Nov. 01--Peoria-based Caterpillar on Friday said the Securities and Exchange Commission is investigating its accounting treatment of its purchase of a mining equipment maker.
Caterpillar said the federal agency issued a subpoena on Sept. 10 seeking information concerning the accounting of its $8.8 billion acquisition of Bucyrus International in 2011 and relating matters.
The investigation focuses on Caterpillar's accounting for the "goodwill," or the difference between the book value of Bucyrus and the amount Caterpillar paid for it. Goodwill is not tangible, as it puts a dollar value on things like brand name and patents.
"The company is cooperating with the SEC in its investigation and believes that its accounting treatment of the Bucyrus acquisition was appropriate," Caterpillar said in a statement.
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