v3.26.3
Segment Information
 9 Months Ended
Sep. 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 primarily to 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, except where hedging specific segment exposures.
Supplemental segment data and reconciliations to consolidated external reporting for the three months ended September 30 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$584 $222 $131 $46 $44 $3 $138 
EAME112 41 12 23 3 — 33 
Asia/Pacific74 31 2 20 6 — 15 
Latin America109 53 2 16 10 1 27 
Mining104 30 37 10 (3)2 28 
Power22 11 — 2 8 — 1 
Total Segments1,005 388 184 117 68 6 242 
Unallocated22 145 — 46 — 5 (174)
Timing(6)— — (9)— — 3 
Methodology— (136)— 4 — 9 123 
Total$1,021 $397 $184 $158 $68 $20 $194 
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$533 $183 $127 $48 $26 $4 $145 
EAME101 33 13 22 4 1 28 
Asia/Pacific66 26 — 21 3 1 15 
Latin America103 52 3 15 — 1 32 
Mining91 28 30 11 1 (1)22 
Power19 10 — 3 — — 6 
Total Segments913 332 173 120 34 6 248 
Unallocated17 145 — 47 — — (175)
Timing(4)— — (6)— — 2 
Methodology— (119)— 4 — 6 109 
Total$926 $358 $173 $165 $34 $12 $184 
(1)    Other segment items are primarily costs related to repossessed and returned equipment.
Supplemental segment data and reconciliations to consolidated external reporting for the nine months ended September 30 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$1,713 $623 $394 $144 $89 $11 $452 
EAME323 110 36 70 8 2 97 
Asia/Pacific212 87 5 59 14 1 46 
Latin America307 154 6 49 13 6 79 
Mining300 88 104 30 11 1 66 
Power59 30 — 8 3 — 18 
Total Segments2,914 1,092 545 360 138 21 758 
Unallocated61 427 — 151 — 20 (537)
Timing(16)— — (26)— — 10 
Methodology— (392)— 10 — 18 364 
Total$2,959 $1,127 $545 $495 $138 $59 $595 
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$1,553 $525 $378 $144 $69 $11 $426 
EAME290 100 38 66 5 3 78 
Asia/Pacific194 74 3 57 4 1 55 
Latin America275 136 8 45 3 4 79 
Mining279 82 93 30 2 — 72 
Power55 30 — 9 (1)— 17 
Total Segments2,646 947 520 351 82 19 727 
Unallocated51 406 — 143 — — (498)
Timing(12)— — (16)— — 4 
Methodology— (328)— 10 — 10 308 
Total$2,685 $1,025 $520 $488 $82 $29 $541 
(1)    Other segment items are primarily costs related to repossessed and returned equipment.
(Millions of dollars)Assets as of
September 30, 2026December 31, 2025
North America$21,629 $19,738 
EAME5,917 5,638 
Asia/Pacific3,600 3,564 
Latin America3,426 2,921 
Mining3,558 3,325 
Power1,314 1,017 
Total Segments39,444 36,203 
Unallocated2,177 2,128 
Timing(20)32 
Methodology(126)148 
Inter-segment Eliminations(1)
(114)(198)
Total$41,361 $38,313 
(1)    Eliminations are primarily related to intercompany loans.
(Millions of dollars)
Capital Expenditures(1)
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
North America$262 $229 $706 $663 
EAME27 19 58 44 
Asia/Pacific12 8 35 16 
Latin America— 6 7 7 
Mining26 89 223 149 
Total Segments327 351 1,029 879 
Unallocated2 8 17 29 
Total$329 $359 $1,046 $908 
(1)    Capital expenditures include expenditures for equipment on operating leases and other miscellaneous capital expenditures.