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Caterpillar Reports Second-Quarter 2022 Results

  • Second-quarter 2022 sales and revenues increased 11% to $14.2 billion
  • Second-quarter 2022 profit per share of $3.13; adjusted profit per share of $3.18
  • Returned $1.7 billion to shareholders through share repurchases and dividends in the quarter

DEERFIELD, Ill., Aug. 2, 2022 /PRNewswire/ — 



Second Quarter

($ in billions except profit per share)


2022

2021

Sales and Revenues


$14.2

$12.9

Profit Per Share


$3.13

$2.56

Adjusted Profit Per Share


$3.18

$2.60

Caterpillar Inc. (NYSE: CAT) announced second-quarter 2022 sales and revenues of $14.2 billion, an 11% increase compared with $12.9 billion in the second quarter of 2021. The increase was primarily due to favorable price realization and higher sales volume.

Operating profit margin was 13.6% for the second quarter of 2022, compared with 13.9% for the second quarter of 2021. Second-quarter 2022 profit per share was $3.13, compared with second-quarter 2021 profit per share of $2.56. Adjusted profit per share in the second quarter of 2022 was $3.18, compared with second-quarter 2021 adjusted profit per share of $2.60. Adjusted profit per share for both quarters excluded restructuring costs. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 13.

For the first half of 2022, enterprise operating cash flow was $2.5 billion. In the quarter, the company repurchased $1.1 billion of Caterpillar common stock and paid dividends of $0.6 billion. The company ended the period with $6.0 billion of enterprise cash.

“Our team delivered another good quarter with double-digit top line and adjusted profit per share growth despite ongoing supply chain challenges,” said Chairman and CEO Jim Umpleby. “Our second-quarter results reflect healthy demand across most of our end markets. We remain focused on executing our strategy for long-term profitable growth.”

CONSOLIDATED RESULTS

Consolidated Sales and Revenues

Consolidated Sales and Revenues Comparison  

Second Quarter 2022 vs. Second Quarter 2021 

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

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the second quarter of 2021 (at left) and the second 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 second quarter of 2022 were $14.247 billion, an increase of $1.358 billion, or 11%, compared with $12.889 billion in the second 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, Australian dollar and Japanese yen. The increase in sales volume was driven by services, partially offset by lower sales of equipment to end users.

Sales were higher across the three primary segments.

Sales and Revenues by Segment

(Millions of dollars)

Second

Quarter

2021


Sales

Volume


Price

Realization


Currency


Inter-

Segment /

Other


Second

Quarter

2022


$

Change


%

Change

















Construction Industries

$        5,656


$           (25)


$           535


$          (122)


$           (11)


$        6,033


$           377


7 %

Resource Industries

2,547


140


317


(33)


(10)


2,961


414


16 %

Energy & Transportation

4,975


363


260


(103)


210


5,705


730


15 %

All Other Segment

128


4


1


(1)


(14)


118


(10)


(8 %)

Corporate Items and Eliminations

(1,113)


17


(8)


1


(175)


(1,278)


(165)



Machinery, Energy & Transportation

12,193


499


1,105


(258)



13,539


1,346


11 %

















Financial Products Segment

774





24


798


24


3 %

Corporate Items and Eliminations

(78)





(12)


(90)


(12)



Financial Products Revenues

696





12


708


12


2 %

















Consolidated Sales and Revenues

$       12,889


$           499


$        1,105


$          (258)


$            12


$       14,247


$        1,358


11 %

















 

Sales and Revenues by Geographic Region


North America


Latin America


EAME


Asia/Pacific


External Sales

and Revenues


Inter-Segment


Total Sales

and Revenues

(Millions of dollars)

$


% Chg


$


% Chg


$


% Chg


$


% Chg


$


% Chg


$


% Chg


$


% Chg

Second Quarter 2022




























Construction Industries

$   3,006


20 %


$     635


48 %


$   1,202


(7 %)


$   1,148


(17 %)


$   5,991


7 %


$       42


(21 %)


$   6,033


7 %

Resource Industries

1,027


29 %


466


(4 %)


489


(7 %)


913


38 %


2,895


17 %


66


(13 %)


2,961


16 %

Energy & Transportation

2,277


14 %


382


53 %


1,215


2 %


766


12 %


4,640


13 %


1,065


25 %


5,705


15 %

All Other Segment

18


64 %



(100 %)


5


25 %


15


(17 %)


38


12 %


80


(15 %)


118


(8 %)

Corporate Items and Eliminations

(20)




(2)







(3)




(25)




(1,253)




(1,278)



Machinery, Energy & Transportation

6,308


20 %


1,481


27 %


2,911


(3 %)


2,839


4 %


13,539


11 %



— %


13,539


11 %





























Financial Products Segment

505


3 %


87


34 %


97


1 %


109


(13 %)


798


3 %



— %


798


3 %

Corporate Items and Eliminations

(42)




(21)




(10)




(17)




(90)







(90)



Financial Products Revenues

463


3 %


66


22 %


87


— %


92


(12 %)


708


2 %



— %


708


2 %





























Consolidated Sales and Revenues

$   6,771


18 %


$   1,547


27 %


$   2,998


(3 %)


$   2,931


3 %


$ 14,247


11 %


$        —


— %


$ 14,247


11 %





























Second Quarter 2021




























Construction Industries

$   2,498




$     430




$   1,291




$   1,384




$   5,603




$       53




$   5,656



Resource Industries

799




487




525




660




2,471




76




2,547



Energy & Transportation

1,992




250




1,196




682




4,120




855




4,975



All Other Segment

11




1




4




18




34




94




128



Corporate Items and Eliminations

(31)




(1)




(1)




(2)




(35)




(1,078)




(1,113)



Machinery, Energy & Transportation

5,269




1,167




3,015




2,742




12,193







12,193































Financial Products Segment

488




65




96




125




774







774



Corporate Items and Eliminations

(38)




(11)




(9)




(20)




(78)







(78)



Financial Products Revenues

450




54




87




105




696







696































Consolidated Sales and Revenues

$   5,719




$   1,221




$   3,102




$   2,847




$ 12,889




$        —




$ 12,889































Consolidated Operating Profit

Consolidated Operating Profit Comparison  

Second Quarter 2022 vs. Second Quarter 2021 

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

The chart above graphically illustrates reasons for the change in consolidated operating profit between the second quarter of 2021 (at left) and the second 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 second quarter of 2022 was $1.944 billion, an increase of $155 million, or 9%, compared with $1.789 billion in the second quarter of 2021. The increase was primarily due to favorable price realization and higher sales volume, partially offset by higher manufacturing costs and higher selling, general and administrative (SG&A) and research and development (R&D) expenses. Unfavorable manufacturing costs largely reflected higher material and freight costs. The increase in SG&A/R&D expenses was mainly driven by investments aligned with the company’s strategy for profitable growth and higher short-term incentive compensation expense.

Profit (Loss) by Segment

(Millions of dollars)

Second Quarter

2022


Second Quarter

2021


$

Change


%

 Change

Construction Industries

$                    989


$                 1,029


$                    (40)


(4 %)

Resource Industries

355


349


6


2 %

Energy & Transportation

659


738


(79)


(11 %)

All Other Segment

31


(10)


41


n/a

Corporate Items and Eliminations

(230)


(453)


223



Machinery, Energy & Transportation

1,804


1,653


151


9 %









Financial Products Segment

217


243


(26)


(11 %)

Corporate Items and Eliminations

17


(29)


46



Financial Products

234


214


20


9 %









Consolidating Adjustments

(94)


(78)


(16)











Consolidated Operating Profit

$                 1,944


$                 1,789


$                    155


9 %

Corporate Items and Eliminations included corporate-level expenses, timing differences (as some expenses are reported in segment profit on a cash basis), methodology differences between segment and consolidated external reporting (the company values segment inventories and cost of sales using a current cost methodology), certain restructuring costs and inter-segment eliminations.









Other Profit/Loss and Tax Items

  • Other income (expense) in the second quarter of 2022 was income of $260 million, compared with income of $201 million in the second quarter of 2021. The change was primarily driven by favorable impacts from foreign currency exchange, partially offset by unfavorable impacts from commodity hedges, unrealized losses on marketable securities and lower pension and other postemployment benefit (OPEB) plan income.



  • The provision for income taxes for the second quarter of 2022 reflected an estimated annual global tax rate of approximately 24%, compared with 26% for the second quarter of 2021, excluding the discrete items discussed below. The comparative tax rate for full-year 2021 was 23%.



    In the second quarter of 2022, the company recorded discrete tax benefits of $55 million, primarily for a prior year tax adjustment due to a change in estimate, compared with a $17 million benefit in the second quarter of 2021 for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense.

 

CONSTRUCTION INDUSTRIES

(Millions of dollars)

















Segment Sales

















Second

Quarter 2021


Sales

Volume


Price

Realization


Currency


Inter-

Segment


Second

Quarter 2022


$

 Change


%

 Change

Total Sales


$       5,656


$           (25)


$        535


$         (122)


$              (11)


$          6,033


$      377


7 %


















Sales by Geographic Region











Second

Quarter 2022


Second

Quarter 2021


$

Change


%

Change









North America


$       3,006


$       2,498


$        508


20 %









Latin America


635


430


205


48 %









EAME


1,202


1,291


(89)


(7 %)









Asia/Pacific


1,148


1,384


(236)


(17 %)









External Sales


5,991


5,603


388


7 %









Inter-segment


42


53


(11)


(21 %)









Total Sales


$       6,033


$       5,656


$        377


7 %


























Segment Profit











Second

Quarter 2022


Second

Quarter 2021


 

Change


%

Change









Segment Profit


$          989


$       1,029


$        (40)


(4 %)









Segment Profit Margin


16.4 %


18.2 %


          (1.8 pts)




























Construction Industries’ total sales were $6.033 billion in the second quarter of 2022, an increase of $377 million, or 7%, compared with $5.656 billion in the second quarter of 2021. The increase was due to favorable price realization, partially offset by unfavorable currency impacts primarily related to the euro, Japanese yen and Australian dollar. Sales volume decreased slightly as lower sales of equipment to end users was mostly offset by higher sales of aftermarket parts.

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

Construction Industries’ profit was $989 million in the second quarter of 2022, a decrease of $40 million, or 4%, compared with $1.029 billion in the second quarter of 2021. Favorable price realization was offset by unfavorable manufacturing costs and lower sales volume. Unfavorable manufacturing costs largely reflected higher material and freight costs.

RESOURCE INDUSTRIES

(Millions of dollars)

















Segment Sales

















Second

Quarter 2021


Sales

Volume


Price

Realization


Currency


Inter-

Segment


Second

Quarter 2022


$

 Change


%

 Change

Total Sales


$       2,547


$          140


$        317


$           (33)


$              (10)


$          2,961


$      414


16 %


















Sales by Geographic Region











Second

Quarter 2022


Second

Quarter 2021


$

Change


%

Change









North America


$       1,027


$          799


$        228


29 %









Latin America


466


487


(21)


(4 %)









EAME


489


525


(36)


(7 %)









Asia/Pacific


913


660


253


38 %









External Sales


2,895


2,471


424


17 %









Inter-segment


66


76


(10)


(13 %)









Total Sales


$       2,961


$       2,547


$        414


16 %


























Segment Profit











Second

Quarter 2022


Second

Quarter 2021


 

Change


%

Change









Segment Profit


$          355


$          349


$           6


2 %









Segment Profit Margin


12.0 %


13.7 %


          (1.7 pts)




























Resource Industries’ total sales were $2.961 billion in the second quarter of 2022, an increase of $414 million, or 16%, compared with $2.547 billion in the second quarter of 2021. The increase was primarily due to favorable price realization and higher sales volume. The increase in sales volume was due to higher sales of aftermarket parts.

Resource Industries’ profit was $355 million in the second quarter of 2022, an increase of $6 million, or 2%, compared with $349 million in the second quarter of 2021. Unfavorable manufacturing costs were offset by favorable price realization and higher sales volume. Unfavorable manufacturing costs largely reflected higher material and freight costs.

ENERGY & TRANSPORTATION

(Millions of dollars)

















Segment Sales

















Second

Quarter 2021


Sales

Volume


Price

Realization


Currency


Inter-

Segment


Second

Quarter 2022


$

 Change


%

 Change

Total Sales


$       4,975


$          363


$        260


$         (103)


$             210


$          5,705


$      730


15 %


















Sales by Application











Second

Quarter 2022


Second

Quarter 2021


$

Change


%

Change









Oil and Gas


$       1,232


$       1,137


$          95


8 %









Power Generation


1,186


1,052


134


13 %









Industrial


1,117


899


218


24 %









Transportation


1,105


1,032


73


7 %









External Sales


4,640


4,120


520


13 %









Inter-segment


1,065


855


210


25 %









Total Sales


$       5,705


$       4,975


$        730


15 %


























Segment Profit











Second

Quarter 2022


Second

Quarter 2021


 

Change


%

Change









Segment Profit


$          659


$          738


$        (79)


(11 %)









Segment Profit Margin


11.6 %


14.8 %


          (3.2 pts)




























Energy & Transportation’s total sales were $5.705 billion in the second quarter of 2022, an increase of $730 million, or 15%, compared with $4.975 billion in the second quarter of 2021. Sales increased across all applications and inter-segment sales.

  • Oil and Gas – Sales increased due to higher sales of reciprocating engine aftermarket parts and engines used in well servicing and gas compression applications, primarily in North America, partially offset by lower sales for turbines and turbine-related services.
  • Power Generation – Sales rose due to higher sales volume in small reciprocating engine applications, reciprocating engine aftermarket parts and turbines and turbine-related services.
  • Industrial – Sales were up due to higher sales volumes across all regions.
  • Transportation – Sales increased in reciprocating engines aftermarket parts and rail services.

Energy & Transportation’s profit was $659 million in the second quarter of 2022, a decrease of $79 million, or 11%, compared with $738 million in the second quarter of 2021. The decrease was mainly due to unfavorable manufacturing costs and higher SG&A/R&D expenses, partially offset by favorable price realization and higher sales volume. Unfavorable manufacturing costs largely reflected higher material and freight 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.

FINANCIAL PRODUCTS SEGMENT

(Millions of dollars)

















Revenues by Geographic Region











Second

Quarter 2022


Second

Quarter 2021


$

Change


%

Change









North America


$             505


$             488


$               17


3 %









Latin America


87


65


22


34 %









EAME


97


96


1


1 %









Asia/Pacific


109


125


(16)


(13 %)









Total Revenues


$             798


$             774


$               24


3 %


























Segment Profit











Second

Quarter 2022


Second

Quarter 2021


 

Change


%

Change









Segment Profit


$             217


$             243


$              (26)


(11 %)


























Financial Products’ segment revenues were $798 million in the second quarter of 2022, an increase of $24 million, or 3%, compared with $774 million in the second quarter of 2021.The increase was primarily due to a favorable impact from returned or repossessed equipment in North America and higher average financing rates in Latin America, partially offset by lower average earning assets in Asia/Pacific.

Financial Products’ segment profit was $217 million in the second quarter of 2022, a decrease of $26 million, or 11%, compared with $243 million in the second quarter of 2021. The decrease was mainly due to an unfavorable impact from equity securities in Insurance Services and a higher provision for credit losses at Cat Financial, partially offset by a favorable impact from returned or repossessed equipment. 

At the end of the second quarter of 2022, past dues at Cat Financial were 2.19%, compared with 2.58% at the end of the second quarter of 2021. The decrease in past dues was mostly driven by the Caterpillar Power Finance, EAME and North America portfolios. Write-offs, net of recoveries, were less than $1 million for the second quarter of 2022, compared with $54 million for the second quarter of 2021. As of June 30, 2022, Cat Financial’s allowance for credit losses totaled $376 million, or 1.41% of finance receivables, compared with $357 million, or 1.29% of finance receivables at March 31, 2022. The increase in allowance for credit losses included a higher reserve for the Russia and Ukraine portfolios. The allowance for credit losses at year-end 2021 was $337 million, or 1.22% of finance receivables.

Corporate Items and Eliminations

Expense for corporate items and eliminations was $213 million in the second quarter of 2022, a decrease of $269 million from the second quarter of 2021, primarily driven by lower expenses due to timing differences, favorable impacts of segment reporting methodology and a favorable change in fair value adjustments related to deferred compensation plans, partially offset by higher corporate costs.

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, August 2, 2022.

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 Tuesday, August 2, 2022, to discuss its 2022 second-quarter results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx.

About Caterpillar

With 2021 sales and revenues of $51.0 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 one significant item in order for the company’s results to be meaningful to readers. This item consists of (i) restructuring costs, which were incurred to generate longer-term benefits. The company does not consider this item indicative of earnings from ongoing business activities and believes the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company’s period-over-period results. The company intends to discuss adjusted profit per share for the fourth quarter and full-year 2022, excluding mark-to-market gains or losses for remeasurement of pension and other postemployment benefit plans along with any other discrete items.

Reconciliations of adjusted 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 June 30, 2022 – U.S. GAAP


$        1,944


13.6 %


$        2,096


$          427


20.4 %


$        1,673


$         3.13

Restructuring costs


28


0.2 %


28


2


10.0 %


26


$         0.05

Three Months Ended June 30, 2022 – Adjusted


$        1,972


13.8 %


$        2,124


$          429


20.2 %


$        1,699


$         3.18

Three Months Ended June 30, 2021 – U.S. GAAP


$        1,789


13.9 %


$        1,870


$          470


25.1 %


$        1,413


$         2.56

Restructuring costs


25


0.2 %


25


3


15.0 %


22


$         0.04

Three Months Ended June 30, 2021 – Adjusted


$        1,814


14.1 %


$        1,895


$          473


25.0 %


$        1,435


$         2.60
















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 14 to 24 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

June 30,


Six Months Ended

June 30,


2022


2021


2022


2021

Sales and revenues:








   Sales of Machinery, Energy & Transportation

$       13,539


$      12,193


$       26,425


$     23,384

   Revenues of Financial Products

708


696


1,411


1,392

   Total sales and revenues

14,247


12,889


27,836


24,776









Operating costs:








   Cost of goods sold

9,975


8,881


19,534


16,893

   Selling, general and administrative expenses

1,425


1,364


2,771


2,603

   Research and development expenses

480


446


937


820

   Interest expense of Financial Products

120


116


226


241

   Other operating (income) expenses

303


293


569


616

   Total operating costs

12,303


11,100


24,037


21,173









Operating profit

1,944


1,789


3,799


3,603









   Interest expense excluding Financial Products

108


120


217


262

   Other income (expense)

260


201


513


526









Consolidated profit before taxes

2,096


1,870


4,095


3,867









   Provision (benefit) for income taxes

427


470


896


945

   Profit of consolidated companies

1,669


1,400


3,199


2,922









   Equity in profit (loss) of unconsolidated affiliated companies

4


14


11


23









Profit of consolidated and affiliated companies

1,673


1,414


3,210


2,945









Less: Profit (loss) attributable to noncontrolling interests


1



2









Profit 1

$         1,673


$        1,413


$         3,210


$       2,943

















Profit per common share

$          3.15


$          2.58


$          6.03


$         5.38

Profit per common share — diluted 2

$          3.13


$          2.56


$          5.99


$         5.33









Weighted-average common shares outstanding (millions)








– Basic

531.0


547.9


532.6


547.1

– Diluted 2

534.1


552.1


536.1


551.8









 

1

Profit attributable to common shareholders.

2

Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

 

Caterpillar Inc.

Condensed Consolidated Statement of Financial Position

(Unaudited)

(Millions of dollars)



June 30,

2022


December 31,

2021

Assets




Current assets:




Cash and cash equivalents

$                     6,014


$                     9,254

Receivables – trade and other

8,393


8,477

Receivables – finance

8,922


8,898

Prepaid expenses and other current assets

2,772


2,788

Inventories

15,881


14,038

Total current assets

41,982


43,455





Property, plant and equipment – net

11,744


12,090

Long-term receivables – trade and other

1,197


1,204

Long-term receivables – finance

12,372


12,707

Noncurrent deferred and refundable income taxes

2,121


1,840

Intangible assets

889


1,042

Goodwill

6,195


6,324

Other assets

4,607


4,131

Total assets

$                   81,107


$                   82,793





Liabilities




Current liabilities:




Short-term borrowings:




— Machinery, Energy & Transportation

$                           —


$                            9

— Financial Products

5,002


5,395

Accounts payable

8,092


8,154

Accrued expenses

3,782


3,757

Accrued wages, salaries and employee benefits

1,772


2,242

Customer advances

1,608


1,087

Dividends payable

633


595

Other current liabilities

2,333


2,256

Long-term debt due within one year:




— Machinery, Energy & Transportation

124


45

— Financial Products

5,617


6,307

Total current liabilities

28,963


29,847





Long-term debt due after one year:




— Machinery, Energy & Transportation

9,589


9,746

— Financial Products

16,630


16,287

Liability for postemployment benefits

5,160


5,592

Other liabilities

5,006


4,805

Total liabilities

65,348


66,277





Shareholders’ equity




Common stock

6,464


6,398

Treasury stock

(29,501)


(27,643)

Profit employed in the business

41,263


39,282

Accumulated other comprehensive income (loss)

(2,499)


(1,553)

Noncontrolling interests

32


32

Total shareholders’ equity

15,759


16,516

Total liabilities and shareholders’ equity

$                   81,107


$                   82,793

 

Caterpillar Inc.

Condensed Consolidated Statement of Cash Flow

(Unaudited)

(Millions of dollars)



Six Months Ended June 30,


2022


2021

Cash flow from operating activities:




Profit of consolidated and affiliated companies

$             3,210


$              2,945

Adjustments for non-cash items:




Depreciation and amortization

1,110


1,173

Provision (benefit) for deferred income taxes

(283)


68

Other

49


(20)

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




Receivables – trade and other

283


(343)

Inventories

(2,003)


(1,179)

Accounts payable

427


893

Accrued expenses

(80)


22

Accrued wages, salaries and employee benefits

(445)


618

Customer advances

514


49

Other assets – net

86


(47)

Other liabilities – net

(322)


(133)

Net cash provided by (used for) operating activities

2,546


4,046

Cash flow from investing activities:




Capital expenditures – excluding equipment leased to others

(586)


(419)

Expenditures for equipment leased to others

(688)


(681)

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

468


636

Additions to finance receivables

(6,705)


(6,203)

Collections of finance receivables

6,519


5,580

Proceeds from sale of finance receivables

21


27

Investments and acquisitions (net of cash acquired)

(36)


(398)

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

1


28

Proceeds from sale of securities

1,204


276

Investments in securities

(2,118)


(500)

Other – net

32


(63)

Net cash provided by (used for) investing activities

(1,888)


(1,717)

Cash flow from financing activities:




Dividends paid

(1,187)


(1,126)

Common stock issued, including treasury shares reissued

4


123

Common shares repurchased

(1,924)


(251)

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

4,015


4,906

Payments on debt (original maturities greater than three months)

(4,246)


(5,966)

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

(553)


1,460

Other – net


(2)

Net cash provided by (used for) financing activities

(3,891)


(856)

Effect of exchange rate changes on cash

(7)


3

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

(3,240)


1,476

Cash, cash equivalents and restricted cash at beginning of period

9,263


9,366

Cash, cash equivalents and restricted cash at end of period

$             6,023


$            10,842

 

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 June 30, 2022

(Unaudited)

(Millions of dollars)





Supplemental Consolidating Data



Consolidated


Machinery,

Energy &

Transportation


Financial

Products


Consolidating

Adjustments


Sales and revenues:









Sales of Machinery, Energy & Transportation

$          13,539


$                13,539


$                —


$                 —


Revenues of Financial Products

708



828


(120)

1

Total sales and revenues

14,247


13,539


828


(120)











Operating costs:









Cost of goods sold

9,975


9,978



(3)

2

Selling, general and administrative expenses

1,425


1,261


167


(3)

2

Research and development expenses

480


480




Interest expense of Financial Products

120



120



Other operating (income) expenses

303


16


307


(20)

2

Total operating costs

12,303


11,735


594


(26)











Operating profit

1,944


1,804


234


(94)











Interest expense excluding Financial Products

108


108




Other income (expense)

260


180


(14)


94

3










Consolidated profit before taxes

2,096


1,876


220












Provision (benefit) for income taxes

427


374


53



Profit of consolidated companies

1,669


1,502


167












Equity in profit (loss) of unconsolidated affiliated companies

4


7



(3)

4










Profit of consolidated and affiliated companies

1,673


1,509


167


(3)











Less: Profit (loss) attributable to noncontrolling interests



3


(3)

5










Profit 6

$            1,673


$                  1,509


$              164


$                 —


 

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 June 30, 2021

(Unaudited)

(Millions of dollars)





Supplemental Consolidating Data



Consolidated


Machinery,

Energy &

Transportation


Financial

Products


Consolidating

Adjustments


Sales and revenues:









Sales of Machinery, Energy & Transportation

$          12,193


$              12,193


$                —


$                 —


Revenues of Financial Products

696



796


(100)

1

Total sales and revenues

12,889


12,193


796


(100)











Operating costs:









Cost of goods sold

8,881


8,884



(3)

2

Selling, general and administrative expenses

1,364


1,210


159


(5)

2

Research and development expenses

446


446




Interest expense of Financial Products

116



116



Other operating (income) expenses

293



307


(14)

2

Total operating costs

11,100


10,540


582


(22)











Operating profit

1,789


1,653


214


(78)











Interest expense excluding Financial Products

120


120




Other income (expense)

201


445


28


(272)

3










Consolidated profit before taxes

1,870


1,978


242


(350)











Provision (benefit) for income taxes

470


415


55



Profit of consolidated companies

1,400


1,563


187


(350)











Equity in profit (loss) of unconsolidated affiliated companies

14


17



(3)

4










Profit of consolidated and affiliated companies

1,414


1,580


187


(353)











Less: Profit (loss) attributable to noncontrolling interests

1


1


3


(3)

5










Profit 6

$            1,413


$                1,579


$              184


$              (350)


 

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 Six Months Ended June 30, 2022

(Unaudited)

(Millions of dollars)





Supplemental Consolidating Data



Consolidated


Machinery,

Energy &

Transportation


Financial

Products


Consolidating

Adjustments


Sales and revenues:









Sales of Machinery, Energy & Transportation

$          26,425


$                26,425


$                —


$                 —


Revenues of Financial Products

1,411



1,641


(230)

1

Total sales and revenues

27,836


26,425


1,641


(230)











Operating costs:









Cost of goods sold

19,534


19,538



(4)

2

Selling, general and administrative expenses

2,771


2,443


339


(11)

2

Research and development expenses

937


937




Interest expense of Financial Products

226



226



Other operating (income) expenses

569


(12)


621


(40)

2

Total operating costs

24,037


22,906


1,186


(55)











Operating profit

3,799


3,519


455


(175)











Interest expense excluding Financial Products

217


217




Other income (expense)

513


337


1


175

3










Consolidated profit before taxes

4,095


3,639


456












Provision (benefit) for income taxes

896


786


110



Profit of consolidated companies

3,199


2,853


346












Equity in profit (loss) of unconsolidated affiliated companies

11


15



(4)

4










Profit of consolidated and affiliated companies

3,210


2,868


346


(4)











Less: Profit (loss) attributable to noncontrolling interests



4


(4)

5










Profit 6

$            3,210


$                  2,868


$              342


$                 —


 

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 Six Months Ended June 30, 2021

(Unaudited)

(Millions of dollars)





Supplemental Consolidating Data



Consolidated


Machinery,

Energy &

Transportation


Financial

Products


Consolidating

Adjustments


Sales and revenues:









Sales of Machinery, Energy & Transportation

$          23,384


$                23,384


$                —


$                 —


Revenues of Financial Products

1,392



1,584


(192)

1

Total sales and revenues

24,776


23,384


1,584


(192)











Operating costs:









Cost of goods sold

16,893


16,897



(4)

2

Selling, general and administrative expenses

2,603


2,324


283


(4)

2

Research and development expenses

820


820




Interest expense of Financial Products

241



241



Other operating (income) expenses

616


26


621


(31)

2

Total operating costs

21,173


20,067


1,145


(39)











Operating profit

3,603


3,317


439


(153)











Interest expense excluding Financial Products

262


262




Other income (expense)

526


676


47


(197)

3










Consolidated profit before taxes

3,867


3,731


486


(350)











Provision (benefit) for income taxes

945


827


118



Profit of consolidated companies

2,922


2,904


368


(350)











Equity in profit (loss) of unconsolidated affiliated companies

23


29



(6)

4










Profit of consolidated and affiliated companies

2,945


2,933


368


(356)











Less: Profit (loss) attributable to noncontrolling interests

2


2


6


(6)

5










Profit 6

$            2,943


$                  2,931


$              362


$              (350)


 

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 June 30, 2022

(Unaudited)

(Millions of dollars)





Supplemental Consolidating Data



Consolidated


Machinery,

Energy &

Transportation


Financial

Products


Consolidating

Adjustments


Assets









Current assets:









Cash and cash equivalents

$             6,014


$                 5,213


$               801


$                 —


Receivables – trade and other

8,393


3,422


541


4,430

1,2

Receivables – finance

8,922



13,499


(4,577)

2

Prepaid expenses and other current assets

2,772


2,706


320


(254)

3

Inventories

15,881


15,881




Total current assets

41,982


27,222


15,161


(401)











Property, plant and equipment – net

11,744


7,852


3,892



Long-term receivables – trade and other

1,197


324


398


475

1,2

Long-term receivables – finance

12,372



12,877


(505)

2

Noncurrent deferred and refundable income taxes

2,121


2,644


109


(632)

4

Intangible assets

889


889




Goodwill

6,195


6,195




Other assets

4,607


3,801


2,005


(1,199)

5

Total assets

$           81,107


$               48,927


$           34,442


$            (2,262)











Liabilities









Current liabilities:









Short-term borrowings

$             5,002


$                     —


$             5,002


$                 —


Accounts payable

8,092


8,008


231


(147)

6

Accrued expenses

3,782


3,398


384



Accrued wages, salaries and employee benefits

1,772


1,737


35



Customer advances

1,608


1,608




Dividends payable

633


633




Other current liabilities

2,333


1,865


745


(277)

4,7

Long-term debt due within one year

5,741


124


5,617



Total current liabilities

28,963


17,373


12,014


(424)











Long-term debt due after one year

26,219


9,619


16,630


(30)

8

Liability for postemployment benefits

5,160


5,160




Other liabilities

5,006


4,179


1,517


(690)

4

Total liabilities

65,348


36,331


30,161


(1,144)











Shareholders’ equity









Common stock

6,464


6,464


919


(919)

9

Treasury stock

(29,501)


(29,501)




Profit employed in the business

41,263


37,029


4,223


11

9

Accumulated other comprehensive income (loss)

(2,499)


(1,430)


(1,069)



Noncontrolling interests

32


34


208


(210)

9

Total shareholders’ equity

15,759


12,596


4,281


(1,118)


Total liabilities and shareholders’ equity

$           81,107


$               48,927


$           34,442


$            (2,262)


 

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 Six Months Ended June 30, 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

$              3,210


$              2,868


$                346


$                   (4)

1

Adjustments for non-cash items:









Depreciation and amortization

1,110


715


395



Provision (benefit) for deferred income taxes

(283)


(232)


(51)



Other

49


(54)


(93)


196

2

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









Receivables – trade and other

283


(32)


12


303

2,3

Inventories

(2,003)


(2,003)




Accounts payable

427


396


11


20

2

Accrued expenses

(80)


(89)


9



Accrued wages, salaries and employee benefits

(445)


(428)


(17)



Customer advances

514


515


(1)



Other assets – net

86


(44)


(25)


155

2

Other liabilities – net

(322)


(323)


149


(148)

2

Net cash provided by (used for) operating activities

2,546


1,289


735


522


Cash flow from investing activities:









Capital expenditures – excluding equipment leased to others

(586)


(583)


(5)


2

2

Expenditures for equipment leased to others

(688)


(11)


(683)


6

2

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

468


43


433


(8)

2

Additions to finance receivables

(6,705)



(7,175)


470

3

Collections of finance receivables

6,519



6,896


(377)

3

Net intercompany purchased receivables



615


(615)

3

Proceeds from sale of finance receivables

21



21



Net intercompany borrowings



3


(3)

4

Investments and acquisitions (net of cash acquired)

(36)


(36)




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

1


1




Proceeds from sale of securities

1,204


1,014


190



Investments in securities

(2,118)


(1,724)


(394)



Other – net

32


58


(26)



Net cash provided by (used for) investing activities

(1,888)


(1,238)


(125)


(525)


Cash flow from financing activities:









Dividends paid

(1,187)


(1,187)




Common stock issued, including treasury shares reissued

4


4




Common shares repurchased

(1,924)


(1,924)




Net intercompany borrowings


(3)



3

4

Proceeds from debt issued > 90 days

4,015



4,015



Payments on debt > 90 days

(4,246)


(13)


(4,233)



Short-term borrowings – net < 90 days

(553)


(141)


(412)



Net cash provided by (used for) financing activities

(3,891)


(3,264)


(630)


3


Effect of exchange rate changes on cash

(7)



(7)



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

(3,240)


(3,213)


(27)



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

$              6,023


$              5,220


$                803


$                  —


 

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.

 

Caterpillar Inc.

Supplemental Data for Cash Flow

For the Six Months Ended June 30, 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

$              2,945


$              2,933


$                368


$               (356)

1,5

Adjustments for non-cash items:









Depreciation and amortization

1,173


772


401



Provision (benefit) for deferred income taxes

68


111


(43)



Other

(20)


74


(169)


75

2

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









Receivables – trade and other

(343)


(206)


11


(148)

2,3

Inventories

(1,179)


(1,180)



1

2

Accounts payable

893


871


2


20

2

Accrued expenses

22


93


(71)



Accrued wages, salaries and employee benefits

618


593


25



Customer advances

49


49




Other assets – net

(47)


(154)


15


92

2

Other liabilities – net

(133)


(157)


97


(73)

2

Net cash provided by (used for) operating activities

4,046


3,799


636


(389)


Cash flow from investing activities:









Capital expenditures – excluding equipment leased to others

(419)


(417)


(7)


5

2

Expenditures for equipment leased to others

(681)


(13)


(670)


2

2

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

636


49


595


(8)

2

Additions to finance receivables

(6,203)



(6,680)


477

3

Collections of finance receivables

5,580



6,095


(515)

3

Net intercompany purchased receivables



(78)


78

3

Proceeds from sale of finance receivables

27



27



Net intercompany borrowings


1,000


2


(1,002)

4

Investments and acquisitions (net of cash acquired)

(398)


(398)




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

28


28




Proceeds from sale of securities

276


35


241



Investments in securities

(500)


(225)


(275)



Other – net

(63)


26


(89)



Net cash provided by (used for) investing activities

(1,717)


85


(839)


(963)


Cash flow from financing activities:









Dividends paid

(1,126)


(1,126)


(350)


350

5

Common stock issued, including treasury shares reissued

123


123




Common shares repurchased

(251)


(251)




Net intercompany borrowings


(2)


(1,000)


1,002

4

Proceeds from debt issued > 90 days

4,906


494


4,412



Payments on debt > 90 days

(5,966)


(1,902)


(4,064)



Short-term borrowings – net < 90 days

1,460


(6)


1,466



Other – net

(2)


(2)




Net cash provided by (used for) financing activities

(856)


(2,672)


464


1,352


Effect of exchange rate changes on cash

3


(5)


8



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

1,476


1,207


269



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

$            10,842


$            10,029


$                813


$                  —


 

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-second-quarter-2022-results-301597721.html

SOURCE Caterpillar Inc.

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