Caterpillar Reports Fourth-Quarter and Full-Year 2023 Results
Fourth-quarter 2023 sales and revenues up 3%; full-year sales and revenues up 13%
Fourth-quarter 2023 profit per share of $5.28; adjusted profit per share of $5.23
Full-year profit per share of $20.12; adjusted profit per share of $21.21
Strong operating cash flow of $12.9 billion; ended the year with $7.0 billion of enterprise cash
Returned $7.5 billion to shareholders through share repurchases and dividends in 2023
Fourth Quarter
Full Year
($ in billions except profit per share)
2023
2022
2023
2022
Sales and Revenues
$17.1
$16.6
$67.1
$59.4
Profit Per Share
$5.28
$2.79
$20.12
$12.64
Adjusted Profit Per Share
$5.23
$3.86
$21.21
$13.84
IRVING, Texas, Feb. 5, 2024 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced fourth-quarter and full-year results for 2023.
Sales and revenues for the fourth quarter of 2023 were $17.1 billion, a 3% increase compared with $16.6 billion in the fourth quarter of 2022. Operating profit margin was 18.4% for the fourth quarter of 2023, compared with 10.1% for the fourth quarter of 2022. Adjusted operating profit margin was 18.9% for the fourth quarter of 2023, compared with 17.0% for the fourth quarter of 2022. Fourth-quarter 2023 profit per share was $5.28, compared with $2.79 profit per share in the fourth quarter of 2022. Adjusted profit per share in the fourth quarter of 2023 was $5.23, compared with fourth-quarter 2022 adjusted profit per share of $3.86.
Full-year sales and revenues in 2023 were $67.1 billion, up 13% compared with $59.4 billion in 2022. The increase reflected favorable price realization and higher sales volume, driven by higher sales of equipment to end users, partially offset by the impact from changes in dealer inventories. Operating profit margin was 19.3% in 2023, compared with 13.3% in 2022. Adjusted operating profit margin was 20.5% in 2023, compared with 15.4% in 2022. Full-year profit was $20.12 per share in 2023, compared with profit of $12.64 per share in 2022. Adjusted profit per share in 2023 was $21.21, compared with adjusted profit per share of $13.84 in 2022.
"I'm very proud of our global team's strong performance as they achieved the best year in our 98-year history, including record full-year sales and revenues, record adjusted profit per share and record ME&T free cash flow," said Caterpillar Chairman and CEO Jim Umpleby. "We remain committed to serving our customers, executing our strategy and investing for long-term profitable growth."
In 2023, adjusted operating profit margin and adjusted profit per share excluded restructuring costs, which included the impact of the divestiture of the company's Longwall business and other restructuring costs. 2023 adjusted profit per share also excluded a benefit for certain deferred tax valuation allowance adjustments and mark-to-market gains for remeasurement of pension and other postemployment benefit (OPEB) plans. In 2022, adjusted operating profit margin and adjusted profit per share excluded a goodwill impairment charge and restructuring costs related to the Rail division and other restructuring costs. 2022 adjusted profit per share also excluded mark-to-market gains for remeasurement of pension and OPEB plans. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 13.
For the full year of 2023, enterprise operating cash flow was $12.9 billion. During the year, the company repurchased $5.0 billion of Caterpillar common stock and paid dividends of $2.6 billion. Liquidity remained strong with an enterprise cash balance of $7.0 billion at the end of 2023.
CONSOLIDATED RESULTS
Consolidated Sales and Revenues
Consolidated Sales and Revenues Comparison Fourth Quarter 2023 vs. Fourth Quarter 2022
The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the fourth quarter of 2022 (at left) and the fourth quarter of 2023 (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 fourth quarter of 2023 were $17.070 billion, an increase of $473 million, or 3%, compared with $16.597 billion in the fourth quarter of 2022. The increase was due to favorable price realization, higher Financial Products' segment revenues and favorable currency impacts primarily related to the euro, partially offset by lower sales volume. The decrease in sales volume was driven by the impact from changes in dealer inventories, partially offset by higher sales of equipment to end users. Dealer inventory decreased by $900 million during the fourth quarter of 2023, compared with an increase of $700 million during the fourth quarter of 2022.
In the three primary segments, sales were higher in Energy & Transportation and lower in Construction Industries and Resource Industries.
The chart above graphically illustrates reasons for the change in consolidated operating profit between the fourth quarter of 2022 (at left) and the fourth quarter of 2023 (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 fourth quarter of 2023 was $3.134 billion, an increase of $1.454 billion, or 87%, compared with $1.680 billion in the fourth quarter of 2022. The increase was primarily due to favorable price realization and the absence of a 2022 goodwill impairment charge related to the Rail division, partially offset by higher selling, general and administrative (SG&A) and research and development (R&D) expenses. The increase in SG&A/R&D expenses was primarily driven by higher short-term incentive compensation expense and investments aligned with strategic initiatives.
Operating profit margin was 18.4% for the fourth quarter of 2023, compared with 10.1% for the fourth quarter of 2022. Adjusted operating profit margin was 18.9% for the fourth quarter of 2023, compared with 17.0% for the fourth quarter of 2022. Operating profit margin was 19.3% for 2023, compared with 13.3% for 2022. Adjusted operating profit margin was 20.5% for 2023, compared with 15.4% for 2022.
Profit (Loss) by Segment
(Millions of dollars)
Fourth Quarter 2023
Fourth Quarter 2022
$
Change
%
Change
Construction Industries
$ 1,535
$ 1,488
$ 47
3 %
Resource Industries
600
605
(5)
(1 %)
Energy & Transportation
1,429
1,177
252
21 %
All Other Segment
(24)
(53)
29
55 %
Corporate Items and Eliminations
(438)
(1,588)
1,150
Machinery, Energy & Transportation
3,102
1,629
1,473
90 %
Financial Products Segment
234
189
45
24 %
Corporate Items and Eliminations
(46)
(4)
(42)
Financial Products
188
185
3
2 %
Consolidating Adjustments
(156)
(134)
(22)
Consolidated Operating Profit
$ 3,134
$ 1,680
$ 1,454
87 %
Other Profit/Loss and Tax Items
Other income (expense) in the fourth quarter of 2023 was income of $241 million, compared with income of $536 million in the fourth quarter of 2022. The change was primarily driven by lower mark-to-market gains for remeasurement of pension and OPEB plans (see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 13) and unfavorable impacts from pension and OPEB plan costs, partially offset by favorable impacts from foreign currency exchange and higher investment and interest income.
The provision for income taxes for the fourth quarter of 2023 reflected a global annual effective tax rate of 21.4%, excluding discrete items. The comparative tax rate for the fourth quarter of 2022 and full-year 2022 was 23.2%. The decrease from 2022 was primarily related to changes in the geographic mix of profits. In addition, the company recorded a $112 million benefit in the fourth quarter of 2023 for the change from the third-quarter estimated annual tax rate.
CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
Fourth Quarter 2022
Sales Volume
Price Realization
Currency
Inter- Segment
Fourth Quarter 2023
$
Change
%
Change
Total Sales
$ 6,845
$ (809)
$ 445
$ 38
$ -
$ 6,519
$ (326)
(5 %)
Sales by Geographic Region
Fourth Quarter 2023
Fourth Quarter 2022
$
Change
%
Change
North America
$ 3,689
$ 3,535
$ 154
4 %
Latin America
587
782
(195)
(25 %)
EAME
1,129
1,373
(244)
(18 %)
Asia/Pacific
1,083
1,124
(41)
(4 %)
External Sales
6,488
6,814
(326)
(5 %)
Inter-segment
31
31
-
- %
Total Sales
$ 6,519
$ 6,845
$ (326)
(5 %)
Segment Profit
Fourth Quarter 2023
Fourth Quarter 2022
Change
%
Change
Segment Profit
$ 1,535
$ 1,488
$ 47
3 %
Segment Profit Margin
23.5 %
21.7 %
1.8 pts
Construction Industries' total sales were $6.519 billion in the fourth quarter of 2023, a decrease of $326 million, or 5%, compared with $6.845 billion in the fourth quarter of 2022. The decrease was due to lower sales volume, partially offset by favorable price realization. The decrease in sales volume was driven by the impact from changes in dealer inventories, partially offset by higher sales of equipment to end users. Dealer inventory decreased during the fourth quarter of 2023, compared with an increase during the fourth quarter of 2022.
In North America, sales increased due to favorable price realization, partially offset by lower sales volume. Lower sales volume was driven by the impact from changes in dealer inventories, partially offset by higher sales of equipment to end users. Dealer inventory increased during the fourth quarter of 2022, compared with a decrease during the fourth quarter of 2023.
Sales decreased in Latin America primarily due to lower sales volume. Lower sales volume was driven by the impact from changes in dealer inventories. Dealer inventory increased during the fourth quarter of 2022, compared with a decrease during the fourth quarter of 2023.
In EAME, sales decreased primarily due to lower sales volume, partially offset by favorable price realization and favorable currency impacts primarily related to the euro. Lower sales volume was primarily due to the impact from changes in dealer inventories. Dealer inventory decreased more during the fourth quarter of 2023 than during the fourth quarter of 2022.
Sales decreased in Asia/Pacific primarily due to lower sales volume. Decreased sales volume was driven by the impact from changes in dealer inventories, partially offset by higher aftermarket parts sales volume. Dealer inventory decreased more during the fourth quarter of 2023 than during the fourth quarter of 2022.
Construction Industries' profit was $1.535 billion in the fourth quarter of 2023, an increase of $47 million, or 3%, compared with $1.488 billion in the fourth quarter of 2022. The increase was primarily due to favorable price realization, partially offset by the profit impact from lower sales volume.
RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
Fourth Quarter 2022
Sales Volume
Price Realization
Currency
Inter- Segment
Fourth Quarter 2023
$
Change
%
Change
Total Sales
$ 3,436
$ (440)
$ 239
$ 8
$ (1)
$ 3,242
$ (194)
(6 %)
Sales by Geographic Region
Fourth Quarter 2023
Fourth Quarter 2022
$
Change
%
Change
North America
$ 1,240
$ 1,364
$ (124)
(9 %)
Latin America
529
503
26
5 %
EAME
445
596
(151)
(25 %)
Asia/Pacific
939
883
56
6 %
External Sales
3,153
3,346
(193)
(6 %)
Inter-segment
89
90
(1)
(1 %)
Total Sales
$ 3,242
$ 3,436
$ (194)
(6 %)
Segment Profit
Fourth Quarter 2023
Fourth Quarter 2022
Change
%
Change
Segment Profit
$ 600
$ 605
$ (5)
(1 %)
Segment Profit Margin
18.5 %
17.6 %
0.9 pts
Resource Industries' total sales were $3.242 billion in the fourth quarter of 2023, a decrease of $194 million, or 6%, compared with $3.436 billion in the fourth quarter of 2022. The decrease was primarily due to lower sales volume, partially offset by favorable price realization. The decrease in sales volume was driven by the impact from changes in dealer inventories and lower aftermarket parts sales volume. Dealer inventory increased during the fourth quarter of 2022, compared with a decrease during the fourth quarter of 2023.
Resource Industries' profit was $600 million in the fourth quarter of 2023, a decrease of $5 million, or 1%, compared with $605 million in the fourth quarter of 2022. Favorable price realization and manufacturing costs were offset by lower sales volume, higher SG&A/R&D expenses and currency impacts. Favorable manufacturing costs largely reflected lower freight. The increase in SG&A/R&D expenses was primarily driven by higher short-term incentive compensation expense and investments aligned with strategic initiatives.
ENERGY & TRANSPORTATION
(Millions of dollars)
Segment Sales
Fourth Quarter 2022
Sales Volume
Price Realization
Currency
Inter- Segment
Fourth Quarter 2023
$
Change
%
Change
Total Sales
$ 6,823
$ 561
$ 305
$ 54
$ (74)
$ 7,669
$ 846
12 %
Sales by Application
Fourth Quarter 2023
Fourth Quarter 2022
$
Change
%
Change
Oil and Gas
$ 2,247
$ 1,827
$ 420
23 %
Power Generation
1,835
1,422
413
29 %
Industrial
1,078
1,131
(53)
(5 %)
Transportation
1,428
1,288
140
11 %
External Sales
6,588
5,668
920
16 %
Inter-segment
1,081
1,155
(74)
(6 %)
Total Sales
$ 7,669
$ 6,823
$ 846
12 %
Segment Profit
Fourth Quarter 2023
Fourth Quarter 2022
Change
%
Change
Segment Profit
$ 1,429
$ 1,177
$ 252
21 %
Segment Profit Margin
18.6 %
17.3 %
1.3 pts
Energy & Transportation's total sales were $7.669 billion in the fourth quarter of 2023, an increase of $846 million, or 12%, compared with $6.823 billion in the fourth quarter of 2022. Sales increased across all applications except Industrial. The increase in sales was primarily due to higher sales volume and favorable price realization.
Oil and Gas - Sales increased for turbines and turbine-related services. Sales also increased in reciprocating engines used in well servicing and gas compression applications.
Power Generation - Sales increased in large reciprocating engines, primarily data center applications.
Industrial - Sales decreased primarily in EAME, partially offset by increased sales in Latin America and Asia/Pacific.
Transportation - Sales increased in rail services and marine. International locomotive deliveries were also higher.
Energy & Transportation's profit was $1.429 billion in the fourth quarter of 2023, an increase of $252 million, or 21%, compared with $1.177 billion in the fourth quarter of 2022. The increase was primarily due to favorable price realization and higher sales volume, partially offset by higher SG&A/R&D expenses, currency impacts and unfavorable manufacturing costs. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives and higher short-term incentive compensation expense. Unfavorable manufacturing costs reflected lower freight being more than offset by increased period manufacturing costs, higher material costs, unfavorable cost absorption and the impact of manufacturing inefficiencies. Cost absorption was unfavorable as inventory decreased more during the fourth quarter of 2023 than during the fourth quarter of 2022.
FINANCIAL PRODUCTS SEGMENT
(Millions of dollars)
Revenues by Geographic Region
Fourth Quarter 2023
Fourth Quarter 2022
$
Change
%
Change
North America
$ 645
$ 548
$ 97
18 %
Latin America
100
98
2
2 %
EAME
127
103
24
23 %
Asia/Pacific
109
104
5
5 %
Total Revenues
$ 981
$ 853
$ 128
15 %
Segment Profit
Fourth Quarter 2023
Fourth Quarter 2022
Change
%
Change
Segment Profit
$ 234
$ 189
$ 45
24 %
Financial Products' segment revenues were $981 million in the fourth quarter of 2023, an increase of $128 million, or 15%, compared with $853 million in the fourth quarter of 2022. The increase was primarily due to higher average financing rates across all regions and higher average earning assets in North America.
Financial Products' segment profit was $234 million in the fourth quarter of 2023, an increase of $45 million, or 24%, compared with $189 million in the fourth quarter of 2022. The increase was mainly due to lower provision for credit losses at Cat Financial, higher average earning assets and higher net yield on average earning assets. These favorable impacts were partially offset by an increase in SG&A expenses.
At the end of 2023, past dues at Cat Financial were 1.79%, compared with 1.89% at the end of 2022. Write-offs, net of recoveries, were $65 million for 2023, compared with $46 million for 2022. As of December 31, 2023, Cat Financial's allowance for credit losses totaled $331 million, or 1.18% of finance receivables, compared with $346 million, or 1.29% of finance receivables, at December 31, 2022.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $484 million in the fourth quarter of 2023, a decrease of $1.108 billion from the fourth quarter of 2022, primarily driven by the absence of a 2022 goodwill impairment charge related to the Rail division.
Notes
i. Glossary of terms is included on the Caterpillar website at https://investors.caterpillar.com/overview/default.aspx. ii. Sales of equipment to end users is demonstrated by the company's Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Monday, Feb. 5, 2024. iii. Information on non-GAAP financial measures is included in the appendix on page 13. 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 Monday, Feb. 5, 2024, to discuss its 2023 fourth-quarter and full-year 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
With 2023 sales and revenues of $67.1 billion, Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we've been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments - Construction Industries, Resource Industries and Energy & Transportation - and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/en/news/social-media.html.
Caterpillar's latest financial results are also available online:
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) catastrophic events, including global pandemics such as 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.
The company believes it is important to separately quantify the profit impact of five significant items in order for the company's results to be meaningful to readers. These items consist of (i) restructuring costs related to the divestiture of the company's Longwall business, (ii) other restructuring costs, (iii) pension and OPEB mark-to-market gains/losses resulting from plan remeasurements, (iv) certain deferred tax valuation allowance adjustments and (v) goodwill impairment in 2022. The company does not consider these items 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.
Reconciliations of adjusted results to the most directly comparable GAAP measure are as follows:
(Dollars in millions except per share data)
Operating Profit
Operating Profit Margin
Profit Before Taxes
Provision (Benefit) for Income Taxes
Effective Tax Rate
Profit
Profit per Share
Three Months Ended December 31, 2023 - U.S. GAAP
$ 3,134
18.4 %
$ 3,249
$ 587
18.1 %
$ 2,676
$ 5.28
Restructuring costs
92
0.5 %
92
27
29.3 %
65
0.13
Pension/OPEB mark-to-market (gains) losses
-
- %
(97)
(26)
26.8 %
(71)
(0.14)
Deferred tax valuation allowance adjustments
-
- %
-
18
- %
(18)
(0.04)
Three Months Ended December 31, 2023 - Adjusted
$ 3,226
18.9 %
$ 3,244
$ 606
18.7 %
$ 2,652
$ 5.23
Three Months Ended December 31, 2022 - U.S. GAAP
$ 1,680
10.1 %
$ 2,099
$ 644
30.7 %
$ 1,454
$ 2.79
Goodwill impairment
925
5.6 %
925
36
3.9 %
889
1.71
Restructuring costs
209
1.3 %
209
59
28.2 %
150
0.29
Pension/OPEB mark-to-market (gains) losses
-
- %
(606)
(124)
20.5 %
(482)
(0.93)
Three Months Ended December 31, 2022 - Adjusted
$ 2,814
17.0 %
$ 2,627
$ 615
23.4 %
$ 2,011
$ 3.86
Twelve Months Ended December 31, 2023 - U.S. GAAP
$ 12,966
19.3 %
$ 13,050
$ 2,781
21.3 %
$ 10,335
$ 20.12
Restructuring costs - Longwall divestiture
586
0.9 %
586
-
- %
586
1.14
Other restructuring costs
194
0.3 %
194
48
25.0 %
146
0.30
Pension/OPEB mark-to-market (gains) losses
-
- %
(97)
(26)
26.8 %
(71)
(0.14)
Deferred tax valuation allowance adjustments
-
- %
-
106
- %
(106)
(0.21)
Twelve Months Ended December 31, 2023 - Adjusted
$ 13,746
20.5 %
$ 13,733
$ 2,909
21.2 %
$ 10,890
$ 21.21
Twelve Months Ended December 31, 2022 - U.S. GAAP
$ 7,904
13.3 %
$ 8,752
$ 2,067
23.6 %
$ 6,705
$ 12.64
Goodwill impairment
925
1.6 %
925
36
3.9 %
889
1.68
Restructuring costs
299
0.5 %
299
72
24.0 %
227
0.43
Pension/OPEB mark-to-market (gains) losses
-
- %
(606)
(124)
20.5 %
(482)
(0.91)
Twelve Months Ended December 31, 2022 - Adjusted
$ 9,128
15.4 %
$ 9,370
$ 2,051
21.9 %
$ 7,339
$ 13.84
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 Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (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 15 to 25 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 December 31,
Twelve Months Ended December 31,
2023
2022
2023
2022
Sales and revenues:
Sales of Machinery, Energy & Transportation
$ 16,237
$ 15,871
$ 63,869
$ 56,574
Revenues of Financial Products
833
726
3,191
2,853
Total sales and revenues
17,070
16,597
67,060
59,427
Operating costs:
Cost of goods sold
11,016
11,614
42,767
41,350
Selling, general and administrative expenses
1,756
1,479
6,371
5,651
Research and development expenses
554
401
2,108
1,814
Interest expense of Financial Products
288
188
1,030
565
Goodwill impairment charge
-
925
-
925
Other operating (income) expenses
322
310
1,818
1,218
Total operating costs
13,936
14,917
54,094
51,523
Operating profit
3,134
1,680
12,966
7,904
Interest expense excluding Financial Products
126
117
511
443
Other income (expense)
241
536
595
1,291
Consolidated profit before taxes
3,249
2,099
13,050
8,752
Provision (benefit) for income taxes
587
644
2,781
2,067
Profit of consolidated companies
2,662
1,455
10,269
6,685
Equity in profit (loss) of unconsolidated affiliated companies
11
(1)
63
19
Profit of consolidated and affiliated companies
2,673
1,454
10,332
6,704
Less: Profit (loss) attributable to noncontrolling interests
(3)
-
(3)
(1)
Profit 1
$ 2,676
$ 1,454
$ 10,335
$ 6,705
Profit per common share
$ 5.31
$ 2.81
$ 20.24
$ 12.72
Profit per common share - diluted 2
$ 5.28
$ 2.79
$ 20.12
$ 12.64
Weighted-average common shares outstanding (millions)
- Basic
504.4
517.4
510.6
526.9
- Diluted 2
507.0
520.9
513.6
530.4
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)
December 31, 2023
December 31, 2022
Assets
Current assets:
Cash and cash equivalents
$ 6,978
$ 7,004
Receivables - trade and other
9,310
8,856
Receivables - finance
9,510
9,013
Prepaid expenses and other current assets
4,586
2,642
Inventories
16,565
16,270
Total current assets
46,949
43,785
Property, plant and equipment - net
12,680
12,028
Long-term receivables - trade and other
1,238
1,265
Long-term receivables - finance
12,664
12,013
Noncurrent deferred and refundable income taxes
2,816
2,213
Intangible assets
564
758
Goodwill
5,308
5,288
Other assets
5,257
4,593
Total assets
$ 87,476
$ 81,943
Liabilities
Current liabilities:
Short-term borrowings:
-- Machinery, Energy & Transportation
$ -
$ 3
-- Financial Products
4,643
5,954
Accounts payable
7,906
8,689
Accrued expenses
4,958
4,080
Accrued wages, salaries and employee benefits
2,757
2,313
Customer advances
1,929
1,860
Dividends payable
649
620
Other current liabilities
3,123
2,690
Long-term debt due within one year:
-- Machinery, Energy & Transportation
1,044
120
-- Financial Products
7,719
5,202
Total current liabilities
34,728
31,531
Long-term debt due after one year:
-- Machinery, Energy & Transportation
8,579
9,498
-- Financial Products
15,893
16,216
Liability for postemployment benefits
4,098
4,203
Other liabilities
4,675
4,604
Total liabilities
67,973
66,052
Shareholders' equity
Common stock
6,403
6,560
Treasury stock
(36,339)
(31,748)
Profit employed in the business
51,250
43,514
Accumulated other comprehensive income (loss)
(1,820)
(2,457)
Noncontrolling interests
9
22
Total shareholders' equity
19,503
15,891
Total liabilities and shareholders' equity
$ 87,476
$ 81,943
Caterpillar Inc.
Condensed Consolidated Statement of Cash Flow
(Unaudited)
(Millions of dollars)
Twelve Months Ended
December 31,
2023
2022
Cash flow from operating activities:
Profit of consolidated and affiliated companies
$ 10,332
$ 6,704
Adjustments for non-cash items:
Depreciation and amortization
2,144
2,219
Actuarial (gain) loss on pension and postretirement benefits
(97)
(606)
Provision (benefit) for deferred income taxes
(592)
(377)
Loss on divestiture
572
-
Goodwill impairment charge
-
925
Other
375
701
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other
(437)
(220)
Inventories
(364)
(2,589)
Accounts payable
(754)
798
Accrued expenses
796
317
Accrued wages, salaries and employee benefits
486
90
Customer advances
80
768
Other assets - net
(95)
(210)
Other liabilities - net
439
(754)
Net cash provided by (used for) operating activities
12,885
7,766
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others
(1,597)
(1,296)
Expenditures for equipment leased to others
(1,495)
(1,303)
Proceeds from disposals of leased assets and property, plant and equipment
781
830
Additions to finance receivables
(15,161)
(13,239)
Collections of finance receivables
14,034
13,177
Proceeds from sale of finance receivables
63
57
Investments and acquisitions (net of cash acquired)
(75)
(88)
Proceeds from sale of businesses and investments (net of cash sold)
(4)
1
Proceeds from maturities and sale of securities
1,891
2,383
Investments in securities
(4,405)
(3,077)
Other - net
97
14
Net cash provided by (used for) investing activities
(5,871)
(2,541)
Cash flow from financing activities:
Dividends paid
(2,563)
(2,440)
Common stock issued, including treasury shares reissued
12
51
Common shares repurchased
(4,975)
(4,230)
Proceeds from debt issued (original maturities greater than three months)
8,257
6,674
Payments on debt (original maturities greater than three months)
(6,318)
(7,728)
Short-term borrowings - net (original maturities three months or less)
(1,345)
402
Other - net
-
(10)
Net cash provided by (used for) financing activities
(6,932)
(7,281)
Effect of exchange rate changes on cash
(110)
(194)
Increase (decrease) in cash, cash equivalents and restricted cash
(28)
(2,250)
Cash, cash equivalents and restricted cash at beginning of period
7,013
9,263
Cash, cash equivalents and restricted cash at end of period
$ 6,985
$ 7,013
Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less.
Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended December 31, 2023
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated
Machinery, Energy & Transportation
Financial
Products
Consolidating
Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation
$ 16,237
$ 16,237
$ -
$ -
Revenues of Financial Products
833
-
1,020
(187)
1
Total sales and revenues
17,070
16,237
1,020
(187)
Operating costs:
Cost of goods sold
11,016
11,018
-
(2)
2
Selling, general and administrative expenses
1,756
1,557
197
2
2
Research and development expenses
554
554
-
-
Interest expense of Financial Products
288
-
290
(2)
2
Other operating (income) expenses
322
6
345
(29)
2
Total operating costs
13,936
13,135
832
(31)
Operating profit
3,134
3,102
188
(156)
Interest expense excluding Financial Products
126
126
-
-
Other income (expense)
241
322
33
(114)
3
Consolidated profit before taxes
3,249
3,298
221
(270)
Provision (benefit) for income taxes
587
567
20
-
Profit of consolidated companies
2,662
2,731
201
(270)
Equity in profit (loss) of unconsolidated affiliated companies
11
12
-
(1)
4
Profit of consolidated and affiliated companies
2,673
2,743
201
(271)
Less: Profit (loss) attributable to noncontrolling interests
(3)
(2)
-
(1)
5
Profit 6
$ 2,676
$ 2,745
$ 201
$ (270)
1
Elimination of Financial Products' revenues earned from ME&T.
2
Elimination of net expenses recorded between ME&T and 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 December 31, 2022
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated
Machinery, Energy & Transportation
Financial
Products
Consolidating
Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation
$ 15,871
$ 15,871
$ -
$ -
Revenues of Financial Products
726
-
883
(157)
1
Total sales and revenues
16,597
15,871
883
(157)
Operating costs:
Cost of goods sold
11,614
11,615
-
(1)
2
Selling, general and administrative expenses
1,479
1,285
197
(3)
2
Research and development expenses
401
401
-
-
Interest expense of Financial Products
188
-
188
-
Goodwill impairment charge
925
925
-
-
Other operating (income) expenses
310
16
313
(19)
2
Total operating costs
14,917
14,242
698
(23)
Operating profit
1,680
1,629
185
(134)
Interest expense excluding Financial Products
117
117
-
-
Other income (expense)
536
877
-
(341)
3
Consolidated profit before taxes
2,099
2,389
185
(475)
Provision (benefit) for income taxes
644
608
36
-
Profit of consolidated companies
1,455
1,781
149
(475)
Equity in profit (loss) of unconsolidated affiliated companies
(1)
-
-
(1)
4
Profit of consolidated and affiliated companies
1,454
1,781
149
(476)
Less: Profit (loss) attributable to noncontrolling interests
-
-
1
(1)
5
Profit 6
$ 1,454
$ 1,781
$ 148
$ (475)
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 Twelve Months Ended December 31, 2023
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated
Machinery, Energy & Transportation
Financial
Products
Consolidating
Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation
$ 63,869
$ 63,869
$ -
$ -
Revenues of Financial Products
3,191
-
3,927
(736)
1
Total sales and revenues
67,060
63,869
3,927
(736)
Operating costs:
Cost of goods sold
42,767
42,776
-
(9)
2
Selling, general and administrative expenses
6,371
5,696
704
(29)
2
Research and development expenses
2,108
2,108
-
-
Interest expense of Financial Products
1,030
-
1,032
(2)
2
Other operating (income) expenses
1,818
630
1,268
(80)
2
Total operating costs
54,094
51,210
3,004
(120)
Operating profit
12,966
12,659
923
(616)
Interest expense excluding Financial Products
511
511
-
-
Other income (expense)
595
340
(16)
271
3
Consolidated profit before taxes
13,050
12,488
907
(345)
Provision (benefit) for income taxes
2,781
2,560
221
-
Profit of consolidated companies
10,269
9,928
686
(345)
Equity in profit (loss) of unconsolidated affiliated companies
63
67
-
(4)
4
Profit of consolidated and affiliated companies
10,332
9,995
686
(349)
Less: Profit (loss) attributable to noncontrolling interests
(3)
(4)
5
(4)
5
Profit 6
$ 10,335
$ 9,999
$ 681
$ (345)
1
Elimination of Financial Products' revenues earned from ME&T.
2
Elimination of net expenses recorded between ME&T and 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 Twelve Months Ended December 31, 2022
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated
Machinery, Energy & Transportation
Financial
Products
Consolidating
Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation
$ 56,574
$ 56,574
$ -
$ -
Revenues of Financial Products
2,853
-
3,376
(523)
1
Total sales and revenues
59,427
56,574
3,376
(523)
Operating costs:
Cost of goods sold
41,350
41,356
-
(6)
2
Selling, general and administrative expenses
5,651
4,999
672
(20)
2
Research and development expenses
1,814
1,814
-
-
Interest expense of Financial Products
565
-
565
-
Goodwill impairment charge
925
925
-
-
Other operating (income) expenses
1,218
47
1,249
(78)
2
Total operating costs
51,523
49,141
2,486
(104)
Operating profit
7,904
7,433
890
(419)
Interest expense excluding Financial Products
443
444
-
(1)
3
Other income (expense)
1,291
1,374
(26)
(57)
4
Consolidated profit before taxes
8,752
8,363
864
(475)
Provision (benefit) for income taxes
2,067
1,858
209
-
Profit of consolidated companies
6,685
6,505
655
(475)
Equity in profit (loss) of unconsolidated affiliated companies
19
26
-
(7)
5
Profit of consolidated and affiliated companies
6,704
6,531
655
(482)
Less: Profit (loss) attributable to noncontrolling interests
(1)
(1)
7
(7)
6
Profit 7
$ 6,705
$ 6,532
$ 648
$ (475)
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 December 31, 2023
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated
Machinery,
Energy &
Transportation
Financial
Products
Consolidating
Adjustments
Assets
Current assets:
Cash and cash equivalents
$ 6,978
$ 6,106
$ 872
$ -
Receivables - trade and other
9,310
3,971
570
4,769
1,2
Receivables - finance
9,510
-
14,499
(4,989)
2
Prepaid expenses and other current assets
4,586
4,327
341
(82)
3
Inventories
16,565
16,565
-
-
Total current assets
46,949
30,969
16,282
(302)
Property, plant and equipment - net
12,680
8,694
3,986
-
Long-term receivables - trade and other
1,238
565
85
588
1,2
Long-term receivables - finance
12,664
-
13,299
(635)
2
Noncurrent deferred and refundable income taxes
2,816
3,360
148
(692)
4
Intangible assets
564
564
-
-
Goodwill
5,308
5,308
-
-
Other assets
5,257
4,218
2,082
(1,043)
5
Total assets
$ 87,476
$ 53,678
$ 35,882
$ (2,084)
Liabilities
Current liabilities:
Short-term borrowings
$ 4,643
$ -
$ 4,643
$ -
Accounts payable
7,906
7,827
314
(235)
6,7
Accrued expenses
4,958
4,361
597
-
Accrued wages, salaries and employee benefits
2,757
2,696
61
-
Customer advances
1,929
1,912
2
15
7
Dividends payable
649
649
-
-
Other current liabilities
3,123
2,583
647
(107)
4,8
Long-term debt due within one year
8,763
1,044
7,719
-
Total current liabilities
34,728
21,072
13,983
(327)
Long-term debt due after one year
24,472
8,626
15,893
(47)
9
Liability for postemployment benefits
4,098
4,098
-
-
Other liabilities
4,675
3,806
1,607
(738)
4
Total liabilities
67,973
37,602
31,483
(1,112)
Shareholders' equity
Common stock
6,403
6,403
905
(905)
10
Treasury stock
(36,339)
(36,339)
-
-
Profit employed in the business
51,250
46,783
4,457
10
10
Accumulated other comprehensive income (loss)
(1,820)
(783)
(1,037)
-
Noncontrolling interests
9
12
74
(77)
10
Total shareholders' equity
19,503
16,076
4,399
(972)
Total liabilities and shareholders' equity
$ 87,476
$ 53,678
$ 35,882
$ (2,084)
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
Reclassification of Financial Products' payables to accrued expenses or customer advances
8
Elimination of prepaid insurance in Financial Products' other liabilities.
9
Elimination of debt between ME&T and Financial Products.
10
Eliminations associated with ME&T's investments in Financial Products' subsidiaries.
Caterpillar Inc.
Supplemental Data for Financial Position
At December 31, 2022
(Unaudited)
(Millions of dollars)
Supplemental Consolidating Data
Consolidated
Machinery,
Energy &
Transportation
Financial
Products
Consolidating
Adjustments
Assets
Current assets:
Cash and cash equivalents
$ 7,004
$ 6,042
$ 962
$ -
Receivables - trade and other
8,856
3,710
519
4,627
1,2
Receivables - finance
9,013
-
13,902
(4,889)
2
Prepaid expenses and other current assets
2,642
2,488
290
(136)
3
Inventories
16,270
16,270
-
-
Total current assets
43,785
28,510
15,673
(398)
Property, plant and equipment - net
12,028
8,186
3,842
-
Long-term receivables - trade and other
1,265
418
339
508
1,2
Long-term receivables - finance
12,013
-
12,552
(539)
2
Noncurrent deferred and refundable income taxes
2,213
2,755
115
(657)
4
Intangible assets
758
758
-
-
Goodwill
5,288
5,288
-
-
Other assets
4,593
3,882
1,892
(1,181)
5
Total assets
$ 81,943
$ 49,797
$ 34,413
$ (2,267)
Liabilities
Current liabilities:
Short-term borrowings
$ 5,957
$ 3
$ 5,954
$ -
Accounts payable
8,689
8,657
294
(262)
6
Accrued expenses
4,080
3,687
393
-
Accrued wages, salaries and employee benefits
2,313
2,264
49
-
Customer advances
1,860
1,860
-
-
Dividends payable
620
620
-
-
Other current liabilities
2,690
2,215
635
(160)
4,7
Long-term debt due within one year
5,322
120
5,202
-
Total current liabilities
31,531
19,426
12,527
(422)
Long-term debt due after one year
25,714
9,529
16,216
(31)
8
Liability for postemployment benefits
4,203
4,203
-
-
Other liabilities
4,604
3,677
1,638
(711)
4
Total liabilities
66,052
36,835
30,381
(1,164)
Shareholders' equity
Common stock
6,560
6,560
905
(905)
9
Treasury stock
(31,748)
(31,748)
-
-
Profit employed in the business
43,514
39,435
4,068
11
9
Accumulated other comprehensive income (loss)
(2,457)
(1,310)
(1,147)
-
Noncontrolling interests
22
25
206
(209)
9
Total shareholders' equity
15,891
12,962
4,032
(1,103)
Total liabilities and shareholders' equity
$ 81,943
$ 49,797
$ 34,413
$ (2,267)
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 Cash Flow
For the Twelve Months Ended December 31, 2023
(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
$ 10,332
$ 9,995
$ 686
$ (349)
1,5
Adjustments for non-cash items:
Depreciation and amortization
2,144
1,361
783
-
Actuarial (gain) loss on pension and postretirement benefits
(97)
(97)
-
-
Provision (benefit) for deferred income taxes
(592)
(576)
(16)
-
Loss on divestiture
572
572
-
-
Other
375
444
(577)
508
2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other
(437)
(367)
61
(131)
2,3
Inventories
(364)
(360)
-
(4)
2
Accounts payable
(754)
(836)
41
41
2
Accrued expenses
796
690
106
-
Accrued wages, salaries and employee benefits
486
474
12
-
Customer advances
80
78
2
-
Other assets - net
(95)
94
(110)
(79)
2
Other liabilities - net
439
216
118
105
2
Net cash provided by (used for) operating activities
12,885
11,688
1,106
91
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others
(1,597)
(1,624)
(22)
49
2
Expenditures for equipment leased to others
(1,495)
(39)
(1,466)
10
2
Proceeds from disposals of leased assets and property, plant and equipment
781
55
781
(55)
2
Additions to finance receivables
(15,161)
-
(17,321)
2,160
3
Collections of finance receivables
14,034
-
15,634
(1,600)
3
Net intercompany purchased receivables
-
-
1,080
(1,080)
3
Proceeds from sale of finance receivables
63
-
63
-
Net intercompany borrowings
-
-
10
(10)
4
Investments and acquisitions (net of cash acquired)
(75)
(75)
-
-
Proceeds from sale of businesses and investments (net of cash sold)
(4)
(4)
-
-
Proceeds from maturities and sale of securities
1,891
1,642
249
-
Investments in securities
(4,405)
(3,982)
(423)
-
Other - net
97
106
(9)
-
Net cash provided by (used for) investing activities
(5,871)
(3,921)
(1,424)
(526)
Cash flow from financing activities:
Dividends paid
(2,563)
(2,563)
(425)
425
5
Common stock issued, including treasury shares reissued
12
12
-
-
Common shares repurchased
(4,975)
(4,975)
-
-
Net intercompany borrowings
-
(10)
-
10
4
Proceeds from debt issued > 90 days
8,257
-
8,257
-
Payments on debt > 90 days
(6,318)
(106)
(6,212)
-
Short-term borrowings - net < 90 days
(1,345)
(3)
(1,342)
-
Net cash provided by (used for) financing activities
(6,932)
(7,645)
278
435
Effect of exchange rate changes on cash
(110)
(60)
(50)
-
Increase (decrease) in cash, cash equivalents and restricted cash
(28)
62
(90)
-
Cash, cash equivalents and restricted cash at beginning of period
7,013
6,049
964
-
Cash, cash equivalents and restricted cash at end of period
$ 6,985
$ 6,111
$ 874
$ -
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 Twelve Months Ended December 31, 2022
(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
$ 6,704
$ 6,531
$ 655
$ (482)
1,5
Adjustments for non-cash items:
Depreciation and amortization
2,219
1,439
780
-
Actuarial (gain) loss on pension and postretirement benefits
(606)
(606)
-
-
Provision (benefit) for deferred income taxes
Provision (benefit) for deferred income taxes
(377)
(368)
(9)
-
Goodwill impairment charge
925
925
-
-
Other
701
452
(205)
454
2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables - trade and other
(220)
(390)
143
27
2,3
Inventories
(2,589)
(2,572)
-
(17)
2
Accounts payable
798
811
82
(95)
2
Accrued expenses
317
274
43
-
Accrued wages, salaries and employee benefits
90
97
(7)
-
Customer advances
768
769
(1)
-
Other assets - net
(210)
(183)
(35)
8
2
Other liabilities - net
(754)
(821)
71
(4)
2
Net cash provided by (used for) operating activities
7,766
6,358
1,517
(109)
Cash flow from investing activities:
Capital expenditures - excluding equipment leased to others
(1,296)
(1,279)
(20)
3
2
Expenditures for equipment leased to others
(1,303)
(19)
(1,310)
26
2
Proceeds from disposals of leased assets and property, plant and equipment
830
78
764
(12)
2
Additions to finance receivables
(13,239)
-
(14,223)
984
3
Collections of finance receivables
13,177
-
14,052
(875)
3
Net intercompany purchased receivables
-
-
492
(492)
3
Proceeds from sale of finance receivables
57
-
57
-
Net intercompany borrowings
-
-
9
(9)
4
Investments and acquisitions (net of cash acquired)
(88)
(88)
-
-
Proceeds from sale of businesses and investments (net of cash sold)
1
1
-
-
Proceeds from maturities and sale of securities
2,383
1,948
435
-
Investments in securities
(3,077)
(2,549)
(528)
-
Other - net
14
98
(84)
-
Net cash provided by (used for) investing activities
(2,541)
(1,810)
(356)
(375)
Cash flow from financing activities:
Dividends paid
(2,440)
(2,440)
(475)
475
5
Common stock issued, including treasury shares reissued
51
51
-
-
Common shares repurchased
(4,230)
(4,230)
-
-
Net intercompany borrowings
-
(9)
-
9
4
Proceeds from debt issued > 90 days
6,674
-
6,674
-
Payments on debt > 90 days
(7,728)
(25)
(7,703)
-
Short-term borrowings - net < 90 days
402
(138)
540
-
Other - net
(10)
(10)
-
-
Net cash provided by (used for) financing activities
(7,281)
(6,801)
(964)
484
Effect of exchange rate changes on cash
(194)
(131)
(63)
-
Increase (decrease) in cash, cash equivalents and restricted cash
(2,250)
(2,384)
134
-
Cash, cash equivalents and restricted cash at beginning of period
9,263
8,433
830
-
Cash, cash equivalents and restricted cash at end of period
$ 7,013
$ 6,049
$ 964
$ -
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.