Caterpillar Inc. says the SEC is looking into accounting measures taken in its 2011 acquisition of mining equipment maker Bucyrus International Inc.
The construction equipment company said in a regulatory document that the U.S. Securities and Exchange Commission issued a subpoena in September seeking information about the company’s accounting for the goodwill relating to the deal.
Goodwill is considered the intangible assets associated with a company, such as the value of its brand name. It often is used to account for how much over the book value, or below, a buyer pays in an acquisition.
Caterpillar said it is cooperating with the SEC and believes the matter will not have a material adverse effect on its financial results or position. The Peoria, Illinois-based company also said in a statement that it believes that its accounting treatment was appropriate.
The company bought Bucyrus for $7.6 billion in an effort to capitalize on demand for raw materials in emerging markets. The deal was valued at $8.6 billion including debt.
Shares of Caterpillar increased $1.13 to $101.29 in late afternoon trading Friday, in line with broader market activity.
