Caterpillar Financial Services Corporation

Ownership and corporate structure

• Wholly owned finance subsidiary of Caterpillar Inc.
• Organized in 1981 in the State of Delaware
• Corporate headquarters: Nashville, Tennessee
• Operates with its subsidiaries under the name “Cat Financial”

Global footprint

• A large portion of business activity is in North America
• Additional offices and subsidiaries across Latin America, Asia/Pacific, Europe and Africa
• Provides financing worldwide for Caterpillar products and services, including power generation facilities that incorporate Caterpillar equipment

Workforce

• Approximately 2,500 full-time employees as of December 31, 2025
• About half of employees are located outside the United States
• Most U.S. employees are at-will; some highly specialized roles are covered by employment contracts specifying term and benefits

Core business and offerings

• Provides retail and wholesale financing to customers and Caterpillar dealers, and finances power generation facilities that use Caterpillar products

Financing for customers:

• Loans: Equipment purchase loans with structured payments, typically secured by the equipment
• Revolving charge accounts: Primarily for parts, service and rentals at participating Caterpillar dealers
• Leases: Non-tax finance leases and tax leases (may be classified as finance or operating leases for accounting)
  • Non-tax leases: Finance leases with a fixed purchase option at term end; lessee is considered owner for tax purposes during the term
  • Tax leases: Cat Financial is considered the owner for tax purposes; accounting classification may be operating or finance; end-of-term options include return or purchase at market value; lessee responsible for maintenance, insurance, taxes and other operating costs

Financing for dealers:

• Wholesale financing: Inventory and rental fleet financing for dealers
• Retail loans: Loans to certain dealers for working capital and other purposes, typically secured by dealership assets

Security and risk management:

• Financing is generally secured by financed equipment
• Physical damage insurance on financed equipment is typically required

Other activities:

• In some marketing programs, Caterpillar and/or dealers fund an amount at the outset and Cat Financial recognizes revenue over the financing term
• Finances power generation facilities that incorporate Caterpillar products
• Purchases short-term wholesale trade receivables from Caterpillar

Competitive and regulatory environment

• Competes with banks and financing/leasing companies such as Wells Fargo Equipment Finance, Banc of America Leasing & Capital, BNP Paribas Leasing Solutions, ANZ, Société Générale and others
• Competes with other manufacturers’ finance subsidiaries, including John Deere Capital, Komatsu Financial, Volvo Financial Services and Kubota Credit
• Operations are subject to state, federal and foreign supervision and regulation (credit granting, fees, disclosures, secured transactions, collection/repossession practices, and data privacy)
• Maintains significant agreements with Caterpillar for operational and administrative support (employee benefits administration, funding and other corporate services). See Note 12 for details.

Financial and governance information

• References agreements with Caterpillar (Note 12) and segment/geographic reporting (Note 13) in the Notes to Consolidated Financial Statements
• Files with the SEC (Forms 8-K, 10-Q, 10-K and others); related filings are available on Caterpillar’s SEC filings page and the SEC website

Human capital and culture

• Core values aligned with Caterpillar’s “Values In Action”: Safety, Integrity, Teamwork, Excellence and Commitment
• Health and safety: Recordable injury frequency rate of 0.00 in 2024 and 2025
• Talent development: Emphasis on attracting, developing, engaging and retaining a high-performing global team through leadership development, mentoring, rotation/experiential opportunities and succession planning
• Diversity and inclusion: Employee Resource Groups (ERGs) sponsored by leadership that support talent pipelines and cultural education
• Compensation and benefits: Pay-for-performance philosophy and comprehensive Total Health programs covering physical, mental, emotional, social and financial wellness; conducts an annual Employee Insights Survey

Information availability

• Electronic filings with the SEC (Forms 8-K, 10-Q, 10-K, Form S-3 and others)
• Annual and quarterly reports available via Caterpillar’s SEC filings page or the SEC website; copies available by request from Cat Financial’s Legal Department

Key numerical highlights

• Employees: ~2,500 full-time (as of 12/31/2025), ~50% located outside the United States
• Health & safety: Recordable injury frequency rate of 0.00 in 2024 and 2025
• Experience: Over 40 years of experience in financing Caterpillar products and services