What is Caterpillar's unrecognized tax benefits?

Caterpillar (CAT) reported unrecognized tax benefits of $1.35B in Q4 2025.

How has Caterpillar's unrecognized tax benefits changed year-over-year?

Caterpillar's unrecognized tax benefits increased by 4.5% year-over-year, from $1.29B to $1.35B.

What is the long-term trend for Caterpillar's unrecognized tax benefits?

Over 5 years (2020 to 2025), Caterpillar's unrecognized tax benefits has grown at a -5.2% compound annual growth rate (CAGR), from $1.76B to $1.35B.

What does unrecognized tax benefits mean?

Potential tax savings that the company has claimed but might not be allowed to keep if audited.

Discontinued — last reported Q3 '14

Unrecognized Tax Benefits

Non-Current Liabilities

Caterpillar Unrecognized Tax Benefits increased by 4.5% to $1.35B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 4.5%, from $1.29B to $1.35B. Over 5 years (FY 2020 to FY 2025), Unrecognized Tax Benefits shows a downward trend with a -5.2% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.

Analysis

StatementBalance Sheet Statement

SectionNon-Current Liabilities

CategoryRisk

SignalLower is better

VolatilityModerate

First reportedQ4 2007

Last reportedQ3 2014

How to read this metric

An increase suggests more aggressive tax positions or increased scrutiny, while a decrease indicates the resolution of tax uncertainties.

Detailed definition

This represents the aggregate amount of tax benefits from uncertain tax positions that the company has taken but has not...

Peer comparison

Standard for multinational corporations; peers with complex global operations typically carry significant unrecognized tax benefits.

Metric ID: unrecognized_tax_benefits

Historical Data

5 periods

	Q4 '21	Q4 '22	Q4 '23	Q4 '24	Q4 '25
Value	$1.89B	$1.14B	$1.22B	$1.29B	$1.35B
QoQ Change	—	-39.6%	+7.3%	+5.4%	+4.5%
YoY Change	—	-39.6%	+7.3%	+5.4%	+4.5%

Range$1.14B – $1.89B

CAGR-28.6%

Avg YoY Growth-5.6%

Median YoY Growth+4.9%

Current Streak3 quarters growth

Frequently Asked Questions

What is Caterpillar's unrecognized tax benefits?: Caterpillar (CAT) reported unrecognized tax benefits of $1.35B in Q4 2025.
How has Caterpillar's unrecognized tax benefits changed year-over-year?: Caterpillar's unrecognized tax benefits increased by 4.5% year-over-year, from $1.29B to $1.35B.
What is the long-term trend for Caterpillar's unrecognized tax benefits?: Over 5 years (2020 to 2025), Caterpillar's unrecognized tax benefits has grown at a -5.2% compound annual growth rate (CAGR), from $1.76B to $1.35B.
What does unrecognized tax benefits mean?: Potential tax savings that the company has claimed but might not be allowed to keep if audited.