Caterpillar Executive to Testify Before U.S. Senate Subcommittee About Company’s Business Structure
March 31, 2014
Caterpillar contact:
Rachel Potts
Global Government & Corporate Affairs
Office: 309-675-6892
Cell: 309-573-3444
[email protected]
FOR IMMIEDATE RELEASE
Caterpillar Executive to Testify Before U.S. Senate Subcommittee About Company’s Business Structure
Company acts ethically, complies with tax law and pays its taxes
WASHINGTON, D.C. – In testimony tomorrow before the U.S. Senate Homeland Security and Governmental Affairs Permanent Subcommittee on Investigations (PSI), Caterpillar Inc. (NYSE: CAT) Vice President with responsibility for the Finance Services Division Julie Lagacy will discuss Caterpillar’s prudent and lawful business planning that is common among responsible U.S. multinational corporations.
“Caterpillar takes very seriously its obligation to follow tax law and pay what it owes,” said Lagacy. “In fact, Caterpillar’s effective income tax rate averages about 29 percent, which is one of the highest for a U.S. multinational manufacturing company. Caterpillar’s philosophy is that our business structure drives our tax structure. We comply with the tax laws enacted by Congress, by the states and by all of the many jurisdictions in which we conduct business.”
After an extensive review of Caterpillar’s international tax compliance, the PSI chairman’s staff report focuses on one aspect of our overall business: parts sales outside of the United States by Caterpillar subsidiary, Caterpillar SARL (CSARL).
“CSARL is a major operating company with thousands of people around the world who perform strategically critical work to support our customers in non-U.S. markets,” said Lagacy. “We grow and build near our customers worldwide, not only because it’s what they demand, but because remaining globally competitive helps create jobs in the United States.”
In the past 15 years, Caterpillar’s U.S. employment has increased by 13,000 jobs, growing from 38,000 in 1999 to nearly 52,000 in 2013. Many of these jobs support Caterpillar’s U.S. exports, which last year alone totaled $16 billion. While the company has more than 118,000 employees in 21 countries worldwide, it continues to invest in the U.S. with 69 manufacturing and logistics facilities in 23 states, as well as Cat dealers from coast to coast.
Lagacy’s testimony will be delivered at a hearing titled “Caterpillar’s Offshore Tax Strategy.”
About Caterpillar:
For nearly 90 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. Customers turn to Caterpillar to help them develop infrastructure, energy and natural resource assets. With 2013 sales and revenues of $55.656 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates through its three product segments - Resource Industries, Construction Industries and Power Systems - and also provides financing and related services through its Financial Products segment. For more information, visit caterpillar.com. To connect with us on social media, visit caterpillar.com/social-media.