Caterpillar, Inc. CAT

NYS: CAT | ISIN: US1491231015   28/03/2024
366,43 USD (+0,49%)
(+0,49%)   28/03/2024

Caterpillar Reports Fourth-Quarter and Full-Year 2022 Results

  • Fourth-quarter 2022 sales and revenues up 20%; full-year sales and revenues up 17%
  • Fourth-quarter 2022 profit per share of $2.79; adjusted profit per share of $3.86
  • Fourth-quarter 2022 included an unfavorable ME&T foreign currency impact of $0.41 per share in other income (expense), which negatively impacted profit per share and adjusted profit per share
  • Full-year profit per share of $12.64; adjusted profit per share of $13.84
  • Strong operating cash flow of $7.8 billion; ended the year with $7.0 billion of enterprise cash
  • Returned $6.7 billion to shareholders through share repurchases and dividends in 2022

IRVING, Texas, Jan. 31, 2023 /PRNewswire/ -- 



Fourth Quarter


Full Year

($ in billions except profit per share)


2022

2021


2022

2021

Sales and Revenues


$16.6

$13.8


$59.4

$51.0

Profit Per Share


$2.79

$3.91


$12.64

$11.83

Adjusted Profit Per Share


$3.86

$2.69


$13.84

$10.81

Caterpillar Inc. (NYSE: CAT) today announced fourth-quarter and full-year results for 2022.

Sales and revenues for the fourth quarter of 2022 were $16.6 billion, a 20% increase compared with $13.8 billion in the fourth quarter of 2021. Fourth-quarter 2022 profit per share was $2.79, compared with $3.91 profit per share in the fourth quarter of 2021. Adjusted profit per share in the fourth quarter of 2022 was $3.86, compared with fourth-quarter 2021 adjusted profit per share of $2.69. Profit per share in the fourth quarter of 2022 included an unfavorable ME&T foreign currency impact in other income (expense) of $0.41 per share mostly related to balance sheet translation, compared with a favorable impact of $0.01 per share in the fourth quarter of 2021.

Full-year sales and revenues in 2022 were $59.4 billion, up 17% compared with $51.0 billion in 2021. The increase reflected favorable price realization and higher sales volume, driven by the impact from changes in dealer inventories, increased services and higher sales of equipment to end users. Dealers increased their inventories $2.4 billion in 2022, while remaining about flat in 2021. Full-year profit was $12.64 per share in 2022, compared with profit of $11.83 per share in 2021. Adjusted profit per share in 2022 was $13.84, compared with adjusted profit per share of $10.81 in 2021.

"Our global team delivered one of the best years in our nearly 100-year history, including record full-year adjusted profit per share," said Caterpillar Chairman and CEO, Jim Umpleby. "Despite supply chain challenges, the team achieved double-digit top-line growth and generated strong ME&T free cash flow. We remain committed to serving our customers, executing our strategy and investing for long-term profitable growth."

In 2022, adjusted profit per share excluded a goodwill impairment charge and restructuring costs related to the Rail division, mark-to-market gains for remeasurement of pension and other postemployment benefit (OPEB) plans and other restructuring costs. In 2021, adjusted profit per share excluded mark-to-market gains for remeasurement of pension and OPEB plans and restructuring costs. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 14.

For the full year of 2022, enterprise operating cash flow was $7.8 billion. During the year, the company repurchased $4.2 billion of Caterpillar common stock and paid dividends of $2.4 billion. Liquidity remained strong with an enterprise cash balance of $7.0 billion at the end of 2022.

CONSOLIDATED RESULTS

Consolidated Sales and Revenues

Consolidated Sales and Revenues Comparison
Fourth Quarter 

To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar fourth-quarter and full year 2022 earnings.  

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the fourth quarter of 2021 (at left) and the fourth quarter of 2022 (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 2022 were $16.597 billion, an increase of $2.799 billion, or 20%, compared with $13.798 billion in the fourth quarter of 2021. The increase was due to favorable price realization and higher sales volume, partially offset by unfavorable currency impacts primarily related to the euro, Japanese yen and Australian dollar. The increase in sales volume was driven by the impact from changes in dealer inventories and higher sales of equipment to end users. Dealers increased inventories by $700 million during the fourth quarter of 2022, compared to remaining about flat during the fourth quarter of 2021.

Sales were higher across the three primary segments.

Sales and Revenues by Segment

(Millions of dollars)

Fourth
Quarter
2021


Sales

Volume


Price

Realization


Currency


Inter-
Segment /
Other


Fourth
Quarter
2022


$

Change


%

Change

















Construction Industries

$        5,736


$           508


$           896


$         (279)


$           (16)


$        6,845


$        1,109


19 %

Resource Industries

2,719


367


404


(68)


14


3,436


717


26 %

Energy & Transportation

5,728


658


432


(173)


178


6,823


1,095


19 %

All Other Segment

134


(5)


3


(3)


(18)


111


(23)


(17 %)

Corporate Items and Eliminations

(1,220)


34




(158)


(1,344)


(124)



Machinery, Energy & Transportation

13,097


1,562


1,735


(523)



15,871


2,774


21 %

















Financial Products Segment

776





77


853


77


10 %

Corporate Items and Eliminations

(75)





(52)


(127)


(52)



Financial Products Revenues

701





25


726


25


4 %

















Consolidated Sales and Revenues

$       13,798


$        1,562


$        1,735


$         (523)


$            25


$       16,597


$        2,799


20 %

















 

Sales and Revenues by Geographic Region


North America


Latin America


EAME


Asia/Pacific


External Sales
and Revenues


Inter-Segment


Total Sales
and Revenues

(Millions of dollars)

$


% Chg


$


% Chg


$


% Chg


$


% Chg


$


% Chg


$


% Chg


$


% Chg

Fourth Quarter 2022




























Construction Industries

$   3,535


34 %


$     782


39 %


$   1,373


10 %


$   1,124


(10 %)


$   6,814


20 %


$       31


(34 %)


$   6,845


19 %

Resource Industries

1,364


59 %


503


21 %


596


12 %


883


5 %


3,346


27 %


90


18 %


3,436


26 %

Energy & Transportation

2,538


33 %


624


57 %


1,553


5 %


953


(1 %)


5,668


19 %


1,155


18 %


6,823


19 %

All Other Segment

12


(14 %)


2


100 %


(80)


(1,100 %)


99


560 %


33


(13 %)


78


(19 %)


111


(17 %)

Corporate Items and Eliminations

14







(3)




(1)




10




(1,354)




(1,344)



Machinery, Energy & Transportation

7,463


38 %


1,911


39 %


3,439


5 %


3,058


— %


15,871


21 %



— %


15,871


21 %





























Financial Products Segment

548


11 %


98


40 %


103


2 %


104


(7 %)


853


10 %



— %


853


10 %

Corporate Items and Eliminations

(73)




(20)




(16)




(18)




(127)







(127)



Financial Products Revenues

475


4 %


78


42 %


87


(5 %)


86


(12 %)


726


4 %



— %


726


4 %





























Consolidated Sales and Revenues

$   7,938


36 %


$   1,989


39 %


$   3,526


5 %


$   3,144


— %


$ 16,597


20 %


$        —


— %


$ 16,597


20 %





























Fourth Quarter 2021




























Construction Industries

$   2,635




$     563




$   1,246




$   1,245




$   5,689




$       47




$   5,736



Resource Industries

857




415




532




839




2,643




76




2,719



Energy & Transportation

1,913




398




1,475




965




4,751




977




5,728



All Other Segment

14




1




8




15




38




96




134



Corporate Items and Eliminations

(17)










(7)




(24)




(1,196)




(1,220)



Machinery, Energy & Transportation

5,402




1,377




3,261




3,057




13,097







13,097































Financial Products Segment

493




70




101




112




776







776



Corporate Items and Eliminations

(37)




(15)




(9)




(14)




(75)







(75)



Financial Products Revenues

456




55




92




98




701







701































Consolidated Sales and Revenues

$   5,858




$   1,432




$   3,353




$   3,155




$ 13,798




$        —




$ 13,798































Consolidated Operating Profit

Consolidated Operating Profit Comparison
Fourth Quarter 

To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar fourth-quarter and full year 2022 earnings.

The chart above graphically illustrates reasons for the change in consolidated operating profit between the fourth quarter of 2021 (at left) and the fourth quarter of 2022 (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 2022 was $1.680 billion, an increase of $69 million, or 4%, compared with $1.611 billion in the fourth quarter of 2021. The increase was primarily due to favorable price realization and higher sales volume, mostly offset by a goodwill impairment charge, higher manufacturing costs and restructuring expenses. 

Unfavorable manufacturing costs largely reflected higher material costs, unfavorable cost absorption and increased period manufacturing costs. Cost absorption was unfavorable as inventory decreased during the fourth quarter of 2022, compared with an increase during the fourth quarter of 2021.

In the fourth quarter of 2022, the company took a goodwill impairment charge of $925 million and restructuring costs of $180 million related to the Rail division, both primarily non-cash items. The goodwill impairment charge is related to a lower outlook for the company's locomotive offerings. The restructuring costs were primarily related to write-downs in the value of inventory.

Operating profit margin was 10.1% for the fourth quarter of 2022, compared with 11.7% for the fourth quarter of 2021. Adjusted operating profit margin was 17.0% for the fourth quarter of 2022, compared with 11.4% for the fourth quarter of 2021. Operating profit margin was 13.3% for 2022, compared with 13.5% for 2021. Adjusted operating profit margin was 15.4% for 2022, compared with 13.7% for 2021.

Profit (Loss) by Segment

(Millions of dollars)

Fourth Quarter
2022


Fourth Quarter
2021


$

Change


%

 Change

Construction Industries

$                 1,488


$                    795


$                    693


87 %

Resource Industries

605


288


317


110 %

Energy & Transportation

1,177


685


492


72 %

All Other Segment

(53)


(12)


(41)


(342 %)

Corporate Items and Eliminations

(1,588)


(281)


(1,307)



Machinery, Energy & Transportation

1,629


1,475


154


10 %









Financial Products Segment

189


248


(59)


(24 %)

Corporate Items and Eliminations

(4)


(37)


33



Financial Products

185


211


(26)


(12 %)









Consolidating Adjustments

(134)


(75)


(59)











Consolidated Operating Profit

$                 1,680


$                 1,611


$                     69


4 %









Other Profit/Loss and Tax Items

  • Other income (expense) in the fourth quarter of 2022 was income of $536 million, compared with income of $1.063 billion in the fourth quarter of 2021. The change was primarily driven by unfavorable impacts from foreign currency exchange and 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 14).

    The unfavorable impact of foreign exchange resulted in a loss of $276 million for ME&T in the fourth quarter of 2022, compared with a favorable impact of an $8 million gain in the fourth quarter of 2021. These losses were primarily driven by the weakening of the U.S. dollar against the euro, Chinese yuan and Japanese yen.

  • The provision for income taxes for the fourth quarters of 2022 and 2021 reflected a global annual effective tax rate of approximately 23%, excluding the discrete items discussed below.

    The provision for income taxes in fourth quarter of 2022 also included a $13 million charge for the change from the third-quarter estimated annual tax rate, compared to a $118 million benefit in the fourth quarter of 2021. The company recorded a tax charge of $124 million related to $606 million of pension and OPEB mark-to-market gains in the fourth quarter of 2022, compared to a tax charge of $190 million related to $833 million of mark-to-market gains in the fourth quarter of 2021. In addition, the company recorded a tax benefit of $36 million in the fourth quarter of 2022 related to the goodwill impairment charge of $925 million.  Finally, the company recorded a tax benefit of $15 million in the fourth quarter of 2022 for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense and a $40 million tax benefit in the fourth quarter of 2021 primarily related to recognition of U.S. capital losses.

 

CONSTRUCTION INDUSTRIES

(Millions of dollars)

















Segment Sales

















Fourth
Quarter 2021


Sales
Volume


Price
Realization


Currency


Inter-
Segment


Fourth
Quarter 2022


$

 Change


%

 Change

Total Sales


$       5,736


$          508


$        896


$         (279)


$             (16)


$          6,845


$    1,109


19 %


















Sales by Geographic Region











Fourth
Quarter 2022


Fourth
Quarter 2021


$

Change


%

Change









North America


$       3,535


$       2,635


$        900


34 %









Latin America


782


563


219


39 %









EAME


1,373


1,246


127


10 %









Asia/Pacific


1,124


1,245


(121)


(10 %)









External Sales


6,814


5,689


1,125


20 %









Inter-segment


31


47


(16)


(34 %)









Total Sales


$       6,845


$       5,736


$     1,109


19 %


























Segment Profit











Fourth
Quarter 2022


Fourth
Quarter 2021


 

Change


%

Change









Segment Profit


$       1,488


$          795


$        693


87 %









Segment Profit Margin


21.7 %


13.9 %


           7.8 pts   




























Construction Industries' total sales were $6.845 billion in the fourth quarter of 2022, an increase of $1.109 billion, or 19%, compared with $5.736 billion in the fourth quarter of 2021. The increase was due to favorable price realization and higher sales volume, partially offset by unfavorable currency impacts related to the euro, Japanese yen and Australian dollar. The increase in sales volume was driven by the impact from changes in dealer inventories and 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 2021.

  • In North America, sales increased due to favorable price realization and higher sales volume. Higher sales volume was driven by the impact from changes in dealer inventories and 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 2021.
  • Sales increased in Latin America primarily due to favorable price realization and higher sales volume. Higher sales volume was driven by the impact from changes in dealer inventories. Dealer inventory increased more during the fourth quarter of 2022 than during the fourth quarter of 2021.
  • In EAME, sales increased due to favorable price realization and higher sales volume, partially offset by unfavorable currency impacts related to the euro and British pound. Higher sales volume was primarily due to the impact from changes in dealer inventories. Dealer inventory decreased more during the fourth quarter of 2021 than during the fourth quarter of 2022.
  • Sales decreased in Asia/Pacific primarily due to unfavorable currency impacts, related to the Japanese yen and Australian dollar, as well as lower sales volume, partially offset by favorable price realization. Decreased sales volume was driven by the impact from changes in dealer inventories. Dealer inventory decreased during the fourth quarter of 2022, compared with an increase during the fourth quarter of 2021.

Construction Industries' profit was $1.488 billion in the fourth quarter of 2022, an increase of $693 million, or 87%, compared with $795 million in the fourth quarter of 2021. The increase was primarily due to favorable price realization and higher sales volume, partially offset by unfavorable manufacturing costs. Unfavorable manufacturing costs were primarily driven by higher material costs, unfavorable cost absorption and increased freight. Cost absorption was unfavorable as inventory decreased during the fourth quarter of 2022, compared with an increase during the fourth quarter of 2021.

RESOURCE INDUSTRIES

(Millions of dollars)

















Segment Sales

















Fourth
Quarter 2021


Sales
Volume


Price
Realization


Currency


Inter-
Segment


Fourth
Quarter 2022


$

 Change


%

 Change

Total Sales


$       2,719


$          367


$        404


$          (68)


$               14


$          3,436


$      717


26 %


















Sales by Geographic Region











Fourth
Quarter 2022


Fourth
Quarter 2021


$

Change


%

Change









North America


$       1,364


$          857


$        507


59 %









Latin America


503


415


88


21 %









EAME


596


532


64


12 %









Asia/Pacific


883


839


44


5 %









External Sales


3,346


2,643


703


27 %









Inter-segment


90


76


14


18 %









Total Sales


$       3,436


$       2,719


$        717


26 %


























Segment Profit











Fourth
Quarter 2022


Fourth
Quarter 2021


 

Change


%

Change









Segment Profit


$          605


$          288


$        317


110 %









Segment Profit Margin


17.6 %


10.6 %


           7.0 pts   




























Resource Industries' total sales were $3.436 billion in the fourth quarter of 2022, an increase of $717 million, or 26%, compared with $2.719 billion in the fourth quarter of 2021. The increase was primarily due to favorable price realization and higher sales volume. The increase in sales volume was driven by the impact from changes in dealer inventories and higher sales of equipment to end users. Dealer inventory increased more during the fourth quarter of 2022 than during the fourth quarter of 2021. Higher sales of equipment to end users was driven by heavy construction and quarry and aggregates.

Resource Industries' profit was $605 million in the fourth quarter of 2022, an increase of $317 million, or 110%, compared with $288 million in the fourth quarter of 2021. The increase was mainly due to favorable price realization and higher sales volume, partially offset by unfavorable manufacturing costs. Unfavorable manufacturing costs were primarily driven by higher material costs, increased freight and higher period manufacturing costs.

ENERGY & TRANSPORTATION

(Millions of dollars)

















Segment Sales

















Fourth
Quarter 2021


Sales
Volume


Price
Realization


Currency


Inter-
Segment


Fourth
Quarter 2022


$

 Change


%

 Change

Total Sales


$       5,728


$          658


$        432


$         (173)


$             178


$          6,823


$    1,095


19 %


















Sales by Application











Fourth
Quarter 2022


Fourth
Quarter 2021


$

Change


%

Change









Oil and Gas


$       1,827


$       1,320


$        507


38 %









Power Generation


1,422


1,267


155


12 %









Industrial


1,131


952


179


19 %









Transportation


1,288


1,212


76


6 %









External Sales


5,668


4,751


917


19 %









Inter-segment


1,155


977


178


18 %









Total Sales


$       6,823


$       5,728


$     1,095


19 %


























Segment Profit











Fourth
Quarter 2022


Fourth
Quarter 2021


 

Change


%

Change









Segment Profit


$       1,177


$          685


$        492


72 %









Segment Profit Margin


17.3 %


12.0 %


           5.3 pts   




























Energy & Transportation's total sales were $6.823 billion in the fourth quarter of 2022, an increase of $1.095 billion, or 19%, compared with $5.728 billion in the fourth quarter of 2021. Sales increased across all applications and inter-segment sales. The increase in sales was primarily due to higher sales volume and favorable price realization, partially offset by unfavorable currency impacts related to the euro and British pound.

  • Oil and Gas – Sales increased for turbines and turbine-related services, reciprocating engines and aftermarket parts.
  • Power Generation – Sales increased in large reciprocating engines, primarily data center applications, and small reciprocating engines. Turbines and turbine-related services increased as well.
  • Industrial – Sales were up due to higher demand across all regions.
  • Transportation – Sales increased in marine applications, reciprocating engine aftermarket parts and rail services; these increases were partially offset by lower deliveries of locomotives.

Energy & Transportation's profit was $1.177 billion in the fourth quarter of 2022, an increase of $492 million, or 72%, compared with $685 million in the fourth quarter of 2021. The increase was primarily due to higher sales volume and favorable price realization, partially offset by unfavorable manufacturing costs and higher SG&A/R&D expenses. Unfavorable manufacturing costs were mainly driven by higher material costs and increased period manufacturing costs. SG&A/R&D expenses increased primarily due to investments aligned with strategic initiatives.

FINANCIAL PRODUCTS SEGMENT

(Millions of dollars)

















Revenues by Geographic Region











Fourth
Quarter 2022


Fourth
Quarter 2021


$

Change


%

Change









North America


$             548


$             493


$               55


11 %









Latin America


98


70


28


40 %









EAME


103


101


2


2 %









Asia/Pacific


104


112


(8)


(7 %)









Total Revenues


$             853


$             776


$               77


10 %


























Segment Profit











Fourth
Quarter 2022


Fourth
Quarter 2021


 

Change


%

Change









Segment Profit


$             189


$             248


$             (59)


(24 %)


























Financial Products' segment revenues were $853 million in the fourth quarter of 2022, an increase of $77 million, or 10%, compared with $776 million in the fourth quarter of 2021. The increase was primarily due to higher average financing rates across all regions.

Financial Products' segment profit was $189 million in the fourth quarter of 2022, a decrease of $59 million, or 24%, compared with $248 million in the fourth quarter of 2021. The decrease was mainly due to a higher provision for credit losses at Cat Financial and an unfavorable impact from equity securities in Insurance Services.

At the end of 2022, past dues at Cat Financial were 1.89%, compared with 1.95% at the end of 2021. Write-offs, net of recoveries, were $46 million for 2022, compared with $205 million for 2021.  As of December 31, 2022, Cat Financial's allowance for credit losses totaled $346 million, or 1.29% of finance receivables, compared with $337 million, or 1.22% of finance receivables, at December 31, 2021.

Corporate Items and Eliminations

Expense for corporate items and eliminations was $1.592 billion in the fourth quarter of 2022, an increase of $1.274 billion from the fourth quarter of 2021, primarily driven by a goodwill impairment charge, higher restructuring costs and increased expenses due to timing differences.

In the fourth quarter of 2022, the company took a goodwill impairment charge of $925 million and restructuring costs of $180 million related to the Rail division, both primarily non-cash items. The goodwill impairment charge is related to a lower outlook for the company's locomotive offerings. The restructuring costs were primarily related to write-downs in the value of inventory.

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 Tuesday, January 31, 2023.
iii.  Information on non-GAAP financial measures is included in the appendix on page 14.
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, January 31, 2023, to discuss its 2022 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 2022 sales and revenues of $59.4 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:

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.

The company believes it is important to separately quantify the profit impact of three significant items in order for the company's results to be meaningful to readers. These items consist of (i) goodwill impairment, (ii) restructuring income/costs and (iii) pension and OPEB mark-to-market gains/losses resulting from plan remeasurements. 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, 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 (income) 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
















Three Months Ended December 31, 2021 - U.S. GAAP


$        1,611


11.7 %


$        2,562


$          429


16.7 %


$        2,120


$         3.91

Restructuring (income) costs


(34)


(0.2) %


(34)


(15)


44.1 %


(19)


(0.03)

Pension/OPEB mark-to-market (gains) losses



— %


(833)


(190)


22.8 %


(643)


(1.19)

Three Months Ended December 31, 2021 - Adjusted


$        1,577


11.4 %


$        1,695


$          224


13.2 %


$        1,458


$         2.69
















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 (income) 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
















Twelve Months Ended December 31, 2021 - U.S. GAAP


$        6,878


13.5 %


$        8,204


$        1,742


21.2 %


$        6,489


$        11.83

Restructuring (income) costs


90


0.2 %


90


4


4.4 %


86


0.15

Pension/OPEB mark-to-market (gains) losses



— %


(833)


(190)


22.8 %


(643)


(1.17)

Twelve Months Ended December 31, 2021 - Adjusted


$        6,968


13.7 %


$        7,461


$        1,556


20.9 %


$        5,932


$        10.81

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 16 to 26 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,


2022


2021


2022


2021

Sales and revenues:








  Sales of Machinery, Energy & Transportation

$     15,871


$     13,097


$      56,574


$      48,188

  Revenues of Financial Products

726


701


2,853


2,783

  Total sales and revenues

16,597


13,798


59,427


50,971









Operating costs:








  Cost of goods sold

11,614


10,003


41,350


35,513

  Selling, general and administrative expenses

1,479


1,422


5,651


5,365

  Research and development expenses

401


439


1,814


1,686

  Interest expense of Financial Products

188


103


565


455

  Goodwill impairment charge

925



925


  Other operating (income) expenses

310


220


1,218


1,074

  Total operating costs

14,917


12,187


51,523


44,093









Operating profit

1,680


1,611


7,904


6,878









  Interest expense excluding Financial Products

117


112


443


488

  Other income (expense)

536


1,063


1,291


1,814









Consolidated profit before taxes

2,099


2,562


8,752


8,204









  Provision (benefit) for income taxes

644


429


2,067


1,742

  Profit of consolidated companies

1,455


2,133


6,685


6,462









  Equity in profit (loss) of unconsolidated affiliated companies

(1)


(13)


19


31









Profit of consolidated and affiliated companies

1,454


2,120


6,704


6,493









Less: Profit (loss) attributable to noncontrolling interests



(1)


4









Profit 1

$       1,454


$       2,120


$        6,705


$        6,489

















Profit per common share

$         2.81


$         3.94


$        12.72


$        11.93

Profit per common share — diluted 2

$         2.79


$         3.91


$        12.64


$        11.83









Weighted-average common shares outstanding (millions)








– Basic

517.4


538.7


526.9


544.0

– Diluted 2

520.9


542.6


530.4


548.5











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,
2022


December 31,
2021

Assets




Current assets:




Cash and cash equivalents

$                      7,004


$                      9,254

Receivables – trade and other

8,856


8,477

Receivables – finance

9,013


8,898

Prepaid expenses and other current assets

2,642


2,788

Inventories

16,270


14,038

Total current assets

43,785


43,455





Property, plant and equipment – net

12,028


12,090

Long-term receivables – trade and other

1,265


1,204

Long-term receivables – finance

12,013


12,707

Noncurrent deferred and refundable income taxes

2,213


1,840

Intangible assets

758


1,042

Goodwill

5,288


6,324

Other assets

4,593


4,131

Total assets

$                    81,943


$                    82,793





Liabilities




Current liabilities:




Short-term borrowings:




-- Machinery, Energy & Transportation

$                             3


$                             9

-- Financial Products

5,954


5,395

Accounts payable

8,689


8,154

Accrued expenses

4,080


3,757

Accrued wages, salaries and employee benefits

2,313


2,242

Customer advances

1,860


1,087

Dividends payable

620


595

Other current liabilities

2,690


2,256

Long-term debt due within one year:




-- Machinery, Energy & Transportation

120


45

-- Financial Products

5,202


6,307

Total current liabilities

31,531


29,847





Long-term debt due after one year:




-- Machinery, Energy & Transportation

9,498


9,746

-- Financial Products

16,216


16,287

Liability for postemployment benefits

4,203


5,592

Other liabilities

4,604


4,805

Total liabilities

66,052


66,277





Shareholders' equity




Common stock

6,560


6,398

Treasury stock

(31,748)


(27,643)

Profit employed in the business

43,514


39,282

Accumulated other comprehensive income (loss)

(2,457)


(1,553)

Noncontrolling interests

22


32

Total shareholders' equity

15,891


16,516

Total liabilities and shareholders' equity

$                    81,943


$                    82,793

 

Caterpillar Inc.
Condensed Consolidated Statement of Cash Flow
(Unaudited)
(Millions of dollars)



Twelve Months Ended

December 31,


2022


2021

Cash flow from operating activities:




Profit of consolidated and affiliated companies

$             6,704


$              6,493

Adjustments for non-cash items:




Depreciation and amortization

2,219


2,352

Actuarial (gain) loss on pension and postretirement benefits

(606)


(833)

Provision (benefit) for deferred income taxes

(377)


(383)

Goodwill impairment charge

925


Other

701


216

Changes in assets and liabilities, net of acquisitions and divestitures:




Receivables – trade and other

(220)


(1,259)

Inventories

(2,589)


(2,586)

Accounts payable

798


2,041

Accrued expenses

317


196

Accrued wages, salaries and employee benefits

90


1,107

Customer advances

768


34

Other assets – net

(210)


(97)

Other liabilities – net

(754)


(83)

Net cash provided by (used for) operating activities

7,766


7,198

Cash flow from investing activities:




Capital expenditures – excluding equipment leased to others

(1,296)


(1,093)

Expenditures for equipment leased to others

(1,303)


(1,379)

Proceeds from disposals of leased assets and property, plant and equipment

830


1,265

Additions to finance receivables

(13,239)


(13,002)

Collections of finance receivables

13,177


12,430

Proceeds from sale of finance receivables

57


51

Investments and acquisitions (net of cash acquired)

(88)


(490)

Proceeds from sale of businesses and investments (net of cash sold)

1


36

Proceeds from sale of securities

2,383


785

Investments in securities

(3,077)


(1,766)

Other – net

14


79

Net cash provided by (used for) investing activities

(2,541)


(3,084)

Cash flow from financing activities:




Dividends paid

(2,440)


(2,332)

Common stock issued, including treasury shares reissued

51


135

Common shares repurchased

(4,230)


(2,668)

Proceeds from debt issued (original maturities greater than three months)

6,674


6,989

Payments on debt (original maturities greater than three months)

(7,728)


(9,796)

Short-term borrowings – net (original maturities three months or less)

402


3,488

Other – net

(10)


(4)

Net cash provided by (used for) financing activities

(7,281)


(4,188)

Effect of exchange rate changes on cash

(194)


(29)

Increase (decrease) in cash, cash equivalents and restricted cash

(2,250)


(103)

Cash, cash equivalents and restricted cash at beginning of period

9,263


9,366

Cash, cash equivalents and restricted cash at end of period

$             7,013


$              9,263





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, 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 Three Months Ended December 31, 2021
(Unaudited)
(Millions of dollars)







Supplemental Consolidating Data



Consolidated


Machinery,
Energy &
Transportation


Financial

Products


Consolidating

Adjustments


Sales and revenues:









Sales of Machinery, Energy & Transportation

$          13,097


$                13,097


$                —


$                 —


Revenues of Financial Products

701



801


(100)

1

Total sales and revenues

13,798


13,097


801


(100)











Operating costs:









Cost of goods sold

10,003


10,006



(3)

2

Selling, general and administrative expenses

1,422


1,253


171


(2)

2

Research and development expenses

439


439




Interest expense of Financial Products

103



103



Other operating (income) expenses

220


(76)


316


(20)

2

Total operating costs

12,187


11,622


590


(25)











Operating profit

1,611


1,475


211


(75)











Interest expense excluding Financial Products

112


112




Other income (expense)

1,063


1,457


31


(425)

3










Consolidated profit before taxes

2,562


2,820


242


(500)











Provision (benefit) for income taxes

429


359


70



Profit of consolidated companies

2,133


2,461


172


(500)











Equity in profit (loss) of unconsolidated affiliated companies

(13)


(10)



(3)

4










Profit of consolidated and affiliated companies

2,120


2,451


172


(503)











Less: Profit (loss) attributable to noncontrolling interests



3


(3)

5










Profit 6

$            2,120


$                  2,451


$              169


$              (500)



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, 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 Results of Operations
For the Twelve Months Ended December 31, 2021
(Unaudited)
(Millions of dollars)







Supplemental Consolidating Data



Consolidated


Machinery,
Energy &
Transportation


Financial

Products


Consolidating

Adjustments


Sales and revenues:









Sales of Machinery, Energy & Transportation

$          48,188


$                48,188


$                —


$                 —


Revenues of Financial Products

2,783



3,172


(389)

1

Total sales and revenues

50,971


48,188


3,172


(389)











Operating costs:









Cost of goods sold

35,513


35,521



(8)

2

Selling, general and administrative expenses

5,365


4,724


654


(13)

2

Research and development expenses

1,686


1,686




Interest expense of Financial Products

455



455



Other operating (income) expenses

1,074


(106)


1,247


(67)

2

Total operating costs

44,093


41,825


2,356


(88)











Operating profit

6,878


6,363


816


(301)











Interest expense excluding Financial Products

488


488




Other income (expense)

1,814


2,276


87


(549)

3










Consolidated profit before taxes

8,204


8,151


903


(850)











Provision (benefit) for income taxes

1,742


1,517


225



Profit of consolidated companies

6,462


6,634


678


(850)











Equity in profit (loss) of unconsolidated affiliated companies

31


42



(11)

4










Profit of consolidated and affiliated companies

6,493


6,676


678


(861)











Less: Profit (loss) attributable to noncontrolling interests

4


3


12


(11)

5










Profit 6

$            6,489


$                  6,673


$              666


$              (850)



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 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 Financial Position
At December 31, 2021
(Unaudited)
(Millions of dollars)







Supplemental Consolidating Data



Consolidated


Machinery,

Energy &

Transportation


Financial

Products


Consolidating

Adjustments


Assets









Current assets:









Cash and cash equivalents

$             9,254


$              8,428


$               826


$                  —


Receivables – trade and other

8,477


3,279


435


4,763

1,2

Receivables – finance

8,898



13,828


(4,930)

2

Prepaid expenses and other current assets

2,788


2,567


358


(137)

3

Inventories

14,038


14,038




Total current assets

43,455


28,312


15,447


(304)











Property, plant and equipment – net

12,090


8,172


3,918



Long-term receivables – trade and other

1,204


375


204


625

1,2

Long-term receivables – finance

12,707



13,358


(651)

2

Noncurrent deferred and refundable income taxes

1,840


2,396


105


(661)

4

Intangible assets

1,042


1,042




Goodwill

6,324


6,324




Other assets

4,131


3,388


1,952


(1,209)

5

Total assets

$           82,793


$             50,009


$           34,984


$             (2,200)











Liabilities









Current liabilities:









Short-term borrowings

$             5,404


$                    9


$            5,395


$                  —


Accounts payable

8,154


8,079


242


(167)

6

Accrued expenses

3,757


3,385


372



Accrued wages, salaries and employee benefits

2,242


2,186


56



Customer advances

1,087


1,086


1



Dividends payable

595


595




Other current liabilities

2,256


1,773


642


(159)

4,7

Long-term debt due within one year

6,352


45


6,307



Total current liabilities

29,847


17,158


13,015


(326)











Long-term debt due after one year

26,033


9,772


16,287


(26)

8

Liability for postemployment benefits

5,592


5,592




Other liabilities

4,805


4,106


1,425


(726)

4

Total liabilities

66,277


36,628


30,727


(1,078)











Shareholders' equity









Common stock

6,398


6,398


919


(919)

9

Treasury stock

(27,643)


(27,643)




Profit employed in the business

39,282


35,390


3,881


11

9

Accumulated other comprehensive income (loss)

(1,553)


(799)


(754)



Noncontrolling interests

32


35


211


(214)

9

Total shareholders' equity

16,516


13,381


4,257


(1,122)


Total liabilities and shareholders' equity

$           82,793


$             50,009


$           34,984


$             (2,200)



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, 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

(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 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.

 

Caterpillar Inc.
Supplemental Data for Cash Flow
For the Twelve Months Ended December 31, 2021
(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

$              6,493


$              6,676


$                678


$              (861)

1,5

Adjustments for non-cash items:









Depreciation and amortization

2,352


1,550


802



Actuarial (gain) loss on pension and postretirement benefits

(833)


(833)




Provision (benefit) for deferred income taxes

Provision (benefit) for deferred income taxes

(383)


(329)


(54)



Other

216


131


(209)


294

2

Changes in assets and liabilities, net of acquisitions and divestitures:









Receivables – trade and other

(1,259)


(463)


47


(843)

2,3

Inventories

(2,586)


(2,581)



(5)

2

Accounts payable

2,041


2,015


49


(23)

2

Accrued expenses

196


288


(92)



Accrued wages, salaries and employee benefits

1,107


1,066


41



Customer advances

34


33


1



Other assets – net

(97)


(200)


25


78

2

Other liabilities – net

(83)


(176)


132


(39)

2

Net cash provided by (used for) operating activities

7,198


7,177


1,420


(1,399)


Cash flow from investing activities:









Capital expenditures – excluding equipment leased to others

(1,093)


(1,088)


(16)


11

2

Expenditures for equipment leased to others

(1,379)


(41)


(1,347)


9

2

Proceeds from disposals of leased assets and property, plant and equipment

1,265


186


1,095


(16)

2

Additions to finance receivables

(13,002)



(13,845)


843

3

Collections of finance receivables

12,430



13,337


(907)

3

Net intercompany purchased receivables



(609)


609

3

Proceeds from sale of finance receivables

51



51



Net intercompany borrowings


1,000


5


(1,005)

4

Investments and acquisitions (net of cash acquired)

(490)


(490)




Proceeds from sale of businesses and investments (net of cash sold)

36


36




Proceeds from sale of securities

785


274


511



Investments in securities

(1,766)


(1,189)


(577)



Other – net

79


81


(2)



Net cash provided by (used for) investing activities

(3,084)


(1,231)


(1,397)


(456)


Cash flow from financing activities:









Dividends paid

(2,332)


(2,332)


(850)


850

5

Common stock issued, including treasury shares reissued

135


135




Common shares repurchased

(2,668)


(2,668)




Net intercompany borrowings


(5)


(1,000)


1,005

4

Proceeds from debt issued > 90 days

6,989


494


6,495



Payments on debt > 90 days

(9,796)


(1,919)


(7,877)



Short-term borrowings – net < 90 days

3,488


(1)


3,489



Other – net

(4)


(4)




Net cash provided by (used for) financing activities

(4,188)


(6,300)


257


1,855


Effect of exchange rate changes on cash

(29)


(35)


6



Increase (decrease) in cash, cash equivalents and restricted cash

(103)


(389)


286



Cash, cash equivalents and restricted cash at beginning of period

9,366


8,822


544



Cash, cash equivalents and restricted cash at end of period

$              9,263


$              8,433


$                830


$                  —



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.

 

Cision View original content:https://www.prnewswire.com/news-releases/caterpillar-reports-fourth-quarter-and-full-year-2022-results-301734585.html

SOURCE Caterpillar Inc.

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