6. CASH FLOW INFORMATION
For purposes of the statement of consolidated cash flows, the company considers investments with purchased maturities of three months or less to be cash equivalents. Substantially all of the company’s short-term borrowings, excluding the current maturities of long-term borrowings, mature or may require payment within three months or less.
The equipment operations sell a significant portion of their trade receivables to financial services. These intercompany cash flows are eliminated in the consolidated cash flows.
All cash flows from the changes in trade accounts and notes receivable (see Note 12) are classified as operating activities in the statement of consolidated cash flows as these receivables arise from sales to the company’s customers. Cash flows from financing receivables that are related to sales to the company’s customers (see Note 12) are also included in operating activities. The remaining financing receivables are related to the financing of equipment sold by independent dealers and are included in investing activities.
The company had the following non-cash operating and investing activities that were not included in the statement of consolidated cash flows. The company transferred inventory to equipment on operating leases of $659 million, $563 million and $449 million in 2013, 2012 and 2011, respectively. The company also had accounts payable related to purchases of property and equipment of $198 million, $185 million and $135 million at October 31, 2013, 2012 and 2011, respectively.
Cash payments for interest and income taxes consisted of the following in millions of dollars:
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2013 |
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2012 |
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2011 | |||
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Interest: |
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Equipment operations |
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$ |
511 |
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$ |
420 |
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$ |
370 |
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Financial services |
|
502 |
|
638 |
|
616 | |||
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Intercompany eliminations |
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(247) |
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(248) |
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(231) | |||
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Consolidated |
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$ |
766 |
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$ |
810 |
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$ |
755 |
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Income taxes: |
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Equipment operations |
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$ |
1,863 |
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$ |
1,704 |
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$ |
1,379 |
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Financial services |
|
270 |
|
207 |
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336 | |||
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Intercompany eliminations |
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(179) |
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(167) |
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(266) | |||
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Consolidated |
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$ |
1,954 |
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$ |
1,744 |
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$ |
1,449 |
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