Caterpillar Financial Services 10-K 16 Feb 24 2023 FY Annual report Financial data

Cover Page

Cover Page - USD ($)	12 Months Ended
	Dec. 31, 2023	Feb. 16, 2024
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
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	2023
Amendment Flag	false
Document Financial Statement Error Correction [Flag]	false
ICFR Auditor Attestation Flag	true

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2023
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, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenues:
Retail finance	$ 1,464	$ 1,229	$ 1,197
Operating lease	905	888	942
Wholesale finance	684	441	314
Other, net	195	176	109
Total revenues	3,248	2,734	2,562
Expenses:
Interest	1,033	566	455
Depreciation on equipment leased to others	713	718	755
General, operating and administrative	588	531	528
Provision for credit losses	49	81	70
Other	33	24	36
Total expenses	2,416	1,920	1,844
Other income (expense)	(72)	(83)	(23)
Profit before income taxes	760	731	695
Provision for income taxes	192	189	178
Profit of consolidated companies	568	542	517
Less:  Profit attributable to noncontrolling interests	5	7	12
Profit attributable to Caterpillar Financial Services Corporation	$ 563	$ 535	$ 505

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Profit of consolidated companies	$ 568	$ 542	$ 517
Other comprehensive income (loss), net of tax (Note 9):
Foreign currency translation	67	(318)	(209)
Derivative financial instruments	(3)	33	32
Total Other comprehensive income (loss), net of tax	64	(285)	(177)
Comprehensive income (loss)	632	257	340
Less: Comprehensive income (loss) attributable to noncontrolling interests	0	(5)	14
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation	$ 632	$ 262	$ 326

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Assets:
Cash and cash equivalents	$ 727	$ 868
Finance receivables, net of Allowance for credit losses of $331 and $346	27,746	26,441
Equipment on operating leases, net	3,014	2,911
Other assets	1,098	1,255
Total assets	33,112	31,957
Liabilities and shareholder’s equity:
Payable to dealers and others	157	163
Payable to Caterpillar – borrowings and other	137	124
Accrued expenses	511	380
Short-term borrowings	4,643	5,954
Current maturities of long-term debt	7,719	5,202
Long-term debt	15,893	16,216
Other liabilities	882	955
Total liabilities	29,942	28,994
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	3,327	3,109
Accumulated other comprehensive income (loss)	(978)	(1,047)
Noncontrolling interests	74	154
Total shareholder’s equity	3,170	2,963
Total liabilities and shareholder’s equity	33,112	31,957
Caterpillar
Assets:
Notes receivable from Caterpillar	527	482
Liabilities and shareholder’s equity:
Payable to dealers and others	$ 113	$ 101

Consolidated Statements of Fi_2

Consolidated Statements of Financial Position (Parentheticals) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 331	$ 346
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
Balance at Dec. 31, 2020	$ 3,491	$ 745	$ 2	$ 3,167	$ (595)	$ 172
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	517			505		12
Dividend paid to Caterpillar	(850)			(823)		(27)
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	2,849	(774)	159
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	542			535		7
Dividend paid to Caterpillar	(275)			(275)
Foreign currency translation, net of tax	(318)				(306)	(12)
Derivative financial instruments, net of tax	33				33
Balance at Dec. 31, 2022	2,963	745	2	3,109	(1,047)	154
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies	568			563		5
Dividend paid to Caterpillar	(425)			(345)		(80)
Foreign currency translation, net of tax	67				72	(5)
Derivative financial instruments, net of tax	(3)				(3)
Balance at Dec. 31, 2023	$ 3,170	$ 745	$ 2	$ 3,327	$ (978)	$ 74

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Profit of consolidated companies	$ 568	$ 542	$ 517
Adjustments for non-cash items:
Depreciation and amortization	728	732	770
Accretion of Caterpillar purchased receivable revenue	(617)	(417)	(301)
Provision for credit losses	49	81	70
Other, net	(25)	130	90
Changes in assets and liabilities:
Other assets	76	148	59
Payable to dealers and others	29	38	32
Accrued expenses	77	20	(86)
Other payables with Caterpillar	12	27	8
Other liabilities	(93)	(46)	30
Net cash provided by operating activities	804	1,255	1,189
Cash flows from investing activities:
Expenditures for equipment on operating leases	(1,277)	(1,121)	(1,202)
Capital expenditures - excluding equipment on operating leases	(20)	(18)	(14)
Proceeds from disposals of equipment	668	756	1,041
Additions to finance receivables	(17,250)	(14,217)	(13,836)
Collections of finance receivables	15,613	14,061	13,342
Net changes in Caterpillar purchased receivables	1,080	492	(609)
Proceeds from sales of receivables	63	57	51
Net change in variable lending to Caterpillar	(77)	(2)	13
Additions to other notes receivable from Caterpillar	(19)	(139)	(115)
Collections of other notes receivable from Caterpillar	52	46	69
Settlements of undesignated derivatives	(10)	(87)	(3)
Other, net	0	0	1
Net cash provided by (used for) investing activities	(1,177)	(172)	(1,262)
Cash flows from financing activities:
Net change in variable lending from Caterpillar	1	0	(1,000)
Proceeds from debt issued (original maturities greater than three months)	8,277	6,674	6,495
Payments on debt issued (original maturities greater than three months)	(6,232)	(7,703)	(7,877)
Short-term borrowings, net (original maturities three months or less)	(1,342)	540	3,489
Dividend paid to Caterpillar	(425)	(275)	(850)
Net cash provided by (used for) financing activities	279	(764)	257
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(47)	(63)	5
Increase (decrease) in cash, cash equivalents and restricted cash	(141)	256	189
Cash, cash equivalents and restricted cash at beginning of year	870	614	425
Cash, cash equivalents and restricted cash at end of year	729	870	614
Cash paid for interest	960	544	472
Cash paid for taxes, net	$ 210	254	143
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	$ 2	$ 4

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Nature of Operations Caterpillar Financial Services Corporation was organized in 1981 in the State of Delaware (together with its subsidiaries, “Cat Financial,” “the Company,” “we” or “our”). We are a wholly-owned finance subsidiary of Caterpillar Inc. (together with its other subsidiaries, “Caterpillar” or “Cat”). We provide retail and wholesale financing alternatives to customers and dealers around the world for Caterpillar products and services, as well as financing for power generation facilities that, in most cases, incorporate Caterpillar products. Retail financing is primarily comprised of installment sale contracts and other equipment-related loans, working capital loans, finance leases, operating leases and revolving charge accounts. Wholesale financing to Caterpillar dealers consists primarily of inventory and rental fleet financing. In addition, we purchase short-term wholesale trade receivables from Caterpillar. The various financing plans offered by Cat Financial are designed to support sales of Caterpillar products and generate financing income for Cat Financial. We conduct a significant portion of our activities in North America with additional offices and subsidiaries in Latin America, Asia/Pacific, Europe and Africa. B. Basis of Presentation The accompanying consolidated financial statements include the accounts of Cat Financial and consolidated variable interest entities (VIEs). 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. In the current period we identified a misclassification between Noncontrolling interests and Retained earnings related to certain dividends we paid to Caterpillar in 2019 and 2021. We have determined that the impact was not material to any previously filed financial statements and have revised the reported balances to correct for the misclassification. The impact of the revisions was a $52 million increase in Retained earnings and offsetting $52 million decrease in Noncontrolling interests as of December 31, 2021 and 2022, and a $25 million increase in Retained earnings and offsetting $25 million decrease in Noncontrolling interests as of December 31, 2020. There was no impact on total equity or any other line items within the financial statements. C. Finance Receivables Finance receivables are generally classified as held for investment and recorded at amortized cost given that we have the intent and ability to hold them for the foreseeable future. Amortized cost is the principal balance outstanding plus accrued interest less write-downs, net of unamortized purchase discounts and deferred fees and costs. D. Revenue Recognition We record finance revenue over the life of the related finance receivables using the interest method, including the accretion of purchased receivables discount and related fee revenue, upfront fees and certain direct origination costs that are deferred. Operating lease revenue is recorded on a straight-line basis over the term of the lease. We suspend recognition of finance revenue and operating lease revenue and place the account on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). We resume recognition of revenue and recognize previously suspended income when we consider collection of remaining amounts to be probable. Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. We write off interest earned but uncollected prior to the receivables being placed on non-accrual status through Provision for credit losses when, in the judgment of management, we consider it to be uncollectible. We participate in certain marketing programs offered in conjunction with Caterpillar and/or Caterpillar dealers that allow us to periodically offer financing to customers at interest rates that are below market rates. Under these marketing programs, Caterpillar and/or the dealer funds an amount at the outset of the transaction, which we then recognize as finance revenue over the term of the financing. The funds we receive from Caterpillar and/or the dealer equal an amount that when combined with the customer’s contractual interest provides us with a market interest rate. Other revenue includes: (1) late charges, (2) fee revenue, primarily commitment fees, (3) gains and losses on sales of returned or repossessed equipment, (4) impairments on returned or repossessed equipment held for sale, (5) gains and losses on loan and lease sales and (6) other miscellaneous revenues. Other revenue items are recognized in accordance with relevant authoritative pronouncements. E. Equipment on Operating Leases We typically pay property taxes on operating leases directly to the taxing authorities and invoice the lessee for reimbursement. These property tax reimbursements are accounted for as variable lease payments and are included in Operating lease revenues in the Consolidated Statements of Profit. We individually assess our operating lease receivables for impairment. If collectability of a recorded operating lease receivable is not considered probable, we recognize a current-period adjustment against operating lease revenue. F. Depreciation We recognize depreciation for equipment on operating leases using the straight-line method over the lease term, typically one 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. The derivatives that we use are primarily foreign currency forward, option and cross currency contracts and interest rate contracts. All derivatives are recorded at fair value. See Note 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 of the receivable. Subsequent recoveries, if any, are credited to the allowance for credit losses when received. J. Income Taxes We determine the provision for income taxes using the asset and liability approach taking into account guidance related to uncertain tax positions. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. We recognize a current liability for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. We adjust deferred taxes for enacted changes in tax rates and tax laws. We record valuation allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. See Note 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, 2023, which did not have a material impact on our financial statements: ASU Description 2022-02 Credit Losses Accounting Standards Issued But Not Yet Adopted Segment reporting (ASU 2023-07) - In November 2023, the FASB issued accounting guidance that requires incremental disclosures related to reportable segments which includes significant segment expense categories and amounts for each reportable segment. The guidance is effective January 1, 2024, and will be adopted retrospectively. The adoption will result in incremental disclosures related to reportable segments in the 2024 year-end financial statements and interim periods beginning in 2025. We are in the process of evaluating the effect of this new guidance on the related disclosures. Income tax reporting (ASU 2023-09) - In December 2023, the FASB issued accounting guidance to expand the annual disclosure requirements for income taxes, primarily related to the rate reconciliation and income taxes paid. This guidance is effective January 1, 2025, with early adoption permitted. This guidance can be applied prospectively or retrospectively. We are in the process of evaluating the effect of this new guidance on the related disclosures. 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, 2023
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) 2023 2022 Retail loans (1) $ 16,501 $ 14,973 Retail leases 6,554 6,965 Caterpillar purchased receivables 3,949 4,297 Wholesale loans (1) 1,069 545 Wholesale leases 4 7 Total finance receivables 28,077 26,787 Less: Allowance for credit losses (331) (346) Total finance receivables, net $ 27,746 $ 26,441 (1) Includes failed sale leasebacks. Maturities of our finance receivables, as of December 31, 2023, reflect contractual repayments due from borrowers and were as follows: (Millions of dollars) Amounts due in Retail Retail Caterpillar Wholesale Wholesale Total 2024 $ 7,316 $ 2,603 $ 3,986 $ 769 $ 1 $ 14,675 2025 4,207 1,749 — 112 1 6,069 2026 2,884 1,063 — 145 — 4,092 2027 1,571 505 — 11 — 2,087 2028 719 179 — 1 — 899 Thereafter 170 47 — — — 217 Total 16,867 6,146 3,986 1,038 2 28,039 Guaranteed residual value (1) 10 415 — 33 1 459 Unguaranteed residual value (1) 1 634 — 2 1 638 Unearned income (377) (641) (37) (4) — (1,059) Total $ 16,501 $ 6,554 $ 3,949 $ 1,069 $ 4 $ 28,077 (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 $419 million, $429 million and $481 million for the years ended December 31, 2023, 2022, and 2021 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 power generation facilities that, in most cases, incorporate Caterpillar products. The average original term of our customer finance receivable portfolio was approximately 51 months with an average remaining term of approximately 27 months as of December 31, 2023. We typically maintain a security interest in financed equipment and we generally require physical damage insurance coverage on the financed equipment, both of which provide us with certain rights and protections. If our collection efforts fail to bring a defaulted account current, we generally can repossess the financed equipment, after satisfying local legal requirements, and sell it within the Caterpillar dealer network or through third-party auctions. We estimate the allowance for credit losses related to our customer finance receivables based on loss forecast models utilizing probabilities of default and our estimated loss given default based on past loss experience adjusted for current conditions and reasonable and supportable forecasts capturing country and industry-specific economic factors. During the year ended December 31, 2023, our forecasts reflected a continuation of the trend of relatively low unemployment rates as well as low delinquencies within our portfolio. However, industry delinquencies show an increasing trend as the central bank actions aimed at reducing inflation have weakened 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, 2023. 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, 2023. Classes of finance receivables We further evaluate our portfolio segments by the class of finance receivables, which is defined as a level of information (below a portfolio segment) in which the finance receivables have the same initial measurement attribute and a similar method for assessing and monitoring credit risk. Our classes, which align with management reporting for credit losses, are as follows: • North America - Finance receivables originated in the United States and Canada. • EAME - Finance receivables originated in Europe, Africa, the Middle East and Eurasia. • Asia/Pacific - Finance receivables originated in Australia, New Zealand, China, Japan, Southeast Asia and India. • Mining - Finance receivables related to large mining customers worldwide. • Latin America - Finance receivables originated in Mexico and Central and South American countries. • Power - Finance receivables originated worldwide related to Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems. An analysis of the allowance for credit losses as of December 31, was as follows: (Millions of dollars) 2023 2022 Allowance for Credit Losses: Customer Dealer Caterpillar Total Customer Dealer Caterpillar Total Beginning Balance $ 277 $ 65 $ 4 $ 346 $ 251 $ 82 $ 4 $ 337 Write-offs (115) — — (115) (108) — — (108) Recoveries 50 — — 50 62 — — 62 Provision for credit losses (1) 61 (14) — 47 75 (17) — 58 Other 3 — — 3 (3) — — (3) Ending Balance $ 276 $ 51 $ 4 $ 331 $ 277 $ 65 $ 4 $ 346 Finance Receivables $ 21,177 $ 2,951 $ 3,949 $ 28,077 $ 20,353 $ 2,137 $ 4,297 $ 26,787 (1) Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables. Gross write-offs by origination year for the Customer portfolio segment were as follows: (Millions of Dollars) Year Ended December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total North America $ 2 $ 11 $ 11 $ 5 $ 3 $ 2 $ 12 $ 46 EAME 1 5 6 4 1 — — 17 Asia/Pacific 2 5 8 5 1 — — 21 Latin America — 8 5 6 1 10 — 30 Power — — — — — 1 — 1 Total $ 5 $ 29 $ 30 $ 20 $ 6 $ 13 $ 12 $ 115 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, 2023 2023 2022 2021 2020 2019 Prior Revolving Total North America Current $ 4,430 $ 2,628 $ 2,000 $ 745 $ 220 $ 32 $ 312 $ 10,367 31-60 days past due 28 31 24 14 7 1 4 109 61-90 days past due 10 11 8 4 1 — 2 36 91+ days past due 12 23 18 9 4 1 2 69 EAME Current 1,336 895 588 258 111 105 — 3,293 31-60 days past due 10 9 7 3 1 — — 30 61-90 days past due 4 3 3 1 1 — — 12 91+ days past due 7 17 15 8 3 1 — 51 Asia/Pacific Current 1,134 690 368 115 37 7 45 2,396 31-60 days past due 5 7 8 2 — — — 22 61-90 days past due 2 3 3 2 — — — 10 91+ days past due 1 5 3 3 1 — — 13 Mining Current 1,106 694 396 126 86 27 66 2,501 31-60 days past due — — — — — — — — 61-90 days past due — — — — 1 1 — 2 91+ days past due — — 1 — — 1 — 2 Latin America Current 750 520 219 59 23 6 — 1,577 31-60 days past due 9 10 6 1 — — — 26 61-90 days past due 2 4 1 — — — — 7 91+ days past due 2 10 8 5 8 11 — 44 Power Current 152 52 65 75 42 59 162 607 31-60 days past due — — — — — — — — 61-90 days past due — — — — — — — — 91+ days past due — — — — — 3 — 3 Totals by Aging Category Current 8,908 5,479 3,636 1,378 519 236 585 20,741 31-60 days past due 52 57 45 20 8 1 4 187 61-90 days past due 18 21 15 7 3 1 2 67 91+ days past due 22 55 45 25 16 17 2 182 Total $ 9,000 $ 5,612 $ 3,741 $ 1,430 $ 546 $ 255 $ 593 $ 21,177 (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 Power 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 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, 2023 and 2022, our total amortized cost of finance receivables within the Dealer portfolio segment was current, with the exception of $47 million and $62 million, respectively, that was 91+ days past due in Latin America, all of which was originated prior to 2018. Caterpillar Purchased Receivables The tables below summarize the aging category of our amortized cost of finance receivables in the Caterpillar Purchased Receivables portfolio segment as of December 31. (Millions of dollars) 2023 31-60 61-90 91+ Total Current Total Finance North America $ 15 $ 5 $ 4 $ 24 $ 2,212 $ 2,236 EAME 3 1 1 5 732 737 Asia/Pacific 2 — — 2 593 595 Latin America 1 4 18 23 348 371 Power — — — — 10 10 Total $ 21 $ 10 $ 23 $ 54 $ 3,895 $ 3,949 (Millions of dollars) 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 Power 1 — — 1 5 6 Total $ 28 $ 11 $ 22 $ 61 $ 4,236 $ 4,297 Non-accrual finance receivables In our Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income as of December 31, were as follows: (Millions of dollars) 2023 2022 Amortized Cost Amortized Cost Non-accrual Non-accrual 91+ Still Non-accrual Non-accrual 91+ Still North America $ 52 $ — $ 20 $ 52 $ 4 $ 11 EAME 34 — 18 43 — 10 Asia/Pacific 8 — 5 11 — 7 Mining 2 — — — 1 — Latin America 48 — 1 45 — — Power 8 — — 5 11 — Total $ 152 $ — $ 44 $ 156 $ 16 $ 28 There were $47 million and $62 million, respectively, in finance receivables in our Dealer portfolio segment on non-accrual status as of December 31, 2023 and 2022, all of which was in Latin America. Modifications We periodically modify the terms of our finance receivable agreements in response to borrowers’ financial difficulty. Typically, the types of modifications granted are payment deferrals, interest only payment periods and/or term extensions. Many modifications we grant are for commercial reasons or for borrowers experiencing some form of short-term financial stress and may result in insignificant payment delays. We do not consider these borrowers to be experiencing financial difficulty. Modifications for borrowers we do consider to be experiencing financial difficulty typically result in payment deferrals and/or reduced payments for a period of four months or longer, term extension of six months or longer or a combination of both. During the year ended December 31, 2023, there were no finance receivable modifications granted to borrowers experiencing financial difficulty in the Dealer or Caterpillar Purchased Receivables portfolio segments. The amortized cost basis of finance receivables modified for borrowers experiencing financial difficulty in the Customer portfolio segment during the year ended December 31, 2023, was $47 million, or 0.17 percent of our finance receivable portfolio. For the year ended December 31, 2023, the financial effects of term extensions for borrowers experiencing financial difficulty added a weighted average of 15 months to the terms of modified contracts. For the year ended December 31, 2023, the financial effects of payment delays for borrowers experiencing financial difficulty resulted in weighted average payment deferral and/or interest only periods of 7 months. After we modify a finance receivable, we continue to track its performance under its most recent modified terms. As of December 31, 2023, all finance receivables modified with borrowers experiencing financial difficulty are current except for in EAME where there was $2 million that was 31-60 days past due, $1 million that was 61-90 days past due, and $1 million that was 91+ days past due. The effect of most modifications made to finance receivables for borrowers experiencing financial difficulty is already included in the allowance for credit losses based on the methodologies used to estimate the allowance; therefore, a change to the allowance for credit losses is generally not recorded upon modification. On rare occasions when principal forgiveness is provided, the amount forgiven is written off against the allowance for credit losses. Troubled debt restructurings Prior to the adoption of ASU 2022-02, a modification constituted a TDR when the lender granted a concession it would not otherwise consider to a borrower experiencing financial difficulties. Concessions granted may have included extended contract maturities, inclusion of interest only periods, below market interest rates, payment deferrals and reduction of principal and/or accrued interest. There were no finance receivables modified as TDRs during the years ended December 31, 2022 and 2021 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: (Millions of dollars) 2022 2021 Pre-TDR Post-TDR Pre-TDR Amortized Cost Post-TDR North America $ 6 $ 6 $ 6 $ 6 EAME 1 1 3 3 Asia/Pacific — — 4 4 Mining 16 16 11 5 Latin America 22 22 12 12 Power 20 19 26 22 Total $ 65 $ 64 $ 62 $ 52 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: (Millions of dollars) 2022 2021 Post-TDR Post-TDR North America $ — $ 1 Asia/Pacific — 6 Mining 5 — Latin America — 15 Power — 7 Total $ 5 $ 29
Concentration Risk Disclosure, Finance Receivables	Concentration of Credit Risk As of December 31, 2023 and 2022, receivables from customers in construction-related industries made up approximately 40 percent of our total portfolio. No single customer or dealer represented a significant concentration of credit risk.

Equipment on Operating Leases

Equipment on Operating Leases	12 Months Ended
	Dec. 31, 2023
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) 2023 2022 Equipment on operating leases, at cost $ 4,433 $ 4,321 Less: Accumulated depreciation (1,419) (1,410) Equipment on operating leases, net $ 3,014 $ 2,911 Our lease agreements may include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value. At December 31, 2023, rental payments to be received for equipment on operating leases were as follows: (Millions of dollars) 2024 2025 2026 2027 2028 Thereafter Total $ 755 $ 515 $ 282 $ 120 $ 55 $ 10 $ 1,737

Other Assets

Other Assets	12 Months Ended
	Dec. 31, 2023
Other Assets [Abstract]
Other Assets	OTHER ASSETS The components of Other assets as of December 31, were as follows: (Millions of dollars) 2023 2022 Customer and other miscellaneous receivables $ 332 $ 419 Collateral held for resale, at net realizable value 119 102 Deferred and refundable income taxes 188 148 Property and equipment, net 135 132 Other (1) 324 454 Total Other assets $ 1,098 $ 1,255 (1) Includes Derivative financial instruments. See Note 8 for additional information.

Credit Commitments

Credit Commitments	12 Months Ended
	Dec. 31, 2023
Credit Commitments [Abstract]
Credit Commitments	CREDIT COMMITMENTS Revolving credit facilities As of December 31, 2023, 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, 2023 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 2024. • The three-year facility, as amended and restated in August 2023, of $2.73 billion (of which $2.01 billion is available to us) expires in August 2026. • The five-year facility, as amended and restated in August 2023, of $4.62 billion (of which $3.41 billion is available to us) expires in August 2028. At December 31, 2023, Caterpillar’s consolidated net worth was $19.55 billion, which was above the $9.00 billion required under the Credit Facility. The consolidated net worth is defined in the Credit Facility as Caterpillar's consolidated shareholders’ equity including preferred stock but excluding the pension and other postretirement benefits balance within Accumulated other comprehensive income (loss). At December 31, 2023, our covenant interest coverage ratio was 1.73 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 fiscal quarter for the prior four consecutive fiscal quarter period, required by the Credit Facility. In addition, at December 31, 2023, our six-month covenant leverage ratio was 6.88 to 1 and our year-end covenant leverage ratio was 6.95 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, 2023, there were no borrowings under the Credit Facility. Bank borrowings Available credit lines with banks as of December 31, 2023 totaled $3.54 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, 2023 and 2022, we had $853 million and $979 million, respectively, outstanding against these credit lines and were in compliance with all debt covenants under these credit lines. Notes receivable from/payable to Caterpillar Under our variable amount and term lending agreements and other notes receivable with Caterpillar, we may borrow up to $2.44 billion from Caterpillar and Caterpillar may borrow up to $2.14 billion from us. 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 $24 million and notes receivable of $527 million outstanding under these agreements as of December 31, 2023, compared with notes payable of $23 million and notes receivable of $482 million as of December 31, 2022.

Short-Term Borrowings

Short-Term Borrowings	12 Months Ended
	Dec. 31, 2023
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) 2023 2022 Balance Weighted Avg. Rate Balance Weighted Avg. Rate Commercial paper, net $ 4,069 5.2% $ 5,455 4.2% Bank borrowings and other 330 10.0% 234 11.4% Variable denomination floating rate demand notes 244 5.2% 265 3.4% Total $ 4,643 $ 5,954

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2023
Long-Term Debt, Unclassified [Abstract]
Long-Term Debt	LONG-TERM DEBT During 2023, we issued $7.95 billion of medium-term notes, of which $5.42 billion were at fixed interest rates and $2.53 billion were floating interest rates, primarily indexed to SOFR. At December 31, 2023, 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) 2023 2022 Balance Weighted Avg. Rate Balance Weighted Avg. Rate Medium-term notes $ 23,165 3.2% $ 20,821 2.2% Unamortized discount and debt issuance costs (34) (37) Fair value adjustments (46) (112) Medium-term notes, net 23,085 20,672 Bank borrowings and other 527 6.6% 746 5.3% Total $ 23,612 $ 21,418 Maturities of Long-term debt outstanding (excluding fair value adjustments) as of December 31, 2023, in each of the next five years, are as follows: ( Millions of dollars) 2024 $ 7,719 2025 7,811 2026 5,634 2027 2,479 2028 14 Medium-term notes of $500 million maturing in the first quarter of 2024 were excluded from Current maturities of long-term debt in the Consolidated Statements of Financial Position as of December 31, 2023 due to a $500 million issuance of medium-term notes on January 8, 2024 which mature in 2027. The preceding maturity table reflects the reclassification of $500 million from maturities in 2024 to 2027.

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management	12 Months Ended
	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments and Risk Management	DERIVATIVE FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Our earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate and interest rate exposures. Our policy specifies that derivatives are not to be used for speculative purposes. The derivatives that we use are primarily foreign currency forward, option and cross currency contracts and interest rate contracts. Our derivative activities are subject to the management, direction and control of our senior financial officers. We present at least annually to our Board of Directors and the Audit Committee of the Caterpillar Board of Directors on our risk management practices, including our use of financial derivative instruments. All derivatives are recognized in 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, in the Consolidated Statements of Financial Position until we reclassify them to earnings in the same period or periods during which the hedged transaction affects earnings. We report changes in the fair value of undesignated derivative instruments in current earnings. We classify cash flows from designated derivative financial instruments within the same category as the item being hedged in the Consolidated Statements of Cash Flows. We include cash flows from undesignated derivative financial instruments in the investing category in the Consolidated Statements of Cash Flows. We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities in the Consolidated Statements of Financial Position and linking cash flow hedges to specific forecasted transactions or variability of cash flow. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the designated derivatives that are used in hedging transactions are highly effective in offsetting changes in fair value or cash flow of hedged items. When a derivative is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, we discontinue hedge accounting prospectively, in accordance with the derecognition criteria for hedge accounting. Foreign currency exchange rate risk We have balance sheet positions and expected future transactions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. In managing foreign currency risk, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our assets and liabilities and exchange rate risk associated with future transactions denominated in foreign currencies. Our foreign currency forward and option contracts are primarily undesignated. We designate fixed-to-fixed cross currency contracts as cash flow hedges to protect against movements in exchange rates on foreign currency fixed-rate assets and liabilities. Interest rate risk Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate contracts to manage our exposure to interest rate changes. We have a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate and duration) of our debt portfolio with the interest rate profile of our finance 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 as of December 31, were as follows: (Millions of dollars) 2023 2022 Assets 1 Liabilities 2 Assets 1 Liabilities 2 Designated derivatives Foreign exchange contracts $ 207 $ (73) $ 305 $ (44) Interest rate contracts 50 (68) 87 (113) $ 257 $ (141) $ 392 $ (157) Undesignated derivatives Foreign exchange contracts $ 28 $ (79) $ 25 $ (42) $ 28 $ (79) $ 25 $ (42) (1) Assets are classified in the Consolidated Statements of Financial Position as Other assets. (2) Liabilities are classified in the Consolidated Statements of Financial Position as Accrued expenses. The total notional amount of our derivative instruments was $15.73 billion and $13.18 billion as of December 31, 2023 and 2022, respectively. The notional amounts of derivative financial instruments do not represent amounts exchanged by the parties. We calculate the amounts exchanged by the parties by referencing the notional amounts and by other terms of the derivatives, such as foreign currency exchange rates and interest rates. Gains (Losses) on derivative instruments for the years ended December 31, are categorized as follows: (Millions of dollars) Fair Value / Cash Flow Hedges Gains (Losses) Recognized 1 Gains (Losses) Gains (Losses) Reclassified from AOCI 2 2023 2022 2021 2023 2022 2021 2023 2022 2021 Foreign exchange contracts $ (39) $ (111) $ 89 $ (22) $ 310 $ 190 $ (68) $ 370 $ 194 Interest rate contracts (75) (7) 24 9 111 19 58 14 (28) $ (114) $ (118) $ 113 $ (13) $ 421 $ 209 $ (10) $ 384 $ 166 (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 as of December 31: (Millions of dollars) Carry Value of Cumulative Amount of Fair Value 2023 2022 2023 2022 Current maturities of long-term debt $ 982 $ — $ (23) $ — Long-term debt 2,128 2,091 (23) (112) Total $ 3,110 $ 2,091 $ (46) $ (112) As of December 31, 2023, $19 million of deferred net gains, net of tax, included in equity (AOCI in the Consolidated Statements of Financial Position), related to our cash flow hedges, are expected to be reclassified to earnings over the next twelve months. The actual amount recorded in earnings will vary based on interest rates and exchange rates at the time the hedged transactions impact earnings. We enter into International Swaps and Derivatives Association master netting agreements that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits us or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements may also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. Collateral is typically not required of the counterparties or us under the master netting agreements. As of December 31, 2023 and 2022, no cash collateral was received or pledged under the master netting agreements. The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event as of December 31, was as follows: (Millions of dollars) 2023 2022 Assets Liabilities Assets Liabilities Gross amounts recognized $ 285 $ (220) $ 417 $ (199) Financial instruments not offset (106) 106 (108) 108 Net amount $ 179 $ (114) $ 309 $ (91)
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, 2023 and 2022, the maximum exposure to credit loss, was $285 million and $417 million, respectively, before the application of any master netting agreements.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	12 Months Ended
	Dec. 31, 2023
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) 2023 2022 2021 Foreign currency translation Balance at beginning of year $ (1,068) $ (762) $ (551) Gains (losses) on foreign currency translation 55 (276) (169) Less: Tax provision/(benefit) (17) 30 42 Net gains (losses) on foreign currency translation 72 (306) (211) Other comprehensive income (loss), net of tax 72 (306) (211) Balance at end of year $ (996) $ (1,068) $ (762) Derivative financial instruments Balance at beginning of year $ 21 $ (12) $ (44) Gains (losses) deferred (13) 421 209 Less: Tax provision/(benefit) (3) 97 24 Net gains (losses) deferred (10) 324 185 (Gains) losses reclassified to earnings 10 (384) (166) Less: Tax (provision)/benefit 3 (93) (13) Net (gains) losses reclassified to earnings 7 (291) (153) Other comprehensive income (loss), net of tax (3) 33 32 Balance at end of year $ 18 $ 21 $ (12) Total Accumulated other comprehensive income (loss) at end of year $ (978) $ (1,047) $ (774)

Commitments and Contingent Liab

Commitments and Contingent Liabilities	12 Months Ended
	Dec. 31, 2023
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, 2023 and 2022, the related recorded liability was less than $1 million. The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees was $25 million and $26 million at December 31, 2023 and 2022, respectively. We provide guarantees to purchase certain loans of Caterpillar dealers from a special-purpose corporation (SPC) that qualifies as a VIE (see Note 1 for additional information related to the consolidation of VIEs). 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, 2023 and 2022, the SPC’s assets of $1.35 billion and $971 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 $1.35 billion and $970 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 through lines of credit and other pre-approved credit arrangements. We apply the same credit policies and approval process for these commitments as we do for other financing. If credit is extended, collateral is generally required upon funding. The unused commitments to extend credit to customers that are not unconditionally cancellable was $774 million at December 31, 2023. The reserve for credit losses related to these commitments was $25 million at December 31, 2023 and is recorded in Other liabilities in the Consolidated Statements of Financial Position. We also have pre-approved lines of credit and other credit arrangements with Caterpillar dealers; however, we generally have the right to unconditionally cancel, alter, or amend the terms at any time. Litigation and claims We are involved in unresolved legal actions that arise in the normal course of business. 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, 2023
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) 2023 2022 2021 Taxes computed at U.S. statutory rates $ 160 21.0 % $ 154 21.0 % $ 146 21.0 % (Decreases) increases in taxes resulting from: State income tax, net of federal tax 5 0.5 % 4 0.5 % 3 0.4 % Non-U.S. subsidiaries taxed at other than the U.S. rate 21 2.8 % 19 2.6 % 22 3.2 % Valuation allowances (14) (1.8) % 15 2.1 % 5 0.7 % Dividend withholding tax & indefinite reinvestment change 30 4.0 % — — % — — % Foreign currency translation taxed at non- U.S. subsidiaries (10) (1.3) % (4) (0.5) % 3 0.4 % Other, net — — % 1 0.1 % (1) (0.1) % Provision for income taxes $ 192 25.2 % $ 189 25.8 % $ 178 25.6 % 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 2023 included a decrease in the valuation allowance for non-U.S. deferred tax assets primarily due to a non-cash benefit of $22 million from a non-U.S. subsidiary which has returned to consistent and sustainable profitability. The provision for income taxes for 2023, 2022 and 2021 included an increase in valuation allowance for non-U.S. deferred tax assets due to a decrease in consistent and/or sustainable profitability to support their recognition in certain jurisdictions, resulting in an $8 million, $15 million and $5 million non-cash expense, respectively. The provision for income taxes for 2023 included a tax charge of $30 million for a deferred tax liability for withholding taxes in a non-U.S. jurisdiction where earnings are not considered indefinitely reinvested. 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) 2023 2022 2021 U.S. $ 384 $ 439 $ 288 Non-U.S. 376 292 407 Total $ 760 $ 731 $ 695 Profit before income taxes, as shown above, is based on the location of the entity to which such earnings are attributable. Where an entity’s earnings are subject to taxation, however, may not correlate solely to where an entity is located. Thus, the income tax provision shown below as U.S. or non-U.S. may not correspond to the earnings shown above. The components of the Provision for income taxes for the years ended December 31, were as follows: (Millions of dollars) Current income tax provision: 2023 2022 2021 U.S. $ 36 $ 116 $ 101 Non-U.S. 150 95 162 State (U.S.) 3 5 5 189 216 268 Deferred income tax provision (benefit): U.S. 33 (36) (56) Non-U.S. (31) 8 (33) State (U.S.) 1 1 (1) 3 (27) (90) Total Provision for income taxes $ 192 $ 189 $ 178 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 $190 million and $275 million as of December 31, 2023 and 2022, 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) 2023 2022 Assets: Other assets $ 144 $ 115 Liabilities: Other liabilities (617) (610) Deferred income taxes, net $ (473) $ (495) Our consolidated deferred income taxes consisted of the following components as of December 31: (Millions of dollars) Deferred income tax assets: 2023 2022 Allowance for credit losses $ 95 $ 97 Tax carryforwards 103 93 Revenue timing differences 16 20 214 210 Deferred income tax liabilities: Capital assets, including lease basis differences (430) (461) Deferred income tax on translation adjustment (200) (219) Undistributed profits of non-U.S. subsidiaries (16) — (646) (680) Valuation allowance for deferred income tax assets (39) (53) Other, net (2) 28 Deferred income taxes, net $ (473) $ (495) At December 31, 2023, deferred tax assets for U.S. state losses of $6 million expire on or before 2040. Of these U.S. state deferred tax assets, $1 million were reduced by valuation allowances. In some U.S. state income tax jurisdictions, we join with other Caterpillar entities in filing combined income tax returns. In other U.S. state income tax jurisdictions, we file on a separate, stand-alone basis. Deferred tax assets for U.S. federal loss carryforwards of $1 million expire before 2027 and were reduced by a full valuation allowance. Deferred tax assets for losses and credit carryforwards of non-U.S. entities of $11 million expire on or before 2034, while the remaining $85 million may be carried over indefinitely. Non-U.S. entities that have not yet demonstrated consistent and/or sustainable profitability to support the recognition of net deferred income tax assets have recorded valuation allowances of $37 million against tax carryforwards and other deferred tax assets. Due to the uncertainty of inflation and foreign exchange rate 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 2024 against some or all of the $48 million deferred tax asset at December 31, 2023. The potential amounts of the valuation allowance changes are dependent on the 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) 2023 2022 2021 Reconciliation of unrecognized income tax benefits (1) : Balance at beginning of year $ 127 $ 131 $ 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 prior year (2) — — Reductions for income tax positions related to settlements (6) (4) — Balance at end of year $ 119 $ 127 $ 131 Amount that, if recognized, would impact the effective tax rate $ 119 $ 127 $ 131 (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, 2023, 2022 and 2021, interest and penalties were not material. As of December 31, 2023 and 2022, the total amount of accrued interest and penalties was $6 million and $3 million, respectively.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2023
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 $65 million and $218 million as of December 31, 2023 and 2022, 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 $55 million and $68 million as of December 31, 2023 and 2022, respectively. B. Fair Values of Financial Instruments Cash and cash equivalents, restricted cash (included in Other assets in the Consolidated Statements of Financial Position), and Short-term borrowings (see Note 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) 2023 2022 Carrying Fair Carrying Fair Fair Reference Assets Finance receivables, net (excluding finance leases (1) ) $ 20,746 $ 20,330 $ 19,085 $ 18,448 3 Note 2 Liabilities Long-term debt $ 23,612 $ 23,299 $ 21,418 $ 20,686 2 Note 7 (1) Represents finance leases and failed sale leasebacks of $7.00 billion and $7.36 billion as of December 31, 2023 and 2022, respectively.

Transactions with Related Parti

Transactions with Related Parties	12 Months Ended
	Dec. 31, 2023
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 $425 million, $275 million, and $850 million were paid to Caterpillar in 2023, 2022, and 2021, respectively. We have variable amount and term lending agreements and other notes receivable with Caterpillar. Under these agreements, we may borrow up to $2.44 billion from Caterpillar, and Caterpillar may borrow up to $2.14 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) 2023 2022 2021 Payable to Caterpillar - borrowings as of December 31, $ 24 $ 23 $ 22 Payable to Caterpillar - other as of December 31, 113 101 73 Notes receivable from Caterpillar as of December 31, 527 482 389 Other receivables from Caterpillar as of December 31, (2) 39 133 70 Interest expense 1 1 — Interest income on Notes Receivable with Caterpillar (1) 21 17 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) 2023 2022 2021 Purchases made $ 53,382 $ 47,158 $ 40,140 Revenue earned 617 417 301 Purchased Receivables as of December 31, 3,949 4,297 4,462 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 2023, 2022 and 2021, relative to such programs, we received $332 million, $339 million and $351 million, respectively. We have Finance receivables, net and Equipment on operating leases, net with Caterpillar of $155 million and $143 million as of December 31, 2023 and 2022, respectively. For the years ended December 31, 2023, 2022 and 2021, we recognized revenues of $27 million, $24 million and $25 million, respectively, related to these finance receivables and operating leases. For the years ended December 31, 2023, 2022 and 2021, we recognized depreciation related to these operating leases of $18 million, $17 million and $17 million, respectively. At December 31, 2023 and 2022, $376 million and $448 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 2023 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 2023, 2022 and 2021, these operational and support charges for which we reimburse Caterpillar amounted to $50 million, $52 million and $52 million, respectively. In addition, we provide administrative support services to certain Caterpillar subsidiaries. Caterpillar reimburses us for these charges. During 2023, 2022 and 2021, these charges amounted to $15 million, $13 million and $12 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, 2023
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 power generation facilities that, in most cases, incorporate Caterpillar products. Financing plans include operating and finance leases, revolving charge accounts, retail loans, working capital loans to Caterpillar dealers and wholesale financing plans within each of the operating segments. Certain operating segments also purchase short-term trade receivables from Caterpillar. 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 Eurasia. • Asia/Pacific - Includes our operations in Australia, New Zealand, China, Japan, Southeast Asia and India. • Latin America - Includes our operations in Mexico and Central and South American countries. • Mining - Provides financing for large mining customers worldwide. • Power - Provides financing worldwide for Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems. C. Segment Measurement and Reconciliations 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 - Corporate requirements and strategies that are considered to be for the benefit of the entire organization. Also included are the consolidated results of the SPC (see Note 10 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) 2023 External Profit Interest Depreciation Provision Assets at December 31, 2023 Capital North America $ 1,786 $ 596 $ 463 $ 512 $ 32 $ 16,303 $ 961 EAME 368 101 103 57 3 5,117 73 Asia/Pacific 278 105 102 4 (2) 3,435 4 Latin America 348 103 174 12 1 2,583 21 Mining 341 99 80 126 (2) 3,059 229 Power 58 (1) 26 2 16 662 — Total Segments 3,179 1,003 948 713 48 31,159 1,288 Unallocated 83 (507) 394 — 1 2,054 9 Timing (14) 2 — — — 20 — Methodology — 262 (309) — — 145 — Inter-segment Eliminations (1) — — — — — (266) — Total $ 3,248 $ 760 $ 1,033 $ 713 $ 49 $ 33,112 $ 1,297 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 Power 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 Power 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 (1) Elimination is primarily related to intercompany loans. Geographic information: (Millions of dollars) 2023 2022 2021 Revenues Inside U.S. $ 1,879 $ 1,551 $ 1,422 All other 1,369 1,183 1,140 Total $ 3,248 $ 2,734 $ 2,562 Equipment on operating leases, net and property 2023 2022 Inside U.S. $ 2,066 $ 2,036 Inside Canada 539 507 All other 544 500 Total $ 3,149 $ 3,043

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2023
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). 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. In the current period we identified a misclassification between Noncontrolling interests and Retained earnings related to certain dividends we paid to Caterpillar in 2019 and 2021. We have determined that the impact was not material to any previously filed financial statements and have revised the reported balances to correct for the misclassification. The impact of the revisions was a $52 million increase in Retained earnings and offsetting $52 million decrease in Noncontrolling interests as of December 31, 2021 and 2022, and a $25 million increase in Retained earnings and offsetting $25 million decrease in Noncontrolling interests as of December 31, 2020. There was no impact on total equity or any other line items within the financial statements.
Finance Receivables	Finance Receivables Finance receivables are generally classified as held for investment and recorded at amortized cost given that we have the intent and ability to hold them for the foreseeable future. Amortized cost is the principal balance outstanding plus accrued interest less write-downs, net of unamortized purchase discounts and deferred fees and costs.
Revenue Recognition	Revenue Recognition We record finance revenue over the life of the related finance receivables using the interest method, including the accretion of purchased receivables discount and related fee revenue, upfront fees and certain direct origination costs that are deferred. Operating lease revenue is recorded on a straight-line basis over the term of the lease. We suspend recognition of finance revenue and operating lease revenue and place the account on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). We resume recognition of revenue and recognize previously suspended income when we consider collection of remaining amounts to be probable. Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. We write off interest earned but uncollected prior to the receivables being placed on non-accrual status through Provision for credit losses when, in the judgment of management, we consider it to be uncollectible. We participate in certain marketing programs offered in conjunction with Caterpillar and/or Caterpillar dealers that allow us to periodically offer financing to customers at interest rates that are below market rates. Under these marketing programs, Caterpillar and/or the dealer funds an amount at the outset of the transaction, which we then recognize as finance revenue over the term of the financing. The funds we receive from Caterpillar and/or the dealer equal an amount that when combined with the customer’s contractual interest provides us with a market interest rate. Other revenue includes: (1) late charges, (2) fee revenue, primarily commitment fees, (3) gains and losses on sales of returned or repossessed equipment, (4) impairments on returned or repossessed equipment held for sale, (5) gains and losses on loan and lease sales and (6) other miscellaneous revenues. Other revenue items are recognized in accordance with relevant authoritative pronouncements.
Equipment on Operating Leases	Equipment on Operating Leases We typically pay property taxes on operating leases directly to the taxing authorities and invoice the lessee for reimbursement. These property tax reimbursements are accounted for as variable lease payments and are included in Operating lease revenues in the Consolidated Statements of Profit. We individually assess our operating lease receivables for impairment. If collectability of a recorded operating lease receivable is not considered probable, we recognize a current-period adjustment against operating lease revenue.
Depreciation	Depreciation We recognize depreciation for equipment on operating leases using the straight-line method over the lease term, typically one 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. The derivatives that we use are primarily foreign currency forward, option and cross currency contracts and interest rate contracts. All derivatives are recorded at fair value. See Note 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 of the receivable. Subsequent recoveries, if any, are credited to the allowance for credit losses when received.
Income Taxes	Income Taxes We determine the provision for income taxes using the asset and liability approach taking into account guidance related to uncertain tax positions. Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements. We recognize a current liability for the estimated taxes payable for the current year. Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. We adjust deferred taxes for enacted changes in tax rates and tax laws. We record valuation allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. See Note 11 for further discussion.
Foreign Currency Translation	Foreign Currency Translation
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, 2023
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) 2023 2022 Retail loans (1) $ 16,501 $ 14,973 Retail leases 6,554 6,965 Caterpillar purchased receivables 3,949 4,297 Wholesale loans (1) 1,069 545 Wholesale leases 4 7 Total finance receivables 28,077 26,787 Less: Allowance for credit losses (331) (346) Total finance receivables, net $ 27,746 $ 26,441 (1) Includes failed sale leasebacks.
Maturities of finance receivables	Maturities of our finance receivables, as of December 31, 2023, reflect contractual repayments due from borrowers and were as follows: (Millions of dollars) Amounts due in Retail Retail Caterpillar Wholesale Wholesale Total 2024 $ 7,316 $ 2,603 $ 3,986 $ 769 $ 1 $ 14,675 2025 4,207 1,749 — 112 1 6,069 2026 2,884 1,063 — 145 — 4,092 2027 1,571 505 — 11 — 2,087 2028 719 179 — 1 — 899 Thereafter 170 47 — — — 217 Total 16,867 6,146 3,986 1,038 2 28,039 Guaranteed residual value (1) 10 415 — 33 1 459 Unguaranteed residual value (1) 1 634 — 2 1 638 Unearned income (377) (641) (37) (4) — (1,059) Total $ 16,501 $ 6,554 $ 3,949 $ 1,069 $ 4 $ 28,077 (1) For Retail loans and Wholesale loans, represents residual value on failed sale leasebacks.
Allowance for credit losses and total finance receivables	An analysis of the allowance for credit losses as of December 31, was as follows: (Millions of dollars) 2023 2022 Allowance for Credit Losses: Customer Dealer Caterpillar Total Customer Dealer Caterpillar Total Beginning Balance $ 277 $ 65 $ 4 $ 346 $ 251 $ 82 $ 4 $ 337 Write-offs (115) — — (115) (108) — — (108) Recoveries 50 — — 50 62 — — 62 Provision for credit losses (1) 61 (14) — 47 75 (17) — 58 Other 3 — — 3 (3) — — (3) Ending Balance $ 276 $ 51 $ 4 $ 331 $ 277 $ 65 $ 4 $ 346 Finance Receivables $ 21,177 $ 2,951 $ 3,949 $ 28,077 $ 20,353 $ 2,137 $ 4,297 $ 26,787 (1) Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables.
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, 2023 2023 2022 2021 2020 2019 Prior Revolving Total North America Current $ 4,430 $ 2,628 $ 2,000 $ 745 $ 220 $ 32 $ 312 $ 10,367 31-60 days past due 28 31 24 14 7 1 4 109 61-90 days past due 10 11 8 4 1 — 2 36 91+ days past due 12 23 18 9 4 1 2 69 EAME Current 1,336 895 588 258 111 105 — 3,293 31-60 days past due 10 9 7 3 1 — — 30 61-90 days past due 4 3 3 1 1 — — 12 91+ days past due 7 17 15 8 3 1 — 51 Asia/Pacific Current 1,134 690 368 115 37 7 45 2,396 31-60 days past due 5 7 8 2 — — — 22 61-90 days past due 2 3 3 2 — — — 10 91+ days past due 1 5 3 3 1 — — 13 Mining Current 1,106 694 396 126 86 27 66 2,501 31-60 days past due — — — — — — — — 61-90 days past due — — — — 1 1 — 2 91+ days past due — — 1 — — 1 — 2 Latin America Current 750 520 219 59 23 6 — 1,577 31-60 days past due 9 10 6 1 — — — 26 61-90 days past due 2 4 1 — — — — 7 91+ days past due 2 10 8 5 8 11 — 44 Power Current 152 52 65 75 42 59 162 607 31-60 days past due — — — — — — — — 61-90 days past due — — — — — — — — 91+ days past due — — — — — 3 — 3 Totals by Aging Category Current 8,908 5,479 3,636 1,378 519 236 585 20,741 31-60 days past due 52 57 45 20 8 1 4 187 61-90 days past due 18 21 15 7 3 1 2 67 91+ days past due 22 55 45 25 16 17 2 182 Total $ 9,000 $ 5,612 $ 3,741 $ 1,430 $ 546 $ 255 $ 593 $ 21,177 (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 Power 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
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 as of December 31. (Millions of dollars) 2023 31-60 61-90 91+ Total Current Total Finance North America $ 15 $ 5 $ 4 $ 24 $ 2,212 $ 2,236 EAME 3 1 1 5 732 737 Asia/Pacific 2 — — 2 593 595 Latin America 1 4 18 23 348 371 Power — — — — 10 10 Total $ 21 $ 10 $ 23 $ 54 $ 3,895 $ 3,949 (Millions of dollars) 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 Power 1 — — 1 5 6 Total $ 28 $ 11 $ 22 $ 61 $ 4,236 $ 4,297
Finance receivables on non-accrual status	In our Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income as of December 31, were as follows: (Millions of dollars) 2023 2022 Amortized Cost Amortized Cost Non-accrual Non-accrual 91+ Still Non-accrual Non-accrual 91+ Still North America $ 52 $ — $ 20 $ 52 $ 4 $ 11 EAME 34 — 18 43 — 10 Asia/Pacific 8 — 5 11 — 7 Mining 2 — — — 1 — Latin America 48 — 1 45 — — Power 8 — — 5 11 — Total $ 152 $ — $ 44 $ 156 $ 16 $ 28
Finance receivables modified as TDRs	Finance receivables in the Customer portfolio segment modified as TDRs for the years ended December 31, were as follows: (Millions of dollars) 2022 2021 Pre-TDR Post-TDR Pre-TDR Amortized Cost Post-TDR North America $ 6 $ 6 $ 6 $ 6 EAME 1 1 3 3 Asia/Pacific — — 4 4 Mining 16 16 11 5 Latin America 22 22 12 12 Power 20 19 26 22 Total $ 65 $ 64 $ 62 $ 52 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: (Millions of dollars) 2022 2021 Post-TDR Post-TDR North America $ — $ 1 Asia/Pacific — 6 Mining 5 — Latin America — 15 Power — 7 Total $ 5 $ 29
Write-offs by origination year	Gross write-offs by origination year for the Customer portfolio segment were as follows: (Millions of Dollars) Year Ended December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total North America $ 2 $ 11 $ 11 $ 5 $ 3 $ 2 $ 12 $ 46 EAME 1 5 6 4 1 — — 17 Asia/Pacific 2 5 8 5 1 — — 21 Latin America — 8 5 6 1 10 — 30 Power — — — — — 1 — 1 Total $ 5 $ 29 $ 30 $ 20 $ 6 $ 13 $ 12 $ 115

Equipment on Operating Leases (

Equipment on Operating Leases (Tables)	12 Months Ended
	Dec. 31, 2023
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) 2023 2022 Equipment on operating leases, at cost $ 4,433 $ 4,321 Less: Accumulated depreciation (1,419) (1,410) Equipment on operating leases, net $ 3,014 $ 2,911
Schedule of payments due for operating leases	At December 31, 2023, rental payments to be received for equipment on operating leases were as follows: (Millions of dollars) 2024 2025 2026 2027 2028 Thereafter Total $ 755 $ 515 $ 282 $ 120 $ 55 $ 10 $ 1,737

Other Assets (Tables)

Other Assets (Tables)	12 Months Ended
	Dec. 31, 2023
Other Assets [Abstract]
Schedule of Other assets	The components of Other assets as of December 31, were as follows: (Millions of dollars) 2023 2022 Customer and other miscellaneous receivables $ 332 $ 419 Collateral held for resale, at net realizable value 119 102 Deferred and refundable income taxes 188 148 Property and equipment, net 135 132 Other (1) 324 454 Total Other assets $ 1,098 $ 1,255 (1) Includes Derivative financial instruments. See Note 8 for additional information.

Short-Term Borrowings (Tables)

Short-Term Borrowings (Tables)	12 Months Ended
	Dec. 31, 2023
Short-Term Debt [Abstract]
Short-term borrowings	Short-term borrowings outstanding as of December 31, were comprised of the following: (Millions of dollars) 2023 2022 Balance Weighted Avg. Rate Balance Weighted Avg. Rate Commercial paper, net $ 4,069 5.2% $ 5,455 4.2% Bank borrowings and other 330 10.0% 234 11.4% Variable denomination floating rate demand notes 244 5.2% 265 3.4% Total $ 4,643 $ 5,954

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2023
Long-Term Debt, Unclassified [Abstract]
Long-term debt	Long-term debt outstanding as of December 31, was comprised of the following: (Millions of dollars) 2023 2022 Balance Weighted Avg. Rate Balance Weighted Avg. Rate Medium-term notes $ 23,165 3.2% $ 20,821 2.2% Unamortized discount and debt issuance costs (34) (37) Fair value adjustments (46) (112) Medium-term notes, net 23,085 20,672 Bank borrowings and other 527 6.6% 746 5.3% Total $ 23,612 $ 21,418
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, 2023, in each of the next five years, are as follows: ( Millions of dollars) 2024 $ 7,719 2025 7,811 2026 5,634 2027 2,479 2028 14

Derivative Financial Instrume_2

Derivative Financial Instruments and Risk Management (Tables)	12 Months Ended
	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position	The location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position as of December 31, were as follows: (Millions of dollars) 2023 2022 Assets 1 Liabilities 2 Assets 1 Liabilities 2 Designated derivatives Foreign exchange contracts $ 207 $ (73) $ 305 $ (44) Interest rate contracts 50 (68) 87 (113) $ 257 $ (141) $ 392 $ (157) Undesignated derivatives Foreign exchange contracts $ 28 $ (79) $ 25 $ (42) $ 28 $ (79) $ 25 $ (42) (1) Assets are classified in the Consolidated Statements of Financial Position as Other assets. (2) Liabilities are classified in the Consolidated Statements of Financial Position as Accrued expenses.
Schedule of effect of derivatives designated as cash flow hedging instruments on the Consolidated Statements of Profit	Gains (Losses) on derivative instruments for the years ended December 31, are categorized as follows: (Millions of dollars) Fair Value / Cash Flow Hedges Gains (Losses) Recognized 1 Gains (Losses) Gains (Losses) Reclassified from AOCI 2 2023 2022 2021 2023 2022 2021 2023 2022 2021 Foreign exchange contracts $ (39) $ (111) $ 89 $ (22) $ 310 $ 190 $ (68) $ 370 $ 194 Interest rate contracts (75) (7) 24 9 111 19 58 14 (28) $ (114) $ (118) $ 113 $ (13) $ 421 $ 209 $ (10) $ 384 $ 166 (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 as of December 31: (Millions of dollars) Carry Value of Cumulative Amount of Fair Value 2023 2022 2023 2022 Current maturities of long-term debt $ 982 $ — $ (23) $ — Long-term debt 2,128 2,091 (23) (112) Total $ 3,110 $ 2,091 $ (46) $ (112)
Schedule of effect of net settlement provisions of the master netting agreements on our derivative balances	The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event as of December 31, was as follows: (Millions of dollars) 2023 2022 Assets Liabilities Assets Liabilities Gross amounts recognized $ 285 $ (220) $ 417 $ (199) Financial instruments not offset (106) 106 (108) 108 Net amount $ 179 $ (114) $ 309 $ (91)

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	12 Months Ended
	Dec. 31, 2023
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) 2023 2022 2021 Foreign currency translation Balance at beginning of year $ (1,068) $ (762) $ (551) Gains (losses) on foreign currency translation 55 (276) (169) Less: Tax provision/(benefit) (17) 30 42 Net gains (losses) on foreign currency translation 72 (306) (211) Other comprehensive income (loss), net of tax 72 (306) (211) Balance at end of year $ (996) $ (1,068) $ (762) Derivative financial instruments Balance at beginning of year $ 21 $ (12) $ (44) Gains (losses) deferred (13) 421 209 Less: Tax provision/(benefit) (3) 97 24 Net gains (losses) deferred (10) 324 185 (Gains) losses reclassified to earnings 10 (384) (166) Less: Tax (provision)/benefit 3 (93) (13) Net (gains) losses reclassified to earnings 7 (291) (153) Other comprehensive income (loss), net of tax (3) 33 32 Balance at end of year $ 18 $ 21 $ (12) Total Accumulated other comprehensive income (loss) at end of year $ (978) $ (1,047) $ (774)

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2023
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) 2023 2022 2021 Taxes computed at U.S. statutory rates $ 160 21.0 % $ 154 21.0 % $ 146 21.0 % (Decreases) increases in taxes resulting from: State income tax, net of federal tax 5 0.5 % 4 0.5 % 3 0.4 % Non-U.S. subsidiaries taxed at other than the U.S. rate 21 2.8 % 19 2.6 % 22 3.2 % Valuation allowances (14) (1.8) % 15 2.1 % 5 0.7 % Dividend withholding tax & indefinite reinvestment change 30 4.0 % — — % — — % Foreign currency translation taxed at non- U.S. subsidiaries (10) (1.3) % (4) (0.5) % 3 0.4 % Other, net — — % 1 0.1 % (1) (0.1) % Provision for income taxes $ 192 25.2 % $ 189 25.8 % $ 178 25.6 %
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) 2023 2022 2021 U.S. $ 384 $ 439 $ 288 Non-U.S. 376 292 407 Total $ 760 $ 731 $ 695
Components of the Provision for income taxes	The components of the Provision for income taxes for the years ended December 31, were as follows: (Millions of dollars) Current income tax provision: 2023 2022 2021 U.S. $ 36 $ 116 $ 101 Non-U.S. 150 95 162 State (U.S.) 3 5 5 189 216 268 Deferred income tax provision (benefit): U.S. 33 (36) (56) Non-U.S. (31) 8 (33) State (U.S.) 1 1 (1) 3 (27) (90) Total Provision for income taxes $ 192 $ 189 $ 178
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) 2023 2022 Assets: Other assets $ 144 $ 115 Liabilities: Other liabilities (617) (610) Deferred income taxes, net $ (473) $ (495) Our consolidated deferred income taxes consisted of the following components as of December 31: (Millions of dollars) Deferred income tax assets: 2023 2022 Allowance for credit losses $ 95 $ 97 Tax carryforwards 103 93 Revenue timing differences 16 20 214 210 Deferred income tax liabilities: Capital assets, including lease basis differences (430) (461) Deferred income tax on translation adjustment (200) (219) Undistributed profits of non-U.S. subsidiaries (16) — (646) (680) Valuation allowance for deferred income tax assets (39) (53) Other, net (2) 28 Deferred income taxes, net $ (473) $ (495)
Summary of net operating loss carryforwards	At December 31, 2023, deferred tax assets for U.S. state losses of $6 million expire on or before 2040. Of these U.S. state deferred tax assets, $1 million were reduced by valuation allowances. In some U.S. state income tax jurisdictions, we join with other Caterpillar entities in filing combined income tax returns. In other U.S. state income tax jurisdictions, we file on a separate, stand-alone basis. Deferred tax assets for U.S. federal loss carryforwards of $1 million expire before 2027 and were reduced by a full valuation allowance. Deferred tax assets for losses and credit carryforwards of non-U.S. entities of $11 million expire on or before 2034, while the remaining $85 million may be carried over indefinitely. Non-U.S. entities that have not yet demonstrated consistent and/or sustainable profitability to support the recognition of net deferred income tax assets have recorded valuation allowances of $37 million against tax carryforwards and other deferred 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) 2023 2022 2021 Reconciliation of unrecognized income tax benefits (1) : Balance at beginning of year $ 127 $ 131 $ 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 prior year (2) — — Reductions for income tax positions related to settlements (6) (4) — Balance at end of year $ 119 $ 127 $ 131 Amount that, if recognized, would impact the effective tax rate $ 119 $ 127 $ 131 (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, 2023
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) 2023 2022 Carrying Fair Carrying Fair Fair Reference Assets Finance receivables, net (excluding finance leases (1) ) $ 20,746 $ 20,330 $ 19,085 $ 18,448 3 Note 2 Liabilities Long-term debt $ 23,612 $ 23,299 $ 21,418 $ 20,686 2 Note 7 (1) Represents finance leases and failed sale leasebacks of $7.00 billion and $7.36 billion as of December 31, 2023 and 2022, respectively.

Transactions with Related Par_2

Transactions with Related Parties (Tables)	12 Months Ended
	Dec. 31, 2023
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 $2.44 billion from Caterpillar, and Caterpillar may borrow up to $2.14 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) 2023 2022 2021 Payable to Caterpillar - borrowings as of December 31, $ 24 $ 23 $ 22 Payable to Caterpillar - other as of December 31, 113 101 73 Notes receivable from Caterpillar as of December 31, 527 482 389 Other receivables from Caterpillar as of December 31, (2) 39 133 70 Interest expense 1 1 — Interest income on Notes Receivable with Caterpillar (1) 21 17 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) 2023 2022 2021 Purchases made $ 53,382 $ 47,158 $ 40,140 Revenue earned 617 417 301 Purchased Receivables as of December 31, 3,949 4,297 4,462

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	12 Months Ended
	Dec. 31, 2023
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) 2023 External Profit Interest Depreciation Provision Assets at December 31, 2023 Capital North America $ 1,786 $ 596 $ 463 $ 512 $ 32 $ 16,303 $ 961 EAME 368 101 103 57 3 5,117 73 Asia/Pacific 278 105 102 4 (2) 3,435 4 Latin America 348 103 174 12 1 2,583 21 Mining 341 99 80 126 (2) 3,059 229 Power 58 (1) 26 2 16 662 — Total Segments 3,179 1,003 948 713 48 31,159 1,288 Unallocated 83 (507) 394 — 1 2,054 9 Timing (14) 2 — — — 20 — Methodology — 262 (309) — — 145 — Inter-segment Eliminations (1) — — — — — (266) — Total $ 3,248 $ 760 $ 1,033 $ 713 $ 49 $ 33,112 $ 1,297 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 Power 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 Power 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 (1) Elimination is primarily related to intercompany loans.
Geographic information	Geographic information: (Millions of dollars) 2023 2022 2021 Revenues Inside U.S. $ 1,879 $ 1,551 $ 1,422 All other 1,369 1,183 1,140 Total $ 3,248 $ 2,734 $ 2,562 Equipment on operating leases, net and property 2023 2022 Inside U.S. $ 2,066 $ 2,036 Inside Canada 539 507 All other 544 500 Total $ 3,149 $ 3,043

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2023
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, 2023
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

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prior Period Reclassification Adjustment	$ 52	$ 52	$ 25

Finance Receivables (Details)

Finance Receivables (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable
Financing Receivable, before Allowance for Credit Loss	$ 28,077	$ 26,787
Less: Allowance for credit losses	(331)	(346)	$ (337)
Total finance receivables, net	$ 27,746	26,441
Financing Receivable, Weighted Average Term	51 months
Financing Receivable, Weighted Average Remaining Term	27 months
Retail loans
Accounts, Notes, Loans and Financing Receivable
Financing Receivable, before Allowance for Credit Loss	$ 16,501	14,973
Retail leases
Accounts, Notes, Loans and Financing Receivable
Financing Receivable, before Allowance for Credit Loss	6,554	6,965
Caterpillar purchased receivables
Accounts, Notes, Loans and Financing Receivable
Financing Receivable, before Allowance for Credit Loss	3,949	4,297	$ 4,462
Wholesale loans
Accounts, Notes, Loans and Financing Receivable
Financing Receivable, before Allowance for Credit Loss	1,069	545
Wholesale leases
Accounts, Notes, Loans and Financing Receivable
Financing Receivable, before Allowance for Credit Loss	$ 4	$ 7

Finance Receivables (Details 2)

Finance Receivables (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable
2024	$ 14,675
2025	6,069
2026	4,092
2027	2,087
2028	899
Thereafter	217
Total	28,039
Guaranteed residual value	459
Unguaranteed residual value	638
Financing Receivable, Unamortized Loan Cost (Fee) and Purchase Premium (Discount)	1,059
Financing Receivable, before Allowance for Credit Loss	28,077	$ 26,787
Finance lease revenue (included in retail and wholesale finance revenue)	419	429	$ 481
Retail loans
Accounts, Notes, Loans and Financing Receivable
2024	7,316
2025	4,207
2026	2,884
2027	1,571
2028	719
Thereafter	170
Total	16,867
Guaranteed residual value	10
Unguaranteed residual value	1
Financing Receivable, Unamortized Loan Cost (Fee) and Purchase Premium (Discount)	377
Financing Receivable, before Allowance for Credit Loss	16,501	14,973
Retail leases
Accounts, Notes, Loans and Financing Receivable
2024	2,603
2025	1,749
2026	1,063
2027	505
2028	179
Thereafter	47
Total	6,146
Guaranteed residual value	415
Unguaranteed residual value	634
Financing Receivable, Unamortized Loan Cost (Fee) and Purchase Premium (Discount)	641
Financing Receivable, before Allowance for Credit Loss	6,554	6,965
Caterpillar Purchased Receivables
Accounts, Notes, Loans and Financing Receivable
2024	3,986
2025	0
2026	0
2027	0
2028	0
Thereafter	0
Total	3,986
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	3,949	4,297	$ 4,462
Wholesale loans
Accounts, Notes, Loans and Financing Receivable
2024	769
2025	112
2026	145
2027	11
2028	1
Thereafter	0
Total	1,038
Guaranteed residual value	33
Unguaranteed residual value	2
Financing Receivable, Unamortized Loan Cost (Fee) and Purchase Premium (Discount)	4
Financing Receivable, before Allowance for Credit Loss	1,069	545
Wholesale leases
Accounts, Notes, Loans and Financing Receivable
2024	1
2025	1
2026	0
2027	0
2028	0
Thereafter	0
Total	2
Guaranteed residual value	1
Unguaranteed residual value	1
Financing Receivable, Unamortized Loan Cost (Fee) and Purchase Premium (Discount)	0
Financing Receivable, before Allowance for Credit Loss	$ 4	$ 7

Finance Receivables (Details 3)

Finance Receivables (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Losses
Beginning Balance	$ 346	$ 337
Write-offs	(115)	(108)
Recoveries	50	62
Provision for credit losses(1)	47	58
Other	3	(3)
Ending Balance	331	346
Finance Receivables	28,077	26,787
Customer
Financing Receivable, Allowance for Credit Losses
Beginning Balance	277	251
Write-offs	(115)	(108)
Recoveries	50	62
Provision for credit losses(1)	61	75
Other	3	(3)
Ending Balance	276	277
Finance Receivables	21,177	20,353
Dealer
Financing Receivable, Allowance for Credit Losses
Beginning Balance	65	82
Write-offs	0	0
Recoveries	0	0
Provision for credit losses(1)	(14)	(17)
Other	0	0
Ending Balance	51	65
Finance Receivables	2,951	2,137
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	4	4
Finance Receivables	$ 3,949	$ 4,297

Finance Receivables (Details 4)

Finance Receivables (Details 4) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator
Financing Receivable, before Allowance for Credit Loss	$ 28,077	$ 26,787
Customer
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	9,000	8,180
2022 and 2021, respectively	5,612	6,296
2021 and 2020, respectively	3,741	3,015
2020 and 2019, respectively	1,430	1,409
2019 and 2018, respectively	546	549
Prior	255	408
Revolving Finance Receivables	593	496
Financing Receivable, before Allowance for Credit Loss	21,177	20,353
Customer | Current
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	8,908	8,086
2022 and 2021, respectively	5,479	6,148
2021 and 2020, respectively	3,636	2,918
2020 and 2019, respectively	1,378	1,370
2019 and 2018, respectively	519	536
Prior	236	396
Revolving Finance Receivables	585	485
Financing Receivable, before Allowance for Credit Loss	20,741	19,939
Customer | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	52	52
2022 and 2021, respectively	57	59
2021 and 2020, respectively	45	37
2020 and 2019, respectively	20	16
2019 and 2018, respectively	8	6
Prior	1	2
Revolving Finance Receivables	4	4
Financing Receivable, before Allowance for Credit Loss	187	176
Customer | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	18	21
2022 and 2021, respectively	21	29
2021 and 2020, respectively	15	15
2020 and 2019, respectively	7	7
2019 and 2018, respectively	3	1
Prior	1	0
Revolving Finance Receivables	2	3
Financing Receivable, before Allowance for Credit Loss	67	76
Customer | 91+ days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	22	21
2022 and 2021, respectively	55	60
2021 and 2020, respectively	45	45
2020 and 2019, respectively	25	16
2019 and 2018, respectively	16	6
Prior	17	10
Revolving Finance Receivables	2	4
Financing Receivable, before Allowance for Credit Loss	182	162
Customer | North America | Current
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	4,430	3,915
2022 and 2021, respectively	2,628	3,276
2021 and 2020, respectively	2,000	1,525
2020 and 2019, respectively	745	653
2019 and 2018, respectively	220	206
Prior	32	34
Revolving Finance Receivables	312	240
Financing Receivable, before Allowance for Credit Loss	10,367	9,849
Customer | North America | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	28	25
2022 and 2021, respectively	31	26
2021 and 2020, respectively	24	18
2020 and 2019, respectively	14	12
2019 and 2018, respectively	7	4
Prior	1	1
Revolving Finance Receivables	4	4
Financing Receivable, before Allowance for Credit Loss	109	90
Customer | North America | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	10	9
2022 and 2021, respectively	11	15
2021 and 2020, respectively	8	7
2020 and 2019, respectively	4	3
2019 and 2018, respectively	1	1
Prior	0	0
Revolving Finance Receivables	2	3
Financing Receivable, before Allowance for Credit Loss	36	38
Customer | North America | 91+ days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	12	11
2022 and 2021, respectively	23	16
2021 and 2020, respectively	18	12
2020 and 2019, respectively	9	6
2019 and 2018, respectively	4	4
Prior	1	3
Revolving Finance Receivables	2	4
Financing Receivable, before Allowance for Credit Loss	69	56
Customer | EAME | Current
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	1,336	1,270
2022 and 2021, respectively	895	953
2021 and 2020, respectively	588	477
2020 and 2019, respectively	258	280
2019 and 2018, respectively	111	155
Prior	105	68
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	3,293	3,203
Customer | EAME | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	10	10
2022 and 2021, respectively	9	12
2021 and 2020, respectively	7	7
2020 and 2019, respectively	3	1
2019 and 2018, respectively	1	1
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	30	31
Customer | EAME | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	4	8
2022 and 2021, respectively	3	4
2021 and 2020, respectively	3	3
2020 and 2019, respectively	1	1
2019 and 2018, respectively	1	0
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	12	16
Customer | EAME | 91+ days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	7	6
2022 and 2021, respectively	17	25
2021 and 2020, respectively	15	16
2020 and 2019, respectively	8	4
2019 and 2018, respectively	3	1
Prior	1	1
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	51	53
Customer | Asia/Pacific | Current
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	1,134	1,174
2022 and 2021, respectively	690	805
2021 and 2020, respectively	368	393
2020 and 2019, respectively	115	124
2019 and 2018, respectively	37	37
Prior	7	5
Revolving Finance Receivables	45	40
Financing Receivable, before Allowance for Credit Loss	2,396	2,578
Customer | Asia/Pacific | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	5	10
2022 and 2021, respectively	7	12
2021 and 2020, respectively	8	8
2020 and 2019, respectively	2	1
2019 and 2018, respectively	0	1
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	22	32
Customer | Asia/Pacific | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	2	2
2022 and 2021, respectively	3	5
2021 and 2020, respectively	3	4
2020 and 2019, respectively	2	2
2019 and 2018, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	10	13
Customer | Asia/Pacific | 91+ days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	1	2
2022 and 2021, respectively	5	6
2021 and 2020, respectively	3	6
2020 and 2019, respectively	3	4
2019 and 2018, respectively	1	0
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	13	18
Customer | Mining | Current
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	1,106	875
2022 and 2021, respectively	694	627
2021 and 2020, respectively	396	227
2020 and 2019, respectively	126	193
2019 and 2018, respectively	86	94
Prior	27	108
Revolving Finance Receivables	66	80
Financing Receivable, before Allowance for Credit Loss	2,501	2,204
Customer | Mining | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	0
2022 and 2021, respectively	0	1
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	0	1
Customer | Mining | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	0
2022 and 2021, respectively	0	0
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	1	0
Prior	1	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	2	0
Customer | Mining | 91+ days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	0
2022 and 2021, respectively	0	0
2021 and 2020, respectively	1	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
Prior	1	1
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	2	1
Customer | Latin America | Current
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	750	770
2022 and 2021, respectively	520	400
2021 and 2020, respectively	219	150
2020 and 2019, respectively	59	69
2019 and 2018, respectively	23	26
Prior	6	20
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	1,577	1,435
Customer | Latin America | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	9	7
2022 and 2021, respectively	10	8
2021 and 2020, respectively	6	4
2020 and 2019, respectively	1	2
2019 and 2018, respectively	0	0
Prior	0	1
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	26	22
Customer | Latin America | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	2	2
2022 and 2021, respectively	4	5
2021 and 2020, respectively	1	1
2020 and 2019, respectively	0	1
2019 and 2018, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	7	9
Customer | Latin America | 91+ days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	2	2
2022 and 2021, respectively	10	13
2021 and 2020, respectively	8	11
2020 and 2019, respectively	5	2
2019 and 2018, respectively	8	1
Prior	11	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	44	29
Customer | Power | Current
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	152	82
2022 and 2021, respectively	52	87
2021 and 2020, respectively	65	146
2020 and 2019, respectively	75	51
2019 and 2018, respectively	42	18
Prior	59	161
Revolving Finance Receivables	162	125
Financing Receivable, before Allowance for Credit Loss	607	670
Customer | Power | 31-60 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	0
2022 and 2021, respectively	0	0
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	0	0
Customer | Power | 61-90 days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	0
2022 and 2021, respectively	0	0
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
Prior	0	0
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	0	0
Customer | Power | 91+ days past due
Financing Receivable, Credit Quality Indicator
2023 and 2022, respectively	0	0
2022 and 2021, respectively	0	0
2021 and 2020, respectively	0	0
2020 and 2019, respectively	0	0
2019 and 2018, respectively	0	0
Prior	3	5
Revolving Finance Receivables	0	0
Financing Receivable, before Allowance for Credit Loss	3	5
Dealer
Financing Receivable, Credit Quality Indicator
Financing Receivable, before Allowance for Credit Loss	2,951	2,137
Dealer | Total past due
Financing Receivable, Credit Quality Indicator
Prior	$ 47	$ 62

Finance Receivables (Details 5)

Finance Receivables (Details 5) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	$ 28,077	$ 26,787
Caterpillar Purchased Receivables
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	3,949	4,297
Caterpillar Purchased Receivables | 31-60 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	21	28
Caterpillar Purchased Receivables | 61-90 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	10	11
Caterpillar Purchased Receivables | 91+ days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	23	22
Caterpillar Purchased Receivables | Total Past Due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	54	61
Caterpillar Purchased Receivables | Current
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	3,895	4,236
Caterpillar Purchased Receivables | North America
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	2,236	2,480
Caterpillar Purchased Receivables | North America | 31-60 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	15	11
Caterpillar Purchased Receivables | North America | 61-90 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	5	7
Caterpillar Purchased Receivables | North America | 91+ days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	4	4
Caterpillar Purchased Receivables | North America | Total Past Due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	24	22
Caterpillar Purchased Receivables | North America | Current
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	2,212	2,458
Caterpillar Purchased Receivables | EAME
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	737	815
Caterpillar Purchased Receivables | EAME | 31-60 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	3	1
Caterpillar Purchased Receivables | EAME | 61-90 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	1	0
Caterpillar Purchased Receivables | EAME | 91+ days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	1	2
Caterpillar Purchased Receivables | EAME | Total Past Due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	5	3
Caterpillar Purchased Receivables | EAME | Current
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	732	812
Caterpillar Purchased Receivables | Asia/Pacific
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	595	565
Caterpillar Purchased Receivables | Asia/Pacific | 31-60 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	2	6
Caterpillar Purchased Receivables | Asia/Pacific | 61-90 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	0	2
Caterpillar Purchased Receivables | Asia/Pacific | 91+ days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	0	2
Caterpillar Purchased Receivables | Asia/Pacific | Total Past Due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	2	10
Caterpillar Purchased Receivables | Asia/Pacific | Current
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	593	555
Caterpillar Purchased Receivables | Latin America
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	371	431
Caterpillar Purchased Receivables | Latin America | 31-60 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	1	9
Caterpillar Purchased Receivables | Latin America | 61-90 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	4	2
Caterpillar Purchased Receivables | Latin America | 91+ days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	18	14
Caterpillar Purchased Receivables | Latin America | Total Past Due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	23	25
Caterpillar Purchased Receivables | Latin America | Current
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	348	406
Caterpillar Purchased Receivables | Power
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	10	6
Caterpillar Purchased Receivables | Power | 31-60 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	0	1
Caterpillar Purchased Receivables | Power | 61-90 days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	0	0
Caterpillar Purchased Receivables | Power | 91+ days past due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	0	0
Caterpillar Purchased Receivables | Power | Total Past Due
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	0	1
Caterpillar Purchased Receivables | Power | Current
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	10	5
Dealer
Financing Receivable, Past Due
Financing Receivable, before Allowance for Credit Loss	2,951	2,137
Dealer | Total past due
Financing Receivable, Past Due
Prior	$ 47	$ 62

Finance Receivables (Details 6)

Finance Receivables (Details 6) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Customer
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	$ 152	$ 156
Amortized Cost, Non-accrual Without an Allowance	0	16
Amortized Cost, 91+ Still Accruing	44	28
Customer | North America
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	52	52
Amortized Cost, Non-accrual Without an Allowance	0	4
Amortized Cost, 91+ Still Accruing	20	11
Customer | EAME
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	34	43
Amortized Cost, Non-accrual Without an Allowance	0	0
Amortized Cost, 91+ Still Accruing	18	10
Customer | Asia/Pacific
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	8	11
Amortized Cost, Non-accrual Without an Allowance	0	0
Amortized Cost, 91+ Still Accruing	5	7
Customer | Mining
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	2	0
Amortized Cost, Non-accrual Without an Allowance	0	1
Amortized Cost, 91+ Still Accruing	0	0
Customer | Latin America
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	48	45
Amortized Cost, Non-accrual Without an Allowance	0	0
Amortized Cost, 91+ Still Accruing	1	0
Customer | Power
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	8	5
Amortized Cost, Non-accrual Without an Allowance	0	11
Amortized Cost, 91+ Still Accruing	0	0
Dealer | Latin America
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance	$ 47	$ 62

Finance Receivables (Details 7)

Finance Receivables (Details 7) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) contracts	Dec. 31, 2021 USD ($) contracts
Caterpillar Purchased Receivables
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0
Dealer
Finance receivables modified as TDRs
Number of Contracts | contracts	0	0
Customer
Finance receivables modified as TDRs
Financing Receivable, Troubled Debt Restructuring, Premodification	$ 65	$ 62
Financing Receivable, Troubled Debt Restructuring, Postmodification	64	52
TDRs with a payment default which had been modified within twelve months prior to the default date
Financing Receivable, Modified, Subsequent Default	5	29
Customer | North America
Finance receivables modified as TDRs
Financing Receivable, Troubled Debt Restructuring, Premodification	6	6
Financing Receivable, Troubled Debt Restructuring, Postmodification	6	6
TDRs with a payment default which had been modified within twelve months prior to the default date
Financing Receivable, Modified, Subsequent Default	0	1
Customer | EAME
Finance receivables modified as TDRs
Financing Receivable, Troubled Debt Restructuring, Premodification	1	3
Financing Receivable, Troubled Debt Restructuring, Postmodification	1	3
Customer | Asia/Pacific
Finance receivables modified as TDRs
Financing Receivable, Troubled Debt Restructuring, Premodification	0	4
Financing Receivable, Troubled Debt Restructuring, Postmodification	0	4
TDRs with a payment default which had been modified within twelve months prior to the default date
Financing Receivable, Modified, Subsequent Default	0	6
Customer | Mining
Finance receivables modified as TDRs
Financing Receivable, Troubled Debt Restructuring, Premodification	16	11
Financing Receivable, Troubled Debt Restructuring, Postmodification	16	5
TDRs with a payment default which had been modified within twelve months prior to the default date
Financing Receivable, Modified, Subsequent Default	5	0
Customer | Latin America
Finance receivables modified as TDRs
Financing Receivable, Troubled Debt Restructuring, Premodification	22	12
Financing Receivable, Troubled Debt Restructuring, Postmodification	22	12
TDRs with a payment default which had been modified within twelve months prior to the default date
Financing Receivable, Modified, Subsequent Default	0	15
Customer | Power
Finance receivables modified as TDRs
Financing Receivable, Troubled Debt Restructuring, Premodification	20	26
Financing Receivable, Troubled Debt Restructuring, Postmodification	19	22
TDRs with a payment default which had been modified within twelve months prior to the default date
Financing Receivable, Modified, Subsequent Default	$ 0	$ 7

Finance Receivables (Details 8)

Finance Receivables (Details 8)	12 Months Ended
	Dec. 31, 2023 Rate
Construction related industries
Concentration Risk
Concentration, percent of total portfolio	40%

Finance Receivables (Details 9)

Finance Receivables (Details 9) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Write-offs by origination year [Line Items]
Total	$ 115	$ 108
Period after which unpaid installments are considered as past due	30 days
Customer
Write-offs by origination year [Line Items]
2023	$ 5
2022	29
2021	30
2020	20
2019	6
Prior	13
Revolving Finance Receivables	12
Total	115	$ 108
Customer | North America
Write-offs by origination year [Line Items]
2023	2
2022	11
2021	11
2020	5
2019	3
Prior	2
Revolving Finance Receivables	12
Total	46
Customer | EAME
Write-offs by origination year [Line Items]
2023	1
2022	5
2021	6
2020	4
2019	1
Prior	0
Revolving Finance Receivables	0
Total	17
Customer | Asia/Pacific
Write-offs by origination year [Line Items]
2023	2
2022	5
2021	8
2020	5
2019	1
Prior	0
Revolving Finance Receivables	0
Total	21
Customer | Latin America
Write-offs by origination year [Line Items]
2023	0
2022	8
2021	5
2020	6
2019	1
Prior	10
Revolving Finance Receivables	0
Total	30
Customer | Power
Write-offs by origination year [Line Items]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	1
Revolving Finance Receivables	0
Total	$ 1

Finance Receivables (Details 10

Finance Receivables (Details 10) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)
Dealer
Financing Receivable, Modifications
Financing Receivable, Modified in Period, Amount	$ 0
Caterpillar Purchased Receivables
Financing Receivable, Modifications
Financing Receivable, Modified in Period, Amount	0
Customer
Financing Receivable, Modifications
Financing Receivable, Modified in Period, Amount	$ 47
Financing Receivable, Modified in Period, to Total Financing Receivables, Percentage	0.17%
Financing Receivable, Modified, Weighted Average Term Increase from Modification	15 months
Financing Receivable, Modified, Weighted Average Payment Delay	7 months
Customer | EAME | 31-60 days past due
Financing Receivable, Modifications
Financing Receivable, Modified, Accumulated	$ 2
Customer | EAME | 61-90 days past due
Financing Receivable, Modifications
Financing Receivable, Modified, Accumulated	1
Customer | EAME | 91+ days past due
Financing Receivable, Modifications
Financing Receivable, Modified, Accumulated	$ 1

Equipment on Operating Leases_2

Equipment on Operating Leases (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment
Equipment on operating leases, at cost	$ 4,433	$ 4,321
Less: Accumulated depreciation	(1,419)	(1,410)
Equipment on operating leases, net	3,014	$ 2,911
Payments due for operating leases
2024	755
2025	515
2026	282
2027	120
2028	55
Thereafter	10
Total	$ 1,737

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Other Assets [Abstract]
Customer and other miscellaneous receivables	$ 332	$ 419
Collateral held for resale, at net realizable value	119	102
Deferred and refundable income taxes	188	148
Property and equipment, net	135	132
Other	324	454
Total Other assets	$ 1,098	$ 1,255

Credit Commitments (Details)

Credit Commitments (Details) $ in Millions	6 Months Ended	12 Months Ended
	Dec. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Line of Credit Facility
Number of global credit facilities	3	3
Caterpillar's consolidated net worth	$ 19,550	$ 19,550
Minimum net worth required under the Credit Facility	$ 9,000	$ 9,000
Covenant interest coverage ratio, Numerator		1.73
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	6.88	6.95
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	2,440	2,440
Maximum lending capacity to Caterpillar, Variable lending agreements	2,140	$ 2,140
Term lending agreements, maximum remaining maturity		10 years
Caterpillar
Line of Credit Facility
Maximum borrowing capacity from Caterpillar, Variable lending agreements	2,440	$ 2,440
Maximum lending capacity to Caterpillar, Variable lending agreements	2,140	2,140
Notes receivable from Caterpillar	527	527	$ 482	$ 389
Notes Payable	24	24	23	$ 22
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	3,540	3,540
Amount outstanding	$ 853	$ 853	$ 979

Short-Term Borrowings (Details)

Short-Term Borrowings (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Short-term Debt
Short-term borrowings, Balance	$ 4,643	$ 5,954
Commercial paper, net
Short-term Debt
Short-term borrowings, Balance	$ 4,069	$ 5,455
Short-term borrowings, Avg. Rate	5.20%	4.20%
Bank borrowings and other
Short-term Debt
Short-term borrowings, Balance	$ 330	$ 234
Short-term borrowings, Avg. Rate	10%	11.40%
Variable denomination floating rate demand notes
Short-term Debt
Short-term borrowings, Balance	$ 244	$ 265
Short-term borrowings, Avg. Rate	5.20%	3.40%

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Jan. 08, 2024	Dec. 31, 2022
Debt Instrument
Medium-term notes, maximum remaining maturity	5 years
Fair value adjustments	$ (46)		$ (112)
Long-term debt	23,612		21,418
Long-term debt outstanding maturity:
2024	7,719
2025	7,811
2026	5,634
2027	2,479
2028	14
Face amount of medium-term notes excluded from current maturities	500
Medium-term notes
Debt Instrument
Long-term debt issued	7,950
Long-term debt issued at fixed interest rates	5,420
Long-term debt issued at floating interest rates	2,530
Long term debt, gross	23,165		20,821
Unamortized discount and debt issuance costs	(34)		(37)
Fair value adjustments	(46)		(112)
Long-term debt	$ 23,085		$ 20,672
Long-term debt, Avg. Rate	3.20%		2.20%
Medium-term notes | Subsequent Event
Debt Instrument
Long term debt, gross		$ 500
Bank borrowings and other
Debt Instrument
Long-term debt	$ 527		$ 746
Long-term debt, Avg. Rate	6.60%		5.30%

Derivative Financial Instrume_3

Derivative Financial Instruments and Risk Management (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Derivatives, Fair Value
Asset Fair Value	$ 285	$ 417
Derivative Liability, Subject to Master Netting Arrangement, before Offset	(220)	(199)
Designated as Hedging Instrument [Member] | Other Assets [Member]
Derivatives, Fair Value
Asset Fair Value	257	392
Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Derivatives, Fair Value
Derivative Liability, Subject to Master Netting Arrangement, before Offset	(141)	(157)
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Assets [Member]
Derivatives, Fair Value
Asset Fair Value	207	305
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Liabilities [Member]
Derivatives, Fair Value
Derivative Liability, Subject to Master Netting Arrangement, before Offset	(73)	(44)
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Assets [Member]
Derivatives, Fair Value
Asset Fair Value	50	87
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Liabilities [Member]
Derivatives, Fair Value
Derivative Liability, Subject to Master Netting Arrangement, before Offset	(68)	(113)
Not Designated as Hedging Instrument [Member] | Other Assets [Member]
Derivatives, Fair Value
Asset Fair Value	28	25
Not Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Derivatives, Fair Value
Derivative Liability, Subject to Master Netting Arrangement, before Offset	(79)	(42)
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Assets [Member]
Derivatives, Fair Value
Asset Fair Value	28	25
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	$ (79)	$ (42)

Derivative Financial Instrume_4

Derivative Financial Instruments and Risk Management (Details 2) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Derivative
Derivative instruments, notional amount	$ 15,730	$ 13,180

Derivative Financial Instrume_5

Derivative Financial Instruments and Risk Management (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Derivative Instruments, Gain (Loss)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax	$ (13)	$ 421	$ 209
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	10	(384)	(166)
Not Designated as Hedging Instrument [Member] | Fair Value Hedges
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments	(114)	(118)	113
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	(39)	(111)	89
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	(75)	(7)	24
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	(13)	421	209
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	(10)	384	166
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	(22)	310	190
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	(68)	370	194
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	9	111	19
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	$ 58	$ 14	$ (28)

Derivative Financial Instrume_6

Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Derivatives, Fair Value
Carry Value of the Hedged Liabilities	$ 3,110	$ 2,091
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities	(46)	(112)
Current maturities of long-term debt
Derivatives, Fair Value
Carry Value of the Hedged Liabilities	982	0
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities	$ (23)	$ 0
Hedged Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Long-term debt
Derivatives, Fair Value
Carry Value of the Hedged Liabilities	$ 2,128	$ 2,091
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities	$ (23)	$ (112)
Hedged Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities

Derivative Financial Instrume_7

Derivative Financial Instruments and Risk Management (Details 5) $ in Millions	12 Months Ended
	Dec. 31, 2023 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	$ (19)

Derivative Financial Instrume_8

Derivative Financial Instruments and Risk Management (Details 6) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Asset, Subject to Master Netting Arrangement, before Offset	$ 285	$ 417
Assets, Financial instruments not offset	(106)	(108)
Assets, Net amount	179	309
Liability Fair Value	(220)	(199)
Liabilities, Financial instruments not offset	106	108
Liabilities, Net amount	$ (114)	$ (91)

Derivative Financial Instrume_9

Derivative Financial Instruments and Risk Management (Details 7) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Concentration Risk
Derivatives, Maximum exposure to credit loss	$ 285	$ 417

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of year	$ (1,068)	$ (762)	$ (551)
Gains (losses) on foreign currency translation	55	(276)	(169)
Less: Tax provision/(benefit)	(17)	30	42
Net gains (losses) on foreign currency translation	72	(306)	(211)
Other comprehensive income (loss), net of tax	72	(306)	(211)
Balance at end of year	(996)	(1,068)	(762)
Balance at beginning of year	21	(12)	(44)
Gains (losses) deferred	(13)	421	209
Less: Tax provision/(benefit)	(3)	97	24
Net gains (losses) deferred	(10)	324	185
(Gains) losses reclassified to earnings	10	(384)	(166)
Less: Tax (provision)/benefit	3	(93)	(13)
Net (gains) losses reclassified to earnings	7	(291)	(153)
Other comprehensive income (loss), net of tax	(3)	33	32
Balance at end of year	18	21	(12)
Total Accumulated other comprehensive income (loss) at end of year	$ (978)	$ (1,047)	$ (774)

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Unused commitments to extend credit to customers	$ 774
Reserve for Credit Losses, Unused Commitments	25
Guarantor Obligations
Guarantees, maximum potential amount of future payments	25	$ 26
Assets	33,112	31,957	$ 32,387
Liabilities	29,942	28,994
Variable Interest Entity, Primary Beneficiary
Guarantor Obligations
Assets	1,350	971
Liabilities	1,350	970
Maximum
Guarantor Obligations
Related recorded liability	$ 1	$ 1

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of statutory rate to effective income tax rate
Taxes computed at U.S. statutory rates	$ 160	$ 154	$ 146
U.S. statutory tax rate (as a percent)	21%	21%	21%
(Decreases) increases in taxes resulting from:
State income tax, net of federal tax	$ 5	$ 4	$ 3
State Income Tax, net of Federal Tax (as a percent)	0.50%	0.50%	0.40%
Non-U.S. subsidiaries taxed at other than the U.S. rate	$ 21	$ 19	$ 22
Non-U.S. Subsidiaries taxed at other than the U.S. rate (as a percent)	2.80%	2.60%	3.20%
Valuation allowances	$ (14)	$ 15	$ 5
Valuation allowances (as a percent)	(1.80%)	2.10%	0.70%
Dividend withholding tax & indefinite reinvestment change	$ 30	$ 0	$ 0
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent	4%	0%	0%
Foreign currency translation taxed at non- U.S. subsidiaries	$ (10)	$ (4)	$ 3
Foreign currency translation taxed at non-U.S subsidiaries (as a percent)	(1.30%)	(0.50%)	0.40%
Other, net	$ 0	$ 1	$ (1)
Other, net (as a percent)	0%	0.10%	(0.10%)
Provision for income taxes	$ 192	$ 189	$ 178
Provision for income taxes, Effective Income Tax Rate (as a percent)	25.20%	25.80%	25.60%
Valuation allowances	$ (14)	$ 15	$ 5
Undistributed Earnings of Foreign Subsidiaries	4,000
Valuation Allowance [Line Items]
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	(14)	$ 15	$ 5
Non-U.S. taxing jurisdictions
(Decreases) increases in taxes resulting from:
Valuation allowances	8
Valuation allowances	8
Valuation Allowance [Line Items]
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	8
Foreign Tax Authority, Specific Entity
(Decreases) increases in taxes resulting from:
Valuation allowances	22
Valuation allowances	22
Valuation Allowance [Line Items]
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	$ 22

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Components of Profit before income taxes
U.S.	$ 384	$ 439	$ 288
Non-U.S.	376	292	407
Profit before income taxes	760	731	695
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]
U.S.	36	116	101
Non-U.S.	150	95	162
State (U.S.)	3	5	5
Current income tax provision	189	216	268
Deferred income tax provision (benefit):
U.S.	33	(36)	(56)
Non-U.S.	(31)	8	(33)
State (U.S.)	1	1	(1)
Deferred income tax provision	3	(27)	(90)
Total Provision for income taxes	192	189	$ 178
Income taxes payable	$ 190	$ 275

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets
Other assets	$ 144	$ 115
Deferred tax liabilities
Other liabilities	617	610
Deferred income taxes, net	$ (473)	$ (495)

Income Taxes (Details 4)

Income Taxes (Details 4) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Components of Deferred Tax Assets [Abstract]
Allowance for credit losses	$ 95	$ 97
Tax carryforwards	103	93
Revenue timing differences	16	20
Deferred Tax Assets, Other	(2)	28
Deferred tax assets, gross	214	210
Components of Deferred Tax Liabilities [Abstract]
Capital assets, including lease basis differences	(430)	(461)
Deferred income tax on translation adjustment	200	219
Undistributed profits of non-U.S. subsidiaries	(16)	0
Deferred Tax Liabilities, Gross	(646)	(680)
Valuation allowance for deferred income tax assets	(39)	(53)
Deferred income taxes, net	$ (473)	$ (495)

Income Taxes (Details 5)

Income Taxes (Details 5) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Net operating loss (NOL) carryforwards
Deferred Tax Assets, Valuation Allowance	$ 39	$ 53
U.S. state taxing jurisdictions
Net operating loss (NOL) carryforwards
Gross deferred income tax asset associated with NOL carryforwards	6
Deferred Tax Assets, Valuation Allowance	1
Non-U.S. taxing jurisdictions
Net operating loss (NOL) carryforwards
NOL carryforwards	11
NOL carryforwards, Valuation allowance	37
Non-U.S. taxing jurisdictions | Expiration Date 2026-2032 [Member]
Net operating loss (NOL) carryforwards
NOL carryforwards	85
Foreign Tax Authority, Specific Entity
Net operating loss (NOL) carryforwards
Deferred Tax Assets, Tax Deferred Expense	$ 48

Income Taxes (Details 6)

Income Taxes (Details 6) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of unrecognized income tax benefits
Unrecognized tax benefits, beginning of year	$ 127	$ 131	$ 119
Additions for income tax positions related to current year	0	0	2
Additions for income tax positions related to prior year	0	0	10
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions	(2)	0	0
Reductions for income tax positions related to settlements	6	4	0
Unrecognized tax benefits, end of year	119	127	131
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	119	127	$ 131
Accrued interest and penalties	$ 6	$ 3

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Recurring basis | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivative financial instruments, net asset (liability) position	$ 65	$ 218

Fair Value Measurements (Deta_2

Fair Value Measurements (Details 2) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Loans carried at fair value	$ 55	$ 68

Fair Value Measurements (Deta_3

Fair Value Measurements (Details 3) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Level 2
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Long-term debt	$ 23,299	$ 20,686
Fair Value, Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	20,330	18,448
Carrying  Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)	20,746	19,085
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Long-term debt	23,612	21,418
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	$ 7,000	$ 7,360

Transactions with Related Par_3

Transactions with Related Parties (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction
Dividend paid to Caterpillar	$ 425	$ 275	$ 850
Maximum borrowing capacity from Caterpillar, Variable lending agreements	2,440
Maximum lending capacity to Caterpillar, Variable lending agreements	2,140
Payable to dealers and others	157	163
Other receivables from Caterpillar	332	419
Interest	1,033	566	455
Revenue earned on purchased receivables	617	417	301
Financing Receivable, before Allowance for Credit Loss	28,077	26,787
Revenues	3,248	2,734	2,562
Depreciation on equipment leased to others	713	718	755
General, operating and administrative	588	531	528
Caterpillar
Related Party Transaction
Dividend paid to Caterpillar	425	275	850
Maximum borrowing capacity from Caterpillar, Variable lending agreements	2,440
Maximum lending capacity to Caterpillar, Variable lending agreements	2,140
Notes Payable	24	23	22
Payable to dealers and others	113	101	73
Notes receivable from Caterpillar	527	482	389
Other receivables from Caterpillar	39	133	70
Interest	1	1	0
Interest income on Notes Receivable with Caterpillar(1)	21	17	14
Purchases of receivables from Caterpillar	53,382	47,158	40,140
Revenue earned on purchased receivables	617	417	301
Marketing program payments received	332	339	351
Total portfolio, which includes Finance receivables, net and Equipment on operating lease, net	155	143
Revenues	27	24	25
Depreciation on equipment leased to others	18	17	17
Amount of our portfolio that is subject to guarantees by Caterpillar	376	448
General, operating and administrative	50	52	52
Administrative support services to certain Caterpillar subsidiaries reimbursed by Caterpillar	15	13	12
Caterpillar Purchased Receivables
Related Party Transaction
Financing Receivable, before Allowance for Credit Loss	$ 3,949	$ 4,297	$ 4,462

Segment and Geographic Inform_3

Segment and Geographic Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information
External revenues	$ 3,248	$ 2,734	$ 2,562
Profit before income taxes	760	731	695
Interest expense	1,033	566	455
Depreciation on equipment leased to others	713	718	755
Provision for credit losses	49	81	70
Assets	33,112	31,957	32,387
Capital expenditures	1,297	1,139	1,216
Operating Segments
Segment Reporting Information
External revenues	3,179	2,711	2,558
Profit before income taxes	1,003	881	825
Interest expense	948	608	473
Depreciation on equipment leased to others	713	718	755
Provision for credit losses	48	81	70
Assets	31,159	30,257	31,098
Capital expenditures	1,288	1,130	1,208
Unallocated
Segment Reporting Information
External revenues	83	35	15
Profit before income taxes	(507)	(312)	(295)
Interest expense	394	204	179
Depreciation on equipment leased to others	0	0	0
Provision for credit losses	1	0	0
Assets	2,054	1,628	1,458
Capital expenditures	9	9	8
Segment Reconciling Items | Timing
Segment Reporting Information
External revenues	(14)	(12)	(11)
Profit before income taxes	2	4	6
Interest expense	0	0	0
Depreciation on equipment leased to others	0	0	0
Provision for credit losses	0	0	0
Assets	20	18	15
Capital expenditures	0	0	0
Segment Reconciling Items | Methodology
Segment Reporting Information
External revenues	0	0	0
Profit before income taxes	262	158	159
Interest expense	(309)	(246)	(197)
Depreciation on equipment leased to others	0	0	0
Provision for credit losses	0	0	0
Assets	145	278	18
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	(266)	(224)	(202)
Capital expenditures	0	0	0
North America | Operating Segments
Segment Reporting Information
External revenues	1,786	1,512	1,401
Profit before income taxes	596	550	419
Interest expense	463	263	250
Depreciation on equipment leased to others	512	503	542
Provision for credit losses	32	25	15
Assets	16,303	15,229	15,755
Capital expenditures	961	862	888
EAME | Operating Segments
Segment Reporting Information
External revenues	368	285	274
Profit before income taxes	101	12	73
Interest expense	103	79	21
Depreciation on equipment leased to others	57	55	60
Provision for credit losses	3	49	30
Assets	5,117	5,067	5,192
Capital expenditures	73	117	92
Asia/Pacific | Operating Segments
Segment Reporting Information
External revenues	278	283	340
Profit before income taxes	105	134	170
Interest expense	102	73	84
Depreciation on equipment leased to others	4	5	7
Provision for credit losses	(2)	6	9
Assets	3,435	3,921	4,117
Capital expenditures	4	6	10
Latin America | Operating Segments
Segment Reporting Information
External revenues	348	284	202
Profit before income taxes	103	85	24
Interest expense	174	136	68
Depreciation on equipment leased to others	12	10	8
Provision for credit losses	1	7	52
Assets	2,583	2,636	2,405
Capital expenditures	21	25	12
Mining | Operating Segments
Segment Reporting Information
External revenues	341	294	289
Profit before income taxes	99	63	98
Interest expense	80	42	37
Depreciation on equipment leased to others	126	143	136
Provision for credit losses	(2)	9	(15)
Assets	3,059	2,700	2,672
Capital expenditures	229	120	206
Power | Operating Segments
Segment Reporting Information
External revenues	58	53	52
Profit before income taxes	(1)	37	41
Interest expense	26	15	13
Depreciation on equipment leased to others	2	2	2
Provision for credit losses	16	(15)	(21)
Assets	662	704	957
Capital expenditures	$ 0	$ 0	$ 0

Segment and Geographic Inform_4

Segment and Geographic Information (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets
External revenues	$ 3,248	$ 2,734	$ 2,562
Equipment on operating leases, net and property and equipment, net (included in Other assets)	3,149	3,043
Inside U.S.
Revenues from External Customers and Long-Lived Assets
External revenues	1,879	1,551	1,422
Equipment on operating leases, net and property and equipment, net (included in Other assets)	2,066	2,036
Inside Canada
Revenues from External Customers and Long-Lived Assets
Equipment on operating leases, net and property and equipment, net (included in Other assets)	539	507
All other
Revenues from External Customers and Long-Lived Assets
External revenues	1,369	1,183	$ 1,140
Equipment on operating leases, net and property and equipment, net (included in Other assets)	$ 544	$ 500