DEERFIELD, Ill., Jan. 28, 2019 /PRNewswire/ --
- Fourth-quarter sales and revenues up 11 percent; full-year
sales and revenues up 20 percent
- Strong financial position; ended 2018 with $7.9 billion of enterprise cash
- Repurchased $1.8 billion in
company stock in the fourth quarter and $3.8
billion for the full year
- 2019 profit per share expected to increase; outlook range of
$11.75 to $12.75
|
|
Fourth
Quarter
|
|
Full
Year
|
($ in billions except
profit per share)
|
|
2018
|
2017
|
|
2018
|
2017
|
Sales and
Revenues
|
|
$14.3
|
$12.9
|
|
$54.7
|
$45.5
|
Profit (Loss) Per
Share
|
|
$1.78
|
($2.18)
|
|
$10.26
|
$1.26
|
Adjusted Profit
Per Share
|
|
$2.55
|
$2.16
|
|
$11.22
|
$6.88
|
Caterpillar Inc. (NYSE: CAT) today announced fourth-quarter and
full-year results for 2018.
Sales and revenues in the fourth quarter of 2018 were
$14.3 billion, compared with
$12.9 billion in the fourth quarter
of 2017, an 11 percent increase. Fourth-quarter 2018 profit was
$1.78 per share, compared with a loss
of $2.18 per share in the fourth
quarter of 2017. Adjusted profit per share in the fourth quarter of
2018 was $2.55, compared with
fourth-quarter 2017 adjusted profit per share of $2.16, up 18 percent.
Full-year sales and revenues in 2018 were $54.7 billion, up 20 percent from $45.5 billion in 2017. Full-year profit was
$10.26 per share in 2018, compared
with profit of $1.26 per share in
2017. Adjusted profit per share in 2018 was $11.22, up 63 percent compared with 2017 adjusted
profit per share of $6.88.
Adjusted profit per share excludes several adjustments
consisting of restructuring costs, mark-to-market losses for
remeasurement of pension and other postemployment benefit (OPEB)
plans, certain deferred tax valuation allowance adjustments, the
impact of U.S. tax reform and a gain on sale of an equity
investment in 2017.
Fourth-quarter 2018 Machinery, Energy & Transportation
(ME&T) operating cash flow was $2.5
billion. In the fourth quarter of 2018, the company
repurchased $1.8 billion of
Caterpillar common stock and paid dividends of $507 million.
For the full year of 2018, ME&T operating cash flow was
$6.3 billion. During the year the
company deployed significant capital, including the repurchase of
$3.8 billion of Caterpillar common
stock, dividend payments of $2.0
billion and a discretionary pension contribution of
$1.0 billion. After returning
$5.8 billion of capital to
shareholders, the enterprise cash balance was $7.9 billion at the end of 2018, compared with
$8.3 billion at the end of 2017.
"In 2018, Caterpillar achieved record profit per share and
returned significant levels of capital to shareholders," said
Caterpillar Chairman and CEO Jim
Umpleby. "Our global team remained focused on serving our
customers, executing our strategy and investing for future
profitable growth."
2019 Outlook
Following a record year for profit per share, Caterpillar
expects 2019 profit to increase to a range of $11.75 to $12.75
per share.
"Our outlook assumes a modest sales increase based on the
fundamentals of our diverse end markets as well as the
macroeconomic and geopolitical environment. We will continue to
focus on operational excellence, including cost discipline, while
investing in expanded offerings and services to drive long-term
profitable growth," added Umpleby.
Beginning in 2019, the company does not plan to exclude
restructuring costs from adjusted profit per share as these costs
are expected to return to normalized levels. The outlook does not
include a mark-to-market gain or loss for remeasurement of pension
and OPEB plans or any changes to estimates related to U.S. tax
reform due to interpretations released in 2019.
Notes:
- Glossary of terms is included on pages 14-16.
- Information on non-GAAP financial measures is included on
page 17.
- Caterpillar will conduct a teleconference and live webcast,
with a slide presentation, beginning at 10
a.m. Central Time on Monday, January 28, 2019, to discuss
its 2018 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 2018 sales and revenues of $54.722 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) international trade policies and their impact on demand for our
products and our competitive position, including the imposition of
new tariffs or changes in existing tariff rates; (vi) our ability
to develop, produce and market quality products that meet our
customers' needs; (vii) the impact of the highly competitive
environment in which we operate on our sales and pricing; (viii)
information technology security threats and computer crime; (ix)
additional restructuring costs or a failure to realize anticipated
savings or benefits from past or future cost reduction actions; (x)
failure to realize all of the anticipated benefits from initiatives
to increase our productivity, efficiency and cash flow and to
reduce costs; (xi) inventory management decisions and sourcing
practices of our dealers and our OEM customers; (xii) a failure to
realize, or a delay in realizing, all of the anticipated benefits
of our acquisitions, joint ventures or divestitures; (xiii) union
disputes or other employee relations issues; (xiv) adverse effects
of unexpected events including natural disasters; (xv) disruptions
or volatility in global financial markets limiting our sources of
liquidity or the liquidity of our customers, dealers and suppliers;
(xvi) 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; (xvii) our Financial Products segment's risks
associated with the financial services industry; (xviii) changes in
interest rates or market liquidity conditions; (xix) an increase in
delinquencies, repossessions or net losses of Cat Financial's
customers; (xx) currency fluctuations; (xxi) our or Cat Financial's
compliance with financial and other restrictive covenants in debt
agreements; (xxii) increased pension plan funding obligations;
(xxiii) alleged or actual violations of trade or anti-corruption
laws and regulations; (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 2018 vs. Fourth
Quarter 2017
To access this chart, go to
http://www.caterpillar.com/en/investors/quarterly-results.html
for the downloadable version of Caterpillar
fourth-quarter and full-year 2018
earnings.
The chart above graphically illustrates reasons for the change
in Consolidated Sales and Revenues between the fourth quarter of
2017 (at left) and the fourth quarter of 2018 (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.
Total sales and revenues were $14.342
billion in the fourth quarter of 2018, an increase of
$1.446 billion, or 11 percent,
compared with $12.896 billion in the
fourth quarter of 2017. The increase was due to higher sales volume
driven by improved demand across all regions and in the three
primary segments. Favorable price realization, primarily in
Construction Industries, also contributed to the sales improvement.
The increase was partially offset by unfavorable currency impacts
due to a stronger U.S. dollar.
Sales and Revenues
by Segment
|
(Millions of
dollars)
|
Fourth
Quarter
2017
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment /
Other
|
|
Fourth
Quarter
2018
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries
|
$
|
5,295
|
|
|
$
|
382
|
|
|
$
|
111
|
|
|
$
|
(85)
|
|
|
$
|
2
|
|
|
$
|
5,705
|
|
|
$
|
410
|
|
|
8%
|
Resource
Industries
|
2,308
|
|
|
504
|
|
|
34
|
|
|
(32)
|
|
|
(17)
|
|
|
2,797
|
|
|
489
|
|
|
21%
|
Energy &
Transportation
|
5,640
|
|
|
599
|
|
|
33
|
|
|
(73)
|
|
|
88
|
|
|
6,287
|
|
|
647
|
|
|
11%
|
All Other
Segments
|
155
|
|
|
(13)
|
|
|
—
|
|
|
—
|
|
|
(13)
|
|
|
129
|
|
|
(26)
|
|
|
(17%)
|
Corporate Items and
Eliminations
|
(1,204)
|
|
|
(25)
|
|
|
1
|
|
|
—
|
|
|
(60)
|
|
|
(1,288)
|
|
|
(84)
|
|
|
|
Machinery, Energy
& Transportation
|
$
|
12,194
|
|
|
$
|
1,447
|
|
|
$
|
179
|
|
|
$
|
(190)
|
|
|
$
|
—
|
|
|
$
|
13,630
|
|
|
$
|
1,436
|
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$
|
783
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
29
|
|
|
$
|
812
|
|
|
$
|
29
|
|
|
4%
|
Corporate Items and
Eliminations
|
(81)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19)
|
|
|
(100)
|
|
|
(19)
|
|
|
|
Financial Products
Revenues
|
$
|
702
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
712
|
|
|
$
|
10
|
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
|
12,896
|
|
|
$
|
1,447
|
|
|
$
|
179
|
|
|
$
|
(190)
|
|
|
$
|
10
|
|
|
$
|
14,342
|
|
|
$
|
1,446
|
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Revenues
by Geographic Region
|
|
North
America
|
|
Latin
America
|
|
EAME
|
|
Asia/Pacific
|
|
External Sales
and Revenues
|
|
Inter-Segment
|
|
Total Sales
and Revenues
|
(Millions of
dollars)
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
|
$
|
|
%
Chg
|
Fourth Quarter
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries
|
$
|
2,749
|
|
|
17%
|
|
$
|
374
|
|
|
(5%)
|
|
$
|
1,063
|
|
|
9%
|
|
$
|
1,480
|
|
|
(4%)
|
|
$
|
5,666
|
|
|
8%
|
|
$
|
39
|
|
|
5%
|
|
$
|
5,705
|
|
|
8%
|
Resource
Industries
|
906
|
|
|
15%
|
|
466
|
|
|
21%
|
|
554
|
|
|
17%
|
|
785
|
|
|
41%
|
|
2,711
|
|
|
23%
|
|
86
|
|
|
(17%)
|
|
2,797
|
|
|
21%
|
Energy &
Transportation
|
2,569
|
|
|
10%
|
|
434
|
|
|
16%
|
|
1,509
|
|
|
17%
|
|
753
|
|
|
5%
|
|
5,265
|
|
|
12%
|
|
1,022
|
|
|
9%
|
|
6,287
|
|
|
11%
|
All Other
Segments
|
16
|
|
|
(27%)
|
|
2
|
|
|
100%
|
|
6
|
|
|
(57%)
|
|
15
|
|
|
—%
|
|
39
|
|
|
(25%)
|
|
90
|
|
|
(13%)
|
|
129
|
|
|
(17%)
|
Corporate Items and
Eliminations
|
(47)
|
|
|
|
|
1
|
|
|
|
|
(3)
|
|
|
|
|
(2)
|
|
|
|
|
(51)
|
|
|
|
|
(1,237)
|
|
|
|
|
(1,288)
|
|
|
|
Machinery, Energy
& Transportation
|
6,193
|
|
|
13%
|
|
1,277
|
|
|
11%
|
|
3,129
|
|
|
14%
|
|
3,031
|
|
|
7%
|
|
13,630
|
|
|
12%
|
|
—
|
|
|
—%
|
|
13,630
|
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
545
|
|
|
8%
|
|
68
|
|
|
(15%)
|
|
84
|
|
|
(21%)
|
|
115
|
|
|
26%
|
|
812
|
|
|
4%
|
|
—
|
|
|
—%
|
|
812
|
|
|
4%
|
Corporate Items and
Eliminations
|
(66)
|
|
|
|
|
(10)
|
|
|
|
|
(8)
|
|
|
|
|
(16)
|
|
|
|
|
(100)
|
|
|
|
|
—
|
|
|
|
|
(100)
|
|
|
|
Financial Products
Revenues
|
479
|
|
|
5%
|
|
58
|
|
|
(15%)
|
|
76
|
|
|
(25%)
|
|
99
|
|
|
27%
|
|
712
|
|
|
1%
|
|
—
|
|
|
—%
|
|
712
|
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
|
6,672
|
|
|
13%
|
|
$
|
1,335
|
|
|
10%
|
|
$
|
3,205
|
|
|
12%
|
|
$
|
3,130
|
|
|
8%
|
|
$
|
14,342
|
|
|
11%
|
|
$
|
—
|
|
|
—%
|
|
$
|
14,342
|
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries
|
$
|
2,346
|
|
|
|
|
$
|
392
|
|
|
|
|
$
|
976
|
|
|
|
|
$
|
1,544
|
|
|
|
|
$
|
5,258
|
|
|
|
|
$
|
37
|
|
|
|
|
$
|
5,295
|
|
|
|
Resource
Industries
|
791
|
|
|
|
|
384
|
|
|
|
|
475
|
|
|
|
|
555
|
|
|
|
|
2,205
|
|
|
|
|
103
|
|
|
|
|
2,308
|
|
|
|
Energy &
Transportation
|
2,327
|
|
|
|
|
374
|
|
|
|
|
1,286
|
|
|
|
|
719
|
|
|
|
|
4,706
|
|
|
|
|
934
|
|
|
|
|
5,640
|
|
|
|
All Other
Segments
|
22
|
|
|
|
|
1
|
|
|
|
|
14
|
|
|
|
|
15
|
|
|
|
|
52
|
|
|
|
|
103
|
|
|
|
|
155
|
|
|
|
Corporate Items and
Eliminations
|
(27)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(27)
|
|
|
|
|
(1,177)
|
|
|
|
|
(1,204)
|
|
|
|
Machinery, Energy
& Transportation
|
5,459
|
|
|
|
|
1,151
|
|
|
|
|
2,751
|
|
|
|
|
2,833
|
|
|
|
|
12,194
|
|
|
|
|
—
|
|
|
|
|
12,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
505
|
|
|
|
|
80
|
|
|
|
|
107
|
|
|
|
|
91
|
|
|
|
|
783
|
|
|
|
|
—
|
|
|
|
|
783
|
|
|
|
Corporate Items and
Eliminations
|
(50)
|
|
|
|
|
(12)
|
|
|
|
|
(6)
|
|
|
|
|
(13)
|
|
|
|
|
(81)
|
|
|
|
|
—
|
|
|
|
|
(81)
|
|
|
|
Financial Products
Revenues
|
455
|
|
|
|
|
68
|
|
|
|
|
101
|
|
|
|
|
78
|
|
|
|
|
702
|
|
|
|
|
—
|
|
|
|
|
702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
|
5,914
|
|
|
|
|
$
|
1,219
|
|
|
|
|
$
|
2,852
|
|
|
|
|
$
|
2,911
|
|
|
|
|
$
|
12,896
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
12,896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Operating Profit
Consolidated Operating Profit
Comparison
Fourth Quarter 2018 vs. Fourth
Quarter 2017
To access this chart, go to
http://www.caterpillar.com/en/investors/quarterly-results.html
for the downloadable version of Caterpillar
fourth-quarter and full-year 2018
earnings.
The chart above graphically illustrates reasons for the change
in Consolidated Operating Profit between the fourth quarter of 2017
(at left) and the fourth quarter of 2018 (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 2018 was $1.883 billion, compared with $1.387 billion in the fourth quarter of 2017. The
increase of $496 million was mostly
due to higher sales volume. Favorable price realization and lower
restructuring costs were mostly offset by higher manufacturing
costs and lower profit from Financial Products.
Financial Products' operating profit was lower primarily due to
an increase in the provision for credit losses, which was mostly
driven by a $72 million unfavorable
impact from an increase in allowance rate and an increase in
write-offs of $13 million, due to
continued weakening in the Cat Power Finance portfolio. This was
partially offset by higher average earning assets.
Operating profit margin for the fourth quarter of 2018 was 13.1
percent, compared with 10.8 percent in the fourth quarter of
2017.
Profit (Loss) by
Segment
|
(Millions of
dollars)
|
Fourth Quarter
2018
|
|
Fourth Quarter
2017
|
|
$
Change
|
|
%
Change
|
Construction
Industries
|
$
|
845
|
|
|
$
|
837
|
|
|
$
|
8
|
|
|
1%
|
|
Resource
Industries
|
400
|
|
|
210
|
|
|
190
|
|
|
90%
|
|
Energy &
Transportation
|
1,079
|
|
|
874
|
|
|
205
|
|
|
23%
|
|
All Other
Segments
|
(47)
|
|
|
(16)
|
|
|
(31)
|
|
|
(194%)
|
|
Corporate Items and
Eliminations
|
(375)
|
|
|
(588)
|
|
|
213
|
|
|
|
Machinery, Energy
& Transportation
|
$
|
1,902
|
|
|
$
|
1,317
|
|
|
$
|
585
|
|
|
44%
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
$
|
29
|
|
|
$
|
233
|
|
|
$
|
(204)
|
|
|
(88%)
|
|
Corporate Items and
Eliminations
|
54
|
|
|
(77)
|
|
|
131
|
|
|
|
Financial
Products
|
$
|
83
|
|
|
$
|
156
|
|
|
$
|
(73)
|
|
|
(47%)
|
|
|
|
|
|
|
|
|
|
Consolidating
Adjustments
|
(102)
|
|
|
(86)
|
|
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Profit
|
$
|
1,883
|
|
|
$
|
1,387
|
|
|
$
|
496
|
|
|
36%
|
|
|
|
|
|
|
|
|
|
Other Profit/Loss Items
- Interest expense excluding Financial Products in
the fourth quarter of 2018 was $99
million, a decrease of $70
million primarily due to an early debt retirement in the
fourth quarter of 2017.
- Other income/expense in the fourth quarter of 2018
was a loss of $417 million, compared
with a loss of $107 million in the
fourth quarter of 2017. The unfavorable change was primarily a
result of an increase in mark-to-market losses related to pension
and OPEB plans and an unfavorable impact from equity
securities.
- The provision for income taxes in the fourth quarter
reflected an annual effective tax rate of approximately 24 percent,
compared with approximately 28 percent for the full year of 2017,
excluding the items discussed below. The decrease was primarily due
to the reduction in the U.S. corporate tax rate beginning
January 1, 2018, along with other
changes in the geographic mix of profits from a tax
perspective.
The provision for income taxes also included the following:
-
- Non-cash benefits of $63 million
and $111 million in the fourth
quarter of 2018 and 2017, respectively, from reductions in the
valuation allowance against U.S. state deferred tax assets due to
improved profits in the United
States.
- A $50 million increase in the
fourth quarter of 2018 related to the $2.371
billion charge recorded in the fourth quarter of 2017 due to
the enactment of U.S. tax reform legislation.
- A tax benefit of $4 million in
the fourth quarter of 2018, compared with $19 million in the fourth quarter of 2017, for
the settlement of stock-based compensation awards with associated
tax deductions in excess of cumulative U.S. GAAP compensation
expense.
- A $130 million benefit in the
fourth quarter of 2017 related to the change from the third-quarter
estimated annual tax rate.
Global Workforce
The global workforce increased about 7,300 during 2018,
primarily due to higher production volumes.
|
December
31
|
|
2018
|
|
2017
|
|
Increase
|
Full-time
employment
|
104,000
|
|
|
98,400
|
|
|
5,600
|
|
Flexible
workforce
|
20,000
|
|
|
18,300
|
|
|
1,700
|
|
Total
|
124,000
|
|
|
116,700
|
|
|
7,300
|
|
|
|
|
|
|
|
Geographic
summary
|
|
|
|
|
|
U.S.
workforce
|
53,700
|
|
|
50,500
|
|
|
3,200
|
|
Non-U.S.
workforce
|
70,300
|
|
|
66,200
|
|
|
4,100
|
|
Total
|
124,000
|
|
|
116,700
|
|
|
7,300
|
|
CONSTRUCTION
INDUSTRIES
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
2017
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-Segment
|
|
Fourth Quarter
2018
|
|
$
Change
|
|
%
Change
|
Total
Sales
|
$
|
5,295
|
|
|
$
|
382
|
|
|
$
|
111
|
|
|
$
|
(85)
|
|
|
$
|
2
|
|
|
$
|
5,705
|
|
|
$
|
410
|
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
2018
|
|
Fourth Quarter
2017
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
$
|
2,749
|
|
|
$
|
2,346
|
|
|
$
|
403
|
|
|
17%
|
|
|
|
|
|
|
|
|
|
Latin
America
|
374
|
|
|
392
|
|
|
(18)
|
|
|
(5%)
|
|
|
|
|
|
|
|
|
|
EAME
|
1,063
|
|
|
976
|
|
|
87
|
|
|
9%
|
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
1,480
|
|
|
1,544
|
|
|
(64)
|
|
|
(4%)
|
|
|
|
|
|
|
|
|
|
External
Sales
|
5,666
|
|
|
5,258
|
|
|
408
|
|
|
8%
|
|
|
|
|
|
|
|
|
|
Inter-segment
|
39
|
|
|
37
|
|
|
2
|
|
|
5%
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
$
|
5,705
|
|
|
$
|
5,295
|
|
|
$
|
410
|
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
2018
|
|
Fourth Quarter
2017
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment
Profit
|
$
|
845
|
|
|
$
|
837
|
|
|
$
|
8
|
|
|
1%
|
|
|
|
|
|
|
|
|
|
Segment Profit
Margin
|
14.8%
|
|
|
15.8%
|
|
|
(1.0pts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction Industries' total sales were $5.705 billion in the fourth quarter of 2018,
compared with $5.295 billion in the
fourth quarter of 2017. The increase was mostly due to higher sales
volume for construction equipment. Favorable price realization was
mostly offset by unfavorable currency impacts due to a stronger
U.S. dollar.
- In North America, the sales
increase was driven by higher demand for new equipment, with about
half due to an increase in dealer inventories. The increase in
demand was primarily to support oil and gas activities, including
pipelines, and non-residential building construction activities.
Favorable price realization also contributed to the sales
improvement.
- Construction activities remained at low levels in Latin America.
- Sales increased in EAME as infrastructure, road and
non-residential building construction activities drove higher
demand in Europe, partially offset
by weakness in the Middle
East.
- Sales in Asia/Pacific declined
due to lower demand in China,
partially offset by higher demand in a few other countries in the
region. Unfavorable currency impacts also contributed to the sales
decline.
Construction Industries' profit was $845
million in the fourth quarter of 2018, compared with
$837 million in the fourth quarter of
2017. The increase in profit was a result of favorable price
realization and higher sales volume, mostly offset by higher
manufacturing costs, including material, labor and freight costs.
RESOURCE
INDUSTRIES
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2017
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment
|
|
Fourth
Quarter 2018
|
|
$
Change
|
|
%
Change
|
Total
Sales
|
$
|
2,308
|
|
|
$
|
504
|
|
|
$
|
34
|
|
|
$
|
(32)
|
|
|
$
|
(17)
|
|
|
$
|
2,797
|
|
|
$
|
489
|
|
|
21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2018
|
|
Fourth
Quarter 2017
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
$
|
906
|
|
|
$
|
791
|
|
|
$
|
115
|
|
|
15%
|
|
|
|
|
|
|
|
|
|
Latin
America
|
466
|
|
|
384
|
|
|
82
|
|
|
21%
|
|
|
|
|
|
|
|
|
|
EAME
|
554
|
|
|
475
|
|
|
79
|
|
|
17%
|
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
785
|
|
|
555
|
|
|
230
|
|
|
41%
|
|
|
|
|
|
|
|
|
|
External
Sales
|
2,711
|
|
|
2,205
|
|
|
506
|
|
|
23%
|
|
|
|
|
|
|
|
|
|
Inter-segment
|
86
|
|
|
103
|
|
|
(17)
|
|
|
(17%)
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
$
|
2,797
|
|
|
$
|
2,308
|
|
|
$
|
489
|
|
|
21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2018
|
|
Fourth
Quarter 2017
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment
Profit
|
$
|
400
|
|
|
$
|
210
|
|
|
$
|
190
|
|
|
90%
|
|
|
|
|
|
|
|
|
|
Segment Profit
Margin
|
14.3%
|
|
|
9.1%
|
|
|
5.2pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resource Industries' total sales were $2.797 billion in the fourth quarter of 2018, an
increase of $489 million from the
fourth quarter of 2017. The increase was primarily due to higher
demand for both mining and heavy construction equipment, including
quarry and aggregate. Mining activities were robust as commodity
market fundamentals remained positive, and increased
non-residential construction activities drove higher sales.
Resource Industries' profit was $400
million in the fourth quarter of 2018, compared with
$210 million in the fourth quarter of
2017. The improvement was mostly due to higher sales volume and
favorable price realization, partially offset by higher material
and freight costs.
ENERGY &
TRANSPORTATION
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2017
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment
|
|
Fourth
Quarter 2018
|
|
$
Change
|
|
%
Change
|
Total
Sales
|
$
|
5,640
|
|
|
$
|
599
|
|
|
$
|
33
|
|
|
$
|
(73)
|
|
|
$
|
88
|
|
|
$
|
6,287
|
|
|
$
|
647
|
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Application
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2018
|
|
Fourth
Quarter 2017
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Oil and
Gas
|
$
|
1,719
|
|
|
$
|
1,497
|
|
|
$
|
222
|
|
|
15%
|
|
|
|
|
|
|
|
|
|
Power
Generation
|
1,271
|
|
|
1,060
|
|
|
211
|
|
|
20%
|
|
|
|
|
|
|
|
|
|
Industrial
|
902
|
|
|
899
|
|
|
3
|
|
|
—%
|
|
|
|
|
|
|
|
|
|
Transportation
|
1,373
|
|
|
1,250
|
|
|
123
|
|
|
10%
|
|
|
|
|
|
|
|
|
|
External
Sales
|
5,265
|
|
|
4,706
|
|
|
559
|
|
|
12%
|
|
|
|
|
|
|
|
|
|
Inter-segment
|
1,022
|
|
|
934
|
|
|
88
|
|
|
9%
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
$
|
6,287
|
|
|
$
|
5,640
|
|
|
$
|
647
|
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter 2018
|
|
Fourth
Quarter 2017
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment
Profit
|
$
|
1,079
|
|
|
$
|
874
|
|
|
$
|
205
|
|
|
23%
|
|
|
|
|
|
|
|
|
|
Segment Profit
Margin
|
17.2%
|
|
|
15.5%
|
|
|
1.7pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy & Transportation's total sales were $6.287 billion in the fourth quarter of 2018,
compared with $5.640 billion in the
fourth quarter of 2017. The increase was primarily due to higher
sales volume across all applications except Industrial, which was
flat.
- Oil and Gas – Sales increased due to higher demand
for reciprocating engines in North
America for gas compression and well servicing applications.
Sales of turbines and turbine-related services were about
flat.
- Power Generation – Sales improved across all regions,
with the largest increases in North
America and EAME primarily for reciprocating engine
applications, including data centers and other large power
generation projects.
- Industrial – Sales were flat, with increases in
Asia/Pacific and North America about offset by lower sales in
EAME and Latin America.
- Transportation – Sales were higher primarily due to
rail services, driven by acquisitions.
Energy & Transportation's profit was $1.079 billion in the fourth quarter of 2018,
compared with $874 million in the
fourth quarter of 2017. The improvement was mostly due to higher
sales volume. The increase was partially offset by higher
manufacturing costs, including freight costs.
FINANCIAL PRODUCTS
SEGMENT
|
(Millions of
dollars)
|
Revenues by
Geographic Region
|
|
Fourth
Quarter 2018
|
|
Fourth
Quarter 2017
|
|
$
Change
|
|
%
Change
|
North
America
|
$
|
545
|
|
|
$
|
505
|
|
|
$
|
40
|
|
|
8%
|
|
Latin
America
|
68
|
|
|
80
|
|
|
(12)
|
|
|
(15%)
|
|
EAME
|
84
|
|
|
107
|
|
|
(23)
|
|
|
(21%)
|
|
Asia/Pacific
|
115
|
|
|
91
|
|
|
24
|
|
|
26%
|
|
Total
|
$
|
812
|
|
|
$
|
783
|
|
|
$
|
29
|
|
|
4%
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
Fourth
Quarter 2018
|
|
Fourth
Quarter 2017
|
|
Change
|
|
%
Change
|
Segment
Profit
|
$
|
29
|
|
|
$
|
233
|
|
|
$
|
(204)
|
|
|
(88%)
|
|
|
|
|
|
|
|
|
|
Financial Products' segment revenues were $812 million in the fourth quarter of 2018, an
increase of $29 million, or 4
percent, from the fourth quarter of 2017. The increase was
primarily due to higher average financing rates and higher average
earning assets in North America
and Asia/Pacific. These favorable
impacts were partially offset by an unfavorable impact from
returned or repossessed equipment in Europe and Latin
America.
Financial Products' segment profit was $29 million in the fourth quarter of 2018,
compared with $233 million in the
fourth quarter of 2017. About half of the decrease was due to an
unfavorable impact from equity securities in Insurance Services,
which was driven by the absence of investment gains from the fourth
quarter of 2017 and an unfavorable impact from mark-to-market in
the fourth quarter of 2018. In addition, an increase in the
provision for credit losses at Cat Financial also contributed to
lower profit. This increase was driven by a higher allowance rate
and an increase in write-offs, due to continued weakening in the
Cat Power Finance portfolio.
At the end of 2018, past dues at Cat Financial were 3.55
percent, compared with 2.78 percent at the end of 2017. Write-offs, net of recoveries,
were $189 million for 2018, compared
with $114 million for 2017. As of
December 31, 2018, Cat Financial's
allowance for credit losses totaled $511
million, or 1.80 percent of finance receivables, compared
with $365 million, or 1.33 percent of
finance receivables at December 31,
2017. The increase in past dues, write-offs and allowance
for credit losses was primarily due to continued weakening in the
Cat Power Finance portfolio.
During the fourth quarter of 2018, retail new business volume
was $3.10 billion, a decrease of
$313 million, or 9 percent, from the
fourth quarter of 2017. The decrease was primarily driven by lower
volume in Cat Power Finance.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $321 million in the fourth quarter of 2018, a
decrease of $344 million from the
fourth quarter of 2017, primarily due to methodology differences
and lower restructuring costs. Restructuring costs were
$101 million in the fourth quarter of
2018, compared with $245 million in
the fourth quarter of 2017.
QUESTIONS AND ANSWERS
Q1:
|
Can you provide
more information on the reconciliation of significant items
impacting 2018 and 2017 adjusted 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 2018, we incurred $386 million of restructuring
costs. During 2017, we incurred $1.256 billion of restructuring
costs, with about half related to the closure of the facility in
Gosselies, Belgium.
|
|
|
|
|
•
|
Mark-to-Market
Losses – We recognize actuarial gains and losses for our
pension and OPEB plans as a mark-to-market gain or loss when
incurred rather than amortizing them to earnings over time. For
2018, the mark-to-market adjustment was a net loss of $495 million,
primarily due to lower than expected returns on plan assets,
partially offset by higher interest rates. 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.
|
|
|
|
|
•
|
Deferred Tax
Valuation Allowance Adjustments – Based on improved profits in
the United States, we recognized a non-cash benefit of $63 million
and $111 million during the fourth quarter of 2018 and 2017,
respectively, to reduce the valuation allowance against U.S. state
deferred tax assets. During the third quarter of 2018, we
recognized a non-cash charge of $59 million to increase the
valuation allowance against deferred tax assets for prior
years.
|
|
|
|
|
•
|
U.S. Tax
Reform – During the fourth quarter of 2017, we recognized a
$2.371 billion charge due to the enactment of U.S. tax reform
legislation in December 2017. The provisionally estimated charge
included 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. During the third quarter of
2018, we recognized a $154 million reduction to the estimated
charge for the write-down in net deferred tax assets. This
reduction was primarily related to the decision to make an
additional discretionary pension contribution of $1.0 billion to
U.S. pension plans, treated as deductible on the 2017 U.S. tax
return. During the fourth quarter of 2018, we recognized a $50
million increase to the estimated charge for the cost of mandatory
deemed repatriation of non-U.S. earnings.
|
|
|
|
|
A reconciliation of
these items can be found in the Non-GAAP Financial Measures section
on page 17.
|
|
|
Q2:
|
Can you discuss
the unfavorable impact from equity securities during the fourth
quarter of 2018?
|
|
|
A:
|
Effective January 1,
2018, we adopted a new U.S. GAAP accounting rule that requires our
equity securities, primarily held by Insurance Services, to 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 adopted
the standard using the modified retrospective approach, with no
change to prior year financial statements. During the fourth
quarter of 2018, we recognized a loss of $44 million related to
fair value adjustments. During the fourth quarter of 2017, we
recognized gains on sales of securities of $68 million.
|
|
|
Q3:
|
Can you discuss
changes in dealer inventories during the fourth quarter of
2018?
|
|
|
A:
|
Dealer machine and
engine inventories increased about $200 million during the fourth
quarter of 2018 and remained about flat during the fourth quarter
of 2017. For the full year of 2018, dealer inventories increased
about $2.3 billion, compared with an increase of about $100 million
during 2017. We believe the increase in dealer inventories is
reflective of current end-user demand.
|
|
|
Q4:
|
Can you discuss
changes to your order backlog by segment?
|
|
|
A:
|
At the end of the
fourth quarter of 2018, the order backlog was $16.5 billion, about
$800 million lower than the third quarter of 2018. The decrease was
in Energy & Transportation and Resource Industries, partially
offset by an increase in Construction Industries.
|
|
|
|
The order backlog
increased about $700 million from the end of 2017. The increase was
in Energy & Transportation and Construction Industries,
partially offset by a decrease in Resource Industries.
|
|
|
Q5:
|
Can you comment on
expense related to your 2018 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 2018 expense was about $310 million, compared with
fourth-quarter 2017 expense of about $350 million. Full-year 2018
expense was about $1.4 billion, nearly the same as 2017.
|
|
|
Q6:
|
Do you expect to
exclude restructuring costs from adjusted profit per share in
2019?
|
|
|
A:
|
On September 24,
2015, we announced a significant restructuring program through 2018
that is now substantially complete. Although we expect
restructuring to continue as part of ongoing business activities,
restructuring costs should decline in 2019, and we do not plan to
exclude restructuring costs from adjusted profit per share in
2019.
|
GLOSSARY OF TERMS
1.
|
Adjusted Profit
Per Share – Profit per share excluding restructuring costs,
pension and OPEB mark-to-market losses, certain deferred tax
valuation allowance adjustments and the impact of the U.S. tax
reform. For 2017, adjusted profit per share also excludes a gain on
the sale of an equity investment in IronPlanet.
|
|
|
2.
|
All Other
Segments – Primarily includes activities such as: business
strategy, product management and development, manufacturing of
filters and fluids, undercarriage, ground engaging tools, fluid
transfer products, precision seals, rubber sealing and connecting
components primarily for Cat® products; parts distribution;
integrated logistics solutions, 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 asphalt pavers, backhoe loaders, compactors,
cold planers, compact track and multi-terrain loaders, mini, small,
medium and large track excavators, forestry excavators, feller
bunchers, harvesters, knuckleboom loaders, motor graders,
pipelayers, road reclaimers, site prep tractors, skidders, skid
steer loaders, telehandlers, small and medium track-type tractors,
track-type loaders, utility vehicles, wheel excavators, compact,
small and medium wheel loaders and related parts and work
tools.
|
|
|
5.
|
Corporate Items
and Eliminations – Includes restructuring costs;
corporate-level expenses; timing differences, as some expenses are
reported in segment profit on a cash basis; methodology differences
between segment and consolidated external reporting; and
inter-segment eliminations.
|
|
|
6.
|
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).
|
|
|
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 Oil and
Gas, Power Generation, Industrial 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 turbine machinery and integrated systems and solutions 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 Caterpillar 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. The
segment also earns revenues from Machinery, Energy &
Transportation, but the related costs are not allocated to
operating segments. 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, 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.
|
Manufacturing
Costs – Manufacturing costs exclude the impacts of currency and
restructuring costs (see definition below) and represent the
volume-adjusted change for variable costs and the absolute dollar
change for period manufacturing costs. 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. 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.
|
|
|
15.
|
Mark-to-market
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.
|
|
|
16.
|
Pension and Other
Postemployment Benefit (OPEB) – The company's defined-benefit
pension and postretirement benefit plans.
|
|
|
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.
|
|
|
19.
|
Restructuring
Costs – Primarily costs for employee separation, long-lived
asset impairments and contract terminations. These costs are
included in Other operating (income) expenses except for
defined-benefit plan curtailment losses and special termination
benefits, which are included in Other income (expense).
Restructuring costs also include other exit-related costs primarily
for accelerated depreciation, inventory write-downs, equipment
relocation and project management costs and LIFO inventory
decrement benefits from inventory liquidations at closed
facilities, all of which are 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 sales 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.
|
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
The company 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)
certain deferred tax valuation allowance adjustments, (iv) U.S. tax
reform impact and (v) a gain on the sale of an equity investment.
The company 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 the company's period-over-period
results.
Reconciliations of adjusted profit before taxes to the most
directly comparable GAAP measure, consolidated profit before taxes,
are as follows:
|
Fourth
Quarter
|
|
Full
Year
|
|
(Millions of
dollars)
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
Profit before
taxes
|
$
|
1,111
|
|
|
$
|
1,367
|
|
|
$
|
4,082
|
|
|
$
|
7,822
|
|
|
Restructuring
costs
|
245
|
|
|
93
|
|
|
1,256
|
|
|
386
|
|
|
Mark-to-market
losses
|
301
|
|
|
495
|
|
|
301
|
|
|
495
|
|
|
Gain on sale of
equity investment
|
—
|
|
|
—
|
|
|
(85)
|
|
|
—
|
|
|
Adjusted profit
before taxes
|
$
|
1,657
|
|
|
$
|
1,955
|
|
|
$
|
5,554
|
|
|
$
|
8,703
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of adjusted profit per share to the most
directly comparable GAAP measure, diluted profit per share, are as
follows:
|
Fourth
Quarter
|
|
Full
Year
|
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
Profit (Loss) per
share
|
($2.18)
|
|
$1.78
|
|
$1.26
|
|
$10.26
|
|
Per share
restructuring costs1
|
$0.31
|
|
$0.13
|
|
$1.68
|
|
$0.50
|
|
Per share
mark-to-market losses2
|
$0.26
|
|
$0.66
|
|
$0.26
|
|
$0.64
|
|
Per share deferred
tax valuation allowance adjustments
|
($0.18)
|
|
($0.11)
|
|
($0.18)
|
|
($0.01)
|
|
Per share U.S. tax
reform impact
|
$3.91
|
|
$0.09
|
|
$3.95
|
|
($0.17)
|
|
Per share gain on
sale of equity investment2
|
—
|
|
—
|
|
($0.09)
|
|
—
|
|
Adjusted profit per
share
|
$2.16
|
|
$2.55
|
|
$6.88
|
|
$11.22
|
|
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. 2017 is 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.
|
2At
statutory tax rates. 2017 is prior to consideration of U.S. tax
reform.
|
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 19-27 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 online:
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,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
13,630
|
|
|
|
$
|
12,194
|
|
|
|
$
|
51,822
|
|
|
|
$
|
42,676
|
|
|
|
Revenues of Financial
Products
|
|
712
|
|
|
|
|
702
|
|
|
|
|
2,900
|
|
|
|
|
2,786
|
|
|
|
Total sales and
revenues
|
|
14,342
|
|
|
|
|
12,896
|
|
|
|
|
54,722
|
|
|
|
|
45,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
9,987
|
|
|
|
|
8,965
|
|
|
|
|
36,997
|
|
|
|
|
31,260
|
|
|
|
Selling, general and
administrative expenses
|
|
1,463
|
|
|
|
|
1,380
|
|
|
|
|
5,478
|
|
|
|
|
4,999
|
|
|
|
Research and
development expenses
|
|
466
|
|
|
|
|
498
|
|
|
|
|
1,850
|
|
|
|
|
1,842
|
|
|
|
Interest expense of
Financial Products
|
|
189
|
|
|
|
|
162
|
|
|
|
|
722
|
|
|
|
|
646
|
|
|
|
Other operating
(income) expenses
|
|
354
|
|
|
|
|
504
|
|
|
|
|
1,382
|
|
|
|
|
2,255
|
|
|
|
Total operating
costs
|
|
12,459
|
|
|
|
|
11,509
|
|
|
|
|
46,429
|
|
|
|
|
41,002
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
1,883
|
|
|
|
|
1,387
|
|
|
|
|
8,293
|
|
|
|
|
4,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
99
|
|
|
|
|
169
|
|
|
|
|
404
|
|
|
|
|
531
|
|
|
|
Other income
(expense)
|
|
(417)
|
|
|
|
|
(107)
|
|
|
|
|
(67)
|
|
|
|
|
153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
1,367
|
|
|
|
|
1,111
|
|
|
|
|
7,822
|
|
|
|
|
4,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
321
|
|
|
|
|
2,418
|
|
|
|
|
1,698
|
|
|
|
|
3,339
|
|
|
|
Profit (loss) of
consolidated companies
|
|
1,046
|
|
|
|
|
(1,307)
|
|
|
|
|
6,124
|
|
|
|
|
743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
3
|
|
|
|
|
8
|
|
|
|
|
24
|
|
|
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) of
consolidated and affiliated companies
|
|
1,049
|
|
|
|
|
(1,299)
|
|
|
|
|
6,148
|
|
|
|
|
759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
1
|
|
|
|
|
—
|
|
|
|
|
1
|
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
1
|
$
|
1,048
|
|
|
|
$
|
(1,299)
|
|
|
|
$
|
6,147
|
|
|
|
$
|
754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) per
common share
|
$
|
1.80
|
|
|
|
$
|
(2.18)
|
|
|
|
$
|
10.39
|
|
|
|
$
|
1.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) per
common share – diluted 2,3
|
$
|
1.78
|
|
|
|
$
|
(2.18)
|
|
|
|
$
|
10.26
|
|
|
|
$
|
1.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding
(millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Basic
|
|
581.4
|
|
|
|
|
596.4
|
|
|
|
|
591.4
|
|
|
|
|
591.8
|
|
|
|
-
Diluted2,3
|
|
587.6
|
|
|
|
|
596.4
|
|
|
|
|
599.4
|
|
|
|
|
599.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
|
1.72
|
|
|
|
$
|
1.56
|
|
|
|
$
|
3.36
|
|
|
|
$
|
3.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Profit 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, 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,
|
|
2018
|
|
2017
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
$
|
7,857
|
|
|
|
$
|
8,261
|
|
|
|
|
Receivables - trade
and other
|
|
8,802
|
|
|
|
|
7,436
|
|
|
|
|
Receivables -
finance
|
|
8,650
|
|
|
|
|
8,757
|
|
|
|
|
Prepaid expenses and
other current assets
|
|
1,765
|
|
|
|
|
1,772
|
|
|
|
|
Inventories
|
|
11,529
|
|
|
|
|
10,018
|
|
|
|
Total
current assets
|
|
38,603
|
|
|
|
|
36,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment – net
|
|
13,574
|
|
|
|
|
14,155
|
|
|
|
Long-term receivables
- trade and other
|
|
1,161
|
|
|
|
|
990
|
|
|
|
Long-term receivables
- finance
|
|
13,286
|
|
|
|
|
13,542
|
|
|
|
Noncurrent deferred
and refundable income taxes
|
|
1,439
|
|
|
|
|
1,693
|
|
|
|
Intangible
assets
|
|
1,897
|
|
|
|
|
2,111
|
|
|
|
Goodwill
|
|
6,217
|
|
|
|
|
6,200
|
|
|
|
Other
assets
|
|
2,332
|
|
|
|
|
2,027
|
|
|
Total
assets
|
$
|
78,509
|
|
|
|
$
|
76,962
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
$
|
—
|
|
|
|
$
|
1
|
|
|
|
|
|
-- Financial
Products
|
|
5,723
|
|
|
|
|
4,836
|
|
|
|
|
Accounts
payable
|
|
7,051
|
|
|
|
|
6,487
|
|
|
|
|
Accrued
expenses
|
|
3,573
|
|
|
|
|
3,220
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
2,384
|
|
|
|
|
2,559
|
|
|
|
|
Customer
advances
|
|
1,243
|
|
|
|
|
1,426
|
|
|
|
|
Dividends
payable
|
|
495
|
|
|
|
|
466
|
|
|
|
|
Other current
liabilities
|
|
1,919
|
|
|
|
|
1,742
|
|
|
|
|
Long-term debt due
within one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
10
|
|
|
|
|
6
|
|
|
|
|
|
-- Financial
Products
|
|
5,820
|
|
|
|
|
6,188
|
|
|
|
Total current
liabilities
|
|
28,218
|
|
|
|
|
26,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt due
after one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
-- Machinery, Energy
& Transportation
|
|
8,005
|
|
|
|
|
7,929
|
|
|
|
|
|
-- Financial
Products
|
|
16,995
|
|
|
|
|
15,918
|
|
|
|
Liability for
postemployment benefits
|
|
7,455
|
|
|
|
|
8,365
|
|
|
|
Other
liabilities
|
|
3,756
|
|
|
|
|
4,053
|
|
|
Total
liabilities
|
|
64,429
|
|
|
|
|
63,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
5,827
|
|
|
|
|
5,593
|
|
|
|
Treasury
stock
|
|
(20,531)
|
|
|
|
|
(17,005)
|
|
|
|
Profit employed in
the business
|
|
30,427
|
|
|
|
|
26,301
|
|
|
|
Accumulated other
comprehensive income (loss)
|
|
(1,684)
|
|
|
|
|
(1,192)
|
|
|
|
Noncontrolling
interests
|
|
41
|
|
|
|
|
69
|
|
|
Total
shareholders' equity
|
|
14,080
|
|
|
|
|
13,766
|
|
|
Total liabilities
and shareholders' equity
|
$
|
78,509
|
|
|
|
$
|
76,962
|
|
|
Caterpillar
Inc.
Condensed
Consolidated Statement of Cash Flow
(Unaudited)
(Millions of
dollars)
|
|
|
Twelve Months
Ended
|
|
December
31,
|
|
2018
|
|
2017
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
$
|
6,148
|
|
|
|
$
|
759
|
|
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,766
|
|
|
|
|
2,877
|
|
|
|
|
Actuarial (gain) loss
on pension and postretirement benefits
|
|
495
|
|
|
|
|
301
|
|
|
|
|
Provision (benefit)
for deferred income taxes
|
|
220
|
|
|
|
|
1,213
|
|
|
|
|
Other
|
|
1,006
|
|
|
|
|
750
|
|
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
Receivables – trade
and other
|
|
(1,619)
|
|
|
|
|
(1,151)
|
|
|
|
|
Inventories
|
|
(1,579)
|
|
|
|
|
(1,295)
|
|
|
|
|
Accounts
payable
|
|
709
|
|
|
|
|
1,478
|
|
|
|
|
Accrued
expenses
|
|
101
|
|
|
|
|
175
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(162)
|
|
|
|
|
1,187
|
|
|
|
|
Customer
advances
|
|
(183)
|
|
|
|
|
(8)
|
|
|
|
|
Other assets –
net
|
|
41
|
|
|
|
|
(192)
|
|
|
|
|
Other liabilities –
net
|
|
(1,385)
|
|
|
|
|
(388)
|
|
|
Net cash provided by
(used for) operating activities
|
|
6,558
|
|
|
|
|
5,706
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
– excluding equipment leased to others
|
|
(1,276)
|
|
|
|
|
(898)
|
|
|
|
Expenditures for
equipment leased to others
|
|
(1,640)
|
|
|
|
|
(1,438)
|
|
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
936
|
|
|
|
|
1,164
|
|
|
|
Additions to finance
receivables
|
|
(12,183)
|
|
|
|
|
(11,953)
|
|
|
|
Collections of
finance receivables
|
|
10,901
|
|
|
|
|
12,018
|
|
|
|
Proceeds from sale of
finance receivables
|
|
477
|
|
|
|
|
127
|
|
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(392)
|
|
|
|
|
(59)
|
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
|
16
|
|
|
|
|
100
|
|
|
|
Proceeds from sale of
securities
|
|
442
|
|
|
|
|
932
|
|
|
|
Investments in
securities
|
|
(506)
|
|
|
|
|
(1,048)
|
|
|
|
Other –
net
|
|
13
|
|
|
|
|
89
|
|
|
Net cash provided by
(used for) investing activities
|
|
(3,212)
|
|
|
|
|
(966)
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(1,951)
|
|
|
|
|
(1,831)
|
|
|
|
Common stock issued,
including treasury shares reissued
|
|
313
|
|
|
|
|
566
|
|
|
|
Common shares
repurchased
|
|
(3,798)
|
|
|
|
|
—
|
|
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
|
8,907
|
|
|
|
|
9,063
|
|
|
|
Payments on debt
(original maturities greater than three months)
|
|
(7,829)
|
|
|
|
|
(8,388)
|
|
|
|
Short-term borrowings
– net (original maturities three months or less)
|
|
762
|
|
|
|
|
(3,058)
|
|
|
|
Other –
net
|
|
(54)
|
|
|
|
|
(9)
|
|
|
Net cash provided by
(used for) financing activities
|
|
(3,650)
|
|
|
|
|
(3,657)
|
|
|
Effect of exchange
rate changes on cash
|
|
(126)
|
|
|
|
|
38
|
|
|
Increase
(decrease) in cash and short-term investments and restricted
cash
|
|
(430)
|
|
|
|
|
1,121
|
|
|
Cash and short-term
investments and restricted cash at beginning of period
|
|
8,320
|
|
|
|
|
7,199
|
|
|
Cash and short-term
investments and restricted cash at end of period
|
$
|
7,890
|
|
|
|
$
|
8,320
|
|
|
|
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, 2018
(Unaudited)
(Millions of dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
13,630
|
|
|
|
$
|
13,630
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
Revenues of Financial
Products
|
|
712
|
|
|
|
|
—
|
|
|
|
|
835
|
|
|
|
|
(123)
|
|
2
|
|
Total sales and
revenues
|
|
14,342
|
|
|
|
|
13,630
|
|
|
|
|
835
|
|
|
|
|
(123)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
9,987
|
|
|
|
|
9,988
|
|
|
|
|
—
|
|
|
|
|
(1)
|
|
3
|
|
Selling, general and
administrative expenses
|
|
1,463
|
|
|
|
|
1,230
|
|
|
|
|
244
|
|
|
|
|
(11)
|
|
3
|
|
Research and
development expenses
|
|
466
|
|
|
|
|
466
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Interest expense of
Financial Products
|
|
189
|
|
|
|
|
—
|
|
|
|
|
198
|
|
|
|
|
(9)
|
|
4
|
|
Other operating
(income) expenses
|
|
354
|
|
|
|
|
44
|
|
|
|
|
310
|
|
|
|
|
—
|
|
|
|
Total operating
costs
|
|
12,459
|
|
|
|
|
11,728
|
|
|
|
|
752
|
|
|
|
|
(21)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
1,883
|
|
|
|
|
1,902
|
|
|
|
|
83
|
|
|
|
|
(102)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
99
|
|
|
|
|
111
|
|
|
|
|
—
|
|
|
|
|
(12)
|
|
4
|
|
Other income
(expense)
|
|
(417)
|
|
|
|
|
(467)
|
|
|
|
|
(40)
|
|
|
|
|
90
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
1,367
|
|
|
|
|
1,324
|
|
|
|
|
43
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
321
|
|
|
|
|
300
|
|
|
|
|
21
|
|
|
|
|
—
|
|
|
|
Profit of
consolidated companies
|
|
1,046
|
|
|
|
|
1,024
|
|
|
|
|
22
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
3
|
|
|
|
|
3
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
17
|
|
|
|
|
—
|
|
|
|
|
(17)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
1,049
|
|
|
|
|
1,044
|
|
|
|
|
22
|
|
|
|
|
(17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
1
|
|
|
|
|
(4)
|
|
|
|
|
5
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
1,048
|
|
|
|
$
|
1,048
|
|
|
|
$
|
17
|
|
|
|
$
|
(17)
|
|
|
|
1
|
Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis.
|
2
|
Elimination of
Financial Products' revenues earned from Machinery, Energy &
Transportation.
|
3
|
Elimination of net
expenses recorded by Machinery, Energy & Transportation paid to
Financial Products.
|
4
|
Elimination of
interest expense recorded between Financial Products and Machinery,
Energy & Transportation.
|
5
|
Elimination of
discount recorded by Machinery, Energy & Transportation on
receivables sold to Financial Products and of
interest earned
between Machinery, Energy & Transportation and Financial
Products.
|
6
|
Elimination of
Financial Products' profit due to equity method of
accounting.
|
7
|
Profit attributable
to common shareholders.
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Three Months Ended 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
|
|
8,965
|
|
|
|
|
8,966
|
|
|
|
|
—
|
|
|
|
|
(1)
|
|
3
|
|
Selling, general and
administrative expenses
|
|
1,380
|
|
|
|
|
1,218
|
|
|
|
|
166
|
|
|
|
|
(4)
|
|
3
|
|
Research and
development expenses
|
|
498
|
|
|
|
|
498
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Interest expense of
Financial Products
|
|
162
|
|
|
|
|
—
|
|
|
|
|
168
|
|
|
|
|
(6)
|
|
4
|
|
Other operating
(income) expenses
|
|
504
|
|
|
|
|
195
|
|
|
|
|
314
|
|
|
|
|
(5)
|
|
3
|
|
Total operating
costs
|
|
11,509
|
|
|
|
|
10,877
|
|
|
|
|
648
|
|
|
|
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
1,387
|
|
|
|
|
1,317
|
|
|
|
|
156
|
|
|
|
|
(86)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
169
|
|
|
|
|
189
|
|
|
|
|
—
|
|
|
|
|
(20)
|
|
4
|
|
Other income
(expense)
|
|
(107)
|
|
|
|
|
(232)
|
|
|
|
|
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 attributable
to common shareholders.
|
Caterpillar
Inc.
Supplemental Data for Results of Operations
For the Twelve Months Ended December 31, 2018
(Unaudited)
(Millions of dollars)
|
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
|
Machinery,
|
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
51,822
|
|
|
|
$
|
51,822
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
Revenues of Financial
Products
|
|
2,900
|
|
|
|
|
—
|
|
|
|
|
3,362
|
|
|
|
|
(462)
|
|
2
|
|
Total sales and
revenues
|
|
54,722
|
|
|
|
|
51,822
|
|
|
|
|
3,362
|
|
|
|
|
(462)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
36,997
|
|
|
|
|
36,998
|
|
|
|
|
—
|
|
|
|
|
(1)
|
|
3
|
|
Selling, general and
administrative expenses
|
|
5,478
|
|
|
|
|
4,675
|
|
|
|
|
825
|
|
|
|
|
(22)
|
|
3
|
|
Research and
development expenses
|
|
1,850
|
|
|
|
|
1,850
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Interest expense of
Financial Products
|
|
722
|
|
|
|
|
—
|
|
|
|
|
756
|
|
|
|
|
(34)
|
|
4
|
|
Other operating
(income) expenses
|
|
1,382
|
|
|
|
|
144
|
|
|
|
|
1,259
|
|
|
|
|
(21)
|
|
3
|
|
Total operating
costs
|
|
46,429
|
|
|
|
|
43,667
|
|
|
|
|
2,840
|
|
|
|
|
(78)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
8,293
|
|
|
|
|
8,155
|
|
|
|
|
522
|
|
|
|
|
(384)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
404
|
|
|
|
|
448
|
|
|
|
|
—
|
|
|
|
|
(44)
|
|
4
|
|
Other income
(expense)
|
|
(67)
|
|
|
|
|
(391)
|
|
|
|
|
(16)
|
|
|
|
|
340
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
|
7,822
|
|
|
|
|
7,316
|
|
|
|
|
506
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
|
1,698
|
|
|
|
|
1,574
|
|
|
|
|
124
|
|
|
|
|
—
|
|
|
|
Profit of
consolidated companies
|
|
6,124
|
|
|
|
|
5,742
|
|
|
|
|
382
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
|
24
|
|
|
|
|
24
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Equity in profit of
Financial Products' subsidiaries
|
|
—
|
|
|
|
|
362
|
|
|
|
|
—
|
|
|
|
|
(362)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
|
6,148
|
|
|
|
|
6,128
|
|
|
|
|
382
|
|
|
|
|
(362)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit
(loss) attributable to noncontrolling interests
|
|
1
|
|
|
|
|
(19)
|
|
|
|
|
20
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
6,147
|
|
|
|
$
|
6,147
|
|
|
|
$
|
362
|
|
|
|
$
|
(362)
|
|
|
|
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, 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
|
|
31,260
|
|
|
|
|
31,261
|
|
|
|
|
—
|
|
|
|
|
(1)
|
|
3
|
|
Selling, general and
administrative expenses
|
|
4,999
|
|
|
|
|
4,411
|
|
|
|
|
604
|
|
|
|
|
(16)
|
|
3
|
|
Research and
development expenses
|
|
1,842
|
|
|
|
|
1,842
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Interest expense of
Financial Products
|
|
646
|
|
|
|
|
—
|
|
|
|
|
667
|
|
|
|
|
(21)
|
|
4
|
|
Other operating
(income) expenses
|
|
2,255
|
|
|
|
|
1,056
|
|
|
|
|
1,220
|
|
|
|
|
(21)
|
|
3
|
|
Total operating
costs
|
|
41,002
|
|
|
|
|
38,570
|
|
|
|
|
2,491
|
|
|
|
|
(59)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
4,460
|
|
|
|
|
4,106
|
|
|
|
|
676
|
|
|
|
|
(322)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
|
531
|
|
|
|
|
622
|
|
|
|
|
—
|
|
|
|
|
(91)
|
|
4
|
|
Other income
(expense)
|
|
153
|
|
|
|
|
(170)
|
|
|
|
|
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 Cash Flow
For the Twelve
Months Ended December 31, 2018
(Unaudited)
(Millions of
dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
|
Machinery,
|
|
|
|
|
|
Consolidated
|
|
Energy &
Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
$
|
6,148
|
|
|
|
$
|
6,128
|
|
|
|
$
|
382
|
|
|
|
$
|
(362)
|
|
2
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,766
|
|
|
|
|
1,895
|
|
|
|
|
871
|
|
|
|
|
—
|
|
|
|
|
Actuarial (gain) loss
on pension and postretirement benefits
|
|
495
|
|
|
|
|
495
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Provision (benefit)
for deferred income taxes
|
|
220
|
|
|
|
|
149
|
|
|
|
|
71
|
|
|
|
|
—
|
|
|
|
|
Other
|
|
1,006
|
|
|
|
|
434
|
|
|
|
|
178
|
|
|
|
|
394
|
|
3
|
|
Financial Products'
dividend in excess of profit
|
|
—
|
|
|
|
|
57
|
|
|
|
|
—
|
|
|
|
|
(57)
|
|
4
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables – trade
and other
|
|
(1,619)
|
|
|
|
|
(396)
|
|
|
|
|
6
|
|
|
|
|
(1,229)
|
|
3,5
|
|
|
Inventories
|
|
(1,579)
|
|
|
|
|
(1,528)
|
|
|
|
|
—
|
|
|
|
|
(51)
|
|
3
|
|
|
Accounts
payable
|
|
709
|
|
|
|
|
771
|
|
|
|
|
(55)
|
|
|
|
|
(7)
|
|
3
|
|
|
Accrued
expenses
|
|
101
|
|
|
|
|
71
|
|
|
|
|
30
|
|
|
|
|
—
|
|
|
|
|
Accrued wages,
salaries and employee benefits
|
|
(162)
|
|
|
|
|
(141)
|
|
|
|
|
(21)
|
|
|
|
|
—
|
|
|
|
|
Customer
advances
|
|
(183)
|
|
|
|
|
(183)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Other assets –
net
|
|
41
|
|
|
|
|
16
|
|
|
|
|
(14)
|
|
|
|
|
39
|
|
3
|
|
|
Other liabilities –
net
|
|
(1,385)
|
|
|
|
|
(1,421)
|
|
|
|
|
75
|
|
|
|
|
(39)
|
|
3
|
Net cash provided by
(used for) operating activities
|
|
6,558
|
|
|
|
|
6,347
|
|
|
|
|
1,523
|
|
|
|
|
(1,312)
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
– excluding equipment leased to others
|
|
(1,276)
|
|
|
|
|
(1,168)
|
|
|
|
|
(108)
|
|
|
|
|
—
|
|
|
|
Expenditures for
equipment leased to others
|
|
(1,640)
|
|
|
|
|
(53)
|
|
|
|
|
(1,667)
|
|
|
|
|
80
|
|
3
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
|
936
|
|
|
|
|
152
|
|
|
|
|
811
|
|
|
|
|
(27)
|
|
3
|
|
Additions to finance
receivables
|
|
(12,183)
|
|
|
|
|
—
|
|
|
|
|
(13,595)
|
|
|
|
|
1,412
|
|
5,7
|
|
Collections of
finance receivables
|
|
10,901
|
|
|
|
|
—
|
|
|
|
|
12,513
|
|
|
|
|
(1,612)
|
|
5
|
|
Net intercompany
purchased receivables
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(1,046)
|
|
|
|
|
1,046
|
|
5
|
|
Proceeds from sale of
finance receivables
|
|
477
|
|
|
|
|
—
|
|
|
|
|
477
|
|
|
|
|
—
|
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
112
|
|
|
|
|
31
|
|
|
|
|
(143)
|
|
6
|
|
Investments and
acquisitions (net of cash acquired)
|
|
(392)
|
|
|
|
|
(392)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
|
16
|
|
|
|
|
22
|
|
|
|
|
—
|
|
|
|
|
(6)
|
|
7
|
|
Proceeds from sale of
securities
|
|
442
|
|
|
|
|
162
|
|
|
|
|
280
|
|
|
|
|
—
|
|
|
|
Investments in
securities
|
|
(506)
|
|
|
|
|
(24)
|
|
|
|
|
(482)
|
|
|
|
|
—
|
|
|
|
Other –
net
|
|
13
|
|
|
|
|
2
|
|
|
|
|
10
|
|
|
|
|
1
|
|
8
|
Net cash provided by
(used for) investing activities
|
|
(3,212)
|
|
|
|
|
(1,187)
|
|
|
|
|
(2,776)
|
|
|
|
|
751
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
(1,951)
|
|
|
|
|
(1,951)
|
|
|
|
|
(419)
|
|
|
|
|
419
|
|
9
|
|
Common stock issued,
including treasury shares reissued
|
|
313
|
|
|
|
|
313
|
|
|
|
|
1
|
|
|
|
|
(1)
|
|
8
|
|
Common shares
repurchased
|
|
(3,798)
|
|
|
|
|
(3,798)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
Net intercompany
borrowings
|
|
—
|
|
|
|
|
(31)
|
|
|
|
|
(112)
|
|
|
|
|
143
|
|
6
|
|
Proceeds from debt
issued > 90 days
|
|
8,907
|
|
|
|
|
57
|
|
|
|
|
8,850
|
|
|
|
|
—
|
|
|
|
Payments on debt >
90 days
|
|
(7,829)
|
|
|
|
|
(7)
|
|
|
|
|
(7,822)
|
|
|
|
|
—
|
|
|
|
Short-term borrowings
– net < 90 days
|
|
762
|
|
|
|
|
—
|
|
|
|
|
762
|
|
|
|
|
—
|
|
|
|
Other –
net
|
|
(54)
|
|
|
|
|
(54)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) financing activities
|
|
(3,650)
|
|
|
|
|
(5,471)
|
|
|
|
|
1,260
|
|
|
|
|
561
|
|
|
Effect of exchange
rate changes on cash
|
|
(126)
|
|
|
|
|
(111)
|
|
|
|
|
(15)
|
|
|
|
|
—
|
|
|
Increase
(decrease) in cash and short-term investments and restricted
cash
|
|
(430)
|
|
|
|
|
(422)
|
|
|
|
|
(8)
|
|
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at beginning of period
|
|
8,320
|
|
|
|
|
7,416
|
|
|
|
|
904
|
|
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at end of period
|
$
|
7,890
|
|
|
|
$
|
6,994
|
|
|
|
$
|
896
|
|
|
|
$
|
—
|
|
|
|
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 adjustments and changes in assets and liabilities related
to consolidated reporting.
|
4
|
Elimination of
Financial Products' dividend to Machinery, Energy &
Transportation in excess of Financial Products'
profit.
|
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
proceeds received from Financial Products related to Machinery,
Energy & Transportation's sale of businesses and
investments.
|
8
|
Elimination of change
in investment and common stock related to Financial
Products.
|
9
|
Elimination of
dividend from Financial Products to Machinery, Energy &
Transportation.
|
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 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
|
|
750
|
|
|
|
|
673
|
|
|
|
|
(175)
|
|
|
|
|
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
|
|
(8)
|
|
|
|
|
(8)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
Other assets –
net
|
|
(192)
|
|
|
|
|
(186)
|
|
|
|
|
8
|
|
|
|
|
(14)
|
|
4
|
|
|
Other liabilities –
net
|
|
(388)
|
|
|
|
|
(561)
|
|
|
|
|
157
|
|
|
|
|
16
|
|
4
|
Net cash provided by
(used for) operating activities
|
|
5,706
|
|
|
|
|
5,459
|
|
|
|
|
1,350
|
|
|
|
|
(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
|
|
89
|
|
|
|
|
54
|
|
|
|
|
35
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) investing activities
|
|
(966)
|
|
|
|
|
(727)
|
|
|
|
|
(596)
|
|
|
|
|
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 > 90 days
|
|
9,063
|
|
|
|
|
361
|
|
|
|
|
8,702
|
|
|
|
|
—
|
|
|
|
Payments on debt >
90 days
|
|
(8,388)
|
|
|
|
|
(1,465)
|
|
|
|
|
(6,923)
|
|
|
|
|
—
|
|
|
|
Short-term borrowings
– net < 90 days
|
|
(3,058)
|
|
|
|
|
(204)
|
|
|
|
|
(2,854)
|
|
|
|
|
—
|
|
|
|
Other –
net
|
|
(9)
|
|
|
|
|
(9)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net cash provided by
(used for) financing activities
|
|
(3,657)
|
|
|
|
|
(2,582)
|
|
|
|
|
(1,821)
|
|
|
|
|
746
|
|
|
Effect of exchange
rate changes on cash
|
|
38
|
|
|
|
|
7
|
|
|
|
|
31
|
|
|
|
|
—
|
|
|
Increase
(decrease) in cash and short-term investments and restricted
cash
|
|
1,121
|
|
|
|
|
2,157
|
|
|
|
|
(1,036)
|
|
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at beginning of period
|
|
7,199
|
|
|
|
|
5,259
|
|
|
|
|
1,940
|
|
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at end of period
|
$
|
8,320
|
|
|
|
$
|
7,416
|
|
|
|
$
|
904
|
|
|
|
$
|
—
|
|
|
|
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.
|
View original
content:http://www.prnewswire.com/news-releases/caterpillar-reports-fourth-quarter-and-full-year-2018-results-provides-outlook-for-2019-300784942.html
SOURCE Caterpillar Inc.