CATERPILLAR FINANCIAL SERVICES CORP, 10-K filed on 2/13/2026
Annual Report
v3.25.4
Cover Page - USD ($)
 12 Months Ended
Dec. 31, 2025
Feb. 13, 2026
Cover [Abstract]    
Document Type 10-K  
Document Annual Report true  
Document Period End Date Dec. 31, 2025  
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  
ICFR Auditor Attestation Flag true  
Document Financial Statement Error Correction false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   1
Entity Public Float $ 0  
Entity Central Index Key 0000764764  
Current Fiscal Year End Date --12-31  
Document Fiscal Period Focus FY  
Document Fiscal Year Focus 2025  
Amendment Flag false  
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Nashville, Tennessee
Auditor Firm ID 238
v3.25.4
Consolidated Statements of Profit - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues:      
Retail finance $ 1,858 $ 1,689 $ 1,464
Operating lease 922 936 905
Wholesale finance 694 706 684
Other, net 160 158 195
Total revenues 3,634 3,489 3,248
Expenses:      
Interest 1,388 1,287 1,033
Depreciation on equipment leased to others 699 722 713
General, operating and administrative 666 644 588
Provision for credit losses 106 75 49
Other 28 36 33
Total expenses 2,887 2,764 2,416
Other income (expense) (13) (192) (72)
Profit before income taxes 734 533 760
Provision (benefit) for income taxes 193 (66) 192
Profit of consolidated companies 541 599 568
Less: Profit attributable to noncontrolling interests 1 1 5
Profit attributable to Caterpillar Financial Services Corporation $ 540 $ 598 $ 563
v3.25.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Profit of consolidated companies $ 541 $ 599 $ 568
Other comprehensive income (loss), net of tax (Note 8):      
Foreign currency translation 330 (260) 67
Derivative financial instruments (34) 6 (3)
Total Other comprehensive income (loss), net of tax 296 (254) 64
Comprehensive income (loss) 837 345 632
Less: Comprehensive income (loss) attributable to noncontrolling interests 3 1 0
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation $ 834 $ 344 $ 632
v3.25.4
Consolidated Statements of Financial Position - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Assets:    
Cash and cash equivalents $ 533 $ 599
Finance receivables, net of allowance for credit losses of $284 and $267 32,815 28,964
Notes receivable from Caterpillar 663 559
Equipment on operating leases, net 2,927 2,780
Other assets 1,375 1,182
Total assets 38,313 34,084
Liabilities and shareholder’s equity:    
Payable to dealers and others 106 137
Payable to Caterpillar – borrowings and other 1,172 128
Accrued expenses 553 489
Short-term borrowings 5,514 4,393
Current maturities of long-term debt 7,085 6,619
Long-term debt 20,018 18,787
Other liabilities 638 641
Total liabilities 35,086 31,194
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 3,352 3,300
Accumulated other comprehensive income (loss) (938) (1,232)
Noncontrolling interests 66 75
Total shareholder’s equity 3,227 2,890
Total liabilities and shareholder’s equity $ 38,313 $ 34,084
v3.25.4
Consolidated Statements of Financial Position (Parentheticals) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Allowance for credit losses $ 284 $ 267
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
v3.25.4
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, 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
Increase (Decrease) in Shareholder's Equity [Roll Forward]            
Profit of consolidated companies 541     540   1
Dividend paid to Caterpillar (500)     (488)   (12)
Foreign currency translation, net of tax 330       328 2
Derivative financial instruments, net of tax (34)       (34)  
Balance at Dec. 31, 2025 $ 3,227 $ 745 $ 2 $ 3,352 $ (938) $ 66
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities:      
Profit of consolidated companies $ 541 $ 599 $ 568
Adjustments to reconcile profit to net cash provided by operating activities:      
Depreciation and amortization 717 738 728
Accretion of Caterpillar purchased receivable revenue (611) (625) (617)
Provision for credit losses 106 75 49
Provision (benefit) for deferred income taxes 69 (284) (7)
Loss on divestiture 0 210 0
Other, net 44 197 (25)
Changes in assets and liabilities:      
Other assets 77 195 112
Payable to dealers and others (3) (42) 29
Accrued expenses (21) 54 77
Other payables with Caterpillar 24 14 12
Other liabilities (106) 68 (122)
Net cash provided by operating activities 837 1,199 804
Cash flows from investing activities:      
Expenditures for equipment on operating leases (1,247) (1,045) (1,277)
Other capital expenditures (94) (40) (20)
Proceeds from disposals of equipment 619 629 668
Additions to finance receivables (18,046) (16,833) (17,250)
Collections of finance receivables 15,738 14,706 15,613
Net changes in Caterpillar purchased receivables (529) 129 1,080
Proceeds from sale of business, net of cash sold 0 (153) 0
Proceeds from sales of receivables 71 83 63
Net change in variable lending to Caterpillar (49) (31) (77)
Additions to notes receivable from Caterpillar (113) (59) (19)
Collections of notes receivable from Caterpillar 62 56 52
Settlements of undesignated derivatives (56) 47 (10)
Net cash provided by (used for) investing activities (3,644) (2,511) (1,177)
Cash flows from financing activities:      
Net change in variable lending from Caterpillar 14 (14) 1
Proceeds from borrowings with Caterpillar 1,000 0 0
Proceeds from debt issued (original maturities greater than three months) 9,129 10,283 8,277
Payments on debt issued (original maturities greater than three months) (8,030) (8,284) (6,232)
Short-term borrowings, net (original maturities three months or less) 1,106 (168) (1,342)
Dividend paid to Caterpillar (500) (625) (425)
Net cash provided by (used for) financing activities 2,719 1,192 279
Effect of exchange rate changes on cash, cash equivalents and restricted cash 24 (9) (47)
Increase (decrease) in cash, cash equivalents and restricted cash (64) (129) (141)
Cash, cash equivalents and restricted cash at beginning of year 600 729 870
Cash, cash equivalents and restricted cash at end of year 536 600 729
Cash paid for interest 1,361 1,235 960
Restricted cash and cash equivalents $ 3 $ 1 $ 2
v3.25.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
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”), and our corporate headquarters is located in Nashville, Tennessee. A significant portion of our business activity is conducted in North America, and we have additional offices and subsidiaries in Latin America, Asia/Pacific, Europe and Africa.

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 incorporate Caterpillar products. The various financing plans we offer are designed to support sales of Caterpillar products and services and generate financing income for Cat Financial. 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.

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 an 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 a 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 flows are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. Our Risk Management 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 primarily based on the fair value of the collateral for collateral-dependent 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). The amount of the write-off is primarily determined by comparing the fair value of the collateral, less selling costs, 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

Income tax reporting (ASU 2023-09) - In December 2023, the Financial Accounting Standards Board (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 were effective for the year ending December 31, 2025, and are being applied prospectively. See Note 10, Income taxes, for additional information.

All other ASUs effective January 1, 2025, were assessed and determined that they were either not applicable or did not have a material impact on our financial statements.
Accounting Standards Issued But Not Yet Adopted

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.

Internal-use software costs (ASU 2025-06) - In September 2025, the FASB issued accounting guidance to modernize the accounting for internal-use software costs. Under this guidance, capitalization for internal-use software costs begins when management has authorized and committed to funding the project and it is probable the project will be completed, and the software will be used to perform the intended function. This guidance is effective January 1, 2028, with early adoption permitted, and can be applied on a prospective basis, a modified basis for in-process projects, or a retrospective basis. We are in the process of evaluating the effect of this new guidance on our financial statements.

All other ASUs issued but not yet adopted were assessed and determined that they were either not applicable or were not expected to have a material impact on our financial statements.
v3.25.4
Finance Receivables
 12 Months Ended
Dec. 31, 2025
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)20252024
Retail loans(1)
$19,218 $17,331 
Retail finance leases6,870 6,380 
Caterpillar purchased receivables5,500 4,283 
Wholesale loans(1)
1,511 1,235 
Wholesale leases— 2 
Total finance receivables33,099 29,231 
Less: Allowance for credit losses(284)(267)
Total finance receivables, net$32,815 $28,964 
(1) Includes failed sale leasebacks.

Maturities of our finance receivables, as of December 31, 2025, reflect contractual repayments due from borrowers and were as follows:
(Millions of dollars)Retail
loans		Retail finance
leases		Caterpillar
purchased
receivables		Wholesale
loans		Total
Amounts due in
2026$8,600 $2,661 $5,538 $900 $17,699 
20275,138 1,839 — 351 7,328 
20283,414 1,134 — 166 4,714 
20291,833 622 — 36 2,491 
2030712 248 — 14 974 
Thereafter152 74 — 14 240 
Total19,849 6,578 5,538 1,481 33,446 
Guaranteed residual value(1)
7 454 — 39 500 
Unguaranteed residual value(1)
8 565 — 9 582 
Unearned income(646)(727)(38)(18)(1,429)
Total$19,218 $6,870 $5,500 $1,511 $33,099 
(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
Leases classified as sales-type or direct financing are reported as finance leases. Revenues from finance leases were $470 million, $437 million and $419 million for the years ended December 31, 2025, 2024, and 2023, respectively, and are included in retail and wholesale finance revenues 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 incorporate Caterpillar products. The average original term of our customer finance receivables portfolio was approximately 51 months with an average remaining term of approximately 28 months as of December 31, 2025.

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, 2025, our forecasts reflected a continuation of global market uncertainty and actions by global central banks aimed at balancing economic growth and managing 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 on a secured and unsecured basis in the form of wholesale financing plans and retail loans. Our wholesale financing plans provide financing to dealers for their new Caterpillar equipment inventory and rental fleets. The retail loans to dealers are primarily for working capital.
    
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, 2025.

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, 2025.
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 originated worldwide related to large mining customers.
•Power - Finance receivables originated worldwide related to large power customers of Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems.

An analysis of the allowance for credit losses as of December 31, was as follows:
(Millions of dollars)20252024
Allowance for Credit Losses:CustomerDealerCaterpillar Purchased ReceivablesTotalCustomerDealerCaterpillar Purchased ReceivablesTotal
Beginning Balance$258 $4 $5 $267 $276 $51 $4 $331 
Write-offs(148)— — (148)(125)(47)— (172)
Recoveries47 — — 47 57 — — 57 
Provision for credit losses(1)
109 — 2 111 84 — 1 85 
Other7 — — 7 (34)— — (34)
Ending Balance$273 $4 $7 $284 $258 $4 $5 $267 
Finance Receivables$24,572 $3,027 $5,500 $33,099 $22,199 $2,749 $4,283 $29,231 
(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, 2025
20252024202320222021PriorRevolving Finance ReceivablesTotal
North America$3 $15 $27 $12 $8 $4 $8 $77 
EAME1 5 7 3 2 1 1 20 
Asia/Pacific2 6 3 2 1 — — 14 
Latin America1 3 3 5 2 1 — 15 
Mining— 8 6 6 — 1 — 21 
Power— — — — — 1 — 1 
Total$7 $37 $46 $28 $13 $8 $9 $148 
Year Ended December 31, 2024
20242023202220212020PriorRevolving Finance ReceivablesTotal
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 
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 2020.

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 analysis of our Customer portfolio segment by origination year was as follows:
(Millions of dollars)December 31, 2025
20252024202320222021PriorRevolving Finance ReceivablesTotal Finance Receivables
North America
Current$5,531 $3,634 $1,845 $743 $318 $20 $510 $12,601 
31-60 days past due30 42 28 18 6 1 4 129 
61-90 days past due11 14 10 5 3 — 2 45 
91+ days past due11 34 29 20 8 3 1 106 
EAME
Current1,560 938 614 316 114 44 — 3,586 
31-60 days past due5 12 6 6 2 — — 31 
61-90 days past due3 5 3 2 1 — — 14 
91+ days past due5 9 12 6 3 2 — 37 
Asia/Pacific
Current1,175 691 380 137 42 3 50 2,478 
31-60 days past due5 8 3 1 — — — 17 
61-90 days past due2 3 1 2 — — — 8 
91+ days past due1 1 2 2 — — — 6 
Latin America
Current984 511 212 96 15 1 4 1,823 
31-60 days past due3 6 5 3 — — — 17 
61-90 days past due2 2 2 1 — 1 — 8 
91+ days past due1 10 7 4 1 — — 23 
Mining
Current946 806 495 280 107 51 — 2,685 
31-60 days past due3 — — — — — — 3 
61-90 days past due— — — — — — — — 
91+ days past due1 1 8 — — — — 10 
Power
Current272 264 179 37 8 37 148 945 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — — — — — 
91+ days past due— — — — — — — — 
Totals by Aging Category
Current10,468 6,844 3,725 1,609 604 156 712 24,118 
31-60 days past due46 68 42 28 8 1 4 197 
61-90 days past due18 24 16 10 4 1 2 75 
91+ days past due19 55 58 32 12 5 1 182 
Total$10,551 $6,991 $3,841 $1,679 $628 $163 $719 $24,572 
(Millions of dollars)December 31, 2024
20242023202220212020PriorRevolving Finance ReceivablesTotal 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 

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, 2025 and 2024, the total amortized cost of finance receivables within our Dealer portfolio segment was current.
Caterpillar Purchased Receivables
The aging analysis of our Caterpillar Purchased Receivables portfolio segment as of December 31, was as follows:
(Millions of dollars)2025
 Current31-60
Days
Past Due		61-90
Days
Past Due		91+
Days
Past Due		Total Finance Receivables
North America$3,242 $9 $7 $5 $3,263 
EAME1,189 1 — — 1,190 
Asia/Pacific646 1 — — 647 
Latin America387 — — — 387 
Power11 2 — — 13 
Total$5,475 $13 $7 $5 $5,500 
2024
Current31-60
Days
Past Due		61-90
Days
Past Due		91+
Days
Past Due		Total Finance Receivables
North America$2,584 $14 $5 $4 $2,607 
EAME740 3 1 — 744 
Asia/Pacific528 — — 1 529 
Latin America383 — — — 383 
Power16 2 1 1 20 
Total$4,251 $19 $7 $6 $4,283 
 
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)20252024
Amortized CostAmortized Cost
Non-accrual91+ Still AccruingNon-accrual91+ Still Accruing
North America$90 $20 $83 $20 
EAME35 5 33 5 
Asia/Pacific4 2 5 5 
Latin America24 1 24 — 
Mining10 — 29 — 
Power— — 2 — 
Total$163 $28 $176 $30 

There were no finance receivables in our Dealer portfolio segment on non-accrual status as of December 31, 2025 and 2024.

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 extensions of six months or longer or a combination of both.

During the years ended December 31, 2025 and 2024, there were no finance receivable modifications granted to borrowers experiencing financial difficulty in the Dealer or Caterpillar Purchased Receivables portfolio segments.
The ending amortized cost of finance receivables modified with borrowers experiencing financial difficulty in the Customer portfolio segment for the years ended December 31, 2025 and 2024 was as follows:
(Millions of dollars)20252024
Amortized cost of finance receivables modified$38 $33 
Modifications as a percentage of Customer portfolio0.16 %0.15 %

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)20252024
Weighted average extension to term of modified contracts198
Weighted average payment deferral and/or interest only periods66

After we modify a finance receivable, we continue to track its performance under its most recent modified terms. As of December 31, 2025 and 2024, defaults of loans modified in the prior twelve months 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.

Concentration of credit risk
As of December 31, 2025 and 2024, 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.
v3.25.4
Equipment on Operating Leases
 12 Months Ended
Dec. 31, 2025
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)20252024
Equipment on operating leases, at cost$4,401 $4,207 
Less: Accumulated depreciation(1,474)(1,427)
Equipment on operating leases, net$2,927 $2,780 
 
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, 2025, rental payments to be received for equipment on operating leases were as follows: 
(Millions of dollars)
20262027202820292030ThereafterTotal
$745 $503 $324 $153 $72 $21 $1,818 
v3.25.4
Credit Commitments
 12 Months Ended
Dec. 31, 2025
Credit Commitments [Abstract]  
Credit Commitments CREDIT COMMITMENTS
 
Revolving credit facilities
As of December 31, 2025, we had three global credit facilities with a syndicate of banks totaling $11.50 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, 2025 was $8.63 billion. Information on our Credit Facility is as follows:

•In August 2025, we entered into a new 364-day facility. The 364-day facility of $3.50 billion (of which $2.63 billion is available to us) expires in August 2026.
•In August 2025, we amended and extended the three-year facility (as amended and restated, the "three-year facility"). The three-year facility of $3.00 billion (of which $2.25 billion is available to us) expires in August 2028.
•In August 2025, we amended and extended the five-year facility (as amended and restated, the "five-year facility"). The five-year facility of $5.00 billion (of which $3.75 billion is available to us) expires in August 2030. 

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, 2025, 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, 2025 totaled $3.44 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, 2025 and 2024, we had $771 million and $687 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 $3.52 billion from Caterpillar and Caterpillar may borrow up to $2.29 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 nine years. We had notes payable of $1.02 billion and notes receivable of $663 million outstanding under these agreements as of December 31, 2025, compared with notes payable of $10 million and notes receivable of $559 million as of December 31, 2024.
v3.25.4
Short-Term Borrowings
 12 Months Ended
Dec. 31, 2025
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)20252024
 BalanceWeighted Avg. RateBalanceWeighted Avg. Rate
Commercial paper, net$5,408 3.8%$3,946 4.5%
Bank borrowings and other106 10.1%165 10.8%
Variable denomination floating rate demand notes— —%282 4.2%
Total$5,514  $4,393  
We closed the variable denomination floating rate demand notes program effective September 15, 2025.
v3.25.4
Long-Term Debt
 12 Months Ended
Dec. 31, 2025
Long-Term Debt, Unclassified [Abstract]  
Long-Term Debt LONG-TERM DEBT
 
During 2025, we issued $8.67 billion of medium-term notes, of which $5.75 billion were at fixed interest rates and $2.92 billion were floating interest rates. At December 31, 2025, 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)20252024
 BalanceWeighted Avg. RateBalanceWeighted Avg. Rate
Medium-term notes$26,424 3.8%$24,940 3.9%
Unamortized discount and debt issuance costs(41) (42) 
Fair value adjustments54 (16)
Medium-term notes, net26,437  24,882  
Bank borrowings and other666 10.7%524 9.6%
Total$27,103  $25,406  

Maturities of Long-term debt outstanding (excluding fair value adjustments) as of December 31, 2025, in each of the next five years, are as follows: 
(Millions of dollars)
 
2026$7,085 
20278,890 
20287,528 
20292,590 
2030456 

Medium-term notes of $1.75 billion maturing in the first quarter of 2026 were excluded from Current maturities of long-term debt in the Consolidated Statements of Financial Position as of December 31, 2025 due to a $1.75 billion issuance of medium-term notes on January 8, 2026, of which $1.25 billion and $500 million mature in 2028 and 2031, respectively. The preceding maturity table reflects the reclassification of $1.75 billion from maturities in 2026 to $1.25 billion in 2028 and $500 million in 2031.
v3.25.4
Derivative Financial Instruments and Risk Management
 12 Months Ended
Dec. 31, 2025
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 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 interest receipts and payments on our finance receivables and debt portfolios. 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. If we liquidate fixed-to-floating or floating-to-fixed interest rate contracts, we amortize any deferred gains or losses into earnings over the remaining term of the previously 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)20252024
Assets1
Liabilities2
Assets1
Liabilities2
Designated derivatives
Foreign exchange contracts$229 $(94)$228 $(89)
Interest rate contracts54 (6)10 (31)
$283 $(100)$238 $(120)
Undesignated derivatives
Foreign exchange contracts$13 $(71)$84 $(19)
$13 $(71)$84 $(19)
(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 $18.21 billion and $15.97 billion as of December 31, 2025 and 2024, 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)
Gains (Losses)
Recognized1
Gains (Losses)
Recognized in AOCI
Gains (Losses)
Reclassified from AOCI2
202520242023202520242023202520242023
Cash Flow Hedges
Foreign exchange contracts$— $— $— $43 $255 $(22)$81 $213 $(68)
Interest rate contracts— — — — 11 9 6 41 58 
Fair Value Hedges
Foreign exchange contracts— — — (9)— — (8)— — 
Interest rate contracts(26)(76)(75)— — — — — — 
Undesignated Hedges
Foreign exchange contracts(173)167 (39)— — — — — — 
Total$(199)$91 $(114)$34 $266 $(13)$79 $254 $(10)
(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
2025202420252024
Current maturities of long-term debt$602 $483 $3 $(16)
Long-term debt3,351 3,247 51 — 
   Total$3,953 $3,730 $54 $(16)

As of December 31, 2025, $21 million of deferred net losses, 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, 2025 and 2024, 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)20252024
AssetsLiabilitiesAssetsLiabilities
Gross amounts recognized$296 $(171)$322 $(139)
Financial instruments not offset(100)100 (54)54 
Net amount$196 $(71)$268 $(85)

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, 2025 and 2024, the maximum exposure to credit loss was $296 million and $322 million, respectively, before the application of any master netting agreements.
v3.25.4
Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 31, 2025
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Income (Loss) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
We present Comprehensive income (loss) and its components in the Consolidated Statements of Comprehensive Income. Changes in the balances for each component of AOCI for the years ended December 31, were as follows:
(Millions of dollars)202520242023
Foreign currency translation
Balance at beginning of year$(1,256)$(996)$(1,068)
Gains (losses) on foreign currency translation328 (299)55 
Less: Tax provision/(benefit)— 22 (17)
Net gains (losses) on foreign currency translation328 (321)72 
(Gains) losses reclassified to earnings— 61 — 
Less: Tax provision/(benefit)— — — 
Net (gains) losses reclassified to earnings— 61 — 
Other comprehensive income (loss), net of tax328 (260)72 
Balance at end of year$(928)$(1,256)$(996)
Derivative financial instruments
Balance at beginning of year$24 $18 $21 
Gains (losses) deferred34 266 (13)
Less: Tax provision/(benefit)8 74 (3)
Net gains (losses) deferred26 192 (10)
(Gains) losses reclassified to earnings(79)(254)10 
Less: Tax (provision)/benefit(19)(68)3 
Net (gains) losses reclassified to earnings(60)(186)7 
Other comprehensive income (loss), net of tax(34)6 (3)
Balance at end of year$(10)$24 $18 
Total Accumulated other comprehensive income (loss) at end of year$(938)$(1,232)$(978)
v3.25.4
Commitments and Contingent Liabilities
 12 Months Ended
Dec. 31, 2025
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, 2025 and 2024, 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 $25 million and $23 million at December 31, 2025 and 2024, respectively.

We provide guarantees to purchase certain loans of Caterpillar dealers from a special-purpose corporation (SPC) that qualifies as a VIE. 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, 2025 and 2024, the SPC’s assets of $1.19 billion and $1.14 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 $1.19 billion and $1.14 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 and Caterpillar dealers 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 and dealers that are not unconditionally cancellable were $901 million and $291 million at December 31, 2025, respectively. The reserve for credit losses related to these commitments was $8 million at December 31, 2025, and is recorded in Other liabilities in the Consolidated Statements of Financial Position. We also have other pre-approved lines of credit and other credit arrangements with Caterpillar dealers that we generally have the right to unconditionally cancel, alter, or amend the terms for these 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.
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
 
As further described in Note 1M, New Accounting Pronouncements, we have elected to prospectively adopt the guidance in ASU 2023-09. The following table is a reconciliation of the U.S. federal statutory tax rate of 21 percent to our effective tax rate for the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09.

Reconciliation of the U.S. federal statutory tax rate to effective tax rate:
(Millions of dollars)2025
Taxes computed at U.S. statutory rates$154 21.0 %
Foreign tax effects:
Brazil
Statutory tax rate difference between Brazil and United States8 1.1 %
Other8 1.1 %
United Kingdom
Changes in valuation allowances23 3.1 %
Luxembourg
Changes in valuation allowances(19)(2.6)%
Other foreign jurisdictions42 5.7 %
Effect of cross-border tax laws
Branch taxation(13)(1.7)%
Foreign tax credits (withholding taxes)(20)(2.8)%
Other cross-border6 0.8 %
Other adjustments4 0.6 %
Provision for income taxes and effective rate$193 26.3 %

The following table is a reconciliation of the U.S. federal statutory tax rate of 21 percent to our effective tax rate for the years ended December 31, 2024 and December 31, 2023 prior to the adoption of the guidance in ASU 2023-09.

Reconciliation of the U.S. federal statutory tax rate to effective tax rate:
(Millions of dollars)20242023
Taxes computed at U.S. statutory rates$112 21.0 %$160 21.0 %
(Decreases) increases in taxes resulting from:
State income tax, net of federal tax(1)
1 0.2 %5 0.5 %
Non-U.S. subsidiaries taxed at other than the U.S. rate(14)(2.6)%21 2.8 %
Valuation allowances1 0.2 %(14)(1.8)%
Tax law change for currency translation(224)(42.0)%— — %
Tax loss on divestiture of a non-U.S. subsidiary48 9.0 %— — %
Dividend withholding tax & indefinite reinvestment change2 0.4 %30 4.0 %
Foreign currency translation taxed at non-U.S. subsidiaries8 1.5 %(10)(1.3)%
Provision for income taxes$(66)(12.4)%$192 25.2 %
(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 in 2025 included a non-cash benefit of $19 million from a reduction in the valuation allowance against the deferred tax assets of a non-U.S. subsidiary. 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 2025 and 2024 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 a $23 million and $15 million non-cash expense, respectively. 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 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 non-cash expense.

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.

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. 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)202520242023
U.S.$376 $173 $384 
Non-U.S.358 360 376 
Total$734 $533 $760 

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:202520242023
U.S. Federal$(20)$117 $36 
Non-U.S.143 109 150 
U.S. State(2)2 3 
 121 228 189 
Deferred income tax provision (benefit):   
U.S. Federal72 (283)33 
Non-U.S.(2)9 (31)
U.S. State2 (20)1 
 72 (294)3 
Total Provision for income taxes$193 $(66)$192 

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 $186 million and $255 million as of December 31, 2025 and 2024, respectively, and are included in Other liabilities in the Consolidated Statements of Financial Position.

In accordance with the guidance in ASU 2023-09, net income tax and related interest paid in 2025 to the following jurisdictions were as follows:
(Millions of dollars)
U.S. Federal$104 
U.S. State1 
Non-U.S.(1)
Australia42 
Brazil26 
Canada22 
Other41 
Net income tax and related interest paid$236 
(1) Includes federal, state and local jurisdictions within each country.

We paid net income tax and related interest of $140 million and $210 million in 2024 and 2023, respectively.

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)20252024
Assets:  
Other assets$133 $114 
Liabilities:  
Other liabilities(402)(330)
Deferred income taxes, net$(269)$(216)
 
Our consolidated deferred income taxes consisted of the following components as of December 31: 
(Millions of dollars)
Deferred income tax assets:20252024
Allowance for credit losses$80 $77 
Tax carryforwards136 122 
Revenue timing differences19 19 
 235 218 
Deferred income tax liabilities:
Capital assets, including lease basis differences(438)(367)
Undistributed profits of non-U.S. subsidiaries(11)(15)
(449)(382)
Valuation allowance for deferred income tax assets(57)(51)
Other, net2 (1)
Deferred income taxes, net$(269)$(216)
 
At December 31, 2025, deferred tax assets for U.S. state losses of $4 million expire on or before 2045.
 
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 $20 million expire on or before 2042, while the remaining $96 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 $41 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)202520242023
Reconciliation of unrecognized income tax benefits(1):
   
Balance at beginning of year$134 $119 $127 
Additions for income tax positions related to current year— 15 — 
Additions for income tax positions related to prior year4 — — 
Reductions for income tax positions related to prior year— — (2)
Reductions for income tax positions related to settlements— — (6)
Balance at end of year$138 $134 $119 
Amount that, if recognized, would impact the effective tax rate$138 $134 $119 
(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 year ended December 31, 2025, interest and penalties were $11 million. For the years ending December 31, 2024 and 2023, interest and penalties were not material. As of December 31, 2025 and 2024, the total amount of accrued interest and penalties was $19 million and $10 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.
v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
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 $125 million and $183 million as of December 31, 2025 and 2024, respectively. See Note 7 for additional information.

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 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)20252024
 Carrying 
Amount		Fair 
Value		Carrying 
Amount		Fair
 Value		Fair
Value
Levels		Reference
Assets
Finance receivables, net (excluding finance leases(1))
$25,346 $25,012 $22,026 $21,593 3Note 2
Liabilities
Long-term debt$27,103 $27,204 $25,406 $25,304 2Note 6
(1) Represents finance leases and failed sale leasebacks of $7.47 billion and $6.94 billion as of December 31, 2025 and 2024, respectively.

Certain loans are subject to measurement at fair value on a nonrecurring basis. These are loans for which the company has determined that collection of contractual amounts due is not probable. Generally, the fair value of these receivables is measured using the fair value of collateral less estimated selling costs. We had loans carried at fair value of $63 million and $59 million as of December 31, 2025 and 2024, respectively.
v3.25.4
Transactions with Related Parties
 12 Months Ended
Dec. 31, 2025
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 $500 million, $625 million, and $425 million were paid to Caterpillar in 2025, 2024, and 2023, respectively.
 
Under our variable amount and term lending agreements and other notes receivable with Caterpillar, we may borrow up to $3.52 billion from Caterpillar and Caterpillar may borrow up to $2.29 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 nine years. Information concerning these agreements was as follows as of and for the years ending December 31: 
(Millions of dollars)202520242023
Payable to Caterpillar - borrowings $1,024 $10 $24 
Payable to Caterpillar - other 148 118 113 
Notes receivable from Caterpillar 663 559 527 
Other assets and receivables from Caterpillar(1)
163 85 39 
Interest expense28 1 1 
Interest income on Notes Receivable with Caterpillar(2)
26 23 21 
(1) Included in Other assets in the Consolidated Statements of Financial Position.
(2) Included in Other revenues, net in the Consolidated Statements of Profit.

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)202520242023
Purchases made$55,656 $52,930 $53,382 
Revenue earned611 625 617 
Purchased Receivables as of December 31,5,500 4,283 3,949 

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 revenue over the term of the financing. During 2025, 2024, and 2023, relative to such programs, we received $667 million, $540 million, and $332 million, respectively.

At December 31, 2025 and 2024, $568 million and $473 million, respectively, of our portfolio was subject to guarantees by Caterpillar and affiliates.

We have finance receivable and operating lease agreements with Caterpillar related to end-user customer transactions. Information concerning these agreements was as follows as of and for the years ending December 31:
(Millions of dollars)202520242023
Finance receivables, net$272 $163 $109 
Equipment on operating leases, net97 115 46 
Revenue from Finance receivables and operating leases42 31 27 
Depreciation on equipment leased to others19 18 18 
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 2025 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 2025, 2024 and 2023, these operational and support charges for which we reimburse Caterpillar amounted to $58 million, $50 million and $50 million, respectively. In addition, we provide administrative support services to certain Caterpillar subsidiaries. Caterpillar reimburses us for these charges. During 2025, 2024 and 2023, these charges amounted to $18 million, $16 million and $15 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.
v3.25.4
Segment and Geographic Information
 12 Months Ended
Dec. 31, 2025
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 incorporate Caterpillar products. Financing plans include operating and finance leases, revolving charge accounts, retail loans, working capital loans to Caterpillar dealers and wholesale financing plans within each of the operating segments. Certain operating segments also purchase short-term trade receivables from Caterpillar.

We have six operating segments that offer financing services. Following is a brief description of our segments:

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

C.     Segment Measurement and Reconciliations

We determine segment profit on a pretax basis. Cash, debt and other expenses are allocated to our segments based on their respective portfolios. Interest expense is calculated based on the amount of allocated debt and the rates associated with that debt using a consistent leverage ratio.

Our CODM uses segment profit to evaluate the performance of each segment by monitoring key performance metrics to identify trends and evaluate which segments require additional resources or strategic adjustments. The CODM also uses segment profit to support the allocation of resources predominantly in the annual budget and forecasting process and monitors forecast-to-actual variances monthly.

Reconciling items are created based on accounting differences between segment reporting and consolidated external reporting. 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 including notes receivable from Caterpillar. Also included are the consolidated results of the SPC (see Note 9 for additional information).
•Timing - Timing differences between segment reporting and consolidated external reporting.
•Methodology - Methodology differences between segment reporting and consolidated external reporting are as follows:
◦The impact of differences between the actual leverage and the segment leverage ratios.
◦Interest expense includes realized forward points on foreign currency forward contracts within segment reporting.
◦Segment results include off-balance sheet managed assets for which we maintain servicing responsibilities.
◦Designated derivative activity is excluded from segment results.
•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)

 
2025
External revenuesInterest expenseDepreciation on equipment leased to othersGeneral, operating and administrative expensesProvision for credit losses
Other segment items(1)
Profit before income taxes
North America$2,100 $716 $508 $194 $101 $15 $566 
EAME393 133 50 93 9 3 105 
Asia/Pacific260 99 6 78 5 1 71 
Latin America379 191 10 62 — 7 109 
Mining376 110 125 40 (8)— 109 
Power74 40 — 13 (1)— 22 
Total Segments3,582 1,289 699 480 106 26 982 
Unallocated69 548 — 197 — 2 (678)
Timing(17)— — (22)— (1)6 
Methodology— (449)— 11 — 14 424 
Total$3,634 $1,388 $699 $666 $106 $41 $734 


 
2024
External revenuesInterest expenseDepreciation on equipment leased to othersGeneral, operating and administrative expensesProvision for credit losses
Other segment items(1)
Profit before income taxes
North America$1,988 $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 revenuesInterest expenseDepreciation on equipment leased to othersGeneral, operating and administrative expensesProvision for credit losses
Other segment items(1)
Profit before income taxes
North America$1,786 $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 
(1) Other segment items are primarily costs related to repossessed and returned equipment.
(Millions of dollars)Assets as of December 31,
Capital Expenditures(1)
20252024202520242023
North America$19,738 $17,800 $936 $787 $961 
EAME5,638 4,668 65 74 73 
Asia/Pacific3,564 3,276 25 14 4 
Latin America2,921 2,423 11 21 21 
Mining3,325 3,306 217 156 229 
Power1,017 812 — — — 
Total Segments$36,203 $32,285 $1,254 $1,052 $1,288 
Unallocated2,128 1,921 87 33 9 
Timing32 (12)— — — 
Methodology148 128 — — — 
Inter-segment Eliminations(2)
(198)(238)— — — 
Total$38,313 $34,084 $1,341 $1,085 $1,297 
(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)202520242023
Revenues   
Inside U.S.$2,210 $2,096 $1,879 
All other1,424 1,393 1,369 
Total$3,634 $3,489 $3,248 
Equipment on operating leases, net and property and equipment, net (included in Other assets)20252024
Inside U.S.$2,035 $1,925 
Inside Canada523 478 
All other609 529 
Total$3,167 $2,932 
v3.25.4
Divestiture
 12 Months Ended
Dec. 31, 2025
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 for the year ended December 31, 2024. 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.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
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
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
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 maintains 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, mobile device usage and potential risks associated with emerging technologies. 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 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 maintains 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, mobile device usage and potential risks associated with emerging technologies. 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 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 over 26 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 over 26 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 over 26 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 over 26 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
v3.25.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
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 an 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 a 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 flows are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. Our Risk Management 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 primarily based on the fair value of the collateral for collateral-dependent 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). The amount of the write-off is primarily determined by comparing the fair value of the collateral, less selling costs, 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

Income tax reporting (ASU 2023-09) - In December 2023, the Financial Accounting Standards Board (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 were effective for the year ending December 31, 2025, and are being applied prospectively. See Note 10, Income taxes, for additional information.

All other ASUs effective January 1, 2025, were assessed and determined that they were either not applicable or did not have a material impact on our financial statements.
Accounting Standards Issued But Not Yet Adopted

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.

Internal-use software costs (ASU 2025-06) - In September 2025, the FASB issued accounting guidance to modernize the accounting for internal-use software costs. Under this guidance, capitalization for internal-use software costs begins when management has authorized and committed to funding the project and it is probable the project will be completed, and the software will be used to perform the intended function. This guidance is effective January 1, 2028, with early adoption permitted, and can be applied on a prospective basis, a modified basis for in-process projects, or a retrospective basis. We are in the process of evaluating the effect of this new guidance on our financial statements.

All other ASUs issued but not yet adopted were assessed and determined that they were either 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 $125 million and $183 million as of December 31, 2025 and 2024, respectively. See Note 7 for additional information.

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 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
A.    Basis for Segment Information

Our executive office is comprised of our Chief Executive Officer (CEO), who is our Chief Operating Decision Maker (CODM) and five Vice Presidents. Each of our regional operating segments: North America, EAME, Asia/Pacific, and Latin America is led by a Vice President. The Mining and Power operating segments are led by one Vice President. Our CEO allocates resources and manages operating performance at the Vice President level.

B.    Description of Segments

Our operating segments provide financing alternatives to customers and dealers around the world for Caterpillar products and services and power generation facilities that incorporate Caterpillar products. Financing plans include operating and finance leases, revolving charge accounts, retail loans, working capital loans to Caterpillar dealers and wholesale financing plans within each of the operating segments. Certain operating segments also purchase short-term trade receivables from Caterpillar.

We have six operating segments that offer financing services. Following is a brief description of our segments:

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

C.     Segment Measurement and Reconciliations

We determine segment profit on a pretax basis. Cash, debt and other expenses are allocated to our segments based on their respective portfolios. Interest expense is calculated based on the amount of allocated debt and the rates associated with that debt using a consistent leverage ratio.

Our CODM uses segment profit to evaluate the performance of each segment by monitoring key performance metrics to identify trends and evaluate which segments require additional resources or strategic adjustments. The CODM also uses segment profit to support the allocation of resources predominantly in the annual budget and forecasting process and monitors forecast-to-actual variances monthly.

Reconciling items are created based on accounting differences between segment reporting and consolidated external reporting. 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 including notes receivable from Caterpillar. Also included are the consolidated results of the SPC (see Note 9 for additional information).
•Timing - Timing differences between segment reporting and consolidated external reporting.
•Methodology - Methodology differences between segment reporting and consolidated external reporting are as follows:
◦The impact of differences between the actual leverage and the segment leverage ratios.
◦Interest expense includes realized forward points on foreign currency forward contracts within segment reporting.
◦Segment results include off-balance sheet managed assets for which we maintain servicing responsibilities.
◦Designated derivative activity is excluded from segment results.
•Divestiture - Loss on divestiture included in Other income (expense). See Note 14 for more information.
v3.25.4
Finance Receivables (Tables)
 12 Months Ended
Dec. 31, 2025
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)20252024
Retail loans(1)
$19,218 $17,331 
Retail finance leases6,870 6,380 
Caterpillar purchased receivables5,500 4,283 
Wholesale loans(1)
1,511 1,235 
Wholesale leases— 2 
Total finance receivables33,099 29,231 
Less: Allowance for credit losses(284)(267)
Total finance receivables, net$32,815 $28,964 
(1) Includes failed sale leasebacks.
Maturities of finance receivables
Maturities of our finance receivables, as of December 31, 2025, reflect contractual repayments due from borrowers and were as follows:
(Millions of dollars)Retail
loans		Retail finance
leases		Caterpillar
purchased
receivables		Wholesale
loans		Total
Amounts due in
2026$8,600 $2,661 $5,538 $900 $17,699 
20275,138 1,839 — 351 7,328 
20283,414 1,134 — 166 4,714 
20291,833 622 — 36 2,491 
2030712 248 — 14 974 
Thereafter152 74 — 14 240 
Total19,849 6,578 5,538 1,481 33,446 
Guaranteed residual value(1)
7 454 — 39 500 
Unguaranteed residual value(1)
8 565 — 9 582 
Unearned income(646)(727)(38)(18)(1,429)
Total$19,218 $6,870 $5,500 $1,511 $33,099 
(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)20252024
Allowance for Credit Losses:CustomerDealerCaterpillar Purchased ReceivablesTotalCustomerDealerCaterpillar Purchased ReceivablesTotal
Beginning Balance$258 $4 $5 $267 $276 $51 $4 $331 
Write-offs(148)— — (148)(125)(47)— (172)
Recoveries47 — — 47 57 — — 57 
Provision for credit losses(1)
109 — 2 111 84 — 1 85 
Other7 — — 7 (34)— — (34)
Ending Balance$273 $4 $7 $284 $258 $4 $5 $267 
Finance Receivables$24,572 $3,027 $5,500 $33,099 $22,199 $2,749 $4,283 $29,231 
(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, 2025
20252024202320222021PriorRevolving Finance ReceivablesTotal
North America$3 $15 $27 $12 $8 $4 $8 $77 
EAME1 5 7 3 2 1 1 20 
Asia/Pacific2 6 3 2 1 — — 14 
Latin America1 3 3 5 2 1 — 15 
Mining— 8 6 6 — 1 — 21 
Power— — — — — 1 — 1 
Total$7 $37 $46 $28 $13 $8 $9 $148 
Year Ended December 31, 2024
20242023202220212020PriorRevolving Finance ReceivablesTotal
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 
Amortized cost of finance receivables in the Customer portfolio segment by origination year
The aging analysis of our Customer portfolio segment by origination year was as follows:
(Millions of dollars)December 31, 2025
20252024202320222021PriorRevolving Finance ReceivablesTotal Finance Receivables
North America
Current$5,531 $3,634 $1,845 $743 $318 $20 $510 $12,601 
31-60 days past due30 42 28 18 6 1 4 129 
61-90 days past due11 14 10 5 3 — 2 45 
91+ days past due11 34 29 20 8 3 1 106 
EAME
Current1,560 938 614 316 114 44 — 3,586 
31-60 days past due5 12 6 6 2 — — 31 
61-90 days past due3 5 3 2 1 — — 14 
91+ days past due5 9 12 6 3 2 — 37 
Asia/Pacific
Current1,175 691 380 137 42 3 50 2,478 
31-60 days past due5 8 3 1 — — — 17 
61-90 days past due2 3 1 2 — — — 8 
91+ days past due1 1 2 2 — — — 6 
Latin America
Current984 511 212 96 15 1 4 1,823 
31-60 days past due3 6 5 3 — — — 17 
61-90 days past due2 2 2 1 — 1 — 8 
91+ days past due1 10 7 4 1 — — 23 
Mining
Current946 806 495 280 107 51 — 2,685 
31-60 days past due3 — — — — — — 3 
61-90 days past due— — — — — — — — 
91+ days past due1 1 8 — — — — 10 
Power
Current272 264 179 37 8 37 148 945 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — — — — — 
91+ days past due— — — — — — — — 
Totals by Aging Category
Current10,468 6,844 3,725 1,609 604 156 712 24,118 
31-60 days past due46 68 42 28 8 1 4 197 
61-90 days past due18 24 16 10 4 1 2 75 
91+ days past due19 55 58 32 12 5 1 182 
Total$10,551 $6,991 $3,841 $1,679 $628 $163 $719 $24,572 
(Millions of dollars)December 31, 2024
20242023202220212020PriorRevolving Finance ReceivablesTotal 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 
Aging related to finance receivables
The aging analysis of our Caterpillar Purchased Receivables portfolio segment as of December 31, was as follows:
(Millions of dollars)2025
 Current31-60
Days
Past Due		61-90
Days
Past Due		91+
Days
Past Due		Total Finance Receivables
North America$3,242 $9 $7 $5 $3,263 
EAME1,189 1 — — 1,190 
Asia/Pacific646 1 — — 647 
Latin America387 — — — 387 
Power11 2 — — 13 
Total$5,475 $13 $7 $5 $5,500 
2024
Current31-60
Days
Past Due		61-90
Days
Past Due		91+
Days
Past Due		Total Finance Receivables
North America$2,584 $14 $5 $4 $2,607 
EAME740 3 1 — 744 
Asia/Pacific528 — — 1 529 
Latin America383 — — — 383 
Power16 2 1 1 20 
Total$4,251 $19 $7 $6 $4,283 
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)20252024
Amortized CostAmortized Cost
Non-accrual91+ Still AccruingNon-accrual91+ Still Accruing
North America$90 $20 $83 $20 
EAME35 5 33 5 
Asia/Pacific4 2 5 5 
Latin America24 1 24 — 
Mining10 — 29 — 
Power— — 2 — 
Total$163 $28 $176 $30 
Finance receivables modified as TDRs
The ending amortized cost of finance receivables modified with borrowers experiencing financial difficulty in the Customer portfolio segment for the years ended December 31, 2025 and 2024 was as follows:
(Millions of dollars)20252024
Amortized cost of finance receivables modified$38 $33 
Modifications as a percentage of Customer portfolio0.16 %0.15 %

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)20252024
Weighted average extension to term of modified contracts198
Weighted average payment deferral and/or interest only periods66
v3.25.4
Equipment on Operating Leases (Tables)
 12 Months Ended
Dec. 31, 2025
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)20252024
Equipment on operating leases, at cost$4,401 $4,207 
Less: Accumulated depreciation(1,474)(1,427)
Equipment on operating leases, net$2,927 $2,780 
Schedule of payments due for operating leases
At December 31, 2025, rental payments to be received for equipment on operating leases were as follows: 
(Millions of dollars)
20262027202820292030ThereafterTotal
$745 $503 $324 $153 $72 $21 $1,818 
v3.25.4
Short-Term Borrowings (Tables)
 12 Months Ended
Dec. 31, 2025
Short-Term Debt [Abstract]  
Short-term borrowings
Short-term borrowings outstanding as of December 31, were comprised of the following: 
(Millions of dollars)20252024
 BalanceWeighted Avg. RateBalanceWeighted Avg. Rate
Commercial paper, net$5,408 3.8%$3,946 4.5%
Bank borrowings and other106 10.1%165 10.8%
Variable denomination floating rate demand notes— —%282 4.2%
Total$5,514  $4,393  
v3.25.4
Long-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2025
Long-Term Debt, Unclassified [Abstract]  
Long-term debt
Long-term debt outstanding as of December 31, was comprised of the following: 
(Millions of dollars)20252024
 BalanceWeighted Avg. RateBalanceWeighted Avg. Rate
Medium-term notes$26,424 3.8%$24,940 3.9%
Unamortized discount and debt issuance costs(41) (42) 
Fair value adjustments54 (16)
Medium-term notes, net26,437  24,882  
Bank borrowings and other666 10.7%524 9.6%
Total$27,103  $25,406  
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, 2025, in each of the next five years, are as follows: 
(Millions of dollars)
 
2026$7,085 
20278,890 
20287,528 
20292,590 
2030456 
v3.25.4
Derivative Financial Instruments and Risk Management (Tables)
 12 Months Ended
Dec. 31, 2025
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)20252024
Assets1
Liabilities2
Assets1
Liabilities2
Designated derivatives
Foreign exchange contracts$229 $(94)$228 $(89)
Interest rate contracts54 (6)10 (31)
$283 $(100)$238 $(120)
Undesignated derivatives
Foreign exchange contracts$13 $(71)$84 $(19)
$13 $(71)$84 $(19)
(1) Assets are classified in the Consolidated Statements of Financial Position as Other assets.
(2) Liabilities are classified in the Consolidated Statements of Financial Position as Accrued expenses.
Schedule of effect of derivatives designated as cash flow hedging instruments on the Consolidated Statements of Profit
Gains (Losses) on derivative instruments for the years ended December 31, were categorized as follows:
(Millions of dollars)
Gains (Losses)
Recognized1
Gains (Losses)
Recognized in AOCI
Gains (Losses)
Reclassified from AOCI2
202520242023202520242023202520242023
Cash Flow Hedges
Foreign exchange contracts$— $— $— $43 $255 $(22)$81 $213 $(68)
Interest rate contracts— — — — 11 9 6 41 58 
Fair Value Hedges
Foreign exchange contracts— — — (9)— — (8)— — 
Interest rate contracts(26)(76)(75)— — — — — — 
Undesignated Hedges
Foreign exchange contracts(173)167 (39)— — — — — — 
Total$(199)$91 $(114)$34 $266 $(13)$79 $254 $(10)
(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
2025202420252024
Current maturities of long-term debt$602 $483 $3 $(16)
Long-term debt3,351 3,247 51 — 
   Total$3,953 $3,730 $54 $(16)
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)20252024
AssetsLiabilitiesAssetsLiabilities
Gross amounts recognized$296 $(171)$322 $(139)
Financial instruments not offset(100)100 (54)54 
Net amount$196 $(71)$268 $(85)
v3.25.4
Accumulated Other Comprehensive Income (Loss) (Tables)
 12 Months Ended
Dec. 31, 2025
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Accumulated other comprehensive income (loss) Changes in the balances for each component of AOCI for the years ended December 31, were as follows:
(Millions of dollars)202520242023
Foreign currency translation
Balance at beginning of year$(1,256)$(996)$(1,068)
Gains (losses) on foreign currency translation328 (299)55 
Less: Tax provision/(benefit)— 22 (17)
Net gains (losses) on foreign currency translation328 (321)72 
(Gains) losses reclassified to earnings— 61 — 
Less: Tax provision/(benefit)— — — 
Net (gains) losses reclassified to earnings— 61 — 
Other comprehensive income (loss), net of tax328 (260)72 
Balance at end of year$(928)$(1,256)$(996)
Derivative financial instruments
Balance at beginning of year$24 $18 $21 
Gains (losses) deferred34 266 (13)
Less: Tax provision/(benefit)8 74 (3)
Net gains (losses) deferred26 192 (10)
(Gains) losses reclassified to earnings(79)(254)10 
Less: Tax (provision)/benefit(19)(68)3 
Net (gains) losses reclassified to earnings(60)(186)7 
Other comprehensive income (loss), net of tax(34)6 (3)
Balance at end of year$(10)$24 $18 
Total Accumulated other comprehensive income (loss) at end of year$(938)$(1,232)$(978)
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Reconciliation of the U.S. federal statutory rate to effective rate
Reconciliation of the U.S. federal statutory tax rate to effective tax rate:
(Millions of dollars)2025
Taxes computed at U.S. statutory rates$154 21.0 %
Foreign tax effects:
Brazil
Statutory tax rate difference between Brazil and United States8 1.1 %
Other8 1.1 %
United Kingdom
Changes in valuation allowances23 3.1 %
Luxembourg
Changes in valuation allowances(19)(2.6)%
Other foreign jurisdictions42 5.7 %
Effect of cross-border tax laws
Branch taxation(13)(1.7)%
Foreign tax credits (withholding taxes)(20)(2.8)%
Other cross-border6 0.8 %
Other adjustments4 0.6 %
Provision for income taxes and effective rate$193 26.3 %
Reconciliation of the U.S. federal statutory tax rate to effective tax rate:
(Millions of dollars)20242023
Taxes computed at U.S. statutory rates$112 21.0 %$160 21.0 %
(Decreases) increases in taxes resulting from:
State income tax, net of federal tax(1)
1 0.2 %5 0.5 %
Non-U.S. subsidiaries taxed at other than the U.S. rate(14)(2.6)%21 2.8 %
Valuation allowances1 0.2 %(14)(1.8)%
Tax law change for currency translation(224)(42.0)%— — %
Tax loss on divestiture of a non-U.S. subsidiary48 9.0 %— — %
Dividend withholding tax & indefinite reinvestment change2 0.4 %30 4.0 %
Foreign currency translation taxed at non-U.S. subsidiaries8 1.5 %(10)(1.3)%
Provision for income taxes$(66)(12.4)%$192 25.2 %
(1) Excludes amount included in Tax law change for currency translation line item.
Components of the Provision for income taxes
The components of the Provision for income taxes for the years ended December 31, were as follows: 
(Millions of dollars)
Current income tax provision:202520242023
U.S. Federal$(20)$117 $36 
Non-U.S.143 109 150 
U.S. State(2)2 3 
 121 228 189 
Deferred income tax provision (benefit):   
U.S. Federal72 (283)33 
Non-U.S.(2)9 (31)
U.S. State2 (20)1 
 72 (294)3 
Total Provision for income taxes$193 $(66)$192 
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)202520242023
U.S.$376 $173 $384 
Non-U.S.358 360 376 
Total$734 $533 $760 
Schedule of income taxes paid
In accordance with the guidance in ASU 2023-09, net income tax and related interest paid in 2025 to the following jurisdictions were as follows:
(Millions of dollars)
U.S. Federal$104 
U.S. State1 
Non-U.S.(1)
Australia42 
Brazil26 
Canada22 
Other41 
Net income tax and related interest paid$236 
(1) Includes federal, state and local jurisdictions within each country.
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)20252024
Assets:  
Other assets$133 $114 
Liabilities:  
Other liabilities(402)(330)
Deferred income taxes, net$(269)$(216)
 
Our consolidated deferred income taxes consisted of the following components as of December 31: 
(Millions of dollars)
Deferred income tax assets:20252024
Allowance for credit losses$80 $77 
Tax carryforwards136 122 
Revenue timing differences19 19 
 235 218 
Deferred income tax liabilities:
Capital assets, including lease basis differences(438)(367)
Undistributed profits of non-U.S. subsidiaries(11)(15)
(449)(382)
Valuation allowance for deferred income tax assets(57)(51)
Other, net2 (1)
Deferred income taxes, net$(269)$(216)
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)202520242023
Reconciliation of unrecognized income tax benefits(1):
   
Balance at beginning of year$134 $119 $127 
Additions for income tax positions related to current year— 15 — 
Additions for income tax positions related to prior year4 — — 
Reductions for income tax positions related to prior year— — (2)
Reductions for income tax positions related to settlements— — (6)
Balance at end of year$138 $134 $119 
Amount that, if recognized, would impact the effective tax rate$138 $134 $119 
(1) Foreign currency translation amounts are included within each line as applicable.
v3.25.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2025
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)20252024
 Carrying 
Amount		Fair 
Value		Carrying 
Amount		Fair
 Value		Fair
Value
Levels		Reference
Assets
Finance receivables, net (excluding finance leases(1))
$25,346 $25,012 $22,026 $21,593 3Note 2
Liabilities
Long-term debt$27,103 $27,204 $25,406 $25,304 2Note 6
(1) Represents finance leases and failed sale leasebacks of $7.47 billion and $6.94 billion as of December 31, 2025 and 2024, respectively.
v3.25.4
Transactions with Related Parties (Tables)
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
Transactions with related parties Information concerning these agreements was as follows as of and for the years ending December 31: 
(Millions of dollars)202520242023
Payable to Caterpillar - borrowings $1,024 $10 $24 
Payable to Caterpillar - other 148 118 113 
Notes receivable from Caterpillar 663 559 527 
Other assets and receivables from Caterpillar(1)
163 85 39 
Interest expense28 1 1 
Interest income on Notes Receivable with Caterpillar(2)
26 23 21 
(1) Included in Other assets in the Consolidated Statements of Financial Position.
(2) Included in Other revenues, net in the Consolidated Statements of Profit.

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)202520242023
Purchases made$55,656 $52,930 $53,382 
Revenue earned611 625 617 
Purchased Receivables as of December 31,5,500 4,283 3,949 
We have finance receivable and operating lease agreements with Caterpillar related to end-user customer transactions. Information concerning these agreements was as follows as of and for the years ending December 31:
(Millions of dollars)202520242023
Finance receivables, net$272 $163 $109 
Equipment on operating leases, net97 115 46 
Revenue from Finance receivables and operating leases42 31 27 
Depreciation on equipment leased to others19 18 18 
v3.25.4
Segment and Geographic Information (Tables)
 12 Months Ended
Dec. 31, 2025
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)

 
2025
External revenuesInterest expenseDepreciation on equipment leased to othersGeneral, operating and administrative expensesProvision for credit losses
Other segment items(1)
Profit before income taxes
North America$2,100 $716 $508 $194 $101 $15 $566 
EAME393 133 50 93 9 3 105 
Asia/Pacific260 99 6 78 5 1 71 
Latin America379 191 10 62 — 7 109 
Mining376 110 125 40 (8)— 109 
Power74 40 — 13 (1)— 22 
Total Segments3,582 1,289 699 480 106 26 982 
Unallocated69 548 — 197 — 2 (678)
Timing(17)— — (22)— (1)6 
Methodology— (449)— 11 — 14 424 
Total$3,634 $1,388 $699 $666 $106 $41 $734 


 
2024
External revenuesInterest expenseDepreciation on equipment leased to othersGeneral, operating and administrative expensesProvision for credit losses
Other segment items(1)
Profit before income taxes
North America$1,988 $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 revenuesInterest expenseDepreciation on equipment leased to othersGeneral, operating and administrative expensesProvision for credit losses
Other segment items(1)
Profit before income taxes
North America$1,786 $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 
(1) Other segment items are primarily costs related to repossessed and returned equipment.
(Millions of dollars)Assets as of December 31,
Capital Expenditures(1)
20252024202520242023
North America$19,738 $17,800 $936 $787 $961 
EAME5,638 4,668 65 74 73 
Asia/Pacific3,564 3,276 25 14 4 
Latin America2,921 2,423 11 21 21 
Mining3,325 3,306 217 156 229 
Power1,017 812 — — — 
Total Segments$36,203 $32,285 $1,254 $1,052 $1,288 
Unallocated2,128 1,921 87 33 9 
Timing32 (12)— — — 
Methodology148 128 — — — 
Inter-segment Eliminations(2)
(198)(238)— — — 
Total$38,313 $34,084 $1,341 $1,085 $1,297 
(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)202520242023
Revenues   
Inside U.S.$2,210 $2,096 $1,879 
All other1,424 1,393 1,369 
Total$3,634 $3,489 $3,248 
Equipment on operating leases, net and property and equipment, net (included in Other assets)20252024
Inside U.S.$2,035 $1,925 
Inside Canada523 478 
All other609 529 
Total$3,167 $2,932 
v3.25.4
Summary of Significant Accounting Policies (Details)
 12 Months Ended
Dec. 31, 2025
Operations and Summary of Significant Accounting Policies [Line Items]  
Period after which collection of future income is considered as not probable 120 days
Minimum  
Operations and Summary of Significant Accounting Policies [Line Items]  
Lease term used to calculate depreciation 1 year
Maximum  
Operations and Summary of Significant Accounting Policies [Line Items]  
Lease term used to calculate depreciation 7 years
v3.25.4
Finance Receivables - Summary of finance receivables included in the Consolidated Statements of Financial Position (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable      
Finance Receivables $ 33,099 $ 29,231  
Less: Allowance for credit losses (284) (267) $ (331)
Total finance receivables, net 32,815 28,964  
Retail loans      
Accounts, Notes, Loans and Financing Receivable      
Finance Receivables 19,218 17,331  
Retail finance leases      
Accounts, Notes, Loans and Financing Receivable      
Finance Receivables 6,870 6,380  
Caterpillar purchased receivables      
Accounts, Notes, Loans and Financing Receivable      
Finance Receivables 5,500 4,283 $ 3,949
Wholesale loans      
Accounts, Notes, Loans and Financing Receivable      
Finance Receivables 1,511 1,235  
Wholesale leases      
Accounts, Notes, Loans and Financing Receivable      
Finance Receivables $ 0 $ 2  
v3.25.4
Finance Receivables - Maturities of finance receivables (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable      
2026 $ 17,699    
2027 7,328    
2028 4,714    
2029 2,491    
2030 974    
Thereafter 240    
Total 33,446    
Guaranteed residual value 500    
Unguaranteed residual value 582    
Unearned income (1,429)    
Total 33,099 $ 29,231  
Retail loans      
Accounts, Notes, Loans and Financing Receivable      
2026 8,600    
2027 5,138    
2028 3,414    
2029 1,833    
2030 712    
Thereafter 152    
Total 19,849    
Guaranteed residual value 7    
Unguaranteed residual value 8    
Unearned income (646)    
Total 19,218 17,331  
Retail finance leases      
Accounts, Notes, Loans and Financing Receivable      
2026 2,661    
2027 1,839    
2028 1,134    
2029 622    
2030 248    
Thereafter 74    
Total 6,578    
Guaranteed residual value 454    
Unguaranteed residual value 565    
Unearned income (727)    
Total 6,870 6,380  
Caterpillar Purchased Receivables      
Accounts, Notes, Loans and Financing Receivable      
2026 5,538    
2027 0    
2028 0    
2029 0    
2030 0    
Thereafter 0    
Total 5,538    
Guaranteed residual value 0    
Unguaranteed residual value 0    
Unearned income (38)    
Total 5,500 4,283 $ 3,949
Wholesale loans      
Accounts, Notes, Loans and Financing Receivable      
2026 900    
2027 351    
2028 166    
2029 36    
2030 14    
Thereafter 14    
Total 1,481    
Guaranteed residual value 39    
Unguaranteed residual value 9    
Unearned income (18)    
Total $ 1,511 $ 1,235  
v3.25.4
Finance Receivables - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable      
Finance lease revenue (included in retail and wholesale finance revenue) $ 470 $ 437 $ 419
Financing receivable, weighted average term 51 months    
Financing receivable, weighted average remaining term 28 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 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      
Finance receivable, non-accrual $ 0 $ 0  
Amortized cost of finance receivables modified 0 0  
Dealer | Latin America      
Accounts, Notes, Loans and Financing Receivable      
Gross write-offs   47  
Caterpillar Purchased Receivables      
Accounts, Notes, Loans and Financing Receivable      
Amortized cost of finance receivables modified 0 0  
Customer      
Accounts, Notes, Loans and Financing Receivable      
Gross write-offs 8 11  
Finance receivable, non-accrual 163 176  
Amortized cost of finance receivables modified $ 38 $ 33  
Modifications as a percentage of Customer portfolio 0.16% 0.15%  
Customer | Latin America      
Accounts, Notes, Loans and Financing Receivable      
Gross write-offs $ 1 $ 8  
Finance receivable, non-accrual $ 24 $ 24  
v3.25.4
Finance Receivables - Allowance for credit losses and total finance receivables (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Allowance for Credit Losses    
Beginning Balance $ 267 $ 331
Write-offs (148) (172)
Recoveries 47 57
Provision for credit losses 111 85
Other 7 (34)
Ending Balance 284 267
Finance Receivables 33,099 29,231
Customer    
Financing Receivable, Allowance for Credit Losses    
Beginning Balance 258 276
Write-offs (148) (125)
Recoveries 47 57
Provision for credit losses 109 84
Other 7 (34)
Ending Balance 273 258
Finance Receivables 24,572 22,199
Dealer    
Financing Receivable, Allowance for Credit Losses    
Beginning Balance 4 51
Write-offs 0 (47)
Recoveries 0 0
Provision for credit losses 0 0
Other 0 0
Ending Balance 4 4
Finance Receivables 3,027 2,749
Caterpillar Purchased Receivables    
Financing Receivable, Allowance for Credit Losses    
Beginning Balance 5 4
Write-offs 0 0
Recoveries 0 0
Provision for credit losses 2 1
Other 0 0
Ending Balance 7 5
Finance Receivables $ 5,500 $ 4,283
v3.25.4
Finance Receivables - Summary of write-offs by origination year (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Write-offs by origination year [Line Items]    
Total $ 148 $ 172
Customer    
Write-offs by origination year [Line Items]    
2025 & 2024 7 12
2024 & 2023 37 33
2023 & 2022 46 32
2022 & 2021 28 19
2021 & 2020 13 9
Prior 8 11
Revolving Finance Receivables 9 9
Total $ 148 $ 125
Financing Receivable, Modifications    
Weighted average payment deferral and/or interest only periods 6 months 6 months
Customer | North America    
Write-offs by origination year [Line Items]    
2025 & 2024 $ 3 $ 2
2024 & 2023 15 19
2023 & 2022 27 13
2022 & 2021 12 6
2021 & 2020 8 3
Prior 4 1
Revolving Finance Receivables 8 9
Total 77 53
Customer | EAME    
Write-offs by origination year [Line Items]    
2025 & 2024 1 1
2024 & 2023 5 4
2023 & 2022 7 5
2022 & 2021 3 4
2021 & 2020 2 2
Prior 1 1
Revolving Finance Receivables 1 0
Total 20 17
Customer | Asia/Pacific    
Write-offs by origination year [Line Items]    
2025 & 2024 2 1
2024 & 2023 6 4
2023 & 2022 3 5
2022 & 2021 2 4
2021 & 2020 1 1
Prior 0 1
Revolving Finance Receivables 0 0
Total 14 16
Customer | Latin America    
Write-offs by origination year [Line Items]    
2025 & 2024 1 0
2024 & 2023 3 3
2023 & 2022 3 6
2022 & 2021 5 5
2021 & 2020 2 3
Prior 1 8
Revolving Finance Receivables 0 0
Total 15 25
Customer | Mining    
Write-offs by origination year [Line Items]    
2025 & 2024 0 8
2024 & 2023 8 3
2023 & 2022 6 3
2022 & 2021 6 0
2021 & 2020 0 0
Prior 1 0
Revolving Finance Receivables 0 0
Total 21 $ 14
Customer | Power    
Write-offs by origination year [Line Items]    
2025 & 2024 0  
2024 & 2023 0  
2023 & 2022 0  
2022 & 2021 0  
2021 & 2020 0  
Prior 1  
Revolving Finance Receivables 0  
Total $ 1  
v3.25.4
Finance Receivables - Amortized cost of finance receivables in the Customer portfolio segment by origination year (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Credit Quality Indicator    
Total $ 33,099 $ 29,231
Customer    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 10,551 9,790
2024 and 2023, respectively 6,991 6,043
2023 and 2022, respectively 3,841 3,228
2022 and 2021, respectively 1,679 1,768
2021 and 2020, respectively 628 529
Prior 163 218
Revolving Finance Receivables 719 623
Total 24,572 22,199
Customer | Current    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 10,468 9,705
2024 and 2023, respectively 6,844 5,893
2023 and 2022, respectively 3,725 3,122
2022 and 2021, respectively 1,609 1,708
2021 and 2020, respectively 604 508
Prior 156 205
Revolving Finance Receivables 712 618
Total 24,118 21,759
Customer | 31-60 Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 46 45
2024 and 2023, respectively 68 65
2023 and 2022, respectively 42 43
2022 and 2021, respectively 28 24
2021 and 2020, respectively 8 6
Prior 1 3
Revolving Finance Receivables 4 3
Total 197 189
Customer | 61-90 Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 18 14
2024 and 2023, respectively 24 22
2023 and 2022, respectively 16 14
2022 and 2021, respectively 10 8
2021 and 2020, respectively 4 3
Prior 1 1
Revolving Finance Receivables 2 1
Total 75 63
Customer | 91+ Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 19 26
2024 and 2023, respectively 55 63
2023 and 2022, respectively 58 49
2022 and 2021, respectively 32 28
2021 and 2020, respectively 12 12
Prior 5 9
Revolving Finance Receivables 1 1
Total 182 188
Customer | North America | Current    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 5,531 5,340
2024 and 2023, respectively 3,634 3,035
2023 and 2022, respectively 1,845 1,567
2022 and 2021, respectively 743 980
2021 and 2020, respectively 318 244
Prior 20 23
Revolving Finance Receivables 510 385
Total 12,601 11,574
Customer | North America | 31-60 Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 30 30
2024 and 2023, respectively 42 42
2023 and 2022, respectively 28 29
2022 and 2021, respectively 18 18
2021 and 2020, respectively 6 5
Prior 1 1
Revolving Finance Receivables 4 3
Total 129 128
Customer | North America | 61-90 Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 11 9
2024 and 2023, respectively 14 14
2023 and 2022, respectively 10 10
2022 and 2021, respectively 5 6
2021 and 2020, respectively 3 2
Prior 0 1
Revolving Finance Receivables 2 1
Total 45 43
Customer | North America | 91+ Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 11 13
2024 and 2023, respectively 34 37
2023 and 2022, respectively 29 26
2022 and 2021, respectively 20 16
2021 and 2020, respectively 8 6
Prior 3 2
Revolving Finance Receivables 1 1
Total 106 101
Customer | EAME | Current    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 1,560 1,244
2024 and 2023, respectively 938 874
2023 and 2022, respectively 614 532
2022 and 2021, respectively 316 285
2021 and 2020, respectively 114 92
Prior 44 72
Revolving Finance Receivables 0 0
Total 3,586 3,099
Customer | EAME | 31-60 Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 5 7
2024 and 2023, respectively 12 10
2023 and 2022, respectively 6 4
2022 and 2021, respectively 6 3
2021 and 2020, respectively 2 1
Prior 0 0
Revolving Finance Receivables 0 0
Total 31 25
Customer | EAME | 61-90 Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 3 3
2024 and 2023, respectively 5 4
2023 and 2022, respectively 3 1
2022 and 2021, respectively 2 1
2021 and 2020, respectively 1 1
Prior 0 0
Revolving Finance Receivables 0 0
Total 14 10
Customer | EAME | 91+ Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 5 3
2024 and 2023, respectively 9 14
2023 and 2022, respectively 12 8
2022 and 2021, respectively 6 6
2021 and 2020, respectively 3 4
Prior 2 1
Revolving Finance Receivables 0 0
Total 37 36
Customer | Asia/Pacific | Current    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 1,175 1,064
2024 and 2023, respectively 691 662
2023 and 2022, respectively 380 313
2022 and 2021, respectively 137 126
2021 and 2020, respectively 42 31
Prior 3 4
Revolving Finance Receivables 50 46
Total 2,478 2,246
Customer | Asia/Pacific | 31-60 Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 5 4
2024 and 2023, respectively 8 6
2023 and 2022, respectively 3 5
2022 and 2021, respectively 1 2
2021 and 2020, respectively 0 0
Prior 0 0
Revolving Finance Receivables 0 0
Total 17 17
Customer | Asia/Pacific | 61-90 Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 2 1
2024 and 2023, respectively 3 1
2023 and 2022, respectively 1 2
2022 and 2021, respectively 2 1
2021 and 2020, respectively 0 0
Prior 0 0
Revolving Finance Receivables 0 0
Total 8 5
Customer | Asia/Pacific | 91+ Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 1 4
2024 and 2023, respectively 1 1
2023 and 2022, respectively 2 2
2022 and 2021, respectively 2 1
2021 and 2020, respectively 0 1
Prior 0 0
Revolving Finance Receivables 0 0
Total 6 9
Customer | Latin America | Current    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 984 800
2024 and 2023, respectively 511 363
2023 and 2022, respectively 212 220
2022 and 2021, respectively 96 60
2021 and 2020, respectively 15 8
Prior 1 2
Revolving Finance Receivables 4 0
Total 1,823 1,453
Customer | Latin America | 31-60 Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 3 4
2024 and 2023, respectively 6 6
2023 and 2022, respectively 5 5
2022 and 2021, respectively 3 1
2021 and 2020, respectively 0 0
Prior 0 2
Revolving Finance Receivables 0 0
Total 17 18
Customer | Latin America | 61-90 Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 2 1
2024 and 2023, respectively 2 2
2023 and 2022, respectively 2 1
2022 and 2021, respectively 1 0
2021 and 2020, respectively 0 0
Prior 1 0
Revolving Finance Receivables 0 0
Total 8 4
Customer | Latin America | 91+ Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 1 2
2024 and 2023, respectively 10 6
2023 and 2022, respectively 7 8
2022 and 2021, respectively 4 4
2021 and 2020, respectively 1 1
Prior 0 1
Revolving Finance Receivables 0 0
Total 23 22
Customer | Mining | Current    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 946 1,067
2024 and 2023, respectively 806 775
2023 and 2022, respectively 495 450
2022 and 2021, respectively 280 214
2021 and 2020, respectively 107 69
Prior 51 41
Revolving Finance Receivables 0 21
Total 2,685 2,637
Customer | Mining | 31-60 Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 3 0
2024 and 2023, respectively 0 1
2023 and 2022, respectively 0 0
2022 and 2021, respectively 0 0
2021 and 2020, respectively 0 0
Prior 0 0
Revolving Finance Receivables 0 0
Total 3 1
Customer | Mining | 61-90 Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 0 0
2024 and 2023, respectively 0 1
2023 and 2022, respectively 0 0
2022 and 2021, respectively 0 0
2021 and 2020, respectively 0 0
Prior 0 0
Revolving Finance Receivables 0 0
Total 0 1
Customer | Mining | 91+ Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 1 4
2024 and 2023, respectively 1 5
2023 and 2022, respectively 8 5
2022 and 2021, respectively 0 1
2021 and 2020, respectively 0 0
Prior 0 3
Revolving Finance Receivables 0 0
Total 10 18
Customer | Power | Current    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 272 190
2024 and 2023, respectively 264 184
2023 and 2022, respectively 179 40
2022 and 2021, respectively 37 43
2021 and 2020, respectively 8 64
Prior 37 63
Revolving Finance Receivables 148 166
Total 945 750
Customer | Power | 31-60 Days Past Due    
Financing Receivable, Credit Quality Indicator    
2025 and 2024, respectively 0 0
2024 and 2023, respectively 0 0
2023 and 2022, respectively 0 0
2022 and 2021, respectively 0 0
2021 and 2020, 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    
2025 and 2024, respectively 0 0
2024 and 2023, respectively 0 0
2023 and 2022, respectively 0 0
2022 and 2021, respectively 0 0
2021 and 2020, 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    
2025 and 2024, respectively 0 0
2024 and 2023, respectively 0 0
2023 and 2022, respectively 0 0
2022 and 2021, respectively 0 0
2021 and 2020, respectively 0 0
Prior 0 2
Revolving Finance Receivables 0 0
Total $ 0 $ 2
v3.25.4
Finance Receivables -Aging related to finance receivables (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Financing Receivable, Past Due    
Finance Receivables $ 33,099 $ 29,231
Caterpillar Purchased Receivables    
Financing Receivable, Past Due    
Finance Receivables 5,500 4,283
Caterpillar Purchased Receivables | Current    
Financing Receivable, Past Due    
Finance Receivables 5,475 4,251
Caterpillar Purchased Receivables | 31-60 Days Past Due    
Financing Receivable, Past Due    
Finance Receivables 13 19
Caterpillar Purchased Receivables | 61-90 Days Past Due    
Financing Receivable, Past Due    
Finance Receivables 7 7
Caterpillar Purchased Receivables | 91+ Days Past Due    
Financing Receivable, Past Due    
Finance Receivables 5 6
Caterpillar Purchased Receivables | North America    
Financing Receivable, Past Due    
Finance Receivables 3,263 2,607
Caterpillar Purchased Receivables | North America | Current    
Financing Receivable, Past Due    
Finance Receivables 3,242 2,584
Caterpillar Purchased Receivables | North America | 31-60 Days Past Due    
Financing Receivable, Past Due    
Finance Receivables 9 14
Caterpillar Purchased Receivables | North America | 61-90 Days Past Due    
Financing Receivable, Past Due    
Finance Receivables 7 5
Caterpillar Purchased Receivables | North America | 91+ Days Past Due    
Financing Receivable, Past Due    
Finance Receivables 5 4
Caterpillar Purchased Receivables | EAME    
Financing Receivable, Past Due    
Finance Receivables 1,190 744
Caterpillar Purchased Receivables | EAME | Current    
Financing Receivable, Past Due    
Finance Receivables 1,189 740
Caterpillar Purchased Receivables | EAME | 31-60 Days Past Due    
Financing Receivable, Past Due    
Finance Receivables 1 3
Caterpillar Purchased Receivables | EAME | 61-90 Days Past Due    
Financing Receivable, Past Due    
Finance Receivables 0 1
Caterpillar Purchased Receivables | EAME | 91+ Days Past Due    
Financing Receivable, Past Due    
Finance Receivables 0 0
Caterpillar Purchased Receivables | Asia/Pacific    
Financing Receivable, Past Due    
Finance Receivables 647 529
Caterpillar Purchased Receivables | Asia/Pacific | Current    
Financing Receivable, Past Due    
Finance Receivables 646 528
Caterpillar Purchased Receivables | Asia/Pacific | 31-60 Days Past Due    
Financing Receivable, Past Due    
Finance Receivables 1 0
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 0 1
Caterpillar Purchased Receivables | Latin America    
Financing Receivable, Past Due    
Finance Receivables 387 383
Caterpillar Purchased Receivables | Latin America | Current    
Financing Receivable, Past Due    
Finance Receivables 387 383
Caterpillar Purchased Receivables | Latin America | 31-60 Days Past Due    
Financing Receivable, Past Due    
Finance Receivables 0 0
Caterpillar Purchased Receivables | Latin America | 61-90 Days Past Due    
Financing Receivable, Past Due    
Finance Receivables 0 0
Caterpillar Purchased Receivables | Latin America | 91+ Days Past Due    
Financing Receivable, Past Due    
Finance Receivables 0 0
Caterpillar Purchased Receivables | Power    
Financing Receivable, Past Due    
Finance Receivables 13 20
Caterpillar Purchased Receivables | Power | Current    
Financing Receivable, Past Due    
Finance Receivables 11 16
Caterpillar Purchased Receivables | Power | 31-60 Days Past Due    
Financing Receivable, Past Due    
Finance Receivables 2 2
Caterpillar Purchased Receivables | Power | 61-90 Days Past Due    
Financing Receivable, Past Due    
Finance Receivables 0 1
Caterpillar Purchased Receivables | Power | 91+ Days Past Due    
Financing Receivable, Past Due    
Finance Receivables $ 0 $ 1
v3.25.4
Finance Receivables - Finance receivables on non-accrual status (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Customer    
Financing Receivable, Past Due    
Finance receivable, non-accrual $ 163 $ 176
Amortized Cost, 91+ Still Accruing 28 30
Customer | North America    
Financing Receivable, Past Due    
Finance receivable, non-accrual 90 83
Amortized Cost, 91+ Still Accruing 20 20
Customer | EAME    
Financing Receivable, Past Due    
Finance receivable, non-accrual 35 33
Amortized Cost, 91+ Still Accruing 5 5
Customer | Asia/Pacific    
Financing Receivable, Past Due    
Finance receivable, non-accrual 4 5
Amortized Cost, 91+ Still Accruing 2 5
Customer | Latin America    
Financing Receivable, Past Due    
Finance receivable, non-accrual 24 24
Amortized Cost, 91+ Still Accruing 1 0
Customer | Mining    
Financing Receivable, Past Due    
Finance receivable, non-accrual 10 29
Amortized Cost, 91+ Still Accruing 0 0
Customer | Power    
Financing Receivable, Past Due    
Finance receivable, non-accrual 0 2
Amortized Cost, 91+ Still Accruing 0 0
Dealer    
Financing Receivable, Past Due    
Finance receivable, non-accrual $ 0 $ 0
v3.25.4
Finance Receivables - Financial effects of term extensions and payment delays (Details) - Customer - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Accounts, Notes, Loans and Financing Receivable    
Amortized cost of finance receivables modified $ 38 $ 33
Modifications as a percentage of Customer portfolio 0.16% 0.15%
Weighted average extension to term of modified contracts 19 months 8 months
Weighted average payment deferral and/or interest only periods 6 months 6 months
v3.25.4
Equipment on Operating Leases - Carrying amount of Equipment on operating leases, net (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Equipment on operating leases, at cost $ 4,401 $ 4,207
Less: Accumulated depreciation (1,474) (1,427)
Equipment on operating leases, net $ 2,927 $ 2,780
v3.25.4
Equipment on Operating Leases - Schedule of payments due for operating leases (Details)
$ in Millions
Dec. 31, 2025
USD ($)
Leases [Abstract]  
2026 $ 745
2027 503
2028 324
2029 153
2030 72
Thereafter 21
Total $ 1,818
v3.25.4
Credit Commitments (Details)
$ in Millions
 1 Months Ended 12 Months Ended
Aug. 31, 2025
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Line of Credit Facility        
Number of global credit facilities   3    
Amount available   $ 11,500    
Maximum borrowing capacity from Caterpillar, Variable lending agreements   3,520    
Maximum lending capacity to Caterpillar, Variable lending agreements   $ 2,290    
Termination, minimum number of days to notify   30 days    
Term lending agreements, maximum remaining maturity   9 years    
Notes receivable   $ 663 $ 559 $ 527
Caterpillar        
Line of Credit Facility        
Maximum borrowing capacity from Caterpillar, Variable lending agreements   3,520    
Maximum lending capacity to Caterpillar, Variable lending agreements   2,290    
Notes payable   1,024 10 $ 24
Revolving credit facilities        
Line of Credit Facility        
Amount outstanding   0    
Revolving credit facilities | Cat Financial        
Line of Credit Facility        
Amount available   8,630    
364-day facility        
Line of Credit Facility        
Amount available $ 3,500      
364-day facility | Credit Facility 1        
Line of Credit Facility        
Term 364 days      
364-day facility | Cat Financial        
Line of Credit Facility        
Amount available $ 2,630      
Three-year facility        
Line of Credit Facility        
Amount available $ 3,000      
Three-year facility | Credit Facility 1        
Line of Credit Facility        
Term 3 years      
Three-year facility | Cat Financial        
Line of Credit Facility        
Amount available $ 2,250      
Five-year facility        
Line of Credit Facility        
Amount available $ 5,000      
Five-year facility | Credit Facility 1        
Line of Credit Facility        
Term 5 years      
Five-year facility | Cat Financial        
Line of Credit Facility        
Amount available $ 3,750      
Credit lines with banks        
Line of Credit Facility        
Amount available   3,440    
Amount outstanding   $ 771 $ 687  
v3.25.4
Short-Term Borrowings (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Short-term Debt    
Balance $ 5,514 $ 4,393
Commercial paper, net    
Short-term Debt    
Balance $ 5,408 $ 3,946
Weighted Avg. Rate 3.80% 4.50%
Bank borrowings and other    
Short-term Debt    
Balance $ 106 $ 165
Weighted Avg. Rate 10.10% 10.80%
Variable denomination floating rate demand notes    
Short-term Debt    
Balance $ 0 $ 282
Weighted Avg. Rate 0.00% 4.20%
v3.25.4
Long-Term Debt (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Jan. 08, 2026
Dec. 31, 2024
Debt Instrument      
Medium-term notes, maximum remaining maturity 5 years    
Face amount of medium-term notes excluded from current maturities $ 1,750    
Medium-term notes      
Debt Instrument      
Long-term debt issued 8,670    
Long-term debt issued at fixed interest rates 5,750    
Long-term debt issued at floating interest rates 2,920    
Long term debt, gross $ 26,424   $ 24,940
Medium-term notes | Subsequent Event      
Debt Instrument      
Long term debt, gross   $ 1,750  
Medium Term Note, 2028 | Subsequent Event      
Debt Instrument      
Long term debt, gross   1,250  
Medium Term Note, 2031 | Subsequent Event      
Debt Instrument      
Long term debt, gross   $ 500  
v3.25.4
Long-Term Debt - Long-term debt (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument    
Fair value adjustments $ 54 $ (16)
Long-term debt 27,103 25,406
Medium-term notes    
Debt Instrument    
Long term debt, gross 26,424 24,940
Unamortized discount and debt issuance costs (41) (42)
Fair value adjustments 54 (16)
Long-term debt $ 26,437 $ 24,882
Weighted Avg. Rate 3.80% 3.90%
Bank borrowings and other    
Debt Instrument    
Long-term debt $ 666  
Weighted Avg. Rate 10.70% 9.60%
v3.25.4
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, 2025
USD ($)
Long-Term Debt, Unclassified [Abstract]  
2026 $ 7,085
2027 8,890
2028 7,528
2029 2,590
2030 $ 456
v3.25.4
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, 2025
Dec. 31, 2024
Derivatives, Fair Value    
Assets $ 296 $ 322
Liabilities (171) (139)
Designated derivatives    
Derivatives, Fair Value    
Assets 283 238
Liabilities (100) (120)
Designated derivatives | Foreign exchange contracts    
Derivatives, Fair Value    
Assets 229 228
Liabilities (94) (89)
Designated derivatives | Interest rate contracts    
Derivatives, Fair Value    
Assets 54 10
Liabilities (6) (31)
Undesignated derivatives    
Derivatives, Fair Value    
Assets 13 84
Liabilities (71) (19)
Undesignated derivatives | Foreign exchange contracts    
Derivatives, Fair Value    
Assets 13 84
Liabilities $ (71) $ (19)
v3.25.4
Derivative Financial Instruments and Risk Management - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Derivative instruments, notional amount $ 18,210 $ 15,970
Deferred net losses, net of tax, included in equity, related to cash flow hedges, expected to be reclassified to earnings over the next twelve months 21  
Derivatives, Maximum exposure to credit loss $ 296 $ 322
v3.25.4
Derivative Financial Instruments and Risk Management - Schedule of Gains (Losses) on Derivatives Instruments (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Derivative Instruments, Gain (Loss)      
Gains (Losses) Recognized on Hedged Instruments $ (199) $ 91 $ (114)
Gains (Losses) Recognized in AOCI 34 266 (13)
Gains (Losses) Reclassified from AOCI 79 254 (10)
Designated derivatives | Cash Flow Hedges | Foreign exchange contracts      
Derivative Instruments, Gain (Loss)      
Gains (Losses) Recognized on Hedged Instruments 0 0 0
Gains (Losses) Recognized in AOCI, Cash Flow Hedges 43 255 (22)
Gains (Losses) Reclassified from AOCI, Cash Flow Hedges 81 213 (68)
Designated derivatives | Cash Flow Hedges | Interest rate contracts      
Derivative Instruments, Gain (Loss)      
Gains (Losses) Recognized on Hedged Instruments 0 0 0
Gains (Losses) Recognized in AOCI, Cash Flow Hedges 0 11 9
Gains (Losses) Reclassified from AOCI, Cash Flow Hedges 6 41 58
Designated derivatives | Fair Value Hedges | Foreign exchange contracts      
Derivative Instruments, Gain (Loss)      
Gains (Losses) Recognized on Hedged Instruments 0 0 0
Gains (Losses) Recognized in AOCI, Fair Value Hedges (9) 0 0
Gains (Losses) Reclassified from AOCI, Fair Value Hedges $ (8) $ 0 $ 0
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Other income (expense) Other income (expense) Other income (expense)
Designated derivatives | Fair Value Hedges | Interest rate contracts      
Derivative Instruments, Gain (Loss)      
Gains (Losses) Recognized on Hedged Instruments $ (26) $ (76) $ (75)
Gains (Losses) Recognized in AOCI, Fair Value Hedges 0 0 0
Gains (Losses) Reclassified from AOCI, Fair Value Hedges $ 0 $ 0 $ 0
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Interest Interest Interest
Undesignated derivatives | Foreign exchange contracts      
Derivative Instruments, Gain (Loss)      
Gains (Losses) Recognized on Hedged Instruments $ (173) $ 167 $ (39)
v3.25.4
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, 2025
Dec. 31, 2024
Derivatives, Fair Value    
Carrying Value of the Hedged Liabilities $ 3,953 $ 3,730
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities 54 (16)
Current maturities of long-term debt    
Derivatives, Fair Value    
Carrying Value of the Hedged Liabilities 602 483
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities $ 3 $ (16)
Hedged Liability, Statement of Financial Position [Extensible Enumeration] Other liabilities Other liabilities
Long-term debt    
Derivatives, Fair Value    
Carrying Value of the Hedged Liabilities $ 3,351 $ 3,247
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities $ 51 $ 0
Hedged Liability, Statement of Financial Position [Extensible Enumeration] Other liabilities Other liabilities
v3.25.4
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, 2025
Dec. 31, 2024
Assets    
Gross amounts recognized $ 296 $ 322
Financial instruments not offset (100) (54)
Net amount 196 268
Liabilities    
Gross amounts recognized (171) (139)
Financial instruments not offset 100 54
Net amount $ (71) $ (85)
v3.25.4
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]      
Balance $ 2,890 $ 3,170 $ 2,963
Total Other comprehensive income (loss), net of tax 296 (254) 64
Balance 3,227 2,890 3,170
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Balance 2,890 3,170 2,963
Total Other comprehensive income (loss), net of tax 296 (254) 64
Balance 3,227 2,890 3,170
Foreign currency translation      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]      
Balance (1,256) (996) (1,068)
Gains (losses) before reclassification, before tax 328 (299) 55
Less: Tax provision/(benefit) 0 22 (17)
Gains (losses) before reclassification, net of tax 328 (321) 72
(Gains) losses reclassified to earnings 0 61 0
Less: Tax provision/(benefit) 0 0 0
Net (gains) losses reclassified to earnings 0 61 0
Total Other comprehensive income (loss), net of tax 328 (260) 72
Balance (928) (1,256) (996)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Balance (1,256) (996) (1,068)
Gains (losses) before reclassification, before tax 328 (299) 55
Less: Tax provision/(benefit) 0 22 (17)
Gains (losses) before reclassification, net of tax 328 (321) 72
(Gains) losses reclassified to earnings 0 61 0
Less: Tax provision/(benefit) 0 0 0
Net (gains) losses reclassified to earnings 0 61 0
Total Other comprehensive income (loss), net of tax 328 (260) 72
Balance (928) (1,256) (996)
Derivative financial instruments      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]      
Balance 24 18 21
Gains (losses) before reclassification, before tax 34 266 (13)
Less: Tax provision/(benefit) 8 74 (3)
Gains (losses) before reclassification, net of tax 26 192 (10)
(Gains) losses reclassified to earnings (79) (254) 10
Less: Tax provision/(benefit) (19) (68) 3
Net (gains) losses reclassified to earnings (60) (186) 7
Total Other comprehensive income (loss), net of tax (34) 6 (3)
Balance (10) 24 18
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Balance 24 18 21
Gains (losses) before reclassification, before tax 34 266 (13)
Less: Tax provision/(benefit) 8 74 (3)
Gains (losses) before reclassification, net of tax 26 192 (10)
(Gains) losses reclassified to earnings (79) (254) 10
Less: Tax provision/(benefit) (19) (68) 3
Net (gains) losses reclassified to earnings (60) (186) 7
Total Other comprehensive income (loss), net of tax (34) 6 (3)
Balance (10) 24 18
Accumulated other comprehensive income (loss)      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]      
Balance (1,232) (978) (1,047)
Balance (938) (1,232) (978)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Balance (1,232) (978) (1,047)
Balance $ (938) $ (1,232) $ (978)
v3.25.4
Commitments and Contingent Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Guarantor Obligations    
Guarantees, maximum potential amount of future payments $ 25 $ 23
Assets 38,313 34,084
Liabilities 35,086 31,194
Reserve for credit losses 8  
Dealer    
Guarantor Obligations    
Unused commitments to extend credit to customers 291  
Customer    
Guarantor Obligations    
Unused commitments to extend credit to customers 901  
Variable Interest Entity, Primary Beneficiary    
Guarantor Obligations    
Assets 1,190 1,140
Liabilities 1,190 1,140
Maximum    
Guarantor Obligations    
Related recorded liability $ 1 $ 1
v3.25.4
Income Taxes - Reconciliation of the U.S. federal statutory rate to effective rate (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
Taxes computed at U.S. statutory rates $ 154 $ 112 $ 160
State and local income taxes, net of federal tax   1 5
Statutory tax rate difference   (14) 21
Changes in valuation allowances   1 (14)
Branch taxation (13)    
Foreign tax credits (withholding taxes) (20)    
Other cross-border 6    
Provision for income taxes and effective rate $ 193 $ (66) $ 192
Percent      
Taxes computed at U.S. statutory rates 21.00% 21.00% 21.00%
State income tax, net of federal tax (as a percent)   0.20% 0.50%
Statutory tax rate difference   (2.60%) 2.80%
Changes in valuation allowances   0.20% (1.80%)
Branch taxation (1.70%)    
Foreign tax credits (withholding taxes) (2.80%)    
Other cross-border 0.80%    
Provision for income taxes and effective rate 26.30% (12.40%) 25.20%
Other foreign jurisdictions      
Amount      
Statutory tax rate difference $ 42    
Percent      
Statutory tax rate difference 5.70%    
Brazil      
Amount      
Statutory tax rate difference $ 8    
Other $ 8    
Percent      
Statutory tax rate difference 1.10%    
Other 1.10%    
United Kingdom      
Amount      
Changes in valuation allowances $ 23    
Percent      
Changes in valuation allowances 3.10%    
Luxembourg      
Amount      
Changes in valuation allowances $ (19)    
Percent      
Changes in valuation allowances (2.60%)    
United States      
Amount      
Other $ 4    
Percent      
Other 0.60%    
v3.25.4
Income Taxes - Reconciliation of the U.S. federal statutory rate to effective rate continued (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Percent      
Taxes computed at U.S. statutory rates $ 154 $ 112 $ 160
Taxes computed at U.S. statutory rates 21.00% 21.00% 21.00%
(Decreases) increases in taxes resulting from:      
State and local income taxes, net of federal tax   $ 1 $ 5
State income tax, net of federal tax (as a percent)   0.20% 0.50%
Non-U.S. subsidiaries taxed at other than the U.S. rate   $ (14) $ 21
Non-U.S. subsidiaries taxed at other than the U.S. rate   (2.60%) 2.80%
Valuation allowances   $ 1 $ (14)
Valuation allowances   0.20% (1.80%)
Tax law change for currency translation   $ (224) $ 0
Tax law change for currency translation (as a percent)   (0.420) 0
Tax loss on divestiture of a non-U.S. subsidiary   $ 48 $ 0
Tax loss on divestiture of a non-U.S. subsidiary (as a percent)   0.090 0
Tax loss on divestiture of Non-US Subsidiary   $ 2 $ 30
Dividend withholding tax & indefinite reinvestment change (as a percent)   0.40% 4.00%
Foreign currency translation taxed at non- U.S. subsidiaries   $ 8 $ (10)
Foreign currency translation taxed at non-U.S subsidiaries (as a percent)   1.50% (1.30%)
Provision for income taxes and effective rate $ 193 $ (66) $ 192
Provision for income taxes and effective rate 26.30% (12.40%) 25.20%
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Effective Income Tax Rate Reconciliation [Line Items]      
Valuation allowances   $ 1 $ (14)
Tax law change for currency translation   224 0
Income taxes payable $ 186 255  
Net income tax paid 236 140 210
Deferred tax asset, operating loss carryforward 16    
Deferred tax assets, valuation allowance 57 51  
Interest and penalties 11    
Accrued interest and penalties $ 19 10  
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 23 15 8
U.S. state taxing jurisdictions      
Effective Income Tax Rate Reconciliation [Line Items]      
Deferred tax assets, state losses 4    
Domestic Tax Jurisdiction      
Effective Income Tax Rate Reconciliation [Line Items]      
Deferred tax assets, valuation allowance 16    
Non-U.S. taxing jurisdictions      
Effective Income Tax Rate Reconciliation [Line Items]      
Deferred tax asset, operating loss carryforward, not subject to expiration 96    
NOL carryforwards, valuation allowance 41    
Non-U.S. taxing jurisdictions | Expiration Date On Or Before 2035      
Effective Income Tax Rate Reconciliation [Line Items]      
Deferred tax asset, operating loss carryfoward 20    
Foreign Tax Authority, Non-US Subsidiary, Specific Entity      
Effective Income Tax Rate Reconciliation [Line Items]      
Valuation allowances $ (19)   $ (22)
Capital Loss Carryforward      
Effective Income Tax Rate Reconciliation [Line Items]      
Valuation allowance, deferred tax asset   $ 15  
v3.25.4
Income Taxes - Components of profit before income taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Components of Profit before income taxes      
U.S. $ 376 $ 173 $ 384
Non-U.S. 358 360 376
Profit before income taxes $ 734 $ 533 $ 760
v3.25.4
Income Taxes - Components of the provision for income taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current income tax provision:      
U.S. Federal $ (20) $ 117 $ 36
Non-U.S. 143 109 150
U.S. State (2) 2 3
Current income tax provision 121 228 189
Deferred income tax provision (benefit):      
U.S. Federal 72 (283) 33
Non-U.S. (2) 9 (31)
U.S. State 2 (20) 1
Deferred income tax provision 72 (294) 3
Provision for income taxes and effective rate $ 193 $ (66) $ 192
v3.25.4
Income Taxes - Schedule of income taxes paid (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Effective Income Tax Rate Reconciliation [Line Items]      
U.S. Federal $ 104    
U.S. State 1    
Non-U.S.      
Net income tax and related interest paid 236 $ 140 $ 210
Australia      
Non-U.S.      
Non-U.S. 42    
Brazil      
Non-U.S.      
Non-U.S. 26    
Canada      
Non-U.S.      
Non-U.S. 22    
Other foreign jurisdictions      
Non-U.S.      
Non-U.S. $ 41    
v3.25.4
Income Taxes - Deferred income tax assets and liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Assets:    
Other assets $ 133 $ 114
Liabilities:    
Other liabilities (402) (330)
Deferred income taxes, net (269) (216)
Deferred income tax assets:    
Allowance for credit losses 80 77
Tax carryforwards 136 122
Revenue timing differences 19 19
Deferred tax assets, gross 235 218
Deferred income tax liabilities:    
Capital assets, including lease basis differences (438) (367)
Undistributed profits of non-U.S. subsidiaries (11) (15)
Deferred Tax Liabilities, Gross (449) (382)
Valuation allowance for deferred income tax assets (57) (51)
Other, net 2 (1)
Deferred income taxes, net $ (269) $ (216)
v3.25.4
Income Taxes - Schedule of unrecognized tax benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Reconciliation of unrecognized income tax benefits      
Unrecognized tax benefits, beginning of year $ 134 $ 119 $ 127
Additions for income tax positions related to current year 0 15 0
Additions for income tax positions related to prior year 4 0 0
Reductions for income tax positions related to prior year 0 0 (2)
Reductions for income tax positions related to settlements 0 0 (6)
Unrecognized tax benefits, end of year 138 134 119
Amount that, if recognized, would impact the effective tax rate $ 138 $ 134 $ 119
v3.25.4
Fair Value Measurements (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Loans carried at fair value $ 63 $ 59
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Derivative financial instruments, net asset (liability) position $ 125 $ 183
v3.25.4
Fair Value Measurements - Fair values of financial instruments (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Carrying  Amount    
Assets    
Finance receivables, net (excluding finance leases) $ 25,346 $ 22,026
Liabilities    
Long-term debt 27,103 25,406
Fair  Value | Fair Value, Level 2    
Liabilities    
Long-term debt 27,204 25,304
Fair  Value | Fair Value, Level 3    
Assets    
Finance receivables, net (excluding finance leases) 25,012 21,593
Carrying amount of assets excluded from measurement at fair value    
Liabilities    
Finance leases and failed sale leasebacks, Carrying Value $ 7,470 $ 6,940
v3.25.4
Transactions with Related Parties - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
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 $ 500 $ 625 $ 425
Maximum borrowing capacity from Caterpillar, Variable lending agreements 3,520    
Maximum lending capacity to Caterpillar, Variable lending agreements 2,290    
General, operating and administrative 666 644 588
Caterpillar      
Related Party Transaction      
Payments of Dividends 500 625 425
Maximum borrowing capacity from Caterpillar, Variable lending agreements 3,520    
Maximum lending capacity to Caterpillar, Variable lending agreements 2,290    
Marketing program payments received 667 540 332
General, operating and administrative 58 50 50
Administrative support services to certain Caterpillar subsidiaries reimbursed by Caterpillar 18 16 $ 15
Amount of our portfolio that is subject to guarantees by Caterpillar $ 568 $ 473  
v3.25.4
Transactions with Related Parties - Transactions with related parties (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Related Party Transaction      
Payable to Caterpillar - other $ 106 $ 137  
Notes receivable from Caterpillar 663 559 $ 527
Interest expense 1,388 1,287 1,033
Revenue earned 611 625 617
Purchased Receivables as of December 31, 33,099 29,231  
Finance receivables, net 32,815 28,964  
Equipment on operating leases, net 2,927 2,780  
Revenues 3,634 3,489 3,248
Depreciation on equipment leased to others 699 722 713
Caterpillar Purchased Receivables      
Related Party Transaction      
Purchased Receivables as of December 31, 5,500 4,283 3,949
Caterpillar      
Related Party Transaction      
Payable to Caterpillar - borrowings 1,024 10 24
Payable to Caterpillar - other 148 118 113
Other receivables from Caterpillar 163 85 39
Interest expense 28 1 1
Interest income on Notes Receivable with Caterpillar 26 23 21
Purchases made 55,656 52,930 53,382
Revenue earned 611 625 617
Finance receivables, net 272 163 109
Equipment on operating leases, net 97 115 46
Revenues 42 31 27
Depreciation on equipment leased to others $ 19 $ 18 $ 18
v3.25.4
Segment and Geographic Information - Narrative (Details)
 12 Months Ended
Dec. 31, 2025
segment
Segment Reporting [Abstract]  
Number Of Reportable Segments Not Disclosed Flag Segments
Number of operating segments 6
v3.25.4
Segment and Geographic Information - Segment information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information      
External revenues $ 3,634 $ 3,489 $ 3,248
Interest expense 1,388 1,287 1,033
Depreciation on equipment leased to others 699 722 713
General, operating and administrative expenses 666 644 588
Provision for credit losses 106 75 49
Other segment items 41 228 105
Profit before income taxes 734 533 760
Assets 38,313 34,084  
Capital expenditures 1,341 1,085 1,297
Operating Segments      
Segment Reporting Information      
External revenues 3,582 3,419 3,179
Interest expense 1,289 1,167 948
Depreciation on equipment leased to others 699 722 713
General, operating and administrative expenses 480 454 432
Provision for credit losses 106 75 48
Other segment items 26 29 35
Profit before income taxes 982 972 1,003
Assets 36,203 32,285  
Capital expenditures 1,254 1,052 1,288
Unallocated      
Segment Reporting Information      
External revenues 69 85 83
Interest expense 548 492 394
Depreciation on equipment leased to others 0 0 0
General, operating and administrative expenses 197 195 162
Provision for credit losses 0 0 1
Other segment items 2 (28) 33
Profit before income taxes (678) (574) (507)
Assets 2,128 1,921  
Capital expenditures 87 33 9
Reconciling Item | Timing      
Segment Reporting Information      
External revenues (17) (15) (14)
Interest expense 0 0 0
Depreciation on equipment leased to others 0 0 0
General, operating and administrative expenses (22) (16) (16)
Provision for credit losses 0 0 0
Other segment items (1) 0 0
Profit before income taxes 6 1 2
Assets 32 (12)  
Capital expenditures 0 0 0
Reconciling Item | Methodology      
Segment Reporting Information      
External revenues 0 0 0
Interest expense (449) (372) (309)
Depreciation on equipment leased to others 0 0 0
General, operating and administrative expenses 11 11 10
Provision for credit losses 0 0 0
Other segment items 14 17 37
Profit before income taxes 424 344 262
Assets 148 128  
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 (198) (238)  
Capital expenditures 0 0 0
North America | Operating Segments      
Segment Reporting Information      
External revenues 2,100 1,988 1,786
Interest expense 716 634 463
Depreciation on equipment leased to others 508 512 512
General, operating and administrative expenses 194 185 170
Provision for credit losses 101 70 32
Other segment items 15 17 13
Profit before income taxes 566 570 596
Assets 19,738 17,800  
Capital expenditures 936 787 961
EAME | Operating Segments      
Segment Reporting Information      
External revenues 393 380 368
Interest expense 133 143 103
Depreciation on equipment leased to others 50 54 57
General, operating and administrative expenses 93 89 93
Provision for credit losses 9 (12) 3
Other segment items 3 4 11
Profit before income taxes 105 102 101
Assets 5,638 4,668  
Capital expenditures 65 74 73
Asia/Pacific | Operating Segments      
Segment Reporting Information      
External revenues 260 271 278
Interest expense 99 100 102
Depreciation on equipment leased to others 6 4 4
General, operating and administrative expenses 78 77 69
Provision for credit losses 5 0 (2)
Other segment items 1 3 0
Profit before income taxes 71 87 105
Assets 3,564 3,276  
Capital expenditures 25 14 4
Latin America | Operating Segments      
Segment Reporting Information      
External revenues 379 338 348
Interest expense 191 152 174
Depreciation on equipment leased to others 10 13 12
General, operating and administrative expenses 62 53 52
Provision for credit losses 0 6 1
Other segment items 7 4 6
Profit before income taxes 109 110 103
Assets 2,921 2,423  
Capital expenditures 11 21 21
Mining | Operating Segments      
Segment Reporting Information      
External revenues 74 65 58
Interest expense 40 33 26
Depreciation on equipment leased to others 0 2 2
General, operating and administrative expenses 13 11 11
Provision for credit losses (1) (8) 16
Other segment items 0 0 4
Profit before income taxes 22 27 (1)
Assets 3,325 3,306  
Capital expenditures 217 156 229
Power | Operating Segments      
Segment Reporting Information      
External revenues 376 377 341
Interest expense 110 105 80
Depreciation on equipment leased to others 125 137 126
General, operating and administrative expenses 40 39 37
Provision for credit losses (8) 19 (2)
Other segment items 0 1 1
Profit before income taxes 109 76 99
Assets 1,017 812  
Capital expenditures $ 0 $ 0 $ 0
v3.25.4
Segment and Geographic Information - Geographic information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets      
External revenues $ 3,634 $ 3,489 $ 3,248
Equipment on operating leases, net and property and equipment, net (included in Other assets) 3,167 2,932  
United States      
Revenues from External Customers and Long-Lived Assets      
External revenues 2,210 2,096 1,879
Equipment on operating leases, net and property and equipment, net (included in Other assets) 2,035 1,925  
Canada      
Revenues from External Customers and Long-Lived Assets      
Equipment on operating leases, net and property and equipment, net (included in Other assets) 523 478  
All other      
Revenues from External Customers and Long-Lived Assets      
External revenues 1,424 1,393 $ 1,369
Equipment on operating leases, net and property and equipment, net (included in Other assets) $ 609 $ 529  
v3.25.4
Divestiture (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]      
Loss on divestiture $ 0 $ (210) $ 0