CATERPILLAR FINANCIAL SERVICES CORP - 10-Q Quarterly Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2004

Commission File No. 0-13295

CATERPILLAR FINANCIAL SERVICES CORPORATION

(Exact name of Registrant as specified in its charter)

Delaware	37-1105865
(State of incorporation)	(IRS Employer I.D. No.)

2120 West End Ave. Nashville, Tennessee	37203-0001
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (615) 341-1000

The Registrant is a wholly-owned subsidiary of Caterpillar Inc. and meets the conditions set forth in General Instruction (H)(1)(a) and (b) of Form 10-Q, and is therefore filing this form with the reduced disclosure format.

Indicate by a check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No o

Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes o No x

At September 30, 2004, one share of common stock of the Registrant was outstanding, which is owned by Caterpillar Inc.

Caterpillar Financial Services Corporation

Form 10-Q for the Quarter Ended September 30, 2004

PART I FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements (Unaudited)

Consolidated Statement of Financial Position

Consolidated Statement of Profit

Consolidated Statement of Changes in Stockholder’s Equity

Consolidated Statement of Cash Flows

Notes to Consolidated Financial Statements

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview: Third Quarter 2004 vs. Third Quarter 2003

Critical Accounting Policies

Three Months Ended September 30, 2004 Vs. Three Months Ended September 30, 2003

Nine Months Ended September 30, 2004 Vs. Nine Months Ended September 30, 2003

Capital Resources and Liquidity

Item 4. Controls and Procedures

PART II. OTHER INFORMATION

Item 6. Exhibits

Signatures

Part I. FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements (Unaudited)

In addition to our accompanying unaudited consolidated financial statements, we suggest that you read our Annual Report on Form 10-K. Although not incorporated by reference in this document, additional information about us is available in our 2003 Annual Report and at http://www.catfinancial.com. The documents mentioned above are available by writing to: Legal Dept., Caterpillar Financial Services Corp.; 2120 West End Ave.; Nashville, TN 37203-0001.

Caterpillar Financial Services Corporation

Consolidated Statement of Financial Position

(Unaudited)

(Dollars in Millions, except share data)

		September 30,		December 31,		September 30,
		2004		2003		2003
Assets:
Cash and cash equivalents	$	104	$	69	$	89
Finance receivables
Retail notes receivable		4,277		4,372		4,171
Wholesale notes receivable		4,236		3,224		2,956
Notes receivable from Caterpillar		304		378		387
Finance leases and installment sale contracts - Retail		10,649		9,510		8,787
Finance leases and installment sale contracts - Wholesale		193		159		154
		19,659		17,643		16,455
Less: Unearned income		1,150		1,046		986
Allowance for credit losses		258		241		235
Total net finance receivables		18,251		16,356		15,234

Equipment on operating leases,
less accumulated depreciation		2,379		2,319		2,183
Deferred income taxes		23		19		13
Other assets		1,026		996		1,012
Total assets	$	21,783	$	19,759	$	18,531


Liabilities and stockholder's equity:
Payable to dealers and others	$	184	$	177	$	185
Payable to Caterpillar - other		21		16		16
Accrued expenses		165		175		205
Income taxes payable		91		54		64
Payable to Caterpillar - borrowings		265		475		420
Short-term borrowings		4,782		4,510		3,489
Current maturities of long-term debt		3,589		2,943		3,791
Long-term debt		9,856		8,852		7,999
Deferred income taxes and other liabilities		308		259		228
Total liabilities		19,261		17,461		16,397

Common stock - $1 par value
Authorized: 2,000 shares; Issued and
outstanding: one share (at paid in amount)		745		745		745
Retained earnings		1,620		1,403		1,336
Accumulated other comprehensive income		157		150		53
Total stockholder's equity		2,522		2,298		2,134

Total liabilities and stockholder's equity	$	21,783	$	19,759	$	18, 531

See Notes to Consolidated Financial Statements (unaudited).

Caterpillar Financial Services Corporation

Consolidated Statement of Profit

(Unaudited)

(Dollars in Millions)

	Three Months Ended				Nine Months Ended
		Sept. 30,		Sept. 30,		Sept. 30,		Sept. 30,
		2004		2003		2004		2003
Revenues:
Wholesale finance	$	56	$	45	$	147	$	123
Retail finance		210		191		620		587
Operating lease		179		171		533		486
Other		31		38		100		97
Total revenues		476		445		1,400		1,293

Expenses:
Interest		132		119		374		367
Depreciation on assets leased to others		143		133		425		381
General, operating, and administrative		65		59		204		171
Provision for credit losses		20		28		72		78
Other		3		3		8		7
Total expenses		363		342