How much do depreciation assumptions change CATERPILLAR INC's earnings?
Gross property and equipment, depreciation and capital spending, with an alternative useful-life calculator. Cash spending is kept separate.
Depreciation against the asset base
Gross property and equipment of $31.91B against $2.26B of depreciation and amortization implies an average life of about 14.1 years (gross assets ÷ annual charge). The charge includes amortization where the company reports them together.
| Fiscal year | Gross PP&E | Net PP&E | Depreciation & amortization | Implied life (yrs) | Capital expenditure (cash) |
|---|---|---|---|---|---|
| 2020 | $29.27B | $12.40B | $2.43B | 12.0 | $978.0M |
| 2021 | $28.87B | $12.09B | $2.35B | 12.3 | $1.09B |
| 2022 | $28.06B | $12.03B | $2.22B | 12.6 | $1.30B |
| 2023 | $28.62B | $12.68B | $2.14B | 13.4 | $1.60B |
| 2024 | $29.48B | $13.36B | $2.15B | 13.7 | $1.99B |
| 2025 | $31.91B | $15.14B | $2.26B | 14.1 | $2.82B |
8-K filed 2026-03-26 · DepreciationDepletionAndAmortization
Compare an alternative useful life
A 15-year average life gives an annual charge of $2.13B instead of $2.26B. After tax at 21%, net income would be higher by $106.6M. Cash spending ($2.82B) is unchanged.
Straight-line on gross assets, no salvage value; land and construction in progress are not separated. Treat as an order-of-magnitude comparison.