UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | |||||||||||
FORM | |||||||||||
Current Report | |||||||||||
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |||||||||||
Date of Report (Date of earliest event reported): | |||||||||||
(Exact name of registrant as specified in its charter) | |||||||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) | |||||||||
Registrant’s telephone number, including area code: | ||||||||||
Former name or former address, if changed since last report: | N/A |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||||||||
Securities registered pursuant to Section 12(b) of the Act: | |||||||||||
Title of each class | Trading Symbol (s) | Name of each exchange which registered | |||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined by Rule 405 of the Securities Act of | |||||||||||
1933 (17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter). | |||||||||||
Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period | |||||||||||
for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
(d) | Exhibits: | ||
The following is furnished as an exhibit to this report: | |||
99.1 | |||
104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. |
SIGNATURES | ||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. | ||
CATERPILLAR INC. | ||
July 31, 2020 | By: | /s/ Suzette M. Long |
Suzette M. Long Chief Legal Officer, General Counsel & Corporate Secretary | ||
Second Quarter | ||||||
($ in billions except profit per share) | 2020 | 2019 | ||||
Sales and Revenues | $10.0 | $14.4 | ● | Second-quarter sales and revenues decreased 31%; profit per share declined 70% | ||
Profit Per Share | $0.84 | $2.83 | ● | Strong balance sheet; $8.8 billion of enterprise cash |
Sales and Revenues by Segment | |||||||||||||||||||||||||||||
(Millions of dollars) | Second Quarter 2019 | Sales Volume | Price Realization | Currency | Inter-Segment / Other | Second Quarter 2020 | $ Change | % Change | |||||||||||||||||||||
Construction Industries | $ | 6,467 | $ | (2,075 | ) | $ | (258 | ) | $ | (81 | ) | $ | (5 | ) | $ | 4,048 | $ | (2,419 | ) | (37%) | |||||||||
Resource Industries | 2,819 | (933 | ) | (23 | ) | (45 | ) | 8 | 1,826 | (993 | ) | (35%) | |||||||||||||||||
Energy & Transportation | 5,486 | (942 | ) | 23 | (64 | ) | (354 | ) | 4,149 | (1,337 | ) | (24%) | |||||||||||||||||
All Other Segment | 125 | (5 | ) | — | (1 | ) | (4 | ) | 115 | (10 | ) | (8%) | |||||||||||||||||
Corporate Items and Eliminations | (1,226 | ) | 43 | (1 | ) | 1 | 355 | (828 | ) | 398 | |||||||||||||||||||
Machinery, Energy & Transportation | 13,671 | (3,912 | ) | (259 | ) | (190 | ) | — | 9,310 | (4,361 | ) | (32%) | |||||||||||||||||
Financial Products Segment | 873 | — | — | — | (110 | ) | 763 | (110 | ) | (13%) | |||||||||||||||||||
Corporate Items and Eliminations | (112 | ) | — | — | — | 36 | (76 | ) | 36 | ||||||||||||||||||||
Financial Products Revenues | 761 | — | — | — | (74 | ) | 687 | (74 | ) | (10%) | |||||||||||||||||||
Consolidated Sales and Revenues | $ | 14,432 | $ | (3,912 | ) | $ | (259 | ) | $ | (190 | ) | $ | (74 | ) | $ | 9,997 | $ | (4,435 | ) | (31%) | |||||||||
Sales and Revenues by Geographic Region | |||||||||||||||||||||||||||||||||||||||||
North America | Latin America | EAME | Asia/Pacific | External Sales and Revenues | Inter-Segment | Total Sales and Revenues | |||||||||||||||||||||||||||||||||||
(Millions of dollars) | $ | % Chg | $ | % Chg | $ | % Chg | $ | % Chg | $ | % Chg | $ | % Chg | $ | % Chg | |||||||||||||||||||||||||||
Second Quarter 2020 | |||||||||||||||||||||||||||||||||||||||||
Construction Industries | $ | 1,604 | (54%) | $ | 212 | (46%) | $ | 933 | (16%) | $ | 1,283 | (10%) | $ | 4,032 | (37%) | $ | 16 | (24%) | $ | 4,048 | (37%) | ||||||||||||||||||||
Resource Industries | 507 | (52%) | 270 | (40%) | 379 | (15%) | 554 | (27%) | 1,710 | (37%) | 116 | 7% | 1,826 | (35%) | |||||||||||||||||||||||||||
Energy & Transportation | 1,816 | (21%) | 197 | (39%) | 929 | (20%) | 599 | (19%) | 3,541 | (22%) | 608 | (37%) | 4,149 | (24%) | |||||||||||||||||||||||||||
All Other Segment | 7 | (50%) | 1 | —% | 5 | 25% | 15 | —% | 28 | (18%) | 87 | (4%) | 115 | (8%) | |||||||||||||||||||||||||||
Corporate Items and Eliminations | 2 | (1 | ) | — | (2 | ) | (1 | ) | (827 | ) | (828 | ) | |||||||||||||||||||||||||||||
Machinery, Energy & Transportation | 3,936 | (42%) | 679 | (42%) | 2,246 | (17%) | 2,449 | (17%) | 9,310 | (32%) | — | —% | 9,310 | (32%) | |||||||||||||||||||||||||||
Financial Products Segment | 493 | (12%) | 60 | (21%) | 96 | (6%) | 114 | (14%) | 763 | (13%) | — | —% | 763 | (13%) | |||||||||||||||||||||||||||
Corporate Items and Eliminations | (43 | ) | (9 | ) | (9 | ) | (15 | ) | (76 | ) | — | (76 | ) | ||||||||||||||||||||||||||||
Financial Products Revenues | 450 | (8%) | 51 | (22%) | 87 | (6%) | 99 | (12%) | 687 | (10%) | — | —% | 687 | (10%) | |||||||||||||||||||||||||||
Consolidated Sales and Revenues | $ | 4,386 | (40%) | $ | 730 | (41%) | $ | 2,333 | (17%) | $ | 2,548 | (17%) | $ | 9,997 | (31%) | $ | — | —% | $ | 9,997 | (31%) | ||||||||||||||||||||
Second Quarter 2019 | |||||||||||||||||||||||||||||||||||||||||
Construction Industries | $ | 3,513 | $ | 392 | $ | 1,108 | $ | 1,433 | $ | 6,446 | $ | 21 | $ | 6,467 | |||||||||||||||||||||||||||
Resource Industries | 1,058 | 448 | 446 | 759 | 2,711 | 108 | 2,819 | ||||||||||||||||||||||||||||||||||
Energy & Transportation | 2,297 | 325 | 1,160 | 742 | 4,524 | 962 | 5,486 | ||||||||||||||||||||||||||||||||||
All Other Segment | 14 | 1 | 4 | 15 | 34 | 91 | 125 | ||||||||||||||||||||||||||||||||||
Corporate Items and Eliminations | (39 | ) | (2 | ) | (5 | ) | 2 | (44 | ) | (1,182 | ) | (1,226 | ) | ||||||||||||||||||||||||||||
Machinery, Energy & Transportation | 6,843 | 1,164 | 2,713 | 2,951 | 13,671 | — | 13,671 | ||||||||||||||||||||||||||||||||||
Financial Products Segment | 563 | 76 | 102 | 132 | 873 | — | 873 | ||||||||||||||||||||||||||||||||||
Corporate Items and Eliminations | (72 | ) | (11 | ) | (9 | ) | (20 | ) | (112 | ) | — | (112 | ) | ||||||||||||||||||||||||||||
Financial Products Revenues | 491 | 65 | 93 | 112 | 761 | — | 761 | ||||||||||||||||||||||||||||||||||
Consolidated Sales and Revenues | $ | 7,334 | $ | 1,229 | $ | 2,806 | $ | 3,063 | $ | 14,432 | $ | — | $ | 14,432 | |||||||||||||||||||||||||||
Profit (Loss) by Segment | ||||||||||||||
(Millions of dollars) | Second Quarter 2020 | Second Quarter 2019 | $ Change | % Change | ||||||||||
Construction Industries | $ | 518 | $ | 1,247 | $ | (729 | ) | (58 | %) | |||||
Resource Industries | 152 | 481 | (329 | ) | (68 | %) | ||||||||
Energy & Transportation | 624 | 886 | (262 | ) | (30 | %) | ||||||||
All Other Segment | (3 | ) | 11 | (14 | ) | n/a | ||||||||
Corporate Items and Eliminations | (542 | ) | (441 | ) | (101 | ) | ||||||||
Machinery, Energy & Transportation | 749 | 2,184 | (1,435 | ) | (66 | %) | ||||||||
Financial Products Segment | 148 | 193 | (45 | ) | (23 | %) | ||||||||
Corporate Items and Eliminations | (38 | ) | (50 | ) | 12 | |||||||||
Financial Products | 110 | 143 | (33 | ) | (23 | %) | ||||||||
Consolidating Adjustments | (75 | ) | (114 | ) | 39 | |||||||||
Consolidated Operating Profit | $ | 784 | $ | 2,213 | $ | (1,429 | ) | (65 | %) | |||||
• | Other income (expense) in the second quarter of 2020 was income of $29 million, compared with income of $68 million in the second quarter of 2019. The change was primarily due to the unfavorable impact of pension and other postemployment benefit (OPEB) plans, including $122 million of remeasurement losses resulting from the settlements of pension obligations, partially offset by favorable impacts from foreign currency exchange gains (losses), primarily due to the Australian dollar. |
• | The provision for income taxes for the second quarter of 2020 reflected an estimated annual tax rate of 31%, excluding a $21 million discrete tax benefit related to the $122 million of remeasurement losses resulting from the settlements of pension obligations. The tax rate was 26% for the second quarter of 2019. The increase in the estimated annual tax rate was primarily related to changes in the expected geographic mix of profits from a tax perspective for 2020, including the impact of U.S. tax on non-U.S. earnings as a result of U.S. tax reform. |
CONSTRUCTION INDUSTRIES | |||||||||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||||||||
Segment Sales | |||||||||||||||||||||||||||||||
Second Quarter 2019 | Sales Volume | Price Realization | Currency | Inter-Segment | Second Quarter 2020 | $ Change | % Change | ||||||||||||||||||||||||
Total Sales | $ | 6,467 | $ | (2,075 | ) | $ | (258 | ) | $ | (81 | ) | $ | (5 | ) | $ | 4,048 | $ | (2,419 | ) | (37 | %) | ||||||||||
Sales by Geographic Region | |||||||||||||||||||||||||||||||
Second Quarter 2020 | Second Quarter 2019 | $ Change | % Change | ||||||||||||||||||||||||||||
North America | $ | 1,604 | $ | 3,513 | $ | (1,909 | ) | (54 | %) | ||||||||||||||||||||||
Latin America | 212 | 392 | (180 | ) | (46 | %) | |||||||||||||||||||||||||
EAME | 933 | 1,108 | (175 | ) | (16 | %) | |||||||||||||||||||||||||
Asia/Pacific | 1,283 | 1,433 | (150 | ) | (10 | %) | |||||||||||||||||||||||||
External Sales | 4,032 | 6,446 | (2,414 | ) | (37 | %) | |||||||||||||||||||||||||
Inter-segment | 16 | 21 | (5 | ) | (24 | %) | |||||||||||||||||||||||||
Total Sales | $ | 4,048 | $ | 6,467 | $ | (2,419 | ) | (37 | %) | ||||||||||||||||||||||
Segment Profit | |||||||||||||||||||||||||||||||
Second Quarter 2020 | Second Quarter 2019 | Change | % Change | ||||||||||||||||||||||||||||
Segment Profit | $ | 518 | $ | 1,247 | $ | (729 | ) | (58 | %) | ||||||||||||||||||||||
Segment Profit Margin | 12.8 | % | 19.3 | % | (6.5 | pts) | |||||||||||||||||||||||||
▪ | In North America, sales decreased mostly due to lower sales volume driven by lower end-user demand and the impact from changes in dealer inventories. The lower end-user demand was driven primarily by pipeline and road construction. |
▪ | Sales declined in Latin America primarily due to lower end-user demand across the region, the impact from changes in dealer inventories and unfavorable currency impacts from a weaker Brazilian real. |
▪ | In EAME, sales decreased mostly because of lower sales volume across the region, driven by lower end-user demand and the impact from changes in dealer inventories. |
▪ | Sales declined in Asia/Pacific primarily due to unfavorable price realization and currency impacts from a weaker Chinese yuan. In China, sales were about flat as higher end-user demand was mostly offset by the impact of changes in dealer inventories and unfavorable price realization. |
RESOURCE INDUSTRIES | |||||||||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||||||||
Segment Sales | |||||||||||||||||||||||||||||||
Second Quarter 2019 | Sales Volume | Price Realization | Currency | Inter-Segment | Second Quarter 2020 | $ Change | % Change | ||||||||||||||||||||||||
Total Sales | $ | 2,819 | $ | (933 | ) | $ | (23 | ) | $ | (45 | ) | $ | 8 | $ | 1,826 | $ | (993 | ) | (35 | %) | |||||||||||
Sales by Geographic Region | |||||||||||||||||||||||||||||||
Second Quarter 2020 | Second Quarter 2019 | $ Change | % Change | ||||||||||||||||||||||||||||
North America | $ | 507 | $ | 1,058 | $ | (551 | ) | (52 | %) | ||||||||||||||||||||||
Latin America | 270 | 448 | (178 | ) | (40 | %) | |||||||||||||||||||||||||
EAME | 379 | 446 | (67 | ) | (15 | %) | |||||||||||||||||||||||||
Asia/Pacific | 554 | 759 | (205 | ) | (27 | %) | |||||||||||||||||||||||||
External Sales | 1,710 | 2,711 | (1,001 | ) | (37 | %) | |||||||||||||||||||||||||
Inter-segment | 116 | 108 | 8 | 7 | % | ||||||||||||||||||||||||||
Total Sales | $ | 1,826 | $ | 2,819 | $ | (993 | ) | (35 | %) | ||||||||||||||||||||||
Segment Profit | |||||||||||||||||||||||||||||||
Second Quarter 2020 | Second Quarter 2019 | Change | % Change | ||||||||||||||||||||||||||||
Segment Profit | $ | 152 | $ | 481 | $ | (329 | ) | (68 | %) | ||||||||||||||||||||||
Segment Profit Margin | 8.3 | % | 17.1 | % | (8.8 | pts) | |||||||||||||||||||||||||
ENERGY & TRANSPORTATION | |||||||||||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||||||||||
Segment Sales | |||||||||||||||||||||||||||||||
Second Quarter 2019 | Sales Volume | Price Realization | Currency | Inter-Segment | Second Quarter 2020 | $ Change | % Change | ||||||||||||||||||||||||
Total Sales | $ | 5,486 | $ | (942 | ) | $ | 23 | $ | (64 | ) | $ | (354 | ) | $ | 4,149 | $ | (1,337 | ) | (24 | %) | |||||||||||
Sales by Application | |||||||||||||||||||||||||||||||
Second Quarter 2020 | Second Quarter 2019 | $ Change | % Change | ||||||||||||||||||||||||||||
Oil and Gas | $ | 1,027 | $ | 1,305 | $ | (278 | ) | (21 | %) | ||||||||||||||||||||||
Power Generation | 895 | 1,021 | (126 | ) | (12 | %) | |||||||||||||||||||||||||
Industrial | 678 | 957 | (279 | ) | (29 | %) | |||||||||||||||||||||||||
Transportation | 941 | 1,241 | (300 | ) | (24 | %) | |||||||||||||||||||||||||
External Sales | 3,541 | 4,524 | (983 | ) | (22 | %) | |||||||||||||||||||||||||
Inter-segment | 608 | 962 | (354 | ) | (37 | %) | |||||||||||||||||||||||||
Total Sales | $ | 4,149 | $ | 5,486 | $ | (1,337 | ) | (24 | %) | ||||||||||||||||||||||
Segment Profit | |||||||||||||||||||||||||||||||
Second Quarter 2020 | Second Quarter 2019 | Change | % Change | ||||||||||||||||||||||||||||
Segment Profit | $ | 624 | $ | 886 | $ | (262 | ) | (30 | %) | ||||||||||||||||||||||
Segment Profit Margin | 15.0 | % | 16.2 | % | (1.2 | pts) | |||||||||||||||||||||||||
▪ | Oil and Gas – Sales decreased mainly due to lower demand in North America for reciprocating engines used in gas compression and decreased sales of engine aftermarket parts, partially offset by higher sales of turbines and turbine-related services. |
▪ | Power Generation – Sales decreased primarily due to lower sales volume in small reciprocating engine applications and engine aftermarket parts. |
▪ | Industrial – Sales decreased due to lower demand across all regions. |
▪ | Transportation – Sales declined in rail due to lower deliveries of locomotives and related services and in marine applications, primarily in EAME and Asia/Pacific. |
FINANCIAL PRODUCTS SEGMENT | |||||||||||||||||||||||
(Millions of dollars) | |||||||||||||||||||||||
Revenues by Geographic Region | |||||||||||||||||||||||
Second Quarter 2020 | Second Quarter 2019 | $ Change | % Change | ||||||||||||||||||||
North America | $ | 493 | $ | 563 | $ | (70 | ) | (12 | %) | ||||||||||||||
Latin America | 60 | 76 | (16 | ) | (21 | %) | |||||||||||||||||
EAME | 96 | 102 | (6 | ) | (6 | %) | |||||||||||||||||
Asia/Pacific | 114 | 132 | (18 | ) | (14 | %) | |||||||||||||||||
Total Revenues | $ | 763 | $ | 873 | $ | (110 | ) | (13 | %) | ||||||||||||||
Segment Profit | |||||||||||||||||||||||
Second Quarter 2020 | Second Quarter 2019 | Change | % Change | ||||||||||||||||||||
Segment Profit | $ | 148 | $ | 193 | $ | (45 | ) | (23 | %) | ||||||||||||||
i. | Glossary of terms is included on the Caterpillar website at https://investors.caterpillar.com/overview/default.aspx. |
ii. | End-user demand is demonstrated by the company’s Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Friday, July 31, 2020. |
iii. | Information on non-GAAP financial measures is included in the appendix on page 12. |
iv. | Some amounts within this report are rounded to the millions or billions and may not add. |
v. | Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7:30 a.m. Central Time on Friday, July 31, 2020, to discuss its 2020 second-quarter results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx. |
Second Quarter | ||||||||||
2020 | 2019 | |||||||||
Profit per share | $ | 0.84 | $ | 2.83 | ||||||
Per share remeasurement losses of pension obligations1 | $ | 0.19 | $ | — | ||||||
Adjusted profit per share | $ | 1.03 | $ | 2.83 | ||||||
1 At statutory tax rates. | ||||||||||
Note: On March 26, 2020, the company withdrew its previous financial outlook due to the continued global economic uncertainty related to the COVID-19 pandemic. | ||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Sales and revenues: | |||||||||||||||
Sales of Machinery, Energy & Transportation | $ | 9,310 | $ | 13,671 | $ | 19,224 | $ | 26,395 | |||||||
Revenues of Financial Products | 687 | 761 | 1,408 | 1,503 | |||||||||||
Total sales and revenues | 9,997 | 14,432 | 20,632 | 27,898 | |||||||||||
Operating costs: | |||||||||||||||
Cost of goods sold | 7,113 | 9,941 | 14,379 | 18,944 | |||||||||||
Selling, general and administrative expenses | 1,179 | 1,309 | 2,300 | 2,628 | |||||||||||
Research and development expenses | 341 | 441 | 697 | 876 | |||||||||||
Interest expense of Financial Products | 149 | 192 | 324 | 382 | |||||||||||
Other operating (income) expenses | 431 | 336 | 744 | 648 | |||||||||||
Total operating costs | 9,213 | 12,219 | 18,444 | 23,478 | |||||||||||
Operating profit | 784 | 2,213 | 2,188 | 4,420 | |||||||||||
Interest expense excluding Financial Products | 135 | 103 | 248 | 206 | |||||||||||
Other income (expense) | 29 | 68 | 251 | 228 | |||||||||||
Consolidated profit before taxes | 678 | 2,178 | 2,191 | 4,442 | |||||||||||
Provision (benefit) for income taxes | 227 | 565 | 652 | 952 | |||||||||||
Profit of consolidated companies | 451 | 1,613 | 1,539 | 3,490 | |||||||||||
Equity in profit (loss) of unconsolidated affiliated companies | 8 | 6 | 13 | 13 | |||||||||||
Profit of consolidated and affiliated companies | 459 | 1,619 | 1,552 | 3,503 | |||||||||||
Less: Profit (loss) attributable to noncontrolling interests | 1 | (1 | ) | 2 | 2 | ||||||||||
Profit 1 | $ | 458 | $ | 1,620 | $ | 1,550 | $ | 3,501 | |||||||
Profit per common share | $ | 0.84 | $ | 2.85 | $ | 2.85 | $ | 6.14 | |||||||
Profit per common share — diluted 2 | $ | 0.84 | $ | 2.83 | $ | 2.83 | $ | 6.08 | |||||||
Weighted-average common shares outstanding (millions) | |||||||||||||||
– Basic | 541.5 | 567.8 | 544.5 | 569.9 | |||||||||||
– Diluted 2 | 544.5 | 573.1 | 548.2 | 575.8 | |||||||||||
1 | Profit attributable to common shareholders. |
2 | Diluted by assumed exercise of stock-based compensation awards using the treasury stock method. |
June 30, 2020 | December 31, 2019 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and short-term investments | $ | 8,784 | $ | 8,284 | |||
Receivables – trade and other | 7,134 | 8,568 | |||||
Receivables – finance | 8,781 | 9,336 | |||||
Prepaid expenses and other current assets | 1,792 | 1,739 | |||||
Inventories | 11,371 | 11,266 | |||||
Total current assets | 37,862 | 39,193 | |||||
Property, plant and equipment – net | 12,357 | 12,904 | |||||
Long-term receivables – trade and other | 1,167 | 1,193 | |||||
Long-term receivables – finance | 12,560 | 12,651 | |||||
Noncurrent deferred and refundable income taxes | 1,459 | 1,411 | |||||
Intangible assets | 1,420 | 1,565 | |||||
Goodwill | 6,192 | 6,196 | |||||
Other assets | 3,549 | 3,340 | |||||
Total assets | $ | 76,566 | $ | 78,453 | |||
Liabilities | |||||||
Current liabilities: | |||||||
Short-term borrowings: | |||||||
-- Machinery, Energy & Transportation | $ | 13 | $ | 5 | |||
-- Financial Products | 4,301 | 5,161 | |||||
Accounts payable | 5,083 | 5,957 | |||||
Accrued expenses | 3,547 | 3,750 | |||||
Accrued wages, salaries and employee benefits | 958 | 1,629 | |||||
Customer advances | 1,227 | 1,187 | |||||
Dividends payable | 558 | 567 | |||||
Other current liabilities | 2,143 | 2,155 | |||||
Long-term debt due within one year: | |||||||
-- Machinery, Energy & Transportation | 1,395 | 16 | |||||
-- Financial Products | 6,006 | 6,194 | |||||
Total current liabilities | 25,231 | 26,621 | |||||
Long-term debt due after one year: | |||||||
-- Machinery, Energy & Transportation | 9,729 | 9,141 | |||||
-- Financial Products | 17,178 | 17,140 | |||||
Liability for postemployment benefits | 6,285 | 6,599 | |||||
Other liabilities | 4,366 | 4,323 | |||||
Total liabilities | 62,789 | 63,824 | |||||
Shareholders’ equity | |||||||
Common stock | 6,120 | 5,935 | |||||
Treasury stock | (25,412 | ) | (24,217 | ) | |||
Profit employed in the business | 34,841 | 34,437 | |||||
Accumulated other comprehensive income (loss) | (1,815 | ) | (1,567 | ) | |||
Noncontrolling interests | 43 | 41 | |||||
Total shareholders’ equity | 13,777 | 14,629 | |||||
Total liabilities and shareholders’ equity | $ | 76,566 | $ | 78,453 |
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
Cash flow from operating activities: | |||||||
Profit of consolidated and affiliated companies | $ | 1,552 | $ | 3,503 | |||
Adjustments for non-cash items: | |||||||
Depreciation and amortization | 1,222 | 1,288 | |||||
Net gain on remeasurement of pension obligations | (132 | ) | — | ||||
Provision (benefit) for deferred income taxes | (32 | ) | (34 | ) | |||
Other | 674 | 440 | |||||
Changes in assets and liabilities, net of acquisitions and divestitures: | |||||||
Receivables – trade and other | 1,176 | (166 | ) | ||||
Inventories | (145 | ) | (487 | ) | |||
Accounts payable | (655 | ) | 134 | ||||
Accrued expenses | (253 | ) | 151 | ||||
Accrued wages, salaries and employee benefits | (648 | ) | (979 | ) | |||
Customer advances | (2 | ) | 14 | ||||
Other assets – net | (7 | ) | (120 | ) | |||
Other liabilities – net | (229 | ) | (35 | ) | |||
Net cash provided by (used for) operating activities | 2,521 | 3,709 | |||||
Cash flow from investing activities: | |||||||
Capital expenditures – excluding equipment leased to others | (472 | ) | (479 | ) | |||
Expenditures for equipment leased to others | (526 | ) | (746 | ) | |||
Proceeds from disposals of leased assets and property, plant and equipment | 382 | 422 | |||||
Additions to finance receivables | (6,712 | ) | (6,181 | ) | |||
Collections of finance receivables | 6,801 | 5,902 | |||||
Proceeds from sale of finance receivables | 31 | 119 | |||||
Investments and acquisitions (net of cash acquired) | (49 | ) | (3 | ) | |||
Proceeds from sale of businesses and investments (net of cash sold) | 13 | — | |||||
Proceeds from sale of securities | 151 | 170 | |||||
Investments in securities | (369 | ) | (243 | ) | |||
Other – net | 7 | (40 | ) | ||||
Net cash provided by (used for) investing activities | (743 | ) | (1,079 | ) | |||
Cash flow from financing activities: | |||||||
Dividends paid | (1,125 | ) | (986 | ) | |||
Common stock issued, including treasury shares reissued | (10 | ) | 39 | ||||
Common shares repurchased | (1,130 | ) | (2,105 | ) | |||
Proceeds from debt issued (original maturities greater than three months) | 6,159 | 5,340 | |||||
Payments on debt (original maturities greater than three months) | (4,629 | ) | (4,901 | ) | |||
Short-term borrowings – net (original maturities three months or less) | (477 | ) | (436 | ) | |||
Other – net | (1 | ) | (2 | ) | |||
Net cash provided by (used for) financing activities | (1,213 | ) | (3,051 | ) | |||
Effect of exchange rate changes on cash | (66 | ) | (10 | ) | |||
Increase (decrease) in cash and short-term investments and restricted cash | 499 | (431 | ) | ||||
Cash and short-term investments and restricted cash at beginning of period | 8,292 | 7,890 | |||||
Cash and short-term investments and restricted cash at end of period | $ | 8,791 | $ | 7,459 |
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. |
Supplemental Consolidating Data | ||||||||||||||||
Consolidated | Machinery, Energy & Transportation 1 | Financial Products | Consolidating Adjustments | |||||||||||||
Sales and revenues: | ||||||||||||||||
Sales of Machinery, Energy & Transportation | $ | 9,310 | $ | 9,310 | $ | — | $ | — | ||||||||
Revenues of Financial Products | 687 | — | 780 | (93 | ) | 2 | ||||||||||
Total sales and revenues | 9,997 | 9,310 | 780 | (93 | ) | |||||||||||
Operating costs: | ||||||||||||||||
Cost of goods sold | 7,113 | 7,114 | — | (1 | ) | 3 | ||||||||||
Selling, general and administrative expenses | 1,179 | 984 | 201 | (6 | ) | 3 | ||||||||||
Research and development expenses | 341 | 341 | — | — | ||||||||||||
Interest expense of Financial Products | 149 | — | 149 | — | ||||||||||||
Other operating (income) expenses | 431 | 122 | 320 | (11 | ) | 3 | ||||||||||
Total operating costs | 9,213 | 8,561 | 670 | (18 | ) | |||||||||||
Operating profit | 784 | 749 | 110 | (75 | ) | |||||||||||
Interest expense excluding Financial Products | 135 | 135 | — | — | ||||||||||||
Other income (expense) | 29 | (77 | ) | 31 | 75 | 4 | ||||||||||
Consolidated profit before taxes | 678 | 537 | 141 | — | ||||||||||||
Provision (benefit) for income taxes | 227 | 190 | 37 | — | ||||||||||||
Profit of consolidated companies | 451 | 347 | 104 | — | ||||||||||||
Equity in profit (loss) of unconsolidated affiliated companies | 8 | 8 | — | — | ||||||||||||
Equity in profit of Financial Products’ subsidiaries | — | 99 | — | (99 | ) | 5 | ||||||||||
Profit of consolidated and affiliated companies | 459 | 454 | 104 | (99 | ) | |||||||||||
Less: Profit (loss) attributable to noncontrolling interests | 1 | (4 | ) | 5 | — | |||||||||||
Profit 6 | $ | 458 | $ | 458 | $ | 99 | $ | (99 | ) |
1 | Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis. |
2 | Elimination of Financial Products’ revenues earned from Machinery, Energy & Transportation. |
3 | Elimination of net expenses recorded by Machinery, Energy & Transportation paid to Financial Products. |
4 | Elimination of discount recorded by Machinery, Energy & Transportation on receivables sold to Financial Products and of interest earned between Machinery, Energy & Transportation and Financial Products. |
5 | Elimination of Financial Products’ profit due to equity method of accounting. |
6 | Profit attributable to common shareholders. |
Supplemental Consolidating Data | ||||||||||||||||
Consolidated | Machinery, Energy & Transportation 1 | Financial Products | Consolidating Adjustments | |||||||||||||
Sales and revenues: | ||||||||||||||||
Sales of Machinery, Energy & Transportation | $ | 13,671 | $ | 13,671 | $ | — | $ | — | ||||||||
Revenues of Financial Products | 761 | — | 894 | (133 | ) | 2 | ||||||||||
Total sales and revenues | 14,432 | 13,671 | 894 | (133 | ) | |||||||||||
Operating costs: | ||||||||||||||||
Cost of goods sold | 9,941 | 9,943 | — | (2 | ) | 3 | ||||||||||
Selling, general and administrative expenses | 1,309 | 1,102 | 209 | (2 | ) | 3 | ||||||||||
Research and development expenses | 441 | 441 | — | — | ||||||||||||
Interest expense of Financial Products | 192 | — | 201 | (9 | ) | 4 | ||||||||||
Other operating (income) expenses | 336 | 1 | 341 | (6 | ) | 3 | ||||||||||
Total operating costs | 12,219 | 11,487 | 751 | (19 | ) | |||||||||||
Operating profit | 2,213 | 2,184 | 143 | (114 | ) | |||||||||||
Interest expense excluding Financial Products | 103 | 105 | — | (2 | ) | 4 | ||||||||||
Other income (expense) | 68 | (63 | ) | 19 | 112 | 5 | ||||||||||
Consolidated profit before taxes | 2,178 | 2,016 | 162 | — | ||||||||||||
Provision (benefit) for income taxes | 565 | 502 | 63 | — | ||||||||||||
Profit of consolidated companies | 1,613 | 1,514 | 99 | — | ||||||||||||
Equity in profit (loss) of unconsolidated affiliated companies | 6 | 6 | — | — | ||||||||||||
Equity in profit of Financial Products’ subsidiaries | — | 94 | — | (94 | ) | 6 | ||||||||||
Profit of consolidated and affiliated companies | 1,619 | 1,614 | 99 | (94 | ) | |||||||||||
Less: Profit (loss) attributable to noncontrolling interests | (1 | ) | (6 | ) | 5 | — | ||||||||||
Profit 7 | $ | 1,620 | $ | 1,620 | $ | 94 | $ | (94 | ) |
1 | Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis. |
2 | Elimination of Financial Products’ revenues earned from Machinery, Energy & Transportation. |
3 | Elimination of net expenses recorded by Machinery, Energy & Transportation paid to Financial Products. |
4 | Elimination of interest expense recorded between Financial Products and Machinery, Energy & Transportation. |
5 | Elimination of discount recorded by Machinery, Energy & Transportation on receivables sold to Financial Products and of interest earned between Machinery, Energy & Transportation and Financial Products. |
6 | Elimination of Financial Products’ profit due to equity method of accounting. |
7 | Profit attributable to common shareholders. |
Supplemental Consolidating Data | ||||||||||||||||
Consolidated | Machinery, Energy & Transportation 1 | Financial Products | Consolidating Adjustments | |||||||||||||
Sales and revenues: | ||||||||||||||||
Sales of Machinery, Energy & Transportation | $ | 19,224 | $ | 19,224 | $ | — | $ | — | ||||||||
Revenues of Financial Products | 1,408 | — | 1,610 | (202 | ) | 2 | ||||||||||
Total sales and revenues | 20,632 | 19,224 | 1,610 | (202 | ) | |||||||||||
Operating costs: | ||||||||||||||||
Cost of goods sold | 14,379 | 14,381 | — | (2 | ) | 3,000,000 | ||||||||||
Selling, general and administrative expenses | 2,300 | 1,924 | 383 | (7 | ) | 3 | ||||||||||
Research and development expenses | 697 | 697 | — | — | ||||||||||||
Interest expense of Financial Products | 324 | — | 325 | (1 | ) | 4 | ||||||||||
Other operating (income) expenses | 744 | 132 | 640 | (28 | ) | 3 | ||||||||||
Total operating costs | 18,444 | 17,134 | 1,348 | (38 | ) | |||||||||||
Operating profit | 2,188 | 2,090 | 262 | (164 | ) | |||||||||||
Interest expense excluding Financial Products | 248 | 247 | — | 1 | 4 | |||||||||||
Other income (expense) | 251 | 102 | (16 | ) | 165 | 5 | ||||||||||
Consolidated profit before taxes | 2,191 | 1,945 | 246 | — | ||||||||||||
Provision (benefit) for income taxes | 652 | 587 | 65 | — | ||||||||||||
Profit of consolidated companies | 1,539 | 1,358 | 181 | — | ||||||||||||
Equity in profit (loss) of unconsolidated affiliated companies | 13 | 13 | — | — | ||||||||||||
Equity in profit of Financial Products’ subsidiaries | — | 172 | — | (172 | ) | 6 | ||||||||||
Profit of consolidated and affiliated companies | 1,552 | 1,543 | 181 | (172 | ) | |||||||||||
Less: Profit (loss) attributable to noncontrolling interests | 2 | (7 | ) | 9 | — | |||||||||||
Profit 7 | $ | 1,550 | $ | 1,550 | $ | 172 | $ | (172 | ) |
1 | Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis. |
2 | Elimination of Financial Products’ revenues earned from Machinery, Energy & Transportation. |
3 | Elimination of net expenses recorded by Machinery, Energy & Transportation paid to Financial Products. |
4 | Elimination of interest expense recorded between Financial Products and Machinery, Energy & Transportation. |
5 | Elimination of discount recorded by Machinery, Energy & Transportation on receivables sold to Financial Products and of interest earned between Machinery, Energy & Transportation and Financial Products. |
6 | Elimination of Financial Products’ profit due to equity method of accounting. |
7 | Profit attributable to common shareholders. |
Supplemental Consolidating Data | |||||||||||||||||
Consolidated | Machinery, Energy & Transportation 1 | Financial Products | Consolidating Adjustments | ||||||||||||||
Sales and revenues: | |||||||||||||||||
Sales of Machinery, Energy & Transportation | $ | 26,395 | $ | 26,395 | $ | — | $ | — | |||||||||
Revenues of Financial Products | 1,503 | — | 1,764 | (261 | ) | 2 | |||||||||||
Total sales and revenues | 27,898 | 26,395 | 1,764 | (261 | ) | ||||||||||||
Operating costs: | |||||||||||||||||
Cost of goods sold | 18,944 | 18,946 | — | (2 | ) | 3 | |||||||||||
Selling, general and administrative expenses | 2,628 | 2,229 | 401 | (2 | ) | 3 | |||||||||||
Research and development expenses | 876 | 876 | — | — | |||||||||||||
Interest expense of Financial Products | 382 | — | 401 | (19 | ) | 4 | |||||||||||
Other operating (income) expenses | 648 | 11 | 654 | (17 | ) | 3 | |||||||||||
Total operating costs | 23,478 | 22,062 | 1,456 | (40 | ) | ||||||||||||
Operating profit | 4,420 | 4,333 | 308 | (221 | ) | ||||||||||||
Interest expense excluding Financial Products | 206 | 215 | — | (9 | ) | 4 | |||||||||||
Other income (expense) | 228 | (44 | ) | 60 | 212 | 5 | |||||||||||
Consolidated profit before taxes | 4,442 | 4,074 | 368 | — | |||||||||||||
Provision (benefit) for income taxes | 952 | 837 | 115 | — | |||||||||||||
Profit of consolidated companies | 3,490 | 3,237 | 253 | — | |||||||||||||
Equity in profit (loss) of unconsolidated affiliated companies | 13 | 13 | — | — | |||||||||||||
Equity in profit of Financial Products’ subsidiaries | — | 242 | — | (242 | ) | 6 | |||||||||||
Profit of consolidated and affiliated companies | 3,503 | 3,492 | 253 | (242 | ) | ||||||||||||
Less: Profit (loss) attributable to noncontrolling interests | 2 | (9 | ) | 11 | — | ||||||||||||
Profit 7 | $ | 3,501 | $ | 3,501 | $ | 242 | $ | (242 | ) |
1 | Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis. |
2 | Elimination of Financial Products’ revenues earned from Machinery, Energy & Transportation. |
3 | Elimination of net expenses recorded by Machinery, Energy & Transportation paid to Financial Products. |
4 | Elimination of interest expense recorded between Financial Products and Machinery, Energy & Transportation. |
5 | Elimination of discount recorded by Machinery, Energy & Transportation on receivables sold to Financial Products and of interest earned between Machinery, Energy & Transportation and Financial Products. |
6 | Elimination of Financial Products’ profit due to equity method of accounting. |
7 | Profit attributable to common shareholders. |
Supplemental Consolidating Data | ||||||||||||||||
Consolidated | Machinery, Energy & Transportation 1 | Financial Products | Consolidating Adjustments | |||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and short-term investments | $ | 8,784 | $ | 8,030 | $ | 754 | $ | — | ||||||||
Receivables – trade and other | 7,134 | 2,599 | 506 | 4,029 | 2,3 | |||||||||||
Receivables – finance | 8,781 | — | 13,064 | (4,283 | ) | 3 | ||||||||||
Prepaid expenses and other current assets | 1,792 | 1,185 | 618 | (11 | ) | 4 | ||||||||||
Inventories | 11,371 | 11,371 | — | — | ||||||||||||
Total current assets | 37,862 | 23,185 | 14,942 | (265 | ) | |||||||||||
Property, plant and equipment – net | 12,357 | 8,250 | 4,107 | — | ||||||||||||
Long-term receivables – trade and other | 1,167 | 274 | 194 | 699 | 2,3 | |||||||||||
Long-term receivables – finance | 12,560 | — | 13,277 | (717 | ) | 3 | ||||||||||
Investments in Financial Products subsidiaries | — | 4,257 | — | (4,257 | ) | 5 | ||||||||||
Noncurrent deferred and refundable income taxes | 1,459 | 1,990 | 106 | (637 | ) | 6 | ||||||||||
Intangible assets | 1,420 | 1,420 | — | — | ||||||||||||
Goodwill | 6,192 | 6,192 | — | — | ||||||||||||
Other assets | 3,549 | 1,880 | 1,766 | (97 | ) | 7 | ||||||||||
Total assets | $ | 76,566 | $ | 47,448 | $ | 34,392 | $ | (5,274 | ) | |||||||
Liabilities | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Short-term borrowings | $ | 4,314 | $ | 13 | $ | 4,301 | $ | — | ||||||||
Short-term borrowings with consolidated companies | — | — | 99 | (99 | ) | 8 | ||||||||||
Accounts payable | 5,083 | 5,046 | 196 | (159 | ) | 9 | ||||||||||
Accrued expenses | 3,547 | 3,239 | 308 | — | ||||||||||||
Accrued wages, salaries and employee benefits | 958 | 943 | 15 | — | ||||||||||||
Customer advances | 1,227 | 1,227 | — | — | ||||||||||||
Dividends payable | 558 | 558 | — | — | ||||||||||||
Other current liabilities | 2,143 | 1,521 | 654 | (32 | ) | 6,10 | ||||||||||
Long-term debt due within one year | 7,401 | 1,395 | 6,006 | — | ||||||||||||
Total current liabilities | 25,231 | 13,942 | 11,579 | (290 | ) | |||||||||||
Long-term debt due after one year | 26,907 | 9,743 | 17,178 | (14 | ) | 8 | ||||||||||
Liability for postemployment benefits | 6,285 | 6,284 | 1 | — | ||||||||||||
Other liabilities | 4,366 | 3,702 | 1,377 | (713 | ) | 6 | ||||||||||
Total liabilities | 62,789 | 33,671 | 30,135 | (1,017 | ) | |||||||||||
Shareholders’ equity | ||||||||||||||||
Common stock | 6,120 | 6,120 | 919 | (919 | ) | 5 | ||||||||||
Treasury stock | (25,412 | ) | (25,412 | ) | — | — | ||||||||||
Profit employed in the business | 34,841 | 34,841 | 4,136 | (4,136 | ) | 5 | ||||||||||
Accumulated other comprehensive income (loss) | (1,815 | ) | (1,815 | ) | (977 | ) | 977 | 5 | ||||||||
Noncontrolling interests | 43 | 43 | 179 | (179 | ) | 5 | ||||||||||
Total shareholders’ equity | 13,777 | 13,777 | 4,257 | (4,257 | ) | |||||||||||
Total liabilities and shareholders’ equity | $ | 76,566 | $ | 47,448 | $ | 34,392 | $ | (5,274 | ) |
1 | Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis. |
2 | Elimination of receivables between Machinery, Energy & Transportation and Financial Products. |
3 | Reclassification of Machinery, Energy & Transportation’s trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables. |
4 | Elimination of Machinery, Energy & Transportation’s insurance premiums that are prepaid to Financial Products. |
5 | Elimination of Financial Products’ equity which is accounted for by Machinery, Energy & Transportation on the equity basis. |
6 | Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction. |
7 | Elimination of other intercompany assets between Machinery, Energy & Transportation and Financial Products. |
8 | Elimination of debt between Machinery, Energy & Transportation and Financial Products. |
9 | Elimination of payables between Machinery, Energy & Transportation and Financial Products. |
10 | Elimination of prepaid insurance in Financial Products’ other liabilities. |
Supplemental Consolidating Data | ||||||||||||||||
Consolidated | Machinery, Energy & Transportation 1 | Financial Products | Consolidating Adjustments | |||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and short-term investments | $ | 8,284 | $ | 7,299 | $ | 985 | $ | — | ||||||||
Receivables – trade and other | 8,568 | 3,737 | 451 | 4,380 | 2,3 | |||||||||||
Receivables – finance | 9,336 | — | 14,489 | (5,153 | ) | 3 | ||||||||||
Prepaid expenses and other current assets | 1,739 | 1,290 | 529 | (80 | ) | 4 | ||||||||||
Inventories | 11,266 | 11,266 | — | — | ||||||||||||
Total current assets | 39,193 | 23,592 | 16,454 | (853 | ) | |||||||||||
Property, plant and equipment – net | 12,904 | 8,606 | 4,298 | — | ||||||||||||
Long-term receivables – trade and other | 1,193 | 348 | 152 | 693 | 2,3 | |||||||||||
Long-term receivables – finance | 12,651 | — | 13,354 | (703 | ) | 3 | ||||||||||
Investments in Financial Products subsidiaries | — | 4,260 | — | (4,260 | ) | 5 | ||||||||||
Noncurrent deferred and refundable income taxes | 1,411 | 2,002 | 117 | (708 | ) | 6 | ||||||||||
Intangible assets | 1,565 | 1,565 | — | — | ||||||||||||
Goodwill | 6,196 | 6,196 | — | — | ||||||||||||
Other assets | 3,340 | 1,868 | 1,572 | (100 | ) | 7 | ||||||||||
Total assets | $ | 78,453 | $ | 48,437 | $ | 35,947 | $ | (5,931 | ) | |||||||
Liabilities | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Short-term borrowings | $ | 5,166 | $ | 5 | $ | 5,161 | $ | — | ||||||||
Short-term borrowings with consolidated companies | — | — | 600 | (600 | ) | 8 | ||||||||||
Accounts payable | 5,957 | 5,918 | 212 | (173 | ) | 9 | ||||||||||
Accrued expenses | 3,750 | 3,415 | 335 | — | ||||||||||||
Accrued wages, salaries and employee benefits | 1,629 | 1,580 | 49 | — | ||||||||||||
Customer advances | 1,187 | 1,187 | — | — | ||||||||||||
Dividends payable | 567 | 567 | — | — | ||||||||||||
Other current liabilities | 2,155 | 1,689 | 566 | (100 | ) | 6,10 | ||||||||||
Long-term debt due within one year | 6,210 | 16 | 6,194 | — | ||||||||||||
Total current liabilities | 26,621 | 14,377 | 13,117 | (873 | ) | |||||||||||
Long-term debt due after one year | 26,281 | 9,151 | 17,140 | (10 | ) | 8 | ||||||||||
Liability for postemployment benefits | 6,599 | 6,599 | — | — | ||||||||||||
Other liabilities | 4,323 | 3,681 | 1,430 | (788 | ) | 6 | ||||||||||
Total liabilities | 63,824 | 33,808 | 31,687 | (1,671 | ) | |||||||||||
Shareholders’ equity | ||||||||||||||||
Common stock | 5,935 | 5,935 | 919 | (919 | ) | 5 | ||||||||||
Treasury stock | (24,217 | ) | (24,217 | ) | — | — | ||||||||||
Profit employed in the business | 34,437 | 34,437 | 3,997 | (3,997 | ) | 5 | ||||||||||
Accumulated other comprehensive income (loss) | (1,567 | ) | (1,567 | ) | (828 | ) | 828 | 5 | ||||||||
Noncontrolling interests | 41 | 41 | 172 | (172 | ) | 5 | ||||||||||
Total shareholders’ equity | 14,629 | 14,629 | 4,260 | (4,260 | ) | |||||||||||
Total liabilities and shareholders’ equity | $ | 78,453 | $ | 48,437 | $ | 35,947 | $ | (5,931 | ) |
1 | Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis. |
2 | Elimination of receivables between Machinery, Energy & Transportation and Financial Products. |
3 | Reclassification of Machinery, Energy & Transportation’s trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables. |
4 | Elimination of Machinery, Energy & Transportation’s insurance premiums that are prepaid to Financial Products. |
5 | Elimination of Financial Products’ equity which is accounted for by Machinery, Energy & Transportation on the equity basis. |
6 | Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction. |
7 | Elimination of other intercompany assets between Machinery, Energy & Transportation and Financial Products. |
8 | Elimination of debt between Machinery, Energy & Transportation and Financial Products. |
9 | Elimination of payables between Machinery, Energy & Transportation and Financial Products. |
10 | Elimination of prepaid insurance in Financial Products’ other liabilities. |
Supplemental Consolidating Data | ||||||||||||||||
Consolidated | Machinery, Energy & Transportation 1 | Financial Products | Consolidating Adjustments | |||||||||||||
Cash flow from operating activities: | ||||||||||||||||
Profit of consolidated and affiliated companies | $ | 1,552 | $ | 1,543 | $ | 181 | $ | (172 | ) | 2 | ||||||
Adjustments for non-cash items: | ||||||||||||||||
Depreciation and amortization | 1,222 | 805 | 417 | — | ||||||||||||
Undistributed profit of Financial Products | — | (152 | ) | — | 152 | 3 | ||||||||||
Net gain on remeasurement of pension obligations | (132 | ) | (132 | ) | — | — | ||||||||||
Provision (benefit) for deferred income taxes | (32 | ) | 40 | (72 | ) | — | ||||||||||
Other | 674 | 347 | 145 | 182 | 4 | |||||||||||
Changes in assets and liabilities, net of acquisitions and divestitures: | ||||||||||||||||
Receivables – trade and other | 1,176 | 539 | (77 | ) | 714 | 4, 5 | ||||||||||
Inventories | (145 | ) | (137 | ) | — | (8 | ) | 4 | ||||||||
Accounts payable | (655 | ) | (664 | ) | (5 | ) | 14 | 4 | ||||||||
Accrued expenses | (253 | ) | (237 | ) | (16 | ) | — | |||||||||
Accrued wages, salaries and employee benefits | (648 | ) | (614 | ) | (34 | ) | — | |||||||||
Customer advances | (2 | ) | (2 | ) | — | — | ||||||||||
Other assets – net | (7 | ) | 30 | 30 | (67 | ) | 4 | |||||||||
Other liabilities – net | (229 | ) | (391 | ) | 84 | 78 | 4 | |||||||||
Net cash provided by (used for) operating activities | 2,521 | 975 | 653 | 893 | ||||||||||||
Cash flow from investing activities: | ||||||||||||||||
Capital expenditures – excluding equipment leased to others | (472 | ) | (465 | ) | (7 | ) | — | |||||||||
Expenditures for equipment leased to others | (526 | ) | 1 | (540 | ) | 13 | 4 | |||||||||
Proceeds from disposals of leased assets and property, plant and equipment | 382 | 104 | 283 | (5 | ) | 4 | ||||||||||
Additions to finance receivables | (6,712 | ) | — | (7,352 | ) | 640 | 5 | |||||||||
Collections of finance receivables | 6,801 | — | 7,442 | (641 | ) | 5 | ||||||||||
Net intercompany purchased receivables | — | — | 920 | (920 | ) | 5 | ||||||||||
Proceeds from sale of finance receivables | 31 | — | 31 | — | ||||||||||||
Net intercompany borrowings | — | 500 | 2 | (502 | ) | 6 | ||||||||||
Investments and acquisitions (net of cash acquired) | (49 | ) | (49 | ) | — | — | ||||||||||
Proceeds from sale of businesses and investments (net of cash sold) | 13 | 13 | — | — | ||||||||||||
Proceeds from sale of securities | 151 | 12 | 139 | — | ||||||||||||
Investments in securities | (369 | ) | (10 | ) | (359 | ) | — | |||||||||
Other – net | 7 | (15 | ) | 22 | — | |||||||||||
Net cash provided by (used for) investing activities | (743 | ) | 91 | 581 | (1,415 | ) | ||||||||||
Cash flow from financing activities: | ||||||||||||||||
Dividends paid | (1,125 | ) | (1,125 | ) | (20 | ) | 20 | 7 | ||||||||
Common stock issued, including treasury shares reissued | (10 | ) | (10 | ) | — | — | ||||||||||
Common shares repurchased | (1,130 | ) | (1,130 | ) | — | — | ||||||||||
Net intercompany borrowings | — | (2 | ) | (500 | ) | 502 | 6 | |||||||||
Proceeds from debt issued > 90 days | 6,159 | 1,991 | 4,168 | — | ||||||||||||
Payments on debt > 90 days | (4,629 | ) | (12 | ) | (4,617 | ) | — | |||||||||
Short-term borrowings – net < 90 days | (477 | ) | 8 | (485 | ) | — | ||||||||||
Other – net | (1 | ) | (1 | ) | — | — | ||||||||||
Net cash provided by (used for) financing activities | (1,213 | ) | (281 | ) | (1,454 | ) | 522 | |||||||||
Effect of exchange rate changes on cash | (66 | ) | (54 | ) | (12 | ) | — | |||||||||
Increase (decrease) in cash and short-term investments and restricted cash | 499 | 731 | (232 | ) | — | |||||||||||
Cash and short-term investments and restricted cash at beginning of period | 8,292 | 7,302 | 990 | — | ||||||||||||
Cash and short-term investments and restricted cash at end of period | $ | 8,791 | $ | 8,033 | $ | 758 | $ | — |
1 | Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis. |
2 | Elimination of Financial Products’ profit after tax due to equity method of accounting. |
3 | Elimination of non-cash adjustment for the undistributed earnings from Financial Products. |
4 | Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting. |
5 | Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory. |
6 | Elimination of net proceeds and payments to/from Machinery, Energy & Transportation and Financial Products. |
7 | Elimination of dividend from Financial Products to Machinery, Energy & Transportation. |
Supplemental Consolidating Data | ||||||||||||||||
Consolidated | Machinery, Energy & Transportation 1 | Financial Products | Consolidating Adjustments | |||||||||||||
Cash flow from operating activities: | ||||||||||||||||
Profit of consolidated and affiliated companies | $ | 3,503 | $ | 3,492 | $ | 253 | $ | (242 | ) | 2 | ||||||
Adjustments for non-cash items: | ||||||||||||||||
Depreciation and amortization | 1,288 | 855 | 433 | — | ||||||||||||
Undistributed profit of Financial Products | — | (242 | ) | — | 242 | 3 | ||||||||||
Provision (benefit) for deferred income taxes | (34 | ) | (16 | ) | (18 | ) | — | |||||||||
Other | 440 | 264 | (51 | ) | 227 | 4 | ||||||||||
Changes in assets and liabilities, net of acquisitions and divestitures: | ||||||||||||||||
Receivables – trade and other | (166 | ) | 161 | (5 | ) | (322 | ) | 4, 5 | ||||||||
Inventories | (487 | ) | (489 | ) | — | 2 | 4 | |||||||||
Accounts payable | 134 | (94 | ) | 279 | (51 | ) | 4 | |||||||||
Accrued expenses | 151 | 158 | (5 | ) | (2 | ) | 4 | |||||||||
Accrued wages, salaries and employee benefits | (979 | ) | (978 | ) | (1 | ) | — | |||||||||
Customer advances | 14 | 18 | — | (4 | ) | 4 | ||||||||||
Other assets – net | (120 | ) | (165 | ) | 61 | (16 | ) | 4 | ||||||||
Other liabilities – net | (35 | ) | (144 | ) | 89 | 20 | 4 | |||||||||
Net cash provided by (used for) operating activities | 3,709 | 2,820 | 1,035 | (146 | ) | |||||||||||
Cash flow from investing activities: | ||||||||||||||||
Capital expenditures – excluding equipment leased to others | (479 | ) | (468 | ) | (11 | ) | — | |||||||||
Expenditures for equipment leased to others | (746 | ) | (24 | ) | (725 | ) | 3 | 4 | ||||||||
Proceeds from disposals of leased assets and property, plant and equipment | 422 | 97 | 367 | (42 | ) | 4 | ||||||||||
Additions to finance receivables | (6,181 | ) | — | (7,027 | ) | 846 | 5 | |||||||||
Collections of finance receivables | 5,902 | — | 6,548 | (646 | ) | 5 | ||||||||||
Net intercompany purchased receivables | — | — | 15 | (15 | ) | 5 | ||||||||||
Proceeds from sale of finance receivables | 119 | — | 119 | — | ||||||||||||
Net intercompany borrowings | — | 213 | 1 | (214 | ) | 6 | ||||||||||
Investments and acquisitions (net of cash acquired) | (3 | ) | (3 | ) | — | — | ||||||||||
Proceeds from sale of securities | 170 | 13 | 157 | — | ||||||||||||
Investments in securities | (243 | ) | (12 | ) | (231 | ) | — | |||||||||
Other – net | (40 | ) | (9 | ) | (31 | ) | — | |||||||||
Net cash provided by (used for) investing activities | (1,079 | ) | (193 | ) | (818 | ) | (68 | ) | ||||||||
Cash flow from financing activities: | ||||||||||||||||
Dividends paid | (986 | ) | (986 | ) | — | — | ||||||||||
Common stock issued, including treasury shares reissued | 39 | 39 | — | — | ||||||||||||
Common shares repurchased | (2,105 | ) | (2,105 | ) | — | — | ||||||||||
Net intercompany borrowings | — | (1 | ) | (213 | ) | 214 | 6 | |||||||||
Proceeds from debt issued > 90 days | 5,340 | — | 5,340 | — | ||||||||||||
Payments on debt > 90 days | (4,901 | ) | (4 | ) | (4,897 | ) | — | |||||||||
Short-term borrowings – net < 90 days | (436 | ) | — | (436 | ) | — | ||||||||||
Other – net | (2 | ) | (2 | ) | — | — | ||||||||||
Net cash provided by (used for) financing activities | (3,051 | ) | (3,059 | ) | (206 | ) | 214 | |||||||||
Effect of exchange rate changes on cash | (10 | ) | (8 | ) | (2 | ) | — | |||||||||
Increase (decrease) in cash and short-term investments and restricted cash | (431 | ) | (440 | ) | 9 | — | ||||||||||
Cash and short-term investments and restricted cash at beginning of period | 7,890 | 6,994 | 896 | — | ||||||||||||
Cash and short-term investments and restricted cash at end of period | $ | 7,459 | $ | 6,554 | $ | 905 | $ | — |
1 | Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis. |
2 | Elimination of Financial Products’ profit after tax due to equity method of accounting. |
3 | Elimination of non-cash adjustment for the undistributed earnings from Financial Products. |
4 | Elimination of non-cash adjustment and changes in assets and liabilities related to consolidated reporting. |
5 | Reclassification of Financial Products’ cash flow activity from investing to operating for receivables that arose from the sale of inventory. |
6 | Elimination of net proceeds and payments to/from Machinery, Energy & Transportation and Financial Products. |
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end
?'WP=\1=%^#OA_P"&']J_L^>*_%>L:KXG\\
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MN5 +6]Q$>4< @CJK*RLI((-=S-^SQX"G^#!^'+>#/"__ @#6']E?\(X-+A&
ME_9-GE^0+<+Y8CV?+MQC%?+/_!*G_@A]X!_X))_$CXD:]X"\6>+M0L_B-(JR
M:+?/$;#3H(9YI+5$^4S.\*3/'YCR'<&8D9/ !]KT5^+/[:7_ =&?$;Q!^TE
MXH^%W['/P-NOC5>^#Y#!?:\=*U'68;B2.0I.8;&QV2F!2"JSM*H &O"=J8()+N19;N\D9C)+<3NJJ'FED9W22)MT,T;?*YQNP<$$ ^J_\
M@U3TS3+#_@A[\)Y;".W2ZO;W79M2:-0&DN!K%XBE_5O)2 9/\*J.U?%7_!N'
M'?>&?^#@/]M[0_#UK!#\/X;_ ,0!Q"JK'!-#XCV6"* 1A?(>[P N,+VX!\5_
MX)F_L9_M\^%?^"6WPY\>?L>_%3_BE_BF^IR^(O"=T^FQ3:1>PZI
#/V(_^"9S_ +.VKM:^+++Q/9WP\97BVXA36[F^C\JY8#&=JQ".%&;+
M;(8\\CC\N]/_ .".O_!2/_@E7XJ\0>$/V2?B7:>(/A-XCU8R6HEN]*6XL8I
M!Y]Q!J492&11A7>S+-)M5@HSM4 VOV>H+WP/_P 'KWQ'T_P+8VJ>'=2TV?\
MX240(JI#!)X=M+F:3&1\S:F+?=@$Y=N.K#G-:T.U\0_\'T:07<*3Q1SPW*JZ
M@@21> UEC;GNKHI'H0*^Y?\ @A'_ ,$2/$G_ 3R\1>-OB]\:/%5IX\^/GQ*
MWQ:C?P3/=0Z7:M+YKQK/(BR2S3.L;2MM"CRT100I=_)/^'7'QV_XBP_^&E_^
M$&_XLE_T,?\ ;6G_ /0G?V;_ ,>OG_:O^/O]W_JO]K[GS4 ?/G_!\U:QI=?L
MP3A%$LB>*D9\4V[&1Y!*P/Z-U^7_P[\8VWQ _8;_9U_98
MCN/^+S>#O$GAC1_%7AQE/]H>'K+P[?PW-SJ-Q'@&.SEAT]?L]PP$_!'QP^(G_!/OX@Z3^SSJL.E?$JYLL6NT-'>W
MEO\ \MH;.X$T0MKIDSLE;>."H56=98_R&^"_["G[1_\ P4G/PM^!&H>"/%'P
MJ_9O^$1GU[7F\>_#_6-#C\2:Q+*\[PW%M+XAFNM51YV=A-#=VZIY\IVIB-3G
M";G.4%I:V^UM7)_)+1;M^[I=-W42A352][WT]+67JVUTLE=WT:/Z#H9DN85D
MC97C/X ?'3X7^(/B;JDND#X5_ #5]?CG\/>"?$/@K
M4-*U"7%LZW%Q86UQK-VVE0O<%'996NEG )C\H$8_56NBI!1M;JD_2ZO9_P!>
MMGH9W?-*+6S:^YV_KIV;W"BBBLQA1110 4444 ?/_P#P5B_Y19?M+?\ 9*O%
M'_IHNJ^@*^?_ /@K%_RBR_:6_P"R5>*/_31=5] 4 %?S!?\ !ZM_RE-\ _\
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MY>J_->J/H.$X<^>8.-KWJT]+7O[ZTMRSOZ&EAFK\TIO716=."U:U5W!K3JUW.J-3DKPQ"?PJ"TU=U4ELG
MO923]$^Q^;'_ 58^"FL_P#!//\ 86TC1/ OC_Q_XTL?'W@G7/ WB&PUSQ%/
MJ5AJ4,'AF_O8M1L[25I(;!HOL!&RS$,/E3,&5BJ.OU-^W?(-<\8_LBQZ C27
MMQXLO+G3TCPTGD#PEK&X@\C;AT!YP=P'.:](^%7_ 3A\+^ ?$NFW_B'Q=\0
M?B?!X#4Y=-?5[2]FCLIXQ<11R
M21 17#L61<@*<%?O#\%M#^.?[.O[2_MR
M^(O^$0_9:\4:M_PD7BWPA_9?V2[_ +>\.6']H7FB>7=P/]KDML'S[2+'F746
M#OM4N%QS7K5>2_MR^(O^$0_9:\4:M_PD7BWPA_9?V2[_ +>\.6']H7FB>7=P
M/]KDML'S[2+'F746#OM4N%QS7+CW;#5'_=?Y>J_->J/H.$X<^>8.-KWJT]+7
MO[ZTMRSOZ&=-@NX= \P*Z+6 6YB=!)F(L-NR0F+:&
MRV#Y=^QKX6_:._X*G_\ !93X;?M(>/OV?=9_9G\+_!WP[=Z1?OJZ3P:EXEN9
M;>>-403P0R2QAKC<,QF-$C=3([,!7Z/?\$[_ -@^/_@GGX \8^"]&\3MK7@?
M5?%=_P"(?#&D/IPMCX2M;MA(^G+()&\^)9?,=6*H0)""#C-?0==]2MSXF6*>
M\KRL_LRG&TE=;V3:[327ZM^25
MY2?2*;!Z0E4>T4V_ET]6[)=VTC[4HK\6OVIO^"BG[;/[8_[5O[1$/[*'B?P'
MX(^&'[*KO::T-7LK>>Z\774"2O<1(T]M-AMUM.BA6@7:%)ERP*[W[3?_ 6[
M^*OQ2_X(:_ KXN?#+4]+^'GQE^,GC*Q\%?:3:6]S96EXLUS#=2JEU',BP.UL
M&^97:-)<9)7=6<*G/2]K%;N&G6U1VA*W\KWUUMT+G#DJ.G)[<]WTO!7E'U2^
M7F?L/17Y/_L1_M+?M5?LY?!7XR?'CX]?M*_ C]I3X3^ _!]]