What changed in this filing

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Item 1. Financial Statements

2025-05-07 compared with 2024-11-06 · 174 added, 348 removed, 1094 unchanged (32% of the section changed)

3 unchanged sentences

(Dollars in millions except per share data)

Three Months Ended September 30,

Sales and revenues:

Sales of Machinery, Energy & Transportation $ 15,231 $ 15,988

Revenues of Financial Products 875 822

Total sales and revenues 16,106 16,810

Operating costs:

Cost of goods sold 10,066 10,583

Selling, general and administrative expenses 1,669 1,624

Research and development expenses 533 554

Interest expense of Financial Products 336 280

Other operating (income) expenses 355 320

Total operating costs 12,959 13,361

Operating profit 3,147 3,449

Interest expense excluding Financial Products 125 129

Other income (expense) 76 195

Consolidated profit before taxes 3,098 3,515

Provision (benefit) for income taxes 642 734

Profit of consolidated companies 2,456 2,781

Equity in profit (loss) of unconsolidated affiliated companies 7 12

Profit of consolidated and affiliated companies 2,463 2,793

Profit (loss) attributable to noncontrolling interests ( 1 ) ( 1 )

$ 2,464 $ 2,794

Profit per common share $ 5.09 $ 5.48

Profit per common share – diluted 2

$ 5.06 $ 5.45

Weighted-average common shares outstanding (millions)

– Basic 484.2 509.8

1 Profit attributable to common shareholders.

2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

See accompanying notes to Consolidated Financial Statements.

Caterpillar Inc .

Consolidated Statement of Comprehensive Income

(Dollars in millions)

Three Months Ended September 30,

Profit of consolidated and affiliated companies $ 2,463 $ 2,793

Other comprehensive income (loss), net of tax (Note 13):

Foreign currency translation:

Pension and other postretirement benefits:

Derivative financial instruments:

Available-for-sale securities:

Total other comprehensive income (loss), net of tax 513 ( 286 )

Comprehensive income 2,976 2,507

comprehensive income (loss) attributable to the noncontrolling interests ( 1 ) ( 1 )

Comprehensive income attributable to shareholders $ 2,977 $ 2,508

See accompanying notes to Consolidated Financial Statements.

Caterpillar Inc.

Consolidated Statement of Results of Operations

(Dollars in millions except per share data)

Nine Months Ended September 30,

Three Months Ended March 31,

Sales and revenues:

30 unchanged sentences

(Dollars in millions)

Nine Months Ended September 30,

Three Months Ended March 31,

Profit of consolidated and affiliated companies $ 2,003 $ 2,854

12 unchanged sentences

(Dollars in millions)

September 30,

2025 December 31,

58 unchanged sentences

interests Total

Three Months Ended September 30, 2023

Balance at June 30, 2023 $ 6,478 $ ( 33,391 ) $ 47,094 $ ( 1,946 ) $ 21 $ 18,256

Profit (loss) of consolidated and affiliated companies — — 2,794 — ( 1 ) 2,793

Foreign currency translation, net of tax — — — ( 205 ) — ( 205 )

Pension and other postretirement benefits, net of tax — — — ( 3 ) — ( 3 )

Derivative financial instruments, net of tax — — — ( 62 ) — ( 62 )

Available-for-sale securities, net of tax — — — ( 16 ) — ( 16 )

Common shares issued from treasury stock for stock-based compensation:

— 59 — — — 59

Stock-based compensation expense 60 — — — — 60

Common shares repurchased:

— ( 530 ) — — — ( 530 )

Outstanding authorized accelerated share repurchase 150 — — — — 150

Other 10 ( 3 ) — — ( 2 ) 5

Balance at September 30, 2023 $ 6,698 $ ( 33,865 ) $ 49,888 $ ( 2,232 ) $ 18 $ 20,507

Three Months Ended September 30, 2024

Balance at June 30, 2024 $ 5,517 $ ( 41,612 ) $ 55,455 $ ( 2,230 ) $ 6 $ 17,136

Profit (loss) of consolidated and affiliated companies — — 2,464 — ( 1 ) 2,463

Foreign currency translation, net of tax — — — 397 — 397

Pension and other postretirement benefits, net of tax — — — ( 3 ) — ( 3 )

Derivative financial instruments, net of tax — — — 58 — 58

Available-for-sale securities, net of tax — — — 61 — 61

Dividends declared — — 1 — — 1

Common shares issued from treasury stock for stock-based compensation:

( 4 ) 10 — — — 6

Stock-based compensation expense 52 — — — — 52

Common shares repurchased:

— ( 782 ) — — — ( 782 )

Other 19 ( 6 ) — — 1 14

Balance at September 30, 2024 $ 5,584 $ ( 42,390 ) $ 57,920 $ ( 1,717 ) $ 6 $ 19,403

1 See Note 12 for additional information.

See accompanying notes to Consolidated Financial Statements.

Caterpillar Inc.

Consolidated Statement of Changes in Shareholders’ Equity

(Dollars in millions)

stock Treasury

business Accumulated

comprehensive

income (loss) Noncontrolling

interests Total

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Balance at December 31, 2023 $ 6,403 $ ( 36,339 ) $ 51,250 $ ( 1,820 ) $ 9 $ 19,503

2 unchanged sentences

Pension and other postretirement benefits, net of tax — — — ( 3 ) — ( 3 )

Derivative financial instruments, net of tax — — — ( 19 ) — ( 19 )

Available-for-sale securities, net of tax — — — ( 13 ) — ( 13 )

Dividends declared — — 2 — — 2

— — ( 1,285 ) — — ( 1,285 )

Common shares issued from treasury stock for stock-based compensation:

3 unchanged sentences

— ( 3,705 ) — — — ( 3,705 )

Outstanding authorized accelerated share repurchases ( 750 ) — — — — ( 750 )

Other 11 ( 32 ) — — ( 1 ) ( 22 )

Balance at September 30, 2023 $ 6,698 $ ( 33,865 ) $ 49,888 $ ( 2,232 ) $ 18 $ 20,507

Nine Months Ended September 30, 2024

Balance at March 31, 2024 $ 5,663 $ ( 40,039 ) $ 54,108 $ ( 2,093 ) $ 6 $ 17,645

Three Months Ended March 31, 2025

Balance at December 31, 2024 $ 6,941 $ ( 44,331 ) $ 59,352 $ ( 2,471 ) $ 3 $ 19,494

5 unchanged sentences

Dividends declared — — 1 — — 1

— — ( 1,331 ) — — ( 1,331 )

Common shares issued from treasury stock for stock-based compensation:

5 unchanged sentences

Other 10 ( 25 ) — — — ( 15 )

Balance at September 30, 2024 $ 5,584 $ ( 42,390 ) $ 57,920 $ ( 1,717 ) $ 6 $ 19,403

1 Dividends per share of common stock of $ 2.71 and $ 2.50 were declared in the nine months ended September 30, 2024 and 2023, respectively.

Balance at March 31, 2025 $ 6,043 $ ( 47,127 ) $ 61,356 $ ( 2,205 ) $ 3 $ 18,070

1 See Note 12 for additional information.

3 unchanged sentences

(Dollars in Millions)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash flow from operating activities:

55 unchanged sentences

Basis of presentation

In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated results of operations for the three and nine months ended September 30, 2024 and 2023, (b) the consolidated comprehensive income for the three and nine months ended September 30, 2024 and 2023, (c) the consolidated financial position at September 30, 2024 and December 31, 2023, (d) the consolidated changes in shareholders’ equity for the three and nine months ended September 30, 2024 and 2023 and (e) the consolidated cash flow for the nine months ended September 30, 2024 and 2023.

In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated results of operations for the three months ended March 31, 2025 and 2024, (b) the consolidated comprehensive income for the three months ended March 31, 2025 and 2024, (c) the consolidated financial position at March 31, 2025 and December 31, 2024, (d) the consolidated changes in shareholders’ equity for the three months ended March 31, 2025 and 2024 and (e) the consolidated cash flow for the three months ended March 31, 2025 and 2024.

The financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (U.S.

3 unchanged sentences

The December 31, 2024 financial position data included herein is derived from the audited consolidated financial statements included in the 2024 Form 10-K but does not include all disclosures required by U.S.

Certain amounts for prior periods have been reclassified to conform to the current period financial statement presentation.

Cat Financial has end-user customers and dealers that are variable interest entities (VIEs) of which we are not the primary beneficiary.

5 unchanged sentences

We consider the applicability and impact of all ASUs.

We adopted the following ASUs effective January 1, 2024, none of which had a material impact on our financial statements:

ASU Description

2022-03 Fair value measurement – Equity securities subject to contractual sale restrictions

2023-01 Leases – Common control arrangements

2023-02 Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method

We determined that the ASUs effective January 1, 2025 were either not applicable or did not have a material impact on our financial statements.

Accounting standards issued but not yet adopted

Segment reporting (ASU 2023-07) — In November 2023, the Financial Accounting Standards Board (FASB) issued accounting guidance that requires incremental disclosures related to reportable segments which includes significant

segment expense categories and amounts for each reportable segment.

The expanded annual disclosures are effective for our year ending December 31, 2024, and the expanded interim disclosures are effective in 2025 and will be applied retrospectively to all prior periods presented.

Income tax reporting (ASU 2023-09) — In December 2023, the FASB issued accounting guidance to expand the annual disclosure requirements for income taxes, primarily related to the rate reconciliation and income taxes paid.

This guidance is effective January 1, 2025, with early adoption permitted.

This guidance can be applied prospectively or retrospectively.

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 are effective for our year ending December 31, 2025, and can be applied prospectively or retrospectively.

We are in the process of evaluating the effect of this new guidance on the related disclosures.

Disaggregation of income statement expenses (ASU 2024-03) — In November 2024, the FASB issued accounting guidance to enhance transparency into the nature and function of income statement expenses.

The amendments require that on an annual and interim basis, entities disclose disaggregated operating expense information about specific categories, including purchases of inventory, employee compensation, depreciation and amortization.

annual disclosures are effective for our year ending December 31, 2027, and the expanded interim disclosures are effective in 2028, with early adoption permitted.

We are in the process of evaluating the effect of this new guidance on the related disclosures

All other ASUs issued but not yet adopted were assessed and determined that they either were not applicable or were not expected to have a material impact on our financial statements.

2 unchanged sentences

We recognize trade receivables from dealers and end users in Receivables – trade and other and Long-term receivables – trade and other in the Consolidated Statement of Financial Position.

Trade receivables from dealers and end users were $ 7,798 million, $ 7,923 million and $ 7,551 million as of September 30, 2024, December 31, 2023 and December 31, 2022, respectively.

Long-term trade receivables from dealers and end users were $ 635 million, $ 589 million and $ 506 million as of September 30, 2024, December 31, 2023 and December 31, 2022, respectively.

Trade receivables from dealers and end users were $ 7,819 million, $ 7,864 million and $ 7,923 million as of March 31, 2025, December 31, 2024 and December 31, 2023, respectively.

Long-term trade receivables from dealers and end users were $ 638 million, $ 640 million and $ 589 million as of March 31, 2025, December 31, 2024 and December 31, 2023, respectively.

For certain contracts, we invoice for payment when contractual milestones are achieved.

2 unchanged sentences

Contract assets are included in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position.

Contract assets were $ 218 million, $ 246 million and $ 247 million as of September 30, 2024, December 31, 2023 and December 31, 2022, respectively.

Contract assets were $ 245 million, $ 238 million and $ 246 million as of March 31, 2025, December 31, 2024 and December 31, 2023, respectively.

We invoice in advance of recognizing the sale of certain products.

We recognize advanced customer payments as a contract liability in Customer advances and Other liabilities in the Consolidated Statement of Financial Position.

Contract liabilities were $ 2,868 million, $ 2,389 million and $ 2,314 million as of September 30, 2024, December 31, 2023 and December 31, 2022, respectively.

Contract liabilities were $ 3,462 million, $ 2,745 million and $ 2,389 million as of March 31, 2025, December 31, 2024 and December 31, 2023, respectively.

We reduce the contract liability when revenue is recognized.

During the three and nine months ended September 30, 2024, we recognized $ 222 million and $ 1,395 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2024.

During the three and nine months ended September 30, 2023, we recognized $ 197 million and $ 1,333 million, respectively.

As of September 30, 2024, we have entered into contracts with dealers and end users for which sales have not been recognized as we have not satisfied our performance obligations and transferred control of the products.

The dollar amount of unsatisfied performance obligations for contracts with an original duration greater than one year is $ 14.1 billion, with about one-half of the amount expected to be completed and revenue recognized in the twelve months following September 30, 2024.

During the three months ended March 31, 2025 and 2024, we recognized $ 683 million and $ 813 million, respectively, of revenue that was recorded as a contract liability at the beginning of 2025 and 2024.

As of March 31, 2025, we have entered into contracts with dealers and end users for which sales have not been recognized as we have not satisfied our performance obligations and transferred control of the products.

The dollar amount of unsatisfied performance obligations for contracts with an original duration greater than one year is $ 17.6 billion, with about one-half of the amount expected to be completed and revenue recognized in the twelve months following March 31, 2025.

We have elected the practical expedient not to disclose unsatisfied performance obligations with an original contract duration of one year or less.

4 unchanged sentences

Our stock-based compensation consists of stock options, restricted stock units (RSUs) and performance-based restricted stock units (PRSUs).

We recognized pretax stock-based compensation expense of $ 52 million and $ 171 million for the three and nine months ended September 30, 2024, respectively, and $ 60 million and $ 178 million for the three and nine months ended September 30, 2023, respectively.

The following table illustrates the type and fair value of the stock-based compensation awards granted during the nine months ended September 30, 2024 and 2023, respectively:

Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023

We recognized pretax stock-based compensation expense of $ 45 million and $ 44 million for the three months ended March 31, 2025 and 2024, respectively.

The following table illustrates the type and fair value of the stock-based compensation awards granted during the three months ended March 31, 2025 and 2024, respectively:

Three Months Ended March 31, 2025 Three Months Ended March 31, 2024

Shares Granted Weighted-Average Fair Value Per Share Weighted-Average Grant Date Stock Price Shares Granted Weighted-Average Fair Value Per Share Weighted-Average Grant Date Stock Price

3 unchanged sentences

The fair value of our stock options was estimated using the Black-Scholes option-pricing model.

The following table provides the assumptions used in determining the fair value of the stock-options granted in the nine months ended September 30, 2024 and 2023, respectively:

The following table provides the assumptions used in determining the fair value of the stock-options granted in the three months ended March 31, 2025 and 2024, respectively:

Weighted-average dividend yield 2.13 % 2.40 %

5 unchanged sentences

Weighted-average expected lives 7 years 7 years

The PRSUs granted in 2024 contain a market condition and a Monte Carlo simulation was utilized to estimate the fair value of the awards.

The following table provides the assumptions used in determining the fair value of the PRSUs granted in the nine months ended September 30, 2024:

The PRSUs granted in 2025 and 2024 contain a market condition and a Monte Carlo simulation was utilized to estimate the fair value of the awards.

The following table provides the assumptions used in determining the fair value of the PRSUs granted in the three months ended March 31, 2025 and 2024, respectively:

Expected volatility of the Company's stock 29.5 % 29.8 %

Risk-free interest rate 3.90 % 4.38 %

As of September 30, 2024, the total remaining unrecognized compensation expense related to nonvested stock-based compensation awards was $ 173 million, which will be amortized over the weighted-average remaining requisite service periods of approximately 1.9 years.

As of March 31, 2025, the total remaining unrecognized compensation expense related to nonvested stock-based compensation awards was $ 324 million, which will be amortized over the weighted-average remaining requisite service periods of approximately 1.9 years.

Derivative financial instruments and risk management

8 unchanged sentences

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 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, on the Consolidated Statement of Financial Position until we reclassify them to earnings in the same period or periods during which the hedged transaction affects earnings.

17 unchanged sentences

Our policy allows for managing anticipated foreign currency cash flow for up to approximately five years .

As of September 30, 2024, the maximum term of these outstanding contracts at inception was approximately 60 months.

As of March 31, 2025, the maximum term of these outstanding contracts at inception was approximately 60 months.

We generally designate as cash flow hedges at inception of the contract any foreign currency forward or option contracts that meet the requirements for hedge accounting and the maturity extends beyond the current quarter-end.

5 unchanged sentences

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

12 unchanged sentences

We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate contracts at both ME&T and Financial Products.

We amortize the gains or losses associated with these contracts at the time of liquidation into earnings over the original term of the previously designated hedged item.

We amortize the gains or losses associated with these contracts at the time of liquidation into earnings over the remaining term of the previously designated hedged item.

Commodity price risk

13 unchanged sentences

(Millions of dollars) Fair Value

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Liabilities 2

11 unchanged sentences

2 Liabilities are classified as Accrued expenses or Other liabilities.

The total notional amounts of the derivative instruments as of September 30, 2024 and December 31, 2023 were $ 26.1 billion and $ 25.6 billion, respectively.

The total notional amounts of the derivative instruments as of March 31, 2025 and December 31, 2024 were $ 26.0 billion and $ 27.0 billion, respectively.

The notional amounts of the derivative financial instruments do not represent amounts exchanged by the parties.

1 unchanged sentence

Gains (Losses) on derivative instruments are categorized as follows:

(Millions of dollars) Three Months Ended September 30,

Fair Value / Undesignated Hedges Cash Flow Hedges

(Millions of dollars) Three Months Ended March 31,

Gains (Losses) Recognized on the Consolidated Statement of Results of Operations 1

1 unchanged sentence

2025 2024 2025 2024 2025 2024

Cash Flow Hedges

Foreign exchange contracts $ — $ — $ 78 $ 95 $ — $ 91

Interest rate contracts — — ( 2 ) 11 1 15

Commodity contracts 1 14 — — — —

Total return swap contracts 40 — — — — —

Total $ ( 35 ) $ ( 1 ) $ 17 $ 13 $ ( 61 ) $ 94

1 Foreign exchange contract, Commodity contract and Total return swap contract gains (losses) are included in Other income (expense).

Interest rate contract gains (losses) are included in Interest expense of Financial Products and Interest expense excluding Financial Products.

2 Foreign exchange contract gains (losses) are primarily included in Other income (expense).

Interest rate contract gains (losses) are primarily included in Interest expense of Financial Products.

(Millions of dollars) Nine Months Ended September 30,

Fair Value / Undesignated Hedges Cash Flow Hedges

Gains (Losses) Recognized on the Consolidated Statement of Results of Operations 1

Gains (Losses) Recognized in AOCI Gains (Losses) Reclassified from AOCI 2

2024 2023 2024 2023 2024 2023

Foreign exchange contracts $ 58 $ 22 $ 108 $ 42 $ 77 $ 43

Fair Value Hedges

Interest rate contracts ( 18 ) ( 36 ) — — — —

Undesignated Hedges

Foreign exchange contracts ( 14 ) 29 — — — —

Commodity contracts 8 ( 10 ) — — — —

3 unchanged sentences

Interest rate contract gains (losses) are included in Interest expense of Financial Products and Interest expense excluding Financial Products.

2 Foreign exchange contract gains (losses) are primarily included in Other income (expense).

2 Foreign exchange contract gains (losses) are primarily included in Cost of goods sold, Sales of Machinery, Energy and Transportation, and Other income (expense).

Interest rate contract gains (losses) are primarily included in Interest expense of Financial Products.

1 unchanged sentence

(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

September 30, 2024 December 31, 2023 September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024 March 31, 2025 December 31, 2024

Long-term debt due within one year $ 488 $ 483 $ ( 12 ) $ ( 16 )

4 unchanged sentences

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.

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.

Collateral is typically not required of the counterparties or of our company under the master netting agreements.

As of September 30, 2024 and December 31, 2023, no cash collateral was received or pledged under the master netting agreements.

As of March 31, 2025 and December 31, 2024, no cash collateral was received or pledged under the master netting agreements.

The effect of the net settlement provisions of the master netting agreements on our derivative balances upon an event of default or termination event was as follows:

(Millions of dollars) September 30, 2024 December 31, 2023

(Millions of dollars) March 31, 2025 December 31, 2024

Assets Liabilities Assets Liabilities

3 unchanged sentences

Inventories (principally using the last-in, first-out (LIFO) method) were comprised of the following:

(Millions of dollars) September 30,

(Millions of dollars) March 31,

2025 December 31,

7 unchanged sentences

Intangible assets were comprised of the following:

September 30, 2024

March 31, 2025

(Millions of dollars) Gross

12 unchanged sentences

Total finite-lived intangible assets $ 2,833 $ ( 2,434 ) $ 399

Amortization expense for the three and nine months ended September 30, 2024 was $ 44 million and $ 131 million, respectively.

Amortization expense for the three and nine months ended September 30, 2023 was $ 44 million and $ 174 million, respectively.

Amortization expense for the three months ended March 31, 2025 and 2024 was $ 44 million and $ 44 million, respectively.

Amortization expense related to intangible assets is expected to be:

(Millions of dollars)

Remaining Three Months of 2024 2025 2026 2027 2028 Thereafter

Remaining Nine Months of 2025 2026 2027 2028 2029 Thereafter

$ 123 $ 97 $ 34 $ 27 $ 24 $ 56

No goodwill was impaired during the nine months ended September 30, 2024 or 2023.

The changes in carrying amount of goodwill by reportable segment for the nine months ended September 30, 2024 were as follows:

No goodwill was impaired during the three months ended March 31, 2025 or 2024.

The changes in carrying amount of goodwill by reportable segment for the three months ended March 31, 2025 were as follows:

(Millions of dollars) December 31,

2024 Other Adjustments 1

September 30,

Construction Industries

19 unchanged sentences

We have investments in certain debt and equity securities, which we record at fair value and primarily include in Other assets in the Consolidated Statement of Financial Position.

Short-term and long-term investments are held with high quality institutions and, by policy, the amount of credit exposure to any one institution is limited.

We classify debt securities primarily as available-for-sale.

4 unchanged sentences

Available-for-sale debt securities

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(Millions of dollars) Cost

13 unchanged sentences

Available-for-sale debt securities in an unrealized loss position:

September 30, 2024

March 31, 2025

Less than 12 months 1

26 unchanged sentences

We do not intend to sell the investments, and it is not likely that we will be required to sell the investments before recovery of their respective amortized cost basis.

In addition, we did not expect credit-related losses on these investments as of September 30, 2024.

The cost basis and fair value of available-for-sale debt securities at September 30, 2024, by contractual maturity, are shown below.

In addition, we did not expect credit-related losses on these investments as of March 31, 2025.

The cost basis and fair value of available-for-sale debt securities at March 31, 2025, by contractual maturity, are shown below.

Expected maturities will differ from contractual maturities because borrowers may have the right to prepay and creditors may have the right to call obligations.

September 30, 2024

March 31, 2025

(Millions of dollars) Cost Basis Fair Value

7 unchanged sentences

Total debt securities – available-for-sale $ 3,360 $ 3,316

Sales of available-for-sale debt securities:

Three Months Ended September 30, Nine Months Ended September 30,

(Millions of dollars) 2024 2023 2024 2023

Proceeds from the sale of available-for-sale securities $ 257 $ 271 $ 917 $ 710

Gross gains from the sale of available-for-sale securities $ — $ — $ — $ —

Gross losses from the sale of available-for-sale securities $ — $ 1 $ 2 $ 1

In addition, we had $ 1,900 million of investments in time deposits classified as held-to-maturity debt securities as of December 31, 2023.

We did not have any investments classified as held-to-maturity debt securities as of September 30, 2024.

These investments matured within one year and were included in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position.

We record held-to-maturity debt securities at amortized cost, which approximates fair value.

For the three months ended September 30, 2024 and 2023, the net unrealized gains (losses) for equity securities held at September 30, 2024 and 2023 were $ 18 million and $( 11 ) million, respectively.

For the nine months ended September 30, 2024 and 2023, the net unrealized gains (losses) for equity securities held at September 30, 2024 and 2023 were $ 32 million and $( 25 ) million, respectively.

For the three months ended March 31, 2025 and 2024, proceeds from available-for-sale debt securities were $ 911 million and $ 361 million, respectively.

For the three months ended March 31, 2025 and 2024, the net unrealized gains (losses) for equity securities held at March 31, 2025 and 2024 were $ 3 million and $ 17 million, respectively.

Postretirement benefits

1 unchanged sentence

Postretirement

September 30, September 30, September 30,

March 31, March 31, March 31,

(Millions of dollars) 2025 2024 2025 2024 2025 2024

7 unchanged sentences

$ ( 27 ) $ ( 19 ) $ ( 1 ) $ ( 1 ) $ 44 $ 45

For the nine months ended:

Components of net periodic benefit cost:

Service cost $ — $ — $ 34 $ 30 $ 50 $ 50

Interest cost 469 492 91 91 99 108

Expected return on plan assets ( 524 ) ( 517 ) ( 127 ) ( 120 ) ( 6 ) ( 8 )

Amortization of prior service cost (credit) — — — — ( 10 ) ( 9 )

Net periodic benefit cost (benefit) 1

$ ( 55 ) $ ( 25 ) $ ( 2 ) $ 1 $ 133 $ 141

1 The service cost component is included in Operating costs.

All other components are included in Other income (expense).

We made $ 49 million and $ 221 million of contributions to our pension and other postretirement plans during the three and nine months ended September 30, 2024, respectively.

We made $ 211 million of contributions to our pension and other postretirement plans during the three months ended March 31, 2025.

We currently anticipate full-year 2025 contributions of approximately $ 354 million.

1 unchanged sentence

Total company costs related to our defined contribution plans, which are included in Operating costs in the Consolidated Statement of Results of Operations, were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(Millions of dollars) 2025 2024

$ 168 $ 120 $ 506 $ 405

Plans 32 27 94 85

$ 200 $ 147 $ 600 $ 490

1 Includes costs related to our non-qualified deferred compensation plans.

2 unchanged sentences

Revenues from finance and operating leases, primarily included in Revenues of Financial Products on the Consolidated Statement of Results of Operations, were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(Millions of dollars) 2025 2024

6 unchanged sentences

Under the guarantees, non-performance by the third-parties could require Caterpillar to satisfy the contractual obligation by providing goods, services or financial compensation.

The maximum potential amount of future payments (undiscounted and without reduction for any amounts possibly recoverable) that we could be required to make under the guarantees was $ 406 million and $ 353 million at September 30, 2024 and December 31, 2023, respectively.

The maximum potential amount of future payments (undiscounted and without reduction for any amounts possibly recoverable) that we could be required to make under the guarantees was $ 390 million and $ 368 million at March 31, 2025 and December 31, 2024, respectively.

We have dealer performance guarantees and third-party performance guarantees that do not limit potential payment to end users related to indemnities and other commercial contractual obligations.

7 unchanged sentences

Cat Financial is the primary beneficiary of the SPC as its guarantees result in Cat Financial 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 Cat Financial has consolidated the financial statements of the SPC.

As of September 30, 2024 and December 31, 2023, the SPC’s assets of $ 1.31 billion and $ 1.35 billion, respectively, were primarily comprised of loans to dealers, and the SPC’s liabilities of $ 1.31 billion and $ 1.35 billion, respectively, were primarily comprised of commercial paper.

The assets of the SPC are not available to pay Cat

Financial’s creditors.

As of March 31, 2025 and December 31, 2024, the SPC’s assets of $ 1.01 billion and $ 1.14 billion, respectively, were primarily comprised of loans to dealers, and the SPC’s liabilities of $ 1.01 billion and $ 1.14 billion, respectively, were primarily comprised of commercial paper.

The assets of the SPC are not available to pay Cat Financial’s creditors.

Cat Financial may be obligated to perform under the guarantee if the SPC experiences losses.

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We develop specific rates for each product shipment month and update them monthly based on actual warranty claim experience.

The reconciliation of the change in our product warranty liability balances for the nine months ended September 30 was as follows:

Nine Months Ended September 30,

The reconciliation of the change in our product warranty liability balances for the three months ended March 31 was as follows:

Three Months Ended March 31,

(Millions of dollars) 2025 2024

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Computations of profit per share:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(Dollars in millions except per share data) 2025 2024

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Average common shares outstanding for fully diluted computation (C) 2

486.7 512.6 491.7 515.7

Profit per share of common stock:

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$ 4.20 $ 5.75

Shares outstanding as of September 30, (in millions) 482.8 509.1

Shares outstanding as of March 31, (in millions) 471.0 489.3

1 Profit attributable to common shareholders.

2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

For the three and nine months ended September 30, 2024, we excluded 0.3 million and 0.2 million of outstanding stock options, respectively, from the computation of diluted earnings per share because the effect would have been antidilutive.

For the three and nine months ended September 30, 2023, we excluded 0.8 million and 2.1 million of outstanding stock options, respectively, from the computation of diluted earnings per share because the effect would have been antidilutive.

For the three and nine months ended September 30, 2024, we repurchased 2.3 million and 18.2 million shares of Caterpillar common stock, respectively, at an aggregate cost of $ 0.8 billion and $ 6.1 billion, respectively.

For the three and nine months ended September 30, 2023, we repurchased 1.9 million and 9.5 million shares of Caterpillar common stock, respectively, at an aggregate cost of $ 0.5 billion and $ 2.2 billion, respectively.

For both the three months ended March 31, 2025 and 2024, we excluded 0.3 million of outstanding stock options, respectively, from the computation of diluted earnings per share because the effect would have been antidilutive.

For the three months ended March 31, 2025 and 2024, we repurchased 7.5 million and 11.3 million shares of Caterpillar common stock, respectively, at an aggregate cost of $ 2.8 billion and $ 3.7 billion, respectively.

We made these purchases through the combination of accelerated share repurchase (ASR) agreements with third-party financial institutions and open market transactions in 2025 and 2024.

In the first quarter of 2025, we entered into ASR agreements to repurchase an aggregate of $ 3.0 billion of common stock.

We advanced the $ 3.50 billion and received approximately 7.6 million shares of Caterpillar common stock with a value of $ 2.45 billion.

In the second quarter of 2024, we entered into ASR agreements to repurchase an aggregate of $ 1.00 billion of common stock.

We advanced the $ 1.00 billion and received approximately 2.2 million shares of Caterpillar common stock with a value of $ 750 million.

These ASR agreements will last into the fourth quarter of 2024.

The final number of shares to ultimately be purchased will be based on the average of the daily volume-weighted average prices of our common stock during the term of the ASR agreements, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR agreements.

We advanced the $ 3.0 billion and received approximately 5.7 million shares of Caterpillar common stock, approximately 70 % of the estimated final number of shares to be repurchased, with a value of $ 2.1 billion.

The final number of shares to ultimately be repurchased will be based on the average of the daily volume-weighted average prices of our common stock during the term of the ASR agreements, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR agreements.

The final settlement of the ASR agreements is scheduled to occur during the fourth quarter of 2025.

The remaining $ 0.9 billion was evaluated as unsettled forward contracts and was classified as a reduction to Common stock within the Consolidated Statement of Financial Position.

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Changes in the balances for each component of AOCI were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(Millions of dollars) 2025 2024

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Ending balance $ ( 32 ) $ ( 69 )

Total AOCI Ending Balance at September 30,

Total AOCI Ending Balance at March 31,

$ ( 2,205 ) $ ( 2,093 )

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however, we currently believe that any matters raised will not have a material adverse effect on the Company’s consolidated results of operations, financial position or liquidity.

The effective tax rate for the three months ended September 30, 2024 was 20.7 percent compared to 20.9 percent for the three months ended September 30, 2023.

The effective tax rate for the nine months ended September 30, 2024 was 21.4 percent compared to 22.4 percent for the nine months ended September 30, 2023.

The effective tax rate for the three months ended March 31, 2025 was 22.3 percent compared to 19.5 percent for the three months ended March 31, 2024.

The effective tax rate for the three months ended March 31, 2024 was favorably impacted by nontaxable gains from a divestiture of a non-US mining entity.

Segment information

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The CEO allocates resources and manages performance at the COO/Group President/CFO level.

As such, the CEO serves as our Chief Operating Decision Maker, and operating segments are primarily based on the COO/Group President/CFO reporting structure.

As such, the CEO serves as our Chief Operating Decision Maker (CODM), and operating segments are primarily based on the COO/Group President/CFO reporting structure.

Three of our operating segments, Construction Industries, Resource Industries and Energy & Transportation are led by Group Presidents.

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electrified powertrain and zero-emission power sources and service solutions development;

and diesel-electric locomotives and components and other rail-related products and services, including remanufacturing and leasing.

and diesel-electric and hybrid locomotives and components and other rail-related products and services, including remanufacturing and leasing.

Responsibilities also include the remanufacturing of Caterpillar reciprocating engines and components and remanufacturing services for other companies.

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The various forms of financing, insurance and risk management products offered to customers and dealers help support the purchase and lease of Caterpillar equipment.

The segment also earns revenues from ME&T, but the related costs are not allocated to operating segments.

The segment also earns revenues from Machinery, Energy & Transportation, but the related costs are not allocated to operating segments.

Financial Products’ segment profit is determined on a pretax basis and includes other income/expense items.

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Segment measurement and reconciliations

We determine the segment profit of Construction Industries, Resource Industries, Energy & Transportation and our All Other Segment on a pretax basis and exclude most interest expense and certain other income (expense) items.

We determine Financial Products Segment profit on a pretax basis and include other income (expense) items.

Our CODM evaluates the operating performance of the segments using segment profit as it provides insight into the financial health of each segment.

The CODM reviews this metric regularly to compare the profitability of segments, identify trends, and evaluate which segments require additional resources or strategic adjustments.

The CODM uses segment profit to support the allocation of resources predominantly in the annual budget and forecasting process.

Additionally, the CODM monitors forecast-to-actual variances, focusing on areas where performance deviates from expectations, when evaluating the performance of each segment and making decisions about allocating capital and other resources to each segment.

There are several methodology differences between our segment reporting and our external reporting.

The following is a list of the more significant methodology differences:

• ME&T segment net assets generally include inventories, receivables, property, plant and equipment, goodwill, intangibles, accounts payable and customer advances.

• For Construction Industries, Resource Industries, Energy & Transportation and our All Other Segment net assets generally include inventories, receivables, property, plant and equipment, goodwill, intangibles, accounts payable and customer advances.

We generally manage at the corporate level liabilities other than accounts payable and customer advances, and we do not include these in segment operations.

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In addition, we have allocated to segments only a portion of goodwill for certain acquisitions made in 2011 or later.

• We generally manage currency exposures for ME&T at the corporate level and do not include in segment profit the effects of changes in exchange rates on results of operations within the year.

• We generally manage currency exposures for operating segments, other than Financial Products, at the corporate level and do not include in segment profit or segment assets the effects of changes in exchange rates on results of operations and financial position within the year.

We report the net difference created in the translation of revenues and costs between exchange rates used for U.S.

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segments are generally responsible for service costs, with the remaining elements of net periodic benefit cost included as a methodology difference.

• We determine ME&T segment profit on a pretax basis and exclude interest expense and most other income/expense items.

We determine Financial Products Segment profit on a pretax basis and include other income/expense items.

Reconciling items are created based on accounting differences between segment reporting and our consolidated external reporting.

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For example, we report certain costs on the cash basis for segment reporting and the accrual basis for consolidated external reporting.

For the three and nine months ended September 30, 2024 and 2023, sales and revenues by geographic region reconciled to consolidated sales and revenues were as follows:

Sales and Revenues by Geographic Region

(Millions of dollars) North

External Sales and Revenues Intersegment Sales and Revenues Total Sales and Revenues

Three Months Ended September 30, 2024

Construction Industries $ 3,629 $ 658 $ 1,150 $ 875 $ 6,312 $ 33 $ 6,345

Resource Industries 1,131 498 442 863 2,934 94 3,028

Energy & Transportation 3,214 449 1,486 856 6,005 1,182 7,187

Financial Products Segment 695 97 130 112 1,034 1

Total sales and revenues from reportable segments 8,669 1,702 3,208 2,706 16,285 1,309 17,594

All Other Segment 12 — 3 14 29 63 92

Corporate Items and Eliminations ( 136 ) ( 24 ) ( 12 ) ( 36 ) ( 208 ) ( 1,372 ) ( 1,580 )

Total Sales and Revenues $ 8,545 $ 1,678 $ 3,199 $ 2,684 $ 16,106 $ — $ 16,106

Three Months Ended September 30, 2023

Construction Industries $ 4,078 $ 555 $ 1,351 $ 997 $ 6,981 $ 18 $ 6,999

Resource Industries 1,366 499 508 886 3,259 92 3,351

Energy & Transportation 2,966 460 1,428 901 5,755 1,104 6,859

Financial Products Segment 627 110 132 110 979 1

Total sales and revenues from reportable segments 9,037 1,624 3,419 2,894 16,974 1,214 18,188

All Other Segment 16 ( 1 ) 5 10 30 76 106

Corporate Items and Eliminations ( 126 ) ( 20 ) ( 22 ) ( 26 ) ( 194 ) ( 1,290 ) ( 1,484 )

Total Sales and Revenues $ 8,927 $ 1,603 $ 3,402 $ 2,878 $ 16,810 $ — $ 16,810

1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other Segment of $ 190 million and $ 181 million in the three months ended September 30, 2024 and 2023, respectively.

For the three months ended March 31, 2025 and 2024, sales and revenues by geographic region reconciled to consolidated sales and revenues were as follows:

Sales and Revenues by Geographic Region

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External Sales and Revenues Intersegment Sales and Revenues Total Sales and Revenues

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Construction Industries $ 2,904 $ 504 $ 867 $ 869 $ 5,144 $ 40 $ 5,184

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Total Sales and Revenues $ 7,738 $ 1,515 $ 2,506 $ 2,490 $ 14,249 $ — $ 14,249

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Construction Industries $ 3,833 $ 595 $ 996 $ 993 $ 6,417 $ 7 $ 6,424

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Total Sales and Revenues $ 8,573 $ 1,559 $ 2,852 $ 2,815 $ 15,799 $ — $ 15,799

1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other Segment of $ 547 million and $ 515 million in the nine months ended September 30, 2024 and 2023, respectively.

For the three and nine months ended September 30, 2024 and 2023, Energy & Transportation segment sales by end user application were as follows:

1 Includes revenues from Construction Industries, Resource Industries, Energy & Transportation and All Other Segment of $ 163 million and $ 177 million in the three months ended March 31, 2025 and 2024, respectively.

For the three months ended March 31, 2025 and 2024, Energy & Transportation external sales by end user application were as follows:

Energy & Transportation External Sales

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(Millions of dollars) 2025 2024

4 unchanged sentences

Energy & Transportation External Sales $ 5,398 $ 5,487

Reconciliation of Consolidated profit before taxes:

(Millions of dollars) Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Profit from Reportable Segments

Construction Industries $ 1,486 $ 1,847 $ 4,991 $ 5,440

Resource Industries 619 730 2,067 2,234

Energy & Transportation 1,433 1,181 4,259 3,507

Financial Products Segment 246 203 766 675

(Millions of dollars) Construction Industries Resource Industries Energy & Transportation Financial Products Segment Total from Reportable Segments

Three Months Ended March 31, 2025

Sales and revenues $ 5,184 $ 2,884 $ 6,568 $ 1,007 $ 15,643

Cost of goods sold 3,718 1,960 4,495 — 10,173

451 346 780 195 1,772

Other segment items 3

( 9 ) ( 21 ) ( 21 ) 597 546

Segment Profit $ 1,024 $ 599 $ 1,314 $ 215 $ 3,152

Three Months Ended March 31, 2024

Sales and revenues $ 6,424 $ 3,193 $ 6,681 $ 991 $ 17,289

Cost of goods sold 4,210 2,116 4,578 — 10,904

446 341 778 173 1,738

Other segment items 3

4 6 24 525 559

Segment Profit $ 1,764 $ 730 $ 1,301 $ 293 $ 4,088

1 The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

Inter-segment income/expenses are included within the amounts shown.

2 Includes selling, general and administrative (SG&A) and research and development (R&D) expenses.

The combined presentation aligns with the segment-level information that is regularly provided to the CODM.

3 Other segment items for each reportable segment primarily includes:

Construction Industries / Resource Industries / Energy & Transportation – other operating (income) expenses, currency impacts defined as a methodology difference between exchange rates used in U.S.

GAAP and segment reporting, and equity in (profit) loss of unconsolidated affiliated companies.

Financial Products Segment – interest expense, Cat Financial’s depreciation on equipment leased to others, Insurance Services’ underwriting expenses and investment and interest income, and foreign exchange (gains) losses.

Reconciliation of Consolidated profit before taxes:

(Millions of dollars) Three Months Ended March 31,

Total profit from reportable segments $ 3,152 $ 4,088

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Reconciliation of Assets:

(Millions of dollars) September 30, 2024 December 31, 2023

(Millions of dollars) March 31, 2025 December 31, 2024

Assets from reportable segments:

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(Millions of dollars)

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Depreciation and amortization from reportable segments:

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(Millions of dollars)

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Capital expenditures from reportable segments:

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Cat Financial also provides financing for power generation facilities that, in most cases, incorporate Caterpillar products.

The average original term of Cat Financial's customer finance receivable portfolio was approximately 51 months with an average remaining term of approximately 27 months as of September 30, 2024.

The average original term of Cat Financial's customer finance receivable portfolio was approximately 51 months with an average remaining term of approximately 27 months as of March 31, 2025.

Cat Financial typically maintains a security interest in financed equipment and generally requires physical damage insurance coverage on the financed equipment, both of which provide Cat Financial with certain rights and protections.

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Cat Financial estimates the allowance for credit losses related to its customer finance receivables based on loss forecast models utilizing probabilities of default and the 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 three and nine months ended September 30, 2024, Cat Financial's forecasts reflected a continuation of the trend of historically low unemployment rates as well as low delinquencies within their portfolio.

However, industry delinquencies show an increasing trend as the central bank actions aimed at reducing inflation have weakened global economic growth.

The company believes the economic forecasts employed represent reasonable and supportable forecasts, followed by a reversion to long-term trends.

Cat Financial provides financing to Caterpillar dealers in the form of wholesale financing plans.

During the three months ended March 31, 2025, Cat Financial's forecasts reflected a continuation of the trend of historically low unemployment rates as well as global market uncertainty and continued actions by global central banks aimed at reducing inflation.

Cat Financial believes the economic forecasts employed represent reasonable and supportable forecasts, followed by a reversion to long-term trends.

Cat Financial provides financing to Caterpillar dealers in the form of wholesale financing plans and working capital loans.

Cat Financial's wholesale financing plans provide assistance to dealers by financing their mostly new Caterpillar equipment inventory and rental fleets on a secured and unsecured basis.

In addition, Cat Financial provides a variety of secured and unsecured loans to Caterpillar dealers.

In addition, Cat Financial provides a variety of secured and unsecured retail loans to Caterpillar dealers.

Cat Financial estimates 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, Cat Financial's Dealer portfolio segment has not historically experienced large increases or decreases in credit losses based on changes in economic conditions due to its close working relationships with the dealers and their financial strength.

Therefore, Cat Financial made no adjustments to historical loss rates during the three and nine months ended September 30, 2024.

Therefore, Cat Financial made no adjustments to historical loss rates during the three months ended March 31, 2025.

Classes of finance receivables

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• Asia/Pacific - Finance receivables originated in Australia, New Zealand, China, Japan, Southeast Asia and India.

• Mining - Finance receivables related to large mining customers worldwide.

• Latin America - Finance receivables originated in Mexico and Central and South American countries.

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

• Mining - Finance receivables related to large mining customers worldwide.

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

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).

1 unchanged sentence

Subsequent recoveries, if any, are credited to the allowance for credit losses when received.

An analysis of Cat Financial's allowance for credit losses was as follows:

(Millions of dollars) Three Months Ended September 30, 2024 Three Months Ended September 30, 2023

Customer Dealer Total Customer Dealer Total

Beginning balance $ 246 $ 4 $ 250 $ 265 $ 50 $ 315

Write-offs ( 42 ) — ( 42 ) ( 22 ) — ( 22 )

Recoveries 15 — 15 13 — 13

Provision for credit losses 1

25 — 25 31 1 32

Other 2 — 2 ( 3 ) — ( 3 )

Ending balance $ 246 $ 4 $ 250 $ 284 $ 51 $ 335

Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023

An analysis of the allowance for credit losses was as follows:

(Millions of dollars) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024

Customer Dealer Total Customer Dealer Total

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1 Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables.

Gross write-offs by origination year for Cat Financial's Customer portfolio segment were as follows:

(Millions of dollars) Three Months Ended September 30, 2024

2024 2023 2022 2021 2020 Prior Revolving

Receivables Total

North America $ — $ 5 $ 4 $ 2 $ 1 $ — $ 2 $ 14

EAME — — 1 1 1 — — 3

Asia/Pacific — 2 1 — — 1 — 4

Mining 8 3 3 — — — — 14

Latin America — 2 2 1 2 — — 7

Total $ 8 $ 12 $ 11 $ 4 $ 4 $ 1 $ 2 $ 42

Three Months Ended September 30, 2023

Gross write-offs by origination year for the Customer portfolio segment were as follows:

(Millions of dollars) Three Months Ended March 31, 2025

2025 2024 2023 2022 2021 Prior Revolving

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Latin America — — 1 1 — 1 — 3

Total $ 1 $ 6 $ 7 $ 4 $ 1 $ 1 $ 2 $ 22

Nine Months Ended September 30, 2024

2024 2023 2022 2021 2020 Prior Revolving

Receivables Total

North America $ — $ 13 $ 10 $ 5 $ 2 $ 1 $ 8 $ 39

EAME — 2 3 3 2 — — 10

Asia/Pacific — 4 4 3 1 1 — 13

Mining — 3 1 1 — — — 5

Latin America — 2 5 4 3 8 — 22

Power — — — — — 1 — 1

Total $ — $ 6 $ 9 $ 7 $ 3 $ 3 $ 2 $ 30

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

2024 2023 2022 2021 2020 Prior Revolving

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Total $ — $ 5 $ 8 $ 5 $ 2 $ — $ 3 $ 23

For the three months ended September 30, 2024, there were no gross write-offs in Cat Financial's Dealer portfolio segment.

For the nine months ended September 30, 2024 there were $ 47 million of gross write-offs in Cat Financial's Dealer portfolio segment, all of which were in Latin America and originated prior to 2019.

For the three months ended March 31, 2025, there were no gross write-offs in Cat Financial's Dealer portfolio segment.

For the three months ended March 31, 2024 there were $ 47 million of gross write-offs in Cat Financial's Dealer portfolio segment, all of which were in Latin America and originated prior to 2020.

Credit quality of finance receivables

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The aging category of Cat Financial's amortized cost of finance receivables in the Customer portfolio segment by origination year were as follows:

(Millions of dollars) September 30, 2024

(Millions of dollars) March 31, 2025

2025 2024 2023 2022 2021 Prior Revolving

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91+ days past due — 2 2 2 1 — — 7

Latin America

Current 260 738 332 190 46 7 — 1,573

2 unchanged sentences

91+ days past due — 4 6 7 3 1 — 21

Latin America

Current 184 861 699 396 174 80 23 2,417

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91+ days past due 4 1 2 1 1 — — 9

Latin America

Current 800 363 220 60 8 2 — 1,453

2 unchanged sentences

91+ days past due 2 6 8 4 1 1 — 22

Latin America

Current 924 755 444 206 67 34 21 2,451

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Total Customer $ 9,451 $ 5,892 $ 3,164 $ 1,721 $ 510 $ 202 $ 577 $ 21,517

Finance receivables in Cat Financial's 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.

As of September 30, 2024, Cat Financial's total amortized cost of finance receivables within the Dealer portfolio segment was current.

As of December 31, 2023, Cat Financial's total amortized cost of finance receivables within the Dealer portfolio segment was current, with the exception of $ 44 million that was 91+ days past due in Latin America, all of which originated prior to 2019.

As of March 31, 2025 and December 31, 2024, Cat Financial's total amortized cost of finance receivables within the Dealer portfolio segment was current.

Non-accrual finance receivables

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In Cat Financial's Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income were as follows:

(Millions of dollars) September 30, 2024 December 31, 2023

(Millions of dollars) March 31, 2025 December 31, 2024

Amortized Cost Amortized Cost

5 unchanged sentences

Asia/Pacific 4 3 5 5

Mining 31 — 2 —

Latin America 21 — 24 —

Mining 27 — 29 —

Power 1 — 2 —

Total $ 173 $ 23 $ 176 $ 30

There were no finance receivables in Cat Financial's Dealer portfolio segment on non-accrual status as of September 30, 2024.

There were $ 44 million in finance receivables in Cat Financial's Dealer portfolio segment on non-accrual status as of December 31, 2023, all of which was in Latin America.

There were no finance receivables in Cat Financial's Dealer portfolio segment on non-accrual status as of March 31, 2025 and December 31, 2024.

Modifications

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Modifications for borrowers Cat Financial does consider to be experiencing financial difficulty typically result in payment deferrals and/or reduced payments for a period of four months or longer, term extension of six months or longer or a combination of both.

During the three and nine months ended September 30, 2024 and 2023, there were no finance receivable modifications granted to borrowers experiencing financial difficulty in Cat Financial's Dealer portfolio segment.

The amortized cost basis of finance receivables modified for borrowers experiencing financial difficulty in the Customer portfolio segment during the three months ended September 30, 2024 and 2023, was $ 6 million and $ 13 million, respectively.

Total modifications with borrowers experiencing financial difficulty represented 0.03 percent and 0.06 percent of Cat Financial's Customer portfolio for the same periods, respectively.

The amortized cost basis of finance receivables modified for borrowers experiencing financial difficulty in the Customer portfolio segment during the nine months

ended September 30, 2024 and 2023, was $ 12 million and $ 38 million, respectively.

During the three months ended March 31, 2025 and 2024, there were no finance receivable modifications granted to borrowers experiencing financial difficulty in Cat Financial's Dealer portfolio segment.

The amortized cost basis of finance receivables modified for borrowers experiencing financial difficulty in the Customer portfolio segment during the three months ended March 31, 2025 and 2024, was $ 6 million and $ 3 million, respectively.

Total modifications with borrowers experiencing financial difficulty represented 0.03 percent and 0.01 percent of Cat Financial's Customer portfolio for the same periods, respectively.

Fo r the three months ende d September 30, 2024 and 2023, the financial effects of term extensions for borrowers experiencing financial difficulty added a weighted average of 5 and 8 months, respectively, to the terms of modified contracts.

For the nine months ended September 30, 2024 and 2023, the financial effects of term extensions for borrowers experiencing financial difficulty added a weighted average o f 8 and 17 months, res pectively, to the terms of modified contracts.

For t he three months en ded September 30, 2024 and 2023, the financial effects of payment delays for borrowers experiencing financial difficulty resulted in weighted average paymen t deferrals and/or interest only payment periods of 4 and 6 months, respectively.

For the nine months e nded September 30, 2024 and 2023, the financial effects of payment delays for borrowers experiencing financial difficulty resulted in weighted average paymen t deferrals and/or interest only payment periods of 6 and 7 months, respectively.

The financial effects of term extensions and payment delays for borrowers experiencing financial difficulty for the three months ended March 31, were as follows:

(In months) 2025 2024

Weighted average extension to term of modified contracts 7 10

Weighted average payment deferral and/or interest only periods 8 9

After Cat Financial modifies a finance receivable, they continue to track its performance under its most recent modified terms.

As of September 30, 2024 and 2023, defaults of loans modified in the prior twelve months were not significant.

Defaults of loans modified in the prior twelve months were not significant during the three months ended March 31, 2025 and 2024.

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;

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treasury bonds and large capitalization value and smaller company growth equity securities are based upon valuations for identical instruments in active markets.

Fair values for other government debt securities, corporate debt securities and mortgage-backed debt securities are based upon models that take into consideration such market-based factors as recent sales, risk-free yield curves and prices of similarly rated bonds.

We also have investments in time deposits classified as held-to-maturity debt securities.

The fair value of these investments is based upon valuations observed in less active markets than Level 1.

These investments have a maturity of less than one year and are recorded at amortized costs, which approximate fair value.

Fair values for other government debt securities, corporate debt securities and mortgage-backed debt securities are based upon models that take into consideration such market-based factors as

recent sales, risk-free yield curves and prices of similarly rated bonds.

In addition, Insurance Services has an equity investment in a real estate investment trust (REIT) which is recorded at fair value based on the net asset value (NAV) of the investment and is not classified within the fair value hierarchy.

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See Note 5 for additional information.

Assets and liabilities measured on a recurring basis at fair value included in our Consolidated Statement of Financial Position as of September 30, 2024 and December 31, 2023 were as follows:

September 30, 2024

Assets and liabilities measured on a recurring basis at fair value included in our Consolidated Statement of Financial Position as of March 31, 2025 and December 31, 2024 were as follows:

March 31, 2025

(Millions of dollars)

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Commodity contracts - net — 3 — — 3

Total return swap contracts - net — 16 — — 16

Total assets $ 315 $ 3,419 $ — $ 168 $ 3,902

1 unchanged sentence

Interest rate contracts - net $ — $ 101 $ — $ — $ 101

Total return swap contracts - net — 26 — — 26

Total liabilities $ — $ 127 $ — $ — $ 127

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Foreign currency contracts - net — 117 — — 117

Commodity contracts - net — 9 — — 9

Total Assets $ 312 $ 4,149 $ — $ 167 $ 4,628

1 unchanged sentence

Interest rate contracts - net $ — $ 191 $ — $ — $ 191

Commodity contracts - net — 2 — — 2

Total return swap contracts - net — 33 — — 33

Total liabilities $ — $ 226 $ — $ — $ 226

1 unchanged sentence

A loan is measured at fair value when management determines that collection of contractual amounts due is not probable and the loan is individually evaluated.

In these cases, an allowance for credit losses may be established based either on the present value of expected future cash flows discounted at the receivables’ effective interest rate, the fair value of the collateral for collateral-dependent receivables, or the observable market price of the receivable.

In determining collateral value, Cat Financial estimates the current fair market value of the collateral less selling costs.

Cat Financial had loans carried at fair value of $ 59 million and $ 55 million as of September 30, 2024 and December 31, 2023, respectively.

Generally, the fair value of these receivables is measured using the fair value of collateral less estimated costs to sell.

Cat Financial had loans carried at fair value of $ 70 million and $ 59 million as of March 31, 2025 and December 31, 2024, respectively.

Fair values of financial instruments

7 unchanged sentences

We include restricted cash and short-term investments in Prepaid expenses and other current assets in the Consolidated Statement of Financial Position.

We classify these instruments as Level 1 except for time deposits which are Level 2, and certain corporate debt securities which are Level 3.

We classify these instruments as Level 1.

See Note 8 for additional information.

10 unchanged sentences

Our financial instruments not carried at fair value were as follows:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(Millions of dollars) Carrying

7 unchanged sentences

Financial Products 26,487 26,448 25,406 25,304 2

1 Represents finance leases and failed sale leasebacks of $ 7,018 million and $ 6,953 million at September 30, 2024 and December 31, 2023, respectively.

1 Represents finance leases and failed sale leasebacks of $ 6,829 million and $ 6,769 million at March 31, 2025 and December 31, 2024, respectively.

Other income (expense)

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(Millions of dollars) 2025 2024

1 unchanged sentence

Foreign exchange gains (losses) 1

( 123 ) 17 ( 64 ) ( 15 )

License fee income 35 34

9 unchanged sentences

For involuntary programs, we recognize eligible costs when management has approved the program, the affected employees have been properly notified and the costs are estimable.

Restructuring costs for the three and nine months ended September 30, 2024 and 2023 were as follows:

(Millions of dollars) Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Restructuring costs for the three months ended March 31, 2025 and 2024 were as follows:

(Millions of dollars) Three Months Ended March 31,

Employee separations 1

$ 17 $ 10 $ 49 $ 32

Divestitures 1

3 unchanged sentences

1 Recognized in Other operating (income) expenses.

2 Represents costs related to our restructuring programs, primarily for inventory write-downs, project management, equipment relocation and accelerated depreciation, all of which are primarily included in Cost of goods sold.

The restructuring costs for the nine months ended September 30, 2024 were primarily related to the divestitures of certain non-US entities.

The restructuring costs for the nine months ended September 30, 2023 were primarily related to the divestiture of the company's Longwall business within Resource Industries.

The divestiture closed on February 1, 2023 and resulted in a pre-tax loss of approximately $ 586 million, primarily a non-cash item driven by the release of $ 494 million of accumulated foreign currency translation.

2 Represents costs related to our restructuring programs, primarily for project management, inventory write-downs, accelerated depreciation and equipment relocation, all of which are primarily included in Cost of goods sold.

The restructuring costs for the three months ended March 31, 2025 were related to restructuring actions across the company.

The restructuring income for the three months ended March 31, 2024 was primarily related to the divestiture of a non-US mining entity.

In 2025 and 2024, all restructuring costs are excluded from segment profit.

4 unchanged sentences

The range of payment terms, typically 60 - 90 days, we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the Programs.

The amount of obligations outstanding that are confirmed as valid to the participating financial institutions for suppliers who voluntarily participate in the Programs, included in Accounts payable in the Consolidated Statement of Financial Position, were $ 818 million and $ 803 million at September 30, 2024 and December 31, 2023, respectively.

The amount of obligations outstanding that are confirmed as valid to the participating financial institutions for suppliers who voluntarily participate in the Programs, included in Accounts payable in the Consolidated Statement of Financial Position, were $ 880 million and $ 830 million at March 31, 2025 and December 31, 2024, respectively.

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-Q

Item 1. Financial Statements