Caterpillar Reports Fourth-Quarter and Full-Year 2019 Results; Provides Outlook for 2020
DEERFIELD, Ill., Jan. 31, 2020 /PRNewswire/ --
-- Fourth-quarter sales and revenues down 8%; full-year sales and revenues
decreased 2%
-- Strong operating cash flow; ended the year with $8.3 billion of
enterprise cash
-- Returned $1.3 billion to shareholders in the fourth quarter through
dividends and share repurchases; returned about $6.2 billion in 2019
-- 2020 profit per share outlook range of $8.50 to $10.00
Fourth Quarter Full Year
($ in billions except profit per share) 2019 2018 2019 2018
Sales and Revenues $13.1 $14.3 $53.8 $54.7
---
Profit Per Share $1.97 $1.78 $10.74 $10.26
---
Adjusted Profit Per Share $2.63 $2.55 $11.06 $11.22
Caterpillar Inc. (NYSE: CAT) today announced fourth-quarter and full-year results for 2019.
Sales and revenues for the fourth quarter of 2019 were $13.1 billion, an 8% decrease compared with $14.3 billion in the fourth quarter of 2018. Fourth-quarter 2019 profit per share was $1.97, compared with $1.78 profit per share in the fourth quarter of 2018. Adjusted profit per share in the fourth quarter of 2019 was $2.63, compared with fourth-quarter 2018 adjusted profit per share of $2.55.
"In the fourth quarter, strong cost control more than offset lower-than-expected end-user demand," said Jim Umpleby, Caterpillar Chairman and CEO. "Our margin performance reflected our diligent focus on maintaining a flexible and competitive cost structure."
Full-year sales and revenues in 2019 were $53.8 billion, down 2% compared with $54.7 billion in 2018. Full-year profit was $10.74 per share in 2019, compared with profit of $10.26 per share in 2018. Adjusted profit per share in 2019 was $11.06, compared with adjusted profit per share of $11.22 in 2018.
"While sales declined modestly in 2019, we delivered an operating margin and free cash flow consistent with our long-term targets and continued to invest in services and expanded offerings," said Umpleby. "The team's focus on executing our strategy for profitable growth also allowed us to increase our dividend by 20% and return more than $6 billion in capital to shareholders through dividends and share repurchases."
Operating profit margin was 14.1% for the fourth quarter of 2019, compared with 13.1% for the fourth quarter of 2018. Operating profit margin was 15.4% for 2019, compared with 15.2% for 2018.
In 2019, adjusted profit per share excluded mark-to-market losses for remeasurement of pension and other postemployment benefit (OPEB) plans and a discrete tax benefit related to U.S. tax reform. In 2018, adjusted profit per share excluded mark-to-market losses for remeasurement of pension and OPEB plans, restructuring costs, the impact of U.S. tax reform and certain deferred tax valuation allowance adjustments.
For the full year of 2019, enterprise operating cash flow was $6.9 billion. Full-year 2019 ME&T operating cash flow was $4.9 billion after a discretionary pension contribution of $1.5 billion financed from proceeds of a debt issuance. In the fourth quarter of 2019, the company repurchased about $760 million of Caterpillar common stock and paid dividends of $568 million. During the year, the company repurchased $4.0 billion of Caterpillar common stock and paid dividends of $2.1 billion. After returning about $6.2 billion of capital to shareholders, the enterprise cash balance was $8.3 billion at the end of 2019, compared with $7.9 billion at the end of 2018.
2020 Outlook
The company expects 2020 profit to be in a range of $8.50 to $10.00 per share.
"We expect continued global economic uncertainty to pressure sales to users in 2020 and cause dealers to further reduce inventories," said Umpleby. "We have improved our lead times and remain prepared to respond quickly to any positive or negative changes in customer demand. We will continue to invest in services and expanded offerings to advance our strategy for long term profitable growth, while achieving our Investor Day targets."
The outlook does not include a mark-to-market gain or loss for remeasurement of pension and OPEB plans.
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues Comparison
Fourth Quarter 2019 vs. Fourth Quarter 2018
To access this chart, go to http://www.caterpillar.com/en/investors/quarterly-results.html for the downloadable version of Caterpillar fourth-quarter and full-year 2019 earnings.
The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the fourth quarter of 2018 (at left) and the fourth quarter of 2019 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company's Board of Directors and employees.
Total sales and revenues of $13.144 billion in the fourth quarter of 2019 decreased $1.198 billion, or 8%, compared with $14.342 billion in the fourth quarter of 2018. The decline was due to lower sales volume driven by the impact from changes in dealer inventories and lower end-user demand, primarily in Construction Industries and Resource Industries. Dealers decreased machine and engine inventories about $700 million during the fourth quarter of 2019, compared with an increase of about $200 million during the fourth quarter of 2018. Sales declined mainly in North America, along with decreases in Latin America and EAME.
Sales and Revenues by Segment
(Millions of dollars) Fourth Sales Price Currency Inter- Fourth
$ %
Quarter Realization Segment / Quarter Change
Volume Change
2018 Other 2019
---
Construction Industries $
5,705 $
(565) $
(86) $
(32) $
(2) $
5,020 $
(685) (12%)
Resource Industries 2,797 (430) 17 (22) 33 2,395 (402) (14%)
Energy & Transportation 6,287 (25) (27) (47) (239) 5,949 (338) (5%)
All Other Segment 129 (10) 24 143 14 11%
Corporate Items and Eliminations (1,288) (16) 1 (2) 184 (1,121) 167
Machinery, Energy & Transportation 13,630 (1,046) (95) (103) 12,386 (1,244) (9%)
Financial Products Segment 812 34 846 34 4%
Corporate Items and Eliminations (100) 12 (88) 12
Financial Products Revenues 712 46 758 46 6%
Consolidated Sales and Revenues $
14,342 $
(1,046) $
(95) $
(103) $
46 $
13,144 $
(1,198) (8%)
Sales and Revenues by Geographic Region
North America Latin America
EAME Asia/Pacific External Sales Inter-Segment Total Sales
and Revenues and Revenues
(Millions of dollars)
$ % Chg
$ % Chg
$ % Chg
$ % Chg
$ % Chg
$ % Chg
$ % Chg
---
Fourth Quarter 2019
---
Construction Industries $
2,249 (18%) $
409 9% $
850 (20%) $
1,475 -% $
4,983 (12%) $
37 (5%) $
5,020 (12%)
Resource Industries 834 (8%) 313 (33%) 526 (5%) 603 (23%) 2,276 (16%) 119 38% 2,395 (14%)
Energy & Transportation 2,287 (11%) 354 (18%) 1,578 5% 947 26% 5,166 (2%) 783 (23%) 5,949 (5%)
All Other Segment 2 (88%) -% 5 (17%) 22 47% 29 (26%) 114 27% 143 11%
Corporate Items and Eliminations (50) (5) (13) (68) (1,053) (1,121)
Machinery, Energy & Transportation 5,322 (14%) 1,076 (16%) 2,954 (6%) 3,034 -% 12,386 (9%) -% 12,386 (9%)
Financial Products Segment 554 2% 74 9% 102 21% 116 1% 846 4% -% 846 4%
Corporate Items and Eliminations (50) (14) (9) (15) (88) (88)
Financial Products Revenues 504 5% 60 3% 93 22% 101 2% 758 6% -% 758 6%
Consolidated Sales and Revenues $
5,826 (13%) $
1,136 (15%) $
3,047 (5%) $
3,135 -% $
13,144 (8%)
$ -% $
13,144 (8%)
Fourth Quarter 2018
---
Construction Industries $
2,749 $
374 $
1,063 $
1,480 $
5,666 $
39 $
5,705
Resource Industries 906 466 554 785 2,711 86 2,797
Energy & Transportation 2,569 434 1,509 753 5,265 1,022 6,287
All Other Segment 16 2 6 15 39 90 129
Corporate Items and Eliminations (47) 1 (3) (2) (51) (1,237) (1,288)
Machinery, Energy & Transportation 6,193 1,277 3,129 3,031 13,630 13,630
Financial Products Segment 545 68 84 115 812 812
Corporate Items and Eliminations (66) (10) (8) (16) (100) (100)
Financial Products Revenues 479 58 76 99 712 712
Consolidated Sales and Revenues $
6,672 $
1,335 $
3,205 $
3,130 $
14,342
$ $
14,342
Consolidated Operating Profit
Consolidated Operating Profit Comparison
Fourth Quarter 2019 vs. Fourth Quarter 2018
To access this chart, go to http://www.caterpillar.com/en/investors/quarterly-results.html for the downloadable version of Caterpillar fourth-quarter and full-year 2019 earnings.
The chart above graphically illustrates reasons for the change in consolidated operating profit between the fourth quarter of 2018 (at left) and the fourth quarter of 2019 (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 fourth quarter of 2019 was $1.850 billion, a decrease of $33 million, or 2%, compared with $1.883 billion in the fourth quarter of 2018. The decrease was primarily due to lower sales volume, mostly offset by lower selling, general and administrative (SG&A) and research and development (R&D) expenses and higher profit from Financial Products.
Lower SG&A/R&D expenses were mostly due to a reduction in short-term incentive compensation expense and timing of R&D expenses.
Financial Products' operating profit was higher, primarily due to lower provisions for credit losses related to the Cat Power Finance portfolio compared with the fourth quarter of 2018.
In addition, favorable manufacturing costs were mostly offset by unfavorable price realization. Manufacturing costs decreased primarily due to lower period manufacturing and material costs, partially offset by higher warranty expense. Period manufacturing costs declined mainly due to lower short-term incentive compensation and the favorable impact of restructuring and cost-reduction actions.
Profit (Loss) by Segment
(Millions of dollars) Fourth Quarter Fourth Quarter
$ %
2018
2019 Change Change
---
Construction Industries $
659 $
845 $
(186) (22)
%
Resource Industries 261 400 (139) (35)
%
Energy & Transportation 1,165 1,079 86 8
%
All Other Segment (11) (47) 36 77
%
Corporate Items and Eliminations (325) (375) 50
Machinery, Energy & 1,749 1,902 (153) (8)
Transportation
%
Financial Products Segment 210 29 181 624
%
Corporate Items and Eliminations (6) 54 (60)
Financial Products 204 83 121 146
%
Consolidating Adjustments (103) (102) (1)
Consolidated Operating Profit $
1,850 $
1,883 $
(33) (2)
%
Other Profit/Loss and Tax Items
-- Other income (expense) in the fourth quarter of 2019 was expense of $373
million, compared with expense of $417 million in the fourth quarter of
2018. The decrease in expense was due to the favorable impact of
commodity hedges, higher realized gains and lower unrealized losses on
marketable securities at Insurance Services, which were partially offset
by unfavorable pension and OPEB costs.
-- The provision for income taxes for the fourth quarter of 2019 reflected
an annual effective tax rate of approximately 25% and a discrete tax
benefit of $13 million, compared with approximately 24% and a net
discrete tax benefit of $17 million for the fourth quarter of 2018. The
increase from 2018 was largely driven by the application of U.S. tax
reform provisions to the earnings of certain non-U.S. subsidiaries,
which do not have a calendar fiscal year-end. These provisions did not
apply to these subsidiaries in 2018. The change from the third-quarter
2019 estimated annual tax rate of 26% to the annual effective tax rate
of approximately 25% resulted in a $54 million tax benefit in the fourth
quarter of 2019.
CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
Fourth Sales Price Currency Inter- Fourth
$ %
Quarter 2018 Volume Realization Segment
Quarter 2019 Change Change
Total Sales $
5,705 $
(565) $
(86) $
(32) $
(2) $
5,020 $
(685) (12)
%
Sales by Geographic Region
Fourth Fourth
$ %
Quarter 2019 Quarter 2018
Change Change
North America $
2,249 $
2,749 $
(500) (18)
%
Latin America 409 374 35 9
%
EAME 850 1,063 (213) (20)
%
Asia/Pacific 1,475 1,480 (5) %
External Sales 4,983 5,666 (683) (12)
%
Inter-segment 37 39 (2) (5)
%
Total Sales $
5,020 $
5,705 $
(685) (12)
%
Segment Profit
Fourth Fourth %
Quarter 2019 Quarter 2018
Change Change
Segment Profit $
659 $
845 $
(186) (22)
%
Segment Profit Margin 13.1 14.8
% % (1.7 pts)
Construction Industries' total sales were $5.020 billion in the fourth quarter of 2019, a decrease of $685 million, or 12%, compared with $5.705 billion in the fourth quarter of 2018. The decrease was due to lower sales volume, driven mostly by the impact from changes in dealer inventories. Dealers decreased inventories during the fourth quarter of 2019, compared with dealer inventories that were about flat during the fourth quarter of 2018. Unfavorable price realization also contributed to the decline in sales.
-- In North America, sales decreased due to lower demand driven by the
impact from changes in dealer inventories, while end-user demand was
about flat. Dealers decreased inventories during the fourth quarter of
2019, compared with an increase during the fourth quarter of 2018.
-- Sales were higher in Latin America. While construction activities
remained at low levels, the increase was driven by road and residential
construction activities.
-- In EAME, the sales decrease was primarily due to the impact from changes
in dealer inventories and lower end-user demand across most of the
region. Dealers decreased inventories more during the fourth quarter of
2019 than during the fourth quarter of 2018.
-- Sales in Asia/Pacific were about flat as unfavorable price realization
was mostly offset by a few countries' higher sales volume.
Construction Industries' profit was $659 million in the fourth quarter of 2019, a decrease of $186 million, or 22%, compared with $845 million in the fourth quarter of 2018. The decrease was primarily due to lower sales volume. In addition, favorable manufacturing costs were mostly offset by unfavorable price realization. Manufacturing costs decreased due to lower period manufacturing and material costs. Period manufacturing costs declined mainly due to the favorable impact of restructuring and cost-reduction actions as well as lower short-term incentive compensation.
RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
Fourth Sales Price Currency Inter- Fourth
$ %
Quarter 2018 Realization
Volume Segment Quarter 2019 Change Change
Total Sales $
2,797 $
(430) $
17 $
(22) $
33 $
2,395 $
(402) (14)
%
Sales by Geographic Region
Fourth Fourth
$ %
Quarter 2019 Quarter 2018
Change Change
North America $
834 $
906 $
(72) (8)
%
Latin America 313 466 (153) (33)
%
EAME 526 554 (28) (5)
%
Asia/Pacific 603 785 (182) (23)
%
External Sales 2,276 2,711 (435) (16)
%
Inter-segment 119 86 33 38
%
Total Sales $
2,395 $
2,797 $
(402) (14)
%
Segment Profit
Fourth Fourth %
Quarter 2019 Quarter 2018
Change Change
Segment Profit $
261 $
400 $
(139) (35)
%
Segment Profit Margin 10.9 14.3
% % (3.4 pts)
Resource Industries' total sales were $2.395 billion in the fourth quarter of 2019, a decrease of $402 million, or 14%, compared with $2.797 billion in the fourth quarter of 2018. The decrease was due to lower sales volume, driven by changes in dealer inventories and lower end-user demand. Dealers increased inventories during the fourth quarter of 2018, compared with a decrease during the fourth quarter of 2019. While commodity prices are generally supportive of reinvestment, the company continues to believe mining customers remained disciplined in their capital expenditures due to economic uncertainty, resulting in lower sales in the quarter. In addition, end-user demand decreased for equipment supporting non-residential construction.
Resource Industries' profit was $261 million in the fourth quarter of 2019, a decrease of $139 million, or 35%, compared with $400 million in the fourth quarter of 2018. The decrease was mainly due to lower sales volume, partially offset by lower SG&A/R&D expenses and favorable price realization. The decrease in SG&A/R&D expenses reflected a reduction in short-term incentive compensation expense and timing of R&D expenses.
ENERGY & TRANSPORTATION
(Millions of dollars)
Segment Sales
Fourth Sales Price Currency Inter- Fourth
$ %
Volume Realization Segment Quarter 2019
Quarter 2018 Change Change
Total Sales $
6,287 $
(25) $
(27) $
(47) $
(239) $
5,949 $
(338) (5)
%
Sales by Application
Fourth Fourth
$ %
Quarter 2019 Quarter 2018
Change Change
Oil and Gas $
1,523 $
1,719 $
(196) (11)
%
Power Generation 1,294 1,271 23 2
%
Industrial 908 902 6 1
%
Transportation 1,441 1,373 68 5
%
External Sales 5,166 5,265 (99) (2)
%
Inter-segment 783 1,022 (239) (23)
%
Total Sales $
5,949 $
6,287 $
(338) (5)
%
Segment Profit
Fourth Fourth %
Quarter 2019
Quarter 2018 Change Change
Segment Profit $
1,165 $
1,079 $
86 8
%
Segment Profit Margin 19.6 17.2
% % 2.4 pts
Energy & Transportation's total sales were $5.949 billion in the fourth quarter of 2019, a decrease of $338 million, or 5%, compared with $6.287 billion in the fourth quarter of 2018. Sales declined primarily due to lower inter-segment engine sales and unfavorable currency impacts.
-- Oil and Gas - Sales were lower mainly in North America. The sales
decline was largely due to lower demand for reciprocating engines used
in gas compression and lower turbine project deliveries.
-- Power Generation - Sales increased slightly primarily due to higher
deliveries for turbines in EAME.
-- Industrial - Sales were about flat as slightly higher sales in North
America were partially offset by lower sales in Latin America and EAME.
-- Transportation - Sales were higher mainly due to stronger marine demand
in EAME.
Energy & Transportation's profit was $1.165 billion in the fourth quarter of 2019, an increase of $86 million, or 8%, compared with $1.079 billion in the fourth quarter of 2018. The increase was mostly due to lower SG&A/R&D expenses, primarily due to a reduction in short-term incentive compensation expense and lower R&D project expenses. Lower manufacturing costs were mostly offset by lower sales volume.
FINANCIAL PRODUCTS SEGMENT
(Millions of dollars)
Revenues by Geographic Region
Fourth Fourth
$ %
Quarter 2018
Quarter 2019 Change Change
North America $
554 $
545 $
9 2
%
Latin America 74 68 6 9
%
EAME 102 84 18 21
%
Asia/Pacific 116 115 1 1
%
Total Revenues $
846 $
812 $
34 4
%
Segment Profit
Fourth Fourth %
Quarter 2019 Quarter 2018
Change Change
Segment Profit $
210 $
29 $
181 624
%
Financial Products' segment revenues were $846 million in the fourth quarter of 2019, an increase of $34 million, or 4%, from the fourth quarter of 2018. The increase was primarily due to a favorable impact from returned or repossessed equipment in Europe and higher average financing rates in North America.
Financial Products' segment profit was $210 million in the fourth quarter of 2019, compared with $29 million in the fourth quarter of 2018. Most of the increase was due to lower provision for credit losses at Cat Financial, driven by a lower allowance rate compared with 2018. The lower allowance rate was due to write-offs of accounts in 2019 that were reserved for in 2018, primarily in the Cat Power Finance portfolio. In addition, there was a favorable impact from equity securities in Insurance Services, as well as favorable impacts from an increase in net yield on average earning assets and returned or repossessed equipment. These favorable impacts were partially offset by higher SG&A expenses.
At the end of 2019, past dues at Cat Financial were 3.14%, compared with 3.55% at the end of 2018. Write-offs, net of recoveries, were $237 million for 2019, an increase from $189 million for 2018, primarily due to Mining, Caterpillar Power Finance and EAME, partially offset by a decrease in Latin America. The increase in Mining was due to a small number of customer balances written off in 2019, while the increases in Caterpillar Power Finance and EAME were concentrated in the marine portfolio and the Middle East, respectively. As of December 31, 2019, Cat Financial's allowance for credit losses totaled $424 million, or 1.50% of finance receivables, compared with $511 million, or 1.80% of finance receivables, at December 31, 2018.
Dealer Inventories and Order Backlog
Dealers decreased machine and engine inventories about $700 million during the fourth quarter of 2019, compared with an increase of about $200 million during the fourth quarter of 2018. The changes in dealer inventories mostly impacted sales in Construction Industries and Resource Industries. For the full year of 2019, dealer inventories increased about $800 million, compared with an increase of about $2.3 billion during 2018.
At the end of the fourth quarter of 2019, the order backlog was $13.7 billion, about $900 million lower than the third quarter of 2019, primarily in Energy & Transportation. The order backlog decreased across the three primary segments by about $2.9 billion since the end of 2018.
Notes
1. Glossary of terms is included on the Caterpillar website at
http://www.caterpillar.com/investors/.
2. Information on non-GAAP financial measures is included in the appendix on
page 12.
3. Some amounts within this report are rounded to the millions or billions
and may not add. In addition, the sum of the components reported across
periods may not equal the total amount reported year-to-date due to
rounding.
4. Caterpillar will conduct a teleconference and live webcast, with a slide
presentation, beginning at 7:30 a.m. Central Time on Friday, January 31,
2020, to discuss its 2019 fourth-quarter and full-year financial results.
The accompanying slides will be available before the webcast on the
Caterpillar website at
http://www.caterpillar.com/investors/events-and-presentations.
About Caterpillar
Since 1925, Caterpillar Inc. has been helping our customers build a better world - making sustainable progress possible and driving positive change on every continent. With 2019 sales and revenues of $53.8 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Services offered throughout the product life cycle, cutting-edge technology and decades of product expertise set Caterpillar apart, providing exceptional value to help our customers succeed. The company principally operates through three primary segments - Construction Industries, Resource Industries and Energy & Transportation - and provides financing and related services through its Financial Products segment. For more information, visit caterpillar.com. To connect on social media, visit caterpillar.com/social-media.
Caterpillar's latest financial results and outlook are also available online:
http://www.caterpillar.com/en/investors.html
http://www.caterpillar.com/en/investors/quarterly-results.html (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 including natural disasters; (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; and (xxvi) 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.
Adjusted Profit
The company believes it is important to separately quantify the profit impact of four significant items in order for the company's results to be meaningful to readers. These items consist of (i) pension and OPEB mark-to-market losses resulting from plan remeasurements, (ii) U.S. tax reform impact, (iii) restructuring costs in 2018, which were incurred to generate longer-term benefits and (iv) certain deferred tax valuation allowance adjustments. The company does not consider these items 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.
Reconciliations of adjusted profit before taxes to the most directly comparable GAAP measure, consolidated profit before taxes, are as follows:
Fourth Quarter Full Year
(Millions
of
dollars) 2019 2018 2019 2018
Profit
before
taxes $
1,365 $
1,367 $
7,812 $
7,822
Mark-
to-
market
losses 468 495 468 495
Restructuring
costs 93 386
Adjusted
profit
before
taxes $
1,833 $
1,955 $
8,280 $
8,703
Reconciliations of adjusted profit per share to the most directly comparable GAAP measure, diluted profit per share, are as follows:
Fourth Quarter
Full Year
2019 2018 2019 2018
Profit per share $
1.97 $
1.78 $
10.74 $
10.26
Per share mark-
to-market
losses(1) $
0.65 $
0.66 $
0.64 $
0.64
Per share U.S.
tax reform
impact
$ $
0.09 $
(0.31) $
(0.17)
Per share
restructuring
costs(2)
$ $
0.13
$ $
0.50
Per share
deferred tax
valuation
allowance
adjustment
$ $
(0.11)
$ $
(0.01)
Adjusted profit
per share $
2.63 $
2.55 $
11.06 $
11.22
(1) At statutory tax rates
(2) 2018 restructuring costs at
statutory tax rates. 2019
restructuring costs are not
material
Machinery, Energy & Transportation
Caterpillar defines Machinery, Energy & Transportation as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis. Machinery, Energy & Transportation information relates to the design, manufacture and marketing of Caterpillar products. Financial Products' information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment. The nature of these 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 also believes this presentation will assist readers in understanding Caterpillar's business. Pages 13-21 reconcile Machinery, Energy & Transportation with Financial Products on the equity basis 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
Twelve Months Ended
December 31,
December 31,
2019 2018 2019 2018
Sales and revenues:
Sales of Machinery, Energy
& Transportation $
12,386 $
13,630 $
50,755 $
51,822
Revenues of Financial
Products 758 712 3,045 2,900
Total sales and revenues 13,144 14,342 53,800 54,722
Operating costs:
Cost of goods sold 9,117 9,987 36,630 36,997
Selling, general and
administrative expenses 1,283 1,463 5,162 5,478
Research and development
expenses 386 466 1,693 1,850
Interest expense of
Financial Products 183 189 754 722
Other operating (income)
expenses 325 354 1,271 1,382
Total operating costs 11,294 12,459 45,510 46,429
Operating profit 1,850 1,883 8,290 8,293
Interest expense excluding
Financial Products 112 99 421 404
Other income (expense) (373) (417) (57) (67)
Consolidated profit before taxes 1,365 1,367 7,812 7,822
Provision (benefit) for
income taxes 276 321 1,746 1,698
Profit of consolidated
companies 1,089 1,046 6,066 6,124
Equity in profit (loss) of
unconsolidated affiliated
companies 8 3 28 24
Profit of consolidated and affiliated companies 1,097 1,049 6,094 6,148
Less: Profit (loss) attributable to noncontrolling interests (1) 1 1 1
Profit (1) $
1,098 $
1,048 $
6,093 $
6,147
Profit per common share $
2.00 $
1.80 $
10.85 $
10.39
Profit per common share - diluted (2) $
1.97 $
1.78 $
10.74 $
10.26
Weighted-average common shares
outstanding (millions)
-Basic 550.3 581.4 561.6 591.4
-Diluted
(2) 556.1 587.6 567.5 599.4
(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)
December 31, December 31
,
2019 2018
Assets
Current assets:
Cash and short-
term investments $
8,284 $
7,857
Receivables -
trade and other 8,568 8,802
Receivables -
finance 9,336 8,650
Prepaid expenses
and other current
assets 1,739 1,765
Inventories 11,266 11,529
Total current assets 39,193 38,603
Property, plant and
equipment - net 12,904 13,574
Long-term
receivables - trade
and other 1,193 1,161
Long-term
receivables -
finance 12,651 13,286
Noncurrent deferred
and refundable
income taxes 1,411 1,439
Intangible assets 1,565 1,897
Goodwill 6,196 6,217
Other assets 3,340 2,332
Total assets $
78,453 $
78,509
Liabilities
Current liabilities:
Short-term
borrowings:
--Machinery, Energy &
Transportation $
5
$
-- Financial Products 5,161 5,723
Accounts payable 5,957 7,051
Accrued expenses 3,750 3,573
Accrued wages,
salaries and
employee benefits 1,629 2,384
Customer advances 1,187 1,243
Dividends payable 567 495
Other current
liabilities 2,155 1,919
Long-term debt
due within one
year:
--Machinery, Energy &
Transportation 16 10
-- Financial Products 6,194 5,820
Total current
liabilities 26,621 28,218
Long-term debt due
after one year:
--Machinery, Energy &
Transportation 9,141 8,005
-- Financial Products 17,140 16,995
Liability for
postemployment
benefits 6,599 7,455
Other liabilities 4,323 3,756
Total liabilities 63,824 64,429
Shareholders' equity
Common stock 5,935 5,827
Treasury stock (24,217) (20,531)
Profit employed in
the business 34,437 30,427
Accumulated other
comprehensive income
(loss) (1,567) (1,684)
Noncontrolling
interests 41 41
Total shareholders' equity 14,629 14,080
Total liabilities and shareholders' equity $
78,453 $
78,509
Caterpillar Inc.
Condensed Consolidated Statement of Cash Flow
(Unaudited)
(Millions of dollars)
Twelve Months Ended
December 31,
2019 2018
Cash flow from operating activities:
Profit of
consolidated and
affiliated
companies $
6,094 $
6,148
Adjustments for
non-cash items:
Depreciation and amortization 2,577 2,766
Actuarial (gain) loss on pension
and postretirement benefits 468 495
Provision (benefit) for deferred
income taxes 28 220
Other 675 1,006
Changes in assets
and liabilities,
net of
acquisitions and
divestitures:
Receivables - trade and other 171 (1,619)
Inventories 274 (1,579)
Accounts payable (1,025) 709
Accrued expenses 172 101
Accrued wages, salaries and
employee benefits (757) (162)
Customer advances (10) (183)
Other assets - net (93) 41
Other liabilities - net (1,662) (1,385)
Net cash provided by (used for) operating
activities 6,912 6,558
Cash flow from investing activities:
Capital
expenditures -
excluding
equipment leased
to others (1,056) (1,276)
Expenditures for
equipment leased
to others (1,613) (1,640)
Proceeds from
disposals of
leased assets and
property, plant
and equipment 1,153 936
Additions to
finance
receivables (12,777) (12,183)
Collections of
finance
receivables 12,183 10,901
Proceeds from sale
of finance
receivables 235 477
Investments and
acquisitions (net
of cash acquired) (47) (392)
Proceeds from sale
of businesses and
investments (net
of cash sold) 41 16
Proceeds from sale
of securities 574 442
Investments in
securities (597) (506)
Other - net (24) 13
Net cash provided by (used for) investing
activities (1,928) (3,212)
Cash flow from financing activities:
Dividends paid (2,132) (1,951)
Common stock
issued, including
treasury shares
reissued 238 313
Common shares
repurchased (4,047) (3,798)
Proceeds from debt
issued (original
maturities
greater than
three months) 9,841 8,907
Payments on debt
(original
maturities
greater than
three months) (8,297) (7,829)
Short-term
borrowings - net
(original
maturities three
months or less) (138) 762
Other - net (3) (54)
Net cash provided by (used for) financing
activities (4,538) (3,650)
Effect of exchange rate changes on cash (44) (126)
Increase (decrease) in cash and short-term
investments and restricted cash 402 (430)
Cash and short-term investments and
restricted cash at beginning of period 7,890 8,320
Cash and short-term investments and
restricted cash at end of period $
8,292 $
7,890
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.
---
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended December 31, 2019
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Machinery,
Consolidated Energy & Financial Consolidating
Transportation (1) Products Adjustments
---
Sales and revenues:
Sales of Machinery, Energy &
Transportation $
12,386 $
12,386
$
$
Revenues of Financial Products 758 887 (129) (2)
Total sales and revenues 13,144 12,386 887 (129)
Operating costs:
Cost of goods sold 9,117 9,119 (2) (3)
Selling, general and administrative
expenses 1,283 1,120 173 (10) (3)
Research and development expenses 386 386
Interest expense of Financial
Products 183 187 (4) 4
Other operating (income) expenses 325 12 323 (10) (3)
Total operating costs 11,294 10,637 683 (26)
Operating profit 1,850 1,749 204 (103)
Interest expense excluding Financial
Products 112 111 1 4
Other income (expense) (373) (489) 12 104 5
Consolidated profit before taxes 1,365 1,149 216
Provision (benefit) for income taxes 276 218 58
Profit of consolidated companies 1,089 931 158
Equity in profit (loss) of
unconsolidated affiliated companies 8 8
Equity in profit of Financial
Products' subsidiaries 153 (153) 6
Profit of consolidated and affiliated
companies 1,097 1,092 158 (153)
Less: Profit (loss) attributable to
noncontrolling interests (1) (6) 5
Profit 7 $
1,098 $
1,098 $
153 $
(153)
(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.
---
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended December 31, 2018
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Machinery,
Consolidated Energy & Financial Consolidating
Transportation (1) Products Adjustments
---
Sales and revenues:
Sales of Machinery, Energy & Transportation $
13,630 $
13,630
$
$
Revenues of Financial Products 712 835 (123) (2)
Total sales and revenues 14,342 13,630 835 (123)
Operating costs:
Cost of goods sold 9,987 9,988 (1) (3)
Selling, general and administrative expenses 1,463 1,230 244 (11) (3)
Research and development expenses 466 466
Interest expense of Financial Products 189 198 (9) 4
Other operating (income) expenses 354 44 310
Total operating costs 12,459 11,728 752 (21)
Operating profit 1,883 1,902 83 (102)
Interest expense excluding Financial Products 99 111 (12) 4
Other income (expense) (417) (467) (40) 90 5
Consolidated profit before taxes 1,367 1,324 43
Provision (benefit) for income taxes 321 300 21
Profit of consolidated companies 1,046 1,024 22
Equity in profit (loss) of unconsolidated
affiliated companies 3 3
Equity in profit of Financial Products'
subsidiaries 17 (17) 6
Profit of consolidated and affiliated companies 1,049 1,044 22 (17)
Less: Profit (loss) attributable to noncontrolling
interests 1 (4) 5
Profit 7 $
1,048 $
1,048 $
17 $
(17)
(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.
---
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Twelve Months Ended December 31, 2019
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Machinery,
Consolidated Energy & Financial Consolidating
Transportation (1) Products Adjustments
Sales and revenues:
Sales of Machinery, Energy &
Transportation $
50,755 $
50,755
$
$
Revenues of Financial Products 3,045 3,571 (526) (2)
Total sales and revenues 53,800 50,755 3,571 (526)
Operating costs:
Cost of goods sold 36,630 36,634 (4) (3)
Selling, general and administrative
expenses 5,162 4,444 737 (19) (3)
Research and development expenses 1,693 1,693
Interest expense of Financial
Products 754 786 (32) 4
Other operating (income) expenses 1,271 14 1,297 (40) (3)
Total operating costs 45,510 42,785 2,820 (95)
Operating profit 8,290 7,970 751 (431)
Interest expense excluding Financial
Products 421 429 (8) 4
Other income (expense) (57) (560) 80 423 5
Consolidated profit before taxes 7,812 6,981 831
Provision (benefit) for income taxes 1,746 1,512 234
Profit of consolidated companies 6,066 5,469 597
Equity in profit (loss) of
unconsolidated affiliated companies 28 28
Equity in profit of Financial
Products' subsidiaries 575 (575) 6
Profit of consolidated and affiliated
companies 6,094 6,072 597 (575)
Less: Profit (loss) attributable to
noncontrolling interests 1 (21) 22
Profit 7 $
6,093 $
6,093 $
575 $
(575)
(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.
---
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Twelve Months Ended December 31, 2018
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Machinery,
Consolidated Energy & Financial Consolidating
Transportation (1) Products Adjustments
Sales and revenues:
Sales of Machinery, Energy &
Transportation $
51,822 $
51,822
$
$
Revenues of Financial Products 2,900 3,362 (462) (2)
Total sales and revenues 54,722 51,822 3,362 (462)
Operating costs:
Cost of goods sold 36,997 36,998 (1) (3)
Selling, general and administrative
expenses 5,478 4,675 825 (22) (3)
Research and development expenses 1,850 1,850
Interest expense of Financial
Products 722 756 (34) 4
Other operating (income) expenses 1,382 144 1,259 (21) (3)
Total operating costs 46,429 43,667 2,840 (78)
Operating profit 8,293 8,155 522 (384)
Interest expense excluding Financial
Products 404 448 (44) 4
Other income (expense) (67) (391) (16) 340 5
Consolidated profit before taxes 7,822 7,316 506
Provision (benefit) for income taxes 1,698 1,574 124
Profit of consolidated companies 6,124 5,742 382
Equity in profit (loss) of
unconsolidated affiliated companies 24 24
Equity in profit of Financial
Products' subsidiaries 362 (362) 6
Profit of consolidated and affiliated
companies 6,148 6,128 382 (362)
Less: Profit (loss) attributable to
noncontrolling interests 1 (19) 20
Profit 7 $
6,147 $
6,147 $
362 $
(362)
(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.
---
Caterpillar Inc.
Supplemental Data for Cash Flow
For the Twelve Months Ended December 31, 2019
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Machinery,
Consolidated Energy & Financial Consolidating
Transportation (1) Products Adjustments
---
Cash flow from operating activities:
Profit of
consolidated and
affiliated
companies $
6,094 $
6,072 $
597 $
(575) (2)
Adjustments for
non-cash items:
Depreciation and amortization 2,577 1,713 864
Undistributed profit of Financial
Products (550) 550 (3)
Actuarial (gain) loss on pension
and postretirement benefits 468 468
Provision (benefit) for deferred
income taxes 28 15 13
Other 675 456 (215) 434 4
Changes in assets
and liabilities,
net of
acquisitions and
divestitures:
Receivables - trade and other 171 4 15 152 4,5
Inventories 274 250 24 4
Accounts payable (1,025) (983) 20 (62) 4
Accrued expenses 172 187 (13) (2) 4
Accrued wages, salaries and
employee benefits (757) (772) 15
Customer advances (10) (8) (2) 4
Other assets - net (93) (166) 38 35 4
Other liabilities - net (1,662) (1,815) 169 (16) 4
Net cash provided by (used for) operating
activities 6,912 4,871 1,503 538
Cash flow from investing activities:
Capital
expenditures -
excluding
equipment leased
to others (1,056) (1,036) (20)
Expenditures for
equipment leased
to others (1,613) (38) (1,616) 41 4
Proceeds from
disposals of
leased assets and
property, plant
and equipment 1,153 164 1,092 (103) 4
Additions to
finance
receivables (12,777) (14,270) 1,493 5
Collections of
finance
receivables 12,183 13,537 (1,354) 5
Net intercompany
purchased
receivables 640 (640) 5
Proceeds from sale
of finance
receivables 235 235
Net intercompany
borrowings 900 3 (903) 6
Investments and
acquisitions (net
of cash acquired) (47) (47)
Proceeds from sale
of businesses and
investments (net
of cash sold) 41 3 38
Proceeds from sale
of securities 574 33 541
Investments in
securities (597) (28) (569)
Other - net (24) 1 (25)
Net cash provided by (used for) investing
activities (1,928) (48) (414) (1,466)
Cash flow from financing activities:
Dividends paid (2,132) (2,132) (25) 25 7
Common stock
issued, including
treasury shares
reissued 238 238
Common shares
repurchased (4,047) (4,047)
Net intercompany
borrowings (3) (900) 903 6
Proceeds from debt
issued > 90 days 9,841 1,479 8,362
Payments on debt >
90 days (8,297) (12) (8,285)
Short-term
borrowings - net
< 90 days (138) 5 (143)
Other - net (3) (3)
Net cash provided by (used for) financing
activities (4,538) (4,475) (991) 928
Effect of exchange rate changes on cash (44) (40) (4)
Increase (decrease) in cash and short-term
investments and restricted cash 402 308 94
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 $
8,292 $
7,302 $
990
$
(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
---
Caterpillar Inc.
Supplemental Data for Cash Flow
For the Twelve Months Ended December 31, 2018
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Machinery,
Consolidated Energy & Financial Consolidating
Products Adjustments
Transportation (1)
---
Cash flow from operating activities:
Profit of
consolidated and
affiliated
companies $
6,148 $
6,128 $
382 $
(362) (2)
Adjustments for
non-cash items:
Depreciation and amortization 2,766 1,895 871
Actuarial (gain) loss on pension
and postretirement benefits 495 495
Provision (benefit) for deferred
income taxes 220 149 71
Other 1,006 434 178 394 (3)
Financial Products' dividend in
excess of profit 57 (57) 4
Changes in assets
and liabilities,
net of
acquisitions and
divestitures:
Receivables - trade and other (1,619) (396) 6 (1,229) 3,5
Inventories (1,579) (1,528) (51) (3)
Accounts payable 709 771 (55) (7) (3)
Accrued expenses 101 71 30
Accrued wages, salaries and
employee benefits (162) (141) (21)
Customer advances (183) (183)
Other assets - net 41 16 (14) 39 (3)
Other liabilities - net (1,385) (1,421) 75 (39) (3)
Net cash provided by (used for) operating
activities 6,558 6,347 1,523 (1,312)
Cash flow from investing activities:
Capital
expenditures -
excluding
equipment leased
to others (1,276) (1,168) (108)
Expenditures for
equipment leased
to others (1,640) (53) (1,667) 80 (3)
Proceeds from
disposals of
leased assets and
property, plant
and equipment 936 152 811 (27) (3)
Additions to
finance
receivables (12,183) (13,595) 1,412 5,6
Collections of
finance
receivables 10,901 12,513 (1,612) 5
Net intercompany
purchased
receivables (1,046) 1,046 5
Proceeds from sale
of finance
receivables 477 477
Net intercompany
borrowings 112 31 (143) 7
Investments and
acquisitions (net
of cash acquired) (392) (392)
Proceeds from sale
of businesses and
investments (net
of cash sold) 16 22 (6) 6
Proceeds from sale
of securities 442 162 280
Investments in
securities (506) (24) (482)
Other - net 13 2 10 1 8
Net cash provided by (used for) investing
activities (3,212) (1,187) (2,776) 751
Cash flow from financing activities:
Dividends paid (1,951) (1,951) (419) 419 9
Common stock
issued, including
treasury shares
reissued 313 313 1 (1) 8
Common shares
repurchased (3,798) (3,798)
Net intercompany
borrowings (31) (112) 143 7
Proceeds from debt
issued > 90 days 8,907 57 8,850
Payments on debt >
90 days (7,829) (7) (7,822)
Short-term
borrowings - net
< 90 days 762 762
Other - net (54) (54)
Net cash provided by (used for) financing
activities (3,650) (5,471) 1,260 561
Effect of exchange rate changes on cash (126) (111) (15)
Increase (decrease) in cash and short-term
investments and restricted cash (430) (422) (8)
Cash and short-term investments and restricted
cash at beginning of period 8,320 7,416 904
Cash and short-term investments and
restricted cash at end of period $
7,890 $
6,994 $
896
$
(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 and
changes in
assets and
liabilities
related to
consolidated
reporting
---
4 Elimination of
Financial
Products'
dividend to
Machinery,
Energy &
Transportation
in excess of
Financial
Products'
profit
---
5 Reclassification
of Financial
Products' cash
flow activity
from investing
to operating
for
receivables
that arose
from the sale
of inventory
---
6 Elimination of
proceeds
received from
Financial
Products
related to
Machinery,
Energy &
Transportation's
sale of
businesses and
investments
---
7 Elimination of
net proceeds
and payments
to/from
Machinery,
Energy &
Transportation
and Financial
Products
---
8 Elimination of
change in
investment and
common stock
related to
Financial
Products
---
9 Elimination of
dividend from
Financial
Products to
Machinery,
Energy &
Transportation
---
View original content to download multimedia:http://www.prnewswire.com/news-releases/caterpillar-reports-fourth-quarter-and-full-year-2019-results-provides-outlook-for-2020-300996779.html
SOURCE Caterpillar Inc.
