PEORIA, Ill., Jan. 26, 2017 /PRNewswire/ --
|
FOURTH
QUARTER
|
|
FULL
YEAR
|
|
|
|
|
|
|
|
|
($ in billions except
per share data)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Sales and
Revenues
|
$9.574
|
|
$11.030
|
|
$38.537
|
|
$47.011
|
Profit (Loss) Per
Share
|
($2.00)
|
|
($0.16)
|
|
($0.11)
|
|
$4.18
|
Adjusted Profit
Per Share
|
$0.83
|
|
$0.83
|
|
$3.42
|
|
$5.35
|
Caterpillar Inc. (NYSE: CAT) today announced fourth-quarter and
full-year results for 2016.
Sales and revenues in the fourth quarter of 2016 were
$9.6 billion, down from $11.0 billion in the fourth quarter of 2015.
Fourth-quarter 2016 was a loss of $2.00 per share, compared with a loss of
$0.16 per share in the fourth quarter
of 2015.
Full-year sales and revenues in 2016 were $38.5 billion, down about 18 percent from
$47.0 billion in 2015. The company
lost $0.11 per share in 2016,
compared with a profit of $4.18 per
share in 2015.
Our fourth-quarter 2016 results included three large non-cash
charges and higher than expected restructuring costs.
These items resulted in a loss for the quarter and were the primary
reason our results were lower than the outlook provided in
October 2016. A discussion of these
items – mark-to-market losses for remeasurement of
pension and OPEB plans, a goodwill impairment charge,
a deferred tax valuation allowance and restructuring costs – and
their applicable impact on each period is in Q&A #1 on page 16.
Because we do not consider these items to be indicative of earnings
from ongoing business activities, the table above shows adjusted
profit per share that excludes them. We believe adjusted profit per
share provides a useful perspective on underlying business results
and period-over-period changes.
Adjusted profit per share in the fourth quarter of 2016 was
$0.83, the same as the fourth quarter
of 2015, but higher than the outlook for profit per share excluding
restructuring costs provided in October
2016. Adjusted profit per share in 2016 was $3.42, down from $5.35 per share in 2015. For the year, the impact
on profit from lower sales and revenues was mitigated by a
$2.3 billion reduction in
period costs and variable manufacturing
costs.
"Our results for the fourth quarter, while slightly better than
expected, continued to reflect pressure in many of our end markets
from weak economic conditions around much of the world. Our team
did a great job in the quarter, as they have all year, aligning our
cost structure with current demand while preserving capacity for
the future. I'm confident we are focusing on the right areas:
controlling costs, maintaining a strong balance sheet and investing
in the key areas important to our future," said Caterpillar Chief
Executive Officer Jim Umpleby.
2017 Outlook – Background
Positives
We are seeing positive signs that could be early indications of
modest recovery in several of our businesses.
Resource Industries – Commodity prices at higher
levels than a year ago, along with sequential improvements in parts
sales in each of the last three quarters and improvements in
quoting and order activity in the fourth quarter, suggest that
mining-related sales may have bottomed.
Construction Industries – Sales in China began recovering in 2016; sales in
Europe seem to have stabilized and
could improve some in 2017; and sales in Brazil, which are off their peak by over 80
percent, could improve if the Brazilian economy begins to recover
from recession.
Energy & Transportation – Gas compression
remains strong, and we have a solid backlog for turbines. If oil
prices rise modestly and stabilize, it would be positive for our
businesses that support drilling and well servicing.
Prospects for tax reform and an infrastructure spending bill in
the United States are encouraging.
While these initiatives would likely be a solid positive for many
of our businesses, we would not expect to begin to see meaningful
effects of these changes until sometime in 2018.
Concerns
Resource Industries – While quoting interest in mining
products has improved, we are expecting miners' capital spending to
be about flat in 2017 after several years of decline. Sales of some
large construction equipment within Resource Industries are likely
to be down in 2017, compared with 2016.
Construction Industries – North
America and EAME are the most concerning
regions. While better economic growth and increased infrastructure
spending may be on the horizon, the availability of used equipment
has negatively impacted sales in North
America during 2016 and we expect some negative impact in
2017. We expect sales in Africa/Middle
East to be down again in 2017 due to overall economic
weakness and continued pressure on economies that rely on oil
revenues to drive economic growth. In addition, continuing
uncertainty related to Brexit remains a concern in Europe.
Energy & Transportation – Rail remains challenged
with low traffic volume and a significant number of idle
locomotives. Additionally, weakness in shipbuilding is expected to
be negative for our marine-related sales; power generation sales
are projected to remain weak; and industrial engine sales to
original equipment manufacturers are expected to be lower than
2016.
2017 Outlook – Sales and Revenues and Profit
Our expectations for 2017 are similar to those shared with
investors in early December 2016. At
that time, we believed the analyst consensus for 2017 sales and
revenues of about $38 billion was a
reasonable midpoint expectation. Our expectation for sales and
revenues in 2017 are now slightly lower due to the strengthening of
the U.S. dollar over the past two months, and as a result, our
current outlook for sales and revenues in 2017 is a range of
$36 billion to $39 billion with a
midpoint of $37.5 billion.
We expect profit per share of about $2.30 at the midpoint of the sales and revenues
outlook range. Excluding restructuring costs of about $500 million, we expect adjusted profit of about
$2.90 per share at the midpoint,
which reflects decremental operating profit pull
through of about 30 percent from 2016.
"We continue to execute in a challenging economic environment
and are focused on improving operating margins, profitability and
shareholder returns. While we see signs of positive activity in
some of our key end markets, the overall economic environment
remains challenging," added Umpleby.
Highlights
- Sales and revenues were $38.5
billion in 2016 – 18 percent decrease from 2015 and
slightly lower than expected
- Period costs and variable manufacturing costs were
$2.3 billion lower in 2016
– restructuring and cost reduction actions and lower incentive
pay helped mitigate the impact of lower sales
- Restructuring costs and three large non-cash items in the
fourth quarter impacted profit substantially – resulting in a
loss for the quarter and the year
- Machinery, Engines & Transportation operating cash flow
was $3.9 billion in 2016
– more than sufficient to cover capital expenditures and
dividends
- 2017 sales and revenues are expected to be
$36 billion to $39 billion with a
midpoint of $37.5 billion
– some signs of recovery, but risk and uncertainty continue
- At the midpoint of the sales and revenues range, 2017 profit
per share is expected to be about $2.30 with adjusted profit of about $2.90 per share
Notes:
- Glossary of terms is included on pages 19-20; first
occurrence of terms shown in bold italics.
- Information on non-GAAP financial measures is included on
page 21.
- Caterpillar will conduct a teleconference and live webcast,
with a slide presentation, beginning at 10
a.m. Central Time on Thursday,
January 26, 2017, to discuss its 2016 fourth-quarter and
full-year financial results. The accompanying slides will be
available before the webcast on the Caterpillar website at
http://www.caterpillar.com/investors/events-and-presentations.
About Caterpillar:
For more than 90 years, Caterpillar
Inc. has been making sustainable progress possible and driving
positive change on every continent. Customers turn to Caterpillar
to help them develop infrastructure, energy and natural resource
assets. With 2016 sales and revenues of $38.537 billion, Caterpillar is the world's
leading manufacturer of construction and mining equipment, diesel
and natural gas engines, industrial gas turbines and
diesel-electric locomotives. The company principally operates
through its three product segments - Construction Industries,
Resource Industries and Energy & Transportation - and also
provides financing and related services through its Financial
Products segment. For more information, visit caterpillar.com. To
connect with us on social media, visit
caterpillar.com/social-media.
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," "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 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) government monetary or fiscal policies
and infrastructure spending; (iii) commodity price changes,
component price increases, fluctuations in demand for our products
or significant shortages of component products; (iv) disruptions or
volatility in global financial markets limiting our sources of
liquidity or the liquidity of our customers, dealers and suppliers;
(v) political and economic risks, commercial instability and events
beyond our control in the countries in which we operate; (vi)
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; (vii) our Financial Products segment's risks associated
with the financial services industry; (viii) changes in interest
rates or market liquidity conditions; (ix) an increase in
delinquencies, repossessions or net losses of Cat Financial's
customers; (x) new regulations or changes in financial services
regulations; (xi) a failure to realize, or a delay in realizing,
all of the anticipated benefits of our acquisitions, joint ventures
or divestitures; (xii) international trade policies and their
impact on demand for our products and our competitive position;
(xiii) our ability to develop, produce and market quality products
that meet our customers' needs; (xiv) the impact of the highly
competitive environment in which we operate on our sales and
pricing; (xv) failure to realize all of the anticipated benefits
from initiatives to increase our productivity, efficiency and cash
flow and to reduce costs; (xvi) additional restructuring costs or a
failure to realize anticipated savings or benefits from past or
future cost reduction actions; (xvii) inventory management
decisions and sourcing practices of our dealers and our OEM
customers; (xviii) compliance with environmental laws and
regulations; (xix) alleged or actual violations of trade or
anti-corruption laws and regulations; (xx) additional tax expense
or exposure; (xxi) currency fluctuations; (xxii) our or Cat
Financial's compliance with financial covenants; (xxiii) increased
pension plan funding obligations; (xxiv) union disputes or other
employee relations issues; (xxv) significant legal proceedings,
claims, lawsuits or government investigations; (xxvi) changes in
accounting standards; (xxvii) failure or breach of IT security;
(xxviii) adverse effects of unexpected events including natural
disasters; and (xxix) other factors described in more detail under
"Item 1A. Risk Factors" in our Form 10-K filed with the SEC on
February 16, 2016 for the year ended
December 31, 2015.
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues Comparison
Fourth Quarter 2016 vs. Fourth Quarter 2015
To access this chart, go to
http://www.caterpillar.com/en/investors/quarterly-results.html
for the downloadable version of Caterpillar 4Q 2015
earnings.
The chart above graphically illustrates reasons for the change
in Consolidated Sales and Revenues between the fourth quarter of
2015 (at left) and the fourth quarter of 2016 (at right). Items
favorably impacting sales and revenues appear as upward stair steps
with the corresponding dollar amounts above each bar, while items
negatively impacting sales and revenues appear as downward stair
steps with dollar amounts reflected in parentheses above each bar.
Caterpillar management utilizes these charts internally to visually
communicate with the company's Board of Directors and
employees.
Sales and Revenues
Total sales and revenues were $9.574
billion in the fourth quarter of 2016, a decline of
$1.456 billion, or 13 percent,
compared with $11.030 billion in the
fourth quarter of 2015. The decrease was almost entirely due to
lower sales volume, resulting from lower end-user
demand attributable to continued weak commodity prices globally and
economic weakness in many countries. Although some commodity prices
improved in the fourth quarter of 2016, the improvement was too
recent to significantly impact our sales for the quarter. Sales for
new equipment declined, while aftermarket parts sales were about
flat. The unfavorable impact of price realization
also contributed to the decline.
Sales declined in all regions except Asia/Pacific. In EAME, sales declined 30
percent primarily in Africa/Middle
East due to weak economic conditions resulting from the
continuing impact of low oil prices and an uncertain investment
environment. In North America,
sales decreased 15 percent primarily due to lower end-user demand
for equipment used for infrastructure, the impact of continued low
oil prices and an uncertain economic environment. Sales decreased
16 percent in Latin
America primarily due to continued widespread
economic weakness and inflation across the region. Asia/Pacific sales increased 10 percent
primarily due to increased infrastructure and residential
investment in China.
Energy & Transportation's sales declined 15 percent largely
due to lower end-user demand for most applications. Resource
Industries' sales declined 23 percent mostly due to continued low
end-user demand. Construction Industries' sales decreased 8 percent
primarily due to lower demand from end users, partially offset by
favorable changes in dealer inventories. Financial Products'
segment revenues were about flat with the fourth quarter of
2015.
Consolidated Operating Profit / (Loss)
Consolidated Operating Profit Comparison
Fourth Quarter 2016 vs. Fourth Quarter 2015
To access this chart, go to
http://www.caterpillar.com/en/investors/quarterly-results.html for
the downloadable version of Caterpillar 4Q 2015
earnings.
The chart above graphically illustrates reasons for the change
in Consolidated Operating Profit (Loss) between the fourth quarter
of 2015 (at left) and the fourth quarter of 2016 (at right). Items
favorably impacting operating profit appear as upward
stair steps with the corresponding dollar amounts above each bar,
while items negatively impacting operating profit appear as
downward stair steps with dollar amounts reflected in parentheses
above each bar. Caterpillar management utilizes these charts
internally to visually communicate with the company's Board of
Directors and employees. The bar entitled Other includes
consolidating adjustments and Machinery, Energy
& Transportation other operating (income) expenses.
Operating loss for the fourth quarter of 2016 was $1.262 billion, compared with a loss of
$175 million in the fourth quarter of
2015, an unfavorable change of $1.087
billion. The most significant items were the unfavorable
impact from mark-to-market losses related to pension and OPEB plans
and a goodwill impairment charge in Resource Industries. Excluding
these items, operating profit improved $279
million compared to the fourth quarter of 2015. The
improvement was mostly due to lower period costs, a decrease in
restructuring costs and favorable variable manufacturing costs,
partially offset by lower sales volume. The unfavorable price
realization resulted from competitive market conditions, primarily
in Resource Industries.
Period costs were lower primarily due to substantial
restructuring and cost reduction actions over the past year. The
reductions impacted period manufacturing costs, selling, general
and administrative expenses and research and development expenses
about equally. Variable manufacturing costs were favorable mostly
due to the impact of cost absorption as inventory decreased more
significantly in the fourth quarter of 2015, compared to the fourth
quarter of 2016.
Restructuring costs of $395
million in the fourth quarter of 2016 were related to
restructuring programs across the company. In the fourth quarter of
2015, restructuring costs were $679
million, primarily related to a reduction in workforce.
Other Profit/Loss Items
- Other income/expense in the fourth quarter of 2016 was
income of $34 million, compared with
income of $54 million in the fourth
quarter of 2015. The unfavorable change was primarily due to lower
gains from the sales of securities in the fourth quarter of 2016,
compared to the fourth quarter of 2015, and the impact from
currency translation and hedging gains and losses.
The unfavorable change in currency translation and hedging gains
and losses was due to higher net losses in the fourth quarter of
2016, compared to the fourth quarter of 2015.
- The provision for income taxes in the fourth quarter
reflects an annual effective tax rate of approximately 36 percent,
compared to 25.5 percent for the full-year 2015, excluding the
items discussed below. The effective tax rate related to full-year
adjusted profit before tax is 26 percent.
The provision for income taxes for the fourth quarter of 2016
also includes a $170 million charge
related to the change from the third-quarter estimated annual tax
rate. This change was primarily due to the negative impact from the
portion of the goodwill impairment not deductible for tax purposes
offsetting benefits related to the majority of pension and OPEB
mark-to-market losses taxed at higher U.S. rates. In addition, the
valuation allowance against U.S. state deferred tax assets was
increased due to recent losses incurred in the United States resulting in a $141 million non-cash charge. The provision for
income taxes for the fourth quarter of 2015 also included a benefit
of $92 million related to the
decrease from the third-quarter estimated annual tax rate. This
benefit was primarily due to the renewal in the fourth quarter of
the U.S. research and development tax credit for 2015.
Global Workforce
Caterpillar worldwide, full-time employment was about 95,400 at
the end of 2016, compared with about 105,700 at the end of 2015, a
decrease of about 10,300 full-time employees. The flexible
workforce decreased by about 2,000 for a total decrease in the
global workforce of about 12,300. The decrease was primarily the
result of restructuring programs and lower production volumes.
|
|
December
31
|
|
|
2016
|
|
2015
|
|
Increase/
(Decrease)
|
Full-time
employment
|
|
95,400
|
|
105,700
|
|
(10,300)
|
Flexible
workforce
|
|
11,000
|
|
13,000
|
|
(2,000)
|
Total
|
|
106,400
|
|
118,700
|
|
(12,300)
|
|
|
|
|
|
|
|
Geographic summary of
change
|
|
|
|
|
|
|
U.S.
workforce
|
|
|
|
|
|
(7,700)
|
Non-U.S.
workforce
|
|
|
|
|
|
(4,600)
|
Total
|
|
|
|
|
|
(12,300)
|
SEGMENT RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Revenues
by Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
North
|
|
%
|
|
Latin
|
|
%
|
|
|
|
%
|
|
Asia/
|
|
%
|
(Millions of
dollars)
|
Total
|
|
Change
|
|
America
|
|
Change
|
|
America
|
|
Change
|
|
EAME
|
|
Change
|
|
Pacific
|
|
Change
|
Fourth Quarter
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries¹
|
$
3,589
|
|
(8)
|
%
|
|
$
1,569
|
|
(16)
|
%
|
|
$
264
|
|
(11)
|
%
|
|
$
624
|
|
(34)
|
%
|
|
$
1,132
|
|
41
|
%
|
Resource
Industries²
|
1,443
|
|
(23)
|
%
|
|
471
|
|
(24)
|
%
|
|
221
|
|
(21)
|
%
|
|
297
|
|
(35)
|
%
|
|
454
|
|
(14)
|
%
|
Energy &
Transportation³
|
3,849
|
|
(15)
|
%
|
|
1,722
|
|
(11)
|
%
|
|
347
|
|
(16)
|
%
|
|
1,063
|
|
(26)
|
%
|
|
717
|
|
(5)
|
%
|
All Other
Segments⁴
|
32
|
|
(14)
|
%
|
|
11
|
|
(35)
|
%
|
|
-
|
|
(100)
|
%
|
|
5
|
|
(17)
|
%
|
|
16
|
|
23
|
%
|
Corporate Items and
Eliminations
|
(28)
|
|
|
|
|
(23)
|
|
|
|
|
(2)
|
|
|
|
|
(2)
|
|
|
|
|
(1)
|
|
|
|
Machinery, Energy
& Transportation
|
$
8,885
|
|
(14)
|
%
|
|
$
3,750
|
|
(15)
|
%
|
|
$
830
|
|
(16)
|
%
|
|
$
1,987
|
|
(30)
|
%
|
|
$
2,318
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$
742
|
|
(1)
|
%
|
|
$
464
|
|
3
|
%
|
|
$
83
|
|
(14)
|
%
|
|
$
99
|
|
2
|
%
|
|
$
96
|
|
(4)
|
%
|
Corporate Items and
Eliminations
|
(53)
|
|
|
|
|
(29)
|
|
|
|
|
(9)
|
|
|
|
|
(4)
|
|
|
|
|
(11)
|
|
|
|
Financial
Products Revenues
|
$
689
|
|
(3)
|
%
|
|
$
435
|
|
(2)
|
%
|
|
$
74
|
|
(12)
|
%
|
|
$
95
|
|
3
|
%
|
|
$
85
|
|
(6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
9,574
|
|
(13)
|
%
|
|
$
4,185
|
|
(14)
|
%
|
|
$
904
|
|
(16)
|
%
|
|
$
2,082
|
|
(29)
|
%
|
|
$
2,403
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries¹
|
$
3,905
|
|
|
|
|
$
1,863
|
|
|
|
|
$
298
|
|
|
|
|
$
942
|
|
|
|
|
$
802
|
|
|
|
Resource
Industries²
|
1,878
|
|
|
|
|
616
|
|
|
|
|
280
|
|
|
|
|
454
|
|
|
|
|
528
|
|
|
|
Energy &
Transportation³
|
4,544
|
|
|
|
|
1,944
|
|
|
|
|
411
|
|
|
|
|
1,431
|
|
|
|
|
758
|
|
|
|
All Other
Segments⁴
|
37
|
|
|
|
|
17
|
|
|
|
|
1
|
|
|
|
|
6
|
|
|
|
|
13
|
|
|
|
Corporate Items and
Eliminations
|
(46)
|
|
|
|
|
(47)
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1
|
|
|
|
Machinery, Energy
& Transportation
|
$10,318
|
|
|
|
|
$
4,393
|
|
|
|
|
$
990
|
|
|
|
|
$
2,833
|
|
|
|
|
$
2,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$
746
|
|
|
|
|
$
452
|
|
|
|
|
$
97
|
|
|
|
|
$
97
|
|
|
|
|
$
100
|
|
|
|
Corporate Items and
Eliminations
|
(34)
|
|
|
|
|
(6)
|
|
|
|
|
(13)
|
|
|
|
|
(5)
|
|
|
|
|
(10)
|
|
|
|
Financial
Products Revenues
|
$
712
|
|
|
|
|
$
446
|
|
|
|
|
$
84
|
|
|
|
|
$
92
|
|
|
|
|
$
90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$11,030
|
|
|
|
|
$
4,839
|
|
|
|
|
$
1,074
|
|
|
|
|
$
2,925
|
|
|
|
|
$
2,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Does not include inter-segment sales of $31 million and $43 million
in fourth quarter 2016 and 2015, respectively.
|
|
|
|
2
Does not include inter-segment sales of $87 million and $82 million
in fourth quarter 2016 and 2015, respectively.
|
|
|
|
3
Does not include inter-segment sales of $621 million and $615
million in fourth quarter 2016 and 2015, respectively.
|
|
|
|
4
Does not include inter-segment sales of $117 million and $99
million in fourth quarter 2016 and 2015, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Revenues
by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
|
|
Sales
|
|
Price
|
|
|
|
|
|
Fourth
|
|
$
|
|
%
|
(Millions of
dollars)
|
Quarter
2015
|
|
Volume
|
|
Realization
|
|
Currency
|
|
Other
|
|
Quarter
2016
|
|
Change
|
|
Change
|
Construction
Industries
|
$
3,905
|
|
$
(363)
|
|
$
1
|
|
$
46
|
|
$
-
|
|
$
3,589
|
|
$
(316)
|
|
(8)
|
%
|
Resource
Industries
|
1,878
|
|
(388)
|
|
(62)
|
|
15
|
|
-
|
|
1,443
|
|
(435)
|
|
(23)
|
%
|
Energy &
Transportation
|
4,544
|
|
(663)
|
|
(21)
|
|
(11)
|
|
-
|
|
3,849
|
|
(695)
|
|
(15)
|
%
|
All Other
Segments
|
37
|
|
(5)
|
|
-
|
|
-
|
|
-
|
|
32
|
|
(5)
|
|
(14)
|
%
|
Corporate Items and
Eliminations
|
(46)
|
|
16
|
|
2
|
|
-
|
|
-
|
|
(28)
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery, Energy
& Transportation
|
$
10,318
|
|
$
(1,403)
|
|
$
(80)
|
|
$
50
|
|
$
-
|
|
$
8,885
|
|
$
(1,433)
|
|
(14)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$
746
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
(4)
|
|
$
742
|
|
$
(4)
|
|
(1)
|
%
|
Corporate Items and
Eliminations
|
(34)
|
|
-
|
|
-
|
|
-
|
|
(19)
|
|
(53)
|
|
(19)
|
|
|
|
Financial Products
Revenues
|
$
712
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
(23)
|
|
$
689
|
|
$
(23)
|
|
(3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
11,030
|
|
$
(1,403)
|
|
$
(80)
|
|
$
50
|
|
$
(23)
|
|
$
9,574
|
|
$
(1,456)
|
|
(13)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
(Loss) by Segment
|
|
|
|
|
|
|
|
|
|
Fourth
|
|
Fourth
|
|
$
|
|
%
|
(Millions of
dollars)
|
Quarter
2016
|
|
Quarter
2015
|
|
Change
|
|
Change
|
Construction
Industries
|
$
334
|
|
$
178
|
|
$
156
|
|
88
|
%
|
Resource
Industries
|
(711)
|
|
(80)
|
|
(631)
|
|
(789)
|
%
|
Energy &
Transportation
|
638
|
|
741
|
|
(103)
|
|
(14)
|
%
|
All Other
Segments
|
(34)
|
|
(39)
|
|
5
|
|
13
|
%
|
Corporate Items and
Eliminations
|
(1,572)
|
|
(1,088)
|
|
(484)
|
|
|
|
Machinery, Energy
& Transportation
|
$
(1,345)
|
|
$
(288)
|
|
$ (1,057)
|
|
(367)
|
%
|
Financial Products
Segment
|
$
149
|
|
$
191
|
|
$
(42)
|
|
(22)
|
%
|
Corporate Items and
Eliminations
|
(9)
|
|
(15)
|
|
6
|
|
|
|
Financial
Products
|
$
140
|
|
$
176
|
|
$
(36)
|
|
(20)
|
%
|
Consolidating
Adjustments
|
(57)
|
|
(63)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Profit (Loss)
|
$
(1,262)
|
|
$
(175)
|
|
$ (1,087)
|
|
(621)
|
%
|
|
CONSTRUCTION
INDUSTRIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2015
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Fourth
Quarter
2016
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison1
|
$3,905
|
|
($363)
|
|
$1
|
|
$46
|
|
$3,589
|
|
($316)
|
|
(8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
2016
|
|
Fourth
Quarter
2015
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
North
America
|
$1,569
|
|
$1,863
|
|
($294)
|
|
(16)
|
%
|
|
|
|
|
|
Latin
America
|
264
|
|
298
|
|
(34)
|
|
(11)
|
%
|
|
|
|
|
|
EAME
|
624
|
|
942
|
|
(318)
|
|
(34)
|
%
|
|
|
|
|
|
Asia/Pacific
|
1,132
|
|
802
|
|
330
|
|
41
|
%
|
|
|
|
|
|
Total1
|
$3,589
|
|
$3,905
|
|
($316)
|
|
(8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2016
|
|
Fourth
Quarter
2015
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
Operating
Profit
|
$334
|
|
$178
|
|
$156
|
|
88
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Does not include
inter-segment sales of $31 million and $43 million in fourth
quarter 2016 and 2015, respectively.
|
Construction Industries' sales were $3.589 billion in the fourth quarter of 2016, a
decrease of $316 million, or 8
percent, from the fourth quarter of 2015. The decrease was mostly
due to lower volume. Sales declined for new equipment and were
about flat for aftermarket parts.
- Sales volume declined primarily due to lower end-user demand,
partially offset by a smaller decline in dealer inventories in the
fourth quarter of 2016, compared with the fourth quarter of
2015.
Sales decreased in EAME, North
America and Latin America
and increased in Asia/Pacific.
- Sales in EAME decreased primarily due to lower end-user demand.
The sales decline was primarily in oil-producing economies in
Africa/Middle East due to continued low oil prices
and an uncertain investment environment.
- In North America, the sales
decline was primarily due to lower end-user demand. Although
residential and non-residential building construction activity
improved, we believe demand for new construction equipment has
remained low due to end users' utilization of existing used
equipment.
- In Latin America, sales
decreased slightly as lower end-user demand, attributable to weak
economic conditions across the region, was partially offset by
favorable changes in dealer inventories. Dealers reduced
inventories more significantly in the fourth quarter of 2015 than
in the fourth quarter of 2016.
- Sales in Asia/Pacific were
higher as a result of an increase in end-user demand primarily in
China stemming from increased
government support in infrastructure and residential investment. In
addition, changes in Asia/Pacific
dealer inventories were favorable as dealers increased inventories
in the fourth quarter of 2016, compared with a decrease in the
fourth quarter of 2015.
Construction Industries' profit was $334
million in the fourth quarter of 2016, compared with
$178 million in the fourth quarter of
2015. The increase in profit was primarily due to lower period
costs and the absence of an unfavorable impact from litigation in
the fourth quarter of 2015, partially offset by lower sales volume,
which includes a favorable mix of products. The lower period costs
were mostly a result of the favorable impact of restructuring and
cost reduction actions.
RESOURCE
INDUSTRIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2015
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
|
Fourth
Quarter
2016
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison1
|
$1,878
|
|
($388)
|
|
($62)
|
|
$15
|
|
|
$1,443
|
|
($435)
|
|
(23)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2016
|
|
Fourth
Quarter 2015
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
North
America
|
$471
|
|
$616
|
|
($145)
|
|
(24)
|
%
|
|
|
Latin
America
|
221
|
|
280
|
|
(59)
|
|
(21)
|
%
|
|
|
EAME
|
297
|
|
454
|
|
(157)
|
|
(35)
|
%
|
|
|
Asia/Pacific
|
454
|
|
528
|
|
(74)
|
|
(14)
|
%
|
|
|
Total1
|
$1,443
|
|
$1,878
|
|
($435)
|
|
(23)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
2016
|
|
Fourth Quarter
2015
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Operating Profit
(Loss)
|
($711)
|
|
($80)
|
|
($631)
|
|
(789)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Does not include
inter-segment sales of $87 million and $82 million in fourth
quarter 2016 and 2015, respectively.
|
Resource Industries' sales were $1.443
billion in the fourth quarter of 2016, a decrease of
$435 million, or 23 percent, from the
fourth quarter of 2015. The decline was primarily due to lower
sales volume and the unfavorable impact of price realization
resulting from competitive market conditions. Sales of new
equipment decreased while sales of aftermarket parts increased
slightly. Aftermarket parts sales have increased sequentially in
each of the last three quarters.
The sales decrease was primarily due to lower end-user demand
across all regions. While most commodity prices improved in the
fourth quarter over a year earlier, current prices have not been
sufficient to drive much increase in short-term demand for new
equipment. We believe commodity prices now need to stabilize for a
longer period of time to positively impact our sales. Mining
customers continued to focus on improving productivity in existing
mines and reducing their total capital expenditures, as they have
for several years. In addition, sales of heavy construction
equipment are lower, primarily in North
America.
Resource Industries incurred a loss of $711 million in the fourth quarter of 2016,
compared with a loss of $80 million
in the fourth quarter of 2015. The most significant item impacting
the fourth quarter of 2016 was a goodwill impairment charge of
$595 million related to the
Surface Mining & Technology reporting unit,
discussed in Q&A #1 on page 16. Excluding the impairment
charge, the fourth quarter of 2016 operating loss was unfavorable
$36 million, compared with the fourth
quarter of 2015. The unfavorable change was due to lower sales
volume and unfavorable price realization, mostly offset by the
favorable impact of restructuring and cost reduction actions.
ENERGY &
TRANSPORTATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
2015
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
|
Fourth
Quarter 2016
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison1
|
$4,544
|
|
($663)
|
|
($21)
|
|
($11)
|
|
|
$3,849
|
|
($695)
|
|
(15)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
2016
|
|
Fourth
Quarter 2015
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
$1,722
|
|
$1,944
|
|
($222)
|
|
(11)
|
%
|
|
|
|
Latin
America
|
347
|
|
411
|
|
(64)
|
|
(16)
|
%
|
|
|
|
EAME
|
1,063
|
|
1,431
|
|
(368)
|
|
(26)
|
%
|
|
|
|
Asia/Pacific
|
717
|
|
758
|
|
(41)
|
|
(5)
|
%
|
|
|
|
Total1
|
$3,849
|
|
$4,544
|
|
($695)
|
|
(15)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2016
|
|
Fourth
Quarter 2015
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Operating
Profit
|
$638
|
|
$741
|
|
($103)
|
|
(14)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Does not include
inter-segment sales of $621 million and $615 million in fourth
quarter 2016 and 2015, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy & Transportation's sales were $3.849 billion in the fourth quarter of 2016, a
decrease of $695 million, or 15
percent, from the fourth quarter of 2015. The decrease was
primarily the result of lower sales volume.
- Transportation – Sales decreased in North America, Asia/Pacific and EAME primarily due to
continued weakness in the rail industry, with the most significant
decline in North America. The
North American rail industry continues to be depressed with a
significant number of idle locomotives that impacted demand for
rail services and aftermarket. The decline in Asia/Pacific was mostly due to lower demand
for equipment used in marine applications, primarily for work
boats. Sales in Latin America were
about flat.
- Oil and Gas – Sales decreased in much of the world due
to the impact from low oil prices. The sales decline was primarily
related to lower demand across all regions for equipment used for
production, partially offset by increased demand for turbines used
for gas compression.
- Power Generation – Sales decreased in EAME and were
about flat in all other regions. The decline in EAME was primarily
a result of continued weakness in the Middle East with continued low oil prices
limiting investments.
- Industrial – Sales were about flat as an increase in
Asia/Pacific was mostly offset by
a decrease in EAME, both attributable to changes in end-user demand
for most industrial applications.
Energy & Transportation's profit was $638 million in the fourth quarter of 2016,
compared with $741 million in the
fourth quarter of 2015. The decline was primarily due to a decrease
in sales volume, partially offset by the impact of restructuring
and cost reduction actions and a favorable impact of cost
absorption as inventory decreased more significantly in the fourth
quarter of 2015 than the fourth quarter of 2016.
FINANCIAL PRODUCTS
SEGMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
Revenues by
Geographic Region
|
|
|
|
|
|
|
|
Fourth
Quarter 2016
|
|
Fourth
Quarter 2015
|
|
$
Change
|
|
%
Change
|
North
America
|
$464
|
|
$452
|
|
$12
|
|
3
|
%
|
Latin
America
|
83
|
|
97
|
|
(14)
|
|
(14)
|
%
|
EAME
|
99
|
|
97
|
|
2
|
|
2
|
%
|
Asia/Pacific
|
96
|
|
100
|
|
(4)
|
|
(4)
|
%
|
Total
|
$742
|
|
$746
|
|
($4)
|
|
(1)
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2016
|
|
Fourth
Quarter 2015
|
|
$
Change
|
|
%
Change
|
Operating
Profit
|
$149
|
|
$191
|
|
($42)
|
|
(22)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products' revenues were $742
million in the fourth quarter of 2016, a decrease of
$4 million, or 1 percent, from the
fourth quarter of 2015. The decline was primarily due to lower
average earning assets in North America and Latin America, an unfavorable impact from
returned or repossessed equipment primarily in North America and lower average financing
rates in Latin America. These
decreases were partially offset by higher average financing rates
in North America.
Financial Products' profit was $149
million in the fourth quarter of 2016, compared with
$191 million in the fourth quarter of
2015. The decrease was primarily due to lower gains on sales of
securities at Insurance Services and an unfavorable impact from
returned or repossessed equipment.
At the end of 2016, past dues at Cat Financial were 2.38
percent, compared with 2.14 percent at the end of 2015. The
increase in past dues was primarily driven by the European marine
portfolio. Write-offs, net of recoveries, were $123 million for the full-year 2016, compared
with $155 million for the full-year
2015.
As of December 31, 2016, Cat
Financial's allowance for credit losses totaled $343 million, or 1.29 percent of net finance
receivables, compared with $338
million, or 1.22 percent of net finance receivables at
year-end 2015.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $1.581 billion in the fourth quarter of 2016, an
increase of $478 million from the
fourth quarter of 2015. Corporate items and eliminations include:
corporate-level expenses; restructuring costs; timing differences,
as some expenses are reported in segment profit on a cash basis;
retirement benefit costs other than service cost; currency
differences for ME&T, as segment profit is reported using
annual fixed exchange rates; cost of sales methodology differences
as segments use a current cost methodology; and inter-segment
eliminations.
The increase was due to the unfavorable impact of higher
mark-to-market losses related to our pension and OPEB plans.
Mark-to-market losses in the fourth quarter of 2016 were
$985 million, compared to
mark-to-market losses of $214 million
in the fourth quarter of 2015. This was partially offset by a
decrease in restructuring costs of $284
million compared to the fourth quarter of 2015.
2017 OUTLOOK
Positives
We are seeing positive signs that could be early indications of
modest recovery in several of our businesses.
Resource Industries – Commodity prices at higher levels
than a year ago, along with sequential improvements in parts sales
in each of the last three quarters and improvements in quoting and
order activity in the fourth quarter, suggest that mining-related
sales may have bottomed.
Construction Industries – Sales in China began recovering in 2016; sales in
Europe seem to have stabilized and
could improve some in 2017; and sales in Brazil, which are off their peak by over 80
percent, could improve if the Brazilian economy begins to recover
from recession.
Energy & Transportation – Gas compression remains
strong, and we have a solid backlog for turbines. If oil prices
rise modestly and stabilize, it would be positive for our
businesses that support drilling and well servicing.
Prospects for tax reform and an infrastructure spending bill in
the United States are encouraging.
While these initiatives would likely be a solid positive for many
of our businesses, we would not expect to begin to see meaningful
effects of these changes until sometime in 2018.
Concerns
Resource Industries – While quoting interest in mining
products has improved, we are expecting miners' capital spending to
be about flat in 2017 after several years of decline. Sales of some
large construction equipment within Resource Industries are likely
to be down in 2017, compared with 2016.
Construction Industries – North
America and EAME are the most concerning regions. While
better economic growth and increased infrastructure spending may be
on the horizon, the availability of used equipment has negatively
impacted sales in North America
during 2016 and we expect some negative impact in 2017. We expect
sales in Africa/Middle East to be down again in 2017 due to
overall economic weakness and continued pressure on economies that
rely on oil revenues to drive economic growth. In addition,
continuing uncertainty related to Brexit remains a concern in
Europe.
Energy & Transportation – Rail remains challenged
with low traffic volume and a significant number of idle
locomotives. Additionally, weakness in shipbuilding is expected to
be negative for our marine-related sales; power generation sales
are projected to remain weak; and industrial engine sales to
original equipment manufacturers are expected to be lower than
2016.
2017 Outlook – Sales and Revenues and Profit
Our expectations for 2017 are similar to those shared with
investors in early December 2016. At
that time, we believed the analyst consensus for 2017 sales and
revenues of about $38 billion was a
reasonable midpoint expectation. Our expectations for sales and
revenues in 2017 are now slightly lower due to the strengthening of
the U.S. dollar over the past two months, and as a result, our
current outlook for sales and revenues in 2017 is a range of
$36 billion to $39 billion with a
midpoint of $37.5 billion.
We expect profit per share of about $2.30 at the midpoint of the sales and revenues
outlook range. Excluding restructuring costs of about $500 million, we expect adjusted profit of about
$2.90 per share at the midpoint,
which reflects decremental operating profit pull through of about
30 percent from 2016.
Our 2016 results included several significant items:
restructuring costs, mark-to-market losses for remeasurement of
pension and OPEB plans, a goodwill impairment charge and a deferred
tax valuation allowance. In 2017, we expect to incur about
$500 million of restructuring costs
primarily related to ongoing manufacturing facility consolidations
to lower our cost structure in response to weak economic
conditions. No estimate of potential restructuring costs for
contemplated actions at Gosselies, Belgium, or Aurora,
Illinois, has been included in our outlook. At this time,
our outlook does not include a mark-to-market gain or loss for
remeasurement of pension and OPEB plans. Our outlook
does not include a goodwill impairment charge or significant
changes to deferred tax asset valuation allowances in 2017.
The following factors are expected to contribute to an
anticipated decline in profit in 2017:
- An expected decline in sales volume is anticipated to have a
negative impact on profit, including the effect of an unfavorable
sales mix as the decline is expected to be more concentrated in
products with higher than average margin rates.
- Short-term employee incentive compensation and labor cost
inflation are expected to be unfavorable by about $600 million.
- Financial Products segment profit is expected to be lower in
2017 in part due to gains on the sale of securities at Insurance
Services in 2016 that we are not expecting to repeat in 2017.
- The tax rate is expected to be about 27 percent in 2017.
The following factors are expected to partially offset an
anticipated decline in profit in 2017:
- The primary positive is the continuation of substantial cost
reduction in 2017. Not including short-term incentive compensation
and labor inflation noted above, Caterpillar is expecting about
$750 million of additional cost
reduction in 2017.
- About two-thirds is expected to be from lower period costs and
is a result of restructuring actions taken in recent years and the
company's continued focus on cost management.
- About one-third is expected from variable costs. A reduction in
material costs is the most significant factor. While we do not
expect material cost reduction from commodity prices, we expect
continued improvement in material costs from supplier
collaboration, sourcing and design-related improvements.
- In 2016, price realization was a substantial negative. While
the pricing environment remains very competitive, we believe price
realization has begun to level off. We expect price realization to
be neutral to slightly positive in 2017.
QUESTIONS AND
ANSWERS
|
|
Q1:
|
Can you provide
more information on the four significant items impacting 2016
profit?
|
|
|
A:
|
In order for our
results to be more meaningful to our readers, we have separately
quantified the impact of several significant items.
|
|
|
|
•
|
Mark-to-Market Losses
– Effective January 1, 2016, we made a change in accounting
principle related to our pension and OPEB plans. Under the new
accounting principle, we recognize actuarial gains and losses as a
mark-to-market gain or loss when incurred rather than amortizing
them to earnings over time. For 2016, the mark-to-market adjustment
was a net loss of $985 million, primarily due to lower interest
rates. Accounting rules require us to remeasure our future benefit
payments using an interest rate as of each year-end. If interest
rates drop, the present value of future benefit payments increases
resulting in a mark-to-market loss. If interest rates increase, the
present value of the future benefit payments decreases resulting in
a mark-to-market gain. Differences in actual versus expected
investment performance of plan assets and changes in other economic
and demographic factors also impact the adjustment. We believe
profit excluding the impact of mark-to-market gains or losses
better reflects earnings from ongoing business performance because
this adjustment has no impact on current year cash flow or on
benefits paid to plan participants.
|
|
|
|
|
•
|
Goodwill Impairment
Charge – Step 1 of the annual goodwill impairment test performed as
of October 1, 2016, indicated that the fair value of the Surface
Mining & Technology reporting unit, included in Resource
Industries, was lower than its carrying value. We completed step 2
of the impairment testing process during the fourth quarter of 2016
and recognized a non-cash impairment charge of $595 million. The
mining industry has experienced weakness for several years and,
while we continue to expect the industry to improve, we believe the
pace of the improvement will be slower and cash flows and
profitability will be lower than previously forecasted. After the
impairment charge, goodwill of approximately $600 million remains
in Surface Mining & Technology.
|
|
|
|
|
•
|
State Deferred Tax
Valuation Allowance – Based on recent losses incurred in the United
States, we recorded a non-cash charge of $141 million to increase
the valuation allowance against the related state net deferred tax
assets during the fourth quarter of 2016. If profitability improves
in future periods, the valuation allowance can be
reversed.
|
|
|
|
|
•
|
Restructuring Costs –
For the past several years, we have incurred substantial
restructuring costs as a result of actions to lower our cost
structure in response to weak economic conditions in the key
industries we serve. During 2016, we incurred $1.019 billion of
restructuring costs primarily related to Resource Industries and
Energy & Transportation.
|
To help improve the understanding of results for the quarter and
the year, the following tables show the impact of these items:
|
|
|
Fourth Quarter
2016
|
|
Fourth Quarter
2015
|
|
|
|
|
|
|
|
|
|
|
($ in millions except
per share data)
|
|
|
Profit
(Loss) Before Taxes
|
|
Profit
(Loss)
per
Share*
|
|
Profit (Loss)
Before
Taxes
|
|
Profit
(Loss)
per
Share*
|
|
|
|
|
|
|
|
|
|
|
Profit
(Loss)
|
|
|
($1,348)
|
|
($2.00)
|
|
($247)
|
|
($0.16)
|
|
|
|
|
|
|
|
|
|
|
Restructuring
Costs
|
|
|
$395
|
|
$0.45
|
|
$679
|
|
$0.76
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market
Losses
|
|
|
$985
|
|
$1.14
|
|
$214
|
|
$0.23
|
|
|
|
|
|
|
|
|
|
|
Goodwill Impairment
Charge
|
|
$595
|
|
$0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred State Tax
Valuation Allowance
|
|
|
|
$0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Profit
|
|
|
$627
|
|
$0.83
|
|
$646
|
|
$0.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
2016
|
|
Full Year
2015
|
|
|
|
|
|
|
|
|
|
|
($ in millions except
per share data)
|
|
|
Profit Before
Taxes
|
|
Profit
(Loss)
per
Share*
|
|
Profit Before
Taxes
|
|
Profit
per
Share*
|
|
|
|
|
|
|
|
|
|
|
Profit
(Loss)
|
|
|
$139
|
|
($0.11)
|
|
$3,439
|
|
$4.18
|
|
|
|
|
|
|
|
|
|
|
Restructuring
Costs
|
|
|
$1,019
|
|
$1.16
|
|
$898
|
|
$0.98
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market
Losses
|
|
|
$985
|
|
$1.15
|
|
$179
|
|
$0.19
|
|
|
|
|
|
|
|
|
|
|
Goodwill Impairment
Charge
|
|
$595
|
|
$0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred State Tax
Valuation Allowance
|
|
|
|
$0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Profit
|
|
|
$2,738
|
|
$3.42
|
|
$4,516
|
|
$5.35
|
|
*Per share amounts
computed using fully diluted shares outstanding except for
consolidated loss per share, which was computed using basic shares
outstanding
|
Q2:
|
Can you comment on
your 2017 outlook for restructuring costs? Does it include impacts
from contemplated actions at Caterpillar manufacturing facilities
in Gosselies, Belgium, and Aurora, Illinois?
|
|
|
A:
|
In 2017, we expect to
incur about $500 million of restructuring costs primarily related
to ongoing manufacturing facility consolidations to lower our cost
structure in response to weak economic conditions. Most of the
actions have been announced and are being implemented.
|
|
|
|
On September 24,
2015, Caterpillar announced a significant restructuring and cost
reduction initiative, with actions expected through 2018. The
largest action among those included in the initiative was related
to our European manufacturing footprint. On September 2, 2016,
Caterpillar announced that it is contemplating to allocate the
volumes produced at the Gosselies, Belgium, facility to other
manufacturing facilities. If the intention is confirmed, it would
result in a collective layoff of about 2,000 employees and the
closure of the Gosselies site. We are currently engaged in the
information and consultation process with Gosselies employee
representatives.
|
|
|
|
Additionally, on
January 4, 2017, Caterpillar announced that it is contemplating the
potential closure of the Aurora, Illinois, manufacturing facility.
If this plan is confirmed, Caterpillar would move machine
production from the Aurora facility to other U.S. manufacturing
facilities.
|
|
|
|
No estimate of
potential restructuring costs for Gosselies or Aurora has been
included in our outlook for 2017 restructuring costs as the outcome
of these contemplated actions is not yet known and no decisions
have been made.
|
|
|
Q3:
|
Can you discuss
changes in dealer inventories during 2016 and expectations for
2017?
|
|
|
A:
|
Dealer machine and
engine inventories decreased about $800 million in the fourth
quarter of 2016, compared with a decrease of about $1.0 billion in
the fourth quarter of 2015. For the full year of 2016, dealer
machine and engine inventories decreased about $1.6 billion,
compared with a decrease of about $1.0 billion for the full year of
2015.
|
|
|
|
The level of dealer
inventories at the end of 2017 will depend on dealer expectations
for business in 2018. Our outlook range reflects an expectation
that dealers will not reduce inventories in 2017 as much as they
did in 2016.
|
|
|
Q4:
|
Can you discuss
the decline in Caterpillar inventory in the fourth quarter of
2016?
|
|
|
A:
|
Caterpillar inventory
declined about $900 million during the fourth quarter of 2016. A
fourth-quarter decrease is not unusual, as some of our businesses
ship long lead-time capital goods in the fourth quarter. For
the full year of 2016, Caterpillar inventory declined about $1.1
billion.
|
|
|
Q5:
|
Can you discuss
changes to your order backlog by segment?
|
|
|
A:
|
At the end of 2016,
the order backlog was about $12.1 billion. This represents about a
$500 million increase from the end of the third quarter of 2016.
The increase was in both Construction Industries and Resource
Industries, more significantly in Construction Industries. A
decline in Energy & Transportation partially offset the
increase.
|
|
|
|
Compared with
year-end 2015, the order backlog declined about $900 million. The
decrease was in Energy & Transportation and Construction
Industries, partially offset by an increase in Resource
Industries.
|
|
|
Q6:
|
Can you comment on
expense related to your 2016 short-term incentive compensation
plans? What are plans for 2017?
|
|
|
A:
|
Short-term incentive
compensation expense is directly related to financial and
operational performance measured against targets set annually.
Fourth-quarter 2016 expense was about $50 million and full-year
2016 expense was about $250 million. Fourth-quarter 2015 expense
was about $45 million and full-year 2015 expense was about $585
million.
|
|
|
|
For 2017, our outlook
includes short-term incentive compensation of about $750
million.
|
|
|
Q7:
|
Can you give us an
update on how Cat Financial is performing?
|
|
|
A:
|
Cat Financial's
portfolio continues to perform well overall despite ongoing
weakness in many key end markets. Fourth-quarter 2016 past dues
were 2.38 percent, compared with 2.14 percent in the fourth quarter
of 2015, with current past dues remaining lower than historical
averages. Write-offs in the fourth quarter of 2016 were $30
million, or 0.45 percent of the average retail portfolio, compared
with $36 million, or 0.55 percent of the average retail portfolio
in the fourth quarter of 2015, and slightly below historical
averages for the fourth quarter.
|
|
|
Q8:
|
Can you comment on
your balance sheet and cash priorities?
|
|
|
A:
|
The ME&T
debt-to-capital ratio was 41.0 percent at the end of
2016, compared with 39.0 percent at the end of 2015. Our cash and
liquidity positions remain strong with an enterprise cash balance
of $7.168 billion as of year-end 2016. ME&T operating cash flow
for the full year of 2016 was $3.857 billion, compared with $5.175
billion in 2015. The decline was primarily due to impacts from
lower profit. During the year, ME&T capital expenditures
totaled $1.206 billion, and funding for defined benefit pension
plans was about $150 million.
|
|
|
|
Although our
short-term priorities for the use of cash may vary from time to
time as business needs and conditions dictate, our long-term cash
deployment strategy remains unchanged: to maintain a strong
financial position in support of our credit rating, provide capital
to support growth, appropriately fund employee benefit plans, pay
dividends and repurchase common stock.
|
GLOSSARY OF TERMS
1.
|
All Other
Segments – Primarily includes activities such as: the business
strategy, product management, development, and manufacturing of
filters and fluids, undercarriage, tires and rims, ground engaging
tools, fluid transfer products, precision seals and rubber, and
sealing and connecting components primarily for Cat® products;
parts distribution; distribution services responsible for dealer
development and administration including a wholly owned dealer in
Japan, dealer portfolio management and ensuring the most efficient
and effective distribution of machines, engines and parts; digital
investments for new customer and dealer solutions that integrate
data analytics with state-of-the art digital technologies while
transforming the buying experience.
|
|
|
2.
|
Consolidating
Adjustments – Elimination of transactions between Machinery,
Energy & Transportation and Financial Products.
|
|
|
3.
|
Construction
Industries – A segment primarily responsible for supporting
customers using machinery in infrastructure, forestry and building
construction applications. Responsibilities include business
strategy, product design, product management and development,
manufacturing, marketing and sales and product support. The product
portfolio includes backhoe loaders, small wheel loaders, small
track-type tractors, skid steer loaders, multi-terrain loaders,
mini excavators, compact wheel loaders, telehandlers, select work
tools, small, medium and large track excavators, wheel excavators,
medium wheel loaders, compact track loaders, medium track-type
tractors, track-type loaders, motor graders, pipelayers, forestry
and paving products.
|
|
|
4.
|
Currency –
With respect to sales and revenues, currency represents the
translation impact on sales resulting from changes in foreign
currency exchange rates versus the U.S. dollar. With respect to
operating profit, currency represents the net translation impact on
sales and operating costs resulting from changes in foreign
currency exchange rates versus the U.S. dollar. Currency includes
the impact on sales and operating profit for the Machinery, Energy
& Transportation lines of business only; currency impacts on
Financial Products' revenues and operating profit are included in
the Financial Products' portions of the respective analyses. With
respect to other income/expense, currency represents the effects of
forward and option contracts entered into by the company to reduce
the risk of fluctuations in exchange rates (hedging) and the net
effect of changes in foreign currency exchange rates on our foreign
currency assets and liabilities for consolidated results
(translation).
|
|
|
5.
|
Debt-to-Capital
Ratio – A key measure of Machinery, Energy &
Transportation's financial strength used by management. The
metric is defined as Machinery, Energy & Transportation's
short-term borrowings, long-term debt due within one year and
long-term debt due after one year (debt) divided by the sum of
Machinery, Energy & Transportation's debt and stockholders'
equity. Debt also includes Machinery, Energy & Transportation's
long-term borrowings from Financial Products.
|
|
|
6.
|
EAME – A
geographic region including Europe, Africa, the Middle East and the
Commonwealth of Independent States (CIS).
|
|
|
7.
|
Earning Assets
– Assets consisting primarily of total finance receivables net of
unearned income, plus equipment on operating leases, less
accumulated depreciation at Cat Financial.
|
|
|
8.
|
Energy &
Transportation – A segment primarily responsible for supporting
customers using reciprocating engines, turbines, diesel-electric
locomotives and related parts across industries serving power
generation, industrial, oil and gas and transportation
applications, including marine and rail-related businesses.
Responsibilities include business strategy, product design, product
management and development, manufacturing, marketing and sales and
product support of turbines and turbine-related services,
reciprocating engine powered generator sets, integrated systems
used in the electric power generation industry, reciprocating
engines and integrated systems and solutions for the marine and oil
and gas industries; reciprocating engines supplied to the
industrial industry as well as Cat machinery; the remanufacturing
of Cat engines and components and remanufacturing services for
other companies; the business strategy, product design, product
management and development, manufacturing, remanufacturing, leasing
and service of diesel-electric locomotives and components and other
rail-related products and services and product support of
on-highway vocational trucks for North America.
|
|
|
9.
|
Financial Products
Segment – Provides financing to customers and dealers for
the purchase and lease of Cat and other equipment, as well as some
financing for Caterpillar sales to dealers. Financing plans include
operating and finance leases, installment sale contracts, working
capital loans and wholesale financing plans. The segment also
provides various forms of insurance to customers and dealers to
help support the purchase and lease of our equipment. Financial
Products segment profit is determined on a pretax basis and
includes other income/expense items.
|
|
|
10.
|
Latin America
– A geographic region including Central and South American
countries and Mexico.
|
|
|
11.
|
Machinery, Energy
& Transportation (ME&T) – Represents the aggregate
total of Construction Industries, Resource Industries, Energy &
Transportation and All Other Segments and related corporate items
and eliminations.
|
|
|
12.
|
Machinery, Energy
& Transportation Other Operating (Income) Expenses
– Comprised primarily of gains/losses on disposal of
long-lived assets, gains/losses on divestitures and legal
settlements and accruals. Restructuring costs classified as other
operating expenses on the Results of Operations are presented
separately on the Operating Profit Comparison.
|
|
|
13.
|
Mark-to-market
gains and losses – For our defined benefit pension and OPEB
plans, represents the net gain or loss of actual results differing
from our assumptions and the effects of changing assumptions. These
gains and losses are immediately recognized through earnings upon
the annual remeasurement in the fourth quarter, or on an interim
basis as triggering events warrant remeasurement.
|
|
|
14.
|
Operating Profit
Pull Through – A key metric used by management to measure the
rate of operating profit change relative to the change in sales and
revenues. The metric is defined as the change in operating profit
divided by the change in sales and revenues. Excludes restructuring
costs, mark-to-market gains or losses resulting from pension and
OPEB plan remeasurements and goodwill impairment
charges.
|
|
|
15.
|
Pension and other
postemployment benefit (OPEB) – The company's defined benefit
pension and postretirement benefit plans.
|
|
|
16.
|
Period Costs –
Includes period manufacturing costs, ME&T selling, general and
administrative (SG&A) and research and development (R&D)
expenses excluding the impact of currency, exit-related costs that
are included in restructuring costs (see definition below) and
mark-to-market gains or losses (see definition above). Period
manufacturing costs support production but are defined as generally
not having a direct relationship to short-term changes in volume.
Examples include machinery and equipment repair, depreciation on
manufacturing assets, facility support, procurement, factory
scheduling, manufacturing planning and operations management.
SG&A and R&D costs are not linked to the production of
goods or services and include marketing, legal and financial
services and the development of new and significant improvements in
products or processes.
|
|
|
17.
|
Price
Realization – The impact of net price changes excluding
currency and new product introductions. Price realization includes
geographic mix of sales, which is the impact of changes in the
relative weighting of sales prices between geographic
regions.
|
|
|
18.
|
Resource
Industries – A segment primarily responsible for supporting
customers using machinery in mining, quarry, waste, and material
handling applications. Responsibilities include business strategy,
product design, product management and development, manufacturing,
marketing and sales and product support. The product portfolio
includes large track-type tractors, large mining trucks, hard rock
vehicles, longwall miners, electric rope shovels, draglines,
hydraulic shovels, track and rotary drills, highwall miners, large
wheel loaders, off-highway trucks, articulated trucks, wheel
tractor scrapers, wheel dozers, landfill compactors, soil
compactors, material handlers, continuous miners, scoops and
haulers, hardrock continuous mining systems, select work tools,
machinery components and electronics and control systems. In
addition to equipment, Resource Industries also develops and sells
technology to provide customers fleet management, equipment
management analytics and autonomous machine capabilities. Resource
Industries also manages areas that provide services to other parts
of the company, including integrated manufacturing and research and
development.
|
|
|
19.
|
Restructuring
Costs – Primarily costs for employee separation costs,
long-lived asset impairments and contract terminations. These costs
are included in Other Operating (Income) Expenses. Restructuring
costs also include other exit-related costs primarily for inventory
write-downs, accelerated depreciation and equipment relocation
(primarily included in Cost of goods sold) and sales discounts and
payments to dealers and customers related to discontinued products
(included in Sales of ME&T).
|
|
|
20.
|
Sales Volume –
With respect to sales and revenues, sales volume represents the
impact of changes in the quantities sold for Machinery, Energy
& Transportation as well as the incremental revenue impact of
new product introductions, including emissions-related product
updates. With respect to operating profit, sales volume represents
the impact of changes in the quantities sold for Machinery, Energy
& Transportation combined with product mix as well as the net
operating profit impact of new product introductions, including
emissions-related product updates. Product mix represents the net
operating profit impact of changes in the relative weighting of
Machinery, Energy & Transportation sales with respect to total
sales.
|
|
|
21.
|
Surface Mining
& Technology – A goodwill reporting unit included in
Resource Industries. Its product portfolio includes large mining
trucks, electric rope shovels, draglines, hydraulic shovels and
related parts. In addition to equipment, Surface Mining &
Technology also develops and sells technology products and services
to provide customer fleet management, equipment management
analytics and autonomous machine capabilities.
|
|
|
22.
|
Variable
Manufacturing Costs – Represents volume-adjusted costs
excluding the impact of currency and restructuring costs (see
definition above). Variable manufacturing costs are defined as
having a direct relationship with the volume of production. This
includes material costs, direct labor and other costs that vary
directly with production volume such as freight, power to operate
machines and supplies that are consumed in the manufacturing
process.
|
NON-GAAP FINANCIAL MEASURES
The following definitions are provided for "non-GAAP financial
measures" in connection with Regulation G issued by the Securities
and Exchange Commission. 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 substituted for the related GAAP
measure.
Adjusted Profit
We believe it is important to separately quantify the profit
impact of several special items in order for our results to be
meaningful to our readers. These items consist of (i) restructuring
costs, which are incurred in the current year to generate longer
term benefits, (ii) pension and OPEB mark-to-market losses
resulting from plan remeasurements, (iii) goodwill impairment
charges and (iv) state deferred tax valuation allowances. We do not
consider these items indicative of earnings from ongoing business
activities and believe the non-GAAP measure will provide useful
perspective on underlying business results and trends, and a means
to assess our period-over-period results.
Reconciliations of adjusted profit before taxes to the most
directly comparable GAAP measure, consolidated profit before taxes,
are as follows:
|
|
|
Fourth
Quarter
|
|
Full
Year
|
|
|
(millions of
dollars)
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
|
Profit (Loss) before
taxes
|
($247)
|
|
($1,348)
|
|
$3,439
|
|
$139
|
|
|
Restructuring
costs
|
$679
|
|
$395
|
|
$898
|
|
$1,019
|
|
|
Mark-to-market
losses
|
$214
|
|
$985
|
|
$179
|
|
$985
|
|
|
Goodwill
impairment
|
-
|
|
$595
|
|
-
|
|
$595
|
|
|
Adjusted profit
before taxes
|
$646
|
|
$627
|
|
$4,516
|
|
$2,738
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of adjusted profit per share to the most
directly comparable GAAP measure, diluted profit per share, are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Full
Year
|
|
Outlook
|
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
20161
|
|
20172
|
Profit (Loss) per
share
|
($0.16)
|
|
($2.00)
|
|
$4.18
|
|
($0.11)
|
|
$2.35
|
|
$2.30
|
Per share
restructuring costs3
|
$0.76
|
|
$0.45
|
|
$0.98
|
|
$1.16
|
|
$0.90
|
|
$0.60
|
Per share
mark-to-market losses3
|
$0.23
|
|
$1.14
|
|
$0.19
|
|
$1.15
|
|
-
|
|
-
|
Per share goodwill
impairment4
|
-
|
|
$0.98
|
|
-
|
|
$0.98
|
|
-
|
|
-
|
Per share state
deferred tax valuation allowance
|
-
|
|
$0.24
|
|
-
|
|
$0.24
|
|
-
|
|
-
|
Adjusted profit per
share
|
$0.83
|
|
$0.83
|
|
$5.35
|
|
$3.42
|
|
$3.25
|
|
$2.90
|
Per share amounts
computed using fully diluted shares outstanding except for
consolidated loss per share, which was computed using basic shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 2016
outlook as of October 25, 2016. Sales and Revenues Outlook of about
$39 billion.
|
2 2017
Sales and Revenues Outlook in a range of $36 billion to $39
billion. Profit per share at midpoint.
|
1-2
Outlook profit per share does not include any impact from
mark-to-market gains or losses resulting from pension and OPEB plan
remeasurements.
|
3 At
statutory tax
rates.
|
4Includes
a $17 million tax benefit.
|
Machinery, Energy & Transportation
Caterpillar defines Machinery, Energy & Transportation as it
is presented in the supplemental data as Caterpillar Inc. and its
subsidiaries with Financial Products accounted for on the equity
basis. Machinery, Energy & Transportation information
relates to the design, manufacture and marketing of our products.
Financial Products' information relates to the financing to
customers and dealers for the purchase and lease of Caterpillar and
other equipment. The nature of these businesses is different,
especially with regard to the financial position and cash flow
items. Caterpillar management utilizes this presentation internally
to highlight these differences. We also believe this presentation
will assist readers in understanding our business. Pages 23-31
reconcile Machinery, Energy & Transportation with Financial
Products on the equity basis to Caterpillar Inc. consolidated
financial information.
Caterpillar's latest financial results and outlook are also
available via:
Telephone:
|
800-228-7717 (Inside
the United States and Canada)
|
|
858-764-9492 (Outside
the United States and Canada)
|
Internet:
|
|
|
http://www.caterpillar.com/en/investors.html
|
|
http://www.caterpillar.com/en/investors/quarterly-results.html
(live broadcast/replays of quarterly conference call)
|
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,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
8,885
|
|
|
|
$
|
10,318
|
|
|
|
$
|
35,773
|
|
|
|
$
|
44,147
|
|
|
|
Revenues of Financial
Products
|
|
689
|
|
|
|
|
712
|
|
|
|
|
2,764
|
|
|
|
|
2,864
|
|
|
|
Total sales and
revenues
|
|
9,574
|
|
|
|
|
11,030
|
|
|
|
|
38,537
|
|
|
|
|
47,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
7,541
|
|
|
|
|
8,240
|
|
|
|
|
28,309
|
|
|
|
|
33,546
|
|
|
|
Selling, general and
administrative expenses
|
|
1,483
|
|
|
|
|
1,255
|
|
|
|
|
4,686
|
|
|
|
|
4,951
|
|
|
|
Research and
development expenses
|
|
522
|
|
|
|
|
572
|
|
|
|
|
1,951
|
|
|
|
|
2,119
|
|
|
|
Interest expense of
Financial Products
|
|
149
|
|
|
|
|
147
|
|
|
|
|
596
|
|
|
|
|
587
|
|
|
|
Goodwill impairment
charge
|
|
595
|
|
|
|
|
—
|
|
|
|
|
595
|
|
|
|
|
—
|
|
|
|
Other operating
(income) expenses
|
|
546
|
|
|
|
|
991
|
|
|
|
|
1,902
|
|
|
|
|
2,023
|
|
|
|
Total operating
costs
|
|
10,836
|
|
|
|
|
11,205
|
|
|
|
|
38,039
|
|
|
|
|
43,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
(1,262)
|
|
|
|
|
(175)
|
|
|
|
|
498
|
|
|
|
|
3,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
120
|
|
|
|
|
126
|
|
|
|
|
505
|
|
|
|
|
507
|
|
|
|
Other income
(expense)
|
|
34
|
|
|
|
|
54
|
|
|
|
|
146
|
|
|
|
|
161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit (loss) before taxes
|
|
(1,348)
|
|
|
|
|
(247)
|
|
|
|
|
139
|
|
|
|
|
3,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
(180)
|
|
|
|
|
(158)
|
|
|
|
|
192
|
|
|
|
|
916
|
|
|
|
Profit (loss) of
consolidated companies
|
|
(1,168)
|
|
|
|
|
(89)
|
|
|
|
|
(53)
|
|
|
|
|
2,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
1
|
|
|
|
|
(1)
|
|
|
|
|
(6)
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) of
consolidated and affiliated companies
|
|
(1,167)
|
|
|
|
|
(90)
|
|
|
|
|
(59)
|
|
|
|
|
2,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
4
|
|
|
|
|
4
|
|
|
|
|
8
|
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
1
|
$
|
(1,171)
|
|
|
|
$
|
(94)
|
|
|
|
$
|
(67)
|
|
|
|
$
|
2,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) per
common share
|
$
|
(2.00)
|
|
|
|
$
|
(0.16)
|
|
|
|
$
|
(0.11)
|
|
|
|
$
|
4.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) per
common share – diluted 2,3
|
$
|
(2.00)
|
|
|
|
$
|
(0.16)
|
|
|
|
$
|
(0.11)
|
|
|
|
$
|
4.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares
outstanding (millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
585.8
|
|
|
|
|
582.3
|
|
|
|
|
584.3
|
|
|
|
|
594.3
|
|
|
|
- Diluted
2,3
|
|
585.8
|
|
|
|
|
582.3
|
|
|
|
|
584.3
|
|
|
|
|
601.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
|
1.54
|
|
|
|
$
|
1.54
|
|
|
|
$
|
3.08
|
|
|
|
$
|
3.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Profit (loss)
attributable to common stockholders.
|
2
|
Diluted by assumed
exercise of stock-based compensation awards using the treasury
stock method.
|
3
|
In the three months
ended December 31, 2016 and 2015 and in the twelve months ended
December 31, 2016, the assumed exercise of stock-based compensation
awards was not considered because the impact would be
antidilutive.
|
Caterpillar
Inc.
Condensed
Consolidated Statement of Financial Position
(Unaudited)
(Millions of
dollars)
|
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
$
|
7,168
|
|
|
|
$
|
6,460
|
|
|
|
|
Receivables - trade
and other
|
|
5,981
|
|
|
|
|
6,695
|
|
|
|
|
Receivables -
finance
|
|
8,522
|
|
|
|
|
8,991
|
|
|
|
|
Prepaid expenses and
other current assets
|
|
1,682
|
|
|
|
|
1,662
|
|
|
|
|
Inventories
|
|
8,614
|
|
|
|
|
9,700
|
|
|
|
Total current
assets
|
|
31,967
|
|
|
|
|
33,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment – net
|
|
15,322
|
|
|
|
|
16,090
|
|
|
|
Long-term receivables
- trade and other
|
|
1,029
|
|
|
|
|
1,170
|
|
|
|
Long-term receivables
- finance
|
|
13,556
|
|
|
|
|
13,651
|
|
|
|
Noncurrent deferred
and refundable income taxes
|
|
2,790
|
|
|
|
|
2,489
|
|
|
|
Intangible
assets
|
|
2,349
|
|
|
|
|
2,821
|
|
|
|
Goodwill
|
|
6,020
|
|
|
|
|
6,615
|
|
|
|
Other
assets
|
|
1,671
|
|
|
|
|
1,998
|
|
|
Total
assets
|
$
|
74,704
|
|
|
|
$
|
78,342
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
$
|
209
|
|
|
|
$
|
9
|
|
|
|
|
|
-- Financial
Products
|
|
7,094
|
|
|
|
|
6,958
|
|
|
|
|
Accounts
payable
|
|
4,614
|
|
|
|
|
5,023
|
|
|
|
|
Accrued
expenses
|
|
3,003
|
|
|
|
|
3,116
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
1,296
|
|
|
|
|
1,994
|
|
|
|
|
Customer
advances
|
|
1,167
|
|
|
|
|
1,146
|
|
|
|
|
Dividends
payable
|
|
452
|
|
|
|
|
448
|
|
|
|
|
Other current
liabilities
|
|
1,635
|
|
|
|
|
1,671
|
|
|
|
|
Long-term debt due
within one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
507
|
|
|
|
|
517
|
|
|
|
|
|
-- Financial
Products
|
|
6,155
|
|
|
|
|
5,360
|
|
|
|
Total current
liabilities
|
|
26,132
|
|
|
|
|
26,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt due
after one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
8,436
|
|
|
|
|
8,960
|
|
|
|
|
|
-- Financial
Products
|
|
14,382
|
|
|
|
|
16,209
|
|
|
|
Liability for
postemployment benefits
|
|
9,357
|
|
|
|
|
8,843
|
|
|
|
Other
liabilities
|
|
3,184
|
|
|
|
|
3,203
|
|
|
Total
liabilities
|
|
61,491
|
|
|
|
|
63,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
5,277
|
|
|
|
|
5,238
|
|
|
|
Treasury
stock
|
|
(17,478)
|
|
|
|
|
(17,640)
|
|
|
|
Profit employed in
the business
|
|
27,377
|
|
|
|
|
29,246
|
|
|
|
Accumulated other
comprehensive income (loss)
|
|
(2,039)
|
|
|
|
|
(2,035)
|
|
|
|
Noncontrolling
interests
|
|
76
|
|
|
|
|
76
|
|
|
Total
stockholders' equity
|
|
13,213
|
|
|
|
|
14,885
|
|
|
Total liabilities
and stockholders' equity
|
$
|
74,704
|
|
|
|
$
|
78,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Caterpillar
Inc.
Condensed
Consolidated Statement of Cash Flow
(Unaudited)
(Millions of
dollars)
|
|
|
Twelve Months
Ended
|
|
December
31,
|
|
2016
|
|
2015
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) of
consolidated and affiliated companies
|
$
|
(59)
|
|
|
|
$
|
2,523
|
|
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
3,034
|
|
|
|
|
3,046
|
|
|
|
|
Actuarial (gain) loss
on pension and postretirement benefits
|
|
985
|
|
|
|
|
179
|
|
|
|
|
Provision (benefit)
for deferred income taxes
|
|
(431)
|
|
|
|
|
(307)
|
|
|
|
|
Goodwill impairment
charge
|
|
595
|
|
|
|
|
—
|
|
|
|
|
Other
|
|
856
|
|
|
|
|
453
|
|
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
Receivables – trade
and other
|
|
829
|
|
|
|
|
764
|
|
|
|
|
Inventories
|
|
1,109
|
|
|
|
|
2,274
|
|
|
|
|
Accounts
payable
|
|
(200)
|
|
|
|
|
(1,165)
|
|
|
|
|
Accrued
expenses
|
|
(201)
|
|
|
|
|
(199)
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(708)
|
|
|
|
|
(389)
|
|
|
|
|
Customer
advances
|
|
(37)
|
|
|
|
|
(501)
|
|
|
|
|
Other assets –
net
|
|
224
|
|
|
|
|
143
|
|
|
|
|
Other liabilities –
net
|
|
(388)
|
|
|
|
|
(146)
|
|
|
Net cash provided by
(used for) operating activities
|
|
5,608
|
|
|
|
|
6,675
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
– excluding equipment leased to others
|
|
(1,109)
|
|
|
|
|
(1,388)
|
|
|
|
Expenditures for
equipment leased to others
|
|
(1,819)
|
|
|
|
|
(1,873)
|
|
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
899
|
|
|
|
|
760
|
|
|
|
Additions to finance
receivables
|
|
(9,339)
|
|
|
|
|
(9,929)
|
|
|
|
Collections of
finance receivables
|
|
9,369
|
|
|
|
|
9,247
|
|
|
|
Proceeds from sale of
finance receivables
|
|
127
|
|
|
|
|
136
|
|
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(191)
|
|
|
|
|
(400)
|
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
|
—
|
|
|
|
|
178
|
|
|
|
Proceeds from sale of
securities
|
|
694
|
|
|
|
|
351
|
|
|
|
Investments in
securities
|
|
(391)
|
|
|
|
|
(485)
|
|
|
|
Other –
net
|
|
—
|
|
|
|
|
(114)
|
|
|
Net cash provided by
(used for) investing activities
|
|
(1,760)
|
|
|
|
|
(3,517)
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(1,799)
|
|
|
|
|
(1,757)
|
|
|
|
Distribution to
noncontrolling interests
|
|
(8)
|
|
|
|
|
(7)
|
|
|
|
Common stock issued,
including treasury shares reissued
|
|
(23)
|
|
|
|
|
33
|
|
|
|
Treasury shares
purchased
|
|
—
|
|
|
|
|
(2,025)
|
|
|
|
Excess tax benefit
from stock-based compensation
|
|
28
|
|
|
|
|
24
|
|
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
5,115
|
|
|
|
|
5,132
|
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(6,565)
|
|
|
|
|
(8,292)
|
|
|
|
Short-term borrowings
- net (original maturities three months or less)
|
|
140
|
|
|
|
|
3,022
|
|
|
Net cash provided by
(used for) financing activities
|
|
(3,112)
|
|
|
|
|
(3,870)
|
|
|
Effect of exchange
rate changes on cash
|
|
(28)
|
|
|
|
|
(169)
|
|
|
Increase
(decrease) in cash and short-term investments
|
|
708
|
|
|
|
|
(881)
|
|
|
Cash and short-term
investments at beginning of period
|
|
6,460
|
|
|
|
|
7,341
|
|
|
Cash and short-term
investments at end of period
|
$
|
7,168
|
|
|
|
$
|
6,460
|
|
|
|
All short-term
investments, which consist primarily of highly liquid investments
with original maturities of three months or less, are considered to
be cash equivalents.
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Three Months Ended December 31, 2016
(Unaudited)
(Millions of dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
8,885
|
|
|
|
$
|
8,885
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
|
689
|
|
|
|
|
—
|
|
|
|
|
760
|
|
|
|
|
(71)
|
2
|
|
Total sales and
revenues
|
|
9,574
|
|
|
|
|
8,885
|
|
|
|
|
760
|
|
|
|
|
(71)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
7,541
|
|
|
|
|
7,542
|
|
|
|
|
—
|
|
|
|
|
(1)
|
3
|
|
Selling, general and
administrative expenses
|
|
1,483
|
|
|
|
|
1,335
|
|
|
|
|
149
|
|
|
|
|
(1)
|
3
|
|
Research and
development expenses
|
|
522
|
|
|
|
|
522
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
|
149
|
|
|
|
|
—
|
|
|
|
|
153
|
|
|
|
|
(4)
|
4
|
|
Goodwill impairment
charge
|
|
595
|
|
|
|
|
595
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Other operating
(income) expenses
|
|
546
|
|
|
|
|
236
|
|
|
|
|
318
|
|
|
|
|
(8)
|
3
|
|
Total operating
costs
|
|
10,836
|
|
|
|
|
10,230
|
|
|
|
|
620
|
|
|
|
|
(14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
(1,262)
|
|
|
|
|
(1,345)
|
|
|
|
|
140
|
|
|
|
|
(57)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
120
|
|
|
|
|
131
|
|
|
|
|
—
|
|
|
|
|
(11)
|
4
|
|
Other income
(expense)
|
|
34
|
|
|
|
|
(17)
|
|
|
|
|
5
|
|
|
|
|
46
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit (loss) before taxes
|
|
(1,348)
|
|
|
|
|
(1,493)
|
|
|
|
|
145
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
(180)
|
|
|
|
|
(222)
|
|
|
|
|
42
|
|
|
|
|
—
|
|
|
Profit (loss) of
consolidated companies
|
|
(1,168)
|
|
|
|
|
(1,271)
|
|
|
|
|
103
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
1
|
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
101
|
|
|
|
|
—
|
|
|
|
|
(101)
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) of
consolidated and affiliated companies
|
|
(1,167)
|
|
|
|
|
(1,169)
|
|
|
|
|
103
|
|
|
|
|
(101)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
4
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
7
|
$
|
(1,171)
|
|
|
|
$
|
(1,171)
|
|
|
|
$
|
101
|
|
|
|
$
|
(101)
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' revenues earned from Machinery, Energy &
Transportation.
|
3
|
Elimination of net
expenses recorded by Machinery, Energy & Transportation paid to
Financial Products.
|
4
|
Elimination of
interest expense recorded between Financial Products and Machinery,
Energy & Transportation.
|
5
|
Elimination of
discount recorded by Machinery, Energy & Transportation on
receivables sold to Financial Products and of interest earned
between Machinery, Energy & Transportation and Financial
Products.
|
6
|
Elimination of
Financial Products' profit due to equity method of
accounting.
|
7
|
Profit (loss)
attributable to common stockholders.
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Three Months Ended December 31, 2015
(Unaudited)
(Millions of dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
10,318
|
|
|
|
$
|
10,318
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
|
712
|
|
|
|
|
—
|
|
|
|
|
789
|
|
|
|
|
(77)
|
2
|
|
Total sales and
revenues
|
|
11,030
|
|
|
|
|
10,318
|
|
|
|
|
789
|
|
|
|
|
(77)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
8,240
|
|
|
|
|
8,242
|
|
|
|
|
—
|
|
|
|
|
(2)
|
3
|
|
Selling, general and
administrative expenses
|
|
1,255
|
|
|
|
|
1,120
|
|
|
|
|
144
|
|
|
|
|
(9)
|
3
|
|
Research and
development expenses
|
|
572
|
|
|
|
|
572
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
|
147
|
|
|
|
|
—
|
|
|
|
|
148
|
|
|
|
|
(1)
|
4
|
|
Other operating
(income) expenses
|
|
991
|
|
|
|
|
672
|
|
|
|
|
321
|
|
|
|
|
(2)
|
3
|
|
Total operating
costs
|
|
11,205
|
|
|
|
|
10,606
|
|
|
|
|
613
|
|
|
|
|
(14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
(175)
|
|
|
|
|
(288)
|
|
|
|
|
176
|
|
|
|
|
(63)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
126
|
|
|
|
|
137
|
|
|
|
|
—
|
|
|
|
|
(11)
|
4
|
|
Other income
(expense)
|
|
54
|
|
|
|
|
(24)
|
|
|
|
|
26
|
|
|
|
|
52
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit (loss) before taxes
|
|
(247)
|
|
|
|
|
(449)
|
|
|
|
|
202
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
(158)
|
|
|
|
|
(199)
|
|
|
|
|
41
|
|
|
|
|
—
|
|
|
Profit (loss) of
consolidated companies
|
|
(89)
|
|
|
|
|
(250)
|
|
|
|
|
161
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
(1)
|
|
|
|
|
(1)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
162
|
|
|
|
|
—
|
|
|
|
|
(162)
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) of
consolidated and affiliated companies
|
|
(90)
|
|
|
|
|
(89)
|
|
|
|
|
161
|
|
|
|
|
(162)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
4
|
|
|
|
|
5
|
|
|
|
|
(1)
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
7
|
$
|
(94)
|
|
|
|
$
|
(94)
|
|
|
|
$
|
162
|
|
|
|
$
|
(162)
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' revenues earned from Machinery, Energy &
Transportation.
|
3
|
Elimination of net
expenses recorded by Machinery, Energy & Transportation paid to
Financial Products.
|
4
|
Elimination of
interest expense recorded between Financial Products and Machinery,
Energy & Transportation.
|
5
|
Elimination of
discount recorded by Machinery, Energy & Transportation on
receivables sold to Financial Products and of interest earned between Machinery, Energy &
Transportation and Financial Products.
|
6
|
Elimination of
Financial Products' profit due to equity method of
accounting.
|
7
|
Profit (loss)
attributable to common stockholders.
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Twelve Months Ended December 31, 2016
(Unaudited)
(Millions of dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy
&
Transportation
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
35,773
|
|
|
|
$
|
35,773
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
|
2,764
|
|
|
|
|
—
|
|
|
|
|
3,065
|
|
|
|
|
(301)
|
2
|
|
Total sales and
revenues
|
|
38,537
|
|
|
|
|
35,773
|
|
|
|
|
3,065
|
|
|
|
|
(301)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
28,309
|
|
|
|
|
28,311
|
|
|
|
|
—
|
|
|
|
|
(2)
|
3
|
|
Selling, general and
administrative expenses
|
|
4,686
|
|
|
|
|
4,129
|
|
|
|
|
573
|
|
|
|
|
(16)
|
3
|
|
Research and
development expenses
|
|
1,951
|
|
|
|
|
1,951
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
|
596
|
|
|
|
|
—
|
|
|
|
|
611
|
|
|
|
|
(15)
|
4
|
|
Goodwill impairment
charge
|
|
595
|
|
|
|
|
595
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Other operating
(income) expenses
|
|
1,902
|
|
|
|
|
698
|
|
|
|
|
1,232
|
|
|
|
|
(28)
|
3
|
|
Total operating
costs
|
|
38,039
|
|
|
|
|
35,684
|
|
|
|
|
2,416
|
|
|
|
|
(61)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
498
|
|
|
|
|
89
|
|
|
|
|
649
|
|
|
|
|
(240)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
505
|
|
|
|
|
553
|
|
|
|
|
—
|
|
|
|
|
(48)
|
4
|
|
Other income
(expense)
|
|
146
|
|
|
|
|
(89)
|
|
|
|
|
43
|
|
|
|
|
192
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit (loss) before taxes
|
|
139
|
|
|
|
|
(553)
|
|
|
|
|
692
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
192
|
|
|
|
|
(24)
|
|
|
|
|
216
|
|
|
|
|
—
|
|
|
Profit (loss) of
consolidated companies
|
|
(53)
|
|
|
|
|
(529)
|
|
|
|
|
476
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
(6)
|
|
|
|
|
(6)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
470
|
|
|
|
|
—
|
|
|
|
|
(470)
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) of
consolidated and affiliated companies
|
|
(59)
|
|
|
|
|
(65)
|
|
|
|
|
476
|
|
|
|
|
(470)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
8
|
|
|
|
|
2
|
|
|
|
|
6
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
7
|
$
|
(67)
|
|
|
|
$
|
(67)
|
|
|
|
$
|
470
|
|
|
|
$
|
(470)
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' revenues earned from Machinery, Energy &
Transportation.
|
3
|
Elimination of net
expenses recorded by Machinery, Energy & Transportation paid to
Financial Products.
|
4
|
Elimination of
interest expense recorded between Financial Products and Machinery,
Energy & Transportation.
|
5
|
Elimination of
discount recorded by Machinery, Energy & Transportation on
receivables sold to Financial Products and of interest earned
between Machinery, Energy & Transportation and Financial
Products.
|
6
|
Elimination of
Financial Products' profit due to equity method of
accounting.
|
7
|
Profit (loss)
attributable to common stockholders.
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Twelve Months Ended December 31, 2015
(Unaudited)
(Millions of dollars)
|
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
|
Machinery,
|
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
44,147
|
|
|
|
$
|
44,147
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
|
2,864
|
|
|
|
|
—
|
|
|
|
|
3,179
|
|
|
|
|
(315)
|
2
|
|
Total sales and
revenues
|
|
47,011
|
|
|
|
|
44,147
|
|
|
|
|
3,179
|
|
|
|
|
(315)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
33,546
|
|
|
|
|
33,548
|
|
|
|
|
—
|
|
|
|
|
(2)
|
3
|
|
Selling, general and
administrative expenses
|
|
4,951
|
|
|
|
|
4,389
|
|
|
|
|
588
|
|
|
|
|
(26)
|
3
|
|
Research and
development expenses
|
|
2,119
|
|
|
|
|
2,119
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
|
587
|
|
|
|
|
—
|
|
|
|
|
593
|
|
|
|
|
(6)
|
4
|
|
Other operating
(income) expenses
|
|
2,023
|
|
|
|
|
821
|
|
|
|
|
1,224
|
|
|
|
|
(22)
|
3
|
|
Total operating
costs
|
|
43,226
|
|
|
|
|
40,877
|
|
|
|
|
2,405
|
|
|
|
|
(56)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
3,785
|
|
|
|
|
3,270
|
|
|
|
|
774
|
|
|
|
|
(259)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
507
|
|
|
|
|
550
|
|
|
|
|
—
|
|
|
|
|
(43)
|
4
|
|
Other income
(expense)
|
|
161
|
|
|
|
|
(103)
|
|
|
|
|
48
|
|
|
|
|
216
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
3,439
|
|
|
|
|
2,617
|
|
|
|
|
822
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
916
|
|
|
|
|
686
|
|
|
|
|
230
|
|
|
|
|
—
|
|
|
Profit of
consolidated companies
|
|
2,523
|
|
|
|
|
1,931
|
|
|
|
|
592
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
591
|
|
|
|
|
—
|
|
|
|
|
(591)
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
2,523
|
|
|
|
|
2,522
|
|
|
|
|
592
|
|
|
|
|
(591)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
11
|
|
|
|
|
10
|
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
2,512
|
|
|
|
$
|
2,512
|
|
|
|
$
|
591
|
|
|
|
$
|
(591)
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' revenues earned from Machinery, Energy &
Transportation.
|
3
|
Elimination of net
expenses recorded by Machinery, Energy & Transportation paid to
Financial Products.
|
4
|
Elimination of
interest expense recorded between Financial Products and Machinery,
Energy & Transportation.
|
5
|
Elimination of
discount recorded by Machinery, Energy & Transportation on
receivables sold to Financial Products and of interest earned
between Machinery, Energy & Transportation and Financial
Products.
|
6
|
Elimination of
Financial Products' profit due to equity method of
accounting.
|
7
|
Profit attributable
to common stockholders.
|
Caterpillar
Inc.
Supplemental Data
for Cash Flow
For the Twelve
Months Ended December 31, 2016
(Unaudited)
(Millions of
dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy
&
Transportation
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) of
consolidated and affiliated companies
|
$
|
(59)
|
|
|
|
$
|
(65)
|
|
|
|
$
|
476
|
|
|
|
$
|
(470)
|
2
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
3,034
|
|
|
|
|
2,144
|
|
|
|
|
890
|
|
|
|
|
—
|
|
|
|
Actuarial (gain) loss
on pension and postretirement benefits
|
|
985
|
|
|
|
|
985
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Provision (benefit)
for deferred income taxes
|
|
(431)
|
|
|
|
|
(533)
|
|
|
|
|
111
|
|
|
|
|
(9)
|
4
|
|
|
Goodwill impairment
charge
|
|
595
|
|
|
|
|
595
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Other
|
|
856
|
|
|
|
|
687
|
|
|
|
|
(36)
|
|
|
|
|
205
|
4
|
|
Financial Products'
dividend in excess of profit
|
|
—
|
|
|
|
|
162
|
|
|
|
|
—
|
|
|
|
|
(162)
|
3
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables - trade
and other
|
|
829
|
|
|
|
|
171
|
|
|
|
|
(34)
|
|
|
|
|
692
|
4,5
|
|
|
Inventories
|
|
1,109
|
|
|
|
|
1,113
|
|
|
|
|
—
|
|
|
|
|
(4)
|
4
|
|
|
Accounts
payable
|
|
(200)
|
|
|
|
|
(168)
|
|
|
|
|
31
|
|
|
|
|
(63)
|
4
|
|
|
Accrued
expenses
|
|
(201)
|
|
|
|
|
(142)
|
|
|
|
|
(59)
|
|
|
|
|
—
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(708)
|
|
|
|
|
(693)
|
|
|
|
|
(15)
|
|
|
|
|
—
|
|
|
|
Customer
advances
|
|
(37)
|
|
|
|
|
(37)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Other assets -
net
|
|
224
|
|
|
|
|
77
|
|
|
|
|
145
|
|
|
|
|
2
|
4
|
|
|
Other liabilities -
net
|
|
(388)
|
|
|
|
|
(439)
|
|
|
|
|
44
|
|
|
|
|
7
|
4
|
Net cash provided by
(used for) operating activities
|
|
5,608
|
|
|
|
|
3,857
|
|
|
|
|
1,553
|
|
|
|
|
198
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
- excluding equipment leased to others
|
|
(1,109)
|
|
|
|
|
(1,099)
|
|
|
|
|
(11)
|
|
|
|
|
1
|
4
|
|
Expenditures for
equipment leased to others
|
|
(1,819)
|
|
|
|
|
(107)
|
|
|
|
|
(1,760)
|
|
|
|
|
48
|
4
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
899
|
|
|
|
|
125
|
|
|
|
|
805
|
|
|
|
|
(31)
|
4
|
|
Additions to finance
receivables
|
|
(9,339)
|
|
|
|
|
—
|
|
|
|
|
(11,862)
|
|
|
|
|
2,523
|
5
|
|
Collections of
finance receivables
|
|
9,369
|
|
|
|
|
—
|
|
|
|
|
12,341
|
|
|
|
|
(2,972)
|
5
|
|
Net intercompany
purchased receivables
|
|
—
|
|
|
|
|
—
|
|
|
|
|
399
|
|
|
|
|
(399)
|
5
|
|
Proceeds from sale of
finance receivables
|
|
127
|
|
|
|
|
—
|
|
|
|
|
127
|
|
|
|
|
—
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
(542)
|
|
|
|
|
1
|
|
|
|
|
541
|
6
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(191)
|
|
|
|
|
(191)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Proceeds from sale of
securities
|
|
694
|
|
|
|
|
30
|
|
|
|
|
664
|
|
|
|
|
—
|
|
|
Investments in
securities
|
|
(391)
|
|
|
|
|
(24)
|
|
|
|
|
(367)
|
|
|
|
|
—
|
|
|
Other -
net
|
|
—
|
|
|
|
|
31
|
|
|
|
|
(38)
|
|
|
|
|
7
|
8
|
Net cash provided by
(used for) investing activities
|
|
(1,760)
|
|
|
|
|
(1,777)
|
|
|
|
|
299
|
|
|
|
|
(282)
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(1,799)
|
|
|
|
|
(1,799)
|
|
|
|
|
(632)
|
|
|
|
|
632
|
7
|
|
Distribution to
noncontrolling interests
|
|
(8)
|
|
|
|
|
(8)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Common stock issued,
including treasury shares reissued
|
|
(23)
|
|
|
|
|
(23)
|
|
|
|
|
7
|
|
|
|
|
(7)
|
8
|
|
Excess tax benefit
from stock-based compensation
|
|
28
|
|
|
|
|
28
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
(1)
|
|
|
|
|
542
|
|
|
|
|
(541)
|
6
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
5,115
|
|
|
|
|
6
|
|
|
|
|
5,109
|
|
|
|
|
—
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(6,565)
|
|
|
|
|
(533)
|
|
|
|
|
(6,032)
|
|
|
|
|
—
|
|
|
Short-term borrowings
- net (original maturities three months or less)
|
|
140
|
|
|
|
|
201
|
|
|
|
|
(61)
|
|
|
|
|
—
|
|
Net cash provided by
(used for) financing activities
|
|
(3,112)
|
|
|
|
|
(2,129)
|
|
|
|
|
(1,067)
|
|
|
|
|
84
|
|
Effect of exchange
rate changes on cash
|
|
(28)
|
|
|
|
|
(34)
|
|
|
|
|
6
|
|
|
|
|
—
|
|
Increase
(decrease) in cash and short-term investments
|
|
708
|
|
|
|
|
(83)
|
|
|
|
|
791
|
|
|
|
|
—
|
|
Cash and short-term
investments at beginning of period
|
|
6,460
|
|
|
|
|
5,340
|
|
|
|
|
1,120
|
|
|
|
|
—
|
|
Cash and short-term
investments at end of period
|
$
|
7,168
|
|
|
|
$
|
5,257
|
|
|
|
$
|
1,911
|
|
|
|
$
|
—
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' profit after tax due to equity method of
accounting.
|
3
|
Elimination of
Financial Products' dividend to Machinery, Energy &
Transportation in excess of Financial Products' profit.
|
4
|
Elimination of
non-cash adjustments and changes in assets and liabilities related
to consolidated reporting.
|
5
|
Reclassification of
Financial Products' cash flow activity from investing to operating
for receivables that arose from the sale of inventory.
|
6
|
Elimination of net
proceeds and payments to/from Machinery, Energy &
Transportation and Financial Products.
|
7
|
Elimination of
dividend from Financial Products to Machinery, Energy &
Transportation.
|
8
|
Elimination of change
in investment and common stock related to Financial
Products.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Caterpillar
Inc.
Supplemental Data
for Cash Flow
For the Twelve
Months Ended December 31, 2015
(Unaudited)
(Millions of
dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
$
|
2,523
|
|
|
|
$
|
2,522
|
|
|
|
$
|
592
|
|
|
|
$
|
(591)
|
2
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
3,046
|
|
|
|
|
2,164
|
|
|
|
|
882
|
|
|
|
|
—
|
|
|
|
Actuarial (gain) loss
on pension and postretirement benefits
|
|
179
|
|
|
|
|
179
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Provision (benefit)
for deferred income taxes
|
|
(307)
|
|
|
|
|
(425)
|
|
|
|
|
118
|
|
|
|
|
—
|
|
|
|
Other
|
|
453
|
|
|
|
|
343
|
|
|
|
|
(138)
|
|
|
|
|
248
|
4
|
|
Financial Products'
dividend in excess of profit
|
|
—
|
|
|
|
|
9
|
|
|
|
|
—
|
|
|
|
|
(9)
|
3
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables - trade
and other
|
|
764
|
|
|
|
|
461
|
|
|
|
|
(85)
|
|
|
|
|
388
|
4,5
|
|
|
Inventories
|
|
2,274
|
|
|
|
|
2,280
|
|
|
|
|
—
|
|
|
|
|
(6)
|
4
|
|
|
Accounts
payable
|
|
(1,165)
|
|
|
|
|
(1,343)
|
|
|
|
|
95
|
|
|
|
|
83
|
4
|
|
|
Accrued
expenses
|
|
(199)
|
|
|
|
|
(223)
|
|
|
|
|
11
|
|
|
|
|
13
|
4
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(389)
|
|
|
|
|
(390)
|
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
Customer
advances
|
|
(501)
|
|
|
|
|
(501)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Other assets -
net
|
|
143
|
|
|
|
|
192
|
|
|
|
|
(55)
|
|
|
|
|
6
|
4
|
|
|
Other liabilities -
net
|
|
(146)
|
|
|
|
|
(93)
|
|
|
|
|
(34)
|
|
|
|
|
(19)
|
4
|
Net cash provided by
(used for) operating activities
|
|
6,675
|
|
|
|
|
5,175
|
|
|
|
|
1,387
|
|
|
|
|
113
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
- excluding equipment leased to others
|
|
(1,388)
|
|
|
|
|
(1,373)
|
|
|
|
|
(16)
|
|
|
|
|
1
|
4
|
|
Expenditures for
equipment leased to others
|
|
(1,873)
|
|
|
|
|
(257)
|
|
|
|
|
(1,643)
|
|
|
|
|
27
|
4
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
760
|
|
|
|
|
114
|
|
|
|
|
655
|
|
|
|
|
(9)
|
4
|
|
Additions to finance
receivables
|
|
(9,929)
|
|
|
|
|
—
|
|
|
|
|
(12,928)
|
|
|
|
|
2,999
|
5,8
|
|
Collections of
finance receivables
|
|
9,247
|
|
|
|
|
—
|
|
|
|
|
12,227
|
|
|
|
|
(2,980)
|
5
|
|
Net intercompany
purchased receivables
|
|
—
|
|
|
|
|
—
|
|
|
|
|
745
|
|
|
|
|
(745)
|
5
|
|
Proceeds from sale of
finance receivables
|
|
136
|
|
|
|
|
—
|
|
|
|
|
136
|
|
|
|
|
—
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
—
|
|
|
|
|
1
|
|
|
|
|
(1)
|
6
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(400)
|
|
|
|
|
(400)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
|
178
|
|
|
|
|
184
|
|
|
|
|
—
|
|
|
|
|
(6)
|
8
|
|
Proceeds from sale of
securities
|
|
351
|
|
|
|
|
25
|
|
|
|
|
326
|
|
|
|
|
—
|
|
|
Investments in
securities
|
|
(485)
|
|
|
|
|
(27)
|
|
|
|
|
(458)
|
|
|
|
|
—
|
|
|
Other -
net
|
|
(114)
|
|
|
|
|
(49)
|
|
|
|
|
(65)
|
|
|
|
|
—
|
|
Net cash provided by
(used for) investing activities
|
|
(3,517)
|
|
|
|
|
(1,783)
|
|
|
|
|
(1,020)
|
|
|
|
|
(714)
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(1,757)
|
|
|
|
|
(1,757)
|
|
|
|
|
(600)
|
|
|
|
|
600
|
7
|
|
Distribution to
noncontrolling interests
|
|
(7)
|
|
|
|
|
(7)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Common stock issued,
including treasury shares reissued
|
|
33
|
|
|
|
|
33
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Treasury shares
purchased
|
|
(2,025)
|
|
|
|
|
(2,025)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Excess tax benefit
from stock-based compensation
|
|
24
|
|
|
|
|
24
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
(1)
|
|
|
|
|
—
|
|
|
|
|
1
|
6
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
5,132
|
|
|
|
|
3
|
|
|
|
|
5,129
|
|
|
|
|
—
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(8,292)
|
|
|
|
|
(517)
|
|
|
|
|
(7,775)
|
|
|
|
|
—
|
|
|
Short-term borrowings
- net (original maturities three months or less)
|
|
3,022
|
|
|
|
|
4
|
|
|
|
|
3,018
|
|
|
|
|
—
|
|
Net cash provided by
(used for) financing activities
|
|
(3,870)
|
|
|
|
|
(4,243)
|
|
|
|
|
(228)
|
|
|
|
|
601
|
|
Effect of exchange
rate changes on cash
|
|
(169)
|
|
|
|
|
(126)
|
|
|
|
|
(43)
|
|
|
|
|
—
|
|
Increase
(decrease) in cash and short-term investments
|
|
(881)
|
|
|
|
|
(977)
|
|
|
|
|
96
|
|
|
|
|
—
|
|
Cash and short-term
investments at beginning of period
|
|
7,341
|
|
|
|
|
6,317
|
|
|
|
|
1,024
|
|
|
|
|
—
|
|
Cash and short-term
investments at end of period
|
$
|
6,460
|
|
|
|
$
|
5,340
|
|
|
|
$
|
1,120
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' profit after tax due to equity method of
accounting.
|
3
|
Elimination of
Financial Products' dividend to Machinery, Energy &
Transportation in excess of Financial Products' profit.
|
4
|
Elimination of
non-cash adjustments and changes in assets and liabilities related
to consolidated reporting.
|
5
|
Reclassification of
Financial Products' cash flow activity from investing to operating
for receivables that arose from the sale of inventory.
|
6
|
Elimination of net
proceeds and payments to/from Machinery, Energy &
Transportation and Financial Products.
|
7
|
Elimination of
dividend from Financial Products to Machinery, Energy &
Transportation.
|
8
|
Elimination of
proceeds received from Financial Products related to Machinery,
Energy & Transportation's sale of businesses and
investments.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/caterpillar-reports-2016-fourth-quarter-and-full-year-financial-results-provides-outlook-for-2017-300397070.html
SOURCE Caterpillar Inc.