SEC examines Caterpillar’s accounting for Bucyrus

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.