Caterpillar Reports Fourth-Quarter and Full-Year 2023 Results
-- Fourth-quarter 2023 sales and revenues up 3%; full-year sales and
revenues up 13%
-- Fourth-quarter 2023 profit per share of $5.28; adjusted profit per share
of $5.23
-- Full-year profit per share of $20.12; adjusted profit per share of
$21.21
-- Strong operating cash flow of $12.9 billion; ended the year with $7.0
billion of enterprise cash
-- Returned $7.5 billion to shareholders through share repurchases and
dividends in 2023
Fourth
Quarter Full Year
($ in billions except profit per share) 2023 2022 2023 2022
Sales and Revenues $17.1 $16.6 $67.1 $59.4
Profit Per Share $5.28 $2.79 $20.12 $12.64
Adjusted Profit Per Share $5.23 $3.86 $21.21 $13.84
IRVING, Texas, Feb. 5, 2024 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced fourth-quarter and full-year results for 2023.
Sales and revenues for the fourth quarter of 2023 were $17.1 billion, a 3% increase compared with $16.6 billion in the fourth quarter of 2022. Operating profit margin was 18.4% for the fourth quarter of 2023, compared with 10.1% for the fourth quarter of 2022. Adjusted operating profit margin was 18.9% for the fourth quarter of 2023, compared with 17.0% for the fourth quarter of 2022. Fourth-quarter 2023 profit per share was $5.28, compared with $2.79 profit per share in the fourth quarter of 2022. Adjusted profit per share in the fourth quarter of 2023 was $5.23, compared with fourth-quarter 2022 adjusted profit per share of $3.86.
Full-year sales and revenues in 2023 were $67.1 billion, up 13% compared with $59.4 billion in 2022. The increase reflected favorable price realization and higher sales volume, driven by higher sales of equipment to end users, partially offset by the impact from changes in dealer inventories. Operating profit margin was 19.3% in 2023, compared with 13.3% in 2022. Adjusted operating profit margin was 20.5% in 2023, compared with 15.4% in 2022. Full-year profit was $20.12 per share in 2023, compared with profit of $12.64 per share in 2022. Adjusted profit per share in 2023 was $21.21, compared with adjusted profit per share of $13.84 in 2022.
"I'm very proud of our global team's strong performance as they achieved the best year in our 98-year history, including record full-year sales and revenues, record adjusted profit per share and record ME&T free cash flow," said Caterpillar Chairman and CEO Jim Umpleby. "We remain committed to serving our customers, executing our strategy and investing for long-term profitable growth."
In 2023, adjusted operating profit margin and adjusted profit per share excluded restructuring costs, which included the impact of the divestiture of the company's Longwall business and other restructuring costs. 2023 adjusted profit per share also excluded a benefit for certain deferred tax valuation allowance adjustments and mark-to-market gains for remeasurement of pension and other postemployment benefit (OPEB) plans. In 2022, adjusted operating profit margin and adjusted profit per share excluded a goodwill impairment charge and restructuring costs related to the Rail division and other restructuring costs. 2022 adjusted profit per share also excluded mark-to-market gains for remeasurement of pension and OPEB plans. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 13.
For the full year of 2023, enterprise operating cash flow was $12.9 billion. During the year, the company repurchased $5.0 billion of Caterpillar common stock and paid dividends of $2.6 billion. Liquidity remained strong with an enterprise cash balance of $7.0 billion at the end of 2023.
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues Comparison
Fourth Quarter 2023 vs. Fourth Quarter 2022
To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar fourth-quarter 2023 earnings.
The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the fourth quarter of 2022 (at left) and the fourth quarter of 2023 (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 fourth quarter of 2023 were $17.070 billion, an increase of $473 million, or 3%, compared with $16.597 billion in the fourth quarter of 2022. The increase was due to favorable price realization, higher Financial Products' segment revenues and favorable currency impacts primarily related to the euro, partially offset by lower sales volume. The decrease in sales volume was driven by the impact from changes in dealer inventories, partially offset by higher sales of equipment to end users. Dealer inventory decreased by $900 million during the fourth quarter of 2023, compared with an increase of $700 million during the fourth quarter of 2022.
In the three primary segments, sales were higher in Energy & Transportation and lower in Construction Industries and Resource Industries.
Sales and Revenues by Segment
(Millions of dollars) Fourth Sales Price Currency Inter- Fourth
$ %
Quarter Segment / Quarter
2022 Volume Realization Other 2023 Change Change
Construction Industries $6,845 $(809) $445 $38
$ - $6,519 $(326) (5 %)
Resource Industries 3,436 (440) 239 8 (1) 3,242 (194) (6 %)
Energy & Transportation 6,823 561 305 54 (74) 7,669 846 12 %
All Other Segment 111 5 (7) 1 6 116 5 5 %
Corporate Items and Eliminations (1,344) (38) 4 69 (1,309) 35
Machinery, Energy & Transportation 15,871 (721) 982 105 16,237 366 2 %
Financial Products Segment 853 128 981 128 15 %
Corporate Items and Eliminations (127) (21) (148) (21)
Financial Products Revenues 726 107 833 107 15 %
Consolidated Sales and Revenues $16,597 $(721) $982 $105 $107 $17,070 $473 3 %
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 2023
---
Construction Industries $3,689 4 % $587 (25 %) $1,129 (18 %) $1,083 (4 %) $6,488 (5 %) $31 - % $6,519 (5 %)
Resource Industries 1,240 (9 %) 529 5 % 445 (25 %) 939 6 % 3,153 (6 %) 89 (1 %) 3,242 (6 %)
Energy & Transportation 3,324 31 % 684 10 % 1,638 5 % 942 (1 %) 6,588 16 % 1,081 (6 %) 7,669 12 %
All Other Segment 15 25 % (100 %) 5 106 % 12 (88 %) 32 (3 %) 84 8 % 116 5 %
Corporate Items and Eliminations (18) (2) (2) (2) (24) (1,285) (1,309)
Machinery, Energy & Transportation 8,250 11 % 1,798 (6 %) 3,215 (7 %) 2,974 (3 %) 16,237 2 % - % 16,237 2 %
Financial Products Segment 645 18 % 100 2 % 127 23 % 109 5 % 981 15 % - % 981 15 %
Corporate Items and Eliminations (88) (17) (22) (21) (148) (148)
Financial Products Revenues 557 17 % 83 6 % 105 21 % 88 2 % 833 15 % - % 833 15 %
Consolidated Sales and Revenues $8,807 11 % $1,881 (5 %) $3,320 (6 %) $3,062 (3 %) $17,070 3 %
$ - - % $17,070 3 %
Fourth Quarter 2022
---
Construction Industries $3,535 $782 $1,373 $1,124 $6,814 $31 $6,845
Resource Industries 1,364 503 596 883 3,346 90 3,436
Energy & Transportation 2,538 624 1,553 953 5,668 1,155 6,823
All Other Segment 12 2 (80) 99 33 78 111
Corporate Items and Eliminations 14 (3) (1) 10 (1,354) (1,344)
Machinery, Energy & Transportation 7,463 1,911 3,439 3,058 15,871 15,871
Financial Products Segment 548 98 103 104 853 853
Corporate Items and Eliminations (73) (20) (16) (18) (127) (127)
Financial Products Revenues 475 78 87 86 726 726
Consolidated Sales and Revenues $7,938 $1,989 $3,526 $3,144 $16,597
$ - $16,597
Consolidated Operating Profit
Consolidated Operating Profit Comparison
Fourth Quarter 2023 vs. Fourth Quarter 2022
To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar fourth-quarter 2023 earnings.
The chart above graphically illustrates reasons for the change in consolidated operating profit between the fourth quarter of 2022 (at left) and the fourth quarter of 2023 (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 2023 was $3.134 billion, an increase of $1.454 billion, or 87%, compared with $1.680 billion in the fourth quarter of 2022. The increase was primarily due to favorable price realization and the absence of a 2022 goodwill impairment charge related to the Rail division, partially offset by higher selling, general and administrative (SG&A) and research and development (R&D) expenses. The increase in SG&A/R&D expenses was primarily driven by higher short-term incentive compensation expense and investments aligned with strategic initiatives.
Operating profit margin was 18.4% for the fourth quarter of 2023, compared with 10.1% for the fourth quarter of 2022. Adjusted operating profit margin was 18.9% for the fourth quarter of 2023, compared with 17.0% for the fourth quarter of 2022. Operating profit margin was 19.3% for 2023, compared with 13.3% for 2022. Adjusted operating profit margin was 20.5% for 2023, compared with 15.4% for 2022.
Profit (Loss) by Segment
(Millions of dollars) Fourth Quarter Fourth Quarter
$ %
2023 2022
Change Change
Construction Industries $1,535 $1,488 $47 3 %
Resource Industries 600 605 (5) (1 %)
Energy & Transportation 1,429 1,177 252 21 %
All Other Segment (24) (53) 29 55 %
Corporate Items and Eliminations (438) (1,588) 1,150
Machinery, Energy & Transportation 3,102 1,629 1,473 90 %
Financial Products Segment 234 189 45 24 %
Corporate Items and Eliminations (46) (4) (42)
Financial Products 188 185 3 2 %
Consolidating Adjustments (156) (134) (22)
Consolidated Operating Profit $3,134 $1,680 $1,454 87 %
Other Profit/Loss and Tax Items
-- Other income (expense) in the fourth quarter of 2023 was income of $241
million, compared with income of $536 million in the fourth quarter of
2022. The change was primarily driven by lower mark-to-market gains for
remeasurement of pension and OPEB plans (see a reconciliation of GAAP to
non-GAAP financial measures in the appendix on page 13) and unfavorable
impacts from pension and OPEB plan costs, partially offset by favorable
impacts from foreign currency exchange and higher investment and
interest income.
-- The provision for income taxes for the fourth quarter of 2023 reflected
a global annual effective tax rate of 21.4%, excluding discrete items.
The comparative tax rate for the fourth quarter of 2022 and full-year
2022 was 23.2%. The decrease from 2022 was primarily related to changes
in the geographic mix of profits. In addition, the company recorded a
$112 million benefit in the fourth quarter of 2023 for the change from
the third-quarter estimated annual tax rate.
CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
Fourth Sales Price Currency Inter- Fourth
$ %
Quarter 2022 Volume Realization Segment Quarter 2023
Change Change
Total Sales $6,845 $(809) $445 $38
$ - $6,519 $(326) (5 %)
Sales by Geographic Region
Fourth Fourth
$ %
Quarter 2023 Quarter 2022
Change Change
North America $3,689 $3,535 $154 4 %
Latin America 587 782 (195) (25 %)
EAME 1,129 1,373 (244) (18 %)
Asia/Pacific 1,083 1,124 (41) (4 %)
External Sales 6,488 6,814 (326) (5 %)
Inter-segment 31 31 - %
Total Sales $6,519 $6,845 $(326) (5 %)
Segment Profit
Fourth Fourth %
Quarter 2023 Quarter 2022
Change Change
Segment Profit $1,535 $1,488 $47 3 %
Segment Profit Margin 23.5 % 21.7 % 1.8 pts
Construction Industries' total sales were $6.519 billion in the fourth quarter of 2023, a decrease of $326 million, or 5%, compared with $6.845 billion in the fourth quarter of 2022. The decrease was due to lower sales volume, partially offset by favorable price realization. The decrease in sales volume was driven by the impact from changes in dealer inventories, partially offset by higher sales of equipment to end users. Dealer inventory decreased during the fourth quarter of 2023, compared with an increase during the fourth quarter of 2022.
-- In North America, sales increased due to favorable price realization,
partially offset by lower sales volume. Lower sales volume was driven by
the impact from changes in dealer inventories, partially offset by
higher sales of equipment to end users. Dealer inventory increased
during the fourth quarter of 2022, compared with a decrease during the
fourth quarter of 2023.
-- Sales decreased in Latin America primarily due to lower sales volume.
Lower sales volume was driven by the impact from changes in dealer
inventories. Dealer inventory increased during the fourth quarter of
2022, compared with a decrease during the fourth quarter of 2023.
-- In EAME, sales decreased primarily due to lower sales volume, partially
offset by favorable price realization and favorable currency impacts
primarily related to the euro. Lower sales volume was primarily due to
the impact from changes in dealer inventories. Dealer inventory
decreased more during the fourth quarter of 2023 than during the fourth
quarter of 2022.
-- Sales decreased in Asia/Pacific primarily due to lower sales volume.
Decreased sales volume was driven by the impact from changes in dealer
inventories, partially offset by higher aftermarket parts sales volume.
Dealer inventory decreased more during the fourth quarter of 2023 than
during the fourth quarter of 2022.
Construction Industries' profit was $1.535 billion in the fourth quarter of 2023, an increase of $47 million, or 3%, compared with $1.488 billion in the fourth quarter of 2022. The increase was primarily due to favorable price realization, partially offset by the profit impact from lower sales volume.
RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
Fourth Sales Price Currency Inter- Fourth
$ %
Quarter 2022 Volume Realization Segment Quarter 2023
Change Change
Total Sales $3,436 $(440) $239 $8 $(1) $3,242 $(194) (6 %)
Sales by Geographic Region
Fourth Fourth
$ %
Quarter 2023 Quarter 2022
Change Change
North America $1,240 $1,364 $(124) (9 %)
Latin America 529 503 26 5 %
EAME 445 596 (151) (25 %)
Asia/Pacific 939 883 56 6 %
External Sales 3,153 3,346 (193) (6 %)
Inter-segment 89 90 (1) (1 %)
Total Sales $3,242 $3,436 $(194) (6 %)
Segment Profit
Fourth Fourth %
Quarter 2023 Quarter 2022
Change Change
Segment Profit $600 $605 $(5) (1 %)
Segment Profit Margin 18.5 % 17.6 % 0.9 pts
Resource Industries' total sales were $3.242 billion in the fourth quarter of 2023, a decrease of $194 million, or 6%, compared with $3.436 billion in the fourth quarter of 2022. The decrease was primarily due to lower sales volume, partially offset by favorable price realization. The decrease in sales volume was driven by the impact from changes in dealer inventories and lower aftermarket parts sales volume. Dealer inventory increased during the fourth quarter of 2022, compared with a decrease during the fourth quarter of 2023.
Resource Industries' profit was $600 million in the fourth quarter of 2023, a decrease of $5 million, or 1%, compared with $605 million in the fourth quarter of 2022. Favorable price realization and manufacturing costs were offset by lower sales volume, higher SG&A/R&D expenses and currency impacts. Favorable manufacturing costs largely reflected lower freight. The increase in SG&A/R&D expenses was primarily driven by higher short-term incentive compensation expense and investments aligned with strategic initiatives.
ENERGY & TRANSPORTATION
(Millions of dollars)
Segment Sales
Fourth Sales Price Currency Inter- Fourth
$ %
Quarter 2022 Volume Realization Segment Quarter 2023
Change Change
Total Sales $6,823 $561 $305 $54 $(74) $7,669 $846 12 %
Sales by Application
Fourth Fourth
$ %
Quarter 2023 Quarter 2022
Change Change
Oil and Gas $2,247 $1,827 $420 23 %
Power Generation 1,835 1,422 413 29 %
Industrial 1,078 1,131 (53) (5 %)
Transportation 1,428 1,288 140 11 %
External Sales 6,588 5,668 920 16 %
Inter-segment 1,081 1,155 (74) (6 %)
Total Sales $7,669 $6,823 $846 12 %
Segment Profit
Fourth Fourth Change %
Quarter 2023 Quarter 2022
Change
Segment Profit $1,429 $1,177 $252 21 %
Segment Profit Margin 18.6 % 17.3 % 1.3 pts
Energy & Transportation's total sales were $7.669 billion in the fourth quarter of 2023, an increase of $846 million, or 12%, compared with $6.823 billion in the fourth quarter of 2022. Sales increased across all applications except Industrial. The increase in sales was primarily due to higher sales volume and favorable price realization.
-- Oil and Gas - Sales increased for turbines and turbine-related services.
Sales also increased in reciprocating engines used in well servicing and
gas compression applications.
-- Power Generation - Sales increased in large reciprocating engines,
primarily data center applications.
-- Industrial - Sales decreased primarily in EAME, partially offset by
increased sales in Latin America and Asia/Pacific.
-- Transportation - Sales increased in rail services and marine.
International locomotive deliveries were also higher.
Energy & Transportation's profit was $1.429 billion in the fourth quarter of 2023, an increase of $252 million, or 21%, compared with $1.177 billion in the fourth quarter of 2022. The increase was primarily due to favorable price realization and higher sales volume, partially offset by higher SG&A/R&D expenses, currency impacts and unfavorable manufacturing costs. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives and higher short-term incentive compensation expense. Unfavorable manufacturing costs reflected lower freight being more than offset by increased period manufacturing costs, higher material costs, unfavorable cost absorption and the impact of manufacturing inefficiencies. Cost absorption was unfavorable as inventory decreased more during the fourth quarter of 2023 than during the fourth quarter of 2022.
FINANCIAL PRODUCTS SEGMENT
(Millions of dollars)
Revenues by Geographic Region
Fourth Fourth
$ %
Quarter 2023 Quarter 2022
Change Change
North America $645 $548 $97 18 %
Latin America 100 98 2 2 %
EAME 127 103 24 23 %
Asia/Pacific 109 104 5 5 %
Total Revenues $981 $853 $128 15 %
Segment Profit
Fourth Fourth %
Quarter 2023 Quarter 2022
Change Change
Segment Profit $234 $189 $45 24 %
Financial Products' segment revenues were $981 million in the fourth quarter of 2023, an increase of $128 million, or 15%, compared with $853 million in the fourth quarter of 2022. The increase was primarily due to higher average financing rates across all regions and higher average earning assets in North America.
Financial Products' segment profit was $234 million in the fourth quarter of 2023, an increase of $45 million, or 24%, compared with $189 million in the fourth quarter of 2022. The increase was mainly due to lower provision for credit losses at Cat Financial, higher average earning assets and higher net yield on average earning assets. These favorable impacts were partially offset by an increase in SG&A expenses.
At the end of 2023, past dues at Cat Financial were 1.79%, compared with 1.89% at the end of 2022. Write-offs, net of recoveries, were $65 million for 2023, compared with $46 million for 2022. As of December 31, 2023, Cat Financial's allowance for credit losses totaled $331 million, or 1.18% of finance receivables, compared with $346 million, or 1.29% of finance receivables, at December 31, 2022.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $484 million in the fourth quarter of 2023, a decrease of $1.108 billion from the fourth quarter of 2022, primarily driven by the absence of a 2022 goodwill impairment charge related to the Rail division.
Notes
i. Glossary of terms is included on the Caterpillar website at https://investors.caterpillar.com/overview/default.aspx.
ii. Sales of equipment to end users is demonstrated by the company's Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Monday, Feb. 5, 2024.
iii. Information on non-GAAP financial measures is included in the appendix on page 13.
iv. Some amounts within this report are rounded to the millions or billions and may not add.
v. Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7:30 a.m. Central Time on Monday, Feb. 5, 2024, to discuss its 2023 fourth-quarter and full-year results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx.
About Caterpillar
With 2023 sales and revenues of $67.1 billion, Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we've been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments - Construction Industries, Resource Industries and Energy & Transportation - and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/en/news/social-media.html.
Caterpillar's latest financial results are also available online:
https://investors.caterpillar.com/overview/default.aspx
https://investors.caterpillar.com/financials/quarterly-results/default.aspx (live broadcast/replays of quarterly conference call)
Forward-Looking Statements
Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "forecast," "target," "guide," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.
Caterpillar's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) commodity price changes, material price increases, fluctuations in demand for our products or significant shortages of material; (iii) government monetary or fiscal policies; (iv) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (v) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; (vi) our ability to develop, produce and market quality products that meet our customers' needs; (vii) the impact of the highly competitive environment in which we operate on our sales and pricing; (viii) information technology security threats and computer crime; (ix) inventory management decisions and sourcing practices of our dealers and our OEM customers; (x) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (xv) our Financial Products segment's risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an increase in delinquencies, repossessions or net losses of Cat Financial's customers; (xviii) currency fluctuations; (xix) our or Cat Financial's compliance with financial and other restrictive covenants in debt agreements; (xx) increased pension plan funding obligations; (xxi) alleged or actual violations of trade or anti-corruption laws and regulations; (xxii) additional tax expense or exposure, including the impact of U.S. tax reform; (xxiii) significant legal proceedings, claims, lawsuits or government investigations; (xxiv) new regulations or changes in financial services regulations; (xxv) compliance with environmental laws and regulations; (xxvi) catastrophic events, including global pandemics such as the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar's Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.
APPENDIX
NON-GAAP FINANCIAL MEASURES
The following definitions are provided for the non-GAAP financial measures. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures.
The company believes it is important to separately quantify the profit impact of five significant items in order for the company's results to be meaningful to readers. These items consist of (i) restructuring costs related to the divestiture of the company's Longwall business, (ii) other restructuring costs, (iii) pension and OPEB mark-to-market gains/losses resulting from plan remeasurements, (iv) certain deferred tax valuation allowance adjustments and (v) goodwill impairment in 2022. 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 results to the most directly comparable GAAP measure are as follows:
(Dollars in millions except per share data) Operating Operating Profit Provision Effective Profit Profit per
Profit Profit Before (Benefit)
for Tax Rate Share
Margin Taxes Income
Taxes
Three Months Ended December 31, 2023 - U.S. GAAP $3,134 18.4 % $3,249 $587 18.1 % $2,676 $5.28
Restructuring costs 92 0.5 % 92 27 29.3 % 65 0.13
Pension/OPEB mark-to-market (gains) losses - % (97) (26) 26.8 % (71) (0.14)
Deferred tax valuation allowance adjustments - % 18 - % (18) (0.04)
Three Months Ended December 31, 2023 - Adjusted $3,226 18.9 % $3,244 $606 18.7 % $2,652 $5.23
Three Months Ended December 31, 2022 - U.S. GAAP $1,680 10.1 % $2,099 $644 30.7 % $1,454 $2.79
Goodwill impairment 925 5.6 % 925 36 3.9 % 889 1.71
Restructuring costs 209 1.3 % 209 59 28.2 % 150 0.29
Pension/OPEB mark-to-market (gains) losses - % (606) (124) 20.5 % (482) (0.93)
Three Months Ended December 31, 2022 - Adjusted $2,814 17.0 % $2,627 $615 23.4 % $2,011 $3.86
Twelve Months Ended December 31, 2023 - U.S. GAAP $12,966 19.3 % $13,050 $2,781 21.3 % $10,335 $20.12
Restructuring costs - Longwall divestiture 586 0.9 % 586 - % 586 1.14
Other restructuring costs 194 0.3 % 194 48 25.0 % 146 0.30
Pension/OPEB mark-to-market (gains) losses - % (97) (26) 26.8 % (71) (0.14)
Deferred tax valuation allowance adjustments - % 106 - % (106) (0.21)
Twelve Months Ended December 31, 2023 - Adjusted $13,746 20.5 % $13,733 $2,909 21.2 % $10,890 $21.21
Twelve Months Ended December 31, 2022 - U.S. GAAP $7,904 13.3 % $8,752 $2,067 23.6 % $6,705 $12.64
Goodwill impairment 925 1.6 % 925 36 3.9 % 889 1.68
Restructuring costs 299 0.5 % 299 72 24.0 % 227 0.43
Pension/OPEB mark-to-market (gains) losses - % (606) (124) 20.5 % (482) (0.91)
Twelve Months Ended December 31, 2022 - Adjusted $9,128 15.4 % $9,370 $2,051 21.9 % $7,339 $13.84
Supplemental Consolidating Data
The company is providing supplemental consolidating data for the purpose of additional analysis. The data has been grouped as follows:
Consolidated - Caterpillar Inc. and its subsidiaries.
Machinery, Energy & Transportation (ME&T) - The company defines ME&T as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. ME&T's information relates to the design, manufacturing and marketing of its products.
Financial Products - The company defines Financial Products as it is presented in the supplemental data as its finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products' information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment.
Consolidating Adjustments - Eliminations of transactions between ME&T and Financial Products.
The nature of the ME&T and Financial Products businesses is different, especially with regard to the financial position and cash flow items. Caterpillar management utilizes this presentation internally to highlight these differences. The company believes this presentation will assist readers in understanding its business.
Pages 15 to 25 reconcile ME&T and Financial Products to Caterpillar Inc. consolidated financial information.
Caterpillar Inc.
Condensed Consolidated Statement of Results of Operations
(Unaudited)
(Dollars in millions except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2023 2022 2023 2022
Sales and revenues:
Sales of Machinery, Energy & Transportation $16,237 $15,871 $63,869 $56,574
Revenues of Financial Products 833 726 3,191 2,853
Total sales and revenues 17,070 16,597 67,060 59,427
Operating costs:
Cost of goods sold 11,016 11,614 42,767 41,350
Selling, general and administrative expenses 1,756 1,479 6,371 5,651
Research and development expenses 554 401 2,108 1,814
Interest expense of Financial Products 288 188 1,030 565
Goodwill impairment charge - 925 925
Other operating (income) expenses 322 310 1,818 1,218
Total operating costs 13,936 14,917 54,094 51,523
Operating profit 3,134 1,680 12,966 7,904
Interest expense excluding Financial Products 126 117 511 443
Other income (expense) 241 536 595 1,291
Consolidated profit before taxes 3,249 2,099 13,050 8,752
Provision (benefit) for income taxes 587 644 2,781 2,067
Profit of consolidated companies 2,662 1,455 10,269 6,685
Equity in profit (loss) of unconsolidated affiliated companies 11 (1) 63 19
Profit of consolidated and affiliated companies 2,673 1,454 10,332 6,704
Less: Profit (loss) attributable to noncontrolling interests (3) (3) (1)
Profit (1) $2,676 $1,454 $10,335 $6,705
Profit per common share $5.31 $2.81 $20.24 $12.72
Profit per common share - diluted (2) $5.28 $2.79 $20.12 $12.64
Weighted-average common shares outstanding (millions)
- Basic 504.4 517.4 510.6 526.9
- Diluted (2) 507.0 520.9 513.6 530.4
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,
2023 2022
Assets
Current assets:
Cash and cash equivalents $6,978 $7,004
Receivables - trade and other 9,310 8,856
Receivables - finance 9,510 9,013
Prepaid expenses and other current assets 4,586 2,642
Inventories 16,565 16,270
Total current assets 46,949 43,785
Property, plant and equipment - net 12,680 12,028
Long-term receivables - trade and other 1,238 1,265
Long-term receivables - finance 12,664 12,013
Noncurrent deferred and refundable income taxes 2,816 2,213
Intangible assets 564 758
Goodwill 5,308 5,288
Other assets 5,257 4,593
Total assets $87,476 $81,943
Liabilities
Current liabilities:
Short-term borrowings:
-- Machinery, Energy & Transportation
$ - $3
-- Financial Products 4,643 5,954
Accounts payable 7,906 8,689
Accrued expenses 4,958 4,080
Accrued wages, salaries and employee benefits 2,757 2,313
Customer advances 1,929 1,860
Dividends payable 649 620
Other current liabilities 3,123 2,690
Long-term debt due within one year:
-- Machinery, Energy & Transportation 1,044 120
-- Financial Products 7,719 5,202
Total current liabilities 34,728 31,531
Long-term debt due after one year:
-- Machinery, Energy & Transportation 8,579 9,498
-- Financial Products 15,893 16,216
Liability for postemployment benefits 4,098 4,203
Other liabilities 4,675 4,604
Total liabilities 67,973 66,052
Shareholders' equity
Common stock 6,403 6,560
Treasury stock (36,339) (31,748)
Profit employed in the business 51,250 43,514
Accumulated other comprehensive income (loss) (1,820) (2,457)
Noncontrolling interests 9 22
Total shareholders' equity 19,503 15,891
Total liabilities and shareholders' equity $87,476 $81,943
Caterpillar Inc.
Condensed Consolidated Statement of Cash Flow
(Unaudited)
(Millions of dollars)
Twelve Months Ended
December 31,
2023 2022
Cash flow from operating activities:
Profit of consolidated and affiliated companies $10,332 $6,704
Adjustments for non-cash items:
Depreciation and amortization 2,144 2,219
Actuarial (gain) loss on pension and postretirement benefits (97) (606)
Provision (benefit) for deferred income taxes (592) (377)
Loss on divestiture 572
Goodwill impairment charge - 925
Other 375 701
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other (437) (220)
Inventories (364) (2,589)
Accounts payable (754) 798
Accrued expenses 796 317
Accrued wages, salaries and employee benefits 486 90
Customer advances 80 768
Other assets - net (95) (210)
Other liabilities - net 439 (754)
Net cash provided by (used for) operating activities 12,885 7,766
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others (1,597) (1,296)
Expenditures for equipment leased to others (1,495) (1,303)
Proceeds from disposals of leased assets and property, plant and equipment 781 830
Additions to finance receivables (15,161) (13,239)
Collections of finance receivables 14,034 13,177
Proceeds from sale of finance receivables 63 57
Investments and acquisitions (net of cash acquired) (75) (88)
Proceeds from sale of businesses and investments (net of cash sold) (4) 1
Proceeds from maturities and sale of securities 1,891 2,383
Investments in securities (4,405) (3,077)
Other - net 97 14
Net cash provided by (used for) investing activities (5,871) (2,541)
Cash flow from financing activities:
Dividends paid (2,563) (2,440)
Common stock issued, including treasury shares reissued 12 51
Common shares repurchased (4,975) (4,230)
Proceeds from debt issued (original maturities greater than three months) 8,257 6,674
Payments on debt (original maturities greater than three months) (6,318) (7,728)
Short-term borrowings - net (original maturities three months or less) (1,345) 402
Other - net - (10)
Net cash provided by (used for) financing activities (6,932) (7,281)
Effect of exchange rate changes on cash (110) (194)
Increase (decrease) in cash, cash equivalents and restricted cash (28) (2,250)
Cash, cash equivalents and restricted cash at beginning of period 7,013 9,263
Cash, cash equivalents and restricted cash at end of period $6,985 $7,013
Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less.
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended December 31, 2023
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy &
Transportation Products Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation $16,237 $16,237
$ -
$ -
Revenues of Financial Products 833 1,020 (187) (1)
Total sales and revenues 17,070 16,237 1,020 (187)
Operating costs:
Cost of goods sold 11,016 11,018 (2) (2)
Selling, general and administrative expenses 1,756 1,557 197 2 (2)
Research and development expenses 554 554
Interest expense of Financial Products 288 290 (2) (2)
Other operating (income) expenses 322 6 345 (29) (2)
Total operating costs 13,936 13,135 832 (31)
Operating profit 3,134 3,102 188 (156)
Interest expense excluding Financial Products 126 126
Other income (expense) 241 322 33 (114) (3)
Consolidated profit before taxes 3,249 3,298 221 (270)
Provision (benefit) for income taxes 587 567 20
Profit of consolidated companies 2,662 2,731 201 (270)
Equity in profit (loss) of unconsolidated affiliated companies 11 12 (1) 4
Profit of consolidated and affiliated companies 2,673 2,743 201 (271)
Less: Profit (loss) attributable to noncontrolling interests (3) (2) (1) 5
Profit 6 $2,676 $2,745 $201 $(270)
1
Elimination of Financial Products' revenues earned from ME&T.
2
Elimination of net expenses recorded between ME&T and Financial Products.
3 Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as
dividends paid by Financial Products to ME&T.
4
Elimination of equity profit (loss) earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.
5
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.
6
Profit attributable to common shareholders.
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended December 31, 2022
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy &
Transportation Products Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation $15,871 $15,871
$ -
$ -
Revenues of Financial Products 726 883 (157) (1)
Total sales and revenues 16,597 15,871 883 (157)
Operating costs:
Cost of goods sold 11,614 11,615 (1) (2)
Selling, general and administrative expenses 1,479 1,285 197 (3) (2)
Research and development expenses 401 401
Interest expense of Financial Products 188 188
Goodwill impairment charge 925 925
Other operating (income) expenses 310 16 313 (19) (2)
Total operating costs 14,917 14,242 698 (23)
Operating profit 1,680 1,629 185 (134)
Interest expense excluding Financial Products 117 117
Other income (expense) 536 877 (341) (3)
Consolidated profit before taxes 2,099 2,389 185 (475)
Provision (benefit) for income taxes 644 608 36
Profit of consolidated companies 1,455 1,781 149 (475)
Equity in profit (loss) of unconsolidated affiliated companies (1) (1) 4
Profit of consolidated and affiliated companies 1,454 1,781 149 (476)
Less: Profit (loss) attributable to noncontrolling interests - 1 (1) 5
Profit 6 $1,454 $1,781 $148 $(475)
1
Elimination of Financial Products' revenues earned from ME&T.
2
Elimination of net expenses recorded by ME&T paid to Financial Products.
3 Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as
dividends paid by Financial Products to ME&T.
4
Elimination of equity profit (loss) earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.
5
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.
6
Profit attributable to common shareholders.
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Twelve Months Ended December 31, 2023
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy &
Transportation Products Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation $63,869 $63,869
$ -
$ -
Revenues of Financial Products 3,191 3,927 (736) (1)
Total sales and revenues 67,060 63,869 3,927 (736)
Operating costs:
Cost of goods sold 42,767 42,776 (9) (2)
Selling, general and administrative expenses 6,371 5,696 704 (29) (2)
Research and development expenses 2,108 2,108
Interest expense of Financial Products 1,030 1,032 (2) (2)
Other operating (income) expenses 1,818 630 1,268 (80) (2)
Total operating costs 54,094 51,210 3,004 (120)
Operating profit 12,966 12,659 923 (616)
Interest expense excluding Financial Products 511 511
Other income (expense) 595 340 (16) 271 (3)
Consolidated profit before taxes 13,050 12,488 907 (345)
Provision (benefit) for income taxes 2,781 2,560 221
Profit of consolidated companies 10,269 9,928 686 (345)
Equity in profit (loss) of unconsolidated affiliated companies 63 67 (4) 4
Profit of consolidated and affiliated companies 10,332 9,995 686 (349)
Less: Profit (loss) attributable to noncontrolling interests (3) (4) 5 (4) 5
Profit 6 $10,335 $9,999 $681 $(345)
1
Elimination of Financial Products' revenues earned from ME&T.
2
Elimination of net expenses recorded between ME&T and Financial Products.
3 Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as
dividends paid by Financial Products to ME&T.
4
Elimination of equity profit (loss) earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.
5
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.
6
Profit attributable to common shareholders.
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Twelve Months Ended December 31, 2022
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy &
Transportation Products Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation $56,574 $56,574
$ -
$ -
Revenues of Financial Products 2,853 3,376 (523) (1)
Total sales and revenues 59,427 56,574 3,376 (523)
Operating costs:
Cost of goods sold 41,350 41,356 (6) (2)
Selling, general and administrative expenses 5,651 4,999 672 (20) (2)
Research and development expenses 1,814 1,814
Interest expense of Financial Products 565 565
Goodwill impairment charge 925 925
Other operating (income) expenses 1,218 47 1,249 (78) (2)
Total operating costs 51,523 49,141 2,486 (104)
Operating profit 7,904 7,433 890 (419)
Interest expense excluding Financial Products 443 444 (1) (3)
Other income (expense) 1,291 1,374 (26) (57) 4
Consolidated profit before taxes 8,752 8,363 864 (475)
Provision (benefit) for income taxes 2,067 1,858 209
Profit of consolidated companies 6,685 6,505 655 (475)
Equity in profit (loss) of unconsolidated affiliated companies 19 26 (7) 5
Profit of consolidated and affiliated companies 6,704 6,531 655 (482)
Less: Profit (loss) attributable to noncontrolling interests (1) (1) 7 (7) 6
Profit 7 $6,705 $6,532 $648 $(475)
1
Elimination of Financial Products' revenues earned from ME&T.
2
Elimination of net expenses recorded by ME&T paid to Financial Products.
3
Elimination of interest expense recorded between Financial Products and ME&T.
4 Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as
dividends paid by Financial Products to ME&T.
5
Elimination of equity profit (loss) earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.
6
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.
7
Profit attributable to common shareholders.
Caterpillar Inc.
Supplemental Data for Financial Position
At December 31, 2023
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy & Products Adjustments
Transportation
Assets
Current assets:
Cash and cash equivalents $6,978 $6,106 $872
$ -
Receivables - trade and other 9,310 3,971 570 4,769 1,2
Receivables - finance 9,510 14,499 (4,989) (2)
Prepaid expenses and other current assets 4,586 4,327 341 (82) (3)
Inventories 16,565 16,565
Total current assets 46,949 30,969 16,282 (302)
Property, plant and equipment - net 12,680 8,694 3,986
Long-term receivables - trade and other 1,238 565 85 588 1,2
Long-term receivables - finance 12,664 13,299 (635) (2)
Noncurrent deferred and refundable income taxes 2,816 3,360 148 (692) 4
Intangible assets 564 564
Goodwill 5,308 5,308
Other assets 5,257 4,218 2,082 (1,043) 5
Total assets $87,476 $53,678 $35,882 $(2,084)
Liabilities
Current liabilities:
Short-term borrowings $4,643
$ - $4,643
$ -
Accounts payable 7,906 7,827 314 (235) 6,7
Accrued expenses 4,958 4,361 597
Accrued wages, salaries and employee benefits 2,757 2,696 61
Customer advances 1,929 1,912 2 15 7
Dividends payable 649 649
Other current liabilities 3,123 2,583 647 (107) 4,8
Long-term debt due within one year 8,763 1,044 7,719
Total current liabilities 34,728 21,072 13,983 (327)
Long-term debt due after one year 24,472 8,626 15,893 (47) 9
Liability for postemployment benefits 4,098 4,098
Other liabilities 4,675 3,806 1,607 (738) 4
Total liabilities 67,973 37,602 31,483 (1,112)
Shareholders' equity
Common stock 6,403 6,403 905 (905) 10
Treasury stock (36,339) (36,339)
Profit employed in the business 51,250 46,783 4,457 10 10
Accumulated other comprehensive income (loss) (1,820) (783) (1,037)
Noncontrolling interests 9 12 74 (77) 10
Total shareholders' equity 19,503 16,076 4,399 (972)
Total liabilities and shareholders' equity $87,476 $53,678 $35,882 $(2,084)
1
Elimination of receivables between ME&T and Financial Products.
2 Reclassification of ME&T's trade receivables purchased by Financial Products and Financial Products'
wholesale inventory receivables.
3
Elimination of ME&T's insurance premiums that are prepaid to Financial Products.
4 Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.
5
Elimination of other intercompany assets between ME&T and Financial Products.
6
Elimination of payables between ME&T and Financial Products.
7
Reclassification of Financial Products' payables to accrued expenses or customer advances
8
Elimination of prepaid insurance in Financial Products' other liabilities.
9
Elimination of debt between ME&T and Financial Products.
10
Eliminations associated with ME&T's investments in Financial Products' subsidiaries.
Caterpillar Inc.
Supplemental Data for Financial Position
At December 31, 2022
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy & Products Adjustments
Transportation
Assets
Current assets:
Cash and cash equivalents $7,004 $6,042 $962
$ -
Receivables - trade and other 8,856 3,710 519 4,627 1,2
Receivables - finance 9,013 13,902 (4,889) (2)
Prepaid expenses and other current assets 2,642 2,488 290 (136) (3)
Inventories 16,270 16,270
Total current assets 43,785 28,510 15,673 (398)
Property, plant and equipment - net 12,028 8,186 3,842
Long-term receivables - trade and other 1,265 418 339 508 1,2
Long-term receivables - finance 12,013 12,552 (539) (2)
Noncurrent deferred and refundable income taxes 2,213 2,755 115 (657) 4
Intangible assets 758 758
Goodwill 5,288 5,288
Other assets 4,593 3,882 1,892 (1,181) 5
Total assets $81,943 $49,797 $34,413 $(2,267)
Liabilities
Current liabilities:
Short-term borrowings $5,957 $3 $5,954
$ -
Accounts payable 8,689 8,657 294 (262) 6
Accrued expenses 4,080 3,687 393
Accrued wages, salaries and employee benefits 2,313 2,264 49
Customer advances 1,860 1,860
Dividends payable 620 620
Other current liabilities 2,690 2,215 635 (160) 4,7
Long-term debt due within one year 5,322 120 5,202
Total current liabilities 31,531 19,426 12,527 (422)
Long-term debt due after one year 25,714 9,529 16,216 (31) 8
Liability for postemployment benefits 4,203 4,203
Other liabilities 4,604 3,677 1,638 (711) 4
Total liabilities 66,052 36,835 30,381 (1,164)
Shareholders' equity
Common stock 6,560 6,560 905 (905) 9
Treasury stock (31,748) (31,748)
Profit employed in the business 43,514 39,435 4,068 11 9
Accumulated other comprehensive income (loss) (2,457) (1,310) (1,147)
Noncontrolling interests 22 25 206 (209) 9
Total shareholders' equity 15,891 12,962 4,032 (1,103)
Total liabilities and shareholders' equity $81,943 $49,797 $34,413 $(2,267)
1
Elimination of receivables between ME&T and Financial Products.
2 Reclassification of ME&T's trade receivables purchased by Financial Products and Financial Products'
wholesale inventory receivables.
3
Elimination of ME&T's insurance premiums that are prepaid to Financial Products.
4 Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.
5
Elimination of other intercompany assets between ME&T and Financial Products.
6
Elimination of payables between ME&T and Financial Products.
7
Elimination of prepaid insurance in Financial Products' other liabilities.
8
Elimination of debt between ME&T and Financial Products.
9
Eliminations associated with ME&T's investments in Financial Products' subsidiaries.
Caterpillar Inc.
Supplemental Data for Cash Flow
For the Twelve Months Ended December 31, 2023
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy &
Transportation Products Adjustments
Cash flow from operating activities:
Profit of consolidated and affiliated companies $10,332 $9,995 $686 $(349) 1,5
Adjustments for non-cash items:
Depreciation and amortization 2,144 1,361 783
Actuarial (gain) loss on pension and postretirement benefits (97) (97)
Provision (benefit) for deferred income taxes (592) (576) (16)
Loss on divestiture 572 572
Other 375 444 (577) 508 (2)
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other (437) (367) 61 (131) 2,3
Inventories (364) (360) (4) (2)
Accounts payable (754) (836) 41 41 (2)
Accrued expenses 796 690 106
Accrued wages, salaries and employee benefits 486 474 12
Customer advances 80 78 2
Other assets - net (95) 94 (110) (79) (2)
Other liabilities - net 439 216 118 105 (2)
Net cash provided by (used for) operating activities 12,885 11,688 1,106 91
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others (1,597) (1,624) (22) 49 (2)
Expenditures for equipment leased to others (1,495) (39) (1,466) 10 (2)
Proceeds from disposals of leased assets and property, plant and equipment 781 55 781 (55) (2)
Additions to finance receivables (15,161) (17,321) 2,160 (3)
Collections of finance receivables 14,034 15,634 (1,600) (3)
Net intercompany purchased receivables - 1,080 (1,080) (3)
Proceeds from sale of finance receivables 63 63
Net intercompany borrowings - 10 (10) 4
Investments and acquisitions (net of cash acquired) (75) (75)
Proceeds from sale of businesses and investments (net of cash sold) (4) (4)
Proceeds from maturities and sale of securities 1,891 1,642 249
Investments in securities (4,405) (3,982) (423)
Other - net 97 106 (9)
Net cash provided by (used for) investing activities (5,871) (3,921) (1,424) (526)
Cash flow from financing activities:
Dividends paid (2,563) (2,563) (425) 425 5
Common stock issued, including treasury shares reissued 12 12
Common shares repurchased (4,975) (4,975)
Net intercompany borrowings - (10) 10 4
Proceeds from debt issued > 90 days 8,257 8,257
Payments on debt > 90 days (6,318) (106) (6,212)
Short-term borrowings - net < 90 days (1,345) (3) (1,342)
Net cash provided by (used for) financing activities (6,932) (7,645) 278 435
Effect of exchange rate changes on cash (110) (60) (50)
Increase (decrease) in cash, cash equivalents and restricted cash (28) 62 (90)
Cash, cash equivalents and restricted cash at beginning of period 7,013 6,049 964
Cash, cash equivalents and restricted cash at end of period $6,985 $6,111 $874
$ -
1 Elimination of equity profit earned from Financial Products' subsidiaries partially owned by ME&T
subsidiaries.
2 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated
reporting.
3 Reclassification of Financial Products' cash flow activity from investing to operating for receivables that
arose from the sale of inventory.
4
Elimination of net proceeds and payments to/from ME&T and Financial Products.
5
Elimination of dividend activity between Financial Products and ME&T.
Caterpillar Inc.
Supplemental Data for Cash Flow
For the Twelve Months Ended December 31, 2022
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy &
Transportation Products Adjustments
Cash flow from operating activities:
Profit of consolidated and affiliated companies $6,704 $6,531 $655 $(482) 1,5
Adjustments for non-cash items:
Depreciation and amortization 2,219 1,439 780
Actuarial (gain) loss on pension and postretirement benefits (606) (606)
Provision (benefit) for deferred income taxes (377) (368) (9)
Provision (benefit) for deferred income taxes
Goodwill impairment charge 925 925
Other 701 452 (205) 454 (2)
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other (220) (390) 143 27 2,3
Inventories (2,589) (2,572) (17) (2)
Accounts payable 798 811 82 (95) (2)
Accrued expenses 317 274 43
Accrued wages, salaries and employee benefits 90 97 (7)
Customer advances 768 769 (1)
Other assets - net (210) (183) (35) 8 (2)
Other liabilities - net (754) (821) 71 (4) (2)
Net cash provided by (used for) operating activities 7,766 6,358 1,517 (109)
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others (1,296) (1,279) (20) 3 (2)
Expenditures for equipment leased to others (1,303) (19) (1,310) 26 (2)
Proceeds from disposals of leased assets and property, plant and equipment 830 78 764 (12) (2)
Additions to finance receivables (13,239) (14,223) 984 (3)
Collections of finance receivables 13,177 14,052 (875) (3)
Net intercompany purchased receivables - 492 (492) (3)
Proceeds from sale of finance receivables 57 57
Net intercompany borrowings - 9 (9) 4
Investments and acquisitions (net of cash acquired) (88) (88)
Proceeds from sale of businesses and investments (net of cash sold) 1 1
Proceeds from maturities and sale of securities 2,383 1,948 435
Investments in securities (3,077) (2,549) (528)
Other - net 14 98 (84)
Net cash provided by (used for) investing activities (2,541) (1,810) (356) (375)
Cash flow from financing activities:
Dividends paid (2,440) (2,440) (475) 475 5
Common stock issued, including treasury shares reissued 51 51
Common shares repurchased (4,230) (4,230)
Net intercompany borrowings - (9) 9 4
Proceeds from debt issued > 90 days 6,674 6,674
Payments on debt > 90 days (7,728) (25) (7,703)
Short-term borrowings - net < 90 days 402 (138) 540
Other - net (10) (10)
Net cash provided by (used for) financing activities (7,281) (6,801) (964) 484
Effect of exchange rate changes on cash (194) (131) (63)
Increase (decrease) in cash, cash equivalents and restricted cash (2,250) (2,384) 134
Cash, cash equivalents and restricted cash at beginning of period 9,263 8,433 830
Cash, cash equivalents and restricted cash at end of period $7,013 $6,049 $964
$ -
1 Elimination of equity profit earned from Financial Products' subsidiaries partially owned by ME&T
subsidiaries.
2 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated
reporting.
3 Reclassification of Financial Products' cash flow activity from investing to operating for receivables that
arose from the sale of inventory.
4
Elimination of net proceeds and payments to/from ME&T and Financial Products.
5
Elimination of dividend activity between Financial Products and ME&T.
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SOURCE Caterpillar Inc.
