EX-13 9 ex_13.htm GENERAL AND FINANCIAL INFORMATION FOR 2009 ex_13.htm
EXHIBIT 13


 
CATERPILLAR INC.
GENERAL AND FINANCIAL INFORMATION
2009



 
 
A-1

 
 
 
 
A-2

 
 

INTERNAL CONTROL OVER FINANCIAL REPORTING
   

 
The management of Caterpillar Inc. (company) is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
 
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 
Management assessed the effectiveness of the company's internal control over financial reporting as of December 31, 2009. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework. Based on our assessment we concluded that, as of December 31, 2009, the company's internal control over financial reporting was effective based on those criteria.
 
The effectiveness of the company's internal control over financial reporting as of December 31, 2009 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm. Their report appears on page A-4.
 
 
     
          /s/ James W. Owens    
       
James W. Owens
Chairman of the Board
and Chief Executive Officer
 
   
     
          /s/ David B. Burritt    
       
David B. Burritt
Vice President and
 Chief Financial Officer
 
   
       
 
February 19, 2010
   

 
A-3

 
 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To the Board of Directors and Stockholders of Caterpillar Inc.:

In our opinion, the accompanying consolidated financial position and the related consolidated statements of results of operations, changes in stockholders' equity, and cash flow, including pages A-5 through A-62, present fairly, in all material respects, the financial position of Caterpillar Inc. and its subsidiaries at December 31, 2009, 2008 and 2007, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2009 in conformity with accounting principles generally accepted in the United States of America.  Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2009, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).  The Company's management is responsible for these financial statements, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control Over Financial Reporting appearing on page A-3.  Our responsibility is to express opinions on these financial statements and on the Company's internal control over financial reporting based on our integrated audits.  We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects.  Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.  Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.  Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
 
As discussed in Note 1K to the consolidated financial statements, the Company changed the manner in which it measures certain assets and liabilities at fair value in 2008 and the manner in which it accounts for uncertainty in income taxes in 2007.

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.




/s/ PricewaterhouseCoopers LLP
Peoria, Illinois
February 19, 2010
 
A-4

 
 
STATEMENT 1
Caterpillar Inc.
Consolidated Results of Operations for the Years Ended December 31
(Dollars in millions except per share data)
 
2009
 
2008
 
2007
Sales and revenues:
                     
 
Sales of Machinery and Engines
$
29,540
   
$
48,044
   
$
41,962
 
 
Revenues of Financial Products
 
2,856
     
3,280
     
2,996
 
 
Total sales and revenues
 
32,396
     
51,324
     
44,958
 
                         
Operating costs:
                     
 
Cost of goods sold
 
23,886
     
38,415
     
32,626
 
 
Selling, general and administrative expenses
 
3,645
     
4,399
     
3,821
 
 
Research and development expenses
 
1,421
     
1,728
     
1,404
 
 
Interest expense of Financial Products
 
1,045
     
1,153
     
1,132
 
 
Other operating (income) expenses
 
1,822
     
1,181
     
1,054
 
 
Total operating costs
 
31,819
     
46,876
     
40,037
 
                         
Operating profit
 
577
     
4,448
     
4,921
 
                         
 
Interest expense excluding Financial Products
 
389
     
274
     
288
 
 
Other income (expense)
 
381
     
327
     
357
 
                         
Consolidated profit before taxes
 
569
     
4,501
     
4,990
 
                         
 
Provision (benefit) for income taxes
 
(270
)
   
953
     
1,485
 
 
Profit of consolidated companies
 
839
     
3,548
     
3,505
 
                         
 
Equity in profit (loss) of unconsolidated affiliated companies
 
(12
)
   
37
     
73
 
                       
Profit of consolidated and affiliated companies
 
827
     
3,585
     
3,578
 
                       
Less: Profit (loss) attributable to noncontrolling interests
 
(68
)
   
28
     
37
 
                       
Profit1
$
895
   
$
3,557
   
$
3,541
 
                         
                       
Profit per common share
$
1.45
   
$
5.83
   
$
5.55
 
                         
Profit per common share – diluted 2
$
1.43
   
$
5.66
   
$
5.37
 
                         
Weighted-average common shares outstanding (millions)
                     
 
- Basic
 
615.2
     
610.5
     
638.2
 
 
- Diluted 2
 
626.0
     
627.9
     
659.5
 
                       
Cash dividends declared per common share
$
1.68
   
$
1.62
   
$
1.38
 
 
1
Profit attributable to common stockholders.
2
Diluted by assumed exercise of stock-based compensation awards, using the treasury stock method.
 
See accompanying notes to Consolidated Financial Statements.
 
A-5

 
 
STATEMENT 2
Caterpillar Inc.
Consolidated Financial Position at December 31
(Dollars in millions)
 
2009
 
2008
 
2007
Assets
                     
 
Current assets:
                     
   
Cash and short-term investments
$
4,867
   
$
2,736
   
$
1,122
 
   
Receivables - trade and other
 
5,611
     
9,397
     
8,249
 
   
Receivables - finance
 
8,301
     
8,731
     
7,503
 
   
Deferred and refundable income taxes
 
1,216
     
1,223
     
816
 
   
Prepaid expenses and other current assets
 
434
     
765
     
583
 
   
Inventories
 
6,360
     
8,781
     
7,204
 
 
Total current assets
 
26,789
     
31,633
     
25,477
 
                         
 
Property, plant and equipment - net
 
12,386
     
12,524
     
9,997
 
 
Long-term receivables - trade and other
 
971
     
1,479
     
685
 
 
Long-term receivables - finance
 
12,279
     
14,264
     
13,462
 
 
Investments in unconsolidated affiliated companies
 
105
     
94
     
598
 
 
Noncurrent deferred and refundable income taxes
 
2,714
     
3,311
     
1,553
 
 
Intangible assets
 
465
     
511
     
475
 
 
Goodwill
 
2,269
     
2,261
     
1,963
 
 
Other assets
 
2,060
     
1,705
     
1,922
 
Total assets
$
60,038
   
$
67,782
   
$
56,132
 
                       
Liabilities
                     
 
Current liabilities:
                     
   
Short-term borrowings:
                     
     
Machinery and Engines
$
433
   
$
1,632
   
$
187
 
     
Financial Products
 
3,650
     
5,577
     
5,281
 
   
Accounts payable
 
2,993
     
4,827
     
4,723
 
   
Accrued expenses
 
3,351
     
4,121
     
3,178
 
   
Accrued wages, salaries and employee benefits
 
797
     
1,242
     
1,126
 
   
Customer advances
 
1,217
     
1,898
     
1,442
 
   
Dividends payable
 
262
     
253
     
225
 
   
Other current liabilities
 
888
     
1,027
     
951
 
   
Long-term debt due within one year:
                     
     
Machinery and Engines
 
302
     
456
     
180
 
     
Financial Products
 
5,399
     
5,036
     
4,952
 
 
Total current liabilities
 
19,292
     
26,069
     
22,245
 
 
Long-term debt due after one year:
                     
   
Machinery and Engines
 
5,652
     
5,736
     
3,639
 
   
Financial Products
 
16,195
     
17,098
     
14,190
 
 
Liability for postemployment benefits
 
7,420
     
9,975
     
5,059
 
 
Other liabilities
 
2,179
     
2,190
     
2,003
 
Total liabilities
 
50,738
     
61,068
     
47,136
 
Commitments and contingencies (Notes 22 and 23)
                     
Redeemable noncontrolling interest (Note 26)
 
477
     
524
     
 
Stockholders' equity
                     
 
Common stock of $1.00 par:
                     
   
Authorized shares: 900,000,000
Issued shares: (2009, 2008 and 2007 - 814,894,624) at paid-in amount
 
3,439
     
3,057
     
2,744
 
 
Treasury stock: (2009 - 190,171,905 shares; 2008 - 213,367,983 shares
and 2007 - 190,908,490 shares) at cost
 
(10,646
)
   
(11,217
)
   
(9,451
)
 
Profit employed in the business
 
19,711
     
19,826
     
17,398
 
 
Accumulated other comprehensive income (loss)
 
(3,764
)
   
(5,579
)
   
(1,808
)
 
Noncontrolling interests
 
83
     
103
     
113
 
Total stockholders' equity
 
8,823
     
6,190
     
8,996
 
Total liabilities, redeemable noncontrolling interest and stockholders' equity
$
60,038
   
$
67,782
   
$
56,132
 
 
See accompanying notes to Consolidated Financial Statements.
 
A-6

 
 
 
STATEMENT 3
Caterpillar Inc.
Changes in Consolidated Stockholders' Equity for the Years Ended December 31
(Dollars in millions)
 
Common
stock
 
Treasury
stock
 
Profit
employed
in the
business
 
Accumulated
other
comprehensive
income (loss) 1
 
Noncontrolling
interests
 
Total
 
Comprehensive
income (loss)
Balance at December 31, 2006
$
2,465
   
$
(7,352
)
 
$
14,593
   
$
(2,847
)
 
$
78
   
$
6,937
   
$
3,990
 
Adjustment to adopt accounting for uncertainty in income taxes
 
     
     
141
     
     
     
141
         
Balance at January 1, 2007
$
2,465
   
$
(7,352
)
 
$
14,734
   
$
(2,847
)
 
$
78
   
$
7,078
         
Profit of consolidated and affiliated companies
 
     
     
3,541
     
     
37
     
3,578
   
$
3,578
 
Foreign currency translation
 
     
     
     
278
     
1
     
279
     
279
 
Pension and other postretirement benefits
                                                     
 
Current year actuarial gain (loss), net of tax of $271
 
     
     
     
537
     
     
537
     
537
 
 
Amortization of actuarial (gain) loss, net of tax of $123
 
     
     
     
228
     
     
228
     
228
 
 
Current year prior service cost, net of tax of $1
 
     
     
     
(2
)
   
     
(2
)
   
(2
)
 
Amortization of prior service cost, net of tax of $10
 
     
     
     
17
     
     
17
     
17
 
 
Amortization of transition (asset) obligation, net of tax of $1
 
     
     
     
2
     
     
2
     
2
 
Derivative financial instruments
                                                     
 
Gains (losses) deferred, net of tax of $25
 
     
     
     
48
     
     
48
     
48
 
 
(Gains) losses reclassified to earnings, net of tax of $41
 
     
     
     
(74
)
   
     
(74
)
   
(74
)
Retained interests
                                                     
 
Gains (losses) deferred, net of tax of $2
 
     
     
     
3
     
     
3
     
3
 
 
(Gains) losses reclassified to earnings, net of tax of $4
 
     
     
     
(6
)
   
     
(6
)
   
(6
)
Available-for-sale securities
                                                     
 
Gains (losses) deferred, net of tax of $8
 
     
     
     
14
     
     
14
     
14
 
 
(Gains) losses reclassified to earnings, net of tax of $3
 
     
     
     
(6
)
   
     
(6
)
   
(6
)
Dividends declared
 
     
     
(877
)
   
     
     
(877
)
   
 
Distributions to noncontrolling interests
 
     
     
     
     
(20
)
   
(20
)
   
 
Change in ownership for noncontrolling interests
 
     
     
     
     
17
     
17
     
 
Common shares issued from treasury stock
for stock-based compensation: 11,710,958
 
22
     
306
     
     
     
     
328
     
 
Stock-based compensation expense
 
146
     
     
     
     
     
146
     
 
Excess tax benefits from stock-based compensation
 
167
     
     
     
     
     
167
     
 
Shares repurchased: 33,533,000
 
     
(2,405
)
   
     
     
     
(2,405
)
   
 
Shares repurchase derivative contracts
 
(56
)
   
     
     
     
     
(56
)
   
 
Balance at December 31, 2007
$
2,744
   
$
(9,451
)
 
$
17,398
   
$
(1,808
)
 
$
113
   
$
8,996
   
$
4,618
 
Adjustment to adopt postretirement benefit measurement
date provisions, net of tax 2
 
     
     
(33
)
   
17
     
     
(16
)
       
Balance at January 1, 2008
$
2,744
   
$
(9,451
)
 
$
17,365
   
$
(1,791
)
 
$
113
   
$
8,980
         
Profit of consolidated and affiliated companies
 
     
     
3,557
     
     
28
     
3,585
   
$
3,585
 
Foreign currency translation, net of tax of $133
 
     
     
     
(488
)
   
23
     
(465
)
   
(465
)
Pension and other postretirement benefits
                                                     
 
Current year actuarial gain (loss), net of tax of $1,854
 
     
     
     
(3,415
)
   
(30
)
   
(3,445
)
   
(3,445
)
 
Amortization of actuarial (gain) loss, net of tax of $84
 
     
     
     
150
     
1
     
151
     
151
 
 
Current year prior service cost, net of tax of $5
 
     
     
     
(9
)
   
     
(9
)
   
(9
)
 
Amortization of transition (asset) obligation, net of tax of $1
 
     
     
     
2
     
     
2
     
2
 
Derivative financial instruments
                                                     
 
Gains (losses) deferred, net of tax of $67
 
     
     
     
100
     
     
100
     
100
 
 
(Gains) losses reclassified to earnings, net of tax of $14
 
     
     
     
(22
)
   
2
     
(20
)
   
(20
)
Retained interests
                                                     
 
Gains (losses) deferred, net of tax of $13
 
     
     
     
(22
)
   
     
(22
)
   
(22
)
 
(Gains) losses reclassified to earnings, net of tax of $8
 
     
     
     
13
     
     
13
     
13
 
Available-for-sale securities
                                                     
 
Gains (losses) deferred, net of tax of $67
 
     
     
     
(125
)
   
     
(125
)
   
(125
)
 
(Gains) losses reclassified to earnings, net of tax of $15
 
     
     
     
28
     
     
28
     
28
 
Dividends declared
 
     
     
(981
)
   
     
     
(981
)
   
 
Distributions to noncontrolling interests
 
     
     
     
     
(10
)
   
(10
)
   
 
Change in ownership for noncontrolling interests
 
     
     
     
     
(26
)
   
(26
)
   
 
Common shares issued from treasury stock for
stock-based compensation: 4,807,533
 
7
     
128
     
     
     
     
135
     
 
Stock-based compensation expense
 
194
     
     
     
     
     
194
     
 
Excess tax benefits from stock-based compensation
 
56
     
     
     
     
     
56
     
 
Shares repurchased: 27,267,026 3
 
     
(1,894
)
   
     
     
     
(1,894
)
   
 
Stock repurchase derivative contracts
 
56
     
     
     
     
     
56
     
 
Cat Japan share redemption 4
 
     
     
(115
)
   
     
2
     
(113
)
   
 
Balance at December 31, 2008
$
3,057
   
$
(11,217
)
 
$
19,826
   
$
(5,579
)
 
$
103
   
$
6,190
   
$
(207
)
 
(Continued)
A-7

 
 
 
STATEMENT 3
Caterpillar Inc.
Changes in Consolidated Stockholders' Equity for the Years Ended December 31
(Dollars in millions)
 
Common
stock
 
Treasury
stock
 
Profit
employed
in the
business
 
Accumulated
other
comprehensive
income (loss) 1
 
Noncontrolling
interests
 
Total
 
Comprehensive
income (loss)
Balance at December 31, 2008
$
3,057
   
$
(11,217
)
 
$
19,826
   
$
(5,579
)
 
$
103
   
$
6,190
   
$
(207
)
Profit of consolidated and affiliated companies
 
     
     
895
     
     
(68
)
   
827
   
$
827
 
Foreign currency translation, net of tax of $37
 
     
     
     
342
     
21
     
363
     
363
 
Pension and other postretirement benefits
                                                     
  Current year actuarial gain (loss), net of tax of $401  
     
     
     
924
     
1
     
925
     
925
 
  Amortization of actuarial (gain) loss, net of tax of $113  
     
     
     
187
     
     
187
     
187
 
  Current year prior service cost, net of tax of $249  
     
     
     
300
     
     
300
     
300
 
  Amortization of prior service cost, net of tax of $8  
     
     
     
(2
)
   
     
(2
)
   
(2
)
  Amortization of transition (asset) obligation, net of tax of $1  
     
     
     
1
     
     
1
     
1
 
Derivative financial instruments
                                                     
  Gains (losses) deferred, net of tax of $16  
     
     
     
19
     
     
19
     
19
 
  (Gains) losses reclassified to earnings, net of tax of $36  
     
     
     
(54
)
   
(2
)
   
(56
)
   
(56
)
Retained interests
                                                     
 
Gains (losses) deferred, net of tax of $9 5
 
     
     
     
(16
)
   
     
(16
)
   
(16
)
 
(Gains) losses reclassified to earnings, net of tax of $11
 
     
     
     
20
     
     
20
     
20
 
Available-for-sale securities
                                                     
  Gains (losses) deferred, net of tax of $47  
     
     
     
86
     
     
86
     
86
 
  (Gains) losses reclassified to earnings, net of tax of $5  
     
     
     
8
     
     
8
     
8
 
Dividends declared
 
     
     
(1,038
)
   
     
     
(1,038
)
   
 
Distributions to noncontrolling interests
 
     
     
     
     
(10
)
   
(10
)
   
 
Change in ownership for noncontrolling interests
 
(3
)
   
     
     
     
(15
)
   
(18
)
   
 
Common shares issued from treasury stock
for stock-based compensation: 3,571,268
 
(14
)    
103
     
     
     
     
89
     
 
Common shares issued from treasury stock for benefit plans: 19,624,810 6
 
250
     
468
     
     
     
     
718
     
 
Stock-based compensation expense
 
132
     
     
     
     
     
132
     
 
Excess tax benefits from stock-based compensation
 
17
     
     
     
     
     
17
     
 
Cat Japan share redemption 4
 
     
     
28
     
     
53
     
81
     
 
Balance at December 31, 2009
$
3,439
   
$
(10,646
)
 
$
19,711
   
$
(3,764
)
 
$
83
   
$
8,823
   
$
2,662
 
 
1
Pension and other postretirement benefits include net adjustments for Cat Japan Ltd, while they were an unconsolidated affiliate, of $(9) million in 2007.   The ending balance is $(52) million as of December 31, 2007.  See Notes 25 and 26 regarding the Cat Japan share redemption.
2
Adjustments were made to adopt the measurement date provision of the accounting standard on employers' accounting for defined benefits pension and other postretirement plans.  Adjustments to Profit employed in the business and pension and other postemployment benefits were net of tax of $(17) million and $9 million, respectively.  See Note 1K for additional information.
3
Amount consists of $1,800 million of cash-settled purchases and $94 million of derivative contracts.
4
See Notes 25 and 26 regarding the Cat Japan share redemption.
5
Includes noncredit component of other-than-temporary impairment losses on retained interests of $(8) million, net of tax of $4 million, for the twelve months ended December 31, 2009.   See Note 8 and 19 for additional information.
6
See Note 14 regarding shares issued for benefit plans.
See accompanying notes to Consolidated Financial Statements.
 
A-8

 
 
STATEMENT 4
Caterpillar Inc.
Consolidated Statement of Cash Flow for the Years Ended December 31
(Millions of dollars)
 
2009
 
2008
 
2007
Cash flow from operating activities:
                     
   
Profit of consolidated and affiliated companies
$
827
   
$
3,585
   
$
3,578
 
   
Adjustments for non-cash items:
                     
       
Depreciation and amortization
 
2,336
     
1,980
     
1,797
 
       
Other
 
137
     
355
     
162
 
   
Changes in assets and liabilities:
                     
       
Receivables - trade and other
 
4,014
     
(545
)
   
899
 
       
Inventories
 
2,501
     
(833
)
   
(745
)
       
Accounts payable
 
(2,034
)
   
(4
)
   
387
 
       
Accrued expenses
 
(505
)
   
660
     
231
 
       
Customer advances
 
(646
)
   
286
     
576
 
       
Other assets - net
 
235
     
(470
)
   
66
 
       
Other liabilities - net
 
(522
)
   
(217
)
   
1,004
 
Net cash provided by (used for) operating activities
 
6,343
     
4,797
     
7,955
 
                       
Cash flow from investing activities:
                     
   
Capital expenditures - excluding equipment leased to others
 
(1,348
)
   
(2,445
)
   
(1,700
)
   
Expenditures for equipment leased to others
 
(968
)
   
(1,566
)
   
(1,340
)
   
Proceeds from disposals of property, plant and equipment
 
1,242
     
982
     
408
 
   
Additions to finance receivables
 
(7,107
)
   
(14,031
)
   
(13,946
)
   
Collections of finance receivables
 
9,288
     
9,717
     
10,985
 
   
Proceeds from sale of finance receivables
 
100
     
949
     
866
 
   
Investments and acquisitions (net of cash acquired)
 
(19
)
   
(117
)
   
(229
)
   
Proceeds from release of security deposit
 
     
     
290
 
   
Proceeds from sale of available-for-sale securities
 
291
     
357
     
282
 
   
Investments in available-for-sale securities
 
(349
)
   
(339
)
   
(485
)
   
Other - net
 
(128
)
   
197
     
461
 
Net cash provided by (used for) investing activities
 
1,002
     
(6,296
)
   
(4,408
)
                       
Cash flow from financing activities:
                     
   
Dividends paid
 
(1,029
)
   
(953
)
   
(845
)
   
Distribution to noncontrolling interests
 
(10
)
   
(10
)
   
(20
)
   
Common stock issued, including treasury shares reissued
 
89
     
135
     
328
 
   
Payment for stock repurchase derivative contracts
 
     
(38
)
   
(56
)
   
Treasury shares purchased
 
     
(1,800
)
   
(2,405
)
   
Excess tax benefit from stock-based compensation
 
21
     
56
     
155
 
   
Acquisitions of noncontrolling interests
 
(6
)
   
     
 
   
Proceeds from debt issued (original maturities greater than three months):
                     
      - Machinery and Engines  
458
     
1,673
     
224
 
      - Financial Products  
11,833
     
16,257
     
10,815
 
   
Payments on debt (original maturities greater than three months):
                     
      - Machinery and Engines  
(918
)
   
(296
)
   
(598
)
      - Financial Products  
(11,769
)
   
(14,143
)
   
(10,290
)
   
Short-term borrowings (original maturities three months or less) - net
 
(3,884
)
   
2,074
     
(297
)
Net cash provided by (used for) financing activities
 
(5,215
)
   
2,955
     
(2,989
)
Effect of exchange rate changes on cash
 
1
     
158
     
34
 
Increase (decrease) in cash and short-term investments
 
2,131
     
1,614
     
592
 
Cash and short-term investments at beginning of period
 
2,736
     
1,122
     
530
 
Cash and short-term investments at end of period
$
4,867
   
$
2,736
   
$
1,122
 
 
All short-term investments, which consist primarily of highly liquid investments with original maturities of three months or less, are considered to be cash equivalents.
Non-cash activities:
During 2009, we contributed 19.6 million shares of company stock with a fair value of $718 million to our U.S. benefit plans. See Note 14 for further discussion.
 
See accompanying notes to Consolidated Financial Statements.
 
A-9

 
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
1.
 
Operations and summary of significant accounting policies
 
   
A.
 
Nature of operations
 
 
We operate in three principal lines of business:
 
 
(1)
 
Machinery - A principal line of business which includes the design, manufacture, marketing and sales of construction, mining and forestry machinery—track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment and related parts. Also includes logistics services for other companies and the design, manufacture, remanufacture, maintenance and services of rail-related products.
 
 
(2)
 
Engines - A principal line of business including the design, manufacture, marketing and sales of engines for Caterpillar machinery, electric power generation systems, locomotives, marine, petroleum, construction, industrial, agricultural and other applications, and related parts.  Also includes remanufacturing of Caterpillar engines and a variety of Caterpillar machine and engine components and remanufacturing services for other companies.  Reciprocating engines meet power needs ranging from 10 to 21,800 horsepower (8 to over 16 000 kilowatts).  Turbines range from 1,600 to 30,000 horsepower (1 200 to 22 000 kilowatts).
 
 
(3)
 
Financial Products - A principal line of business consisting primarily of Caterpillar Financial Services Corporation (Cat Financial), Caterpillar Insurance Holdings, Inc. (Cat Insurance) and their respective subsidiaries.  Cat Financial provides a wide range of financing alternatives to customers and dealers for Caterpillar machinery and engines, Solar gas turbines as well as other equipment and marine vessels.  Cat Financial also extends loans to customers and dealers.  Cat Insurance provides various forms of insurance to customers and dealers to help support the purchase and lease of our equipment.
 
 
Our Machinery and Engines operations are highly integrated. Throughout the Notes, Machinery and Engines represents the aggregate total of these principal lines of business.
 
Our products are sold primarily under the brands "Caterpillar," "CAT," design versions of "CAT" and "Caterpillar," "Solar Turbines," “MaK," "Perkins," "FG Wilson," "Olympian" and “Progress Rail.”
 
We conduct operations in our Machinery and Engines lines of business under highly competitive conditions, including intense price competition. We place great emphasis on the high quality and performance of our products and our dealers' service support. Although no one competitor is believed to produce all of the same types of machines and engines that we do, there are numerous companies, large and small, which compete with us in the sale of each of our products.
 
Machines are distributed principally through a worldwide organization of dealers (dealer network), 51 located in the United States and 127 located outside the United States. Worldwide, these dealers serve 182 countries and operate 3,518 places of business, including 1,407 dealer rental outlets.  Reciprocating engines are sold principally through the dealer network and to other manufacturers for use in products manufactured by them. Some of the reciprocating engines manufactured by Perkins are also sold through a worldwide network of 129 distributors located in 165 countries. The FG Wilson branded electric power generation systems are sold through a worldwide network of 157 dealers located in 180 countries.  Some of the large, medium speed reciprocating engines are also sold  under the MaK brand through a worldwide network of 19 dealers located in 130 countries.  Our dealers do not deal exclusively with our products; however, in most cases sales and servicing of our products are the dealers' principal business. Turbines are sold through sales forces employed by the company. At times, these employees are assisted by independent sales representatives.

Manufacturing activities of the Machinery and Engines lines of business are conducted in 96 plants in the United States; 16 in the United Kingdom; nine in Italy; eight each in China and Mexico; five each in Canada and France; four in Brazil; three each in Australia, India, and Poland; two each in Germany, Indonesia, Japan and the Netherlands; and one each in Belgium, Hungary, Malaysia, Nigeria, Russia, Switzerland and Tunisia. Twelve parts distribution centers are located in the United States and 17 are located outside the United States.
 
The Financial Products line of business also conducts operations under highly competitive conditions. Financing for users of Caterpillar products is available through a variety of competitive sources, principally commercial banks and finance and leasing companies. We emphasize prompt and responsive service to meet customer requirements and offer various financing plans designed to increase the opportunity for sales of our products and generate financing income for our company. Financial Products activity is conducted primarily in the United States, with additional offices in Asia, Australia, Canada, Europe and Latin America.
   
B.
 
Basis of consolidation
 
The financial statements include the accounts of Caterpillar Inc. and its subsidiaries.  Investments in companies that are owned 20% to 50% or are less than 20% owned and for which we have significant influence are accounted for by the equity method.  See Note 11 for further discussion.
 
A-10

 
 
 
We consolidate all variable interest entities (VIEs) where Caterpillar Inc. is the primary beneficiary.  For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs.  The primary beneficiary of a VIE is the party that absorbs a majority of the entity's expected losses, receives a majority of its expected residual returns, or both.
 
Certain amounts for prior years have been reclassified to conform with the current-year financial statement presentation.
 
Shipping and handling costs are included in Cost of goods sold in Statement 1.  Other operating (income) expenses primarily include Cat Financial's depreciation of equipment leased to others, Cat Insurance's underwriting expenses, gains (losses) on disposal of long-lived assets, long-lived asset impairment charges, employee separation charges and benefit plan curtailment, settlement and special termination benefits.
 
Prepaid expenses and other current assets in Statement 2 include prepaid rent, prepaid insurance and other prepaid items.  In addition, at December 31, 2008, this line included a security deposit of $232 million related to a deposit obligation due in 2009.  See Note 16 for further discussion.
 
We have performed a review of subsequent events through February 19, 2010, the date the financial statements were issued, and concluded there were no events or transactions occurring during this period that required recognition or disclosure in our financial statements.
 
C.
 
Sales and revenue recognition
 
Sales of Machinery and Engines are generally recognized when title transfers and the risks and rewards of ownership have passed to customers or independently owned and operated dealers.  Typically, where product is produced and sold in the same country, title and risk of ownership transfer when the product is shipped.  Products that are exported from a country for sale typically pass title and risk of ownership at the border of the destination country.
 
Sales of certain turbine machinery units are recognized under accounting for construction-type contracts, primarily using the percentage-of-completion method.  Revenue is recognized based upon progress towards completion, which is estimated and continually updated over the course of construction.  We provide for any loss that we expect to incur on these contracts when that loss is probable.
 
No right of return exists on sales of equipment.  Replacement part returns are estimable and accrued at the time a sale is recognized.
 
We provide discounts to dealers through merchandising programs.  We have numerous programs that are designed to promote the sale of our products.  The most common dealer programs provide a discount when the dealer sells a product to a targeted end user.  The cost of these discounts is estimated based on historical experience and known changes in merchandising programs and is reported as a reduction to sales when the product sale is recognized.
 
Our standard invoice terms are established by marketing region. When a sale is made to a dealer, the dealer is responsible for payment even if the product is not sold to an end customer and must make payment within the standard terms to avoid interest costs. Interest at or above prevailing market rates is charged on any past due balance. Our policy is to not forgive this interest.  In 2009 and 2008, terms were extended to not more than one year for $312 million and $544 million of receivables, respectively, which represent approximately 1% of consolidated sales.   In 2007, terms were extended to not more than one year for $219 million of receivables, which represent less than 1% of consolidated sales.
 
 
Sales with payment terms of two months or more were as follows:
 
     
(Dollars in millions)
     
2009
 
2008
 
2007
 
Payment Terms (months)
 
Sales
 
Percent
of Sales
 
Sales
 
Percent
of Sales
 
Sales
 
Percent
of Sales
 
2
 
$
3,087
     
10.5
%
 
$
4,130
     
8.6
%
 
$
2,830
     
6.8
%
 
3
   
978
     
3.3
%
   
2,786
     
5.8
%
   
2,067
     
4.9
%
 
4
   
674
     
2.3
%
   
866
     
1.8
%
   
526
     
1.3
%
 
5
   
53
     
0.2
%
   
1,062
     
2.2
%
   
965
     
2.3
%
 
6
   
73
     
0.2
%
   
561
     
1.2
%
   
4,549
     
10.8
%
 
7-12
   
478
     
1.6
%
   
4,469
     
9.3
%
   
293
     
0.7
%
     
$
5,343
     
18.1
%
 
$
13,874
     
28.9
%
 
$
11,230
     
26.8
%
   
 
 
We establish a bad debt allowance for Machinery and Engines receivables when it becomes probable that the receivable will not be collected.  Our allowance for bad debts is not significant.
 
A-11

 
 
 
Revenues of Financial Products primarily represent the following Cat Financial revenues:
 
 
·
Retail (end-customer) finance revenue on finance leases and installment sale contracts is recognized over the term of the contract at a constant rate of return on the scheduled outstanding principal balance.  Revenue on retail notes is recognized based on the daily balance of retail receivables outstanding and the applicable effective interest rate.
 
 
·
Operating lease revenue is recorded on a straight-line basis in the period earned over the life of the contract.
 
 
·
Wholesale (dealer) finance revenue on installment contracts and finance leases is recognized over the term of the contract at a constant rate of return on the scheduled outstanding principal balance.  Revenue on wholesale notes is recognized based on the daily balance of wholesale receivables outstanding and the applicable effective interest rate.
 
 
·
Loan origination and commitment fees are deferred and then amortized to revenue using the interest method over the life of the finance receivables.
 
 
Recognition of income is suspended when collection of future income is not probable. Accrual is resumed, and previously suspended income is recognized, when the receivable becomes contractually current and/or collection doubts are removed. Cat Financial provides wholesale inventory financing to dealers. See Notes 7 and 8 for more information.
 
Sales and revenues are presented net of sales and other related taxes.
 
D.
 
Inventories
 
Inventories are stated at the lower of cost or market. Cost is principally determined using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis represented about 70% of total inventories at December 31, 2009 and 2008, and about 75% of total inventories at December 31, 2007.
 
If the FIFO (first-in, first-out) method had been in use, inventories would have been $3,003 million, $3,183 million and $2,617 million higher than reported at December 31, 2009, 2008 and 2007, respectively.
 
E.
 
Securitized receivables
 
Cat Financial periodically sells finance receivables in securitization transactions. When finance receivables are securitized, Cat Financial retains interests in the receivables in the form of subordinated certificates, an interest in future cash flows (excess), reserve accounts and servicing rights. The retained interests are recorded in Other assets at fair value. Cat Financial estimates fair value and cash flows using a valuation model and key assumptions for credit losses, prepayment rates and discount rates. See Note 8 and Note 19 for more information.
 
F.
 
Depreciation and amortization
 
Depreciation of plant and equipment is computed principally using accelerated methods. Depreciation on equipment leased to others, primarily for Financial Products, is computed using the straight-line method over the term of the lease. The depreciable basis is the original cost of the equipment less the estimated residual value of the equipment at the end of the lease term. In 2009, 2008 and 2007, Cat Financial depreciation on equipment leased to others was $713 million, $724 million and $671 million, respectively, and was included in Other operating (income) expenses in Statement 1. In 2009, 2008 and 2007, consolidated depreciation expense was $2,254 million, $1,907 million and $1,725 million, respectively. Amortization of purchased intangibles is computed principally using the straight-line method, generally not to exceed a period of 20 years.
 
G.
 
Foreign currency translation
 
The functional currency for most of our Machinery and Engines consolidated companies is the U.S. dollar. The functional currency for most of our Financial Products and affiliates accounted for under the equity method is the respective local currency.  Gains and losses resulting from the translation of foreign currency amounts to the functional currency are included in Other income (expense) in Statement 1. Gains and losses resulting from translating assets and liabilities from the functional currency to U.S. dollars are included in Accumulated other comprehensive income (loss) in Statement 2.
 
H.
 
Derivative financial instruments
 
Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates and commodity prices.  Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate, commodity price and Caterpillar stock price exposures and not for the purpose of creating speculative positions.  Derivatives that we use are primarily foreign currency forward and option contracts, interest rate swaps, commodity forward and option contracts and stock repurchase contracts. All derivatives are recorded at fair value.  See Note 3 for more information.
 
A-12

 
 
I.
 
Income taxes
 
The provision for income taxes is determined using the asset and liability approach.  Tax laws require items to be included in tax filings at different times than the items are reflected in the financial statements.  A current liability is recognized for the estimated taxes payable for the current year.  Deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid.  Deferred taxes are adjusted for enacted changes in tax rates and tax laws.  Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized.
 
  J.
Estimates in financial statements
 
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts. The more significant estimates include: residual values for leased assets, fair values for goodwill impairment tests, impairment of available-for-sale securities, warranty liability, stock-based compensation and reserves for product liability and insurance losses, postemployment benefits, post-sale discounts, credit losses and income taxes.
 
K.
 
New accounting guidance
 
Accounting for uncertainty in income taxes – In June 2006, the Financial Accounting Standards Board (FASB) issued accounting guidance to create a single model to address accounting for uncertainty in tax positions.  This guidance clarifies that a tax position must be more likely than not of being sustained before being recognized in the financial statements. As required, we adopted the provisions of this guidance as of January 1, 2007.  The following table summarizes the effect of the initial adoption of this guidance. See Note 5 for additional information.
 
 
Initial adoption of accounting for uncertainty in income taxes
         
 
(Millions of dollars)
January 1, 2007
Prior to adoption
 
Adjustment
 
January 1, 2007
Post adoption
 
Deferred and refundable income taxes
$
733
   
$
82
   
$
815
 
 
Noncurrent deferred and refundable income taxes
 
1,949
     
211
     
2,160
 
 
Other current liabilities
 
1,145
     
(530
)
   
615
 
 
Other liabilities
 
1,131
     
682
     
1,813
 
 
Profit employed in the business
 
14,593
     
141
     
14,734
 

 
 
Fair value measurements - In September 2006, the FASB issued accounting guidance on fair value measurements, which provides a common definition of fair value and a framework for measuring assets and liabilities at fair values when a particular standard prescribes it. In addition, this guidance expands disclosures about fair value measurements. In February 2008, the FASB issued additional guidance that (1) deferred the effective date of the original guidance for one year for certain nonfinancial assets and nonfinancial liabilities and (2) removed certain leasing transactions from the scope of the original guidance.  We applied this new guidance to financial assets and liabilities effective January 1, 2008 and nonfinancial assets and liabilities effective January 1, 2009. The adoption of this guidance did not have a material impact on our financial statements.  See Note 19 for additional information.
 
 
Employers' accounting for defined benefit pension and other postretirement plans - In September 2006, the FASB issued accounting guidance on employers' accounting for defined benefit pension and other postretirement plans. This guidance requires recognition of the overfunded or underfunded status of pension and other postretirement benefit plans on the balance sheet.  Under this guidance, gains and losses, prior service costs and credits and any remaining transition amounts under previous guidance that have not yet been recognized through net periodic benefit cost are recognized in Accumulated other comprehensive income (loss), net of tax effects, until they are amortized as a component of net periodic benefit cost. Also, the measurement date – the date at which the benefit obligation and plan assets are measured – is required to be the company's fiscal year-end.
 
 
We adopted the balance sheet recognition provisions at December 31, 2006. We adopted the year-end measurement date effective January 1, 2008 using the “one measurement” approach.  Under the one measurement approach, net periodic benefit cost for the period between any early measurement date and the end of the fiscal year that the measurement provisions are applied is allocated proportionately between amounts to be recognized as an adjustment of Profit employed in the business and net periodic benefit cost for the fiscal year.  Previously, we used a November 30th measurement date for our U.S. pension and other postretirement benefit plans and September 30th for our non-U.S. plans.  The following summarizes the effect of adopting the year-end measurement date provisions as of January 1, 2008.  See Note 14 for additional information.
 
A-13

 
 
 
 
Adoption of postretirement benefit year-end measurement date
   
January 1, 2008
     
January 1, 2008
 
(Millions of dollars)
Prior to adoption
 
Adjustment
 
Post adoption
 
Noncurrent deferred and refundable income taxes
$
1,553
   
$
8
   
$
1,561
 
 
Liability for postemployment benefits
 
5,059
     
24
     
5,083
 
 
Accumulated other comprehensive income (loss) 
 
(1,808
)
   
17
     
(1,791
)
 
Profit employed in the business
 
17,398
     
(33
)
   
17,365
 

 
Business combinations and noncontrolling interests in consolidated financial statements - In December 2007, the FASB issued accounting guidance on business combinations and noncontrolling interests in consolidated financial statements.  The guidance on business combinations requires the acquiring entity in a business combination to recognize the assets acquired and liabilities assumed. Further, it changes the accounting for acquired in-process research and development assets, contingent consideration, partial acquisitions and transaction costs.  Under the guidance on noncontrolling interests, all entities are required to report noncontrolling (minority) interests in subsidiaries as equity in the consolidated financial statements. In addition, transactions between an entity and noncontrolling interests are treated as equity transactions.  We adopted this new guidance on January 1, 2009.  As required, the guidance on noncontrolling interests was adopted through retrospective application, and all prior period information has been adjusted accordingly. The adoption of this guidance did not have a material impact on our financial statements.  See Note 25 for further details.
 
 
Disclosures about derivative instruments and hedging activities - In March 2008, the FASB issued accounting guidance on disclosures about derivative instruments and hedging activities.  This guidance expands disclosures for derivative instruments by requiring entities to disclose the fair value of derivative instruments and their gains or losses in tabular format.  It also requires disclosure of information about credit risk-related contingent features in derivative agreements, counterparty credit risk, and strategies and objectives for using derivative instruments.  We adopted this new guidance on January 1, 2009.  The adoption of this guidance did not have a material impact on our financial statements.  See Note 3 for additional information.
 
 
Employers' disclosures about postretirement benefit plan assets - In December 2008, the FASB issued accounting guidance on employers' disclosures about postretirement benefit plan assets. This guidance expands the disclosure set forth in previous guidance by adding required disclosures about (1) how investment allocation decisions are made by management, (2) major categories of plan assets, and (3) significant concentration of risk. Additionally, this guidance requires an employer to disclose information about the valuation of plan assets similar to that required under the accounting guidance on fair value measurements.  We adopted this guidance for our financial statements for the annual period ending December 31, 2009.  The adoption of this guidance did not have a material impact on our financial statements. See Note 14 for additional information.
 
 
Recognition and presentation of other-than-temporary impairments - In April 2009, the FASB issued accounting guidance on the recognition and presentation of other-than-temporary impairments.  This new guidance amends the existing impairment guidance relating to certain debt securities and requires a company to assess the likelihood of selling the security prior to recovering its cost basis.  When a security meets the criteria for impairment, the impairment charges related to credit losses would be recognized in earnings, while noncredit losses would be reflected in other comprehensive income.  Additionally, it requires a more detailed, risk-oriented breakdown of major security types and related information. We adopted this guidance on April 1, 2009.  The adoption of this guidance did not have a material impact on our financial statements.  See Notes 8 and 13 for additional information.
 
 
Subsequent events - In May 2009, the FASB issued accounting guidance on subsequent events that establishes standards of accounting for and disclosure of subsequent events.  In addition, it requires disclosure of the date through which an entity has evaluated subsequent events and the basis for that date.  This new guidance was adopted for our financial statements for the quarterly period ending June 30, 2009.  The adoption of this guidance did not have a material impact on our financial statements.  See Note 1B for additional information.
 
 
Accounting for transfers of financial assets - In June 2009, the FASB issued accounting guidance on accounting for transfers of financial assets.  This guidance amends previous guidance by including: the elimination of the qualifying special-purpose entity (QSPE) concept; a new participating interest definition that must be met for transfers of portions of financial assets to be eligible for sale accounting; clarifications and changes to the derecognition criteria for a transfer to be accounted for as a sale; and a change to the amount of recognized gain or loss on a transfer of financial assets accounted for as a sale when beneficial interests are received by the transferor.  Additionally, the guidance requires extensive new disclosures regarding an entity's involvement in a transfer of financial assets.  Finally, existing QSPEs (prior to the effective date of this guidance) must be evaluated for consolidation by reporting entities in accordance with the applicable consolidation guidance upon the elimination of this concept.  We will adopt this new guidance effective January 1, 2010.  We do not expect the adoption of this guidance will have a material impact on our financial statements.
 
A-14

 
 
 
Consolidation of variable interest entities - In June 2009, the FASB issued accounting guidance on the consolidation of VIEs. This new guidance revises previous guidance by eliminating the exemption for qualifying special purpose entities, by establishing a new approach for determining who should consolidate a VIE and by changing when it is necessary to reassess who should consolidate a VIE.  We will adopt this new guidance effective January 1, 2010.  The adoption of this guidance will result in the consolidation of certain QSPEs related to Cat Financial's asset-backed securitization program that are currently not recorded on our consolidated financial statements.  See Note 8 for additional information.  We do not expect the adoption of this guidance will have a material impact on our financial statements.
 
L.
 
Goodwill
 
Goodwill represents the excess of the cost of a business combination over the fair value of the net assets acquired.  We are required to test goodwill for impairment, at the reporting unit level, annually and when events or circumstances indicate the fair value of a reporting unit may be below its carrying value.  A reporting unit is an operating segment or sub-segment to which goodwill is assigned when initially recorded. We assign goodwill to reporting units based on our integration plans and the expected synergies resulting from the business combination.   Because Caterpillar is a highly integrated company, the businesses we acquire are sometimes combined with or integrated into existing reporting units.  When changes occur in the composition of our operating segments or reporting units, goodwill is reassigned to the affected reporting units based on their relative fair values.
 
We perform our annual goodwill impairment test as of October 1 and monitor for interim triggering events on an ongoing basis.  Goodwill is reviewed for impairment utilizing a two-step process.  The first step requires us to compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows, to the respective carrying value, which includes goodwill.  If the fair value of the reporting unit exceeds its carrying value, the goodwill is not considered impaired.  If the carrying value is higher than the fair value, there is an indication that an impairment may exist and the second step is required.  In step two, the implied fair value of goodwill is calculated as the excess of the fair value of a reporting unit over the fair values assigned to its assets and liabilities.  If the implied fair value of goodwill is less than the carrying value of the reporting unit's goodwill, the difference is recognized as an impairment loss.  See Note 12 for further details.
 
M.
 
Accumulated other comprehensive income (loss)
 
 
Comprehensive income (loss) and its components are presented in Statement 3.  Accumulated other comprehensive income (loss), net of tax, consisted of the following at December 31:

   
December 31,
 
(Millions of dollars)
2009
 
2008
 
2007
   
Foreign currency translation
$
603
   
$
261
   
$
749
 
   
Pension and other postretirement benefits
 
(4,439
)
   
(5,849
)
   
(2,594
)
   
Derivative financial instruments
 
60
     
95
     
17
 
   
Retained interests
 
(3
)
   
(7
)
   
2
 
   
Available-for-sale securities
 
15
     
(79
)
   
18
 
 
Total accumulated other comprehensive income (loss)
$
(3,764
)
 
$
(5,579
)
 
$
(1,808
)