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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
cat-20230131_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): January 31, 2023
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.)
5205 N. O'Connor Blvd. Suite 100, Irving, Texas 75039
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (972) 891-7700
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 January 31, 2023, Caterpillar Inc. issued a press release reporting its financial results for the quarter ended December 31, 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.
January 31, 2023 By: /s/ Suzette M. Long
Suzette M. Long
Chief Legal Officer and General Counsel


EX-99.1 6 cat_exx991x4qx2022xearning.htm EX-99.1 Document

Exhibit 99.1
Caterpillar Inc.                                     
4Q 2022 Earnings Release

January 31, 2023

FOR IMMEDIATE RELEASE
Caterpillar Reports Fourth-Quarter and Full-Year 2022 Results
●
Fourth-quarter 2022 sales and revenues up 20%; full-year sales and revenues up 17%
●
Fourth-quarter 2022 profit per share of $2.79; adjusted profit per share of $3.86
● Fourth-quarter 2022 included an unfavorable ME&T foreign currency impact of $0.41 per share in other income (expense), which negatively impacted profit per share and adjusted profit per share
●
Full-year profit per share of $12.64; adjusted profit per share of $13.84
●
Strong operating cash flow of $7.8 billion; ended the year with $7.0 billion of enterprise cash
●
Returned $6.7 billion to shareholders through share repurchases and dividends in 2022
Fourth Quarter Full Year
($ in billions except profit per share) 2022 2021 2022 2021
Sales and Revenues $16.6 $13.8 $59.4 $51.0
Profit Per Share $2.79 $3.91 $12.64 $11.83
Adjusted Profit Per Share $3.86 $2.69 $13.84 $10.81
IRVING, Texas – Caterpillar Inc. (NYSE: CAT) today announced fourth-quarter and full-year results for 2022.
Sales and revenues for the fourth quarter of 2022 were $16.6 billion, a 20% increase compared with $13.8 billion in the fourth quarter of 2021. Fourth-quarter 2022 profit per share was $2.79, compared with $3.91 profit per share in the fourth quarter of 2021. Adjusted profit per share in the fourth quarter of 2022 was $3.86, compared with fourth-quarter 2021 adjusted profit per share of $2.69. Profit per share in the fourth quarter of 2022 included an unfavorable ME&T foreign currency impact in other income (expense) of $0.41 per share mostly related to balance sheet translation, compared with a favorable impact of $0.01 per share in the fourth quarter of 2021.
Full-year sales and revenues in 2022 were $59.4 billion, up 17% compared with $51.0 billion in 2021. The increase reflected favorable price realization and higher sales volume, driven by the impact from changes in dealer inventories, increased services and higher sales of equipment to end users. Dealers increased their inventories $2.4 billion in 2022, while remaining about flat in 2021. Full-year profit was $12.64 per share in 2022, compared with profit of $11.83 per share in 2021. Adjusted profit per share in 2022 was $13.84, compared with adjusted profit per share of $10.81 in 2021.
“Our global team delivered one of the best years in our nearly 100-year history, including record full-year adjusted profit per share,” said Caterpillar Chairman and CEO, Jim Umpleby. “Despite supply chain challenges, the team achieved double-digit top-line growth and generated strong ME&T free cash flow. We remain committed to serving our customers, executing our strategy and investing for long-term profitable growth.”
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In 2022, adjusted profit per share excluded a goodwill impairment charge and restructuring costs related to the Rail division, mark-to-market gains for remeasurement of pension and other postemployment benefit (OPEB) plans and other restructuring costs. In 2021, adjusted profit per share excluded mark-to-market gains for remeasurement of pension and OPEB plans and restructuring costs. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 14.
For the full year of 2022, enterprise operating cash flow was $7.8 billion. During the year, the company repurchased $4.2 billion of Caterpillar common stock and paid dividends of $2.4 billion. Liquidity remained strong with an enterprise cash balance of $7.0 billion at the end of 2022.



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CONSOLIDATED RESULTS
Consolidated Sales and Revenues
conssalesandrevenues4q2022.jpg
The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the fourth quarter of 2021 (at left) and the fourth quarter of 2022 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company’s Board of Directors and employees.
Total sales and revenues for the fourth quarter of 2022 were $16.597 billion, an increase of $2.799 billion, or 20%, compared with $13.798 billion in the fourth quarter of 2021. The increase was due to favorable price realization and higher sales volume, partially offset by unfavorable currency impacts primarily related to the euro, Japanese yen and Australian dollar. The increase in sales volume was driven by the impact from changes in dealer inventories and higher sales of equipment to end users. Dealers increased inventories by $700 million during the fourth quarter of 2022, compared to remaining about flat during the fourth quarter of 2021.
Sales were higher across the three primary segments.
Sales and Revenues by Segment
(Millions of dollars) Fourth Quarter 2021 Sales
Volume		 Price
Realization		 Currency Inter-Segment / Other Fourth Quarter 2022 $
Change		 %
Change
Construction Industries $ 5,736  $ 508  $ 896  $ (279) $ (16) $ 6,845  $ 1,109  19%
Resource Industries 2,719  367  404  (68) 14  3,436  717  26%
Energy & Transportation 5,728  658  432  (173) 178  6,823  1,095  19%
All Other Segment 134  (5) 3  (3) (18) 111  (23) (17%)
Corporate Items and Eliminations (1,220) 34  —  —  (158) (1,344) (124)  
Machinery, Energy & Transportation 13,097  1,562  1,735  (523) —  15,871  2,774  21%
Financial Products Segment 776  —  —  —  77  853  77  10%
Corporate Items and Eliminations (75) —  —  —  (52) (127) (52)  
Financial Products Revenues 701  —  —  —  25  726  25  4%
Consolidated Sales and Revenues $ 13,798  $ 1,562  $ 1,735  $ (523) $ 25  $ 16,597  $ 2,799  20%
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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
Fourth Quarter 2022                    
Construction Industries $ 3,535  34% $ 782  39% $ 1,373  10% $ 1,124  (10%) $ 6,814  20% $ 31  (34%) $ 6,845  19%
Resource Industries 1,364  59% 503  21% 596  12% 883  5% 3,346  27% 90  18% 3,436  26%
Energy & Transportation 2,538  33% 624  57% 1,553  5% 953  (1%) 5,668  19% 1,155  18% 6,823  19%
All Other Segment 12  (14%) 2  100% (80) (1,100%) 99  560% 33  (13%) 78  (19%) 111  (17%)
Corporate Items and Eliminations 14  —  (3) (1) 10  (1,354) (1,344)
Machinery, Energy & Transportation 7,463  38% 1,911  39% 3,439  5% 3,058  —% 15,871  21% —  —% 15,871  21%
Financial Products Segment 548  11% 98  40% 103  2% 104  (7%) 853  10% —  —% 853  10%
Corporate Items and Eliminations (73) (20) (16) (18) (127) —  (127)
Financial Products Revenues 475  4% 78  42% 87  (5%) 86  (12%) 726  4% —  —% 726  4%
Consolidated Sales and Revenues $ 7,938  36% $ 1,989  39% $ 3,526  5% $ 3,144  —% $ 16,597  20% $ —  —% $ 16,597  20%
Fourth Quarter 2021                            
Construction Industries $ 2,635  $ 563  $ 1,246  $ 1,245    $ 5,689  $ 47  $ 5,736 
Resource Industries 857  415  532  839    2,643  76  2,719 
Energy & Transportation 1,913  398  1,475  965    4,751  977  5,728 
All Other Segment 14  1  8  15    38  96  134 
Corporate Items and Eliminations (17) —  —  (7) (24) (1,196) (1,220)
Machinery, Energy & Transportation 5,402    1,377    3,261    3,057    13,097    —    13,097   
Financial Products Segment 493  70  101  112    776  —  776 
Corporate Items and Eliminations (37) (15) (9) (14)   (75) —  (75)
Financial Products Revenues 456    55    92    98    701    —    701   
Consolidated Sales and Revenues $ 5,858    $ 1,432    $ 3,353    $ 3,155    $ 13,798    $ —    $ 13,798   

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Consolidated Operating Profit
consopprofit4q2022.jpg
The chart above graphically illustrates reasons for the change in consolidated operating profit between the fourth quarter of 2021 (at left) and the fourth quarter of 2022 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company’s Board of Directors and employees. The bar titled Other includes consolidating adjustments and Machinery, Energy & Transportation’s other operating (income) expenses.
Operating profit for the fourth quarter of 2022 was $1.680 billion, an increase of $69 million, or 4%, compared with $1.611 billion in the fourth quarter of 2021. The increase was primarily due to favorable price realization and higher sales volume, mostly offset by a goodwill impairment charge, higher manufacturing costs and restructuring expenses.
Unfavorable manufacturing costs largely reflected higher material costs, unfavorable cost absorption and increased period manufacturing costs. Cost absorption was unfavorable as inventory decreased during the fourth quarter of 2022, compared with an increase during the fourth quarter of 2021.
In the fourth quarter of 2022, the company took a goodwill impairment charge of $925 million and restructuring costs of $180 million related to the Rail division, both primarily non-cash items. The goodwill impairment charge is related to a lower outlook for the company’s locomotive offerings. The restructuring costs were primarily related to write-downs in the value of inventory.
Operating profit margin was 10.1% for the fourth quarter of 2022, compared with 11.7% for the fourth quarter of 2021. Adjusted operating profit margin was 17.0% for the fourth quarter of 2022, compared with 11.4% for the fourth quarter of 2021. Operating profit margin was 13.3% for 2022, compared with 13.5% for 2021. Adjusted operating profit margin was 15.4% for 2022, compared with 13.7% for 2021.
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Profit (Loss) by Segment
(Millions of dollars) Fourth Quarter 2022 Fourth Quarter 2021 $
Change
%
 Change
Construction Industries $ 1,488  $ 795  $ 693  87  %
Resource Industries 605  288  317  110  %
Energy & Transportation 1,177  685  492  72  %
All Other Segment (53) (12) (41) (342  %)
Corporate Items and Eliminations (1,588) (281) (1,307)  
Machinery, Energy & Transportation 1,629  1,475  154  10  %
Financial Products Segment 189  248  (59) (24  %)
Corporate Items and Eliminations (4) (37) 33 
Financial Products 185  211  (26) (12  %)
Consolidating Adjustments (134) (75) (59)
Consolidated Operating Profit $ 1,680  $ 1,611  $ 69  4  %
Other Profit/Loss and Tax Items
•Other income (expense) in the fourth quarter of 2022 was income of $536 million, compared with income of $1.063 billion in the fourth quarter of 2021. The change was primarily driven by unfavorable impacts from foreign currency exchange and lower mark-to-market gains for remeasurement of pension and OPEB plans (see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 14).
The unfavorable impact of foreign exchange resulted in a loss of $276 million for ME&T in the fourth quarter of 2022, compared with a favorable impact of an $8 million gain in the fourth quarter of 2021. These losses were primarily driven by the weakening of the U.S. dollar against the euro, Chinese yuan and Japanese yen.
•The provision for income taxes for the fourth quarters of 2022 and 2021 reflected a global annual effective tax rate of approximately 23%, excluding the discrete items discussed below.
The provision for income taxes in fourth quarter of 2022 also included a $13 million charge for the change from the third-quarter estimated annual tax rate, compared to a $118 million benefit in the fourth quarter of 2021. The company recorded a tax charge of $124 million related to $606 million of pension and OPEB mark-to-market gains in the fourth quarter of 2022, compared to a tax charge of $190 million related to $833 million of mark-to-market gains in the fourth quarter of 2021. In addition, the company recorded a tax benefit of $36 million in the fourth quarter of 2022 related to the goodwill impairment charge of $925 million. Finally, the company recorded a tax benefit of $15 million in the fourth quarter of 2022 for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense and a $40 million tax benefit in the fourth quarter of 2021 primarily related to recognition of U.S. capital losses.



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CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
Fourth Quarter 2021 Sales Volume Price Realization Currency Inter-Segment Fourth Quarter 2022 $
 Change		 %
 Change
Total Sales $ 5,736  $ 508  $ 896  $ (279) $ (16) $ 6,845  $ 1,109  19  %
Sales by Geographic Region
Fourth Quarter 2022 Fourth Quarter 2021 $
Change		 %
Change
North America $ 3,535  $ 2,635  $ 900  34  %
Latin America 782  563  219  39  %
EAME 1,373  1,246  127  10  %
Asia/Pacific 1,124  1,245  (121) (10  %)
External Sales 6,814  5,689  1,125  20  %
Inter-segment 31  47  (16) (34  %)
Total Sales $ 6,845  $ 5,736  $ 1,109  19  %
Segment Profit
Fourth Quarter 2022 Fourth Quarter 2021
Change		 %
Change
Segment Profit $ 1,488  $ 795  $ 693  87  %
Segment Profit Margin 21.7  % 13.9  % 7.8   pts
Construction Industries’ total sales were $6.845 billion in the fourth quarter of 2022, an increase of $1.109 billion, or 19%, compared with $5.736 billion in the fourth quarter of 2021. The increase was due to favorable price realization and higher sales volume, partially offset by unfavorable currency impacts related to the euro, Japanese yen and Australian dollar. The increase in sales volume was driven by the impact from changes in dealer inventories and higher sales of equipment to end users. Dealer inventory increased during the fourth quarter of 2022, compared with a decrease during the fourth quarter of 2021.
▪In North America, sales increased due to favorable price realization and higher sales volume. Higher sales volume was driven by the impact from changes in dealer inventories and higher sales of equipment to end users. Dealer inventory increased during the fourth quarter of 2022, compared with a decrease during the fourth quarter of 2021.
▪Sales increased in Latin America primarily due to favorable price realization and higher sales volume. Higher sales volume was driven by the impact from changes in dealer inventories. Dealer inventory increased more during the fourth quarter of 2022 than during the fourth quarter of 2021.
▪In EAME, sales increased due to favorable price realization and higher sales volume, partially offset by unfavorable currency impacts related to the euro and British pound. Higher sales volume was primarily due to the impact from changes in dealer inventories. Dealer inventory decreased more during the fourth quarter of 2021 than during the fourth quarter of 2022.
▪Sales decreased in Asia/Pacific primarily due to unfavorable currency impacts, related to the Japanese yen and Australian dollar, as well as lower sales volume, partially offset by favorable price realization. Decreased sales volume was driven by the impact from changes in dealer inventories. Dealer inventory decreased during the fourth quarter of 2022, compared with an increase during the fourth quarter of 2021.

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

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RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
Fourth Quarter 2021 Sales Volume Price Realization Currency Inter-Segment Fourth Quarter 2022 $
 Change		 %
 Change
Total Sales $ 2,719  $ 367  $ 404  $ (68) $ 14  $ 3,436  $ 717  26  %
Sales by Geographic Region
Fourth Quarter 2022 Fourth Quarter 2021 $
Change		 %
Change
North America $ 1,364  $ 857  $ 507  59  %
Latin America 503  415  88  21  %
EAME 596  532  64  12  %
Asia/Pacific 883  839  44  5  %
External Sales 3,346  2,643  703  27  %
Inter-segment 90  76  14  18  %
Total Sales $ 3,436  $ 2,719  $ 717  26  %
Segment Profit
Fourth Quarter 2022 Fourth Quarter 2021
Change		 %
Change
Segment Profit $ 605  $ 288  $ 317  110  %
Segment Profit Margin 17.6  % 10.6  % 7.0   pts
Resource Industries’ total sales were $3.436 billion in the fourth quarter of 2022, an increase of $717 million, or 26%, compared with $2.719 billion in the fourth quarter of 2021. The increase was primarily due to favorable price realization and higher sales volume. The increase in sales volume was driven by the impact from changes in dealer inventories and higher sales of equipment to end users. Dealer inventory increased more during the fourth quarter of 2022 than during the fourth quarter of 2021. Higher sales of equipment to end users was driven by heavy construction and quarry and aggregates.
Resource Industries’ profit was $605 million in the fourth quarter of 2022, an increase of $317 million, or 110%, compared with $288 million in the fourth quarter of 2021. The increase was mainly due to favorable price realization and higher sales volume, partially offset by unfavorable manufacturing costs. Unfavorable manufacturing costs were primarily driven by higher material costs, increased freight and higher period manufacturing costs.

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ENERGY & TRANSPORTATION
(Millions of dollars)
Segment Sales
Fourth Quarter 2021 Sales Volume Price Realization Currency Inter-Segment Fourth Quarter 2022 $
 Change		 %
 Change
Total Sales $ 5,728  $ 658  $ 432  $ (173) $ 178  $ 6,823  $ 1,095  19  %
Sales by Application
Fourth Quarter 2022 Fourth Quarter 2021 $
Change		 %
Change
Oil and Gas $ 1,827  $ 1,320  $ 507  38  %
Power Generation 1,422  1,267  155  12  %
Industrial 1,131  952  179  19  %
Transportation 1,288  1,212  76  6  %
External Sales 5,668  4,751  917  19  %
Inter-segment 1,155  977  178  18  %
Total Sales $ 6,823  $ 5,728  $ 1,095  19  %
Segment Profit
Fourth Quarter 2022 Fourth Quarter 2021
Change		 %
Change
Segment Profit $ 1,177  $ 685  $ 492  72  %
Segment Profit Margin 17.3  % 12.0  % 5.3   pts
Energy & Transportation’s total sales were $6.823 billion in the fourth quarter of 2022, an increase of $1.095 billion, or 19%, compared with $5.728 billion in the fourth quarter of 2021. Sales increased across all applications and inter-segment sales. The increase in sales was primarily due to higher sales volume and favorable price realization, partially offset by unfavorable currency impacts related to the euro and British pound.
▪Oil and Gas – Sales increased for turbines and turbine-related services, reciprocating engines and aftermarket parts.
▪Power Generation – Sales increased in large reciprocating engines, primarily data center applications, and small reciprocating engines. Turbines and turbine-related services increased as well.
▪Industrial – Sales were up due to higher demand across all regions.
▪Transportation – Sales increased in marine applications, reciprocating engine aftermarket parts and rail services; these increases were partially offset by lower deliveries of locomotives.
Energy & Transportation’s profit was $1.177 billion in the fourth quarter of 2022, an increase of $492 million, or 72%, compared with $685 million in the fourth quarter of 2021. The increase was primarily due to higher sales volume and favorable price realization, partially offset by unfavorable manufacturing costs and higher SG&A/R&D expenses. Unfavorable manufacturing costs were mainly driven by higher material costs and increased period manufacturing costs. SG&A/R&D expenses increased primarily due to investments aligned with strategic initiatives.

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FINANCIAL PRODUCTS SEGMENT
(Millions of dollars)
Revenues by Geographic Region
Fourth Quarter 2022 Fourth Quarter 2021 $
Change		 %
Change
North America $ 548  $ 493  $ 55  11  %
Latin America 98  70  28  40  %
EAME 103  101  2  2  %
Asia/Pacific 104  112  (8) (7  %)
Total Revenues $ 853  $ 776  $ 77  10  %
Segment Profit
Fourth Quarter 2022 Fourth Quarter 2021
Change		 %
Change
Segment Profit $ 189  $ 248  $ (59) (24  %)
Financial Products’ segment revenues were $853 million in the fourth quarter of 2022, an increase of $77 million, or 10%, compared with $776 million in the fourth quarter of 2021. The increase was primarily due to higher average financing rates across all regions.
Financial Products’ segment profit was $189 million in the fourth quarter of 2022, a decrease of $59 million, or 24%, compared with $248 million in the fourth quarter of 2021. The decrease was mainly due to a higher provision for credit losses at Cat Financial and an unfavorable impact from equity securities in Insurance Services.
At the end of 2022, past dues at Cat Financial were 1.89%, compared with 1.95% at the end of 2021. Write-offs, net of recoveries, were $46 million for 2022, compared with $205 million for 2021. As of December 31, 2022, Cat Financial's allowance for credit losses totaled $346 million, or 1.29% of finance receivables, compared with $337 million, or 1.22% of finance receivables, at December 31, 2021.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $1.592 billion in the fourth quarter of 2022, an increase of $1.274 billion from the fourth quarter of 2021, primarily driven by a goodwill impairment charge, higher restructuring costs and increased expenses due to timing differences.
In the fourth quarter of 2022, the company took a goodwill impairment charge of $925 million and restructuring costs of $180 million related to the Rail division, both primarily non-cash items. The goodwill impairment charge is related to a lower outlook for the company’s locomotive offerings. The restructuring costs were primarily related to write-downs in the value of inventory.

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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, January 31, 2023.
iii.Information on non-GAAP financial measures is included in the appendix on page 14.
iv.Some amounts within this report are rounded to the millions or billions and may not add.
v.Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7:30 a.m. Central Time on Tuesday, January 31, 2023, to discuss its 2022 fourth-quarter and full-year results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx.
About Caterpillar
With 2022 sales and revenues of $59.4 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we’ve been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries and Energy & Transportation – and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/en/news/social-media.html.
Caterpillar’s latest financial results are also available online:
https://investors.caterpillar.com/overview/default.aspx
https://investors.caterpillar.com/financials/quarterly-results/default.aspx (live broadcast/replays of quarterly conference call)
Caterpillar investor relations contact: Ryan Fiedler, +1 224-551-4074 or Fiedler_Ryan_S@cat.com
Caterpillar media contact: Tiffany Heikkila, +1 832-573-0958 or Tiffany.Heikkila@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 three significant items in order for the company’s results to be meaningful to readers. These items consist of (i) goodwill impairment, (ii) restructuring income/costs and (iii) pension and OPEB mark-to-market gains/losses resulting from plan remeasurements. The company does not consider these items indicative of earnings from ongoing business activities and believes the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company’s period-over-period results.
Reconciliations of adjusted results to the most directly comparable GAAP measure are as follows:
(Dollars in millions except per share data) Operating Profit Operating Profit Margin Profit Before Taxes Provision (Benefit) for Income Taxes Effective Tax Rate Profit Profit per Share
Three Months Ended December 31, 2022 - U.S. GAAP $ 1,680  10.1  % $ 2,099  $ 644  30.7  % $ 1,454  $ 2.79 
Goodwill impairment 925  5.6  % 925  36  3.9  % 889  1.71 
Restructuring (income) costs 209  1.3  % 209  59  28.2  % 150  0.29 
Pension/OPEB mark-to-market (gains) losses —  —  % (606) (124) 20.5  % (482) (0.93)
Three Months Ended December 31, 2022 - Adjusted $ 2,814  17.0  % $ 2,627  $ 615  23.4  % $ 2,011  $ 3.86 
Three Months Ended December 31, 2021 - U.S. GAAP $ 1,611  11.7  % $ 2,562  $ 429  16.7  % $ 2,120  $ 3.91 
Restructuring (income) costs (34) (0.2) % (34) (15) 44.1  % (19) (0.03)
Pension/OPEB mark-to-market (gains) losses —  —  % (833) (190) 22.8  % (643) (1.19)
Three Months Ended December 31, 2021 - Adjusted $ 1,577  11.4  % $ 1,695  $ 224  13.2  % $ 1,458  $ 2.69 
Twelve Months Ended December 31, 2022 - U.S. GAAP $ 7,904  13.3  % $ 8,752  $ 2,067  23.6  % $ 6,705  $ 12.64 
Goodwill impairment 925  1.6  % 925  36  3.9  % 889  1.68 
Restructuring (income) costs 299  0.5  % 299  72  24.0  % 227  0.43 
Pension/OPEB mark-to-market (gains) losses —  —  % (606) $ (124) 20.5  % (482) (0.91)
Twelve Months Ended December 31, 2022 - Adjusted $ 9,128  15.4  % $ 9,370  $ 2,051  21.9  % $ 7,339  $ 13.84 
Twelve Months Ended December 31, 2021 - U.S. GAAP $ 6,878  13.5  % $ 8,204  $ 1,742  21.2  % $ 6,489  $ 11.83 
Restructuring (income) costs 90  0.2  % 90  4  4.4  % 86  0.15 
Pension/OPEB mark-to-market (gains) losses —  —  % (833) (190) 22.8  % (643) (1.17)
Twelve Months Ended December 31, 2021 - Adjusted $ 6,968  13.7  % $ 7,461  $ 1,556  20.9  % $ 5,932  $ 10.81 
Supplemental Consolidating Data
The company is providing supplemental consolidating data for the purpose of additional analysis. The data has been grouped as follows:
Consolidated – Caterpillar Inc. and its subsidiaries.
Machinery, Energy & Transportation (ME&T) – The company defines ME&T as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. ME&T’s information relates to the design, manufacturing and marketing of its products.
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15

Financial Products – The company defines Financial Products as it is presented in the supplemental data as its finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products’ information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment.
Consolidating Adjustments – Eliminations of transactions between ME&T and Financial Products.
The nature of the ME&T and Financial Products businesses is different, especially with regard to the financial position and cash flow items. Caterpillar management utilizes this presentation internally to highlight these differences. The company believes this presentation will assist readers in understanding its business.
Pages 16 to 26 reconcile ME&T and Financial Products to Caterpillar Inc. consolidated financial information.
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16

Caterpillar Inc.
Condensed Consolidated Statement of Results of Operations
(Unaudited)
(Dollars in millions except per share data)
Three Months Ended December 31, Twelve Months Ended December 31,
2022 2021 2022 2021
Sales and revenues:
Sales of Machinery, Energy & Transportation $ 15,871  $ 13,097  $ 56,574  $ 48,188 
Revenues of Financial Products 726  701  2,853  2,783 
Total sales and revenues 16,597  13,798  59,427  50,971 
Operating costs:  
Cost of goods sold 11,614  10,003  41,350  35,513 
Selling, general and administrative expenses 1,479  1,422  5,651  5,365 
Research and development expenses 401  439  1,814  1,686 
Interest expense of Financial Products 188  103  565  455 
Goodwill impairment charge 925  —  925  — 
Other operating (income) expenses 310  220  1,218  1,074 
Total operating costs 14,917  12,187  51,523  44,093 
Operating profit 1,680  1,611  7,904  6,878 
Interest expense excluding Financial Products 117  112  443  488 
Other income (expense) 536  1,063  1,291  1,814 
Consolidated profit before taxes 2,099  2,562  8,752  8,204 
Provision (benefit) for income taxes 644  429  2,067  1,742 
Profit of consolidated companies 1,455  2,133  6,685  6,462 
Equity in profit (loss) of unconsolidated affiliated companies (1) (13) 19  31 
Profit of consolidated and affiliated companies 1,454  2,120  6,704  6,493 
Less: Profit (loss) attributable to noncontrolling interests —  —  (1) 4 
Profit 1
 $ 1,454  $ 2,120  $ 6,705  $ 6,489 
Profit per common share $ 2.81  $ 3.94  $ 12.72  $ 11.93 
Profit per common share — diluted 2
 $ 2.79  $ 3.91  $ 12.64  $ 11.83 
Weighted-average common shares outstanding (millions)
– Basic 517.4  538.7  526.9  544.0 
– Diluted 2
 520.9  542.6  530.4  548.5 
1 Profit attributable to common shareholders.
2 Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
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Caterpillar Inc.
Condensed Consolidated Statement of Financial Position
(Unaudited)
(Millions of dollars)
December 31,
2022		 December 31,
2021
Assets    
Current assets:  
Cash and cash equivalents $ 7,004  $ 9,254 
Receivables – trade and other 8,856  8,477 
Receivables – finance 9,013  8,898 
Prepaid expenses and other current assets 2,642  2,788 
Inventories 16,270  14,038 
Total current assets 43,785  43,455 
Property, plant and equipment – net 12,028  12,090 
Long-term receivables – trade and other 1,265  1,204 
Long-term receivables – finance 12,013  12,707 
Noncurrent deferred and refundable income taxes 2,213  1,840 
Intangible assets 758  1,042 
Goodwill 5,288  6,324 
Other assets 4,593  4,131 
Total assets $ 81,943  $ 82,793 
Liabilities  
Current liabilities:  
Short-term borrowings:  
-- Machinery, Energy & Transportation $ 3  $ 9 
-- Financial Products 5,954  5,395 
Accounts payable 8,689  8,154 
Accrued expenses 4,080  3,757 
Accrued wages, salaries and employee benefits 2,313  2,242 
Customer advances 1,860  1,087 
Dividends payable 620  595 
Other current liabilities 2,690  2,256 
Long-term debt due within one year:
-- Machinery, Energy & Transportation 120  45 
-- Financial Products 5,202  6,307 
Total current liabilities 31,531  29,847 
Long-term debt due after one year:  
-- Machinery, Energy & Transportation 9,498  9,746 
-- Financial Products 16,216  16,287 
Liability for postemployment benefits 4,203  5,592 
Other liabilities 4,604  4,805 
Total liabilities 66,052  66,277 
Shareholders’ equity  
Common stock 6,560  6,398 
Treasury stock (31,748) (27,643)
Profit employed in the business 43,514  39,282 
Accumulated other comprehensive income (loss) (2,457) (1,553)
Noncontrolling interests 22  32 
Total shareholders’ equity 15,891  16,516 
Total liabilities and shareholders’ equity $ 81,943  $ 82,793 

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Caterpillar Inc.
Condensed Consolidated Statement of Cash Flow
(Unaudited)
(Millions of dollars)
Twelve Months Ended
December 31,
2022 2021
Cash flow from operating activities:    
Profit of consolidated and affiliated companies $ 6,704  $ 6,493 
Adjustments for non-cash items:
Depreciation and amortization 2,219  2,352 
Actuarial (gain) loss on pension and postretirement benefits (606) (833)
Provision (benefit) for deferred income taxes (377) (383)
Goodwill impairment charge 925  — 
Other 701  216 
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other (220) (1,259)
Inventories (2,589) (2,586)
Accounts payable 798  2,041 
Accrued expenses 317  196 
Accrued wages, salaries and employee benefits 90  1,107 
Customer advances 768  34 
Other assets – net (210) (97)
Other liabilities – net (754) (83)
Net cash provided by (used for) operating activities 7,766  7,198 
Cash flow from investing activities:  
Capital expenditures – excluding equipment leased to others (1,296) (1,093)
Expenditures for equipment leased to others (1,303) (1,379)
Proceeds from disposals of leased assets and property, plant and equipment 830  1,265 
Additions to finance receivables (13,239) (13,002)
Collections of finance receivables 13,177  12,430 
Proceeds from sale of finance receivables 57  51 
Investments and acquisitions (net of cash acquired) (88) (490)
Proceeds from sale of businesses and investments (net of cash sold) 1  36 
Proceeds from sale of securities 2,383  785 
Investments in securities (3,077) (1,766)
Other – net 14  79 
Net cash provided by (used for) investing activities (2,541) (3,084)
Cash flow from financing activities:  
Dividends paid (2,440) (2,332)
Common stock issued, including treasury shares reissued 51  135 
Common shares repurchased (4,230) (2,668)
Proceeds from debt issued (original maturities greater than three months) 6,674  6,989 
Payments on debt (original maturities greater than three months) (7,728) (9,796)
Short-term borrowings – net (original maturities three months or less) 402  3,488 
Other – net (10) (4)
Net cash provided by (used for) financing activities (7,281) (4,188)
Effect of exchange rate changes on cash (194) (29)
Increase (decrease) in cash, cash equivalents and restricted cash (2,250) (103)
Cash, cash equivalents and restricted cash at beginning of period 9,263  9,366 
Cash, cash equivalents and restricted cash at end of period $ 7,013  $ 9,263 
Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less.

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Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended December 31, 2022
(Unaudited)
(Millions of dollars)
    Supplemental Consolidating Data
  Consolidated
Machinery, Energy & Transportation
Financial
Products		 Consolidating
Adjustments
Sales and revenues:        
Sales of Machinery, Energy & Transportation $ 15,871  $ 15,871  $ —  $ — 
Revenues of Financial Products 726  —  883  (157) 1
Total sales and revenues 16,597  15,871  883  (157)
Operating costs:
Cost of goods sold 11,614  11,615  —  (1) 2
Selling, general and administrative expenses 1,479  1,285  197  (3) 2
Research and development expenses 401  401  —  — 
Interest expense of Financial Products 188  —  188  — 
Goodwill impairment charge 925  925  —  — 
Other operating (income) expenses 310  16  313  (19) 2
Total operating costs 14,917  14,242  698  (23)
Operating profit 1,680  1,629  185  (134)
Interest expense excluding Financial Products 117  117  —  — 
Other income (expense) 536  877  —  (341) 3
Consolidated profit before taxes 2,099  2,389  185  (475)
Provision (benefit) for income taxes 644  608  36  — 
Profit of consolidated companies 1,455  1,781  149  (475)
Equity in profit (loss) of unconsolidated affiliated companies (1) —  —  (1) 4
Profit of consolidated and affiliated companies 1,454  1,781  149  (476)
Less: Profit (loss) attributable to noncontrolling interests —  —  1  (1) 5
Profit 6
 $ 1,454  $ 1,781  $ 148  $ (475)
1
Elimination of Financial Products’ revenues earned from ME&T.
2
Elimination of net expenses recorded by ME&T paid to Financial Products.
3
Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.
4
Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries.
5
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.
6 Profit attributable to common shareholders.

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Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended December 31, 2021
(Unaudited)
(Millions of dollars)
    Supplemental Consolidating Data
  Consolidated Machinery, Energy & Transportation Financial
Products		 Consolidating
Adjustments
Sales and revenues:        
Sales of Machinery, Energy & Transportation $ 13,097  $ 13,097  $ —  $ — 
Revenues of Financial Products 701  —  801  (100) 1
Total sales and revenues 13,798  13,097  801  (100)
Operating costs:
Cost of goods sold 10,003  10,006  —  (3) 2
Selling, general and administrative expenses 1,422  1,253  171  (2) 2
Research and development expenses 439  439  —  — 
Interest expense of Financial Products 103  —  103  — 
Other operating (income) expenses 220  (76) 316  (20) 2
Total operating costs 12,187  11,622  590  (25)
Operating profit 1,611  1,475  211  (75)
Interest expense excluding Financial Products 112  112  —  — 
Other income (expense) 1,063  1,457  31  (425) 3
Consolidated profit before taxes 2,562  2,820  242  (500)
Provision (benefit) for income taxes 429  359  70  — 
Profit of consolidated companies 2,133  2,461  172  (500)
Equity in profit (loss) of unconsolidated affiliated companies (13) (10) —  (3) 4
Profit of consolidated and affiliated companies 2,120  2,451  172  (503)
Less: Profit (loss) attributable to noncontrolling interests —  —  3  (3) 5
Profit 6
 $ 2,120  $ 2,451  $ 169  $ (500)
1
Elimination of Financial Products’ revenues earned from ME&T.
2
Elimination of net expenses recorded by ME&T paid to Financial Products.
3
Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.
4
Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries.
5
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.
6 Profit attributable to common shareholders.


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21

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Twelve Months Ended December 31, 2022
(Unaudited)
(Millions of dollars)
    Supplemental Consolidating Data
  Consolidated Machinery, Energy & Transportation Financial
Products		 Consolidating
Adjustments
Sales and revenues:        
Sales of Machinery, Energy & Transportation $ 56,574  $ 56,574  $ —  $ — 
Revenues of Financial Products 2,853  —  3,376  (523) 1
Total sales and revenues 59,427  56,574  3,376  (523)
Operating costs:
Cost of goods sold 41,350  41,356  —  (6) 2
Selling, general and administrative expenses 5,651  4,999  672  (20) 2
Research and development expenses 1,814  1,814  —  — 
Interest expense of Financial Products 565  —  565  — 
Goodwill impairment charge 925  925  —  — 
Other operating (income) expenses 1,218  47  1,249  (78) 2
Total operating costs 51,523  49,141  2,486  (104)
Operating profit 7,904  7,433  890  (419)
Interest expense excluding Financial Products 443  444  —  (1) 3
Other income (expense) 1,291  1,374  (26) (57) 4
Consolidated profit before taxes 8,752  8,363  864  (475)
Provision (benefit) for income taxes 2,067  1,858  209  — 
Profit of consolidated companies 6,685  6,505  655  (475)
Equity in profit (loss) of unconsolidated affiliated companies 19  26  —  (7) 5
Profit of consolidated and affiliated companies 6,704  6,531  655  (482)
Less: Profit (loss) attributable to noncontrolling interests (1) (1) 7  (7) 6
Profit 7
 $ 6,705  $ 6,532  $ 648  $ (475)
1
Elimination of Financial Products’ revenues earned from ME&T.
2
Elimination of net expenses recorded by ME&T paid to Financial Products.
3
Elimination of interest expense recorded between Financial Products and ME&T.
4
Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.
5
Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries.
6
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.
7 Profit attributable to common shareholders.



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22




Caterpillar Inc.
Supplemental Data for Results of Operations
For the Twelve Months Ended December 31, 2021
(Unaudited)
(Millions of dollars)
    Supplemental Consolidating Data
  Consolidated Machinery, Energy & Transportation Financial
Products		 Consolidating
Adjustments
Sales and revenues:        
Sales of Machinery, Energy & Transportation $ 48,188  $ 48,188  $ —  $ — 
Revenues of Financial Products 2,783  —  3,172  (389) 1 
Total sales and revenues 50,971  48,188  3,172  (389)
Operating costs:
Cost of goods sold 35,513  35,521  —  (8) 2 
Selling, general and administrative expenses 5,365  4,724  654  (13) 2 
Research and development expenses 1,686  1,686  —  — 
Interest expense of Financial Products 455  —  455  — 
Other operating (income) expenses 1,074  (106) 1,247  (67) 2 
Total operating costs 44,093  41,825  2,356  (88)
Operating profit 6,878  6,363  816  (301)
Interest expense excluding Financial Products 488  488  —  — 
Other income (expense) 1,814  2,276  87  (549) 3 
Consolidated profit before taxes 8,204  8,151  903  (850)
Provision (benefit) for income taxes 1,742  1,517  225  — 
Profit of consolidated companies 6,462  6,634  678  (850)
Equity in profit (loss) of unconsolidated affiliated companies 31  42  —  (11) 4 
Profit of consolidated and affiliated companies 6,493  6,676  678  (861)
Less: Profit (loss) attributable to noncontrolling interests 4  3  12  (11) 5 
Profit 6
 $ 6,489  $ 6,673  $ 666  $ (850)
1
Elimination of Financial Products’ revenues earned from ME&T.
2
Elimination of net expenses recorded by ME&T paid to Financial Products.
3
Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.
4
Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries.
5
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.
6 Profit attributable to common shareholders.


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23

Caterpillar Inc.
Supplemental Data for Financial Position
At December 31, 2022
(Unaudited)
(Millions of dollars)
    Supplemental Consolidating Data
  Consolidated Machinery,
Energy &
Transportation 		Financial
Products		 Consolidating
Adjustments
Assets        
Current assets:        
Cash and cash equivalents $ 7,004  $ 6,042  $ 962  $ — 
Receivables – trade and other 8,856  3,710  519  4,627 
1,2
Receivables – finance 9,013  —  13,902  (4,889) 2
Prepaid expenses and other current assets 2,642  2,488  290  (136) 3
Inventories 16,270  16,270  —  — 
Total current assets 43,785  28,510  15,673  (398)
Property, plant and equipment – net 12,028  8,186  3,842  — 
Long-term receivables – trade and other 1,265  418  339  508 
1,2
Long-term receivables – finance 12,013  —  12,552  (539) 2
Noncurrent deferred and refundable income taxes 2,213  2,755  115  (657) 4
Intangible assets 758  758  —  — 
Goodwill 5,288  5,288  —  — 
Other assets 4,593  3,882  1,892  (1,181) 5
Total assets $ 81,943  $ 49,797  $ 34,413  $ (2,267)
Liabilities        
Current liabilities:        
Short-term borrowings $ 5,957  $ 3  $ 5,954  $ — 
Accounts payable 8,689  8,657  294  (262) 6
Accrued expenses 4,080  3,687  393  — 
Accrued wages, salaries and employee benefits 2,313  2,264  49  — 
Customer advances 1,860  1,860  —  — 
Dividends payable 620  620  —  — 
Other current liabilities 2,690  2,215  635  (160)
4,7
Long-term debt due within one year 5,322  120  5,202  — 
Total current liabilities 31,531  19,426  12,527  (422)
Long-term debt due after one year 25,714  9,529  16,216  (31) 8
Liability for postemployment benefits 4,203  4,203  —  — 
Other liabilities 4,604  3,677  1,638  (711) 4
Total liabilities 66,052  36,835  30,381  (1,164)
       
Shareholders’ equity        
Common stock 6,560  6,560  905  (905) 9
Treasury stock (31,748) (31,748) —  — 
Profit employed in the business 43,514  39,435  4,068  11  9
Accumulated other comprehensive income (loss) (2,457) (1,310) (1,147) — 
Noncontrolling interests 22  25  206  (209) 9
Total shareholders’ equity 15,891  12,962  4,032  (1,103)
Total liabilities and shareholders’ equity $ 81,943  $ 49,797  $ 34,413  $ (2,267)
1
Elimination of receivables between ME&T and Financial Products.
2
Reclassification of ME&T’s trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables.
3 Elimination of ME&T's insurance premiums that are prepaid to Financial Products.
4
Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.
5
Elimination of other intercompany assets between ME&T and Financial Products.
6
Elimination of payables between ME&T and Financial Products.
7 Elimination of prepaid insurance in Financial Products’ other liabilities.
8
Elimination of debt between ME&T and Financial Products.
9
Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries.
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24

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.
(more)


25

Caterpillar Inc.
Supplemental Data for Cash Flow
For the Twelve Months Ended December 31, 2022
(Unaudited)
(Millions of dollars)
    Supplemental Consolidating Data
  Consolidated Machinery, Energy & Transportation Financial
Products		 Consolidating
Adjustments
Cash flow from operating activities:        
Profit of consolidated and affiliated companies $ 6,704  $ 6,531  $ 655  $ (482) 1,5
Adjustments for non-cash items:
Depreciation and amortization 2,219  1,439  780  — 
Actuarial (gain) loss on pension and postretirement benefits (606) (606) —  — 
Provision (benefit) for deferred income taxes (377) (368) (9) — 
Goodwill impairment charge 925  925  —  — 
Other 701  452  (205) 454  2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other (220) (390) 143  27 
2,3
Inventories (2,589) (2,572) —  (17) 2
Accounts payable 798  811  82  (95) 2
Accrued expenses 317  274  43  — 
Accrued wages, salaries and employee benefits 90  97  (7) — 
Customer advances 768  769  (1) — 
Other assets – net (210) (183) (35) 8  2
Other liabilities – net (754) (821) 71  (4) 2
Net cash provided by (used for) operating activities 7,766  6,358  1,517  (109)
Cash flow from investing activities:        
Capital expenditures – excluding equipment leased to others (1,296) (1,279) (20) 3  2
Expenditures for equipment leased to others (1,303) (19) (1,310) 26  2
Proceeds from disposals of leased assets and property, plant and equipment 830  78  764  (12) 2
Additions to finance receivables (13,239) —  (14,223) 984  3
Collections of finance receivables 13,177  —  14,052  (875) 3
Net intercompany purchased receivables —  —  492  (492) 3
Proceeds from sale of finance receivables 57  —  57  — 
Net intercompany borrowings —  —  9  (9) 4
Investments and acquisitions (net of cash acquired) (88) (88) —  — 
Proceeds from sale of businesses and investments (net of cash sold) 1  1  —  — 
Proceeds from sale of securities 2,383  1,948  435  — 
Investments in securities (3,077) (2,549) (528) — 
Other – net 14  98  (84) — 
Net cash provided by (used for) investing activities (2,541) (1,810) (356) (375)
Cash flow from financing activities:        
Dividends paid (2,440) (2,440) (475) 475  5
Common stock issued, including treasury shares reissued 51  51  —  — 
Common shares repurchased (4,230) (4,230) —  — 
Net intercompany borrowings —  (9) —  9  4
Proceeds from debt issued > 90 days 6,674  —  6,674  — 
Payments on debt > 90 days (7,728) (25) (7,703) — 
Short-term borrowings – net < 90 days 402  (138) 540  — 
Other – net (10) (10) —  — 
Net cash provided by (used for) financing activities (7,281) (6,801) (964) 484 
Effect of exchange rate changes on cash (194) (131) (63) — 
Increase (decrease) in cash, cash equivalents and restricted cash (2,250) (2,384) 134  — 
Cash, cash equivalents and restricted cash at beginning of period 9,263  8,433  830  — 
Cash, cash equivalents and restricted cash at end of period $ 7,013  $ 6,049  $ 964  $ — 
1 Elimination of equity profit earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.
2 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.
3 Reclassification of Financial Products’ cash flow activity from investing to operating for receivables that arose from the sale of inventory.
4 Elimination of net proceeds and payments to/from ME&T and Financial Products.
5 Elimination of dividend activity between Financial Products and ME&T.
(more)


26

Caterpillar Inc.
Supplemental Data for Cash Flow
For the Twelve Months Ended December 31, 2021
(Unaudited)
(Millions of dollars)
    Supplemental Consolidating Data
  Consolidated Machinery, Energy & Transportation Financial
Products		 Consolidating
Adjustments
Cash flow from operating activities:        
Profit of consolidated and affiliated companies $ 6,493  $ 6,676  $ 678  $ (861) 1,5
Adjustments for non-cash items:
Depreciation and amortization 2,352  1,550  802  — 
Actuarial (gain) loss on pension and postretirement benefits (833) (833) —  — 
Provision (benefit) for deferred income taxes
 (383) (329) (54) — 
Other 216  131  (209) 294  2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other (1,259) (463) 47  (843)
2,3
Inventories (2,586) (2,581) —  (5) 2
Accounts payable 2,041  2,015  49  (23) 2
Accrued expenses 196  288  (92) — 
Accrued wages, salaries and employee benefits 1,107  1,066  41  — 
Customer advances 34  33  1  — 
Other assets – net (97) (200) 25  78  2
Other liabilities – net (83) (176) 132  (39) 2
Net cash provided by (used for) operating activities 7,198  7,177  1,420  (1,399)
Cash flow from investing activities:  
Capital expenditures – excluding equipment leased to others (1,093) (1,088) (16) 11  2
Expenditures for equipment leased to others (1,379) (41) (1,347) 9  2
Proceeds from disposals of leased assets and property, plant and equipment 1,265  186  1,095  (16) 2
Additions to finance receivables (13,002) —  (13,845) 843  3
Collections of finance receivables 12,430  —  13,337  (907) 3
Net intercompany purchased receivables —  —  (609) 609  3
Proceeds from sale of finance receivables 51  —  51  — 
Net intercompany borrowings —  1,000  5  (1,005) 4
Investments and acquisitions (net of cash acquired) (490) (490) —  — 
Proceeds from sale of businesses and investments (net of cash sold) 36  36  —  — 
Proceeds from sale of securities 785  274  511  — 
Investments in securities (1,766) (1,189) (577) — 
Other – net 79  81  (2) — 
Net cash provided by (used for) investing activities (3,084) (1,231) (1,397) (456)
Cash flow from financing activities:
Dividends paid (2,332) (2,332) (850) 850  5
Common stock issued, including treasury shares reissued 135  135  —  — 
Common shares repurchased (2,668) (2,668) —  — 
Net intercompany borrowings —  (5) (1,000) 1,005  4
Proceeds from debt issued > 90 days 6,989  494  6,495  — 
Payments on debt > 90 days (9,796) (1,919) (7,877) — 
Short-term borrowings – net < 90 days 3,488  (1) 3,489  — 
Other – net (4) (4) —  — 
Net cash provided by (used for) financing activities (4,188) (6,300) 257  1,855 
Effect of exchange rate changes on cash (29) (35) 6  — 
Increase (decrease) in cash, cash equivalents and restricted cash (103) (389) 286  — 
Cash, cash equivalents and restricted cash at beginning of period 9,366  8,822  544  — 
Cash, cash equivalents and restricted cash at end of period $ 9,263  $ 8,433  $ 830  $ — 
1 Elimination of equity profit earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.
2 Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.
3 Reclassification of Financial Products’ cash flow activity from investing to operating for receivables that arose from the sale of inventory.
4 Elimination of net proceeds and payments to/from ME&T and Financial Products.
5 Elimination of dividend activity between Financial Products and ME&T.
#

EX-99.2 7 ex992toformxretailstatisti.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.
























Caterpillar Inc.
Quarterly Retail Sales Statistics
         
Machines and E&T Combined 4th Quarter 2022 3rd Quarter 2022 2nd Quarter 2022 1st Quarter 2022
World UP 8% UP 7% DOWN 3% UP 2%
         
Machines 4th Quarter 2022 3rd Quarter 2022 2nd Quarter 2022 1st Quarter 2022
Asia/Pacific UNCHANGED UP 4% DOWN 14% DOWN 18%
EAME DOWN 6% DOWN 2% DOWN 3% UP 10%
Latin America UP 5% UP 9% UP 18% DOWN 1%
North America UP 13% UP 2% DOWN 3% UP 17%
World UP 4% UP 2% DOWN 4% UP 3%
Resource Industries (RI) 4th Quarter 2022 3rd Quarter 2022 2nd Quarter 2022 1st Quarter 2022
Asia/Pacific UP 1% UP 30% UP 3% UP 23%
EAME DOWN 18% UP 5% DOWN 1% UP 17%
Latin America UP 13% DOWN 11% DOWN 4% DOWN 34%
North America UP 61% UP 8% DOWN 7% UP 36%
World UP 13% UP 10% DOWN 2% UP 13%
Construction Industries (CI) 4th Quarter 2022 3rd Quarter 2022 2nd Quarter 2022 1st Quarter 2022
Asia/Pacific DOWN 1% DOWN 7% DOWN 21% DOWN 31%
EAME DOWN 2% DOWN 5% DOWN 3% UP 8%
Latin America UP 2% UP 20% UP 28% UP 25%
North America UP 4% UP 1% DOWN 3% UP 14%
World UP 1% UNCHANGED DOWN 4% UNCHANGED
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) 4th Quarter 2022 3rd Quarter 2022 2nd Quarter 2022 1st Quarter 2022
Power Gen UP 14% UP 26% UP 7% DOWN 10%
Industrial UP 27% UP 31% UP 19% UP 26%
Transportation DOWN 36% UP 30% DOWN 9% UP 50%
Oil & Gas UP 38% UP 11% DOWN 13% DOWN 12%
Total UP 19% UP 22% UNCHANGED DOWN 1%
Reported in dollars based on reporting from dealers and direct sales.    


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.



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.