CATERPILLAR INCCAT

CATERPILLAR INC Debt Disclosure

10-KFiled Feb 14, 20193 min read
Long-term debt

 
 
 
December 31,
 
(Millions of dollars)
Effective Yield to Maturity 1
 
2018
 
2017
 
Machinery, Energy & Transportation:
 
 
 

 
 

 
Notes—$1,250 million of 3.900% due 2021 2
4.01%
 
$
1,247

 
$
1,246

 
Notes—$759 million of 5.200% due 2041 2
5.27%
 
751

 
752

 
Debentures—$120 million of 9.375% due 2021
9.41%
 
120

 
120

 
Debentures—$500 million of 2.600% due 2022 2
2.70%
 
498

 
498

 
Debentures—$82 million of 8.000% due 2023
8.06%
 
82

 
82

 
Debentures—$1,000 million of 3.400% due 2024
3.46%
 
997

 
997

 
Debentures—$193 million of 6.625% due 2028 2
6.68%
 
192

 
192

 
Debentures—$242 million of 7.300% due 2031 2
7.38%
 
240

 
241

 
Debentures—$307 million of 5.300% due 2035 2
8.64%
 
218

 
216

 
Debentures—$460 million of 6.050% due 2036 2
6.12%
 
456

 
456

 
Debentures—$65 million of 8.250% due 2038 2
8.38%
 
64

 
64

 
Debentures—$160 million of 6.950% due 2042 2
7.02%
 
158

 
159

 
Debentures—$1,722 million of 3.803% due 2042 2
6.39%
 
1,257

 
1,236

 
Debentures—$500 million of 4.300% due 2044
4.39%
 
493

 
493

 
Debentures—$500 million of 4.750% due 2064
4.81%
 
494

 
494

 
Debentures—$246 million of 7.375% due 2097 2
7.51%
 
241

 
242

 
Capital lease obligations 3
 
 
456

 
437

 
Other 4
 
 
41

 
4

 
Total Machinery, Energy & Transportation
 
 
8,005

 
7,929

 
Financial Products:
 
 
 

 
 

 
Medium-term notes
 
 
16,592

 
15,415

 
Other
 
 
403

 
503

 
Total Financial Products
 
 
16,995

 
15,918

 
Total long-term debt due after one year
 
 
$
25,000

 
$
23,847

 

1 
Effective yield to maturity includes the impact of discounts, premiums and debt issuance costs.
2 
Redeemable at our option in whole or in part at any time at a redemption price equal to the greater of (i) 100% of the principal amount or (ii) the discounted present value of the notes or debentures, calculated in accordance with the terms of such notes or debentures.
3 
Includes $360 million related to a financing transaction in Japan entered into in 2017.
4 
Includes $38 million of financing activity related to a build-to-suit real estate transaction.
 
 
 
 
 


All outstanding notes and debentures are unsecured and rank equally with one another.

Cat Financial's medium-term notes are offered by prospectus and are issued through agents at fixed and floating rates. Medium-term notes due after one year have a weighted average interest rate of 2.6% with remaining maturities up to 9 years at December 31, 2018.
 
The above table includes $238 million of medium-term notes that can be called at par.

The aggregate amounts of maturities of long-term debt during each of the years 2019 through 2023, including amounts due within one year and classified as current, are:

 
 
December 31,
(Millions of dollars)
 
2019
 
2020
 
2021
 
2022
 
2023
Machinery, Energy & Transportation
 
$
10

 
$
35

 
$
1,398

 
$
510

 
$
92

Financial Products
 
5,820

 
6,407

 
4,884

 
2,053

 
2,158

 
 
$
5,830

 
$
6,442

 
$
6,282

 
$
2,563

 
$
2,250

 
 
 
 
 
 
 
 
 
 
 


Interest paid on short-term and long-term borrowings for 2018, 2017 and 2016 was $1,088 million, $1,131 million and $1,075 million, respectively. Interest paid in 2017 includes a prepayment fee of $58 million related to the early retirement of our 7.90% senior notes due December 2018.
 
Please refer to Note 18 and Table III for fair value information on long-term debt.
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Historical Timeline

Fiscal YearFiled
2018Feb 14, 2019Showing above
2017Feb 15, 2018
2016Feb 15, 2017
2015Feb 16, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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