Caterpillar Financial Services 10-K 15 Feb 23 2022 FY Annual report Financial data

Cover Page

Cover Page - USD ($)	12 Months Ended
	Dec. 31, 2022	Feb. 15, 2023
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
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 H,3.300% Notes Due 2024
Trading Symbol	CAT/24
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
Entity Shell Company	false
Entity Public Float	$ 0
Entity Common Stock, Shares Outstanding		1
Entity Central Index Key	0000764764
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022
Amendment Flag	false

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	PricewaterhouseCoopers LLP
Auditor Location	Nashville, Tennessee
Auditor Firm ID	238

Consolidated Statements of Prof

Consolidated Statements of Profit - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues:
Retail finance	$ 1,229	$ 1,197	$ 1,249
Operating lease	888	942	965
Wholesale finance	441	314	336
Other, net	176	109	0
Total revenues	2,734	2,562	2,550
Expenses:
Interest	566	455	591
Depreciation on equipment leased to others	718	755	758
General, operating and administrative	531	528	433
Provision for credit losses	81	70	266
Other	24	36	43
Total expenses	1,920	1,844	2,091
Other income (expense)	(83)	(23)	(25)
Profit before income taxes	731	695	434
Provision for income taxes	189	178	126
Profit of consolidated companies	542	517	308
Less:  Profit attributable to noncontrolling interests	7	12	15
Profit attributable to Caterpillar Financial Services Corporation	$ 535	$ 505	$ 293

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Profit of consolidated companies	$ 542	$ 517	$ 308
Other comprehensive income (loss), net of tax (Note 9):
Foreign currency translation	(318)	(209)	236
Derivative financial instruments	33	32	24
Total Other comprehensive income (loss), net of tax	(285)	(177)	260
Comprehensive income (loss)	257	340	568
Less: Comprehensive income (loss) attributable to noncontrolling interests	(5)	14	25
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation	$ 262	$ 326	$ 543

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Assets:
Cash and cash equivalents	$ 868	$ 610
Finance receivables, net of Allowance for credit losses of $346 and $337	26,441	27,177
Notes receivable from Caterpillar	482	389
Equipment on operating leases, net	2,911	3,123
Other assets	1,255	1,088
Total assets	31,957	32,387
Liabilities and shareholder’s equity:
Payable to dealers and others	163	163
Payable to Caterpillar – borrowings and other	124	95
Accrued expenses	380	233
Short-term borrowings	5,954	5,395
Current maturities of long-term debt	5,202	6,307
Long-term debt	16,216	16,287
Other liabilities	955	926
Total liabilities	28,994	29,406
Commitments and contingent liabilities (Note 10)
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	3,057	2,797
Accumulated other comprehensive income (loss)	(1,047)	(774)
Noncontrolling interests	206	211
Total shareholder’s equity	2,963	2,981
Total liabilities and shareholder’s equity	$ 31,957	$ 32,387

Consolidated Statements of Fi_2

Consolidated Statements of Financial Position (Parentheticals) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 346	$ 337
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

Consolidated Statements of Chan

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	Adjustment to adopt new accounting guidance	Adjustment to adopt new accounting guidance Retained earnings	Adjustment to adopt new accounting guidance Accumulated other comprehensive income (loss)
Balance at Dec. 31, 2019	$ 3,236	$ 745	$ 2	$ 3,162	$ (845)	$ 172
Balance (Accounting Standards Update 2018-02) at Dec. 31, 2019							$ (13)	$ (13)
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	308			293		15
Dividend paid to Caterpillar	(300)			(300)
Foreign currency translation, net of tax	236				226	10
Derivative financial instruments, net of tax	24				24
Balance at Dec. 31, 2020	3,491	745	2	3,142	(595)	197
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	517			505		12
Dividend paid to Caterpillar	(850)			(850)
Foreign currency translation, net of tax	(209)				(211)	2
Derivative financial instruments, net of tax	32				32
Balance at Dec. 31, 2021	2,981	745	2	2,797	(774)	211
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	542			535		7
Dividend paid to Caterpillar	(275)			(275)
Foreign currency translation, net of tax	(318)				(306)	(12)
Derivative financial instruments, net of tax	33				33
Balance at Dec. 31, 2022	$ 2,963	$ 745	$ 2	$ 3,057	$ (1,047)	$ 206

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Profit of consolidated companies	$ 542	$ 517	$ 308
Adjustments for non-cash items:
Depreciation and amortization	732	770	772
Accretion of Caterpillar purchased receivable revenue	(417)	(301)	(308)
Provision for credit losses	81	70	266
Other, net	130	90	147
Changes in assets and liabilities:
Other assets	148	59	39
Payable to dealers and others	38	32	34
Accrued expenses	20	(86)	(83)
Other payables with Caterpillar	27	8	(13)
Other liabilities	(46)	30	(14)
Net cash provided by operating activities	1,255	1,189	1,148
Cash flows from investing activities:
Expenditures for equipment on operating leases	(1,121)	(1,202)	(1,086)
Capital expenditures - excluding equipment on operating leases	(18)	(14)	(14)
Proceeds from disposals of equipment	756	1,041	633
Additions to finance receivables	(14,217)	(13,836)	(13,525)
Collections of finance receivables	14,061	13,342	14,084
Net changes in Caterpillar purchased receivables	492	(609)	1,043
Proceeds from sales of receivables	57	51	42
Net change in variable lending to Caterpillar	(2)	13	(12)
Additions to other notes receivable from Caterpillar	(139)	(115)	(75)
Collections of other notes receivable from Caterpillar	46	69	27
Settlements of undesignated derivatives	(87)	(3)	(56)
Other, net	0	1	1
Net cash provided by (used for) investing activities	(172)	(1,262)	1,062
Cash flows from financing activities:
Net change in variable lending from Caterpillar	0	(1,000)	403
Proceeds from debt issued (original maturities greater than three months)	6,674	6,495	8,440
Payments on debt issued (original maturities greater than three months)	(7,703)	(7,877)	(8,211)
Short-term borrowings, net (original maturities three months or less)	540	3,489	(2,809)
Dividend paid to Caterpillar	(275)	(850)	(300)
Net cash provided by (used for) financing activities	(764)	257	(2,477)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(63)	5	(3)
Increase (decrease) in cash, cash equivalents and restricted cash	256	189	(270)
Cash, cash equivalents and restricted cash at beginning of year	614	425	695
Cash, cash equivalents and restricted cash at end of year	870	614	425
Cash paid for interest	544	472	613
Cash paid for taxes, net	$ 254	143	108
Cash and cash equivalents policy	All short-term investments, which consist primarily of highly liquid investments with original maturities of three months or less, are considered to be cash equivalents.
Restricted cash and cash equivalents	$ 2	$ 4	$ 14

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Nature of Operations Caterpillar Financial Services Corporation was organized in 1981 in the State of Delaware (together with its subsidiaries, “Cat Financial,” “the Company,” “we” or “our”). We are a wholly-owned finance subsidiary of Caterpillar Inc. (together with its other subsidiaries, “Caterpillar” or “Cat”). We provide retail and wholesale financing alternatives to customers and dealers around the world for Caterpillar products and services, as well as financing for 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. Wholesale financing to Caterpillar dealers consists primarily of inventory and rental fleet financing. In addition, we purchase short-term wholesale trade receivables from Caterpillar. The various financing plans offered by Cat Financial are designed to support sales of Caterpillar products and generate financing income for Cat Financial. We conduct a significant portion of our activities in North America with additional offices and subsidiaries in Latin America, Asia/Pacific, Europe and Africa. B. Basis of Presentation The accompanying consolidated financial statements include the accounts of Cat Financial and consolidated variable interest entities (VIEs) in which Cat Financial is the primary beneficiary. 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 10 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. We recognize revenue from rental payments received on operating leases on a straight-line basis over the term of the lease. We suspend recognition of finance revenue and operating lease revenue and place the account on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). We resume recognition of revenue and recognize previously suspended income when we consider collection of remaining amounts to be probable. 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 and fees on committed lines of credit or letters of credit, (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 seven G. Residual Values The residual values for operating leases are included in Equipment on operating leases, net in the Consolidated Statements of Financial Position. The residual values for finance leases are included in Finance receivables, net in the Consolidated Statements of Financial Position. During the term of our leases, we monitor residual values. For operating leases, we record adjustments to depreciation expense reflecting changes in residual value estimates prospectively on a straight-line basis. For finance leases, we recognize residual value adjustments through a reduction of finance revenue over the remaining lease term. We evaluate the carrying value of equipment on operating leases for potential impairment when we determine a triggering event has occurred. When a triggering event occurs, we perform a test for recoverability by comparing projected undiscounted future cash flows to the carrying value of the equipment on operating leases. If the test for recoverability identifies a possible impairment, we measure the fair value of the equipment on operating leases in accordance with the fair value measurement framework. We recognize an impairment charge for the amount by which the carrying value of the equipment on operating leases exceeds its estimated fair value. H. Derivative Financial Instruments Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate and interest rate exposures. Our policy specifies that derivatives are not to be used for speculative purposes. 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 8 for additional information. I. Allowance for Credit Losses The allowance for credit losses is management’s estimate of expected losses over the life of our finance receivables portfolio calculated using loss forecast models that take into consideration historical credit loss experience, current economic conditions and forecasts and scenarios that capture country and industry-specific economic factors. In addition, we consider qualitative factors not able to be fully captured in our loss forecast models, including borrower-specific and company-specific factors. These qualitative factors are subjective and require a degree of management judgment. We measure the allowance for credit losses on a collective (pool) basis when similar risk characteristics exist and on an individual basis when we determine that similar risk characteristics do not exist. We identify finance receivables for individual evaluation based on past-due status and information available about the customer, such as financial statements, news reports and published credit ratings, as well as general information regarding industry trends and the economic environment in which our customers operate. The allowance for credit losses attributable to finance receivables that are individually evaluated is based on the present value of expected future cash flows discounted at the receivables’ effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivables. In determining collateral value, we estimate the current fair market value of the collateral less selling costs. We also consider credit enhancements such as additional collateral and contractual third-party guarantees. See Note 2 for a description of our portfolio segments and allowance methodologies. Receivable balances, including accrued interest, are written off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible (generally upon repossession of the collateral). Generally, the amount of the write-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost. 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 11 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 We consider the applicability and impact of all Accounting Standards Updates (ASUs). We adopted the following ASU effective January 1, 2022, which did not have a material impact on our financial statements: ASU Description 2021-05 Lessor – Variable lease payments Accounting Standards Issued But Not Yet Adopted Credit Losses (ASU 2022-02) – In March 2022, the Financial Accounting Standards Board issued ASU No. 2022-02 related to Troubled Debt Restructurings (TDRs) by Creditors and Vintage Disclosures for Gross Write-offs. The ASU eliminates accounting guidance for TDRs, enhances disclosures for certain receivable modifications related to borrowers experiencing financial difficulty, and requires disclosure of current period gross write-offs by year of origination. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. We do not expect the adoption to have a material impact on our financial statements. We consider the applicability and impact of all ASUs. We assessed ASUs not listed above and determined that they either were not applicable or were not expected to have a material impact on our financial statements.

Finance Receivables

Finance Receivables	12 Months Ended
	Dec. 31, 2022
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) 2022 2021 Retail loans, net (1) $ 14,973 $ 14,817 Retail leases, net 6,965 7,818 Caterpillar purchased receivables, net 4,297 4,462 Wholesale loans, net (1) 545 406 Wholesale leases, net 7 11 Total finance receivables 26,787 27,514 Less: Allowance for credit losses (346) (337) Total finance receivables, net $ 26,441 $ 27,177 (1) Includes failed sale leasebacks. Maturities of our finance receivables, as of December 31, 2022, reflect contractual repayments due from borrowers and were as follows: (Millions of dollars) Amounts due in Retail Retail Caterpillar Wholesale Wholesale Total 2023 $ 6,521 $ 2,865 $ 4,334 $ 343 $ 3 $ 14,066 2024 3,864 1,818 — 74 1 5,757 2025 2,733 1,027 — 56 1 3,817 2026 1,518 547 — 18 — 2,083 2027 545 176 — 2 — 723 Thereafter 117 40 — 1 — 158 Total 15,298 6,473 4,334 494 5 26,604 Guaranteed residual value (1) 12 399 — 57 1 469 Unguaranteed residual value (1) 2 665 — 2 2 671 Unearned income (339) (572) (37) (8) (1) (957) Total $ 14,973 $ 6,965 $ 4,297 $ 545 $ 7 $ 26,787 (1) For Retail loans and Wholesale loans, represents residual value on failed sale leasebacks. Our finance receivables generally may be repaid or refinanced without penalty prior to contractual maturity and we also sell finance receivables to third parties to mitigate the concentration of credit risk with certain customers. Finance leases Revenues from finance leases were $429 million, $481 million and $491 million for the years ended December 31, 2022, 2021, and 2020 respectively, and are included in retail and wholesale finance revenue in the Consolidated Statements of Profit. The residual values for finance leases are included in Finance receivables, net in the Consolidated Statements of Financial Position. Residual value adjustments are recognized through a reduction of finance revenue over the remaining lease term. 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 vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. The average original term of our customer finance receivable portfolio was approximately 50 months with an average remaining term of approximately 27 months as of December 31, 2022. We typically maintain a security interest in financed equipment and we 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, 2022, our forecasts for the markets in which we operate reflected a continuation of the trend of relatively low unemployment rates and delinquencies. However, high inflation rates and consequent central bank actions are weakening global economic growth. We believe the economic forecasts employed represent reasonable and supportable forecasts, followed by a reversion to long-term trends. Dealer We provide financing to Caterpillar dealers in the form of wholesale financing plans. Our 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, we provide a variety of secured and unsecured loans to Caterpillar dealers. We estimate the allowance for credit losses for dealer finance receivables based on historical loss rates with consideration of current economic conditions and reasonable and supportable forecasts. In general, our Dealer portfolio segment has not historically experienced large increases or decreases in credit losses based on changes in economic conditions due to our close working relationships with the dealers and their financial strength. Therefore, we made no adjustments to historical loss rates during the year ended December 31, 2022. 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, 2022. 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 the Commonwealth of Independent States. • 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. • Caterpillar Power Finance - Finance receivables originated worldwide related to marine vessels with Caterpillar engines and 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 was as follows: (Millions of dollars) December 31, 2022 December 31, 2021 Allowance for Credit Losses: Customer Dealer Caterpillar Total Customer Dealer Caterpillar Total Beginning Balance $ 251 $ 82 $ 4 $ 337 $ 431 $ 44 $ 4 $ 479 Write-offs (108) — — (108) (256) — — (256) Recoveries 62 — — 62 51 — — 51 Provision for credit losses (1) 75 (17) — 58 30 38 — 68 Other (3) — — (3) (5) — — (5) Ending Balance (2) $ 277 $ 65 $ 4 $ 346 $ 251 $ 82 $ 4 $ 337 Finance Receivables $ 20,353 $ 2,137 $ 4,297 $ 26,787 $ 20,842 $ 2,210 $ 4,462 $ 27,514 (1) Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables. (2) Ending balances as of December 31, 2022 include higher reserves for the Russia and Ukraine portfolios. 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 tables below summarize the aging category of our amortized cost of finance receivables in the Customer portfolio segment by origination year. (Millions of dollars) December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Total North America Current $ 3,915 $ 3,276 $ 1,525 $ 653 $ 206 $ 34 $ 240 $ 9,849 31-60 days past due 25 26 18 12 4 1 4 90 61-90 days past due 9 15 7 3 1 — 3 38 91+ days past due 11 16 12 6 4 3 4 56 EAME Current 1,270 953 477 280 155 68 — 3,203 31-60 days past due 10 12 7 1 1 — — 31 61-90 days past due 8 4 3 1 — — — 16 91+ days past due 6 25 16 4 1 1 — 53 Asia/Pacific Current 1,174 805 393 124 37 5 40 2,578 31-60 days past due 10 12 8 1 1 — — 32 61-90 days past due 2 5 4 2 — — — 13 91+ days past due 2 6 6 4 — — — 18 Mining Current 875 627 227 193 94 108 80 2,204 31-60 days past due — 1 — — — — — 1 61-90 days past due — — — — — — — — 91+ days past due — — — — — 1 — 1 Latin America Current 770 400 150 69 26 20 — 1,435 31-60 days past due 7 8 4 2 — 1 — 22 61-90 days past due 2 5 1 1 — — — 9 91+ days past due 2 13 11 2 1 — — 29 Caterpillar Power Finance Current 82 87 146 51 18 161 125 670 31-60 days past due — — — — — — — — 61-90 days past due — — — — — — — — 91+ days past due — — — — — 5 — 5 Totals by Aging Category Current 8,086 6,148 2,918 1,370 536 396 485 19,939 31-60 days past due 52 59 37 16 6 2 4 176 61-90 days past due 21 29 15 7 1 — 3 76 91+ days past due 21 60 45 16 6 10 4 162 Total $ 8,180 $ 6,296 $ 3,015 $ 1,409 $ 549 $ 408 $ 496 $ 20,353 (Millions of dollars) December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Total North America Current $ 4,792 $ 2,596 $ 1,426 $ 630 $ 182 $ 32 $ 182 $ 9,840 31-60 days past due 27 32 20 12 4 1 5 101 61-90 days past due 7 8 5 3 1 1 5 30 91+ days past due 9 17 12 13 5 4 5 65 EAME Current 1,499 836 577 352 140 26 — 3,430 31-60 days past due 5 4 3 1 1 — — 14 61-90 days past due 3 3 3 1 — — — 10 91+ days past due 3 11 2 2 — 2 — 20 Asia/Pacific Current 1,456 943 420 119 40 3 36 3,017 31-60 days past due 10 14 10 2 — — — 36 61-90 days past due 3 7 4 1 — — — 15 91+ days past due 2 10 10 3 — — — 25 Mining Current 944 356 332 194 36 161 36 2,059 31-60 days past due 6 — — — — — — 6 61-90 days past due 1 — — — 4 — — 5 91+ days past due — 1 8 9 3 1 — 22 Latin America Current 617 299 160 70 17 18 — 1,181 31-60 days past due 4 7 3 3 1 — — 18 61-90 days past due 3 3 1 1 — — — 8 91+ days past due 4 9 9 7 7 14 — 50 Caterpillar Power Finance Current 120 152 119 70 180 104 101 846 31-60 days past due — — — — — — — — 61-90 days past due — — — — — — — — 91+ days past due — — — — — 44 — 44 Totals by Aging Category Current 9,428 5,182 3,034 1,435 595 344 355 20,373 31-60 days past due 52 57 36 18 6 1 5 175 61-90 days past due 17 21 13 6 5 1 5 68 91+ days past due 18 48 41 34 15 65 5 226 Total $ 9,515 $ 5,308 $ 3,124 $ 1,493 $ 621 $ 411 $ 370 $ 20,842 Finance receivables in the 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, 2022 and 2021, our total amortized cost of finance receivables within the Dealer portfolio segment was current, with the exception of $62 million and $78 million, respectively, that was 91+ days past due in Latin America, all of which was originated in 2017. Caterpillar Purchased Receivables The tables below summarize the aging category of our amortized cost of finance receivables in the Caterpillar Purchased Receivables portfolio segment. (Millions of dollars) December 31, 2022 31-60 61-90 91+ Total Current Total Finance North America $ 11 $ 7 $ 4 $ 22 $ 2,458 $ 2,480 EAME 1 — 2 3 812 815 Asia/Pacific 6 2 2 10 555 565 Latin America 9 2 14 25 406 431 Caterpillar Power Finance 1 — — 1 5 6 Total $ 28 $ 11 $ 22 $ 61 $ 4,236 $ 4,297 (Millions of dollars) December 31, 2021 31-60 61-90 91+ Total Current Total Finance North America $ 8 $ 6 $ 5 $ 19 $ 2,499 $ 2,518 EAME 1 — 1 2 844 846 Asia/Pacific — — 1 1 620 621 Latin America 1 1 — 2 472 474 Caterpillar Power Finance — — — — 3 3 Total $ 10 $ 7 $ 7 $ 24 $ 4,438 $ 4,462 Non-accrual finance receivables Recognition of income is suspended and the finance receivable is placed on non-accrual status when management determines that collection of future income is not probable. Contracts on non-accrual status are generally more than 120 days past due or have been restructured in a troubled debt restructuring (TDR). Recognition is resumed and previously suspended income is recognized when the collection of remaining amounts is considered probable. Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. Interest earned but uncollected prior to the receivable being placed on non-accrual status is written off through Provision for credit losses when, in the judgment of management, it is considered uncollectible. 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 were as follows: (Millions of dollars) December 31, 2022 December 31, 2021 Amortized Cost Amortized Cost Non-accrual Non-accrual 91+ Still Non-accrual Non-accrual 91+ Still North America $ 52 $ 4 $ 11 $ 47 $ 9 $ 12 EAME 43 — 10 18 1 2 Asia/Pacific 11 — 7 19 — 7 Mining — 1 — 8 1 14 Latin America 45 — — 52 4 1 Caterpillar Power Finance 5 11 — 40 11 — Total $ 156 $ 16 $ 28 $ 184 $ 26 $ 36 There was $17 million, $12 million and $12 million of interest income recognized during the years ended December 31, 2022, 2021 and 2020, respectively, for customer finance receivables on non-accrual status. As of December 31, 2022 and 2021, finance receivables in our Dealer portfolio segment on non-accrual status were $62 million and $78 million, respectively, all of which was in Latin America. Troubled debt restructurings A restructuring of a finance receivable constitutes a TDR when the lender grants a concession it would not otherwise consider to a borrower experiencing financial difficulties. Concessions granted may include extended contract maturities, inclusion of interest only periods, below market interest rates, payment deferrals and reduction of principal and/or accrued interest. We individually evaluate TDR contracts and establish an allowance based on the present value of expected future cash flows discounted at the receivable’s effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. There were no finance receivables modified as TDRs during the years ended December 31, 2022, 2021 and 2020 for the Dealer or Caterpillar Purchased Receivables portfolio segments. Finance receivables in the Customer portfolio segment modified as TDRs for the years ended December 31, were as follows: (Dollars in millions) 2022 2021 2020 Pre-TDR Post-TDR Pre-TDR Post-TDR Pre-TDR Amortized Cost Post-TDR North America $ 6 $ 6 $ 6 $ 6 $ 13 $ 13 EAME 1 1 3 3 — — Asia/Pacific — — 4 4 12 12 Mining 16 16 11 5 35 35 Latin America 22 22 12 12 45 45 Caterpillar Power Finance 20 19 26 22 115 115 Total $ 65 $ 64 $ 62 $ 52 $ 220 $ 220 TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date for the years ended December 31, were as follows: (Dollars in millions) 2022 2021 2020 Post-TDR Post-TDR Post-TDR North America $ — $ 1 $ 8 EAME — — 10 Asia/Pacific — 6 2 Mining 5 — 10 Latin America — 15 1 Caterpillar Power Finance — 7 18 Total $ 5 $ 29 $ 49
Concentration Risk Disclosure, Finance Receivables	Concentration of Credit Risk As of December 31, 2022 and 2021, receivables from customers in construction-related industries made up approximately 40 percent of our total portfolio of which customers in North America were approximately 60 percent. No single customer or dealer represented a significant concentration of credit risk. We typically maintain a security interest in retail financed equipment and, in some instances, wholesale financed equipment. We also require physical damage insurance coverage on all financed equipment.

Equipment on Operating Leases

Equipment on Operating Leases	12 Months Ended
	Dec. 31, 2022
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) 2022 2021 Equipment on operating leases, at cost $ 4,321 $ 4,589 Less: Accumulated depreciation (1,410) (1,466) Equipment on operating leases, net $ 2,911 $ 3,123 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. We determine the residual value of leased equipment based on its estimated end-of-term market value. We estimate the residual value of leased equipment at the inception of the lease based on a number of factors, including historical wholesale market sales prices, past remarketing experience and any known significant market/product trends. We also consider the following critical factors in our residual value estimates: lease term, market size and demand, total expected hours of usage, machine configuration, application, location, model changes, quantities, third-party residual guarantees and contractual customer purchase options. The residuals for leases classified as operating leases are included in Equipment on operating leases, 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. The carrying amount of residual assets covered by residual value guarantees and subject to operating leases was $3 million as of December 31, 2022 and 2021. At December 31, 2022, rental payments to be received for equipment on operating leases were as follows: (Millions of dollars) 2023 2024 2025 2026 2027 Thereafter Total $ 680 $ 446 $ 254 $ 110 $ 30 $ 8 $ 1,528

Other Assets

Other Assets	12 Months Ended
	Dec. 31, 2022
Other Assets [Abstract]
Other Assets	OTHER ASSETS The components of Other assets as of December 31, were as follows: (Millions of dollars) 2022 2021 Customer and other miscellaneous receivables $ 419 $ 400 Collateral held for resale, at net realizable value 102 168 Deferred and refundable income taxes 148 126 Property and equipment, net 132 133 Other (1) 454 261 Total Other assets $ 1,255 $ 1,088 (1) Includes Derivative financial instruments. See Note 8 for additional information.

Credit Commitments

Credit Commitments	12 Months Ended
	Dec. 31, 2022
Credit Commitments [Abstract]
Credit Commitments	CREDIT COMMITMENTS Revolving credit facilities As of December 31, 2022, we had three global credit facilities with a syndicate of banks totaling $10.50 billion (Credit Facility) available in the aggregate to both Caterpillar and us for general liquidity purposes. Based on management’s allocation decision, which can be revised from time to time, the portion of the Credit Facility available to us as of December 31, 2022 was $7.75 billion. Information on our Credit Facility is as follows: • The 364-day facility of $3.15 billion (of which $2.33 billion is available to us) expires in August 2023. • The three-year facility, as amended and restated in September 2022, of $2.73 billion (of which $2.01 billion is available to us) expires in August 2025. • The five-year facility, as amended and restated in September 2022, of $4.62 billion (of which $3.41 billion is available to us) expires in September 2027. At December 31, 2022, Caterpillar’s consolidated net worth was $15.93 billion, which was above the $9.00 billion required under the Credit Facility. The consolidated net worth is defined in the Credit Facility as the consolidated shareholders’ equity including preferred stock but excluding the pension and other postretirement benefits balance within Accumulated other comprehensive income (loss). At December 31, 2022, our covenant interest coverage ratio was 2.36 to 1. This was above the 1.15 to 1 minimum ratio, calculated as (1) profit excluding income taxes, interest expense and net gain/(loss) from interest rate derivatives to (2) interest expense, calculated at the end of each calendar quarter for the rolling four quarter period then most recently ended, required by the Credit Facility. In addition, at December 31, 2022, our six-month covenant leverage ratio was 7.05 to 1 and our year-end covenant leverage ratio was 7.21 to 1. This was below the maximum ratio of debt to net worth of 10 to 1, calculated (1) on a monthly basis as the average of the leverage ratios determined on the last day of each of the six preceding calendar months and (2) at each December 31, required by the Credit Facility. 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, 2022, there were no borrowings under the Credit Facility. Bank borrowings Available credit lines with banks as of December 31, 2022 totaled $3.49 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, 2022 and 2021, we had $979 million and $559 million, respectively, outstanding against these credit lines and were in compliance with all debt covenants under these credit lines. Notes receivable from/payable to Caterpillar Under our variable amount and term lending agreements and other notes receivable with Caterpillar, we may borrow up to $2.38 billion from Caterpillar and Caterpillar may borrow up to $1.75 billion from us. The variable amount lending agreements are in effect for indefinite periods of time and may be changed or terminated by either party with 30 days notice. The term lending agreements have remaining maturities ranging up to ten years. We had notes payable of $23 million and notes receivable of $482 million outstanding under these agreements as of December 31, 2022, compared with notes payable of $22 million and notes receivable of $389 million as of December 31, 2021.

Short-Term Borrowings

Short-Term Borrowings	12 Months Ended
	Dec. 31, 2022
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) 2022 2021 Balance Weighted Avg. Rate Balance Weighted Avg. Rate Commercial paper, net $ 5,455 4.2% $ 4,896 0.1% Bank borrowings and other 234 11.4% 213 4.5% Variable denomination floating rate demand notes 265 3.4% 286 0.2% Total $ 5,954 $ 5,395

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2022
Long-Term Debt, Unclassified [Abstract]
Long-Term Debt	LONG-TERM DEBT During 2022, we issued $6.01 billion of medium-term notes, of which $5.21 billion were at fixed interest rates and $800 million were at floating interest rates linked to SOFR. At December 31, 2022, the outstanding medium-term notes had remaining maturities ranging up to 5 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) 2022 2021 Balance Weighted Avg. Rate Balance Weighted Avg. Rate Medium-term notes $ 20,821 2.2% $ 22,283 1.6% Unamortized discount and debt issuance costs (37) (40) Fair value adjustments (112) 3 Medium-term notes, net 20,672 22,246 Bank borrowings and other 746 5.3% 348 4.1% Total $ 21,418 $ 22,594 Maturities of Long-term debt outstanding (excluding fair value adjustments) as of December 31, 2022, in each of the next five years, are as follows: ( Millions of dollars) 2023 $ 5,202 2024 7,398 2025 4,511 2026 2,469 2027 1,948 Long-term debt outstanding as of December 31, 2022 included $14 million of medium-term notes that could be called by us at some point in the future at par. Medium-term notes of $900 million maturing in the first quarter of 2023 were excluded from Current maturities of long-term debt in the Consolidated Statements of Financial Position as of December 31, 2022 due to a $900 million issuance of medium-term notes on January 6, 2023 which mature in 2026. The preceding maturity table reflects the reclassification of $900 million from maturities in 2023 to 2026.

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	12 Months Ended
	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments and Risk Management	DERIVATIVE FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate and interest rate exposures. Our policy specifies that derivatives are not to be used for speculative purposes. 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 Inc. Board of Directors on our risk management practices, including our use of financial derivative instruments. All derivatives are recognized on the Consolidated Statements of Financial Position at their fair value. 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. 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, on 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 on the Consolidated Statements of Cash Flows. We include cash flows from undesignated derivative financial instruments in the investing category on 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 on 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. Interest rate risk Interest rate movements create a degree of risk by affecting the amount of our interest receipts and payments on our finance receivables and debt portfolios, respectively. 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 receivable 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 receivable portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move. Our policy allows us to use fixed-to-floating, floating-to-fixed and floating-to-floating interest rate contracts to meet the match-funding objective. We designate fixed-to-floating interest rate contracts as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate. We designate most floating-to-fixed interest rate contracts as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate. We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate contracts. We amortize the gains or losses associated with these contracts at the time of liquidation into earnings over the original term of the previously designated hedged item. The location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position were as follows: (Millions of dollars) December 31, 2022 December 31, 2021 Assets 1 Liabilities 2 Assets 1 Liabilities 2 Designated derivatives Foreign exchange contracts $ 305 $ (44) $ 142 $ (32) Interest rate contracts 87 (113) 38 (15) $ 392 $ (157) $ 180 $ (47) Undesignated derivatives Foreign exchange contracts $ 25 $ (42) $ 28 $ (36) $ 25 $ (42) $ 28 $ (36) (1) Assets are classified on the Consolidated Statements of Financial Position as Other assets. (2) Liabilities are classified on the Consolidated Statements of Financial Position as Accrued expenses. The total notional amount of our derivative instruments was $13.18 billion and $13.85 billion as of December 31, 2022 and 2021, 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 are categorized as follows: (Millions of dollars) Fair Value / Cash Flow Hedges Gains (Losses) Recognized 1 Gains (Losses) Gains (Losses) Reclassified from AOCI 2 Year Ended December 31, 2022 2021 2020 2022 2021 2020 2022 2021 2020 Foreign exchange contracts $ (111) $ 89 $ (112) $ 310 $ 190 $ (130) $ 370 $ 194 $ (132) Interest rate contracts (7) 24 15 111 19 (23) 14 (28) (52) $ (118) $ 113 $ (97) $ 421 $ 209 $ (153) $ 384 $ 166 $ (184) (1) Foreign exchange contract gains (losses) are primarily from undesignated forward contracts and are included in Other income (expense). Interest rate contract gains (losses) are from designated fair value hedges and 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. The following amounts were recorded in the Consolidated Statements of Financial Position related to cumulative basis adjustments for fair value hedges: (Millions of dollars) Carry Value of Cumulative Amount of Fair Value December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Current maturities of long-term debt $ — $ 755 $ — $ 5 Long-term debt 2,091 1,304 (112) (2) Total $ 2,091 $ 2,059 $ (112) $ 3 As of December 31, 2022, $39 million of deferred net gains, net of tax, included in equity (AOCI in the Consolidated Statements of Financial Position), related to our cash flow hedges, are expected to be reclassified to earnings over the next twelve months. The actual amount recorded in earnings will vary based on interest rates and exchange rates at the time the hedged transactions impact earnings. We enter into International Swaps and Derivatives Association (ISDA) 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, 2022 and 2021, 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 was as follows: (Millions of dollars) December 31, 2022 December 31, 2021 Assets Liabilities Assets Liabilities Gross amounts recognized $ 417 $ (199) $ 208 $ (83) Financial instruments not offset (108) 108 (67) 67 Net amount $ 309 $ (91) $ 141 $ (16)
Concentration Risk Disclosure, Derivatives	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, 2022 and 2021, the maximum exposure to credit loss, was $417 million and $208 million, respectively, before the application of any master netting agreements.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	12 Months Ended
	Dec. 31, 2022
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 Accumulated other comprehensive income (loss) included in the Consolidated Statements of Changes in Shareholder’s Equity consisted of the following: (Millions of dollars) 2022 2021 2020 Foreign currency translation Balance at beginning of year $ (762) $ (551) $ (777) Gains (losses) on foreign currency translation (276) (169) 179 Less: Tax provision/(benefit) 30 42 (47) Net gains (losses) on foreign currency translation (306) (211) 226 Other comprehensive income (loss), net of tax (306) (211) 226 Balance at end of year $ (1,068) $ (762) $ (551) Derivative financial instruments Balance at beginning of year $ (12) $ (44) $ (68) Gains (losses) deferred 421 209 (153) Less: Tax provision/(benefit) 97 24 (33) Net gains (losses) deferred 324 185 (120) (Gains) losses reclassified to earnings (384) (166) 184 Less: Tax (provision)/benefit (93) (13) 40 Net (gains) losses reclassified to earnings (291) (153) 144 Other comprehensive income (loss), net of tax 33 32 24 Balance at end of year $ 21 $ (12) $ (44) Total Accumulated other comprehensive income (loss) at end of year $ (1,047) $ (774) $ (595)

Commitments and Contingent Liab

Commitments and Contingent Liabilities	12 Months Ended
	Dec. 31, 2022
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 and beneficiaries and are generally secured by customer assets. No significant loss has been experienced or is anticipated under any of these guarantees. At December 31, 2022 and 2021, 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 $26 million and $36 million at December 31, 2022 and 2021, respectively. We provide guarantees to purchase certain loans of Caterpillar dealers from a special-purpose corporation (SPC) that qualifies as a VIE (see Note 1 for additional information regarding the accounting guidance on the consolidation of VIEs). 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 receive a fee for providing this guarantee. 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, 2022 and 2021, the SPC’s assets of $971 million and $888 million, 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 $970 million and $888 million, 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 to extend credit as we do for other financing. Collateral is not required for these commitments, but if credit is extended, collateral may be required upon funding. The amount of unused commitments to extend credit to Caterpillar dealers was $11.39 billion at December 31, 2022 . We generally have the right to unconditionally cancel, alter, or amend the terms of these dealer commitments at any time. The amount of unused commitments to extend credit to customers was $888 million at December 31, 2022 . A portion of these commitments is not expected to be fully drawn upon; therefore, the total commitment amounts do not represent a future cash requirement. Litigation and claims We are involved in unresolved legal actions that arise in the normal course of business. 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.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES A reconciliation of the U.S. federal statutory rate to the effective rate for the years ended December 31, was as follows: (Millions of dollars) 2022 2021 2020 Taxes computed at U.S. statutory rates $ 154 21.0 % $ 146 21.0 % $ 91 21.0 % (Decreases) increases in taxes resulting from: State income tax, net of federal Tax 4 0.5 % 3 0.4 % (1) (0.2) % Non-U.S. subsidiaries taxed at other than the U.S. rate 19 2.6 % 22 3.2 % 29 6.7 % Valuation allowances 15 2.1 % 5 0.7 % 10 2.3 % Other, net (3) (0.4) % 2 0.3 % (3) (0.7) % Provision for income taxes $ 189 25.8 % $ 178 25.6 % $ 126 29.1 % Included in the line item above labeled “Non-U.S. subsidiaries taxed at other than the U.S. rate” are the effects of local and U.S. taxes related to earnings of non-U.S. subsidiaries and other permanent differences between tax and U.S. GAAP results. The provision for income taxes for 2022, 2021 and 2020 also includes 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 $15 million, $5 million and $10 million non-cash expense, respectively. Distributions of profits from non-U.S. subsidiaries are not expected to cause a significant incremental U.S. tax impact in the future. However, these distributions may be subject to non-U.S. withholding taxes if profits are distributed from certain jurisdictions. We have not recorded a deferred tax liability for withholding taxes in non-U.S. jurisdictions where earnings are considered indefinitely reinvested. Undistributed profits of non-U.S. subsidiaries of approximately $4 billion are considered indefinitely reinvested. Determination of the amount of unrecognized deferred tax liability related to indefinitely reinvested profits is not feasible primarily due to our legal entity operating structure and the complexity of U.S. and local tax laws. If management intentions or U.S. tax law changes in the future, there could be an impact on the provision for income taxes to record an incremental tax liability in the period the change occurs. The components of Profit before income taxes for the years ended December 31, were as follows: (Millions of dollars) 2022 2021 2020 U.S. $ 439 $ 288 $ 99 Non-U.S. 292 407 335 Total $ 731 $ 695 $ 434 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 were as follows for the years ended December 31: (Millions of dollars) 2022 2021 2020 Current income tax provision: U.S. $ 116 $ 101 $ 46 Non-U.S. 95 162 80 State (U.S.) 5 5 1 216 268 127 Deferred income tax provision (benefit): U.S. (36) (56) (45) Non-U.S. 8 (33) 46 State (U.S.) 1 (1) (2) (27) (90) (1) Total Provision for income taxes $ 189 $ 178 $ 126 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 $275 million and $279 million as of December 31, 2022 and 2021, respectively, and are included in Other liabilities in the Consolidated Statements of Financial Position. Accounting for income taxes under U.S. GAAP requires individual tax-paying entities of the Company to offset deferred income tax assets and liabilities within each particular tax jurisdiction and present them as a single amount in the Consolidated Statements of Financial Position. Amounts in different tax jurisdictions cannot be offset against each other. The amounts of deferred income taxes at December 31, included in the following lines in our Consolidated Statements of Financial Position were: (Millions of dollars) 2022 2021 Assets: Other assets $ 115 $ 107 Liabilities: Other liabilities (610) (592) Deferred income taxes, net $ (495) $ (485) Our consolidated deferred income taxes consisted of the following components as of December 31: (Millions of dollars) 2022 2021 Deferred income tax assets: Allowance for credit losses $ 97 $ 90 Tax carryforwards 93 83 Revenue timing differences 20 38 Other, net 28 33 238 244 Deferred income tax liabilities: Capital assets, including lease basis differences (461) (501) Deferred income tax on translation adjustment (219) (189) (680) (690) Valuation allowance for deferred income tax assets (53) (39) Deferred income taxes, net $ (495) $ (485) As of December 31, 2022, approximately $73 million of U.S. state tax net operating losses (NOL) were available. These carryforwards primarily expire over the next eighteen years. The total deferred income tax asset associated with these NOL carryforwards is $5 million as of December 31, 2022, partially offset by a valuation allowance of $1 million. 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. As of December 31, 2022, NOL carryforwards in various non-U.S. taxing jurisdictions were approximately $363 million. Of these, $41 million expire between 2023 and 2033. The remaining carryforwards do not expire. As of December 31, 2022, valuation allowances of $51 million and $1 million have been recorded at certain non-U.S. subsidiaries and U.S. subsidiaries, respectively, that have not yet demonstrated consistent and/or sustainable profitability to support the recognition of net deferred income tax assets. As a result of improving profit before tax in one of our non-U.S. entities, we believe there is a reasonable possibility that a significant portion of the $23 million valuation allowance at December 31, 2022 recorded against the entity’s deferred tax assets may no longer be needed in 2023. Due to the uncertainty of inflation impacts on taxable income for one of our non-U.S. entities, we believe there is a reasonable possibility that we will need to record a valuation allowance in 2023 against some or all of the $36 million deferred tax asset at December 31, 2022. The potential amounts of the valuation allowance changes are dependent on each entity’s future taxable income. 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) 2022 2021 2020 Reconciliation of unrecognized income tax benefits (1) : Balance at beginning of year $ 131 $ 119 $ 119 Additions for income tax positions related to current year — 2 — Additions for income tax positions related to prior year — 10 — Reductions for income tax positions related to settlements (4) — — Balance at end of year $ 127 $ 131 $ 119 Amount that, if recognized, would impact the effective tax rate $ 127 $ 131 $ 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 years ended December 31, 2022, 2021 and 2020, we recognized a benefit of less than $1 million, an expense of $1 million and a benefit of less than $1 million in interest and penalties, respectively. As of December 31, 2022 and 2021, the total amount of accrued interest and penalties was $2 million and $1 million, respectively.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS 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 $218 million and $125 million as of December 31, 2022 and 2021, respectively. See Note 8 for additional information. Loans measured at fair value Certain loans are subject to measurement at fair value on a nonrecurring basis and are classified as Level 3 measurements. A loan is measured at fair value when management determines that collection of contractual amounts due is not probable and the loan is individually evaluated. In these cases, an allowance for credit losses may be established based either on the present value of expected future cash flows discounted at the receivables’ effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. In determining collateral value, we estimate the current fair market value of the collateral less selling costs. We had loans carried at fair value of $68 million and $100 million as of December 31, 2022 and 2021, respectively. B. Fair Values of Financial Instruments Cash and cash equivalents, Restricted cash and cash equivalents (included in Other assets in the Consolidated Statements of Financial Position) and Short-term borrowings (see Note 6) 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) 2022 2021 Carrying Fair Carrying Fair Fair Reference Assets Finance receivables, net (excluding finance leases (1) ) $ 19,085 $ 18,448 $ 19,068 $ 19,047 3 Note 2 Liabilities Long-term debt $ 21,418 $ 20,686 $ 22,594 $ 22,797 2 Note 7 (1) Represents finance leases and failed sale leasebacks of $7.36 billion and $8.11 billion as of December 31, 2022 and 2021, respectively.

Transactions with Related Parti

Transactions with Related Parties	12 Months Ended
	Dec. 31, 2022
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 $275 million, $850 million and $300 million were paid to Caterpillar in 2022, 2021 and 2020, respectively. We have variable amount and term lending agreements and other notes receivable with Caterpillar. Under these agreements, we may borrow up to $2.38 billion from Caterpillar, and Caterpillar may borrow up to $1.75 billion from us. The variable amount lending agreements are in effect for indefinite periods of time and may be changed or terminated by either party with 30 days notice. The term lending agreements have remaining maturities ranging up to ten years. Information concerning these agreements was as follows: (Millions of dollars) 2022 2021 2020 Payable to Caterpillar - borrowings as of December 31, $ 23 $ 22 $ 1,022 Payable to Caterpillar - other as of December 31, 101 73 65 Notes receivable from Caterpillar as of December 31, 482 389 356 Other receivables from Caterpillar as of December 31, (2) 133 70 65 Interest expense 1 — 2 Interest income on Notes Receivable with Caterpillar (1) 17 14 14 (1) Included in Other revenues, net in the Consolidated Statements of Profit. (2) Included in Other assets in the Consolidated Statements of Financial Position. We have agreements with Caterpillar to purchase certain trade receivables at a discount. In addition, we receive fee revenue from Caterpillar for our centralized activities benefiting the global factoring program. Cash flows related to our factoring programs with Caterpillar are included in Net changes in Caterpillar purchased receivables within investing activities in the Consolidated Statements of Cash Flows. Information pertaining to these purchases was as follows: (Millions of dollars) 2022 2021 2020 Purchases made $ 47,158 $ 40,140 $ 32,937 Revenue earned 417 301 308 Purchased Receivables as of December 31, 4,297 4,462 3,646 We participate in certain marketing programs offered in conjunction with Caterpillar that allow us to periodically offer financing to customers at interest rates that are below market rates. Under these marketing programs, Caterpillar funds an amount at the outset of the transaction, which we then recognize as revenue over the term of the financing. During 2022, 2021 and 2020, relative to such programs, we received $339 million, $351 million and $353 million, respectively. We have Finance receivables, net and Equipment on operating leases, net with Caterpillar of $143 million and $147 million as of December 31, 2022 and 2021, respectively. For the years ended December 31, 2022, 2021 and 2020, we recognized revenues of $24 million, $25 million and $22 million, respectively, related to these finance receivables and operating leases. For the years ended December 31, 2022, 2021 and 2020, we recognized depreciation related to these operating leases of $17 million, $17 million and $15 million, respectively. At December 31, 2022 and 2021, $448 million and $568 million, respectively, of our portfolio was subject to guarantees by Caterpillar and affiliates. Caterpillar provides defined benefit pension plans, defined contribution plans and other postretirement benefit plans to employees. We reimburse Caterpillar for these charges and other employee benefits paid by Caterpillar related to our employees. Further information about these plans is available in Caterpillar’s 2022 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 2022, 2021 and 2020, these operational and support charges for which we reimburse Caterpillar amounted to $52 million, $52 million and $46 million, respectively. In addition, we provide administrative support services to certain Caterpillar subsidiaries. Caterpillar reimburses us for these charges. During 2022, 2021 and 2020, these charges amounted to $13 million, $12 million and $10 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.

Segment and Geographic Informat

Segment and Geographic Information	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Segment and Geographic Information	SEGMENT AND GEOGRAPHIC INFORMATION A. Basis for Segment Information The Chief Operating Decision Maker (the CEO) allocates resources and manages performance for our six operating segments described as follows. Our operating segments provide financing alternatives to customers and dealers around the world for Caterpillar products and services and vehicles, and power generation facilities that, in most cases, incorporate Caterpillar products. Financing plans include operating and finance leases, 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. B. Description of Segments 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 the Commonwealth of Independent States. • Asia/Pacific - Includes our operations in Australia, New Zealand, China, Japan, Southeast Asia and India. • Latin America - Includes our operations in Mexico and Central and South American countries. • Mining - Provides financing for large mining customers worldwide. • Caterpillar Power Finance - Provides financing worldwide for Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems and has previously provided financing for marine vessels. C. Segment Measurement and Reconciliations Cash, debt and other expenses are allocated to our segments based on their respective portfolios. The related Interest expense is calculated based on the amount of allocated debt and the rates associated with that debt. The performance of each segment is assessed based on a consistent leverage ratio. The Provision for credit losses is based on each segment’s respective finance receivable portfolio. Capital expenditures include expenditures for equipment on operating leases and other miscellaneous capital expenditures. 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 - This item is related to corporate requirements and strategies that are considered to be for the benefit of the entire organization. Also included are the consolidated results of the special purpose corporation (see Note 11 for additional information) and other miscellaneous items. • Timing - Timing differences in the recognition of costs between segment reporting and consolidated external reporting. • Methodology - Methodology differences between segment reporting and consolidated external reporting are as follows: ◦ Segment assets include off-balance sheet managed assets for which we maintain servicing responsibilities. ◦ The impact of differences between the actual leverage and the segment leverage ratios. ◦ Interest expense includes realized forward points on foreign currency forward contracts. ◦ The net gain or loss from interest rate derivatives is excluded from segment reporting. Supplemental segment data and reconciliations to consolidated external reporting for the years ended December 31 was as follows: (Millions of dollars) 2022 External Profit Interest Depreciation Provision Assets at December 31, 2022 Capital North America $ 1,512 $ 550 $ 263 $ 503 $ 25 $ 15,229 $ 862 EAME 285 12 79 55 49 5,067 117 Asia/Pacific 283 134 73 5 6 3,921 6 Latin America 284 85 136 10 7 2,636 25 Mining 294 63 42 143 9 2,700 120 Caterpillar Power Finance 53 37 15 2 (15) 704 — Total Segments 2,711 881 608 718 81 30,257 1,130 Unallocated 35 (312) 204 — — 1,628 9 Timing (12) 4 — — — 18 — Methodology — 158 (246) — — 278 — Inter-segment Eliminations (1) — — — — — (224) — Total $ 2,734 $ 731 $ 566 $ 718 $ 81 $ 31,957 $ 1,139 2021 External Profit Interest Depreciation Provision Assets at December 31, 2021 Capital North America $ 1,401 $ 419 $ 250 $ 542 $ 15 $ 15,755 $ 888 EAME 274 73 21 60 30 5,192 92 Asia/Pacific 340 170 84 7 9 4,117 10 Latin America 202 24 68 8 52 2,405 12 Mining 289 98 37 136 (15) 2,672 206 Caterpillar Power Finance 52 41 13 2 (21) 957 — Total Segments 2,558 825 473 755 70 31,098 1,208 Unallocated 15 (295) 179 — — 1,458 8 Timing (11) 6 — — — 15 — Methodology — 159 (197) — — 18 — Inter-segment Eliminations (1) — — — — — (202) — Total $ 2,562 $ 695 $ 455 $ 755 $ 70 $ 32,387 $ 1,216 2020 External Profit Interest Depreciation Provision Assets at December 31, 2020 Capital North America $ 1,401 $ 312 $ 322 $ 538 $ 69 $ 14,749 $ 864 EAME 271 44 37 62 50 4,981 37 Asia/Pacific 338 145 94 9 38 4,585 7 Latin America 201 41 70 11 33 2,621 7 Mining 279 33 53 137 27 2,575 151 Caterpillar Power Finance 54 (38) 25 1 50 1,308 23 Total Segments 2,544 537 601 758 267 30,819 1,089 Unallocated 25 (287) 207 — (1) 1,576 11 Timing (19) (3) — — — 12 — Methodology — 187 (217) — — (152) — Inter-segment Eliminations (1) — — — — — (264) — Total $ 2,550 $ 434 $ 591 $ 758 $ 266 $ 31,991 $ 1,100 (1) Elimination is primarily related to intercompany loans. Geographic information: (Millions of dollars) 2022 2021 2020 Revenues Inside U.S. $ 1,551 $ 1,422 $ 1,443 All other 1,183 1,140 1,107 Total $ 2,734 $ 2,562 $ 2,550 Equipment on operating leases, net and property 2022 2021 Inside U.S. $ 2,036 $ 2,179 Inside Canada 507 545 All other 500 532 Total $ 3,043 $ 3,256

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the accounts of Cat Financial and consolidated variable interest entities (VIEs) in which Cat Financial is the primary beneficiary. 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 10 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 ReceivablesFinance 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. We recognize revenue from rental payments received on operating leases on a straight-line basis over the term of the lease. We suspend recognition of finance revenue and operating lease revenue and place the account on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). We resume recognition of revenue and recognize previously suspended income when we consider collection of remaining amounts to be probable. 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.
Equipment on Operating Leases	Equipment on Operating LeasesWe 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 seven
Residual Values	Residual Values The residual values for operating leases are included in Equipment on operating leases, net in the Consolidated Statements of Financial Position. The residual values for finance leases are included in Finance receivables, net in the Consolidated Statements of Financial Position. During the term of our leases, we monitor residual values. For operating leases, we record adjustments to depreciation expense reflecting changes in residual value estimates prospectively on a straight-line basis. For finance leases, we recognize residual value adjustments through a reduction of finance revenue over the remaining lease term. We evaluate the carrying value of equipment on operating leases for potential impairment when we determine a triggering event has occurred. When a triggering event occurs, we perform a test for recoverability by comparing projected undiscounted future cash flows to the carrying value of the equipment on operating leases. If the test for recoverability identifies a possible impairment, we measure the fair value of the equipment on operating leases in accordance with the fair value measurement framework. We recognize an impairment charge for the amount by which the carrying value of the equipment on operating leases exceeds its estimated fair value.
Derivative Financial Instruments	Derivative Financial Instruments Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate and interest rate exposures. Our policy specifies that derivatives are not to be used for speculative purposes. 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 8 for additional information.
Allowance for Credit Losses	Allowance for Credit Losses The allowance for credit losses is management’s estimate of expected losses over the life of our finance receivables portfolio calculated using loss forecast models that take into consideration historical credit loss experience, current economic conditions and forecasts and scenarios that capture country and industry-specific economic factors. In addition, we consider qualitative factors not able to be fully captured in our loss forecast models, including borrower-specific and company-specific factors. These qualitative factors are subjective and require a degree of management judgment. We measure the allowance for credit losses on a collective (pool) basis when similar risk characteristics exist and on an individual basis when we determine that similar risk characteristics do not exist. We identify finance receivables for individual evaluation based on past-due status and information available about the customer, such as financial statements, news reports and published credit ratings, as well as general information regarding industry trends and the economic environment in which our customers operate. The allowance for credit losses attributable to finance receivables that are individually evaluated is based on the present value of expected future cash flows discounted at the receivables’ effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivables. In determining collateral value, we estimate the current fair market value of the collateral less selling costs. We also consider credit enhancements such as additional collateral and contractual third-party guarantees. See Note 2 for a description of our portfolio segments and allowance methodologies. Receivable balances, including accrued interest, are written off against the allowance for credit losses when, in the judgment of management, they are considered uncollectible (generally upon repossession of the collateral). Generally, the amount of the write-off is determined by comparing the fair value of the collateral, less cost to sell, to the amortized cost. 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 11 for further discussion.
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.

Finance Receivables (Tables)

Finance Receivables (Tables)	12 Months Ended
	Dec. 31, 2022
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) 2022 2021 Retail loans, net (1) $ 14,973 $ 14,817 Retail leases, net 6,965 7,818 Caterpillar purchased receivables, net 4,297 4,462 Wholesale loans, net (1) 545 406 Wholesale leases, net 7 11 Total finance receivables 26,787 27,514 Less: Allowance for credit losses (346) (337) Total finance receivables, net $ 26,441 $ 27,177 (1) Includes failed sale leasebacks.
Maturities of finance receivables	Maturities of our finance receivables, as of December 31, 2022, reflect contractual repayments due from borrowers and were as follows: (Millions of dollars) Amounts due in Retail Retail Caterpillar Wholesale Wholesale Total 2023 $ 6,521 $ 2,865 $ 4,334 $ 343 $ 3 $ 14,066 2024 3,864 1,818 — 74 1 5,757 2025 2,733 1,027 — 56 1 3,817 2026 1,518 547 — 18 — 2,083 2027 545 176 — 2 — 723 Thereafter 117 40 — 1 — 158 Total 15,298 6,473 4,334 494 5 26,604 Guaranteed residual value (1) 12 399 — 57 1 469 Unguaranteed residual value (1) 2 665 — 2 2 671 Unearned income (339) (572) (37) (8) (1) (957) Total $ 14,973 $ 6,965 $ 4,297 $ 545 $ 7 $ 26,787 (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 was as follows: (Millions of dollars) December 31, 2022 December 31, 2021 Allowance for Credit Losses: Customer Dealer Caterpillar Total Customer Dealer Caterpillar Total Beginning Balance $ 251 $ 82 $ 4 $ 337 $ 431 $ 44 $ 4 $ 479 Write-offs (108) — — (108) (256) — — (256) Recoveries 62 — — 62 51 — — 51 Provision for credit losses (1) 75 (17) — 58 30 38 — 68 Other (3) — — (3) (5) — — (5) Ending Balance (2) $ 277 $ 65 $ 4 $ 346 $ 251 $ 82 $ 4 $ 337 Finance Receivables $ 20,353 $ 2,137 $ 4,297 $ 26,787 $ 20,842 $ 2,210 $ 4,462 $ 27,514 (1) Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables. (2) Ending balances as of December 31, 2022 include higher reserves for the Russia and Ukraine portfolios.
Amortized cost of finance receivables in the Customer portfolio segment by origination year	The tables below summarize the aging category of our amortized cost of finance receivables in the Customer portfolio segment by origination year. (Millions of dollars) December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Total North America Current $ 3,915 $ 3,276 $ 1,525 $ 653 $ 206 $ 34 $ 240 $ 9,849 31-60 days past due 25 26 18 12 4 1 4 90 61-90 days past due 9 15 7 3 1 — 3 38 91+ days past due 11 16 12 6 4 3 4 56 EAME Current 1,270 953 477 280 155 68 — 3,203 31-60 days past due 10 12 7 1 1 — — 31 61-90 days past due 8 4 3 1 — — — 16 91+ days past due 6 25 16 4 1 1 — 53 Asia/Pacific Current 1,174 805 393 124 37 5 40 2,578 31-60 days past due 10 12 8 1 1 — — 32 61-90 days past due 2 5 4 2 — — — 13 91+ days past due 2 6 6 4 — — — 18 Mining Current 875 627 227 193 94 108 80 2,204 31-60 days past due — 1 — — — — — 1 61-90 days past due — — — — — — — — 91+ days past due — — — — — 1 — 1 Latin America Current 770 400 150 69 26 20 — 1,435 31-60 days past due 7 8 4 2 — 1 — 22 61-90 days past due 2 5 1 1 — — — 9 91+ days past due 2 13 11 2 1 — — 29 Caterpillar Power Finance Current 82 87 146 51 18 161 125 670 31-60 days past due — — — — — — — — 61-90 days past due — — — — — — — — 91+ days past due — — — — — 5 — 5 Totals by Aging Category Current 8,086 6,148 2,918 1,370 536 396 485 19,939 31-60 days past due 52 59 37 16 6 2 4 176 61-90 days past due 21 29 15 7 1 — 3 76 91+ days past due 21 60 45 16 6 10 4 162 Total $ 8,180 $ 6,296 $ 3,015 $ 1,409 $ 549 $ 408 $ 496 $ 20,353 (Millions of dollars) December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Total North America Current $ 4,792 $ 2,596 $ 1,426 $ 630 $ 182 $ 32 $ 182 $ 9,840 31-60 days past due 27 32 20 12 4 1 5 101 61-90 days past due 7 8 5 3 1 1 5 30 91+ days past due 9 17 12 13 5 4 5 65 EAME Current 1,499 836 577 352 140 26 — 3,430 31-60 days past due 5 4 3 1 1 — — 14 61-90 days past due 3 3 3 1 — — — 10 91+ days past due 3 11 2 2 — 2 — 20 Asia/Pacific Current 1,456 943 420 119 40 3 36 3,017 31-60 days past due 10 14 10 2 — — — 36 61-90 days past due 3 7 4 1 — — — 15 91+ days past due 2 10 10 3 — — — 25 Mining Current 944 356 332 194 36 161 36 2,059 31-60 days past due 6 — — — — — — 6 61-90 days past due 1 — — — 4 — — 5 91+ days past due — 1 8 9 3 1 — 22 Latin America Current 617 299 160 70 17 18 — 1,181 31-60 days past due 4 7 3 3 1 — — 18 61-90 days past due 3 3 1 1 — — — 8 91+ days past due 4 9 9 7 7 14 — 50 Caterpillar Power Finance Current 120 152 119 70 180 104 101 846 31-60 days past due — — — — — — — — 61-90 days past due — — — — — — — — 91+ days past due — — — — — 44 — 44 Totals by Aging Category Current 9,428 5,182 3,034 1,435 595 344 355 20,373 31-60 days past due 52 57 36 18 6 1 5 175 61-90 days past due 17 21 13 6 5 1 5 68 91+ days past due 18 48 41 34 15 65 5 226 Total $ 9,515 $ 5,308 $ 3,124 $ 1,493 $ 621 $ 411 $ 370 $ 20,842
Aging related to finance receivables	The tables below summarize the aging category of our amortized cost of finance receivables in the Caterpillar Purchased Receivables portfolio segment. (Millions of dollars) December 31, 2022 31-60 61-90 91+ Total Current Total Finance North America $ 11 $ 7 $ 4 $ 22 $ 2,458 $ 2,480 EAME 1 — 2 3 812 815 Asia/Pacific 6 2 2 10 555 565 Latin America 9 2 14 25 406 431 Caterpillar Power Finance 1 — — 1 5 6 Total $ 28 $ 11 $ 22 $ 61 $ 4,236 $ 4,297 (Millions of dollars) December 31, 2021 31-60 61-90 91+ Total Current Total Finance North America $ 8 $ 6 $ 5 $ 19 $ 2,499 $ 2,518 EAME 1 — 1 2 844 846 Asia/Pacific — — 1 1 620 621 Latin America 1 1 — 2 472 474 Caterpillar Power Finance — — — — 3 3 Total $ 10 $ 7 $ 7 $ 24 $ 4,438 $ 4,462
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 were as follows: (Millions of dollars) December 31, 2022 December 31, 2021 Amortized Cost Amortized Cost Non-accrual Non-accrual 91+ Still Non-accrual Non-accrual 91+ Still North America $ 52 $ 4 $ 11 $ 47 $ 9 $ 12 EAME 43 — 10 18 1 2 Asia/Pacific 11 — 7 19 — 7 Mining — 1 — 8 1 14 Latin America 45 — — 52 4 1 Caterpillar Power Finance 5 11 — 40 11 — Total $ 156 $ 16 $ 28 $ 184 $ 26 $ 36 There was $17 million, $12 million and $12 million of interest income recognized during the years ended December 31, 2022, 2021 and 2020, respectively, for customer finance receivables on non-accrual status.
Finance receivables modified as TDRs	Finance receivables in the Customer portfolio segment modified as TDRs for the years ended December 31, were as follows: (Dollars in millions) 2022 2021 2020 Pre-TDR Post-TDR Pre-TDR Post-TDR Pre-TDR Amortized Cost Post-TDR North America $ 6 $ 6 $ 6 $ 6 $ 13 $ 13 EAME 1 1 3 3 — — Asia/Pacific — — 4 4 12 12 Mining 16 16 11 5 35 35 Latin America 22 22 12 12 45 45 Caterpillar Power Finance 20 19 26 22 115 115 Total $ 65 $ 64 $ 62 $ 52 $ 220 $ 220 TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date for the years ended December 31, were as follows: (Dollars in millions) 2022 2021 2020 Post-TDR Post-TDR Post-TDR North America $ — $ 1 $ 8 EAME — — 10 Asia/Pacific — 6 2 Mining 5 — 10 Latin America — 15 1 Caterpillar Power Finance — 7 18 Total $ 5 $ 29 $ 49

Equipment on Operating Leases (

Equipment on Operating Leases (Tables)	12 Months Ended
	Dec. 31, 2022
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) 2022 2021 Equipment on operating leases, at cost $ 4,321 $ 4,589 Less: Accumulated depreciation (1,410) (1,466) Equipment on operating leases, net $ 2,911 $ 3,123
Schedule of payments due for operating leases	At December 31, 2022, rental payments to be received for equipment on operating leases were as follows: (Millions of dollars) 2023 2024 2025 2026 2027 Thereafter Total $ 680 $ 446 $ 254 $ 110 $ 30 $ 8 $ 1,528

Other Assets (Tables)

Other Assets (Tables)	12 Months Ended
	Dec. 31, 2022
Other Assets [Abstract]
Schedule of Other assets	The components of Other assets as of December 31, were as follows: (Millions of dollars) 2022 2021 Customer and other miscellaneous receivables $ 419 $ 400 Collateral held for resale, at net realizable value 102 168 Deferred and refundable income taxes 148 126 Property and equipment, net 132 133 Other (1) 454 261 Total Other assets $ 1,255 $ 1,088 (1) Includes Derivative financial instruments. See Note 8 for additional information.

Short-Term Borrowings (Tables)

Short-Term Borrowings (Tables)	12 Months Ended
	Dec. 31, 2022
Short-Term Debt [Abstract]
Short-term borrowings	Short-term borrowings outstanding as of December 31, were comprised of the following: (Millions of dollars) 2022 2021 Balance Weighted Avg. Rate Balance Weighted Avg. Rate Commercial paper, net $ 5,455 4.2% $ 4,896 0.1% Bank borrowings and other 234 11.4% 213 4.5% Variable denomination floating rate demand notes 265 3.4% 286 0.2% Total $ 5,954 $ 5,395

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2022
Long-Term Debt, Unclassified [Abstract]
Long-term debt	Long-term debt outstanding as of December 31, was comprised of the following: (Millions of dollars) 2022 2021 Balance Weighted Avg. Rate Balance Weighted Avg. Rate Medium-term notes $ 20,821 2.2% $ 22,283 1.6% Unamortized discount and debt issuance costs (37) (40) Fair value adjustments (112) 3 Medium-term notes, net 20,672 22,246 Bank borrowings and other 746 5.3% 348 4.1% Total $ 21,418 $ 22,594
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, 2022, in each of the next five years, are as follows: ( Millions of dollars) 2023 $ 5,202 2024 7,398 2025 4,511 2026 2,469 2027 1,948

Derivative Financial Instrume_2

Derivative Financial Instruments and Risk Management (Tables)	12 Months Ended
	Dec. 31, 2022
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 were as follows: (Millions of dollars) December 31, 2022 December 31, 2021 Assets 1 Liabilities 2 Assets 1 Liabilities 2 Designated derivatives Foreign exchange contracts $ 305 $ (44) $ 142 $ (32) Interest rate contracts 87 (113) 38 (15) $ 392 $ (157) $ 180 $ (47) Undesignated derivatives Foreign exchange contracts $ 25 $ (42) $ 28 $ (36) $ 25 $ (42) $ 28 $ (36) (1) Assets are classified on the Consolidated Statements of Financial Position as Other assets. (2) Liabilities are classified on 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 are categorized as follows: (Millions of dollars) Fair Value / Cash Flow Hedges Gains (Losses) Recognized 1 Gains (Losses) Gains (Losses) Reclassified from AOCI 2 Year Ended December 31, 2022 2021 2020 2022 2021 2020 2022 2021 2020 Foreign exchange contracts $ (111) $ 89 $ (112) $ 310 $ 190 $ (130) $ 370 $ 194 $ (132) Interest rate contracts (7) 24 15 111 19 (23) 14 (28) (52) $ (118) $ 113 $ (97) $ 421 $ 209 $ (153) $ 384 $ 166 $ (184) (1) Foreign exchange contract gains (losses) are primarily from undesignated forward contracts and are included in Other income (expense). Interest rate contract gains (losses) are from designated fair value hedges and 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	The following amounts were recorded in the Consolidated Statements of Financial Position related to cumulative basis adjustments for fair value hedges: (Millions of dollars) Carry Value of Cumulative Amount of Fair Value December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Current maturities of long-term debt $ — $ 755 $ — $ 5 Long-term debt 2,091 1,304 (112) (2) Total $ 2,091 $ 2,059 $ (112) $ 3
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 was as follows: (Millions of dollars) December 31, 2022 December 31, 2021 Assets Liabilities Assets Liabilities Gross amounts recognized $ 417 $ (199) $ 208 $ (83) Financial instruments not offset (108) 108 (67) 67 Net amount $ 309 $ (91) $ 141 $ (16)

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	12 Months Ended
	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated other comprehensive income (loss)	Changes in Accumulated other comprehensive income (loss) included in the Consolidated Statements of Changes in Shareholder’s Equity consisted of the following: (Millions of dollars) 2022 2021 2020 Foreign currency translation Balance at beginning of year $ (762) $ (551) $ (777) Gains (losses) on foreign currency translation (276) (169) 179 Less: Tax provision/(benefit) 30 42 (47) Net gains (losses) on foreign currency translation (306) (211) 226 Other comprehensive income (loss), net of tax (306) (211) 226 Balance at end of year $ (1,068) $ (762) $ (551) Derivative financial instruments Balance at beginning of year $ (12) $ (44) $ (68) Gains (losses) deferred 421 209 (153) Less: Tax provision/(benefit) 97 24 (33) Net gains (losses) deferred 324 185 (120) (Gains) losses reclassified to earnings (384) (166) 184 Less: Tax (provision)/benefit (93) (13) 40 Net (gains) losses reclassified to earnings (291) (153) 144 Other comprehensive income (loss), net of tax 33 32 24 Balance at end of year $ 21 $ (12) $ (44) Total Accumulated other comprehensive income (loss) at end of year $ (1,047) $ (774) $ (595)

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Reconciliation of the U.S. federal statutory rate to effective rate	A reconciliation of the U.S. federal statutory rate to the effective rate for the years ended December 31, was as follows: (Millions of dollars) 2022 2021 2020 Taxes computed at U.S. statutory rates $ 154 21.0 % $ 146 21.0 % $ 91 21.0 % (Decreases) increases in taxes resulting from: State income tax, net of federal Tax 4 0.5 % 3 0.4 % (1) (0.2) % Non-U.S. subsidiaries taxed at other than the U.S. rate 19 2.6 % 22 3.2 % 29 6.7 % Valuation allowances 15 2.1 % 5 0.7 % 10 2.3 % Other, net (3) (0.4) % 2 0.3 % (3) (0.7) % Provision for income taxes $ 189 25.8 % $ 178 25.6 % $ 126 29.1 %
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) 2022 2021 2020 U.S. $ 439 $ 288 $ 99 Non-U.S. 292 407 335 Total $ 731 $ 695 $ 434
Components of the Provision for income taxes	The components of the Provision for income taxes were as follows for the years ended December 31: (Millions of dollars) 2022 2021 2020 Current income tax provision: U.S. $ 116 $ 101 $ 46 Non-U.S. 95 162 80 State (U.S.) 5 5 1 216 268 127 Deferred income tax provision (benefit): U.S. (36) (56) (45) Non-U.S. 8 (33) 46 State (U.S.) 1 (1) (2) (27) (90) (1) Total Provision for income taxes $ 189 $ 178 $ 126
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) 2022 2021 Assets: Other assets $ 115 $ 107 Liabilities: Other liabilities (610) (592) Deferred income taxes, net $ (495) $ (485) Our consolidated deferred income taxes consisted of the following components as of December 31: (Millions of dollars) 2022 2021 Deferred income tax assets: Allowance for credit losses $ 97 $ 90 Tax carryforwards 93 83 Revenue timing differences 20 38 Other, net 28 33 238 244 Deferred income tax liabilities: Capital assets, including lease basis differences (461) (501) Deferred income tax on translation adjustment (219) (189) (680) (690) Valuation allowance for deferred income tax assets (53) (39) Deferred income taxes, net $ (495) $ (485)
Summary of net operating loss carryforwards	As of December 31, 2022, approximately $73 million of U.S. state tax net operating losses (NOL) were available. These carryforwards primarily expire over the next eighteen years. The total deferred income tax asset associated with these NOL carryforwards is $5 million as of December 31, 2022, partially offset by a valuation allowance of $1 million. 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. As of December 31, 2022, NOL carryforwards in various non-U.S. taxing jurisdictions were approximately $363 million. Of these, $41 million expire between 2023 and 2033. The remaining carryforwards do not expire. As of December 31, 2022, valuation allowances of $51 million and $1 million have been recorded at certain non-U.S. subsidiaries and U.S. subsidiaries, respectively, that have not yet demonstrated consistent and/or sustainable profitability to support the recognition of net deferred income tax assets.
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) 2022 2021 2020 Reconciliation of unrecognized income tax benefits (1) : Balance at beginning of year $ 131 $ 119 $ 119 Additions for income tax positions related to current year — 2 — Additions for income tax positions related to prior year — 10 — Reductions for income tax positions related to settlements (4) — — Balance at end of year $ 127 $ 131 $ 119 Amount that, if recognized, would impact the effective tax rate $ 127 $ 131 $ 119 (1) Foreign currency translation amounts are included within each line as applicable.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2022
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) 2022 2021 Carrying Fair Carrying Fair Fair Reference Assets Finance receivables, net (excluding finance leases (1) ) $ 19,085 $ 18,448 $ 19,068 $ 19,047 3 Note 2 Liabilities Long-term debt $ 21,418 $ 20,686 $ 22,594 $ 22,797 2 Note 7 (1) Represents finance leases and failed sale leasebacks of $7.36 billion and $8.11 billion as of December 31, 2022 and 2021, respectively.

Transactions with Related Par_2

Transactions with Related Parties (Tables)	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Transactions with Related Parties	We have variable amount and term lending agreements and other notes receivable with Caterpillar. Under these agreements, we may borrow up to $2.38 billion from Caterpillar, and Caterpillar may borrow up to $1.75 billion from us. The variable amount lending agreements are in effect for indefinite periods of time and may be changed or terminated by either party with 30 days notice. The term lending agreements have remaining maturities ranging up to ten years. Information concerning these agreements was as follows: (Millions of dollars) 2022 2021 2020 Payable to Caterpillar - borrowings as of December 31, $ 23 $ 22 $ 1,022 Payable to Caterpillar - other as of December 31, 101 73 65 Notes receivable from Caterpillar as of December 31, 482 389 356 Other receivables from Caterpillar as of December 31, (2) 133 70 65 Interest expense 1 — 2 Interest income on Notes Receivable with Caterpillar (1) 17 14 14 (1) Included in Other revenues, net in the Consolidated Statements of Profit. (2) Included in Other assets in the Consolidated Statements of Financial Position. We have agreements with Caterpillar to purchase certain trade receivables at a discount. In addition, we receive fee revenue from Caterpillar for our centralized activities benefiting the global factoring program. Cash flows related to our factoring programs with Caterpillar are included in Net changes in Caterpillar purchased receivables within investing activities in the Consolidated Statements of Cash Flows. Information pertaining to these purchases was as follows: (Millions of dollars) 2022 2021 2020 Purchases made $ 47,158 $ 40,140 $ 32,937 Revenue earned 417 301 308 Purchased Receivables as of December 31, 4,297 4,462 3,646

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	12 Months Ended
	Dec. 31, 2022
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) 2022 External Profit Interest Depreciation Provision Assets at December 31, 2022 Capital North America $ 1,512 $ 550 $ 263 $ 503 $ 25 $ 15,229 $ 862 EAME 285 12 79 55 49 5,067 117 Asia/Pacific 283 134 73 5 6 3,921 6 Latin America 284 85 136 10 7 2,636 25 Mining 294 63 42 143 9 2,700 120 Caterpillar Power Finance 53 37 15 2 (15) 704 — Total Segments 2,711 881 608 718 81 30,257 1,130 Unallocated 35 (312) 204 — — 1,628 9 Timing (12) 4 — — — 18 — Methodology — 158 (246) — — 278 — Inter-segment Eliminations (1) — — — — — (224) — Total $ 2,734 $ 731 $ 566 $ 718 $ 81 $ 31,957 $ 1,139 2021 External Profit Interest Depreciation Provision Assets at December 31, 2021 Capital North America $ 1,401 $ 419 $ 250 $ 542 $ 15 $ 15,755 $ 888 EAME 274 73 21 60 30 5,192 92 Asia/Pacific 340 170 84 7 9 4,117 10 Latin America 202 24 68 8 52 2,405 12 Mining 289 98 37 136 (15) 2,672 206 Caterpillar Power Finance 52 41 13 2 (21) 957 — Total Segments 2,558 825 473 755 70 31,098 1,208 Unallocated 15 (295) 179 — — 1,458 8 Timing (11) 6 — — — 15 — Methodology — 159 (197) — — 18 — Inter-segment Eliminations (1) — — — — — (202) — Total $ 2,562 $ 695 $ 455 $ 755 $ 70 $ 32,387 $ 1,216 2020 External Profit Interest Depreciation Provision Assets at December 31, 2020 Capital North America $ 1,401 $ 312 $ 322 $ 538 $ 69 $ 14,749 $ 864 EAME 271 44 37 62 50 4,981 37 Asia/Pacific 338 145 94 9 38 4,585 7 Latin America 201 41 70 11 33 2,621 7 Mining 279 33 53 137 27 2,575 151 Caterpillar Power Finance 54 (38) 25 1 50 1,308 23 Total Segments 2,544 537 601 758 267 30,819 1,089 Unallocated 25 (287) 207 — (1) 1,576 11 Timing (19) (3) — — — 12 — Methodology — 187 (217) — — (152) — Inter-segment Eliminations (1) — — — — — (264) — Total $ 2,550 $ 434 $ 591 $ 758 $ 266 $ 31,991 $ 1,100 (1) Elimination is primarily related to intercompany loans.
Geographic information	Geographic information: (Millions of dollars) 2022 2021 2020 Revenues Inside U.S. $ 1,551 $ 1,422 $ 1,443 All other 1,183 1,140 1,107 Total $ 2,734 $ 2,562 $ 2,550 Equipment on operating leases, net and property 2022 2021 Inside U.S. $ 2,036 $ 2,179 Inside Canada 507 545 All other 500 532 Total $ 3,043 $ 3,256

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Period after which collection of future income is considered as not probable	120 days

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details 2)	Dec. 31, 2022
Minimum
Property, Plant and Equipment
Lease term used to calculate depreciation	1 year
Maximum
Property, Plant and Equipment
Lease term used to calculate depreciation	7 years

Finance Receivables (Details)

Finance Receivables (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable
Financing Receivable, before Allowance for Credit Loss	$ 26,787	$ 27,514
Less: Allowance for credit losses	(346)	(337)	$ (479)
Total finance receivables, net	26,441	27,177
Retail loans
Accounts, Notes, Loans and Financing Receivable
Financing Receivable, before Allowance for Credit Loss	14,973	14,817
Retail leases
Accounts, Notes, Loans and Financing Receivable
Financing Receivable, before Allowance for Credit Loss	6,965	7,818
Caterpillar purchased receivables
Accounts, Notes, Loans and Financing Receivable
Financing Receivable, before Allowance for Credit Loss	4,297	4,462	$ 3,646
Wholesale loans
Accounts, Notes, Loans and Financing Receivable
Financing Receivable, before Allowance for Credit Loss	545	406
Wholesale leases
Accounts, Notes, Loans and Financing Receivable
Financing Receivable, before Allowance for Credit Loss	$ 7	$ 11

Finance Receivables (Details 2)

Finance Receivables (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable
2023	$ 14,066
2024	5,757
2025	3,817
2026	2,083
2027	723
Thereafter	158
Total	26,604
Guaranteed residual value	469
Unguaranteed residual value	671
Financing Receivable, Unamortized Loan Cost (Fee) and Purchase Premium (Discount)	957
Financing Receivable, before Allowance for Credit Loss	26,787	$ 27,514
Finance lease revenue (included in retail and wholesale finance revenue)	429	481	$ 491
Retail loans
Accounts, Notes, Loans and Financing Receivable
2023	6,521
2024	3,864
2025	2,733
2026	1,518
2027	545
Thereafter	117
Total	15,298
Guaranteed residual value	12
Unguaranteed residual value	2
Financing Receivable, Unamortized Loan Cost (Fee) and Purchase Premium (Discount)	339
Financing Receivable, before Allowance for Credit Loss	14,973	14,817
Retail leases
Accounts, Notes, Loans and Financing Receivable
2023	2,865
2024	1,818
2025	1,027
2026	547
2027	176
Thereafter	40
Total	6,473
Guaranteed residual value	399
Unguaranteed residual value	665
Financing Receivable, Unamortized Loan Cost (Fee) and Purchase Premium (Discount)	572
Financing Receivable, before Allowance for Credit Loss	6,965	7,818
Caterpillar Purchased Receivables
Accounts, Notes, Loans and Financing Receivable
2023	4,334
2024	0
2025	0
2026	0
2027	0
Thereafter	0
Total	4,334
Guaranteed residual value	0
Unguaranteed residual value	0
Financing Receivable, Unamortized Loan Cost (Fee) and Purchase Premium (Discount)	37
Financing Receivable, before Allowance for Credit Loss	4,297	4,462	$ 3,646
Wholesale loans
Accounts, Notes, Loans and Financing Receivable
2023	343
2024	74
2025	56
2026	18
2027	2
Thereafter	1
Total	494
Guaranteed residual value	57
Unguaranteed residual value	2
Financing Receivable, Unamortized Loan Cost (Fee) and Purchase Premium (Discount)	8
Financing Receivable, before Allowance for Credit Loss	545	406
Wholesale leases
Accounts, Notes, Loans and Financing Receivable
2023	3
2024	1
2025	1
2026	0
2027	0
Thereafter	0
Total	5
Guaranteed residual value	1
Unguaranteed residual value	2
Financing Receivable, Unamortized Loan Cost (Fee) and Purchase Premium (Discount)	1
Financing Receivable, before Allowance for Credit Loss	$ 7	$ 11

Finance Receivables (Details 3)

Finance Receivables (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Losses
Beginning Balance	$ 337	$ 479
Write-offs	(108)	(256)
Recoveries	62	51
Provision for credit losses(1)	58	68
Other	(3)	(5)
Ending Balance(2)	346	337
Finance Receivables	26,787	27,514
Customer
Financing Receivable, Allowance for Credit Losses
Beginning Balance	251	431
Write-offs	(108)	(256)
Recoveries	62	51
Provision for credit losses(1)	75	30
Other	(3)	(5)
Ending Balance(2)	277	251
Finance Receivables	20,353	20,842
Dealer
Financing Receivable, Allowance for Credit Losses
Beginning Balance	82	44
Write-offs	0	0
Recoveries	0	0
Provision for credit losses(1)	(17)	38
Other	0	0
Ending Balance(2)	65	82
Finance Receivables	2,137	2,210
Caterpillar Purchased Receivables
Financing Receivable, Allowance for Credit Losses
Beginning Balance	4	4
Write-offs	0	0
Recoveries	0	0
Provision for credit losses(1)	0	0
Other	0	0
Ending Balance(2)	4	4
Finance Receivables	$ 4,297	$ 4,462

Finance Receivables (Details 4)

Finance Receivables (Details 4) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator
Financing Receivable, before Allowance for Credit Loss	$ 26,787	$ 27,514
Customer
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	8,180	9,515
2021 and 2020, respectively	6,296	5,308
2020 and 2019, respectively	3,015	3,124
2019 and 2018, respectively	1,409	1,493
2018 and 2017, respectively	549	621
Prior	408	411
Revolving Finance Receivables	496	370
Financing Receivable, before Allowance for Credit Loss	20,353	20,842
Customer | Current
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	8,086	9,428
2021 and 2020, respectively	6,148	5,182
2020 and 2019, respectively	2,918	3,034
2019 and 2018, respectively	1,370	1,435
2018 and 2017, respectively	536	595
Prior	396	344
Revolving Finance Receivables	485	355
Financing Receivable, before Allowance for Credit Loss	19,939	20,373
Customer | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	52	52
2021 and 2020, respectively	59	57
2020 and 2019, respectively	37	36
2019 and 2018, respectively	16	18
2018 and 2017, respectively	6	6
Prior	2	1
Revolving Finance Receivables	4	5
Financing Receivable, before Allowance for Credit Loss	176	175
Customer | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	21	17
2021 and 2020, respectively	29	21
2020 and 2019, respectively	15	13
2019 and 2018, respectively	7	6
2018 and 2017, respectively	1	5
Prior	0	1
Revolving Finance Receivables	3	5
Financing Receivable, before Allowance for Credit Loss	76	68
Customer | 91+ days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	21	18
2021 and 2020, respectively	60	48
2020 and 2019, respectively	45	41
2019 and 2018, respectively	16	34
2018 and 2017, respectively	6	15
Prior	10	65
Revolving Finance Receivables	4	5
Financing Receivable, before Allowance for Credit Loss	162	226
Customer | North America | Current
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	3,915	4,792
2021 and 2020, respectively	3,276	2,596
2020 and 2019, respectively	1,525	1,426
2019 and 2018, respectively	653	630
2018 and 2017, respectively	206	182
Prior	34	32
Revolving Finance Receivables	240	182
Financing Receivable, before Allowance for Credit Loss	9,849	9,840
Customer | North America | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	25	27
2021 and 2020, respectively	26	32
2020 and 2019, respectively	18	20
2019 and 2018, respectively	12	12
2018 and 2017, respectively	4	4
Prior	1	1
Revolving Finance Receivables	4	5
Financing Receivable, before Allowance for Credit Loss	90	101
Customer | North America | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	9	7
2021 and 2020, respectively	15	8
2020 and 2019, respectively	7	5
2019 and 2018, respectively	3	3
2018 and 2017, respectively	1	1
Prior	0	1
Revolving Finance Receivables	3	5
Financing Receivable, before Allowance for Credit Loss	38	30
Customer | North America | 91+ days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	11	9
2021 and 2020, respectively	16	17
2020 and 2019, respectively	12	12
2019 and 2018, respectively	6	13
2018 and 2017, respectively	4	5
Prior	3	4
Revolving Finance Receivables	4	5
Financing Receivable, before Allowance for Credit Loss	56	65
Customer | EAME | Current
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	1,270	1,499
2021 and 2020, respectively	953	836
2020 and 2019, respectively	477	577
2019 and 2018, respectively	280	352
2018 and 2017, respectively	155	140
Prior	68	26
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	3,203	3,430
Customer | EAME | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	10	5
2021 and 2020, respectively	12	4
2020 and 2019, respectively	7	3
2019 and 2018, respectively	1	1
2018 and 2017, respectively	1	1
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	31	14
Customer | EAME | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	8	3
2021 and 2020, respectively	4	3
2020 and 2019, respectively	3	3
2019 and 2018, respectively	1	1
2018 and 2017, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	16	10
Customer | EAME | 91+ days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	6	3
2021 and 2020, respectively	25	11
2020 and 2019, respectively	16	2
2019 and 2018, respectively	4	2
2018 and 2017, respectively	1	0
Prior	1	2
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	53	20
Customer | Asia/Pacific | Current
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	1,174	1,456
2021 and 2020, respectively	805	943
2020 and 2019, respectively	393	420
2019 and 2018, respectively	124	119
2018 and 2017, respectively	37	40
Prior	5	3
Revolving Finance Receivables	40	36
Financing Receivable, before Allowance for Credit Loss	2,578	3,017
Customer | Asia/Pacific | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	10	10
2021 and 2020, respectively	12	14
2020 and 2019, respectively	8	10
2019 and 2018, respectively	1	2
2018 and 2017, respectively	1	0
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	32	36
Customer | Asia/Pacific | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	2	3
2021 and 2020, respectively	5	7
2020 and 2019, respectively	4	4
2019 and 2018, respectively	2	1
2018 and 2017, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	13	15
Customer | Asia/Pacific | 91+ days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	2	2
2021 and 2020, respectively	6	10
2020 and 2019, respectively	6	10
2019 and 2018, respectively	4	3
2018 and 2017, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	18	25
Customer | Mining | Current
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	875	944
2021 and 2020, respectively	627	356
2020 and 2019, respectively	227	332
2019 and 2018, respectively	193	194
2018 and 2017, respectively	94	36
Prior	108	161
Revolving Finance Receivables	80	36
Financing Receivable, before Allowance for Credit Loss	2,204	2,059
Customer | Mining | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	0	6
2021 and 2020, respectively	1	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
2018 and 2017, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	1	6
Customer | Mining | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	0	1
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
2018 and 2017, respectively	0	4
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	0	5
Customer | Mining | 91+ days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	0	0
2021 and 2020, respectively	0	1
2020 and 2019, respectively	0	8
2019 and 2018, respectively	0	9
2018 and 2017, respectively	0	3
Prior	1	1
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	1	22
Customer | Latin America | Current
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	770	617
2021 and 2020, respectively	400	299
2020 and 2019, respectively	150	160
2019 and 2018, respectively	69	70
2018 and 2017, respectively	26	17
Prior	20	18
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	1,435	1,181
Customer | Latin America | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	7	4
2021 and 2020, respectively	8	7
2020 and 2019, respectively	4	3
2019 and 2018, respectively	2	3
2018 and 2017, respectively	0	1
Prior	1	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	22	18
Customer | Latin America | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	2	3
2021 and 2020, respectively	5	3
2020 and 2019, respectively	1	1
2019 and 2018, respectively	1	1
2018 and 2017, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	9	8
Customer | Latin America | 91+ days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	2	4
2021 and 2020, respectively	13	9
2020 and 2019, respectively	11	9
2019 and 2018, respectively	2	7
2018 and 2017, respectively	1	7
Prior	0	14
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	29	50
Customer | Caterpillar Power Finance | Current
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	82	120
2021 and 2020, respectively	87	152
2020 and 2019, respectively	146	119
2019 and 2018, respectively	51	70
2018 and 2017, respectively	18	180
Prior	161	104
Revolving Finance Receivables	125	101
Financing Receivable, before Allowance for Credit Loss	670	846
Customer | Caterpillar Power Finance | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	0	0
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
2018 and 2017, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	0	0
Customer | Caterpillar Power Finance | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	0	0
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
2018 and 2017, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	0	0
Customer | Caterpillar Power Finance | 91+ days past due
Financing Receivable, Credit Quality Indicator
2022 and 2021, respectively	0	0
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
2018 and 2017, respectively	0	0
Prior	5	44
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	5	44
Dealer
Financing Receivable, Credit Quality Indicator
Financing Receivable, before Allowance for Credit Loss	2,137	$ 2,210
Dealer | Total past due
Financing Receivable, Credit Quality Indicator
2018 and 2017, respectively	78
Prior	$ 62

Finance Receivables (Details 5)

Finance Receivables (Details 5) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Period after which unpaid installments are considered as past due	30 days
Period after which collection of future income is considered as not probable	120 days
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	$ 26,787	$ 27,514
Caterpillar Purchased Receivables
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	4,297	4,462
Caterpillar Purchased Receivables | 31-60 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	28	10
Caterpillar Purchased Receivables | 61-90 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	11	7
Caterpillar Purchased Receivables | 91+ days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	22	7
Caterpillar Purchased Receivables | Total Past Due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	61	24
Caterpillar Purchased Receivables | Current
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	4,236	4,438
Caterpillar Purchased Receivables | North America
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	2,480	2,518
Caterpillar Purchased Receivables | North America | 31-60 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	11	8
Caterpillar Purchased Receivables | North America | 61-90 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	7	6
Caterpillar Purchased Receivables | North America | 91+ days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	4	5
Caterpillar Purchased Receivables | North America | Total Past Due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	22	19
Caterpillar Purchased Receivables | North America | Current
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	2,458	2,499
Caterpillar Purchased Receivables | EAME
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	815	846
Caterpillar Purchased Receivables | EAME | 31-60 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	1	1
Caterpillar Purchased Receivables | EAME | 61-90 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	0	0
Caterpillar Purchased Receivables | EAME | 91+ days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	2	1
Caterpillar Purchased Receivables | EAME | Total Past Due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	3	2
Caterpillar Purchased Receivables | EAME | Current
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	812	844
Caterpillar Purchased Receivables | Asia/Pacific
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	565	621
Caterpillar Purchased Receivables | Asia/Pacific | 31-60 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	6	0
Caterpillar Purchased Receivables | Asia/Pacific | 61-90 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	2	0
Caterpillar Purchased Receivables | Asia/Pacific | 91+ days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	2	1
Caterpillar Purchased Receivables | Asia/Pacific | Total Past Due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	10	1
Caterpillar Purchased Receivables | Asia/Pacific | Current
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	555	620
Caterpillar Purchased Receivables | Latin America
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	431	474
Caterpillar Purchased Receivables | Latin America | 31-60 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	9	1
Caterpillar Purchased Receivables | Latin America | 61-90 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	2	1
Caterpillar Purchased Receivables | Latin America | 91+ days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	14	0
Caterpillar Purchased Receivables | Latin America | Total Past Due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	25	2
Caterpillar Purchased Receivables | Latin America | Current
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	406	472
Caterpillar Purchased Receivables | Caterpillar Power Finance
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	6	3
Caterpillar Purchased Receivables | Caterpillar Power Finance | 31-60 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	1	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | 61-90 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	0	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | 91+ days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	0	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | Total Past Due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	1	0
Caterpillar Purchased Receivables | Caterpillar Power Finance | Current
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	5	3
Dealer
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	2,137	$ 2,210
Dealer | Total past due
Financing Receivable, Past Due
Prior	62
2018 and 2017, respectively	$ 78

Finance Receivables (Details 6)

Finance Receivables (Details 6) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Customer
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	$ 156	$ 184
Amortized Cost, Non-accrual Without an Allowance	16	26
Amortized Cost, 91+ Still Accruing	28	36
Interest income recognized for finance receivables on non-accrual status	17	12	$ 12
Customer | North America
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	52	47
Amortized Cost, Non-accrual Without an Allowance	4	9
Amortized Cost, 91+ Still Accruing	11	12
Customer | EAME
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	43	18
Amortized Cost, Non-accrual Without an Allowance	0	1
Amortized Cost, 91+ Still Accruing	10	2
Customer | Asia/Pacific
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	11	19
Amortized Cost, Non-accrual Without an Allowance	0	0
Amortized Cost, 91+ Still Accruing	7	7
Customer | Mining
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	0	8
Amortized Cost, Non-accrual Without an Allowance	1	1
Amortized Cost, 91+ Still Accruing	0	14
Customer | Latin America
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	45	52
Amortized Cost, Non-accrual Without an Allowance	0	4
Amortized Cost, 91+ Still Accruing	0	1
Customer | Caterpillar Power Finance
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	5	40
Amortized Cost, Non-accrual Without an Allowance	11	11
Amortized Cost, 91+ Still Accruing	0	0
Dealer | Latin America
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	$ 62	$ 78

Finance Receivables (Details 7)

Finance Receivables (Details 7) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) contracts	Dec. 31, 2021 USD ($) contracts	Dec. 31, 2020 USD ($) contracts
Caterpillar Purchased Receivables
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0
Dealer
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0	0
Customer
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	$ 65	$ 62	$ 220
Post-TDR Amortized Cost	64	52	220
TDRs with a payment default which had been modified within twelve months prior to the default date
Post-TDR Amortized Cost	5	29	49
Customer | North America
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	6	6	13
Post-TDR Amortized Cost	6	6	13
TDRs with a payment default which had been modified within twelve months prior to the default date
Post-TDR Amortized Cost	0	1	8
Customer | EAME
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	1	3	0
Post-TDR Amortized Cost	1	3	0
TDRs with a payment default which had been modified within twelve months prior to the default date
Post-TDR Amortized Cost	0	0	10
Customer | Asia/Pacific
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	0	4	12
Post-TDR Amortized Cost	0	4	12
TDRs with a payment default which had been modified within twelve months prior to the default date
Post-TDR Amortized Cost	0	6	2
Customer | Mining
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	16	11	35
Post-TDR Amortized Cost	16	5	35
TDRs with a payment default which had been modified within twelve months prior to the default date
Post-TDR Amortized Cost	5	0	10
Customer | Latin America
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	22	12	45
Post-TDR Amortized Cost	22	12	45
TDRs with a payment default which had been modified within twelve months prior to the default date
Post-TDR Amortized Cost	0	15	1
Customer | Caterpillar Power Finance
Finance receivables modified as TDRs
Pre-TDR Amortized Cost	20	26	115
Post-TDR Amortized Cost	19	22	115
TDRs with a payment default which had been modified within twelve months prior to the default date
Post-TDR Amortized Cost	$ 0	$ 7	$ 18

Finance Receivables (Details 8)

Finance Receivables (Details 8)	12 Months Ended
	Dec. 31, 2022 Rate
North America
Concentration Risk
Concentration, percent of total portfolio	60%
Construction related industries
Concentration Risk
Concentration, percent of total portfolio	40%

Equipment on Operating Leases_2

Equipment on Operating Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment
Equipment on operating leases, at cost	$ 4,321	$ 4,589
Less: Accumulated depreciation	(1,410)	(1,466)
Equipment on operating leases, net	2,911	3,123
Carrying amount of residual assets covered by residual value guarantees and subject to operating leases	3	3
Payments due for operating leases
2023	680
2024	446
2025	254
2026	110
2027	30
Thereafter	8
Total	1,528
Operating lease revenue	$ 888	$ 942	$ 965

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Other Assets [Abstract]
Customer and other miscellaneous receivables	$ 419	$ 400
Collateral held for resale, at net realizable value	102	168
Deferred and refundable income taxes	148	126
Property and equipment, net	132	133
Other	454	261
Total Other assets	$ 1,255	$ 1,088

Credit Commitments (Details)

Credit Commitments (Details) $ in Millions	6 Months Ended	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Line of Credit Facility
Number of global credit facilities	3	3
Caterpillar's consolidated net worth	$ 15,930	$ 15,930
Minimum net worth required under the Credit Facility	$ 9,000	$ 9,000
Covenant interest coverage ratio, Numerator		2.36
Covenant interest coverage ratio, Denominator		1
Minimum interest coverage ratio, required by the Credit Facility, Numerator		1.15
Minimum interest coverage ratio, required by the Credit Facility, Denominator		1
Leverage Ratio, Numerator	7.05	7.21
Leverage Ratio, Denominator	1	1
Maximum Leverage Ratio, Permissible Under Credit Facility, Numerator		10
Maximum Leverage Ratio, Permissible Under Credit Facility, Denominator		1
Amount available	$ 10,500	$ 10,500
Maximum borrowing capacity from Caterpillar, Variable lending agreements	2,380	2,380
Maximum lending capacity to Caterpillar, Variable lending agreements	1,750	$ 1,750
Term lending agreements, maximum remaining maturity		10 years
Notes receivable from Caterpillar	482	$ 482	$ 389	$ 356
Notes payable to Caterpillar	23	23	22	$ 1,022
Revolving credit facilities
Line of Credit Facility
Amount outstanding	0	0
Revolving credit facilities | Cat Financial
Line of Credit Facility
Amount available	7,750	7,750
364-day facility
Line of Credit Facility
Amount available	3,150	3,150
364-day facility | Cat Financial
Line of Credit Facility
Amount available	2,330	2,330
Three-year facility
Line of Credit Facility
Amount available	2,730	2,730
Three-year facility | Cat Financial
Line of Credit Facility
Amount available	2,010	2,010
Five-year facility
Line of Credit Facility
Amount available	4,620	4,620
Five-year facility | Cat Financial
Line of Credit Facility
Amount available	3,410	3,410
Credit lines with banks
Line of Credit Facility
Amount available	3,490	3,490
Amount outstanding	$ 979	$ 979	$ 559

Short-Term Borrowings (Details)

Short-Term Borrowings (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Short-term Debt
Short-term borrowings, Balance	$ 5,954	$ 5,395
Commercial paper, net
Short-term Debt
Short-term borrowings, Balance	$ 5,455	$ 4,896
Short-term borrowings, Avg. Rate	4.20%	0.10%
Bank borrowings and other
Short-term Debt
Short-term borrowings, Balance	$ 234	$ 213
Short-term borrowings, Avg. Rate	11.40%	4.50%
Variable denomination floating rate demand notes
Short-term Debt
Short-term borrowings, Balance	$ 265	$ 286
Short-term borrowings, Avg. Rate	3.40%	0.20%

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jan. 06, 2023	Dec. 31, 2021
Debt Instrument
Medium-term notes, maximum remaining maturity	5 years
Fair value adjustments	$ (112)		$ 3
Long-term debt	21,418		22,594
Long-term debt outstanding maturity:
2023	5,202
2024	7,398
2025	4,511
2026	2,469
2027	1,948
Medium-term notes, callable	14
Face amount of medium-term notes excluded from current maturities	900
Medium-term notes
Debt Instrument
Long-term debt issued	6,010
Long-term debt issued at fixed interest rates	5,210
Long-term debt issued at floating interest rates	800
Long term debt, gross	20,821		22,283
Unamortized discount and debt issuance costs	(37)		(40)
Fair value adjustments	(112)		3
Long-term debt	$ 20,672		$ 22,246
Long-term debt, Avg. Rate	2.20%		1.60%
Medium-term notes | Subsequent Event
Debt Instrument
Long term debt, gross		$ 900
Bank borrowings and other
Debt Instrument
Long-term debt	$ 746		$ 348
Long-term debt, Avg. Rate	5.30%		4.10%

Derivative Financial Instrume_3

Derivative Financial Instruments and Risk Management (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Derivatives, Fair Value
Asset Fair Value	$ 417	$ 208
Derivative Liability, Subject to Master Netting Arrangement, before Offset	(199)	(83)
Designated as Hedging Instrument [Member] | Other Assets [Member]
Derivatives, Fair Value
Asset Fair Value	392	180
Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Derivatives, Fair Value
Derivative Liability, Subject to Master Netting Arrangement, before Offset	(157)	(47)
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Assets [Member]
Derivatives, Fair Value
Asset Fair Value	305	142
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Liabilities [Member]
Derivatives, Fair Value
Derivative Liability, Subject to Master Netting Arrangement, before Offset	(44)	(32)
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Assets [Member]
Derivatives, Fair Value
Asset Fair Value	87	38
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Liabilities [Member]
Derivatives, Fair Value
Derivative Liability, Subject to Master Netting Arrangement, before Offset	(113)	(15)
Not Designated as Hedging Instrument [Member] | Other Assets [Member]
Derivatives, Fair Value
Asset Fair Value	25	28
Not Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Derivatives, Fair Value
Derivative Liability, Subject to Master Netting Arrangement, before Offset	(42)	(36)
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Assets [Member]
Derivatives, Fair Value
Asset Fair Value	25	28
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Liabilities [Member]
Derivatives, Fair Value
Derivative Liability, Subject to Master Netting Arrangement, before Offset	$ (42)	$ (36)

Derivative Financial Instrume_4

Derivative Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Derivative
Derivative instruments, notional amount	$ 13,180	$ 13,850

Derivative Financial Instrume_5

Derivative Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments, Gain (Loss)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax	$ 421	$ 209	$ (153)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	(384)	(166)	184
Not Designated as Hedging Instrument [Member] | Fair Value Hedges
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(118)	113	(97)
Not Designated as Hedging Instrument [Member] | Fair Value Hedges | Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(111)	89	(112)
Not Designated as Hedging Instrument [Member] | Fair Value Hedges | Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(7)	24	15
Designated as Hedging Instrument [Member] | Cash flow hedges
Derivative Instruments, Gain (Loss)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax	421	209	(153)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	384	166	(184)
Designated as Hedging Instrument [Member] | Cash flow hedges | Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax	310	190	(130)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	370	194	(132)
Designated as Hedging Instrument [Member] | Cash flow hedges | Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax	111	19	(23)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	$ 14	$ (28)	$ (52)

Derivative Financial Instrume_6

Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Derivatives, Fair Value
Carrying Value of the Hedged Liabilities	$ 2,091	$ 2,059
Cumulative amount of fair value hedging adjustments related to our fixed-to-floating interest rate contracts included in the carrying amount of Long-term debt	(112)	3
Current maturities of long-term debt
Derivatives, Fair Value
Carrying Value of the Hedged Liabilities	0	755
Cumulative amount of fair value hedging adjustments related to our fixed-to-floating interest rate contracts included in the carrying amount of Long-term debt	0	5
Long-term debt
Derivatives, Fair Value
Carrying Value of the Hedged Liabilities	2,091	1,304
Cumulative amount of fair value hedging adjustments related to our fixed-to-floating interest rate contracts included in the carrying amount of Long-term debt	$ (112)	$ (2)

Derivative Financial Instrume_7

Derivative Financial Instruments and Risk Management (Details 5) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($)
Derivative
Deferred net gains, net of tax, included in equity, related to cash flow hedges, expected to be reclassified to earnings over the next twelve months	$ (39)

Derivative Financial Instrume_8

Derivative Financial Instruments and Risk Management (Details 6) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Asset, Subject to Master Netting Arrangement, before Offset	$ 417	$ 208
Assets, Financial instruments not offset	(108)	(67)
Assets, Net amount	309	141
Liability Fair Value	(199)	(83)
Liabilities, Financial instruments not offset	108	67
Liabilities, Net amount	$ (91)	$ (16)

Derivative Financial Instrume_9

Derivative Financial Instruments and Risk Management (Details 7) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Concentration Risk
Derivatives, Maximum exposure to credit loss	$ 417	$ 208

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of year	$ (762)	$ (551)	$ (777)
Gains (losses) on foreign currency translation	(276)	(169)	179
Less: Tax provision/(benefit)	30	42	(47)
Net gains (losses) on foreign currency translation	(306)	(211)	226
Other comprehensive income (loss), net of tax	(306)	(211)	226
Balance at end of year	(1,068)	(762)	(551)
Balance at beginning of year	(12)	(44)	(68)
Gains (losses) deferred	421	209	(153)
Less: Tax provision/(benefit)	97	24	(33)
Net gains (losses) deferred	324	185	(120)
(Gains) losses reclassified to earnings	(384)	(166)	184
Less: Tax (provision)/benefit	(93)	(13)	40
Net (gains) losses reclassified to earnings	(291)	(153)	144
Other comprehensive income (loss), net of tax	33	32	24
Balance at end of year	21	(12)	(44)
Total Accumulated other comprehensive income (loss) at end of year	$ (1,047)	$ (774)	$ (595)

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Guarantor Obligations
Guarantees, maximum potential amount of future payments	$ 26	$ 36
Assets	31,957	32,387	$ 31,991
Liabilities	28,994	29,406
Unused commitments to extend credit to Caterpillar dealers	11,390
Unused commitments to extend credit to customers	888
Variable Interest Entity, Primary Beneficiary
Guarantor Obligations
Assets	971	888
Liabilities	970	888
Maximum
Guarantor Obligations
Related recorded liability	$ 1	$ 1

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of statutory rate to effective income tax rate
Taxes computed at U.S. statutory rates	$ 154	$ 146	$ 91
U.S. statutory tax rate (as a percent)	21%	21%	21%
(Decreases) increases in taxes resulting from:
State income tax, net of federal Tax	$ 4	$ 3	$ (1)
State Income Tax, net of Federal Tax (as a percent)	0.50%	0.40%	(0.20%)
Non-U.S. subsidiaries taxed at other than the U.S. rate	$ 19	$ 22	$ 29
Non-U.S. Subsidiaries taxed at other than the U.S. rate (as a percent)	2.60%	3.20%	6.70%
Valuation allowances	$ 15	$ 5	$ 10
Valuation allowances (as a percent)	2.10%	0.70%	2.30%
Other, net	$ (3)	$ 2	$ (3)
Other, net (as a percent)	(0.40%)	0.30%	(0.70%)
Provision for income taxes	$ 189	$ 178	$ 126
Provision for income taxes, Effective Income Tax Rate (as a percent)	25.80%	25.60%	29.10%
Valuation allowances	$ 15	$ 5	$ 10
Undistributed Earnings of Foreign Subsidiaries	$ 4,000

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Components of Profit before income taxes
U.S.	$ 439	$ 288	$ 99
Non-U.S.	292	407	335
Profit before income taxes	731	695	434
Current income tax provision:
U.S.	116	101	46
Non-U.S.	95	162	80
State (U.S.)	5	5	1
Current income tax provision	216	268	127
Deferred income tax provision (benefit):
U.S.	(36)	(56)	(45)
Non-U.S.	8	(33)	46
State (U.S.)	1	(1)	(2)
Deferred income tax provision	(27)	(90)	(1)
Total Provision for income taxes	189	178	$ 126
Income taxes payable	$ 275	$ 279

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets
Other assets	$ 115	$ 107
Deferred tax liabilities
Other liabilities	610	592
Deferred income taxes, net	$ (495)	$ (485)

Income Taxes (Details 4)

Income Taxes (Details 4) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Deferred income tax assets:
Allowance for credit losses	$ 97	$ 90
Tax carryforwards	93	83
Deferred Tax Assets, Revenue timing differences	20	38
Deferred Tax Assets, Other	28	33
Deferred tax assets, gross	238	244
Components of Deferred Tax Liabilities [Abstract]
Deferred Tax Liabilities, Property, Plant and Equipment	(461)	(501)
Deferred Tax Liabilities, Undistributed Foreign Earnings	(219)	(189)
Deferred Tax Liabilities, Gross	(680)	(690)
Valuation allowance for deferred income tax assets	(53)	(39)
Deferred income taxes, net	$ (495)	$ (485)

Income Taxes (Details 5)

Income Taxes (Details 5) $ in Millions	Dec. 31, 2022 USD ($)
U.S. state taxing jurisdictions
Net operating loss (NOL) carryforwards
Gross deferred income tax asset associated with NOL carryforwards	$ 5
NOL carryforwards, Valuation allowance	1
U.S. state taxing jurisdictions | U. S. State Net Operating Losses Expiring In The Next Eighteen Years
Net operating loss (NOL) carryforwards
NOL carryforwards	73
Non-U.S. taxing jurisdictions
Net operating loss (NOL) carryforwards
NOL carryforwards	363
NOL carryforwards, Valuation allowance	51
Non-U.S. taxing jurisdictions | Expiration Date 2026-2032 [Member]
Net operating loss (NOL) carryforwards
NOL carryforwards	41
Foreign Tax Authority, Specific Entity
Net operating loss (NOL) carryforwards
NOL carryforwards, Valuation allowance	23
Deferred Tax Assets, Tax Deferred Expense	$ 36

Income Taxes (Details 6)

Income Taxes (Details 6) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of unrecognized income tax benefits
Unrecognized tax benefits, beginning of year	$ 131	$ 119	$ 119
Additions for income tax positions related to current year	0	2	0
Additions for income tax positions related to prior year	0	10	0
Reductions for income tax positions related to settlements	4	0	0
Unrecognized tax benefits, end of year	127	131	119
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	127	131	119
Recognized interest and penalties	(1)
Accrued interest and penalties	$ 2	1
Maximum
Reconciliation of unrecognized income tax benefits
Recognized interest and penalties		$ 1	$ (1)

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Recurring basis | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivative financial instruments, net asset (liability) position	$ 218	$ 125

Fair Value Measurements (Deta_2

Fair Value Measurements (Details 2) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Loans carried at fair value	$ 68	$ 100

Fair Value Measurements (Deta_3

Fair Value Measurements (Details 3) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Level 2
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Long-term debt	$ 20,686	$ 22,797
Fair Value, Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	18,448	19,047
Carrying  Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	19,085	19,068
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Long-term debt	21,418	22,594
Carrying amount of assets excluded from measurement at fair value
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance leases and failed sale leasebacks, Carrying Value	$ 7,360	$ 8,110

Transactions with Related Par_3

Transactions with Related Parties (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction
Dividend paid to Caterpillar	$ 275	$ 850	$ 300
Maximum borrowing capacity from Caterpillar, Variable lending agreements	2,380
Maximum lending capacity to Caterpillar, Variable lending agreements	1,750
Payable to Caterpillar - borrowings	23	22	1,022
Payable to Caterpillar - other	101	73	65
Notes receivable from Caterpillar	482	389	356
Other receivables from Caterpillar	419	400
Revenue earned on purchased receivables	417	301	308
Financing Receivable, before Allowance for Credit Loss	26,787	27,514
Revenues	2,734	2,562	2,550
Depreciation on equipment leased to others	718	755	758
Caterpillar
Related Party Transaction
Dividend paid to Caterpillar	275	850	300
Maximum borrowing capacity from Caterpillar, Variable lending agreements	2,380
Maximum lending capacity to Caterpillar, Variable lending agreements	1,750
Other receivables from Caterpillar	133	70	65
Interest expense, Caterpillar	1	0	2
Interest income on Notes Receivable with Caterpillar	17	14	14
Purchases of receivables from Caterpillar	47,158	40,140	32,937
Revenue earned on purchased receivables	417	301	308
Marketing program payments received	339	351	353
Total portfolio, which includes Finance receivables, net and Equipment on operating lease, net	143	147
Revenues	24	25	22
Depreciation on equipment leased to others	17	17	15
Amount of our portfolio that is subject to guarantees by Caterpillar	448	568
Operational and administrative support charges reimbursed to Caterpillar	52	52	46
Administrative support services to certain Caterpillar subsidiaries reimbursed by Caterpillar	13	12	10
Caterpillar Purchased Receivables
Related Party Transaction
Financing Receivable, before Allowance for Credit Loss	$ 4,297	$ 4,462	$ 3,646

Segment and Geographic Inform_3

Segment and Geographic Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information
External Revenues	$ 2,734	$ 2,562	$ 2,550
Profit before income taxes	731	695	434
Interest Expense	566	455	591
Depreciation on equipment leased to others	718	755	758
Provision for credit losses	81	70	266
Assets	31,957	32,387	31,991
Capital expenditures	1,139	1,216	1,100
Operating Segments
Segment Reporting Information
External Revenues	2,711	2,558	2,544
Profit before income taxes	881	825	537
Interest Expense	608	473	601
Depreciation on equipment leased to others	718	755	758
Provision for credit losses	81	70	267
Assets	30,257	31,098	30,819
Capital expenditures	1,130	1,208	1,089
Unallocated
Segment Reporting Information
External Revenues	35	15	25
Profit before income taxes	(312)	(295)	(287)
Interest Expense	204	179	207
Depreciation on equipment leased to others	0	0	0
Provision for credit losses	0	0	(1)
Assets	1,628	1,458	1,576
Capital expenditures	9	8	11
Segment Reconciling Items | Timing
Segment Reporting Information
External Revenues	(12)	(11)	(19)
Profit before income taxes	4	6	(3)
Interest Expense	0	0	0
Depreciation on equipment leased to others	0	0	0
Provision for credit losses	0	0	0
Assets	18	15	12
Capital expenditures	0	0	0
Segment Reconciling Items | Methodology
Segment Reporting Information
External Revenues	0	0	0
Profit before income taxes	158	159	187
Interest Expense	(246)	(197)	(217)
Depreciation on equipment leased to others	0	0	0
Provision for credit losses	0	0	0
Assets	278	18	(152)
Capital expenditures	0	0	0
Inter-segment Eliminations
Segment Reporting Information
External Revenues	0	0	0
Profit before income taxes	0	0	0
Interest Expense	0	0	0
Depreciation on equipment leased to others	0	0	0
Provision for credit losses	0	0	0
Assets	(224)	(202)	(264)
Capital expenditures	0	0	0
North America | Operating Segments
Segment Reporting Information
External Revenues	1,512	1,401	1,401
Profit before income taxes	550	419	312
Interest Expense	263	250	322
Depreciation on equipment leased to others	503	542	538
Provision for credit losses	25	15	69
Assets	15,229	15,755	14,749
Capital expenditures	862	888	864
EAME | Operating Segments
Segment Reporting Information
External Revenues	285	274	271
Profit before income taxes	12	73	44
Interest Expense	79	21	37
Depreciation on equipment leased to others	55	60	62
Provision for credit losses	49	30	50
Assets	5,067	5,192	4,981
Capital expenditures	117	92	37
Asia/Pacific | Operating Segments
Segment Reporting Information
External Revenues	283	340	338
Profit before income taxes	134	170	145
Interest Expense	73	84	94
Depreciation on equipment leased to others	5	7	9
Provision for credit losses	6	9	38
Assets	3,921	4,117	4,585
Capital expenditures	6	10	7
Latin America | Operating Segments
Segment Reporting Information
External Revenues	284	202	201
Profit before income taxes	85	24	41
Interest Expense	136	68	70
Depreciation on equipment leased to others	10	8	11
Provision for credit losses	7	52	33
Assets	2,636	2,405	2,621
Capital expenditures	25	12	7
Mining | Operating Segments
Segment Reporting Information
External Revenues	294	289	279
Profit before income taxes	63	98	33
Interest Expense	42	37	53
Depreciation on equipment leased to others	143	136	137
Provision for credit losses	9	(15)	27
Assets	2,700	2,672	2,575
Capital expenditures	120	206	151
Caterpillar Power Finance | Operating Segments
Segment Reporting Information
External Revenues	53	52	54
Profit before income taxes	37	41	(38)
Interest Expense	15	13	25
Depreciation on equipment leased to others	2	2	1
Provision for credit losses	(15)	(21)	50
Assets	704	957	1,308
Capital expenditures	$ 0	$ 0	$ 23

Segment and Geographic Inform_4

Segment and Geographic Information (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets
External Revenues	$ 2,734	$ 2,562	$ 2,550
Equipment on operating leases, net and property   and equipment, net (included in Other assets)	3,043	3,256
Inside U.S.
Revenues from External Customers and Long-Lived Assets
External Revenues	1,551	1,422	1,443
Equipment on operating leases, net and property   and equipment, net (included in Other assets)	2,036	2,179
Inside Canada
Revenues from External Customers and Long-Lived Assets
Equipment on operating leases, net and property   and equipment, net (included in Other assets)	507	545
All other
Revenues from External Customers and Long-Lived Assets
External Revenues	1,183	1,140	$ 1,107
Equipment on operating leases, net and property   and equipment, net (included in Other assets)	$ 500	$ 532