What changed in this filing

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Item 1. Business

2025-02-14 compared with 2024-02-16 · 42 added, 39 removed, 263 unchanged (24% of the section changed)

27 unchanged sentences

Construction Industries

Our Construction Industries segment is primarily responsible for supporting customers using machinery in infrastructure and building construction.

The majority of machine sales in this segment are made in the heavy and general construction, rental, quarry and aggregates and mining.

Our Construction Industries segment is primarily responsible for supporting customers using machinery in infrastructure and building construction applications.

The majority of machine sales in this segment are made in the heavy and general construction, rental, quarry and aggregates and mining industries.

The nature of customer demand for construction machinery varies around the world.

19 unchanged sentences

Resource Industries

The Resource Industries segment is primarily responsible for supporting customers using machinery in mining and heavy construction and quarry and aggregates.

The Resource Industries segment is primarily responsible for supporting customers using machinery in mining, heavy construction and quarry and aggregates.

Caterpillar offers a broad product range and services to deliver comprehensive solutions for our customers.

12 unchanged sentences

· large wheel loaders

· soil compactors

· landfill compactors

· off-highway trucks

· machinery components

· soil compactors

· hydraulic shovels

· wide-body trucks

· machinery components

· rotary drills

· articulated trucks

· autonomous ready vehicles and solutions

· rotary drills

· hard rock vehicles

· wheel tractor scrapers

· select work tools

· hard rock vehicles

· large track-type tractors

· wheel dozers

· safety services and mining performance

· large track-type tractors

· fleet management

· large mining trucks

· landfill compactors

· fleet management

Energy & Transportation

Our Energy & Transportation segment supports customers in oil and gas, power generation, marine, rail and industrial applications, including Caterpillar machines.

The product and services portfolio includes reciprocating engines, generator sets, integrated systems and solutions, turbines and turbine-related services, electrified powertrain and zero-emission power sources and service solutions development, the remanufacturing of Caterpillar engines and components, remanufacturing services for other companies, diesel-electric locomotives and other rail-related products and services and product support of on-highway vocational trucks for North America.

Regulatory emissions standards require us to continue to make investments as new products and new regulations are introduced.

3 unchanged sentences

The competitive environment for reciprocating engines in marine, oil and gas, industrial and electric power generation systems along with turbines in oil and gas and electric power generation consists of a few larger global competitors that compete in a variety of markets that Caterpillar serves, and a substantial number of smaller companies that compete in a limited-size product range, geographic region and/or application.

Principal global competitors include Cummins Inc., Deutz AG, Rolls-Royce Power Systems and Siemens Energy Global GmbH.

Other competitors, such as Volvo Penta AB, FPT Industrial (Iveco Group), INNIO, GE Vernova, Kawasaki Heavy Industries Energy Solution & Marine Engineering, MAN Energy Solutions (VW), Weichai Power Co., Ltd., and other emerging market competitors compete in certain markets in which Caterpillar competes.

An additional set of competitors, including Aggreko plc, Generac Holdings, Kohler Energy, Baker Hughes Co., and others, are primarily packagers who source engines and/or other components from domestic and international suppliers and market products regionally and internationally through a variety of distribution channels.

In rail-related businesses, our global competitors include Wabtec Freight, The Greenbrier Companies, Voestalpine AG, and Vossloh AG, Alstom SA, Siemens Mobility, and CRRC Corp., LTD.

Principal global competitors include Cummins Inc., Deutz AG, Rolls-Royce Power Systems AG and Siemens Energy AG.

Other competitors, such as Volvo Penta AB, FPT Industrial SpA (Iveco Group), INNIO Group, GE Vernova Inc., Kawasaki Heavy Industries Ltd., MAN Energy Solutions SE (VW), Weichai Power Co., Ltd., and other emerging market competitors compete in certain markets in which Caterpillar competes.

An additional set of competitors, including Aggreko plc, Generac Holdings Inc., Rehlko Energy, Baker Hughes Co., and others, are primarily packagers who source engines and/or other components from domestic and international suppliers and market products regionally and internationally through a variety of distribution channels.

In rail-related businesses, our global competitors include Wabtec Corp, Greenbrier Companies, Inc., Voestalpine AG, Vossloh AG, Alstom SA, and Siemens Mobility A/S.

We also compete with other companies on a more limited range of products, services and/or geographic regions.

8 unchanged sentences

The business of our Financial Products Segment is primarily conducted by Cat Financial, Insurance Services and their respective subsidiaries and affiliates.

Cat Financial is a wholly owned finance subsidiary of Caterpillar Inc.

and it provides retail and wholesale financing alternatives to customers and dealers around the world for Caterpillar products and services, as well as financing for vehicles and power generation facilities that, in most cases, incorporate Caterpillar products.

Retail financing is primarily comprised of installment sale contracts and other equipment-related loans, working capital loans, finance leases and operating leases.

Cat Financial is a wholly owned finance subsidiary of Caterpillar Inc., and it provides retail and wholesale financing alternatives to customers and dealers around the world for Caterpillar products and services, as well as financing for power generation facilities that, in most cases, incorporate Caterpillar products.

Retail financing is primarily comprised of installment sale contracts and other equipment-related loans, working capital loans, finance leases, operating leases, and revolving charge accounts.

Wholesale financing to Caterpillar dealers consists primarily of inventory and rental fleet financing.

56 unchanged sentences

through retrocession agreements with other insurers.

The employee benefits coverages include medical and accident coverages.

which are reported under its Class 2 insurance license and life and disability coverages, which are reported under its Class B insurance license.

The employee benefits coverages include medical and accident coverages, which are reported under its Class 2 insurance license, and life and disability coverages, which are reported under its Class B insurance license.

The Bermuda Monetary Authority is responsible for monitoring compliance with solvency requirements and requires an Annual Financial Filing for this purpose.

34 unchanged sentences

The dollar amount of backlog believed to be firm was approximately $30.0 billion at December 31, 2024 and $27.5 billion at December 31, 2023.

Compared with year-end 2022, the order backlog decreased across the three primary segments.

Compared with year-end 2023, the order backlog increased in Energy & Transportation, while Construction Industries and Resource Industries decreased.

Of the total backlog at December 31, 2024, approximately $8.0 billion was not expected to be filled in 2025.

10 unchanged sentences

Nippon Caterpillar Division.

We are currently operating this Japanese dealer directly and we report its results in the All Other operating segment.

We are currently operating this Japanese dealer directly and we report its results in the All Other Segment.

There are also three independent dealers in the Southern Region of Japan.

1 unchanged sentence

Pursuant to these agreements, the company grants the dealer the right to purchase and sell its products and to service the products in a specified geographic service territory.

The company establishes prices to dealers after receiving input from dealers on transactional pricing in the marketplace.

The company establishes prices to dealers after

receiving input from dealers on transactional pricing in the marketplace.

The company also agrees to defend its intellectual property and to provide warranty and technical support to the dealer.

7 unchanged sentences

Integrity, Excellence, Teamwork, Commitment and Sustainability provide the foundation for our values-based culture.

Our diversity and inclusion principles are embedded in our values.

Our human capital management principles are embedded in our values.

Our values unite us, and reflect our diverse cultures, languages, geographies, and businesses, as one Caterpillar team.

Health and Safety

The health and safety of our employees is an important focus at Caterpillar, and we strive to continually reduce our recordable injuries utilizing programs that amplify our safety culture, globally.

The health and safety of our employees is an important focus at Caterpillar.

Our safety driven strategy is focused on preventing serious injuries and learning from those closest to the work.

In 2024, the Company achieved a recordable injury frequency rate of 0.43, compared to the 2023 recordable injury frequency rate of 0.40.

In addition, Caterpillar has refreshed our safety strategy to enhance our focus on preventing serious injuries and to encourage learning from those closest to the work.

Talent Development and Training

In addition to our focus on values and safety, we strive to continually attract, develop, engage, and retain a high-performing diverse global team that executes our enterprise strategy of long-term profitable growth.

We are committed to employee development and helping individuals reach their full potential, by making on-going investments in our team.

We strive to continually reduce our recordable injuries utilizing programs that amplify our safety culture globally.

Talent and Leadership Development

In addition to our focus on values and safety, we strive to continually attract, develop, engage, and retain a high-performing global team that executes our enterprise strategy of long-term profitable growth.

We are committed to fostering an inclusive environment and a workforce that is representative of the diverse customers and communities we serve around the globe.

Our Values In Action enable every individual to achieve their fullest potential and every team to help drive business success.

These principles guide us in our daily operating rhythm.

In addition, we make on-going investments in our team to develop employees and help individuals reach their full potential.

Our leadership development programs focus on encouraging a variety of experiences to help employees broaden understanding and increase perspective.

Our leadership curriculums include building resilient and high performing teams as core development principles.

Additionally, skill-based programs to upskill our manufacturing employees are developed locally and tailored to the specific needs of the business.

All employees have access to mentoring programs that connect participants with senior leaders and peers who can support their career goals and development.

Our global internships, engineering co-ops, and career programs for engineering, marketing, and manufacturing provide development opportunities for early career employees.

1 unchanged sentence

Strategic talent reviews and succession planning occur at a minimum, annually, across our businesses.

Our leadership development programs focus on encouraging a variety of experiences to help employees broaden understanding and increase perspective.

Our leadership curriculums include managing for inclusion and building resilient and high performing teams as core development principles.

Additionally, skill-based programs to upskill our manufacturing employees are developed locally and tailored to the specific needs of the business.

Diversity and Inclusion

We are committed to fostering a diverse workforce and an inclusive environment that is representative of the many customers and communities we serve around the globe.

Our strategic approach weaves diversity and inclusion seamlessly into the business, ensuring that the principles guide us in our daily operating rhythm.

Mentoring programs connect participants with senior leaders and peers who can support their career goals and development.

Our 14 Employee Resource Groups (ERGs), which are sponsored and supported by leadership, help ensure different voices and perspectives contribute to our strategy for long-term profitable growth.

They also engage our employees, helping contribute to development and retention.

Our ERGs provide many contributions, such as mentoring programs that connect diverse employees with senior leaders who can support their career goals, partnerships with recruiters and diverse early career and professional organizations that can assist in strengthening the diverse talent pipeline and programs that educate and inform on the richness of the global cultures that we share.

Our ERGs provide many contributions to help further our business strategy including partnerships with recruiters and early career and professional organizations that can assist in strengthening the talent pipeline and programs that educate and inform on the richness of the global cultures that we share.

Compensation, Benefits and Employee Insights

26 unchanged sentences

When it is probable we will pay remedial costs at a site, and those costs can be reasonably estimated, the investigation, remediation, and operating and maintenance costs of the remedial action are accrued against our earnings.

Costs are accrued

based on consideration of currently available data and information with respect to each individual site, including available technologies, current applicable laws and regulations, and prior remediation experience.

Costs are accrued based on consideration of currently available data and information with respect to each individual site, including available technologies, current applicable laws and regulations, and prior remediation experience.

Where no amount within a range of estimates is more likely, we accrue the minimum.

Where multiple potentially responsible parties are involved, we consider our proportionate share of the probable costs.

In formulating the estimate of probable costs, we do not consider amounts expected to be recovered from insurance companies or others.

In formulating the estimate of probable costs, we do not consider amounts expected

to be recovered from insurance companies or others.

We reassess these accrued amounts on a quarterly basis.

17 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business