Caterpillar Reports Second-Quarter 2024 Results
-- Second-quarter 2024 profit per share of $5.48; adjusted profit per share
of $5.99
-- Enterprise operating cash flow was $3.0 billion in the second quarter of
2024
-- Deployed $2.5 billion of cash for share repurchases and dividends in the
second quarter
Second Quarter
($ in billions except profit per share) 2024 2023
Sales and Revenues $16.7 $17.3
Profit Per Share $5.48 $5.67
Adjusted Profit Per Share $5.99 $5.55
Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 13 and 14.
IRVING, Texas, Aug. 6, 2024 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced second-quarter 2024 results. Sales and revenues for the second quarter of 2024 were $16.7 billion, a 4% decrease compared with $17.3 billion in the second quarter of 2023. The decrease was primarily due to lower sales volume, partially offset by favorable price realization.
Operating profit margin was 20.9% for the second quarter of 2024, compared with 21.1% for the second quarter of 2023. Adjusted operating profit margin was 22.4% for the second quarter of 2024, compared with 21.3% for the second quarter of 2023. Second-quarter 2024 profit per share was $5.48, compared with second-quarter 2023 profit per share of $5.67. Adjusted profit per share in the second quarter of 2024 was $5.99, compared with second-quarter 2023 adjusted profit per share of $5.55. For the second quarter of 2024 and 2023, adjusted operating profit margin and adjusted profit per share excluded restructuring costs. Second-quarter 2023 adjusted profit per share also excluded a discrete tax benefit to adjust deferred tax balances.
For the second quarter of 2024, enterprise operating cash flow was $3.0 billion, and the company ended the second quarter with $4.3 billion of enterprise cash. In the quarter, the company deployed $1.8 billion of cash for repurchases of Caterpillar common stock and $0.6 billion of cash for dividends.
"I'd like to thank our team for delivering another strong quarter, including higher adjusted operating profit margin, record adjusted profit per share and robust ME&T free cash flow," said Chairman and CEO Jim Umpleby. "Our results continue to reflect the benefit of the diversity of our end markets as well as the disciplined execution of our strategy for long-term profitable growth."
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues Comparison
Second Quarter 2024 vs. Second Quarter 2023
To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar second-quarter 2024 earnings.
The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the second quarter of 2023 (at left) and the second quarter of 2024 (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 second quarter of 2024 were $16.689 billion, a decrease of $629 million, or 4%, compared with $17.318 billion in the second quarter of 2023. The decrease was primarily due to lower sales volume of $1.206 billion, partially offset by favorable price realization of $578 million. The decrease in sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased during the second quarter of 2024, compared with an increase during the second quarter of 2023.
In the three primary segments, sales were lower in Construction Industries and Resource Industries and higher in Energy & Transportation.
Sales and Revenues by Segment
(Millions of dollars) Second Sales Price Currency Inter- Second
$ %
Quarter Segment / Quarter
2023 Volume Realization Other 2024 Change Change
Construction Industries $7,154 $(588) $178 $(55) $(6) $6,683 $(471) (7 %)
Resource Industries 3,563 (475) 133 (9) (6) 3,206 (357) (10 %)
Energy & Transportation 7,219 (129) 264 (12) (5) 7,337 118 2 %
All Other Segment 116 (7) 3 (1) (3) 108 (8) (7 %)
Corporate Items and Eliminations (1,507) (7) 20 (1,494) 13
Machinery, Energy & Transportation 16,545 (1,206) 578 (77) 15,840 (705) (4 %)
Financial Products Segment 923 81 1,004 81 9 %
Corporate Items and Eliminations (150) (5) (155) (5)
Financial Products Revenues 773 76 849 76 10 %
Consolidated Sales and Revenues $17,318 $(1,206) $578 $(77) $76 $16,689 $(629) (4 %)
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
Second Quarter 2024
---
Construction Industries $3,957 - % $677 20 % $1,047 (27 %) $975 (15 %) $6,656 (7 %) $27 (18 %) $6,683 (7 %)
Resource Industries 1,206 (10 %) 524 (3 %) 442 (15 %) 950 (12 %) 3,122 (10 %) 84 (7 %) 3,206 (10 %)
Energy & Transportation 3,308 6 % 439 (4 %) 1,421 (4 %) 912 1 % 6,080 2 % 1,257 - % 7,337 2 %
All Other Segment 13 (19 %) - % 4 - % 12 (14 %) 29 (15 %) 79 (4 %) 108 (7 %)
Corporate Items and Eliminations (20) (1) (21) (5) (47) (1,447) (1,494)
Machinery, Energy & Transportation 8,464 1 % 1,639 5 % 2,893 (16 %) 2,844 (9 %) 15,840 (4 %) - % 15,840 (4 %)
Financial Products Segment 668 13 % 101 (1 %) 124 5 % 111 1 % 1,004 9 % - % 1,004 9 %
Corporate Items and Eliminations (89) (21) (20) (25) (155) (155)
Financial Products Revenues 579 14 % 80 (1 %) 104 7 % 86 (1 %) 849 10 % - % 849 10 %
Consolidated Sales and Revenues $9,043 1 % $1,719 5 % $2,997 (15 %) $2,930 (9 %) $16,689 (4 %)
$ - - % $16,689 (4 %)
Second Quarter 2023
---
Construction Industries $3,968 $566 $1,438 $1,149 $7,121 $33 $7,154
Resource Industries 1,342 538 517 1,076 3,473 90 3,563
Energy & Transportation 3,120 459 1,479 899 5,957 1,262 7,219
All Other Segment 16 4 14 34 82 116
Corporate Items and Eliminations (32) (2) (2) (4) (40) (1,467) (1,507)
Machinery, Energy & Transportation 8,414 1,561 3,436 3,134 16,545 16,545
Financial Products Segment 593 102 118 110 923 923
Corporate Items and Eliminations (85) (21) (21) (23) (150) (150)
Financial Products Revenues 508 81 97 87 773 773
Consolidated Sales and Revenues $8,922 $1,642 $3,533 $3,221 $17,318
$ - $17,318
Consolidated Operating Profit
Consolidated Operating Profit Comparison
Second Quarter 2024 vs. Second Quarter 2023
To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar second-quarter 2024 earnings.
The chart above graphically illustrates reasons for the change in consolidated operating profit between the second quarter of 2023 (at left) and the second quarter of 2024 (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 second quarter of 2024 was $3.482 billion, a decrease of $170 million, or 5%, compared with $3.652 billion in the second quarter of 2023. Favorable price realization of $578 million was more than offset by the profit impact of lower sales volume of $431 million, higher restructuring costs of $227 million and higher selling, general and administrative (SG&A) and research and development (R&D) expenses of $79 million. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives.
In the second quarter of 2024, restructuring costs increased primarily due to the divestiture of two non-U.S. entities.
Profit (Loss) by Segment
(Millions of dollars) Second Quarter Second Quarter
$ %
2024 2023
Change Change
Construction Industries $1,741 $1,803 $(62) (3 %)
Resource Industries 718 740 (22) (3 %)
Energy & Transportation 1,525 1,269 256 20 %
All Other Segment 21 10 11 110 %
Corporate Items and Eliminations (344) (272) (72)
Machinery, Energy & Transportation 3,661 3,550 111 3 %
Financial Products Segment 227 240 (13) (5 %)
Corporate Items and Eliminations (243) 17 (260)
Financial Products (16) 257 (273) (106 %)
Consolidating Adjustments (163) (155) (8)
Consolidated Operating Profit $3,482 $3,652 $(170) (5 %)
Other Profit/Loss and Tax Items
-- Other income (expense) in the second quarter of 2024 was income of $155
million, compared with income of $127 million in the second quarter of
2023. The change was primarily driven by favorable impacts from
commodity hedges.
-- The effective tax rate for the second quarter of 2024 was 23.9% compared
to 20.6% for the second quarter of 2023. Excluding the discrete items
discussed below, the second quarter 2024 estimated annual tax rate was
22.5% compared with 23.0% for the second quarter of 2023.The 2024
estimated annual tax rate excludes the impact of second-quarter losses
of $228 million for the divestiture of two non-U.S. entities with no
related tax benefit. In addition, a discrete tax benefit of $4 million
was recorded in the second quarter of 2024 for the settlement of
stock-based compensation awards with associated tax deductions in excess
of cumulative U.S. GAAP compensation expense. In the second quarter of
2023, the company recorded a discrete tax benefit of $88 million due to
a change in the valuation allowance for certain deferred tax
assets.Please see a reconciliation of GAAP to non-GAAP financial
measures in the appendix on pages 13 and 14.
CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
Second Sales Price Currency Inter- Second
$ %
Quarter 2023 Volume Realization Segment Quarter 2024
Change Change
Total Sales $7,154 $(588) $178 $(55) $(6) $6,683 $(471) (7 %)
Sales by Geographic Region
Second Second
$ %
Quarter 2024 Quarter 2023
Change Change
North America $3,957 $3,968 $(11) - %
Latin America 677 566 111 20 %
EAME 1,047 1,438 (391) (27 %)
Asia/Pacific 975 1,149 (174) (15 %)
External Sales 6,656 7,121 (465) (7 %)
Inter-segment 27 33 (6) (18 %)
Total Sales $6,683 $7,154 $(471) (7 %)
Segment Profit
Second Second %
Quarter 2024 Quarter 2023
Change Change
Segment Profit $1,741 $1,803 $(62) (3 %)
Segment Profit Margin 26.1 % 25.2 % 0.9 pts
Construction Industries' total sales were $6.683 billion in the second quarter of 2024, a decrease of $471 million, or 7%, compared with $7.154 billion in the second quarter of 2023. The decrease was primarily due to lower sales volume of $588 million, partially offset by favorable price realization of $178 million. The decrease in sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory remained about flat during the second quarter of 2024, compared to an increase during the second quarter of 2023.
-- Sales in North America were about flat. Lower sales volume was offset by
favorable price realization. Lower sales volume was mainly driven by
lower sales of equipment to end users.
-- Sales increased in Latin America mainly due to higher sales volume.
Higher sales volume was primarily driven by the impact from changes in
dealer inventories. Dealer inventory increased during the second quarter
of 2024, compared with a decrease during the second quarter of 2023.
-- In EAME, sales decreased primarily due to lower sales volume. Lower
sales volume was mainly driven by the impact from changes in dealer
inventories. Dealer inventory decreased during the second quarter of
2024, compared with an increase during the second quarter of 2023.
-- Sales decreased in Asia/Pacific mainly due to lower sales volume and
unfavorable currency impacts primarily related to the Japanese yen.
Lower sales volume was mainly driven by the impact from changes in
dealer inventories. Dealer inventory decreased during the second quarter
of 2024, compared with an increase during the second quarter of 2023.
Construction Industries' segment profit was $1.741 billion in the second quarter of 2024, a decrease of $62 million, or 3%, compared with $1.803 billion in the second quarter of 2023. The decrease was mainly due to the profit impact of lower sales volume of $288 million and higher SG&A/R&D expenses of $30 million, partially offset by favorable price realization of $178 million, favorable manufacturing costs of $62 million and favorable other segment items of $16 million. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives. Favorable manufacturing costs largely reflected lower material costs. Favorable other segment items primarily consisted of favorable currency impacts.
RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
Second Sales Price Currency Inter- Second
$ %
Quarter 2023 Volume Realization Segment Quarter 2024
Change Change
Total Sales $3,563 $(475) $133 $(9) $(6) $3,206 $(357) (10 %)
Sales by Geographic Region
Second Second
$ %
Quarter 2024 Quarter 2023
Change Change
North America $1,206 $1,342 $(136) (10 %)
Latin America 524 538 (14) (3 %)
EAME 442 517 (75) (15 %)
Asia/Pacific 950 1,076 (126) (12 %)
External Sales 3,122 3,473 (351) (10 %)
Inter-segment 84 90 (6) (7 %)
Total Sales $3,206 $3,563 $(357) (10 %)
Segment Profit
Second Second %
Quarter 2024 Quarter 2023
Change Change
Segment Profit $718 $740 $(22) (3 %)
Segment Profit Margin 22.4 % 20.8 % 1.6 pts
Resource Industries' total sales were $3.206 billion in the second quarter of 2024, a decrease of $357 million, or 10%, compared with $3.563 billion in the second quarter of 2023. The decrease was primarily due to lower sales volume of $475 million, partially offset by favorable price realization of $133 million. The decrease in sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased more during the second quarter of 2024 than during the second quarter of 2023.
Resource Industries' segment profit was $718 million in the second quarter of 2024, a decrease of $22 million, or 3%, compared with $740 million in the second quarter of 2023. The decrease was mainly due to the profit impact of lower sales volume of $169 million, unfavorable other segment items of $16 million and higher SG&A/R&D expenses of $14 million, partially offset by favorable price realization of $133 million and favorable manufacturing costs of $44 million. Unfavorable other segment items primarily consisted of unfavorable currency impacts. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives. Favorable manufacturing costs largely reflected lower freight.
ENERGY & TRANSPORTATION
(Millions of dollars)
Segment Sales
Second Sales Price Currency Inter- Second
$ %
Quarter 2023 Volume Realization Segment Quarter 2024
Change Change
Total Sales $7,219 $(129) $264 $(12) $(5) $7,337 $118 2 %
Sales by Application
Second Second
$ %
Quarter 2024 Quarter 2023
Change Change
Oil and Gas $1,829 $1,760 $69 4 %
Power Generation 1,885 1,645 240 15 %
Industrial 1,045 1,318 (273) (21 %)
Transportation 1,321 1,234 87 7 %
External Sales 6,080 5,957 123 2 %
Inter-segment 1,257 1,262 (5) - %
Total Sales $7,337 $7,219 $118 2 %
Segment Profit
Second Second %
Quarter 2024 Quarter 2023
Change Change
Segment Profit $1,525 $1,269 $256 20 %
Segment Profit Margin 20.8 % 17.6 % 3.2 pts
Energy & Transportation's total sales were $7.337 billion in the second quarter of 2024, an increase of $118 million, or 2%, compared with $7.219 billion in the second quarter of 2023. Sales increased across all applications except Industrial. The increase in sales was primarily due to favorable price realization of $264 million, partially offset by lower sales volume of $129 million.
-- Oil and Gas - Sales increased for turbines and turbine-related services.
-- Power Generation - Sales increased in large reciprocating engines,
primarily data center applications. Turbines and turbine-related
services increased as well.
-- Industrial - Sales decreased in EAME and North America.
-- Transportation - Sales increased in rail services and marine.
Energy & Transportation's segment profit was $1.525 billion in the second quarter of 2024, an increase of $256 million, or 20%, compared with $1.269 billion in the second quarter of 2023. The increase was mainly due to favorable price realization of $264 million.
FINANCIAL PRODUCTS SEGMENT
(Millions of dollars)
Revenues by Geographic Region
Second Second
$ %
Quarter 2024 Quarter 2023
Change Change
North America $668 $593 $75 13 %
Latin America 101 102 (1) (1 %)
EAME 124 118 6 5 %
Asia/Pacific 111 110 1 1 %
Total Revenues $1,004 $923 $81 9 %
Segment Profit
Second Second %
Quarter 2024 Quarter 2023
Change Change
Segment Profit $227 $240 $(13) (5 %)
Financial Products' segment revenues were $1.004 billion in the second quarter of 2024, an increase of $81 million, or 9%, compared with $923 million in the second quarter of 2023. The increase was primarily due to a favorable impact from higher average financing rates across all regions of $50 million and a favorable impact from higher average earning assets driven by North America of $32 million.
Financial Products' segment profit was $227 million in the second quarter of 2024, a decrease of $13 million, or 5%, compared with $240 million in the second quarter of 2023. The decrease was mainly due to higher provision for credit losses at Cat Financial of $27 million and an increase in SG&A expenses of $15 million, partially offset by the absence of prior year unfavorable currency impacts of $14 million and a favorable impact from higher average earning assets of $12 million.
At the end of the second quarter of 2024, past dues at Cat Financial were 1.74%, compared with 2.15% at the end of the second quarter of 2023. Write-offs, net of recoveries, were $18 million for the second quarter of 2024, compared with $8 million for the second quarter of 2023. As of June 30, 2024, Cat Financial's allowance for credit losses totaled $254 million, or 0.89% of finance receivables, compared with $281 million, or 1.01% of finance receivables at March 31, 2024. The allowance for credit losses at year-end 2023 was $331 million, or 1.18% of finance receivables.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $587 million in the second quarter of 2024, an increase of $332 million from the second quarter of 2023, primarily driven by higher restructuring costs and higher corporate costs.
In the second quarter of 2024, restructuring costs increased primarily due to the divestiture of two non-U.S. entities.
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 Tuesday, Aug. 6, 2024.
iii. Information on non-GAAP financial measures is included in the appendix on pages 13 and 14.
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 Tuesday, Aug. 6, 2024, to discuss its 2024 second-quarter results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx.
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 three 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 two non-U.S. entities in 2024, (ii) other restructuring income/costs and (iii) certain deferred tax valuation allowance adjustments in 2023. 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 2024, excluding mark-to-market gains or losses for remeasurement of pension and other postemployment benefit plans.
Reconciliations of adjusted results to the most directly comparable GAAP measure are as follows:
(Dollars in millions except per share data) Operating Operating Profit Before Provision Profit Profit per
Profit Profit
Margin Taxes (Benefit) for Share
Income Taxes
Three Months Ended June 30, 2024
- U.S. GAAP $3,482 20.9 % $3,500 $836 $2,681 $5.48
Restructuring costs - divestiture of two non-U.S. entities 228 1.3 % 228 228 0.47
Other restructuring (income) costs 30 0.2 % 30 6 24 0.04
Three Months Ended June 30, 2024 - Adjusted $3,740 22.4 % $3,758 $842 $2,933 $5.99
Three Months Ended June 30, 2023
- U.S. GAAP $3,652 21.1 % $3,652 $752 $2,922 $5.67
Other restructuring (income) costs 31 0.2 % 31 6 25 0.05
Deferred tax valuation allowance adjustments - % 88 (88) (0.17)
Three Months Ended June 30, 2023 - Adjusted $3,683 21.3 % $3,683 $846 $2,859 $5.55
The company believes it is important to separately disclose the annual effective tax rate, excluding discrete items for the results to be meaningful to readers. The annual effective tax rate is discussed using non-GAAP financial measures that exclude the effects of amounts associated with discrete items recorded fully in the quarter they occur. For the three months ended June 30, 2024, and 2023, these items consist of (i) restructuring costs related to the divestiture of two non-U.S. entities in 2024, (ii) certain deferred tax valuation allowance adjustments in 2023 and (iii) settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. The company believes the non-GAAP measures will provide investors with useful perspective on underlying business results and trends and aids with assessing the company's period-over-period results.
A reconciliation of the effective tax rate to annual effective tax rate, excluding discrete items is below:
(Dollars in millions) Profit Before Provision Effective
Tax
Taxes (Benefit) for Rate
Income Taxes
Three Months Ended June 30, 2024
- U.S. GAAP $3,500 $836 23.9 %
Restructuring costs - divestiture of two non-U.S. entities 228
Excess stock-based compensation 4
Annual effective tax rate, excluding discrete items $3,728 $840 22.5 %
Excess stock-based compensation (4)
Other restructuring (income) costs 30 6
Three Months Ended June 30, 2024 - Adjusted $3,758 $842
Three Months Ended June 30, 2023
- U.S. GAAP $3,652 $752 20.6 %
Deferred tax valuation allowance adjustments 88
Annual effective tax rate, excluding discrete items $3,652 $840 23.0 %
Other restructuring (income) costs 31 6
Three Months Ended June 30, 2023 - Adjusted $3,683 $846
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 16 to 26 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 Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Sales and revenues:
Sales of Machinery, Energy & Transportation $15,840 $16,545 $30,800 $31,644
Revenues of Financial Products 849 773 1,688 1,536
Total sales and revenues 16,689 17,318 32,488 33,180
Operating costs:
Cost of goods sold 10,150 11,065 19,812 21,168
Selling, general and administrative expenses 1,652 1,528 3,229 2,991
Research and development expenses 535 528 1,055 1,000
Interest expense of Financial Products 314 245 612 462
Other operating (income) expenses 556 300 779 1,176
Total operating costs 13,207 13,666 25,487 26,797
Operating profit 3,482 3,652 7,001 6,383
Interest expense excluding Financial Products 137 127 280 256
Other income (expense) 155 127 311 159
Consolidated profit before taxes 3,500 3,652 7,032 6,286
Provision (benefit) for income taxes 836 752 1,524 1,460
Profit of consolidated companies 2,664 2,900 5,508 4,826
Equity in profit (loss) of unconsolidated affiliated companies 17 24 27 40
Profit of consolidated and affiliated companies 2,681 2,924 5,535 4,866
Less: Profit (loss) attributable to noncontrolling interests - 2 (2) 1
Profit (1) $2,681 $2,922 $5,537 $4,865
Profit per common share $5.50 $5.70 $11.28 $9.46
Profit per common share - diluted (2) $5.48 $5.67 $11.23 $9.41
Weighted-average common shares outstanding (millions)
- Basic 487.2 512.9 490.7 514.3
- Diluted (2) 489.5 515.0 493.3 517.1
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)
June 30, December 31,
2024 2023
Assets
Current assets:
Cash and cash equivalents $4,341 $6,978
Receivables - trade and other 9,421 9,310
Receivables - finance 9,516 9,510
Prepaid expenses and other current assets 2,736 4,586
Inventories 17,082 16,565
Total current assets 43,096 46,949
Property, plant and equipment - net 12,582 12,680
Long-term receivables - trade and other 1,181 1,238
Long-term receivables - finance 12,797 12,664
Noncurrent deferred and refundable income taxes 2,920 2,816
Intangible assets 488 564
Goodwill 5,264 5,308
Other assets 5,008 5,257
Total assets $83,336 $87,476
Liabilities
Current liabilities:
Short-term borrowings:
-- Machinery, Energy & Transportation
$ -
$ -
-- Financial Products 5,298 4,643
Accounts payable 7,575 7,906
Accrued expenses 4,947 4,958
Accrued wages, salaries and employee benefits 1,677 2,757
Customer advances 2,324 1,929
Dividends payable 684 649
Other current liabilities 2,882 3,123
Long-term debt due within one year:
-- Machinery, Energy & Transportation 45 1,044
-- Financial Products 8,132 7,719
Total current liabilities 33,564 34,728
Long-term debt due after one year:
-- Machinery, Energy & Transportation 8,537 8,579
-- Financial Products 15,299 15,893
Liability for postemployment benefits 3,993 4,098
Other liabilities 4,807 4,675
Total liabilities 66,200 67,973
Shareholders' equity
Common stock 5,517 6,403
Treasury stock (41,612) (36,339)
Profit employed in the business 55,455 51,250
Accumulated other comprehensive income (loss) (2,230) (1,820)
Noncontrolling interests 6 9
Total shareholders' equity 17,136 19,503
Total liabilities and shareholders' equity $83,336 $87,476
Caterpillar Inc.
Condensed Consolidated Statement of Cash Flow
(Unaudited)
(Millions of dollars)
Six Months Ended
June 30,
2024 2023
Cash flow from operating activities:
Profit of consolidated and affiliated companies $5,535 $4,866
Adjustments to reconcile profit to net cash provided by operating activities:
Depreciation and amortization 1,055 1,074
Provision (benefit) for deferred income taxes (133) (355)
(Gain) loss on divestiture 164 572
Other 105 106
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other (245) (465)
Inventories (643) (1,560)
Accounts payable (21) 34
Accrued expenses 69 381
Accrued wages, salaries and employee benefits (1,056) (562)
Customer advances 341 284
Other assets - net 20 81
Other liabilities - net (118) 366
Net cash provided by (used for) operating activities 5,073 4,822
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others (841) (683)
Expenditures for equipment leased to others (614) (774)
Proceeds from disposals of leased assets and property, plant and equipment 342 368
Additions to finance receivables (7,446) (6,973)
Collections of finance receivables 6,743 6,759
Proceeds from sale of finance receivables 37 29
Investments and acquisitions (net of cash acquired) (32) (20)
Proceeds from sale of businesses and investments (net of cash sold) (61) (14)
Proceeds from maturities and sale of securities 2,574 463
Investments in securities (523) (1,078)
Other - net 57 41
Net cash provided by (used for) investing activities 236 (1,882)
Cash flow from financing activities:
Dividends paid (1,283) (1,238)
Common stock issued, including treasury shares reissued 8 (22)
Payments to purchase common stock (6,275) (1,829)
Proceeds from debt issued (original maturities greater than three months) 4,151 3,299
Payments on debt (original maturities greater than three months) (5,217) (2,303)
Short-term borrowings - net (original maturities three months or less) 687 (406)
Net cash provided by (used for) financing activities (7,929) (2,499)
Effect of exchange rate changes on cash (17) (60)
Increase (decrease) in cash, cash equivalents and restricted cash (2,637) 381
Cash, cash equivalents and restricted cash at beginning of period 6,985 7,013
Cash, cash equivalents and restricted cash at end of period $4,348 $7,394
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 June 30, 2024
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy &
Transportation Products Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation $15,840 $15,840
$ -
$ -
Revenues of Financial Products 849 1,043 (194) (1)
Total sales and revenues 16,689 15,840 1,043 (194)
Operating costs:
Cost of goods sold 10,150 10,152 (2) (2)
Selling, general and administrative expenses 1,652 1,449 185 18 (2)
Research and development expenses 535 535
Interest expense of Financial Products 314 314
Other operating (income) expenses 556 43 560 (47) (2)
Total operating costs 13,207 12,179 1,059 (31)
Operating profit 3,482 3,661 (16) (163)
Interest expense excluding Financial Products 137 137
Other income (expense) 155 (21) 13 163 (3)
Consolidated profit before taxes 3,500 3,503 (3)
Provision (benefit) for income taxes 836 786 50
Profit of consolidated companies 2,664 2,717 (53)
Equity in profit (loss) of unconsolidated affiliated companies 17 17
Profit of consolidated and affiliated companies 2,681 2,734 (53)
Less: Profit (loss) attributable to noncontrolling interests -
Profit 4 $2,681 $2,734 $(53)
$ -
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
Profit attributable to common shareholders.
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended June 30, 2023
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy &
Transportation Products Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation $16,545 $16,545
$ -
$ -
Revenues of Financial Products 773 955 (182) (1)
Total sales and revenues 17,318 16,545 955 (182)
Operating costs:
Cost of goods sold 11,065 11,068 (3) (2)
Selling, general and administrative expenses 1,528 1,389 143 (4) (2)
Research and development expenses 528 528
Interest expense of Financial Products 245 245
Other operating (income) expenses 300 10 310 (20) (2)
Total operating costs 13,666 12,995 698 (27)
Operating profit 3,652 3,550 257 (155)
Interest expense excluding Financial Products 127 127
Other income (expense) 127 (10) (18) 155 (3)
Consolidated profit before taxes 3,652 3,413 239
Provision (benefit) for income taxes 752 691 61
Profit of consolidated companies 2,900 2,722 178
Equity in profit (loss) of unconsolidated affiliated companies 24 24
Profit of consolidated and affiliated companies 2,924 2,746 178
Less: Profit (loss) attributable to noncontrolling interests 2 (1) 3
Profit 4 $2,922 $2,747 $175
$ -
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
Profit attributable to common shareholders
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Six Months Ended June 30, 2024
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy &
Transportation Products Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation $30,800 $30,800
$ -
$ -
Revenues of Financial Products 1,688 2,072 (384) (1)
Total sales and revenues 32,488 30,800 2,072 (384)
Operating costs:
Cost of goods sold 19,812 19,816 (4) (2)
Selling, general and administrative expenses 3,229 2,862 363 4 (2)
Research and development expenses 1,055 1,055
Interest expense of Financial Products 612 612
Other operating (income) expenses 779 2 845 (68) (2)
Total operating costs 25,487 23,735 1,820 (68)
Operating profit 7,001 7,065 252 (316)
Interest expense excluding Financial Products 280 280
Other income (expense) 311 (41) 36 316 (3)
Consolidated profit before taxes 7,032 6,744 288
Provision (benefit) for income taxes 1,524 1,401 123
Profit of consolidated companies 5,508 5,343 165
Equity in profit (loss) of unconsolidated affiliated companies 27 27
Profit of consolidated and affiliated companies 5,535 5,370 165
Less: Profit (loss) attributable to noncontrolling interests (2) (3) 1
Profit 4 $5,537 $5,373 $164
$ -
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
Profit attributable to common shareholders.
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Six Months Ended June 30, 2023
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy &
Transportation Products Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation $31,644 $31,644
$ -
$ -
Revenues of Financial Products 1,536 1,890 (354) (1)
Total sales and revenues 33,180 31,644 1,890 (354)
Operating costs:
Cost of goods sold 21,168 21,172 (4) (2)
Selling, general and administrative expenses 2,991 2,709 301 (19) (2)
Research and development expenses 1,000 1,000
Interest expense of Financial Products 462 462
Other operating (income) expenses 1,176 599 613 (36) (2)
Total operating costs 26,797 25,480 1,376 (59)
Operating profit 6,383 6,164 514 (295)
Interest expense excluding Financial Products 256 256
Other income (expense) 159 (24) (37) 220 (3)
Consolidated profit before taxes 6,286 5,884 477 (75)
Provision (benefit) for income taxes 1,460 1,339 121
Profit of consolidated companies 4,826 4,545 356 (75)
Equity in profit (loss) of unconsolidated affiliated companies 40 43 (3) 4
Profit of consolidated and affiliated companies 4,866 4,588 356 (78)
Less: Profit (loss) attributable to noncontrolling interests 1 (1) 5 (3) 5
Profit 6 $4,865 $4,589 $351 $(75)
1
Elimination of Financial Products' revenues earned from ME&T.
2
Elimination of net expenses recorded by ME&T paid to Financial Products.
3 Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and
Financial Products as well as dividends paid by Financial Products to ME&T.
4 Elimination of equity profit (loss) earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.
5 Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T
subsidiaries.
6
Profit attributable to common shareholders.
Caterpillar Inc.
Supplemental Data for Financial Position
At June 30, 2024
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated Machinery, Financial Consolidating
Energy & Products Adjustments
Transportation
Assets
Current assets:
Cash and cash equivalents $4,341 $3,481 $860
$ -
Receivables - trade and other 9,421 3,672 643 5,106 1,2
Receivables - finance 9,516 14,826 (5,310) (2)
Prepaid expenses and other current assets 2,736 2,549 390 (203) (3)
Inventories 17,082 17,082
Total current assets 43,096 26,784 16,719 (407)
Property, plant and equipment - net 12,582 8,653 3,929
Long-term receivables - trade and other 1,181 501 55 625 1,2
Long-term receivables - finance 12,797 13,490 (693) (2)
Noncurrent deferred and refundable income taxes 2,920 3,433 120 (633) 4
Intangible assets 488 488
Goodwill 5,264 5,264
Other assets 5,008 3,934 2,112 (1,038) 5
Total assets $83,336 $49,057 $36,425 $(2,146)
Liabilities
Current liabilities:
Short-term borrowings $5,298
$ - $5,298
$ -
Accounts payable 7,575 7,523 274 (222) 6,7
Accrued expenses 4,947 4,315 632
Accrued wages, salaries and employee benefits 1,677 1,637 40
Customer advances 2,324 2,303 3 18 7
Dividends payable 684 684
Other current liabilities 2,882 2,365 744 (227) 4,8
Long-term debt due within one year 8,177 45 8,132
Total current liabilities 33,564 18,872 15,123 (431)
Long-term debt due after one year 23,836 8,605 15,299 (68) 9
Liability for postemployment benefits 3,993 3,993
Other liabilities 4,807 3,931 1,550 (674) 4
Total liabilities 66,200 35,401 31,972 (1,173)
Shareholders' equity
Common stock 5,517 5,517 905 (905) 10
Treasury stock (41,612) (41,612)
Profit employed in the business 55,455 50,824 4,621 10 10
Accumulated other comprehensive income (loss) (2,230) (1,082) (1,148)
Noncontrolling interests 6 9 75 (78) 10
Total shareholders' equity 17,136 13,656 4,453 (973)
Total liabilities and shareholders' equity $83,336 $49,057 $36,425 $(2,146)
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 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, 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 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 Cash Flow
For the Six Months Ended June 30, 2024
(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 $5,535 $5,370 $165
$ -
Adjustments to reconcile profit to net cash provided by operating activities:
Depreciation and amortization 1,055 662 393
Provision (benefit) for deferred income taxes (133) (81) (52)
(Gain) loss on divestiture 164 (46) 210
Other 105 104 (280) 281 (1)
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other (245) 195 96 (536) 1,2
Inventories (643) (638) (5) (1)
Accounts payable (21) 6 (58) 31 (1)
Accrued expenses 69 (41) 110
Accrued wages, salaries and employee benefits (1,056) (1,035) (21)
Customer advances 341 341
Other assets - net 20 (108) 5 123 (1)
Other liabilities - net (118) (156) 147 (109) (1)
Net cash provided by (used for) operating activities 5,073 4,573 715 (215)
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others (841) (831) (13) 3 (1)
Expenditures for equipment leased to others (614) (10) (612) 8 (1)
Proceeds from disposals of leased assets and property, plant and equipment 342 13 335 (6) (1)
Additions to finance receivables (7,446) (7,951) 505 (2)
Collections of finance receivables 6,743 7,176 (433) (2)
Net intercompany purchased receivables - (138) 138 (2)
Proceeds from sale of finance receivables 37 37
Net intercompany borrowings - 9 (9) (3)
Investments and acquisitions (net of cash acquired) (32) (32)
Proceeds from sale of businesses and investments (net of cash sold) (61) 92 (153)
Proceeds from maturities and sale of securities 2,574 2,402 172
Investments in securities (523) (300) (223)
Other - net 57 47 10
Net cash provided by (used for) investing activities 236 1,381 (1,351) 206
Cash flow from financing activities:
Dividends paid (1,283) (1,283)
Common stock issued, including treasury shares reissued 8 8
Payments to purchase common stock (6,275) (6,275)
Net intercompany borrowings - (9) 9 (3)
Proceeds from debt issued (original maturities greater than three months) 4,151 4,151
Payments on debt (original maturities greater than three months) (5,217) (1,014) (4,203)
Short-term borrowings - net (original maturities three months or less) 687 687
Net cash provided by (used for) financing activities (7,929) (8,573) 635 9
Effect of exchange rate changes on cash (17) (7) (10)
Increase (decrease) in cash, cash equivalents and restricted cash (2,637) (2,626) (11)
Cash, cash equivalents and restricted cash at beginning of period 6,985 6,111 874
Cash, cash equivalents and restricted cash at end of period $4,348 $3,485 $863
$ -
1 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated
reporting.
2 Reclassification of Financial Products' cash flow activity from investing to operating for receivables that
arose from the sale of inventory.
3
Elimination of net proceeds and payments to/from ME&T and Financial Products.
Caterpillar Inc.
Supplemental Data for Cash Flow
For the Six Months Ended June 30, 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 $4,866 $4,588 $356 $(78) 1,5
Adjustments to reconcile profit to net cash provided by operating activities:
Depreciation and amortization 1,074 690 384
Provision (benefit) for deferred income taxes (355) (338) (17)
(Gain) loss on divestiture 572 572
Other 106 198 (368) 276 (2)
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other (465) 132 57 (654) 2,3
Inventories (1,560) (1,558) (2) (2)
Accounts payable 34 (28) 2 60 (2)
Accrued expenses 381 318 63
Accrued wages, salaries and employee benefits (562) (550) (12)
Customer advances 284 283 1
Other assets - net 81 149 5 (73) (2)
Other liabilities - net 366 211 71 84 (2)
Net cash provided by (used for) operating activities 4,822 4,667 542 (387)
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others (683) (678) (11) 6 (2)
Expenditures for equipment leased to others (774) (7) (772) 5 (2)
Proceeds from disposals of leased assets and property, plant and equipment 368 27 350 (9) (2)
Additions to finance receivables (6,973) (7,957) 984 (3)
Collections of finance receivables 6,759 7,516 (757) (3)
Net intercompany purchased receivables - (83) 83 (3)
Proceeds from sale of finance receivables 29 29
Net intercompany borrowings - 4 (4) 4
Investments and acquisitions (net of cash acquired) (20) (20)
Proceeds from sale of businesses and investments (net of cash sold) (14) (14)
Proceeds from sale of securities 463 332 131
Investments in securities (1,078) (866) (212)
Other - net 41 41
Net cash provided by (used for) investing activities (1,882) (1,185) (1,005) 308
Cash flow from financing activities:
Dividends paid (1,238) (1,238) (75) 75 5
Common stock issued, including treasury shares reissued (22) (22)
Payments to purchase common stock (1,829) (1,829)
Net intercompany borrowings - (4) 4 4
Proceeds from debt issued (original maturities greater than three months) 3,299 3,299
Payments on debt (original maturities greater than three months) (2,303) (95) (2,208)
Short-term borrowings - net (original maturities three months or less) (406) (3) (403)
Net cash provided by (used for) financing activities (2,499) (3,191) 613 79
Effect of exchange rate changes on cash (60) (12) (48)
Increase (decrease) in cash, cash equivalents and restricted cash 381 279 102
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 $7,394 $6,328 $1,066
$ -
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.
View original content:https://www.prnewswire.com/news-releases/caterpillar-reports-second-quarter-2024-results-302215400.html
SOURCE Caterpillar Inc.
