We recognize advanced customer payments as a contract liability in Customer advances and Other liabilities in the Consolidated Statement of Financial Position. Contract liabilities were $7,280 million, $4,678 million and $2,745 million as of June 30, 2026, December 31, 2025 and December 31, 2024, respectively. We reduce the contract liability when revenue is recognized. During the three and six months ended June 30, 2026, we recognized $507 million and $1,267 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2026. During the three and six months ended June 30, 2025, we recognized $462 million and $1,145 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2025. We provide discounts to dealers through merchandising programs. We have numerous programs that are designed to promote the sale of our products. The most common dealer programs provide a discount when the dealer sells a product to a targeted end user. We report the estimated cost of these discounts as a reduction to the transaction price when we recognize the product sale. We accrue a corresponding post-sale discount reserve in the Consolidated Statement of Financial Position, which represents discounts we expect to pay on units sold. If discounts paid differ from those estimated, we report the difference as a change in the transaction price in the subsequent period when the final discount is paid. As a result of differences between actual and estimated payments and changes in estimates, we recognized a decrease in revenue of $201 million and $454 million during the three and six months ended June 30, 2025, respectively, related to prior period sales. The change in revenue during the three and six months ended June 30, 2026 related to prior period sales was inconsequential. As of June 30, 2026, we have entered into contracts with dealers and end users for which sales have not been recognized as we have not satisfied our performance obligations and transferred control of the products. The dollar amount of unsatisfied performance obligations for contracts with an original duration greater than one year is $44.1 billion, with about one-third of the amount expected to be completed and revenue recognized in the twelve months following June 30, 2026. We have elected the practical expedient not to disclose unsatisfied performance obligations with an original contract duration of one year or less. Contracts with an original duration of one year or less are primarily sales to dealers for machinery, engines and replacement parts. See Note 16 for further disaggregated sales and revenues information.
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