DEERFIELD Ill., Oct. 27, 2020 /PRNewswire/ --
- Third-quarter sales and revenues decreased 23%; profit per
share declined 54%
- Strong balance sheet; $9.3
billion of enterprise cash
|
|
Third
Quarter
|
($ in billions except
profit per share)
|
|
2020
|
2019
|
Sales and
Revenues
|
|
$9.9
|
$12.8
|
Profit Per
Share
|
|
$1.22
|
$2.66
|
Caterpillar Inc. (NYSE: CAT) today announced third-quarter 2020
sales and revenues of $9.9 billion, a
23% decrease compared with $12.8
billion in the third quarter of 2019. The decline was
primarily due to lower sales volume driven by lower end-user demand
for equipment and services.
Third-quarter 2020 profit per share was $1.22, compared with $2.66 profit per share in the third quarter of
2019. Profit per share in the third quarter of 2020 included
pre-tax remeasurement losses of $77
million, or $0.12 per share,
resulting from the settlements of pension obligations. Profit per
share benefited from lower than expected taxes in the quarter.
Operating profit margin was 10.0% for the third quarter of 2020,
compared with 15.8% for the third quarter of 2019.
For the nine months ended September 30,
2020, enterprise operating cash flow was $4.3 billion. Caterpillar ended the third quarter
with $9.3 billion of enterprise cash
and more than $14 billion of
available liquidity sources.
"I'm proud of our global team's performance as we continue to
safely navigate the pandemic while remaining firmly committed to
serving our customers," said Caterpillar Chairman and CEO
Jim Umpleby. "Our third-quarter
results largely aligned with our expectations, and we're encouraged
by positive signs in certain industries and geographies. We're
executing our strategy and are ready to respond quickly to changing
market conditions."
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales
and Revenues Comparison
Third Quarter 2020 vs. Third Quarter 2019
To access this chart, go to
https://investors.caterpillar.com/financials/quarterly-results/default.aspx for
the downloadable version of Caterpillar third-quarter 2020
earnings.
The chart above graphically illustrates reasons for the change
in consolidated sales and revenues between the third quarter of
2019 (at left) and the third quarter of 2020 (at right).
Caterpillar management utilizes these charts internally to visually
communicate with the company's Board of Directors and
employees.
Total sales and revenues for the third quarter of 2020 were
$9.881 billion, a decrease of
$2.877 billion, or 23%, compared with
$12.758 billion in the third quarter
of 2019. The decline was mostly due to lower sales volume driven by
lower end-user demand for equipment and services and the impact
from changes in dealer inventories. Dealers decreased inventories
more during the third quarter of 2020 than during the third quarter
of 2019.
Sales were lower across all regions and the three primary
segments.
Sales and Revenues
by Segment
|
|
(Millions of dollars)
|
Third
Quarter
2019
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment
/
Other
|
|
Third
Quarter
2020
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries
|
$
|
5,289
|
|
|
$
|
(1,150)
|
|
|
$
|
(60)
|
|
|
$
|
(17)
|
|
|
$
|
(6)
|
|
|
$
|
4,056
|
|
|
$
|
(1,233)
|
|
|
(23%)
|
Resource
Industries
|
2,310
|
|
|
(425)
|
|
|
(46)
|
|
|
(4)
|
|
|
(19)
|
|
|
1,816
|
|
|
(494)
|
|
|
(21%)
|
Energy &
Transportation
|
5,452
|
|
|
(1,086)
|
|
|
(16)
|
|
|
15
|
|
|
(204)
|
|
|
4,161
|
|
|
(1,291)
|
|
|
(24%)
|
All Other
Segment
|
111
|
|
|
(3)
|
|
|
1
|
|
|
—
|
|
|
(3)
|
|
|
106
|
|
|
(5)
|
|
|
(5%)
|
Corporate Items and
Eliminations
|
(1,188)
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
232
|
|
|
(911)
|
|
|
277
|
|
|
|
Machinery, Energy
& Transportation
|
11,974
|
|
|
(2,619)
|
|
|
(121)
|
|
|
(6)
|
|
|
—
|
|
|
9,228
|
|
|
(2,746)
|
|
|
(23%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
865
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(141)
|
|
|
724
|
|
|
(141)
|
|
|
(16%)
|
Corporate Items and
Eliminations
|
(81)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
(71)
|
|
|
10
|
|
|
|
Financial
Products Revenues
|
784
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(131)
|
|
|
653
|
|
|
(131)
|
|
|
(17%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
|
12,758
|
|
|
$
|
(2,619)
|
|
|
$
|
(121)
|
|
|
$
|
(6)
|
|
|
$
|
(131)
|
|
|
$
|
9,881
|
|
|
$
|
(2,877)
|
|
|
(23%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
Third Quarter
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries
|
$
|
1,781
|
|
|
(35%)
|
|
$
|
230
|
|
|
(44%)
|
|
$
|
796
|
|
|
(24%)
|
|
$
|
1,241
|
|
|
14%
|
|
$
|
4,048
|
|
|
(23%)
|
|
$
|
8
|
|
|
(43%)
|
|
$
|
4,056
|
|
|
(23%)
|
Resource
Industries
|
487
|
|
|
(38%)
|
|
269
|
|
|
(23%)
|
|
384
|
|
|
(3%)
|
|
564
|
|
|
(13%)
|
|
1,704
|
|
|
(22%)
|
|
112
|
|
|
(15%)
|
|
1,816
|
|
|
(21%)
|
Energy &
Transportation
|
1,584
|
|
|
(26%)
|
|
221
|
|
|
(42%)
|
|
1,113
|
|
|
(9%)
|
|
557
|
|
|
(33%)
|
|
3,475
|
|
|
(24%)
|
|
686
|
|
|
(23%)
|
|
4,161
|
|
|
(24%)
|
All Other
Segment
|
10
|
|
|
900%
|
|
1
|
|
|
(83%)
|
|
1
|
|
|
(88%)
|
|
13
|
|
|
8%
|
|
25
|
|
|
(7%)
|
|
81
|
|
|
(4%)
|
|
106
|
|
|
(5%)
|
Corporate Items and
Eliminations
|
(22)
|
|
|
|
|
(2)
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(24)
|
|
|
|
|
(887)
|
|
|
|
|
(911)
|
|
|
|
Machinery, Energy
& Transportation
|
3,840
|
|
|
(31%)
|
|
719
|
|
|
(37%)
|
|
2,294
|
|
|
(14%)
|
|
2,375
|
|
|
(8%)
|
|
9,228
|
|
|
(23%)
|
|
—
|
|
|
—%
|
|
9,228
|
|
|
(23%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
448
|
|
|
(20%)
|
|
63
|
|
|
(20%)
|
|
100
|
|
|
(2%)
|
|
113
|
|
|
(9%)
|
|
724
|
|
|
(16%)
|
|
—
|
|
|
—%
|
|
724
|
|
|
(16%)
|
Corporate Items and
Eliminations
|
(37)
|
|
|
|
|
(10)
|
|
|
|
|
(10)
|
|
|
|
|
(14)
|
|
|
|
|
(71)
|
|
|
|
|
—
|
|
|
|
|
(71)
|
|
|
|
Financial
Products Revenues
|
411
|
|
|
(21%)
|
|
53
|
|
|
(17%)
|
|
90
|
|
|
(4%)
|
|
99
|
|
|
(9%)
|
|
653
|
|
|
(17%)
|
|
—
|
|
|
—%
|
|
653
|
|
|
(17%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
|
4,251
|
|
|
(30%)
|
|
$
|
772
|
|
|
(36%)
|
|
$
|
2,384
|
|
|
(14%)
|
|
$
|
2,474
|
|
|
(8%)
|
|
$
|
9,881
|
|
|
(23%)
|
|
$
|
—
|
|
|
—%
|
|
$
|
9,881
|
|
|
(23%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
Industries
|
$
|
2,728
|
|
|
|
|
$
|
413
|
|
|
|
|
$
|
1,048
|
|
|
|
|
$
|
1,086
|
|
|
|
|
$
|
5,275
|
|
|
|
|
$
|
14
|
|
|
|
|
$
|
5,289
|
|
|
|
Resource
Industries
|
789
|
|
|
|
|
349
|
|
|
|
|
396
|
|
|
|
|
645
|
|
|
|
|
2,179
|
|
|
|
|
131
|
|
|
|
|
2,310
|
|
|
|
Energy &
Transportation
|
2,129
|
|
|
|
|
378
|
|
|
|
|
1,224
|
|
|
|
|
831
|
|
|
|
|
4,562
|
|
|
|
|
890
|
|
|
|
|
5,452
|
|
|
|
All Other
Segment
|
1
|
|
|
|
|
6
|
|
|
|
|
8
|
|
|
|
|
12
|
|
|
|
|
27
|
|
|
|
|
84
|
|
|
|
|
111
|
|
|
|
Corporate Items and
Eliminations
|
(62)
|
|
|
|
|
1
|
|
|
|
|
(7)
|
|
|
|
|
(1)
|
|
|
|
|
(69)
|
|
|
|
|
(1,119)
|
|
|
|
|
(1,188)
|
|
|
|
Machinery, Energy
& Transportation
|
5,585
|
|
|
|
|
1,147
|
|
|
|
|
2,669
|
|
|
|
|
2,573
|
|
|
|
|
11,974
|
|
|
|
|
—
|
|
|
|
|
11,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
560
|
|
|
|
|
79
|
|
|
|
|
102
|
|
|
|
|
124
|
|
|
|
|
865
|
|
|
|
|
—
|
|
|
|
|
865
|
|
|
|
Corporate Items and
Eliminations
|
(43)
|
|
|
|
|
(15)
|
|
|
|
|
(8)
|
|
|
|
|
(15)
|
|
|
|
|
(81)
|
|
|
|
|
—
|
|
|
|
|
(81)
|
|
|
|
Financial
Products Revenues
|
517
|
|
|
|
|
64
|
|
|
|
|
94
|
|
|
|
|
109
|
|
|
|
|
784
|
|
|
|
|
—
|
|
|
|
|
784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Sales
and Revenues
|
$
|
6,102
|
|
|
|
|
$
|
1,211
|
|
|
|
|
$
|
2,763
|
|
|
|
|
$
|
2,682
|
|
|
|
|
$
|
12,758
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
12,758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Operating Profit
Consolidated Operating Profit Comparison
Third Quarter 2020 vs. Third Quarter 2019
To access this chart, go to
https://investors.caterpillar.com/financials/quarterly-results/default.aspx for
the downloadable version of Caterpillar third-quarter 2020
earnings.
The chart above graphically illustrates reasons for the change
in consolidated operating profit between the third quarter of 2019
(at left) and the third quarter of 2020 (at right). Caterpillar
management utilizes these charts internally to visually communicate
with the company's Board of Directors and employees. The bar titled
Other includes consolidating adjustments and Machinery, Energy
& Transportation's other operating (income) expenses.
Operating profit for the third quarter of 2020 was $985 million, a decrease of $1.035 billion, or 51%, compared with
$2.020 billion in the third quarter
of 2019. The decrease was primarily due to lower sales volume.
Favorable selling, general and administrative (SG&A) and
research and development (R&D) expenses were mostly offset by
unfavorable price realization and lower profit from financial
products.
SG&A/R&D expenses benefited from reduced short-term
incentive compensation expense and other cost reductions related to
lower sales volumes.
Profit (Loss) by
Segment
|
(Millions of dollars)
|
Third
Quarter
2020
|
|
Third
Quarter
2019
|
|
$
Change
|
|
%
Change
|
Construction
Industries
|
$
|
585
|
|
|
$
|
940
|
|
|
$
|
(355)
|
|
|
(38%)
|
|
Resource
Industries
|
167
|
|
|
311
|
|
|
(144)
|
|
|
(46%)
|
|
Energy &
Transportation
|
492
|
|
|
1,021
|
|
|
(529)
|
|
|
(52%)
|
|
All Other
Segment
|
27
|
|
|
(21)
|
|
|
48
|
|
|
n/a
|
|
Corporate Items and
Eliminations
|
(346)
|
|
|
(363)
|
|
|
17
|
|
|
|
Machinery, Energy
& Transportation
|
925
|
|
|
1,888
|
|
|
(963)
|
|
|
(51%)
|
|
|
|
|
|
|
|
|
|
Financial Products
Segment
|
142
|
|
|
218
|
|
|
(76)
|
|
|
(35%)
|
|
Corporate Items and
Eliminations
|
(15)
|
|
|
21
|
|
|
(36)
|
|
|
|
Financial
Products
|
127
|
|
|
239
|
|
|
(112)
|
|
|
(47%)
|
|
|
|
|
|
|
|
|
|
Consolidating
Adjustments
|
(67)
|
|
|
(107)
|
|
|
40
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Profit
|
$
|
985
|
|
|
$
|
2,020
|
|
|
$
|
(1,035)
|
|
|
(51%)
|
|
|
|
|
|
|
|
|
|
Other Profit/Loss and Tax Items
- Other income (expense) in the third quarter of 2020 was income
of $14 million, compared with income
of $88 million in the third quarter
of 2019. The change was primarily due to the unfavorable impacts
from foreign currency exchange gains (losses) and lower investment
and interest income.
- The provision for income taxes for the third quarter of 2020
reflected an estimated annual tax rate of 31%, excluding the
discrete items discussed below, compared with 26% for the third
quarter of 2019. The increase in the estimated annual tax rate was
primarily related to changes in the expected geographic mix of
profits from a tax perspective for 2020, including the impact of
U.S. tax on non-U.S. earnings as a result of U.S. tax reform.
In the third quarter of 2020, the
company recorded discrete tax benefits of $80 million to adjust prior year U.S. taxes and
$13 million for the settlement of
stock-based compensation awards with associated tax deductions in
excess of cumulative U.S. GAAP compensation expense. In addition,
the company recorded a $12 million
tax benefit related to the $77
million of remeasurement losses resulting from the
settlements of pension obligations.
CONSTRUCTION
INDUSTRIES
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
2019
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment
|
|
Third
Quarter
2020
|
|
$
Change
|
|
%
Change
|
Total
Sales
|
|
$
|
5,289
|
|
|
$
|
(1,150)
|
|
|
$
|
(60)
|
|
|
$
|
(17)
|
|
|
$
|
(6)
|
|
|
$
|
4,056
|
|
|
$
|
(1,233)
|
|
|
(23%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
2020
|
|
Third
Quarter
2019
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
1,781
|
|
|
$
|
2,728
|
|
|
$
|
(947)
|
|
|
(35%)
|
|
|
|
|
|
|
|
|
|
Latin
America
|
|
230
|
|
|
413
|
|
|
(183)
|
|
|
(44%)
|
|
|
|
|
|
|
|
|
|
EAME
|
|
796
|
|
|
1,048
|
|
|
(252)
|
|
|
(24%)
|
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
|
1,241
|
|
|
1,086
|
|
|
155
|
|
|
14%
|
|
|
|
|
|
|
|
|
|
External
Sales
|
|
4,048
|
|
|
5,275
|
|
|
(1,227)
|
|
|
(23%)
|
|
|
|
|
|
|
|
|
|
Inter-segment
|
|
8
|
|
|
14
|
|
|
(6)
|
|
|
(43%)
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
$
|
4,056
|
|
|
$
|
5,289
|
|
|
$
|
(1,233)
|
|
|
(23%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
2020
|
|
Third
Quarter
2019
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
$
|
585
|
|
|
$
|
940
|
|
|
$
|
(355)
|
|
|
(38%)
|
|
|
|
|
|
|
|
|
|
Segment Profit
Margin
|
|
14.4%
|
|
|
17.8%
|
|
|
(3.4 pts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction Industries' total sales were $4.056 billion in the third quarter of 2020, a
decrease of $1.233 billion, or 23%,
compared with $5.289 billion in the
third quarter of 2019. The decrease was due to lower sales volume,
driven by lower end-user demand and the impact from changes in
dealer inventories. During the third quarter of 2020, dealers
decreased inventories in all regions except for Asia/Pacific where dealers increased
inventories, compared with the third quarter of 2019 when dealer
inventories were about flat in all regions except for Asia/Pacific where dealers decreased
inventories. Overall, dealers decreased inventories more during the
third quarter of 2020 than during the third quarter of 2019.
- In North America, sales
decreased mostly due to lower sales volume driven by lower end-user
demand and the impact from changes in dealer inventories. The lower
end-user demand was driven primarily by pipeline and road
construction.
- Sales declined in Latin
America primarily due to the impact from changes in dealer
inventories and unfavorable currency impacts from a weaker
Brazilian real.
- In EAME, sales decreased mostly because of lower sales volume
across the region, driven by lower end-user demand and the impact
from changes in dealer inventories.
- Sales increased in Asia/Pacific primarily due to the impact of
changes in dealer inventories, partially offset by unfavorable
price realization. The increase in sales was primarily driven by
China demand, which was partially
offset by lower sales in the rest of the region.
Construction Industries' profit was $585
million in the third quarter of 2020, a decrease of
$355 million, or 38%, compared with
$940 million in the third quarter of
2019. The decrease was mainly due to lower sales volume and
unfavorable price realization, partially offset by favorable
manufacturing costs and lower SG&A/R&D expenses. Favorable
manufacturing costs were driven by lower period manufacturing costs
and favorable variable labor and burden. SG&A/R&D expenses
and period manufacturing costs both benefited from cost reductions
related to lower sales volumes.
RESOURCE
INDUSTRIES
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
2019
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment
|
|
Third
Quarter
2020
|
|
$
Change
|
|
%
Change
|
Total
Sales
|
|
$
|
2,310
|
|
|
$
|
(425)
|
|
|
$
|
(46)
|
|
|
$
|
(4)
|
|
|
$
|
(19)
|
|
|
$
|
1,816
|
|
|
$
|
(494)
|
|
|
(21%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
2020
|
|
Third
Quarter
2019
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
487
|
|
|
$
|
789
|
|
|
$
|
(302)
|
|
|
(38%)
|
|
|
|
|
|
|
|
|
|
Latin
America
|
|
269
|
|
|
349
|
|
|
(80)
|
|
|
(23%)
|
|
|
|
|
|
|
|
|
|
EAME
|
|
384
|
|
|
396
|
|
|
(12)
|
|
|
(3%)
|
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
|
564
|
|
|
645
|
|
|
(81)
|
|
|
(13%)
|
|
|
|
|
|
|
|
|
|
External
Sales
|
|
1,704
|
|
|
2,179
|
|
|
(475)
|
|
|
(22%)
|
|
|
|
|
|
|
|
|
|
Inter-segment
|
|
112
|
|
|
131
|
|
|
(19)
|
|
|
(15%)
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
$
|
1,816
|
|
|
$
|
2,310
|
|
|
$
|
(494)
|
|
|
(21%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
2020
|
|
Third
Quarter
2019
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
$
|
167
|
|
|
$
|
311
|
|
|
$
|
(144)
|
|
|
(46%)
|
|
|
|
|
|
|
|
|
|
Segment Profit
Margin
|
|
9.2%
|
|
|
13.5%
|
|
|
(4.3 pts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resource Industries' total sales were $1.816 billion in the third quarter of 2020, a
decrease of $494 million, or 21%,
compared with $2.310 billion in the
third quarter of 2019. The decrease was due to lower sales volume
driven by lower end-user demand for equipment and aftermarket
parts, partially offset by the impact of changes in dealer
inventories. Dealers decreased inventories more during the third
quarter of 2019 than during the third quarter of 2020. End-user
demand was lower across non-residential construction and quarry and
aggregates and mining, primarily in North
America.
Resource Industries' profit was $167
million in the third quarter of 2020, a decrease of
$144 million, or 46%, compared with
$311 million in the third quarter of
2019. The decrease was mainly because of lower sales volume and
unfavorable price realization, partially offset by favorable
manufacturing costs and lower SG&A/R&D expenses. Favorable
manufacturing costs were driven by lower period manufacturing
costs, favorable material costs and lower warranty expense,
partially offset by unfavorable cost absorption. Cost absorption
was unfavorable as inventory increased in the third quarter of
2019, compared with a decrease in the third quarter of 2020.
SG&A/R&D expenses, along with period manufacturing costs,
benefited from lower short-term incentive compensation expense,
other cost-reduction actions implemented in response to lower sales
volumes and benefits from prior restructuring programs.
ENERGY &
TRANSPORTATION
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
2019
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-
Segment
|
|
Third
Quarter
2020
|
|
$
Change
|
|
%
Change
|
Total
Sales
|
|
$
|
5,452
|
|
|
$
|
(1,086)
|
|
|
$
|
(16)
|
|
|
$
|
15
|
|
|
$
|
(204)
|
|
|
$
|
4,161
|
|
|
$
|
(1,291)
|
|
|
(24%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales by
Application
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
2020
|
|
Third
Quarter
2019
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Oil and
Gas
|
|
$
|
734
|
|
|
$
|
1,246
|
|
|
$
|
(512)
|
|
|
(41%)
|
|
|
|
|
|
|
|
|
|
Power
Generation
|
|
1,034
|
|
|
1,123
|
|
|
(89)
|
|
|
(8%)
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
730
|
|
|
980
|
|
|
(250)
|
|
|
(26%)
|
|
|
|
|
|
|
|
|
|
Transportation
|
|
977
|
|
|
1,213
|
|
|
(236)
|
|
|
(19%)
|
|
|
|
|
|
|
|
|
|
External
Sales
|
|
3,475
|
|
|
4,562
|
|
|
(1,087)
|
|
|
(24%)
|
|
|
|
|
|
|
|
|
|
Inter-segment
|
|
686
|
|
|
890
|
|
|
(204)
|
|
|
(23%)
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
$
|
4,161
|
|
|
$
|
5,452
|
|
|
$
|
(1,291)
|
|
|
(24%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
2020
|
|
Third
Quarter
2019
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
$
|
492
|
|
|
$
|
1,021
|
|
|
$
|
(529)
|
|
|
(52%)
|
|
|
|
|
|
|
|
|
|
Segment Profit
Margin
|
|
11.8%
|
|
|
18.7%
|
|
|
(6.9 pts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy & Transportation's total sales were $4.161 billion in the third quarter of 2020, a
decrease of $1.291 billion, or 24%,
compared with $5.452 billion in the
third quarter of 2019. Sales declined across all applications and
inter-segment engine sales.
- Oil and Gas – Sales decreased mainly due to lower demand in
North America for reciprocating
engines used in gas compression and decreased sales of engine
aftermarket parts. In addition, sales were lower for turbines and
turbine-related services.
- Power Generation – Sales decreased primarily due to lower sales
volume in engine aftermarket parts, and small reciprocating engine
applications, as well as turbines and turbine-related services. The
sales decrease was partially offset by an increase in large
reciprocating engine applications, mainly for data centers.
- Industrial – Sales decreased due to lower demand across all
regions.
- Transportation – Sales declined in rail due to lower deliveries
of locomotives and related services, primarily in North America, and in marine due to lower
sales of engine aftermarket parts, primarily in EAME.
Energy & Transportation's profit was $492 million in the third quarter of 2020, a
decrease of $529 million, or 52%,
compared with $1.021 billion in the
third quarter of 2019. The decrease was due to lower sales volume,
partially offset by lower SG&A/R&D expenses and period
manufacturing costs. SG&A/R&D expenses and period
manufacturing costs were mostly impacted by a reduction in
short-term incentive compensation expense and other cost-reduction
actions implemented in response to lower sales volumes. In
addition, segment profit was unfavorably impacted by other
operating income/expense and higher inventory write-downs during
the third quarter of 2020.
FINANCIAL PRODUCTS
SEGMENT
|
(Millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by
Geographic Region
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
2020
|
|
Third
Quarter
2019
|
|
$
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
448
|
|
|
$
|
560
|
|
|
$
|
(112)
|
|
|
(20%)
|
|
|
|
|
|
|
|
|
|
Latin
America
|
|
63
|
|
|
79
|
|
|
(16)
|
|
|
(20%)
|
|
|
|
|
|
|
|
|
|
EAME
|
|
100
|
|
|
102
|
|
|
(2)
|
|
|
(2%)
|
|
|
|
|
|
|
|
|
|
Asia/Pacific
|
|
113
|
|
|
124
|
|
|
(11)
|
|
|
(9%)
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
|
$
|
724
|
|
|
$
|
865
|
|
|
$
|
(141)
|
|
|
(16%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
2020
|
|
Third
Quarter
2019
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
$
|
142
|
|
|
$
|
218
|
|
|
$
|
(76)
|
|
|
(35%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Products' segment revenues were $724 million in the third quarter of 2020, a
decrease of $141 million, or 16%,
from the third quarter of 2019. The decrease was primarily because
of lower average financing rates across all regions and lower
average earning assets primarily in North
America.
Financial Products' segment profit was $142 million in the third quarter of 2020,
compared with $218 million in the
third quarter of 2019. The decrease was due to higher provision for
credit losses, lower net yield on average earning assets and lower
average earning assets at Cat Financial. These unfavorable impacts
were partially offset by a reduction in SG&A expenses primarily
due to lower short-term incentive compensation and employee benefit
expenses.
At the end of the third quarter of 2020, past dues at Cat
Financial were 3.81%, compared with 3.19% at the end of the third
quarter of 2019. Past dues increased primarily due to the impacts
of the COVID-19 pandemic, offset by decreases in the Caterpillar
Power Finance and Latin American portfolios. Write-offs, net
of recoveries, were $125 million for
the third quarter of 2020, compared with $103 million for the third quarter of 2019. As of
September 30, 2020, Cat Financial's
allowance for credit losses totaled $460
million, or 1.74% of finance receivables, compared with
$515 million, or 1.92% of finance
receivables at June 30, 2020. The
decrease in the allowance for credit losses was primarily driven by
write-offs of previously reserved accounts in the Caterpillar Power
Finance portfolio. The allowance for credit losses at year-end 2019
was $424 million, or 1.50% of finance
receivables.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $361 million in the third quarter of 2020, an
increase of $19 million from the
third quarter of 2019, primarily due to higher restructuring costs
and an unfavorable change in fair value adjustments related to
deferred compensation plans, partially offset by lower corporate
costs and segment reporting methodology differences.
Notes
i. Glossary of terms is included on
the Caterpillar website at
https://investors.caterpillar.com/overview/default.aspx.
ii.
End-user demand is demonstrated by the company's Rolling 3 Month
Retail Sales Statistics filed in a Form 8-K on Tuesday, October 27, 2020.
iii.
Information on non-GAAP financial measures is included in the
appendix on page 11.
iv. Some amounts within this
report are rounded to the millions or billions and may not
add.
v. Caterpillar will conduct a teleconference
and live webcast, with a slide presentation, beginning at
7:30 a.m. Central Time on Tuesday,
October 27, 2020, to discuss its 2020 third-quarter results. The
accompanying slides will be available before the webcast on the
Caterpillar website at
https://investors.caterpillar.com/events-presentations/default.aspx.
About Caterpillar
Since 1925, Caterpillar Inc. has been helping our customers
build a better world – making sustainable progress possible and
driving positive change on every continent. With 2019 sales
and revenues of $53.8 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. Services offered
throughout the product life cycle, cutting-edge technology and
decades of product expertise set Caterpillar apart, providing
exceptional value to help our customers succeed. The
company principally operates through three primary segments –
Construction Industries, Resource Industries and Energy &
Transportation – and provides financing and related services
through its Financial Products segment. For more information,
visit caterpillar.com. To connect on social media, visit
caterpillar.com/social-media.
Caterpillar's latest financial results are also available
online:
https://investors.caterpillar.com/overview/default.aspx
https://investors.caterpillar.com/financials/quarterly-results/default.aspx (live
broadcast/replays of quarterly conference call)
Forward-Looking Statements
Certain statements in this press release relate to future events
and expectations and are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "believe," "estimate," "will be," "will," "would,"
"expect," "anticipate," "plan," "forecast," "target," "guide,"
"project," "intend," "could," "should" or other similar words or
expressions often identify forward-looking statements. All
statements other than statements of historical fact are
forward-looking statements, including, without limitation,
statements regarding our outlook, projections, forecasts or trend
descriptions. These statements do not guarantee future performance
and speak only as of the date they are made, and we do not
undertake to update our forward-looking statements.
Caterpillar's actual results may differ materially from those
described or implied in our forward-looking statements based on a
number of factors, including, but not limited to: (i) global and
regional economic conditions and economic conditions in the
industries we serve; (ii) commodity price changes, material price
increases, fluctuations in demand for our products or significant
shortages of material; (iii) government monetary or fiscal
policies; (iv) political and economic risks, commercial instability
and events beyond our control in the countries in which we operate;
(v) international trade policies and their impact on demand for our
products and our competitive position, including the imposition of
new tariffs or changes in existing tariff rates; (vi) our ability
to develop, produce and market quality products that meet our
customers' needs; (vii) the impact of the highly competitive
environment in which we operate on our sales and pricing; (viii)
information technology security threats and computer crime; (ix)
inventory management decisions and sourcing practices of our
dealers and our OEM customers; (x) a failure to realize, or a delay
in realizing, all of the anticipated benefits of our acquisitions,
joint ventures or divestitures; (xi) union disputes or other
employee relations issues; (xii) adverse effects of unexpected
events; (xiii) disruptions or volatility in global financial
markets limiting our sources of liquidity or the liquidity of our
customers, dealers and suppliers; (xiv) failure to maintain our
credit ratings and potential resulting increases to our cost of
borrowing and adverse effects on our cost of funds, liquidity,
competitive position and access to capital markets; (xv) our
Financial Products segment's risks associated with the financial
services industry; (xvi) changes in interest rates or market
liquidity conditions; (xvii) an increase in delinquencies,
repossessions or net losses of Cat Financial's customers; (xviii)
currency fluctuations; (xix) our or Cat Financial's compliance with
financial and other restrictive covenants in debt agreements; (xx)
increased pension plan funding obligations; (xxi) alleged or actual
violations of trade or anti-corruption laws and regulations; (xxii)
additional tax expense or exposure, including the impact of U.S.
tax reform; (xxiii) significant legal proceedings, claims, lawsuits
or government investigations; (xxiv) new regulations or changes in
financial services regulations; (xxv) compliance with environmental
laws and regulations; (xxvi) the duration and geographic spread of,
business disruptions caused by, and the overall global economic
impact of, the COVID-19 pandemic; and (xxvii) other factors
described in more detail in Caterpillar's Forms 10-Q, 10-K and
other filings with the Securities and Exchange Commission.
APPENDIX
NON-GAAP FINANCIAL MEASURES
The following definitions are provided for the non-GAAP
financial measures. These non-GAAP financial measures have no
standardized meaning prescribed by U.S. GAAP and therefore are
unlikely to be comparable to the calculation of similar measures
for other companies. Management does not intend these items to
be considered in isolation or as a substitute for the related GAAP
measures.
Adjusted Profit Per Share
The company believes it is important to separately quantify the
profit impact of a significant item in order for the company's
results to be meaningful to readers. This item is remeasurement
losses resulting from the settlements of pension obligations in the
third quarter of 2020. The company does not consider this item
indicative of earnings from ongoing business activities and
believes the non-GAAP measure provides investors with useful
perspective on underlying business results and trends and aids with
assessing the company's period-over-period results. The company
intends to discuss adjusted profit per share for the fourth quarter
and full-year 2020, excluding mark-to-market gains or losses for
remeasurement of pension and other postemployment benefit plans
along with any other discrete items.
Reconciliations of adjusted profit per share to the most
directly comparable GAAP measure, diluted profit per share, are as
follows:
|
Third
Quarter
|
|
|
|
|
2020
|
|
2019
|
|
|
|
Profit per
share
|
$
|
1.22
|
|
|
$
|
2.66
|
|
|
|
|
Per share
remeasurement losses of pension obligations1
|
$
|
0.12
|
|
|
$
|
—
|
|
|
|
|
Adjusted profit per
share
|
$
|
1.34
|
|
|
$
|
2.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 At
statutory tax rates.
|
Note: On March 26,
2020, the company withdrew its previous financial outlook due to
the continued global economic uncertainty related to the COVID-19
pandemic.
|
|
Supplemental Consolidating Data
The company is providing supplemental consolidating data for the
purpose of additional analysis. The data has been grouped as
follows:
Consolidated – Caterpillar Inc. and its subsidiaries.
Machinery, Energy & Transportation (ME&T) –
The company defines ME&T as it is presented in the supplemental
data as Caterpillar Inc. and its subsidiaries, excluding Financial
Products. ME&T's information relates to the design,
manufacturing and marketing of its products.
Financial Products – The company defines Financial
Products as it is presented in the supplemental data as its finance
and insurance subsidiaries, primarily Cat Financial and Insurance
Services. Financial Products' information relates to the financing
to customers and dealers for the purchase and lease of Caterpillar
and other equipment.
Consolidating Adjustments – Eliminations of
transactions between ME&T and Financial Products.
The nature of the ME&T and Financial Products businesses is
different, especially with regard to the financial position and
cash flow items. Caterpillar management utilizes this presentation
internally to highlight these differences. The company believes
this presentation will assist readers in understanding its
business.
Pages 12 to 22 reconcile ME&T and Financial Products to
Caterpillar Inc. consolidated financial information.
Caterpillar
Inc.
|
Condensed
Consolidated Statement of Results of Operations
|
(Unaudited)
|
(Dollars in
millions except per share data)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Sales and
revenues:
|
|
|
|
|
|
|
|
Sales of
Machinery, Energy & Transportation
|
$
|
9,228
|
|
|
$
|
11,974
|
|
|
$
|
28,452
|
|
|
$
|
38,369
|
|
Revenues of
Financial Products
|
653
|
|
|
784
|
|
|
2,061
|
|
|
2,287
|
|
Total sales and
revenues
|
9,881
|
|
|
12,758
|
|
|
30,513
|
|
|
40,656
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
Cost of goods
sold
|
6,919
|
|
|
8,569
|
|
|
21,298
|
|
|
27,513
|
|
Selling,
general and administrative expenses
|
1,126
|
|
|
1,251
|
|
|
3,426
|
|
|
3,879
|
|
Research and
development expenses
|
344
|
|
|
431
|
|
|
1,041
|
|
|
1,307
|
|
Interest
expense of Financial Products
|
137
|
|
|
189
|
|
|
461
|
|
|
571
|
|
Other operating
(income) expenses
|
370
|
|
|
298
|
|
|
1,114
|
|
|
946
|
|
Total operating
costs
|
8,896
|
|
|
10,738
|
|
|
27,340
|
|
|
34,216
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
985
|
|
|
2,020
|
|
|
3,173
|
|
|
6,440
|
|
|
|
|
|
|
|
|
|
Interest
expense excluding Financial Products
|
136
|
|
|
103
|
|
|
384
|
|
|
309
|
|
Other income
(expense)
|
14
|
|
|
88
|
|
|
265
|
|
|
316
|
|
|
|
|
|
|
|
|
|
Consolidated profit
before taxes
|
863
|
|
|
2,005
|
|
|
3,054
|
|
|
6,447
|
|
|
|
|
|
|
|
|
|
Provision
(benefit) for income taxes
|
187
|
|
|
518
|
|
|
839
|
|
|
1,470
|
|
Profit of
consolidated companies
|
676
|
|
|
1,487
|
|
|
2,215
|
|
|
4,977
|
|
|
|
|
|
|
|
|
|
Equity in
profit (loss) of unconsolidated affiliated companies
|
(5)
|
|
|
7
|
|
|
8
|
|
|
20
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
671
|
|
|
1,494
|
|
|
2,223
|
|
|
4,997
|
|
|
|
|
|
|
|
|
|
Less: Profit (loss)
attributable to noncontrolling interests
|
3
|
|
|
—
|
|
|
5
|
|
|
2
|
|
|
|
|
|
|
|
|
|
Profit
1
|
$
|
668
|
|
|
$
|
1,494
|
|
|
$
|
2,218
|
|
|
$
|
4,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit per common
share
|
$
|
1.23
|
|
|
$
|
2.69
|
|
|
$
|
4.08
|
|
|
$
|
8.84
|
|
Profit per common
share — diluted 2
|
$
|
1.22
|
|
|
$
|
2.66
|
|
|
$
|
4.05
|
|
|
$
|
8.75
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding (millions)
|
|
|
|
|
|
|
|
–
Basic
|
542.3
|
|
|
556.3
|
|
|
543.9
|
|
|
565.2
|
|
– Diluted
2
|
546.4
|
|
|
561.2
|
|
|
547.8
|
|
|
570.8
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Profit attributable
to common shareholders.
|
2
|
Diluted by assumed
exercise of stock-based compensation awards using the treasury
stock method.
|
Caterpillar
Inc.
|
Condensed
Consolidated Statement of Financial Position
|
(Unaudited)
|
(Millions of
dollars)
|
|
|
September
30,
2020
|
|
December
31,
2019
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and short-term
investments
|
$
|
9,315
|
|
|
$
|
8,284
|
|
Receivables – trade
and other
|
6,969
|
|
|
8,568
|
|
Receivables –
finance
|
8,966
|
|
|
9,336
|
|
Prepaid expenses and
other current assets
|
1,831
|
|
|
1,739
|
|
Inventories
|
11,453
|
|
|
11,266
|
|
Total current
assets
|
38,534
|
|
|
39,193
|
|
|
|
|
|
Property, plant and
equipment – net
|
12,232
|
|
|
12,904
|
|
Long-term receivables
– trade and other
|
1,149
|
|
|
1,193
|
|
Long-term receivables
– finance
|
12,209
|
|
|
12,651
|
|
Noncurrent deferred
and refundable income taxes
|
1,440
|
|
|
1,411
|
|
Intangible
assets
|
1,363
|
|
|
1,565
|
|
Goodwill
|
6,304
|
|
|
6,196
|
|
Other
assets
|
3,510
|
|
|
3,340
|
|
Total
assets
|
$
|
76,741
|
|
|
$
|
78,453
|
|
|
|
|
|
Liabilities
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
borrowings:
|
|
|
|
-- Machinery, Energy
& Transportation
|
$
|
—
|
|
|
$
|
5
|
|
-- Financial
Products
|
2,660
|
|
|
5,161
|
|
Accounts
payable
|
5,193
|
|
|
5,957
|
|
Accrued
expenses
|
3,510
|
|
|
3,750
|
|
Accrued wages,
salaries and employee benefits
|
1,069
|
|
|
1,629
|
|
Customer
advances
|
1,209
|
|
|
1,187
|
|
Dividends
payable
|
—
|
|
|
567
|
|
Other current
liabilities
|
1,978
|
|
|
2,155
|
|
Long-term debt due
within one year:
|
|
|
|
-- Machinery, Energy
& Transportation
|
1,397
|
|
|
16
|
|
-- Financial
Products
|
7,962
|
|
|
6,194
|
|
Total current
liabilities
|
24,978
|
|
|
26,621
|
|
|
|
|
|
Long-term debt due
after one year:
|
|
|
|
-- Machinery, Energy
& Transportation
|
9,742
|
|
|
9,141
|
|
-- Financial
Products
|
16,365
|
|
|
17,140
|
|
Liability for
postemployment benefits
|
6,254
|
|
|
6,599
|
|
Other
liabilities
|
4,408
|
|
|
4,323
|
|
Total
liabilities
|
61,747
|
|
|
63,824
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Common
stock
|
6,204
|
|
|
5,935
|
|
Treasury
stock
|
(25,315)
|
|
|
(24,217)
|
|
Profit employed in the
business
|
35,508
|
|
|
34,437
|
|
Accumulated other
comprehensive income (loss)
|
(1,448)
|
|
|
(1,567)
|
|
Noncontrolling
interests
|
45
|
|
|
41
|
|
Total
shareholders' equity
|
14,994
|
|
|
14,629
|
|
Total liabilities
and shareholders' equity
|
$
|
76,741
|
|
|
$
|
78,453
|
|
Caterpillar
Inc.
|
Condensed
Consolidated Statement of Cash Flow
|
(Unaudited)
|
(Millions of
dollars)
|
|
|
Nine Months
Ended
September 30,
|
|
2020
|
|
2019
|
Cash flow from
operating activities:
|
|
|
|
Profit of consolidated
and affiliated companies
|
$
|
2,223
|
|
|
$
|
4,997
|
|
Adjustments for
non-cash items:
|
|
|
|
Depreciation and
amortization
|
1,815
|
|
|
1,933
|
|
Net gain on
remeasurement of pension obligations
|
(55)
|
|
|
—
|
|
Provision (benefit)
for deferred income taxes
|
(38)
|
|
|
(13)
|
|
Other
|
919
|
|
|
627
|
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
Receivables – trade
and other
|
1,473
|
|
|
427
|
|
Inventories
|
(139)
|
|
|
(676)
|
|
Accounts
payable
|
(596)
|
|
|
(669)
|
|
Accrued
expenses
|
(286)
|
|
|
114
|
|
Accrued wages,
salaries and employee benefits
|
(547)
|
|
|
(858)
|
|
Customer
advances
|
13
|
|
|
169
|
|
Other assets –
net
|
(15)
|
|
|
19
|
|
Other liabilities –
net
|
(512)
|
|
|
(1,592)
|
|
Net cash provided by
(used for) operating activities
|
4,255
|
|
|
4,478
|
|
Cash flow from
investing activities:
|
|
|
|
Capital expenditures –
excluding equipment leased to others
|
(686)
|
|
|
(723)
|
|
Expenditures for
equipment leased to others
|
(805)
|
|
|
(1,133)
|
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
550
|
|
|
812
|
|
Additions to finance
receivables
|
(9,278)
|
|
|
(9,453)
|
|
Collections of finance
receivables
|
9,656
|
|
|
9,144
|
|
Proceeds from sale of
finance receivables
|
37
|
|
|
183
|
|
Investments and
acquisitions (net of cash acquired)
|
(93)
|
|
|
(6)
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
13
|
|
|
3
|
|
Proceeds from sale of
securities
|
239
|
|
|
281
|
|
Investments in
securities
|
(512)
|
|
|
(425)
|
|
Other – net
|
(80)
|
|
|
(37)
|
|
Net cash provided by
(used for) investing activities
|
(959)
|
|
|
(1,354)
|
|
Cash flow from
financing activities:
|
|
|
|
Dividends
paid
|
(1,683)
|
|
|
(1,564)
|
|
Common stock issued,
including treasury shares reissued
|
110
|
|
|
59
|
|
Common shares
repurchased
|
(1,130)
|
|
|
(3,283)
|
|
Proceeds from debt
issued (original maturities greater than three months)
|
9,418
|
|
|
8,827
|
|
Payments on debt
(original maturities greater than three months)
|
(6,789)
|
|
|
(6,062)
|
|
Short-term borrowings
– net (original maturities three months or less)
|
(2,138)
|
|
|
(1,006)
|
|
Other – net
|
(1)
|
|
|
(2)
|
|
Net cash provided by
(used for) financing activities
|
(2,213)
|
|
|
(3,031)
|
|
Effect of exchange
rate changes on cash
|
(56)
|
|
|
(47)
|
|
Increase
(decrease) in cash and short-term investments and restricted
cash
|
1,027
|
|
|
46
|
|
Cash and short-term
investments and restricted cash at beginning of period
|
8,292
|
|
|
7,890
|
|
Cash and short-term
investments and restricted cash at end of period
|
$
|
9,319
|
|
|
$
|
7,936
|
|
|
All short-term
investments, which consist primarily of highly liquid investments
with original maturities of three months or less, are considered to
be cash equivalents.
|
Caterpillar
Inc.
|
Supplemental Data
for Results of Operations
|
For the Three
Months Ended September 30, 2020
|
(Unaudited)
|
(Millions of
dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
Consolidated
|
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
9,228
|
|
|
$
|
9,228
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
653
|
|
|
—
|
|
|
740
|
|
|
(87)
|
|
1
|
Total sales and
revenues
|
9,881
|
|
|
9,228
|
|
|
740
|
|
|
(87)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
6,919
|
|
|
6,921
|
|
|
—
|
|
|
(2)
|
|
2
|
Selling, general and
administrative expenses
|
1,126
|
|
|
943
|
|
|
189
|
|
|
(6)
|
|
2
|
Research and
development expenses
|
344
|
|
|
344
|
|
|
—
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
137
|
|
|
—
|
|
|
137
|
|
|
—
|
|
|
Other operating
(income) expenses
|
370
|
|
|
95
|
|
|
287
|
|
|
(12)
|
|
2
|
Total operating
costs
|
8,896
|
|
|
8,303
|
|
|
613
|
|
|
(20)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
985
|
|
|
925
|
|
|
127
|
|
|
(67)
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
136
|
|
|
136
|
|
|
—
|
|
|
—
|
|
|
Other income
(expense)
|
14
|
|
|
(62)
|
|
|
9
|
|
|
67
|
|
3
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
863
|
|
|
727
|
|
|
136
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
187
|
|
|
133
|
|
|
54
|
|
|
—
|
|
|
Profit of consolidated
companies
|
676
|
|
|
594
|
|
|
82
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
(5)
|
|
|
(4)
|
|
|
—
|
|
|
(1)
|
|
4
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
671
|
|
|
590
|
|
|
82
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit (loss)
attributable to noncontrolling interests
|
3
|
|
|
—
|
|
|
4
|
|
|
(1)
|
|
5
|
|
|
|
|
|
|
|
|
|
Profit
6
|
$
|
668
|
|
|
$
|
590
|
|
|
$
|
78
|
|
|
$
|
—
|
|
|
|
1
|
Elimination of
Financial Products' revenues earned from ME&T.
|
2
|
Elimination of net
expenses recorded by ME&T paid to Financial
Products.
|
3
|
Elimination of
discount recorded by ME&T on receivables sold to Financial
Products and of interest earned between ME&T and Financial
Products as well as dividends paid by Financial Products to
ME&T.
|
4
|
Elimination of equity
profit (loss) earned from Financial Products' subsidiaries
partially owned by ME&T subsidiaries.
|
5
|
Elimination of
noncontrolling interest profit (loss) recorded by Financial
Products for subsidiaries partially owned by ME&T
subsidiaries.
|
6
|
Profit attributable
to common shareholders.
|
Caterpillar
Inc.
|
Supplemental Data
for Results of Operations
|
For the Three
Months Ended September 30, 2019
|
(Unaudited)
|
(Millions of
dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
Consolidated
|
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
11,974
|
|
|
$
|
11,974
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
784
|
|
|
—
|
|
|
920
|
|
|
(136)
|
|
1
|
Total sales and
revenues
|
12,758
|
|
|
11,974
|
|
|
920
|
|
|
(136)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
8,569
|
|
|
8,569
|
|
|
—
|
|
|
—
|
|
|
Selling, general and
administrative expenses
|
1,251
|
|
|
1,095
|
|
|
163
|
|
|
(7)
|
|
2
|
Research and
development expenses
|
431
|
|
|
431
|
|
|
—
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
189
|
|
|
—
|
|
|
198
|
|
|
(9)
|
|
3
|
Other operating
(income) expenses
|
298
|
|
|
(9)
|
|
|
320
|
|
|
(13)
|
|
2
|
Total operating
costs
|
10,738
|
|
|
10,086
|
|
|
681
|
|
|
(29)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
2,020
|
|
|
1,888
|
|
|
239
|
|
|
(107)
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
103
|
|
|
103
|
|
|
—
|
|
|
—
|
|
|
Other income
(expense)
|
88
|
|
|
(27)
|
|
|
8
|
|
|
107
|
|
4
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
2,005
|
|
|
1,758
|
|
|
247
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
518
|
|
|
457
|
|
|
61
|
|
|
—
|
|
|
Profit of consolidated
companies
|
1,487
|
|
|
1,301
|
|
|
186
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
7
|
|
|
12
|
|
|
—
|
|
|
(5)
|
|
5
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
1,494
|
|
|
1,313
|
|
|
186
|
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit (loss)
attributable to noncontrolling interests
|
—
|
|
|
(1)
|
|
|
6
|
|
|
(5)
|
|
6
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
1,494
|
|
|
$
|
1,314
|
|
|
$
|
180
|
|
|
$
|
—
|
|
|
|
1
|
Elimination of
Financial Products' revenues earned from ME&T.
|
2
|
Elimination of net
expenses recorded by ME&T paid to Financial
Products.
|
3
|
Elimination of
interest expense recorded between Financial Products and
ME&T.
|
4
|
Elimination of
discount recorded by ME&T on receivables sold to Financial
Products and of interest earned between ME&T and Financial
Products as well as dividends paid by Financial Products to
ME&T.
|
5
|
Elimination of equity
profit (loss) earned from Financial Products' subsidiaries
partially owned by ME&T subsidiaries.
|
6
|
Elimination of
noncontrolling interest profit (loss) recorded by Financial
Products for subsidiaries partially owned by ME&T
subsidiaries.
|
7
|
Profit attributable
to common shareholders.
|
Caterpillar
Inc.
|
Supplemental Data
for Results of Operations
|
For the Nine
Months Ended September 30, 2020
|
(Unaudited)
|
(Millions of
dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
Consolidated
|
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
28,452
|
|
|
$
|
28,452
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
2,061
|
|
|
—
|
|
|
2,350
|
|
|
(289)
|
|
1
|
Total sales and
revenues
|
30,513
|
|
|
28,452
|
|
|
2,350
|
|
|
(289)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
21,298
|
|
|
21,302
|
|
|
—
|
|
|
(4)
|
|
2
|
Selling, general and
administrative expenses
|
3,426
|
|
|
2,867
|
|
|
572
|
|
|
(13)
|
|
2
|
Research and
development expenses
|
1,041
|
|
|
1,041
|
|
|
—
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
461
|
|
|
—
|
|
|
462
|
|
|
(1)
|
|
3
|
Other operating
(income) expenses
|
1,114
|
|
|
227
|
|
|
927
|
|
|
(40)
|
|
2
|
Total operating
costs
|
27,340
|
|
|
25,437
|
|
|
1,961
|
|
|
(58)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
3,173
|
|
|
3,015
|
|
|
389
|
|
|
(231)
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
384
|
|
|
383
|
|
|
—
|
|
|
1
|
|
3
|
Other income
(expense)
|
265
|
|
|
60
|
|
|
(7)
|
|
|
212
|
|
4
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
3,054
|
|
|
2,692
|
|
|
382
|
|
|
(20)
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
839
|
|
|
720
|
|
|
119
|
|
|
—
|
|
|
Profit of consolidated
companies
|
2,215
|
|
|
1,972
|
|
|
263
|
|
|
(20)
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
8
|
|
|
18
|
|
|
—
|
|
|
(10)
|
|
5
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
2,223
|
|
|
1,990
|
|
|
263
|
|
|
(30)
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit (loss)
attributable to noncontrolling interests
|
5
|
|
|
2
|
|
|
13
|
|
|
(10)
|
|
6
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
2,218
|
|
|
$
|
1,988
|
|
|
$
|
250
|
|
|
$
|
(20)
|
|
|
|
1
|
Elimination of
Financial Products' revenues earned from ME&T.
|
2
|
Elimination of net
expenses recorded by ME&T paid to Financial
Products.
|
3
|
Elimination of
interest expense recorded between Financial Products and
ME&T.
|
4
|
Elimination of
discount recorded by ME&T on receivables sold to Financial
Products and of interest earned between ME&T and Financial
Products as well as dividends paid by Financial Products to
ME&T.
|
5
|
Elimination of equity
profit (loss) earned from Financial Products' subsidiaries
partially owned by ME&T subsidiaries.
|
6
|
Elimination of
noncontrolling interest profit (loss) recorded by Financial
Products for subsidiaries partially owned by ME&T
subsidiaries.
|
7
|
Profit attributable
to common shareholders.
|
Caterpillar
Inc.
|
Supplemental Data
for Results of Operations
|
For the Nine
Months Ended September 30, 2019
|
(Unaudited)
|
(Millions of
dollars)
|
|
|
|
|
Supplemental
Consolidating Data
|
|
|
Consolidated
|
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Sales and
revenues:
|
|
|
|
|
|
|
|
|
Sales of Machinery,
Energy & Transportation
|
$
|
38,369
|
|
|
$
|
38,369
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Revenues of Financial
Products
|
2,287
|
|
|
—
|
|
|
2,684
|
|
|
(397)
|
|
1
|
|
Total sales and
revenues
|
40,656
|
|
|
38,369
|
|
|
2,684
|
|
|
(397)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
27,513
|
|
|
27,515
|
|
|
—
|
|
|
(2)
|
|
2
|
|
Selling, general and
administrative expenses
|
3,879
|
|
|
3,324
|
|
|
564
|
|
|
(9)
|
|
2
|
|
Research and
development expenses
|
1,307
|
|
|
1,307
|
|
|
—
|
|
|
—
|
|
|
Interest expense of
Financial Products
|
571
|
|
|
—
|
|
|
599
|
|
|
(28)
|
|
3
|
|
Other operating
(income) expenses
|
946
|
|
|
2
|
|
|
974
|
|
|
(30)
|
|
2
|
|
Total operating
costs
|
34,216
|
|
|
32,148
|
|
|
2,137
|
|
|
(69)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
6,440
|
|
|
6,221
|
|
|
547
|
|
|
(328)
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
excluding Financial Products
|
309
|
|
|
318
|
|
|
—
|
|
|
(9)
|
|
3
|
|
Other income
(expense)
|
316
|
|
|
(71)
|
|
|
68
|
|
|
319
|
|
4
|
|
|
|
|
|
|
|
|
|
|
Consolidated
profit before taxes
|
6,447
|
|
|
5,832
|
|
|
615
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
1,470
|
|
|
1,294
|
|
|
176
|
|
|
—
|
|
|
Profit of consolidated
companies
|
4,977
|
|
|
4,538
|
|
|
439
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Equity in profit
(loss) of unconsolidated affiliated companies
|
20
|
|
|
36
|
|
|
—
|
|
|
(16)
|
|
5
|
|
|
|
|
|
|
|
|
|
|
Profit of
consolidated and affiliated companies
|
4,997
|
|
|
4,574
|
|
|
439
|
|
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
Less: Profit (loss)
attributable to noncontrolling interests
|
2
|
|
|
1
|
|
|
17
|
|
|
(16)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
Profit
7
|
$
|
4,995
|
|
|
$
|
4,573
|
|
|
$
|
422
|
|
|
$
|
—
|
|
|
|
1
|
Elimination of
Financial Products' revenues earned from ME&T.
|
2
|
Elimination of net
expenses recorded by ME&T paid to Financial
Products.
|
3
|
Elimination of
interest expense recorded between Financial Products and
ME&T.
|
4
|
Elimination of
discount recorded by ME&T on receivables sold to Financial
Products and of interest earned between ME&T and Financial
Products as well as dividends paid by Financial Products to
ME&T.
|
5
|
Elimination of equity
profit (loss) earned from Financial Products' subsidiaries
partially owned by ME&T subsidiaries.
|
6
|
Elimination of
noncontrolling interest profit (loss) recorded by Financial
Products for subsidiaries partially owned by ME&T
subsidiaries.
|
7
|
Profit attributable
to common shareholders.
|
Caterpillar
Inc.
|
Supplemental Data
for Financial Position
|
At
September 30, 2020
|
(Unaudited)
|
(Millions of
dollars)
|
|
|
|
|
Supplemental Consolidating Data
|
|
|
Consolidated
|
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
$
|
9,315
|
|
|
$
|
8,512
|
|
|
$
|
803
|
|
|
$
|
—
|
|
|
Receivables – trade
and other
|
6,969
|
|
|
2,484
|
|
|
497
|
|
|
3,988
|
|
1,2
|
Receivables –
finance
|
8,966
|
|
|
—
|
|
|
13,120
|
|
|
(4,154)
|
|
2
|
Prepaid expenses and
other current assets
|
1,831
|
|
|
1,372
|
|
|
634
|
|
|
(175)
|
|
3
|
Inventories
|
11,453
|
|
|
11,453
|
|
|
—
|
|
|
—
|
|
|
Total current
assets
|
38,534
|
|
|
23,821
|
|
|
15,054
|
|
|
(341)
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment – net
|
12,232
|
|
|
8,156
|
|
|
4,076
|
|
|
—
|
|
|
Long-term receivables
– trade and other
|
1,149
|
|
|
294
|
|
|
181
|
|
|
674
|
|
1,2
|
Long-term receivables
– finance
|
12,209
|
|
|
—
|
|
|
12,900
|
|
|
(691)
|
|
2
|
Noncurrent deferred
and refundable income taxes
|
1,440
|
|
|
1,979
|
|
|
101
|
|
|
(640)
|
|
4
|
Intangible
assets
|
1,363
|
|
|
1,363
|
|
|
—
|
|
|
—
|
|
|
Goodwill
|
6,304
|
|
|
6,304
|
|
|
—
|
|
|
—
|
|
|
Other
assets
|
3,510
|
|
|
2,887
|
|
|
1,815
|
|
|
(1,192)
|
|
5
|
Total
assets
|
$
|
76,741
|
|
|
$
|
44,804
|
|
|
$
|
34,127
|
|
|
$
|
(2,190)
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
$
|
2,660
|
|
|
$
|
—
|
|
|
$
|
2,660
|
|
|
$
|
—
|
|
|
Short-term borrowings
with consolidated companies
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Accounts
payable
|
5,193
|
|
|
5,174
|
|
|
187
|
|
|
(168)
|
|
6
|
Accrued
expenses
|
3,510
|
|
|
3,131
|
|
|
379
|
|
|
—
|
|
|
Accrued wages,
salaries and employee benefits
|
1,069
|
|
|
1,055
|
|
|
14
|
|
|
—
|
|
|
Customer
advances
|
1,209
|
|
|
1,209
|
|
|
—
|
|
|
—
|
|
|
Dividends
payable
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Other current
liabilities
|
1,978
|
|
|
1,509
|
|
|
666
|
|
|
(197)
|
|
4,7
|
Long-term debt due
within one year
|
9,359
|
|
|
1,397
|
|
|
7,962
|
|
|
—
|
|
|
Total current
liabilities
|
24,978
|
|
|
13,475
|
|
|
11,868
|
|
|
(365)
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt due
after one year
|
26,107
|
|
|
9,757
|
|
|
16,365
|
|
|
(15)
|
|
8
|
Liability for
postemployment benefits
|
6,254
|
|
|
6,253
|
|
|
1
|
|
|
—
|
|
|
Other
liabilities
|
4,408
|
|
|
3,739
|
|
|
1,384
|
|
|
(715)
|
|
4
|
Total
liabilities
|
61,747
|
|
|
33,224
|
|
|
29,618
|
|
|
(1,095)
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
Common
stock
|
6,204
|
|
|
6,204
|
|
|
919
|
|
|
(919)
|
|
9
|
Treasury
stock
|
(25,315)
|
|
|
(25,315)
|
|
|
—
|
|
|
—
|
|
|
Profit employed in the
business
|
35,508
|
|
|
31,285
|
|
|
4,214
|
|
|
9
|
|
9
|
Accumulated other
comprehensive income (loss)
|
(1,448)
|
|
|
(636)
|
|
|
(812)
|
|
|
—
|
|
|
Noncontrolling
interests
|
45
|
|
|
42
|
|
|
188
|
|
|
(185)
|
|
9
|
Total
shareholders' equity
|
14,994
|
|
|
11,580
|
|
|
4,509
|
|
|
(1,095)
|
|
|
Total liabilities
and shareholders' equity
|
$
|
76,741
|
|
|
$
|
44,804
|
|
|
$
|
34,127
|
|
|
$
|
(2,190)
|
|
|
|
|
1
|
Elimination of
receivables between ME&T and Financial Products.
|
2
|
Reclassification
of ME&T's trade receivables purchased by Financial
Products and Financial Products' wholesale inventory
receivables.
|
3
|
Elimination of
ME&T's insurance premiums that are prepaid to Financial
Products.
|
4
|
Reclassification
reflecting required netting of deferred tax assets/liabilities by
taxing jurisdiction.
|
5
|
Elimination of other
intercompany assets between ME&T and Financial
Products.
|
6
|
Elimination of
payables between ME&T and Financial Products.
|
7
|
Elimination of
prepaid insurance in Financial Products' other
liabilities.
|
8
|
Elimination of debt
between ME&T and Financial Products.
|
9
|
Eliminations
associated with ME&T's investments in Financial Products'
subsidiaries.
|
Caterpillar
Inc.
|
Supplemental Data
for Financial Position
|
At
December 31, 2019
|
(Unaudited)
|
(Millions of
dollars)
|
|
|
|
|
Supplemental Consolidating Data
|
|
|
Consolidated
|
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
$
|
8,284
|
|
|
$
|
7,299
|
|
|
$
|
985
|
|
|
$
|
—
|
|
|
Receivables – trade
and other
|
8,568
|
|
|
3,737
|
|
|
451
|
|
|
4,380
|
|
1,2
|
Receivables –
finance
|
9,336
|
|
|
—
|
|
|
14,489
|
|
|
(5,153)
|
|
2
|
Prepaid expenses and
other current assets
|
1,739
|
|
|
1,290
|
|
|
529
|
|
|
(80)
|
|
3
|
Inventories
|
11,266
|
|
|
11,266
|
|
|
—
|
|
|
—
|
|
|
Total current
assets
|
39,193
|
|
|
23,592
|
|
|
16,454
|
|
|
(853)
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment – net
|
12,904
|
|
|
8,606
|
|
|
4,298
|
|
|
—
|
|
|
Long-term receivables
– trade and other
|
1,193
|
|
|
348
|
|
|
152
|
|
|
693
|
|
1,2
|
Long-term receivables
– finance
|
12,651
|
|
|
—
|
|
|
13,354
|
|
|
(703)
|
|
2
|
Noncurrent deferred
and refundable income taxes
|
1,411
|
|
|
2,002
|
|
|
117
|
|
|
(708)
|
|
4
|
Intangible
assets
|
1,565
|
|
|
1,565
|
|
|
—
|
|
|
—
|
|
|
Goodwill
|
6,196
|
|
|
6,196
|
|
|
—
|
|
|
—
|
|
|
Other
assets
|
3,340
|
|
|
2,953
|
|
|
1,572
|
|
|
(1,185)
|
|
5
|
Total
assets
|
$
|
78,453
|
|
|
$
|
45,262
|
|
|
$
|
35,947
|
|
|
$
|
(2,756)
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
$
|
5,166
|
|
|
$
|
5
|
|
|
$
|
5,161
|
|
|
$
|
—
|
|
|
Short-term borrowings
with consolidated companies
|
—
|
|
|
—
|
|
|
600
|
|
|
(600)
|
|
6
|
Accounts
payable
|
5,957
|
|
|
5,918
|
|
|
212
|
|
|
(173)
|
|
7
|
Accrued
expenses
|
3,750
|
|
|
3,415
|
|
|
335
|
|
|
—
|
|
|
Accrued wages,
salaries and employee benefits
|
1,629
|
|
|
1,580
|
|
|
49
|
|
|
—
|
|
|
Customer
advances
|
1,187
|
|
|
1,187
|
|
|
—
|
|
|
—
|
|
|
Dividends
payable
|
567
|
|
|
567
|
|
|
—
|
|
|
—
|
|
|
Other current
liabilities
|
2,155
|
|
|
1,689
|
|
|
566
|
|
|
(100)
|
|
4,8
|
Long-term debt due
within one year
|
6,210
|
|
|
16
|
|
|
6,194
|
|
|
—
|
|
|
Total current
liabilities
|
26,621
|
|
|
14,377
|
|
|
13,117
|
|
|
(873)
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt due
after one year
|
26,281
|
|
|
9,151
|
|
|
17,140
|
|
|
(10)
|
|
6
|
Liability for
postemployment benefits
|
6,599
|
|
|
6,599
|
|
|
—
|
|
|
—
|
|
|
Other
liabilities
|
4,323
|
|
|
3,681
|
|
|
1,430
|
|
|
(788)
|
|
4
|
Total
liabilities
|
63,824
|
|
|
33,808
|
|
|
31,687
|
|
|
(1,671)
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
Common
stock
|
5,935
|
|
|
5,935
|
|
|
919
|
|
|
(919)
|
|
9
|
Treasury
stock
|
(24,217)
|
|
|
(24,217)
|
|
|
—
|
|
|
—
|
|
|
Profit employed in the
business
|
34,437
|
|
|
30,434
|
|
|
3,997
|
|
|
6
|
|
9
|
Accumulated other
comprehensive income (loss)
|
(1,567)
|
|
|
(739)
|
|
|
(828)
|
|
|
—
|
|
|
Noncontrolling
interests
|
41
|
|
|
41
|
|
|
172
|
|
|
(172)
|
|
9
|
Total
shareholders' equity
|
14,629
|
|
|
11,454
|
|
|
4,260
|
|
|
(1,085)
|
|
|
Total liabilities
and shareholders' equity
|
$
|
78,453
|
|
|
$
|
45,262
|
|
|
$
|
35,947
|
|
|
$
|
(2,756)
|
|
|
|
|
1
|
Elimination of
receivables between ME&T and Financial Products.
|
2
|
Reclassification of
ME&T's trade receivables purchased by Financial Products and
Financial Products' wholesale inventory receivables.
|
3
|
Elimination of
ME&T's insurance premiums that are prepaid to Financial
Products.
|
4
|
Reclassification
reflecting required netting of deferred tax assets/liabilities by
taxing jurisdiction.
|
5
|
Elimination of other
intercompany assets between ME&T and Financial
Products.
|
6
|
Elimination of debt
between ME&T and Financial Products.
|
7
|
Elimination of
payables between ME&T and Financial Products.
|
8
|
Elimination of
prepaid insurance in Financial Products' other
liabilities.
|
9
|
Eliminations
associated with ME&T's investments in Financial Products'
subsidiaries.
|
|
|
Caterpillar
Inc.
|
Supplemental Data
for Cash Flow
|
For the Nine
Months Ended September 30, 2020
|
(Unaudited)
|
(Millions of
dollars)
|
|
|
|
|
Supplemental Consolidating Data
|
|
|
Consolidated
|
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
Profit of consolidated
and affiliated companies
|
$
|
2,223
|
|
|
$
|
1,990
|
|
|
$
|
263
|
|
|
$
|
(30)
|
|
1, 5
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
1,815
|
|
|
1,217
|
|
|
598
|
|
|
—
|
|
|
Net gain on
remeasurement of pension obligations
|
(55)
|
|
|
(55)
|
|
|
—
|
|
|
—
|
|
|
Provision (benefit)
for deferred income taxes
|
(38)
|
|
|
(5)
|
|
|
(33)
|
|
|
—
|
|
|
Other
|
919
|
|
|
494
|
|
|
167
|
|
|
258
|
|
2
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Receivables – trade
and other
|
1,473
|
|
|
616
|
|
|
(54)
|
|
|
911
|
|
2, 3
|
Inventories
|
(139)
|
|
|
(130)
|
|
|
—
|
|
|
(9)
|
|
2
|
Accounts
payable
|
(596)
|
|
|
(599)
|
|
|
(6)
|
|
|
9
|
|
2
|
Accrued
expenses
|
(286)
|
|
|
(314)
|
|
|
28
|
|
|
—
|
|
|
Accrued wages,
salaries and employee benefits
|
(547)
|
|
|
(512)
|
|
|
(35)
|
|
|
—
|
|
|
Customer
advances
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
Other assets –
net
|
(15)
|
|
|
(136)
|
|
|
26
|
|
|
95
|
|
2
|
Other liabilities –
net
|
(512)
|
|
|
(514)
|
|
|
83
|
|
|
(81)
|
|
2
|
Net cash provided by
(used for) operating activities
|
4,255
|
|
|
2,065
|
|
|
1,037
|
|
|
1,153
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
Capital expenditures –
excluding equipment leased to others
|
(686)
|
|
|
(687)
|
|
|
(11)
|
|
|
12
|
|
2
|
Expenditures for
equipment leased to others
|
(805)
|
|
|
2
|
|
|
(823)
|
|
|
16
|
|
2
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
550
|
|
|
119
|
|
|
451
|
|
|
(20)
|
|
2
|
Additions to finance
receivables
|
(9,278)
|
|
|
—
|
|
|
(10,234)
|
|
|
956
|
|
3
|
Collections of finance
receivables
|
9,656
|
|
|
—
|
|
|
10,822
|
|
|
(1,166)
|
|
3
|
Net intercompany
purchased receivables
|
—
|
|
|
—
|
|
|
971
|
|
|
(971)
|
|
3
|
Proceeds from sale of
finance receivables
|
37
|
|
|
—
|
|
|
37
|
|
|
—
|
|
|
Net intercompany
borrowings
|
—
|
|
|
599
|
|
|
6
|
|
|
(605)
|
|
4
|
Investments and
acquisitions (net of cash acquired)
|
(93)
|
|
|
(93)
|
|
|
—
|
|
|
—
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
Proceeds from sale of
securities
|
239
|
|
|
17
|
|
|
222
|
|
|
—
|
|
|
Investments in
securities
|
(512)
|
|
|
(15)
|
|
|
(497)
|
|
|
—
|
|
|
Other – net
|
(80)
|
|
|
(21)
|
|
|
(59)
|
|
|
—
|
|
|
Net cash provided by
(used for) investing activities
|
(959)
|
|
|
(66)
|
|
|
885
|
|
|
(1,778)
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
Dividends
paid
|
(1,683)
|
|
|
(1,683)
|
|
|
(20)
|
|
|
20
|
|
5
|
Common stock issued,
including treasury shares reissued
|
110
|
|
|
110
|
|
|
—
|
|
|
—
|
|
|
Common shares
repurchased
|
(1,130)
|
|
|
(1,130)
|
|
|
—
|
|
|
—
|
|
|
Net intercompany
borrowings
|
—
|
|
|
(6)
|
|
|
(599)
|
|
|
605
|
|
4
|
Proceeds from debt
issued > 90 days
|
9,418
|
|
|
1,991
|
|
|
7,427
|
|
|
—
|
|
|
Payments on debt >
90 days
|
(6,789)
|
|
|
(18)
|
|
|
(6,771)
|
|
|
—
|
|
|
Short-term borrowings
– net < 90 days
|
(2,138)
|
|
|
(5)
|
|
|
(2,133)
|
|
|
—
|
|
|
Other – net
|
(1)
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
Net cash provided by
(used for) financing activities
|
(2,213)
|
|
|
(742)
|
|
|
(2,096)
|
|
|
625
|
|
|
Effect of exchange
rate changes on cash
|
(56)
|
|
|
(47)
|
|
|
(9)
|
|
|
—
|
|
|
Increase
(decrease) in cash and short-term investments and restricted
cash
|
1,027
|
|
|
1,210
|
|
|
(183)
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at beginning of period
|
8,292
|
|
|
7,302
|
|
|
990
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at end of period
|
$
|
9,319
|
|
|
$
|
8,512
|
|
|
$
|
807
|
|
|
$
|
—
|
|
|
|
|
1
|
Elimination of equity
profit earned from Financial Products' subsidiaries partially owned
by ME&T subsidiaries.
|
2
|
Elimination of
non-cash adjustments and changes in assets and liabilities related
to consolidated reporting.
|
3
|
Reclassification of
Financial Products' cash flow activity from investing to operating
for receivables that arose from the sale of inventory.
|
4
|
Elimination of net
proceeds and payments to/from ME&T and Financial
Products.
|
5
|
Elimination of
dividend activity between Financial Products and
ME&T.
|
Caterpillar
Inc.
|
Supplemental Data
for Cash Flow
|
For the Nine
Months Ended September 30, 2019
|
(Unaudited)
|
(Millions of
dollars)
|
|
|
|
|
Supplemental Consolidating Data
|
|
|
Consolidated
|
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
Profit of consolidated
and affiliated companies
|
$
|
4,997
|
|
|
$
|
4,574
|
|
|
$
|
439
|
|
|
$
|
(16)
|
|
1
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
1,933
|
|
|
1,283
|
|
|
650
|
|
|
—
|
|
|
Provision (benefit)
for deferred income taxes
|
(13)
|
|
|
9
|
|
|
(22)
|
|
|
—
|
|
|
Other
|
627
|
|
|
379
|
|
|
(111)
|
|
|
359
|
|
2
|
Changes in assets and
liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
Receivables – trade
and other
|
427
|
|
|
125
|
|
|
(16)
|
|
|
318
|
|
2, 3
|
Inventories
|
(676)
|
|
|
(702)
|
|
|
—
|
|
|
26
|
|
2
|
Accounts
payable
|
(669)
|
|
|
(651)
|
|
|
6
|
|
|
(24)
|
|
2
|
Accrued
expenses
|
114
|
|
|
105
|
|
|
11
|
|
|
(2)
|
|
2
|
Accrued wages,
salaries and employee benefits
|
(858)
|
|
|
(865)
|
|
|
7
|
|
|
—
|
|
|
Customer
advances
|
169
|
|
|
171
|
|
|
—
|
|
|
(2)
|
|
2
|
Other assets –
net
|
19
|
|
|
(66)
|
|
|
63
|
|
|
22
|
|
2
|
Other liabilities –
net
|
(1,592)
|
|
|
(1,730)
|
|
|
150
|
|
|
(12)
|
|
2
|
Net cash provided by
(used for) operating activities
|
4,478
|
|
|
2,632
|
|
|
1,177
|
|
|
669
|
|
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
Capital expenditures –
excluding equipment leased to others
|
(723)
|
|
|
(709)
|
|
|
(14)
|
|
|
—
|
|
|
Expenditures for
equipment leased to others
|
(1,133)
|
|
|
(21)
|
|
|
(1,151)
|
|
|
39
|
|
2
|
Proceeds from
disposals of leased assets and property, plant and
equipment
|
812
|
|
|
149
|
|
|
766
|
|
|
(103)
|
|
2
|
Additions to finance
receivables
|
(9,453)
|
|
|
—
|
|
|
(10,633)
|
|
|
1,180
|
|
3
|
Collections of finance
receivables
|
9,144
|
|
|
—
|
|
|
10,166
|
|
|
(1,022)
|
|
3
|
Net intercompany
purchased receivables
|
—
|
|
|
—
|
|
|
763
|
|
|
(763)
|
|
3
|
Proceeds from sale of
finance receivables
|
183
|
|
|
—
|
|
|
183
|
|
|
—
|
|
|
Net intercompany
borrowings
|
—
|
|
|
721
|
|
|
1
|
|
|
(722)
|
|
4
|
Investments and
acquisitions (net of cash acquired)
|
(6)
|
|
|
(6)
|
|
|
—
|
|
|
—
|
|
|
Proceeds from sale of
businesses and investments (net of cash sold)
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
Proceeds from sale of
securities
|
281
|
|
|
16
|
|
|
265
|
|
|
—
|
|
|
Investments in
securities
|
(425)
|
|
|
(16)
|
|
|
(409)
|
|
|
—
|
|
|
Other – net
|
(37)
|
|
|
1
|
|
|
(38)
|
|
|
—
|
|
|
Net cash provided by
(used for) investing activities
|
(1,354)
|
|
|
138
|
|
|
(101)
|
|
|
(1,391)
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
Dividends
paid
|
(1,564)
|
|
|
(1,564)
|
|
|
—
|
|
|
—
|
|
|
Common stock issued,
including treasury shares reissued
|
59
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
Common shares
repurchased
|
(3,283)
|
|
|
(3,283)
|
|
|
—
|
|
|
—
|
|
|
Net intercompany
borrowings
|
—
|
|
|
(1)
|
|
|
(721)
|
|
|
722
|
|
4
|
Proceeds from debt
issued > 90 days
|
8,827
|
|
|
1,479
|
|
|
7,348
|
|
|
—
|
|
|
Payments on debt >
90 days
|
(6,062)
|
|
|
(8)
|
|
|
(6,054)
|
|
|
—
|
|
|
Short-term borrowings
– net < 90 days
|
(1,006)
|
|
|
—
|
|
|
(1,006)
|
|
|
—
|
|
|
Other – net
|
(2)
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
|
Net cash provided by
(used for) financing activities
|
(3,031)
|
|
|
(3,320)
|
|
|
(433)
|
|
|
722
|
|
|
Effect of exchange
rate changes on cash
|
(47)
|
|
|
(38)
|
|
|
(9)
|
|
|
—
|
|
|
Increase
(decrease) in cash and short-term investments and restricted
cash
|
46
|
|
|
(588)
|
|
|
634
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at beginning of period
|
7,890
|
|
|
6,994
|
|
|
896
|
|
|
—
|
|
|
Cash and short-term
investments and restricted cash at end of period
|
$
|
7,936
|
|
|
$
|
6,406
|
|
|
$
|
1,530
|
|
|
$
|
—
|
|
|
|
|
1
|
Elimination of equity
profit earned from Financial Products' subsidiaries partially owned
by ME&T subsidiaries.
|
2
|
Elimination of
non-cash adjustments and changes in assets and liabilities related
to consolidated reporting.
|
3
|
Reclassification of
Financial Products' cash flow activity from investing to operating
for receivables that arose from the sale of inventory.
|
4
|
Elimination of net
proceeds and payments to/from ME&T and Financial
Products.
|
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SOURCE Caterpillar Inc.