CATERPILLAR FINANCIAL SERVICES CORP, 10-K filed on 2/14/2025
Annual Report
v3.25.0.1
Cover Page - USD ($)
 12 Months Ended
Dec. 31, 2024
Feb. 14, 2025
Cover [Abstract]    
Document Type 10-K  
Document Annual Report true  
Document Period End Date Dec. 31, 2024  
Document Transition Report false  
Entity File Number 001-11241  
Entity Registrant Name CATERPILLAR FINANCIAL SERVICES CORPORATION  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 37-1105865  
Entity Address, Address Line One 2120 West End Ave.  
Entity Address, City or Town Nashville  
Entity Address, State or Province TN  
Entity Address, Postal Zip Code 37203-0001  
City Area Code 615  
Local Phone Number 341-1000  
Title of 12(b) Security Medium-Term Notes, Series K,4.850% Notes Due 2029  
Trading Symbol CAT/29  
Security Exchange Name NYSE  
Entity Well-known Seasoned Issuer Yes  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Document Financial Statement Error Correction [Flag] false  
Entity Shell Company false  
Entity Public Float $ 0  
Entity Common Stock, Shares Outstanding   1
Entity Central Index Key 0000764764  
Current Fiscal Year End Date --12-31  
Document Fiscal Period Focus FY  
Document Fiscal Year Focus 2024  
Amendment Flag false  
ICFR Auditor Attestation Flag true  
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Audit Information
 12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Nashville, Tennessee
Auditor Firm ID 238
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Consolidated Statements of Profit - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenues:      
Retail finance $ 1,689 $ 1,464 $ 1,229
Operating lease 936 905 888
Wholesale finance 706 684 441
Other, net 158 195 176
Total revenues 3,489 3,248 2,734
Expenses:      
Interest 1,287 1,033 566
Depreciation on equipment leased to others 722 713 718
General, operating and administrative 644 588 531
Provision for credit losses 75 49 81
Other 36 33 24
Total expenses 2,764 2,416 1,920
Other income (expense) (192) (72) (83)
Profit before income taxes 533 760 731
Provision (benefit) for income taxes (66) 192 189
Profit of consolidated companies 599 568 542
Less:  Profit attributable to noncontrolling interests 1 5 7
Profit attributable to Caterpillar Financial Services Corporation $ 598 $ 563 $ 535
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Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Profit of consolidated companies $ 599 $ 568 $ 542
Other comprehensive income (loss), net of tax (Note 8):      
Foreign currency translation (260) 67 (318)
Derivative financial instruments 6 (3) 33
Total Other comprehensive income (loss), net of tax (254) 64 (285)
Comprehensive income (loss) 345 632 257
Less: Comprehensive income (loss) attributable to noncontrolling interests 1 0 (5)
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation $ 344 $ 632 $ 262
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Consolidated Statements of Financial Position - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Assets:    
Cash and cash equivalents $ 599 $ 727
Finance receivables, net of allowance for credit losses of $267 and $331 28,964 27,746
Notes receivable from Caterpillar 559 527
Equipment on operating leases, net 2,780 3,014
Other assets 1,182 1,098
Total assets 34,084 33,112
Liabilities and shareholder’s equity:    
Payable to dealers and others 137 157
Payable to Caterpillar – borrowings and other 128 137
Accrued expenses 489 511
Short-term borrowings 4,393 4,643
Current maturities of long-term debt 6,619 7,719
Long-term debt 18,787 15,893
Other liabilities 641 882
Total liabilities 31,194 29,942
Commitments and contingent liabilities (Note 9)
Common stock - $1 par value Authorized: 2,000 shares; Issued and outstanding: one share (at paid-in amount) 745 745
Additional paid-in capital 2 2
Retained earnings 3,300 3,327
Accumulated other comprehensive income (loss) (1,232) (978)
Noncontrolling interests 75 74
Total shareholder’s equity 2,890 3,170
Total liabilities and shareholder’s equity $ 34,084 $ 33,112
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Consolidated Statements of Financial Position (Parentheticals) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Allowance for credit losses $ 267 $ 331
Shareholder's Equity:    
Common stock - par value $ 1 $ 1
Common stock - authorized 2,000 2,000
Common stock - issued 1 1
Common stock - outstanding 1 1
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Consolidated Statements of Changes in Shareholder's Equity - USD ($)
$ in Millions
Total
Common stock
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income (loss)
Noncontrolling interests
Balance at Dec. 31, 2021 $ 2,981 $ 745 $ 2 $ 2,849 $ (774) $ 159
Increase (Decrease) in Shareholder's Equity [Roll Forward]            
Profit of consolidated companies 542     535   7
Dividend paid to Caterpillar (275)     (275)    
Foreign currency translation, net of tax (318)       (306) (12)
Derivative financial instruments, net of tax 33       33  
Balance at Dec. 31, 2022 2,963 745 2 3,109 (1,047) 154
Increase (Decrease) in Shareholder's Equity [Roll Forward]            
Profit of consolidated companies 568     563   5
Dividend paid to Caterpillar (425)     (345)   (80)
Foreign currency translation, net of tax 67       72 (5)
Derivative financial instruments, net of tax (3)       (3)  
Balance at Dec. 31, 2023 3,170 745 2 3,327 (978) 74
Increase (Decrease) in Shareholder's Equity [Roll Forward]            
Profit of consolidated companies 599     598   1
Dividend paid to Caterpillar (625)     (625)    
Foreign currency translation, net of tax (260)       (260)  
Derivative financial instruments, net of tax 6       6  
Balance at Dec. 31, 2024 $ 2,890 $ 745 $ 2 $ 3,300 $ (1,232) $ 75
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Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:      
Profit of consolidated companies $ 599 $ 568 $ 542
Adjustments to reconcile profit to net cash provided by operating activities:      
Depreciation and amortization 738 728 732
Accretion of Caterpillar purchased receivable revenue (625) (617) (417)
Provision for credit losses 75 49 81
Provision (benefit) for deferred income taxes (284) (7) (26)
Loss on divestiture 210 0 0
Other, net 197 (25) 130
Changes in assets and liabilities:      
Other assets 195 112 146
Payable to dealers and others (42) 29 38
Accrued expenses 54 77 20
Other payables with Caterpillar 14 12 27
Other liabilities 68 (122) (18)
Net cash provided by operating activities 1,199 804 1,255
Cash flows from investing activities:      
Expenditures for equipment on operating leases (1,045) (1,277) (1,121)
Capital expenditures - excluding equipment on operating leases (40) (20) (18)
Proceeds from disposals of equipment 629 668 756
Additions to finance receivables (16,833) (17,250) (14,217)
Collections of finance receivables 14,706 15,613 14,061
Net changes in Caterpillar purchased receivables 129 1,080 492
Proceeds from sale of business, net of cash sold (153) 0 0
Proceeds from sales of receivables 83 63 57
Net change in variable lending to Caterpillar (31) (77) (2)
Additions to other notes receivable from Caterpillar (59) (19) (139)
Collections of other notes receivable from Caterpillar 56 52 46
Settlements of undesignated derivatives 47 (10) (87)
Net cash provided by (used for) investing activities (2,511) (1,177) (172)
Cash flows from financing activities:      
Net change in variable lending from Caterpillar (14) 1 0
Proceeds from debt issued (original maturities greater than three months) 10,283 8,277 6,674
Payments on debt issued (original maturities greater than three months) (8,284) (6,232) (7,703)
Short-term borrowings, net (original maturities three months or less) (168) (1,342) 540
Dividend paid to Caterpillar (625) (425) (275)
Net cash provided by (used for) financing activities 1,192 279 (764)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (9) (47) (63)
Increase (decrease) in cash, cash equivalents and restricted cash (129) (141) 256
Cash, cash equivalents and restricted cash at beginning of year 729 870 614
Cash, cash equivalents and restricted cash at end of year 600 729 870
Cash paid for interest 1,235 960 544
Cash paid for taxes, net 140 210 254
Restricted cash and cash equivalents $ 1 $ 2 $ 2
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Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Significant Accounting Policies SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
A. Nature of Operations
 
Caterpillar Financial Services Corporation was organized in 1981 in the State of Delaware (together with its subsidiaries, “Cat Financial,” “the Company,” “we” or “our”). We are a wholly-owned finance subsidiary of Caterpillar Inc. (together with its other subsidiaries, “Caterpillar” or “Cat”).

We provide retail and wholesale financing alternatives to customers and dealers around the world for Caterpillar products and services, as well as financing for power generation facilities that, in most cases, incorporate Caterpillar products. Retail financing is primarily comprised of installment sale contracts and other equipment-related loans, working capital loans, finance leases, operating leases and revolving charge accounts. Wholesale financing to Caterpillar dealers consists primarily of inventory and rental fleet financing. In addition, we purchase short-term wholesale trade receivables from Caterpillar. The various financing plans offered by Cat Financial are designed to support sales of Caterpillar products and generate financing income for Cat Financial. We conduct a significant portion of our activities in North America with additional offices and subsidiaries in Latin America, Asia/Pacific, Europe and Africa.

B. Basis of Presentation
 
The accompanying consolidated financial statements include the accounts of Cat Financial and a consolidated variable interest entity (VIE). We consolidate all VIEs where we are the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. Please refer to Note 9 for more information.

We have customers and dealers that are VIEs of which we are not the primary beneficiary. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. Credit risk was evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses.

C. Finance Receivables

Finance receivables are generally classified as held for investment and recorded at amortized cost given that we have the intent and ability to hold them for the foreseeable future. Amortized cost is the principal balance outstanding plus accrued interest less write-downs, net of unamortized purchase discounts and deferred fees and costs.

D. Revenue Recognition
 
We record finance revenue over the life of the related finance receivables using the interest method, including the accretion of purchased receivables discount and related fee revenue, upfront fees and certain direct origination costs that are deferred. Operating lease revenue is recorded on a straight-line basis over the term of the lease.

We suspend recognition of finance revenue and operating lease revenue and place the account on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). We resume recognition of revenue, and recognize previously suspended income, when we consider collection of remaining amounts to be probable.

Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. We write off interest earned but uncollected prior to the receivables being placed on non-accrual status through Provision for credit losses when, in the judgment of management, we consider it to be uncollectible.
 
We participate in certain marketing programs offered in conjunction with Caterpillar and/or Caterpillar dealers that allow us to periodically offer financing to customers at interest rates that are below market rates. Under these marketing programs, Caterpillar and/or the dealer funds an amount at the outset of the transaction, which we then recognize as finance revenue over the term of the financing. The funds we receive from Caterpillar and/or the dealer equal an amount that when combined with the customer’s contractual interest provides us with a market interest rate.
Other revenue includes: (1) late charges, (2) fee revenue, primarily commitment fees, (3) gains and losses on sales of returned or repossessed equipment, (4) impairments on returned or repossessed equipment held for sale, (5) gains and losses on loan and lease sales and (6) other miscellaneous revenues. Other revenue items are recognized in accordance with relevant authoritative pronouncements.

E. Equipment on Operating Leases

We typically pay property taxes on operating leases directly to the taxing authorities and invoice the lessee for reimbursement. These property tax reimbursements are accounted for as variable lease payments and are included in Operating lease revenues in the Consolidated Statements of Profit. We individually assess our operating lease receivables for impairment. If collectability of a recorded operating lease receivable is not considered probable, we recognize a current-period adjustment against operating lease revenue.

F. Depreciation
 
We recognize depreciation for equipment on operating leases using the straight-line method over the lease term, typically one to seven years. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term.
 
G. Residual Values
 
The residual values for operating leases are included in Equipment on operating leases, net in the Consolidated Statements of Financial Position. The residual values for finance leases are included in Finance receivables, net in the Consolidated Statements of Financial Position.

During the term of our leases, we monitor residual values. For operating leases, we record adjustments to depreciation expense reflecting changes in residual value estimates prospectively on a straight-line basis. For finance leases, we recognize residual value adjustments through a reduction of finance revenue over the remaining lease term.

We evaluate the carrying value of equipment on operating leases for potential impairment when we determine a triggering event has occurred. When a triggering event occurs, we perform a test for recoverability by comparing projected undiscounted future cash flows to the carrying value of the equipment on operating leases. If the test for recoverability identifies a possible impairment, we measure the fair value of the equipment on operating leases in accordance with the fair value measurement framework. We recognize an impairment charge for the amount by which the carrying value of the equipment on operating leases exceeds its estimated fair value.

H. Derivative Financial Instruments
 
Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate and interest rate exposures. Our policy specifies that derivatives are not to be used for speculative purposes. The derivatives that we use are primarily foreign currency forward, option and cross currency contracts and interest rate contracts. All derivatives are recorded at fair value. See Note 7 for additional information.
 
I. Allowance for Credit Losses
 
The allowance for credit losses is management’s estimate of expected losses over the life of our finance receivables portfolio calculated using loss forecast models that take into consideration historical credit loss experience, current economic conditions and forecasts and scenarios that capture country and industry-specific economic factors. In addition, we consider qualitative factors not able to be fully captured in our loss forecast models, including borrower-specific and company-specific factors. These qualitative factors are subjective and require a degree of management judgment.
We measure the allowance for credit losses on a collective (pool) basis when similar risk characteristics exist and on an individual basis when we determine that similar risk characteristics do not exist. We identify finance receivables for individual evaluation based on past-due status and information available about the customer, such as financial statements, news reports and published credit ratings, as well as general information regarding industry trends and the economic environment in which our customers operate. The allowance for credit losses attributable to finance receivables that are individually evaluated is based on the present value of expected future cash flows discounted at the receivables’ effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivables. In determining collateral value, we estimate the current fair market value of the collateral less selling costs. We also consider credit enhancements such as additional collateral and contractual third-party guarantees. See Note 2 for a description of our portfolio segments and allowance methodologies.

Receivable balances, including accrued interest, are written off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible (generally upon repossession of the collateral). Generally, the amount of the write-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost of the receivable. Subsequent recoveries, if any, are credited to the allowance for credit losses when received.

J. Income Taxes
 
We determine the provision for income taxes using the asset and liability approach taking into account guidance related to uncertain tax positions. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. We recognize a current liability for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. We adjust deferred taxes for enacted changes in tax rates and tax laws. We record valuation allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. See Note 10 for further discussion.
 
We join Caterpillar in the filing of a consolidated U.S. Federal income tax return and certain state income tax returns. In accordance with our tax sharing agreement with Caterpillar, we generally pay to or receive from Caterpillar our allocated share of income taxes or credits reflected in these consolidated filings. This amount is calculated on a separate return basis by taking taxable income times the applicable statutory tax rate and includes payment for certain tax attributes earned during the year.
 
K. Foreign Currency Translation
 
The functional currency for most of our subsidiaries is the respective local currency. We include gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency in Other income (expense) in the Consolidated Statements of Profit. We include gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars in Accumulated other comprehensive income (loss) in the Consolidated Statements of Financial Position.
 
L. Estimates in Financial Statements
 
The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts. Significant estimates include residual values for leased assets, allowance for credit losses and income taxes. Actual results may differ from these estimates.

M. New Accounting Pronouncements
 
Adoption of New Accounting Standards

Segment reporting (ASU 2023-07) - In November 2023, the Financial Accounting Standards Board (FASB) issued accounting guidance that requires incremental disclosures related to reportable segments which includes significant segment expense categories and amounts for each reportable segment. The expanded annual disclosures were effective for our year ending December 31, 2024, and the expanded interim disclosures are effective in 2025 and will be applied retrospectively to all prior periods presented.

We consider the applicability and impact of all Accounting Standards Updates (ASUs). We adopted the following ASU effective January 1, 2024, which did not have a material impact on our financial statements:
ASUDescription
2023-01Leases – Common control arrangements
Accounting Standards Issued But Not Yet Adopted

Income tax reporting (ASU 2023-09) - In December 2023, the FASB issued accounting guidance to expand the annual disclosure requirements for income taxes, primarily related to the rate reconciliation and income taxes paid. The expanded disclosures are effective for our year ending December 31, 2025, and can be applied prospectively or retrospectively. We are in the process of evaluating the effect of this new guidance on the related disclosures.

Disaggregation of income statement expenses (ASU 2024-03) - In November 2024, the FASB issued accounting guidance to enhance transparency into the nature and function of income statement expenses. The amendments require that on an annual and interim basis, entities disclose disaggregated operating expense information about specific categories, including employee compensation, depreciation and amortization. The expanded annual disclosures are effective for our year ending December 31, 2027, and the expanded interim disclosures are effective in 2028, with early adoption permitted. We are in the process of evaluating the effect of this new guidance on the related disclosures.

All other ASUs issued but not yet adopted were assessed and determined that they either were not applicable or were not expected to have a material impact on our financial statements.
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Finance Receivables
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Finance Receivables FINANCE RECEIVABLES
A summary of finance receivables included in the Consolidated Statements of Financial Position as of December 31, was as follows:
(Millions of dollars)20242023
Retail loans(1)
$17,331 $16,501 
Retail leases6,380 6,554 
Caterpillar purchased receivables4,283 3,949 
Wholesale loans(1)
1,235 1,069 
Wholesale leases2 4 
Total finance receivables29,231 28,077 
Less: Allowance for credit losses(267)(331)
Total finance receivables, net$28,964 $27,746 
(1) Includes failed sale leasebacks.

Maturities of our finance receivables, as of December 31, 2024, reflect contractual repayments due from borrowers and were as follows:
(Millions of dollars)      
Amounts due inRetail
loans		Retail
leases		Caterpillar
purchased
receivables		Wholesale
loans		Wholesale
leases		Total
2025$7,593 $2,451 $4,317 $885 $1 $15,247 
20264,547 1,711 — 177 — 6,435 
20273,153 1,028 — 137 — 4,318 
20281,764 556 — 8 — 2,328 
2029624 250 — 1 — 875 
Thereafter150 87 — — — 237 
Total17,831 6,083 4,317 1,208 1 29,440 
Guaranteed residual value(1)
6 403 — 31 — 440 
Unguaranteed residual value(1)
2 585 — 2 1 590 
Unearned income(508)(691)(34)(6)— (1,239)
Total$17,331 $6,380 $4,283 $1,235 $2 $29,231 
(1) For Retail loans and Wholesale loans, represents residual value on failed sale leasebacks.
Our finance receivables generally may be repaid or refinanced without penalty prior to contractual maturity and we also sell finance receivables to third parties to mitigate the concentration of credit risk with certain customers.

Finance leases
Revenues from finance leases were $437 million, $419 million and $429 million for the years ended December 31, 2024, 2023, and 2022, respectively, and are included in retail and wholesale finance revenue in the Consolidated Statements of Profit.
Allowance for credit losses 

Portfolio segments
A portfolio segment is the level at which we develop a systematic methodology for determining our allowance for credit losses. Our portfolio segments and related methods for estimating expected credit losses are as follows:

Customer
We provide loans and finance leases to end-user customers primarily for the purpose of financing new and used Caterpillar machinery, engines and equipment for commercial use. We also provide financing for power generation facilities that, in most cases, incorporate Caterpillar products. The average original term of our customer finance receivables portfolio was approximately 51 months with an average remaining term of approximately 27 months as of December 31, 2024.

We typically maintain a security interest in financed equipment and generally require physical damage insurance coverage on the financed equipment, both of which provide us with certain rights and protections. If our collection efforts fail to bring a defaulted account current, we generally can repossess the financed equipment, after satisfying local legal requirements, and sell it within the Caterpillar dealer network or through third-party auctions.

We estimate the allowance for credit losses related to our customer finance receivables based on loss forecast models utilizing probabilities of default and our estimated loss given default based on past loss experience adjusted for current conditions and reasonable and supportable forecasts capturing country and industry-specific economic factors.

During the year ended December 31, 2024, our forecasts reflected a continuation of the trend of historically low unemployment rates as well as weakened global economic growth as central banks take actions aimed at reducing inflation. We believe the economic forecasts employed represent reasonable and supportable forecasts, followed by a reversion to long-term trends.

Dealer
We provide financing to Caterpillar dealers in the form of wholesale financing plans and working capital loans. Our wholesale financing plans provide financing to dealers for their primarily new Caterpillar equipment inventory and rental fleets on a secured and unsecured basis. In addition, we provide a variety of secured and unsecured loans to Caterpillar dealers.
    
We estimate the allowance for credit losses for dealer finance receivables based on historical loss rates with consideration of current economic conditions and reasonable and supportable forecasts.

In general, our Dealer portfolio segment has not historically experienced large increases or decreases in credit losses based on changes in economic conditions due to our close working relationships with the dealers and their financial strength. Therefore, we made no adjustments to historical loss rates during the year ended December 31, 2024.

Caterpillar Purchased Receivables
We purchase receivables from Caterpillar, primarily related to the sale of equipment and parts to dealers. Caterpillar purchased receivables are non-interest-bearing short-term trade receivables that are purchased at a discount.

We estimate the allowance for credit losses for Caterpillar purchased receivables based on historical loss rates with consideration of current economic conditions and reasonable and supportable forecasts.

In general, our Caterpillar Purchased Receivables portfolio segment has not historically experienced large increases or decreases in credit losses based on changes in economic conditions due to the short-term maturities of the receivables, our close working relationships with the dealers and their financial strength. Therefore, we made no adjustments to historical loss rates during the year ended December 31, 2024.
Classes of finance receivables
We further evaluate our portfolio segments by the class of finance receivables, which is defined as a level of information (below a portfolio segment) in which the finance receivables have the same initial measurement attribute and a similar method for assessing and monitoring credit risk. Our classes, which align with management reporting for credit losses, are as follows:

•North America - Finance receivables originated in the United States and Canada.
•EAME - Finance receivables originated in Europe, Africa, the Middle East and Eurasia.
•Asia/Pacific - Finance receivables originated in Australia, New Zealand, China, Japan, Southeast Asia and India.
•Latin America - Finance receivables originated in Mexico and Central and South American countries.
•Mining - Finance receivables related to large mining customers worldwide.
•Power - Finance receivables originated worldwide related to large Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems.

An analysis of the allowance for credit losses as of December 31, was as follows:
(Millions of dollars)20242023
Allowance for Credit Losses:CustomerDealerCaterpillar
Purchased
Receivables		TotalCustomerDealerCaterpillar
Purchased
Receivables		Total
Beginning Balance$276 $51 $4 $331 $277 $65 $4 $346 
Write-offs(125)(47)— (172)(115)— — (115)
Recoveries57 — — 57 50 — — 50 
Provision for credit losses(1)
84 — 1 85 61 (14)— 47 
Other(34)— — (34)3 — — 3 
Ending Balance$258 $4 $5 $267 $276 $51 $4 $331 
Finance Receivables$22,199 $2,749 $4,283 $29,231 $21,177 $2,951 $3,949 $28,077 
(1) Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables.

Gross write-offs by origination year for our Customer portfolio segment were as follows:
(Millions of dollars)Year Ended December 31, 2024
20242023202220212020PriorRevolving
Finance
Receivables		Total
North America$2 $19 $13 $6 $3 $1 $9 $53 
EAME1 4 5 4 2 1 — 17 
Asia/Pacific1 4 5 4 1 1 — 16 
Latin America— 3 6 5 3 8 — 25 
Mining8 3 3 — — — — 14 
Total$12 $33 $32 $19 $9 $11 $9 $125 
Year Ended December 31, 2023
20232022202120202019PriorRevolving Finance ReceivablesTotal
North America$2 $11 $11 $5 $3 $2 $12 $46 
EAME1 5 6 4 1 — — 17 
Asia/Pacific2 5 8 5 1 — — 21 
Latin America— 8 5 6 1 10 — 30 
Power— — — — — 1 — 1 
Total$5 $29 $30 $20 $6 $13 $12 $115 

All $47 million of gross write-offs in the Dealer portfolio segment for the year ended December 31, 2024 were in Latin America and originated prior to 2019.
Credit quality of finance receivables
At origination, we evaluate credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit ratings, loan-to-value ratios, probabilities of default, industry trends, macroeconomic factors and other internal metrics. On an ongoing basis, we monitor credit quality based on past-due status as there is a meaningful correlation between the past-due status of customers and the risk of loss. In determining past-due status, we consider the entire finance receivable past due when any installment is over 30 days past due.

Customer
The aging category of the amortized cost of finance receivables in our Customer portfolio segment by origination year were as follows:
(Millions of dollars)December 31, 2024
20242023202220212020PriorRevolving
Finance
Receivables		Total
Finance
Receivables
North America
Current$5,340 $3,035 $1,567 $980 $244 $23 $385 $11,574 
31-60 days past due30 42 29 18 5 1 3 128 
61-90 days past due9 14 10 6 2 1 1 43 
91+ days past due13 37 26 16 6 2 1 101 
EAME
Current1,244 874 532 285 92 72 — 3,099 
31-60 days past due7 10 4 3 1 — — 25 
61-90 days past due3 4 1 1 1 — — 10 
91+ days past due3 14 8 6 4 1 — 36 
Asia/Pacific
Current1,064 662 313 126 31 4 46 2,246 
31-60 days past due4 6 5 2 — — — 17 
61-90 days past due1 1 2 1 — — — 5 
91+ days past due4 1 2 1 1 — — 9 
Latin America
Current800 363 220 60 8 2 — 1,453 
31-60 days past due4 6 5 1 — 2 — 18 
61-90 days past due1 2 1 — — — — 4 
91+ days past due2 6 8 4 1 1 — 22 
Mining
Current1,067 775 450 214 69 41 21 2,637 
31-60 days past due— 1 — — — — — 1 
61-90 days past due— 1 — — — — — 1 
91+ days past due4 5 5 1 — 3 — 18 
Power
Current190 184 40 43 64 63 166 750 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — — — — — 
91+ days past due— — — — — 2 — 2 
Totals by Aging Category
Current9,705 5,893 3,122 1,708 508 205 618 21,759 
31-60 days past due45 65 43 24 6 3 3 189 
61-90 days past due14 22 14 8 3 1 1 63 
91+ days past due26 63 49 28 12 9 1 188 
Total$9,790 $6,043 $3,228 $1,768 $529 $218 $623 $22,199 
(Millions of dollars)December 31, 2023
20232022202120202019PriorRevolving
Finance
Receivables		Total
Finance
Receivables
North America
Current$4,430 $2,628 $2,000 $745 $220 $32 $312 $10,367 
31-60 days past due28 31 24 14 7 1 4 109 
61-90 days past due10 11 8 4 1 — 2 36 
91+ days past due12 23 18 9 4 1 2 69 
EAME
Current1,336 895 588 258 111 105 — 3,293 
31-60 days past due10 9 7 3 1 — — 30 
61-90 days past due4 3 3 1 1 — — 12 
91+ days past due7 17 15 8 3 1 — 51 
Asia/Pacific
Current1,134 690 368 115 37 7 45 2,396 
31-60 days past due5 7 8 2 — — — 22 
61-90 days past due2 3 3 2 — — — 10 
91+ days past due1 5 3 3 1 — — 13 
Latin America
Current750 520 219 59 23 6 — 1,577 
31-60 days past due9 10 6 1 — — — 26 
61-90 days past due2 4 1 — — — — 7 
91+ days past due2 10 8 5 8 11 — 44 
Mining
Current1,106 694 396 126 86 27 66 2,501 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — 1 1 — 2 
91+ days past due— — 1 — — 1 — 2 
Power
Current152 52 65 75 42 59 162 607 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — — — — — 
91+ days past due— — — — — 3 — 3 
Totals by Aging Category
Current8,908 5,479 3,636 1,378 519 236 585 20,741 
31-60 days past due52 57 45 20 8 1 4 187 
61-90 days past due18 21 15 7 3 1 2 67 
91+ days past due22 55 45 25 16 17 2 182 
Total$9,000 $5,612 $3,741 $1,430 $546 $255 $593 $21,177 

Finance receivables in our Customer portfolio segment are substantially secured by collateral, primarily in the form of Caterpillar and other equipment. For those contracts where the borrower is experiencing financial difficulty, repayment of the outstanding amounts is generally expected to be provided through the operation or repossession and sale of the equipment.

Dealer
As of December 31, 2024, the total amortized cost of finance receivables within our Dealer portfolio segment was current. As of December 31, 2023, the total amortized cost of finance receivables within the Dealer portfolio segment was current, with the exception of $47 million that was 91+ days past due in Latin America, all of which originated prior to 2019.
Caterpillar Purchased Receivables
The aging category of the amortized cost of finance receivables in our Caterpillar Purchased Receivables portfolio segment as of December 31, were as follows:
(Millions of dollars)2024
 31-60
Days
Past Due		61-90
Days
Past Due		91+
Days
Past Due		Total
Past Due		CurrentTotal Finance
Receivables
North America$14 $5 $4 $23 $2,584 $2,607 
EAME3 1 — 4 740 744 
Asia/Pacific— — 1 1 528 529 
Latin America— — — — 383 383 
Power2 1 1 4 16 20 
Total$19 $7 $6 $32 $4,251 $4,283 
2023
 31-60
Days
Past Due		61-90
Days
Past Due		91+
Days
Past Due		Total
Past Due		CurrentTotal Finance
Receivables
North America$15 $5 $4 $24 $2,212 $2,236 
EAME3 1 1 5 732 737 
Asia/Pacific2 — — 2 593 595 
Latin America1 4 18 23 348 371 
Power— — — — 10 10 
Total$21 $10 $23 $54 $3,895 $3,949 
 
Non-accrual finance receivables
In our Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income as of December 31, were as follows:
(Millions of dollars)20242023
Amortized CostAmortized Cost
Non-accrual With an Allowance91+ Still
Accruing		Non-accrual With an Allowance91+ Still
Accruing
North America$83 $20 $52 $20 
EAME33 5 34 18 
Asia/Pacific5 5 8 5 
Latin America24 — 48 1 
Mining29 — 2 — 
Power2 — 8 — 
Total$176 $30 $152 $44 
    
There were no finance receivables in our Dealer portfolio segment on non-accrual status as of December 31, 2024. There were $47 million in finance receivables in our Dealer portfolio segment on non-accrual status as of December 31, 2023, all of which were in Latin America.

Modifications
We periodically modify the terms of our finance receivable agreements. Typically, the types of modifications granted are payment deferrals, interest only payment periods and/or term extensions. Many modifications we grant are for commercial reasons or for borrowers experiencing some form of short-term financial stress and may result in insignificant payment delays. We do not consider these borrowers to be experiencing financial difficulty. Modifications for borrowers we do consider to be experiencing financial difficulty typically result in payment deferrals and/or reduced payments for a period of four months or longer, term extension of six months or longer or a combination of both.
During the years ended December 31, 2024 and 2023, there were no finance receivable modifications granted to borrowers experiencing financial difficulty in the Dealer or Caterpillar Purchased Receivables portfolio segments. The amortized cost basis of finance receivables modified for borrowers experiencing financial difficulty in the Customer portfolio segment for the years ended December 31, 2024 and 2023 was $33 million and $47 million, respectively. Total modifications with borrowers experiencing financial difficulty represented 0.15 percent and 0.17 percent of the Customer portfolio for the same periods, respectively.

The financial effects of term extensions and payment delays for borrowers experiencing financial difficulty for the years ended December 31, were as follows:
(In months)20242023
Weighted average extension to term of modified contracts815
Weighted average payment deferral and/or interest only periods67

After we modify a finance receivable, we continue to track its performance under its most recent modified terms. As of December 31, 2024 and 2023, defaults of loans modified were not significant.

The effect of most modifications made to finance receivables for borrowers experiencing financial difficulty is already included in the allowance for credit losses based on the methodologies used to estimate the allowance; therefore, a change to the allowance for credit losses is generally not recorded upon modification. On rare occasions when principal forgiveness is provided, the amount forgiven is written off against the allowance for credit losses.

Troubled debt restructurings
Prior to the adoption of ASU 2022-02, Financial Instruments – Credit Losses, a modification constituted a troubled debt restructuring ("TDR") when the lender granted a concession it would not otherwise consider to a borrower experiencing financial difficulties. Concessions granted may have included extended contract maturities, inclusion of interest only periods, below market interest rates, payment deferrals and reduction of principal and/or accrued interest.

There were no finance receivables modified as TDRs during the year ended December 31, 2022 for the Dealer or Caterpillar Purchased Receivables portfolio segments. During the year ended December 31, 2022, finance receivables in the Customer portfolio segment modified as TDRs had amortized costs of $65 million pre-modification and $64 million post-modification.

Concentration of credit risk
As of December 31, 2024 and 2023, receivables from customers in construction-related industries made up approximately 40 percent of our total portfolio. No single customer or dealer represented a significant concentration of credit risk.
v3.25.0.1
Equipment on Operating Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Equipment on Operating Leases EQUIPMENT ON OPERATING LEASES
 
The carrying amount of Equipment on operating leases, net in the Consolidated Statements of Financial Position as of December 31, was as follows: 
(Millions of dollars)20242023
Equipment on operating leases, at cost$4,207 $4,433 
Less: Accumulated depreciation(1,427)(1,419)
Equipment on operating leases, net$2,780 $3,014 
 
Our lease agreements may include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value.

At December 31, 2024, rental payments to be received for equipment on operating leases were as follows: 
(Millions of dollars)
20252026202720282029ThereafterTotal
$723 $470 $256 $131 $45 $15 $1,640 
v3.25.0.1
Credit Commitments
 12 Months Ended
Dec. 31, 2024
Credit Commitments [Abstract]  
Credit Commitments CREDIT COMMITMENTS
 
Revolving credit facilities
As of December 31, 2024, we had three global credit facilities with a syndicate of banks totaling $10.50 billion (Credit Facility) available in the aggregate to both Caterpillar and us for general liquidity purposes. Based on management’s allocation decision, which can be revised from time to time, the portion of the Credit Facility available to us as of December 31, 2024 was $7.75 billion. Information on our Credit Facility is as follows:

•In August 2024, we entered into a new 364-day facility. The 364-day facility of $3.15 billion (of which $2.33 billion is available to us) expires in August 2025.
•In August 2024, we amended and extended the three-year facility (as amended and restated, "the three-year facility"). The three-year facility of $2.73 billion (of which $2.01 billion is available to us) expires in August 2027.
•In August 2024, we amended and extended the five-year facility (as amended and restated "the five-year facility"). The five-year facility of $4.62 billion (of which $3.41 billion is available to us) expires in August 2029. 

In the event that either Caterpillar or we do not meet one or more of our respective financial covenants under the Credit Facility in the future (and are unable to obtain a consent or waiver), the syndicate of banks may terminate the commitments allocated to the party that does not meet its covenants. Additionally, in such event, certain of our other lenders under other loan agreements where similar financial covenants or cross default provisions are applicable, may, at their election, choose to pursue remedies under those loan agreements, including accelerating the repayment of outstanding borrowings. At December 31, 2024, there were no borrowings under the Credit Facility, and Caterpillar and we were in compliance with our respective financial covenants under the Credit Facility.
 
Bank borrowings
Available credit lines with banks as of December 31, 2024 totaled $3.45 billion. These committed and uncommitted credit lines, which may be eligible for renewal at various future dates or have no specified expiration date, are used primarily by our non-U.S. subsidiaries for local funding requirements. We may guarantee subsidiary borrowings under these lines. As of December 31, 2024 and 2023, we had $687 million and $853 million, respectively, outstanding against these credit lines and were in compliance with all debt covenants under these credit lines.

Notes receivable from/payable to Caterpillar
Under our variable amount and term lending agreements and other notes receivable with Caterpillar, we may borrow up to $2.44 billion from Caterpillar and Caterpillar may borrow up to $2.14 billion from us. Most variable amount lending agreements are in effect for indefinite periods of time and may be changed or terminated by either party with 30 days notice. The term lending agreements have remaining maturities ranging up to ten years. We had notes payable of $10 million and notes receivable of $559 million outstanding under these agreements as of December 31, 2024, compared with notes payable of $24 million and notes receivable of $527 million as of December 31, 2023.
v3.25.0.1
Short-Term Borrowings
 12 Months Ended
Dec. 31, 2024
Short-Term Debt [Abstract]  
Short-Term Borrowings SHORT-TERM BORROWINGS
 
Short-term borrowings outstanding as of December 31, were comprised of the following: 
(Millions of dollars)20242023
 BalanceWeighted Avg. RateBalanceWeighted Avg. Rate
Commercial paper, net$3,946 4.5%$4,069 5.2%
Bank borrowings and other165 10.8%330 10.0%
Variable denomination floating rate demand notes282 4.2%244 5.2%
Total$4,393  $4,643  
v3.25.0.1
Long-Term Debt
 12 Months Ended
Dec. 31, 2024
Long-Term Debt, Unclassified [Abstract]  
Long-Term Debt LONG-TERM DEBT
 
During 2024, we issued $9.99 billion of medium-term notes, of which $8.04 billion were at fixed interest rates and $1.95 billion were floating interest rates. At December 31, 2024, the outstanding medium-term notes had remaining maturities ranging up to five years. Debt issuance costs are capitalized and amortized to Interest expense using the effective yield method over the term of the debt issuance. Medium-term notes, net contain fair value adjustments for debt in a fair value hedge relationship.

Long-term debt outstanding as of December 31, was comprised of the following: 
(Millions of dollars)20242023
 BalanceWeighted Avg. RateBalanceWeighted Avg. Rate
Medium-term notes$24,940 3.9%$23,165 3.2%
Unamortized discount and debt issuance costs(42) (34) 
Fair value adjustments(16)(46)
Medium-term notes, net24,882  23,085  
Bank borrowings and other524 9.6%527 6.6%
Total$25,406  $23,612  

Maturities of Long-term debt outstanding (excluding fair value adjustments) as of December 31, 2024, in each of the next five years, are as follows: 
(Millions of dollars)
 
2025$6,619 
20268,508 
20277,741 
202811 
20292,093 

Medium-term notes of $1.25 billion maturing in the first quarter of 2025 were excluded from Current maturities of long-term debt in the Consolidated Statements of Financial Position as of December 31, 2024 due to a $1.25 billion issuance of medium-term notes on January 8, 2025 of which $800 million and $450 million mature in 2027 and 2030, respectively. The preceding maturity table reflects the reclassification of $1.25 billion from maturities in 2025 to $800 million in 2027 and $450 million in 2030.
v3.25.0.1
Derivative Financial Instruments and Risk Management
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments and Risk Management DERIVATIVE FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
 
Our earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate and interest rate exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option and cross currency contracts and interest rate contracts. Our derivative activities are subject to the management, direction and control of our senior financial officers. We present at least annually to our Board of Directors and the Audit Committee of the Caterpillar Board of Directors on our risk management practices, including our use of derivative financial instruments.

We recognize all derivatives at their fair value in the Consolidated Statements of Financial Position. On the date the derivative contract is entered into, the derivative instrument is (1) designated as a hedge of the fair value of a recognized asset or liability (fair value hedge), (2) designated as a hedge of a forecasted transaction or the variability of cash flows (cash flow hedge) or (3) undesignated. We record in current earnings changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged recognized asset or liability that is attributable to the hedged risk. For foreign exchange contracts designated as fair value hedges, the interim settlements are excluded from the effectiveness assessment and are recognized under a systematic and rational method over the life of the hedging instrument within Interest expense. We record in Accumulated other comprehensive income (loss) (AOCI) changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge, to the extent effective, in the Consolidated Statements of Financial Position until we reclassify them to earnings in the same period or periods during which the hedged transaction affects earnings. We report changes in the fair value of undesignated derivative instruments in current earnings. We classify cash flows from designated derivative financial instruments within the same category as the item being hedged in the Consolidated Statements of Cash Flows. We include cash flows from undesignated derivative financial instruments in the investing category in the Consolidated Statements of Cash Flows.
 
We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities in the Consolidated Statements of Financial Position and linking cash flow hedges to specific forecasted transactions or variability of cash flow.

We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the designated derivatives that are used in hedging transactions are highly effective in offsetting changes in fair value or cash flow of hedged items. When a derivative is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, we discontinue hedge accounting prospectively, in accordance with the derecognition criteria for hedge accounting.

Foreign currency exchange rate risk
We have balance sheet positions and expected future transactions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. In managing foreign currency risk, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our assets and liabilities and exchange rate risk associated with future transactions denominated in foreign currencies. Our foreign currency forward and option contracts are primarily undesignated. We designate fixed-to-fixed cross currency contracts as cash flow hedges to protect against movements in exchange rates on foreign currency fixed-rate assets and liabilities. We designate float-to-float cross currency contracts as fair value hedges to protect against movements in exchange rates on floating-rate assets and liabilities.
 
Interest rate risk
Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate contracts to manage our exposure to interest rate changes.
 
We have a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate and duration) of our debt portfolio with the interest rate profile of our finance receivables portfolio within predetermined ranges on an ongoing basis. In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the finance receivables portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move.
Our policy allows us to use fixed-to-floating, floating-to-fixed and floating-to-floating interest rate contracts to meet the match-funding objective. We designate fixed-to-floating interest rate contracts as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate. We designate most floating-to-fixed interest rate contracts as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate. We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate contracts. We amortize the gains or losses associated with these contracts at the time of liquidation into earnings over the original term of the previously designated hedged item.

The location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position as of December 31, were as follows:
(Millions of dollars)20242023
Assets1
Liabilities2
Assets1
Liabilities2
Designated derivatives
Foreign exchange contracts$228 $(89)$207 $(73)
Interest rate contracts10 (31)50 (68)
$238 $(120)$257 $(141)
Undesignated derivatives
Foreign exchange contracts$84 $(19)$28 $(79)
$84 $(19)$28 $(79)
(1) Assets are classified in the Consolidated Statements of Financial Position as Other assets.
(2) Liabilities are classified in the Consolidated Statements of Financial Position as Accrued expenses.

The total notional amount of our derivative instruments was $15.97 billion and $15.73 billion as of December 31, 2024 and 2023, respectively. The notional amounts of derivative financial instruments do not represent amounts exchanged by the parties. We calculate the amounts exchanged by the parties by referencing the notional amounts and by other terms of the derivatives, such as foreign currency exchange rates and interest rates.

Gains (Losses) on derivative instruments for the years ended December 31, were categorized as follows:
(Millions of dollars)Fair Value /
Undesignated Hedges		Cash Flow Hedges
Gains (Losses)
Recognized1
Gains (Losses)
Recognized in AOCI
Gains (Losses)
Reclassified from AOCI2
202420232022202420232022202420232022
Foreign exchange contracts$167 $(39)$(111)$255 $(22)$310 $213 $(68)$370 
Interest rate contracts(76)(75)(7)11 9 111 41 58 14 
$91 $(114)$(118)$266 $(13)$421 $254 $(10)$384 
(1) Foreign exchange contract gains (losses) are included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense.
(2) Foreign exchange contract gains (losses) are primarily included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense.

Amounts recorded in the Consolidated Statements of Financial Position related to cumulative basis adjustments for fair value hedges as of December 31, were as follows:
(Millions of dollars)Carrying Value of
the Hedged Liabilities		Cumulative Amount of Fair Value
 Hedging Adjustment Included in the
Carrying Value of the Hedged
 Liabilities
2024202320242023
Current maturities of long-term debt$483 $982 $(16)$(23)
Long-term debt3,247 2,128 — (23)
Total$3,730 $3,110 $(16)$(46)
As of December 31, 2024, $7 million of deferred net gains, net of tax, included in equity (AOCI in the Consolidated Statements of Financial Position), related to our cash flow hedges, are expected to be reclassified to earnings over the next twelve months. The actual amount recorded in earnings will vary based on interest rates and exchange rates at the time the hedged transactions impact earnings.

We enter into International Swaps and Derivatives Association master netting agreements that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits us or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements may also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event.

Collateral is typically not required of the counterparties or us under the master netting agreements. As of December 31, 2024 and 2023, no cash collateral was received or pledged under the master netting agreements.
    
The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event as of December 31, was as follows:
(Millions of dollars)20242023
AssetsLiabilitiesAssetsLiabilities
Gross amounts recognized$322 $(139)$285 $(220)
Financial instruments not offset(54)54 (106)106 
Net amount$268 $(85)$179 $(114)

Concentration of Credit Risk
Our exposure to credit loss in the event of nonperformance by the counterparties is limited to only those gains that we have recorded, but for which we have not yet received cash payment. The master netting agreements reduce the amount of loss the company would incur should the counterparties fail to meet their obligations. At December 31, 2024 and 2023, the maximum exposure to credit loss was $322 million and $285 million, respectively, before the application of any master netting agreements.
v3.25.0.1
Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 31, 2024
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Income (Loss) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
We present Comprehensive income (loss) and its components in the Consolidated Statements of Comprehensive Income. Changes in the balances for each component of AOCI for the years ended December 31, were as follows:
(Millions of dollars)202420232022
Foreign currency translation
Balance at beginning of year$(996)$(1,068)$(762)
Gains (losses) on foreign currency translation(299)55 (276)
Less: Tax provision/(benefit)22 (17)30 
Net gains (losses) on foreign currency translation(321)72 (306)
(Gains) losses reclassified to earnings61 — — 
Less: Tax provision/(benefit)— — — 
Net (gains) losses reclassified to earnings61 — — 
Other comprehensive income (loss), net of tax(260)72 (306)
Balance at end of year$(1,256)$(996)$(1,068)
Derivative financial instruments
Balance at beginning of year$18 $21 $(12)
Gains (losses) deferred266 (13)421 
Less: Tax provision/(benefit)74 (3)97 
Net gains (losses) deferred192 (10)324 
(Gains) losses reclassified to earnings(254)10 (384)
Less: Tax (provision)/benefit(68)3 (93)
Net (gains) losses reclassified to earnings(186)7 (291)
Other comprehensive income (loss), net of tax6 (3)33 
Balance at end of year$24 $18 $21 
Total Accumulated other comprehensive income (loss) at end of year$(1,232)$(978)$(1,047)
v3.25.0.1
Commitments and Contingent Liabilities
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingent Liabilities COMMITMENTS AND CONTINGENT LIABILITIES
Guarantees
We provide credit guarantees and residual value guarantees to third parties for financing and leasing associated with Caterpillar machinery. In addition, we provide standby letters of credit issued to third parties on behalf of our customers. These guarantees and standby letters of credit have varying terms.

No significant loss has been experienced or is anticipated under any of these guarantees. At December 31, 2024 and 2023, the related recorded liability was less than $1 million. The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees was $23 million and $25 million at December 31, 2024 and 2023, respectively.
We provide guarantees to purchase certain loans of Caterpillar dealers from a special-purpose corporation (SPC) that qualifies as a VIE (see Note 1 for additional information related to the consolidation of VIEs). We receive a fee for providing this guarantee. The purpose of the SPC is to provide short-term working capital loans to Caterpillar dealers. This SPC issues commercial paper and uses the proceeds to fund its loan program. We are the primary beneficiary of the SPC as our guarantees result in us having both the power to direct the activities that most significantly impact the SPC’s economic performance and the obligation to absorb losses and therefore we have consolidated the financial statements of the SPC. As of December 31, 2024 and 2023, the SPC’s assets of $1.14 billion and $1.35 billion, respectively, were primarily comprised of loans to dealers, which are included in Finance receivables, net in the Consolidated Statements of Financial Position, and the SPC’s liabilities of $1.14 billion and $1.35 billion, respectively, were primarily comprised of commercial paper, which is included in Short-term borrowings in the Consolidated Statements of Financial Position. The assets of the SPC are not available to pay our creditors. We may be obligated to perform under the guarantee if the SPC experiences losses. No loss has been experienced or is anticipated under this loan purchase agreement.

Lending commitments
We have commitments to extend credit to customers through lines of credit and other pre-approved credit arrangements. We apply the same credit policies and approval process for these commitments as we do for other financing. If credit is extended, collateral is generally required upon funding. The unused commitments to extend credit to customers that are not unconditionally cancellable was $843 million at December 31, 2024. The reserve for credit losses related to these commitments was $13 million at December 31, 2024 and is recorded in Other liabilities in the Consolidated Statements of Financial Position. We also have pre-approved lines of credit and other credit arrangements with Caterpillar dealers; however, we generally have the right to unconditionally cancel, alter, or amend the terms at any time.
Litigation and claims
We are involved in unresolved legal actions that arise in the normal course of business. The aggregate range of reasonably possible losses in excess of accrued liabilities, if any, associated with these unresolved legal actions is not material. In some cases, we cannot reasonably estimate a range of loss because there is insufficient information regarding the matter. However, we believe there is no more than a remote chance that any liability arising from these matters would be material. Although it is not possible to predict with certainty the outcome of our unresolved legal actions, we believe that these unresolved legal actions will neither individually nor in the aggregate have a material adverse effect on our consolidated results of operations, financial position or liquidity.
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
 
A reconciliation of the U.S. federal statutory rate to the effective rate for the years ended December 31, was as follows: 
(Millions of dollars)202420232022
Taxes computed at U.S. statutory rates$112 21.0 %$160 21.0 %$154 21.0 %
(Decreases) increases in taxes resulting from:    
State income tax, net of federal tax 1
1 0.2 %5 0.5 %4 0.5 %
Non-U.S. subsidiaries taxed at other than the U.S. rate(14)(2.6)%21 2.8 %19 2.6 %
Valuation allowances1 0.2 %(14)(1.8)%15 2.1 %
Tax law change for currency translation(224)(42.0)%— — %— — %
Tax loss on divestiture of a non-U.S. subsidiary48 9.0 %— — %— — %
Dividend withholding tax & indefinite reinvestment change2 0.4 %30 4.0 %— — %
Foreign currency translation taxed at non- U.S. subsidiaries8 1.5 %(10)(1.3)%(4)(0.5)%
Other, net— — %— — %1 0.1 %
Provision for income taxes$(66)(12.4)%$192 25.2 %$189 25.8 %
1 Excludes amount included in Tax law change for currency translation line item.

Included in the line item above labeled “Non-U.S. subsidiaries taxed at other than the U.S. rate” are the effects of local and U.S. taxes related to earnings of non-U.S. subsidiaries and other permanent differences between tax and U.S. GAAP results.
The provision for income taxes for 2024 included a non-cash tax benefit of $224 million due to the reversal of a deferred tax liability resulting from a U.S. tax law change related to currency translation. The benefit to the tax rate was partially offset by the loss on divestiture of a non-U.S. entity with no related tax benefit during 2024. The provision for income taxes for 2023 included a tax charge of $30 million for a deferred tax liability for withholding taxes in a non-U.S. jurisdiction where earnings are not considered indefinitely reinvested.

The provision for income taxes in 2024 included a $15 million increase in the valuation allowance for a U.S. deferred tax asset related to capital loss carryforwards. The provision for income taxes for 2023 included a decrease in the valuation allowance for non-U.S. deferred tax assets primarily due to a non-cash benefit of $22 million from a non-U.S. subsidiary which has returned to consistent and sustainable profitability. The provision for income taxes for 2023 and 2022 included an increase in valuation allowance for non-U.S. deferred tax assets due to a decrease in consistent and/or sustainable profitability to support their recognition in certain jurisdictions, resulting in an $8 million and $15 million non-cash expense, respectively.

Distributions of profits from non-U.S. subsidiaries are not expected to cause a significant incremental U.S. tax impact in the future. However, these distributions may be subject to non-U.S. withholding taxes if profits are distributed from certain jurisdictions. We have not recorded a deferred tax liability for withholding taxes in non-U.S. jurisdictions where earnings are considered indefinitely reinvested. Undistributed profits of non-U.S. subsidiaries of approximately $3 billion are considered indefinitely reinvested. Determination of the amount of unrecognized deferred tax liability related to indefinitely reinvested profits is not feasible primarily due to our legal entity operating structure and the complexity of U.S. and local tax laws. If management intentions or U.S. tax law changes in the future, there could be an impact on the provision for income taxes to record an incremental tax liability in the period the change occurs.

The components of Profit before income taxes for the years ended December 31, were as follows: 
(Millions of dollars)202420232022
U.S.$173 $384 $439 
Non-U.S.360 376 292 
Total$533 $760 $731 

Profit before income taxes, as shown above, is based on the location of the entity to which such earnings are attributable. Where an entity’s earnings are subject to taxation, however, may not correlate solely to where an entity is located. Thus, the income tax provision shown below as U.S. or non-U.S. may not correspond to the earnings shown above.
 
The components of the Provision for income taxes for the years ended December 31, were as follows: 
(Millions of dollars)
Current income tax provision:202420232022
U.S.$117 $36 $116 
Non-U.S.109 150 95 
State (U.S.)2 3 5 
 228 189 216 
Deferred income tax provision (benefit):   
U.S.(283)33 (36)
Non-U.S.9 (31)8 
State (U.S.)(20)1 1 
 (294)3 (27)
Total Provision for income taxes$(66)$192 $189 

Current income tax provision is the amount of income taxes reported or expected to be reported on our income tax returns. We join Caterpillar in the filing of a consolidated U.S. Federal income tax return and certain state income tax returns. In accordance with our tax sharing agreement with Caterpillar, we generally pay to or receive from Caterpillar our allocated share of income taxes or credits reflected in these consolidated filings. This amount is calculated on a separate return basis by taking taxable income times the applicable statutory tax rate and includes payment for certain tax attributes earned during the year.
Income taxes payable were $255 million and $190 million as of December 31, 2024 and 2023, respectively, and are included in Other liabilities in the Consolidated Statements of Financial Position.

Accounting for income taxes under U.S. GAAP requires individual tax-paying entities of the Company to offset deferred income tax assets and liabilities within each particular tax jurisdiction and present them as a single amount in the Consolidated Statements of Financial Position. Amounts in different tax jurisdictions cannot be offset against each other. The amounts of deferred income taxes at December 31, included in the following lines in our Consolidated Statements of Financial Position were: 
(Millions of dollars)20242023
Assets:  
Other assets$114 $144 
Liabilities:  
Other liabilities(330)(617)
Deferred income taxes, net$(216)$(473)
 
Our consolidated deferred income taxes consisted of the following components as of December 31: 
(Millions of dollars)
Deferred income tax assets:20242023
Allowance for credit losses$77 $95 
Tax carryforwards122 103 
Revenue timing differences19 16 
 218 214 
Deferred income tax liabilities:
Capital assets, including lease basis differences(367)(430)
Deferred income tax on translation adjustment— (200)
Undistributed profits of non-U.S. subsidiaries(15)(16)
(382)(646)
Valuation allowance for deferred income tax assets(51)(39)
Other, net(1)(2)
Deferred income taxes, net$(216)$(473)
 
At December 31, 2024, deferred tax assets for U.S. state losses of $4 million expire on or before 2040. Of these U.S. state deferred tax assets, less than $1 million were reduced by valuation allowances.
 
In some U.S. state income tax jurisdictions, we join with other Caterpillar entities in filing combined income tax returns. In other U.S. state income tax jurisdictions, we file on a separate, stand-alone basis.

Deferred tax assets for U.S. federal loss carryforwards total $16 million, of which $1 million expires before 2027 and $15 million expires before 2030. U.S. entities have recorded valuation allowances of $16 million against the U.S. federal loss carryforwards. Deferred tax assets for losses and credit carryforwards of non-U.S. entities of $29 million expire on or before 2042, while the remaining $73 million may be carried over indefinitely. Non-U.S. entities that have not yet demonstrated consistent and/or sustainable profitability to support the recognition of net deferred income tax assets have recorded valuation allowances of $34 million against tax carryforwards and other deferred tax assets.
A reconciliation of the beginning and ending amounts of gross unrecognized income tax benefits for uncertain income tax positions, including positions impacting only the timing of income tax benefits was as follows: 
(Millions of dollars)202420232022
Reconciliation of unrecognized income tax benefits(1):
   
Balance at beginning of year$119 $127 $131 
Additions for income tax positions related to current year15 — — 
Additions for income tax positions related to prior year— — — 
Reductions for income tax positions related to prior year— (2)— 
Reductions for income tax positions related to settlements— (6)(4)
Balance at end of year$134 $119 $127 
Amount that, if recognized, would impact the effective tax rate$134 $119 $127 
(1) Foreign currency translation amounts are included within each line as applicable.

We classify interest and penalties on income taxes as a component of the provision for income taxes. During the years ended December 31, 2024, 2023 and 2022, interest and penalties were not material. As of December 31, 2024 and 2023, the total amount of accrued interest and penalties was $10 million and $6 million, respectively.
 
We are subject to the continuous examination of our U.S. federal income tax returns by the IRS, and tax years 2017 to 2019 are currently under examination. In our major non-U.S. jurisdictions, tax years are typically subject to examination for three to ten years. Due to the uncertainty related to the timing and potential outcome of audits, we cannot estimate the range of reasonably possible change in unrecognized tax benefits in the next 12 months.
v3.25.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE DISCLOSURES 
A.Fair Value Measurements
The guidance on fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This guidance also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. In accordance with this guidance, fair value measurements are classified under the following hierarchy:
 
•Level 1 – Quoted prices for identical instruments in active markets.
•Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets.
•Level 3 – Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable.

When available, we use quoted market prices to determine fair value and we classify such measurements within Level 1. In some cases where market prices are not available, we make use of observable market-based inputs to calculate fair value, in which case the measurements are classified within Level 2. If quoted or observable market prices are not available, fair value is based upon valuations in which one or more significant inputs are unobservable, including internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves and currency rates. These measurements are classified within Level 3.

We classify fair value measurements according to the lowest level input or value-driver that is significant to the valuation. We may therefore classify a measurement within Level 3 even though there may be significant inputs that are readily observable.

Fair value measurement includes the consideration of nonperformance risk. Nonperformance risk refers to the risk that an obligation (either by a counterparty or us) will not be fulfilled. For financial assets traded in an active market, the nonperformance risk is included in the market price. For certain other financial assets and liabilities, our fair value calculations have been adjusted accordingly.
Derivative financial instruments
The fair value of interest rate contracts is primarily based on a standard industry accepted valuation model that utilizes the appropriate market-based forward swap curves and zero-coupon interest rates to determine discounted cash flows. The fair value of foreign currency forward and cross currency contracts is based on standard industry accepted valuation models that discount cash flows resulting from the differential between the contract price and the market-based forward rate.
 
Derivative financial instruments are measured on a recurring basis at fair value and are classified as Level 2 measurements. We had derivative financial instruments included in our Consolidated Statements of Financial Position in a net asset position of $183 million and $65 million as of December 31, 2024 and 2023, respectively. See Note 7 for additional information.

Loans measured at fair value
Certain loans are subject to measurement at fair value on a nonrecurring basis and are classified as Level 3 measurements. A loan is measured at fair value when management determines that collection of contractual amounts due is not probable and the loan is individually evaluated. In these cases, an allowance for credit losses may be established based either on the present value of expected future cash flows discounted at the receivables’ effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. In determining collateral value, we estimate the current fair market value of the collateral less selling costs. We had loans carried at fair value of $59 million and $55 million as of December 31, 2024 and 2023, respectively.

B.Fair Values of Financial Instruments
Cash and cash equivalents, restricted cash (included in Other assets in the Consolidated Statements of Financial Position), and Short-term borrowings (see Note 5) are classified as Level 1 measurements and carrying amount approximates fair value. We use the following methods and assumptions to estimate the fair value of our financial instruments not carried at fair value:

•Finance receivables, net – We estimate fair value by discounting the future cash flows using current rates representative of receivables with similar remaining maturities. 
•Long-term debt – We estimate fair value for fixed and floating-rate debt based on quoted market prices.

Fair values of our financial instruments not carried at fair value as of December 31, were as follows:
(Millions of dollars)20242023
 Carrying 
Amount		Fair 
Value		Carrying 
Amount		Fair
 Value		Fair
Value
Levels		Reference
Assets
Finance receivables, net (excluding finance leases(1))
$22,026 $21,593 $20,746 $20,330 3Note 2
Liabilities
Long-term debt$25,406 $25,304 $23,612 $23,299 2Note 6
(1) Represents finance leases and failed sale leasebacks of $6.94 billion and $7.00 billion as of December 31, 2024 and 2023, respectively.
v3.25.0.1
Transactions with Related Parties
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Transactions with Related Parties TRANSACTIONS WITH RELATED PARTIES
 
We have a Support Agreement with Caterpillar, which provides that Caterpillar will (1) remain, directly or indirectly, our sole owner; (2) cause us to maintain a tangible net worth of at least $20 million; and (3) ensure that we maintain a ratio of profit before income taxes and interest expense to interest expense (as defined by the Support Agreement) of not less than 1.15 to 1, calculated on an annual basis. Although this agreement can be modified or terminated by either party, any termination or any modification which would adversely affect holders of our debt requires the consent of holders of 66-2/3 percent in principal amount of outstanding debt of each series so affected. Any modification or termination which would adversely affect the lenders under the Credit Facility requires their consent. Caterpillar’s obligation under this agreement is not directly enforceable by any of our creditors and does not constitute a guarantee of any of our obligations. Cash dividends of $625 million, $425 million, and $275 million were paid to Caterpillar in 2024, 2023, and 2022, respectively.
 
Under our variable amount and term lending agreements and other notes receivable with Caterpillar, we may borrow up to $2.44 billion from Caterpillar and Caterpillar may borrow up to $2.14 billion from us. Most variable amount lending agreements are in effect for indefinite periods of time and may be changed or terminated by either party with 30 days notice. The term lending agreements have remaining maturities ranging up to ten years. Information concerning these agreements was as follows: 
(Millions of dollars)202420232022
Payable to Caterpillar - borrowings as of December 31,$10 $24 $23 
Payable to Caterpillar - other as of December 31,118 113 101 
Notes receivable from Caterpillar as of December 31,559 527 482 
Other receivables from Caterpillar as of December 31,(2)
85 39 133 
Interest expense1 1 1 
Interest income on Notes Receivable with Caterpillar(1)
23 21 17 
(1) Included in Other revenues, net in the Consolidated Statements of Profit.
(2) Included in Other assets in the Consolidated Statements of Financial Position.
 
We have agreements with Caterpillar to purchase certain trade receivables at a discount. In addition, we receive fee revenue from Caterpillar for our centralized activities benefiting the global factoring program. Cash flows related to our factoring programs with Caterpillar are included in Net changes in Caterpillar purchased receivables within investing activities in the Consolidated Statements of Cash Flows. Information pertaining to these purchases was as follows: 
(Millions of dollars)202420232022
Purchases made$52,930 $53,382 $47,158 
Revenue earned625 617 417 
Purchased Receivables as of December 31,4,283 3,949 4,297 

We participate in certain marketing programs offered in conjunction with Caterpillar that allow us to periodically offer financing to customers at interest rates that are below market rates. Under these marketing programs, Caterpillar funds an amount at the outset of the transaction, which we then recognize as revenue over the term of the financing. During 2024, 2023 and 2022, relative to such programs, we received $540 million, $332 million and $339 million, respectively. We had Finance receivables, net and Equipment on operating leases, net with Caterpillar of $278 million and $155 million as of December 31, 2024 and 2023, respectively. For the years ended December 31, 2024, 2023 and 2022, we recognized revenues of $31 million, $27 million and $24 million, respectively, related to these finance receivables and operating leases. For the years ended December 31, 2024, 2023 and 2022, we recognized depreciation related to these operating leases of $18 million, $18 million and $17 million, respectively. At December 31, 2024 and 2023, $473 million and $376 million, respectively, of our portfolio was subject to guarantees by Caterpillar and affiliates.
 
Caterpillar provides defined benefit pension plans, defined contribution plans and other postretirement benefit plans to employees. We reimburse Caterpillar for these charges and other employee benefits paid by Caterpillar related to our employees. Further information about these plans is available in Caterpillar’s 2024 Annual Report on Form 10-K filed separately with the Securities and Exchange Commission.

Caterpillar provides operational and administrative support, which is integral to the conduct of our business. In 2024, 2023 and 2022, these operational and support charges for which we reimburse Caterpillar amounted to $50 million, $50 million and $52 million, respectively. In addition, we provide administrative support services to certain Caterpillar subsidiaries. Caterpillar reimburses us for these charges. During 2024, 2023 and 2022, these charges amounted to $16 million, $15 million and $13 million, respectively.

We join Caterpillar in the filing of a consolidated U.S. Federal income tax return and certain state income tax returns. In accordance with our tax sharing agreement with Caterpillar, we generally pay to or receive from Caterpillar our allocated share of income taxes or credits reflected in these consolidated filings. This amount is calculated on a separate return basis by taking taxable income times the applicable statutory tax rate and includes payment for certain tax attributes earned during the year.
v3.25.0.1
Segment and Geographic Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment and Geographic Information SEGMENT AND GEOGRAPHIC 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, in most cases, 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 for large mining customers worldwide.
•Power - Provides financing worldwide for large 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. For the reconciliation of Profit before income taxes, we have grouped the reconciling items as follows:

•Unallocated - Corporate requirements and strategies that are considered to be for the benefit of the entire organization. Also included are the consolidated results of the SPC (see Note 9 for additional information) and other miscellaneous items.
•Timing - Timing differences in the recognition of costs between segment reporting and consolidated external reporting.
•Methodology - Methodology differences between segment reporting and consolidated external reporting are as follows:
◦Segment assets include off-balance sheet managed assets for which we maintain servicing responsibilities.
◦The impact of differences between the actual leverage and the segment leverage ratios.
◦Interest expense includes realized forward points on foreign currency forward contracts.
◦The net gain or loss from interest rate derivatives is excluded from segment reporting.
•Divestiture - Loss on divestiture included in Other income (expense). See Note 14 for more information.
Supplemental segment data and reconciliations to consolidated external reporting for the years ended December 31, was as follows:
(Millions of dollars)

 
2024
External
revenues		Interest expenseDepreciation on equipment leased to othersGeneral, operating and administrative expensesProvision
for
credit
losses
Other segment items(1)
Profit before income taxes
North America$1,988 $634 $512 $185 $70 $17 $570 
EAME380 143 54 89 (12)4 102 
Asia/Pacific271 100 4 77 — 3 87 
Latin America338 152 13 53 6 4 110 
Mining377 105 137 39 19 1 76 
Power65 33 2 11 (8)— 27 
Total Segments3,419 1,167 722 454 75 29 972 
Unallocated85 492 — 195 — (28)(574)
Timing(15)— — (16)— — 1 
Methodology— (372)— 11 — 17 344 
Divestiture— — — — — 210 (210)
Total$3,489 $1,287 $722 $644 $75 $228 $533 


 
2023
External
revenues		Interest expenseDepreciation on equipment leased to othersGeneral, operating and administrative expensesProvision
for
credit
losses
Other segment items(1)
Profit before income taxes
North America$1,786 $463 $512 $170 $32 $13 $596 
EAME368 103 57 93 3 11 101 
Asia/Pacific278 102 4 69 (2)— 105 
Latin America348 174 12 52 1 6 103 
Mining341 80 126 37 (2)1 99 
Power58 26 2 11 16 4 (1)
Total Segments3,179 948 713 432 48 35 1,003 
Unallocated83 394 — 162 1 33 (507)
Timing(14)— — (16)— — 2 
Methodology— (309)— 10 — 37 262 
Total$3,248 $1,033 $713 $588 $49 $105 $760 

 

2022
External
revenues		Interest expenseDepreciation on equipment leased to othersGeneral, operating and administrative expensesProvision
for
credit
losses
Other segment items(1)
Profit before income taxes
North America$1,512 $263 $503 $155 $25 $16 $550 
EAME285 79 55 88 49 2 12 
Asia/Pacific283 73 5 62 6 3 134 
Latin America284 136 10 43 7 3 85 
Mining294 42 143 35 9 2 63 
Power53 15 2 12 (15)2 37 
Total Segments2,711 608 718 395 81 28 881 
Unallocated35 204 — 143 — — (312)
Timing(12)— — (16)— — 4 
Methodology— (246)— 9 — 79 158 
Total$2,734 $566 $718 $531 $81 $107 $731 
(1) Other segment items are primarily costs related to repossessed and returned equipment.
(Millions of dollars)Assets as of December 31,
Capital Expenditures(1)
20242023202420232022
North America$17,800 $16,303 $787 $961 $862 
EAME4,668 5,117 74 73 117 
Asia/Pacific3,276 3,435 14 4 6 
Latin America2,423 2,583 21 21 25 
Mining3,306 3,059 156 229 120 
Power812 662 — — — 
Total Segments$32,285 $31,159 $1,052 $1,288 $1,130 
Unallocated1,921 2,054 33 9 9 
Timing(12)20 — — — 
Methodology128 145 — — — 
Inter-segment Eliminations(2)
(238)(266)— — — 
Total$34,084 $33,112 $1,085 $1,297 $1,139 
(1) Capital expenditures include expenditures for equipment on operating leases and other miscellaneous capital expenditures.
(2) Eliminations are primarily related to intercompany loans.

Geographic information: 
(Millions of dollars)202420232022
Revenues   
Inside U.S.$2,096 $1,879 $1,551 
All other1,393 1,369 1,183 
Total$3,489 $3,248 $2,734 
Equipment on operating leases, net and property
  and equipment, net (included in Other assets)		20242023
Inside U.S.$1,925 $2,066 
Inside Canada478 539 
All other529 544 
Total$2,932 $3,149 
v3.25.0.1
Divestiture
 12 Months Ended
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Divestiture DIVESTITURE
We divested a non-U.S. entity on June 13, 2024 and recognized a pre-tax loss of approximately $210 million. The loss on divestiture is included within Other income (expense) in the Consolidated Statements of Profit. The proceeds were allocated in accordance with the sales agreement and agreement with Caterpillar.
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net Income (Loss) Attributable to Parent $ 598 $ 563 $ 535
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Cybersecurity is critical to advancing our overall objectives and enabling our digital efforts. As a global company, we face a wide variety of cybersecurity threats that range from common attacks such as ransomware and denial-of-service, to attacks from more advanced adversaries. Our customers, suppliers, and other partners face similar cybersecurity threats, and a cybersecurity incident impacting these entities could materially adversely affect our operations, performance and results. These cybersecurity threats and related risks make it imperative that we maintain focus on cybersecurity and systemic risks.
We maintain a comprehensive cybersecurity program which is integrated within Caterpillar’s enterprise risk management system and encompasses the corporate information technology and operational technology environments as well as customer-facing products. Our cybersecurity program has implemented a governance structure and process to identify, assess, manage, mitigate, respond to and report on cybersecurity risks. We utilize cybersecurity policies and frameworks based on industry and government standards. Our cyber risk management program controls are based on recognized best practices and standards, including the National Institute of Standards and Technology (NIST) Cyber Security Framework and the International Organization for Standardization (ISO 27001) Information Security Management System Requirements. We partner with third parties to support and evaluate our cybersecurity program. These third-party services span areas including cybersecurity maturity assessments, incident response, penetration testing, consulting on best practices, bug bounty programs and others. We also consume threat intelligence from several paid and non-paid sources.

We maintain a 24 x 7 operations center which serves as a central location for the reporting of cybersecurity matters, provides monitoring of our global cybersecurity environment, and coordinates the investigation and remediation of alerts. As cybersecurity events occur, the cybersecurity team focuses on responding to and containing the threat and minimizing impact. In the event of an incident, the cybersecurity team assesses, among other factors, safety impact, supply chain and manufacturing disruption, data and personal information loss, business operations disruption, projected cost and potential for reputational harm, with participation from technical, legal and law enforcement support, as appropriate.

We have implemented a cybersecurity awareness program which covers topics such as phishing, social networking safety, password security and mobile device usage. We have mandatory training in the areas of cybersecurity, privacy and confidential information handling. We also conduct regular phishing training and simulations for our employees and contractors. We provide extensive specialized role-based training to technical professionals in cybersecurity, secure application development and other focus areas. We also conduct periodic tabletop exercises to validate our preparation for cyber events.

We operate a third-party cybersecurity program with the goal of minimizing disruption to the Company’s business and production operations, strengthening supply chain resilience, and supporting the integrity of components and systems used in its products and services. We rely heavily on our supply chain to deliver our products and services to our customers, and a cybersecurity incident at a supplier, subcontractor or joint venture partner could materially adversely impact us. We assess third-party cybersecurity controls through a cybersecurity third-party risk assessment process. Identified deficiencies are addressed through a risk remediation process. For select suppliers, we engage third-party cybersecurity monitoring and alerting services, and seek to work directly with those suppliers to address potential deficiencies identified.
As of the date of this report, we do not believe that risks from any cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or are reasonably likely to affect us, including our business strategy, results of operations or financial condition. That said, as discussed more fully under Item 1A. “Risk Factors—Operational Risks— Increased information technology security threats and more sophisticated computer crime pose a risk to our systems, networks, products and services” of this Form 10-K, these threats pose a risk to the security of our systems and networks and the confidentiality, availability and integrity of our data. Cybersecurity attacks could also include attacks targeting customer data or the security, integrity and/or reliability of the hardware and software installed in Caterpillar products. It is possible that our information technology systems and networks, or those managed or provided by third parties, could have vulnerabilities, which could go unnoticed for a period of time. While various procedures and controls have been and are being utilized to mitigate such risks, there can be no guarantee that the actions and controls we have implemented and are implementing, or which we cause or have caused third-party service providers to implement, will be sufficient to protect and mitigate associated risks to our systems, information or other property.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
We maintain a comprehensive cybersecurity program which is integrated within Caterpillar’s enterprise risk management system and encompasses the corporate information technology and operational technology environments as well as customer-facing products. Our cybersecurity program has implemented a governance structure and process to identify, assess, manage, mitigate, respond to and report on cybersecurity risks. We utilize cybersecurity policies and frameworks based on industry and government standards. Our cyber risk management program controls are based on recognized best practices and standards, including the National Institute of Standards and Technology (NIST) Cyber Security Framework and the International Organization for Standardization (ISO 27001) Information Security Management System Requirements. We partner with third parties to support and evaluate our cybersecurity program. These third-party services span areas including cybersecurity maturity assessments, incident response, penetration testing, consulting on best practices, bug bounty programs and others. We also consume threat intelligence from several paid and non-paid sources.

We maintain a 24 x 7 operations center which serves as a central location for the reporting of cybersecurity matters, provides monitoring of our global cybersecurity environment, and coordinates the investigation and remediation of alerts. As cybersecurity events occur, the cybersecurity team focuses on responding to and containing the threat and minimizing impact. In the event of an incident, the cybersecurity team assesses, among other factors, safety impact, supply chain and manufacturing disruption, data and personal information loss, business operations disruption, projected cost and potential for reputational harm, with participation from technical, legal and law enforcement support, as appropriate.

We have implemented a cybersecurity awareness program which covers topics such as phishing, social networking safety, password security and mobile device usage. We have mandatory training in the areas of cybersecurity, privacy and confidential information handling. We also conduct regular phishing training and simulations for our employees and contractors. We provide extensive specialized role-based training to technical professionals in cybersecurity, secure application development and other focus areas. We also conduct periodic tabletop exercises to validate our preparation for cyber events.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Caterpillar’s board has oversight for risk management with a focus on the most significant risks facing Caterpillar (including its wholly-owned subsidiary, Cat Financial), including strategic, operational, financial and legal compliance risks. The Caterpillar board’s risk oversight process builds upon management’s risk assessment and mitigation processes, which include an enterprise risk management program of which Caterpillar’s cybersecurity processes are an integral component.
Caterpillar’s board implements its risk oversight function both as a board and through delegation to board committees, which meet regularly and report back to the Caterpillar board. Caterpillar’s board has delegated the oversight of specific risks to board committees that align with their functional responsibilities. Caterpillar’s Audit Committee (the “Caterpillar AC”) assists the Caterpillar board in overseeing the enterprise risk management program and evaluates and monitors risks related to, among other things, Caterpillar’s information security program. The Caterpillar AC assesses cybersecurity and information technology risks and the controls implemented to monitor and mitigate these risks. Caterpillar’s Chief Information Officer & Senior Vice President, Caterpillar IT (the “Caterpillar CIO”) attends all bimonthly Caterpillar AC meetings and provides cybersecurity updates to the Caterpillar AC and Caterpillar board.

Caterpillar’s cybersecurity program is overseen by the Caterpillar CIO, who has been a Caterpillar employee for nearly 25 years. Prior to her current appointment as Caterpillar’s CIO in September 2020, she was the Chief Information Officer for the Caterpillar’s Financial Products Division, which includes Cat Financial. Her extensive background in IT includes global leadership for large-scale systems transformations, cybersecurity, cloud and application management, global data center management, worldwide network, servers and storage, database management and end-user services. The Caterpillar CIO leads a cross-functional cybersecurity team comprised of professionals from Caterpillar’s product, cybersecurity, legal and compliance organizations who focus on managing the security of Caterpillar’s connected solutions. This team manages the Caterpillar’s global IT systems, IT risk management, cybersecurity, global infrastructure and IT transformations.

Cat Financial Cybersecurity Governance

Our Risk Committee provides oversight over our information security program and other matters related to cybersecurity. Our President serves as the chair of this committee, which includes among its members our Chief Risk Officer and our Chief Information Officer. Our cybersecurity program is managed by our Chief Information Security Officer, who reports on a regular basis to our Risk Committee on cybersecurity matters and who regularly collaborates with the Caterpillar cybersecurity team.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]
Caterpillar’s board has oversight for risk management with a focus on the most significant risks facing Caterpillar (including its wholly-owned subsidiary, Cat Financial), including strategic, operational, financial and legal compliance risks. The Caterpillar board’s risk oversight process builds upon management’s risk assessment and mitigation processes, which include an enterprise risk management program of which Caterpillar’s cybersecurity processes are an integral component.
Caterpillar’s board implements its risk oversight function both as a board and through delegation to board committees, which meet regularly and report back to the Caterpillar board. Caterpillar’s board has delegated the oversight of specific risks to board committees that align with their functional responsibilities. Caterpillar’s Audit Committee (the “Caterpillar AC”) assists the Caterpillar board in overseeing the enterprise risk management program and evaluates and monitors risks related to, among other things, Caterpillar’s information security program. The Caterpillar AC assesses cybersecurity and information technology risks and the controls implemented to monitor and mitigate these risks. Caterpillar’s Chief Information Officer & Senior Vice President, Caterpillar IT (the “Caterpillar CIO”) attends all bimonthly Caterpillar AC meetings and provides cybersecurity updates to the Caterpillar AC and Caterpillar board.
Our Risk Committee provides oversight over our information security program and other matters related to cybersecurity. Our President serves as the chair of this committee, which includes among its members our Chief Risk Officer and our Chief Information Officer. Our cybersecurity program is managed by our Chief Information Security Officer, who reports on a regular basis to our Risk Committee on cybersecurity matters and who regularly collaborates with the Caterpillar cybersecurity team.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
Caterpillar’s board implements its risk oversight function both as a board and through delegation to board committees, which meet regularly and report back to the Caterpillar board. Caterpillar’s board has delegated the oversight of specific risks to board committees that align with their functional responsibilities. Caterpillar’s Audit Committee (the “Caterpillar AC”) assists the Caterpillar board in overseeing the enterprise risk management program and evaluates and monitors risks related to, among other things, Caterpillar’s information security program. The Caterpillar AC assesses cybersecurity and information technology risks and the controls implemented to monitor and mitigate these risks. Caterpillar’s Chief Information Officer & Senior Vice President, Caterpillar IT (the “Caterpillar CIO”) attends all bimonthly Caterpillar AC meetings and provides cybersecurity updates to the Caterpillar AC and Caterpillar board.
Cybersecurity Risk Role of Management [Text Block]
Caterpillar’s board implements its risk oversight function both as a board and through delegation to board committees, which meet regularly and report back to the Caterpillar board. Caterpillar’s board has delegated the oversight of specific risks to board committees that align with their functional responsibilities. Caterpillar’s Audit Committee (the “Caterpillar AC”) assists the Caterpillar board in overseeing the enterprise risk management program and evaluates and monitors risks related to, among other things, Caterpillar’s information security program. The Caterpillar AC assesses cybersecurity and information technology risks and the controls implemented to monitor and mitigate these risks. Caterpillar’s Chief Information Officer & Senior Vice President, Caterpillar IT (the “Caterpillar CIO”) attends all bimonthly Caterpillar AC meetings and provides cybersecurity updates to the Caterpillar AC and Caterpillar board.

Caterpillar’s cybersecurity program is overseen by the Caterpillar CIO, who has been a Caterpillar employee for nearly 25 years. Prior to her current appointment as Caterpillar’s CIO in September 2020, she was the Chief Information Officer for the Caterpillar’s Financial Products Division, which includes Cat Financial. Her extensive background in IT includes global leadership for large-scale systems transformations, cybersecurity, cloud and application management, global data center management, worldwide network, servers and storage, database management and end-user services. The Caterpillar CIO leads a cross-functional cybersecurity team comprised of professionals from Caterpillar’s product, cybersecurity, legal and compliance organizations who focus on managing the security of Caterpillar’s connected solutions. This team manages the Caterpillar’s global IT systems, IT risk management, cybersecurity, global infrastructure and IT transformations.

Cat Financial Cybersecurity Governance

Our Risk Committee provides oversight over our information security program and other matters related to cybersecurity. Our President serves as the chair of this committee, which includes among its members our Chief Risk Officer and our Chief Information Officer. Our cybersecurity program is managed by our Chief Information Security Officer, who reports on a regular basis to our Risk Committee on cybersecurity matters and who regularly collaborates with the Caterpillar cybersecurity team.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
Caterpillar’s board has oversight for risk management with a focus on the most significant risks facing Caterpillar (including its wholly-owned subsidiary, Cat Financial), including strategic, operational, financial and legal compliance risks. The Caterpillar board’s risk oversight process builds upon management’s risk assessment and mitigation processes, which include an enterprise risk management program of which Caterpillar’s cybersecurity processes are an integral component.
Caterpillar’s board implements its risk oversight function both as a board and through delegation to board committees, which meet regularly and report back to the Caterpillar board. Caterpillar’s board has delegated the oversight of specific risks to board committees that align with their functional responsibilities. Caterpillar’s Audit Committee (the “Caterpillar AC”) assists the Caterpillar board in overseeing the enterprise risk management program and evaluates and monitors risks related to, among other things, Caterpillar’s information security program. The Caterpillar AC assesses cybersecurity and information technology risks and the controls implemented to monitor and mitigate these risks. Caterpillar’s Chief Information Officer & Senior Vice President, Caterpillar IT (the “Caterpillar CIO”) attends all bimonthly Caterpillar AC meetings and provides cybersecurity updates to the Caterpillar AC and Caterpillar board.
Caterpillar’s cybersecurity program is overseen by the Caterpillar CIO, who has been a Caterpillar employee for nearly 25 years. Prior to her current appointment as Caterpillar’s CIO in September 2020, she was the Chief Information Officer for the Caterpillar’s Financial Products Division, which includes Cat Financial.Our Risk Committee provides oversight over our information security program and other matters related to cybersecurity.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Caterpillar’s cybersecurity program is overseen by the Caterpillar CIO, who has been a Caterpillar employee for nearly 25 years. Prior to her current appointment as Caterpillar’s CIO in September 2020, she was the Chief Information Officer for the Caterpillar’s Financial Products Division, which includes Cat Financial. Her extensive background in IT includes global leadership for large-scale systems transformations, cybersecurity, cloud and application management, global data center management, worldwide network, servers and storage, database management and end-user services.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
Caterpillar’s board implements its risk oversight function both as a board and through delegation to board committees, which meet regularly and report back to the Caterpillar board. Caterpillar’s board has delegated the oversight of specific risks to board committees that align with their functional responsibilities. Caterpillar’s Audit Committee (the “Caterpillar AC”) assists the Caterpillar board in overseeing the enterprise risk management program and evaluates and monitors risks related to, among other things, Caterpillar’s information security program. The Caterpillar AC assesses cybersecurity and information technology risks and the controls implemented to monitor and mitigate these risks. Caterpillar’s Chief Information Officer & Senior Vice President, Caterpillar IT (the “Caterpillar CIO”) attends all bimonthly Caterpillar AC meetings and provides cybersecurity updates to the Caterpillar AC and Caterpillar board.
Our cybersecurity program is managed by our Chief Information Security Officer, who reports on a regular basis to our Risk Committee on cybersecurity matters and who regularly collaborates with the Caterpillar cybersecurity team.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
 
The accompanying consolidated financial statements include the accounts of Cat Financial and a consolidated variable interest entity (VIE). We consolidate all VIEs where we are the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. Please refer to Note 9 for more information.

We have customers and dealers that are VIEs of which we are not the primary beneficiary. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. Credit risk was evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses.
Finance Receivables Finance Receivables
Finance receivables are generally classified as held for investment and recorded at amortized cost given that we have the intent and ability to hold them for the foreseeable future. Amortized cost is the principal balance outstanding plus accrued interest less write-downs, net of unamortized purchase discounts and deferred fees and costs.
Revenue Recognition Revenue Recognition
 
We record finance revenue over the life of the related finance receivables using the interest method, including the accretion of purchased receivables discount and related fee revenue, upfront fees and certain direct origination costs that are deferred. Operating lease revenue is recorded on a straight-line basis over the term of the lease.

We suspend recognition of finance revenue and operating lease revenue and place the account on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). We resume recognition of revenue, and recognize previously suspended income, when we consider collection of remaining amounts to be probable.

Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. We write off interest earned but uncollected prior to the receivables being placed on non-accrual status through Provision for credit losses when, in the judgment of management, we consider it to be uncollectible.
 
We participate in certain marketing programs offered in conjunction with Caterpillar and/or Caterpillar dealers that allow us to periodically offer financing to customers at interest rates that are below market rates. Under these marketing programs, Caterpillar and/or the dealer funds an amount at the outset of the transaction, which we then recognize as finance revenue over the term of the financing. The funds we receive from Caterpillar and/or the dealer equal an amount that when combined with the customer’s contractual interest provides us with a market interest rate.
Other revenue includes: (1) late charges, (2) fee revenue, primarily commitment fees, (3) gains and losses on sales of returned or repossessed equipment, (4) impairments on returned or repossessed equipment held for sale, (5) gains and losses on loan and lease sales and (6) other miscellaneous revenues. Other revenue items are recognized in accordance with relevant authoritative pronouncements.
Equipment on Operating Leases Equipment on Operating Leases
We typically pay property taxes on operating leases directly to the taxing authorities and invoice the lessee for reimbursement. These property tax reimbursements are accounted for as variable lease payments and are included in Operating lease revenues in the Consolidated Statements of Profit. We individually assess our operating lease receivables for impairment. If collectability of a recorded operating lease receivable is not considered probable, we recognize a current-period adjustment against operating lease revenue.
Depreciation Depreciation
 
We recognize depreciation for equipment on operating leases using the straight-line method over the lease term, typically one to seven years. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term.
Residual Values Residual Values
 
The residual values for operating leases are included in Equipment on operating leases, net in the Consolidated Statements of Financial Position. The residual values for finance leases are included in Finance receivables, net in the Consolidated Statements of Financial Position.

During the term of our leases, we monitor residual values. For operating leases, we record adjustments to depreciation expense reflecting changes in residual value estimates prospectively on a straight-line basis. For finance leases, we recognize residual value adjustments through a reduction of finance revenue over the remaining lease term.

We evaluate the carrying value of equipment on operating leases for potential impairment when we determine a triggering event has occurred. When a triggering event occurs, we perform a test for recoverability by comparing projected undiscounted future cash flows to the carrying value of the equipment on operating leases. If the test for recoverability identifies a possible impairment, we measure the fair value of the equipment on operating leases in accordance with the fair value measurement framework. We recognize an impairment charge for the amount by which the carrying value of the equipment on operating leases exceeds its estimated fair value.
Derivative Financial Instruments Derivative Financial Instruments
 
Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate and interest rate exposures. Our policy specifies that derivatives are not to be used for speculative purposes. The derivatives that we use are primarily foreign currency forward, option and cross currency contracts and interest rate contracts. All derivatives are recorded at fair value. See Note 7 for additional information.
Allowance for Credit Losses Allowance for Credit Losses
 
The allowance for credit losses is management’s estimate of expected losses over the life of our finance receivables portfolio calculated using loss forecast models that take into consideration historical credit loss experience, current economic conditions and forecasts and scenarios that capture country and industry-specific economic factors. In addition, we consider qualitative factors not able to be fully captured in our loss forecast models, including borrower-specific and company-specific factors. These qualitative factors are subjective and require a degree of management judgment.
We measure the allowance for credit losses on a collective (pool) basis when similar risk characteristics exist and on an individual basis when we determine that similar risk characteristics do not exist. We identify finance receivables for individual evaluation based on past-due status and information available about the customer, such as financial statements, news reports and published credit ratings, as well as general information regarding industry trends and the economic environment in which our customers operate. The allowance for credit losses attributable to finance receivables that are individually evaluated is based on the present value of expected future cash flows discounted at the receivables’ effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivables. In determining collateral value, we estimate the current fair market value of the collateral less selling costs. We also consider credit enhancements such as additional collateral and contractual third-party guarantees. See Note 2 for a description of our portfolio segments and allowance methodologies.

Receivable balances, including accrued interest, are written off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible (generally upon repossession of the collateral). Generally, the amount of the write-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost of the receivable. Subsequent recoveries, if any, are credited to the allowance for credit losses when received.
Income Taxes Income Taxes
 
We determine the provision for income taxes using the asset and liability approach taking into account guidance related to uncertain tax positions. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. We recognize a current liability for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. We adjust deferred taxes for enacted changes in tax rates and tax laws. We record valuation allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. See Note 10 for further discussion.
 
We join Caterpillar in the filing of a consolidated U.S. Federal income tax return and certain state income tax returns. In accordance with our tax sharing agreement with Caterpillar, we generally pay to or receive from Caterpillar our allocated share of income taxes or credits reflected in these consolidated filings. This amount is calculated on a separate return basis by taking taxable income times the applicable statutory tax rate and includes payment for certain tax attributes earned during the year.
Foreign Currency Translation Foreign Currency Translation
 
The functional currency for most of our subsidiaries is the respective local currency. We include gains and losses resulting from the remeasurement of foreign currency amounts to the functional currency in Other income (expense) in the Consolidated Statements of Profit. We include gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars in Accumulated other comprehensive income (loss) in the Consolidated Statements of Financial Position.
Estimates in Financial Statements Estimates in Financial Statements
 
The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts. Significant estimates include residual values for leased assets, allowance for credit losses and income taxes. Actual results may differ from these estimates.
New Accounting Pronouncements New Accounting Pronouncements
 
Adoption of New Accounting Standards

Segment reporting (ASU 2023-07) - In November 2023, the Financial Accounting Standards Board (FASB) issued accounting guidance that requires incremental disclosures related to reportable segments which includes significant segment expense categories and amounts for each reportable segment. The expanded annual disclosures were effective for our year ending December 31, 2024, and the expanded interim disclosures are effective in 2025 and will be applied retrospectively to all prior periods presented.

We consider the applicability and impact of all Accounting Standards Updates (ASUs). We adopted the following ASU effective January 1, 2024, which did not have a material impact on our financial statements:
ASUDescription
2023-01Leases – Common control arrangements
Accounting Standards Issued But Not Yet Adopted

Income tax reporting (ASU 2023-09) - In December 2023, the FASB issued accounting guidance to expand the annual disclosure requirements for income taxes, primarily related to the rate reconciliation and income taxes paid. The expanded disclosures are effective for our year ending December 31, 2025, and can be applied prospectively or retrospectively. We are in the process of evaluating the effect of this new guidance on the related disclosures.

Disaggregation of income statement expenses (ASU 2024-03) - In November 2024, the FASB issued accounting guidance to enhance transparency into the nature and function of income statement expenses. The amendments require that on an annual and interim basis, entities disclose disaggregated operating expense information about specific categories, including employee compensation, depreciation and amortization. The expanded annual disclosures are effective for our year ending December 31, 2027, and the expanded interim disclosures are effective in 2028, with early adoption permitted. We are in the process of evaluating the effect of this new guidance on the related disclosures.

All other ASUs issued but not yet adopted were assessed and determined that they either were not applicable or were not expected to have a material impact on our financial statements.
Fair Value Measurements Fair Value Measurements
The guidance on fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This guidance also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. In accordance with this guidance, fair value measurements are classified under the following hierarchy:
 
•Level 1 – Quoted prices for identical instruments in active markets.
•Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets.
•Level 3 – Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable.

When available, we use quoted market prices to determine fair value and we classify such measurements within Level 1. In some cases where market prices are not available, we make use of observable market-based inputs to calculate fair value, in which case the measurements are classified within Level 2. If quoted or observable market prices are not available, fair value is based upon valuations in which one or more significant inputs are unobservable, including internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves and currency rates. These measurements are classified within Level 3.

We classify fair value measurements according to the lowest level input or value-driver that is significant to the valuation. We may therefore classify a measurement within Level 3 even though there may be significant inputs that are readily observable.

Fair value measurement includes the consideration of nonperformance risk. Nonperformance risk refers to the risk that an obligation (either by a counterparty or us) will not be fulfilled. For financial assets traded in an active market, the nonperformance risk is included in the market price. For certain other financial assets and liabilities, our fair value calculations have been adjusted accordingly.
Derivative financial instruments
The fair value of interest rate contracts is primarily based on a standard industry accepted valuation model that utilizes the appropriate market-based forward swap curves and zero-coupon interest rates to determine discounted cash flows. The fair value of foreign currency forward and cross currency contracts is based on standard industry accepted valuation models that discount cash flows resulting from the differential between the contract price and the market-based forward rate.
 
Derivative financial instruments are measured on a recurring basis at fair value and are classified as Level 2 measurements. We had derivative financial instruments included in our Consolidated Statements of Financial Position in a net asset position of $183 million and $65 million as of December 31, 2024 and 2023, respectively. See Note 7 for additional information.

Loans measured at fair value
Certain loans are subject to measurement at fair value on a nonrecurring basis and are classified as Level 3 measurements. A loan is measured at fair value when management determines that collection of contractual amounts due is not probable and the loan is individually evaluated. In these cases, an allowance for credit losses may be established based either on the present value of expected future cash flows discounted at the receivables’ effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. In determining collateral value, we estimate the current fair market value of the collateral less selling costs. We had loans carried at fair value of $59 million and $55 million as of December 31, 2024 and 2023, respectively.

B.Fair Values of Financial Instruments
Cash and cash equivalents, restricted cash (included in Other assets in the Consolidated Statements of Financial Position), and Short-term borrowings (see Note 5) are classified as Level 1 measurements and carrying amount approximates fair value. We use the following methods and assumptions to estimate the fair value of our financial instruments not carried at fair value:

•Finance receivables, net – We estimate fair value by discounting the future cash flows using current rates representative of receivables with similar remaining maturities. 
•Long-term debt – We estimate fair value for fixed and floating-rate debt based on quoted market prices.
Segments
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, in most cases, 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 for large mining customers worldwide.
•Power - Provides financing worldwide for large 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. For the reconciliation of Profit before income taxes, we have grouped the reconciling items as follows:

•Unallocated - Corporate requirements and strategies that are considered to be for the benefit of the entire organization. Also included are the consolidated results of the SPC (see Note 9 for additional information) and other miscellaneous items.
•Timing - Timing differences in the recognition of costs between segment reporting and consolidated external reporting.
•Methodology - Methodology differences between segment reporting and consolidated external reporting are as follows:
◦Segment assets include off-balance sheet managed assets for which we maintain servicing responsibilities.
◦The impact of differences between the actual leverage and the segment leverage ratios.
◦Interest expense includes realized forward points on foreign currency forward contracts.
◦The net gain or loss from interest rate derivatives is excluded from segment reporting.
•Divestiture - Loss on divestiture included in Other income (expense). See Note 14 for more information.
v3.25.0.1
Finance Receivables (Tables)
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Summary of finance receivables included in the Consolidated Statements of Financial Position
A summary of finance receivables included in the Consolidated Statements of Financial Position as of December 31, was as follows:
(Millions of dollars)20242023
Retail loans(1)
$17,331 $16,501 
Retail leases6,380 6,554 
Caterpillar purchased receivables4,283 3,949 
Wholesale loans(1)
1,235 1,069 
Wholesale leases2 4 
Total finance receivables29,231 28,077 
Less: Allowance for credit losses(267)(331)
Total finance receivables, net$28,964 $27,746 
(1) Includes failed sale leasebacks.
Maturities of finance receivables
Maturities of our finance receivables, as of December 31, 2024, reflect contractual repayments due from borrowers and were as follows:
(Millions of dollars)      
Amounts due inRetail
loans		Retail
leases		Caterpillar
purchased
receivables		Wholesale
loans		Wholesale
leases		Total
2025$7,593 $2,451 $4,317 $885 $1 $15,247 
20264,547 1,711 — 177 — 6,435 
20273,153 1,028 — 137 — 4,318 
20281,764 556 — 8 — 2,328 
2029624 250 — 1 — 875 
Thereafter150 87 — — — 237 
Total17,831 6,083 4,317 1,208 1 29,440 
Guaranteed residual value(1)
6 403 — 31 — 440 
Unguaranteed residual value(1)
2 585 — 2 1 590 
Unearned income(508)(691)(34)(6)— (1,239)
Total$17,331 $6,380 $4,283 $1,235 $2 $29,231 
(1) For Retail loans and Wholesale loans, represents residual value on failed sale leasebacks.
Allowance for credit losses and total finance receivables
An analysis of the allowance for credit losses as of December 31, was as follows:
(Millions of dollars)20242023
Allowance for Credit Losses:CustomerDealerCaterpillar
Purchased
Receivables		TotalCustomerDealerCaterpillar
Purchased
Receivables		Total
Beginning Balance$276 $51 $4 $331 $277 $65 $4 $346 
Write-offs(125)(47)— (172)(115)— — (115)
Recoveries57 — — 57 50 — — 50 
Provision for credit losses(1)
84 — 1 85 61 (14)— 47 
Other(34)— — (34)3 — — 3 
Ending Balance$258 $4 $5 $267 $276 $51 $4 $331 
Finance Receivables$22,199 $2,749 $4,283 $29,231 $21,177 $2,951 $3,949 $28,077 
(1) Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables.
Summary of write-offs by origination year
Gross write-offs by origination year for our Customer portfolio segment were as follows:
(Millions of dollars)Year Ended December 31, 2024
20242023202220212020PriorRevolving
Finance
Receivables		Total
North America$2 $19 $13 $6 $3 $1 $9 $53 
EAME1 4 5 4 2 1 — 17 
Asia/Pacific1 4 5 4 1 1 — 16 
Latin America— 3 6 5 3 8 — 25 
Mining8 3 3 — — — — 14 
Total$12 $33 $32 $19 $9 $11 $9 $125 
Year Ended December 31, 2023
20232022202120202019PriorRevolving Finance ReceivablesTotal
North America$2 $11 $11 $5 $3 $2 $12 $46 
EAME1 5 6 4 1 — — 17 
Asia/Pacific2 5 8 5 1 — — 21 
Latin America— 8 5 6 1 10 — 30 
Power— — — — — 1 — 1 
Total$5 $29 $30 $20 $6 $13 $12 $115 
Amortized cost of finance receivables in the Customer portfolio segment by origination year
The aging category of the amortized cost of finance receivables in our Customer portfolio segment by origination year were as follows:
(Millions of dollars)December 31, 2024
20242023202220212020PriorRevolving
Finance
Receivables		Total
Finance
Receivables
North America
Current$5,340 $3,035 $1,567 $980 $244 $23 $385 $11,574 
31-60 days past due30 42 29 18 5 1 3 128 
61-90 days past due9 14 10 6 2 1 1 43 
91+ days past due13 37 26 16 6 2 1 101 
EAME
Current1,244 874 532 285 92 72 — 3,099 
31-60 days past due7 10 4 3 1 — — 25 
61-90 days past due3 4 1 1 1 — — 10 
91+ days past due3 14 8 6 4 1 — 36 
Asia/Pacific
Current1,064 662 313 126 31 4 46 2,246 
31-60 days past due4 6 5 2 — — — 17 
61-90 days past due1 1 2 1 — — — 5 
91+ days past due4 1 2 1 1 — — 9 
Latin America
Current800 363 220 60 8 2 — 1,453 
31-60 days past due4 6 5 1 — 2 — 18 
61-90 days past due1 2 1 — — — — 4 
91+ days past due2 6 8 4 1 1 — 22 
Mining
Current1,067 775 450 214 69 41 21 2,637 
31-60 days past due— 1 — — — — — 1 
61-90 days past due— 1 — — — — — 1 
91+ days past due4 5 5 1 — 3 — 18 
Power
Current190 184 40 43 64 63 166 750 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — — — — — 
91+ days past due— — — — — 2 — 2 
Totals by Aging Category
Current9,705 5,893 3,122 1,708 508 205 618 21,759 
31-60 days past due45 65 43 24 6 3 3 189 
61-90 days past due14 22 14 8 3 1 1 63 
91+ days past due26 63 49 28 12 9 1 188 
Total$9,790 $6,043 $3,228 $1,768 $529 $218 $623 $22,199 
(Millions of dollars)December 31, 2023
20232022202120202019PriorRevolving
Finance
Receivables		Total
Finance
Receivables
North America
Current$4,430 $2,628 $2,000 $745 $220 $32 $312 $10,367 
31-60 days past due28 31 24 14 7 1 4 109 
61-90 days past due10 11 8 4 1 — 2 36 
91+ days past due12 23 18 9 4 1 2 69 
EAME
Current1,336 895 588 258 111 105 — 3,293 
31-60 days past due10 9 7 3 1 — — 30 
61-90 days past due4 3 3 1 1 — — 12 
91+ days past due7 17 15 8 3 1 — 51 
Asia/Pacific
Current1,134 690 368 115 37 7 45 2,396 
31-60 days past due5 7 8 2 — — — 22 
61-90 days past due2 3 3 2 — — — 10 
91+ days past due1 5 3 3 1 — — 13 
Latin America
Current750 520 219 59 23 6 — 1,577 
31-60 days past due9 10 6 1 — — — 26 
61-90 days past due2 4 1 — — — — 7 
91+ days past due2 10 8 5 8 11 — 44 
Mining
Current1,106 694 396 126 86 27 66 2,501 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — 1 1 — 2 
91+ days past due— — 1 — — 1 — 2 
Power
Current152 52 65 75 42 59 162 607 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — — — — — 
91+ days past due— — — — — 3 — 3 
Totals by Aging Category
Current8,908 5,479 3,636 1,378 519 236 585 20,741 
31-60 days past due52 57 45 20 8 1 4 187 
61-90 days past due18 21 15 7 3 1 2 67 
91+ days past due22 55 45 25 16 17 2 182 
Total$9,000 $5,612 $3,741 $1,430 $546 $255 $593 $21,177 
Aging related to finance receivables
The aging category of the amortized cost of finance receivables in our Caterpillar Purchased Receivables portfolio segment as of December 31, were as follows:
(Millions of dollars)2024
 31-60
Days
Past Due		61-90
Days
Past Due		91+
Days
Past Due		Total
Past Due		CurrentTotal Finance
Receivables
North America$14 $5 $4 $23 $2,584 $2,607 
EAME3 1 — 4 740 744 
Asia/Pacific— — 1 1 528 529 
Latin America— — — — 383 383 
Power2 1 1 4 16 20 
Total$19 $7 $6 $32 $4,251 $4,283 
2023
 31-60
Days
Past Due		61-90
Days
Past Due		91+
Days
Past Due		Total
Past Due		CurrentTotal Finance
Receivables
North America$15 $5 $4 $24 $2,212 $2,236 
EAME3 1 1 5 732 737 
Asia/Pacific2 — — 2 593 595 
Latin America1 4 18 23 348 371 
Power— — — — 10 10 
Total$21 $10 $23 $54 $3,895 $3,949 
Finance receivables on non-accrual status
In our Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income as of December 31, were as follows:
(Millions of dollars)20242023
Amortized CostAmortized Cost
Non-accrual With an Allowance91+ Still
Accruing		Non-accrual With an Allowance91+ Still
Accruing
North America$83 $20 $52 $20 
EAME33 5 34 18 
Asia/Pacific5 5 8 5 
Latin America24 — 48 1 
Mining29 — 2 — 
Power2 — 8 — 
Total$176 $30 $152 $44 
Finance receivables modified as TDRs
The financial effects of term extensions and payment delays for borrowers experiencing financial difficulty for the years ended December 31, were as follows:
(In months)20242023
Weighted average extension to term of modified contracts815
Weighted average payment deferral and/or interest only periods67
v3.25.0.1
Equipment on Operating Leases (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Carrying amount of Equipment on operating leases, net
The carrying amount of Equipment on operating leases, net in the Consolidated Statements of Financial Position as of December 31, was as follows: 
(Millions of dollars)20242023
Equipment on operating leases, at cost$4,207 $4,433 
Less: Accumulated depreciation(1,427)(1,419)
Equipment on operating leases, net$2,780 $3,014 
Schedule of payments due for operating leases
At December 31, 2024, rental payments to be received for equipment on operating leases were as follows: 
(Millions of dollars)
20252026202720282029ThereafterTotal
$723 $470 $256 $131 $45 $15 $1,640 
v3.25.0.1
Short-Term Borrowings (Tables)
 12 Months Ended
Dec. 31, 2024
Short-Term Debt [Abstract]  
Short-term borrowings
Short-term borrowings outstanding as of December 31, were comprised of the following: 
(Millions of dollars)20242023
 BalanceWeighted Avg. RateBalanceWeighted Avg. Rate
Commercial paper, net$3,946 4.5%$4,069 5.2%
Bank borrowings and other165 10.8%330 10.0%
Variable denomination floating rate demand notes282 4.2%244 5.2%
Total$4,393  $4,643  
v3.25.0.1
Long-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2024
Long-Term Debt, Unclassified [Abstract]  
Long-term debt
Long-term debt outstanding as of December 31, was comprised of the following: 
(Millions of dollars)20242023
 BalanceWeighted Avg. RateBalanceWeighted Avg. Rate
Medium-term notes$24,940 3.9%$23,165 3.2%
Unamortized discount and debt issuance costs(42) (34) 
Fair value adjustments(16)(46)
Medium-term notes, net24,882  23,085  
Bank borrowings and other524 9.6%527 6.6%
Total$25,406  $23,612  
Maturities of Long-term debt outstanding (excluding fair value adjustments) in each of the next five years
Maturities of Long-term debt outstanding (excluding fair value adjustments) as of December 31, 2024, in each of the next five years, are as follows: 
(Millions of dollars)
 
2025$6,619 
20268,508 
20277,741 
202811 
20292,093 
v3.25.0.1
Derivative Financial Instruments and Risk Management (Tables)
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position
The location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position as of December 31, were as follows:
(Millions of dollars)20242023
Assets1
Liabilities2
Assets1
Liabilities2
Designated derivatives
Foreign exchange contracts$228 $(89)$207 $(73)
Interest rate contracts10 (31)50 (68)
$238 $(120)$257 $(141)
Undesignated derivatives
Foreign exchange contracts$84 $(19)$28 $(79)
$84 $(19)$28 $(79)
(1) Assets are classified in the Consolidated Statements of Financial Position as Other assets.
(2) Liabilities are classified in the Consolidated Statements of Financial Position as Accrued expenses.
Schedule of effect of derivatives designated as cash flow hedging instruments on the Consolidated Statements of Profit
Gains (Losses) on derivative instruments for the years ended December 31, were categorized as follows:
(Millions of dollars)Fair Value /
Undesignated Hedges		Cash Flow Hedges
Gains (Losses)
Recognized1
Gains (Losses)
Recognized in AOCI
Gains (Losses)
Reclassified from AOCI2
202420232022202420232022202420232022
Foreign exchange contracts$167 $(39)$(111)$255 $(22)$310 $213 $(68)$370 
Interest rate contracts(76)(75)(7)11 9 111 41 58 14 
$91 $(114)$(118)$266 $(13)$421 $254 $(10)$384 
(1) Foreign exchange contract gains (losses) are included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense.
(2) Foreign exchange contract gains (losses) are primarily included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense.
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location
Amounts recorded in the Consolidated Statements of Financial Position related to cumulative basis adjustments for fair value hedges as of December 31, were as follows:
(Millions of dollars)Carrying Value of
the Hedged Liabilities		Cumulative Amount of Fair Value
 Hedging Adjustment Included in the
Carrying Value of the Hedged
 Liabilities
2024202320242023
Current maturities of long-term debt$483 $982 $(16)$(23)
Long-term debt3,247 2,128 — (23)
Total$3,730 $3,110 $(16)$(46)
Schedule of effect of net settlement provisions of the master netting agreements on our derivative balances
The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event as of December 31, was as follows:
(Millions of dollars)20242023
AssetsLiabilitiesAssetsLiabilities
Gross amounts recognized$322 $(139)$285 $(220)
Financial instruments not offset(54)54 (106)106 
Net amount$268 $(85)$179 $(114)
v3.25.0.1
Accumulated Other Comprehensive Income (Loss) (Tables)
 12 Months Ended
Dec. 31, 2024
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Accumulated other comprehensive income (loss) Changes in the balances for each component of AOCI for the years ended December 31, were as follows:
(Millions of dollars)202420232022
Foreign currency translation
Balance at beginning of year$(996)$(1,068)$(762)
Gains (losses) on foreign currency translation(299)55 (276)
Less: Tax provision/(benefit)22 (17)30 
Net gains (losses) on foreign currency translation(321)72 (306)
(Gains) losses reclassified to earnings61 — — 
Less: Tax provision/(benefit)— — — 
Net (gains) losses reclassified to earnings61 — — 
Other comprehensive income (loss), net of tax(260)72 (306)
Balance at end of year$(1,256)$(996)$(1,068)
Derivative financial instruments
Balance at beginning of year$18 $21 $(12)
Gains (losses) deferred266 (13)421 
Less: Tax provision/(benefit)74 (3)97 
Net gains (losses) deferred192 (10)324 
(Gains) losses reclassified to earnings(254)10 (384)
Less: Tax (provision)/benefit(68)3 (93)
Net (gains) losses reclassified to earnings(186)7 (291)
Other comprehensive income (loss), net of tax6 (3)33 
Balance at end of year$24 $18 $21 
Total Accumulated other comprehensive income (loss) at end of year$(1,232)$(978)$(1,047)
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Reconciliation of the U.S. federal statutory rate to effective rate
A reconciliation of the U.S. federal statutory rate to the effective rate for the years ended December 31, was as follows: 
(Millions of dollars)202420232022
Taxes computed at U.S. statutory rates$112 21.0 %$160 21.0 %$154 21.0 %
(Decreases) increases in taxes resulting from:    
State income tax, net of federal tax 1
1 0.2 %5 0.5 %4 0.5 %
Non-U.S. subsidiaries taxed at other than the U.S. rate(14)(2.6)%21 2.8 %19 2.6 %
Valuation allowances1 0.2 %(14)(1.8)%15 2.1 %
Tax law change for currency translation(224)(42.0)%— — %— — %
Tax loss on divestiture of a non-U.S. subsidiary48 9.0 %— — %— — %
Dividend withholding tax & indefinite reinvestment change2 0.4 %30 4.0 %— — %
Foreign currency translation taxed at non- U.S. subsidiaries8 1.5 %(10)(1.3)%(4)(0.5)%
Other, net— — %— — %1 0.1 %
Provision for income taxes$(66)(12.4)%$192 25.2 %$189 25.8 %
Components of Profit before income taxes
The components of Profit before income taxes for the years ended December 31, were as follows: 
(Millions of dollars)202420232022
U.S.$173 $384 $439 
Non-U.S.360 376 292 
Total$533 $760 $731 
Components of the Provision for income taxes
The components of the Provision for income taxes for the years ended December 31, were as follows: 
(Millions of dollars)
Current income tax provision:202420232022
U.S.$117 $36 $116 
Non-U.S.109 150 95 
State (U.S.)2 3 5 
 228 189 216 
Deferred income tax provision (benefit):   
U.S.(283)33 (36)
Non-U.S.9 (31)8 
State (U.S.)(20)1 1 
 (294)3 (27)
Total Provision for income taxes$(66)$192 $189 
Deferred income tax assets and liabilities The amounts of deferred income taxes at December 31, included in the following lines in our Consolidated Statements of Financial Position were: 
(Millions of dollars)20242023
Assets:  
Other assets$114 $144 
Liabilities:  
Other liabilities(330)(617)
Deferred income taxes, net$(216)$(473)
 
Our consolidated deferred income taxes consisted of the following components as of December 31: 
(Millions of dollars)
Deferred income tax assets:20242023
Allowance for credit losses$77 $95 
Tax carryforwards122 103 
Revenue timing differences19 16 
 218 214 
Deferred income tax liabilities:
Capital assets, including lease basis differences(367)(430)
Deferred income tax on translation adjustment— (200)
Undistributed profits of non-U.S. subsidiaries(15)(16)
(382)(646)
Valuation allowance for deferred income tax assets(51)(39)
Other, net(1)(2)
Deferred income taxes, net$(216)$(473)
Schedule of unrecognized tax benefits
A reconciliation of the beginning and ending amounts of gross unrecognized income tax benefits for uncertain income tax positions, including positions impacting only the timing of income tax benefits was as follows: 
(Millions of dollars)202420232022
Reconciliation of unrecognized income tax benefits(1):
   
Balance at beginning of year$119 $127 $131 
Additions for income tax positions related to current year15 — — 
Additions for income tax positions related to prior year— — — 
Reductions for income tax positions related to prior year— (2)— 
Reductions for income tax positions related to settlements— (6)(4)
Balance at end of year$134 $119 $127 
Amount that, if recognized, would impact the effective tax rate$134 $119 $127 
(1) Foreign currency translation amounts are included within each line as applicable.
v3.25.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair values of financial instruments
Fair values of our financial instruments not carried at fair value as of December 31, were as follows:
(Millions of dollars)20242023
 Carrying 
Amount		Fair 
Value		Carrying 
Amount		Fair
 Value		Fair
Value
Levels		Reference
Assets
Finance receivables, net (excluding finance leases(1))
$22,026 $21,593 $20,746 $20,330 3Note 2
Liabilities
Long-term debt$25,406 $25,304 $23,612 $23,299 2Note 6
(1) Represents finance leases and failed sale leasebacks of $6.94 billion and $7.00 billion as of December 31, 2024 and 2023, respectively.
v3.25.0.1
Transactions with Related Parties (Tables)
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Transactions with related parties Information concerning these agreements was as follows: 
(Millions of dollars)202420232022
Payable to Caterpillar - borrowings as of December 31,$10 $24 $23 
Payable to Caterpillar - other as of December 31,118 113 101 
Notes receivable from Caterpillar as of December 31,559 527 482 
Other receivables from Caterpillar as of December 31,(2)
85 39 133 
Interest expense1 1 1 
Interest income on Notes Receivable with Caterpillar(1)
23 21 17 
(1) Included in Other revenues, net in the Consolidated Statements of Profit.
(2) Included in Other assets in the Consolidated Statements of Financial Position.
 
We have agreements with Caterpillar to purchase certain trade receivables at a discount. In addition, we receive fee revenue from Caterpillar for our centralized activities benefiting the global factoring program. Cash flows related to our factoring programs with Caterpillar are included in Net changes in Caterpillar purchased receivables within investing activities in the Consolidated Statements of Cash Flows. Information pertaining to these purchases was as follows: 
(Millions of dollars)202420232022
Purchases made$52,930 $53,382 $47,158 
Revenue earned625 617 417 
Purchased Receivables as of December 31,4,283 3,949 4,297 
v3.25.0.1
Segment and Geographic Information (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment information
Supplemental segment data and reconciliations to consolidated external reporting for the years ended December 31, was as follows:
(Millions of dollars)

 
2024
External
revenues		Interest expenseDepreciation on equipment leased to othersGeneral, operating and administrative expensesProvision
for
credit
losses
Other segment items(1)
Profit before income taxes
North America$1,988 $634 $512 $185 $70 $17 $570 
EAME380 143 54 89 (12)4 102 
Asia/Pacific271 100 4 77 — 3 87 
Latin America338 152 13 53 6 4 110 
Mining377 105 137 39 19 1 76 
Power65 33 2 11 (8)— 27 
Total Segments3,419 1,167 722 454 75 29 972 
Unallocated85 492 — 195 — (28)(574)
Timing(15)— — (16)— — 1 
Methodology— (372)— 11 — 17 344 
Divestiture— — — — — 210 (210)
Total$3,489 $1,287 $722 $644 $75 $228 $533 


 
2023
External
revenues		Interest expenseDepreciation on equipment leased to othersGeneral, operating and administrative expensesProvision
for
credit
losses
Other segment items(1)
Profit before income taxes
North America$1,786 $463 $512 $170 $32 $13 $596 
EAME368 103 57 93 3 11 101 
Asia/Pacific278 102 4 69 (2)— 105 
Latin America348 174 12 52 1 6 103 
Mining341 80 126 37 (2)1 99 
Power58 26 2 11 16 4 (1)
Total Segments3,179 948 713 432 48 35 1,003 
Unallocated83 394 — 162 1 33 (507)
Timing(14)— — (16)— — 2 
Methodology— (309)— 10 — 37 262 
Total$3,248 $1,033 $713 $588 $49 $105 $760 

 

2022
External
revenues		Interest expenseDepreciation on equipment leased to othersGeneral, operating and administrative expensesProvision
for
credit
losses
Other segment items(1)
Profit before income taxes
North America$1,512 $263 $503 $155 $25 $16 $550 
EAME285 79 55 88 49 2 12 
Asia/Pacific283 73 5 62 6 3 134 
Latin America284 136 10 43 7 3 85 
Mining294 42 143 35 9 2 63 
Power53 15 2 12 (15)2 37 
Total Segments2,711 608 718 395 81 28 881 
Unallocated35 204 — 143 — — (312)
Timing(12)— — (16)— — 4 
Methodology— (246)— 9 — 79 158 
Total$2,734 $566 $718 $531 $81 $107 $731 
(1) Other segment items are primarily costs related to repossessed and returned equipment.
(Millions of dollars)Assets as of December 31,
Capital Expenditures(1)
20242023202420232022
North America$17,800 $16,303 $787 $961 $862 
EAME4,668 5,117 74 73 117 
Asia/Pacific3,276 3,435 14 4 6 
Latin America2,423 2,583 21 21 25 
Mining3,306 3,059 156 229 120 
Power812 662 — — — 
Total Segments$32,285 $31,159 $1,052 $1,288 $1,130 
Unallocated1,921 2,054 33 9 9 
Timing(12)20 — — — 
Methodology128 145 — — — 
Inter-segment Eliminations(2)
(238)(266)— — — 
Total$34,084 $33,112 $1,085 $1,297 $1,139 
(1) Capital expenditures include expenditures for equipment on operating leases and other miscellaneous capital expenditures.
(2) Eliminations are primarily related to intercompany loans.
Geographic information
Geographic information: 
(Millions of dollars)202420232022
Revenues   
Inside U.S.$2,096 $1,879 $1,551 
All other1,393 1,369 1,183 
Total$3,489 $3,248 $2,734 
Equipment on operating leases, net and property
  and equipment, net (included in Other assets)		20242023
Inside U.S.$1,925 $2,066 
Inside Canada478 539 
All other529 544 
Total$2,932 $3,149 
v3.25.0.1
Summary of Significant Accounting Policies (Details)
 12 Months Ended
Dec. 31, 2024
Operations and Summary of Significant Accounting Policies [Line Items]  
Period after which collection of future income is considered as not probable 120 days
Minimum  
Operations and Summary of Significant Accounting Policies [Line Items]  
Lease term used to calculate depreciation 1 year
Maximum  
Operations and Summary of Significant Accounting Policies [Line Items]  
Lease term used to calculate depreciation 7 years
v3.25.0.1
Finance Receivables - Summary of finance receivables included in the Consolidated Statements of Financial Position (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable      
Finance Receivables $ 29,231 $ 28,077  
Less: Allowance for credit losses (267) (331) $ (346)
Total finance receivables, net 28,964 27,746  
Retail loans      
Accounts, Notes, Loans and Financing Receivable      
Finance Receivables 17,331 16,501  
Retail leases      
Accounts, Notes, Loans and Financing Receivable      
Finance Receivables 6,380 6,554  
Caterpillar purchased receivables      
Accounts, Notes, Loans and Financing Receivable      
Finance Receivables 4,283 3,949 $ 4,297
Wholesale loans      
Accounts, Notes, Loans and Financing Receivable      
Finance Receivables 1,235 1,069  
Wholesale leases      
Accounts, Notes, Loans and Financing Receivable      
Finance Receivables $ 2 $ 4  
v3.25.0.1
Finance Receivables - Maturities of finance receivables (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable      
2025 $ 15,247    
2026 6,435    
2027 4,318    
2028 2,328    
2029 875    
Thereafter 237    
Total 29,440    
Guaranteed residual value 440    
Unguaranteed residual value 590    
Unearned income (1,239)    
Total 29,231 $ 28,077  
Retail loans      
Accounts, Notes, Loans and Financing Receivable      
2025 7,593    
2026 4,547    
2027 3,153    
2028 1,764    
2029 624    
Thereafter 150    
Total 17,831    
Guaranteed residual value 6    
Unguaranteed residual value 2    
Unearned income (508)    
Total 17,331 16,501  
Retail leases      
Accounts, Notes, Loans and Financing Receivable      
2025 2,451    
2026 1,711    
2027 1,028    
2028 556    
2029 250    
Thereafter 87    
Total 6,083    
Guaranteed residual value 403    
Unguaranteed residual value 585    
Unearned income (691)    
Total 6,380 6,554  
Caterpillar Purchased Receivables      
Accounts, Notes, Loans and Financing Receivable      
2025 4,317    
2026 0    
2027 0    
2028 0    
2029 0    
Thereafter 0    
Total 4,317    
Guaranteed residual value 0    
Unguaranteed residual value 0    
Unearned income (34)    
Total 4,283 3,949 $ 4,297
Wholesale loans      
Accounts, Notes, Loans and Financing Receivable      
2025 885    
2026 177    
2027 137    
2028 8    
2029 1    
Thereafter 0    
Total 1,208    
Guaranteed residual value 31    
Unguaranteed residual value 2    
Unearned income (6)    
Total 1,235 1,069  
Wholesale leases      
Accounts, Notes, Loans and Financing Receivable      
2025 1    
2026 0    
2027 0    
2028 0    
2029 0    
Thereafter 0    
Total 1    
Guaranteed residual value 0    
Unguaranteed residual value 1    
Unearned income 0    
Total $ 2 $ 4  
v3.25.0.1
Finance Receivables - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
Rate
Dec. 31, 2023
USD ($)
Rate
Dec. 31, 2022
USD ($)
contracts
Accounts, Notes, Loans and Financing Receivable      
Finance lease revenue (included in retail and wholesale finance revenue) $ 437 $ 419 $ 429
Financing receivable, weighted average term 51 months    
Financing receivable, weighted average remaining term 27 months    
Period after which unpaid installments are considered as past due 30 days    
Construction related industries      
Accounts, Notes, Loans and Financing Receivable      
Concentration, percent of total portfolio | Rate 40.00% 40.00%  
Payment Deferral      
Accounts, Notes, Loans and Financing Receivable      
Financing receivable, modified, maximum period 4 months    
Extended Maturity      
Accounts, Notes, Loans and Financing Receivable      
Financing receivable, modified, maximum period 6 months    
Dealer      
Accounts, Notes, Loans and Financing Receivable      
Financing receivable, modified in period $ 0 $ 0  
Number of contracts | contracts     0
Dealer | Latin America      
Accounts, Notes, Loans and Financing Receivable      
Gross write-offs 47    
Financing receivable, over 91+ days past due   47  
Amortized Cost, Non-accrual, With an Allowance 0 47  
Caterpillar Purchased Receivables      
Accounts, Notes, Loans and Financing Receivable      
Financing receivable, modified in period 0 0  
Number of contracts | contracts     0
Customer      
Accounts, Notes, Loans and Financing Receivable      
Gross write-offs 11 13  
Financing receivable, over 91+ days past due 218 255  
Amortized Cost, Non-accrual, With an Allowance 176 152  
Financing receivable, premodification     $ 65
Financing receivable, modified in period $ 33 $ 47 $ 64
Financing receivable, modified in period, percent 0.15% 0.17%  
Customer | Latin America      
Accounts, Notes, Loans and Financing Receivable      
Gross write-offs $ 8 $ 10  
Amortized Cost, Non-accrual, With an Allowance $ 24 $ 48  
v3.25.0.1
Finance Receivables - Allowance for credit losses and total finance receivables (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Allowance for Credit Losses    
Beginning Balance $ 331 $ 346
Write-offs (172) (115)
Recoveries 57 50
Provision for credit losses 85 47
Other (34) 3
Ending Balance 267 331
Finance Receivables 29,231 28,077
Customer    
Financing Receivable, Allowance for Credit Losses    
Beginning Balance 276 277
Write-offs (125) (115)
Recoveries 57 50
Provision for credit losses 84 61
Other (34) 3
Ending Balance 258 276
Finance Receivables 22,199 21,177
Dealer    
Financing Receivable, Allowance for Credit Losses    
Beginning Balance 51 65
Write-offs (47) 0
Recoveries 0 0
Provision for credit losses 0 (14)
Other 0 0
Ending Balance 4 51
Finance Receivables 2,749 2,951
Caterpillar Purchased Receivables    
Financing Receivable, Allowance for Credit Losses    
Beginning Balance 4 4
Write-offs 0 0
Recoveries 0 0
Provision for credit losses 1 0
Other 0 0
Ending Balance 5 4
Finance Receivables $ 4,283 $ 3,949
v3.25.0.1
Finance Receivables - Summary of write-offs by origination year (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Write-offs by origination year [Line Items]    
Total $ 172 $ 115
Customer    
Write-offs by origination year [Line Items]    
2024 & 2023 12 5
2023 & 2022 33 29
2022 & 2021 32 30
2021 & 2020 19 20
2020 & 2019 9 6
Prior 11 13
Revolving Finance Receivables 9 12
Total $ 125 $ 115
Financing Receivable, Modifications    
Weighted average payment deferral and/or interest only periods 6 years 7 months
Customer | North America    
Write-offs by origination year [Line Items]    
2024 & 2023 $ 2 $ 2
2023 & 2022 19 11
2022 & 2021 13 11
2021 & 2020 6 5
2020 & 2019 3 3
Prior 1 2
Revolving Finance Receivables 9 12
Total 53 46
Customer | EAME    
Write-offs by origination year [Line Items]    
2024 & 2023 1 1
2023 & 2022 4 5
2022 & 2021 5 6
2021 & 2020 4 4
2020 & 2019 2 1
Prior 1 0
Revolving Finance Receivables 0 0
Total 17 17
Customer | Asia/Pacific    
Write-offs by origination year [Line Items]    
2024 & 2023 1 2
2023 & 2022 4 5
2022 & 2021 5 8
2021 & 2020 4 5
2020 & 2019 1 1
Prior 1 0
Revolving Finance Receivables 0 0
Total 16 21
Customer | Latin America    
Write-offs by origination year [Line Items]    
2024 & 2023 0 0
2023 & 2022 3 8
2022 & 2021 6 5
2021 & 2020 5 6
2020 & 2019 3 1
Prior 8 10
Revolving Finance Receivables 0 0
Total 25 30
Customer | Mining    
Write-offs by origination year [Line Items]    
2024 & 2023 8  
2023 & 2022 3  
2022 & 2021 3  
2021 & 2020 0  
2020 & 2019 0  
Prior 0  
Revolving Finance Receivables 0  
Total $ 14  
Customer | Power    
Write-offs by origination year [Line Items]    
2024 & 2023   0
2023 & 2022   0
2022 & 2021   0
2021 & 2020   0
2020 & 2019   0
Prior   1
Revolving Finance Receivables   0
Total   $ 1
v3.25.0.1
Finance Receivables - Amortized cost of finance receivables in the Customer portfolio segment by origination year (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Credit Quality Indicator    
Total $ 29,231 $ 28,077
Customer    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 9,790 9,000
2023 and 2022, respectively 6,043 5,612
2022 and 2021, respectively 3,228 3,741
2021 and 2020, respectively 1,768 1,430
2020 and 2019, respectively 529 546
Prior 218 255
Revolving Finance Receivables 623 593
Total 22,199 21,177
Customer | Current    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 9,705 8,908
2023 and 2022, respectively 5,893 5,479
2022 and 2021, respectively 3,122 3,636
2021 and 2020, respectively 1,708 1,378
2020 and 2019, respectively 508 519
Prior 205 236
Revolving Finance Receivables 618 585
Total 21,759 20,741
Customer | 31-60 days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 45 52
2023 and 2022, respectively 65 57
2022 and 2021, respectively 43 45
2021 and 2020, respectively 24 20
2020 and 2019, respectively 6 8
Prior 3 1
Revolving Finance Receivables 3 4
Total 189 187
Customer | 61-90 days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 14 18
2023 and 2022, respectively 22 21
2022 and 2021, respectively 14 15
2021 and 2020, respectively 8 7
2020 and 2019, respectively 3 3
Prior 1 1
Revolving Finance Receivables 1 2
Total 63 67
Customer | 91+ days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 26 22
2023 and 2022, respectively 63 55
2022 and 2021, respectively 49 45
2021 and 2020, respectively 28 25
2020 and 2019, respectively 12 16
Prior 9 17
Revolving Finance Receivables 1 2
Total 188 182
Customer | North America | Current    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 5,340 4,430
2023 and 2022, respectively 3,035 2,628
2022 and 2021, respectively 1,567 2,000
2021 and 2020, respectively 980 745
2020 and 2019, respectively 244 220
Prior 23 32
Revolving Finance Receivables 385 312
Total 11,574 10,367
Customer | North America | 31-60 days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 30 28
2023 and 2022, respectively 42 31
2022 and 2021, respectively 29 24
2021 and 2020, respectively 18 14
2020 and 2019, respectively 5 7
Prior 1 1
Revolving Finance Receivables 3 4
Total 128 109
Customer | North America | 61-90 days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 9 10
2023 and 2022, respectively 14 11
2022 and 2021, respectively 10 8
2021 and 2020, respectively 6 4
2020 and 2019, respectively 2 1
Prior 1 0
Revolving Finance Receivables 1 2
Total 43 36
Customer | North America | 91+ days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 13 12
2023 and 2022, respectively 37 23
2022 and 2021, respectively 26 18
2021 and 2020, respectively 16 9
2020 and 2019, respectively 6 4
Prior 2 1
Revolving Finance Receivables 1 2
Total 101 69
Customer | EAME | Current    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 1,244 1,336
2023 and 2022, respectively 874 895
2022 and 2021, respectively 532 588
2021 and 2020, respectively 285 258
2020 and 2019, respectively 92 111
Prior 72 105
Revolving Finance Receivables 0 0
Total 3,099 3,293
Customer | EAME | 31-60 days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 7 10
2023 and 2022, respectively 10 9
2022 and 2021, respectively 4 7
2021 and 2020, respectively 3 3
2020 and 2019, respectively 1 1
Prior 0 0
Revolving Finance Receivables 0 0
Total 25 30
Customer | EAME | 61-90 days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 3 4
2023 and 2022, respectively 4 3
2022 and 2021, respectively 1 3
2021 and 2020, respectively 1 1
2020 and 2019, respectively 1 1
Prior 0 0
Revolving Finance Receivables 0 0
Total 10 12
Customer | EAME | 91+ days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 3 7
2023 and 2022, respectively 14 17
2022 and 2021, respectively 8 15
2021 and 2020, respectively 6 8
2020 and 2019, respectively 4 3
Prior 1 1
Revolving Finance Receivables 0 0
Total 36 51
Customer | Asia/Pacific | Current    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 1,064 1,134
2023 and 2022, respectively 662 690
2022 and 2021, respectively 313 368
2021 and 2020, respectively 126 115
2020 and 2019, respectively 31 37
Prior 4 7
Revolving Finance Receivables 46 45
Total 2,246 2,396
Customer | Asia/Pacific | 31-60 days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 4 5
2023 and 2022, respectively 6 7
2022 and 2021, respectively 5 8
2021 and 2020, respectively 2 2
2020 and 2019, respectively 0 0
Prior 0 0
Revolving Finance Receivables 0 0
Total 17 22
Customer | Asia/Pacific | 61-90 days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 1 2
2023 and 2022, respectively 1 3
2022 and 2021, respectively 2 3
2021 and 2020, respectively 1 2
2020 and 2019, respectively 0 0
Prior 0 0
Revolving Finance Receivables 0 0
Total 5 10
Customer | Asia/Pacific | 91+ days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 4 1
2023 and 2022, respectively 1 5
2022 and 2021, respectively 2 3
2021 and 2020, respectively 1 3
2020 and 2019, respectively 1 1
Prior 0 0
Revolving Finance Receivables 0 0
Total 9 13
Customer | Mining | Current    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 1,067 1,106
2023 and 2022, respectively 775 694
2022 and 2021, respectively 450 396
2021 and 2020, respectively 214 126
2020 and 2019, respectively 69 86
Prior 41 27
Revolving Finance Receivables 21 66
Total 2,637 2,501
Customer | Mining | 31-60 days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 0 0
2023 and 2022, respectively 1 0
2022 and 2021, respectively 0 0
2021 and 2020, respectively 0 0
2020 and 2019, respectively 0 0
Prior 0 0
Revolving Finance Receivables 0 0
Total 1 0
Customer | Mining | 61-90 days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 0 0
2023 and 2022, respectively 1 0
2022 and 2021, respectively 0 0
2021 and 2020, respectively 0 0
2020 and 2019, respectively 0 1
Prior 0 1
Revolving Finance Receivables 0 0
Total 1 2
Customer | Mining | 91+ days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 4 0
2023 and 2022, respectively 5 0
2022 and 2021, respectively 5 1
2021 and 2020, respectively 1 0
2020 and 2019, respectively 0 0
Prior 3 1
Revolving Finance Receivables 0 0
Total 18 2
Customer | Latin America | Current    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 800 750
2023 and 2022, respectively 363 520
2022 and 2021, respectively 220 219
2021 and 2020, respectively 60 59
2020 and 2019, respectively 8 23
Prior 2 6
Revolving Finance Receivables 0 0
Total 1,453 1,577
Customer | Latin America | 31-60 days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 4 9
2023 and 2022, respectively 6 10
2022 and 2021, respectively 5 6
2021 and 2020, respectively 1 1
2020 and 2019, respectively 0 0
Prior 2 0
Revolving Finance Receivables 0 0
Total 18 26
Customer | Latin America | 61-90 days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 1 2
2023 and 2022, respectively 2 4
2022 and 2021, respectively 1 1
2021 and 2020, respectively 0 0
2020 and 2019, respectively 0 0
Prior 0 0
Revolving Finance Receivables 0 0
Total 4 7
Customer | Latin America | 91+ days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 2 2
2023 and 2022, respectively 6 10
2022 and 2021, respectively 8 8
2021 and 2020, respectively 4 5
2020 and 2019, respectively 1 8
Prior 1 11
Revolving Finance Receivables 0 0
Total 22 44
Customer | Power | Current    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 190 152
2023 and 2022, respectively 184 52
2022 and 2021, respectively 40 65
2021 and 2020, respectively 43 75
2020 and 2019, respectively 64 42
Prior 63 59
Revolving Finance Receivables 166 162
Total 750 607
Customer | Power | 31-60 days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 0 0
2023 and 2022, respectively 0 0
2022 and 2021, respectively 0 0
2021 and 2020, respectively 0 0
2020 and 2019, respectively 0 0
Prior 0 0
Revolving Finance Receivables 0 0
Total 0 0
Customer | Power | 61-90 days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 0 0
2023 and 2022, respectively 0 0
2022 and 2021, respectively 0 0
2021 and 2020, respectively 0 0
2020 and 2019, respectively 0 0
Prior 0 0
Revolving Finance Receivables 0 0
Total 0 0
Customer | Power | 91+ days past due    
Financing Receivable, Credit Quality Indicator    
2024 and 2023, respectively 0 0
2023 and 2022, respectively 0 0
2022 and 2021, respectively 0 0
2021 and 2020, respectively 0 0
2020 and 2019, respectively 0 0
Prior 2 3
Revolving Finance Receivables 0 0
Total $ 2 $ 3
v3.25.0.1
Finance Receivables -Aging related to finance receivables (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Financing Receivable, Past Due    
Finance Receivables $ 29,231 $ 28,077
Caterpillar Purchased Receivables    
Financing Receivable, Past Due    
Finance Receivables 4,283 3,949
Caterpillar Purchased Receivables | 31-60 days past due    
Financing Receivable, Past Due    
Finance Receivables 19 21
Caterpillar Purchased Receivables | 61-90 days past due    
Financing Receivable, Past Due    
Finance Receivables 7 10
Caterpillar Purchased Receivables | 91+ days past due    
Financing Receivable, Past Due    
Finance Receivables 6 23
Caterpillar Purchased Receivables | Total Past Due    
Financing Receivable, Past Due    
Finance Receivables 32 54
Caterpillar Purchased Receivables | Current    
Financing Receivable, Past Due    
Finance Receivables 4,251 3,895
Caterpillar Purchased Receivables | North America    
Financing Receivable, Past Due    
Finance Receivables 2,607 2,236
Caterpillar Purchased Receivables | North America | 31-60 days past due    
Financing Receivable, Past Due    
Finance Receivables 14 15
Caterpillar Purchased Receivables | North America | 61-90 days past due    
Financing Receivable, Past Due    
Finance Receivables 5 5
Caterpillar Purchased Receivables | North America | 91+ days past due    
Financing Receivable, Past Due    
Finance Receivables 4 4
Caterpillar Purchased Receivables | North America | Total Past Due    
Financing Receivable, Past Due    
Finance Receivables 23 24
Caterpillar Purchased Receivables | North America | Current    
Financing Receivable, Past Due    
Finance Receivables 2,584 2,212
Caterpillar Purchased Receivables | EAME    
Financing Receivable, Past Due    
Finance Receivables 744 737
Caterpillar Purchased Receivables | EAME | 31-60 days past due    
Financing Receivable, Past Due    
Finance Receivables 3 3
Caterpillar Purchased Receivables | EAME | 61-90 days past due    
Financing Receivable, Past Due    
Finance Receivables 1 1
Caterpillar Purchased Receivables | EAME | 91+ days past due    
Financing Receivable, Past Due    
Finance Receivables 0 1
Caterpillar Purchased Receivables | EAME | Total Past Due    
Financing Receivable, Past Due    
Finance Receivables 4 5
Caterpillar Purchased Receivables | EAME | Current    
Financing Receivable, Past Due    
Finance Receivables 740 732
Caterpillar Purchased Receivables | Asia/Pacific    
Financing Receivable, Past Due    
Finance Receivables 529 595
Caterpillar Purchased Receivables | Asia/Pacific | 31-60 days past due    
Financing Receivable, Past Due    
Finance Receivables 0 2
Caterpillar Purchased Receivables | Asia/Pacific | 61-90 days past due    
Financing Receivable, Past Due    
Finance Receivables 0 0
Caterpillar Purchased Receivables | Asia/Pacific | 91+ days past due    
Financing Receivable, Past Due    
Finance Receivables 1 0
Caterpillar Purchased Receivables | Asia/Pacific | Total Past Due    
Financing Receivable, Past Due    
Finance Receivables 1 2
Caterpillar Purchased Receivables | Asia/Pacific | Current    
Financing Receivable, Past Due    
Finance Receivables 528 593
Caterpillar Purchased Receivables | Latin America    
Financing Receivable, Past Due    
Finance Receivables 383 371
Caterpillar Purchased Receivables | Latin America | 31-60 days past due    
Financing Receivable, Past Due    
Finance Receivables 0 1
Caterpillar Purchased Receivables | Latin America | 61-90 days past due    
Financing Receivable, Past Due    
Finance Receivables 0 4
Caterpillar Purchased Receivables | Latin America | 91+ days past due    
Financing Receivable, Past Due    
Finance Receivables 0 18
Caterpillar Purchased Receivables | Latin America | Total Past Due    
Financing Receivable, Past Due    
Finance Receivables 0 23
Caterpillar Purchased Receivables | Latin America | Current    
Financing Receivable, Past Due    
Finance Receivables 383 348
Caterpillar Purchased Receivables | Power    
Financing Receivable, Past Due    
Finance Receivables 20 10
Caterpillar Purchased Receivables | Power | 31-60 days past due    
Financing Receivable, Past Due    
Finance Receivables 2 0
Caterpillar Purchased Receivables | Power | 61-90 days past due    
Financing Receivable, Past Due    
Finance Receivables 1 0
Caterpillar Purchased Receivables | Power | 91+ days past due    
Financing Receivable, Past Due    
Finance Receivables 1 0
Caterpillar Purchased Receivables | Power | Total Past Due    
Financing Receivable, Past Due    
Finance Receivables 4 0
Caterpillar Purchased Receivables | Power | Current    
Financing Receivable, Past Due    
Finance Receivables $ 16 $ 10
v3.25.0.1
Finance Receivables - Finance receivables on non-accrual status (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Customer    
Financing Receivable, Past Due    
Amortized Cost, Non-accrual, With an Allowance $ 176 $ 152
Amortized Cost, 91+ Still Accruing 30 44
Customer | North America    
Financing Receivable, Past Due    
Amortized Cost, Non-accrual, With an Allowance 83 52
Amortized Cost, 91+ Still Accruing 20 20
Customer | EAME    
Financing Receivable, Past Due    
Amortized Cost, Non-accrual, With an Allowance 33 34
Amortized Cost, 91+ Still Accruing 5 18
Customer | Asia/Pacific    
Financing Receivable, Past Due    
Amortized Cost, Non-accrual, With an Allowance 5 8
Amortized Cost, 91+ Still Accruing 5 5
Customer | Mining    
Financing Receivable, Past Due    
Amortized Cost, Non-accrual, With an Allowance 29 2
Amortized Cost, 91+ Still Accruing 0 0
Customer | Latin America    
Financing Receivable, Past Due    
Amortized Cost, Non-accrual, With an Allowance 24 48
Amortized Cost, 91+ Still Accruing 0 1
Customer | Power    
Financing Receivable, Past Due    
Amortized Cost, Non-accrual, With an Allowance 2 8
Amortized Cost, 91+ Still Accruing 0 0
Dealer | Latin America    
Financing Receivable, Past Due    
Amortized Cost, Non-accrual, With an Allowance $ 0 $ 47
v3.25.0.1
Finance Receivables - Finance receivables modified (Details) - Customer
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable    
Weighted average extension to term of modified contracts 8 years 15 months
Weighted average payment deferral and/or interest only periods 6 years 7 months
v3.25.0.1
Equipment on Operating Leases - Carrying amount of Equipment on operating leases, net (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Equipment on operating leases, at cost $ 4,207 $ 4,433
Less: Accumulated depreciation (1,427) (1,419)
Equipment on operating leases, net $ 2,780 $ 3,014
v3.25.0.1
Equipment on Operating Leases - Schedule of payments due for operating leases (Details)
$ in Millions
Dec. 31, 2024
USD ($)
Leases [Abstract]  
2025 $ 723
2026 470
2027 256
2028 131
2029 45
Thereafter 15
Total $ 1,640
v3.25.0.1
Credit Commitments (Details)
$ in Millions
 1 Months Ended 12 Months Ended
Aug. 31, 2024
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Line of Credit Facility        
Number of global credit facilities   3    
Amount available   $ 10,500    
Maximum borrowing capacity from Caterpillar, Variable lending agreements   2,440    
Maximum lending capacity to Caterpillar, Variable lending agreements   $ 2,140    
Termination, minimum number of days to notify   30 days    
Term lending agreements, maximum remaining maturity   10 years    
Other assets   $ 1,182 $ 1,098  
Caterpillar        
Line of Credit Facility        
Maximum borrowing capacity from Caterpillar, Variable lending agreements   2,440    
Maximum lending capacity to Caterpillar, Variable lending agreements   2,140    
Notes payable   10 24 $ 23
Revolving credit facilities        
Line of Credit Facility        
Amount outstanding   0    
Revolving credit facilities | Cat Financial        
Line of Credit Facility        
Amount available   7,750    
364-day facility        
Line of Credit Facility        
Amount available $ 3,150      
364-day facility | Credit Facility 1        
Line of Credit Facility        
Term 364 days      
364-day facility | Cat Financial        
Line of Credit Facility        
Amount available $ 2,330      
Three-year facility        
Line of Credit Facility        
Amount available $ 2,730      
Three-year facility | Credit Facility 1        
Line of Credit Facility        
Term 3 years      
Three-year facility | Cat Financial        
Line of Credit Facility        
Amount available $ 2,010      
Five-year facility        
Line of Credit Facility        
Amount available $ 4,620      
Five-year facility | Credit Facility 1        
Line of Credit Facility        
Term 5 years      
Five-year facility | Cat Financial        
Line of Credit Facility        
Amount available $ 3,410      
Credit lines with banks        
Line of Credit Facility        
Amount available   3,450    
Amount outstanding   $ 687 $ 853  
v3.25.0.1
Short-Term Borrowings (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Short-term Debt    
Balance $ 4,393 $ 4,643
Commercial paper, net    
Short-term Debt    
Balance $ 3,946 $ 4,069
Weighted Avg. Rate 4.50% 5.20%
Bank borrowings and other    
Short-term Debt    
Balance $ 165 $ 330
Weighted Avg. Rate 10.80% 10.00%
Variable denomination floating rate demand notes    
Short-term Debt    
Balance $ 282 $ 244
Weighted Avg. Rate 4.20% 5.20%
v3.25.0.1
Long-Term Debt (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Jan. 08, 2025
Jan. 08, 2024
Dec. 31, 2023
Debt Instrument        
Medium-term notes, maximum remaining maturity 5 years      
Face amount of medium-term notes excluded from current maturities $ 1,250      
Medium-term notes        
Debt Instrument        
Long-term debt issued 9,990      
Long-term debt issued at fixed interest rates 8,040      
Long-term debt issued at floating interest rates 1,950      
Long term debt, gross $ 24,940     $ 23,165
Medium-term notes | Subsequent Event        
Debt Instrument        
Long term debt, gross   $ 1,250    
Medium Term Note, 2027        
Debt Instrument        
Long term debt, gross     $ 800  
Medium Term Note, 2030        
Debt Instrument        
Long term debt, gross     $ 450  
v3.25.0.1
Long-Term Debt - Long-term debt (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument    
Fair value adjustments $ (16) $ (46)
Long-term debt 25,406 23,612
Medium-term notes    
Debt Instrument    
Long term debt, gross 24,940 23,165
Unamortized discount and debt issuance costs (42) (34)
Fair value adjustments (16) (46)
Long-term debt $ 24,882 $ 23,085
Long-term debt, Avg. Rate 3.90% 3.20%
Bank borrowings and other    
Debt Instrument    
Long-term debt $ 524 $ 527
Long-term debt, Avg. Rate 9.60% 6.60%
v3.25.0.1
Long-Term Debt - Maturities of Long-term debt outstanding (excluding fair value adjustments) in each of the next five years (Details)
$ in Millions
Dec. 31, 2024
USD ($)
Long-Term Debt, Unclassified [Abstract]  
2025 $ 6,619
2026 8,508
2027 7,741
2028 11
2029 $ 2,093
v3.25.0.1
Derivative Financial Instruments and Risk Management - Location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Derivatives, Fair Value    
Assets $ 322 $ 285
Liabilities (139) (220)
Designated derivatives    
Derivatives, Fair Value    
Assets 238 257
Liabilities (120) (141)
Designated derivatives | Foreign exchange contracts    
Derivatives, Fair Value    
Assets 228 207
Liabilities (89) (73)
Designated derivatives | Interest rate contracts    
Derivatives, Fair Value    
Assets 10 50
Liabilities (31) (68)
Undesignated derivatives    
Derivatives, Fair Value    
Assets 84 28
Liabilities (19) (79)
Undesignated derivatives | Foreign exchange contracts    
Derivatives, Fair Value    
Assets 84 28
Liabilities $ (19) $ (79)
v3.25.0.1
Derivative Financial Instruments and Risk Management - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Derivative instruments, notional amount $ 15,970 $ 15,730
Deferred net gains, net of tax, included in equity, related to cash flow hedges, expected to be reclassified to earnings over the next twelve months 7  
Derivatives, Maximum exposure to credit loss $ 322 $ 285
v3.25.0.1
Derivative Financial Instruments and Risk Management - Schedule of effect of derivatives designated as cash flow hedging instruments on the Consolidated Statements of Profit (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Undesignated derivatives | Fair Value / Undesignated Hedges      
Derivative Instruments, Gain (Loss)      
Gains (Losses) Recognized $ 91 $ (114) $ (118)
Undesignated derivatives | Fair Value / Undesignated Hedges | Foreign exchange contracts      
Derivative Instruments, Gain (Loss)      
Gains (Losses) Recognized 167 (39) (111)
Undesignated derivatives | Fair Value / Undesignated Hedges | Interest rate contracts      
Derivative Instruments, Gain (Loss)      
Gains (Losses) Recognized (76) (75) (7)
Designated derivatives | Cash Flow Hedges      
Derivative Instruments, Gain (Loss)      
Gains (Losses) Recognized in AOCI 266 (13) 421
Gains (Losses) Reclassified from AOCI 254 (10) 384
Designated derivatives | Cash Flow Hedges | Foreign exchange contracts      
Derivative Instruments, Gain (Loss)      
Gains (Losses) Recognized in AOCI 255 (22) 310
Gains (Losses) Reclassified from AOCI 213 (68) 370
Designated derivatives | Cash Flow Hedges | Interest rate contracts      
Derivative Instruments, Gain (Loss)      
Gains (Losses) Recognized in AOCI 11 9 111
Gains (Losses) Reclassified from AOCI $ 41 $ 58 $ 14
v3.25.0.1
Derivative Financial Instruments and Risk Management - Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Derivatives, Fair Value    
Carrying Value of the Hedged Liabilities $ 3,730 $ 3,110
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities (16) (46)
Current maturities of long-term debt    
Derivatives, Fair Value    
Carrying Value of the Hedged Liabilities 483 982
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities $ (16) $ (23)
Hedged Liability, Statement of Financial Position [Extensible Enumeration] Other liabilities Other liabilities
Long-term debt    
Derivatives, Fair Value    
Carrying Value of the Hedged Liabilities $ 3,247 $ 2,128
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities $ 0 $ (23)
Hedged Liability, Statement of Financial Position [Extensible Enumeration] Other liabilities Other liabilities
v3.25.0.1
Derivative Financial Instruments and Risk Management - Schedule of effect of net settlement provisions of the master netting agreements on our derivative balances (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Assets    
Gross amounts recognized $ 322 $ 285
Financial instruments not offset (54) (106)
Net amount 268 179
Liabilities    
Gross amounts recognized (139) (220)
Financial instruments not offset 54 106
Net amount $ (85) $ (114)
v3.25.0.1
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]      
Balance $ 3,170 $ 2,963 $ 2,981
Total Other comprehensive income (loss), net of tax (254) 64 (285)
Balance 2,890 3,170 2,963
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Balance 3,170 2,963 2,981
Total Other comprehensive income (loss), net of tax (254) 64 (285)
Balance 2,890 3,170 2,963
Foreign currency translation      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]      
Balance (996) (1,068) (762)
Gains (losses) before reclassification, before tax (299) 55 (276)
Less: Tax provision/(benefit) 22 (17) 30
Gains (losses) before reclassification, net of tax (321) 72 (306)
(Gains) losses reclassified to earnings 61 0 0
Less: Tax provision/(benefit) 0 0 0
Net (gains) losses reclassified to earnings 61 0 0
Total Other comprehensive income (loss), net of tax (260) 72 (306)
Balance (1,256) (996) (1,068)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Balance (996) (1,068) (762)
Gains (losses) before reclassification, before tax (299) 55 (276)
Less: Tax provision/(benefit) 22 (17) 30
Gains (losses) before reclassification, net of tax (321) 72 (306)
(Gains) losses reclassified to earnings 61 0 0
Less: Tax provision/(benefit) 0 0 0
Net (gains) losses reclassified to earnings 61 0 0
Total Other comprehensive income (loss), net of tax (260) 72 (306)
Balance (1,256) (996) (1,068)
Derivative financial instruments      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]      
Balance 18 21 (12)
Gains (losses) before reclassification, before tax 266 (13) 421
Less: Tax provision/(benefit) 74 (3) 97
Gains (losses) before reclassification, net of tax 192 (10) 324
(Gains) losses reclassified to earnings (254) 10 (384)
Less: Tax provision/(benefit) (68) 3 (93)
Net (gains) losses reclassified to earnings (186) 7 (291)
Total Other comprehensive income (loss), net of tax 6 (3) 33
Balance 24 18 21
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Balance 18 21 (12)
Gains (losses) before reclassification, before tax 266 (13) 421
Less: Tax provision/(benefit) 74 (3) 97
Gains (losses) before reclassification, net of tax 192 (10) 324
(Gains) losses reclassified to earnings (254) 10 (384)
Less: Tax provision/(benefit) (68) 3 (93)
Net (gains) losses reclassified to earnings (186) 7 (291)
Total Other comprehensive income (loss), net of tax 6 (3) 33
Balance 24 18 21
Accumulated other comprehensive income (loss)      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]      
Balance (978) (1,047) (774)
Balance (1,232) (978) (1,047)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Balance (978) (1,047) (774)
Balance $ (1,232) $ (978) $ (1,047)
v3.25.0.1
Commitments and Contingent Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Guarantor Obligations    
Guarantees, maximum potential amount of future payments $ 23 $ 25
Assets 34,084 33,112
Liabilities 31,194 29,942
Unused commitments to extend credit to customers 843  
Reserve for credit losses 13  
Variable Interest Entity, Primary Beneficiary    
Guarantor Obligations    
Assets 1,140 1,350
Liabilities 1,140 1,350
Maximum    
Guarantor Obligations    
Related recorded liability $ 1 $ 1
v3.25.0.1
Income Taxes - Reconciliation of the U.S. federal statutory rate to effective rate (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Reconciliation of statutory rate to effective income tax rate      
Taxes computed at U.S. statutory rates $ 112 $ 160 $ 154
U.S. statutory tax rate (as a percent) 21.00% 21.00% 21.00%
(Decreases) increases in taxes resulting from:      
State income tax, net of federal tax $ 1 $ 5 $ 4
State income tax, net of federal tax (as a percent) 0.20% 0.50% 0.50%
Non-U.S. subsidiaries taxed at other than the U.S. rate $ (14) $ 21 $ 19
Non-U.S. Subsidiaries taxed at other than the U.S. rate (as a percent) (2.60%) 2.80% 2.60%
Valuation allowances $ 1 $ (14) $ 15
Valuation allowances (as a percent) 0.20% (1.80%) 2.10%
Tax law change for currency translation $ (224) $ 0 $ 0
Tax law change for currency translation (as a percent) (42.00%) 0.00% 0.00%
Tax loss on divestiture of a non-U.S. subsidiary $ 48 $ 0 $ 0
Tax loss on divestiture of a non-U.S. subsidiary (as a percent) 9.00% 0.00% 0.00%
Dividend withholding tax & indefinite reinvestment change $ 2 $ 30 $ 0
Dividend withholding tax & indefinite reinvestment change (as a percent) 0.40% 4.00% 0.00%
Foreign currency translation taxed at non- U.S. subsidiaries $ 8 $ (10) $ (4)
Foreign currency translation taxed at non-U.S subsidiaries (as a percent) 1.50% (1.30%) (0.50%)
Other, net $ 0 $ 0 $ 1
Other, net (as a percent) 0.00% 0.00% 0.10%
Total Provision for income taxes $ (66) $ 192 $ 189
Provision for income taxes (as a percent) (12.40%) 25.20% 25.80%
v3.25.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Effective Income Tax Rate Reconciliation [Line Items]      
Tax law change for currency translation $ 224 $ 0 $ 0
Dividend withholding tax & indefinite reinvestment change 2 30 0
Valuation allowances 1 (14) 15
Undistributed profits of non-US subsidiaries 3,000    
Income taxes payable 255 190  
Deferred tax assets, valuation allowance 51 39  
Deferred tax asset, operating loss carryforward 16    
Accrued interest and penalties 10 6  
Capital Loss Carryforward      
Effective Income Tax Rate Reconciliation [Line Items]      
Valuation allowance, deferred tax asset $ 15    
Minimum      
Effective Income Tax Rate Reconciliation [Line Items]      
Income tax examination period 3 years    
Maximum      
Effective Income Tax Rate Reconciliation [Line Items]      
Income tax examination period 10 years    
Expiration Date Before 2027      
Effective Income Tax Rate Reconciliation [Line Items]      
Deferred tax asset, operating loss carryforward $ 1    
Expiration Date Before 2030      
Effective Income Tax Rate Reconciliation [Line Items]      
Deferred tax asset, operating loss carryforward 15    
Foreign Tax Authority, Specific Entity      
Effective Income Tax Rate Reconciliation [Line Items]      
Valuation allowances   8 $ 15
U.S. state taxing jurisdictions      
Effective Income Tax Rate Reconciliation [Line Items]      
Deferred tax assets, state losses 4    
Deferred tax assets, valuation allowance 1    
Non-U.S. taxing jurisdictions      
Effective Income Tax Rate Reconciliation [Line Items]      
Deferred tax asset, operating loss carryforward, not subject to expiration 73    
NOL carryforwards, valuation allowance 34    
Non-U.S. taxing jurisdictions | Expiration Date On Or Before 2035      
Effective Income Tax Rate Reconciliation [Line Items]      
Deferred tax asset, operating loss carryfoward 29    
Domestic Tax Jurisdiction      
Effective Income Tax Rate Reconciliation [Line Items]      
Deferred tax assets, valuation allowance $ 16    
Foreign Tax Authority, Non-US Subsidiary, Specific Entity      
Effective Income Tax Rate Reconciliation [Line Items]      
Valuation allowances   $ 22  
v3.25.0.1
Income Taxes - Components of Profit before income taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Components of Profit before income taxes      
U.S. $ 173 $ 384 $ 439
Non-U.S. 360 376 292
Profit before income taxes $ 533 $ 760 $ 731
v3.25.0.1
Income Taxes - Components of the Provision for income taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current income tax provision:      
U.S. $ 117 $ 36 $ 116
Non-U.S. 109 150 95
State (U.S.) 2 3 5
Current income tax provision 228 189 216
Deferred income tax provision (benefit):      
U.S. (283) 33 (36)
Non-U.S. 9 (31) 8
State (U.S.) (20) 1 1
Deferred income tax provision (294) 3 (27)
Total Provision for income taxes $ (66) $ 192 $ 189
v3.25.0.1
Income Taxes - Deferred income tax assets and liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Assets:    
Other assets $ 114 $ 144
Liabilities:    
Other liabilities (330) (617)
Deferred income taxes, net (216) (473)
Deferred income tax assets:    
Allowance for credit losses 77 95
Tax carryforwards 122 103
Revenue timing differences 19 16
Deferred tax assets, gross 218 214
Deferred income tax liabilities:    
Capital assets, including lease basis differences (367) (430)
Deferred income tax on translation adjustment 0 (200)
Undistributed profits of non-U.S. subsidiaries (15) (16)
Deferred Tax Liabilities, Gross (382) (646)
Valuation allowance for deferred income tax assets (51) (39)
Other, net (1) (2)
Deferred income taxes, net $ (216) $ (473)
v3.25.0.1
Income Taxes - Schedule of unrecognized tax benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Reconciliation of unrecognized income tax benefits      
Unrecognized tax benefits, beginning of year $ 119 $ 127 $ 131
Additions for income tax positions related to current year 15 0 0
Additions for income tax positions related to prior year 0 0 0
Reductions for income tax positions related to prior year 0 (2) 0
Reductions for income tax positions related to settlements 0 (6) (4)
Unrecognized tax benefits, end of year 134 119 127
Amount that, if recognized, would impact the effective tax rate $ 134 $ 119 $ 127
v3.25.0.1
Fair Value Measurements (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Loans carried at fair value $ 59 $ 55
Recurring basis | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Derivative financial instruments, net asset (liability) position $ 183 $ 65
v3.25.0.1
Fair Value Measurements - Fair values of financial instruments (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Carrying  Amount    
Assets    
Finance receivables, net (excluding finance leases) $ 22,026 $ 20,746
Liabilities    
Long-term debt 25,406 23,612
Fair  Value | Fair Value, Level 2    
Liabilities    
Long-term debt 25,304 23,299
Fair  Value | Fair Value, Level 3    
Assets    
Finance receivables, net (excluding finance leases) 21,593 20,330
Carrying amount of assets excluded from measurement at fair value    
Liabilities    
Finance leases and failed sale leasebacks, Carrying Value $ 6,940 $ 7,000
v3.25.0.1
Transitions with Related Parties (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Related Party Transaction      
Minimum tangible net worth $ 20    
Minimum ratio of profit before income taxes and interest expense 1.15    
Minimum percentage of voters required to modify or terminate agreement 0.6667    
Payments of Dividends $ 625 $ 425 $ 275
Maximum borrowing capacity from Caterpillar, Variable lending agreements 2,440    
Maximum lending capacity to Caterpillar, Variable lending agreements 2,140    
Revenues 3,489 3,248 2,734
Depreciation on equipment leased to others 722 713 718
General, operating and administrative 644 588 531
Caterpillar      
Related Party Transaction      
Payments of Dividends 625 425 275
Maximum borrowing capacity from Caterpillar, Variable lending agreements 2,440    
Maximum lending capacity to Caterpillar, Variable lending agreements 2,140    
Marketing program payments received 540 332 339
Total portfolio, which includes Finance receivables, net and Equipment on operating lease, net 278 155  
Revenues 31 27 24
Depreciation on equipment leased to others 18 18 17
Amount of our portfolio that is subject to guarantees by Caterpillar 473 376  
General, operating and administrative 50 50 52
Administrative support services to certain Caterpillar subsidiaries reimbursed by Caterpillar $ 16 $ 15 $ 13
v3.25.0.1
Transactions with Related Parties - Transactions with related parties (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Related Party Transaction      
Payable to Caterpillar - other as of December 31, $ 137 $ 157  
Notes receivable from Caterpillar 559 527 $ 482
Interest 1,287 1,033 566
Revenue earned 625 617 417
Purchased Receivables as of December 31, 29,231 28,077  
Caterpillar Purchased Receivables      
Related Party Transaction      
Purchased Receivables as of December 31, 4,283 3,949 4,297
Caterpillar      
Related Party Transaction      
Payable to Caterpillar - borrowings as of December 31, 10 24 23
Payable to Caterpillar - other as of December 31, 118 113 101
Other receivables from Caterpillar as of December 31, 85 39 133
Interest 1 1 1
Interest income on Notes Receivable with Caterpillar 23 21 17
Purchases made 52,930 53,382 47,158
Revenue earned $ 625 $ 617 $ 417
v3.25.0.1
Segment and Geographic Information - Segment information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information      
External revenues $ 3,489 $ 3,248 $ 2,734
Interest expense 1,287 1,033 566
Depreciation on equipment leased to others 722 713 718
General, operating and administrative expenses 644 588 531
Provision for credit losses 75 49 81
Other segment items 228 105 107
Profit before income taxes 533 760 731
Assets 34,084 33,112  
Capital expenditures 1,085 1,297 1,139
Operating Segments      
Segment Reporting Information      
External revenues 3,419 3,179 2,711
Interest expense 1,167 948 608
Depreciation on equipment leased to others 722 713 718
General, operating and administrative expenses 454 432 395
Provision for credit losses 75 48 81
Other segment items 29 35 28
Profit before income taxes 972 1,003 881
Assets 32,285 31,159  
Capital expenditures 1,052 1,288 1,130
Unallocated      
Segment Reporting Information      
External revenues 85 83 35
Interest expense 492 394 204
Depreciation on equipment leased to others 0 0 0
General, operating and administrative expenses 195 162 143
Provision for credit losses 0 1 0
Other segment items (28) 33 0
Profit before income taxes (574) (507) (312)
Assets 1,921 2,054  
Capital expenditures 33 9 9
Reconciling Item | Timing      
Segment Reporting Information      
External revenues (15) (14) (12)
Interest expense 0 0 0
Depreciation on equipment leased to others 0 0 0
General, operating and administrative expenses (16) (16) (16)
Provision for credit losses 0 0 0
Other segment items 0 0 0
Profit before income taxes 1 2 4
Assets (12) 20  
Capital expenditures 0 0 0
Reconciling Item | Methodology      
Segment Reporting Information      
External revenues 0 0 0
Interest expense (372) (309) (246)
Depreciation on equipment leased to others 0 0 0
General, operating and administrative expenses 11 10 9
Provision for credit losses 0 0 0
Other segment items 17 37 79
Profit before income taxes 344 262 158
Assets 128 145  
Capital expenditures 0 0 0
Reconciling Item | Divestiture      
Segment Reporting Information      
External revenues 0    
Interest expense 0    
Depreciation on equipment leased to others 0    
General, operating and administrative expenses 0    
Provision for credit losses 0    
Other segment items 210    
Profit before income taxes (210)    
Intersegment Eliminations      
Segment Reporting Information      
Assets (238) (266)  
Capital expenditures 0 0 0
North America | Operating Segments      
Segment Reporting Information      
External revenues 1,988 1,786 1,512
Interest expense 634 463 263
Depreciation on equipment leased to others 512 512 503
General, operating and administrative expenses 185 170 155
Provision for credit losses 70 32 25
Other segment items 17 13 16
Profit before income taxes 570 596 550
Assets 17,800 16,303  
Capital expenditures 787 961 862
EAME | Operating Segments      
Segment Reporting Information      
External revenues 380 368 285
Interest expense 143 103 79
Depreciation on equipment leased to others 54 57 55
General, operating and administrative expenses 89 93 88
Provision for credit losses (12) 3 49
Other segment items 4 11 2
Profit before income taxes 102 101 12
Assets 4,668 5,117  
Capital expenditures 74 73 117
Asia/Pacific | Operating Segments      
Segment Reporting Information      
External revenues 271 278 283
Interest expense 100 102 73
Depreciation on equipment leased to others 4 4 5
General, operating and administrative expenses 77 69 62
Provision for credit losses 0 (2) 6
Other segment items 3 0 3
Profit before income taxes 87 105 134
Assets 3,276 3,435  
Capital expenditures 14 4 6
Latin America | Operating Segments      
Segment Reporting Information      
External revenues 338 348 284
Interest expense 152 174 136
Depreciation on equipment leased to others 13 12 10
General, operating and administrative expenses 53 52 43
Provision for credit losses 6 1 7
Other segment items 4 6 3
Profit before income taxes 110 103 85
Assets 2,423 2,583  
Capital expenditures 21 21 25
Mining | Operating Segments      
Segment Reporting Information      
External revenues 377 341 294
Interest expense 105 80 42
Depreciation on equipment leased to others 137 126 143
General, operating and administrative expenses 39 37 35
Provision for credit losses 19 (2) 9
Other segment items 1 1 2
Profit before income taxes 76 99 63
Assets 3,306 3,059  
Capital expenditures 156 229 120
Power | Operating Segments      
Segment Reporting Information      
External revenues 65 58 53
Interest expense 33 26 15
Depreciation on equipment leased to others 2 2 2
General, operating and administrative expenses 11 11 12
Provision for credit losses (8) 16 (15)
Other segment items 0 4 2
Profit before income taxes 27 (1) 37
Assets 812 662  
Capital expenditures $ 0 $ 0 $ 0
v3.25.0.1
Segment and Geographic Information - Geographic information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets      
External revenues $ 3,489 $ 3,248 $ 2,734
Equipment on operating leases, net and property and equipment, net (included in Other assets) 2,932 3,149  
Inside U.S.      
Revenues from External Customers and Long-Lived Assets      
External revenues 2,096 1,879 1,551
Equipment on operating leases, net and property and equipment, net (included in Other assets) 1,925 2,066  
Inside Canada      
Revenues from External Customers and Long-Lived Assets      
Equipment on operating leases, net and property and equipment, net (included in Other assets) 478 539  
All other      
Revenues from External Customers and Long-Lived Assets      
External revenues 1,393 1,369 $ 1,183
Equipment on operating leases, net and property and equipment, net (included in Other assets) $ 529 $ 544  
v3.25.0.1
Divestiture (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]      
Loss on divestiture $ (210) $ 0 $ 0