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0000018230false00000182302022-08-022022-08-020000018230us-gaap:CommonStockMember2022-08-022022-08-020000018230cat:A8DebenturesDueFebruary152023Member2022-08-022022-08-020000018230cat:A5.3DebenturesDueSeptember152035Member2022-08-022022-08-02

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
cat-20220802_g1.jpg
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 2, 2022
CATERPILLAR INC.
(Exact name of registrant as specified in its charter)
Delaware 1-768 37-0602744
(State or other jurisdiction of incorporation)
 (Commission File Number)
 (I.R.S Employer Identification No.)
510 Lake Cook Road, Suite 100, Deerfield, Illinois 60015
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (224) 551-4000
Former name or former address, if changed since last report: N/A
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:


Title of each class Trading Symbol (s) Name of each exchange which registered
Common Stock ($1.00 par value) CAT The New York Stock Exchange
8% Debentures due February 15, 2023 CAT23 The New York Stock Exchange
5.3% Debentures due September 15, 2035 CAT35 The New York Stock Exchange
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined by Rule 405 of the Securities Act of
1933 (17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐




Item 2.02. Results of Operations and Financial Condition.
On August 2, 2022, Caterpillar Inc. issued a press release reporting its financial results for the quarter ended June 30, 2022. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated into this Item 2.02 by reference.
Item 7.01. Regulation FD Disclosure.
Caterpillar Inc. is furnishing supplemental information concerning (i) retail sales of machines to end users and (ii) retail sales of power systems (including reciprocating and turbine engines and locomotives) to end users and Original Equipment Manufacturers ("OEMs"). This supplemental information is attached hereto as Exhibit 99.2 and incorporated into this Item 7.01 by reference.

The information in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished in accordance with the provisions of General Instruction B.2 of Form 8-K.

Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
The following is furnished as an exhibit to this report:
99.1
99.2
104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.



























 SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CATERPILLAR INC.
August 2, 2022 By: /s/ Suzette M. Long
Suzette M. Long
Chief Legal Officer and General Counsel


EX-99.1 2 ex991toformcat2q2022earnin.htm EX-99.1 Document

Exhibit 99.1
Caterpillar Inc.                                     
2Q 2022 Earnings Release

August 2, 2022

FOR IMMEDIATE RELEASE
Caterpillar Reports Second-Quarter 2022 Results
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
●
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. – 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.”

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CONSOLIDATED RESULTS
Consolidated Sales and Revenues

conssalesandrevenues2q2022a.jpg
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%
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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   

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Consolidated Operating Profit
consopprofit2q2022a.jpg
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.

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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.


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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.



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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.

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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.



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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.



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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.


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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)
Caterpillar investor relations contact: Ryan Fiedler, +1 224-551-4074 or Fiedler_Ryan_S@cat.com
Caterpillar media contact: Rachel Potts, +1 309-573-3444 or Potts_Rachel_A@cat.com 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.














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Forward-Looking Statements
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.
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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.
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14

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.
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15

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 

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16

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.

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17

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.






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18

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.
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19

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.



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20

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.
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21

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.
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22

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.
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23

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.
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24

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.
#

EX-99.2 3 ex992toformcat2qretailstat.htm EX-99.2 Document
EXHIBIT 99.2
Caterpillar Inc. (“Caterpillar”, “we” or “our”) is furnishing supplemental information concerning (i) retail sales of machines to end users and (ii) retail sales of power systems (including reciprocating and turbine engines and locomotives) to end users and Original Equipment Manufacturers (“OEMs”). Caterpillar sells the majority of its machinery and power systems to independently owned and operated dealers and OEMs to meet the demands of their customers, the end users. Caterpillar believes that this supplemental information may help readers better understand Caterpillar’s business and the industries it serves, particularly in light of the time delay between Caterpillar’s sales to dealers and dealers’ sales to end users.
In this report, we are providing information by geographic region for retail sales of machines in each of our Resource Industries and Construction Industries reportable segments, as well as information regarding retail sales of our machines globally. For our Energy & Transportation reportable segment, we are providing retail sales information by major end use.
The information presented in this report is primarily based on unaudited reports that are voluntarily provided to Caterpillar by its independent dealers and which are not subject to Caterpillar’s internal controls over financial reporting. Accordingly, the data collected from such third parties may not be accurate and/or complete. As such, the information presented in this report is intended solely to convey an approximate indication of the trends, direction and magnitude of retail sales and is not intended to be an estimate, approximation or prediction of, or substitute for, Caterpillar’s audited financial statements filed with the U.S. Securities and Exchange Commission. This information is furnished under this report with the U.S. Securities and Exchange Commission. Caterpillar does not undertake to update or adjust prior period information.

























EXHIBIT 99.2
Caterpillar Inc.
Quarterly Retail Sales Statistics
         
Machines and E&T Combined 2nd Quarter 2022 1st Quarter 2022 4th Quarter 2021 3rd Quarter 2021
World DOWN 3% UP 2% UP 7% UP 14%
         
Machines 2nd Quarter 2022 1st Quarter 2022 4th Quarter 2021 3rd Quarter 2021
Asia/Pacific DOWN 14% DOWN 18% DOWN 8% DOWN 4%
EAME DOWN 3% UP 10% UP 24% UP 22%
Latin America UP 18% DOWN 1% UP 15% UP 57%
North America DOWN 3% UP 17% UP 1% UP 19%
World DOWN 4% UP 3% UP 5% UP 17%
Resource Industries (RI) 2nd Quarter 2022 1st Quarter 2022 4th Quarter 2021 3rd Quarter 2021
Asia/Pacific UP 3% UP 23% UP 47% UP 18%
EAME DOWN 1% UP 17% UP 13% UP 20%
Latin America DOWN 4% DOWN 34% DOWN 20% UP 130%
North America DOWN 7% UP 36% DOWN 7% UP 30%
World DOWN 2% UP 13% UP 10% UP 33%
Construction Industries (CI) 2nd Quarter 2022 1st Quarter 2022 4th Quarter 2021 3rd Quarter 2021
Asia/Pacific DOWN 21% DOWN 31% DOWN 23% DOWN 10%
EAME DOWN 3% UP 8% UP 29% UP 23%
Latin America UP 28% UP 25% UP 40% UP 31%
North America DOWN 3% UP 14% UP 3% UP 17%
World DOWN 4% UNCHANGED UP 4% UP 12%
Reported in dollars and based on unit sales as reported primarily by dealers.  
         
Energy & Transportation (E&T) Retail Sales by industry for the quarter ended as indicated compared with the same period of the prior year:
Energy & Transportation (E&T) 2nd Quarter 2022 1st Quarter 2022 4th Quarter 2021 3rd Quarter 2021
Power Gen UP 7% DOWN 10% UP 3% DOWN 8%
Industrial UP 19% UP 26% UP 30% UP 36%
Transportation DOWN 9% UP 50% UP 42% DOWN 12%
Oil & Gas DOWN 13% DOWN 12% UP 9% UP 21%
Total UNCHANGED DOWN 1% UP 12% UP 8%
Reported in dollars based on reporting from dealers and direct sales.    











EXHIBIT 99.2
Glossary of Terms

Construction Industries: Our Construction Industries segment is primarily responsible for supporting customers using machinery in infrastructure, forestry and building construction. The majority of machine sales in this segment are made in the heavy and general construction, rental, quarry and aggregates markets and mining. The Construction Industries product portfolio primarily includes the following machines:

· asphalt pavers · forestry machines · small and medium
· backhoe loaders
 · material handlers track-type tractors
· compactors
 · motorgraders · track-type loaders
· cold planers
 · pipelayers
· wheel excavators
· compact track and
 · road reclaimers
· compact, small and medium
multi-terrain loaders · skid steer loaders wheel loaders
· mini, small, medium · telehandlers
and large track excavators
Effective September 2019, Caterpillar has divested its Forestry product segment. Those products have been removed from the Construction Industries product portfolio where any remaining product Dealer Inventory will be reported in Machines as they are depleted.
EAME: Europe, Africa, Commonwealth of Independent States and Middle East.
Energy & Transportation: Our Energy & Transportation segment is primarily responsible for supporting customers using reciprocating engines, generator sets, turbines, diesel-electric locomotives, integrated systems and solutions, and certain related parts across industries serving oil and gas, power generation, industrial and marine applications as well as rail-related businesses.

Resource Industries: Our Resource Industries segment is primarily responsible for supporting customers using machinery in mining, heavy construction, and quarry and aggregates. The Resource Industries product portfolio primarily includes the following machines:

· electric rope shovels · longwall miners · landfill compactors
· draglines · large wheel loaders · soil compactors
· hydraulic shovels · off-highway trucks · machinery components
· rotary drills · articulated trucks · autonomous ready vehicles and
· hard rock vehicles · wheel tractor scrapers solutions
· large track-type tractors · wheel dozers
· large mining trucks
For purposes of this report, retail sales of longwall miners are not included in the information presented above for Resource Industries or Machines or Machines and E&T Combined figures.








EXHIBIT 99.2
FORWARD-LOOKING STATEMENTS
Certain statements in this report 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.