DEERFIELD, Ill., Jan. 25, 2018 /PRNewswire/ --
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Fourth
Quarter
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Full
Year
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($ in billions except
profit per share)
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2017
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2016
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2017
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2016
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Sales and
Revenues
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$12.9
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$9.6
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$45.5
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$38.5
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Profit (Loss) Per
Share
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($2.18)
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($2.00)
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$1.26
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($0.11)
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Adjusted Profit
Per Share
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$2.16
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$0.83
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$6.88
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$3.42
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- Fourth-quarter sales and revenues up 35 percent
- Broad-based sales recovery gained momentum in the fourth
quarter of 2017
- Fourth-quarter 2017 results include a charge of $2.4 billion, or $3.91 per share, from U.S. tax reform
legislation
- Expect growth in many end markets in 2018
- Implementing new strategy focused on operational excellence and
profitable growth
Caterpillar Inc. (NYSE: CAT) today announced fourth-quarter and
full-year results for 2017.
Sales and revenues in the fourth quarter of 2017 were
$12.9 billion, compared with
$9.6 billion in the fourth quarter of
2016. Fourth-quarter 2017 loss was $2.18 per share, compared with a loss of
$2.00 per share in the fourth quarter
of 2016.
Full-year sales and revenues in 2017 were $45.5 billion, up about 18 percent from
$38.5 billion in 2016. Full-year
profit was $1.26 per share in 2017,
compared with a loss of $0.11 per
share in 2016.
Adjusted profit per share in the fourth quarter of
2017 was $2.16, compared with
fourth-quarter 2016 adjusted profit per share of $0.83. Adjusted profit per share in 2017 was
$6.88, compared with 2016 adjusted
profit per share of $3.42.
Adjusted profit per share excludes several large adjustments
consisting of the impact of U.S. tax reform, restructuring
costs, mark-to-market losses for remeasurement of
pension and OPEB plans, state deferred tax valuation
allowance adjustments, a gain on sale of an equity investment in
2017 and a goodwill impairment charge in 2016. A discussion of
these items is included in Q&A #1 on page 14.
Caterpillar's financial position continued to strengthen in the
fourth quarter. Machinery, Energy & Transportation
(ME&T) operating cash flow was $1.3 billion during the fourth quarter of 2017
and $5.5 billion for the
full year of 2017. The ME&T debt-to-capital ratio
was 36.7 percent at the end of 2017, compared to 41.0 percent at
the end of 2016. The company ended 2017 with an enterprise cash
balance of $8.3 billion. In the
fourth quarter of 2017, the company made a discretionary
contribution to U.S. pension plans of $1.0
billion and a payment for early debt retirement of
$958 million.
"After four challenging years, many key markets improved in
2017, and our global team delivered strong results. We remained
focused on operational excellence and made early investments in
profitable growth initiatives as we began to implement our new
strategy," said Caterpillar CEO Jim
Umpleby.
2018 Outlook
Caterpillar is beginning 2018 with strong sales momentum
resulting from strong order rates, lean dealer inventories and an
increasing backlog. Additionally, there are positive economic
indicators across most of the world and in many of the company's
end markets. Caterpillar is preparing its factories and suppliers
to be ready for continued growth, while remaining focused on
managing with a flexible and competitive cost structure that should
enable the company to respond quickly if economic fundamentals
change.
The company expects 2018 profit per share in a range of
$7.75 to $8.75. Excluding restructuring costs of about
$400 million, adjusted profit per
share is expected in a range of $8.25
to $9.25.
"We are in the early stages of implementing our strategy for
profitable growth. In 2018, we expect to make additional
investments in the expanded offerings and services important for
Caterpillar's long-term success. We will use our Operating &
Execution Model to bias resources to areas that represent the
greatest opportunity for return on our investments," said
Umpleby.
"Our focus on operational excellence will not waver as we work
to develop a more competitive and flexible cost structure,
including implementing lean manufacturing principles. We are
positioned to capitalize on continued sales momentum or quickly
adjust should conditions change," added Umpleby.
Following is a summary of the key drivers of sales assumptions
included in the outlook:
Construction Industries – The company expects
growth in 2018 with some tempering in the latter part of the year,
largely due to anticipated seasonality of sales in China. Caterpillar expects improvement in
North American residential, non-residential and infrastructure. The
outlook does not include any impact from a potential U.S.
infrastructure bill. Europe and
Asia/Pacific are expected to
continue to grow, and the recovery that started in Africa/Middle
East and Latin America is
expected to extend into 2018.
Resource Industries – The company believes that
global economic momentum and increasing commodity prices are
restoring miners' business confidence and financial health. The
company anticipates miners' capital spend to increase as mining
businesses invest in equipment replacement cycles. Higher machine
utilization levels should support continued strong aftermarket
parts opportunities. Strong global demand is expected to be a
positive for heavy construction.
Energy & Transportation – Sales into Oil and
Gas applications are expected to increase in 2018, led by
reciprocating engines for gas compression and well servicing in
North America. The current
turbines backlog is healthy in support of the midstream pipeline
business. The company expects an increase in Transportation
primarily from recent acquisitions in rail services, while the
locomotive and marine markets are expected to remain challenged.
Power Generation sales are forecast to be slightly up after a
multi-year downturn. Sales into Industrial applications are
expected to be about flat.
Following are key points to help understand the elements of the
2018 profit outlook:
- An expected increase in sales volume is the most
significant reason for the higher profit outlook, with volume
increases forecasted across the three primary segments.
- Slightly favorable price realization is expected
to be mostly offset by material cost increases due to higher
commodity prices.
- Period costs excluding short-term incentive compensation
expense are expected to increase due to labor inflation and
targeted investments in profitable growth initiatives, including
expanded offerings and services.
- The outlook includes short-term incentive compensation expense
of about $900 million.
- Financial Products' segment profit is expected to
be lower in 2018 than in 2017, primarily due to the absence of
about $100 million of gains on sales
of securities in 2017.
- The outlook assumes a tax rate of 24 percent, including the
company's current estimate of the impact of U.S. tax reform
legislation.
- ME&T capital expenditures are expected to be about
$1.0 billion to $1.5 billion.
- No stock repurchases are assumed in the outlook.
- The outlook does not include a mark-to-market gain or loss for
remeasurement of pension and OPEB plans or changes to provisional
estimates recorded in 2017 for U.S. tax reform.
Notes:
- Glossary of terms is included on pages 17-18; first
occurrence of terms shown in bold italics.
- Information on non-GAAP financial measures is included on
page 19.
- Caterpillar will conduct a teleconference and live webcast,
with a slide presentation, beginning at 10
a.m. Central Time on Thursday, January 25, 2018, to discuss
its 2017 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 2017 sales and revenues of $45.462 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, including the impact of U.S. tax reform; (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
Fourth Quarter 2017 vs. Fourth Quarter 2016
To access this chart, go to
http://www.caterpillar.com/en/investors/quarterly-results.html for
the downloadable version of Caterpillar 4Q 2017
earnings.
The chart above graphically illustrates reasons for the change
in Consolidated Sales and Revenues between the fourth quarter of
2016 (at left) and the fourth 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 $12.896
billion in the fourth quarter of 2017, an increase of
$3.322 billion, or 35 percent,
compared with $9.574 billion in the
fourth quarter of 2016. The increase was primarily due to higher
sales volume, mostly due to improved end-user demand. In addition,
favorable changes in dealer inventories contributed to increased
sales volume. 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 in the fourth quarter
of 2016, compared to dealer inventories that were about flat in the
fourth quarter of 2017. By segment, the largest sales volume
increase was in Construction Industries, mostly due to higher
end-user demand for construction equipment and the favorable impact
of changes in dealer inventories. Energy & Transportation's
sales volume increased due to higher demand across all
applications. Sales volume for Resource Industries increased due to
higher end-user demand for equipment and aftermarket parts.
Favorable price realization, primarily in Construction Industries
and Resource 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 46
percent in North America primarily
due to higher end-user demand for both equipment and aftermarket
parts. Changes in dealer inventories were favorable as dealer
inventories decreased in the fourth quarter of 2016 and increased
slightly in the fourth quarter of 2017. EAME sales
increased 38 percent primarily due to higher end-user demand for
equipment and favorable price realization. Asia/Pacific sales increased 22
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. Sales increased 39
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, as well as favorable changes in dealer
inventories.
Consolidated Operating Profit (Loss)
Consolidated Operating Profit Comparison
Fourth Quarter 2017 vs. Fourth Quarter 2016
To access this chart, go to
http://www.caterpillar.com/en/investors/quarterly-results.html for
the downloadable version of Caterpillar 4Q 2017
earnings.
The chart above graphically illustrates reasons for the change
in Consolidated Operating Profit (Loss) between the fourth quarter
of 2016 (at left) and the fourth 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 fourth quarter of 2017 was $1.161 billion, compared with a loss of
$1.262 billion in the fourth quarter
of 2016. The increase of $2.423
billion was due to higher sales volume, a decrease in
mark-to-market losses related to pension and OPEB plans and the
absence of a goodwill impairment charge in Resource Industries in
2016. Favorable price realization, lower variable
manufacturing costs and lower restructuring costs were
mostly offset by higher period costs. Price
realization was favorable, primarily in Construction Industries and
Resource Industries.
Variable manufacturing costs were lower primarily due to the
favorable impact from cost absorption and lower warranty expense.
Cost absorption was favorable as inventory was about flat in the
fourth quarter of 2017, compared to a reduction in inventory in the
fourth 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.
Also contributing to increased period costs were targeted
investments and higher manufacturing costs to support higher
production volumes, partially offset by lower depreciation
expense.
Restructuring costs were $245
million in the fourth quarter of 2017, compared with
$395 million in the fourth quarter of
2016.
Other Profit/Loss Items
- Interest expense excluding Financial Products in the
fourth quarter of 2017 was $169
million, an increase of $49
million from the fourth quarter of 2016, primarily due to an
early debt retirement.
- Other income/expense in the fourth quarter of 2017 was
income of $119 million, compared with
income of $34 million in the fourth
quarter of 2016. The favorable change was primarily a result of
gains on the sale of securities.
- The provision for income taxes in the fourth quarter
reflects an annual effective tax rate of approximately 28 percent,
compared to approximately 36 percent for the full year of 2016,
excluding the items discussed below. The effective tax rate related
to 2017 full-year adjusted profit before tax, excluding a discrete
benefit from stock-based compensation awards, was 27 percent,
compared to 26 percent in 2016.
The provision for income taxes in the fourth quarter of 2017
also includes a charge of $2.371
billion due to the enactment of U.S. tax reform legislation
on December 22, 2017. The
provisionally estimated charge includes a $596 million write-down of net deferred tax
assets to reflect the reduction in the U.S. corporate tax rate from
35 percent to 21 percent beginning January
1, 2018, with the remainder primarily related to the cost of
a mandatory deemed repatriation of non-U.S. earnings. Three items
partially offset this charge:
- A $130 million benefit related to
the change from the third-quarter estimated annual tax rate of 32
percent to approximately 28 percent for the full year of 2017,
primarily due to a more favorable geographic mix of profits from a
tax perspective, including the impact of U.S. pension and OPEB
mark-to-market losses taxed at higher U.S. rates.
- A non-cash benefit of $111
million, net of U.S. federal tax at 35 percent, from
reductions in the valuation allowance against U.S. state deferred
tax assets due to improved profits in the
United States.
- A tax benefit of $19 million for
the settlement of stock-based compensation awards with associated
tax deductions in excess of cumulative U.S. GAAP compensation
expense.
The provision for income taxes in the fourth quarter of 2016
also included a charge of $170
million related to the change from the third quarter of 2016
estimated annual tax rate. In addition, the valuation allowance
against U.S. state deferred tax assets was increased in 2016,
resulting in a $141 million non-cash
charge, net of U.S. federal tax at 35 percent.
Global Workforce
Caterpillar worldwide, full-time employment was about 98,400 at
the end of 2017, an increase of about 3,000 full-time employees
from the end of 2016, primarily the result of higher production
volumes. The flexible workforce increased by about 7,300, also
primarily due to higher production volumes. In total, the global
workforce increased by about 10,300.
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|
December
31
|
|
|
2017
|
|
2016
|
|
Increase/
(Decrease)
|
Full-time
employment
|
|
98,400
|
|
95,400
|
|
3,000
|
Flexible
workforce
|
|
18,300
|
|
11,000
|
|
7,300
|
Total
|
|
116,700
|
|
106,400
|
|
10,300
|
|
|
|
|
|
|
|
Geographic
Summary
|
|
|
|
|
|
|
U.S.
workforce
|
|
50,500
|
|
45,700
|
|
4,800
|
Non-U.S.
workforce
|
|
66,200
|
|
60,700
|
|
5,500
|
Total
|
|
116,700
|
|
106,400
|
|
10,300
|
SEGMENT RESULTS
|
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|
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|
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|
|
|
|
|
|
Sales and Revenues
by Geographic Region
|
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|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
%
|
|
North
|
|
%
|
|
Latin
|
|
%
|
|
|
|
%
|
|
Asia/
|
|
%
|
|
(Millions of
dollars)
|
Total
|
|
Change
|
|
America
|
|
Change
|
|
America
|
|
Change
|
|
EAME
|
|
Change
|
|
Pacific
|
|
Change
|
|
Fourth Quarter
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries¹
|
$
5,258
|
|
47
|
%
|
|
$
2,346
|
|
50
|
%
|
|
$
392
|
|
48
|
%
|
|
$
976
|
|
56
|
%
|
|
$ 1,544
|
|
36
|
%
|
|
Resource
Industries²
|
2,205
|
|
53
|
%
|
|
791
|
|
68
|
%
|
|
384
|
|
74
|
%
|
|
475
|
|
60
|
%
|
|
555
|
|
22
|
%
|
|
Energy &
Transportation³
|
4,706
|
|
22
|
%
|
|
2,327
|
|
35
|
%
|
|
374
|
|
8
|
%
|
|
1,286
|
|
21
|
%
|
|
719
|
|
-
|
%
|
|
All Other
Segments⁴
|
52
|
|
63
|
%
|
|
22
|
|
100
|
%
|
|
1
|
|
-
|
%
|
|
14
|
|
180
|
%
|
|
15
|
|
(6)
|
%
|
|
Corporate Items and
Eliminations
|
(27)
|
|
|
|
|
(27)
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
Machinery, Energy
& Transportation
|
$ 12,194
|
|
37
|
%
|
|
$
5,459
|
|
46
|
%
|
|
$
1,151
|
|
39
|
%
|
|
$ 2,751
|
|
38
|
%
|
|
$ 2,833
|
|
22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$
783
|
|
6
|
%
|
|
$
505
|
|
9
|
%
|
|
$
80
|
|
(4)
|
%
|
|
$
107
|
|
8
|
%
|
|
$
91
|
|
(5)
|
%
|
|
Corporate Items and
Eliminations
|
(81)
|
|
|
|
|
(50)
|
|
|
|
|
(12)
|
|
|
|
|
(6)
|
|
|
|
|
(13)
|
|
|
|
|
Financial
Products Revenues
|
$
702
|
|
2
|
%
|
|
$
455
|
|
5
|
%
|
|
$
68
|
|
(8)
|
%
|
|
$
101
|
|
6
|
%
|
|
$
78
|
|
(8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$ 12,896
|
|
35
|
%
|
|
$
5,914
|
|
41
|
%
|
|
$
1,219
|
|
35
|
%
|
|
$ 2,852
|
|
37
|
%
|
|
$ 2,911
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries¹
|
$
3,589
|
|
|
|
|
$
1,569
|
|
|
|
|
$
264
|
|
|
|
|
$
624
|
|
|
|
|
$ 1,132
|
|
|
|
|
Resource
Industries²
|
1,443
|
|
|
|
|
471
|
|
|
|
|
221
|
|
|
|
|
297
|
|
|
|
|
454
|
|
|
|
|
Energy &
Transportation³
|
3,849
|
|
|
|
|
1,722
|
|
|
|
|
347
|
|
|
|
|
1,063
|
|
|
|
|
717
|
|
|
|
|
All Other
Segments⁴
|
32
|
|
|
|
|
11
|
|
|
|
|
-
|
|
|
|
|
5
|
|
|
|
|
16
|
|
|
|
|
Corporate Items and
Eliminations
|
(28)
|
|
|
|
|
(23)
|
|
|
|
|
(2)
|
|
|
|
|
(2)
|
|
|
|
|
(1)
|
|
|
|
|
Machinery, Energy
& Transportation
|
$
8,885
|
|
|
|
|
$
3,750
|
|
|
|
|
$
830
|
|
|
|
|
$ 1,987
|
|
|
|
|
$ 2,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$
742
|
|
|
|
|
$
464
|
|
|
|
|
$
83
|
|
|
|
|
$
99
|
|
|
|
|
$
96
|
|
|
|
|
Corporate Items and
Eliminations
|
(53)
|
|
|
|
|
(29)
|
|
|
|
|
(9)
|
|
|
|
|
(4)
|
|
|
|
|
(11)
|
|
|
|
|
Financial
Products Revenues
|
$
689
|
|
|
|
|
$
435
|
|
|
|
|
$
74
|
|
|
|
|
$
95
|
|
|
|
|
$
85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
9,574
|
|
|
|
|
$
4,185
|
|
|
|
|
$
904
|
|
|
|
|
$ 2,082
|
|
|
|
|
$ 2,403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Does not
include inter-segment sales of $37 million and $31 million in
fourth quarter 2017 and 2016, respectively.
|
|
|
|
|
2Does not
include inter-segment sales of $103 million and $87 million in
fourth quarter 2017 and 2016, respectively.
|
|
|
|
|
3Does not
include inter-segment sales of $934 million and $621 million in
fourth quarter 2017 and 2016, respectively.
|
|
|
|
|
4Does not
include inter-segment sales of $103 million and $117 million in
fourth quarter 2017 and 2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Revenues
by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
|
|
Sales
|
|
Price
|
|
|
|
|
|
Fourth
|
|
$
|
|
%
|
(Millions of
dollars)
|
Quarter
2016
|
|
Volume
|
|
Realization
|
|
Currency
|
|
Other
|
|
Quarter
2017
|
|
Change
|
|
Change
|
Construction
Industries
|
$
3,589
|
|
$ 1,502
|
|
$
146
|
|
$
21
|
|
$
-
|
|
$
5,258
|
|
$ 1,669
|
|
47
|
%
|
Resource
Industries
|
1,443
|
|
669
|
|
84
|
|
9
|
|
-
|
|
2,205
|
|
762
|
|
53
|
%
|
Energy &
Transportation
|
3,849
|
|
808
|
|
(17)
|
|
66
|
|
-
|
|
4,706
|
|
857
|
|
22
|
%
|
All Other
Segments
|
32
|
|
20
|
|
-
|
|
-
|
|
-
|
|
52
|
|
20
|
|
63
|
%
|
Corporate Items and
Eliminations
|
(28)
|
|
1
|
|
-
|
|
-
|
|
-
|
|
(27)
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery, Energy
& Transportation
|
$
8,885
|
|
$ 3,000
|
|
$
213
|
|
$
96
|
|
$
-
|
|
$
12,194
|
|
$ 3,309
|
|
37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$
742
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$ 41
|
|
$
783
|
|
$
41
|
|
6
|
%
|
Corporate Items and
Eliminations
|
(53)
|
|
-
|
|
-
|
|
-
|
|
(28)
|
|
(81)
|
|
(28)
|
|
|
|
Financial Products
Revenues
|
$
689
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$ 13
|
|
$
702
|
|
$
13
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
9,574
|
|
$ 3,000
|
|
$
213
|
|
$
96
|
|
$ 13
|
|
$
12,896
|
|
$ 3,322
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (Loss) by
Segment
|
|
|
|
|
|
|
|
|
|
Fourth
|
|
Fourth
|
|
$
|
|
%
|
(Millions of
dollars)
|
Quarter
2017
|
|
Quarter
2016
|
|
Change
|
|
Change
|
Construction
Industries
|
$
838
|
|
$
334
|
|
$
504
|
|
151
|
%
|
Resource
Industries
|
209
|
|
(711)
|
|
920
|
|
n/a
|
|
Energy &
Transportation
|
881
|
|
638
|
|
243
|
|
38
|
%
|
All Other
Segments
|
(16)
|
|
(34)
|
|
18
|
|
53
|
%
|
Corporate Items and
Eliminations
|
(821)
|
|
(1,572)
|
|
751
|
|
|
|
Machinery, Energy
& Transportation
|
$
1,091
|
|
$
(1,345)
|
|
$ 2,436
|
|
n/a
|
|
Financial Products
Segment
|
$
233
|
|
$
149
|
|
$
84
|
|
56
|
%
|
Corporate Items and
Eliminations
|
(77)
|
|
(9)
|
|
(68)
|
|
|
|
Financial
Products
|
$
156
|
|
$
140
|
|
$
16
|
|
11
|
%
|
Consolidating
Adjustments
|
(86)
|
|
(57)
|
|
(29)
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Profit (Loss)
|
$
1,161
|
|
$
(1,262)
|
|
$ 2,423
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
CONSTRUCTION
INDUSTRIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2016
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
|
Fourth
Quarter
2017
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales1
|
$3,589
|
|
$1,502
|
|
$146
|
|
$21
|
|
|
$5,258
|
|
$1,669
|
|
47
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2017
|
|
Fourth
Quarter 2016
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
$2,346
|
|
$1,569
|
|
$777
|
|
50
|
%
|
|
|
|
Latin
America
|
392
|
|
264
|
|
128
|
|
48
|
%
|
|
|
|
EAME
|
976
|
|
624
|
|
352
|
|
56
|
%
|
|
|
|
Asia/Pacific
|
1,544
|
|
1,132
|
|
412
|
|
36
|
%
|
|
|
|
Total1
|
$5,258
|
|
$3,589
|
|
$1,669
|
|
47
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
2017
|
|
Fourth
Quarter
2016
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment
Profit
|
$838
|
|
$334
|
|
$504
|
|
151
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Does not
include inter-segment sales of $37 million and $31 million in
fourth quarter 2017 and 2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction Industries' sales were $5.258 billion in the fourth quarter of 2017,
compared with $3.589 billion in the
fourth quarter of 2016. The increase was due to higher sales volume
and favorable price realization.
- Sales volume increased primarily due to higher end-user demand
for construction equipment. In addition, there was a favorable
impact from changes in dealer inventories as inventories decreased
more in the fourth quarter of 2016 than in the fourth quarter of
2017.
- Price realization was favorable due to a weak pricing
environment in the fourth 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 due to higher end-user demand for construction
equipment, mostly due to oil and gas, residential and
non-residential construction activities. The impact of favorable
changes in dealer inventories, as inventories decreased in the
fourth quarter of 2016 and were about flat in the fourth quarter of
2017, also contributed to increased sales.
- 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.
- Sales increased in EAME primarily due to higher end-user demand
for construction equipment, reflecting improved economic conditions
across much of the region. 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 $838
million in the fourth quarter of 2017, compared with
$334 million in the fourth quarter of
2016. The increase in profit was primarily due to higher sales
volume, favorable price realization and variable manufacturing
efficiencies, partially offset by unfavorable period costs and
higher material costs, primarily for steel. The increase in period
costs was due to higher short-term incentive compensation expense,
targeted investments and higher manufacturing period costs to
support increased production volumes.
RESOURCE
INDUSTRIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2016
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
|
Fourth
Quarter 2017
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales1
|
$1,443
|
|
$669
|
|
$84
|
|
$9
|
|
|
$2,205
|
|
$762
|
|
53
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2017
|
|
Fourth
Quarter
2016
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
$791
|
|
$471
|
|
$320
|
|
68
|
%
|
|
|
|
Latin
America
|
384
|
|
221
|
|
163
|
|
74
|
%
|
|
|
|
EAME
|
475
|
|
297
|
|
178
|
|
60
|
%
|
|
|
|
Asia/Pacific
|
555
|
|
454
|
|
101
|
|
22
|
%
|
|
|
|
Total1
|
$2,205
|
|
$1,443
|
|
$762
|
|
53
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
2017
|
|
Fourth
Quarter
2016
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment Profit
(Loss)
|
$209
|
|
($711)
|
|
$920
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Does not
include inter-segment sales of $103 million and $87 million in
fourth quarter 2017 and 2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resource Industries' sales were $2.205
billion in the fourth quarter of 2017, an increase of
$762 million from the fourth quarter
of 2016. The increase was primarily due to higher end-user demand
for equipment and aftermarket parts in all regions, favorable
impact of changes in dealer inventories and favorable price
realization. Dealer deliveries for new equipment increased
significantly. Positive commodity price trends in 2017 drove
improved market conditions and financial health of mining
companies. After several years of low investment, miners began to
increase capital expenditures, reflecting more confidence in their
end markets. Dealer inventories increased slightly in the fourth
quarter of 2017, compared with a slight decrease in the fourth
quarter of 2016.
Resource Industries' profit was $209
million in the fourth quarter of 2017, compared with a loss
of $711 million in the fourth quarter
of 2016. The improvement was primarily due to the absence of a
goodwill impairment charge of $595
million in the fourth quarter of 2016. Higher sales volume
and favorable price realization also contributed to increased
profit.
ENERGY &
TRANSPORTATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
2016
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
|
Fourth
Quarter
2017
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales1
|
$3,849
|
|
$808
|
|
($17)
|
|
$66
|
|
|
$4,706
|
|
$857
|
|
22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
2017
|
|
Fourth
Quarter
2016
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
$2,327
|
|
$1,722
|
|
$605
|
|
35
|
%
|
|
|
|
Latin
America
|
374
|
|
347
|
|
27
|
|
8
|
%
|
|
|
|
EAME
|
1,286
|
|
1,063
|
|
223
|
|
21
|
%
|
|
|
|
Asia/Pacific
|
719
|
|
717
|
|
2
|
|
0
|
%
|
|
|
|
Total1
|
$4,706
|
|
$3,849
|
|
$857
|
|
22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
2017
|
|
Fourth
Quarter
2016
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment
Profit
|
$881
|
|
$638
|
|
$243
|
|
38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Does not
include inter-segment sales of $934 million and $621 million in
fourth quarter 2017 and 2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy & Transportation's sales were $4.706 billion in the fourth quarter of 2017,
compared with $3.849 billion in the
fourth quarter of 2016. The increase was primarily due to higher
sales volume across all applications.
- Oil and Gas – Sales increased primarily due to higher
demand for equipment used in gas compression and well servicing
applications in North
America.
- Transportation – Sales were higher in North America for rail services, driven by
increased rail traffic, and due to additional deliveries of freight
locomotives.
- Industrial – Sales were higher primarily in EAME due to
increased demand for equipment used in electric power and
agricultural end-user applications and aftermarket parts.
- Power Generation – Sales increased in EAME primarily due
to the timing of projects.
Energy & Transportation's profit was $881 million in the fourth quarter of 2017,
compared with $638 million in the
fourth quarter of 2016. The increase was primarily due to higher
sales volume, partially offset by higher period costs. The increase
in period costs was primarily due to higher short-term incentive
compensation expense, costs associated with higher production and
targeted investments.
FINANCIAL PRODUCTS
SEGMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
Revenues by
Geographic Region
|
|
|
|
|
|
|
|
Fourth
Quarter
2017
|
|
Fourth
Quarter
2016
|
|
$
Change
|
|
%
Change
|
North
America
|
$505
|
|
$464
|
|
$41
|
|
9
|
%
|
Latin
America
|
80
|
|
83
|
|
(3)
|
|
(4)
|
%
|
EAME
|
107
|
|
99
|
|
8
|
|
8
|
%
|
Asia/Pacific
|
91
|
|
96
|
|
(5)
|
|
(5)
|
%
|
Total
|
$783
|
|
$742
|
|
$41
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
2017
|
|
Fourth
Quarter
2016
|
|
$
Change
|
|
%
Change
|
Segment
Profit
|
$233
|
|
$149
|
|
$84
|
|
56
|
%
|
|
|
|
|
|
|
|
|
|
|
Financial Products' segment revenues were $783 million in the fourth quarter of 2017, an
increase of $41 million, or 6
percent, from the fourth quarter of 2016. The increase was
primarily due to higher average financing rates in North America, higher average earning
assets in EAME and Asia/Pacific and a favorable impact from
intercompany lending activity in North
America. These favorable impacts were partially offset by
lower average financing rates in Asia/Pacific.
Financial Products' segment profit was $233 million in the fourth quarter of 2017,
compared with $149 million in the
fourth quarter of 2016. The increase was primarily due to higher
gains on sales of securities at Insurance Services and an increase
in net yield on average earning assets.
At the end of 2017, past dues at Cat Financial were 2.78
percent, compared with 2.38 percent at the end of 2016. Write-offs,
net of recoveries, were $114 million
for the full year of 2017, compared with $123 million for the full year of 2016.
As of December 31, 2017, Cat
Financial's allowance for credit losses totaled $365 million, or 1.33 percent of finance
receivables, compared with $343
million, or 1.29 percent of finance receivables at year-end
2016.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $898 million in the fourth quarter of 2017, a
decrease of $683 million from the
fourth 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 was primarily due to the favorable
impact of lower mark-to-market losses related to pension and OPEB
plans and lower restructuring costs, partially offset by
methodology differences and higher short-term incentive
compensation expense. Mark-to-market losses in the fourth quarter
of 2017 were $301 million, compared
to mark-to-market losses of $985
million in the fourth quarter of 2016.
QUESTIONS AND ANSWERS
Q1:
|
Can you provide
more information on the significant items impacting 2017 and 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.
|
|
|
|
•
|
Restructuring
Costs – In recent years, we have incurred substantial
restructuring costs to achieve a flexible and competitive cost
structure. During 2017, we incurred $1.256 billion of restructuring
costs with about half related to the closure of the facility in
Gosselies, Belgium. During 2016, we incurred $1.019 billion of
restructuring costs.
|
|
|
|
|
•
|
Mark-to-Market
Losses – Effective January 1, 2016, we made a change in
accounting principle related to our pension and OPEB plans. Under
this 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 2017, the mark-to-market
adjustment was a net loss of $301 million, primarily due to lower
interest rates and a change in mortality assumptions, partially
offset by better than expected returns on plan assets. For 2016,
the mark-to-market adjustment was a net loss of $985 million,
primarily due to lower interest rates.
|
|
|
|
|
•
|
State Deferred Tax
Valuation Allowance – Based on improved profits in the United
States, we reduced the valuation allowance against U.S. state
deferred tax assets during the fourth quarter of 2017, resulting in
a non-cash benefit of $111 million, net of U.S. federal tax at 35
percent. During the fourth quarter of 2016, the valuation allowance
against U.S. state deferred tax assets was increased, resulting in
a $141 million non-cash charge, net of U.S. federal tax at 35
percent.
|
|
|
|
|
•
|
Goodwill
Impairment Charge – During the fourth quarter of 2016, we
recognized a goodwill impairment charge of $595 million related to
Resource Industries. No goodwill impairment charges were recognized
during 2017.
|
|
|
|
|
•
|
U.S. Tax
Reform – The fourth-quarter 2017 provision for income taxes
includes a charge of $2.371 billion due to the enactment of U.S.
tax reform legislation on December 22, 2017. The provisionally
estimated charge includes a $596 million write-down of net deferred
tax assets to reflect the reduction in the U.S. corporate tax rate
from 35 percent to 21 percent, beginning January 1, 2018, with the
remainder primarily related to the cost of a mandatory deemed
repatriation of non-U.S. earnings. Management believes this charge
is a reasonable estimate, as of January 18, 2018, that may change
as additional required information is prepared and analyzed,
interpretations and assumptions are refined, additional guidance is
issued, and due to actions we may take as a result of the
legislation.
|
|
|
|
To help improve the
understanding of results for the quarter and the year, the
following tables show the impact of these items:
|
|
|
|
Fourth Quarter
2017
|
|
Fourth Quarter
2016
|
|
|
|
Profit Before
Taxes
|
|
|
|
Profit
(Loss)
Before
Taxes
|
|
|
($ in millions except
per share data)
|
|
|
|
Profit
(Loss)
per
Share*
|
|
|
Profit
(Loss)
per
Share*
|
|
|
|
|
|
|
|
|
|
|
Profit
(Loss)
|
|
|
$1,111
|
|
($2.18)
|
|
($1,348)
|
|
($2.00)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
Costs
|
|
|
$245
|
|
$0.31
|
|
$395
|
|
$0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market
Losses
|
|
|
$301
|
|
$0.26
|
|
$985
|
|
$1.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State Deferred Tax
Valuation Allowance
|
|
|
|
($0.18)
|
|
|
|
$0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Tax Reform
Impact
|
|
|
|
|
$3.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill Impairment
Charge
|
|
|
|
|
|
$595
|
|
$0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Profit
|
|
|
$1,657
|
|
$2.16
|
|
$627
|
|
$0.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
2017
|
|
Full Year
2016
|
|
|
|
Profit Before
Taxes
|
|
|
|
Profit
Before
Taxes
|
|
|
($ in millions except
per share data)
|
|
|
|
Profit
per
Share
|
|
|
Profit
(Loss)
per
Share*
|
|
|
|
|
|
|
|
|
|
|
Profit
(Loss)
|
|
|
$4,082
|
|
$1.26
|
|
$139
|
|
($0.11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
Costs
|
|
|
$1,256
|
|
$1.68
|
|
$1,019
|
|
$1.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-Market
Losses
|
|
|
$301
|
|
$0.26
|
|
$985
|
|
$1.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State Deferred Tax
Valuation Allowance
|
|
|
|
($0.18)
|
|
|
|
$0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on Sale of
Equity Investment
|
|
($85)
|
|
($0.09)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Tax Reform
Impact
|
|
|
|
|
$3.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill Impairment
Charge
|
|
|
|
|
|
$595
|
|
$0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Profit
|
|
|
$5,554
|
|
$6.88
|
|
$2,738
|
|
$3.42
|
|
|
|
|
|
|
|
|
|
|
*Per share amounts
computed using fully diluted shares outstanding except for
consolidated loss per share, which was computed using basic shares
outstanding
|
|
|
|
Q2:
|
Will new U.S. GAAP
accounting rules effective in 2018 have an impact on your financial
statements?
|
|
|
A:
|
We will be adopting
several new accounting rules in 2018, including the
following:
|
|
|
|
•
|
Revenue
Recognition – We have completed our evaluation of the new
accounting standard on revenue recognition and do not expect the
impact will be material. We will adopt the standard using the
modified retrospective approach, with no change to prior year
financial statements.
|
|
|
|
|
•
|
Equity
Securities – Our investments in equity securities, primarily
held by Insurance Services, will be measured at fair value through
earnings. Previously, the fair value adjustments for these
securities were reported in equity until the securities were sold
or an impairment was recognized. We will adopt the standard using
the modified retrospective approach, with no change to prior year
financial statements. At December 31, 2017, the fair value of our
equity securities impacted by this accounting change was
approximately $450 million.
|
|
|
|
|
•
|
Pension and OPEB
Costs – Components of pension and OPEB costs, other than
service costs, will be reclassified from operating costs to other
income/expense. This change will be made retroactively to all
periods presented. In 2017, these costs included a net credit of
approximately $275 million related to ongoing costs and a charge of
$301 million for the year-end mark-to-market adjustment.
|
|
|
Q3:
|
Can you discuss
changes in dealer inventories during 2017?
|
|
|
A:
|
Changes in dealer
inventories had a positive impact on sales from the fourth quarter
of 2016 to the fourth quarter of 2017. Dealer machine and engine
inventories were about flat in the fourth quarter of 2017, compared
with a decrease of about $800 million in the fourth quarter of
2016. For the full year of 2017, dealer inventories increased about
$100 million, compared with a decrease of about $1.6 billion for
the full year of 2016.
|
|
|
Q4:
|
Can you discuss
changes to your order backlog by segment?
|
|
|
A:
|
At the end of the
fourth quarter of 2017, the order backlog was about $15.8 billion,
an increase of about $400 million from the end of the third quarter
of 2017. The increase was in Resource Industries, partially offset
by a decline in Energy & Transportation. Construction
Industries' order backlog was about flat.
|
|
|
|
Compared with the
fourth quarter of 2016, the order backlog increased about $3.7
billion. The increase was across all segments, most significantly
in Resource Industries and Construction Industries.
|
|
|
Q5:
|
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.
Fourth-quarter 2017 expense was about $350 million, compared to
fourth-quarter 2016 expense of about $50 million. Full-year 2017
expense was about $1.4 billion, compared to full-year 2016 expense
of about $250 million.
|
|
|
Q6:
|
Full-year 2017
sales and revenues were up 18 percent, and the fourth quarter of
2017 was up 35 percent. Is this significant ramp in demand
impacting availability and how is the company
responding?
|
|
|
A:
|
The sharp increase in
demand in 2017, which followed four years of declining sales, led
to ramp-up challenges for certain products due to supplier
constraints. During 2017, the company worked with our global
suppliers to respond to significant increases in demand. Despite
improvements in material flows in the second half of 2017, parts
and components constraints remain across some products, which could
impact the company's growth potential in 2018 as we continue to
ramp up our global suppliers.
|
|
|
Q7:
|
Can you comment on
your balance sheet and cash priorities?
|
|
|
A:
|
The ME&T
debt-to-capital ratio was 36.7 percent at the end of 2017, compared
with 41.0 percent at the end of 2016. The improvement was primarily
due to lower debt of $1.2 billion, which included the early debt
retirement of about $900 million due in December 2018.
|
|
|
|
Our cash and
liquidity positions remain strong with an enterprise cash balance
of $8.3 billion as of year-end 2017. ME&T operating cash flow
for the full year of 2017 was $5.5 billion, compared with $3.9
billion in 2016. The increase was primarily due to higher profit
offset partially by working capital impacts including increases in
inventory during 2017. During the year, ME&T capital
expenditures totaled $916 million. Funding for defined benefit
pension plans was about $1.4 billion, including a $1.0 billion
discretionary U.S. contribution completed in December
2017.
|
|
|
|
Our priorities for
cash deployment have not changed. While 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 is
focused on the following priorities. Our top priority is to
maintain a strong financial position in support of a Mid-A rating.
Next, we intend to fund operational requirements and commitments.
Then, we intend to fund priorities that profitably grow the company
and return capital to shareholders through dividend growth and
share repurchases.
|
GLOSSARY OF TERMS
1.
|
Adjusted Profit
Per Share – Profit per share excluding restructuring costs and
pension and OPEB mark-to-market losses 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,
as well as state deferred tax valuation allowance reversal and the
impact of the U.S. tax reform in the fourth quarter. For 2016,
adjusted profit per share also excludes a goodwill impairment
charge and state deferred tax valuation allowance recognized in the
fourth 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.
|
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.
|
13.
|
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.
|
14.
|
Mark-to-market
(MTM) gains/losses – Represents the net gain or loss of actual
results differing from our assumptions and the effects of changing
assumptions for our defined benefit pension and OPEB plans. 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.
|
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 and
aggregates, 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, rotary drills,
large wheel loaders, off-highway trucks, articulated trucks, wheel
tractor scrapers, wheel dozers, landfill compactors, soil
compactors, hard rock 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, as well as
global procurement.
|
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 following definitions are provided for the non-GAAP
financial measures used in this report. These non-GAAP financial
measures have no standardized meaning prescribed by U.S. GAAP and
therefore are unlikely to be comparable to the calculation of
similar measures for other companies. Management does not
intend these items to be considered in isolation or as a substitute
for the related GAAP measures.
Adjusted Profit
Caterpillar believes it is important to separately quantify the
profit impact of several significant items in order for the
company's results to be meaningful to 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)
state deferred tax valuation allowance (reversal), (iv) a gain on
the sale of an equity investment, (v) U.S. tax reform impact and
(vi) goodwill impairment charges. Caterpillar does not consider
these items indicative of earnings from ongoing business activities
and believes the non-GAAP measures will provide useful perspective
on underlying business results and trends, and a means to assess
period-over-period results.
Reconciliations of adjusted profit before taxes to the most
directly comparable GAAP measure, consolidated profit (loss) before
taxes, are as follows:
|
|
Fourth
Quarter
|
|
Full
Year
|
(millions of
dollars)
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
Profit (Loss) before
taxes
|
($1,348)
|
|
$1,111
|
|
$139
|
|
$4,082
|
Restructuring
costs
|
$395
|
|
$245
|
|
$1,019
|
|
$1,256
|
Mark-to-market
losses
|
$985
|
|
$301
|
|
$985
|
|
$301
|
Gain on sale of
equity investment
|
-
|
|
-
|
|
-
|
|
($85)
|
Goodwill
impairment
|
$595
|
|
-
|
|
$595
|
|
-
|
Adjusted profit
before taxes
|
$627
|
|
$1,657
|
|
$2,738
|
|
$5,554
|
|
|
|
|
|
|
|
|
|
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
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2018
|
Profit (Loss) per
share
|
($2.00)
|
|
($2.18)
|
|
($0.11)
|
|
$1.26
|
|
$7.75-$8.75
|
Per share
restructuring costs1
|
$0.45
|
|
$0.31
|
|
$1.16
|
|
$1.68
|
|
$0.50
|
Per share
mark-to-market losses2
|
$1.14
|
|
$0.26
|
|
$1.15
|
|
$0.26
|
|
-
|
Per share state
deferred tax valuation allowance (reversal)3
|
$0.24
|
|
($0.18)
|
|
$0.24
|
|
($0.18)
|
|
-
|
Per share gain on
sale of equity investment2
|
-
|
|
-
|
|
-
|
|
($0.09)
|
|
-
|
Per share U.S. tax
reform impact
|
-
|
|
$3.91
|
|
-
|
|
$3.95
|
|
-
|
Per share goodwill
impairment4
|
$0.98
|
|
-
|
|
$0.98
|
|
-
|
|
-
|
Adjusted profit per
share
|
$0.83
|
|
$2.16
|
|
$3.42
|
|
$6.88
|
|
$8.25-$9.25
|
Per share amounts
computed using fully diluted shares outstanding except for
consolidated loss per share, which was computed using basic shares
outstanding.
|
|
|
|
|
|
|
|
|
|
|
|
1At
statutory tax rates. 2016 and 2017 are prior to consideration of
U.S. tax reform. Full year 2017 also includes $15 million
increase to prior year taxes related to non-U.S. restructuring
costs.
|
2 At
statutory tax rates prior to consideration of U.S. tax
reform.
|
3Net of
U.S. federal tax at 35 percent.
|
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 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 21-29 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,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
12,194
|
|
|
|
$
|
8,885
|
|
|
|
$
|
42,676
|
|
|
|
$
|
35,773
|
|
|
|
Revenues of Financial
Products
|
|
702
|
|
|
|
|
689
|
|
|
|
|
2,786
|
|
|
|
|
2,764
|
|
|
|
Total sales and
revenues
|
|
12,896
|
|
|
|
|
9,574
|
|
|
|
|
45,462
|
|
|
|
|
38,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
8,889
|
|
|
|
|
7,541
|
|
|
|
|
31,049
|
|
|
|
|
28,309
|
|
|
|
Selling, general and
administrative expenses
|
|
1,606
|
|
|
|
|
1,483
|
|
|
|
|
5,177
|
|
|
|
|
4,686
|
|
|
|
Research and
development expenses
|
|
579
|
|
|
|
|
522
|
|
|
|
|
1,905
|
|
|
|
|
1,951
|
|
|
|
Interest expense of
Financial Products
|
|
162
|
|
|
|
|
149
|
|
|
|
|
646
|
|
|
|
|
596
|
|
|
|
Goodwill impairment
charge
|
|
—
|
|
|
|
|
595
|
|
|
|
|
—
|
|
|
|
|
595
|
|
|
|
Other operating
(income) expenses
|
|
499
|
|
|
|
|
546
|
|
|
|
|
2,279
|
|
|
|
|
1,902
|
|
|
|
Total operating
costs
|
|
11,735
|
|
|
|
|
10,836
|
|
|
|
|
41,056
|
|
|
|
|
38,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
1,161
|
|
|
|
|
(1,262)
|
|
|
|
|
4,406
|
|
|
|
|
498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
169
|
|
|
|
|
120
|
|
|
|
|
531
|
|
|
|
|
505
|
|
|
|
Other income
(expense)
|
|
119
|
|
|
|
|
34
|
|
|
|
|
207
|
|
|
|
|
146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit (loss) before taxes
|
|
1,111
|
|
|
|
|
(1,348)
|
|
|
|
|
4,082
|
|
|
|
|
139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
2,418
|
|
|
|
|
(180)
|
|
|
|
|
3,339
|
|
|
|
|
192
|
|
|
|
Profit (loss) of
consolidated companies
|
|
(1,307)
|
|
|
|
|
(1,168)
|
|
|
|
|
743
|
|
|
|
|
(53)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
8
|
|
|
|
|
1
|
|
|
|
|
16
|
|
|
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) of
consolidated and affiliated companies
|
|
(1,299)
|
|
|
|
|
(1,167)
|
|
|
|
|
759
|
|
|
|
|
(59)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
—
|
|
|
|
|
4
|
|
|
|
|
5
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
1
|
$
|
(1,299)
|
|
|
|
$
|
(1,171)
|
|
|
|
$
|
754
|
|
|
|
$
|
(67)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) per
common share
|
$
|
(2.18)
|
|
|
|
$
|
(2.00)
|
|
|
|
$
|
1.27
|
|
|
|
$
|
(0.11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) per
common share – diluted 2,3
|
$
|
(2.18)
|
|
|
|
$
|
(2.00)
|
|
|
|
$
|
1.26
|
|
|
|
$
|
(0.11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares
outstanding (millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
596.4
|
|
|
|
|
585.8
|
|
|
|
|
591.8
|
|
|
|
|
584.3
|
|
|
|
- Diluted
2,3
|
|
596.4
|
|
|
|
|
585.8
|
|
|
|
|
599.3
|
|
|
|
|
584.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
|
1.56
|
|
|
|
$
|
1.54
|
|
|
|
$
|
3.11
|
|
|
|
$
|
3.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Profit (loss)
attributable to common shareholders.
|
2
|
Diluted by assumed
exercise of stock-based compensation awards using the treasury
stock method.
|
3
|
In the three months
ended December 31, 2017 and 2016 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,
|
|
2017
|
|
2016
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
$
|
8,261
|
|
|
|
$
|
7,168
|
|
|
|
|
Receivables - trade
and other
|
|
7,436
|
|
|
|
|
5,981
|
|
|
|
|
Receivables -
finance
|
|
8,757
|
|
|
|
|
8,522
|
|
|
|
|
Prepaid expenses and
other current assets
|
|
1,772
|
|
|
|
|
1,682
|
|
|
|
|
Inventories
|
|
10,018
|
|
|
|
|
8,614
|
|
|
|
Total current
assets
|
|
36,244
|
|
|
|
|
31,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment – net
|
|
14,155
|
|
|
|
|
15,322
|
|
|
|
Long-term receivables
- trade and other
|
|
990
|
|
|
|
|
1,029
|
|
|
|
Long-term receivables
- finance
|
|
13,542
|
|
|
|
|
13,556
|
|
|
|
Noncurrent deferred
and refundable income taxes
|
|
1,693
|
|
|
|
|
2,790
|
|
|
|
Intangible
assets
|
|
2,111
|
|
|
|
|
2,349
|
|
|
|
Goodwill
|
|
6,200
|
|
|
|
|
6,020
|
|
|
|
Other
assets
|
|
2,027
|
|
|
|
|
1,671
|
|
|
Total
assets
|
$
|
76,962
|
|
|
|
$
|
74,704
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
$
|
1
|
|
|
|
$
|
209
|
|
|
|
|
|
-- Financial
Products
|
|
4,836
|
|
|
|
|
7,094
|
|
|
|
|
Accounts
payable
|
|
6,487
|
|
|
|
|
4,614
|
|
|
|
|
Accrued
expenses
|
|
3,220
|
|
|
|
|
3,003
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
2,559
|
|
|
|
|
1,296
|
|
|
|
|
Customer
advances
|
|
1,193
|
|
|
|
|
1,167
|
|
|
|
|
Dividends
payable
|
|
466
|
|
|
|
|
452
|
|
|
|
|
Other current
liabilities
|
|
1,975
|
|
|
|
|
1,635
|
|
|
|
|
Long-term debt due
within one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
6
|
|
|
|
|
507
|
|
|
|
|
|
-- Financial
Products
|
|
6,188
|
|
|
|
|
6,155
|
|
|
|
Total current
liabilities
|
|
26,931
|
|
|
|
|
26,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt due
after one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
7,929
|
|
|
|
|
8,436
|
|
|
|
|
|
-- Financial
Products
|
|
15,918
|
|
|
|
|
14,382
|
|
|
|
Liability for
postemployment benefits
|
|
8,365
|
|
|
|
|
9,357
|
|
|
|
Other
liabilities
|
|
4,053
|
|
|
|
|
3,184
|
|
|
Total
liabilities
|
|
63,196
|
|
|
|
|
61,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
5,593
|
|
|
|
|
5,277
|
|
|
|
Treasury
stock
|
|
(17,005)
|
|
|
|
|
(17,478)
|
|
|
|
Profit employed in
the business
|
|
26,301
|
|
|
|
|
27,377
|
|
|
|
Accumulated other
comprehensive income (loss)
|
|
(1,192)
|
|
|
|
|
(2,039)
|
|
|
|
Noncontrolling
interests
|
|
69
|
|
|
|
|
76
|
|
|
Total
shareholders' equity
|
|
13,766
|
|
|
|
|
13,213
|
|
|
Total liabilities
and shareholders' equity
|
$
|
76,962
|
|
|
|
$
|
74,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Caterpillar
Inc.
Condensed
Consolidated Statement of Cash Flow
(Unaudited)
(Millions of
dollars)
|
|
Twelve Months
Ended
|
|
December
31,
|
|
2017
|
|
2016
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) of
consolidated and affiliated companies
|
$
|
759
|
|
|
|
$
|
(59)
|
|
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,877
|
|
|
|
|
3,034
|
|
|
|
|
Actuarial (gain) loss
on pension and postretirement benefits
|
|
301
|
|
|
|
|
985
|
|
|
|
|
Provision (benefit)
for deferred income taxes
|
|
1,213
|
|
|
|
|
(431)
|
|
|
|
|
Goodwill impairment
charge
|
|
—
|
|
|
|
|
595
|
|
|
|
|
Other
|
|
746
|
|
|
|
|
856
|
|
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
Receivables – trade
and other
|
|
(1,151)
|
|
|
|
|
829
|
|
|
|
|
Inventories
|
|
(1,295)
|
|
|
|
|
1,109
|
|
|
|
|
Accounts
payable
|
|
1,478
|
|
|
|
|
(200)
|
|
|
|
|
Accrued
expenses
|
|
175
|
|
|
|
|
(201)
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
1,187
|
|
|
|
|
(708)
|
|
|
|
|
Customer
advances
|
|
(69)
|
|
|
|
|
(37)
|
|
|
|
|
Other assets –
net
|
|
(192)
|
|
|
|
|
224
|
|
|
|
|
Other liabilities –
net
|
|
(327)
|
|
|
|
|
(360)
|
|
|
Net cash provided by
(used for) operating activities
|
|
5,702
|
|
|
|
|
5,636
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
– excluding equipment leased to others
|
|
(898)
|
|
|
|
|
(1,109)
|
|
|
|
Expenditures for
equipment leased to others
|
|
(1,438)
|
|
|
|
|
(1,819)
|
|
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
1,164
|
|
|
|
|
899
|
|
|
|
Additions to finance
receivables
|
|
(11,953)
|
|
|
|
|
(9,339)
|
|
|
|
Collections of
finance receivables
|
|
12,018
|
|
|
|
|
9,369
|
|
|
|
Proceeds from sale of
finance receivables
|
|
127
|
|
|
|
|
127
|
|
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(59)
|
|
|
|
|
(191)
|
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
|
100
|
|
|
|
|
—
|
|
|
|
Proceeds from sale of
securities
|
|
932
|
|
|
|
|
694
|
|
|
|
Investments in
securities
|
|
(1,048)
|
|
|
|
|
(391)
|
|
|
|
Other –
net
|
|
61
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) investing activities
|
|
(994)
|
|
|
|
|
(1,760)
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(1,831)
|
|
|
|
|
(1,799)
|
|
|
|
Common stock issued,
including treasury shares reissued
|
|
566
|
|
|
|
|
(23)
|
|
|
|
Treasury shares
purchased
|
|
—
|
|
|
|
|
—
|
|
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
9,063
|
|
|
|
|
5,115
|
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(8,384)
|
|
|
|
|
(6,565)
|
|
|
|
Short-term borrowings
- net (original maturities three months or less)
|
|
(3,058)
|
|
|
|
|
140
|
|
|
|
Other –
net
|
|
(9)
|
|
|
|
|
(8)
|
|
|
Net cash provided by
(used for) financing activities
|
|
(3,653)
|
|
|
|
|
(3,140)
|
|
|
Effect of exchange
rate changes on cash
|
|
38
|
|
|
|
|
(28)
|
|
|
Increase
(decrease) in cash and short-term investments
|
|
1,093
|
|
|
|
|
708
|
|
|
Cash and short-term
investments at beginning of period
|
|
7,168
|
|
|
|
|
6,460
|
|
|
Cash and short-term
investments at end of period
|
$
|
8,261
|
|
|
|
$
|
7,168
|
|
|
|
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, 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
|
$
|
12,194
|
|
|
|
$
|
12,194
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
|
Revenues of Financial
Products
|
|
702
|
|
|
|
|
—
|
|
|
|
|
804
|
|
|
|
|
(102)
|
|
2
|
|
|
Total sales and
revenues
|
|
12,896
|
|
|
|
|
12,194
|
|
|
|
|
804
|
|
|
|
|
(102)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
8,889
|
|
|
|
|
8,890
|
|
|
|
|
—
|
|
|
|
|
(1)
|
|
3
|
|
|
Selling, general and
administrative expenses
|
|
1,606
|
|
|
|
|
1,444
|
|
|
|
|
166
|
|
|
|
|
(4)
|
|
3
|
|
|
Research and
development expenses
|
|
579
|
|
|
|
|
579
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Interest expense of
Financial Products
|
|
162
|
|
|
|
|
—
|
|
|
|
|
168
|
|
|
|
|
(6)
|
|
4
|
|
|
Other operating
(income) expenses
|
|
499
|
|
|
|
|
190
|
|
|
|
|
314
|
|
|
|
|
(5)
|
|
3
|
|
|
Total operating
costs
|
|
11,735
|
|
|
|
|
11,103
|
|
|
|
|
648
|
|
|
|
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
1,161
|
|
|
|
|
1,091
|
|
|
|
|
156
|
|
|
|
|
(86)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
169
|
|
|
|
|
189
|
|
|
|
|
—
|
|
|
|
|
(20)
|
|
4
|
|
|
Other income
(expense)
|
|
119
|
|
|
|
|
(6)
|
|
|
|
|
59
|
|
|
|
|
66
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
1,111
|
|
|
|
|
896
|
|
|
|
|
215
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
2,418
|
|
|
|
|
2,567
|
|
|
|
|
(149)
|
|
|
|
|
—
|
|
|
|
|
Profit (loss) of
consolidated companies
|
|
(1,307)
|
|
|
|
|
(1,671)
|
|
|
|
|
364
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
8
|
|
|
|
|
8
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
361
|
|
|
|
|
—
|
|
|
|
|
(361)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) of
consolidated and affiliated companies
|
|
(1,299)
|
|
|
|
|
(1,302)
|
|
|
|
|
364
|
|
|
|
|
(361)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
—
|
|
|
|
|
(3)
|
|
|
|
|
3
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
7
|
$
|
(1,299)
|
|
|
|
$
|
(1,299)
|
|
|
|
$
|
361
|
|
|
|
$
|
(361)
|
|
|
|
|
|
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 shareholders.
|
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 shareholders.
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Twelve Months Ended December 31, 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
|
$
|
42,676
|
|
|
|
$
|
42,676
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
Revenues of Financial
Products
|
|
2,786
|
|
|
|
|
—
|
|
|
|
|
3,167
|
|
|
|
|
(381)
|
|
2
|
|
Total sales and
revenues
|
|
45,462
|
|
|
|
|
42,676
|
|
|
|
|
3,167
|
|
|
|
|
(381)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
31,049
|
|
|
|
|
31,050
|
|
|
|
|
—
|
|
|
|
|
(1)
|
|
3
|
|
Selling, general and
administrative expenses
|
|
5,177
|
|
|
|
|
4,589
|
|
|
|
|
604
|
|
|
|
|
(16)
|
|
3
|
|
Research and
development expenses
|
|
1,905
|
|
|
|
|
1,905
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Interest expense of
Financial Products
|
|
646
|
|
|
|
|
—
|
|
|
|
|
667
|
|
|
|
|
(21)
|
|
4
|
|
Other operating
(income) expenses
|
|
2,279
|
|
|
|
|
1,080
|
|
|
|
|
1,220
|
|
|
|
|
(21)
|
|
3
|
|
Total operating
costs
|
|
41,056
|
|
|
|
|
38,624
|
|
|
|
|
2,491
|
|
|
|
|
(59)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
4,406
|
|
|
|
|
4,052
|
|
|
|
|
676
|
|
|
|
|
(322)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
531
|
|
|
|
|
622
|
|
|
|
|
—
|
|
|
|
|
(91)
|
|
4
|
|
Other income
(expense)
|
|
207
|
|
|
|
|
(116)
|
|
|
|
|
92
|
|
|
|
|
231
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
4,082
|
|
|
|
|
3,314
|
|
|
|
|
768
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
3,339
|
|
|
|
|
3,317
|
|
|
|
|
22
|
|
|
|
|
—
|
|
|
|
Profit (loss) of
consolidated companies
|
|
743
|
|
|
|
|
(3)
|
|
|
|
|
746
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
16
|
|
|
|
|
16
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
738
|
|
|
|
|
—
|
|
|
|
|
(738)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
759
|
|
|
|
|
751
|
|
|
|
|
746
|
|
|
|
|
(738)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
5
|
|
|
|
|
(3)
|
|
|
|
|
8
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
754
|
|
|
|
$
|
754
|
|
|
|
$
|
738
|
|
|
|
$
|
(738)
|
|
|
|
|
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 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 shareholders.
|
Caterpillar
Inc.
Supplemental Data
for Cash Flow
For the Twelve
Months Ended December 31, 2017
(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
|
$
|
759
|
|
|
|
$
|
751
|
|
|
|
$
|
746
|
|
|
|
$
|
(738)
|
|
2
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,877
|
|
|
|
|
2,016
|
|
|
|
|
861
|
|
|
|
|
—
|
|
|
|
|
Undistributed profit
of Financial Products
|
|
—
|
|
|
|
|
(13)
|
|
|
|
|
—
|
|
|
|
|
13
|
|
3
|
|
|
Actuarial (gain) loss
on pension and postretirement benefits
|
|
301
|
|
|
|
|
301
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Provision (benefit)
for deferred income taxes
|
|
1,213
|
|
|
|
|
1,500
|
|
|
|
|
(285)
|
|
|
|
|
(2)
|
|
4
|
|
|
Other
|
|
746
|
|
|
|
|
673
|
|
|
|
|
(179)
|
|
|
|
|
252
|
|
4
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables - trade
and other
|
|
(1,151)
|
|
|
|
|
(649)
|
|
|
|
|
90
|
|
|
|
|
(592)
|
|
4,5
|
|
|
Inventories
|
|
(1,295)
|
|
|
|
|
(1,282)
|
|
|
|
|
—
|
|
|
|
|
(13)
|
|
4
|
|
|
Accounts
payable
|
|
1,478
|
|
|
|
|
1,588
|
|
|
|
|
(85)
|
|
|
|
|
(25)
|
|
4
|
|
|
Accrued
expenses
|
|
175
|
|
|
|
|
169
|
|
|
|
|
6
|
|
|
|
|
—
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
1,187
|
|
|
|
|
1,160
|
|
|
|
|
27
|
|
|
|
|
—
|
|
|
|
|
Customer
advances
|
|
(69)
|
|
|
|
|
(69)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Other assets -
net
|
|
(192)
|
|
|
|
|
(186)
|
|
|
|
|
8
|
|
|
|
|
(14)
|
|
4
|
|
|
Other liabilities -
net
|
|
(327)
|
|
|
|
|
(500)
|
|
|
|
|
157
|
|
|
|
|
16
|
|
4
|
Net cash provided by
(used for) operating activities
|
|
5,702
|
|
|
|
|
5,459
|
|
|
|
|
1,346
|
|
|
|
|
(1,103)
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
– excluding equipment leased to others
|
|
(898)
|
|
|
|
|
(889)
|
|
|
|
|
(10)
|
|
|
|
|
1
|
|
4
|
|
Expenditures for
equipment leased to others
|
|
(1,438)
|
|
|
|
|
(27)
|
|
|
|
|
(1,443)
|
|
|
|
|
32
|
|
4
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
1,164
|
|
|
|
|
192
|
|
|
|
|
987
|
|
|
|
|
(15)
|
|
4
|
|
Additions to finance
receivables
|
|
(11,953)
|
|
|
|
|
—
|
|
|
|
|
(13,920)
|
|
|
|
|
1,967
|
|
5
|
|
Collections of
finance receivables
|
|
12,018
|
|
|
|
|
—
|
|
|
|
|
14,357
|
|
|
|
|
(2,339)
|
|
5
|
|
Net intercompany
purchased receivables
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(732)
|
|
|
|
|
732
|
|
5
|
|
Proceeds from sale of
finance receivables
|
|
127
|
|
|
|
|
—
|
|
|
|
|
127
|
|
|
|
|
—
|
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
21
|
|
|
|
|
—
|
|
|
|
|
(21)
|
|
6
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(59)
|
|
|
|
|
(59)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
|
100
|
|
|
|
|
100
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Proceeds from sale of
securities
|
|
932
|
|
|
|
|
79
|
|
|
|
|
853
|
|
|
|
|
—
|
|
|
|
Investments in
securities
|
|
(1,048)
|
|
|
|
|
(198)
|
|
|
|
|
(850)
|
|
|
|
|
—
|
|
|
|
Other –
net
|
|
61
|
|
|
|
|
21
|
|
|
|
|
40
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) investing activities
|
|
(994)
|
|
|
|
|
(760)
|
|
|
|
|
(591)
|
|
|
|
|
357
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(1,831)
|
|
|
|
|
(1,831)
|
|
|
|
|
(725)
|
|
|
|
|
725
|
|
7
|
|
Common stock issued,
including treasury shares reissued
|
|
566
|
|
|
|
|
566
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(21)
|
|
|
|
|
21
|
|
6
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
9,063
|
|
|
|
|
361
|
|
|
|
|
8,702
|
|
|
|
|
—
|
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(8,384)
|
|
|
|
|
(1,465)
|
|
|
|
|
(6,919)
|
|
|
|
|
—
|
|
|
|
Short-term borrowings
- net (original maturities three months or less)
|
|
(3,058)
|
|
|
|
|
(204)
|
|
|
|
|
(2,854)
|
|
|
|
|
—
|
|
|
|
Other –
net
|
|
(9)
|
|
|
|
|
(9)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) financing activities
|
|
(3,653)
|
|
|
|
|
(2,582)
|
|
|
|
|
(1,817)
|
|
|
|
|
746
|
|
|
Effect of exchange
rate changes on cash
|
|
38
|
|
|
|
|
7
|
|
|
|
|
31
|
|
|
|
|
—
|
|
|
Increase
(decrease) in cash and short-term investments
|
|
1,093
|
|
|
|
|
2,124
|
|
|
|
|
(1,031)
|
|
|
|
|
—
|
|
|
Cash and short-term
investments at beginning of period
|
|
7,168
|
|
|
|
|
5,257
|
|
|
|
|
1,911
|
|
|
|
|
—
|
|
|
Cash and short-term
investments at end of period
|
$
|
8,261
|
|
|
|
$
|
7,381
|
|
|
|
$
|
880
|
|
|
|
$
|
—
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
(360)
|
|
|
|
|
(411)
|
|
|
|
|
44
|
|
|
|
|
7
|
|
4
|
Net cash provided by
(used for) operating activities
|
|
5,636
|
|
|
|
|
3,885
|
|
|
|
|
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
|
|
Common stock issued,
including treasury shares reissued
|
|
(23)
|
|
|
|
|
(23)
|
|
|
|
|
7
|
|
|
|
|
(7)
|
|
8
|
|
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)
|
|
|
|
|
—
|
|
|
|
Other –
net
|
|
(8)
|
|
|
|
|
(8)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) financing activities
|
|
(3,140)
|
|
|
|
|
(2,157)
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Caterpillar Inc.