Caterpillar Reports First-Quarter 2020 Results
DEERFIELD, Ill., April 28, 2020 /PRNewswire/ --
-- First-quarter sales and revenues decreased 21%; profit per share
declined 39%
-- Company bolsters liquidity, improves strong financial position
-- Returned about $1.6 billion to shareholders
First Quarter
($ in billions except
profit per share) 2020 2019
Sales and Revenues $10.6 $13.5
---
Profit Per Share $1.98 $3.25
Caterpillar Inc. (NYSE: CAT) today announced first-quarter 2020 sales and revenues of $10.6 billion, a 21% decrease compared with $13.5 billion in the first quarter of 2019. The decline was due to lower sales volume driven by lower end-user demand and the impact from changes in dealer inventories. Dealers increased machine and engine inventories about $100 million during the first quarter of 2020, compared with about $1.3 billion during the first quarter of 2019.
First-quarter 2020 profit per share was $1.98, compared with $3.25 profit per share in the first quarter of 2019. Profit per share in the first quarter of 2020 included a pre-tax remeasurement gain of $254 million, or $0.38 per share, resulting from the settlement of a non-U.S. pension obligation. Profit per share in the first quarter of 2019 included a discrete tax benefit related to U.S. tax reform of $178 million, or $0.31 per share. The first quarter of 2020 also benefited from the lack of short-term incentive compensation expense partially offset by the higher estimated annual tax rate of 31% excluding discrete items.
Operating profit margin was 13.2% for the first quarter of 2020, compared with 16.4% for the first quarter of 2019.
During the first quarter of 2020, enterprise operating cash flow was $1.130 billion. Caterpillar has taken actions to improve its strong financial position by increasing sources of liquidity. On a consolidated basis, Caterpillar ended the first quarter with $7.1 billion of cash and available global credit facilities of $10.5 billion. In April, Caterpillar raised $2.0 billion of incremental cash by issuing new 10- and 30-year bonds and arranged $8.0 billion of additional back-up facilities to supplement the company's liquidity position.
Response to COVID-19 and Global Business Conditions
"We remain committed to the safety, health and well-being of our employees around the world, and I am proud of our employees and dealers for their dedication to our customers, their communities and each other," said Caterpillar Chairman and CEO Jim Umpleby. "Our employees deliver products and services that enable our customers to provide critical infrastructure essential to support society during the COVID-19 pandemic."
Operational Impacts
Caterpillar has implemented safeguards in its facilities to protect team members, including increased frequency of cleaning and disinfecting facilities, social distancing practices and other measures consistent with specific regulatory requirements and guidance from health authorities.
Many governments classified Caterpillar's operations as an essential activity for support of critical infrastructure. Caterpillar has suspended operations temporarily at certain facilities during the last several weeks due to supply chain issues, weak customer demand or government regulations. As of mid-April 2020, globally and across the three primary segments, approximately 75% of the company's primary production facilities continue to operate. Some facilities that were temporarily closed have reopened. The company will continue to monitor the situation and may suspend operations temporarily at additional facilities if warranted by business conditions.
The company has taken actions to reduce costs, including reducing discretionary expenses and suspending 2020 base salary increases and short-term incentive compensation plans for many employees and all senior executives. Caterpillar is prioritizing spending to allow continued investment in services and expanded offerings, key elements of its strategy for profitable growth introduced in 2017.
Outlook
Caterpillar's financial results for the remainder of 2020 will be impacted by continued global economic uncertainty due to the COVID-19 pandemic. As such, Caterpillar withdrew its earnings guidance on March 26 and is not providing a financial outlook for 2020 at this time.
"We have taken decisive actions to enhance our strong financial position, while continuing to execute our strategy for profitable growth," said Umpleby. "Caterpillar has faced and overcome many challenges in our 95-year history. Our goal is to emerge from the pandemic an even stronger company."
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues Comparison
First Quarter 2020 vs. First Quarter 2019
To access this chart, go to http://www.caterpillar.com/en/investors/quarterly-results.html for the downloadable version of Caterpillar first-quarter 2020 earnings.
The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the first quarter of 2019 (at left) and the first quarter of 2020 (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 first quarter of 2020 were $10.635 billion, a decrease of $2.831 billion, or 21%, compared with $13.466 billion in the first quarter of 2019. The decline was due to lower sales volume driven by lower end-user demand and the impact from changes in dealer inventories. Dealers increased machine and engine inventories about $100 million during the first quarter of 2020, compared with about $1.3 billion during the first quarter of 2019. The changes in dealer inventories came primarily in Construction Industries, driven by North America, and in Resource Industries.
Sales were lower across all regions and in the three primary segments.
Sales and Revenues by Segment
(Millions of dollars) First Sales Price Currency Inter- First
$ %
Quarter Segment / Quarter Change Change
2019 Volume Realization Other 2020
Construction Industries $
5,873 $
(1,418) $
(63) $
(59) $
(27) $
4,306 $
(1,567) (27%)
Resource Industries 2,752 (607) (21) (40) 2,084 (668) (24%)
Energy & Transportation 5,210 (599) 21 (37) (246) 4,349 (861) (17%)
All Other Segment 121 (9) (3) 109 (12) (10%)
Corporate Items and Eliminations (1,232) 22 1 (1) 276 (934) 298
Machinery, Energy & Transportation 12,724 (2,611) (62) (137) 9,914 (2,810) (22%)
Financial Products Segment 850 (36) 814 (36) (4%)
Corporate Items and Eliminations (108) 15 (93) 15
Financial Products Revenues 742 (21) 721 (21) (3%)
Consolidated Sales and Revenues $
13,466 $
(2,611) $
(62) $
(137) $
(21) $
10,635 $
(2,831) (21%)
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
First Quarter 2020
---
Construction Industries $
2,085 (30%) $
265 (17%) $
889 (12%) $
1,073 (31%) $
4,312 (26%) $
(6) (129%) $
4,306 (27%)
Resource Industries 696 (27%) 320 (24%) 395 (16%) 568 (29%) 1,979 (25%) 105 -% 2,084 (24%)
Energy & Transportation 1,738 (19%) 249 (25%) 1,053 2% 578 (19%) 3,618 (15%) 731 (25%) 4,349 (17%)
All Other Segment 5 (38%) 2 -% 11 -% 10 (44%) 28 (24%) 81 (4%) 109 (10%)
Corporate Items and Eliminations (15) (2) (4) (2) (23) (911) (934)
Machinery, Energy & Transportation 4,509 (25%) 834 (22%) 2,344 (7%) 2,227 (28%) 9,914 (22%) -% 9,914 (22%)
Financial Products Segment 525 (6%) 70 -% 102 -% 117 (3%) 814 (4%) -% 814 (4%)
Corporate Items and Eliminations (54) (12) (9) (18) (93) (93)
Financial Products Revenues 471 (4%) 58 (2%) 93 -% 99 (2%) 721 (3%) -% 721 (3%)
Consolidated Sales and Revenues $
4,980 (24%) $
892 (21%) $
2,437 (7%) $
2,326 (27%) $
10,635 (21%)
$ -% $
10,635 (21%)
First Quarter 2019
---
Construction Industries $
2,965 $
319 $
1,006 $
1,562 $
5,852 $
21 $
5,873
Resource Industries 951 423 468 805 2,647 105 2,752
Energy & Transportation 2,151 332 1,032 718 4,233 977 5,210
All Other Segment 8 11 18 37 84 121
Corporate Items and Eliminations (41) 1 (3) (2) (45) (1,187) (1,232)
Machinery, Energy & Transportation 6,034 1,075 2,514 3,101 12,724 12,724
Financial Products Segment 558 70 102 120 850 850
Corporate Items and Eliminations (69) (11) (9) (19) (108) (108)
Financial Products Revenues 489 59 93 101 742 742
Consolidated Sales and Revenues $
6,523 $
1,134 $
2,607 $
3,202 $
13,466
$ $
13,466
Consolidated Operating Profit
Consolidated Operating Profit Comparison
First Quarter 2020 vs. First Quarter 2019
To access this chart, go to http://www.caterpillar.com/en/investors/quarterly-results.html for the downloadable version of Caterpillar first-quarter 2020 earnings.
The chart above graphically illustrates reasons for the change in consolidated operating profit between the first quarter of 2019 (at left) and the first quarter of 2020 (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 first quarter of 2020 was $1.404 billion, a decrease of $803 million, or 36%, compared with $2.207 billion in the first quarter of 2019. The decrease was mostly due to lower sales volume and unfavorable currency impacts related to the Australian dollar, partially offset by lower selling, general and administrative (SG&A) and research and development (R&D) expenses as well as favorable manufacturing costs.
Lower SG&A/R&D expenses reflected reduced short-term incentive compensation expense, a favorable change in fair value adjustments related to deferred compensation plans and other cost-reduction actions implemented in response to lower sales volumes.
Favorable manufacturing costs were primarily driven by lower period manufacturing and material costs, partially offset by higher warranty expense. Period manufacturing costs declined mostly due to a reduction in short-term incentive compensation expense and other cost-reduction actions implemented in response to lower sales volumes.
Profit by Segment
(Millions of dollars) First Quarter First Quarter
$ %
2020 2019 Change Change
Construction Industries $
640 $
1,085 $
(445) (41%)
Resource Industries 304 576 (272) (47%)
Energy & Transportation 602 838 (236) (28%)
All Other Segment 7 25 (18) (72%)
Corporate Items and Eliminations (212) (375) 163
Machinery, Energy &
Transportation 1,341 2,149 (808) (38%)
Financial Products Segment 105 211 (106) (50%)
Corporate Items and Eliminations 47 (46) 93
Financial Products 152 165 (13) (8%)
Consolidating Adjustments (89) (107) 18
Consolidated Operating Profit $
1,404 $
2,207 $
(803) (36%)
Other Profit/Loss and Tax Items
-- Other income (expense) in the first quarter of 2020 was income of $222
million, compared with income of $160 million in the first quarter of
2019. The change was primarily due to a $254 million remeasurement gain
resulting from the settlement of a non-U.S. pension obligation,
partially offset by unfavorable impacts from equity securities at
Insurance Services and foreign currency exchange gains (losses)
primarily due to the Australian dollar and Brazilian real. The
unfavorable impact of equity securities was due to unrealized losses in
the first quarter of 2020, compared with unrealized gains in the first
quarter of 2019. The company experienced foreign currency exchange net
losses in the first quarter of 2020, compared with net gains in the
first quarter of 2019.
-- The provision for income taxes for the first quarter of 2020 reflected a
higher estimated annual tax rate of 31% compared with 26% for the first
quarter of 2019, excluding the discrete items discussed below. The
increase in the estimated annual tax rate is primarily related to
changes in the expected geographic mix of profits from a tax perspective
for 2020, including the impact of U.S. tax on non-U.S. earnings as a
result of U.S. tax reform. In the first quarter of 2020, a $43 million
tax charge was recorded related to the $254 million remeasurement gain
resulting from the settlement of a non-U.S. pension obligation. In the
first quarter of 2019, a discrete tax benefit of $201 million was
recorded.
CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
First Quarter Sales Price Currency Inter- First Quarter
$ %
2019 Volume Realization Segment 2020 Change Change
Total Sales $
5,873 $
(1,418) $
(63) $
(59) $
(27) $
4,306 $
(1,567) (27%)
Sales by Geographic Region
First Quarter First Quarter
$ %
2020 2019 Change Change
North America $
2,085 $
2,965 $
(880) (30%)
Latin America 265 319 (54) (17%)
EAME 889 1,006 (117) (12%)
Asia/Pacific 1,073 1,562 (489) (31%)
External Sales 4,312 5,852 (1,540) (26%)
Inter-segment (6) 21 (27) (129%)
Total Sales $
4,306 $
5,873 $
(1,567) (27%)
Segment Profit
First Quarter 2020 First Quarter %
2019 Change Change
Segment Profit $
640 $
1,085 $
(445) (41%)
Segment Profit Margin 14.9% 18.5% (3.6 pts)
Construction Industries' total sales were $4.306 billion in the first quarter of 2020, a decrease of $1.567 billion, or 27%, compared with $5.873 billion in the first quarter of 2019. The decrease was due to lower sales volume, driven by lower end-user demand and the impact from changes in dealer inventories. Dealers increased inventories significantly more during the first quarter of 2019 than in the first quarter of 2020.
-- In North America, sales decreased due to lower demand driven by the
impact from changes in dealer inventories and lower end-user demand.
Dealers increased inventories more during the first quarter of 2019 than
in the first quarter of 2020. The lower end-user demand was driven
primarily by non-residential and pipeline construction.
-- Sales declined in Latin America primarily due to the impact from changes
in dealer inventories and unfavorable currency impacts from a weaker
Brazilian real. Dealers decreased inventories more during the first
quarter of 2020 than in the first quarter of 2019.
-- In EAME, the sales decrease was primarily due to lower end-user demand
across most of the region and unfavorable currency impacts from a weaker
euro.
-- Sales declined in Asia/Pacific due to lower end-user demand across most
of the region, primarily in China. Decreases in China reflected lower
end-user demand mostly due to COVID-19 pandemic-related impacts.
Construction Industries' profit was $640 million in the first quarter of 2020, a decrease of $445 million, or 41%, compared with $1.085 billion in the first quarter of 2019. The decrease was mainly due to lower sales volume, partially offset by lower manufacturing costs. Favorable manufacturing costs were primarily due to lower period manufacturing and material costs, partially offset by higher warranty expense. Lower period manufacturing costs reflected a reduction in short-term incentive compensation expense and targeted cost-reduction actions implemented in response to lower sales volumes.
RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
First Quarter Sales Price Currency Inter- First Quarter
$ %
2019 Volume Realization Segment 2020 Change Change
Total Sales $
2,752 $
(607) $
(21) $
(40)
$ $
2,084 $
(668) (24%)
Sales by Geographic Region
First Quarter First Quarter
$ %
2019 Change Change
2020
North America $
696 $
951 $
(255) (27%)
Latin America 320 423 (103) (24%)
EAME 395 468 (73) (16%)
Asia/Pacific 568 805 (237) (29%)
External Sales 1,979 2,647 (668) (25%)
Inter-segment 105 105 -%
Total Sales $
2,084 $
2,752 $
(668) (24%)
Segment Profit
First Quarter First Quarter %
2020 2019 Change
Change
Segment Profit $
304 $
576 $
(272) (47%)
Segment Profit Margin 14.6% 20.9% (6.3 pts)
Resource Industries' total sales were $2.084 billion in the first quarter of 2020, a decrease of $668 million, or 24%, compared with $2.752 billion in the first quarter of 2019. The decrease was due to lower sales volume, driven by changes in dealer inventories and lower end-user demand. Dealers increased inventories during the first quarter of 2019, compared with a decrease during the first quarter of 2020. Mining equipment sales were lower due to weakness in certain commodities. In addition, demand decreased for equipment supporting non-residential construction and quarry and aggregates.
Resource Industries' profit was $304 million in the first quarter of 2020, a decrease of $272 million, or 47%, compared with $576 million in the first quarter of 2019. The decrease was mainly due to lower sales volume. Manufacturing costs were about flat as the unfavorable impact of cost absorption and higher warranty expense were more than offset by lower period manufacturing costs, freight expense and material costs. Cost absorption was unfavorable as inventory increased more in the first quarter of 2019 than in the first quarter of 2020. Lower period manufacturing costs were primarily due to lower short-term incentive compensation expense and the favorable impact of restructuring and other cost-reduction actions.
ENERGY & TRANSPORTATION
(Millions of dollars)
Segment Sales
First Quarter Sales Price Currency Inter- First Quarter
$ %
2019 Volume Realization Segment 2020 Change Change
Total Sales $
5,210 $
(599) $
21 $
(37) $
(246) $
4,349 $
(861) (17%)
Sales by Application
First Quarter First Quarter
$ %
2020 2019 Change Change
Oil and Gas $
861 $
1,131 $
(270) (24%)
Power Generation 854 1,036 (182) (18%)
Industrial 801 904 (103) (11%)
Transportation 1,102 1,162 (60) (5%)
External Sales 3,618 4,233 (615) (15%)
Inter-segment 731 977 (246) (25%)
Total Sales $
4,349 $
5,210 $
(861) (17%)
Segment Profit
First Quarter First Quarter %
2020 2019 Change
Change
Segment Profit $
602 $
838 $
(236) (28%)
Segment Profit Margin 13.8% 16.1% (2.3 pts)
Energy & Transportation's total sales were $4.349 billion in the first quarter of 2020, a decrease of $861 million, or 17%, compared with $5.210 billion in the first quarter of 2019. Sales declined across all applications and inter-segment engine sales.
-- 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 well servicing.
-- Power Generation - Sales decreased primarily due to lower sales in
Asia/Pacific and North America for both reciprocating engines and
turbine-related projects.
-- Industrial - Sales decreased due to lower demand across all regions.
-- Transportation - Sales declined in both rail and marine applications.
Energy & Transportation's profit was $602 million in the first quarter of 2020, a decrease of $236 million, or 28%, compared with $838 million in the first quarter of 2019. The decrease was mostly due to lower sales volume. The decline was partially offset by lower SG&A/R&D expenses and manufacturing costs, both of which were mostly impacted by a reduction in short-term incentive compensation expense and other cost-reduction actions implemented in response to lower sales volumes.
FINANCIAL PRODUCTS SEGMENT
(Millions of dollars)
Revenues by Geographic Region
First Quarter First Quarter
$ %
2020 2019 Change Change
North America $
525 $
558 $
(33) (6%)
Latin America 70 70 -%
EAME 102 102 -%
Asia/Pacific 117 120 (3) (3%)
Total Revenues $
814 $
850 $
(36) (4%)
Segment Profit
First Quarter First Quarter %
2020 2019 Change
Change
Segment Profit $
105 $
211 $
(106) (50%)
Financial Products' segment revenues were $814 million in the first quarter of 2020, a decrease of $36 million, or 4%, from the first quarter of 2019. The decrease was primarily due to lower average earning assets in North America.
Financial Products' segment profit was $105 million in the first quarter of 2020, compared with $211 million in the first quarter of 2019. Most of the decrease was due to an unfavorable impact from equity securities in Insurance Services. Additionally, Cat Financial experienced lower average earning assets. These unfavorable impacts were partially offset by a reduction in SG&A expenses due to lower short-term incentive compensation expense.
At the end of the first quarter of 2020, past dues at Cat Financial were 4.13%, compared with 3.61% at the end of the first quarter of 2019. The increase was primarily due to North America, Asia/Pacific and Mining, partially offset by a decrease in Caterpillar Power Finance. Write-offs, net of recoveries, were $30 million for the first quarter of both 2020 and 2019. As of March 31, 2020, Cat Financial's allowance for credit losses totaled $457 million, or 1.69% of finance receivables, compared with $424 million, or 1.50% of finance receivables, at December 31, 2019. The increase in allowance for credit losses was driven by the forecast of deteriorating economic conditions from the COVID-19 pandemic.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $165 million in the first quarter of 2020, a decrease of $256 million from the first quarter of 2019, primarily due to a favorable change in fair value adjustments related to deferred compensation plans and segment reporting methodology differences.
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.
4. Caterpillar will conduct a teleconference and live webcast, with a slide
presentation, beginning at 7:30 a.m. Central Time on Tuesday, April 28,
2020, to discuss its 2020 first-quarter 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; (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.
Adjusted Profit
The company believes it is important to separately quantify the profit impact of two significant items in order for the company's results to be meaningful to readers. These items consist of (i) a remeasurement gain resulting from the settlement of a non-U.S. pension obligation in the first quarter of 2020 and (ii) a discrete tax benefit related to U.S. tax reform in the first quarter of 2019. 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. The company intends to discuss adjusted profit per share for the fourth quarter and full-year 2020, 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 profit per share to the most directly comparable GAAP measure, diluted profit per share, are as follows:
First Quarter
2020 2019
Profit per share $
1.98 $
3.25
Per share
remeasurement
gain of a non-
U.S. pension
obligation(1) $
(0.38)
$
Per share U.S. tax
reform impact
$ $
(0.31)
Adjusted profit
per share $
1.60 $
2.94
1 At statutory tax rates
Note: On March 26, 2020, the company withdrew its
previous financial outlook due to the continued global
economic uncertainty related to the COVID-19 pandemic
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
March 31,
2020 2019
---
Sales and revenues:
Sales of Machinery, Energy
& Transportation $
9,914 $
12,724
Revenues of Financial
Products 721 742
Total sales and revenues 10,635 13,466
Operating costs:
Cost of goods sold 7,266 9,003
Selling, general and
administrative expenses 1,121 1,319
Research and development
expenses 356 435
Interest expense of
Financial Products 175 190
Other operating (income)
expenses 313 312
Total operating costs 9,231 11,259
Operating profit 1,404 2,207
Interest expense excluding
Financial Products 113 103
Other income (expense) 222 160
Consolidated profit before
taxes 1,513 2,264
Provision (benefit) for
income taxes 425 387
Profit of consolidated
companies 1,088 1,877
Equity in profit (loss) of
unconsolidated affiliated
companies 5 7
Profit of consolidated and
affiliated companies 1,093 1,884
Less: Profit (loss)
attributable to
noncontrolling interests 1 3
Profit (1) $
1,092 $
1,881
Profit per common share $
2.00 $
3.29
Profit per common share -
diluted (2) $
1.98 $
3.25
Weighted-average common shares
outstanding (millions)
- Basic 546.8 572.4
- Diluted (2) 551.1 578.8
(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)
March 31, December 31,
2020 2019
---
Assets
Current assets:
Cash and short-term investments $
7,123 $
8,284
Receivables - trade and other 7,834 8,568
Receivables - finance 9,120 9,336
Prepaid expenses and other current assets 1,761 1,739
Inventories 11,748 11,266
Total current assets 37,586 39,193
Property, plant and equipment - net 12,488 12,904
Long-term receivables - trade and other 1,196 1,193
Long-term receivables - finance 12,021 12,651
Noncurrent deferred and refundable income
taxes 1,426 1,411
Intangible assets 1,478 1,565
Goodwill 6,140 6,196
Other assets 3,559 3,340
Total assets $
75,894 $
78,453
Liabilities
Current liabilities:
Short-term borrowings:
--Machinery, Energy & Transportation
$ $
5
-- Financial Products 4,789 5,161
Accounts payable 5,769 5,957
Accrued expenses 3,776 3,750
Accrued wages, salaries and employee benefits 878 1,629
Customer advances 1,295 1,187
Dividends payable - 567
Other current liabilities 2,074 2,155
Long-term debt due within one year:
--Machinery, Energy & Transportation 143 16
-- Financial Products 7,792 6,194
Total current liabilities 26,516 26,621
Long-term debt due after one year:
--Machinery, Energy & Transportation 8,998 9,141
-- Financial Products 15,371 17,140
Liability for postemployment benefits 6,333 6,599
Other liabilities 4,437 4,323
Total liabilities 61,655 63,824
Shareholders' equity
Common stock 6,046 5,935
Treasury stock (25,341) (24,217)
Profit employed in the business 35,504 34,437
Accumulated other comprehensive income (loss) (2,012) (1,567)
Noncontrolling interests 42 41
Total shareholders' equity 14,239 14,629
Total liabilities and shareholders' equity $
75,894 $
78,453
Caterpillar Inc.
Condensed Consolidated Statement of Cash Flow
(Unaudited)
(Millions of dollars)
Three Months Ended
March 31,
2020 2019
---
Cash flow from operating activities:
Profit of consolidated and affiliated
companies $
1,093 $
1,884
Adjustments for non-cash items:
Depreciation and amortization 614 641
Gain on remeasurement of a non-U.S.
pension obligation (254)
Provision (benefit) for deferred
income taxes 20 (11)
Other 534 88
Changes in assets and liabilities, net of acquisitions
and divestitures:
Receivables - trade and other 500 (150)
Inventories (541) (813)
Accounts payable 90 355
Accrued expenses (97) 135
Accrued wages, salaries and employee
benefits (722) (1,185)
Customer advances 116 105
Other assets - net (50) (7)
Other liabilities - net (173) 79
Net cash provided by (used for)
operating activities 1,130 1,121
Cash flow from investing activities:
Capital expenditures - excluding
equipment leased to others (305) (278)
Expenditures for equipment leased to
others (243) (269)
Proceeds from disposals of leased
assets and property, plant and
equipment 216 209
Additions to finance receivables (2,953) (2,615)
Collections of finance receivables 3,153 2,818
Proceeds from sale of finance
receivables 31 44
Investments and acquisitions (net of
cash acquired) (35) (2)
Proceeds from sale of securities 68 57
Investments in securities (180) (107)
Other - net 35 (38)
Net cash provided by (used for)
investing activities (213) (181)
Cash flow from financing activities:
Dividends paid (567) (494)
Common stock issued, including
treasury shares reissued (23) (5)
Common shares repurchased (1,043) (751)
Proceeds from debt issued (original
maturities greater than three months) 2,141 2,665
Payments on debt (original maturities
greater than three months) (2,466) (2,567)
Short-term borrowings - net (original
maturities three months or less) (40) (522)
Other - net (1) (1)
Net cash provided by (used for)
financing activities (1,999) (1,675)
Effect of exchange rate changes on
cash (80) 3
Increase (decrease) in cash and short-
term investments and restricted cash (1,162) (732)
Cash and short-term investments and
restricted cash at beginning of
period 8,292 7,890
Cash and short-term investments and
restricted cash at end of period $
7,130 $
7,158
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 March 31, 2020
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy & Products Adjustments
Transportation(1)
Sales and revenues:
Sales of Machinery, Energy &
Transportation $
9,914 $
9,914
$
$
Revenues of Financial Products 721 830 (109) (2)
Total sales and revenues 10,635 9,914 830 (109)
Operating costs:
Cost of goods sold 7,266 7,267 (1) (3)
Selling, general and
administrative expenses 1,121 940 182 (1) (3)
Research and development
expenses 356 356
Interest expense of Financial
Products 175 176 (1) 4
Other operating (income)
expenses 313 10 320 (17) (3)
Total operating costs 9,231 8,573 678 (20)
Operating profit 1,404 1,341 152 (89)
Interest expense excluding
Financial Products 113 112 1 4
Other income (expense) 222 179 (47) 90 5
Consolidated profit before
taxes 1,513 1,408 105
Provision (benefit) for income
taxes 425 397 28
Profit of consolidated
companies 1,088 1,011 77
Equity in profit (loss) of
unconsolidated affiliated
companies 5 5
Equity in profit of Financial
Products' subsidiaries - 73 (73) 6
Profit of consolidated and
affiliated companies 1,093 1,089 77 (73)
Less: Profit (loss)
attributable to
noncontrolling interests 1 (3) 4
Profit 7 $
1,092 $
1,092 $
73 $
(73)
(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 March 31, 2019
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy & Products Adjustments
Transportation(1)
Sales and revenues:
Sales of Machinery, Energy &
Transportation $
12,724 $
12,724
$
$
Revenues of Financial Products 742 870 (128) (2)
Total sales and revenues 13,466 12,724 870 (128)
Operating costs:
Cost of goods sold 9,003 9,003
Selling, general and
administrative expenses 1,319 1,127 192
Research and development
expenses 435 435
Interest expense of Financial
Products 190 200 (10) 4
Other operating (income)
expenses 312 10 313 (11) (3)
Total operating costs 11,259 10,575 705 (21)
Operating profit 2,207 2,149 165 (107)
Interest expense excluding
Financial Products 103 110 (7) 4
Other income (expense) 160 19 41 100 5
Consolidated profit before
taxes 2,264 2,058 206
Provision (benefit) for income
taxes 387 335 52
Profit of consolidated
companies 1,877 1,723 154
Equity in profit (loss) of
unconsolidated affiliated
companies 7 7
Equity in profit of Financial
Products' subsidiaries - 148 (148) 6
Profit of consolidated and
affiliated companies 1,884 1,878 154 (148)
Less: Profit (loss)
attributable to
noncontrolling interests 3 (3) 6
Profit 7 $
1,881 $
1,881 $
148 $
(148)
(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 Financial Position
At March 31, 2020
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy & Products Adjustments
Transportation
(1)
Assets
Current assets:
Cash and short-term
investments $
7,123 $
6,251 $
872
$
Receivables - trade and
other 7,834 2,722 482 4,630 2,3
Receivables - finance 9,120 13,886 (4,766) (3)
Prepaid expenses and other
current assets 1,761 1,237 555 (31) 4
Inventories 11,748 11,748
Total current assets 37,586 21,958 15,795 (167)
Property, plant and
equipment - net 12,488 8,385 4,103
Long-term receivables -
trade and other 1,196 268 266 662 2,3
Long-term receivables -
finance 12,021 12,694 (673) (3)
Investments in Financial
Products subsidiaries - 3,999 (3,999) 5
Noncurrent deferred and
refundable income taxes 1,426 1,975 96 (645) 6
Intangible assets 1,478 1,478
Goodwill 6,140 6,140
Other assets 3,559 2,048 1,610 (99) 7
Total assets $
75,894 $
46,251 $
34,564 $
(4,921)
Liabilities
Current liabilities:
Short-term borrowings $
4,789
$ $
4,789
$
Short-term borrowings
with consolidated
companies -
Accounts payable 5,769 5,672 233 (136) 9
Accrued expenses 3,776 3,426 350
Accrued wages, salaries
and employee benefits 878 862 16
Customer advances 1,295 1,295
Dividends payable -
Other current liabilities 2,074 1,500 626 (52) 6,10
Long-term debt due within
one year 7,935 143 7,792
Total current liabilities 26,516 12,898 13,806 (188)
Long-term debt due after
one year 24,369 9,009 15,371 (11) 8
Liability for
postemployment benefits 6,333 6,332 1
Other liabilities 4,437 3,773 1,387 (723) 6
Total liabilities 61,655 32,012 30,565 (922)
Shareholders' equity
Common stock 6,046 6,046 919 (919) 5
Treasury stock (25,341) (25,341)
Profit employed in the
business 35,504 35,504 4,057 (4,057) 5
Accumulated other
comprehensive income
(loss) (2,012) (2,012) (1,152) 1,152 5
Noncontrolling interests 42 42 175 (175) 5
Total shareholders' equity 14,239 14,239 3,999 (3,999)
Total liabilities and
shareholders' equity $
75,894 $
46,251 $
34,564 $
(4,921)
(1) Represents Caterpillar Inc. and its
subsidiaries with Financial Products
accounted for on the equity basis.
---
(2) Elimination of receivables between
Machinery, Energy & Transportation and
Financial Products.
---
(3) Reclassification of Machinery, Energy &
Transportation's trade receivables
purchased by Financial Products and
Financial Products' wholesale
inventory receivables.
---
4 Elimination of Machinery, Energy &
Transportation's insurance premiums
that are prepaid to Financial
Products.
---
5 Elimination of Financial Products'
equity which is accounted for by
Machinery, Energy & Transportation on
the equity basis.
---
6 Reclassification reflecting required
netting of deferred tax assets /
liabilities by taxing jurisdiction.
---
7 Elimination of other intercompany
assets between Machinery, Energy &
Transportation and Financial Products.
---
8 Elimination of debt between Machinery,
Energy & Transportation and Financial
Products.
---
9 Elimination of payables between
Machinery, Energy & Transportation and
Financial Products.
---
10 Elimination of prepaid insurance in
Financial Products' other liabilities.
---
Caterpillar Inc.
Supplemental Data for Financial Position
At December 31, 2019
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy & Products Adjustments
Transportation
(1)
Assets
Current assets:
Cash and short-term
investments $
8,284 $
7,299 $
985
$
Receivables - trade and
other 8,568 3,737 451 4,380 2,3
Receivables - finance 9,336 14,489 (5,153) (3)
Prepaid expenses and other
current assets 1,739 1,290 529 (80) 4
Inventories 11,266 11,266
Total current assets 39,193 23,592 16,454 (853)
Property, plant and
equipment - net 12,904 8,606 4,298
Long-term receivables -
trade and other 1,193 348 152 693 2,3
Long-term receivables -
finance 12,651 13,354 (703) (3)
Investments in Financial
Products subsidiaries - 4,260 (4,260) 5
Noncurrent deferred and
refundable income taxes 1,411 2,002 117 (708) 6
Intangible assets 1,565 1,565
Goodwill 6,196 6,196
Other assets 3,340 1,868 1,572 (100) 7
Total assets $
78,453 $
48,437 $
35,947 $
(5,931)
Liabilities
Current liabilities:
Short-term borrowings $
5,166 $
5 $
5,161
$
Short-term borrowings
with consolidated
companies - 600 (600) 8
Accounts payable 5,957 5,918 212 (173) 9
Accrued expenses 3,750 3,415 335
Accrued wages, salaries
and employee benefits 1,629 1,580 49
Customer advances 1,187 1,187
Dividends payable 567 567
Other current liabilities 2,155 1,689 566 (100) 6,10
Long-term debt due within
one year 6,210 16 6,194
Total current liabilities 26,621 14,377 13,117 (873)
Long-term debt due after
one year 26,281 9,151 17,140 (10) 8
Liability for
postemployment benefits 6,599 6,599
Other liabilities 4,323 3,681 1,430 (788) 6
Total liabilities 63,824 33,808 31,687 (1,671)
Shareholders' equity
Common stock 5,935 5,935 919 (919) 5
Treasury stock (24,217) (24,217)
Profit employed in the
business 34,437 34,437 3,997 (3,997) 5
Accumulated other
comprehensive income
(loss) (1,567) (1,567) (828) 828 5
Noncontrolling interests 41 41 172 (172) 5
Total shareholders' equity 14,629 14,629 4,260 (4,260)
Total liabilities and
shareholders' equity $
78,453 $
48,437 $
35,947 $
(5,931)
(1) Represents Caterpillar Inc. and its
subsidiaries with Financial Products
accounted for on the equity basis.
---
(2) Elimination of receivables between
Machinery, Energy & Transportation and
Financial Products.
---
(3) Reclassification of Machinery, Energy &
Transportation's trade receivables
purchased by Financial Products and
Financial Products' wholesale
inventory receivables.
---
4 Elimination of Machinery, Energy &
Transportation's insurance premiums
that are prepaid to Financial
Products.
---
5 Elimination of Financial Products'
equity which is accounted for by
Machinery, Energy & Transportation on
the equity basis.
---
6 Reclassification reflecting required
netting of deferred tax assets /
liabilities by taxing jurisdiction.
---
7 Elimination of other intercompany
assets between Machinery, Energy &
Transportation and Financial Products.
---
8 Elimination of debt between Machinery,
Energy & Transportation and Financial
Products.
---
9 Elimination of payables between
Machinery, Energy & Transportation and
Financial Products.
---
10 Elimination of prepaid insurance in
Financial Products' other liabilities.
---
Caterpillar Inc.
Supplemental Data for Cash Flow
For the Three Months Ended March 31, 2020
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy & Products Adjustments
Transportation(1)
Cash flow from operating activities:
Profit of consolidated and
affiliated companies $
1,093 $
1,089 $
77 $
(73) (2)
Adjustments for non-cash items:
Depreciation and amortization 614 402 212
Undistributed profit of
Financial Products - (73) 73 (3)
Gain on remeasurement of a non-
U.S. pension obligation (254) (254)
Provision (benefit) for deferred
income taxes 20 75 (55)
Other 534 249 170 115 4
Changes in assets and liabilities, net of
acquisitions and divestitures:
Receivables - trade and other 500 328 (56) 228 4, 5
Inventories (541) (538) (3) 4
Accounts payable 90 2 51 37 4
Accrued expenses (97) (105) 8
Accrued wages, salaries and
employee benefits (722) (689) (33)
Customer advances 116 116
Other assets - net (50) 15 (16) (49) 4
Other liabilities - net (173) (299) 73 53 4
Net cash provided by (used for)
operating activities 1,130 318 431 381
Cash flow from investing activities:
Capital expenditures - excluding
equipment leased to others (305) (304) (1)
Expenditures for equipment
leased to others (243) 2 (249) 4 4
Proceeds from disposals of
leased assets and property,
plant and equipment 216 61 156 (1) 4
Additions to finance receivables (2,953) (3,213) 260 5
Collections of finance
receivables 3,153 3,421 (268) 5
Net intercompany purchased
receivables - 376 (376) 5
Proceeds from sale of finance
receivables 31 31
Net intercompany borrowings - 599 1 (600) 6
Investments and acquisitions
(net of cash acquired) (35) (35)
Proceeds from sale of securities 68 6 62
Investments in securities (180) (5) (175)
Other - net 35 35
Net cash provided by (used for)
investing activities (213) 324 444 (981)
Cash flow from financing activities:
Dividends paid (567) (567)
Common stock issued, including
treasury shares reissued (23) (23)
Common shares repurchased (1,043) (1,043)
Net intercompany borrowings - (1) (599) 600 6
Proceeds from debt issued > 90
days 2,141 15 2,126
Payments on debt > 90 days (2,466) (6) (2,460)
Short-term borrowings - net <
90 days (40) (5) (35)
Other - net (1) (1)
Net cash provided by (used for)
financing activities (1,999) (1,631) (968) 600
Effect of exchange rate changes
on cash (80) (59) (21)
Increase (decrease) in cash and
short-term investments and
restricted cash (1,162) (1,048) (114)
Cash and short-term investments
and restricted cash at
beginning of period 8,292 7,302 990
Cash and short-term investments
and restricted cash at end of
period $
7,130 $
6,254 $
876
$
(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.
---
Caterpillar Inc.
Supplemental Data for Cash Flow
For the Three Months Ended March 31, 2019
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy & Products Adjustments
Transportation(1)
Cash flow from operating activities:
Profit of consolidated and
affiliated companies $
1,884 $
1,878 $
154 $
(148) (2)
Adjustments for non-cash items:
Depreciation and
amortization 641 424 217
Undistributed profit of
Financial Products - (148) 148 (3)
Provision (benefit) for
deferred income taxes (11) 14 (25)
Other 88 49 (59) 98 4
Changes in assets and liabilities, net of
acquisitions and divestitures:
Receivables - trade and
other (150) 75 (24) (201) 4, 5
Inventories (813) (818) 5 4
Accounts payable 355 336 12 7 4
Accrued expenses 135 124 11
Accrued wages, salaries
and employee benefits (1,185) (1,177) (8)
Customer advances 105 105
Other assets - net (7) (6) 37 (38) 4
Other liabilities - net 79 4 35 40 4
Net cash provided by (used
for) operating activities 1,121 860 350 (89)
Cash flow from investing activities:
Capital expenditures -
excluding equipment
leased to others (278) (274) (4)
Expenditures for equipment
leased to others (269) (23) (247) 1 4
Proceeds from disposals of
leased assets and
property, plant and
equipment 209 26 189 (6) 4
Additions to finance
receivables (2,615) (2,971) 356 5
Collections of finance
receivables 2,818 3,096 (278) 5
Net intercompany purchased
receivables - (16) 16 5
Proceeds from sale of
finance receivables 44 44
Net intercompany
borrowings - 63 (63) 6
Investments and
acquisitions (net of cash
acquired) (2) (2)
Proceeds from sale of
securities 57 4 53
Investments in securities (107) (7) (100)
Other - net (38) (13) (25)
Net cash provided by (used
for) investing activities (181) (226) 19 26
Cash flow from financing activities:
Dividends paid (494) (494)
Common stock issued,
including treasury shares
reissued (5) (5)
Common shares repurchased (751) (751)
Net intercompany
borrowings - (63) 63 6
Proceeds from debt issued
> 90 days 2,665 2,665
Payments on debt > 90 days (2,567) (2) (2,565)
Short-term borrowings -
net < 90 days (522) 4 (526)
Other - net (1) (1)
Net cash provided by (used
for) financing activities (1,675) (1,249) (489) 63
Effect of exchange rate
changes on cash 3 5 (2)
Increase (decrease) in
cash and short-term
investments and
restricted cash (732) (610) (122)
Cash and short-term
investments and
restricted cash at
beginning of period 7,890 6,994 896
Cash and short-term
investments and
restricted cash at end of
period $
7,158 $
6,384 $
774
$
(1) Represents Caterpillar Inc. and its
subsidiaries with Financial Products
accounted for on the equity basis.
---
(2) Elimination of Financial Products'
profit after tax due to equity method
of accounting.
---
(3) Elimination of non-cash adjustment
for the undistributed earnings from
Financial Products.
---
4 Elimination of non-cash adjustment
and changes in assets and liabilities
related to consolidated reporting.
---
5 Reclassification of Financial
Products' cash flow activity from
investing to operating for
receivables that arose from the sale
of inventory.
---
6 Elimination of net proceeds and
payments to/from Machinery, Energy &
Transportation and Financial
Products.
---
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SOURCE Caterpillar Inc.
