DEERFIELD, Ill., Oct. 24, 2017 /PRNewswire/ --
|
|
|
Third
Quarter
|
|
|
|
($ in billions except
profit per share)
|
2017
|
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2016
|
|
|
|
|
|
|
Sales and
Revenues
|
$11.4
|
|
$9.2
|
|
|
|
|
|
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Profit Per
Share
|
$1.77
|
|
$0.48
|
|
|
|
|
|
|
Adjusted Profit
Per Share
|
$1.95
|
|
$0.85
|
- Third-quarter sales and revenues up more than $2 billion from a year ago
- Operational performance driving improved results
- Full-year 2017 sales and revenues outlook about $44 billion
- Full-year profit per share outlook about $4.60 (adjusted profit per share outlook about
$6.25)
Caterpillar Inc. (NYSE: CAT) today announced third-quarter 2017
sales and revenues of $11.4 billion,
compared with $9.2 billion in the
third quarter of 2016. Third-quarter 2017 profit per share was
$1.77, compared with $0.48 per share in the third quarter of 2016.
Excluding restructuring costs, third-quarter 2017
adjusted profit per share was $1.95, compared with third-quarter 2016 adjusted
profit per share of $0.85.
Caterpillar's financial position continued to strengthen in the
quarter. Machinery, Energy & Transportation
(ME&T) operating cash flow was about $600 million during the third quarter, and
ME&T's debt-to-capital ratio improved to 36.1
percent, down from 38.6 percent at the end of the second quarter.
The company ended the third quarter of 2017 with an enterprise cash
balance of $9.6 billion.
"Higher sales volume and our team's focus on cost
discipline resulted in improved profit margins across our three
primary segments," said Caterpillar CEO Jim
Umpleby.
2017 Outlook
Caterpillar continues to see strength in a number of industries
and regions, including construction in China, on-shore oil and gas in North America, and increased capital
investments by mining customers. We are working with our supply
chain to increase production levels to satisfy customer demand for
those markets that have improved.
In July 2017, Caterpillar provided
an outlook range for full-year 2017 sales and revenues of
$42 billion to $44 billion, with a
midpoint of $43 billion. The company
now expects full-year 2017 sales and revenues of about $44 billion.
For the full year of 2017, Caterpillar now expects profit per
share of about $4.60, or adjusted
profit per share of about $6.25. The
previous outlook for 2017 profit was about $3.50 per share at the midpoint of the sales and
revenues outlook, or adjusted profit per share of about
$5.00. The company now expects to
incur about $1.3 billion of
restructuring costs in 2017, a slight increase from the previous
outlook of about $1.2 billion. The
outlook does not include potential mark-to-market gains or losses
related to pension and other postemployment benefit
(OPEB) plans. While the final impact will not be
known until year end, the impact would be negative to profit based
on information as of the end of the third quarter.
"As a result of our team's strong performance, we are raising
our 2017 profit outlook," continued Umpleby. "We are executing our
new strategy for profitable growth based on operational excellence,
expanded offerings and services."
Notes:
- Glossary of terms is included on pages 14-15; first
occurrence of terms shown in bold italics.
- Information on non-GAAP financial measures is included on
page 16.
- Caterpillar will conduct a teleconference and live webcast,
with a slide presentation, beginning at 10
a.m. Central Time on Tuesday, October
24, 2017, to discuss its 2017 third-quarter 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 primary 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 speak only as of the date they are made, and
we do not undertake to update our forward-looking statements.
Caterpillar's actual results may differ materially from those
described or implied in our forward-looking statements based on a
number of factors, including, but not limited to: (i) global and
regional economic conditions and economic conditions in the
industries we serve; (ii) commodity price changes, material price
increases, fluctuations in demand for our products or significant
shortages of material; (iii) government monetary or fiscal
policies; (iv) political and economic risks, commercial instability
and events beyond our control in the countries in which we operate;
(v) our ability to develop, produce and market quality products
that meet our customers' needs; (vi) the impact of the highly
competitive environment in which we operate on our sales and
pricing; (vii) information technology security threats and computer
crime; (viii) additional restructuring costs or a failure to
realize anticipated savings or benefits from past or future cost
reduction actions; (ix) failure to realize all of the anticipated
benefits from initiatives to increase our productivity, efficiency
and cash flow and to reduce costs; (x) inventory management
decisions and sourcing practices of our dealers and our OEM
customers; (xi) a failure to realize, or a delay in realizing, all
of the anticipated benefits of our acquisitions, joint ventures or
divestitures; (xii) union disputes or other employee relations
issues; (xiii) adverse effects of unexpected events including
natural disasters; (xiv) disruptions or volatility in global
financial markets limiting our sources of liquidity or the
liquidity of our customers, dealers and suppliers; (xv) 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;
(xvi) our Financial Products segment's risks associated with the
financial services industry; (xvii) changes in interest rates or
market liquidity conditions; (xviii) an increase in delinquencies,
repossessions or net losses of Cat Financial's customers; (xix)
currency fluctuations; (xx) our or Cat Financial's compliance with
financial and other restrictive covenants in debt agreements; (xxi)
increased pension plan funding obligations; (xxii) alleged or
actual violations of trade or anti-corruption laws and regulations;
(xxiii) international trade policies and their impact on demand for
our products and our competitive position; (xxiv) additional tax
expense or exposure; (xxv) significant legal proceedings, claims,
lawsuits or government investigations; (xxvi) new regulations or
changes in financial services regulations; (xxvii) compliance with
environmental laws and regulations; and (xxviii) other factors
described in more detail in Caterpillar's Forms 10-Q, 10-K and
other filings with the Securities and Exchange Commission.
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues Comparison
Third Quarter 2017 vs. Third Quarter 2016
To access this chart, go to
http://www.caterpillar.com/en/investors/quarterly-results.html for
the downloadable version of Caterpillar 3Q 2017 earnings.
The chart above graphically illustrates reasons for the change
in Consolidated Sales and Revenues between the third quarter of
2016 (at left) and the third quarter of 2017 (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 $11.413
billion in the third quarter of 2017, an increase of
$2.253 billion, or 25 percent,
compared with $9.160 billion in the
third quarter of 2016. The increase was primarily due to higher
sales volume, with about half due to improved end-user demand and
about half due to favorable changes in dealer inventories. The
improvement in end-user demand was across all regions and most end
markets. The favorable change in dealer inventories was primarily
due to a decrease during the third quarter of 2016. By segment, the
largest sales volume increase was in Construction
Industries mostly due to the favorable impact of changes in
dealer inventories and higher end-user demand for construction
equipment. Sales volume for Resource Industries
increased due to the favorable impact of changes in dealer
inventories and higher end-user demand for aftermarket parts.
Energy & Transportation's sales volume increased
due to higher demand across all applications. Favorable price
realization, primarily in Construction Industries, also
contributed to the sales improvement. Financial
Products' revenues were about flat.
Sales increased across all regions with the largest increase in
North America. Sales improved 27
percent in North America primarily
due to higher end-user demand for both equipment and aftermarket
parts, as well as favorable changes in dealer inventories. Dealer
inventories decreased during the third quarter of 2016 and were
about flat in the third quarter of 2017. Asia/Pacific sales increased 31 percent
primarily due to higher end-user demand for construction equipment.
About half of the sales improvement in Asia/Pacific was in China resulting from increased building
construction and infrastructure investment. EAME
sales increased 22 percent primarily due to the favorable impact of
changes in dealer inventories as dealers decreased inventories in
the third quarter of 2016 and increased dealer inventories in the
third quarter of 2017. Sales increased 24 percent in
Latin America due to
stabilizing economic conditions in several countries in the region
that resulted in improved end-user demand from low levels.
Consolidated Operating Profit
Consolidated Operating Profit Comparison
Third Quarter 2017 vs. Third Quarter 2016
To access this chart, go to
http://www.caterpillar.com/en/investors/quarterly-results.html for
the downloadable version of Caterpillar 3Q 2017 earnings.
The chart above graphically illustrates reasons for the change
in Consolidated Operating Profit between the third quarter of 2016
(at left) and the third quarter of 2017 (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 profit for the third quarter of 2017 was $1.577 billion, compared with $481 million in the third quarter of 2016. The
increase of $1.096 billion was
primarily due to higher sales volume. Favorable price realization,
lower restructuring costs and variable manufacturing
costs were partially offset by higher period
costs. Price realization was favorable, primarily in
Construction Industries.
Variable manufacturing costs were lower primarily due to the
favorable impact from cost absorption as inventory increased in the
third quarter of 2017 due to higher production volumes and was
about flat in the third quarter of 2016. Material costs were
slightly unfavorable due to increases in steel prices. Period costs
were higher primarily due to higher short-term incentive
compensation expense. Despite a significant increase in sales
volume, period costs excluding short-term incentive compensation
expense were about flat.
Restructuring costs were $90
million in the third quarter of 2017, compared with
$324 million in the third quarter of
2016.
Other Profit/Loss Items
- Other income/expense in the third quarter of 2017 was
income of $64 million, compared with
income of $28 million in the third
quarter of 2016. The favorable change was primarily a result of
gains on the sale of securities.
- The provision for income taxes in the third quarter
reflects an estimated annual tax rate of 32 percent, which excludes
the discrete item discussed in the following paragraph, compared
with 25 percent for the third quarter of 2016. The increase is
primarily due to higher non-U.S. restructuring costs in 2017 that
are taxed at relatively lower non-U.S. tax rates, along with other
changes in the geographic mix of profits from a tax
perspective.
In addition, a discrete tax
benefit of $18 million was recorded
for the settlement of stock-based compensation awards with
associated tax deductions in excess of cumulative U.S. GAAP
compensation expense.
Excluding restructuring costs,
gain on the sale of Caterpillar's equity investment in IronPlanet
in the second quarter of 2017, and discrete items, the 2017
estimated annual tax rate is expected to be 29 percent.
Global Workforce
Caterpillar worldwide, full-time employment was about 96,700 at
the end of the third quarter of 2017, about flat with the end of
the third quarter of 2016. The flexible workforce increased by
about 6,500, primarily due to higher production volumes. In total,
the global workforce increased by about 6,100. Since the end of the
second quarter of 2017, the global workforce increased about 3,700
to support increasing production volumes.
|
|
September
30
|
|
|
2017
|
|
2016
|
|
Increase/
(Decrease)
|
Full-time
employment
|
|
96,700
|
|
97,100
|
|
(400)
|
Flexible
workforce
|
|
18,200
|
|
11,700
|
|
6,500
|
Total
|
|
114,900
|
|
108,800
|
|
6,100
|
|
|
|
|
|
|
|
Geographic
Summary
|
|
|
|
|
|
|
U.S.
workforce
|
|
49,700
|
|
46,900
|
|
2,800
|
Non-U.S.
workforce
|
|
65,200
|
|
61,900
|
|
3,300
|
Total
|
|
114,900
|
|
108,800
|
|
6,100
|
SEGMENT RESULTS
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|
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|
|
|
|
|
|
|
|
|
|
Sales and Revenues
by Geographic Region
|
|
|
|
|
%
|
|
North
|
|
%
|
|
Latin
|
|
%
|
|
|
|
%
|
|
Asia/
|
|
%
|
|
(Millions of
dollars)
|
Total
|
|
Change
|
|
America
|
|
Change
|
|
America
|
|
Change
|
|
EAME
|
|
Change
|
|
Pacific
|
|
Change
|
|
Third Quarter
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries¹
|
$
4,854
|
|
37
|
%
|
|
$
2,165
|
|
31
|
%
|
|
$
390
|
|
36
|
%
|
|
$
1,008
|
|
28
|
%
|
|
$ 1,291
|
|
57
|
%
|
|
Resource
Industries²
|
1,870
|
|
36
|
%
|
|
581
|
|
28
|
%
|
|
329
|
|
30
|
%
|
|
488
|
|
61
|
%
|
|
472
|
|
29
|
%
|
|
Energy &
Transportation³
|
3,961
|
|
12
|
%
|
|
1,928
|
|
22
|
%
|
|
300
|
|
7
|
%
|
|
1,166
|
|
7
|
%
|
|
567
|
|
(2)
|
%
|
|
All Other
Segments⁴
|
56
|
|
100
|
%
|
|
30
|
|
400
|
%
|
|
1
|
|
-
|
%
|
|
13
|
|
160
|
%
|
|
12
|
|
(29)
|
%
|
|
Corporate Items and
Eliminations
|
(28)
|
|
|
|
|
(25)
|
|
|
|
|
(1)
|
|
|
|
|
(2)
|
|
|
|
|
-
|
|
|
|
|
Machinery, Energy
& Transportation
|
$ 10,713
|
|
27
|
%
|
|
$
4,679
|
|
27
|
%
|
|
$
1,019
|
|
24
|
%
|
|
$
2,673
|
|
22
|
%
|
|
$ 2,342
|
|
31
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$
774
|
|
3
|
%
|
|
$
510
|
|
9
|
%
|
|
$
64
|
|
(24)
|
%
|
|
$
110
|
|
9
|
%
|
|
$
90
|
|
(8)
|
%
|
|
Corporate Items and
Eliminations
|
(74)
|
|
|
|
|
(51)
|
|
|
|
|
(5)
|
|
|
|
|
(4)
|
|
|
|
|
(14)
|
|
|
|
|
Financial
Products Revenues
|
$
700
|
|
-
|
%
|
|
$
459
|
|
5
|
%
|
|
$
59
|
|
(20)
|
%
|
|
$
106
|
|
9
|
%
|
|
$
76
|
|
(14)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$ 11,413
|
|
25
|
%
|
|
$
5,138
|
|
25
|
%
|
|
$
1,078
|
|
20
|
%
|
|
$
2,779
|
|
22
|
%
|
|
$ 2,418
|
|
29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries¹
|
$
3,554
|
|
|
|
|
$
1,655
|
|
|
|
|
$
287
|
|
|
|
|
$
789
|
|
|
|
|
$
823
|
|
|
|
|
Resource
Industries²
|
1,377
|
|
|
|
|
454
|
|
|
|
|
254
|
|
|
|
|
303
|
|
|
|
|
366
|
|
|
|
|
Energy &
Transportation³
|
3,534
|
|
|
|
|
1,583
|
|
|
|
|
280
|
|
|
|
|
1,094
|
|
|
|
|
577
|
|
|
|
|
All Other
Segments⁴
|
28
|
|
|
|
|
6
|
|
|
|
|
-
|
|
|
|
|
5
|
|
|
|
|
17
|
|
|
|
|
Corporate Items and
Eliminations
|
(30)
|
|
|
|
|
(26)
|
|
|
|
|
-
|
|
|
|
|
(3)
|
|
|
|
|
(1)
|
|
|
|
|
Machinery, Energy
& Transportation
|
$
8,463
|
|
|
|
|
$
3,672
|
|
|
|
|
$
821
|
|
|
|
|
$
2,188
|
|
|
|
|
$ 1,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$
749
|
|
|
|
|
$
466
|
|
|
|
|
$
84
|
|
|
|
|
$
101
|
|
|
|
|
$
98
|
|
|
|
|
Corporate Items and
Eliminations
|
(52)
|
|
|
|
|
(28)
|
|
|
|
|
(10)
|
|
|
|
|
(4)
|
|
|
|
|
(10)
|
|
|
|
|
Financial
Products Revenues
|
$
697
|
|
|
|
|
$
438
|
|
|
|
|
$
74
|
|
|
|
|
$
97
|
|
|
|
|
$
88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
9,160
|
|
|
|
|
$
4,110
|
|
|
|
|
$
895
|
|
|
|
|
$
2,285
|
|
|
|
|
$ 1,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
1Does not
include inter-segment sales of $32 million and $27 million in third
quarter 2017 and 2016, respectively.
|
|
|
|
|
2Does not
include inter-segment sales of $86 million and $69 million in third
quarter 2017 and 2016, respectively.
|
|
|
|
|
3Does not
include inter-segment sales of $877 million and $629 million in
third quarter 2017 and 2016, respectively.
|
|
|
|
|
4Does not
include inter-segment sales of $89 million and $95 million in third
quarter 2017 and 2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Revenues
by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
Third
|
|
Sales
|
|
Price
|
|
|
|
|
|
Third
|
|
$
|
|
%
|
|
(Millions of
dollars)
|
Quarter
2016
|
|
Volume
|
|
Realization
|
|
Currency
|
|
Other
|
|
Quarter
2017
|
|
Change
|
|
Change
|
|
Construction
Industries
|
$
3,554
|
|
$ 1,002
|
|
$
291
|
|
$
7
|
|
$
-
|
|
$
4,854
|
|
$ 1,300
|
|
37
|
%
|
|
Resource
Industries
|
1,377
|
|
410
|
|
73
|
|
10
|
|
-
|
|
1,870
|
|
493
|
|
36
|
%
|
|
Energy &
Transportation
|
3,534
|
|
419
|
|
(21)
|
|
29
|
|
-
|
|
3,961
|
|
427
|
|
12
|
%
|
|
All Other
Segments
|
28
|
|
28
|
|
-
|
|
-
|
|
-
|
|
56
|
|
28
|
|
100
|
%
|
|
Corporate Items and
Eliminations
|
(30)
|
|
2
|
|
-
|
|
-
|
|
-
|
|
(28)
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery, Energy
& Transportation
|
$
8,463
|
|
$ 1,861
|
|
$
343
|
|
$
46
|
|
$
-
|
|
$
10,713
|
|
$ 2,250
|
|
27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$
749
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$ 25
|
|
$
774
|
|
$
25
|
|
3
|
%
|
|
Corporate Items and
Eliminations
|
(52)
|
|
-
|
|
-
|
|
-
|
|
(22)
|
|
(74)
|
|
(22)
|
|
|
|
|
Financial Products
Revenues
|
$
697
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
3
|
|
$
700
|
|
$
3
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
9,160
|
|
$ 1,861
|
|
$
343
|
|
$
46
|
|
$
3
|
|
$
11,413
|
|
$ 2,253
|
|
25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
(Loss) by Segment
|
|
|
|
|
|
|
|
|
|
|
Third
|
|
Third
|
|
$
|
|
%
|
|
(Millions of
dollars)
|
Quarter
2017
|
|
Quarter
2016
|
|
Change
|
|
Change
|
|
Construction
Industries
|
$
884
|
|
$
326
|
|
$
558
|
|
171
|
%
|
Resource
Industries
|
226
|
|
(77)
|
|
303
|
|
n/a
|
%
|
Energy &
Transportation
|
750
|
|
572
|
|
178
|
|
31
|
%
|
All Other
Segments
|
6
|
|
(22)
|
|
28
|
|
n/a
|
%
|
Corporate Items and
Eliminations
|
(359)
|
|
(433)
|
|
74
|
|
|
|
|
Machinery, Energy
& Transportation
|
$
1,507
|
|
$
366
|
|
$ 1,141
|
|
312
|
%
|
Financial Products
Segment
|
$
185
|
|
$
183
|
|
$
2
|
|
1
|
%
|
Corporate Items and
Eliminations
|
(37)
|
|
(12)
|
|
(25)
|
|
|
|
|
Financial
Products
|
$
148
|
|
$
171
|
|
$
(23)
|
|
(13)
|
%
|
Consolidating
Adjustments
|
(78)
|
|
(56)
|
|
(22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Profit
|
$
1,577
|
|
$
481
|
|
$ 1,096
|
|
228
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSTRUCTION
INDUSTRIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2016
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Third
Quarter 2017
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison1
|
$3,554
|
|
$1,002
|
|
$291
|
|
$7
|
|
$4,854
|
|
$1,300
|
|
37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2017
|
|
Third
Quarter 2016
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
North
America
|
$2,165
|
|
$1,655
|
|
$510
|
|
31
|
%
|
|
|
|
|
|
|
|
Latin
America
|
390
|
|
287
|
|
103
|
|
36
|
%
|
|
|
|
|
|
|
|
EAME
|
1,008
|
|
789
|
|
219
|
|
28
|
%
|
|
|
|
|
|
|
|
Asia/Pacific
|
1,291
|
|
823
|
|
468
|
|
57
|
%
|
|
|
|
|
|
|
|
Total1
|
$4,854
|
|
$3,554
|
|
$1,300
|
|
37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
2017
|
|
Third
Quarter
2016
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
Segment
Profit
|
$884
|
|
$326
|
|
$558
|
|
171
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Does not
include inter-segment sales of $32 million and $27 million in third
quarter 2017 and 2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction Industries' sales were $4.854 billion in the third quarter of 2017,
compared with $3.554 billion in the
third quarter of 2016. The increase was due to higher sales volume
and favorable price realization.
- About half of the sales volume increase was due to the impact
of favorable changes in dealer inventories as inventories decreased
significantly in the third quarter of 2016 and increased in the
third quarter of 2017. In addition, sales volume improved due to
higher end-user demand for construction equipment.
- Although market conditions remain competitive, price
realization was favorable due to a particularly weak pricing
environment in the third quarter of 2016 and previously implemented
price increases.
Sales increased across all regions with the largest increases in
North America and Asia/Pacific.
- In North America, the sales
increase was primarily due to a favorable impact of changes in
dealer inventories, which decreased in the third quarter of 2016
and were about flat in the third quarter of 2017. Favorable price
realization also contributed to increased sales. In addition,
end-user demand for construction equipment increased primarily due
to improved oil and gas, residential and nonresidential
construction activities.
- Sales in Asia/Pacific were
higher as a result of an increase in end-user demand, primarily in
China, stemming from increased
building construction and infrastructure investment. Favorable
price realization also contributed to increased sales.
- Sales increased in EAME primarily due to the favorable impact
of changes in dealer inventories, which decreased in the third
quarter of 2016 and increased in the third quarter of 2017.
Favorable price realization also contributed to increased
sales.
- Although construction activity remained weak in Latin America, sales were higher as end-user
demand increased from low levels due to stabilizing economic
conditions in several countries in the region.
Construction Industries' profit was $884
million in the third quarter of 2017, compared with
$326 million in the third quarter of
2016. The increase in profit was primarily due to higher sales
volume and favorable price realization, partially offset by
unfavorable period costs. The increase in period costs was due to
higher short-term incentive compensation expense.
RESOURCE
INDUSTRIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2016
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
|
Third
Quarter 2017
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison1
|
$1,377
|
|
$410
|
|
$73
|
|
$10
|
|
|
$1,870
|
|
$493
|
|
36
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2017
|
|
Third
Quarter 2016
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
North
America
|
$581
|
|
$454
|
|
$127
|
|
28
|
%
|
|
|
|
|
Latin
America
|
329
|
|
254
|
|
75
|
|
30
|
%
|
|
|
|
|
EAME
|
488
|
|
303
|
|
185
|
|
61
|
%
|
|
|
|
|
Asia/Pacific
|
472
|
|
366
|
|
106
|
|
29
|
%
|
|
|
|
|
Total1
|
$1,870
|
|
$1,377
|
|
$493
|
|
36
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2017
|
|
Third
Quarter 2016
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Segment Profit
(Loss)
|
$226
|
|
($77)
|
|
$303
|
|
n/a
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Does not
include inter-segment sales of $86 million and $69 million in third
quarter 2017 and 2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resource Industries' sales were $1.870
billion in the third quarter of 2017, an increase of
$493 million from the third quarter
of 2016. The increase was primarily due to the favorable impact of
changes in dealer inventories, an increase in end-user demand for
aftermarket parts and favorable price realization. Dealer
inventories were about flat in the third quarter of 2017, compared
with a decrease in the third quarter of 2016. Dealer deliveries for
new equipment increased slightly. Increases in certain commodity
prices over the past year, along with continued commodity
consumption, have resulted in increased mining activity and the
need for maintenance and rebuild activities. Although commodity
prices have improved, they remain volatile, but are generally above
investment threshold prices, which is a positive for end-user
demand.
Resource Industries' profit was $226
million in the third quarter of 2017, compared with a loss
of $77 million in the third quarter
of 2016. The improvement was due to higher sales volume, favorable
price realization and lower variable manufacturing costs primarily
due to cost absorption. Cost absorption was favorable as inventory
increased in the third quarter of 2017 to support higher production
volumes and was about flat in the third quarter of 2016. Period
costs were about flat as an increase in short-term incentive
compensation expense was offset by the favorable impact of
restructuring and cost reduction actions.
ENERGY &
TRANSPORTATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2016
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
|
Third
Quarter
2017
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
Comparison1
|
$3,534
|
|
$419
|
|
($21)
|
|
$29
|
|
|
$3,961
|
|
$427
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2017
|
|
Third
Quarter
2016
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
North
America
|
$1,928
|
|
$1,583
|
|
$345
|
|
22
|
%
|
|
|
|
Latin
America
|
300
|
|
280
|
|
20
|
|
7
|
%
|
|
|
|
EAME
|
1,166
|
|
1,094
|
|
72
|
|
7
|
%
|
|
|
|
Asia/Pacific
|
567
|
|
577
|
|
(10)
|
|
(2)
|
%
|
|
|
|
Total1
|
$3,961
|
|
$3,534
|
|
$427
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2017
|
|
Third
Quarter
2016
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
$750
|
|
$572
|
|
$178
|
|
31
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Does not
include inter-segment sales of $877 million and $629 million in
third quarter 2017 and 2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy & Transportation's sales were $3.961 billion in the third quarter of 2017,
compared with $3.534 billion in the
third quarter of 2016. The increase was primarily due to higher
sales volume across all applications.
- Industrial – Sales were higher in all regions,
reflecting increased demand for equipment across end-user
applications and aftermarket parts.
- Oil and Gas – Sales increased in North America due to higher demand for
aftermarket parts supporting rebuild activity and for reciprocating
engines used in well servicing applications. This was partially
offset by a decrease in equipment sold in EAME due to the absence
of several large gas compression projects.
- Power Generation – Sales increased in North America and EAME due to the timing of
projects. Asia/Pacific and
Latin America were about
flat.
- Transportation – Sales were higher in North America for rail services as rail
traffic has increased.
Energy & Transportation's profit was $750 million in the third quarter of 2017,
compared with $572 million in the
third quarter of 2016. The increase was primarily due to higher
sales volume and lower variable manufacturing costs, partially
offset by higher period costs. Variable manufacturing costs were
favorable primarily due to cost absorption as inventory increased
in the third quarter of 2017 to support higher production volumes
and was about flat in the third quarter of 2016. The increase in
period costs was primarily due to higher short-term incentive
compensation expense.
FINANCIAL PRODUCTS
SEGMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Geographic Region
|
|
|
|
|
|
|
|
|
Third
Quarter 2017
|
|
Third
Quarter 2016
|
|
$
Change
|
|
%
Change
|
|
North
America
|
$510
|
|
$466
|
|
$44
|
|
9
|
%
|
|
Latin
America
|
64
|
|
84
|
|
(20)
|
|
(24)
|
%
|
|
EAME
|
110
|
|
101
|
|
9
|
|
9
|
%
|
|
Asia/Pacific
|
90
|
|
98
|
|
(8)
|
|
(8)
|
%
|
|
Total
|
$774
|
|
$749
|
|
$25
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter 2017
|
|
Third
Quarter 2016
|
|
$
Change
|
|
%
Change
|
|
Segment
Profit
|
$185
|
|
$183
|
|
$2
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products' segment revenues were
$774 million in the third quarter of
2017, an increase of $25 million, or
3 percent, from the third quarter of 2016. The increase was
primarily due to higher average financing rates in North America and a favorable impact from
intercompany lending activity in North
America. These favorable impacts were partially offset by
lower average earning assets in North America and lower average financing
rates in Asia/Pacific.
Financial Products' profit was $185
million in the third quarter of 2017, compared with
$183 million in the third quarter of
2016. The increase was primarily due to higher gains on sales of
securities at Insurance Services, increased intercompany lending
activity and an increase in net yield on average earning assets.
These favorable impacts were mostly offset by an increase in the
provision for credit losses at Cat Financial and an increase in
selling, general and administrative (SG&A) expenses due to
higher short-term incentive compensation expense.
At the end of the third quarter of 2017, past dues at Cat
Financial were 2.73 percent, compared with 2.77 percent at the end
of the third quarter of 2016. Write-offs, net of recoveries, were
$47 million for the third quarter of
2017, compared with $29 million for
the third quarter of 2016. The increase in write-offs, net of
recoveries, was primarily due to the Latin America and marine portfolios.
As of September 30, 2017, Cat
Financial's allowance for credit losses totaled $343 million, or 1.27 percent of finance
receivables, compared with $346
million, or 1.28 percent of finance receivables as of
September 30, 2016. The allowance for
credit losses at year-end 2016 was $343
million, or 1.29 percent of finance receivables.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $396 million in the third quarter of 2017, a
decrease of $49 million from the
third quarter of 2016. Corporate items and eliminations include:
restructuring costs; corporate-level expenses; 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 decrease in expense from the third quarter of 2016 was
primarily due to lower restructuring costs, partially offset by
methodology differences and higher short-term incentive
compensation expense.
QUESTIONS AND ANSWERS
Q1:
|
Can you comment on
third-quarter restructuring costs and your 2017 outlook for
restructuring costs?
|
|
|
A:
|
Restructuring costs
of $90 million in the third quarter of 2017 were primarily related
to programs in Resource Industries and Energy & Transportation.
Third-quarter restructuring costs included a LIFO Inventory
Decrement Benefit of $29 million related to the closure of
the facility in Gosselies, Belgium.
|
|
|
|
We have incurred
$1.011 billion of restructuring costs through the first nine months
of 2017 and expect to incur about $1.3 billion for the full year of
2017, an increase from the previous outlook for 2017 restructuring
costs of about $1.2 billion.
|
|
|
Q2:
|
Can you discuss
changes in dealer inventories during the third quarter of
2017?
|
|
|
A:
|
Changes in dealer
inventories had a positive impact on sales from the third quarter
of 2016 to the third quarter of 2017. Dealer machine and engine
inventories increased about $200 million in the third quarter of
2017, compared with a decrease of about $700 million in the third
quarter of 2016. During the first nine months of 2017, dealer
inventories increased about $100 million, compared with a decrease
of about $800 million during the first nine months of
2016.
|
|
|
Q3:
|
Can you discuss
changes to your order backlog by segment?
|
|
|
A:
|
At the end of the
third quarter of 2017, the order backlog was about $15.4 billion,
an increase of about $600 million from the end of the second
quarter of 2017. Construction Industries' order backlog increased
about $500 million, Resource Industries' increased about $300
million and Energy & Transportation's decreased about $200
million.
|
|
|
|
Compared with the
third quarter of 2016, the order backlog increased about $3.8
billion. The increase was across all segments, most significantly
in Construction Industries and Resource Industries.
|
|
|
Q4:
|
Can you comment on
expense related to your 2017 short-term incentive compensation
plans?
|
|
|
A:
|
Short-term incentive
compensation expense is directly related to financial and
operational performance, measured against targets set annually.
Third-quarter 2017 expense was about $400 million. No short-term
incentive compensation expense was recognized during the third
quarter of 2016.
|
|
|
|
For 2017, our current
outlook includes short-term incentive compensation expense of about
$1.4 billion. The previous 2017 outlook, issued in July, assumed
short-term incentive compensation expense of about $1.3 billion.
Full-year 2016 short-term incentive compensation expense was about
$250 million, significantly below targeted levels.
|
|
|
Q5:
|
What price action
are you anticipating for 2018?
|
|
|
A:
|
In late September
2017, we notified our dealers of a price action of 0 to 2 percent
worldwide on most machines. This price action will be effective
January 2018 and includes adjustments to list prices and
merchandising discounts. In conjunction with the planned January
price action, Caterpillar will be implementing a structural change
to machine pricing that will result in a reduction to list prices
with offsetting reductions to merchandising discounts. These price
actions are a result of current industry factors and general
economic conditions. Details by product will be released to dealers
in the near future and will vary across geographic regions and
products.
|
|
|
Q6:
|
In the past, you
provided sales and revenues guidance for the following year in the
third quarter. Why have you decided not to provide that guidance
this year?
|
|
|
A:
|
Consistent with our new
enterprise strategy, we are focused on operational excellence. Our
segments are in the process of implementing strategies to drive
profitable growth through margin expansion, asset efficiency,
expanded offerings and services. We will share more about 2018 in
January.
|
GLOSSARY OF TERMS
1.
|
Adjusted Profit
Per Share – Profit per share excluding restructuring costs for
2017 and 2016. For 2017, adjusted profit per share also excludes a
gain on the sale of an equity investment in IronPlanet recognized
in the second quarter.
|
2.
|
All Other
Segments – Primarily includes activities such as: business
strategy, product management and development, and manufacturing of
filters and fluids, undercarriage, tires and rims, ground engaging
tools, fluid transfer products, precision seals, and rubber 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.
|
3.
|
Consolidating
Adjustments – Elimination of transactions between Machinery,
Energy & Transportation and Financial Products.
|
4.
|
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, compact track loaders,
multi-terrain loaders, mini excavators, compact wheel loaders,
telehandlers, select work tools, small, medium and large track
excavators, wheel excavators, medium wheel loaders, medium
track-type tractors, track-type loaders, motor graders, pipelayers,
forestry and paving products and related parts.
|
5.
|
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 only
includes the impact on sales and operating profit for the
Machinery, Energy & Transportation lines of business excluding
restructuring costs; 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).
|
6.
|
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 shareholders' equity. Debt also
includes Machinery, Energy & Transportation's long-term
borrowings from Financial Products.
|
7.
|
EAME – A
geographic region including Europe, Africa, the Middle East and the
Commonwealth of Independent States (CIS).
|
8.
|
Earning Assets
– Assets consisting primarily of total finance receivables net of
unearned income, plus equipment on operating leases, less
accumulated depreciation at Cat Financial.
|
9.
|
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.
|
10.
|
Financial Products
Segment – Provides financing alternatives to
customers and dealers around the world for Caterpillar products, as
well as financing for vehicles, power generation facilities and
marine vessels that, in most cases, incorporate Caterpillar
products. Financing plans include operating and finance leases,
installment sale contracts, working capital loans and wholesale
financing plans. The segment also provides insurance and risk
management products and services that help customers and dealers
manage their business risk. Insurance and risk management products
offered include physical damage insurance, inventory protection
plans, extended service coverage for machines and engines, and
dealer property and casualty insurance. The various forms of
financing, insurance and risk management products offered to
customers and dealers 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.
|
11.
|
Latin America
– A geographic region including Central and South American
countries and Mexico.
|
12.
|
LIFO Inventory
Decrement Benefit – A significant portion of Caterpillar's
inventory is valued using the last-in, first-out (LIFO) method.
With this method, the cost of inventory is comprised of "layers" at
cost levels for years when inventory increases occurred. A LIFO
decrement occurs when inventory decreases, depleting layers added
in earlier, generally lower cost years. A LIFO decrement benefit
represents the impact on operating profit of charging cost of goods
sold with prior-year cost levels rather than current period
costs.
|
13.
|
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.
|
14.
|
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.
|
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 and
exit-related costs that are included in restructuring costs (see
definition below). 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 finance 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, electronics and control systems and related
parts. In addition to equipment, Resource Industries also develops
and sells technology products and services 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, 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 accelerated
depreciation, inventory write-downs, equipment relocation and
project management costs and also LIFO inventory decrement benefits
from inventory liquidations at closed facilities (primarily
included in Cost of goods sold).
|
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. The impact of sales volume on segment profit includes
inter-segment sales.
|
21.
|
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 non-GAAP financial measures Caterpillar uses 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 per Share
Caterpillar believes it is important to separately quantify the
profit impact of two special items in order for the company's
results to be meaningful to readers. These items consist of
restructuring costs, which are incurred in the current year to
generate longer-term benefits, and a gain on sale of an equity
investment. Caterpillar does not consider these items indicative of
earnings from ongoing business activities and believes the non-GAAP
measure will provide useful perspective on underlying business
results and trends, and a means to assess the company's
period-over-period results.
Reconciliations of adjusted profit per share to the most
directly comparable GAAP measure, diluted profit per share, are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
2017
Outlook
|
|
|
|
|
2016
|
|
2017
|
|
Previous
1
|
|
Current
2
|
|
|
Profit per
share
|
$0.48
|
|
$1.77
|
|
$3.50
|
|
$4.60
|
|
|
Per share
restructuring costs3
|
$0.37
|
|
$0.18
|
|
$1.59
|
|
$1.74
|
|
|
Per share gain on
sale of equity investment4
|
-
|
|
-
|
|
($0.09)
|
|
($0.09)
|
|
|
Adjusted profit per
share
|
$0.85
|
|
$1.95
|
|
$5.00
|
|
$6.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 2017
sales and revenues outlook in a range of $42 billion to $44 billion
(as of July 25, 2017). Profit per share at midpoint.
|
|
|
2 2017
sales and revenues outlook of about $44 billion.
|
|
|
3 At estimated
annual tax rate based on full-year outlook for per share
restructuring costs at statutory tax rates. Third-quarter 2017 and
current 2017 outlook at estimated annual rate of 20 percent.
Previous 2017 outlook at estimated annual rate of 22 percent. 2017
outlook also includes $15 million increase to prior year taxes
related to non-U.S. restructuring costs recognized in the first
quarter of 2017. Third-quarter 2017 includes an unfavorable interim
adjustment of $0.06 per share resulting from the difference in the
estimated annual tax rate for consolidated reporting of 32 percent
and the estimated annual tax rate for profit per share excluding
restructuring costs, gain on sale of equity investment and discrete
items of 29 percent.
|
|
|
|
|
|
|
|
|
|
|
4 At U.S.
statutory tax rate of 35 percent.
|
|
Machinery, Energy & Transportation
Caterpillar defines Machinery, Energy & Transportation as it
is presented in the supplemental data as Caterpillar Inc. and its
subsidiaries with Financial Products accounted for on the equity
basis. Machinery, Energy & Transportation information relates
to the design, manufacture and marketing of Caterpillar products.
Financial Products' information relates to the financing to
customers and dealers for the purchase and lease of Caterpillar and
other equipment. The nature of these businesses is different,
especially with regard to the financial position and cash flow
items. Caterpillar management utilizes this presentation internally
to highlight these differences. The company also believes this
presentation will assist readers in understanding Caterpillar's
business. Pages 17-25 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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
10,713
|
|
|
|
$
|
8,463
|
|
|
|
$
|
30,482
|
|
|
|
$
|
26,888
|
|
|
|
Revenues of Financial
Products
|
|
700
|
|
|
|
|
697
|
|
|
|
|
2,084
|
|
|
|
|
2,075
|
|
|
|
Total sales and
revenues
|
|
11,413
|
|
|
|
|
9,160
|
|
|
|
|
32,566
|
|
|
|
|
28,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
7,633
|
|
|
|
|
6,527
|
|
|
|
|
22,160
|
|
|
|
|
20,768
|
|
|
|
Selling, general and
administrative expenses
|
|
1,237
|
|
|
|
|
992
|
|
|
|
|
3,571
|
|
|
|
|
3,203
|
|
|
|
Research and
development expenses
|
|
455
|
|
|
|
|
453
|
|
|
|
|
1,326
|
|
|
|
|
1,429
|
|
|
|
Interest expense of
Financial Products
|
|
163
|
|
|
|
|
147
|
|
|
|
|
484
|
|
|
|
|
447
|
|
|
|
Other operating
(income) expenses
|
|
348
|
|
|
|
|
560
|
|
|
|
|
1,780
|
|
|
|
|
1,356
|
|
|
|
Total operating
costs
|
|
9,836
|
|
|
|
|
8,679
|
|
|
|
|
29,321
|
|
|
|
|
27,203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
1,577
|
|
|
|
|
481
|
|
|
|
|
3,245
|
|
|
|
|
1,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
118
|
|
|
|
|
126
|
|
|
|
|
362
|
|
|
|
|
385
|
|
|
|
Other income
(expense)
|
|
64
|
|
|
|
|
28
|
|
|
|
|
88
|
|
|
|
|
112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
1,523
|
|
|
|
|
383
|
|
|
|
|
2,971
|
|
|
|
|
1,487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
470
|
|
|
|
|
96
|
|
|
|
|
921
|
|
|
|
|
372
|
|
|
|
Profit of
consolidated companies
|
|
1,053
|
|
|
|
|
287
|
|
|
|
|
2,050
|
|
|
|
|
1,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
8
|
|
|
|
|
(4)
|
|
|
|
|
8
|
|
|
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
1,061
|
|
|
|
|
283
|
|
|
|
|
2,058
|
|
|
|
|
1,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
2
|
|
|
|
|
—
|
|
|
|
|
5
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
1
|
$
|
1,059
|
|
|
|
$
|
283
|
|
|
|
$
|
2,053
|
|
|
|
$
|
1,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit per common
share
|
$
|
1.79
|
|
|
|
$
|
0.48
|
|
|
|
$
|
3.48
|
|
|
|
$
|
1.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit per common
share – diluted 2
|
$
|
1.77
|
|
|
|
$
|
0.48
|
|
|
|
$
|
3.44
|
|
|
|
$
|
1.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares
outstanding (millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
592.9
|
|
|
|
|
584.7
|
|
|
|
|
590.3
|
|
|
|
|
583.8
|
|
|
|
- Diluted
2
|
|
600.1
|
|
|
|
|
589.6
|
|
|
|
|
596.5
|
|
|
|
|
588.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
1.55
|
|
|
|
$
|
1.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Profit attributable
to common shareholders.
|
2
|
Diluted by assumed
exercise of stock-based compensation awards using the treasury
stock method.
|
Caterpillar
Inc.
Condensed
Consolidated Statement of Financial Position
(Unaudited)
(Millions of
dollars)
|
|
September
30,
|
|
December
31,
|
|
2017
|
|
2016
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
$
|
9,591
|
|
|
|
$
|
7,168
|
|
|
|
|
Receivables - trade
and other
|
|
6,691
|
|
|
|
|
5,981
|
|
|
|
|
Receivables -
finance
|
|
8,984
|
|
|
|
|
8,522
|
|
|
|
|
Prepaid expenses and
other current assets
|
|
1,707
|
|
|
|
|
1,682
|
|
|
|
|
Inventories
|
|
10,212
|
|
|
|
|
8,614
|
|
|
|
Total current
assets
|
|
37,185
|
|
|
|
|
31,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment – net
|
|
14,187
|
|
|
|
|
15,322
|
|
|
|
Long-term receivables
- trade and other
|
|
969
|
|
|
|
|
1,029
|
|
|
|
Long-term receivables
- finance
|
|
13,192
|
|
|
|
|
13,556
|
|
|
|
Noncurrent deferred
and refundable income taxes
|
|
2,845
|
|
|
|
|
2,790
|
|
|
|
Intangible
assets
|
|
2,175
|
|
|
|
|
2,349
|
|
|
|
Goodwill
|
|
6,196
|
|
|
|
|
6,020
|
|
|
|
Other
assets
|
|
1,811
|
|
|
|
|
1,671
|
|
|
Total
assets
|
$
|
78,560
|
|
|
|
$
|
74,704
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
$
|
11
|
|
|
|
$
|
209
|
|
|
|
|
|
-- Financial
Products
|
|
5,459
|
|
|
|
|
7,094
|
|
|
|
|
Accounts
payable
|
|
6,113
|
|
|
|
|
4,614
|
|
|
|
|
Accrued
expenses
|
|
3,114
|
|
|
|
|
3,003
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
2,333
|
|
|
|
|
1,296
|
|
|
|
|
Customer
advances
|
|
1,510
|
|
|
|
|
1,167
|
|
|
|
|
Dividends
payable
|
|
—
|
|
|
|
|
452
|
|
|
|
|
Other current
liabilities
|
|
1,744
|
|
|
|
|
1,635
|
|
|
|
|
Long-term debt due
within one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
5
|
|
|
|
|
507
|
|
|
|
|
|
-- Financial
Products
|
|
5,614
|
|
|
|
|
6,155
|
|
|
|
Total current
liabilities
|
|
25,903
|
|
|
|
|
26,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt due
after one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
8,820
|
|
|
|
|
8,436
|
|
|
|
|
|
-- Financial
Products
|
|
16,015
|
|
|
|
|
14,382
|
|
|
|
Liability for
postemployment benefits
|
|
8,973
|
|
|
|
|
9,357
|
|
|
|
Other
liabilities
|
|
3,152
|
|
|
|
|
3,184
|
|
|
Total
liabilities
|
|
62,863
|
|
|
|
|
61,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
5,460
|
|
|
|
|
5,277
|
|
|
|
Treasury
stock
|
|
(17,130)
|
|
|
|
|
(17,478)
|
|
|
|
Profit employed in
the business
|
|
28,530
|
|
|
|
|
27,377
|
|
|
|
Accumulated other
comprehensive income (loss)
|
|
(1,233)
|
|
|
|
|
(2,039)
|
|
|
|
Noncontrolling
interests
|
|
70
|
|
|
|
|
76
|
|
|
Total
shareholders' equity
|
|
15,697
|
|
|
|
|
13,213
|
|
|
Total liabilities
and shareholders' equity
|
$
|
78,560
|
|
|
|
$
|
74,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Caterpillar
Inc.
Condensed
Consolidated Statement of Cash Flow
(Unaudited)
(Millions of
dollars)
|
|
Nine Months
Ended
|
|
September
30,
|
|
2017
|
|
2016
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
$
|
2,058
|
|
|
|
$
|
1,108
|
|
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,153
|
|
|
|
|
2,255
|
|
|
|
|
Other
|
|
592
|
|
|
|
|
640
|
|
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
Receivables – trade
and other
|
|
(455)
|
|
|
|
|
1,128
|
|
|
|
|
Inventories
|
|
(1,489)
|
|
|
|
|
331
|
|
|
|
|
Accounts
payable
|
|
1,371
|
|
|
|
|
(163)
|
|
|
|
|
Accrued
expenses
|
|
121
|
|
|
|
|
(153)
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
962
|
|
|
|
|
(727)
|
|
|
|
|
Customer
advances
|
|
310
|
|
|
|
|
(24)
|
|
|
|
|
Other assets –
net
|
|
(137)
|
|
|
|
|
(141)
|
|
|
|
|
Other liabilities –
net
|
|
(325)
|
|
|
|
|
(279)
|
|
|
Net cash provided by
(used for) operating activities
|
|
5,161
|
|
|
|
|
3,975
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
– excluding equipment leased to others
|
|
(566)
|
|
|
|
|
(807)
|
|
|
|
Expenditures for
equipment leased to others
|
|
(1,071)
|
|
|
|
|
(1,393)
|
|
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
864
|
|
|
|
|
572
|
|
|
|
Additions to finance
receivables
|
|
(8,246)
|
|
|
|
|
(6,911)
|
|
|
|
Collections of
finance receivables
|
|
8,532
|
|
|
|
|
6,968
|
|
|
|
Proceeds from sale of
finance receivables
|
|
98
|
|
|
|
|
55
|
|
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(47)
|
|
|
|
|
(72)
|
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
|
93
|
|
|
|
|
—
|
|
|
|
Proceeds from sale of
securities
|
|
431
|
|
|
|
|
304
|
|
|
|
Investments in
securities
|
|
(594)
|
|
|
|
|
(339)
|
|
|
|
Other –
net
|
|
38
|
|
|
|
|
5
|
|
|
Net cash provided by
(used for) investing activities
|
|
(468)
|
|
|
|
|
(1,618)
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(1,367)
|
|
|
|
|
(1,348)
|
|
|
|
Distribution to
noncontrolling interests
|
|
(7)
|
|
|
|
|
(8)
|
|
|
|
Common stock issued,
including treasury shares reissued
|
|
353
|
|
|
|
|
(54)
|
|
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
7,334
|
|
|
|
|
4,430
|
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(6,220)
|
|
|
|
|
(5,602)
|
|
|
|
Short-term borrowings
- net (original maturities three months or less)
|
|
(2,403)
|
|
|
|
|
(111)
|
|
|
Net cash provided by
(used for) financing activities
|
|
(2,310)
|
|
|
|
|
(2,693)
|
|
|
Effect of exchange
rate changes on cash
|
|
40
|
|
|
|
|
(11)
|
|
|
Increase
(decrease) in cash and short-term investments
|
|
2,423
|
|
|
|
|
(347)
|
|
|
Cash and short-term
investments at beginning of period
|
|
7,168
|
|
|
|
|
6,460
|
|
|
Cash and short-term
investments at end of period
|
$
|
9,591
|
|
|
|
$
|
6,113
|
|
|
|
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 September 30, 2017
(Unaudited)
(Millions of dollars)
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy
&
Transportation
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
10,713
|
|
|
|
$
|
10,713
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
|
700
|
|
|
|
|
—
|
|
|
|
|
793
|
|
|
|
|
(93)
|
2
|
|
Total sales and
revenues
|
|
11,413
|
|
|
|
|
10,713
|
|
|
|
|
793
|
|
|
|
|
(93)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
7,633
|
|
|
|
|
7,633
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Selling, general and
administrative expenses
|
|
1,237
|
|
|
|
|
1,067
|
|
|
|
|
173
|
|
|
|
|
(3)
|
3
|
|
Research and
development expenses
|
|
455
|
|
|
|
|
455
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
|
163
|
|
|
|
|
—
|
|
|
|
|
169
|
|
|
|
|
(6)
|
4
|
|
Other operating
(income) expenses
|
|
348
|
|
|
|
|
51
|
|
|
|
|
303
|
|
|
|
|
(6)
|
3
|
|
Total operating
costs
|
|
9,836
|
|
|
|
|
9,206
|
|
|
|
|
645
|
|
|
|
|
(15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
1,577
|
|
|
|
|
1,507
|
|
|
|
|
148
|
|
|
|
|
(78)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
118
|
|
|
|
|
143
|
|
|
|
|
—
|
|
|
|
|
(25)
|
4
|
|
Other income
(expense)
|
|
64
|
|
|
|
|
(22)
|
|
|
|
|
33
|
|
|
|
|
53
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
1,523
|
|
|
|
|
1,342
|
|
|
|
|
181
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
470
|
|
|
|
|
413
|
|
|
|
|
57
|
|
|
|
|
—
|
|
|
Profit of
consolidated companies
|
|
1,053
|
|
|
|
|
929
|
|
|
|
|
124
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
8
|
|
|
|
|
8
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
122
|
|
|
|
|
—
|
|
|
|
|
(122)
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
1,061
|
|
|
|
|
1,059
|
|
|
|
|
124
|
|
|
|
|
(122)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
2
|
|
|
|
|
—
|
|
|
|
|
2
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
1,059
|
|
|
|
$
|
1,059
|
|
|
|
$
|
122
|
|
|
|
$
|
(122)
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' revenues earned from Machinery, Energy &
Transportation.
|
3
|
Elimination of net
expenses recorded by Machinery, Energy & Transportation paid to
Financial Products.
|
4
|
Elimination of
interest expense recorded between Financial Products and Machinery,
Energy & Transportation.
|
5
|
Elimination of
discount recorded by Machinery, Energy & Transportation on
receivables sold to Financial Products and of interest earned between Machinery, Energy &
Transportation and Financial Products.
|
6
|
Elimination of
Financial Products' profit due to equity method of
accounting.
|
7
|
Profit attributable
to common shareholders.
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Three Months Ended September 30, 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
|
$
|
8,463
|
|
|
|
$
|
8,463
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
|
697
|
|
|
|
|
—
|
|
|
|
|
768
|
|
|
|
|
(71)
|
2
|
|
Total sales and
revenues
|
|
9,160
|
|
|
|
|
8,463
|
|
|
|
|
768
|
|
|
|
|
(71)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
6,527
|
|
|
|
|
6,528
|
|
|
|
|
—
|
|
|
|
|
(1)
|
3
|
|
Selling, general and
administrative expenses
|
|
992
|
|
|
|
|
858
|
|
|
|
|
138
|
|
|
|
|
(4)
|
3
|
|
Research and
development expenses
|
|
453
|
|
|
|
|
453
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
|
147
|
|
|
|
|
—
|
|
|
|
|
151
|
|
|
|
|
(4)
|
4
|
|
Other operating
(income) expenses
|
|
560
|
|
|
|
|
258
|
|
|
|
|
308
|
|
|
|
|
(6)
|
3
|
|
Total operating
costs
|
|
8,679
|
|
|
|
|
8,097
|
|
|
|
|
597
|
|
|
|
|
(15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
481
|
|
|
|
|
366
|
|
|
|
|
171
|
|
|
|
|
(56)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
126
|
|
|
|
|
139
|
|
|
|
|
—
|
|
|
|
|
(13)
|
4
|
|
Other income
(expense)
|
|
28
|
|
|
|
|
(25)
|
|
|
|
|
10
|
|
|
|
|
43
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
383
|
|
|
|
|
202
|
|
|
|
|
181
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
96
|
|
|
|
|
36
|
|
|
|
|
60
|
|
|
|
|
—
|
|
|
Profit of
consolidated companies
|
|
287
|
|
|
|
|
166
|
|
|
|
|
121
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
(4)
|
|
|
|
|
(4)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
120
|
|
|
|
|
—
|
|
|
|
|
(120)
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
283
|
|
|
|
|
282
|
|
|
|
|
121
|
|
|
|
|
(120)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
—
|
|
|
|
|
(1)
|
|
|
|
|
1
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
283
|
|
|
|
$
|
283
|
|
|
|
$
|
120
|
|
|
|
$
|
(120)
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' revenues earned from Machinery, Energy &
Transportation.
|
3
|
Elimination of net
expenses recorded by Machinery, Energy & Transportation paid to
Financial Products.
|
4
|
Elimination of
interest expense recorded between Financial Products and Machinery,
Energy & Transportation.
|
5
|
Elimination of
discount recorded by Machinery, Energy & Transportation on
receivables sold to Financial Products and of interest earned
between Machinery, Energy & Transportation and Financial
Products.
|
6
|
Elimination of
Financial Products' profit due to equity method of
accounting.
|
7
|
Profit attributable
to common shareholders.
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Nine Months Ended September 30, 2017
(Unaudited)
(Millions of dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
|
Machinery,
|
|
|
|
|
|
|
Consolidated
|
|
Energy
&
Transportation
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
30,482
|
|
|
|
$
|
30,482
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
|
2,084
|
|
|
|
|
—
|
|
|
|
|
2,363
|
|
|
|
|
(279)
|
2
|
|
Total sales and
revenues
|
|
32,566
|
|
|
|
|
30,482
|
|
|
|
|
2,363
|
|
|
|
|
(279)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
22,160
|
|
|
|
|
22,160
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Selling, general and
administrative expenses
|
|
3,571
|
|
|
|
|
3,145
|
|
|
|
|
438
|
|
|
|
|
(12)
|
3
|
|
Research and
development expenses
|
|
1,326
|
|
|
|
|
1,326
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
|
484
|
|
|
|
|
—
|
|
|
|
|
499
|
|
|
|
|
(15)
|
4
|
|
Other operating
(income) expenses
|
|
1,780
|
|
|
|
|
890
|
|
|
|
|
906
|
|
|
|
|
(16)
|
3
|
|
Total operating
costs
|
|
29,321
|
|
|
|
|
27,521
|
|
|
|
|
1,843
|
|
|
|
|
(43)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
3,245
|
|
|
|
|
2,961
|
|
|
|
|
520
|
|
|
|
|
(236)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
362
|
|
|
|
|
433
|
|
|
|
|
—
|
|
|
|
|
(71)
|
4
|
|
Other income
(expense)
|
|
88
|
|
|
|
|
(110)
|
|
|
|
|
33
|
|
|
|
|
165
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
2,971
|
|
|
|
|
2,418
|
|
|
|
|
553
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
921
|
|
|
|
|
750
|
|
|
|
|
171
|
|
|
|
|
—
|
|
|
Profit of
consolidated companies
|
|
2,050
|
|
|
|
|
1,668
|
|
|
|
|
382
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
8
|
|
|
|
|
8
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
377
|
|
|
|
|
—
|
|
|
|
|
(377)
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
2,058
|
|
|
|
|
2,053
|
|
|
|
|
382
|
|
|
|
|
(377)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
5
|
|
|
|
|
—
|
|
|
|
|
5
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
2,053
|
|
|
|
$
|
2,053
|
|
|
|
$
|
377
|
|
|
|
$
|
(377)
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' revenues earned from Machinery, Energy &
Transportation.
|
3
|
Elimination of net
expenses recorded by Machinery, Energy & Transportation paid to
Financial Products.
|
4
|
Elimination of
interest expense recorded between Financial Products and Machinery,
Energy & Transportation.
|
5
|
Elimination of
discount recorded by Machinery, Energy & Transportation on
receivables sold to Financial Products and of interest earned
between Machinery, Energy & Transportation and Financial
Products.
|
6
|
Elimination of
Financial Products' profit due to equity method of
accounting.
|
7
|
Profit attributable
to common shareholders.
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Nine Months Ended September 30, 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
|
$
|
26,888
|
|
|
|
$
|
26,888
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
|
2,075
|
|
|
|
|
—
|
|
|
|
|
2,305
|
|
|
|
|
(230)
|
2
|
|
Total sales and
revenues
|
|
28,963
|
|
|
|
|
26,888
|
|
|
|
|
2,305
|
|
|
|
|
(230)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
20,768
|
|
|
|
|
20,769
|
|
|
|
|
—
|
|
|
|
|
(1)
|
3
|
|
Selling, general and
administrative expenses
|
|
3,203
|
|
|
|
|
2,794
|
|
|
|
|
424
|
|
|
|
|
(15)
|
3
|
|
Research and
development expenses
|
|
1,429
|
|
|
|
|
1,429
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
|
447
|
|
|
|
|
—
|
|
|
|
|
458
|
|
|
|
|
(11)
|
4
|
|
Other operating
(income) expenses
|
|
1,356
|
|
|
|
|
462
|
|
|
|
|
914
|
|
|
|
|
(20)
|
3
|
|
Total operating
costs
|
|
27,203
|
|
|
|
|
25,454
|
|
|
|
|
1,796
|
|
|
|
|
(47)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
1,760
|
|
|
|
|
1,434
|
|
|
|
|
509
|
|
|
|
|
(183)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
385
|
|
|
|
|
422
|
|
|
|
|
—
|
|
|
|
|
(37)
|
4
|
|
Other income
(expense)
|
|
112
|
|
|
|
|
(72)
|
|
|
|
|
38
|
|
|
|
|
146
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
1,487
|
|
|
|
|
940
|
|
|
|
|
547
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
372
|
|
|
|
|
198
|
|
|
|
|
174
|
|
|
|
|
—
|
|
|
Profit of
consolidated companies
|
|
1,115
|
|
|
|
|
742
|
|
|
|
|
373
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
(7)
|
|
|
|
|
(7)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
369
|
|
|
|
|
—
|
|
|
|
|
(369)
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
1,108
|
|
|
|
|
1,104
|
|
|
|
|
373
|
|
|
|
|
(369)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
4
|
|
|
|
|
—
|
|
|
|
|
4
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
1,104
|
|
|
|
$
|
1,104
|
|
|
|
$
|
369
|
|
|
|
$
|
(369)
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' revenues earned from Machinery, Energy &
Transportation.
|
3
|
Elimination of net
expenses recorded by Machinery, Energy & Transportation paid to
Financial Products.
|
4
|
Elimination of
interest expense recorded between Financial Products and Machinery,
Energy & Transportation.
|
5
|
Elimination of
discount recorded by Machinery, Energy & Transportation on
receivables sold to Financial Products and of interest earned
between Machinery, Energy & Transportation and Financial
Products.
|
6
|
Elimination of
Financial Products' profit due to equity method of
accounting.
|
7
|
Profit attributable
to common shareholders.
|
Caterpillar
Inc.
Supplemental Data
for Cash Flow
For the Nine
Months Ended September 30, 2017
(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
|
$
|
2,058
|
|
|
|
$
|
2,053
|
|
|
|
$
|
382
|
|
|
|
$
|
(377)
|
2
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,153
|
|
|
|
|
1,507
|
|
|
|
|
646
|
|
|
|
|
—
|
|
|
|
Undistributed profit
of Financial Products
|
|
—
|
|
|
|
|
(377)
|
|
|
|
|
—
|
|
|
|
|
377
|
3
|
|
|
Other
|
|
592
|
|
|
|
|
524
|
|
|
|
|
(111)
|
|
|
|
|
179
|
4
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables - trade
and other
|
|
(455)
|
|
|
|
|
(324)
|
|
|
|
|
62
|
|
|
|
|
(193)
|
4,5
|
|
|
Inventories
|
|
(1,489)
|
|
|
|
|
(1,487)
|
|
|
|
|
—
|
|
|
|
|
(2)
|
4
|
|
|
Accounts
payable
|
|
1,371
|
|
|
|
|
1,412
|
|
|
|
|
(33)
|
|
|
|
|
(8)
|
4
|
|
|
Accrued
expenses
|
|
121
|
|
|
|
|
118
|
|
|
|
|
3
|
|
|
|
|
—
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
962
|
|
|
|
|
943
|
|
|
|
|
19
|
|
|
|
|
—
|
|
|
|
Customer
advances
|
|
310
|
|
|
|
|
310
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Other assets -
net
|
|
(137)
|
|
|
|
|
18
|
|
|
|
|
(54)
|
|
|
|
|
(101)
|
4
|
|
|
Other liabilities -
net
|
|
(325)
|
|
|
|
|
(533)
|
|
|
|
|
107
|
|
|
|
|
101
|
4
|
Net cash provided by
(used for) operating activities
|
|
5,161
|
|
|
|
|
4,164
|
|
|
|
|
1,021
|
|
|
|
|
(24)
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
- excluding equipment leased to others
|
|
(566)
|
|
|
|
|
(561)
|
|
|
|
|
(6)
|
|
|
|
|
1
|
4
|
|
Expenditures for
equipment leased to others
|
|
(1,071)
|
|
|
|
|
(13)
|
|
|
|
|
(1,074)
|
|
|
|
|
16
|
4
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
864
|
|
|
|
|
142
|
|
|
|
|
733
|
|
|
|
|
(11)
|
4
|
|
Additions to finance
receivables
|
|
(8,246)
|
|
|
|
|
—
|
|
|
|
|
(9,765)
|
|
|
|
|
1,519
|
5
|
|
Collections of
finance receivables
|
|
8,532
|
|
|
|
|
—
|
|
|
|
|
10,194
|
|
|
|
|
(1,662)
|
5
|
|
Net intercompany
purchased receivables
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(161)
|
|
|
|
|
161
|
5
|
|
Proceeds from sale of
finance receivables
|
|
98
|
|
|
|
|
—
|
|
|
|
|
98
|
|
|
|
|
—
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
165
|
|
|
|
|
(1,000)
|
|
|
|
|
835
|
6
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(47)
|
|
|
|
|
(47)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
|
93
|
|
|
|
|
93
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Proceeds from sale of
securities
|
|
431
|
|
|
|
|
36
|
|
|
|
|
395
|
|
|
|
|
—
|
|
|
Investments in
securities
|
|
(594)
|
|
|
|
|
(165)
|
|
|
|
|
(429)
|
|
|
|
|
—
|
|
|
Other -
net
|
|
38
|
|
|
|
|
17
|
|
|
|
|
21
|
|
|
|
|
—
|
|
Net cash provided by
(used for) investing activities
|
|
(468)
|
|
|
|
|
(333)
|
|
|
|
|
(994)
|
|
|
|
|
859
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(1,367)
|
|
|
|
|
(1,367)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Distribution to
noncontrolling interests
|
|
(7)
|
|
|
|
|
(7)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Common stock issued,
including treasury shares reissued
|
|
353
|
|
|
|
|
353
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
1,000
|
|
|
|
|
(165)
|
|
|
|
|
(835)
|
6
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
7,334
|
|
|
|
|
362
|
|
|
|
|
6,972
|
|
|
|
|
—
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(6,220)
|
|
|
|
|
(506)
|
|
|
|
|
(5,714)
|
|
|
|
|
—
|
|
|
Short-term borrowings
- net (original maturities three months or less)
|
|
(2,403)
|
|
|
|
|
(196)
|
|
|
|
|
(2,207)
|
|
|
|
|
—
|
|
Net cash provided by
(used for) financing activities
|
|
(2,310)
|
|
|
|
|
(361)
|
|
|
|
|
(1,114)
|
|
|
|
|
(835)
|
|
Effect of exchange
rate changes on cash
|
|
40
|
|
|
|
|
9
|
|
|
|
|
31
|
|
|
|
|
—
|
|
Increase
(decrease) in cash and short-term investments
|
|
2,423
|
|
|
|
|
3,479
|
|
|
|
|
(1,056)
|
|
|
|
|
—
|
|
Cash and short-term
investments at beginning of period
|
|
7,168
|
|
|
|
|
5,257
|
|
|
|
|
1,911
|
|
|
|
|
—
|
|
Cash and short-term
investments at end of period
|
$
|
9,591
|
|
|
|
$
|
8,736
|
|
|
|
$
|
855
|
|
|
|
$
|
—
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' profit after tax due to equity method of
accounting.
|
3
|
Elimination of
non-cash adjustment for the undistributed earnings from Financial
Products.
|
4
|
Elimination of
non-cash adjustments and changes in assets and liabilities related
to consolidated reporting.
|
5
|
Reclassification of
Financial Products' cash flow activity from investing to operating
for receivables that arose from the sale of inventory.
|
6
|
Elimination of net
proceeds and payments to/from Machinery, Energy &
Transportation and Financial Products.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Caterpillar
Inc.
Supplemental Data
for Cash Flow
For the Nine
Months Ended September 30, 2016
(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
|
$
|
1,108
|
|
|
|
$
|
1,104
|
|
|
|
$
|
373
|
|
|
|
$
|
(369)
|
2
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,255
|
|
|
|
|
1,591
|
|
|
|
|
664
|
|
|
|
|
—
|
|
|
|
Undistributed profit
of Financial Products
|
|
—
|
|
|
|
|
(362)
|
|
|
|
|
—
|
|
|
|
|
362
|
3
|
|
|
Other
|
|
640
|
|
|
|
|
503
|
|
|
|
|
(11)
|
|
|
|
|
148
|
4
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables - trade
and other
|
|
1,128
|
|
|
|
|
252
|
|
|
|
|
42
|
|
|
|
|
834
|
4,5
|
|
|
Inventories
|
|
331
|
|
|
|
|
335
|
|
|
|
|
—
|
|
|
|
|
(4)
|
4
|
|
|
Accounts
payable
|
|
(163)
|
|
|
|
|
(130)
|
|
|
|
|
16
|
|
|
|
|
(49)
|
4
|
|
|
Accrued
expenses
|
|
(153)
|
|
|
|
|
(93)
|
|
|
|
|
(60)
|
|
|
|
|
—
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(727)
|
|
|
|
|
(713)
|
|
|
|
|
(14)
|
|
|
|
|
—
|
|
|
|
Customer
advances
|
|
(24)
|
|
|
|
|
(24)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Other assets -
net
|
|
(141)
|
|
|
|
|
(278)
|
|
|
|
|
102
|
|
|
|
|
35
|
4
|
|
|
Other liabilities -
net
|
|
(279)
|
|
|
|
|
(390)
|
|
|
|
|
146
|
|
|
|
|
(35)
|
4
|
Net cash provided by
(used for) operating activities
|
|
3,975
|
|
|
|
|
1,795
|
|
|
|
|
1,258
|
|
|
|
|
922
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
- excluding equipment leased to others
|
|
(807)
|
|
|
|
|
(802)
|
|
|
|
|
(6)
|
|
|
|
|
1
|
4
|
|
Expenditures for
equipment leased to others
|
|
(1,393)
|
|
|
|
|
(56)
|
|
|
|
|
(1,377)
|
|
|
|
|
40
|
4
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
572
|
|
|
|
|
89
|
|
|
|
|
510
|
|
|
|
|
(27)
|
4
|
|
Additions to finance
receivables
|
|
(6,911)
|
|
|
|
|
—
|
|
|
|
|
(8,888)
|
|
|
|
|
1,977
|
5
|
|
Collections of
finance receivables
|
|
6,968
|
|
|
|
|
—
|
|
|
|
|
9,308
|
|
|
|
|
(2,340)
|
5
|
|
Net intercompany
purchased receivables
|
|
—
|
|
|
|
|
—
|
|
|
|
|
580
|
|
|
|
|
(580)
|
5
|
|
Proceeds from sale of
finance receivables
|
|
55
|
|
|
|
|
—
|
|
|
|
|
55
|
|
|
|
|
—
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
(716)
|
|
|
|
|
(999)
|
|
|
|
|
1,715
|
6
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(72)
|
|
|
|
|
(72)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Proceeds from sale of
securities
|
|
304
|
|
|
|
|
25
|
|
|
|
|
279
|
|
|
|
|
—
|
|
|
Investments in
securities
|
|
(339)
|
|
|
|
|
(22)
|
|
|
|
|
(317)
|
|
|
|
|
—
|
|
|
Other -
net
|
|
5
|
|
|
|
|
15
|
|
|
|
|
(17)
|
|
|
|
|
7
|
8
|
Net cash provided by
(used for) investing activities
|
|
(1,618)
|
|
|
|
|
(1,539)
|
|
|
|
|
(872)
|
|
|
|
|
793
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(1,348)
|
|
|
|
|
(1,348)
|
|
|
|
|
(7)
|
|
|
|
|
7
|
7
|
|
Distribution to
noncontrolling interests
|
|
(8)
|
|
|
|
|
(8)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Common stock issued,
including treasury shares reissued
|
|
(54)
|
|
|
|
|
(54)
|
|
|
|
|
7
|
|
|
|
|
(7)
|
8
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
999
|
|
|
|
|
716
|
|
|
|
|
(1,715)
|
6
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
4,430
|
|
|
|
|
6
|
|
|
|
|
4,424
|
|
|
|
|
—
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(5,602)
|
|
|
|
|
(525)
|
|
|
|
|
(5,077)
|
|
|
|
|
—
|
|
|
Short-term borrowings
- net (original maturities three months or less)
|
|
(111)
|
|
|
|
|
254
|
|
|
|
|
(365)
|
|
|
|
|
—
|
|
Net cash provided by
(used for) financing activities
|
|
(2,693)
|
|
|
|
|
(676)
|
|
|
|
|
(302)
|
|
|
|
|
(1,715)
|
|
Effect of exchange
rate changes on cash
|
|
(11)
|
|
|
|
|
(26)
|
|
|
|
|
15
|
|
|
|
|
—
|
|
Increase
(decrease) in cash and short-term investments
|
|
(347)
|
|
|
|
|
(446)
|
|
|
|
|
99
|
|
|
|
|
—
|
|
Cash and short-term
investments at beginning of period
|
|
6,460
|
|
|
|
|
5,340
|
|
|
|
|
1,120
|
|
|
|
|
—
|
|
Cash and short-term
investments at end of period
|
$
|
6,113
|
|
|
|
$
|
4,894
|
|
|
|
$
|
1,219
|
|
|
|
$
|
—
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' profit after tax due to equity method of
accounting.
|
3
|
Elimination of
non-cash adjustment for the undistributed earnings from Financial
Products.
|
4
|
Elimination of
non-cash adjustments and changes in assets and liabilities related
to consolidated reporting.
|
5
|
Reclassification of
Financial Products' cash flow activity from investing to operating
for receivables that arose from the sale of inventory.
|
6
|
Elimination of net
proceeds and payments to/from Machinery, Energy &
Transportation and Financial Products.
|
7
|
Elimination of
dividend from Financial Products to Machinery, Energy &
Transportation.
|
8
|
Elimination of change
in investment and common stock related to Financial
Products.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/caterpillar-reports-third-quarter-2017-results-300541938.html
SOURCE Caterpillar Inc.