Caterpillar Reports Third-Quarter 2022 Results

Third-quarter 2022 sales and revenues increased 21% to $15.0 billion
Third-quarter 2022 profit per share of $3.87; adjusted profit per share of $3.95
Returned $2.0 billion to shareholders through share repurchases and dividends in the quarter

IRVING, Texas, Oct. 27, 2022 /PRNewswire/ — 

Third Quarter

($ in billions except profit per share)

2022

2021

Sales and Revenues

$15.0

$12.4

Profit Per Share

$3.87

$2.60

Adjusted Profit Per Share

$3.95

$2.66

Caterpillar Inc. (NYSE: CAT) announced third-quarter 2022 sales and revenues of $15.0 billion, a 21% increase compared with $12.4 billion in the third quarter of 2021. The increase was primarily due to favorable price realization and higher sales volume.

Operating profit margin was 16.2% for the third quarter of 2022, compared with 13.4% for the third quarter of 2021. Third-quarter 2022 profit per share was $3.87, compared with third-quarter 2021 profit per share of $2.60. Adjusted profit per share in the third quarter of 2022 was $3.95, compared with third-quarter 2021 adjusted profit per share of $2.66. Adjusted profit per share for both quarters excluded restructuring costs. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 13.

For the nine months ended September 30, 2022, enterprise operating cash flow was $5.0 billion, and the company ended the third quarter with $6.3 billion of enterprise cash. In the quarter, the company repurchased $1.4 billion of Caterpillar common stock and paid dividends of $0.6 billion.

“I’d like to thank our global Caterpillar team for delivering another quarter of double-digit top-line growth and record adjusted profit per share,” said Chairman and CEO Jim Umpleby. “Our team remains focused on serving our customers as we continued to see healthy demand across most of our end markets during the third quarter.”

CONSOLIDATED RESULTS

Consolidated Sales and Revenues

Consolidated Sales and Revenues Comparison Third Quarter 2022 vs. Third Quarter 2021

To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar third-quarter 2022 earnings.  

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the third quarter of 2021 (at left) and the third quarter of 2022 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company’s Board of Directors and employees.

Total sales and revenues for the third quarter of 2022 were $14.994 billion, an increase of $2.597 billion, or 21%, compared with $12.397 billion in the third quarter of 2021. The increase was due to favorable price realization and higher sales volume, partially offset by unfavorable currency impacts primarily related to the euro, Japanese yen and Australian dollar. The increase in sales volume was driven by the impact from changes in dealer inventories, higher sales of equipment to end users and higher services. Dealers increased inventories by $700 million during the third quarter of 2022, compared with a decrease of $300 million during the third quarter of 2021.

Sales were higher across the three primary segments.

Sales and Revenues by Segment

(Millions of dollars)

Third
Quarter
2021

Sales

Volume

Price

Realization

Currency

Inter-
Segment /
Other

Third
Quarter
2022

$

Change

%

Change

Construction Industries

$        5,255

$           423

$           781

$         (229)

$            46

$        6,276

$        1,021

19 %

Resource Industries

2,366

338

443

(59)

(1)

3,087

721

30 %

Energy & Transportation

5,077

618

409

(171)

253

6,186

1,109

22 %

All Other Segment

119

2

(2)

(16)

103

(16)

(13 %)

Corporate Items and Eliminations

(1,110)

16

2

(282)

(1,374)

(264)

Machinery, Energy & Transportation

11,707

1,397

1,635

(461)

14,278

2,571

22 %

Financial Products Segment

762

57

819

57

7 %

Corporate Items and Eliminations

(72)

(31)

(103)

(31)

Financial Products Revenues

690

26

716

26

4 %

Consolidated Sales and Revenues

$       12,397

$        1,397

$        1,635

$         (461)

$            26

$       14,994

$        2,597

21 %

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

Third Quarter 2022

Construction Industries

$   3,106

29 %

$     799

51 %

$   1,247

1 %

$   1,084

1 %

$   6,236

19 %

$       40

767 %

$   6,276

19 %

Resource Industries

1,122

66 %

472

13 %

526

15 %

893

20 %

3,013

32 %

74

(1 %)

3,087

30 %

Energy & Transportation

2,422

26 %

468

42 %

1,280

12 %

827

11 %

4,997

21 %

1,189

27 %

6,186

22 %

All Other Segment

16

(11 %)

— %

4

33 %

15

7 %

35

— %

68

(19 %)

103

(13 %)

Corporate Items and Eliminations

1

(4)

(3)

(1,371)

(1,374)

Machinery, Energy & Transportation

6,667

33 %

1,739

36 %

3,057

8 %

2,815

9 %

14,278

22 %

— %

14,278

22 %

Financial Products Segment

522

9 %

90

32 %

100

(5 %)

107

(4 %)

819

7 %

— %

819

7 %

Corporate Items and Eliminations

(54)

(20)

(12)

(17)

(103)

(103)

Financial Products Revenues

468

6 %

70

27 %

88

(8 %)

90

(8 %)

716

4 %

— %

716

4 %

Consolidated Sales and Revenues

$   7,135

31 %

$   1,809

36 %

$   3,145

7 %

$   2,905

9 %

$ 14,994

21 %

$        —

— %

$ 14,994

21 %

Third Quarter 2021

Construction Industries

$   2,417

$     528

$   1,240

$   1,076

$   5,261

$       (6)

$   5,255

Resource Industries

674

417

456

744

2,291

75

2,366

Energy & Transportation

1,924

329

1,144

744

4,141

936

5,077

All Other Segment

18

3

14

35

84

119

Corporate Items and Eliminations

(19)

(2)

(21)

(1,089)

(1,110)

Machinery, Energy & Transportation

5,014

1,274

2,843

2,576

11,707

11,707

Financial Products Segment

478

68

105

111

762

762

Corporate Items and Eliminations

(37)

(13)

(9)

(13)

(72)

(72)

Financial Products Revenues

441

55

96

98

690

690

Consolidated Sales and Revenues

$   5,455

$   1,329

$   2,939

$   2,674

$ 12,397

$        —

$ 12,397

Consolidated Operating Profit

Consolidated Operating Profit Comparison Third Quarter 2022 vs. Third Quarter 2021

To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar third-quarter 2022 earnings.  

The chart above graphically illustrates reasons for the change in consolidated operating profit between the third quarter of 2021 (at left) and the third quarter of 2022 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company’s Board of Directors and employees. The bar titled Other includes consolidating adjustments and Machinery, Energy & Transportation’s other operating (income) expenses.

Operating profit for the third quarter of 2022 was $2.425 billion, an increase of $761 million, or 46%, compared with $1.664 billion in the third quarter of 2021. The increase was primarily due to favorable price realization and higher sales volume, partially offset by higher manufacturing costs and higher selling, general and administrative (SG&A) and research and development (R&D) expenses. Unfavorable manufacturing costs largely reflected higher material costs, freight and the impact of manufacturing inefficiencies. SG&A/R&D expenses increased primarily due to investments aligned with the company’s strategy for profitable growth and higher short-term incentive compensation expense.

Profit by Segment

(Millions of dollars)

Third Quarter
2022

Third Quarter
2021

$

Change

%

 Change

Construction Industries

$                 1,209

$                    866

$                    343

40 %

Resource Industries

506

280

226

81 %

Energy & Transportation

935

706

229

32 %

All Other Segment

8

5

3

60 %

Corporate Items and Eliminations

(373)

(286)

(87)

Machinery, Energy & Transportation

2,285

1,571

714

45 %

Financial Products Segment

220

173

47

27 %

Corporate Items and Eliminations

30

(7)

37

Financial Products

250

166

84

51 %

Consolidating Adjustments

(110)

(73)

(37)

Consolidated Operating Profit

$                 2,425

$                 1,664

$                    761

46 %

Corporate Items and Eliminations included corporate-level expenses, timing differences (as some expenses are reported in segment profit on a cash basis), methodology differences between segment and consolidated external reporting (the company values segment inventories and cost of sales using a current cost methodology), certain restructuring costs and inter-segment eliminations.

Other Profit/Loss and Tax Items

Other income (expense) in the third quarter of 2022 was income of $242 million, compared with income of $225 million in the third quarter of 2021. The change was primarily driven by favorable impacts from foreign currency exchange and higher investment and interest income, partially offset by lower gains on marketable securities and lower pension and other postemployment benefit (OPEB) plan income.
The provision for income taxes for the third quarter of 2022 reflected an estimated annual global tax rate of approximately 23%, compared with 25% for the third quarter of 2021, excluding the discrete items discussed below. The comparative tax rate for full-year 2021 was 23%.

In the third quarter of 2022, the company reached a settlement with the U.S. Internal Revenue Service (IRS) that resolves all issues for tax years 2007 through 2016, without any penalties. The company’s settlement includes, among other issues, the resolution of disputed tax treatment of profits earned by Caterpillar SARL (CSARL) from certain parts transactions. The company vigorously contested the IRS’s application of the “substance-over-form” or “assignment-of-income” judicial doctrines and its proposed increases to tax and imposition of accuracy related penalties. The settlement does not include any increases to tax in the United States based on those judicial doctrines and does not include any penalties. The final tax assessed by the IRS for all issues under the settlement was $490 million for the ten-year period. This amount was primarily paid in the third quarter of 2022, and the associated estimated interest of $250 million is expected to be paid by the end of 2022. The settlement was within the total amount of gross unrecognized tax benefits for uncertain tax positions and enables us to avoid the costs and burdens of further disputes with the IRS. As a result of the settlement, the company recorded a discrete tax benefit of $41 million to reflect changes in estimates of prior years’ taxes and related interest, net of tax. The company is subject to the continuous examination of our income tax returns by the IRS, and tax years subsequent to 2016 are not yet under examination.

The provision for income taxes in third quarter of 2022 also included a $20 million benefit due to a decrease in the estimated annual tax rate, compared to $39 million in the third quarter of 2021. The company also recorded a discrete tax benefit of $36 million to reflect changes in estimates related to the prior year’s U.S. taxes in the third quarter of 2021.

CONSTRUCTION INDUSTRIES

(Millions of dollars)

Segment Sales

Third
Quarter 2021

Sales
Volume

Price
Realization

Currency

Inter-
Segment

Third
Quarter 2022

$

 Change

%

 Change

Total Sales

$       5,255

$          423

$        781

$         (229)

$               46

$          6,276

$    1,021

19 %

Sales by Geographic Region

Third
Quarter 2022

Third
Quarter 2021

$

Change

%

Change

North America

$       3,106

$       2,417

$        689

29 %

Latin America

799

528

271

51 %

EAME

1,247

1,240

7

1 %

Asia/Pacific

1,084

1,076

8

1 %

External Sales

6,236

5,261

975

19 %

Inter-segment

40

(6)

46

767 %

Total Sales

$       6,276

$       5,255

$     1,021

19 %

Segment Profit

Third
Quarter 2022

Third
Quarter 2021

 

Change

%

Change

Segment Profit

$       1,209

$          866

$        343

40 %

Segment Profit Margin

19.3 %

16.5 %

           2.8 pts   

Construction Industries’ total sales were $6.276 billion in the third quarter of 2022, an increase of $1.021 billion, or 19%, compared with $5.255 billion in the third quarter of 2021. The increase was due to favorable price realization and higher sales volume, partially offset by unfavorable currency impacts primarily related to the euro, Japanese yen and Australian dollar. The increase in sales volume was driven by the impact from changes in dealer inventories. Dealer inventory increased during the third quarter of 2022, compared with a decrease during the third quarter of 2021.

In North America, sales increased due to favorable price realization and higher sales volume. Higher sales volume was driven by the impact from changes in dealer inventories. Dealer inventory decreased during the third quarter of 2021, compared with an increase during the third quarter of 2022.
Sales increased in Latin America primarily due to higher sales volume and favorable price realization. Higher sales volume was driven by higher sales of equipment to end users and the impact from changes in dealer inventories. Dealer inventory increased more during the third quarter of 2022 than during the third quarter of 2021.
In EAME, sales were about flat. Unfavorable currency impacts, primarily related to the euro, were offset by favorable price realization.
Sales were about flat in Asia/Pacific. Favorable price realization was offset by unfavorable currency impacts, primarily related to the Japanese yen and Australian dollar.

Construction Industries’ profit was $1.209 billion in the third quarter of 2022, an increase of $343 million, or 40%, compared with $866 million in the third quarter of 2021. The increase was mainly due to favorable price realization and higher sales volume, partially offset by unfavorable manufacturing costs and higher SG&A/R&D expenses. Unfavorable manufacturing costs largely reflected higher material costs, freight and the impact of manufacturing inefficiencies. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives and higher short-term incentive compensation expense.

RESOURCE INDUSTRIES

(Millions of dollars)

Segment Sales

Third
Quarter 2021

Sales
Volume

Price
Realization

Currency

Inter-
Segment

Third
Quarter 2022

$

 Change

%

 Change

Total Sales

$       2,366

$          338

$        443

$          (59)

$               (1)

$          3,087

$      721

30 %

Sales by Geographic Region

Third
Quarter 2022

Third
Quarter 2021

$

Change

%

Change

North America

$       1,122

$          674

$        448

66 %

Latin America

472

417

55

13 %

EAME

526

456

70

15 %

Asia/Pacific

893

744

149

20 %

External Sales

3,013

2,291

722

32 %

Inter-segment

74

75

(1)

(1 %)

Total Sales

$       3,087

$       2,366

$        721

30 %

Segment Profit

Third
Quarter 2022

Third
Quarter 2021

 

Change

%

Change

Segment Profit

$          506

$          280

$        226

81 %

Segment Profit Margin

16.4 %

11.8 %

           4.6 pts  

Resource Industries’ total sales were $3.087 billion in the third quarter of 2022, an increase of $721 million, or 30%, compared with $2.366 billion in the third quarter of 2021. The increase was primarily due to favorable price realization and higher sales volume. The increase in sales volume was due to the impact of changes in dealer inventories, higher sales of aftermarket parts and higher sales of equipment to end users. Dealer inventory decreased during the third quarter of 2021, compared with an increase during the third quarter of 2022.

Resource Industries’ profit was $506 million in the third quarter of 2022, an increase of $226 million, or 81%, compared with $280 million in the third quarter of 2021. The increase was mainly due to favorable price realization and higher sales volume, partially offset by unfavorable manufacturing costs and higher SG&A/R&D expenses. Unfavorable manufacturing costs largely reflected higher material costs, freight and the impact of manufacturing inefficiencies. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives.

ENERGY & TRANSPORTATION

(Millions of dollars)

Segment Sales

Third
Quarter 2021

Sales
Volume

Price
Realization

Currency

Inter-
Segment

Third
Quarter 2022

$

 Change

%

 Change

Total Sales

$       5,077

$          618

$        409

$         (171)

$             253

$          6,186

$    1,109

22 %

Sales by Application

Third
Quarter 2022

Third
Quarter 2021

$

Change

%

Change

Oil and Gas

$       1,323

$       1,088

$        235

22 %

Power Generation

1,320

1,010

310

31 %

Industrial

1,158

948

210

22 %

Transportation

1,196

1,095

101

9 %

External Sales

4,997

4,141

856

21 %

Inter-segment

1,189

936

253

27 %

Total Sales

$       6,186

$       5,077

$     1,109

22 %

Segment Profit

Third
Quarter 2022

Third
Quarter 2021

 

Change

%

Change

Segment Profit

$          935

$          706

$        229

32 %

Segment Profit Margin

15.1 %

13.9 %

           1.2 pts  

Energy & Transportation’s total sales were $6.186 billion in the third quarter of 2022, an increase of $1.109 billion, or 22%, compared with $5.077 billion in the third quarter of 2021. Sales increased across all applications and inter-segment sales. The increase in sales was primarily due to higher sales volume and favorable price realization, partially offset by unfavorable currency impacts.

Oil and Gas – Sales increased due to higher sales of reciprocating engine aftermarket parts and engines used in gas compression and well servicing applications.
Power Generation – Sales increased in large reciprocating engines, primarily data center applications, and small reciprocating engines. Turbines and turbine-related services increased as well.
Industrial – Sales were up across all regions.
Transportation – Sales increased in reciprocating engine aftermarket parts and marine applications. International locomotive deliveries were also higher.

Energy & Transportation’s profit was $935 million in the third quarter of 2022, an increase of $229 million, or 32%, compared with $706 million in the third quarter of 2021. The increase was driven by favorable price realization and higher sales volume, partially offset by unfavorable manufacturing costs and higher SG&A/R&D expenses. Unfavorable manufacturing costs largely reflected higher material costs, freight and the impact of manufacturing inefficiencies. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives, higher labor-related costs and higher short-term incentive compensation expense.

FINANCIAL PRODUCTS SEGMENT

(Millions of dollars)

Revenues by Geographic Region

Third
Quarter 2022

Third
Quarter 2021

$

Change

%

Change

North America

$             522

$             478

$               44

9 %

Latin America

90

68

22

32 %

EAME

100

105

(5)

(5 %)

Asia/Pacific

107

111

(4)

(4 %)

Total Revenues

$             819

$             762

$               57

7 %

Segment Profit

Third
Quarter 2022

Third
Quarter 2021

 

Change

%

Change

Segment Profit

$             220

$             173

$               47

27 %

Financial Products’ segment revenues were $819 million in the third quarter of 2022, an increase of $57 million, or 7%, compared with $762 million in the third quarter of 2021. The increase was primarily due to higher average financing rates in North America and Latin America.

Financial Products’ segment profit was $220 million in the third quarter of 2022, an increase of $47 million, or 27%, compared with $173 million in the third quarter of 2021. The increase was mainly due to a favorable impact from a lower provision for credit losses at Cat Financial, partially offset by mark-to-market adjustments on derivative contracts.

At the end of the third quarter of 2022, past dues at Cat Financial were 2.00%, compared with 2.41% at the end of the third quarter of 2021. Past dues decreased across all our portfolio segments, with the exception of an increase in Latin America. Write-offs, net of recoveries, were $13 million for the third quarter of 2022, compared with $76 million for the third quarter of 2021. As of September 30, 2022, Cat Financial’s allowance for credit losses totaled $339 million, or 1.30% of finance receivables, compared with $376 million, or 1.41% of finance receivables, at June 30, 2022. The allowance for credit losses at year-end 2021 was $337 million, or 1.22% of finance receivables.

Corporate Items and Eliminations

Expense for corporate items and eliminations was $343 million in the third quarter of 2022, an increase of $50 million from the third quarter of 2021, primarily driven by increased expenses due to timing differences, partially offset by favorable impacts of segment reporting methodology differences and lower corporate costs.

Notes

i.         Glossary of terms is included on the Caterpillar website at https://investors.caterpillar.com/overview/default.aspx.ii.        Sales of equipment to end users is demonstrated by the company’s Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Thursday, October 27, 2022.iii.      Information on non-GAAP financial measures is included in the appendix on page 13.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 Thursday, October 27, 2022, to discuss its 2022 third-quarter results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx.

About CaterpillarWith 2021 sales and revenues of $51.0 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we’ve been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries and Energy & Transportation – and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/en/news/social-media.html.

Caterpillar’s latest financial results are also available online:

https://investors.caterpillar.com/overview/default.aspx

https://investors.caterpillar.com/financials/quarterly-results/default.aspx (live broadcast/replays of quarterly conference call)

Forward-Looking Statements

Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “forecast,” “target,” “guide,” “project,” “intend,” “could,” “should” or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.

Caterpillar’s actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) commodity price changes, material price increases, fluctuations in demand for our products or significant shortages of material; (iii) government monetary or fiscal policies; (iv) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (v) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; (vi) our ability to develop, produce and market quality products that meet our customers’ needs; (vii) the impact of the highly competitive environment in which we operate on our sales and pricing; (viii) information technology security threats and computer crime; (ix) inventory management decisions and sourcing practices of our dealers and our OEM customers; (x) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (xv) our Financial Products segment’s risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an increase in delinquencies, repossessions or net losses of Cat Financial’s customers; (xviii) currency fluctuations; (xix) our or Cat Financial’s compliance with financial and other restrictive covenants in debt agreements; (xx) increased pension plan funding obligations; (xxi) alleged or actual violations of trade or anti-corruption laws and regulations; (xxii) additional tax expense or exposure, including the impact of U.S. tax reform; (xxiii) significant legal proceedings, claims, lawsuits or government investigations; (xxiv) new regulations or changes in financial services regulations; (xxv) compliance with environmental laws and regulations; (xxvi) the duration and geographic spread of, business disruptions caused by, and the overall global economic impact of, the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar’s Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.

APPENDIX

NON-GAAP FINANCIAL MEASURES

The following definitions are provided for the non-GAAP financial measures. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures.

The company believes it is important to separately quantify the profit impact of one significant item in order for the company’s results to be meaningful to readers. This item consists of (i) restructuring costs, which were incurred to generate longer-term benefits. The company does not consider this item indicative of earnings from ongoing business activities and believes the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company’s period-over-period results. The company intends to discuss adjusted profit per share for the fourth quarter and full-year 2022, excluding mark-to-market gains or losses for remeasurement of pension and other postemployment benefit plans along with any other discrete items.

Reconciliations of adjusted results to the most directly comparable GAAP measure are as follows:

(Dollars in millions except per share data)

Operating
Profit

Operating
Profit
Margin

Profit
Before
Taxes

Provision
(Benefit) for
Income
Taxes

Effective
Tax Rate

Profit

Profit per
Share

Three Months Ended September 30, 2022 – U.S. GAAP

$        2,425

16.2 %

$        2,558

$          527

20.6 %

$        2,041

$         3.87

Restructuring costs

49

0.3 %

49

9

18.4 %

40

$         0.08

Three Months Ended September 30, 2022 – Adjusted

$        2,474

16.5 %

$        2,607

$          536

20.6 %

$        2,081

$         3.95

Three Months Ended September 30, 2021 – U.S. GAAP

$        1,664

13.4 %

$        1,775

$          368

20.7 %

$        1,426

$         2.60

Restructuring costs

35

0.3 %

35

6

15.0 %

29

$         0.06

Three Months Ended September 30, 2021 – Adjusted

$        1,699

13.7 %

$        1,810

$          374

20.7 %

$        1,455

$         2.66

Supplemental Consolidating Data

The company is providing supplemental consolidating data for the purpose of additional analysis. The data has been grouped as follows:

Consolidated – Caterpillar Inc. and its subsidiaries.

Machinery, Energy & Transportation (ME&T) – The company defines ME&T as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. ME&T’s information relates to the design, manufacturing and marketing of its products.

Financial Products – The company defines Financial Products as it is presented in the supplemental data as its finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products’ information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment.

Consolidating Adjustments – Eliminations of transactions between ME&T and Financial Products.

The nature of the ME&T and Financial Products businesses is different, especially with regard to the financial position and cash flow items. Caterpillar management utilizes this presentation internally to highlight these differences. The company believes this presentation will assist readers in understanding its business.

Pages 14 to 24 reconcile ME&T and Financial Products to Caterpillar Inc. consolidated financial information.

Caterpillar Inc.Condensed Consolidated Statement of Results of Operations(Unaudited)(Dollars in millions except per share data)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2022

2021

2022

2021

Sales and revenues:

  Sales of Machinery, Energy & Transportation

$       14,278

$      11,707

$       40,703

$     35,091

  Revenues of Financial Products

716

690

2,127

2,082

  Total sales and revenues

14,994

12,397

42,830

37,173

Operating costs:

  Cost of goods sold

10,202

8,617

29,736

25,510

  Selling, general and administrative expenses

1,401

1,340

4,172

3,943

  Research and development expenses

476

427

1,413

1,247

  Interest expense of Financial Products

151

111

377

352

  Other operating (income) expenses

339

238

908

854

  Total operating costs

12,569

10,733

36,606

31,906

Operating profit

2,425

1,664

6,224

5,267

  Interest expense excluding Financial Products

109

114

326

376

  Other income (expense)

242

225

755

751

Consolidated profit before taxes

2,558

1,775

6,653

5,642

  Provision (benefit) for income taxes

527

368

1,423

1,313

  Profit of consolidated companies

2,031

1,407

5,230

4,329

  Equity in profit (loss) of unconsolidated affiliated companies

9

21

20

44

Profit of consolidated and affiliated companies

2,040

1,428

5,250

4,373

Less: Profit (loss) attributable to noncontrolling interests

(1)

2

(1)

4

Profit 1

$         2,041

$        1,426

$         5,251

$       4,369

Profit per common share

$          3.89

$          2.62

$          9.91

$         8.00

Profit per common share — diluted 2

$          3.87

$          2.60

$          9.85

$         7.94

Weighted-average common shares outstanding (millions)

– Basic

525.0

544.0

530.1

545.8

– Diluted 2

527.6

547.6

533.2

550.2

1

Profit attributable to common shareholders.

2

Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

Caterpillar Inc.
Condensed Consolidated Statement of Financial Position(Unaudited)(Millions of dollars)

September 30,
2022

December 31,
2021

Assets

Current assets:

Cash and cash equivalents

$                     6,346

$                     9,254

Receivables – trade and other

8,158

8,477

Receivables – finance

8,918

8,898

Prepaid expenses and other current assets

2,295

2,788

Inventories

16,860

14,038

Total current assets

42,577

43,455

Property, plant and equipment – net

11,643

12,090

Long-term receivables – trade and other

1,278

1,204

Long-term receivables – finance

11,859

12,707

Noncurrent deferred and refundable income taxes

2,218

1,840

Intangible assets

806

1,042

Goodwill

6,092

6,324

Other assets

4,434

4,131

Total assets

$                   80,907

$                   82,793

Liabilities

Current liabilities:

Short-term borrowings:

— Machinery, Energy & Transportation

$                            3

$                            9

— Financial Products

4,199

5,395

Accounts payable

8,260

8,154

Accrued expenses

4,013

3,757

Accrued wages, salaries and employee benefits

2,204

2,242

Customer advances

1,831

1,087

Dividends payable

595

Other current liabilities

2,878

2,256

Long-term debt due within one year:

— Machinery, Energy & Transportation

120

45

— Financial Products

6,694

6,307

Total current liabilities

30,202

29,847

Long-term debt due after one year:

— Machinery, Energy & Transportation

9,479

9,746

— Financial Products

16,030

16,287

Liability for postemployment benefits

5,038

5,592

Other liabilities

4,536

4,805

Total liabilities

65,285

66,277

Shareholders’ equity

Common stock

6,523

6,398

Treasury stock

(30,883)

(27,643)

Profit employed in the business

43,304

39,282

Accumulated other comprehensive income (loss)

(3,353)

(1,553)

Noncontrolling interests

31

32

Total shareholders’ equity

15,622

16,516

Total liabilities and shareholders’ equity

$                   80,907

$                   82,793

Caterpillar Inc.Condensed Consolidated Statement of Cash Flow(Unaudited)(Millions of dollars)

Nine Months Ended
September 30,

2022

2021

Cash flow from operating activities:

Profit of consolidated and affiliated companies

$            5,250

$           4,373

Adjustments for non-cash items:

Depreciation and amortization

1,661

1,766

Provision (benefit) for deferred income taxes

(349)

(321)

Other

132

102

Changes in assets and liabilities, net of acquisitions and divestitures:

Receivables – trade and other

365

(326)

Inventories

(3,088)

(2,195)

Accounts payable

786

1,232

Accrued expenses

70

46

Accrued wages, salaries and employee benefits

15

934

Customer advances

751

39

Other assets – net

57

138

Other liabilities – net

(623)

(2)

Net cash provided by (used for) operating activities

5,027

5,786

Cash flow from investing activities:

Capital expenditures – excluding equipment leased to others

(868)

(673)

Expenditures for equipment leased to others

(1,023)

(1,014)

Proceeds from disposals of leased assets and property, plant and equipment

666

877

Additions to finance receivables

(9,914)

(9,603)

Collections of finance receivables

9,738

9,221

Proceeds from sale of finance receivables

50

44

Investments and acquisitions (net of cash acquired)

(44)

(449)

Proceeds from sale of businesses and investments (net of cash sold)

1

23

Proceeds from sale of securities

2,080

424

Investments in securities

(2,399)

(934)

Other – net

15

(8)

Net cash provided by (used for) investing activities

(1,698)

(2,092)

Cash flow from financing activities:

Dividends paid

(1,820)

(1,733)

Common stock issued, including treasury shares reissued

2

122

Common shares repurchased

(3,309)

(1,622)

Proceeds from debt issued (original maturities greater than three months)

5,570

6,931

Payments on debt (original maturities greater than three months)

(5,289)

(8,620)

Short-term borrowings – net (original maturities three months or less)

(1,311)

1,324

Other – net

(1)

(4)

Net cash provided by (used for) financing activities

(6,158)

(3,602)

Effect of exchange rate changes on cash

(79)

(9)

Increase (decrease) in cash, cash equivalents and restricted cash

(2,908)

83

Cash, cash equivalents and restricted cash at beginning of period

9,263

9,366

Cash, cash equivalents and restricted cash at end of period

$            6,355

$           9,449

Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less.

Caterpillar Inc.Supplemental Data for Results of OperationsFor the Three Months Ended September 30, 2022(Unaudited)(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery,
Energy &
Transportation

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Energy & Transportation

$          14,278

$                14,278

$                —

$                 —

Revenues of Financial Products

716

852

(136)

1

Total sales and revenues

14,994

14,278

852

(136)

Operating costs:

Cost of goods sold

10,202

10,203

(1)

2

Selling, general and administrative expenses

1,401

1,271

136

(6)

2

Research and development expenses

476

476

Interest expense of Financial Products

151

151

Other operating (income) expenses

339

43

315

(19)

2

Total operating costs

12,569

11,993

602

(26)

Operating profit

2,425

2,285

250

(110)

Interest expense excluding Financial Products

109

110

(1)

3

Other income (expense)

242

160

(27)

109

4

Consolidated profit before taxes

2,558

2,335

223

Provision (benefit) for income taxes

527

464

63

Profit of consolidated companies

2,031

1,871

160

Equity in profit (loss) of unconsolidated affiliated companies

9

11

(2)

5

Profit of consolidated and affiliated companies

2,040

1,882

160

(2)

Less: Profit (loss) attributable to noncontrolling interests

(1)

(1)

2

(2)

6

Profit 7

$            2,041

$                  1,883

$              158

$                 —

1

Elimination of Financial Products’ revenues earned from ME&T.

2

Elimination of net expenses recorded by ME&T paid to Financial Products.

3

Elimination of interest expense recorded between Financial Products and ME&T.

4

Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

5

Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries.

6

Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.

7

Profit attributable to common shareholders.

Caterpillar Inc.Supplemental Data for Results of OperationsFor the Three Months Ended September 30, 2021(Unaudited)(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery,
Energy &
Transportation

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Energy & Transportation

$          11,707

$              11,707

$                —

$                 —

Revenues of Financial Products

690

787

(97)

1

Total sales and revenues

12,397

11,707

787

(97)

Operating costs:

Cost of goods sold

8,617

8,618

(1)

2

Selling, general and administrative expenses

1,340

1,147

200

(7)

2

Research and development expenses

427

427

Interest expense of Financial Products

111

111

Other operating (income) expenses

238

(56)

310

(16)

2

Total operating costs

10,733

10,136

621

(24)

Operating profit

1,664

1,571

166

(73)

Interest expense excluding Financial Products

114

114

Other income (expense)

225

143

9

73

3

Consolidated profit before taxes

1,775

1,600

175

Provision (benefit) for income taxes

368

331

37

Profit of consolidated companies

1,407

1,269

138

Equity in profit (loss) of unconsolidated affiliated companies

21

23

(2)

4

Profit of consolidated and affiliated companies

1,428

1,292

138

(2)

Less: Profit (loss) attributable to noncontrolling interests

2

1

3

(2)

5

Profit 6

$            1,426

$                1,291

$              135

$                 —

1

Elimination of Financial Products’ revenues earned from ME&T.

2

Elimination of net expenses recorded by ME&T paid to Financial Products.

3

Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

4

Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries.

5

Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.

6

Profit attributable to common shareholders.

Caterpillar Inc.Supplemental Data for Results of OperationsFor the Nine Months Ended September 30, 2022(Unaudited)(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery,
Energy &
Transportation

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Energy & Transportation

$          40,703

$                40,703

$                —

$                 —

Revenues of Financial Products

2,127

2,493

(366)

1

Total sales and revenues

42,830

40,703

2,493

(366)

Operating costs:

Cost of goods sold

29,736

29,741

(5)

2

Selling, general and administrative expenses

4,172

3,714

475

(17)

2

Research and development expenses

1,413

1,413

Interest expense of Financial Products

377

377

Other operating (income) expenses

908

31

936

(59)

2

Total operating costs

36,606

34,899

1,788

(81)

Operating profit

6,224

5,804

705

(285)

Interest expense excluding Financial Products

326

327

(1)

3

Other income (expense)

755

497

(26)

284

4

Consolidated profit before taxes

6,653

5,974

679

Provision (benefit) for income taxes

1,423

1,250

173

Profit of consolidated companies

5,230

4,724

506

Equity in profit (loss) of unconsolidated affiliated companies

20

26

(6)

5

Profit of consolidated and affiliated companies

5,250

4,750

506

(6)

Less: Profit (loss) attributable to noncontrolling interests

(1)

(1)

6

(6)

6

Profit 7

$            5,251

$                  4,751

$              500

$                 —

1

Elimination of Financial Products’ revenues earned from ME&T.

2

Elimination of net expenses recorded by ME&T paid to Financial Products.

3

Elimination of interest expense recorded between Financial Products and ME&T.

4

Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

5

Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries.

6

Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.

7

Profit attributable to common shareholders.

Caterpillar Inc.Supplemental Data for Results of OperationsFor the Nine Months Ended September 30, 2021(Unaudited)(Millions of dollars)

 

Supplemental Consolidating Data

Consolidated

Machinery,
Energy &
Transportation

Financial

Products

Consolidating

Adjustments

Sales and revenues:

Sales of Machinery, Energy & Transportation

$          35,091

$                35,091

$                —

$                 —

Revenues of Financial Products

2,082

2,371

(289)

1

Total sales and revenues

37,173

35,091

2,371

(289)

Operating costs:

Cost of goods sold

25,510

25,515

(5)

2

Selling, general and administrative expenses

3,943

3,471

483

(11)

2

Research and development expenses

1,247

1,247

Interest expense of Financial Products

352

352

Other operating (income) expenses

854

(30)

931

(47)

2

Total operating costs

31,906

30,203

1,766

(63)

Operating profit

5,267

4,888

605

(226)

Interest expense excluding Financial Products

376

376

Other income (expense)

751

819

56

(124)

3

Consolidated profit before taxes

5,642

5,331

661

(350)

Provision (benefit) for income taxes

1,313

1,158

155

Profit of consolidated companies

4,329

4,173

506

(350)

Equity in profit (loss) of unconsolidated affiliated companies

44

52

(8)

4

Profit of consolidated and affiliated companies

4,373

4,225

506

(358)

Less: Profit (loss) attributable to noncontrolling interests

4

3

9

(8)

5

Profit 6

$            4,369

$                  4,222

$              497

$              (350)

1

Elimination of Financial Products’ revenues earned from ME&T.

2

Elimination of net expenses recorded by ME&T paid to Financial Products.

3

Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.

4

Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries.

5

Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.

6

Profit attributable to common shareholders.

Caterpillar Inc.Supplemental Data for Financial PositionAt September 30, 2022(Unaudited)(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery,

Energy &

Transportation

Financial

Products

Consolidating

Adjustments

Assets

Current assets:

Cash and cash equivalents

$             6,346

$                 5,403

$               943

$                 —

Receivables – trade and other

8,158

3,134

652

4,372

1,2

Receivables – finance

8,918

13,446

(4,528)

2

Prepaid expenses and other current assets

2,295

2,013

316

(34)

3

Inventories

16,860

16,860

Total current assets

42,577

27,410

15,357

(190)

Property, plant and equipment – net

11,643

7,810

3,833

Long-term receivables – trade and other

1,278

319

512

447

1,2

Long-term receivables – finance

11,859

12,338

(479)

2

Noncurrent deferred and refundable income taxes

2,218

2,745

106

(633)

4

Intangible assets

806

806

Goodwill

6,092

6,092

Other assets

4,434

3,663

1,946

(1,175)

5

Total assets

$           80,907

$               48,845

$           34,092

$            (2,030)

Liabilities

Current liabilities:

Short-term borrowings

$             4,202

$                       3

$             4,199

$                 —

Accounts payable

8,260

8,149

267

(156)

6

Accrued expenses

4,013

3,622

391

Accrued wages, salaries and employee benefits

2,204

2,160

44

Customer advances

1,831

1,831

Other current liabilities

2,878

2,126

807

(55)

4,7

Long-term debt due within one year

6,814

120

6,694

Total current liabilities

30,202

18,011

12,402

(211)

Long-term debt due after one year

25,509

9,511

16,030

(32)

8

Liability for postemployment benefits

5,038

5,038

Other liabilities

4,536

3,659

1,565

(688)

4

Total liabilities

65,285

36,219

29,997

(931)

Shareholders’ equity

Common stock

6,523

6,523

905

(905)

9

Treasury stock

(30,883)

(30,883)

Profit employed in the business

43,304

38,898

4,395

11

9

Accumulated other comprehensive income (loss)

(3,353)

(1,946)

(1,407)

Noncontrolling interests

31

34

202

(205)

9

Total shareholders’ equity

15,622

12,626

4,095

(1,099)

Total liabilities and shareholders’ equity

$           80,907

$               48,845

$           34,092

$            (2,030)

1

Elimination of receivables between ME&T and Financial Products.

2

Reclassification of ME&T’s trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables.

3

Elimination of ME&T’s insurance premiums that are prepaid to Financial Products.

4

Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.

5

Elimination of other intercompany assets between ME&T and Financial Products.

6

Elimination of payables between ME&T and Financial Products.

7

Elimination of prepaid insurance in Financial Products’ other liabilities.

8

Elimination of debt between ME&T and Financial Products.

9

Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries.

Caterpillar Inc.Supplemental Data for Financial PositionAt December 31, 2021(Unaudited)(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery,

Energy &

Transportation

Financial

Products

Consolidating

Adjustments

Assets

Current assets:

Cash and cash equivalents

$             9,254

$              8,428

$               826

$                   —

Receivables – trade and other

8,477

3,279

435

4,763

1,2

Receivables – finance

8,898

13,828

(4,930)

2

Prepaid expenses and other current assets

2,788

2,567

358

(137)

3

Inventories

14,038

14,038

Total current assets

43,455

28,312

15,447

(304)

Property, plant and equipment – net

12,090

8,172

3,918

Long-term receivables – trade and other

1,204

375

204

625

1,2

Long-term receivables – finance

12,707

13,358

(651)

2

Noncurrent deferred and refundable income taxes

1,840

2,396

105

(661)

4

Intangible assets

1,042

1,042

Goodwill

6,324

6,324

Other assets

4,131

3,388

1,952

(1,209)

5

Total assets

$           82,793

$             50,009

$           34,984

$             (2,200)

Liabilities

Current liabilities:

Short-term borrowings

$             5,404

$                    9

$            5,395

$                   —

Accounts payable

8,154

8,079

242

(167)

6

Accrued expenses

3,757

3,385

372

Accrued wages, salaries and employee benefits

2,242

2,186

56

Customer advances

1,087

1,086

1

Dividends payable

595

595

Other current liabilities

2,256

1,773

642

(159)

4,7

Long-term debt due within one year

6,352

45

6,307

Total current liabilities

29,847

17,158

13,015

(326)

Long-term debt due after one year

26,033

9,772

16,287

(26)

8

Liability for postemployment benefits

5,592

5,592

Other liabilities

4,805

4,106

1,425

(726)

4

Total liabilities

66,277

36,628

30,727

(1,078)

Shareholders’ equity

Common stock

6,398

6,398

919

(919)

9

Treasury stock

(27,643)

(27,643)

Profit employed in the business

39,282

35,390

3,881

11

9

Accumulated other comprehensive income (loss)

(1,553)

(799)

(754)

Noncontrolling interests

32

35

211

(214)

9

Total shareholders’ equity

16,516

13,381

4,257

(1,122)

Total liabilities and shareholders’ equity

$           82,793

$             50,009

$           34,984

$             (2,200)

1

Elimination of receivables between ME&T and Financial Products.

2

Reclassification of ME&T’s trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables.

3

Elimination of ME&T’s insurance premiums that are prepaid to Financial Products.

4

Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.

5

Elimination of other intercompany assets between ME&T and Financial Products.

6

Elimination of payables between ME&T and Financial Products.

7

Elimination of prepaid insurance in Financial Products’ other liabilities.

8

Elimination of debt between ME&T and Financial Products.

9

Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries.

Caterpillar Inc.Supplemental Data for Cash FlowFor the Nine Months Ended September 30, 2022(Unaudited)(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery,
Energy &
Transportation

Financial

Products

Consolidating

Adjustments

Cash flow from operating activities:

Profit of consolidated and affiliated companies

$              5,250

$              4,750

$                506

$                  (6)

1

Adjustments for non-cash items:

Depreciation and amortization

1,661

1,072

589

Provision (benefit) for deferred income taxes

(349)

(294)

(55)

Other

132

(83)

(123)

338

2

Changes in assets and liabilities, net of acquisitions and divestitures:

Receivables – trade and other

365

97

21

247

2,3

Inventories

(3,088)

(3,074)

(14)

2

Accounts payable

786

701

74

11

2

Accrued expenses

70

28

42

Accrued wages, salaries and employee benefits

15

27

(12)

Customer advances

751

752

(1)

Other assets – net

57

128

(28)

(43)

2

Other liabilities – net

(623)

(913)

239

51

2

Net cash provided by (used for) operating activities

5,027

3,191

1,252

584

Cash flow from investing activities:

Capital expenditures – excluding equipment leased to others

(868)

(860)

(10)

2

2

Expenditures for equipment leased to others

(1,023)

(20)

(1,024)

21

2

Proceeds from disposals of leased assets and property, plant and equipment

666

63

612

(9)

2

Additions to finance receivables

(9,914)

(10,584)

670

3

Collections of finance receivables

9,738

10,328

(590)

3

Net intercompany purchased receivables

678

(678)

3

Proceeds from sale of finance receivables

50

50

Net intercompany borrowings

5

(5)

4

Investments and acquisitions (net of cash acquired)

(44)

(44)

Proceeds from sale of businesses and investments (net of cash sold)

1

1

Proceeds from sale of securities

2,080

1,820

260

Investments in securities

(2,399)

(1,925)

(474)

Other – net

15

84

(69)

Net cash provided by (used for) investing activities

(1,698)

(881)

(228)

(589)

Cash flow from financing activities:

Dividends paid

(1,820)

(1,820)

Common stock issued, including treasury shares reissued

2

2

Common shares repurchased

(3,309)

(3,309)

Net intercompany borrowings

(5)

5

4

Proceeds from debt issued > 90 days

5,570

5,570

Payments on debt > 90 days

(5,289)

(20)

(5,269)

Short-term borrowings – net < 90 days

(1,311)

(138)

(1,173)

Other – net

(1)

(1)

Net cash provided by (used for) financing activities

(6,158)

(5,291)

(872)

5

Effect of exchange rate changes on cash

(79)

(42)

(37)

Increase (decrease) in cash, cash equivalents and restricted cash

(2,908)

(3,023)

115

Cash, cash equivalents and restricted cash at beginning of period

9,263

8,433

830

Cash, cash equivalents and restricted cash at end of period

$              6,355

$              5,410

$                945

$                  —

1

Elimination of equity profit earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries.

2

Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.

3

Reclassification of Financial Products’ cash flow activity from investing to operating for receivables that arose from the sale of inventory.

4

Elimination of net proceeds and payments to/from ME&T and Financial Products.

Caterpillar Inc.Supplemental Data for Cash FlowFor the Nine Months Ended September 30, 2021(Unaudited)(Millions of dollars)

Supplemental Consolidating Data

Consolidated

Machinery,
Energy &
Transportation

Financial

Products

Consolidating

Adjustments

Cash flow from operating activities:

Profit of consolidated and affiliated companies

$              4,373

$              4,225

$                506

$               (358)

1,5

Adjustments for non-cash items:

Depreciation and amortization

1,766

1,162

604

Provision (benefit) for deferred income taxes

(321)

(255)

(66)

Other

102

104

(135)

133

2

Changes in assets and liabilities, net of acquisitions and divestitures:

Receivables – trade and other

(326)

(338)

40

(28)

2,3

Inventories

(2,195)

(2,194)

(1)

2

Accounts payable

1,232

1,194

28

10

2

Accrued expenses

46

117

(71)

Accrued wages, salaries and employee benefits

934

905

29

Customer advances

39

39

Other assets – net

138

133

24

(19)

2

Other liabilities – net

(2)

(193)

144

47

2

Net cash provided by (used for) operating activities

5,786

4,899

1,103

(216)

Cash flow from investing activities:

Capital expenditures – excluding equipment leased to others

(673)

(670)

(11)

8

2

Expenditures for equipment leased to others

(1,014)

(23)

(997)

6

2

Proceeds from disposals of leased assets and property, plant and equipment

877

71

818

(12)

2

Additions to finance receivables

(9,603)

(10,292)

689

3

Collections of finance receivables

9,221

9,946

(725)

3

Net intercompany purchased receivables

100

(100)

3

Proceeds from sale of finance receivables

44

44

Net intercompany borrowings

1,000

3

(1,003)

4

Investments and acquisitions (net of cash acquired)

(449)

(449)

Proceeds from sale of businesses and investments (net of cash sold)

23

23

Proceeds from sale of securities

424

44

380

Investments in securities

(934)

(542)

(392)

Other – net

(8)

59

(67)

Net cash provided by (used for) investing activities

(2,092)

(487)

(468)

(1,137)

Cash flow from financing activities:

Dividends paid

(1,733)

(1,733)

(350)

350

5

Common stock issued, including treasury shares reissued

122

122

Common shares repurchased

(1,622)

(1,622)

Net intercompany borrowings

(3)

(1,000)

1,003

4

Proceeds from debt issued > 90 days

6,931

494

6,437

Payments on debt > 90 days

(8,620)

(1,910)

(6,710)

Short-term borrowings – net < 90 days

1,324

(10)

1,334

Other – net

(4)

(4)

Net cash provided by (used for) financing activities

(3,602)

(4,666)

(289)

1,353

Effect of exchange rate changes on cash

(9)

(14)

5

Increase (decrease) in cash, cash equivalents and restricted cash

83

(268)

351

Cash, cash equivalents and restricted cash at beginning of period

9,366

8,822

544

Cash, cash equivalents and restricted cash at end of period

$              9,449

$              8,554

$                895

$                  —

1

Elimination of equity profit earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries.

2

Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.

3

Reclassification of Financial Products’ cash flow activity from investing to operating for receivables that arose from the sale of inventory.

4

Elimination of net proceeds and payments to/from ME&T and Financial Products.

5

Elimination of dividend activity between Financial Products and ME&T.

SOURCE Caterpillar Inc.


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