CATERPILLAR INC. There were no finance receivables modified as TDRs during the years ended December 31, 2020, 2019 and 2018 for the Dealer portfolio segment. Cat Financial's finance receivables in the Customer portfolio segment modified as TDRs were as follows:
(Millions of dollars) Year ended December 31, 2020
Number Pre-TDR Post-TDR
of Contracts Amortized Cost Amortized Cost
North America 40.USD 13 USD 13
EAME ......................................................4 - -
Asia/Pacific1 183 12 12
Mining2 63 35 35
Latin America3 77 45 45
Caterpillar Power Finance ........................................22 115 115
Total 389.USD 220 USD 220
Year ended December 31, 2019
Number Pre-TDR Post-TDR
of Contracts Recorded Recorded
Investment Investment
North America.....................................
EAME...........................................
Asia/Pacific....................................... 11 17 - 8 5 11 17 - 8 3
15 19 - 2 5 21 USD USD
Mining.......................................... 168 165
Latin America......................................
Caterpillar Power Finance..............................
Total............................................ 62 USD 209 USD 204
Year ended December 31, 2018
Number Pre-TDR Post-TDR
of Contracts Recorded Recorded
Investment Investment
North America.....................................
EAME...........................................
21 - - 29 21 - - 29
Asia/Pacific.......................................
38 - - 1 1 12 USD 3 USD 3
Mining..........................................
133 99
Latin America......................................
Caterpillar Power Finance..............................
Total............................................ 52 USD 186 USD 152 1 During the year ended December 31, 2020, 183 contracts with a pre-TDR and post-TDR amortized cost of USD12 million were related to seven customers.
2 During the year ended December 31, 2020, 63 contracts with a pre-TDR and post-TDR amortized cost of USD35 million were related to five customers.
3 During the year ended December 31, 2020, 77 contracts with a pre-TDR and post-TDR amortized cost of USD45 million were related to ten customers.
105
Table of Contents
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, were as follows:
Year ended December 31, Year ended December 31, Year ended December 31,
2020 2019 2018
(Millions of dollars)
Post-TDR Number Post-TDR Number Post-TDR
Number of Contracts Amortized of Contracts Recorded of Contracts Recorded
Cost Investment Investment
North America........ 4 USD 8 11 USD 5 10 USD 10
EAME.............. 2 10 - - - -
Asia/Pacific........... 27 2 - - - -
Mining............. 21 10 - - - -
Latin America......... 4 1 - - 3 1
Caterpillar Power Finance. 2 18 1 10 3 33
Total................ 60 USD 49 12 USD 15 16 USD 44 8. Inventories Inventories (principally using the LIFO method) are comprised of the following:
December 31,
(Millions of dollars)
2020 2019
Raw materials.................................................... USD 4,021 USD 4,263
Work-in-process.................................................. 1,052 1,147
Finished goods................................................... 6,054 5,598
Supplies........................................................ 275 258
Total inventories.................................................. USD 11,402 USD 11,266 We had long-term material purchase obligations of USD309 million at December 31, 2020. 6. Property, plant and equipment
December 31,
Useful
(Millions of dollars) Lives (Years) 2020 2019
Land............................................. - USD 681 USD 664
Buildings and land improvements......................... 20-45 7,091 6,710
Machinery, equipment and other.......................... 2-10 13,004 13,287
Software......................................... 3-7 1,679 1,728
Equipment leased to others............................. 1-7 6,077 6,208
Construction-in-process............................... - 739 620
Total property, plant and equipment, at cost................... 29,271 29,217
Less: Accumulated depreciation.......................... (16,870) (16,313)
Property, plant and equipment-net......................... USD 12,401 USD 12,904 106
Table of Contents
10. Intangible assets and goodwill
A. Intangible assets
Intangible assets were comprised of the following:
December 31, 2020
Weighted Gross
(Millions of dollars) Amortizable Carrying Accumulated
Life (Years) Amount Amortization Net
Customer relationships.............................. 15 USD 2,493 USD (1,600) USD 893
Intellectual property................................ 12 1,439 (1,073) 366
Other.......................................... 14 164 (115) 49
Total finite-lived intangible assets....................... 14 USD 4,096 USD (2,788) USD 1,308 December 31, 2019
Weighted Gross
Amortizable Carrying Accumulated
Life (Years) Amount Amortization Net
Customer relationships.............................. 15 USD 2,450 USD (1,406) USD 1,044 Intellectual property............................... 12 1,510 (1,055) 455 Other.......................................... 13 191 (125) 66 Total finite-lived intangible assets...................... 14 USD 4,151 USD (2,586) USD 1,565
Finite-lived intangible assets are amortized over their estimated useful lives and tested for impairment if events or changes in circumstances indicate that the asset may be impaired.
Amortization expense related to intangible assets was USD311 million, USD324 million and USD331 million for 2020, 2019 and 2018, respectively.
As of December 31, 2020, amortization expense related to intangible assets is expected to be:
(Millions of dollars)
2021 2022 2023 2024 2025 Thereafter USD300 USD282 USD223 USD165 USD155 USD183
B. Goodwill
There were no goodwill impairments during 2020, 2019 or 2018.
107
Table of Contents
The changes in carrying amount of goodwill by reportable segment for the years ended December 31, 2020 and 2019 were as follows:
December 31, Other December 31,
(Millions of dollars)
2019 Acquisitions Adjustments 1 2020 Construction Industries
Goodwill....................... USD 306 USD - USD 14 USD 320
Impairments ................................(22) - - (22)
Net goodwill ................................284 - 14 298
Resource Industries
Goodwill .................................4,156 - 97 4,253
Impairments ..............................(1,175) - - (1,175)
Net goodwill ..............................2,981 - 97 3,078
Energy & Transportation
Goodwill .................................2,875 41 43 2,959 All Other 2
Goodwill ...................................56 - 3 59 Consolidated total
Goodwill .................................7,393 41 157 7,591
Impairments ..............................(1,197) - - (1,197)
Net goodwill..................... USD 6,196 USD 41 USD 157 USD 6,394
December 31, Other December 31, 2018 Acquisitions Adjustments 1 2019
Construction Industries
Goodwill....................... USD 304 USD - USD 2 USD 306
Impairments (22) - - (22)
Net goodwill ................................282 - 2 284 Resource Industries
Goodwill 4,172 (16) 4,156
(MORE TO FOLLOW) Dow Jones Newswires
February 18, 2021 14:47 ET (19:47 GMT)
