Summary
Caterpillar Inc. (CAT) filed a Form 8-K on December 3, 2004, to disclose revised segment reporting information. This revision is a result of management's decision to alter the internal measurement system for segment reporting starting in the first quarter of 2004. Key changes include the adoption of a current cost methodology for valuing inventory and cost of sales for segment reporting, and a modification in how interest expense is allocated to segments. Additionally, certain corporate costs previously allocated to segments are now presented as reconciling items. The company emphasizes that these changes to segment reporting methodology do not alter Caterpillar's consolidated financial position or overall results of operations for any reported period. The revised segment information is primarily detailed in Note 22 of the Consolidated Financial Statements and does not impact the Management's Discussion and Analysis (MD&A) or the financial statement amounts from the prior year's 10-K filing. The filing also includes the independent auditor's report from PricewaterhouseCoopers LLP for the year ended December 31, 2003.
Key Highlights
- 1Caterpillar is updating its segment reporting methodology effective Q1 2004.
- 2Changes include a new current cost methodology for inventory and cost of sales valuation within segments.
- 3Interest expense allocation to segments has been modified.
- 4Certain corporate costs previously allocated to segments will now be reported as reconciling items.
- 5These segment reporting changes do not impact Caterpillar's consolidated financial statements or overall results of operations.
- 6The filing includes the independent auditor's report from PricewaterhouseCoopers LLP for the fiscal year ended December 31, 2003.
- 7The revised segment details are primarily found in Note 22 to the Consolidated Financial Statements.