|
Delaware
(State or other jurisdiction of incorporation)
|
|
37-0602744
(IRS Employer I.D. No.)
|
|
|
|
100 NE Adams Street, Peoria, Illinois
(Address of principal executive offices)
|
|
61629
(Zip Code)
|
Large accelerated filer
|
x
|
Accelerated filer
|
o
|
|
|
|
|
Non-accelerated filer
|
o
|
Smaller reporting company
|
o
|
|
|
|
|
|
|
|
|
|
|
Item 1A.
|
Risk Factors
|
*
|
Item 3.
|
Defaults Upon Senior Securities
|
*
|
Item 5.
|
Other Information
|
*
|
|
Three Months Ended
September 30, |
||||||
|
2013
|
|
2012
|
||||
Sales and revenues:
|
|
|
|
||||
Sales of Machinery and Power Systems
|
$
|
12,678
|
|
|
$
|
15,739
|
|
Revenues of Financial Products
|
745
|
|
|
706
|
|
||
Total sales and revenues
|
13,423
|
|
|
16,445
|
|
||
|
|
|
|
||||
Operating costs:
|
|
|
|
|
|
||
Cost of goods sold
|
9,774
|
|
|
11,639
|
|
||
Selling, general and administrative expenses
|
1,319
|
|
|
1,471
|
|
||
Research and development expenses
|
469
|
|
|
634
|
|
||
Interest expense of Financial Products
|
178
|
|
|
197
|
|
||
Other operating (income) expenses
|
282
|
|
|
(92
|
)
|
||
Total operating costs
|
12,022
|
|
|
13,849
|
|
||
|
|
|
|
||||
Operating profit
|
1,401
|
|
|
2,596
|
|
||
|
|
|
|
||||
Interest expense excluding Financial Products
|
116
|
|
|
129
|
|
||
Other income (expense)
|
(24
|
)
|
|
(17
|
)
|
||
|
|
|
|
||||
Consolidated profit before taxes
|
1,261
|
|
|
2,450
|
|
||
|
|
|
|
||||
Provision (benefit) for income taxes
|
310
|
|
|
753
|
|
||
Profit of consolidated companies
|
951
|
|
|
1,697
|
|
||
|
|
|
|
||||
Equity in profit (loss) of unconsolidated affiliated companies
|
(1
|
)
|
|
5
|
|
||
|
|
|
|
||||
Profit of consolidated and affiliated companies
|
950
|
|
|
1,702
|
|
||
|
|
|
|
||||
Less: Profit (loss) attributable to noncontrolling interests
|
4
|
|
|
3
|
|
||
|
|
|
|
||||
Profit
1
|
$
|
946
|
|
|
$
|
1,699
|
|
|
|
|
|
||||
Profit per common share
|
$
|
1.48
|
|
|
$
|
2.60
|
|
|
|
|
|
||||
Profit per common share – diluted
2
|
$
|
1.45
|
|
|
$
|
2.54
|
|
|
|
|
|
||||
Weighted-average common shares outstanding (millions)
|
|
|
|
|
|
||
– Basic
|
639.3
|
|
|
653.6
|
|
||
– Diluted
2
|
651.9
|
|
|
668.7
|
|
||
|
|
|
|
||||
Cash dividends declared per common share
|
$
|
—
|
|
|
$
|
—
|
|
|
Three Months Ended
September 30, |
||||||
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Profit of consolidated and affiliated companies
|
$
|
950
|
|
|
$
|
1,702
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
||||
Foreign currency translation, net of tax (provision)/benefit of: 2013 - $33; 2012 - $11
|
291
|
|
|
193
|
|
||
|
|
|
|
||||
Pension and other postretirement benefits:
|
|
|
|
||||
Current year actuarial gain (loss), net of tax (provision)/benefit of: 2013 - $2; 2012 - $91
|
(3
|
)
|
|
(155
|
)
|
||
Amortization of actuarial (gain) loss, net of tax (provision)/benefit of: 2013 - $(67); 2012 - $(61)
|
129
|
|
|
114
|
|
||
Current year prior service credit (cost), net of tax (provision)/benefit of: 2013 - $0; 2012 - $(3)
|
—
|
|
|
4
|
|
||
Amortization of prior service (credit) cost, net of tax (provision)/benefit of: 2013 - $5; 2012 - $4
|
(9
|
)
|
|
(8
|
)
|
||
Amortization of transition (asset) obligation, net of tax (provision)/benefit of: 2013 - $(1); 2012 - $0
|
—
|
|
|
1
|
|
||
|
|
|
|
||||
Derivative financial instruments:
|
|
|
|
||||
Gains (losses) deferred, net of tax (provision)/benefit of: 2013 - $(15); 2012 - $5
|
26
|
|
|
(7
|
)
|
||
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2013 - $(5); 2012 - $(5)
|
9
|
|
|
9
|
|
||
|
|
|
|
||||
Available-for-sale securities:
|
|
|
|
||||
Gains (losses) deferred, net of tax (provision)/benefit of: 2013 - $(6); 2012 - $(8)
|
9
|
|
|
12
|
|
||
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2013 - $0; 2012 - $0
|
(1
|
)
|
|
(1
|
)
|
||
|
|
|
|
||||
Total other comprehensive income (loss), net of tax
|
451
|
|
|
162
|
|
||
Comprehensive income
|
1,401
|
|
|
1,864
|
|
||
Less: comprehensive income attributable to the noncontrolling interests
|
(4
|
)
|
|
(3
|
)
|
||
Comprehensive income attributable to stockholders
|
$
|
1,397
|
|
|
$
|
1,861
|
|
|
|
|
|
|
Nine Months Ended
September 30, |
||||||
|
2013
|
|
2012
|
||||
Sales and revenues:
|
|
|
|
||||
Sales of Machinery and Power Systems
|
$
|
39,048
|
|
|
$
|
47,711
|
|
Revenues of Financial Products
|
2,206
|
|
|
2,089
|
|
||
Total sales and revenues
|
41,254
|
|
|
49,800
|
|
||
|
|
|
|
||||
Operating costs:
|
|
|
|
|
|
||
Cost of goods sold
|
30,186
|
|
|
35,156
|
|
||
Selling, general and administrative expenses
|
4,130
|
|
|
4,328
|
|
||
Research and development expenses
|
1,579
|
|
|
1,853
|
|
||
Interest expense of Financial Products
|
552
|
|
|
599
|
|
||
Other operating (income) expenses
|
631
|
|
|
329
|
|
||
Total operating costs
|
37,078
|
|
|
42,265
|
|
||
|
|
|
|
||||
Operating profit
|
4,176
|
|
|
7,535
|
|
||
|
|
|
|
||||
Interest expense excluding Financial Products
|
356
|
|
|
352
|
|
||
Other income (expense)
|
(79
|
)
|
|
141
|
|
||
|
|
|
|
||||
Consolidated profit before taxes
|
3,741
|
|
|
7,324
|
|
||
|
|
|
|
||||
Provision (benefit) for income taxes
|
943
|
|
|
2,314
|
|
||
Profit of consolidated companies
|
2,798
|
|
|
5,010
|
|
||
|
|
|
|
||||
Equity in profit (loss) of unconsolidated affiliated companies
|
(1
|
)
|
|
12
|
|
||
|
|
|
|
||||
Profit of consolidated and affiliated companies
|
2,797
|
|
|
5,022
|
|
||
|
|
|
|
||||
Less: Profit (loss) attributable to noncontrolling interests
|
11
|
|
|
38
|
|
||
|
|
|
|
||||
Profit
1
|
$
|
2,786
|
|
|
$
|
4,984
|
|
|
|
|
|
||||
Profit per common share
|
$
|
4.30
|
|
|
$
|
7.64
|
|
|
|
|
|
||||
Profit per common share – diluted
2
|
$
|
4.21
|
|
|
$
|
7.44
|
|
|
|
|
|
||||
Weighted-average common shares outstanding (millions)
|
|
|
|
|
|||
– Basic
|
647.6
|
|
|
652.0
|
|
||
– Diluted
2
|
661.3
|
|
|
669.7
|
|
||
|
|
|
|
||||
Cash dividends declared per common share
|
$
|
1.12
|
|
|
$
|
0.98
|
|
|
Nine Months Ended
September 30, |
||||||
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Profit of consolidated and affiliated companies
|
$
|
2,797
|
|
|
$
|
5,022
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
||||
Foreign currency translation, net of tax (provision)/benefit of: 2013 - $41; 2012 - $(5)
|
(255
|
)
|
|
35
|
|
||
|
|
|
|
||||
Pension and other postretirement benefits:
|
|
|
|
||||
Current year actuarial gain (loss), net of tax (provision)/benefit of: 2013 - $(14); 2012 - $83
|
24
|
|
|
(140
|
)
|
||
Amortization of actuarial (gain) loss, net of tax (provision)/benefit of: 2013 - $(201); 2012 - $(181)
|
388
|
|
|
340
|
|
||
Current year prior service credit (cost), net of tax (provision)/benefit of: 2013 - $0; 2012 - $(1)
|
—
|
|
|
1
|
|
||
Amortization of prior service (credit) cost, net of tax (provision)/benefit of: 2013 - $14; 2012 - $12
|
(27
|
)
|
|
(23
|
)
|
||
Amortization of transition (asset) obligation, net of tax (provision)/benefit of: 2013 - $(1); 2012 - $0
|
1
|
|
|
2
|
|
||
|
|
|
|
||||
Derivative financial instruments:
|
|
|
|
||||
Gains (losses) deferred, net of tax (provision)/benefit of: 2013 - $(2); 2012 - $21
|
2
|
|
|
(35
|
)
|
||
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2013 - $(24); 2012 - $(6)
|
42
|
|
|
10
|
|
||
|
|
|
|
||||
Available-for-sale securities:
|
|
|
|
||||
Gains (losses) deferred, net of tax (provision)/benefit of: 2013 - $(8); 2012 - $(13)
|
14
|
|
|
28
|
|
||
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2013 - $0; 2012 - $0
|
(1
|
)
|
|
(3
|
)
|
||
|
|
|
|
||||
Total other comprehensive income (loss), net of tax
|
188
|
|
|
215
|
|
||
Comprehensive income
|
2,985
|
|
|
5,237
|
|
||
Less: comprehensive income attributable to the noncontrolling interests
|
(13
|
)
|
|
(20
|
)
|
||
Comprehensive income attributable to stockholders
|
$
|
2,972
|
|
|
$
|
5,217
|
|
|
|
|
|
|
September 30,
2013 |
|
December 31,
2012 |
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
|
|
||
Cash and short-term investments
|
$
|
6,357
|
|
|
$
|
5,490
|
|
Receivables – trade and other
|
8,649
|
|
|
10,092
|
|
||
Receivables – finance
|
9,161
|
|
|
8,860
|
|
||
Deferred and refundable income taxes
|
1,541
|
|
|
1,547
|
|
||
Prepaid expenses and other current assets
|
988
|
|
|
988
|
|
||
Inventories
|
13,392
|
|
|
15,547
|
|
||
Total current assets
|
40,088
|
|
|
42,524
|
|
||
|
|
|
|
||||
Property, plant and equipment – net
|
16,588
|
|
|
16,461
|
|
||
Long-term receivables – trade and other
|
1,329
|
|
|
1,316
|
|
||
Long-term receivables – finance
|
14,585
|
|
|
14,029
|
|
||
Investments in unconsolidated affiliated companies
|
278
|
|
|
272
|
|
||
Noncurrent deferred and refundable income taxes
|
1,985
|
|
|
2,011
|
|
||
Intangible assets
|
3,718
|
|
|
4,016
|
|
||
Goodwill
|
6,968
|
|
|
6,942
|
|
||
Other assets
|
1,733
|
|
|
1,785
|
|
||
Total assets
|
$
|
87,272
|
|
|
$
|
89,356
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Short-term borrowings:
|
|
|
|
|
|
||
Machinery and Power Systems
|
$
|
290
|
|
|
$
|
636
|
|
Financial Products
|
5,557
|
|
|
4,651
|
|
||
Accounts payable
|
6,280
|
|
|
6,753
|
|
||
Accrued expenses
|
3,373
|
|
|
3,667
|
|
||
Accrued wages, salaries and employee benefits
|
1,391
|
|
|
1,911
|
|
||
Customer advances
|
2,699
|
|
|
2,978
|
|
||
Other current liabilities
|
1,854
|
|
|
2,055
|
|
||
Long-term debt due within one year:
|
|
|
|
|
|
||
Machinery and Power Systems
|
1,110
|
|
|
1,113
|
|
||
Financial Products
|
6,565
|
|
|
5,991
|
|
||
Total current liabilities
|
29,119
|
|
|
29,755
|
|
||
Long-term debt due after one year:
|
|
|
|
|
|
||
Machinery and Power Systems
|
7,951
|
|
|
8,666
|
|
||
Financial Products
|
18,064
|
|
|
19,086
|
|
||
Liability for postemployment benefits
|
10,785
|
|
|
11,085
|
|
||
Other liabilities
|
3,176
|
|
|
3,182
|
|
||
Total liabilities
|
69,095
|
|
|
71,774
|
|
||
Commitments and contingencies (Notes 10 and 13)
|
|
|
|
|
|
||
Stockholders’ equity
|
|
|
|
|
|
||
Common stock of $1.00 par value:
|
|
|
|
|
|
||
Authorized shares: 2,000,000,000
Issued shares: (9/30/13 and 12/31/12 – 814,894,624) at paid-in amount |
4,657
|
|
|
4,481
|
|
||
Treasury stock (9/30/13 – 178,538,633 shares; 12/31/12 – 159,846,131 shares) at cost
|
(11,914
|
)
|
|
(10,074
|
)
|
||
Profit employed in the business
|
31,614
|
|
|
29,558
|
|
||
Accumulated other comprehensive income (loss)
|
(6,247
|
)
|
|
(6,433
|
)
|
||
Noncontrolling interests
|
67
|
|
|
50
|
|
||
Total stockholders’ equity
|
18,177
|
|
|
17,582
|
|
||
Total liabilities and stockholders’ equity
|
$
|
87,272
|
|
|
$
|
89,356
|
|
|
Common
stock
|
|
Treasury
stock
|
|
Profit
employed
in the
business
|
|
Accumulated
other
comprehensive
income (loss)
|
|
Noncontrolling
interests
|
|
Total
|
||||||||||||
Nine Months Ended September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at December 31, 2011
|
$
|
4,273
|
|
|
$
|
(10,281
|
)
|
|
$
|
25,219
|
|
|
$
|
(6,328
|
)
|
|
$
|
46
|
|
|
$
|
12,929
|
|
Profit of consolidated and affiliated companies
|
—
|
|
|
—
|
|
|
4,984
|
|
|
—
|
|
|
38
|
|
|
5,022
|
|
||||||
Foreign currency translation, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|
(24
|
)
|
|
35
|
|
||||||
Pension and other postretirement benefits, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
175
|
|
|
5
|
|
|
180
|
|
||||||
Derivative financial instruments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
(25
|
)
|
||||||
Available-for-sale securities, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
1
|
|
|
25
|
|
||||||
Change in ownership from noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Dividends declared
|
—
|
|
|
—
|
|
|
(639
|
)
|
|
—
|
|
|
—
|
|
|
(639
|
)
|
||||||
Distribution to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
||||||
Common shares issued from treasury stock for stock-based compensation: 6,400,328
|
(122
|
)
|
|
163
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
||||||
Stock-based compensation expense
|
208
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
208
|
|
||||||
Net excess tax benefits from stock-based compensation
|
164
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
164
|
|
||||||
Cat Japan share redemption
1
|
(74
|
)
|
|
—
|
|
|
(23
|
)
|
|
107
|
|
|
(10
|
)
|
|
—
|
|
||||||
Balance at September 30, 2012
|
$
|
4,449
|
|
|
$
|
(10,118
|
)
|
|
$
|
29,541
|
|
|
$
|
(5,988
|
)
|
|
$
|
52
|
|
|
$
|
17,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nine Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at December 31, 2012
|
$
|
4,481
|
|
|
$
|
(10,074
|
)
|
|
$
|
29,558
|
|
|
$
|
(6,433
|
)
|
|
$
|
50
|
|
|
$
|
17,582
|
|
Profit of consolidated and affiliated companies
|
—
|
|
|
—
|
|
|
2,786
|
|
|
—
|
|
|
11
|
|
|
2,797
|
|
||||||
Foreign currency translation, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(257
|
)
|
|
2
|
|
|
(255
|
)
|
||||||
Pension and other postretirement benefits, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
386
|
|
|
—
|
|
|
386
|
|
||||||
Derivative financial instruments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
44
|
|
||||||
Available-for-sale securities, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
||||||
Change in ownership from noncontrolling interests
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
8
|
|
||||||
Dividends declared
|
—
|
|
|
—
|
|
|
(730
|
)
|
|
—
|
|
|
—
|
|
|
(730
|
)
|
||||||
Distribution to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(10
|
)
|
||||||
Common shares issued from treasury stock for stock-based compensation: 4,792,341
|
(83
|
)
|
|
160
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77
|
|
||||||
Stock-based compensation expense
|
196
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
196
|
|
||||||
Net excess tax benefits from stock-based compensation
|
69
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
69
|
|
||||||
Common shares repurchased: 23,484,843
2
|
—
|
|
|
(2,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,000
|
)
|
||||||
Balance at September 30, 2013
|
$
|
4,657
|
|
|
$
|
(11,914
|
)
|
|
$
|
31,614
|
|
|
$
|
(6,247
|
)
|
|
$
|
67
|
|
|
$
|
18,177
|
|
1
|
See Notes 12 and 17 regarding the Cat Japan share redemption.
|
2
|
See Note 11 regarding shares repurchased.
|
|
Nine Months Ended
September 30, |
||||||
|
2013
|
|
2012
|
||||
Cash flow from operating activities:
|
|
|
|
||||
Profit of consolidated and affiliated companies
|
$
|
2,797
|
|
|
$
|
5,022
|
|
Adjustments for non-cash items:
|
|
|
|
|
|
||
Depreciation and amortization
|
2,263
|
|
|
2,070
|
|
||
Other
|
377
|
|
|
(267
|
)
|
||
Changes in assets and liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
||
Receivables – trade and other
|
1,165
|
|
|
136
|
|
||
Inventories
|
1,911
|
|
|
(3,118
|
)
|
||
Accounts payable
|
41
|
|
|
(334
|
)
|
||
Accrued expenses
|
(227
|
)
|
|
32
|
|
||
Accrued wages, salaries and employee benefits
|
(500
|
)
|
|
(643
|
)
|
||
Customer advances
|
(287
|
)
|
|
306
|
|
||
Other assets – net
|
(74
|
)
|
|
(20
|
)
|
||
Other liabilities – net
|
145
|
|
|
34
|
|
||
Net cash provided by (used for) operating activities
|
7,611
|
|
|
3,218
|
|
||
|
|
|
|
||||
Cash flow from investing activities:
|
|
|
|
|
|
||
Capital expenditures – excluding equipment leased to others
|
(1,862
|
)
|
|
(2,270
|
)
|
||
Expenditures for equipment leased to others
|
(1,301
|
)
|
|
(1,256
|
)
|
||
Proceeds from disposals of leased assets and property, plant and equipment
|
593
|
|
|
840
|
|
||
Additions to finance receivables
|
(8,339
|
)
|
|
(8,835
|
)
|
||
Collections of finance receivables
|
6,790
|
|
|
6,567
|
|
||
Proceeds from sale of finance receivables
|
110
|
|
|
109
|
|
||
Investments and acquisitions (net of cash acquired)
|
(193
|
)
|
|
(542
|
)
|
||
Proceeds from sale of businesses and investments (net of cash sold)
|
168
|
|
|
1,009
|
|
||
Proceeds from sale of available-for-sale securities
|
297
|
|
|
243
|
|
||
Investments in available-for-sale securities
|
(312
|
)
|
|
(299
|
)
|
||
Other – net
|
(29
|
)
|
|
82
|
|
||
Net cash provided by (used for) investing activities
|
(4,078
|
)
|
|
(4,352
|
)
|
||
|
|
|
|
||||
Cash flow from financing activities:
|
|
|
|
|
|
||
Dividends paid
|
(730
|
)
|
|
(937
|
)
|
||
Distribution to noncontrolling interests
|
(10
|
)
|
|
(5
|
)
|
||
Common stock issued, including treasury shares reissued
|
77
|
|
|
41
|
|
||
Treasury shares purchased
|
(2,000
|
)
|
|
—
|
|
||
Excess tax benefit from stock-based compensation
|
70
|
|
|
165
|
|
||
Acquisitions of redeemable noncontrolling interests
|
—
|
|
|
(444
|
)
|
||
Proceeds from debt issued (original maturities greater than three months):
|
|
|
|
|
|
||
Machinery and Power Systems
|
145
|
|
|
2,015
|
|
||
Financial Products
|
6,854
|
|
|
9,617
|
|
||
Payments on debt (original maturities greater than three months):
|
|
|
|
|
|
||
Machinery and Power Systems
|
(1,134
|
)
|
|
(485
|
)
|
||
Financial Products
|
(7,636
|
)
|
|
(6,242
|
)
|
||
Short-term borrowings – net (original maturities three months or less)
|
1,736
|
|
|
166
|
|
||
Net cash provided by (used for) financing activities
|
(2,628
|
)
|
|
3,891
|
|
||
Effect of exchange rate changes on cash
|
(38
|
)
|
|
(125
|
)
|
||
Increase (decrease) in cash and short-term investments
|
867
|
|
|
2,632
|
|
||
Cash and short-term investments at beginning of period
|
5,490
|
|
|
3,057
|
|
||
Cash and short-term investments at end of period
|
$
|
6,357
|
|
|
$
|
5,689
|
|
1.
|
A. Basis of Presentation
|
|
2013
|
|
2012
|
||||||||||
|
Shares Granted
|
|
Fair Value
Per Award
|
|
Shares Granted
|
|
Fair Value
Per Award
|
||||||
Stock options
|
4,276,060
|
|
|
$
|
28.34
|
|
|
3,224,203
|
|
|
$
|
39.20
|
|
RSUs
|
1,614,870
|
|
|
$
|
84.05
|
|
|
1,429,939
|
|
|
$
|
104.61
|
|
(Millions of dollars)
|
|
|
|
|
|
||||
|
Consolidated Statement of Financial
|
|
Asset (Liability) Fair Value
|
||||||
|
Position Location
|
|
September 30, 2013
|
|
December 31, 2012
|
||||
Designated derivatives
|
|
|
|
|
|
||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
||
Machinery and Power Systems
|
Receivables – trade and other
|
|
$
|
49
|
|
|
$
|
28
|
|
Machinery and Power Systems
|
Long-term receivables – trade and other
|
|
1
|
|
|
—
|
|
||
Machinery and Power Systems
|
Accrued expenses
|
|
(24
|
)
|
|
(66
|
)
|
||
Interest rate contracts
|
|
|
|
|
|
|
|||
Financial Products
|
Receivables – trade and other
|
|
12
|
|
|
17
|
|
||
Financial Products
|
Long-term receivables – trade and other
|
|
130
|
|
|
209
|
|
||
Financial Products
|
Accrued expenses
|
|
(6
|
)
|
|
(8
|
)
|
||
|
|
|
$
|
162
|
|
|
$
|
180
|
|
Undesignated derivatives
|
|
|
|
|
|
|
|
||
Foreign exchange contracts
|
|
|
|
|
|
|
|
||
Machinery and Power Systems
|
Receivables – trade and other
|
|
$
|
42
|
|
|
$
|
31
|
|
Machinery and Power Systems
|
Accrued expenses
|
|
(31
|
)
|
|
(63
|
)
|
||
Financial Products
|
Receivables – trade and other
|
|
13
|
|
|
10
|
|
||
Financial Products
|
Long-term receivables – trade and other
|
|
8
|
|
|
—
|
|
||
Financial Products
|
Accrued expenses
|
|
(7
|
)
|
|
(6
|
)
|
||
Interest rate contracts
|
|
|
|
|
|
|
|||
Financial Products
|
Receivables – trade and other
|
|
—
|
|
|
2
|
|
||
Financial Products
|
Accrued expenses
|
|
—
|
|
|
(1
|
)
|
||
Commodity contracts
|
|
|
|
|
|
|
|||
Machinery and Power Systems
|
Receivables – trade and other
|
|
—
|
|
|
1
|
|
||
Machinery and Power Systems
|
Accrued expenses
|
|
(1
|
)
|
|
—
|
|
||
|
|
|
$
|
24
|
|
|
$
|
(26
|
)
|
|
|
|
|
|
|
Fair Value Hedges
(Millions of dollars)
|
|
|
|
|
|
||||||||||||
|
|
|
Three Months Ended
September 30, 2013 |
|
Three Months Ended
September 30, 2012 |
||||||||||||
|
Classification
|
|
Gains (Losses)
on Derivatives
|
|
Gains (Losses)
on Borrowings
|
|
Gains (Losses)
on Derivatives
|
|
Gains (Losses)
on Borrowings
|
||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|||||||
Financial Products
|
Other income (expense)
|
|
$
|
(9
|
)
|
|
$
|
12
|
|
|
$
|
7
|
|
|
$
|
(3
|
)
|
|
|
|
$
|
(9
|
)
|
|
$
|
12
|
|
|
$
|
7
|
|
|
$
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Nine Months Ended
September 30, 2013 |
|
Nine Months Ended
September 30, 2012 |
||||||||||||
|
Classification
|
|
Gains (Losses)
on Derivatives
|
|
Gains (Losses)
on Borrowings
|
|
Gains (Losses)
on Derivatives
|
|
Gains (Losses)
on Borrowings
|
||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Products
|
Other income (expense)
|
|
$
|
(87
|
)
|
|
$
|
92
|
|
|
$
|
4
|
|
|
$
|
7
|
|
|
|
|
$
|
(87
|
)
|
|
$
|
92
|
|
|
$
|
4
|
|
|
$
|
7
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Hedges
(Millions of dollars)
|
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended September 30, 2013
|
|
||||||||||||
|
|
|
Recognized in Earnings
|
|
||||||||||
|
Amount of Gains
(Losses) Recognized
in AOCI
(Effective Portion)
|
|
Classification of
Gains (Losses)
|
|
Amount of
Gains (Losses)
Reclassified
from AOCI to
Earnings
|
|
Recognized
in Earnings
(Ineffective
Portion)
|
|
||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|||
Machinery and Power Systems
|
$
|
44
|
|
|
Other income (expense)
|
|
$
|
(12
|
)
|
|
$
|
—
|
|
|
Interest rate contracts
|
|
|
|
|
|
|
|
|
||||||
Machinery and Power Systems
|
—
|
|
|
Other income (expense)
|
|
(1
|
)
|
|
—
|
|
|
|||
Financial Products
|
(3
|
)
|
|
Interest expense of Financial Products
|
|
(1
|
)
|
|
—
|
|
|
|||
|
$
|
41
|
|
|
|
|
$
|
(14
|
)
|
|
$
|
—
|
|
|
|
Three Months Ended September 30, 2012
|
|
||||||||||||
|
|
|
Recognized in Earnings
|
|
||||||||||
|
Amount of Gains
(Losses) Recognized
in AOCI
(Effective Portion)
|
|
Classification of
Gains (Losses)
|
|
Amount of
Gains (Losses)
Reclassified
from AOCI to
Earnings
|
|
Recognized
in Earnings
(Ineffective
Portion)
|
|
||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
||||||
Machinery and Power Systems
|
$
|
(6
|
)
|
|
Other income (expense)
|
|
$
|
(14
|
)
|
|
$
|
—
|
|
|
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|||
Machinery and Power Systems
|
—
|
|
|
Other income (expense)
|
|
1
|
|
|
—
|
|
|
|||
Financial Products
|
(6
|
)
|
|
Interest expense of Financial Products
|
|
(1
|
)
|
|
—
|
|
|
|||
|
$
|
(12
|
)
|
|
|
|
$
|
(14
|
)
|
|
$
|
—
|
|
|
|
Nine Months Ended September 30, 2013
|
|
||||||||||||
|
|
|
Recognized in Earnings
|
|
||||||||||
|
Amount of Gains
(Losses) Recognized
in AOCI
(Effective Portion)
|
|
Classification of
Gains (Losses)
|
|
Amount of
Gains (Losses)
Reclassified
from AOCI to
Earnings
|
|
Recognized
in Earnings
(Ineffective
Portion)
|
|
||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
||||||
Machinery and Power Systems
|
$
|
4
|
|
|
Other income (expense)
|
|
$
|
(60
|
)
|
2
|
$
|
—
|
|
|
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
||||
Machinery and Power Systems
|
—
|
|
|
Other income (expense)
|
|
(2
|
)
|
|
—
|
|
|
|||
Financial Products
|
—
|
|
|
Interest expense of Financial Products
|
|
(4
|
)
|
|
—
|
|
|
|||
|
$
|
4
|
|
|
|
|
$
|
(66
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Nine Months Ended September 30, 2012
|
|
||||||||||||
|
|
|
Recognized in Earnings
|
|
||||||||||
|
Amount of Gains
(Losses) Recognized
in AOCI
(Effective Portion)
|
|
Classification of
Gains (Losses)
|
|
Amount of
Gains (Losses)
Reclassified
from AOCI to
Earnings
|
|
Recognized
in Earnings
(Ineffective
Portion)
|
|
||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
||||||
Machinery and Power Systems
|
$
|
(48
|
)
|
|
Other income (expense)
|
|
$
|
(13
|
)
|
|
$
|
—
|
|
|
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|||
Financial Products
|
(8
|
)
|
|
Interest expense of Financial Products
|
|
(3
|
)
|
|
(1
|
)
|
1
|
|||
|
$
|
(56
|
)
|
|
|
|
$
|
(16
|
)
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
1
|
The ineffective portion recognized in earnings is included in Other income (expense).
|
2
|
Includes
$3 million
loss reclassified from AOCI to Other income (expense) in 2013 as certain derivatives were dedesignated as the related transactions are no longer probable to occur.
|
|
|
|
|
|
(Millions of dollars)
|
|
|
|
|
|
|
|||
|
Classification of Gains (Losses)
|
|
Three Months Ended
September 30, 2013 |
|
Three Months Ended
September 30, 2012 |
||||
Foreign exchange contracts
|
|
|
|
|
|
||||
Machinery and Power Systems
|
Other income (expense)
|
|
$
|
15
|
|
|
$
|
(9
|
)
|
Financial Products
|
Other income (expense)
|
|
3
|
|
|
5
|
|
||
Interest rate contracts
|
|
|
|
|
|
|
|||
Financial Products
|
Other income (expense)
|
|
(1
|
)
|
|
—
|
|
||
Commodity contracts
|
|
|
|
|
|
|
|||
Machinery and Power Systems
|
Other income (expense)
|
|
2
|
|
|
3
|
|
||
|
|
|
$
|
19
|
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
||||
|
Classification of Gains (Losses)
|
|
Nine Months Ended
September 30, 2013 |
|
Nine Months Ended
September 30, 2012 |
||||
Foreign exchange contracts
|
|
|
|
|
|
||||
Machinery and Power Systems
|
Other income (expense)
|
|
$
|
7
|
|
|
$
|
21
|
|
Financial Products
|
Other income (expense)
|
|
4
|
|
|
7
|
|
||
Interest rate contracts
|
|
|
|
|
|
||||
Financial Products
|
Other income (expense)
|
|
(1
|
)
|
|
—
|
|
||
Commodity contracts
|
|
|
|
|
|
||||
Machinery and Power Systems
|
Other income (expense)
|
|
(2
|
)
|
|
3
|
|
||
|
|
|
$
|
8
|
|
|
$
|
31
|
|
|
|
|
|
|
|
September 30, 2013
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the Statement of Financial Position
|
|
|
||||||||||||||
(Millions of dollars)
|
|
Gross Amount of Recognized Assets
|
|
Gross Amounts Offset in the Statement of Financial Position
|
|
Net Amount of Assets Presented in the Statement of Financial Position
|
|
Financial Instruments
|
|
Cash Collateral Received
|
|
Net Amount of Assets
|
||||||||||||
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Machinery & Power Systems
|
|
$
|
92
|
|
|
$
|
—
|
|
|
$
|
92
|
|
|
$
|
(52
|
)
|
|
$
|
—
|
|
|
$
|
40
|
|
Financial Products
|
|
163
|
|
|
—
|
|
|
163
|
|
|
(9
|
)
|
|
—
|
|
|
154
|
|
||||||
Total
|
|
$
|
255
|
|
|
$
|
—
|
|
|
$
|
255
|
|
|
$
|
(61
|
)
|
|
$
|
—
|
|
|
$
|
194
|
|
September 30, 2013
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the Statement of Financial Position
|
|
|
||||||||||||||
(Millions of dollars)
|
|
Gross Amount of Recognized Liabilities
|
|
Gross Amounts Offset in the Statement of Financial Position
|
|
Net Amount of Liabilities Presented in the Statement of Financial Position
|
|
Financial Instruments
|
|
Cash Collateral Pledged
|
|
Net Amount of Liabilities
|
||||||||||||
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Machinery & Power Systems
|
|
$
|
(56
|
)
|
|
$
|
—
|
|
|
$
|
(56
|
)
|
|
$
|
52
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
Financial Products
|
|
(13
|
)
|
|
—
|
|
|
(13
|
)
|
|
9
|
|
|
—
|
|
|
(4
|
)
|
||||||
Total
|
|
$
|
(69
|
)
|
|
$
|
—
|
|
|
$
|
(69
|
)
|
|
$
|
61
|
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
December 31, 2012
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the Statement of Financial Position
|
|
|
||||||||||||||
(Millions of dollars)
|
|
Gross Amount of Recognized Assets
|
|
Gross Amounts Offset in the Statement of Financial Position
|
|
Net Amount of Assets Presented in the Statement of Financial Position
|
|
Financial Instruments
|
|
Cash Collateral Received
|
|
Net Amount of Assets
|
||||||||||||
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Machinery & Power Systems
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
60
|
|
|
$
|
(59
|
)
|
|
$
|
—
|
|
|
$
|
1
|
|
Financial Products
|
|
238
|
|
|
—
|
|
|
238
|
|
|
(12
|
)
|
|
—
|
|
|
226
|
|
||||||
Total
|
|
$
|
298
|
|
|
$
|
—
|
|
|
$
|
298
|
|
|
$
|
(71
|
)
|
|
$
|
—
|
|
|
$
|
227
|
|
December 31, 2012
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the Statement of Financial Position
|
|
|
||||||||||||||
(Millions of dollars)
|
|
Gross Amount of Recognized Liabilities
|
|
Gross Amounts Offset in the Statement of Financial Position
|
|
Net Amount of Liabilities Presented in the Statement of Financial Position
|
|
Financial Instruments
|
|
Cash Collateral Pledged
|
|
Net Amount of Liabilities
|
||||||||||||
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Machinery & Power Systems
|
|
$
|
(129
|
)
|
|
$
|
—
|
|
|
$
|
(129
|
)
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
(70
|
)
|
Financial Products
|
|
(15
|
)
|
|
—
|
|
|
(15
|
)
|
|
12
|
|
|
—
|
|
|
(3
|
)
|
||||||
Total
|
|
$
|
(144
|
)
|
|
$
|
—
|
|
|
$
|
(144
|
)
|
|
$
|
71
|
|
|
$
|
—
|
|
|
$
|
(73
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
September 30,
2013 |
|
December 31,
2012 |
||||
Raw materials
|
$
|
3,138
|
|
|
$
|
3,573
|
|
Work-in-process
|
2,749
|
|
|
2,920
|
|
||
Finished goods
|
7,221
|
|
|
8,767
|
|
||
Supplies
|
284
|
|
|
287
|
|
||
Total inventories
|
$
|
13,392
|
|
|
$
|
15,547
|
|
|
|
|
|
Results of Operations of unconsolidated affiliated companies:
(Millions of dollars)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Sales
|
$
|
349
|
|
|
$
|
253
|
|
|
$
|
916
|
|
|
$
|
625
|
|
Cost of sales
|
284
|
|
|
206
|
|
|
722
|
|
|
492
|
|
||||
Gross profit
|
$
|
65
|
|
|
$
|
47
|
|
|
$
|
194
|
|
|
$
|
133
|
|
|
|
|
|
|
|
|
|
||||||||
Profit (loss)
|
$
|
(6
|
)
|
|
$
|
17
|
|
|
$
|
(31
|
)
|
|
$
|
39
|
|
|
|
|
|
|
|
|
|
Financial Position of unconsolidated affiliated companies:
(
Millions of dollars
)
|
September 30,
2013 |
|
December 31,
2012 |
||||
Assets:
|
|
|
|
|
|
||
Current assets
|
$
|
707
|
|
|
$
|
715
|
|
Property, plant and equipment – net
|
714
|
|
|
529
|
|
||
Other assets
|
498
|
|
|
616
|
|
||
|
1,919
|
|
|
1,860
|
|
||
Liabilities:
|
|
|
|
|
|
||
Current liabilities
|
450
|
|
|
443
|
|
||
Long-term debt due after one year
|
887
|
|
|
708
|
|
||
Other liabilities
|
167
|
|
|
170
|
|
||
|
1,504
|
|
|
1,321
|
|
||
Equity
|
$
|
415
|
|
|
$
|
539
|
|
|
|
|
|
Caterpillar’s investments in unconsolidated affiliated companies:
(Millions of dollars)
|
September 30,
2013 |
|
December 31,
2012 |
||||
Investments in equity method companies
|
$
|
268
|
|
|
$
|
256
|
|
Plus: Investments in cost method companies
|
10
|
|
|
16
|
|
||
Total investments in unconsolidated affiliated companies
|
$
|
278
|
|
|
$
|
272
|
|
|
|
|
|
|
|
|
September 30, 2013
|
||||||||||
(Millions of dollars)
|
Weighted
Amortizable
Life (Years)
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
||||||
Customer relationships
|
15
|
|
$
|
2,685
|
|
|
$
|
(497
|
)
|
|
$
|
2,188
|
|
Intellectual property
|
11
|
|
1,816
|
|
|
(455
|
)
|
|
1,361
|
|
|||
Other
|
10
|
|
282
|
|
|
(131
|
)
|
|
151
|
|
|||
Total finite-lived intangible assets
|
13
|
|
4,783
|
|
|
(1,083
|
)
|
|
3,700
|
|
|||
Indefinite-lived intangible assets - In-process research & development
|
|
|
18
|
|
|
—
|
|
|
18
|
|
|||
Total intangible assets
|
|
|
$
|
4,801
|
|
|
$
|
(1,083
|
)
|
|
$
|
3,718
|
|
|
|
|
December 31, 2012
|
||||||||||
|
Weighted
Amortizable
Life (Years)
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
||||||
Customer relationships
|
15
|
|
$
|
2,756
|
|
|
$
|
(377
|
)
|
|
$
|
2,379
|
|
Intellectual property
|
12
|
|
1,767
|
|
|
(342
|
)
|
|
1,425
|
|
|||
Other
|
10
|
|
299
|
|
|
(105
|
)
|
|
194
|
|
|||
Total finite-lived intangible assets
|
13
|
|
4,822
|
|
|
(824
|
)
|
|
3,998
|
|
|||
Indefinite-lived intangible assets - In-process research & development
|
|
|
18
|
|
|
—
|
|
|
18
|
|
|||
Total intangible assets
|
|
|
$
|
4,840
|
|
|
$
|
(824
|
)
|
|
$
|
4,016
|
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
||||||||||
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
Thereafter
|
$369
|
|
$374
|
|
$372
|
|
$360
|
|
$358
|
|
$2,161
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
December 31,
2012 |
|
Acquisitions
1
|
|
Held for Sale and Business Divestitures
2
|
|
Other Adjustments
3
|
|
September 30,
2013 |
||||||||||
Construction Industries
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Goodwill
|
|
$
|
382
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(46
|
)
|
|
$
|
336
|
|
Resource Industries
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
|
4,559
|
|
|
—
|
|
|
(37
|
)
|
|
1
|
|
|
4,523
|
|
|||||
Impairments
|
|
(602
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(602
|
)
|
|||||
Net goodwill
|
|
3,957
|
|
|
—
|
|
|
(37
|
)
|
|
1
|
|
|
3,921
|
|
|||||
Power Systems
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
|
2,486
|
|
|
109
|
|
|
(10
|
)
|
|
9
|
|
|
2,594
|
|
|||||
All Other
4
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
|
117
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
117
|
|
|||||
Consolidated total
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
|
7,544
|
|
|
109
|
|
|
(47
|
)
|
|
(36
|
)
|
|
7,570
|
|
|||||
Impairments
|
|
(602
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(602
|
)
|
|||||
Net goodwill
|
|
$
|
6,942
|
|
|
$
|
109
|
|
|
$
|
(47
|
)
|
|
$
|
(36
|
)
|
|
$
|
6,968
|
|
|
|
|
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
(Millions of dollars)
|
Cost
Basis
|
|
Unrealized Pretax Net Gains
(Losses)
|
|
Fair
Value
|
|
Cost
Basis
|
|
Unrealized Pretax Net Gains
(Losses)
|
|
Fair
Value
|
||||||||||||
Government debt
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. treasury bonds
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
10
|
|
Other U.S. and non-U.S. government bonds
|
125
|
|
|
1
|
|
|
126
|
|
|
144
|
|
|
2
|
|
|
146
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate bonds
|
648
|
|
|
24
|
|
|
672
|
|
|
626
|
|
|
38
|
|
|
664
|
|
||||||
Asset-backed securities
|
75
|
|
|
—
|
|
|
75
|
|
|
96
|
|
|
—
|
|
|
96
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. governmental agency
|
336
|
|
|
1
|
|
|
337
|
|
|
291
|
|
|
8
|
|
|
299
|
|
||||||
Residential
|
21
|
|
|
—
|
|
|
21
|
|
|
26
|
|
|
(1
|
)
|
|
25
|
|
||||||
Commercial
|
87
|
|
|
6
|
|
|
93
|
|
|
117
|
|
|
10
|
|
|
127
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Large capitalization value
|
158
|
|
|
73
|
|
|
231
|
|
|
147
|
|
|
38
|
|
|
185
|
|
||||||
Smaller company growth
|
22
|
|
|
23
|
|
|
45
|
|
|
22
|
|
|
12
|
|
|
34
|
|
||||||
Total
|
$
|
1,483
|
|
|
$
|
128
|
|
|
$
|
1,611
|
|
|
$
|
1,479
|
|
|
$
|
107
|
|
|
$
|
1,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
||||||||||||||||||||||
|
Less than 12 months
1
|
|
12 months or more
1
|
|
Total
|
||||||||||||||||||
(Millions of dollars)
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
Corporate bonds
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset-backed securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20
|
|
|
$
|
3
|
|
|
$
|
20
|
|
|
$
|
3
|
|
Mortgage-backed debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. governmental agency
|
84
|
|
|
1
|
|
|
15
|
|
|
—
|
|
|
99
|
|
|
1
|
|
||||||
Residential
|
—
|
|
|
—
|
|
|
14
|
|
|
1
|
|
|
14
|
|
|
1
|
|
||||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Large capitalization value
|
25
|
|
|
2
|
|
|
10
|
|
|
1
|
|
|
35
|
|
|
3
|
|
||||||
Total
|
$
|
109
|
|
|
$
|
3
|
|
|
$
|
59
|
|
|
$
|
5
|
|
|
$
|
168
|
|
|
$
|
8
|
|
|
|
|
|
|
|
September 30, 2013
|
||||||
(Millions of dollars)
|
Cost Basis
|
|
Fair Value
|
||||
Due in one year or less
|
$
|
211
|
|
|
$
|
214
|
|
Due after one year through five years
|
589
|
|
|
611
|
|
||
Due after five years through ten years
|
28
|
|
|
29
|
|
||
Due after ten years
|
31
|
|
|
30
|
|
||
U.S. governmental agency mortgage-backed securities
|
336
|
|
|
337
|
|
||
Residential mortgage-backed securities
|
21
|
|
|
21
|
|
||
Commercial mortgage-backed securities
|
87
|
|
|
93
|
|
||
Total debt securities – available-for-sale
|
$
|
1,303
|
|
|
$
|
1,335
|
|
|
|
|
|
|
Sales of Securities:
|
|
|
|
||||||||||||
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(Millions of dollars)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Proceeds from the sale of available-for-sale securities
|
$
|
90
|
|
|
$
|
66
|
|
|
$
|
297
|
|
|
$
|
243
|
|
Gross gains from the sale of available-for-sale securities
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
4
|
|
Gross losses from the sale of available-for-sale securities
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
(Millions of dollars)
|
U.S. Pension
Benefits
|
|
Non-U.S. Pension
Benefits
|
|
Other
Postretirement
Benefits
|
||||||||||||||||||
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||
For the three months ended:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Components of net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
49
|
|
|
$
|
46
|
|
|
$
|
31
|
|
|
$
|
26
|
|
|
$
|
24
|
|
|
$
|
23
|
|
Interest cost
|
147
|
|
|
152
|
|
|
43
|
|
|
44
|
|
|
48
|
|
|
55
|
|
||||||
Expected return on plan assets
|
(208
|
)
|
|
(204
|
)
|
|
(59
|
)
|
|
(53
|
)
|
|
(14
|
)
|
|
(15
|
)
|
||||||
Amortization of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Transition obligation (asset)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Prior service cost (credit)
1
|
4
|
|
|
5
|
|
|
—
|
|
|
1
|
|
|
(18
|
)
|
|
(18
|
)
|
||||||
Net actuarial loss (gain)
1
|
136
|
|
|
126
|
|
|
33
|
|
|
24
|
|
|
27
|
|
|
25
|
|
||||||
Net periodic benefit cost
|
128
|
|
|
125
|
|
|
48
|
|
|
42
|
|
|
68
|
|
|
71
|
|
||||||
Adjustment for subsidiary pension plan
2
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Curtailments, settlements and special termination benefits
3
|
—
|
|
|
7
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||||
Total cost included in operating profit
|
$
|
159
|
|
|
$
|
132
|
|
|
$
|
48
|
|
|
$
|
48
|
|
|
$
|
68
|
|
|
$
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
For the nine months ended:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Components of net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
147
|
|
|
$
|
138
|
|
|
$
|
93
|
|
|
$
|
82
|
|
|
$
|
79
|
|
|
$
|
69
|
|
Interest cost
|
436
|
|
|
460
|
|
|
128
|
|
|
135
|
|
|
146
|
|
|
166
|
|
||||||
Expected return on plan assets
|
(624
|
)
|
|
(610
|
)
|
|
(176
|
)
|
|
(160
|
)
|
|
(42
|
)
|
|
(47
|
)
|
||||||
Amortization of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Transition obligation (asset)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||||
Prior service cost (credit)
1
|
13
|
|
|
15
|
|
|
1
|
|
|
1
|
|
|
(55
|
)
|
|
(51
|
)
|
||||||
Net actuarial loss (gain)
1
|
409
|
|
|
374
|
|
|
99
|
|
|
72
|
|
|
81
|
|
|
75
|
|
||||||
Net periodic benefit cost
|
381
|
|
|
377
|
|
|
145
|
|
|
130
|
|
|
211
|
|
|
214
|
|
||||||
Adjustment for subsidiary pension plan
2
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Curtailments, settlements and special termination benefits
3
|
—
|
|
|
7
|
|
|
3
|
|
|
28
|
|
|
—
|
|
|
(40
|
)
|
||||||
Total cost included in operating profit
|
$
|
412
|
|
|
$
|
384
|
|
|
$
|
148
|
|
|
$
|
158
|
|
|
$
|
211
|
|
|
$
|
174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted-average assumptions used to determine net cost:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Discount rate
|
3.7
|
%
|
|
4.3
|
%
|
|
3.7
|
%
|
|
4.3
|
%
|
|
3.7
|
%
|
|
4.3
|
%
|
||||||
Expected return on plan assets
|
7.8
|
%
|
|
8.0
|
%
|
|
6.7
|
%
|
|
7.1
|
%
|
|
7.8
|
%
|
|
8.0
|
%
|
||||||
Rate of compensation increase
|
4.5
|
%
|
|
4.5
|
%
|
|
3.9
|
%
|
|
3.9
|
%
|
|
4.4
|
%
|
|
4.4
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Prior service cost (credit) and net actuarial loss (gain) for both pension and other postretirement benefits are generally amortized using the straight-line method over the average remaining service period to the full retirement eligibility date of employees expected to receive benefits from the plan. For pension plans in which all or almost all of the plan's participants are inactive and other postretirement benefit plans in which all or almost all of the plan's participants are fully eligible for benefits under the plan, prior service cost (credit) and net actuarial loss (gain) are amortized using the straight-line method over the remaining life expectancy of those participants.
|
2
|
Charge to recognize a previously unrecorded liability related to a subsidiary's pension plans.
|
3
|
Curtailments, settlements and special termination benefits were recognized in Other operating (income) expenses in the Consolidated Statement of Results of Operations.
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(Millions of dollars)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
U.S. Plans
|
$
|
74
|
|
|
$
|
62
|
|
|
$
|
218
|
|
|
$
|
196
|
|
Non-U.S. Plans
|
16
|
|
|
15
|
|
|
47
|
|
|
46
|
|
||||
|
$
|
90
|
|
|
$
|
77
|
|
|
$
|
265
|
|
|
$
|
242
|
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
September 30,
2013 |
|
December 31,
2012 |
||||
Caterpillar dealer guarantees
|
$
|
201
|
|
|
$
|
180
|
|
Customer guarantees
|
53
|
|
|
77
|
|
||
Customer guarantees – supplier consortium
|
359
|
|
|
—
|
|
||
Third party logistics business guarantees
|
156
|
|
|
176
|
|
||
Other guarantees
|
35
|
|
|
53
|
|
||
Total guarantees
|
$
|
804
|
|
|
$
|
486
|
|
|
|
|
|
(Millions of dollars)
|
2013
|
||
Warranty liability, January 1
|
$
|
1,477
|
|
Reduction in liability (payments)
|
(677
|
)
|
|
Increase in liability (new warranties)
|
570
|
|
|
Warranty liability, September 30
|
$
|
1,370
|
|
|
|
|
(Millions of dollars)
|
2012
|
||
Warranty liability, January 1
|
$
|
1,308
|
|
Reduction in liability (payments)
|
(920
|
)
|
|
Increase in liability (new warranties)
|
1,089
|
|
|
Warranty liability, December 31
|
$
|
1,477
|
|
|
|
|
Computations of profit per share:
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30, |
||||||||||||||
(Dollars in millions except per share data)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||
Profit for the period (A)
1
:
|
$
|
946
|
|
|
$
|
1,699
|
|
|
$
|
2,786
|
|
|
$
|
4,984
|
|
||
Determination of shares (in millions):
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average number of common shares outstanding (B)
|
639.3
|
|
|
653.6
|
|
|
647.6
|
|
|
652.0
|
|
||||||
Shares issuable on exercise of stock awards, net of shares assumed to be purchased out of proceeds at average market price
|
12.6
|
|
|
15.1
|
|
|
13.7
|
|
|
17.7
|
|
||||||
Average common shares outstanding for fully diluted computation (C)
2
|
651.9
|
|
|
668.7
|
|
|
661.3
|
|
|
669.7
|
|
||||||
Profit per share of common stock:
|
|
|
|
|
|
|
|
|
|
||||||||
Assuming no dilution (A/B)
|
$
|
1.48
|
|
|
$
|
2.60
|
|
|
$
|
4.30
|
|
|
$
|
7.64
|
|
||
Assuming full dilution (A/C)
2
|
$
|
1.45
|
|
|
$
|
2.54
|
|
|
$
|
4.21
|
|
|
$
|
7.44
|
|
||
Shares outstanding as of September 30 (in millions)
|
|
|
|
|
636.4
|
|
|
653.9
|
|
1
|
Profit attributable to common stockholders.
|
2
|
Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
|
|
|
|
|
|
(Millions of dollars)
|
|
Foreign currency translation
|
|
Pension and other postretirement benefits
|
|
Derivative financial instruments
|
|
Available-for-sale securities
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at September 30, 2012
1
|
|
$
|
432
|
|
|
$
|
(6,454
|
)
|
|
$
|
(35
|
)
|
|
$
|
69
|
|
|
$
|
(5,988
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at June 30, 2013
|
|
$
|
(92
|
)
|
|
$
|
(6,645
|
)
|
|
$
|
(33
|
)
|
|
$
|
72
|
|
|
$
|
(6,698
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
291
|
|
|
(3
|
)
|
|
26
|
|
|
9
|
|
|
323
|
|
|||||
Amounts reclassified from accumulated other comprehensive (income) loss
|
|
—
|
|
|
120
|
|
|
9
|
|
|
(1
|
)
|
|
128
|
|
|||||
Other comprehensive income (loss)
|
|
291
|
|
|
117
|
|
|
35
|
|
|
8
|
|
|
451
|
|
|||||
Balance at September 30, 2013
|
|
$
|
199
|
|
|
$
|
(6,528
|
)
|
|
$
|
2
|
|
|
$
|
80
|
|
|
$
|
(6,247
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nine Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2012
|
|
$
|
456
|
|
|
$
|
(6,914
|
)
|
|
$
|
(42
|
)
|
|
$
|
67
|
|
|
$
|
(6,433
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
(257
|
)
|
|
24
|
|
|
2
|
|
|
14
|
|
|
(217
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive (income) loss
|
|
—
|
|
|
362
|
|
|
42
|
|
|
(1
|
)
|
|
403
|
|
|||||
Other comprehensive income (loss)
|
|
(257
|
)
|
|
386
|
|
|
44
|
|
|
13
|
|
|
186
|
|
|||||
Balance at September 30, 2013
|
|
$
|
199
|
|
|
$
|
(6,528
|
)
|
|
$
|
2
|
|
|
$
|
80
|
|
|
$
|
(6,247
|
)
|
1
|
In conjunction with the Cat Japan share redemption, to reflect the increase in our ownership interest in Cat Japan from
67 percent
to
100 percent
,
$107 million
was reclassified to Accumulated other comprehensive income (loss) from other components of stockholders' equity and was not included in Comprehensive income during the second quarter of 2012. The amount was comprised of foreign currency translation of
$167 million
, pension and other postretirement benefits of
$(61) million
and available-for-sale securities of
$1 million
.
|
|
|
|
|
|
|
|
|
|
|
A.
|
Basis for segment information
|
B.
|
Description of segments
|
C.
|
Segment measurement and reconciliations
|
•
|
Machinery and Power Systems segment net assets generally include inventories, receivables, property, plant and equipment, goodwill, intangibles, accounts payable, and customer advances. Liabilities other than accounts payable and customer advances are generally managed at the corporate level and are not included in segment operations. Financial Products Segment assets generally include all categories of assets.
|
•
|
Segment inventories and cost of sales are valued using a current cost methodology.
|
•
|
Goodwill allocated to segments is amortized using a fixed amount based on a
20
year useful life. This methodology difference only impacts segment assets; no goodwill amortization expense is included in segment profit. In addition, only a portion of goodwill for certain acquisitions made in 2011 or later has been allocated to segments.
|
•
|
The present value of future lease payments for certain Machinery and Power Systems operating leases is included in segment assets. The estimated financing component of the lease payments is excluded.
|
•
|
Currency exposures for Machinery and Power Systems are generally managed at the corporate level and the effects of changes in exchange rates on results of operations within the year are not included in segment profit. The net difference created in the translation of revenues and costs between exchange rates used for U.S. GAAP reporting and exchange rates used for segment reporting are recorded as a methodology difference.
|
•
|
Postretirement benefit expenses are split; segments are generally responsible for service and prior service costs, with the remaining elements of net periodic benefit cost included as a methodology difference.
|
•
|
Machinery and Power Systems segment profit is determined on a pretax basis and excludes interest expense, gains and losses on interest rate swaps and other income/expense items. Financial Products Segment profit is determined on a pretax basis and includes other income/expense items.
|
•
|
Corporate costs:
These costs are related to corporate requirements and strategies that are considered to be for the benefit of the entire organization.
|
•
|
Methodology differences:
See previous discussion of significant accounting differences between segment reporting and consolidated external reporting.
|
•
|
Timing:
Timing differences in the recognition of costs between segment reporting and consolidated external reporting.
|
Reportable Segments
|
|||||||||||||||||||||||||||
Three Months Ended September 30,
|
|||||||||||||||||||||||||||
(Millions of dollars)
|
|||||||||||||||||||||||||||
|
2013
|
||||||||||||||||||||||||||
|
External
sales and
revenues
|
|
Inter-
segment
sales and
revenues
|
|
Total sales
and
revenues
|
|
Depreciation
and
amortization
|
|
Segment
profit
|
|
Segment
assets at
September 30
|
|
Capital
expenditures
|
||||||||||||||
Construction Industries
|
$
|
4,547
|
|
|
$
|
68
|
|
|
$
|
4,615
|
|
|
$
|
145
|
|
|
$
|
262
|
|
|
$
|
8,489
|
|
|
$
|
143
|
|
Resource Industries
|
3,004
|
|
|
208
|
|
|
3,212
|
|
|
192
|
|
|
409
|
|
|
11,703
|
|
|
106
|
|
|||||||
Power Systems
|
4,922
|
|
|
471
|
|
|
5,393
|
|
|
161
|
|
|
883
|
|
|
9,013
|
|
|
125
|
|
|||||||
Machinery and Power Systems
|
$
|
12,473
|
|
|
$
|
747
|
|
|
$
|
13,220
|
|
|
$
|
498
|
|
|
$
|
1,554
|
|
|
$
|
29,205
|
|
|
$
|
374
|
|
Financial Products Segment
|
807
|
|
|
—
|
|
|
807
|
|
|
203
|
|
|
218
|
|
|
37,239
|
|
|
473
|
|
|||||||
Total
|
$
|
13,280
|
|
|
$
|
747
|
|
|
$
|
14,027
|
|
|
$
|
701
|
|
|
$
|
1,772
|
|
|
$
|
66,444
|
|
|
$
|
847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
2012
|
||||||||||||||||||||||||||
|
External
sales and
revenues
|
|
Inter-
segment
sales and
revenues
|
|
Total sales
and
revenues
|
|
Depreciation
and
amortization
|
|
Segment
profit
|
|
Segment
assets at
December 31
|
|
Capital
expenditures
|
||||||||||||||
Construction Industries
|
$
|
4,904
|
|
|
$
|
102
|
|
|
$
|
5,006
|
|
|
$
|
144
|
|
|
$
|
459
|
|
|
$
|
10,393
|
|
|
$
|
247
|
|
Resource Industries
|
5,214
|
|
|
253
|
|
|
5,467
|
|
|
179
|
|
|
1,113
|
|
|
13,455
|
|
|
229
|
|
|||||||
Power Systems
|
5,317
|
|
|
597
|
|
|
5,914
|
|
|
157
|
|
|
943
|
|
|
9,323
|
|
|
244
|
|
|||||||
Machinery and Power Systems
|
$
|
15,435
|
|
|
$
|
952
|
|
|
$
|
16,387
|
|
|
$
|
480
|
|
|
$
|
2,515
|
|
|
$
|
33,171
|
|
|
$
|
720
|
|
Financial Products Segment
|
776
|
|
|
—
|
|
|
776
|
|
|
179
|
|
|
190
|
|
|
36,563
|
|
|
432
|
|
|||||||
Total
|
$
|
16,211
|
|
|
$
|
952
|
|
|
$
|
17,163
|
|
|
$
|
659
|
|
|
$
|
2,705
|
|
|
$
|
69,734
|
|
|
$
|
1,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable Segments
|
|||||||||||||||||||||||||||
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||
(Millions of dollars)
|
|||||||||||||||||||||||||||
|
2013
|
||||||||||||||||||||||||||
|
External
sales and
revenues
|
|
Inter-
segment
sales and
revenues
|
|
Total sales
and
revenues
|
|
Depreciation
and
amortization
|
|
Segment
profit
|
|
Segment
assets at September 30 |
|
Capital
expenditures
|
||||||||||||||
Construction Industries
|
$
|
13,594
|
|
|
$
|
262
|
|
|
$
|
13,856
|
|
|
$
|
426
|
|
|
$
|
863
|
|
|
$
|
8,489
|
|
|
$
|
403
|
|
Resource Industries
|
10,251
|
|
|
661
|
|
|
10,912
|
|
|
558
|
|
|
1,436
|
|
|
11,703
|
|
|
358
|
|
|||||||
Power Systems
|
14,590
|
|
|
1,328
|
|
|
15,918
|
|
|
468
|
|
|
2,436
|
|
|
9,013
|
|
|
390
|
|
|||||||
Machinery and Power Systems
|
$
|
38,435
|
|
|
$
|
2,251
|
|
|
$
|
40,686
|
|
|
$
|
1,452
|
|
|
$
|
4,735
|
|
|
$
|
29,205
|
|
|
$
|
1,151
|
|
Financial Products Segment
|
2,408
|
|
|
—
|
|
|
2,408
|
|
|
571
|
|
|
724
|
|
|
37,239
|
|
|
1,244
|
|
|||||||
Total
|
$
|
40,843
|
|
|
$
|
2,251
|
|
|
$
|
43,094
|
|
|
$
|
2,023
|
|
|
$
|
5,459
|
|
|
$
|
66,444
|
|
|
$
|
2,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
2012
|
||||||||||||||||||||||||||
|
External
sales and
revenues
|
|
Inter-
segment
sales and
revenues
|
|
Total sales
and
revenues
|
|
Depreciation
and
amortization
|
|
Segment
profit
|
|
Segment
assets at
December 31
|
|
Capital
expenditures
|
||||||||||||||
Construction Industries
|
$
|
15,306
|
|
|
$
|
355
|
|
|
$
|
15,661
|
|
|
$
|
414
|
|
|
$
|
1,763
|
|
|
$
|
10,393
|
|
|
$
|
597
|
|
Resource Industries
|
15,382
|
|
|
909
|
|
|
16,291
|
|
|
510
|
|
|
3,707
|
|
|
13,455
|
|
|
603
|
|
|||||||
Power Systems
|
15,815
|
|
|
1,952
|
|
|
17,767
|
|
|
442
|
|
|
2,737
|
|
|
9,323
|
|
|
610
|
|
|||||||
Machinery and Power Systems
|
$
|
46,503
|
|
|
$
|
3,216
|
|
|
$
|
49,719
|
|
|
$
|
1,366
|
|
|
$
|
8,207
|
|
|
$
|
33,171
|
|
|
$
|
1,810
|
|
Financial Products Segment
|
2,301
|
|
|
—
|
|
|
2,301
|
|
|
530
|
|
|
583
|
|
|
36,563
|
|
|
1,232
|
|
|||||||
Total
|
$
|
48,804
|
|
|
$
|
3,216
|
|
|
$
|
52,020
|
|
|
$
|
1,896
|
|
|
$
|
8,790
|
|
|
$
|
69,734
|
|
|
$
|
3,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Consolidated profit before taxes:
|
|
|
|
|
|
||||||
(Millions of dollars)
|
Machinery
and Power
Systems
|
|
Financial
Products
|
|
Consolidated
Total
|
||||||
Three Months Ended September 30, 2013
|
|
|
|
|
|
||||||
Total profit from reportable segments
|
$
|
1,554
|
|
|
$
|
218
|
|
|
$
|
1,772
|
|
All Other operating segment
|
170
|
|
|
—
|
|
|
170
|
|
|||
Cost centers
|
42
|
|
|
—
|
|
|
42
|
|
|||
Corporate costs
|
(376
|
)
|
|
—
|
|
|
(376
|
)
|
|||
Timing
|
77
|
|
|
—
|
|
|
77
|
|
|||
Methodology differences:
|
|
|
|
|
|
|
|
||||
Inventory/cost of sales
|
(36
|
)
|
|
—
|
|
|
(36
|
)
|
|||
Postretirement benefit expense
|
(174
|
)
|
|
—
|
|
|
(174
|
)
|
|||
Financing costs
|
(120
|
)
|
|
—
|
|
|
(120
|
)
|
|||
Equity in (profit) loss of unconsolidated affiliated companies
|
1
|
|
|
—
|
|
|
1
|
|
|||
Currency
|
(32
|
)
|
|
—
|
|
|
(32
|
)
|
|||
Other income/expense methodology differences
|
(58
|
)
|
|
—
|
|
|
(58
|
)
|
|||
Other methodology differences
|
(1
|
)
|
|
(4
|
)
|
|
(5
|
)
|
|||
Total consolidated profit before taxes
|
$
|
1,047
|
|
|
$
|
214
|
|
|
$
|
1,261
|
|
|
|
|
|
|
|
||||||
Three Months Ended September 30, 2012
|
|
|
|
|
|
|
|
|
|||
Total profit from reportable segments
|
$
|
2,515
|
|
|
$
|
190
|
|
|
$
|
2,705
|
|
All Other operating segment
|
482
|
|
|
—
|
|
|
482
|
|
|||
Cost centers
|
9
|
|
|
—
|
|
|
9
|
|
|||
Corporate costs
|
(366
|
)
|
|
—
|
|
|
(366
|
)
|
|||
Timing
|
(30
|
)
|
|
—
|
|
|
(30
|
)
|
|||
Methodology differences:
|
|
|
|
|
|
|
|||||
Inventory/cost of sales
|
9
|
|
|
—
|
|
|
9
|
|
|||
Postretirement benefit expense
|
(177
|
)
|
|
—
|
|
|
(177
|
)
|
|||
Financing costs
|
(130
|
)
|
|
—
|
|
|
(130
|
)
|
|||
Equity in (profit) loss of unconsolidated affiliated companies
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||
Currency
|
20
|
|
|
—
|
|
|
20
|
|
|||
Interest rate swaps
|
2
|
|
|
—
|
|
|
2
|
|
|||
Other income/expense methodology differences
|
(64
|
)
|
|
—
|
|
|
(64
|
)
|
|||
Other methodology differences
|
(9
|
)
|
|
4
|
|
|
(5
|
)
|
|||
Total consolidated profit before taxes
|
$
|
2,256
|
|
|
$
|
194
|
|
|
$
|
2,450
|
|
|
|
|
|
|
|
Reconciliation of Consolidated profit before taxes:
|
|
|
|
|
|
||||||
(Millions of dollars)
|
Machinery
and Power
Systems
|
|
Financial
Products
|
|
Consolidated
Total
|
||||||
Nine Months Ended September 30, 2013
|
|
|
|
|
|
||||||
Total profit from reportable segments
|
$
|
4,735
|
|
|
$
|
724
|
|
|
$
|
5,459
|
|
All Other operating segment
|
547
|
|
|
—
|
|
|
547
|
|
|||
Cost centers
|
100
|
|
|
—
|
|
|
100
|
|
|||
Corporate costs
|
(1,160
|
)
|
|
—
|
|
|
(1,160
|
)
|
|||
Timing
|
58
|
|
|
—
|
|
|
58
|
|
|||
Methodology differences:
|
|
|
|
|
|
|
|||||
Inventory/cost of sales
|
(139
|
)
|
|
—
|
|
|
(139
|
)
|
|||
Postretirement benefit expense
|
(505
|
)
|
|
—
|
|
|
(505
|
)
|
|||
Financing costs
|
(361
|
)
|
|
—
|
|
|
(361
|
)
|
|||
Equity in (profit) loss of unconsolidated affiliated companies
|
1
|
|
|
—
|
|
|
1
|
|
|||
Currency
|
(71
|
)
|
|
—
|
|
|
(71
|
)
|
|||
Other income/expense methodology differences
|
(178
|
)
|
|
—
|
|
|
(178
|
)
|
|||
Other methodology differences
|
(20
|
)
|
|
10
|
|
|
(10
|
)
|
|||
Total consolidated profit before taxes
|
$
|
3,007
|
|
|
$
|
734
|
|
|
$
|
3,741
|
|
|
|
|
|
|
|
||||||
Nine Months Ended September 30, 2012
|
|
|
|
|
|
|
|
|
|||
Total profit from reportable segments
|
$
|
8,207
|
|
|
$
|
583
|
|
|
$
|
8,790
|
|
All Other operating segment
|
888
|
|
|
—
|
|
|
888
|
|
|||
Cost centers
|
32
|
|
|
—
|
|
|
32
|
|
|||
Corporate costs
|
(1,126
|
)
|
|
—
|
|
|
(1,126
|
)
|
|||
Timing
|
(318
|
)
|
|
—
|
|
|
(318
|
)
|
|||
Methodology differences:
|
|
|
|
|
|
||||||
Inventory/cost of sales
|
(26
|
)
|
|
—
|
|
|
(26
|
)
|
|||
Postretirement benefit expense
|
(508
|
)
|
|
—
|
|
|
(508
|
)
|
|||
Financing costs
|
(357
|
)
|
|
—
|
|
|
(357
|
)
|
|||
Equity in (profit) loss of unconsolidated affiliated companies
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
|||
Currency
|
160
|
|
|
—
|
|
|
160
|
|
|||
Interest rate swaps
|
2
|
|
|
—
|
|
|
2
|
|
|||
Other income/expense methodology differences
|
(199
|
)
|
|
—
|
|
|
(199
|
)
|
|||
Other methodology differences
|
(3
|
)
|
|
1
|
|
|
(2
|
)
|
|||
Total consolidated profit before taxes
|
$
|
6,740
|
|
|
$
|
584
|
|
|
$
|
7,324
|
|
|
|
|
|
|
|
Reconciliation of Assets:
|
|
|
|
|
|
|
|
||||||||
(Millions of dollars)
|
Machinery
and Power
Systems
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||
September 30, 2013
|
|
|
|
|
|
|
|
||||||||
Total assets from reportable segments
|
$
|
29,205
|
|
|
$
|
37,239
|
|
|
$
|
—
|
|
|
$
|
66,444
|
|
All Other operating segment
|
1,442
|
|
|
—
|
|
|
—
|
|
|
1,442
|
|
||||
Items not included in segment assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and short-term investments
|
4,108
|
|
|
—
|
|
|
—
|
|
|
4,108
|
|
||||
Intercompany receivables
|
243
|
|
|
—
|
|
|
(243
|
)
|
|
—
|
|
||||
Investment in Financial Products
|
4,769
|
|
|
—
|
|
|
(4,769
|
)
|
|
—
|
|
||||
Deferred income taxes
|
3,883
|
|
|
—
|
|
|
(490
|
)
|
|
3,393
|
|
||||
Goodwill and intangible assets
|
3,567
|
|
|
—
|
|
|
—
|
|
|
3,567
|
|
||||
Property, plant and equipment – net and other assets
|
1,057
|
|
|
—
|
|
|
—
|
|
|
1,057
|
|
||||
Operating lease methodology difference
|
(287
|
)
|
|
—
|
|
|
—
|
|
|
(287
|
)
|
||||
Liabilities included in segment assets
|
10,504
|
|
|
—
|
|
|
—
|
|
|
10,504
|
|
||||
Inventory methodology differences
|
(2,610
|
)
|
|
—
|
|
|
—
|
|
|
(2,610
|
)
|
||||
Other
|
(132
|
)
|
|
(151
|
)
|
|
(63
|
)
|
|
(346
|
)
|
||||
Total assets
|
$
|
55,749
|
|
|
$
|
37,088
|
|
|
$
|
(5,565
|
)
|
|
$
|
87,272
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total assets from reportable segments
|
$
|
33,171
|
|
|
$
|
36,563
|
|
|
$
|
—
|
|
|
$
|
69,734
|
|
All Other operating segment
|
1,499
|
|
|
—
|
|
|
—
|
|
|
1,499
|
|
||||
Items not included in segment assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and short-term investments
|
3,306
|
|
|
—
|
|
|
—
|
|
|
3,306
|
|
||||
Intercompany receivables
|
303
|
|
|
—
|
|
|
(303
|
)
|
|
—
|
|
||||
Investment in Financial Products
|
4,433
|
|
|
—
|
|
|
(4,433
|
)
|
|
—
|
|
||||
Deferred income taxes
|
3,926
|
|
|
—
|
|
|
(516
|
)
|
|
3,410
|
|
||||
Goodwill and intangible assets
|
3,145
|
|
|
—
|
|
|
—
|
|
|
3,145
|
|
||||
Property, plant and equipment – net and other assets
|
668
|
|
|
—
|
|
|
—
|
|
|
668
|
|
||||
Operating lease methodology difference
|
(329
|
)
|
|
—
|
|
|
—
|
|
|
(329
|
)
|
||||
Liabilities included in segment assets
|
11,293
|
|
|
—
|
|
|
—
|
|
|
11,293
|
|
||||
Inventory methodology differences
|
(2,949
|
)
|
|
—
|
|
|
—
|
|
|
(2,949
|
)
|
||||
Other
|
(182
|
)
|
|
(107
|
)
|
|
(132
|
)
|
|
(421
|
)
|
||||
Total assets
|
$
|
58,284
|
|
|
$
|
36,456
|
|
|
$
|
(5,384
|
)
|
|
$
|
89,356
|
|
|
|
|
|
|
|
|
|
Reconciliations of Depreciation and amortization:
|
|
|
|
|
|
||||||
(Millions of dollars)
|
Machinery
and Power
Systems
|
|
Financial
Products
|
|
Consolidated
Total
|
||||||
Three Months Ended September 30, 2013
|
|
|
|
|
|
||||||
Total depreciation and amortization from reportable segments
|
$
|
498
|
|
|
$
|
203
|
|
|
$
|
701
|
|
Items not included in segment depreciation and amortization:
|
|
|
|
|
|
|
|
|
|||
All Other operating segment
|
43
|
|
|
—
|
|
|
43
|
|
|||
Cost centers
|
36
|
|
|
—
|
|
|
36
|
|
|||
Other
|
(7
|
)
|
|
6
|
|
|
(1
|
)
|
|||
Total depreciation and amortization
|
$
|
570
|
|
|
$
|
209
|
|
|
$
|
779
|
|
|
|
|
|
|
|
||||||
Three Months Ended September 30, 2012
|
|
|
|
|
|
|
|
|
|||
Total depreciation and amortization from reportable segments
|
$
|
480
|
|
|
$
|
179
|
|
|
$
|
659
|
|
Items not included in segment depreciation and amortization:
|
|
|
|
|
|
|
|
|
|||
All Other operating segment
|
41
|
|
|
—
|
|
|
41
|
|
|||
Cost centers
|
23
|
|
|
—
|
|
|
23
|
|
|||
Other
|
(9
|
)
|
|
6
|
|
|
(3
|
)
|
|||
Total depreciation and amortization
|
$
|
535
|
|
|
$
|
185
|
|
|
$
|
720
|
|
|
|
|
|
|
|
Reconciliations of Depreciation and amortization:
|
|
|
|
|
|
||||||
(Millions of dollars)
|
Machinery
and Power
Systems
|
|
Financial
Products
|
|
Consolidated
Total
|
||||||
Nine Months Ended September 30, 2013
|
|
|
|
|
|
||||||
Total depreciation and amortization from reportable segments
|
$
|
1,452
|
|
|
$
|
571
|
|
|
$
|
2,023
|
|
Items not included in segment depreciation and amortization:
|
|
|
|
|
|
|
|||||
All Other operating segment
|
127
|
|
|
—
|
|
|
127
|
|
|||
Cost centers
|
104
|
|
|
—
|
|
|
104
|
|
|||
Other
|
(9
|
)
|
|
18
|
|
|
9
|
|
|||
Total depreciation and amortization
|
$
|
1,674
|
|
|
$
|
589
|
|
|
$
|
2,263
|
|
|
|
|
|
|
|
||||||
Nine Months Ended September 30, 2012
|
|
|
|
|
|
|
|
|
|||
Total depreciation and amortization from reportable segments
|
$
|
1,366
|
|
|
$
|
530
|
|
|
$
|
1,896
|
|
Items not included in segment depreciation and amortization:
|
|
|
|
|
|
|
|||||
All Other operating segment
|
125
|
|
|
—
|
|
|
125
|
|
|||
Cost centers
|
64
|
|
|
—
|
|
|
64
|
|
|||
Other
|
(32
|
)
|
|
17
|
|
|
(15
|
)
|
|||
Total depreciation and amortization
|
$
|
1,523
|
|
|
$
|
547
|
|
|
$
|
2,070
|
|
|
|
|
|
|
|
Reconciliations of Capital expenditures:
|
|
|
|
|
|
|
|
||||||||
(Millions of dollars)
|
Machinery
and Power
Systems
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||
Three Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total capital expenditures from reportable segments
|
$
|
374
|
|
|
$
|
473
|
|
|
$
|
—
|
|
|
$
|
847
|
|
Items not included in segment capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
||||
All Other operating segment
|
88
|
|
|
—
|
|
|
—
|
|
|
88
|
|
||||
Cost centers
|
41
|
|
|
—
|
|
|
—
|
|
|
41
|
|
||||
Timing
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||
Other
|
(18
|
)
|
|
18
|
|
|
(15
|
)
|
|
(15
|
)
|
||||
Total capital expenditures
|
$
|
490
|
|
|
$
|
491
|
|
|
$
|
(15
|
)
|
|
$
|
966
|
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total capital expenditures from reportable segments
|
$
|
720
|
|
|
$
|
432
|
|
|
$
|
—
|
|
|
$
|
1,152
|
|
Items not included in segment capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
||||
All Other operating segment
|
75
|
|
|
—
|
|
|
—
|
|
|
75
|
|
||||
Cost centers
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||
Timing
|
(40
|
)
|
|
—
|
|
|
—
|
|
|
(40
|
)
|
||||
Other
|
8
|
|
|
35
|
|
|
(15
|
)
|
|
28
|
|
||||
Total capital expenditures
|
$
|
779
|
|
|
$
|
467
|
|
|
$
|
(15
|
)
|
|
$
|
1,231
|
|
|
|
|
|
|
|
|
|
Reconciliations of Capital expenditures:
|
|
|
|
|
|
|
|
||||||||
(Millions of dollars)
|
Machinery
and Power
Systems
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||
Nine Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total capital expenditures from reportable segments
|
$
|
1,151
|
|
|
$
|
1,244
|
|
|
$
|
—
|
|
|
$
|
2,395
|
|
Items not included in segment capital expenditures:
|
|
|
|
|
|
|
|
|
|
||||||
All Other operating segment
|
200
|
|
|
—
|
|
|
—
|
|
|
200
|
|
||||
Cost centers
|
115
|
|
|
—
|
|
|
—
|
|
|
115
|
|
||||
Timing
|
531
|
|
|
—
|
|
|
—
|
|
|
531
|
|
||||
Other
|
(94
|
)
|
|
66
|
|
|
(50
|
)
|
|
(78
|
)
|
||||
Total capital expenditures
|
$
|
1,903
|
|
|
$
|
1,310
|
|
|
$
|
(50
|
)
|
|
$
|
3,163
|
|
|
|
|
|
|
|
|
|
||||||||
Nine Months Ended September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total capital expenditures from reportable segments
|
$
|
1,810
|
|
|
$
|
1,232
|
|
|
$
|
—
|
|
|
$
|
3,042
|
|
Items not included in segment capital expenditures:
|
|
|
|
|
|
|
|
|
|
||||||
All Other operating segment
|
229
|
|
|
—
|
|
|
—
|
|
|
229
|
|
||||
Cost centers
|
119
|
|
|
—
|
|
|
—
|
|
|
119
|
|
||||
Timing
|
281
|
|
|
—
|
|
|
—
|
|
|
281
|
|
||||
Other
|
(115
|
)
|
|
109
|
|
|
(139
|
)
|
|
(145
|
)
|
||||
Total capital expenditures
|
$
|
2,324
|
|
|
$
|
1,341
|
|
|
$
|
(139
|
)
|
|
$
|
3,526
|
|
|
|
|
|
|
|
|
|
•
|
Customer – Finance receivables with retail customers.
|
•
|
Dealer – Finance receivables with Caterpillar dealers.
|
•
|
North America – Finance receivables originated in the United States or Canada.
|
•
|
Europe – Finance receivables originated in Europe, Africa, Middle East and the Commonwealth of Independent States.
|
•
|
Asia Pacific – Finance receivables originated in Australia, New Zealand, China, Japan, South Korea and Southeast Asia.
|
•
|
Mining – Finance receivables related to large mining customers worldwide.
|
•
|
Latin America – Finance receivables originated in Central and South American countries and Mexico.
|
•
|
Caterpillar Power Finance – Finance receivables related to marine vessels with Caterpillar engines worldwide and Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems worldwide.
|
|
September 30, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
(Millions of dollars)
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
||||||||||||
Impaired Loans and Finance Leases With No Allowance Recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
20
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
27
|
|
|
$
|
—
|
|
Europe
|
53
|
|
|
52
|
|
|
—
|
|
|
45
|
|
|
45
|
|
|
—
|
|
||||||
Asia Pacific
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
||||||
Mining
|
127
|
|
|
127
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
||||||
Latin America
|
16
|
|
|
16
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
—
|
|
||||||
Caterpillar Power Finance
|
305
|
|
|
304
|
|
|
—
|
|
|
295
|
|
|
295
|
|
|
—
|
|
||||||
Total
|
$
|
523
|
|
|
$
|
520
|
|
|
$
|
—
|
|
|
$
|
378
|
|
|
$
|
377
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired Loans and Finance Leases With An Allowance Recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
16
|
|
|
$
|
14
|
|
|
$
|
4
|
|
|
$
|
25
|
|
|
$
|
23
|
|
|
$
|
7
|
|
Europe
|
19
|
|
|
15
|
|
|
7
|
|
|
28
|
|
|
26
|
|
|
11
|
|
||||||
Asia Pacific
|
22
|
|
|
22
|
|
|
6
|
|
|
19
|
|
|
19
|
|
|
4
|
|
||||||
Mining
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Latin America
|
62
|
|
|
62
|
|
|
18
|
|
|
30
|
|
|
30
|
|
|
8
|
|
||||||
Caterpillar Power Finance
|
94
|
|
|
89
|
|
|
25
|
|
|
113
|
|
|
109
|
|
|
24
|
|
||||||
Total
|
$
|
213
|
|
|
$
|
202
|
|
|
$
|
60
|
|
|
$
|
215
|
|
|
$
|
207
|
|
|
$
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Impaired Loans and Finance Leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
36
|
|
|
$
|
33
|
|
|
$
|
4
|
|
|
$
|
53
|
|
|
$
|
50
|
|
|
$
|
7
|
|
Europe
|
72
|
|
|
67
|
|
|
7
|
|
|
73
|
|
|
71
|
|
|
11
|
|
||||||
Asia Pacific
|
24
|
|
|
24
|
|
|
6
|
|
|
21
|
|
|
21
|
|
|
4
|
|
||||||
Mining
|
127
|
|
|
127
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
||||||
Latin America
|
78
|
|
|
78
|
|
|
18
|
|
|
37
|
|
|
37
|
|
|
8
|
|
||||||
Caterpillar Power Finance
|
399
|
|
|
393
|
|
|
25
|
|
|
408
|
|
|
404
|
|
|
24
|
|
||||||
Total
|
$
|
736
|
|
|
$
|
722
|
|
|
$
|
60
|
|
|
$
|
593
|
|
|
$
|
584
|
|
|
$
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2013 |
|
Three Months Ended
September 30, 2012 |
||||||||||||
(Millions of dollars)
|
Average Recorded
Investment
|
|
Interest Income
Recognized
|
|
Average Recorded
Investment
|
|
Interest Income
Recognized
|
||||||||
Impaired Loans and Finance Leases With No Allowance Recorded
|
|
|
|
|
|
|
|
|
|
|
|
||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
||||
North America
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
41
|
|
|
$
|
1
|
|
Europe
|
52
|
|
|
—
|
|
|
45
|
|
|
—
|
|
||||
Asia Pacific
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Mining
|
96
|
|
|
2
|
|
|
9
|
|
|
1
|
|
||||
Latin America
|
14
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||
Caterpillar Power Finance
|
280
|
|
|
1
|
|
|
219
|
|
|
—
|
|
||||
Total
|
$
|
468
|
|
|
$
|
3
|
|
|
$
|
323
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
||||||||
Impaired Loans and Finance Leases With An Allowance Recorded
|
|
|
|
|
|
|
|
|
|
|
|
||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
||||
North America
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
25
|
|
|
$
|
—
|
|
Europe
|
21
|
|
|
—
|
|
|
27
|
|
|
1
|
|
||||
Asia Pacific
|
18
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||
Mining
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Latin America
|
53
|
|
|
1
|
|
|
37
|
|
|
1
|
|
||||
Caterpillar Power Finance
|
156
|
|
|
1
|
|
|
106
|
|
|
—
|
|
||||
Total
|
$
|
262
|
|
|
$
|
2
|
|
|
$
|
210
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
||||||||
Total Impaired Loans and Finance Leases
|
|
|
|
|
|
|
|
|
|
|
|
||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
||||
North America
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
66
|
|
|
$
|
1
|
|
Europe
|
73
|
|
|
—
|
|
|
72
|
|
|
1
|
|
||||
Asia Pacific
|
21
|
|
|
—
|
|
|
18
|
|
|
—
|
|
||||
Mining
|
96
|
|
|
2
|
|
|
9
|
|
|
1
|
|
||||
Latin America
|
67
|
|
|
1
|
|
|
43
|
|
|
1
|
|
||||
Caterpillar Power Finance
|
436
|
|
|
2
|
|
|
325
|
|
|
—
|
|
||||
Total
|
$
|
730
|
|
|
$
|
5
|
|
|
$
|
533
|
|
|
$
|
4
|
|
|
|
Nine Months Ended
September 30, 2013 |
|
Nine Months Ended
September 30, 2012 |
||||||||||||
(Millions of dollars)
|
Average Recorded
Investment
|
|
Interest Income
Recognized
|
|
Average Recorded
Investment
|
|
Interest Income
Recognized
|
||||||||
Impaired Loans and Finance Leases With No Allowance Recorded
|
|
|
|
|
|
|
|
|
|
|
|
||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
||||
North America
|
$
|
26
|
|
|
$
|
3
|
|
|
$
|
56
|
|
|
$
|
2
|
|
Europe
|
48
|
|
|
—
|
|
|
45
|
|
|
—
|
|
||||
Asia Pacific
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||
Mining
|
40
|
|
|
2
|
|
|
8
|
|
|
1
|
|
||||
Latin America
|
11
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||
Caterpillar Power Finance
|
285
|
|
|
2
|
|
|
204
|
|
|
2
|
|
||||
Total
|
$
|
414
|
|
|
$
|
7
|
|
|
$
|
323
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
||||||||
Impaired Loans and Finance Leases With An Allowance Recorded
|
|
|
|
|
|
|
|
|
|
|
|
||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
||||
North America
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
25
|
|
|
$
|
—
|
|
Europe
|
23
|
|
|
1
|
|
|
26
|
|
|
1
|
|
||||
Asia Pacific
|
18
|
|
|
1
|
|
|
13
|
|
|
1
|
|
||||
Mining
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Latin America
|
44
|
|
|
2
|
|
|
26
|
|
|
1
|
|
||||
Caterpillar Power Finance
|
143
|
|
|
1
|
|
|
87
|
|
|
—
|
|
||||
Total
|
$
|
247
|
|
|
$
|
5
|
|
|
$
|
177
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
||||||||
Total Impaired Loans and Finance Leases
|
|
|
|
|
|
|
|
|
|
|
|
||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
||||
North America
|
$
|
44
|
|
|
$
|
3
|
|
|
$
|
81
|
|
|
$
|
2
|
|
Europe
|
71
|
|
|
1
|
|
|
71
|
|
|
1
|
|
||||
Asia Pacific
|
22
|
|
|
1
|
|
|
17
|
|
|
1
|
|
||||
Mining
|
41
|
|
|
2
|
|
|
8
|
|
|
1
|
|
||||
Latin America
|
55
|
|
|
2
|
|
|
32
|
|
|
1
|
|
||||
Caterpillar Power Finance
|
428
|
|
|
3
|
|
|
291
|
|
|
2
|
|
||||
Total
|
$
|
661
|
|
|
$
|
12
|
|
|
$
|
500
|
|
|
$
|
8
|
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
|
|
|
||||
|
September 30, 2013
|
|
December 31, 2012
|
||||
Customer
|
|
|
|
|
|
||
North America
|
$
|
39
|
|
|
$
|
59
|
|
Europe
|
41
|
|
|
38
|
|
||
Asia Pacific
|
51
|
|
|
36
|
|
||
Mining
|
31
|
|
|
12
|
|
||
Latin America
|
194
|
|
|
148
|
|
||
Caterpillar Power Finance
|
141
|
|
|
220
|
|
||
Total
|
$
|
497
|
|
|
$
|
513
|
|
|
|
|
|
(Millions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
September 30, 2013
|
||||||||||||||||||||||||||
|
31-60
Days
Past Due
|
|
61-90
Days
Past Due
|
|
91+
Days
Past Due
|
|
Total Past
Due
|
|
Current
|
|
Total
Finance
Receivables
|
|
91+ Still
Accruing
|
||||||||||||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
North America
|
$
|
33
|
|
|
$
|
9
|
|
|
$
|
29
|
|
|
$
|
71
|
|
|
$
|
6,256
|
|
|
$
|
6,327
|
|
|
$
|
—
|
|
Europe
|
32
|
|
|
16
|
|
|
36
|
|
|
84
|
|
|
2,682
|
|
|
2,766
|
|
|
8
|
|
|||||||
Asia Pacific
|
65
|
|
|
42
|
|
|
60
|
|
|
167
|
|
|
2,826
|
|
|
2,993
|
|
|
16
|
|
|||||||
Mining
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|
2,281
|
|
|
2,293
|
|
|
—
|
|
|||||||
Latin America
|
63
|
|
|
34
|
|
|
189
|
|
|
286
|
|
|
2,491
|
|
|
2,777
|
|
|
5
|
|
|||||||
Caterpillar Power Finance
|
7
|
|
|
18
|
|
|
69
|
|
|
94
|
|
|
3,025
|
|
|
3,119
|
|
|
1
|
|
|||||||
Dealer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
North America
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,349
|
|
|
2,349
|
|
|
—
|
|
|||||||
Europe
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
176
|
|
|
176
|
|
|
—
|
|
|||||||
Asia Pacific
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
565
|
|
|
565
|
|
|
—
|
|
|||||||
Mining
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|||||||
Latin America
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
778
|
|
|
779
|
|
|
1
|
|
|||||||
Total
|
$
|
200
|
|
|
$
|
119
|
|
|
$
|
396
|
|
|
$
|
715
|
|
|
$
|
23,430
|
|
|
$
|
24,145
|
|
|
$
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
December 31, 2012
|
||||||||||||||||||||||||||
|
31-60
Days
Past Due
|
|
61-90
Days
Past Due
|
|
91+
Days
Past Due
|
|
Total Past
Due
|
|
Current
|
|
Total
Finance
Receivables
|
|
91+ Still
Accruing
|
||||||||||||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
North America
|
$
|
35
|
|
|
$
|
8
|
|
|
$
|
52
|
|
|
$
|
95
|
|
|
$
|
5,872
|
|
|
$
|
5,967
|
|
|
$
|
—
|
|
Europe
|
23
|
|
|
9
|
|
|
36
|
|
|
68
|
|
|
2,487
|
|
|
2,555
|
|
|
6
|
|
|||||||
Asia Pacific
|
53
|
|
|
19
|
|
|
54
|
|
|
126
|
|
|
2,912
|
|
|
3,038
|
|
|
18
|
|
|||||||
Mining
|
—
|
|
|
1
|
|
|
12
|
|
|
13
|
|
|
1,960
|
|
|
1,973
|
|
|
—
|
|
|||||||
Latin America
|
62
|
|
|
19
|
|
|
138
|
|
|
219
|
|
|
2,500
|
|
|
2,719
|
|
|
—
|
|
|||||||
Caterpillar Power Finance
|
15
|
|
|
14
|
|
|
126
|
|
|
155
|
|
|
3,017
|
|
|
3,172
|
|
|
4
|
|
|||||||
Dealer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
North America
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,063
|
|
|
2,063
|
|
|
—
|
|
|||||||
Europe
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
185
|
|
|
185
|
|
|
—
|
|
|||||||
Asia Pacific
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
751
|
|
|
751
|
|
|
—
|
|
|||||||
Mining
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|||||||
Latin America
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
884
|
|
|
884
|
|
|
—
|
|
|||||||
Total
|
$
|
188
|
|
|
$
|
70
|
|
|
$
|
418
|
|
|
$
|
676
|
|
|
$
|
22,632
|
|
|
$
|
23,308
|
|
|
$
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
|
|
|
|
|
||||||
|
September 30, 2013
|
||||||||||
Allowance for Credit Losses:
|
Customer
|
|
Dealer
|
|
Total
|
||||||
Balance at beginning of year
|
$
|
414
|
|
|
$
|
9
|
|
|
$
|
423
|
|
Receivables written off
|
(133
|
)
|
|
—
|
|
|
(133
|
)
|
|||
Recoveries on receivables previously written off
|
38
|
|
|
—
|
|
|
38
|
|
|||
Provision for credit losses
|
76
|
|
|
2
|
|
|
78
|
|
|||
Other
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||
Balance at end of period
|
$
|
390
|
|
|
$
|
11
|
|
|
$
|
401
|
|
|
|
|
|
|
|
|
|
|
|||
Individually evaluated for impairment
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
60
|
|
Collectively evaluated for impairment
|
330
|
|
|
11
|
|
|
341
|
|
|||
Ending Balance
|
$
|
390
|
|
|
$
|
11
|
|
|
$
|
401
|
|
|
|
|
|
|
|
||||||
Recorded Investment in Finance Receivables:
|
|
|
|
|
|
|
|
|
|||
Individually evaluated for impairment
|
$
|
736
|
|
|
$
|
—
|
|
|
$
|
736
|
|
Collectively evaluated for impairment
|
19,539
|
|
|
3,870
|
|
|
23,409
|
|
|||
Ending Balance
|
$
|
20,275
|
|
|
$
|
3,870
|
|
|
$
|
24,145
|
|
|
|
|
|
|
|
(Millions of dollars)
|
|
|
|
|
|
||||||
|
December 31, 2012
|
||||||||||
Allowance for Credit Losses:
|
Customer
|
|
Dealer
|
|
Total
|
||||||
Balance at beginning of year
|
$
|
360
|
|
|
$
|
6
|
|
|
$
|
366
|
|
Receivables written off
|
(149
|
)
|
|
—
|
|
|
(149
|
)
|
|||
Recoveries on receivables previously written off
|
47
|
|
|
—
|
|
|
47
|
|
|||
Provision for credit losses
|
157
|
|
|
3
|
|
|
160
|
|
|||
Other
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Balance at end of year
|
$
|
414
|
|
|
$
|
9
|
|
|
$
|
423
|
|
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
$
|
54
|
|
|
$
|
—
|
|
|
$
|
54
|
|
Collectively evaluated for impairment
|
360
|
|
|
9
|
|
|
369
|
|
|||
Ending Balance
|
$
|
414
|
|
|
$
|
9
|
|
|
$
|
423
|
|
|
|
|
|
|
|
||||||
Recorded Investment in Finance Receivables:
|
|
|
|
|
|
|
|
|
|||
Individually evaluated for impairment
|
$
|
593
|
|
|
$
|
—
|
|
|
$
|
593
|
|
Collectively evaluated for impairment
|
18,831
|
|
|
3,884
|
|
|
22,715
|
|
|||
Ending Balance
|
$
|
19,424
|
|
|
$
|
3,884
|
|
|
$
|
23,308
|
|
|
|
|
|
|
|
(Millions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
September 30, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
|
Customer
|
|
Dealer
|
|
Total
|
|
Customer
|
|
Dealer
|
|
Total
|
||||||||||||
Performing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
6,288
|
|
|
$
|
2,349
|
|
|
$
|
8,637
|
|
|
$
|
5,908
|
|
|
$
|
2,063
|
|
|
$
|
7,971
|
|
Europe
|
2,725
|
|
|
176
|
|
|
2,901
|
|
|
2,517
|
|
|
185
|
|
|
2,702
|
|
||||||
Asia Pacific
|
2,942
|
|
|
565
|
|
|
3,507
|
|
|
3,002
|
|
|
751
|
|
|
3,753
|
|
||||||
Mining
|
2,262
|
|
|
1
|
|
|
2,263
|
|
|
1,961
|
|
|
1
|
|
|
1,962
|
|
||||||
Latin America
|
2,583
|
|
|
779
|
|
|
3,362
|
|
|
2,571
|
|
|
884
|
|
|
3,455
|
|
||||||
Caterpillar Power Finance
|
2,978
|
|
|
—
|
|
|
2,978
|
|
|
2,952
|
|
|
—
|
|
|
2,952
|
|
||||||
Total Performing
|
$
|
19,778
|
|
|
$
|
3,870
|
|
|
$
|
23,648
|
|
|
$
|
18,911
|
|
|
$
|
3,884
|
|
|
$
|
22,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-Performing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
59
|
|
Europe
|
41
|
|
|
—
|
|
|
41
|
|
|
38
|
|
|
—
|
|
|
38
|
|
||||||
Asia Pacific
|
51
|
|
|
—
|
|
|
51
|
|
|
36
|
|
|
—
|
|
|
36
|
|
||||||
Mining
|
31
|
|
|
—
|
|
|
31
|
|
|
12
|
|
|
—
|
|
|
12
|
|
||||||
Latin America
|
194
|
|
|
—
|
|
|
194
|
|
|
148
|
|
|
—
|
|
|
148
|
|
||||||
Caterpillar Power Finance
|
141
|
|
|
—
|
|
|
141
|
|
|
220
|
|
|
—
|
|
|
220
|
|
||||||
Total Non-Performing
|
$
|
497
|
|
|
$
|
—
|
|
|
$
|
497
|
|
|
$
|
513
|
|
|
$
|
—
|
|
|
$
|
513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Performing & Non-Performing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
6,327
|
|
|
$
|
2,349
|
|
|
$
|
8,676
|
|
|
$
|
5,967
|
|
|
$
|
2,063
|
|
|
$
|
8,030
|
|
Europe
|
2,766
|
|
|
176
|
|
|
2,942
|
|
|
2,555
|
|
|
185
|
|
|
2,740
|
|
||||||
Asia Pacific
|
2,993
|
|
|
565
|
|
|
3,558
|
|
|
3,038
|
|
|
751
|
|
|
3,789
|
|
||||||
Mining
|
2,293
|
|
|
1
|
|
|
2,294
|
|
|
1,973
|
|
|
1
|
|
|
1,974
|
|
||||||
Latin America
|
2,777
|
|
|
779
|
|
|
3,556
|
|
|
2,719
|
|
|
884
|
|
|
3,603
|
|
||||||
Caterpillar Power Finance
|
3,119
|
|
|
—
|
|
|
3,119
|
|
|
3,172
|
|
|
—
|
|
|
3,172
|
|
||||||
Total
|
$
|
20,275
|
|
|
$
|
3,870
|
|
|
$
|
24,145
|
|
|
$
|
19,424
|
|
|
$
|
3,884
|
|
|
$
|
23,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended September 30, 2013
|
|
Three Months Ended September 30, 2012
|
||||||||||||||||||
|
|
Number
of
Contracts
|
|
Pre-TDR
Outstanding
Recorded
Investment
|
|
Post-TDR
Outstanding
Recorded
Investment
|
|
Number
of
Contracts
|
|
Pre-TDR
Outstanding
Recorded
Investment
|
|
Post-TDR
Outstanding
Recorded
Investment
|
||||||||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
North America
|
|
14
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
17
|
|
|
$
|
4
|
|
|
$
|
4
|
|
Europe
|
|
7
|
|
|
5
|
|
|
5
|
|
|
14
|
|
|
1
|
|
|
1
|
|
||||
Asia Pacific
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
3
|
|
|
3
|
|
||||
Mining
|
|
45
|
|
|
123
|
|
|
123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Latin America
|
|
10
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Caterpillar Power Finance
1
|
|
6
|
|
|
65
|
|
|
67
|
|
|
15
|
|
|
151
|
|
|
151
|
|
||||
Total
2
|
|
82
|
|
|
$
|
195
|
|
|
$
|
196
|
|
|
58
|
|
|
$
|
159
|
|
|
$
|
159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2013
|
|
Nine Months Ended September 30, 2012
|
||||||||||||||||||
|
|
Number
of
Contracts
|
|
Pre-TDR
Outstanding
Recorded
Investment
|
|
Post-TDR
Outstanding
Recorded
Investment
|
|
Number
of
Contracts
|
|
Pre-TDR
Outstanding
Recorded
Investment
|
|
Post-TDR
Outstanding
Recorded
Investment
|
||||||||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
North America
|
|
46
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
58
|
|
|
$
|
8
|
|
|
$
|
8
|
|
Europe
|
|
15
|
|
|
6
|
|
|
6
|
|
|
21
|
|
|
8
|
|
|
8
|
|
||||
Asia Pacific
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
3
|
|
|
3
|
|
||||
Mining
|
|
45
|
|
|
123
|
|
|
123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Latin America
|
|
16
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Caterpillar Power Finance
1
|
|
10
|
|
|
101
|
|
|
104
|
|
|
20
|
|
|
183
|
|
|
183
|
|
||||
Total
2
|
|
132
|
|
|
$
|
237
|
|
|
$
|
240
|
|
|
111
|
|
|
$
|
202
|
|
|
$
|
202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
During the
three and nine
months ended
September 30, 2013
,
$13 million
and
$25 million
, respectively, of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. The
$13 million
and
$25 million
of additional funds are not reflected in the table above as no incremental modifications have been made with the borrower during the period presented. At
September 30, 2013
, remaining commitments to lend additional funds to a borrower whose terms have been modified in a TDR were
$4 million
.
|
2
|
Modifications include extended contract maturities, inclusion of interest only periods, below market interest rates, and extended skip payment periods.
|
|
(Dollars in millions)
|
Three Months Ended September 30, 2013
|
|
Three Months Ended September 30, 2012
|
||||||||||
|
Number of
Contracts
|
|
Post-TDR
Recorded
Investment
|
|
Number of
Contracts
|
|
Post-TDR
Recorded
Investment
|
||||||
Customer
|
|
|
|
|
|
|
|
|
|
||||
North America
|
5
|
|
|
$
|
1
|
|
|
8
|
|
|
$
|
1
|
|
Europe
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Asia Pacific
|
—
|
|
|
—
|
|
|
2
|
|
|
1
|
|
||
Total
|
10
|
|
|
$
|
1
|
|
|
10
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2013
|
|
Nine Months Ended September 30, 2012
|
||||||||||
|
Number of
Contracts
|
|
Post-TDR
Recorded
Investment
|
|
Number of
Contracts
|
|
Post-TDR
Recorded
Investment
|
||||||
Customer
|
|
|
|
|
|
|
|
|
|
||||
North America
|
18
|
|
|
$
|
4
|
|
|
39
|
|
|
$
|
3
|
|
Europe
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Asia Pacific
|
—
|
|
|
—
|
|
|
2
|
|
|
1
|
|
||
Caterpillar Power Finance
|
2
|
|
|
3
|
|
|
16
|
|
|
21
|
|
||
Total
|
25
|
|
|
$
|
7
|
|
|
57
|
|
|
$
|
25
|
|
|
|
|
|
|
|
|
|
•
|
Level 1
–
Quoted prices for identical instruments in active markets.
|
•
|
Level 2
– Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets.
|
•
|
Level 3
– Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable.
|
(Millions of dollars)
|
September 30, 2013
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Assets / Liabilities,
at Fair Value
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Government debt
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. treasury bonds
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11
|
|
Other U.S. and non-U.S. government bonds
|
—
|
|
|
126
|
|
|
—
|
|
|
126
|
|
||||
Corporate bonds
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate bonds
|
—
|
|
|
672
|
|
|
—
|
|
|
672
|
|
||||
Asset-backed securities
|
—
|
|
|
75
|
|
|
—
|
|
|
75
|
|
||||
Mortgage-backed debt securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. governmental agency
|
—
|
|
|
337
|
|
|
—
|
|
|
337
|
|
||||
Residential
|
—
|
|
|
21
|
|
|
—
|
|
|
21
|
|
||||
Commercial
|
—
|
|
|
93
|
|
|
—
|
|
|
93
|
|
||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Large capitalization value
|
231
|
|
|
—
|
|
|
—
|
|
|
231
|
|
||||
Smaller company growth
|
45
|
|
|
—
|
|
|
—
|
|
|
45
|
|
||||
Total available-for-sale securities
|
287
|
|
|
1,324
|
|
|
—
|
|
|
1,611
|
|
||||
Derivative financial instruments, net
|
—
|
|
|
186
|
|
|
—
|
|
|
186
|
|
||||
Total Assets
|
$
|
287
|
|
|
$
|
1,510
|
|
|
$
|
—
|
|
|
$
|
1,797
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Guarantees
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
15
|
|
Total Liabilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
15
|
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
December 31, 2012
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Assets / Liabilities,
at Fair Value
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Government debt
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. treasury bonds
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10
|
|
Other U.S. and non-U.S. government bonds
|
—
|
|
|
146
|
|
|
—
|
|
|
146
|
|
||||
Corporate bonds
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate bonds
|
—
|
|
|
664
|
|
|
—
|
|
|
664
|
|
||||
Asset-backed securities
|
—
|
|
|
96
|
|
|
—
|
|
|
96
|
|
||||
Mortgage-backed debt securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. governmental agency
|
—
|
|
|
299
|
|
|
—
|
|
|
299
|
|
||||
Residential
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
||||
Commercial
|
—
|
|
|
127
|
|
|
—
|
|
|
127
|
|
||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Large capitalization value
|
185
|
|
|
—
|
|
|
—
|
|
|
185
|
|
||||
Smaller company growth
|
34
|
|
|
—
|
|
|
—
|
|
|
34
|
|
||||
Total available-for-sale securities
|
229
|
|
|
1,357
|
|
|
—
|
|
|
1,586
|
|
||||
Derivative financial instruments, net
|
—
|
|
|
154
|
|
|
—
|
|
|
154
|
|
||||
Total Assets
|
$
|
229
|
|
|
$
|
1,511
|
|
|
$
|
—
|
|
|
$
|
1,740
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Guarantees
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
14
|
|
Total Liabilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
14
|
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
|
Guarantees
|
||
Balance at December 31, 2012
|
|
$
|
14
|
|
Issuance of guarantees
|
|
6
|
|
|
Expiration of guarantees
|
|
(5
|
)
|
|
Balance at September 30, 2013
|
|
$
|
15
|
|
|
|
|
||
Balance at December 31, 2011
|
|
$
|
7
|
|
Acquisitions
|
|
6
|
|
|
Issuance of guarantees
|
|
7
|
|
|
Expiration of guarantees
|
|
(3
|
)
|
|
Balance at September 30, 2012
|
|
$
|
17
|
|
|
|
|
Fair Value of Financial Instruments
|
||||||||||||||||||||
|
|
September 30, 2013
|
|
December 31, 2012
|
|
|
|
|
||||||||||||
(Millions of dollars)
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Fair Value Levels
|
|
Reference
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and short-term investments
|
|
$
|
6,357
|
|
|
$
|
6,357
|
|
|
$
|
5,490
|
|
|
$
|
5,490
|
|
|
1
|
|
|
Restricted cash and short-term investments
|
|
50
|
|
|
50
|
|
|
53
|
|
|
53
|
|
|
1
|
|
|
||||
Available-for-sale securities
|
|
1,611
|
|
|
1,611
|
|
|
1,586
|
|
|
1,586
|
|
|
1 & 2
|
|
Note 8
|
||||
Finance receivables – net (excluding finance leases
1
)
|
|
16,077
|
|
|
15,952
|
|
|
15,404
|
|
|
15,359
|
|
|
2
|
|
Note 16
|
||||
Wholesale inventory receivables – net (excluding finance leases
1
)
|
|
1,616
|
|
|
1,542
|
|
|
1,674
|
|
|
1,609
|
|
|
2
|
|
Note 16
|
||||
Foreign currency contracts – net
|
|
51
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
2
|
|
Note 4
|
||||
Interest rate swaps – net
|
|
136
|
|
|
136
|
|
|
219
|
|
|
219
|
|
|
2
|
|
Note 4
|
||||
Commodity contracts – net
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
Note 4
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Short-term borrowings
|
|
5,847
|
|
|
5,847
|
|
|
5,287
|
|
|
5,287
|
|
|
1
|
|
|
||||
Long-term debt (including amounts due within one year)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Machinery and Power Systems
|
|
9,061
|
|
|
10,337
|
|
|
9,779
|
|
|
11,969
|
|
|
2
|
|
|
||||
Financial Products
|
|
24,629
|
|
|
25,239
|
|
|
25,077
|
|
|
26,063
|
|
|
2
|
|
|
||||
Foreign currency contracts – net
|
|
—
|
|
|
—
|
|
|
66
|
|
|
66
|
|
|
2
|
|
Note 4
|
||||
Commodity contracts – net
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
Note 4
|
||||
Guarantees
|
|
15
|
|
|
15
|
|
|
14
|
|
|
14
|
|
|
3
|
|
Note 10
|
1
|
Total excluded items have a net carrying value at
September 30, 2013
and
December 31, 2012
of
$8,132 million
and
$7,959 million
, respectively.
|
|
|
|
|
|
19.
|
Acquisitions
|
(Millions of dollars)
|
September 30,
2013 |
|
December 31,
2012 |
||||
|
|
|
|
||||
Inventories
|
$
|
63
|
|
|
$
|
30
|
|
Current assets
|
$
|
63
|
|
|
$
|
30
|
|
|
|
|
|
||||
Property, plant and equipment – net
|
$
|
3
|
|
|
$
|
—
|
|
Intangible assets
|
101
|
|
|
32
|
|
||
Goodwill
|
64
|
|
|
52
|
|
||
Non-current assets
|
$
|
168
|
|
|
$
|
84
|
|
|
|
|
|
•
|
Nearly 80 percent of the decline in third-quarter sales volume was in
Resource Industries
resulting from changes in dealer inventories and lower deliveries to end users as customers in all geographic regions have reduced capital expenditures across the mining industry. While Resource Industries’ sales are very low, sales in
Power Systems
and
Construction Industries
have been more stable. The diversity of these businesses and the industries we serve, along with the continued strong performance of our
Financial Products segment
has provided a balance to our overall results.
|
•
|
The decline in profit per share of $1.09 from the third quarter of 2012 is primarily a result of the $3 billion drop in sales and revenues and the absence of last year’s gain from the sale of a majority interest in our third-party logistics business.
|
•
|
The impact of lower sales volume in the third quarter of 2013 was partially offset by aggressive cost cutting measures including temporary plant shutdowns, significant workforce reductions, temporary layoffs for thousands of salaried management employees and general austerity measures across the company.
|
•
|
Our inventory continued to decline in the third quarter of 2013, which was positive to operating cash flow but unfavorable to profit. Inventory was about $500 million below the end of the second quarter of 2013 and about $2.2 billion below year-end 2012.
|
•
|
Machinery and Power Systems (M&PS)
operating cash flow was $2.109 billion in the third quarter of 2013, compared with $994 million in the third quarter of 2012. The improvement was the result of favorable changes in working capital, primarily inventory and accounts payable, partially offset by lower profit.
|
•
|
M&PS
debt-to-capital ratio
was 34.1 percent, down from 34.9 percent at the end of the second quarter of 2013.
|
•
|
We repurchased $1 billion of stock in the third quarter of 2013 in addition to the $1 billion repurchased in the second quarter of 2013.
|
•
|
Glossary of terms is included on pages 71-73; first occurrence of terms shown in bold italics.
|
•
|
Information on non-GAAP financial measures is included on page 82.
|
•
|
Reasons for the change:
Sales volume
decreased $2.729 billion with nearly 80 percent of the decline in Resource Industries. More than half of the total volume decrease was related to changes in dealer machine and engine inventories and the remainder was primarily a result of lower dealer deliveries to end users, primarily in Resource Industries. During the third quarter of 2012, dealers increased machine and engine inventories by about $800 million, and during the third quarter of 2013, dealers reduced machine and engine inventories by about $800 million. Most of the change in both periods was in Resource Industries related to mining. During the third quarter of 2012, dealers received products that they had previously ordered in anticipation of higher demand. During the third quarter of 2013, most of the decline was related to dealers adjusting inventory levels in response to lower end-user demand resulting primarily from mining companies reducing their capital expenditures. We expect another substantial decline in dealer inventories in the fourth quarter.
|
•
|
Sales by geographic region: While sales declined in all geographic regions, the most significant reduction was in Asia/Pacific. The Asia/Pacific decline was primarily related to lower sales in Australia where the most significant decrease was in mining sales, due to continued low demand. While sales in Asia/Pacific declined overall, sales in China increased as we focused on improving our competitive position through building out the Caterpillar business model, the key elements of which focus on increasing field population, improving customer loyalty and providing superior customer support in conjunction with our independent dealers. Our total company sales and revenues in China were about $800 million in the third quarter 2013 as compared with about $600 million in the third quarter of 2012. This represents an increase of about 30 percent from the third quarter of 2012 and was primarily related to sales in Construction Industries. Sales and revenues in China represented about 6 percent of total company sales and revenues in the third quarter of 2013. The declines in North America and
EAME
were primarily due to unfavorable changes in dealer inventories.
|
•
|
Sales by segment: Sales decreased in all segments. The most significant was a 42-percent decline in Resource Industries resulting primarily from changes in dealer inventories and weaker demand in mining primarily due to mining companies reducing their capital expenditures. Power Systems’ sales and Construction Industries’ sales both decreased 7 percent. Financial Products segment revenues were up 4 percent.
|
•
|
Interest expense excluding Financial Products
decreased $13 million compared with the third quarter of 2012.
|
•
|
Other income/expense
was expense of
$24 million compared with expense of $17 million in the third quarter of 2012. Both periods include unfavorable impacts from currency translation and hedging.
|
•
|
The provision for income taxes
in the third quarter of 2013 reflects an estimated annual effective tax rate of 29 percent compared with 30.5 percent for 2012, excluding the items discussed below. The decrease is primarily due to the U.S. research and development tax credit that was expired in 2012, along with expected changes in our geographic mix of profits from a tax perspective.
|
Sales and Revenues by Geographic Region
|
(Millions of dollars)
|
Total
|
|
%
Change
|
|
North
America
|
|
%
Change
|
|
Latin
America
|
|
%
Change
|
|
EAME
|
|
%
Change
|
|
Asia/
Pacific
|
|
%
Change
|
|||||||||||||||
Third Quarter 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction Industries
1
|
$
|
4,547
|
|
|
(7
|
)%
|
|
$
|
1,743
|
|
|
(9
|
)%
|
|
$
|
707
|
|
|
12
|
%
|
|
$
|
989
|
|
|
(17
|
)%
|
|
$
|
1,108
|
|
|
(6
|
)%
|
Resource Industries
2
|
3,004
|
|
|
(42
|
)%
|
|
1,028
|
|
|
(28
|
)%
|
|
585
|
|
|
(42
|
)%
|
|
713
|
|
|
(24
|
)%
|
|
678
|
|
|
(63
|
)%
|
|||||
Power Systems
3
|
4,922
|
|
|
(7
|
)%
|
|
1,905
|
|
|
(12
|
)%
|
|
608
|
|
|
12
|
%
|
|
1,450
|
|
|
(7
|
)%
|
|
959
|
|
|
(7
|
)%
|
|||||
All Other Segment
4
|
219
|
|
|
(31
|
)%
|
|
148
|
|
|
(19
|
)%
|
|
13
|
|
|
18
|
%
|
|
35
|
|
|
(49
|
)%
|
|
23
|
|
|
(60
|
)%
|
|||||
Corporate Items and Eliminations
|
(14
|
)
|
|
—
|
|
|
(13
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(1
|
)
|
|
|
|||||||||
Machinery & Power Systems Sales
|
12,678
|
|
|
(19
|
)%
|
|
4,811
|
|
|
(15
|
)%
|
|
1,913
|
|
|
(12
|
)%
|
|
3,187
|
|
|
(15
|
)%
|
|
2,767
|
|
|
(33
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Financial Products Segment
|
807
|
|
|
4
|
%
|
|
431
|
|
|
7
|
%
|
|
105
|
|
|
2
|
%
|
|
127
|
|
|
11
|
%
|
|
144
|
|
|
(8
|
)%
|
|||||
Corporate Items and Eliminations
|
(62
|
)
|
|
|
|
(36
|
)
|
|
|
|
(8
|
)
|
|
|
|
(7
|
)
|
|
|
|
(11
|
)
|
|
|
||||||||||
Financial Products Revenues
|
745
|
|
|
6
|
%
|
|
395
|
|
|
11
|
%
|
|
97
|
|
|
1
|
%
|
|
120
|
|
|
11
|
%
|
|
133
|
|
|
(8
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Consolidated Sales and Revenues
|
$
|
13,423
|
|
|
(18
|
)%
|
|
$
|
5,206
|
|
|
(14
|
)%
|
|
$
|
2,010
|
|
|
(12
|
)%
|
|
$
|
3,307
|
|
|
(14
|
)%
|
|
$
|
2,900
|
|
|
(32
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Third Quarter 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction Industries
1
|
$
|
4,904
|
|
|
|
|
$
|
1,910
|
|
|
|
|
$
|
629
|
|
|
|
|
$
|
1,186
|
|
|
|
|
$
|
1,179
|
|
|
|
|
||||
Resource Industries
2
|
5,214
|
|
|
|
|
1,421
|
|
|
|
|
1,001
|
|
|
|
|
936
|
|
|
|
|
1,856
|
|
|
|
|
|||||||||
Power Systems
3
|
5,317
|
|
|
|
|
2,175
|
|
|
|
|
543
|
|
|
|
|
1,564
|
|
|
|
|
1,035
|
|
|
|
|
|||||||||
All Other Segment
4
|
318
|
|
|
|
|
182
|
|
|
|
|
11
|
|
|
|
|
68
|
|
|
|
|
57
|
|
|
|
|
|||||||||
Corporate Items and Eliminations
|
(14
|
)
|
|
|
|
(14
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
||||||||||
Machinery & Power Systems Sales
|
15,739
|
|
|
|
|
|
5,674
|
|
|
|
|
|
2,184
|
|
|
|
|
|
3,754
|
|
|
|
|
|
4,127
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Financial Products Segment
|
776
|
|
|
|
|
403
|
|
|
|
|
103
|
|
|
|
|
114
|
|
|
|
|
156
|
|
|
|
|
|||||||||
Corporate Items and Eliminations
|
(70
|
)
|
|
|
|
(46
|
)
|
|
|
|
(7
|
)
|
|
|
|
(6
|
)
|
|
|
|
(11
|
)
|
|
|
|
|||||||||
Financial Products Revenues
|
706
|
|
|
|
|
|
357
|
|
|
|
|
|
96
|
|
|
|
|
|
108
|
|
|
|
|
|
145
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Consolidated Sales and Revenues
|
$
|
16,445
|
|
|
|
|
|
$
|
6,031
|
|
|
|
|
|
$
|
2,280
|
|
|
|
|
|
$
|
3,862
|
|
|
|
|
|
$
|
4,272
|
|
|
|
|
1
|
Does not include inter-segment sales of $68 million and $102 million in
third
quarter
2013
and
2012
, respectively.
|
2
|
Does not include inter-segment sales of $208 million and $253 million in
third
quarter
2013
and
2012
, respectively.
|
3
|
Does not include inter-segment sales of $471 million and $597 million in
third
quarter
2013
and
2012
, respectively.
|
4
|
Does not include inter-segment sales of $778 million and $885 million in
third
quarter
2013
and
2012
, respectively.
|
|
Sales and Revenues by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(Millions of dollars)
|
Third Quarter 2012
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Acquisitions/Divestitures
|
|
Other
|
|
Third Quarter 2013
|
|
$
Change
|
|
%
Change
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Construction Industries
|
$
|
4,904
|
|
|
$
|
(119
|
)
|
|
$
|
(84
|
)
|
|
$
|
(154
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,547
|
|
|
$
|
(357
|
)
|
|
(7
|
)%
|
Resource Industries
|
5,214
|
|
|
(2,144
|
)
|
|
(3
|
)
|
|
(29
|
)
|
|
(34
|
)
|
|
—
|
|
|
3,004
|
|
|
(2,210
|
)
|
|
(42
|
)%
|
||||||||
Power Systems
|
5,317
|
|
|
(420
|
)
|
|
30
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
4,922
|
|
|
(395
|
)
|
|
(7
|
)%
|
||||||||
All Other Segment
|
318
|
|
|
(45
|
)
|
|
(1
|
)
|
|
—
|
|
|
(53
|
)
|
|
—
|
|
|
219
|
|
|
(99
|
)
|
|
(31
|
)%
|
||||||||
Corporate Items and Eliminations
|
(14
|
)
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
|
|
||||||||
Machinery & Power Systems Sales
|
15,739
|
|
|
(2,729
|
)
|
|
(57
|
)
|
|
(188
|
)
|
|
(87
|
)
|
|
—
|
|
|
12,678
|
|
|
(3,061
|
)
|
|
(19
|
)%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Financial Products Segment
|
776
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
807
|
|
|
31
|
|
|
4
|
%
|
||||||||
Corporate Items and Eliminations
|
(70
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
(62
|
)
|
|
8
|
|
|
|
|
||||||||
Financial Products Revenues
|
706
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
745
|
|
|
39
|
|
|
6
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Consolidated Sales and Revenues
|
$
|
16,445
|
|
|
$
|
(2,729
|
)
|
|
$
|
(57
|
)
|
|
$
|
(188
|
)
|
|
$
|
(87
|
)
|
|
$
|
39
|
|
|
$
|
13,423
|
|
|
$
|
(3,022
|
)
|
|
(18
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit by Segment
|
|
|
|
|
|
|
|
|||||||
(Millions of dollars)
|
Third Quarter 2013
|
|
Third Quarter 2012
|
|
$
Change
|
|
%
Change
|
|||||||
Construction Industries
|
$
|
262
|
|
|
$
|
459
|
|
|
$
|
(197
|
)
|
|
(43
|
)%
|
Resource Industries
|
409
|
|
|
1,113
|
|
|
(704
|
)
|
|
(63
|
)%
|
|||
Power Systems
|
883
|
|
|
943
|
|
|
(60
|
)
|
|
(6
|
)%
|
|||
All Other Segment
|
170
|
|
|
482
|
|
|
(312
|
)
|
|
(65
|
)%
|
|||
Corporate Items and Eliminations
|
(469
|
)
|
|
(512
|
)
|
|
43
|
|
|
|
|
|||
Machinery & Power Systems
|
1,255
|
|
|
2,485
|
|
|
(1,230
|
)
|
|
(49
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Financial Products Segment
|
218
|
|
|
190
|
|
|
28
|
|
|
15
|
%
|
|||
Corporate Items and Eliminations
|
(8
|
)
|
|
(9
|
)
|
|
1
|
|
|
|
|
|||
Financial Products
|
210
|
|
|
181
|
|
|
29
|
|
|
16
|
%
|
|||
Consolidating Adjustments
|
(64
|
)
|
|
(70
|
)
|
|
6
|
|
|
|
|
|||
Consolidated Operating Profit
|
$
|
1,401
|
|
|
$
|
2,596
|
|
|
$
|
(1,195
|
)
|
|
(46
|
)%
|
|
|
|
|
|
|
|
|
•
|
The unfavorable currency impact was primarily from a weaker Japanese yen, as sales in yen translated into fewer U.S. dollars.
|
•
|
The decline in sales volume was primarily related to changes in dealer inventories which more than offset improvements in deliveries to end users in North America and
Latin America
.
|
•
|
Price realization was unfavorable primarily due to continuing sales from a large government order in Brazil and an increasingly competitive pricing environment.
|
•
|
The increase in Latin America was primarily due to continuing sales from a large government order in Brazil.
|
•
|
In EAME, end-user demand declined as a result of continuing economic weakness in Europe, dealer inventory changes were negative and price realization was unfavorable, due to an increasingly competitive pricing environment.
|
•
|
In North America, end-user demand increased, but was more than offset by the negative impact of dealer inventory changes. The increase in end-user demand resulted primarily from construction-related spending in the United States. Although still below prior peaks, the housing industry has improved and many state and local government budgets are showing signs of improvement which we expect to favorably impact construction spending.
|
•
|
In Asia/Pacific, higher sales in China were more than offset by negative currency impacts primarily from the weaker Japanese yen and lower sales in other countries due to slower economic growth. We believe higher sales in China, particularly with
|
•
|
In North America, the sales decrease was due to declines in end-user demand, primarily in petroleum applications and rail services. For petroleum, lower demand was due to an oversupply of equipment used in drilling and well servicing applications. For rail services, declines in railway coal traffic resulted in lower maintenance and repair needs. In addition, changes in dealer inventories were unfavorable for electric power applications as dealers increased inventories in anticipation of higher demand during the third quarter of 2012, and reduced their inventories during the third quarter of 2013.
|
•
|
In EAME, the sales decrease was primarily due to the impact of dealer inventory changes for electric power applications. During the third quarter of 2012, dealers increased inventories in anticipation of higher demand and reduced their inventories during the third quarter of 2013.
|
•
|
In Asia/Pacific, the decline in sales was due to unfavorable changes in dealer inventories. During the third quarter of 2012, dealers increased inventories in anticipation of higher demand and reduced their inventories during the third quarter of 2013. Those negative impacts were partially offset by higher end-user demand across most applications.
|
•
|
The improvement in Latin America was primarily due to the completion of two large turbine projects.
|
•
|
Reasons for the change: Sales volume decreased $7.945 billion with the most significant decline in Resource Industries. More than half of the total volume decrease was related to changes in dealer machine and engine inventories and the remainder was primarily due to lower dealer deliveries to end users, primarily in Resource Industries. During the nine months ended September 30, 2012, dealers increased machine and engine inventories by about $2.3 billion. During the nine months ended September 30, 2013, dealers reduced their machine and engine inventories by about $2.6 billion. Most of the change in both periods was in Resource Industries related to mining. During the nine months ended September 30, 2012, dealers received products that they had previously ordered in anticipation of higher demand. During the nine months ended September 30, 2013, most of the decline was related to dealers adjusting inventory levels in response to lower end-user demand resulting primarily from mining companies reducing their capital expenditures. We expect another substantial decline in dealer inventories in the fourth quarter.
|
•
|
Sales by geographic region: Sales declined in all geographic regions. The decline in Asia/Pacific was primarily related to lower sales in Australia where the most significant decrease was in mining sales, due to continued low demand. While sales
|
•
|
Sales by segment: Sales decreased in all segments. The most significant decrease was in Resource Industries, with sales down 33 percent primarily from dealer inventory changes and weaker demand in mining. Construction Industries' sales decreased 11 percent, and Power Systems' sales were 8 percent lower. Financial Products' segment revenues were up 5 percent.
|
•
|
Other income/expense
was expense of
$79 million compared with income of $141 million in the nine months ended September 30, 2012. The change was primarily due to the unfavorable impact of currency translation and hedging gains and losses. Translation and hedging losses in the nine months ended September 30, 2013 totaled $230 million, primarily due to translation losses. Most of the impact in the nine months ended September 30, 2013 was a result of our net asset/liability positions and exchange rate movements and hedging primarily for Japanese yen and Brazilian real. In the nine months ended September 30, 2012, we had translation and hedging losses of $46 million.
|
•
|
The provision for income taxes
f
or the first nine months of 2013 reflects an estimated annual effective tax rate of 29 percent compared with 30.5 percent for 2012, excluding the items discussed below. The decrease is primarily due to the U.S. research and development tax credit that was expired in 2012, along with expected changes in our geographic mix of profits from a tax perspective.
|
Sales and Revenues by Geographic Region
|
(Millions of dollars)
|
Total
|
|
%
Change
|
|
North
America
|
|
%
Change
|
|
Latin
America
|
|
%
Change
|
|
EAME
|
|
%
Change
|
|
Asia/
Pacific
|
|
%
Change
|
|||||||||||||||
Nine Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction Industries
1
|
$
|
13,594
|
|
|
(11
|
)%
|
|
$
|
5,257
|
|
|
(7
|
)%
|
|
$
|
2,003
|
|
|
(2
|
)%
|
|
$
|
2,986
|
|
|
(20
|
)%
|
|
$
|
3,348
|
|
|
(13
|
)%
|
Resource Industries
2
|
10,251
|
|
|
(33
|
)%
|
|
3,259
|
|
|
(29
|
)%
|
|
1,974
|
|
|
(23
|
)%
|
|
2,515
|
|
|
(19
|
)%
|
|
2,503
|
|
|
(51
|
)%
|
|||||
Power Systems
3
|
14,590
|
|
|
(8
|
)%
|
|
5,935
|
|
|
(12
|
)%
|
|
1,601
|
|
|
(3
|
)%
|
|
4,038
|
|
|
(9
|
)%
|
|
3,016
|
|
|
—
|
%
|
|||||
All Other Segment
4
|
647
|
|
|
(48
|
)%
|
|
441
|
|
|
(29
|
)%
|
|
27
|
|
|
(45
|
)%
|
|
103
|
|
|
(70
|
)%
|
|
76
|
|
|
(66
|
)%
|
|||||
Corporate Items and Eliminations
|
(34
|
)
|
|
|
|
(38
|
)
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|
||||||||||
Machinery & Power Systems Sales
|
39,048
|
|
|
(18
|
)%
|
|
14,854
|
|
|
(15
|
)%
|
|
5,606
|
|
|
(11
|
)%
|
|
9,644
|
|
|
(17
|
)%
|
|
8,944
|
|
|
(27
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Financial Products Segment
|
2,408
|
|
|
5
|
%
|
|
1,252
|
|
|
3
|
%
|
|
324
|
|
|
8
|
%
|
|
372
|
|
|
9
|
%
|
|
460
|
|
|
2
|
%
|
|||||
Corporate Items and Eliminations
|
(202
|
)
|
|
|
|
(114
|
)
|
|
|
|
(24
|
)
|
|
|
|
(21
|
)
|
|
|
|
(43
|
)
|
|
|
||||||||||
Financial Products Revenues
|
2,206
|
|
|
6
|
%
|
|
1,138
|
|
|
6
|
%
|
|
300
|
|
|
8
|
%
|
|
351
|
|
|
10
|
%
|
|
417
|
|
|
(1
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Consolidated Sales and Revenues
|
$
|
41,254
|
|
|
(17
|
)%
|
|
$
|
15,992
|
|
|
(14
|
)%
|
|
$
|
5,906
|
|
|
(10
|
)%
|
|
$
|
9,995
|
|
|
(16
|
)%
|
|
$
|
9,361
|
|
|
(26
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Nine Months Ended September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction Industries
1
|
$
|
15,306
|
|
|
|
|
$
|
5,656
|
|
|
|
|
$
|
2,050
|
|
|
|
|
$
|
3,751
|
|
|
|
|
$
|
3,849
|
|
|
|
|
||||
Resource Industries
2
|
15,382
|
|
|
|
|
4,570
|
|
|
|
|
2,567
|
|
|
|
|
3,108
|
|
|
|
|
5,137
|
|
|
|
|
|||||||||
Power Systems
3
|
15,815
|
|
|
|
|
6,726
|
|
|
|
|
1,652
|
|
|
|
|
4,415
|
|
|
|
|
3,022
|
|
|
|
|
|||||||||
All Other Segment
4
|
1,246
|
|
|
|
|
624
|
|
|
|
|
49
|
|
|
|
|
347
|
|
|
|
|
226
|
|
|
|
|
|||||||||
Corporate Items and Eliminations
|
(38
|
)
|
|
|
|
(38
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
||||||||||
Machinery & Power Systems Sales
|
47,711
|
|
|
|
|
|
17,538
|
|
|
|
|
|
6,318
|
|
|
|
|
|
11,621
|
|
|
|
|
|
12,234
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Financial Products Segment
|
2,301
|
|
|
|
|
1,210
|
|
|
|
|
300
|
|
|
|
|
341
|
|
|
|
|
450
|
|
|
|
|
|||||||||
Corporate Items and Eliminations
|
(212
|
)
|
|
|
|
(140
|
)
|
|
|
|
(22
|
)
|
|
|
|
(21
|
)
|
|
|
|
(29
|
)
|
|
|
|
|||||||||
Financial Products Revenues
|
2,089
|
|
|
|
|
|
1,070
|
|
|
|
|
|
278
|
|
|
|
|
|
320
|
|
|
|
|
|
421
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Consolidated Sales and Revenues
|
$
|
49,800
|
|
|
|
|
|
$
|
18,608
|
|
|
|
|
|
$
|
6,596
|
|
|
|
|
|
$
|
11,941
|
|
|
|
|
|
$
|
12,655
|
|
|
|
|
1
|
Does not include inter-segment sales of $262 million and $355 million for the
nine
months ended
September 30, 2013
and
2012
, respectively.
|
2
|
Does not include inter-segment sales of $661 million and $909 million for the
nine
months ended
September 30, 2013
and
2012
, respectively.
|
3
|
Does not include inter-segment sales of $1,328 million and $1,952 million for the
nine
months ended
September 30, 2013
and
2012
, respectively.
|
4
|
Does not include inter-segment sales of $2,356 million and $2,719 million for the
nine
months ended
September 30, 2013
and
2012
, respectively.
|
|
Sales and Revenues by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(Millions of dollars)
|
Nine Months Ended Sept. 30, 2012
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Acquisitions/Divestitures
|
|
Other
|
|
Nine Months Ended Sept. 30, 2013
|
|
$
Change
|
|
%
Change
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Construction Industries
|
$
|
15,306
|
|
|
$
|
(1,312
|
)
|
|
$
|
(88
|
)
|
|
$
|
(312
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,594
|
|
|
$
|
(1,712
|
)
|
|
(11
|
)%
|
Resource Industries
|
15,382
|
|
|
(5,087
|
)
|
|
32
|
|
|
(60
|
)
|
|
(16
|
)
|
|
—
|
|
|
10,251
|
|
|
(5,131
|
)
|
|
(33
|
)%
|
||||||||
Power Systems
|
15,815
|
|
|
(1,336
|
)
|
|
136
|
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
14,590
|
|
|
(1,225
|
)
|
|
(8
|
)%
|
||||||||
All Other Segment
|
1,246
|
|
|
(215
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(382
|
)
|
|
—
|
|
|
647
|
|
|
(599
|
)
|
|
(48
|
)%
|
||||||||
Corporate Items and Eliminations
|
(38
|
)
|
|
5
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(34
|
)
|
|
4
|
|
|
|
|
||||||||
Machinery & Power Systems Sales
|
47,711
|
|
|
(7,945
|
)
|
|
79
|
|
|
(399
|
)
|
|
(398
|
)
|
|
—
|
|
|
39,048
|
|
|
(8,663
|
)
|
|
(18
|
)%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Financial Products Segment
|
2,301
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
107
|
|
|
2,408
|
|
|
107
|
|
|
5
|
%
|
||||||||
Corporate Items and Eliminations
|
(212
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
(202
|
)
|
|
10
|
|
|
|
|
||||||||
Financial Products Revenues
|
2,089
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
117
|
|
|
2,206
|
|
|
117
|
|
|
6
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Consolidated Sales and Revenues
|
$
|
49,800
|
|
|
$
|
(7,945
|
)
|
|
$
|
79
|
|
|
$
|
(399
|
)
|
|
$
|
(398
|
)
|
|
$
|
117
|
|
|
$
|
41,254
|
|
|
$
|
(8,546
|
)
|
|
(17
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit by Segment
|
|
|
|
|
|
|
|
|||||||
(Millions of dollars)
|
Nine Months Ended
September 30, 2013 |
|
Nine Months Ended
September 30, 2012 |
|
$
Change
|
|
%
Change
|
|||||||
Construction Industries
|
$
|
863
|
|
|
$
|
1,763
|
|
|
$
|
(900
|
)
|
|
(51
|
)%
|
Resource Industries
|
1,436
|
|
|
3,707
|
|
|
(2,271
|
)
|
|
(61
|
)%
|
|||
Power Systems
|
2,436
|
|
|
2,737
|
|
|
(301
|
)
|
|
(11
|
)%
|
|||
All Other Segment
|
547
|
|
|
888
|
|
|
(341
|
)
|
|
(38
|
)%
|
|||
Corporate Items and Eliminations
|
(1,637
|
)
|
|
(1,907
|
)
|
|
270
|
|
|
|
|
|||
Machinery & Power Systems
|
3,645
|
|
|
7,188
|
|
|
(3,543
|
)
|
|
(49
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Financial Products Segment
|
724
|
|
|
583
|
|
|
141
|
|
|
24
|
%
|
|||
Corporate Items and Eliminations
|
9
|
|
|
(24
|
)
|
|
33
|
|
|
|
|
|||
Financial Products
|
733
|
|
|
559
|
|
|
174
|
|
|
31
|
%
|
|||
Consolidating Adjustments
|
(202
|
)
|
|
(212
|
)
|
|
10
|
|
|
|
|
|||
Consolidated Operating Profit
|
$
|
4,176
|
|
|
$
|
7,535
|
|
|
$
|
(3,359
|
)
|
|
(45
|
)%
|
|
|
|
|
|
|
|
|
1.
|
All Other Segment
- Primarily includes activities such as: the remanufacturing of Cat® engines and components and remanufacturing services for other companies as well as the product management, development, manufacturing, marketing and product support of undercarriage, specialty products, hardened bar stock components and ground engaging tools primarily for Caterpillar products; logistics services; the product management, development, marketing, sales and product support of on-highway vocational trucks for North America; distribution services responsible for dealer development and administration, dealer portfolio management and ensuring the most efficient and effective distribution of machines, engines and parts. On July 31, 2012, we sold a majority interest in Caterpillar’s third party logistics business.
|
2.
|
Consolidating Adjustments
- Eliminations of transactions between Machinery and Power Systems and Financial Products.
|
3.
|
Construction Industries
- A segment primarily responsible for supporting customers using machinery in infrastructure and building construction applications. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing, and sales and product support. The product portfolio includes backhoe loaders, small wheel loaders, small track-type tractors, skid steer loaders, multi-terrain loaders, mini excavators, compact wheel loaders, select work tools, small, medium and large track excavators, wheel excavators, medium wheel loaders, medium track-type tractors, track-type loaders, motor graders and pipe layers. In addition, Construction Industries has responsibility for Power Systems and three wholly-owned dealers in Japan and an integrated manufacturing cost center.
|
4.
|
Currency
- With respect to sales and revenues, currency represents the translation impact on sales resulting from changes in foreign currency exchange rates versus the U.S. dollar. With respect to operating profit, currency represents the net translation impact on sales and operating costs resulting from changes in foreign currency exchange rates versus the U.S. dollar. Currency includes the impact on sales and operating profit for the Machinery and Power Systems lines of business only; currency impacts on Financial Products revenues and operating profit are included in the Financial Products portions of the respective analyses. With respect to other income/expense, currency represents the effects of forward and option contracts entered into by the company to reduce the risk of fluctuations in exchange rates and the net effect of changes in foreign currency exchange rates on our foreign currency assets and liabilities for consolidated results.
|
5.
|
Debt-to-Capital Ratio
- A key measure of Machinery and Power Systems’ financial strength used by both management and our credit rating agencies. The metric is defined as Machinery and Power Systems’ short-term borrowings, long-term debt due within one year and long-term debt due after one year (debt) divided by the sum of Machinery and Power Systems’ debt and stockholders’ equity. Debt also includes Machinery and Power Systems’ borrowings from Financial Products.
|
6.
|
EAME
- A geographic region including Europe, Africa, the Middle East and the Commonwealth of Independent States (CIS).
|
7.
|
Earning Assets
- Assets consisting primarily of total finance receivables net of unearned income, plus equipment on operating leases, less accumulated depreciation at Cat Financial.
|
8.
|
Financial Products Segment
-
Provides financing to customers and dealers for the purchase and lease of Caterpillar and other equipment, as well as some financing for Caterpillar sales to dealers. Financing plans include operating and finance leases, installment sale contracts, working capital loans and wholesale financing plans. The segment also provides various forms of insurance to customers and dealers to help support the purchase and lease of our equipment.
|
9.
|
Latin America
- Geographic region including Central and South American countries and Mexico.
|
10.
|
Machinery and Power Systems (M&PS)
- Represents the aggregate total of Construction Industries, Resource Industries, Power Systems and All Other Segment and related corporate items and eliminations.
|
11.
|
Machinery and Power Systems Other Operating (Income) Expenses
- Comprised primarily of gains/losses on disposal of long-lived assets, long-lived asset impairment charges, pension curtailment charges and employee redundancy costs.
|
12.
|
Manufacturing Costs
- Manufacturing costs exclude the impacts of currency and represent the volume-adjusted change for variable costs and the absolute dollar change for period manufacturing costs. Variable manufacturing costs are defined as having a direct relationship with the volume of production. This includes material costs, direct labor and other costs that vary directly with production volume such as freight, power to operate machines and supplies that are consumed in the manufacturing process. Period manufacturing costs support production but are defined as generally not having a direct relationship to short-term changes in volume. Examples include machinery and equipment repair, depreciation on manufacturing assets, facility support, procurement, factory scheduling, manufacturing planning and operations management.
|
13.
|
Power Systems
- A segment primarily responsible for supporting customers using reciprocating engines, turbines and related parts across industries serving electric power, industrial, petroleum and marine applications as well as rail-related businesses. Responsibilities include business strategy, product design, product management, development, manufacturing, marketing, sales and product support of reciprocating engine powered generator sets, integrated systems used in the electric power generation industry, reciprocating engines and integrated systems and solutions for the marine and petroleum industries; reciprocating engines supplied to the industrial industry as well as Caterpillar machinery; the business strategy, product design, product management, development, manufacturing, marketing, sales and product support of turbines and turbine-related services; the development, manufacturing, remanufacturing, maintenance, leasing, and service of diesel-electric locomotives and components and other rail-related products and services.
|
14.
|
Price Realization
- The impact of net price changes excluding currency and new product introductions. Consolidated price realization includes the impact of changes in the relative weighting of sales between geographic regions.
|
15.
|
Resource Industries
- A segment primarily responsible for supporting customers using machinery in mining and quarrying applications. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support. The product portfolio includes large track-type tractors, large mining trucks, underground mining equipment, electric rope shovels, draglines, hydraulic shovels, drills, highwall miners, tunnel boring equipment, large wheel loaders, off-highway trucks, articulated trucks, wheel tractor scrapers, wheel dozers, select work tools, forestry products, paving products, industrial and waste products, machinery components and electronics and control systems. Resource Industries also manages areas that provide services to other parts of the company, including integrated manufacturing and research and development. In addition, segment profit includes the impact from divestiture of portions of the Bucyrus distribution business and the acquisition of Siwei.
|
16.
|
Sales Volume
- With respect to sales and revenues, sales volume represents the impact of changes in the quantities sold for Machinery and Power Systems as well as the incremental revenue impact of new product introductions, including emissions-related product updates. With respect to operating profit, sales volume represents the impact of changes in the quantities sold for Machinery and Power Systems combined with product mix as well as the net operating profit impact of new product introductions, including emissions-related product updates. Product mix represents the net operating profit impact of changes in the relative weighting of Machinery and Power Systems sales with respect to total sales.
|
17.
|
Siwei
- ERA Mining Machinery Limited, including its wholly-owned subsidiary Zhengzhou Siwei Mechanical & Electrical Manufacturing Co., Ltd., commonly known as Siwei, which was acquired during the second quarter of 2012. Siwei primarily designs, manufactures, sells and supports underground coal mining equipment in China and is included in our Resource Industries segment.
|
•
|
In September 2013, we renewed the 364-day facility. The 364-day facility of $3.00 billion (of which $0.82 billion is available to Machinery and Power Systems) now expires in September 2014.
|
•
|
In September 2013, we amended and extended the 2010 four-year facility. The 2010 four-year facility, as amended, of $2.60 billion (of which $0.72 billion is available to Machinery and Power Systems) now expires in September 2016.
|
•
|
In September 2013, we amended and extended the 2011 five-year facility. The 2011 five-year facility, as amended, of $4.40 billion (of which $1.21 billion is available to Machinery and Power Systems) now expires in September 2018.
|
|
September 30, 2013
|
||||||||||
(Millions of dollars)
|
Consolidated
|
|
Machinery
and Power
Systems
|
|
Financial
Products
|
||||||
Credit lines available:
|
|
|
|
|
|
|
|
|
|||
Global credit facilities
|
$
|
10,000
|
|
|
$
|
2,750
|
|
|
$
|
7,250
|
|
Other external
|
5,031
|
|
|
508
|
|
|
4,523
|
|
|||
Total credit lines available
|
15,031
|
|
|
3,258
|
|
|
11,773
|
|
|||
Less: Commercial paper outstanding
|
(4,249
|
)
|
|
—
|
|
|
(4,249
|
)
|
|||
Less: Utilized credit
|
(2,310
|
)
|
|
(290
|
)
|
|
(2,020
|
)
|
|||
Available credit
|
$
|
8,472
|
|
|
$
|
2,968
|
|
|
$
|
5,504
|
|
|
|
|
|
|
|
•
|
Volatility is a measure of the amount by which the stock price is expected to fluctuate each year during the expected term of the award and is based on historical Caterpillar stock price movement and current implied volatilities from traded options on Caterpillar stock. The implied volatilities from traded options are impacted by changes in market conditions. An increase in the volatility would result in an increase in our expense.
|
•
|
The expected term represents the period of time that awards granted are expected to be outstanding and is an output of the lattice-based option-pricing model. In determining the expected term of the award, future exercise and forfeiture patterns are estimated from Caterpillar employee historical exercise behavior. These patterns are also affected by the vesting conditions of the award. Changes in the future exercise behavior of employees or in the vesting period of the award could result in a change in the expected term. An increase in the expected term would result in an increase to our expense.
|
•
|
The weighted-average dividend yield is based on Caterpillar’s historical dividend yields. As holders of stock-based awards do not receive dividend payments, this could result in employees retaining the award for a longer period of time
|
•
|
The risk-free interest rate is based on the U.S. Treasury yield curve in effect at time of grant. As the risk-free interest rate increases, the expected term increases, resulting in an increase in our expense.
|
•
|
The U.S. expected long-term rate of return on plan assets is based on our estimate of long-term passive returns for equities and fixed income securities weighted by the allocation of our plan assets. Based on historical performance, we increase the passive returns due to our active management of the plan assets. A similar process is used to determine the rate for our non-U.S. pension plans. This rate is impacted by changes in general market conditions, but because it represents a long-term rate, it is not significantly impacted by short-term market swings. Changes in our allocation of plan assets would also impact this rate. For example, a shift to more fixed income securities would lower the rate. A decrease in the rate would increase our expense.
|
•
|
The assumed discount rate is used to discount future benefit obligations back to today’s dollars. The U.S. discount rate is based on a benefit cash flow-matching approach and represents the rate at which our benefit obligations could effectively be settled as of our measurement date, December 31. The benefit cash flow-matching approach involves analyzing Caterpillar’s projected cash flows against a high quality bond yield curve, calculated using a wide population of corporate Aa bonds available on the measurement date. The very highest and lowest yielding bonds (top and bottom 10 percent) are excluded from the analysis. A similar approach is used to determine the assumed discount rate for our most significant non-U.S. plans. This rate is sensitive to changes in interest rates. A decrease in the discount rate would increase our obligation and future expense.
|
•
|
The expected rate of compensation increase is used to develop benefit obligations using projected pay at retirement. It represents average long-term salary increases. This rate is influenced by our long-term compensation policies. An increase in the rate would increase our obligation and expense.
|
•
|
The assumed health care trend rate represents the rate at which health care costs are assumed to increase and is based on historical and expected experience. Changes in our projections of future health care costs due to general economic conditions and those specific to health care (e.g., technology driven cost changes) will impact this trend rate. An increase in the trend rate would increase our obligation and expense.
|
|
|
|
Supplemental Consolidating Data
|
|
|||||||||||||
|
Consolidated
|
|
Machinery
and Power
Systems
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
|||||||||
Sales and revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales of Machinery and Power Systems
|
$
|
12,678
|
|
|
$
|
12,678
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Revenues of Financial Products
|
745
|
|
|
—
|
|
|
825
|
|
|
(80
|
)
|
2
|
|
||||
Total sales and revenues
|
13,423
|
|
|
12,678
|
|
|
825
|
|
|
(80
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Operating costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of goods sold
|
9,774
|
|
|
9,774
|
|
|
—
|
|
|
—
|
|
|
|||||
Selling, general and administrative expenses
|
1,319
|
|
|
1,168
|
|
|
156
|
|
|
(5
|
)
|
3
|
|
||||
Research and development expenses
|
469
|
|
|
469
|
|
|
—
|
|
|
—
|
|
|
|||||
Interest expense of Financial Products
|
178
|
|
|
—
|
|
|
179
|
|
|
(1
|
)
|
4
|
|
||||
Other operating (income) expenses
|
282
|
|
|
12
|
|
|
280
|
|
|
(10
|
)
|
3
|
|
||||
Total operating costs
|
12,022
|
|
|
11,423
|
|
|
615
|
|
|
(16
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Operating profit
|
1,401
|
|
|
1,255
|
|
|
210
|
|
|
(64
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense excluding Financial Products
|
116
|
|
|
127
|
|
|
—
|
|
|
(11
|
)
|
4
|
|
||||
Other income (expense)
|
(24
|
)
|
|
(81
|
)
|
|
4
|
|
|
53
|
|
5
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated profit before taxes
|
1,261
|
|
|
1,047
|
|
|
214
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Provision (benefit) for income taxes
|
310
|
|
|
248
|
|
|
62
|
|
|
—
|
|
|
|||||
Profit of consolidated companies
|
951
|
|
|
799
|
|
|
152
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Equity in profit (loss) of unconsolidated affiliated companies
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
|||||
Equity in profit of Financial Products’ subsidiaries
|
—
|
|
|
149
|
|
|
—
|
|
|
(149
|
)
|
6
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||||
Profit of consolidated and affiliated companies
|
950
|
|
|
947
|
|
|
152
|
|
|
(149
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Less: Profit (loss) attributable to noncontrolling interests
|
4
|
|
|
1
|
|
|
3
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Profit
7
|
$
|
946
|
|
|
$
|
946
|
|
|
$
|
149
|
|
|
$
|
(149
|
)
|
|
1
|
Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis.
|
2
|
Elimination of Financial Products’ revenues earned from Machinery and Power Systems.
|
3
|
Elimination of net expenses recorded by Machinery and Power Systems paid to Financial Products.
|
4
|
Elimination of interest expense recorded between Financial Products and Machinery and Power Systems.
|
5
|
Elimination of discount recorded by Machinery and Power Systems on receivables sold to Financial Products and of interest earned between Machinery and Power Systems and Financial Products.
|
6
|
Elimination of Financial Products’ profit due to equity method of accounting.
|
7
|
Profit attributable to common stockholders.
|
|
|
|
Supplemental Consolidating Data
|
|
|||||||||||||
|
Consolidated
|
|
Machinery
and Power
Systems
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
|||||||||
Sales and revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales of Machinery and Power Systems
|
$
|
39,048
|
|
|
$
|
39,048
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Revenues of Financial Products
|
2,206
|
|
|
—
|
|
|
2,462
|
|
|
(256
|
)
|
2
|
|
||||
Total sales and revenues
|
41,254
|
|
|
39,048
|
|
|
2,462
|
|
|
(256
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Operating costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of goods sold
|
30,186
|
|
|
30,186
|
|
|
—
|
|
|
—
|
|
|
|||||
Selling, general and administrative expenses
|
4,130
|
|
|
3,721
|
|
|
435
|
|
|
(26
|
)
|
3
|
|
||||
Research and development expenses
|
1,579
|
|
|
1,579
|
|
|
—
|
|
|
—
|
|
|
|||||
Interest expense of Financial Products
|
552
|
|
|
—
|
|
|
557
|
|
|
(5
|
)
|
4
|
|
||||
Other operating (income) expenses
|
631
|
|
|
(83
|
)
|
|
737
|
|
|
(23
|
)
|
3
|
|
||||
Total operating costs
|
37,078
|
|
|
35,403
|
|
|
1,729
|
|
|
(54
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Operating profit
|
4,176
|
|
|
3,645
|
|
|
733
|
|
|
(202
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense excluding Financial Products
|
356
|
|
|
388
|
|
|
—
|
|
|
(32
|
)
|
4
|
|
||||
Other income (expense)
|
(79
|
)
|
|
(250
|
)
|
|
1
|
|
|
170
|
|
5
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated profit before taxes
|
3,741
|
|
|
3,007
|
|
|
734
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Provision (benefit) for income taxes
|
943
|
|
|
733
|
|
|
210
|
|
|
—
|
|
|
|||||
Profit of consolidated companies
|
2,798
|
|
|
2,274
|
|
|
524
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Equity in profit (loss) of unconsolidated affiliated companies
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
|||||
Equity in profit of Financial Products’ subsidiaries
|
—
|
|
|
515
|
|
|
—
|
|
|
(515
|
)
|
6
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||||
Profit of consolidated and affiliated companies
|
2,797
|
|
|
2,788
|
|
|
524
|
|
|
(515
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Less: Profit (loss) attributable to noncontrolling interests
|
11
|
|
|
2
|
|
|
9
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Profit
7
|
$
|
2,786
|
|
|
$
|
2,786
|
|
|
$
|
515
|
|
|
$
|
(515
|
)
|
|
1
|
Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis.
|
2
|
Elimination of Financial Products’ revenues earned from Machinery and Power Systems.
|
3
|
Elimination of net expenses recorded by Machinery and Power Systems paid to Financial Products.
|
4
|
Elimination of interest expense recorded between Financial Products and Machinery and Power Systems.
|
5
|
Elimination of discount recorded by Machinery and Power Systems on receivables sold to Financial Products and of interest earned between Machinery and Power Systems and Financial Products.
|
6
|
Elimination of Financial Products’ profit due to equity method of accounting.
|
7
|
Profit attributable to common stockholders.
|
|
|
|
Supplemental Consolidating Data
|
|
|||||||||||||
|
Consolidated
|
|
Machinery
and Power
Systems
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
|||||||||
Sales and revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales of Machinery and Power Systems
|
$
|
15,739
|
|
|
$
|
15,739
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Revenues of Financial Products
|
706
|
|
|
—
|
|
|
796
|
|
|
(90
|
)
|
2
|
|
||||
Total sales and revenues
|
16,445
|
|
|
15,739
|
|
|
796
|
|
|
(90
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Operating costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of goods sold
|
11,639
|
|
|
11,639
|
|
|
—
|
|
|
—
|
|
|
|||||
Selling, general and administrative expenses
|
1,471
|
|
|
1,325
|
|
|
153
|
|
|
(7
|
)
|
3
|
|
||||
Research and development expenses
|
634
|
|
|
634
|
|
|
—
|
|
|
—
|
|
|
|||||
Interest expense of Financial Products
|
197
|
|
|
—
|
|
|
200
|
|
|
(3
|
)
|
4
|
|
||||
Other operating (income) expenses
|
(92
|
)
|
|
(344
|
)
|
|
262
|
|
|
(10
|
)
|
3
|
|
||||
Total operating costs
|
13,849
|
|
|
13,254
|
|
|
615
|
|
|
(20
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Operating profit
|
2,596
|
|
|
2,485
|
|
|
181
|
|
|
(70
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense excluding Financial Products
|
129
|
|
|
140
|
|
|
—
|
|
|
(11
|
)
|
4
|
|
||||
Other income (expense)
|
(17
|
)
|
|
(89
|
)
|
|
13
|
|
|
59
|
|
5
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated profit before taxes
|
2,450
|
|
|
2,256
|
|
|
194
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Provision (benefit) for income taxes
|
753
|
|
|
697
|
|
|
56
|
|
|
—
|
|
|
|||||
Profit of consolidated companies
|
1,697
|
|
|
1,559
|
|
|
138
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Equity in profit (loss) of unconsolidated affiliated companies
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
|||||
Equity in profit of Financial Products’ subsidiaries
|
—
|
|
|
135
|
|
|
—
|
|
|
(135
|
)
|
6
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||||
Profit of consolidated and affiliated companies
|
1,702
|
|
|
1,699
|
|
|
138
|
|
|
(135
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Less: Profit (loss) attributable to noncontrolling interests
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Profit
7
|
$
|
1,699
|
|
|
$
|
1,699
|
|
|
$
|
135
|
|
|
$
|
(135
|
)
|
|
1
|
Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis.
|
2
|
Elimination of Financial Products’ revenues earned from Machinery and Power Systems.
|
3
|
Elimination of net expenses recorded by Machinery and Power Systems paid to Financial Products.
|
4
|
Elimination of interest expense recorded between Financial Products and Machinery and Power Systems.
|
5
|
Elimination of discount recorded by Machinery and Power Systems on receivables sold to Financial Products and of interest earned between Machinery and Power Systems and Financial Products.
|
6
|
Elimination of Financial Products’ profit due to equity method of accounting.
|
7
|
Profit attributable to common stockholders.
|
|
|
|
Supplemental Consolidating Data
|
|
|||||||||||||
|
Consolidated
|
|
Machinery
and Power
Systems
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
|||||||||
Sales and revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales of Machinery and Power Systems
|
$
|
47,711
|
|
|
$
|
47,711
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Revenues of Financial Products
|
2,089
|
|
|
—
|
|
|
2,353
|
|
|
(264
|
)
|
2
|
|
||||
Total sales and revenues
|
49,800
|
|
|
47,711
|
|
|
2,353
|
|
|
(264
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Operating costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of goods sold
|
35,156
|
|
|
35,156
|
|
|
—
|
|
|
—
|
|
|
|||||
Selling, general and administrative expenses
|
4,328
|
|
|
3,922
|
|
|
430
|
|
|
(24
|
)
|
3
|
|
||||
Research and development expenses
|
1,853
|
|
|
1,853
|
|
|
—
|
|
|
—
|
|
|
|||||
Interest expense of Financial Products
|
599
|
|
|
—
|
|
|
602
|
|
|
(3
|
)
|
4
|
|
||||
Other operating (income) expenses
|
329
|
|
|
(408
|
)
|
|
762
|
|
|
(25
|
)
|
3
|
|
||||
Total operating costs
|
42,265
|
|
|
40,523
|
|
|
1,794
|
|
|
(52
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Operating profit
|
7,535
|
|
|
7,188
|
|
|
559
|
|
|
(212
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense excluding Financial Products
|
352
|
|
|
386
|
|
|
—
|
|
|
(34
|
)
|
4
|
|
||||
Other income (expense)
|
141
|
|
|
(62
|
)
|
|
25
|
|
|
178
|
|
5
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated profit before taxes
|
7,324
|
|
|
6,740
|
|
|
584
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Provision (benefit) for income taxes
|
2,314
|
|
|
2,146
|
|
|
168
|
|
|
—
|
|
|
|||||
Profit of consolidated companies
|
5,010
|
|
|
4,594
|
|
|
416
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Equity in profit (loss) of unconsolidated affiliated companies
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
|||||
Equity in profit of Financial Products’ subsidiaries
|
—
|
|
|
408
|
|
|
—
|
|
|
(408
|
)
|
6
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||||
Profit of consolidated and affiliated companies
|
5,022
|
|
|
5,014
|
|
|
416
|
|
|
(408
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Less: Profit (loss) attributable to noncontrolling interests
|
38
|
|
|
30
|
|
|
8
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Profit
7
|
$
|
4,984
|
|
|
$
|
4,984
|
|
|
$
|
408
|
|
|
$
|
(408
|
)
|
|
1
|
Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis.
|
2
|
Elimination of Financial Products’ revenues earned from Machinery and Power Systems.
|
3
|
Elimination of net expenses recorded by Machinery and Power Systems paid to Financial Products.
|
4
|
Elimination of interest expense recorded between Financial Products and Machinery and Power Systems.
|
5
|
Elimination of discount recorded by Machinery and Power Systems on receivables sold to Financial Products and of interest earned between Machinery and Power Systems and Financial Products.
|
6
|
Elimination of Financial Products’ profit due to equity method of accounting.
|
7
|
Profit attributable to common stockholders.
|
|
|
|
Supplemental Consolidating Data
|
|
||||||||||||
|
Consolidated
|
|
Machinery
and Power
Systems
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash and short-term investments
|
$
|
6,357
|
|
|
$
|
4,108
|
|
|
$
|
2,249
|
|
|
$
|
—
|
|
|
Receivables – trade and other
|
8,649
|
|
|
4,727
|
|
|
364
|
|
|
3,558
|
|
2,3
|
||||
Receivables – finance
|
9,161
|
|
|
—
|
|
|
12,977
|
|
|
(3,816
|
)
|
3
|
||||
Deferred and refundable income taxes
|
1,541
|
|
|
1,501
|
|
|
40
|
|
|
—
|
|
|
||||
Prepaid expenses and other current assets
|
988
|
|
|
514
|
|
|
487
|
|
|
(13
|
)
|
4
|
||||
Inventories
|
13,392
|
|
|
13,392
|
|
|
—
|
|
|
—
|
|
|
||||
Total current assets
|
40,088
|
|
|
24,242
|
|
|
16,117
|
|
|
(271
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Property, plant and equipment – net
|
16,588
|
|
|
12,852
|
|
|
3,736
|
|
|
—
|
|
|
||||
Long-term receivables – trade and other
|
1,329
|
|
|
161
|
|
|
293
|
|
|
875
|
|
2,3
|
||||
Long-term receivables – finance
|
14,585
|
|
|
—
|
|
|
15,495
|
|
|
(910
|
)
|
3
|
||||
Investments in unconsolidated affiliated companies
|
278
|
|
|
278
|
|
|
—
|
|
|
—
|
|
|
||||
Investments in Financial Products subsidiaries
|
—
|
|
|
4,769
|
|
|
—
|
|
|
(4,769
|
)
|
5
|
||||
Noncurrent deferred and refundable income taxes
|
1,985
|
|
|
2,378
|
|
|
97
|
|
|
(490
|
)
|
6
|
||||
Intangible assets
|
3,718
|
|
|
3,710
|
|
|
8
|
|
|
—
|
|
|
||||
Goodwill
|
6,968
|
|
|
6,951
|
|
|
17
|
|
|
—
|
|
|
||||
Other assets
|
1,733
|
|
|
408
|
|
|
1,325
|
|
|
—
|
|
|
||||
Total assets
|
$
|
87,272
|
|
|
$
|
55,749
|
|
|
$
|
37,088
|
|
|
$
|
(5,565
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Short-term borrowings
|
$
|
5,847
|
|
|
$
|
290
|
|
|
$
|
5,743
|
|
|
$
|
(186
|
)
|
7
|
Accounts payable
|
6,280
|
|
|
6,178
|
|
|
175
|
|
|
(73
|
)
|
8
|
||||
Accrued expenses
|
3,373
|
|
|
3,083
|
|
|
303
|
|
|
(13
|
)
|
9
|
||||
Accrued wages, salaries and employee benefits
|
1,391
|
|
|
1,362
|
|
|
29
|
|
|
—
|
|
|
||||
Customer advances
|
2,699
|
|
|
2,699
|
|
|
—
|
|
|
—
|
|
|
||||
Other current liabilities
|
1,854
|
|
|
1,342
|
|
|
519
|
|
|
(7
|
)
|
6
|
||||
Long-term debt due within one year
|
7,675
|
|
|
1,110
|
|
|
6,565
|
|
|
—
|
|
|
||||
Total current liabilities
|
29,119
|
|
|
16,064
|
|
|
13,334
|
|
|
(279
|
)
|
|
||||
Long-term debt due after one year
|
26,015
|
|
|
7,985
|
|
|
18,064
|
|
|
(34
|
)
|
7
|
||||
Liability for postemployment benefits
|
10,785
|
|
|
10,785
|
|
|
—
|
|
|
—
|
|
|
||||
Other liabilities
|
3,176
|
|
|
2,738
|
|
|
921
|
|
|
(483
|
)
|
6
|
||||
Total liabilities
|
69,095
|
|
|
37,572
|
|
|
32,319
|
|
|
(796
|
)
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock
|
4,657
|
|
|
4,657
|
|
|
906
|
|
|
(906
|
)
|
5
|
||||
Treasury stock
|
(11,914
|
)
|
|
(11,914
|
)
|
|
—
|
|
|
—
|
|
|
||||
Profit employed in the business
|
31,614
|
|
|
31,614
|
|
|
3,550
|
|
|
(3,550
|
)
|
5
|
||||
Accumulated other comprehensive income (loss)
|
(6,247
|
)
|
|
(6,247
|
)
|
|
195
|
|
|
(195
|
)
|
5
|
||||
Noncontrolling interests
|
67
|
|
|
67
|
|
|
118
|
|
|
(118
|
)
|
5
|
||||
Total stockholders’ equity
|
18,177
|
|
|
18,177
|
|
|
4,769
|
|
|
(4,769
|
)
|
|
||||
Total liabilities and stockholders’ equity
|
$
|
87,272
|
|
|
$
|
55,749
|
|
|
$
|
37,088
|
|
|
$
|
(5,565
|
)
|
|
1
|
Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis.
|
2
|
Elimination of receivables between Machinery and Power Systems and Financial Products.
|
3
|
Reclassification of Machinery and Power Systems’ trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables.
|
4
|
Elimination of Machinery and Power Systems’ insurance premiums that are prepaid to Financial Products.
|
5
|
Elimination of Financial Products’ equity which is accounted for by Machinery and Power Systems on the equity basis.
|
6
|
Reclassification reflecting required netting of deferred tax assets / liabilities by taxing jurisdiction.
|
7
|
Elimination of debt between Machinery and Power Systems and Financial Products.
|
8
|
Elimination of payables between Machinery and Power Systems and Financial Products.
|
9
|
Elimination of prepaid insurance in Financial Products’ accrued expenses.
|
|
|
|
Supplemental Consolidating Data
|
|
||||||||||||
|
Consolidated
|
|
Machinery
and Power
Systems
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash and short-term investments
|
$
|
5,490
|
|
|
$
|
3,306
|
|
|
$
|
2,184
|
|
|
$
|
—
|
|
|
Receivables – trade and other
|
10,092
|
|
|
5,634
|
|
|
445
|
|
|
4,013
|
|
2,3
|
||||
Receivables – finance
|
8,860
|
|
|
—
|
|
|
13,259
|
|
|
(4,399
|
)
|
3
|
||||
Deferred and refundable income taxes
|
1,547
|
|
|
1,501
|
|
|
46
|
|
|
—
|
|
|
||||
Prepaid expenses and other current assets
|
988
|
|
|
547
|
|
|
454
|
|
|
(13
|
)
|
4
|
||||
Inventories
|
15,547
|
|
|
15,547
|
|
|
—
|
|
|
—
|
|
|
||||
Total current assets
|
42,524
|
|
|
26,535
|
|
|
16,388
|
|
|
(399
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Property, plant and equipment – net
|
16,461
|
|
|
13,058
|
|
|
3,403
|
|
|
—
|
|
|
||||
Long-term receivables – trade and other
|
1,316
|
|
|
195
|
|
|
284
|
|
|
837
|
|
2,3
|
||||
Long-term receivables – finance
|
14,029
|
|
|
—
|
|
|
14,902
|
|
|
(873
|
)
|
3
|
||||
Investments in unconsolidated affiliated companies
|
272
|
|
|
272
|
|
|
—
|
|
|
—
|
|
|
||||
Investments in Financial Products subsidiaries
|
—
|
|
|
4,433
|
|
|
—
|
|
|
(4,433
|
)
|
5
|
||||
Noncurrent deferred and refundable income taxes
|
2,011
|
|
|
2,422
|
|
|
105
|
|
|
(516
|
)
|
6
|
||||
Intangible assets
|
4,016
|
|
|
4,008
|
|
|
8
|
|
|
—
|
|
|
||||
Goodwill
|
6,942
|
|
|
6,925
|
|
|
17
|
|
|
—
|
|
|
||||
Other assets
|
1,785
|
|
|
436
|
|
|
1,349
|
|
|
—
|
|
|
||||
Total assets
|
$
|
89,356
|
|
|
$
|
58,284
|
|
|
$
|
36,456
|
|
|
$
|
(5,384
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Short-term borrowings
|
$
|
5,287
|
|
|
$
|
668
|
|
|
$
|
4,859
|
|
|
$
|
(240
|
)
|
7
|
Accounts payable
|
6,753
|
|
|
6,718
|
|
|
178
|
|
|
(143
|
)
|
8
|
||||
Accrued expenses
|
3,667
|
|
|
3,258
|
|
|
422
|
|
|
(13
|
)
|
9
|
||||
Accrued wages, salaries and employee benefits
|
1,911
|
|
|
1,876
|
|
|
35
|
|
|
—
|
|
|
||||
Customer advances
|
2,978
|
|
|
2,978
|
|
|
—
|
|
|
—
|
|
|
||||
Other current liabilities
|
2,055
|
|
|
1,561
|
|
|
502
|
|
|
(8
|
)
|
6
|
||||
Long-term debt due within one year
|
7,104
|
|
|
1,113
|
|
|
5,991
|
|
|
—
|
|
|
||||
Total current liabilities
|
29,755
|
|
|
18,172
|
|
|
11,987
|
|
|
(404
|
)
|
|
||||
Long-term debt due after one year
|
27,752
|
|
|
8,705
|
|
|
19,086
|
|
|
(39
|
)
|
7
|
||||
Liability for postemployment benefits
|
11,085
|
|
|
11,085
|
|
|
—
|
|
|
—
|
|
|
||||
Other liabilities
|
3,182
|
|
|
2,740
|
|
|
950
|
|
|
(508
|
)
|
6
|
||||
Total liabilities
|
71,774
|
|
|
40,702
|
|
|
32,023
|
|
|
(951
|
)
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock
|
4,481
|
|
|
4,481
|
|
|
906
|
|
|
(906
|
)
|
5
|
||||
Treasury stock
|
(10,074
|
)
|
|
(10,074
|
)
|
|
—
|
|
|
—
|
|
|
||||
Profit employed in the business
|
29,558
|
|
|
29,558
|
|
|
3,185
|
|
|
(3,185
|
)
|
5
|
||||
Accumulated other comprehensive income (loss)
|
(6,433
|
)
|
|
(6,433
|
)
|
|
236
|
|
|
(236
|
)
|
5
|
||||
Noncontrolling interests
|
50
|
|
|
50
|
|
|
106
|
|
|
(106
|
)
|
5
|
||||
Total stockholders’ equity
|
17,582
|
|
|
17,582
|
|
|
4,433
|
|
|
(4,433
|
)
|
|
||||
Total liabilities and stockholders’ equity
|
$
|
89,356
|
|
|
$
|
58,284
|
|
|
$
|
36,456
|
|
|
$
|
(5,384
|
)
|
|
1
|
Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis.
|
2
|
Elimination of receivables between Machinery and Power Systems and Financial Products.
|
3
|
Reclassification of Machinery and Power Systems’ trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables.
|
4
|
Elimination of Machinery and Power Systems’ insurance premiums that are prepaid to Financial Products.
|
5
|
Elimination of Financial Products’ equity which is accounted for by Machinery and Power Systems on the equity basis.
|
6
|
Reclassification reflecting required netting of deferred tax assets / liabilities by taxing jurisdiction.
|
7
|
Elimination of debt between Machinery and Power Systems and Financial Products.
|
8
|
Elimination of payables between Machinery and Power Systems and Financial Products.
|
9
|
Elimination of prepaid insurance in Financial Products’ accrued expenses.
|
|
|
|
Supplemental Consolidating Data
|
|
||||||||||||
|
Consolidated
|
|
Machinery
and Power
Systems
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
||||||||
Profit of consolidated and affiliated companies
|
$
|
2,797
|
|
|
$
|
2,788
|
|
|
$
|
524
|
|
|
$
|
(515
|
)
|
2
|
Adjustments for non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization
|
2,263
|
|
|
1,674
|
|
|
589
|
|
|
—
|
|
|
||||
Undistributed profit of Financial Products
|
—
|
|
|
(365
|
)
|
|
—
|
|
|
365
|
|
3
|
||||
Other
|
377
|
|
|
247
|
|
|
(33
|
)
|
|
163
|
|
4
|
||||
Changes in assets and liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
||||||||
Receivables - trade and other
|
1,165
|
|
|
758
|
|
|
40
|
|
|
367
|
|
4,5
|
||||
Inventories
|
1,911
|
|
|
1,916
|
|
|
—
|
|
|
(5
|
)
|
4
|
||||
Accounts payable
|
41
|
|
|
53
|
|
|
(82
|
)
|
|
70
|
|
4
|
||||
Accrued expenses
|
(227
|
)
|
|
(101
|
)
|
|
(126
|
)
|
|
—
|
|
|
||||
Accrued wages, salaries and employee benefits
|
(500
|
)
|
|
(494
|
)
|
|
(6
|
)
|
|
—
|
|
|
||||
Customer advances
|
(287
|
)
|
|
(287
|
)
|
|
—
|
|
|
—
|
|
|
||||
Other assets – net
|
(74
|
)
|
|
(51
|
)
|
|
3
|
|
|
(26
|
)
|
4
|
||||
Other liabilities – net
|
145
|
|
|
109
|
|
|
10
|
|
|
26
|
|
4
|
||||
Net cash provided by (used for) operating activities
|
7,611
|
|
|
6,247
|
|
|
919
|
|
|
445
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital expenditures - excluding equipment leased to others
|
(1,862
|
)
|
|
(1,851
|
)
|
|
(11
|
)
|
|
—
|
|
|
||||
Expenditures for equipment leased to others
|
(1,301
|
)
|
|
(52
|
)
|
|
(1,299
|
)
|
|
50
|
|
4
|
||||
Proceeds from disposals of leased assets and property, plant and equipment
|
593
|
|
|
72
|
|
|
535
|
|
|
(14
|
)
|
4
|
||||
Additions to finance receivables
|
(8,339
|
)
|
|
—
|
|
|
(10,400
|
)
|
|
2,061
|
|
5,8
|
||||
Collections of finance receivables
|
6,790
|
|
|
—
|
|
|
8,803
|
|
|
(2,013
|
)
|
5
|
||||
Net intercompany purchased receivables
|
—
|
|
|
—
|
|
|
600
|
|
|
(600
|
)
|
5
|
||||
Proceeds from sale of finance receivables
|
110
|
|
|
—
|
|
|
111
|
|
|
(1
|
)
|
5
|
||||
Net intercompany borrowings
|
—
|
|
|
—
|
|
|
35
|
|
|
(35
|
)
|
6
|
||||
Investments and acquisitions (net of cash acquired)
|
(193
|
)
|
|
(193
|
)
|
|
—
|
|
|
—
|
|
|
||||
Proceeds from sale of businesses and investments (net of cash sold)
|
168
|
|
|
246
|
|
|
—
|
|
|
(78
|
)
|
8
|
||||
Proceeds from sale of available-for-sale securities
|
297
|
|
|
19
|
|
|
278
|
|
|
—
|
|
|
||||
Investments in available-for-sale securities
|
(312
|
)
|
|
(15
|
)
|
|
(297
|
)
|
|
—
|
|
|
||||
Other – net
|
(29
|
)
|
|
(32
|
)
|
|
3
|
|
|
—
|
|
|
||||
Net cash provided by (used for) investing activities
|
(4,078
|
)
|
|
(1,806
|
)
|
|
(1,642
|
)
|
|
(630
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dividends paid
|
(730
|
)
|
|
(730
|
)
|
|
(150
|
)
|
|
150
|
|
7
|
||||
Distribution to noncontrolling interests
|
(10
|
)
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
||||
Common stock issued, including treasury shares reissued
|
77
|
|
|
77
|
|
|
—
|
|
|
—
|
|
|
||||
Treasury shares purchased
|
(2,000
|
)
|
|
(2,000
|
)
|
|
—
|
|
|
—
|
|
|
||||
Excess tax benefit from stock-based compensation
|
70
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
||||
Net intercompany borrowings
|
—
|
|
|
(35
|
)
|
|
—
|
|
|
35
|
|
6
|
||||
Proceeds from debt issued (original maturities greater than three months)
|
6,999
|
|
|
145
|
|
|
6,854
|
|
|
—
|
|
|
||||
Payments on debt (original maturities greater than three months)
|
(8,770
|
)
|
|
(1,134
|
)
|
|
(7,636
|
)
|
|
—
|
|
|
||||
Short-term borrowings – net (original maturities three months or less)
|
1,736
|
|
|
1
|
|
|
1,735
|
|
|
—
|
|
|
||||
Net cash provided by (used for) financing activities
|
(2,628
|
)
|
|
(3,616
|
)
|
|
803
|
|
|
185
|
|
|
||||
Effect of exchange rate changes on cash
|
(38
|
)
|
|
(23
|
)
|
|
(15
|
)
|
|
—
|
|
|
||||
Increase (decrease) in cash and short-term investments
|
867
|
|
|
802
|
|
|
65
|
|
|
—
|
|
|
||||
Cash and short-term investments at beginning of period
|
5,490
|
|
|
3,306
|
|
|
2,184
|
|
|
—
|
|
|
||||
Cash and short-term investments at end of period
|
$
|
6,357
|
|
|
$
|
4,108
|
|
|
$
|
2,249
|
|
|
$
|
—
|
|
|
1
|
Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis.
|
2
|
Elimination of Financial Products’ profit after tax due to equity method of accounting.
|
3
|
Elimination of non-cash adjustment for the undistributed earnings from Financial Products.
|
4
|
Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.
|
5
|
Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory.
|
6
|
Elimination of net proceeds and payments to/from Machinery and Power Systems and Financial Products.
|
7
|
Elimination of dividend from Financial Products to Machinery and Power Systems.
|
8
|
Elimination of proceeds received from Financial Products related to Machinery and Power Systems' sale of portions of the Bucyrus distribution business to Cat Dealers.
|
|
|
|
Supplemental Consolidating Data
|
|
||||||||||||
|
Consolidated
|
|
Machinery
and Power
Systems
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
||||||||
Profit of consolidated and affiliated companies
|
$
|
5,022
|
|
|
$
|
5,014
|
|
|
$
|
416
|
|
|
$
|
(408
|
)
|
2
|
Adjustments for non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization
|
2,070
|
|
|
1,523
|
|
|
547
|
|
|
—
|
|
|
||||
Undistributed profit of Financial Products
|
—
|
|
|
(158
|
)
|
|
—
|
|
|
158
|
|
3
|
||||
Other
|
(267
|
)
|
|
(295
|
)
|
|
(112
|
)
|
|
140
|
|
4
|
||||
Changes in assets and liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Receivables - trade and other
|
136
|
|
|
191
|
|
|
(59
|
)
|
|
4
|
|
4,5
|
||||
Inventories
|
(3,118
|
)
|
|
(3,069
|
)
|
|
—
|
|
|
(49
|
)
|
4
|
||||
Accounts payable
|
(334
|
)
|
|
(342
|
)
|
|
(2
|
)
|
|
10
|
|
4
|
||||
Accrued expenses
|
32
|
|
|
69
|
|
|
(38
|
)
|
|
1
|
|
4
|
||||
Accrued wages, salaries and employee benefits
|
(643
|
)
|
|
(636
|
)
|
|
(7
|
)
|
|
—
|
|
|
||||
Customer advances
|
306
|
|
|
306
|
|
|
—
|
|
|
—
|
|
|
||||
Other assets – net
|
(20
|
)
|
|
(5
|
)
|
|
(21
|
)
|
|
6
|
|
4
|
||||
Other liabilities – net
|
34
|
|
|
(89
|
)
|
|
130
|
|
|
(7
|
)
|
4
|
||||
Net cash provided by (used for) operating activities
|
3,218
|
|
|
2,509
|
|
|
854
|
|
|
(145
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital expenditures - excluding equipment leased to others
|
(2,270
|
)
|
|
(2,259
|
)
|
|
(11
|
)
|
|
—
|
|
|
||||
Expenditures for equipment leased to others
|
(1,256
|
)
|
|
(65
|
)
|
|
(1,330
|
)
|
|
139
|
|
4,9
|
||||
Proceeds from disposals of leased assets and property, plant and equipment
|
840
|
|
|
154
|
|
|
702
|
|
|
(16
|
)
|
4
|
||||
Additions to finance receivables
|
(8,835
|
)
|
|
—
|
|
|
(14,195
|
)
|
|
5,360
|
|
5,8,9
|
||||
Collections of finance receivables
|
6,567
|
|
|
—
|
|
|
11,253
|
|
|
(4,686
|
)
|
5,9
|
||||
Net intercompany purchased receivables
|
—
|
|
|
—
|
|
|
366
|
|
|
(366
|
)
|
5
|
||||
Proceeds from sale of finance receivables
|
109
|
|
|
—
|
|
|
109
|
|
|
—
|
|
|
||||
Net intercompany borrowings
|
—
|
|
|
(203
|
)
|
|
17
|
|
|
186
|
|
6
|
||||
Investments and acquisitions (net of cash acquired)
|
(542
|
)
|
|
(486
|
)
|
|
—
|
|
|
(56
|
)
|
9
|
||||
Proceeds from sale of businesses and investments (net of cash sold)
|
1,009
|
|
|
1,489
|
|
|
—
|
|
|
(480
|
)
|
8
|
||||
Proceeds from sale of available-for-sale securities
|
243
|
|
|
24
|
|
|
219
|
|
|
—
|
|
|
||||
Investments in available-for-sale securities
|
(299
|
)
|
|
(6
|
)
|
|
(293
|
)
|
|
—
|
|
|
||||
Other – net
|
82
|
|
|
36
|
|
|
46
|
|
|
—
|
|
|
||||
Net cash provided by (used for) investing activities
|
(4,352
|
)
|
|
(1,316
|
)
|
|
(3,117
|
)
|
|
81
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dividends paid
|
(937
|
)
|
|
(937
|
)
|
|
(250
|
)
|
|
250
|
|
7
|
||||
Distribution to noncontrolling interests
|
(5
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
||||
Common stock issued, including treasury shares reissued
|
41
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
||||
Excess tax benefit from stock-based compensation
|
165
|
|
|
165
|
|
|
—
|
|
|
—
|
|
|
||||
Acquisitions of redeemable noncontrolling interests
|
(444
|
)
|
|
(444
|
)
|
|
—
|
|
|
—
|
|
|
||||
Net intercompany borrowings
|
—
|
|
|
(17
|
)
|
|
203
|
|
|
(186
|
)
|
6
|
||||
Proceeds from debt issued (original maturities greater than three months)
|
11,632
|
|
|
2,015
|
|
|
9,617
|
|
|
—
|
|
|
||||
Payments on debt (original maturities greater than three months)
|
(6,727
|
)
|
|
(485
|
)
|
|
(6,242
|
)
|
|
—
|
|
|
||||
Short-term borrowings – net (original maturities three months or less)
|
166
|
|
|
38
|
|
|
128
|
|
|
—
|
|
|
||||
Net cash provided by (used for) financing activities
|
3,891
|
|
|
371
|
|
|
3,456
|
|
|
64
|
|
|
||||
Effect of exchange rate changes on cash
|
(125
|
)
|
|
(30
|
)
|
|
(95
|
)
|
|
—
|
|
|
||||
Increase (decrease) in cash and short-term investments
|
2,632
|
|
|
1,534
|
|
|
1,098
|
|
|
—
|
|
|
||||
Cash and short-term investments at beginning of period
|
3,057
|
|
|
1,829
|
|
|
1,228
|
|
|
—
|
|
|
||||
Cash and short-term investments at end of period
|
$
|
5,689
|
|
|
$
|
3,363
|
|
|
$
|
2,326
|
|
|
$
|
—
|
|
|
1
|
Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis.
|
2
|
Elimination of Financial Products' profit after tax due to equity method of accounting.
|
3
|
Elimination of non-cash adjustment for the undistributed earnings from Financial Products.
|
4
|
Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.
|
5
|
Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory.
|
6
|
Elimination of net proceeds and payments to/from Machinery and Power Systems and Financial Products.
|
7
|
Elimination of dividend from Financial Products to Machinery and Power Systems.
|
8
|
Elimination of proceeds received from Financial Products related to Machinery and Power Systems' sale of portions of the Bucyrus distribution business to Cat dealers.
|
9
|
Reclassification of Financial Products' payments related to Machinery and Power Systems' acquisition of Caterpillar Tohoku Limited.
|
Period
1
|
|
Total Number
of Shares
Purchased
|
|
Average Price
Paid per Share
|
|
Total Number
of Shares Purchased
Under the Program
|
|
Approximate Dollar
Value of Shares that
may yet be Purchased
under the Program (dollars in billions)
2
|
||||||
July 1-31, 2013
|
|
11,370,672
|
|
|
$
|
83.73
|
|
|
11,370,672
|
|
|
$
|
1.787
|
|
August 1-31, 2013
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
September 1-30, 2013
|
|
572,065
|
|
|
$
|
83.73
|
|
|
572,065
|
|
|
$
|
1.739
|
|
Total
|
|
11,942,737
|
|
|
$
|
83.73
|
|
|
11,942,737
|
|
|
|
|
1
|
In July 2013, we entered into a definitive agreement with Société Générale to purchase shares of our common stock under an accelerated stock repurchase transaction (July ASR Agreement). Pursuant to the terms of the July ASR Agreement, a total of 11.9 million shares of our common stock were repurchased at an aggregate cost to Caterpillar of $1.0 billion.
|
2
|
In February 2007, the Board of Directors authorized the repurchase of $7.5 billion of Caterpillar stock, and in December 2011, the authorization was extended through December 31, 2015. Through the end of the third quarter of 2013, $5.8 billion of the $7.5 billion authorization was spent.
|
|
|
|
|
|
Period
|
|
Total Number
of Shares
Purchased
1
|
|
Average Price
Paid per Share
|
|
Total Number
of Shares Purchased
Under the Program
|
|
Approximate Dollar
Value of Shares that
may yet be Purchased
under the Program
|
|||
July 1-31, 2013
|
|
5,818
|
|
|
$
|
83.09
|
|
|
NA
|
|
NA
|
August 1-31, 2013
|
|
619
|
|
|
$
|
83.01
|
|
|
NA
|
|
NA
|
September 1-30, 2013
|
|
16,605
|
|
|
$
|
82.63
|
|
|
NA
|
|
NA
|
Total
|
|
23,042
|
|
|
$
|
82.76
|
|
|
|
|
|
1
|
Represents shares delivered back to issuer for the payment of taxes resulting from the vesting of restricted stock units and the exercise of stock options by employees and Directors.
|
|
|
CATERPILLAR INC.
|
|
|
|
|
|
|
|
November 1, 2013
|
/s/Douglas R. Oberhelman
|
Chairman and Chief Executive Officer
|
|
(Douglas R. Oberhelman)
|
|
|
|
|
|
|
|
November 1, 2013
|
/s/Bradley M. Halverson
|
Group President and Chief Financial Officer
|
|
(Bradley M. Halverson)
|
|
|
|
|
|
|
|
November 1, 2013
|
/s/James B. Buda
|
Executive Vice President, Law and Public Policy
|
|
(James B. Buda)
|
|
|
|
|
|
|
|
November 1, 2013
|
/s/Jananne A. Copeland
|
Chief Accounting Officer
|
|
(Jananne A. Copeland)
|
|
Exhibit No.
|
|
Description
|
|
|
|
10.1
|
|
Credit Agreement (2013 364-Day Credit Agreement), dated as of September 12, 2013, among the Company, Cat Financial, Caterpillar International Finance Limited and Caterpillar Finance Corporation, certain financial institutions named therein, Citibank, N.A., as Agent, Citibank International plc, as Local Currency Agent, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Japan Local Currency Agent (incorporated by reference from Exhibit 99.1 to the Company's Current Report on Form 8-K filed September 17, 2013).
|
|
|
|
10.2
|
|
Local Currency Addendum, dated as of September 12, 2013, to the 2013 364-Day Credit Agreement (incorporated by reference from Exhibit 99.2 to the Company's Current Report on Form 8-K filed September 17, 2013).
|
|
|
|
10.3
|
|
Japan Local Currency Addendum, dated as of September 12, 2013, to the 2013 364-Day Credit Agreement (incorporated by reference from Exhibit 99.3 to the Company's Current Report on Form 8-K filed September 17, 2013).
|
|
|
|
10.4
|
|
Omnibus Amendment No. 3 to the Credit Agreement (4-Year Facility) and Amendment No. 1 to the Local Currency Addendum, dated as of September 12, 2013, by and among the Company, Cat Financial, Caterpillar International Finance Limited and Caterpillar Finance Corporation, the Banks named therein, Local Currency Banks and Japan Local Currency Banks party thereto, Citibank, N.A., as Agent, Citibank International plc, as Local Currency Agent, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Japan Local Currency Agent (incorporated by reference from Exhibit 99.4 to the Company's Current Report on Form 8-K filed September 17, 2013).
|
|
|
|
10.5
|
|
Omnibus Amendment No. 2 to the Credit Agreement (5-Year Facility) and Amendment No. 1 to the Local Currency Addendum dated as of September 12, 2013, by and among the Company, Cat Financial, Caterpillar International Finance Limited and Caterpillar Finance Corporation, the Banks named therein, Local Currency Banks and Japan Local Currency Banks party thereto, Citibank, N.A., as Agent, Citibank International plc, as Local Currency Agent, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Japan Local Currency Agent (incorporated by reference from Exhibit 99.5 to the Company's Current Report on Form 8-K filed September 17, 2013).
|
|
|
|
10.6
|
|
Caterpillar Inc. 2006 Long-Term Incentive Plan amended and restated through second amendment dated August 22, 2013.
|
|
|
|
11
|
|
Computations of Earnings per Share (included in Note 11 of this Form 10-Q filed for the quarter ended September 30, 2013).
|
|
|
|
31.1
|
|
Certification of Douglas R. Oberhelman, Chairman and Chief Executive Officer of Caterpillar Inc., as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
31.2
|
|
Certification of Bradley M. Halverson, Group President and Chief Financial Officer of Caterpillar Inc., as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
32
|
|
Certification of Douglas R. Oberhelman, Chairman and Chief Executive Officer of Caterpillar Inc. and Bradley M. Halverson, Group President and Chief Financial Officer of Caterpillar Inc., as required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
95
|
|
Mine Safety Disclosures
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Caterpillar Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
November 1, 2013
|
/s/Douglas R. Oberhelman
|
Chairman of the Board and Chief Executive Officer
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(Douglas R. Oberhelman)
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1.
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I have reviewed this quarterly report on Form 10-Q of Caterpillar Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
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a)
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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November 1, 2013
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/s/Bradley M. Halverson
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Group President and
Chief Financial Officer
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(Bradley M. Halverson)
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(1)
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The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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November 1, 2013
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/s/Douglas R. Oberhelman
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Chairman of the Board and Chief Executive Officer
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(Douglas R. Oberhelman)
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November 1, 2013
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/s/Bradley M. Halverson
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Group President and
Chief Financial Officer
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(Bradley M. Halverson)
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Mine or Operating Name/MSHA Identification Number
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Contractor ID
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Section 104 S&S Citations (#)
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Section 104(b) Orders (#)
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Section 104(d) Citations and Orders (#)
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Section 110(b)(2) Violations (#)
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Section 107(a) Orders (#)
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Total Dollar Value of MSHA Assessments Proposed ($)
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Total Number of Mining Related Fatalities (#)
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Received Notice of Pattern Violations Under Section 104(e) (yes/no)
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Received Notice of Potential to Have Pattern Under Section 104(e) (yes/no)
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Legal Actions Pending as of Last Day of Period (#)
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Legal Actions Initiated During Period (#)
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Legal Actions Resolved During Period (#)
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Bear Run, 1202422
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Z8T
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1
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Dolet Hills, 1601031
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Z8T
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1
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North Antelope Rochelle, 4801353
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Z8T
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|
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1
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|
|
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Republic Energy, 4609054
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Z8T
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1
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Total
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1
|
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3
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