Caterpillar, Inc

Executive Summary

Caterpillar Inc. (Caterpillar) is a world leader in the manufacture of construction and mining equipment, as well as diesel and natural gas engines. Caterpillar is also a service provider through Caterpillar Financial Services that provides financing to customers of its construction and mining equipment. The company is a large player in the Industrial sector and has maintained a global presence in the market for decades.

This report will provide:

1. A description of the Caterpillar company covering its background, product offerings, company vision and important company events;

2. A review of Caterpillar’s financial position, net assets, and profitability;

3. A review of its accounting practices; and

4. A discussion on the impacts of Caterpillar’s accounting practices.

The report will also look at the accounting misconduct that involves a cross-border deal where Caterpillar purchased ERA Mining Machinery Ltd. and its subsidiary Siwei Mechanical & Electrical Equipment Manufacturing Co. for $677 million after which Caterpillar was forced to write-off approximately $580 million; nearly 90% of what it paid for the deal.

Description of the company

The Caterpillar Tractor Co. was formed in 1925 as a result of the merger of the C.L. Best Gas Tractor Company and the Holt Caterpillar Company. Restructure as Caterpillar Inc. in 1986, and it is currently one of the world’s largest manufacturers of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. Caterpillar has over 3 million machines in usage and it runs in three primary lines of business such as Machinery, Engines, and Financial Products. Caterpillar currently has a presence in over 200 countries.

The Company operates three primary lines of business: Machinery, Engines, and

Financial Products. When it comes to the machinery section of product offerings, Caterpillar has a list of some 400 products for purchase through its dealer...