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Non-Current Liabilities

Unrecognized Tax Benefits - Impacting Effective Tax Rate

Caterpillar Unrecognized Tax Benefits - Impacting Effective Tax Rate increased by 5.5% to $1.2B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 5.5%, from $1.14B to $1.2B. Over 5 years (FY 2020 to FY 2025), Unrecognized Tax Benefits - Impacting Effective Tax Rate shows a downward trend with a -6.3% CAGR.

Analysis

StatementBalance Sheet Statement
SectionNon-Current Liabilities
CategoryRisk
SignalContext dependent
VolatilityModerate
First reportedQ4 2014
Last reportedQ4 2025Feb 13, 2026

How to read this metric

A decrease may indicate the resolution of tax uncertainties, while a high balance suggests significant ongoing tax disputes or aggressive positions.

Detailed definition

This metric represents the amount of tax benefits that have not been recognized in the financial statements because they...

Peer comparison

Standard disclosure for multinational corporations with complex tax jurisdictions.

Metric ID: unrecognized_tax_benefits_impacting_etr

Historical Data

5 periods
 Q4 '21Q4 '22Q4 '23Q4 '24Q4 '25
Value$1.69B$874M$997M$1.14B$1.2B
QoQ Change-48.2%+14.1%+14.0%+5.5%
YoY Change-48.2%+14.1%+14.0%+5.5%
Range$874M$1.69B
CAGR-29.0%
Avg YoY Growth-3.7%
Median YoY Growth+9.7%
Current Streak3 quarters growth

Unrecognized Tax Benefits - Impacting Effective Tax Rate at Other Companies

Frequently Asked Questions

What is Caterpillar's unrecognized tax benefits - impacting effective tax rate?
Caterpillar (CAT) reported unrecognized tax benefits - impacting effective tax rate of $1.2B in Q4 2025.
How has Caterpillar's unrecognized tax benefits - impacting effective tax rate changed year-over-year?
Caterpillar's unrecognized tax benefits - impacting effective tax rate increased by 5.5% year-over-year, from $1.14B to $1.2B.
What is the long-term trend for Caterpillar's unrecognized tax benefits - impacting effective tax rate?
Over 5 years (2020 to 2025), Caterpillar's unrecognized tax benefits - impacting effective tax rate has grown at a -6.3% compound annual growth rate (CAGR), from $1.66B to $1.2B.
What does unrecognized tax benefits - impacting effective tax rate mean?
Potential tax savings that the company hasn't claimed yet, which would lower its tax rate if they were approved.