CATERPILLAR INC (CAT) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that CATERPILLAR INC surfaced in its latest filing.

• Exposure to the European Union's General Data Protection Regulation
• Exposure to the California Consumer Privacy Act
• Cat Financial's borrowing agreements are primarily with financial institutions
• Loans made by Cat Financial at fixed interest rates
• Loans made by Cat Financial and financing extended to Cat Financial at variable rates using floating reference rates or indices, including SOFR
• Covenants require maintaining a minimum consolidated net worth
• Cat Financial must not exceed a certain leverage ratio (consolidated debt to consolidated net worth, calculated monthly as the six-month average and at each December 31)
• Cat Financial must maintain a minimum interest coverage ratio (profit excluding income taxes, interest expense and net gain/loss from interest rate derivatives divided by interest expense, calculated quarterly for the prior four quarters)
• Cat Financial is restricted from terminating, amending or modifying its support agreement with the parent
• The company maintains defined benefit pension plans
• U.S. regulations issued by Customs and Border Protection apply
• Bureau of Industry and Security regulations apply
• Office of Antiboycott Compliance regulations apply
• Directorate of Defense Trade Controls regulations apply
• Office of Foreign Assets Control regulations apply
• U.S. Foreign Corrupt Practices Act generally prohibits improper payments to improperly influence foreign government officials
• Subject to continuous examination of income tax returns by the U.S. Internal Revenue Service and other tax authorities
• Cat Financial's U.S. activities are subject to the Dodd-Frank Wall Street Reform and Consumer Protection Act
• The Company’s amended and restated bylaws provide that the Court of Chancery of the State of Delaware will be the exclusive forum for certain legal actions between the Company and its shareholders