What are SFAS 160 and how do they affect Caterpillar's financials?

SFAS 160, 'Noncontrolling Interests in Consolidated Financial Statements—an amendment of ARB No. 51,' is an accounting standard that requires companies to present noncontrolling interests (minority interests) as equity in their consolidated financial statements. The adoption of SFAS 160 requires retrospective adjustment to previously reported financial statements to reflect this new presentation.

How does the company reorganization impact the financial statements?

The company implemented a reorganization effective January 1, 2009, which changed its operating and reportable segments. The consolidated financial statements have been retrospectively adjusted to reflect these new segment structures for all periods presented, which may affect how investors view the performance of different business units.

Where can I find the adjusted financial statements?

The adjusted consolidated financial statements and notes, reflecting the retrospective adjustments for SFAS 160 and the segment reorganization, are attached to this Form 8-K filing as Exhibit 99.1.

CAT 8-K SEC Disclosure — May 14, 2009

Q: What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to report retrospective adjustments made to Caterpillar's previously issued consolidated financial statements for the year ended December 31, 2008. These adjustments stem from the adoption of a new accounting standard (SFAS 160) and a corporate reorganization.

Summary

Caterpillar Inc. (CAT) filed an 8-K on May 14, 2009, to disclose retrospective adjustments to its previously issued consolidated financial statements for the year ended December 31, 2008. These adjustments are primarily related to the adoption of SFAS 160, a new accounting standard concerning noncontrolling interests, and a company-wide reorganization that altered its operating and reportable segments. Investors should note that these changes impact previously reported financial figures and segment reporting. While the filing itself does not present new operational data, it provides updated historical financial statements reflecting these accounting and structural changes. The company has attached the revised consolidated financial statements and notes as Exhibit 99.1, along with a consent from its independent registered public accounting firm.

Key Highlights

1Caterpillar is retrospectively adjusting its previously filed 2008 financial statements.
2The adjustments are due to the adoption of SFAS 160, an accounting standard for noncontrolling interests.
3A company reorganization effective January 1, 2009, led to changes in operating and reportable segments.
4These adjustments are applied retrospectively to all previously presented periods.
5Revised consolidated financial statements and notes are provided as Exhibit 99.1.
6The filing includes the consent of Caterpillar's independent registered public accounting firm.

CATERPILLAR INC 8-K Report, Corporate Update (May 14, 2009)

Summary

Key Highlights

Frequently Asked Questions