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Caterpillar Reformulation

Caterpillar Reformulation. Mod 2 Kevin Lenart. Caterpillar.

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Caterpillar Reformulation

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  1. Caterpillar Reformulation Mod 2 Kevin Lenart

  2. Caterpillar • “With 2012 sales and revenues of $65.875 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services and Progress Rail Services.” (“Company,” caterpillar.com)

  3. Caterpillar (cont.) • Segments • Construction Industries – infrastructure and building construction • Energy and Power Systems – energy solutions and applications • Resource Industries – mining, lumber • Customer and Dealer Support – support, parts, training • Financial Products - financing • 2012 • Ranked 46 on Fortune 500 list • $2.5 billion spent on R&D • Record sales, revenues, profits

  4. Check

  5. Justifying NEA and NFL Classifications • Most fell into categories based on Mod 2 reading • Receivables - NEA and NFL • Split by enterprise and financing distinction • Investments in Unconsolidated Affiliated - NEA • Per reading, erring on side of caution and including (see “Further Analysis”) • Customer Advances - NEA • Related to enterprise operations • R&D - NFL • Using the notes to the financial statements, this was a removable portion of “Other Assets” • Dividends Payable - NFL • Related to shareholders and financing

  6. Check

  7. Justifying EPAT and FEAT Classifications • Most fall into categories based on Mod 2 reading • Revenues • Split by enterprise and financing distinction • Tax Rate of 37% used to determine Interest Tax Shield • Reconciled to Total Comprehensive Income

  8. Further Analysis • “Other” Accounts • Further investigation to determine what is included in them • Investment in Unconsolidated Affiliated Companies • Level of control • Treatment of Dividends Payable

  9. Sources • "Caterpillar Form 10-K." Caterpillar.com. Caterpillar, 19 Feb. 2013. Web. 14 Jan. 2014. • "Company." Caterpillar.com. Caterpillar, 2013. Web. 14 Jan. 2014. • "Fortune 500 2012: Industry: Construction and Farm Machinery." CNNMoney. Cable News Network, 21 May 2012. Web. 14 Jan. 2014.

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