Caterpillar and It's Subsidiaries

Topics: Balance sheet, Caterpillar Inc., Asset Pages: 9 (2122 words) Published: February 19, 2012
Advanced Accounting Paper #2
Chris Till

Caterpillar Inc. was originally organized as Caterpillar Tractor Co. in 1925 in the State of California. It was created in a merger of the Holt Manufacturing Company and the C. L. Best Tractor Company.  In 1986, the company reorganized as Caterpillar Inc. The company’s headquarters is now located in Peoria, IL. Their principal business activity is the design, manufacturing, marketing and sales of machinery and engines. They also sell financial products and insurance to customers through a worldwide dealer network. Caterpillar is the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. With more than $70 billion in assets, Caterpillar is ranked number one in its industry.

The company operates in three principal lines of business:
Machinery— Includes the design, manufacture, marketing and sales of construction, mining and forestry machinery—track and wheel tractors, track and wheel loaders, pipe-layers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment and related parts. Engines— Includes the design, manufacture, marketing and sales of engines for Caterpillar machinery; electric power generation systems; marine, petroleum, construction, industrial, agricultural and other applications and related parts. Also includes remanufacturing of Caterpillar engines and a variety of Caterpillar machine and engine components and remanufacturing services for other companies. Financial Products— Consists primarily of Caterpillar Financial Services Corporation (Cat Financial), Caterpillar Insurance Holdings Inc. (Cat Insurance) and their respective subsidiaries. Cat Financial provides a wide range of financing alternatives to customers and dealers for Caterpillar machinery and engines, Solar gas turbines as well as other equipment and marine vessels. Cat Financial also extends loans to customers and dealers. Cat Insurance provides various forms of insurance to customers and dealers to help support the purchase and lease of equipment.

Their subsidiaries consist of companies that “contribute to making sustainable progress possible and driving positive change on every continent.” * Caterpillar Financial Services Corporation

* Caterpillar Insurance Holdings, Inc.
* Caterpillar Logistics Services, Inc.
* Caterpillar Marine Power Systems
* FG Wilson (Engineering) Ltd.
* Perkins Engines Co. Limited
* Progress Rail Services Corporation
* Solar Turbines Incorporated
* Electro-Motive Diesel, Inc. (EMD)
Caterpillar operates the above listed subsidiaries in 25 segments that are highly integrated; 12 of the segments are reportable and they classify them all into their three principal lines of business, machinery, engines, and financial products. None of their subsidiaries are reported separately on the 10K. The following schedule shows 2010 reportable segments, it includes intra entity transactions, and shows the high level of integration. Reportable Segments

 |  | External
sales and
revenues|  | Inter-segment
sales &
revenues|  | Total sales
revenues|  | Depreciation
amortization|  | Accountable
profit (loss)|  | Accountable
assets at
December 31|  | Capital
expenditures|  |
2010|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Building Construction Products |  | $| 2,217|  | $| 33|  | $| 2,250|  | $| 27|  | $| 84|  | $| 885|  | $| 72|  | Cat Japan |  | 1,225|  | 2,352|  | 3,577|  | 200|  | 59|  | 2,533|  | 85|  | Core Components |  | 1,234|  | 1,618|  | 2,852|  | 81|  | 589|  | 1,140|  | 73|  | Earthmoving |  | 5,045|  | 113|  | 5,158|  | 107|  | 63|  | 2,886...
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