|
Delaware
(State or other jurisdiction of incorporation)
|
|
37-0602744
(IRS Employer I.D. No.)
|
|
|
|
510 Lake Cook Road, Suite 100, Deerfield, Illinois
(Address of principal executive offices)
|
|
60015
(Zip Code)
|
Large accelerated filer
|
x
|
Accelerated filer
|
o
|
|
|
|
|
Non-accelerated filer
|
o
|
(Do not check if a smaller reporting company)
|
|
|
|
|
|
|
|
Smaller reporting company
|
o
|
|
|
|
|
|
|
Emerging growth company
|
o
|
|
|
|
|
|
|
|
|
|
|
Item 1A.
|
Risk Factors
|
*
|
Item 3.
|
Defaults Upon Senior Securities
|
*
|
Item 4.
|
Mine Safety Disclosures
|
*
|
Item 5.
|
Other Information
|
*
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
Sales and revenues:
|
|
|
|
||||
Sales of Machinery, Energy & Transportation
|
$
|
12,150
|
|
|
$
|
9,130
|
|
Revenues of Financial Products
|
709
|
|
|
692
|
|
||
Total sales and revenues
|
12,859
|
|
|
9,822
|
|
||
|
|
|
|
||||
Operating costs:
|
|
|
|
|
|
||
Cost of goods sold
|
8,566
|
|
|
6,801
|
|
||
Selling, general and administrative expenses
|
1,276
|
|
|
1,061
|
|
||
Research and development expenses
|
443
|
|
|
425
|
|
||
Interest expense of Financial Products
|
166
|
|
|
159
|
|
||
Other operating (income) expenses
|
300
|
|
|
996
|
|
||
Total operating costs
|
10,751
|
|
|
9,442
|
|
||
|
|
|
|
||||
Operating profit
|
2,108
|
|
|
380
|
|
||
|
|
|
|
||||
Interest expense excluding Financial Products
|
101
|
|
|
123
|
|
||
Other income (expense)
|
127
|
|
|
32
|
|
||
|
|
|
|
||||
Consolidated profit before taxes
|
2,134
|
|
|
289
|
|
||
|
|
|
|
||||
Provision (benefit) for income taxes
|
472
|
|
|
90
|
|
||
Profit of consolidated companies
|
1,662
|
|
|
199
|
|
||
|
|
|
|
||||
Equity in profit (loss) of unconsolidated affiliated companies
|
5
|
|
|
(5
|
)
|
||
|
|
|
|
||||
Profit of consolidated and affiliated companies
|
1,667
|
|
|
194
|
|
||
|
|
|
|
||||
Less: Profit (loss) attributable to noncontrolling interests
|
2
|
|
|
2
|
|
||
|
|
|
|
||||
Profit
1
|
$
|
1,665
|
|
|
$
|
192
|
|
|
|
|
|
||||
Profit per common share
|
$
|
2.78
|
|
|
$
|
0.33
|
|
|
|
|
|
||||
Profit per common share – diluted
2
|
$
|
2.74
|
|
|
$
|
0.32
|
|
|
|
|
|
||||
Weighted-average common shares outstanding (millions)
|
|
|
|
|
|
||
– Basic
|
598.0
|
|
|
587.5
|
|
||
– Diluted
2
|
608.0
|
|
|
593.2
|
|
||
|
|
|
|
||||
Cash dividends declared per common share
|
$
|
—
|
|
|
$
|
—
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
|
|
|
|
||||
Profit of consolidated and affiliated companies
|
$
|
1,667
|
|
|
$
|
194
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
||||
Foreign currency translation, net of tax (provision)/benefit of: 2018 - $15; 2017 - $7
|
184
|
|
|
147
|
|
||
|
|
|
|
||||
Pension and other postretirement benefits:
|
|
|
|
||||
Current year prior service credit (cost), net of tax (provision)/benefit of: 2018 - $1; 2017 - $(4)
|
(2
|
)
|
|
8
|
|
||
Amortization of prior service (credit) cost, net of tax (provision)/benefit of: 2018 - $2; 2017 - $1
|
(7
|
)
|
|
(4
|
)
|
||
|
|
|
|
||||
Derivative financial instruments:
|
|
|
|
||||
Gains (losses) deferred, net of tax (provision)/benefit of: 2018 - $(1); 2017 - $(5)
|
5
|
|
|
10
|
|
||
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2018 - $(6); 2017 - $(22)
|
18
|
|
|
40
|
|
||
|
|
|
|
||||
Available-for-sale securities:
|
|
|
|
||||
Gains (losses) deferred, net of tax (provision)/benefit of: 2018 - $2; 2017 - $(6)
|
(11
|
)
|
|
8
|
|
||
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2018 - $0; 2017 - $(1)
|
—
|
|
|
3
|
|
||
|
|
|
|
||||
Total other comprehensive income (loss), net of tax
|
187
|
|
|
212
|
|
||
Comprehensive income
|
1,854
|
|
|
406
|
|
||
Less: comprehensive income attributable to the noncontrolling interests
|
(2
|
)
|
|
(2
|
)
|
||
Comprehensive income attributable to shareholders
|
$
|
1,852
|
|
|
$
|
404
|
|
|
|
|
|
|
March 31,
2018 |
|
December 31,
2017 |
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
|
|
||
Cash and short-term investments
|
$
|
7,888
|
|
|
$
|
8,261
|
|
Receivables – trade and other
|
7,894
|
|
|
7,436
|
|
||
Receivables – finance
|
8,772
|
|
|
8,757
|
|
||
Prepaid expenses and other current assets
|
1,856
|
|
|
1,772
|
|
||
Inventories
|
10,947
|
|
|
10,018
|
|
||
Total current assets
|
37,357
|
|
|
36,244
|
|
||
|
|
|
|
||||
Property, plant and equipment – net
|
13,912
|
|
|
14,155
|
|
||
Long-term receivables – trade and other
|
1,004
|
|
|
990
|
|
||
Long-term receivables – finance
|
13,359
|
|
|
13,542
|
|
||
Noncurrent deferred and refundable income taxes
|
1,687
|
|
|
1,693
|
|
||
Intangible assets
|
2,163
|
|
|
2,111
|
|
||
Goodwill
|
6,376
|
|
|
6,200
|
|
||
Other assets
|
2,156
|
|
|
2,027
|
|
||
Total assets
|
$
|
78,014
|
|
|
$
|
76,962
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Short-term borrowings:
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
$
|
7
|
|
|
$
|
1
|
|
Financial Products
|
5,726
|
|
|
4,836
|
|
||
Accounts payable
|
6,938
|
|
|
6,487
|
|
||
Accrued expenses
|
3,551
|
|
|
3,220
|
|
||
Accrued wages, salaries and employee benefits
|
1,474
|
|
|
2,559
|
|
||
Customer advances
|
1,399
|
|
|
1,426
|
|
||
Dividends payable
|
—
|
|
|
466
|
|
||
Other current liabilities
|
1,890
|
|
|
1,742
|
|
||
Long-term debt due within one year:
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
8
|
|
|
6
|
|
||
Financial Products
|
6,409
|
|
|
6,188
|
|
||
Total current liabilities
|
27,402
|
|
|
26,931
|
|
||
|
|
|
|
||||
Long-term debt due after one year:
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
7,980
|
|
|
7,929
|
|
||
Financial Products
|
15,185
|
|
|
15,918
|
|
||
Liability for postemployment benefits
|
8,233
|
|
|
8,365
|
|
||
Other liabilities
|
3,942
|
|
|
4,053
|
|
||
Total liabilities
|
62,742
|
|
|
63,196
|
|
||
Commitments and contingencies (Notes 10 and 13)
|
|
|
|
|
|
||
Shareholders’ equity
|
|
|
|
|
|
||
Common stock of $1.00 par value:
|
|
|
|
|
|
||
Authorized shares: 2,000,000,000
Issued shares: (3/31/18 and 12/31/17 – 814,894,624) at paid-in amount |
5,640
|
|
|
5,593
|
|
||
Treasury stock (3/31/18 – 216,989,724 shares; 12/31/17 – 217,268,852 shares) at cost
|
(17,347
|
)
|
|
(17,005
|
)
|
||
Profit employed in the business
|
27,929
|
|
|
26,301
|
|
||
Accumulated other comprehensive income (loss)
|
(1,016
|
)
|
|
(1,192
|
)
|
||
Noncontrolling interests
|
66
|
|
|
69
|
|
||
Total shareholders’ equity
|
15,272
|
|
|
13,766
|
|
||
Total liabilities and shareholders’ equity
|
$
|
78,014
|
|
|
$
|
76,962
|
|
|
Common
stock
|
|
Treasury
stock
|
|
Profit
employed
in the
business
|
|
Accumulated
other
comprehensive
income (loss)
|
|
Noncontrolling
interests
|
|
Total
|
||||||||||||
Three Months Ended March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at December 31, 2016
|
$
|
5,277
|
|
|
$
|
(17,478
|
)
|
|
$
|
27,377
|
|
|
$
|
(2,039
|
)
|
|
$
|
76
|
|
|
$
|
13,213
|
|
Adjustment to adopt stock-based compensation guidance
1
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
||||||
Balance at January 1, 2017
|
$
|
5,277
|
|
|
$
|
(17,478
|
)
|
|
$
|
27,392
|
|
|
$
|
(2,039
|
)
|
|
$
|
76
|
|
|
$
|
13,228
|
|
Profit of consolidated and affiliated companies
|
—
|
|
|
—
|
|
|
192
|
|
|
—
|
|
|
2
|
|
|
194
|
|
||||||
Foreign currency translation, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
147
|
|
|
—
|
|
|
147
|
|
||||||
Pension and other postretirement benefits, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Derivative financial instruments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
50
|
|
||||||
Available-for-sale securities, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||||||
Distribution to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
||||||
Common shares issued from treasury stock for stock-based compensation: 2,604,284
|
(106
|
)
|
|
87
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
||||||
Stock-based compensation expense
|
49
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49
|
|
||||||
Other
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Balance at March 31, 2017
|
$
|
5,222
|
|
|
$
|
(17,391
|
)
|
|
$
|
27,584
|
|
|
$
|
(1,827
|
)
|
|
$
|
72
|
|
|
$
|
13,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at December 31, 2017
|
$
|
5,593
|
|
|
$
|
(17,005
|
)
|
|
$
|
26,301
|
|
|
$
|
(1,192
|
)
|
|
$
|
69
|
|
|
$
|
13,766
|
|
Adjustments to adopt new accounting guidance
1
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenue recognition
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
$
|
(12
|
)
|
|||||
Tax accounting for intra-entity asset transfers
|
—
|
|
|
—
|
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|
$
|
(35
|
)
|
|||||
Recognition and measurement of financial assets and liabilities
|
—
|
|
|
—
|
|
|
11
|
|
|
(11
|
)
|
|
—
|
|
|
$
|
—
|
|
|||||
Balance at January 1, 2018
|
$
|
5,593
|
|
|
$
|
(17,005
|
)
|
|
$
|
26,265
|
|
|
$
|
(1,203
|
)
|
|
$
|
69
|
|
|
$
|
13,719
|
|
Profit of consolidated and affiliated companies
|
—
|
|
|
—
|
|
|
1,665
|
|
|
—
|
|
|
2
|
|
|
1,667
|
|
||||||
Foreign currency translation, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
|
|
—
|
|
|
184
|
|
||||||
Pension and other postretirement benefits, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||||
Derivative financial instruments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
23
|
|
||||||
Available-for-sale securities, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
||||||
Change in ownership from noncontrolling interests
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(3
|
)
|
||||||
Dividends declared
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Common shares issued from treasury stock for stock-based compensation: 3,426,757
|
(9
|
)
|
|
158
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
149
|
|
||||||
Stock-based compensation expense
|
50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50
|
|
||||||
Common shares repurchased: 3,147,629
2
|
—
|
|
|
(500
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(500
|
)
|
||||||
Other
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||||
Balance at March 31, 2018
|
$
|
5,640
|
|
|
$
|
(17,347
|
)
|
|
$
|
27,929
|
|
|
$
|
(1,016
|
)
|
|
$
|
66
|
|
|
$
|
15,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
1
See Note 2 for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2
See Note 11 for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31 |
||||||
|
2018
|
|
2017
|
||||
Cash flow from operating activities:
|
|
|
|
||||
Profit of consolidated and affiliated companies
|
$
|
1,667
|
|
|
$
|
194
|
|
Adjustments for non-cash items:
|
|
|
|
|
|
||
Depreciation and amortization
|
681
|
|
|
710
|
|
||
Other
|
148
|
|
|
302
|
|
||
Changes in assets and liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
||
Receivables – trade and other
|
(326
|
)
|
|
(353
|
)
|
||
Inventories
|
(803
|
)
|
|
(444
|
)
|
||
Accounts payable
|
486
|
|
|
732
|
|
||
Accrued expenses
|
66
|
|
|
132
|
|
||
Accrued wages, salaries and employee benefits
|
(1,110
|
)
|
|
360
|
|
||
Customer advances
|
(46
|
)
|
|
234
|
|
||
Other assets – net
|
165
|
|
|
(261
|
)
|
||
Other liabilities – net
|
7
|
|
|
(64
|
)
|
||
Net cash provided by (used for) operating activities
|
935
|
|
|
1,542
|
|
||
|
|
|
|
||||
Cash flow from investing activities:
|
|
|
|
|
|
||
Capital expenditures – excluding equipment leased to others
|
(412
|
)
|
|
(204
|
)
|
||
Expenditures for equipment leased to others
|
(345
|
)
|
|
(305
|
)
|
||
Proceeds from disposals of leased assets and property, plant and equipment
|
258
|
|
|
234
|
|
||
Additions to finance receivables
|
(2,621
|
)
|
|
(2,122
|
)
|
||
Collections of finance receivables
|
2,671
|
|
|
2,272
|
|
||
Proceeds from sale of finance receivables
|
69
|
|
|
17
|
|
||
Investments and acquisitions (net of cash acquired)
|
(340
|
)
|
|
(18
|
)
|
||
Proceeds from sale of businesses and investments (net of cash sold)
|
12
|
|
|
—
|
|
||
Proceeds from sale of securities
|
89
|
|
|
89
|
|
||
Investments in securities
|
(197
|
)
|
|
(65
|
)
|
||
Other – net
|
16
|
|
|
9
|
|
||
Net cash provided by (used for) investing activities
|
(800
|
)
|
|
(93
|
)
|
||
|
|
|
|
||||
Cash flow from financing activities:
|
|
|
|
|
|
||
Dividends paid
|
(467
|
)
|
|
(452
|
)
|
||
Common stock issued, including treasury shares reissued
|
149
|
|
|
(19
|
)
|
||
Common shares repurchased
|
(500
|
)
|
|
—
|
|
||
Proceeds from debt issued (original maturities greater than three months):
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
—
|
|
|
360
|
|
||
Financial Products
|
1,541
|
|
|
2,355
|
|
||
Payments on debt (original maturities greater than three months):
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
(1
|
)
|
|
(4
|
)
|
||
Financial Products
|
(2,408
|
)
|
|
(1,974
|
)
|
||
Short-term borrowings – net (original maturities three months or less)
|
1,151
|
|
|
618
|
|
||
Other – net
|
(3
|
)
|
|
(6
|
)
|
||
Net cash provided by (used for) financing activities
|
(538
|
)
|
|
878
|
|
||
Effect of exchange rate changes on cash
|
10
|
|
|
9
|
|
||
Increase (decrease) in cash and short-term investments and restricted cash
|
(393
|
)
|
|
2,336
|
|
||
Cash and short-term investments and restricted cash at beginning of period
|
8,320
|
|
|
7,199
|
|
||
Cash and short-term investments and restricted cash at end of period
|
$
|
7,927
|
|
|
$
|
9,535
|
|
1.
|
A. Nature of operations
|
|
|
|
|
|
|
||||
(Millions of dollars)
|
|
March 31, 2018
|
|
December 31, 2017
|
|
||||
Receivables - trade and other
|
|
$
|
30
|
|
|
$
|
34
|
|
|
Receivables - finance
|
|
43
|
|
|
42
|
|
|
||
Long-term receivables - finance
|
|
34
|
|
|
38
|
|
|
||
Investments in unconsolidated affiliated companies
|
|
30
|
|
|
39
|
|
|
||
Guarantees
1
|
|
—
|
|
|
259
|
|
|
||
Total
|
|
$
|
137
|
|
|
$
|
412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of Financial Position
|
|
|
|
|
|
|
||||||
(Millions of dollars)
|
|
Balance as of December 31, 2017
|
|
Cumulative Impact from Adopting New Revenue Guidance
|
|
Balance as of January 1, 2018
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Receivables - trade and other
|
|
$
|
7,436
|
|
|
$
|
(66
|
)
|
|
$
|
7,370
|
|
Prepaid expenses and other current assets
|
|
$
|
1,772
|
|
|
$
|
327
|
|
|
$
|
2,099
|
|
Inventories
|
|
$
|
10,018
|
|
|
$
|
4
|
|
|
$
|
10,022
|
|
Property, plant and equipment - net
|
|
$
|
14,155
|
|
|
$
|
(190
|
)
|
|
$
|
13,965
|
|
Noncurrent deferred and refundable income taxes
|
|
$
|
1,693
|
|
|
$
|
2
|
|
|
$
|
1,695
|
|
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
||||||
Accrued expenses
|
|
$
|
3,220
|
|
|
$
|
226
|
|
|
$
|
3,446
|
|
Customer advances
|
|
$
|
1,426
|
|
|
$
|
46
|
|
|
$
|
1,472
|
|
Other current liabilities
|
|
$
|
1,742
|
|
|
$
|
(17
|
)
|
|
$
|
1,725
|
|
Other liabilities
|
|
$
|
4,053
|
|
|
$
|
(166
|
)
|
|
$
|
3,887
|
|
|
|
|
|
|
|
|
||||||
Shareholders' equity
|
|
|
|
|
|
|
||||||
Profit employed in the business
|
|
$
|
26,301
|
|
|
$
|
(12
|
)
|
|
$
|
26,289
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2018
|
||||||||||
(Millions of dollars)
|
|
As Reported
|
|
Previous Accounting Guidance
|
|
Impact from Adopting New Revenue Guidance
|
||||||
Consolidated Statement of Results of Operations
|
|
|
|
|
|
|
||||||
Sales of Machinery, Energy & Transportation
|
|
$
|
12,150
|
|
|
$
|
12,145
|
|
|
$
|
5
|
|
Cost of goods sold
|
|
$
|
8,566
|
|
|
$
|
8,560
|
|
|
$
|
6
|
|
Other operating (income) expenses
|
|
$
|
300
|
|
|
$
|
306
|
|
|
$
|
(6
|
)
|
Operating profit
|
|
$
|
2,108
|
|
|
$
|
2,103
|
|
|
$
|
5
|
|
Consolidated profit before taxes
|
|
$
|
2,134
|
|
|
$
|
2,129
|
|
|
$
|
5
|
|
Provision (benefit) for income taxes
|
|
$
|
472
|
|
|
$
|
471
|
|
|
$
|
1
|
|
Profit (loss) of consolidated companies
|
|
$
|
1,662
|
|
|
$
|
1,658
|
|
|
$
|
4
|
|
Profit (loss) of consolidated and affiliated companies
|
|
$
|
1,667
|
|
|
$
|
1,663
|
|
|
$
|
4
|
|
Profit
|
|
$
|
1,665
|
|
|
$
|
1,661
|
|
|
$
|
4
|
|
|
|
|
|
|
|
|
||||||
Consolidated Statement of Financial Position
|
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Receivables - trade and other
|
|
$
|
7,894
|
|
|
$
|
7,907
|
|
|
$
|
(13
|
)
|
Prepaid expenses and other current assets
|
|
$
|
1,856
|
|
|
$
|
1,568
|
|
|
$
|
288
|
|
Inventories
|
|
$
|
10,947
|
|
|
$
|
10,956
|
|
|
$
|
(9
|
)
|
Noncurrent deferred and refundable income taxes
|
|
$
|
1,687
|
|
|
$
|
1,686
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
||||||
Accrued expenses
|
|
$
|
3,551
|
|
|
$
|
3,325
|
|
|
$
|
226
|
|
Customer advances
|
|
$
|
1,399
|
|
|
$
|
1,350
|
|
|
$
|
49
|
|
|
|
|
|
|
|
|
||||||
Shareholders' equity
|
|
|
|
|
|
|
||||||
Profit employed in the business
|
|
$
|
27,929
|
|
|
$
|
27,937
|
|
|
$
|
(8
|
)
|
|
|
|
|
|
|
|
Consolidated Statement of Results of Operations
|
Three Months Ended March 31, 2017
|
||||||||||
(Millions of dollars)
|
As Revised
|
|
Previously Reported
|
|
Effect of Change
|
||||||
Cost of goods sold
|
$
|
6,801
|
|
|
$
|
6,758
|
|
|
$
|
43
|
|
Selling, general and administrative expenses
|
$
|
1,061
|
|
|
$
|
1,045
|
|
|
$
|
16
|
|
Research and development expenses
|
$
|
425
|
|
|
$
|
418
|
|
|
$
|
7
|
|
Other operating (income) expenses
|
$
|
996
|
|
|
$
|
1,025
|
|
|
$
|
(29
|
)
|
Total operating costs
|
$
|
9,442
|
|
|
$
|
9,405
|
|
|
$
|
37
|
|
Operating profit
|
$
|
380
|
|
|
$
|
417
|
|
|
$
|
(37
|
)
|
Other income (expense)
|
$
|
32
|
|
|
$
|
(5
|
)
|
|
$
|
37
|
|
|
|
|
|
|
|
3.
|
Sales and revenue recognition
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended March 31, 2018
|
|
Three Months Ended March 31, 2017
|
||||||||||||||||||
|
Shares Granted
|
|
Weighted-Average Fair Value Per Share
|
|
Weighted-Average Grant Date Stock Price
|
|
Shares Granted
|
|
Weighted-Average Fair Value Per Share
|
|
Weighted-Average Grant Date Stock Price
|
||||||||||
Stock options
|
1,566,788
|
|
|
$
|
46.18
|
|
|
$
|
151.12
|
|
|
2,701,644
|
|
|
$
|
25.01
|
|
|
$
|
95.66
|
|
RSUs
|
676,228
|
|
|
$
|
151.12
|
|
|
$
|
151.12
|
|
|
906,068
|
|
|
$
|
89.76
|
|
|
$
|
95.63
|
|
PRSUs
|
339,559
|
|
|
$
|
151.12
|
|
|
$
|
151.12
|
|
|
437,385
|
|
|
$
|
86.78
|
|
|
$
|
95.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Millions of dollars)
|
Consolidated Statement of Financial
|
|
Asset (Liability) Fair Value
|
||||||
|
Position Location
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
Designated derivatives
|
|
|
|
|
|
||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
Receivables – trade and other
|
|
$
|
24
|
|
|
$
|
8
|
|
Machinery, Energy & Transportation
|
Long-term receivables – trade and other
|
|
13
|
|
|
4
|
|
||
Machinery, Energy & Transportation
|
Accrued expenses
|
|
(4
|
)
|
|
(14
|
)
|
||
Machinery, Energy & Transportation
|
Other liabilities
|
|
—
|
|
|
(2
|
)
|
||
Financial Products
|
Long-term receivables – trade and other
|
|
1
|
|
|
7
|
|
||
Financial Products
|
Accrued expenses
|
|
(94
|
)
|
|
(57
|
)
|
||
Interest rate contracts
|
|
|
|
|
|
|
|||
Financial Products
|
Long-term receivables – trade and other
|
|
2
|
|
|
3
|
|
||
Financial Products
|
Accrued expenses
|
|
(3
|
)
|
|
(2
|
)
|
||
|
|
|
$
|
(61
|
)
|
|
$
|
(53
|
)
|
Undesignated derivatives
|
|
|
|
|
|
|
|
||
Foreign exchange contracts
|
|
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
Receivables – trade and other
|
|
$
|
19
|
|
|
$
|
19
|
|
Machinery, Energy & Transportation
|
Accrued expenses
|
|
(3
|
)
|
|
(9
|
)
|
||
Financial Products
|
Receivables – trade and other
|
|
14
|
|
|
12
|
|
||
Financial Products
|
Accrued expenses
|
|
(19
|
)
|
|
(9
|
)
|
||
Commodity contracts
|
|
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
Receivables – trade and other
|
|
9
|
|
|
21
|
|
||
Machinery, Energy & Transportation
|
Accrued expenses
|
|
(3
|
)
|
|
—
|
|
||
|
|
|
$
|
17
|
|
|
$
|
34
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Millions of dollars)
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
|
|
|
|
|
||||
Machinery, Energy & Transportation
|
|
$
|
2,683
|
|
|
$
|
3,190
|
|
Financial Products
|
|
$
|
5,360
|
|
|
$
|
3,691
|
|
|
|
|
|
|
Fair Value Hedges
|
|
|
|
|
|
|
||||||||||||
|
|
|
Three Months Ended
March 31, 2018 |
|
Three Months Ended
March 31, 2017 |
|
||||||||||||
(Millions of dollars)
|
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)
|
|
$
|
(2
|
)
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
|
|
|
$
|
(2
|
)
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash Flow Hedges
|
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended March 31, 2018
|
|
||||||||||||
|
|
|
Recognized in Earnings
|
|
||||||||||
(Millions of dollars)
|
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, Energy & Transportation
|
$
|
39
|
|
|
Other income (expense)
|
|
$
|
1
|
|
|
$
|
—
|
|
|
Financial Products
|
(33
|
)
|
|
Other income (expense)
|
|
(29
|
)
|
|
—
|
|
|
|||
Financial Products
|
—
|
|
|
Interest expense of Financial Products
|
|
3
|
|
|
—
|
|
|
|||
Interest rate contracts
|
|
|
|
|
|
|
|
|
||||||
Machinery, Energy & Transportation
|
—
|
|
|
Interest expense excluding Financial Products
|
|
—
|
|
|
—
|
|
|
|||
Financial Products
|
—
|
|
|
Interest expense of Financial Products
|
|
1
|
|
|
—
|
|
|
|||
|
$
|
6
|
|
|
|
|
$
|
(24
|
)
|
|
$
|
—
|
|
|
|
Three Months Ended March 31, 2017
|
|
||||||||||||
|
|
|
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, Energy & Transportation
|
$
|
33
|
|
|
Other income (expense)
|
|
$
|
(39
|
)
|
|
$
|
—
|
|
|
Financial Products
|
(18
|
)
|
|
Other income (expense)
|
|
(22
|
)
|
|
—
|
|
|
|||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
—
|
|
|
Interest expense excluding Financial Products
|
|
(2
|
)
|
|
—
|
|
|
|||
Financial Products
|
—
|
|
|
Interest expense of Financial Products
|
|
1
|
|
|
—
|
|
|
|||
|
$
|
15
|
|
|
|
|
$
|
(62
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
(Millions of dollars)
|
Classification of Gains (Losses)
|
|
Three Months Ended
March 31, 2018 |
|
Three Months Ended
March 31, 2017 |
||||
Foreign exchange contracts
|
|
|
|
|
|
||||
Machinery, Energy & Transportation
|
Other income (expense)
|
|
$
|
16
|
|
|
$
|
13
|
|
Financial Products
|
Other income (expense)
|
|
(7
|
)
|
|
(7
|
)
|
||
Commodity contracts
|
|
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
Other income (expense)
|
|
(9
|
)
|
|
1
|
|
||
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
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, Energy & Transportation
|
|
$
|
65
|
|
|
$
|
—
|
|
|
$
|
65
|
|
|
$
|
(9
|
)
|
|
$
|
—
|
|
|
$
|
56
|
|
Financial Products
|
|
17
|
|
|
—
|
|
|
17
|
|
|
(4
|
)
|
|
—
|
|
|
13
|
|
||||||
Total
|
|
$
|
82
|
|
|
$
|
—
|
|
|
$
|
82
|
|
|
$
|
(13
|
)
|
|
$
|
—
|
|
|
$
|
69
|
|
March 31, 2018
|
|
|
|
|
|
|
|
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, Energy & Transportation
|
|
$
|
(10
|
)
|
|
$
|
—
|
|
|
$
|
(10
|
)
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
Financial Products
|
|
(116
|
)
|
|
—
|
|
|
(116
|
)
|
|
4
|
|
|
—
|
|
|
(112
|
)
|
||||||
Total
|
|
$
|
(126
|
)
|
|
$
|
—
|
|
|
$
|
(126
|
)
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
(113
|
)
|
December 31, 2017
|
|
|
|
|
|
|
|
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, Energy & Transportation
|
|
$
|
52
|
|
|
$
|
—
|
|
|
$
|
52
|
|
|
$
|
(22
|
)
|
|
$
|
—
|
|
|
$
|
30
|
|
Financial Products
|
|
22
|
|
|
—
|
|
|
22
|
|
|
(10
|
)
|
|
—
|
|
|
12
|
|
||||||
Total
|
|
$
|
74
|
|
|
$
|
—
|
|
|
$
|
74
|
|
|
$
|
(32
|
)
|
|
$
|
—
|
|
|
$
|
42
|
|
December 31, 2017
|
|
|
|
|
|
|
|
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, Energy & Transportation
|
|
$
|
(25
|
)
|
|
$
|
—
|
|
|
$
|
(25
|
)
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
Financial Products
|
|
(68
|
)
|
|
—
|
|
|
(68
|
)
|
|
10
|
|
|
—
|
|
|
(58
|
)
|
||||||
Total
|
|
$
|
(93
|
)
|
|
$
|
—
|
|
|
$
|
(93
|
)
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
(61
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Millions of dollars)
|
March 31,
2018 |
|
December 31,
2017 |
||||
Raw materials
|
$
|
3,179
|
|
|
$
|
2,802
|
|
Work-in-process
|
2,465
|
|
|
2,254
|
|
||
Finished goods
|
5,114
|
|
|
4,761
|
|
||
Supplies
|
189
|
|
|
201
|
|
||
Total inventories
|
$
|
10,947
|
|
|
$
|
10,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
March 31, 2018
|
||||||||||
(Millions of dollars)
|
Weighted
Amortizable
Life (Years)
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
||||||
Customer relationships
|
15
|
|
$
|
2,527
|
|
|
$
|
(1,159
|
)
|
|
$
|
1,368
|
|
Intellectual property
|
11
|
|
1,569
|
|
|
(878
|
)
|
|
691
|
|
|||
Other
|
13
|
|
197
|
|
|
(93
|
)
|
|
104
|
|
|||
Total finite-lived intangible assets
|
14
|
|
$
|
4,293
|
|
|
$
|
(2,130
|
)
|
|
$
|
2,163
|
|
|
|
|
December 31, 2017
|
||||||||||
|
Weighted
Amortizable
Life (Years)
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
||||||
Customer relationships
|
15
|
|
$
|
2,441
|
|
|
$
|
(1,122
|
)
|
|
$
|
1,319
|
|
Intellectual property
|
11
|
|
1,538
|
|
|
(851
|
)
|
|
687
|
|
|||
Other
|
13
|
|
198
|
|
|
(93
|
)
|
|
105
|
|
|||
Total finite-lived intangible assets
|
14
|
|
$
|
4,177
|
|
|
$
|
(2,066
|
)
|
|
$
|
2,111
|
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
Remaining Nine Months of 2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
Thereafter
|
$251
|
|
$328
|
|
$317
|
|
$299
|
|
$279
|
|
$689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(Millions of dollars)
|
|
December 31,
2017 |
|
Acquisitions
1
|
|
Other Adjustments
2
|
|
March 31,
2018 |
||||||||
Construction Industries
|
|
|
|
|
|
|
|
|
|
|||||||
Goodwill
|
|
$
|
305
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
313
|
|
Impairments
|
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
||||
Net goodwill
|
|
283
|
|
|
—
|
|
|
8
|
|
|
291
|
|
||||
Resource Industries
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
4,232
|
|
|
—
|
|
|
24
|
|
|
4,256
|
|
||||
Impairments
|
|
(1,175
|
)
|
|
—
|
|
|
—
|
|
|
(1,175
|
)
|
||||
Net goodwill
|
|
3,057
|
|
|
—
|
|
|
24
|
|
|
3,081
|
|
||||
Energy & Transportation
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
2,806
|
|
|
124
|
|
|
16
|
|
|
2,946
|
|
||||
All Other
3
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
54
|
|
|
—
|
|
|
4
|
|
|
58
|
|
||||
Consolidated total
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
7,397
|
|
|
124
|
|
|
52
|
|
|
7,573
|
|
||||
Impairments
|
|
(1,197
|
)
|
|
—
|
|
|
—
|
|
|
(1,197
|
)
|
||||
Net goodwill
|
|
$
|
6,200
|
|
|
$
|
124
|
|
|
$
|
52
|
|
|
$
|
6,376
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2018
|
||||||
(Millions of dollars)
|
Cost Basis
|
|
Fair Value
|
||||
Due in one year or less
|
$
|
127
|
|
|
$
|
127
|
|
Due after one year through five years
|
513
|
|
|
506
|
|
||
Due after five years through ten years
|
117
|
|
|
115
|
|
||
Due after ten years
|
19
|
|
|
19
|
|
||
U.S. governmental agency mortgage-backed securities
|
292
|
|
|
285
|
|
||
Residential mortgage-backed securities
|
8
|
|
|
8
|
|
||
Commercial mortgage-backed securities
|
17
|
|
|
16
|
|
||
Total debt securities – available-for-sale
|
$
|
1,093
|
|
|
$
|
1,076
|
|
|
|
|
|
|
|
|
|
U.S. Pension
Benefits
|
|
Non-U.S. Pension
Benefits
|
|
Other
Postretirement
Benefits
|
||||||||||||||||||
(Millions of dollars)
|
March 31
|
|
March 31
|
|
March 31
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
For the three months ended:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Components of net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
32
|
|
|
$
|
29
|
|
|
$
|
22
|
|
|
$
|
23
|
|
|
$
|
21
|
|
|
$
|
19
|
|
Interest cost
|
133
|
|
|
131
|
|
|
25
|
|
|
25
|
|
|
31
|
|
|
33
|
|
||||||
Expected return on plan assets
|
(202
|
)
|
|
(184
|
)
|
|
(56
|
)
|
|
(57
|
)
|
|
(8
|
)
|
|
(9
|
)
|
||||||
Amortization of prior service cost (credit)
1
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
(5
|
)
|
||||||
Curtailments and termination benefits
|
—
|
|
|
9
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic benefit cost (benefit)
2
|
$
|
(37
|
)
|
|
$
|
(15
|
)
|
|
$
|
(9
|
)
|
|
$
|
11
|
|
|
$
|
35
|
|
|
$
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted-average assumptions used to determine net cost:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Discount rate used to measure service cost
|
3.7
|
%
|
|
4.2
|
%
|
|
2.3
|
%
|
|
2.3
|
%
|
|
3.5
|
%
|
|
3.9
|
%
|
||||||
Discount rate used to measure interest cost
|
3.2
|
%
|
|
3.3
|
%
|
|
2.2
|
%
|
|
2.3
|
%
|
|
3.2
|
%
|
|
3.3
|
%
|
||||||
Expected rate of return on plan assets
|
6.3
|
%
|
|
6.7
|
%
|
|
5.2
|
%
|
|
5.9
|
%
|
|
7.5
|
%
|
|
7.5
|
%
|
||||||
Rate of compensation increase
|
4.0
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
4.6
|
%
|
|
4.0
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Prior service cost (credit) for both pension and other postretirement benefits is generally amortized using the straight-line method over the average remaining service period of active 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) is amortized using the straight-line method over the remaining life expectancy of those participants.
|
2
|
The service cost component of net periodic pension and other postretirement benefits cost (benefit) is included in Operating costs in the Consolidated Statement of Results of Operations. All other components of net periodic pension and other postretirement benefits cost (benefit) are included in Other income (expense) in the Consolidated Statement of Results of Operations.
|
|
|
|
|
|
|
|
|
|
||||
|
Three Months Ended
March 31 |
||||||
(Millions of dollars)
|
2018
|
|
2017
|
||||
U.S. Plans
|
$
|
73
|
|
|
$
|
80
|
|
Non-U.S. Plans
|
22
|
|
|
16
|
|
||
|
$
|
95
|
|
|
$
|
96
|
|
|
|
|
|
(Millions of dollars)
|
March 31,
2018 |
|
December 31,
2017 |
||||
Caterpillar dealer performance guarantees
|
$
|
1,341
|
|
|
$
|
1,313
|
|
Customer loan guarantees
|
27
|
|
|
40
|
|
||
Supplier consortium performance guarantees
|
574
|
|
|
565
|
|
||
Third party logistics business lease guarantees
|
69
|
|
|
69
|
|
||
Other guarantees
|
123
|
|
|
118
|
|
||
Total guarantees
|
$
|
2,134
|
|
|
$
|
2,105
|
|
|
|
|
|
(Millions of dollars)
|
2018
|
||
Warranty liability, January 1
|
$
|
1,419
|
|
Reduction in liability (payments)
|
(175
|
)
|
|
Increase in liability (new warranties)
|
174
|
|
|
Warranty liability, March 31
|
$
|
1,418
|
|
|
|
|
(Millions of dollars)
|
2017
|
||
Warranty liability, January 1
|
$
|
1,258
|
|
Reduction in liability (payments)
|
(860
|
)
|
|
Increase in liability (new warranties)
|
1,021
|
|
|
Warranty liability, December 31
|
$
|
1,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A.
|
Basis for segment information
|
B.
|
Description of segments
|
C.
|
Segment measurement and reconciliations
|
•
|
Machinery, Energy & Transportation 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, Energy & Transportation operating leases is included in segment assets. The estimated financing component of the lease payments is excluded.
|
•
|
Currency exposures for Machinery, Energy & Transportation 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 is reported as a methodology difference.
|
•
|
Stock-based compensation expense is not included in segment profit.
|
•
|
Postretirement benefit expenses are split; segments are generally responsible for service costs, with the remaining elements of net periodic benefit cost included as a methodology difference.
|
•
|
Machinery, Energy & Transportation segment profit is determined on a pretax basis and excludes interest expense 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 primarily for compliance and legal functions for the benefit of the entire organization.
|
•
|
Restructuring costs:
Primarily costs for employee separation, long-lived asset impairments and contract terminations. These costs are included in Other operating (income) expenses except for defined-benefit plan curtailment losses and special termination benefits, which are included in Other income (expense). Restructuring costs also include other exit-related costs primarily for accelerated depreciation, inventory write-downs, equipment relocation and project management costs and LIFO inventory decrement benefits from inventory liquidations at closed facilities, primarily included in Cost of goods sold. A table, Reconciliation of Restructuring costs on page 36, has been included to illustrate how segment profit would have been impacted by the restructuring costs. See Note 18 for more information.
|
•
|
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. For example, certain costs are reported on the cash basis for segment reporting and the accrual basis for consolidated external reporting.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Reportable Segments
|
|||||||||||||||||||||||||||
Three Months Ended March 31
|
|||||||||||||||||||||||||||
(Millions of dollars)
|
|||||||||||||||||||||||||||
|
2018
|
||||||||||||||||||||||||||
|
External
sales and
revenues
|
|
Inter-
segment
sales and
revenues
|
|
Total sales
and
revenues
|
|
Depreciation
and
amortization
|
|
Segment
profit
|
|
Segment
assets at
March 31
|
|
Capital
expenditures
|
||||||||||||||
Construction Industries
|
$
|
5,659
|
|
|
$
|
18
|
|
|
$
|
5,677
|
|
|
$
|
89
|
|
|
$
|
1,117
|
|
|
$
|
4,961
|
|
|
$
|
42
|
|
Resource Industries
|
2,208
|
|
|
101
|
|
|
2,309
|
|
|
116
|
|
|
378
|
|
|
6,172
|
|
|
23
|
|
|||||||
Energy & Transportation
|
4,276
|
|
|
943
|
|
|
5,219
|
|
|
158
|
|
|
874
|
|
|
8,119
|
|
|
162
|
|
|||||||
Machinery, Energy & Transportation
|
$
|
12,143
|
|
|
$
|
1,062
|
|
|
$
|
13,205
|
|
|
$
|
363
|
|
|
$
|
2,369
|
|
|
$
|
19,252
|
|
|
$
|
227
|
|
Financial Products Segment
|
793
|
|
1
|
—
|
|
|
793
|
|
|
203
|
|
|
141
|
|
|
35,332
|
|
|
361
|
|
|||||||
Total
|
$
|
12,936
|
|
|
$
|
1,062
|
|
|
$
|
13,998
|
|
|
$
|
566
|
|
|
$
|
2,510
|
|
|
$
|
54,584
|
|
|
$
|
588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
2017
|
||||||||||||||||||||||||||
|
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
|
$
|
4,091
|
|
|
$
|
9
|
|
|
$
|
4,100
|
|
|
$
|
102
|
|
|
$
|
634
|
|
|
$
|
4,838
|
|
|
$
|
21
|
|
Resource Industries
|
1,670
|
|
|
91
|
|
|
1,761
|
|
|
127
|
|
|
160
|
|
|
6,403
|
|
|
21
|
|
|||||||
Energy & Transportation
|
3,356
|
|
|
780
|
|
|
4,136
|
|
|
158
|
|
|
545
|
|
|
7,564
|
|
|
116
|
|
|||||||
Machinery, Energy & Transportation
|
$
|
9,117
|
|
|
$
|
880
|
|
|
$
|
9,997
|
|
|
$
|
387
|
|
|
$
|
1,339
|
|
|
$
|
18,805
|
|
|
$
|
158
|
|
Financial Products Segment
|
760
|
|
1
|
—
|
|
|
760
|
|
|
208
|
|
|
183
|
|
|
34,893
|
|
|
271
|
|
|||||||
Total
|
$
|
9,877
|
|
|
$
|
880
|
|
|
$
|
10,757
|
|
|
$
|
595
|
|
|
$
|
1,522
|
|
|
$
|
53,698
|
|
|
$
|
429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Revenues by Geographic Region
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Millions of dollars)
|
|
North
America |
|
Latin
America |
|
EAME
|
|
Asia/
Pacific |
|
External Sales and Revenues
|
||||||||||
First Quarter 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction Industries
|
|
$
|
2,620
|
|
|
$
|
344
|
|
|
$
|
1,067
|
|
|
$
|
1,628
|
|
|
$
|
5,659
|
|
Resource Industries
|
|
798
|
|
|
360
|
|
|
520
|
|
|
530
|
|
|
2,208
|
|
|||||
Energy & Transportation
|
|
2,225
|
|
|
280
|
|
|
1,092
|
|
|
679
|
|
|
4,276
|
|
|||||
All Other operating segments
|
|
15
|
|
|
—
|
|
|
4
|
|
|
18
|
|
|
37
|
|
|||||
Corporate Items and Eliminations
|
|
(28
|
)
|
|
1
|
|
|
(3
|
)
|
|
—
|
|
|
(30
|
)
|
|||||
Machinery, Energy & Transportation Sales
|
|
5,630
|
|
|
985
|
|
|
2,680
|
|
|
2,855
|
|
|
12,150
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Products Segment
|
|
512
|
|
|
74
|
|
|
101
|
|
|
106
|
|
|
793
|
|
|||||
Corporate Items and Eliminations
|
|
(49
|
)
|
|
(13
|
)
|
|
(5
|
)
|
|
(17
|
)
|
|
(84
|
)
|
|||||
Financial Products Revenues
|
|
463
|
|
|
61
|
|
|
96
|
|
|
89
|
|
|
709
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Sales and Revenues
|
|
$
|
6,093
|
|
|
$
|
1,046
|
|
|
$
|
2,776
|
|
|
$
|
2,944
|
|
|
$
|
12,859
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy & Transportation External Sales
|
|
|
||
(Millions of dollars)
|
|
Three Months Ended March 31, 2018
|
||
Oil and gas
|
|
$
|
1,215
|
|
Power generation
|
|
969
|
|
|
Industrial
|
|
906
|
|
|
Transportation
|
|
1,186
|
|
|
Energy & Transportation External Sales
|
|
$
|
4,276
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Sales and revenues:
|
|
|
|
|
|
|
|
||||||||
(Millions of dollars)
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||
Three Months Ended March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total external sales and revenues from reportable segments
|
$
|
9,117
|
|
|
$
|
760
|
|
|
$
|
—
|
|
|
$
|
9,877
|
|
All Other operating segments
|
37
|
|
|
—
|
|
|
—
|
|
|
37
|
|
||||
Other
|
(24
|
)
|
|
17
|
|
|
(85
|
)
|
1
|
(92
|
)
|
||||
Total sales and revenues
|
$
|
9,130
|
|
|
$
|
777
|
|
|
$
|
(85
|
)
|
|
$
|
9,822
|
|
1
Elimination of Financial Products revenues from Machinery, Energy & Transportation.
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Consolidated profit before taxes:
|
|
|
|
|
|
||||||
(Millions of dollars)
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidated
Total
|
||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
||||||
Total profit from reportable segments
|
$
|
2,369
|
|
|
$
|
141
|
|
|
$
|
2,510
|
|
All Other operating segments
|
57
|
|
|
—
|
|
|
57
|
|
|||
Cost centers
|
27
|
|
|
—
|
|
|
27
|
|
|||
Corporate costs
|
(168
|
)
|
|
—
|
|
|
(168
|
)
|
|||
Timing
|
(84
|
)
|
|
—
|
|
|
(84
|
)
|
|||
Restructuring costs
|
(69
|
)
|
|
—
|
|
|
(69
|
)
|
|||
Methodology differences:
|
|
|
|
|
|
|
|
||||
Inventory/cost of sales
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
|||
Postretirement benefit expense
|
87
|
|
|
—
|
|
|
87
|
|
|||
Stock-based compensation expense
|
(48
|
)
|
|
(2
|
)
|
|
(50
|
)
|
|||
Financing costs
|
(78
|
)
|
|
—
|
|
|
(78
|
)
|
|||
Currency
|
3
|
|
|
—
|
|
|
3
|
|
|||
Other income/expense methodology differences
|
(78
|
)
|
|
—
|
|
|
(78
|
)
|
|||
Other methodology differences
|
(13
|
)
|
|
(2
|
)
|
|
(15
|
)
|
|||
Total consolidated profit before taxes
|
$
|
1,997
|
|
|
$
|
137
|
|
|
$
|
2,134
|
|
|
|
|
|
|
|
||||||
Three Months Ended March 31, 2017
|
|
|
|
|
|
|
|
|
|||
Total profit from reportable segments
|
$
|
1,339
|
|
|
$
|
183
|
|
|
$
|
1,522
|
|
All Other operating segments
|
(14
|
)
|
|
—
|
|
|
(14
|
)
|
|||
Cost centers
|
7
|
|
|
—
|
|
|
7
|
|
|||
Corporate costs
|
(115
|
)
|
|
—
|
|
|
(115
|
)
|
|||
Timing
|
(38
|
)
|
|
—
|
|
|
(38
|
)
|
|||
Restructuring costs
|
(751
|
)
|
|
(1
|
)
|
|
(752
|
)
|
|||
Methodology differences:
|
|
|
|
|
—
|
|
|||||
Inventory/cost of sales
|
(68
|
)
|
|
—
|
|
|
(68
|
)
|
|||
Postretirement benefit expense
|
47
|
|
|
—
|
|
|
47
|
|
|||
Stock-based compensation expense
|
(47
|
)
|
|
(2
|
)
|
|
(49
|
)
|
|||
Financing costs
|
(130
|
)
|
|
—
|
|
|
(130
|
)
|
|||
Currency
|
(39
|
)
|
|
—
|
|
|
(39
|
)
|
|||
Other income/expense methodology differences
|
(55
|
)
|
|
—
|
|
|
(55
|
)
|
|||
Other methodology differences
|
(31
|
)
|
|
4
|
|
|
(27
|
)
|
|||
Total consolidated profit before taxes
|
$
|
105
|
|
|
$
|
184
|
|
|
$
|
289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Assets:
|
|
|
|
|
|
|
|
||||||||
(Millions of dollars)
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||
March 31, 2018
|
|
|
|
|
|
|
|
||||||||
Total assets from reportable segments
|
$
|
19,252
|
|
|
$
|
35,332
|
|
|
$
|
—
|
|
|
$
|
54,584
|
|
All Other operating segments
|
1,342
|
|
|
—
|
|
|
—
|
|
|
1,342
|
|
||||
Items not included in segment assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and short-term investments
|
7,034
|
|
|
—
|
|
|
—
|
|
|
7,034
|
|
||||
Intercompany receivables
|
1,630
|
|
|
—
|
|
|
(1,630
|
)
|
|
—
|
|
||||
Investment in Financial Products
|
4,225
|
|
|
—
|
|
|
(4,225
|
)
|
|
—
|
|
||||
Deferred income taxes
|
2,116
|
|
|
—
|
|
|
(537
|
)
|
|
1,579
|
|
||||
Goodwill and intangible assets
|
4,572
|
|
|
—
|
|
|
—
|
|
|
4,572
|
|
||||
Property, plant and equipment – net and other assets
|
2,261
|
|
|
—
|
|
|
—
|
|
|
2,261
|
|
||||
Operating lease methodology difference
|
(174
|
)
|
|
—
|
|
|
—
|
|
|
(174
|
)
|
||||
Inventory methodology differences
|
(2,214
|
)
|
|
—
|
|
|
—
|
|
|
(2,214
|
)
|
||||
Liabilities included in segment assets
|
9,657
|
|
|
—
|
|
|
—
|
|
|
9,657
|
|
||||
Other
|
(589
|
)
|
|
(8
|
)
|
|
(30
|
)
|
|
(627
|
)
|
||||
Total assets
|
$
|
49,112
|
|
|
$
|
35,324
|
|
|
$
|
(6,422
|
)
|
|
$
|
78,014
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total assets from reportable segments
|
$
|
18,805
|
|
|
$
|
34,893
|
|
|
$
|
—
|
|
|
$
|
53,698
|
|
All Other operating segments
|
1,312
|
|
|
—
|
|
|
—
|
|
|
1,312
|
|
||||
Items not included in segment assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and short-term investments
|
7,381
|
|
|
—
|
|
|
—
|
|
|
7,381
|
|
||||
Intercompany receivables
|
1,733
|
|
|
—
|
|
|
(1,733
|
)
|
|
—
|
|
||||
Investment in Financial Products
|
4,064
|
|
|
—
|
|
|
(4,064
|
)
|
|
—
|
|
||||
Deferred income taxes
|
2,166
|
|
|
—
|
|
|
(574
|
)
|
|
1,592
|
|
||||
Goodwill and intangible assets
|
4,210
|
|
|
—
|
|
|
—
|
|
|
4,210
|
|
||||
Property, plant and equipment – net and other assets
|
2,341
|
|
|
—
|
|
|
—
|
|
|
2,341
|
|
||||
Operating lease methodology difference
|
(191
|
)
|
|
—
|
|
|
—
|
|
|
(191
|
)
|
||||
Inventory methodology differences
|
(2,287
|
)
|
|
—
|
|
|
—
|
|
|
(2,287
|
)
|
||||
Liabilities included in segment assets
|
9,352
|
|
|
—
|
|
|
—
|
|
|
9,352
|
|
||||
Other
|
(399
|
)
|
|
(14
|
)
|
|
(33
|
)
|
|
(446
|
)
|
||||
Total assets
|
$
|
48,487
|
|
|
$
|
34,879
|
|
|
$
|
(6,404
|
)
|
|
$
|
76,962
|
|
|
|
|
|
|
|
|
|
Reconciliations of Depreciation and amortization:
|
|
|
|
|
|
||||||
(Millions of dollars)
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidated
Total
|
||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
||||||
Total depreciation and amortization from reportable segments
|
$
|
363
|
|
|
$
|
203
|
|
|
$
|
566
|
|
Items not included in segment depreciation and amortization:
|
|
|
|
|
|
|
|
|
|||
All Other operating segments
|
57
|
|
|
—
|
|
|
57
|
|
|||
Cost centers
|
31
|
|
|
—
|
|
|
31
|
|
|||
Other
|
17
|
|
|
10
|
|
|
27
|
|
|||
Total depreciation and amortization
|
$
|
468
|
|
|
$
|
213
|
|
|
$
|
681
|
|
|
|
|
|
|
|
||||||
Three Months Ended March 31, 2017
|
|
|
|
|
|
|
|
|
|||
Total depreciation and amortization from reportable segments
|
$
|
387
|
|
|
$
|
208
|
|
|
$
|
595
|
|
Items not included in segment depreciation and amortization:
|
|
|
|
|
|
|
|
|
|||
All Other operating segments
|
54
|
|
|
—
|
|
|
54
|
|
|||
Cost centers
|
35
|
|
|
—
|
|
|
35
|
|
|||
Other
|
15
|
|
|
11
|
|
|
26
|
|
|||
Total depreciation and amortization
|
$
|
491
|
|
|
$
|
219
|
|
|
$
|
710
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of Capital expenditures:
|
|
|
|
|
|
|
|
||||||||
(Millions of dollars)
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total capital expenditures from reportable segments
|
$
|
227
|
|
|
$
|
361
|
|
|
$
|
—
|
|
|
$
|
588
|
|
Items not included in segment capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
||||
All Other operating segments
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||
Cost centers
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||
Timing
|
175
|
|
|
—
|
|
|
—
|
|
|
175
|
|
||||
Other
|
(104
|
)
|
|
77
|
|
|
(4
|
)
|
|
(31
|
)
|
||||
Total capital expenditures
|
$
|
323
|
|
|
$
|
438
|
|
|
$
|
(4
|
)
|
|
$
|
757
|
|
|
|
|
|
|
|
|
|
||||||||
Three Months Ended March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total capital expenditures from reportable segments
|
$
|
158
|
|
|
$
|
271
|
|
|
$
|
—
|
|
|
$
|
429
|
|
Items not included in segment capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
||||
All Other operating segments
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
||||
Cost centers
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||
Timing
|
88
|
|
|
—
|
|
|
—
|
|
|
88
|
|
||||
Other
|
(66
|
)
|
|
32
|
|
|
(3
|
)
|
|
(37
|
)
|
||||
Total capital expenditures
|
$
|
209
|
|
|
$
|
303
|
|
|
$
|
(3
|
)
|
|
$
|
509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
North America - Finance receivables originated in the United States or Canada.
|
•
|
Europe - Finance receivables originated in Europe, Africa, the Middle East and the Commonwealth of Independent States.
|
•
|
Asia Pacific - Finance receivables originated in Australia, New Zealand, China, Japan and Southeast Asia.
|
•
|
Mining - Finance receivables related to large mining customers worldwide and project financing in various countries.
|
•
|
Latin America - Finance receivables originated in Mexico, and Central and South American countries.
|
•
|
Caterpillar Power Finance - Finance receivables originated worldwide related to marine vessels with Caterpillar engines and Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems.
|
|
|
|
|
|
|
||||||
(Millions of dollars)
|
March 31, 2018
|
||||||||||
Allowance for Credit Losses:
|
Customer
|
|
Dealer
|
|
Total
|
||||||
Balance at beginning of year
|
$
|
353
|
|
|
$
|
9
|
|
|
$
|
362
|
|
Receivables written off
|
(40
|
)
|
|
—
|
|
|
(40
|
)
|
|||
Recoveries on receivables previously written off
|
10
|
|
|
—
|
|
|
10
|
|
|||
Provision for credit losses
|
66
|
|
|
—
|
|
|
66
|
|
|||
Other
|
1
|
|
|
—
|
|
|
1
|
|
|||
Balance at end of period
|
$
|
390
|
|
|
$
|
9
|
|
|
$
|
399
|
|
|
|
|
|
|
|
|
|
|
|||
Individually evaluated for impairment
|
$
|
194
|
|
|
$
|
—
|
|
|
$
|
194
|
|
Collectively evaluated for impairment
|
196
|
|
|
9
|
|
|
205
|
|
|||
Ending Balance
|
$
|
390
|
|
|
$
|
9
|
|
|
$
|
399
|
|
|
|
|
|
|
|
||||||
Recorded Investment in Finance Receivables:
|
|
|
|
|
|
|
|
|
|||
Individually evaluated for impairment
|
$
|
971
|
|
|
$
|
—
|
|
|
$
|
971
|
|
Collectively evaluated for impairment
|
18,164
|
|
|
3,367
|
|
|
21,531
|
|
|||
Ending Balance
|
$
|
19,135
|
|
|
$
|
3,367
|
|
|
$
|
22,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(Millions of dollars)
|
December 31, 2017
|
||||||||||
Allowance for Credit Losses:
|
Customer
|
|
Dealer
|
|
Total
|
||||||
Balance at beginning of year
|
$
|
331
|
|
|
$
|
10
|
|
|
$
|
341
|
|
Receivables written off
|
(157
|
)
|
|
—
|
|
|
(157
|
)
|
|||
Recoveries on receivables previously written off
|
43
|
|
|
—
|
|
|
43
|
|
|||
Provision for credit losses
|
129
|
|
|
(1
|
)
|
|
128
|
|
|||
Other
|
7
|
|
|
—
|
|
|
7
|
|
|||
Balance at end of year
|
$
|
353
|
|
|
$
|
9
|
|
|
$
|
362
|
|
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
$
|
149
|
|
|
$
|
—
|
|
|
$
|
149
|
|
Collectively evaluated for impairment
|
204
|
|
|
9
|
|
|
213
|
|
|||
Ending Balance
|
$
|
353
|
|
|
$
|
9
|
|
|
$
|
362
|
|
|
|
|
|
|
|
||||||
Recorded Investment in Finance Receivables:
|
|
|
|
|
|
|
|
|
|||
Individually evaluated for impairment
|
$
|
942
|
|
|
$
|
—
|
|
|
$
|
942
|
|
Collectively evaluated for impairment
|
18,226
|
|
|
3,464
|
|
|
21,690
|
|
|||
Ending Balance
|
$
|
19,168
|
|
|
$
|
3,464
|
|
|
$
|
22,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
March 31, 2018
|
||||||||||||||||||||||||||
(Millions of dollars)
|
31-60
Days
Past Due
|
|
61-90
Days
Past Due
|
|
91+
Days
Past Due
|
|
Total Past
Due
|
|
Current
|
|
Recorded Investment in Finance
Receivables
|
|
91+ Still
Accruing
|
||||||||||||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
North America
|
$
|
73
|
|
|
$
|
28
|
|
|
$
|
38
|
|
|
$
|
139
|
|
|
$
|
7,934
|
|
|
$
|
8,073
|
|
|
$
|
6
|
|
Europe
|
20
|
|
|
23
|
|
|
54
|
|
|
97
|
|
|
2,759
|
|
|
2,856
|
|
|
10
|
|
|||||||
Asia Pacific
|
23
|
|
|
11
|
|
|
13
|
|
|
47
|
|
|
2,114
|
|
|
2,161
|
|
|
6
|
|
|||||||
Mining
|
7
|
|
|
1
|
|
|
12
|
|
|
20
|
|
|
1,755
|
|
|
1,775
|
|
|
1
|
|
|||||||
Latin America
|
49
|
|
|
43
|
|
|
143
|
|
|
235
|
|
|
1,460
|
|
|
1,695
|
|
|
3
|
|
|||||||
Caterpillar Power Finance
|
41
|
|
|
57
|
|
|
209
|
|
|
307
|
|
|
2,268
|
|
|
2,575
|
|
|
28
|
|
|||||||
Dealer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,937
|
|
|
1,937
|
|
|
—
|
|
|||||||
Europe
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
191
|
|
|
191
|
|
|
—
|
|
|||||||
Asia Pacific
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
486
|
|
|
486
|
|
|
—
|
|
|||||||
Mining
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|||||||
Latin America
|
1
|
|
|
2
|
|
|
73
|
|
|
76
|
|
|
671
|
|
|
747
|
|
|
—
|
|
|||||||
Caterpillar Power Finance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|||||||
Total
|
$
|
214
|
|
|
$
|
165
|
|
|
$
|
542
|
|
|
$
|
921
|
|
|
$
|
21,581
|
|
|
$
|
22,502
|
|
|
$
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
December 31, 2017
|
||||||||||||||||||||||||||
(Millions of dollars)
|
31-60
Days
Past Due
|
|
61-90
Days
Past Due
|
|
91+
Days
Past Due
|
|
Total Past
Due
|
|
Current
|
|
Recorded Investment in Finance
Receivables
|
|
91+ Still
Accruing
|
||||||||||||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
North America
|
$
|
71
|
|
|
$
|
15
|
|
|
$
|
42
|
|
|
$
|
128
|
|
|
$
|
7,950
|
|
|
$
|
8,078
|
|
|
$
|
8
|
|
Europe
|
21
|
|
|
10
|
|
|
46
|
|
|
77
|
|
|
2,718
|
|
|
2,795
|
|
|
13
|
|
|||||||
Asia Pacific
|
13
|
|
|
7
|
|
|
14
|
|
|
34
|
|
|
2,009
|
|
|
2,043
|
|
|
5
|
|
|||||||
Mining
|
3
|
|
|
1
|
|
|
60
|
|
|
64
|
|
|
1,751
|
|
|
1,815
|
|
|
9
|
|
|||||||
Latin America
|
37
|
|
|
55
|
|
|
142
|
|
|
234
|
|
|
1,531
|
|
|
1,765
|
|
|
—
|
|
|||||||
Caterpillar Power Finance
|
20
|
|
|
32
|
|
|
144
|
|
|
196
|
|
|
2,476
|
|
|
2,672
|
|
|
1
|
|
|||||||
Dealer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
North America
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,920
|
|
|
1,920
|
|
|
—
|
|
|||||||
Europe
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
222
|
|
|
222
|
|
|
—
|
|
|||||||
Asia Pacific
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
553
|
|
|
553
|
|
|
—
|
|
|||||||
Mining
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|||||||
Latin America
|
—
|
|
|
72
|
|
|
—
|
|
|
72
|
|
|
691
|
|
|
763
|
|
|
—
|
|
|||||||
Caterpillar Power Finance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|||||||
Total
|
$
|
165
|
|
|
$
|
192
|
|
|
$
|
448
|
|
|
$
|
805
|
|
|
$
|
21,827
|
|
|
$
|
22,632
|
|
|
$
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
(Millions of dollars)
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
||||||||||||
Impaired Finance Receivables With No Allowance Recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
16
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
19
|
|
|
$
|
—
|
|
Europe
|
7
|
|
|
7
|
|
|
—
|
|
|
45
|
|
|
45
|
|
|
—
|
|
||||||
Asia Pacific
|
27
|
|
|
27
|
|
|
—
|
|
|
34
|
|
|
33
|
|
|
—
|
|
||||||
Mining
|
50
|
|
|
50
|
|
|
—
|
|
|
121
|
|
|
121
|
|
|
—
|
|
||||||
Latin America
|
46
|
|
|
46
|
|
|
—
|
|
|
45
|
|
|
45
|
|
|
—
|
|
||||||
Caterpillar Power Finance
|
195
|
|
|
207
|
|
|
—
|
|
|
160
|
|
|
172
|
|
|
—
|
|
||||||
Total
|
$
|
341
|
|
|
$
|
353
|
|
|
$
|
—
|
|
|
$
|
424
|
|
|
$
|
435
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired Finance Receivables With An Allowance Recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
60
|
|
|
$
|
58
|
|
|
$
|
21
|
|
|
$
|
44
|
|
|
$
|
43
|
|
|
$
|
17
|
|
Europe
|
49
|
|
|
49
|
|
|
13
|
|
|
9
|
|
|
8
|
|
|
5
|
|
||||||
Asia Pacific
|
4
|
|
|
4
|
|
|
1
|
|
|
8
|
|
|
8
|
|
|
2
|
|
||||||
Mining
|
67
|
|
|
67
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Latin America
|
71
|
|
|
71
|
|
|
40
|
|
|
95
|
|
|
106
|
|
|
42
|
|
||||||
Caterpillar Power Finance
|
379
|
|
|
381
|
|
|
101
|
|
|
362
|
|
|
365
|
|
|
83
|
|
||||||
Total
|
$
|
630
|
|
|
$
|
630
|
|
|
$
|
194
|
|
|
$
|
518
|
|
|
$
|
530
|
|
|
$
|
149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Impaired Finance Receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
76
|
|
|
$
|
74
|
|
|
$
|
21
|
|
|
$
|
63
|
|
|
$
|
62
|
|
|
$
|
17
|
|
Europe
|
56
|
|
|
56
|
|
|
13
|
|
|
54
|
|
|
53
|
|
|
5
|
|
||||||
Asia Pacific
|
31
|
|
|
31
|
|
|
1
|
|
|
42
|
|
|
41
|
|
|
2
|
|
||||||
Mining
|
117
|
|
|
117
|
|
|
18
|
|
|
121
|
|
|
121
|
|
|
—
|
|
||||||
Latin America
|
117
|
|
|
117
|
|
|
40
|
|
|
140
|
|
|
151
|
|
|
42
|
|
||||||
Caterpillar Power Finance
|
574
|
|
|
588
|
|
|
101
|
|
|
522
|
|
|
537
|
|
|
83
|
|
||||||
Total
|
$
|
971
|
|
|
$
|
983
|
|
|
$
|
194
|
|
|
$
|
942
|
|
|
$
|
965
|
|
|
$
|
149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2018 |
|
Three Months Ended
March 31, 2017 |
||||||||||||
(Millions of dollars)
|
Average Recorded
Investment
|
|
Interest Income
Recognized
|
|
Average Recorded
Investment
|
|
Interest Income
Recognized
|
||||||||
Impaired Finance Receivables With No Allowance Recorded
|
|
|
|
|
|
|
|
|
|
|
|
||||
North America
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
—
|
|
Europe
|
36
|
|
|
—
|
|
|
49
|
|
|
—
|
|
||||
Asia Pacific
|
31
|
|
|
1
|
|
|
9
|
|
|
—
|
|
||||
Mining
|
103
|
|
|
1
|
|
|
128
|
|
|
1
|
|
||||
Latin America
|
45
|
|
|
1
|
|
|
72
|
|
|
1
|
|
||||
Caterpillar Power Finance
|
172
|
|
|
2
|
|
|
267
|
|
|
3
|
|
||||
Total
|
$
|
404
|
|
|
$
|
5
|
|
|
$
|
535
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
||||||||
Impaired Finance Receivables With An Allowance Recorded
|
|
|
|
|
|
|
|
|
|
|
|
||||
North America
|
$
|
51
|
|
|
$
|
1
|
|
|
$
|
61
|
|
|
$
|
—
|
|
Europe
|
19
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||
Asia Pacific
|
6
|
|
|
—
|
|
|
45
|
|
|
1
|
|
||||
Mining
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Latin America
|
87
|
|
|
1
|
|
|
96
|
|
|
1
|
|
||||
Caterpillar Power Finance
|
360
|
|
|
1
|
|
|
63
|
|
|
1
|
|
||||
Total
|
$
|
540
|
|
|
$
|
3
|
|
|
$
|
271
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
||||||||
Total Impaired Finance Receivables
|
|
|
|
|
|
|
|
|
|
|
|
||||
North America
|
$
|
68
|
|
|
$
|
1
|
|
|
$
|
71
|
|
|
$
|
—
|
|
Europe
|
55
|
|
|
—
|
|
|
55
|
|
|
—
|
|
||||
Asia Pacific
|
37
|
|
|
1
|
|
|
54
|
|
|
1
|
|
||||
Mining
|
120
|
|
|
1
|
|
|
128
|
|
|
1
|
|
||||
Latin America
|
132
|
|
|
2
|
|
|
168
|
|
|
2
|
|
||||
Caterpillar Power Finance
|
532
|
|
|
3
|
|
|
330
|
|
|
4
|
|
||||
Total
|
$
|
944
|
|
|
$
|
8
|
|
|
$
|
806
|
|
|
$
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Millions of dollars)
|
March 31, 2018
|
|
December 31, 2017
|
||||
North America
|
$
|
50
|
|
|
$
|
38
|
|
Europe
|
50
|
|
|
37
|
|
||
Asia Pacific
|
8
|
|
|
10
|
|
||
Mining
|
14
|
|
|
63
|
|
||
Latin America
|
174
|
|
|
192
|
|
||
Caterpillar Power Finance
|
339
|
|
|
343
|
|
||
Total
|
$
|
635
|
|
|
$
|
683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended March 31, 2018
|
|
Three Months Ended March 31, 2017
|
||||||||||||||||
(Millions of dollars)
|
|
Number
of
Contracts
|
|
Pre-TDR
Recorded
Investment
|
|
Post-TDR
Recorded
Investment
|
|
Number
of
Contracts
|
|
Pre-TDR
Recorded
Investment
|
|
Post-TDR
Recorded
Investment
|
||||||||
North America
|
|
13
|
|
$
|
6
|
|
|
$
|
6
|
|
|
9
|
|
$
|
1
|
|
|
$
|
1
|
|
Europe
|
|
—
|
|
—
|
|
|
—
|
|
|
1
|
|
—
|
|
|
—
|
|
||||
Asia Pacific
|
|
—
|
|
—
|
|
|
—
|
|
|
5
|
|
39
|
|
|
30
|
|
||||
Mining
|
|
1
|
|
29
|
|
|
29
|
|
|
2
|
|
57
|
|
|
56
|
|
||||
Latin America
|
|
1
|
|
3
|
|
|
3
|
|
|
7
|
|
2
|
|
|
2
|
|
||||
Caterpillar Power Finance
|
|
3
|
|
3
|
|
|
3
|
|
|
6
|
|
25
|
|
|
24
|
|
||||
Total
|
|
18
|
|
$
|
41
|
|
|
$
|
41
|
|
|
30
|
|
$
|
124
|
|
|
$
|
113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
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.
|
|
March 31, 2018
|
||||||||||||||||||
(Millions of dollars)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Measured at NAV
|
|
Total
Assets / Liabilities,
at Fair Value
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Government debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. treasury bonds
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13
|
|
Other U.S. and non-U.S. government bonds
|
—
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|||||
Corporate bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Corporate bonds
|
—
|
|
|
640
|
|
|
—
|
|
|
—
|
|
|
640
|
|
|||||
Asset-backed securities
|
—
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
63
|
|
|||||
Mortgage-backed debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. governmental agency
|
—
|
|
|
285
|
|
|
—
|
|
|
—
|
|
|
285
|
|
|||||
Residential
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
Commercial
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|||||
Total debt securities
|
13
|
|
|
1,063
|
|
|
—
|
|
|
—
|
|
|
1,076
|
|
|||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Large capitalization value
|
281
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
281
|
|
|||||
Smaller company growth
|
58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|||||
REIT
|
—
|
|
|
—
|
|
|
—
|
|
|
112
|
|
|
112
|
|
|||||
Total equity securities
|
339
|
|
|
—
|
|
|
—
|
|
|
112
|
|
|
451
|
|
|||||
Total assets
|
$
|
352
|
|
|
$
|
1,063
|
|
|
$
|
—
|
|
|
$
|
112
|
|
|
$
|
1,527
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivative financial instruments, net
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|||||
Total liabilities
|
$
|
—
|
|
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
44
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017
|
||||||||||||||
(Millions of dollars)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Assets / Liabilities,
at Fair Value
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Government debt
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. treasury bonds
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10
|
|
Other U.S. and non-U.S. government bonds
|
—
|
|
|
42
|
|
|
—
|
|
|
42
|
|
||||
Corporate bonds
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate bonds
|
—
|
|
|
584
|
|
|
—
|
|
|
584
|
|
||||
Asset-backed securities
|
—
|
|
|
67
|
|
|
—
|
|
|
67
|
|
||||
Mortgage-backed debt securities
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. governmental agency
|
—
|
|
|
261
|
|
|
—
|
|
|
261
|
|
||||
Residential
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||
Commercial
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
||||
Total debt securities
|
10
|
|
|
979
|
|
|
—
|
|
|
989
|
|
||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Large capitalization value
|
284
|
|
|
—
|
|
|
—
|
|
|
284
|
|
||||
Smaller company growth
|
56
|
|
|
—
|
|
|
—
|
|
|
56
|
|
||||
REIT
|
—
|
|
|
—
|
|
|
110
|
|
|
110
|
|
||||
Total equity securities
|
340
|
|
|
—
|
|
|
110
|
|
|
450
|
|
||||
Total assets
|
$
|
350
|
|
|
$
|
979
|
|
|
$
|
110
|
|
|
$
|
1,439
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivative financial instruments, net
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
19
|
|
Total liabilities
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
Fair Value of Financial Instruments
|
|
|
|
|
||||||||||||||
|
|
March 31, 2018
|
|
December 31, 2017
|
|
|
|
|
||||||||||||
(Millions of dollars)
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Fair Value Levels
|
|
Reference
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and short-term investments
|
|
$
|
7,888
|
|
|
$
|
7,888
|
|
|
$
|
8,261
|
|
|
$
|
8,261
|
|
|
1
|
|
|
Restricted cash and short-term investments
|
|
$
|
174
|
|
|
$
|
174
|
|
|
$
|
194
|
|
|
$
|
194
|
|
|
1
|
|
|
Investments in debt and equity securities
|
|
$
|
1,527
|
|
|
$
|
1,527
|
|
|
$
|
1,439
|
|
|
$
|
1,439
|
|
|
1, 2 & 3
|
|
Note 8
|
Finance receivables – net (excluding finance leases
1
)
|
|
$
|
15,174
|
|
|
$
|
15,157
|
|
|
$
|
15,452
|
|
|
$
|
15,438
|
|
|
3
|
|
Note 16
|
Wholesale inventory receivables – net (excluding finance leases
1
)
|
|
$
|
1,068
|
|
|
$
|
1,041
|
|
|
$
|
1,153
|
|
|
$
|
1,123
|
|
|
3
|
|
Note 16
|
Interest rate contracts – net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
2
|
|
Note 5
|
Commodity contracts – net
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
21
|
|
|
$
|
21
|
|
|
2
|
|
Note 5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Short-term borrowings
|
|
$
|
5,733
|
|
|
$
|
5,733
|
|
|
$
|
4,837
|
|
|
$
|
4,837
|
|
|
1
|
|
|
Long-term debt (including amounts due within one year)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Machinery, Energy & Transportation
|
|
$
|
7,988
|
|
|
$
|
9,466
|
|
|
$
|
7,935
|
|
|
$
|
9,863
|
|
|
2
|
|
|
Financial Products
|
|
$
|
21,594
|
|
|
$
|
21,504
|
|
|
$
|
22,106
|
|
|
$
|
22,230
|
|
|
2
|
|
|
Foreign currency contracts – net
|
|
$
|
49
|
|
|
$
|
49
|
|
|
$
|
41
|
|
|
$
|
41
|
|
|
2
|
|
Note 5
|
Interest rate contracts – net
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
2
|
|
Note 5
|
Guarantees
|
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
8
|
|
|
3
|
|
Note 10
|
1
|
Total excluded items have a net carrying value at
March 31, 2018
and
December 31, 2017
of
$7,180 million
and
$7,063 million
, respectively.
|
|
|
|
|
|
|
|
Three Months Ended
March 31 |
||||||
(Millions of dollars)
|
|
2018
|
|
2017
|
||||
Investment and interest income
|
|
$
|
36
|
|
|
$
|
22
|
|
Foreign exchange gains (losses)
|
|
(19
|
)
|
|
(48
|
)
|
||
License fee income
|
|
31
|
|
|
22
|
|
||
Net periodic pension and OPEB income (cost), excluding service cost
|
|
86
|
|
|
37
|
|
||
Miscellaneous income (loss)
|
|
(7
|
)
|
|
(1
|
)
|
||
Total
|
|
$
|
127
|
|
|
$
|
32
|
|
|
|
|
|
|
|
|
|
||
(Millions of dollars)
|
|
|
||
Liability balance at December 31, 2016
|
$
|
147
|
|
|
Increase in liability (separation charges)
|
525
|
|
||
Reduction in liability (payments)
|
(423
|
)
|
||
Liability balance at December 31, 2017
|
$
|
249
|
|
|
Increase in liability (separation charges)
|
33
|
|
||
Reduction in liability (payments)
|
(90
|
)
|
||
Liability balance at March 31, 2018
|
$
|
192
|
|
|
|
|
•
|
First-quarter sales and revenues were $12.859 billion, compared with $9.822 billion in the first quarter of 2017. Sales increased in Construction Industries,
Energy & Transportation
and
Resource Industries
. Financial Products’ revenues were about flat.
|
•
|
Profit per share was $2.74 in the first quarter of 2018, compared with $0.32 in the first quarter of 2017. Excluding restructuring costs of $0.08 per share, first-quarter 2018
adjusted profit per share
was $2.82, compared to first-quarter 2017 adjusted profit per share of $1.28.
|
•
|
During the first quarter of 2018,
Machinery, Energy & Transportation (ME&T)
operating cash flow was $948 million and the company repurchased $500 million of Caterpillar common stock. The company ended the first quarter of 2018 with an enterprise cash balance of $7.9 billion.
|
•
|
Glossary of terms is included on pages 61-62; first occurrence of terms shown in bold italics.
|
•
|
Information on non-GAAP financial measures is included on page 67.
|
▪
|
Interest expense excluding Financial Products
in the first quarter of 2018 was $101 million, a decrease of $22 million from the first quarter of 2017, primarily due to an early debt retirement in the fourth quarter of 2017.
|
▪
|
Other income/expense
in the first quarter of 2018 was income of $127 million, compared with income of $32 million in the first quarter of 2017. The favorable change was primarily due to
pension and other postemployment benefit (OPEB)
plans, including the absence of restructuring costs and higher expected return on plan assets. Also contributing to the favorable change were lower net losses from currency translation and hedging in the first quarter of 2018 than in the first quarter of 2017.
|
▪
|
The
provision for income taxes
in the first quarter of 2018 reflects an estimated annual tax rate of 24 percent, compared to 32 percent for the first quarter of 2017, excluding the discrete items discussed in the following paragraph. The decrease is primarily due to the reduction in the U.S. corporate tax rate beginning January 1, 2018, along with other changes in the geographic mix of profits from a tax perspective.
|
Sales and Revenues by Geographic Region
|
|
North America
|
|
Latin America
|
|
EAME
|
|
Asia/Pacific
|
|
External Sales and Revenues
|
|
Inter-Segment
|
|
Total Sales and Revenues
|
|||||||||||||||||||||||||||||||||||
(Millions of dollars)
|
$
|
|
% Chg
|
|
$
|
|
% Chg
|
|
$
|
|
% Chg
|
|
$
|
|
% Chg
|
|
$
|
|
% Chg
|
|
$
|
|
% Chg
|
|
$
|
|
% Chg
|
|||||||||||||||||||||
First Quarter 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Construction Industries
|
$
|
2,620
|
|
|
37
|
%
|
|
$
|
344
|
|
|
38
|
%
|
|
$
|
1,067
|
|
|
31
|
%
|
|
$
|
1,628
|
|
|
46
|
%
|
|
$
|
5,659
|
|
|
38
|
%
|
|
$
|
18
|
|
|
100
|
%
|
|
$
|
5,677
|
|
|
38
|
%
|
Resource Industries
|
798
|
|
|
33
|
%
|
|
360
|
|
|
34
|
%
|
|
520
|
|
|
25
|
%
|
|
530
|
|
|
37
|
%
|
|
2,208
|
|
|
32
|
%
|
|
101
|
|
|
11
|
%
|
|
2,309
|
|
|
31
|
%
|
|||||||
Energy & Transportation
|
2,225
|
|
|
29
|
%
|
|
280
|
|
|
2
|
%
|
|
1,092
|
|
|
21
|
%
|
|
679
|
|
|
48
|
%
|
|
4,276
|
|
|
27
|
%
|
|
943
|
|
|
21
|
%
|
|
5,219
|
|
|
26
|
%
|
|||||||
All Other Segments
|
15
|
|
|
88
|
%
|
|
—
|
|
|
—
|
%
|
|
4
|
|
|
(75
|
%)
|
|
18
|
|
|
38
|
%
|
|
37
|
|
|
—
|
%
|
|
79
|
|
|
(17
|
%)
|
|
116
|
|
|
(12
|
%)
|
|||||||
Corporate Items and Eliminations
|
(28
|
)
|
|
|
|
1
|
|
|
|
|
(3
|
)
|
|
|
|
—
|
|
|
|
|
(30
|
)
|
|
|
|
(1,141
|
)
|
|
|
|
(1,171
|
)
|
|
|
||||||||||||||
Machinery, Energy & Transportation Sales
|
5,630
|
|
|
33
|
%
|
|
985
|
|
|
24
|
%
|
|
2,680
|
|
|
25
|
%
|
|
2,855
|
|
|
44
|
%
|
|
12,150
|
|
|
33
|
%
|
|
—
|
|
|
—
|
%
|
|
12,150
|
|
|
33
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Financial Products Segment
|
512
|
|
|
5
|
%
|
|
74
|
|
|
(11
|
%)
|
|
101
|
|
|
1
|
%
|
|
106
|
|
|
16
|
%
|
|
793
|
|
1
|
4
|
%
|
|
—
|
|
|
—
|
%
|
|
793
|
|
|
4
|
%
|
|||||||
Corporate Items and Eliminations
|
(49
|
)
|
|
|
|
(13
|
)
|
|
|
|
(5
|
)
|
|
|
|
(17
|
)
|
|
|
|
(84
|
)
|
|
|
|
—
|
|
|
|
|
(84
|
)
|
|
|
||||||||||||||
Financial Products Revenues
|
463
|
|
|
3
|
%
|
|
61
|
|
|
(12
|
%)
|
|
96
|
|
|
—
|
%
|
|
89
|
|
|
13
|
%
|
|
709
|
|
|
2
|
%
|
|
—
|
|
|
—
|
%
|
|
709
|
|
|
2
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consolidated Sales and Revenues
|
$
|
6,093
|
|
|
31
|
%
|
|
$
|
1,046
|
|
|
21
|
%
|
|
$
|
2,776
|
|
|
24
|
%
|
|
$
|
2,944
|
|
|
43
|
%
|
|
$
|
12,859
|
|
|
31
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
12,859
|
|
|
31
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
First Quarter 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction Industries
|
$
|
1,913
|
|
|
|
|
$
|
250
|
|
|
|
|
$
|
812
|
|
|
|
|
$
|
1,116
|
|
|
|
|
|
$
|
4,091
|
|
|
|
|
$
|
9
|
|
|
|
|
|
$
|
4,100
|
|
|
|
|||||
Resource Industries
|
598
|
|
|
|
|
269
|
|
|
|
|
416
|
|
|
|
|
387
|
|
|
|
|
|
1,670
|
|
|
|
|
91
|
|
|
|
|
|
1,761
|
|
|
|
||||||||||||
Energy & Transportation
|
1,722
|
|
|
|
|
275
|
|
|
|
|
900
|
|
|
|
|
459
|
|
|
|
|
|
3,356
|
|
|
|
|
780
|
|
|
|
|
|
4,136
|
|
|
|
||||||||||||
All Other Segments
|
8
|
|
|
|
|
—
|
|
|
|
|
16
|
|
|
|
|
13
|
|
|
|
|
|
37
|
|
|
|
|
95
|
|
|
|
|
|
132
|
|
|
|
||||||||||||
Corporate Items and Eliminations
|
(23
|
)
|
|
|
|
—
|
|
|
|
|
(2
|
)
|
|
|
|
1
|
|
|
|
|
(24
|
)
|
|
|
|
(975
|
)
|
|
|
|
(999
|
)
|
|
|
||||||||||||||
Machinery, Energy & Transportation Sales
|
4,218
|
|
|
|
|
|
794
|
|
|
|
|
|
2,142
|
|
|
|
|
|
1,976
|
|
|
|
|
|
9,130
|
|
|
|
|
|
—
|
|
|
|
|
|
9,130
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Financial Products Segment
|
486
|
|
|
|
|
83
|
|
|
|
|
100
|
|
|
|
|
91
|
|
|
|
|
|
760
|
|
1
|
|
|
—
|
|
|
|
|
|
760
|
|
|
|
||||||||||||
Corporate Items and Eliminations
|
(38
|
)
|
|
|
|
(14
|
)
|
|
|
|
(4
|
)
|
|
|
|
(12
|
)
|
|
|
|
|
(68
|
)
|
|
|
|
—
|
|
|
|
|
|
(68
|
)
|
|
|
||||||||||||
Financial Products Revenues
|
448
|
|
|
|
|
|
69
|
|
|
|
|
|
96
|
|
|
|
|
|
79
|
|
|
|
|
|
692
|
|
|
|
|
|
—
|
|
|
|
|
|
692
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consolidated Sales and Revenues
|
$
|
4,666
|
|
|
|
|
|
$
|
863
|
|
|
|
|
|
$
|
2,238
|
|
|
|
|
|
$
|
2,055
|
|
|
|
|
|
$
|
9,822
|
|
|
|
|
|
$
|
—
|
|
|
|
|
|
$
|
9,822
|
|
|
|
|
|
Sales and Revenues by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(Millions of dollars)
|
First Quarter 2017
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-Segment / Other
|
|
First Quarter 2018
|
|
$
Change
|
|
%
Change
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Construction Industries
|
$
|
4,100
|
|
|
$
|
1,340
|
|
|
$
|
59
|
|
|
$
|
169
|
|
|
$
|
9
|
|
|
$
|
5,677
|
|
|
$
|
1,577
|
|
|
38
|
%
|
Resource Industries
|
1,761
|
|
|
424
|
|
|
86
|
|
|
28
|
|
|
10
|
|
|
2,309
|
|
|
548
|
|
|
31
|
%
|
|||||||
Energy & Transportation
|
4,136
|
|
|
769
|
|
|
41
|
|
|
110
|
|
|
163
|
|
|
5,219
|
|
|
1,083
|
|
|
26
|
%
|
|||||||
All Other Segments
|
132
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
(16
|
)
|
|
116
|
|
|
(16
|
)
|
|
(12
|
%)
|
|||||||
Corporate Items and Eliminations
|
(999
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(166
|
)
|
|
(1,171
|
)
|
|
(172
|
)
|
|
|
|
|||||||
Machinery, Energy & Transportation Sales
|
9,130
|
|
|
2,526
|
|
|
186
|
|
|
308
|
|
|
—
|
|
|
12,150
|
|
|
3,020
|
|
|
33
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Financial Products Segment
|
760
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
793
|
|
|
33
|
|
|
4
|
%
|
|||||||
Corporate Items and Eliminations
|
(68
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
(84
|
)
|
|
(16
|
)
|
|
|
|
|||||||
Financial Products Revenues
|
692
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
709
|
|
|
17
|
|
|
2
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Consolidated Sales and Revenues
|
$
|
9,822
|
|
|
$
|
2,526
|
|
|
$
|
186
|
|
|
$
|
308
|
|
|
$
|
17
|
|
|
$
|
12,859
|
|
|
$
|
3,037
|
|
|
31
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit by Segment
|
|
|
|
|
|
|
|
|||||||
(Millions of dollars)
|
First Quarter 2018
|
|
First Quarter 2017
|
|
$
Change
|
|
%
Change
|
|||||||
Construction Industries
|
$
|
1,117
|
|
|
$
|
634
|
|
|
$
|
483
|
|
|
76
|
%
|
Resource Industries
|
378
|
|
|
160
|
|
|
218
|
|
|
136
|
%
|
|||
Energy & Transportation
|
874
|
|
|
545
|
|
|
329
|
|
|
60
|
%
|
|||
All Other Segments
|
57
|
|
|
(14
|
)
|
|
71
|
|
|
n/a
|
|
|||
Corporate Items and Eliminations
|
(371
|
)
|
|
(1,060
|
)
|
|
689
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
2,055
|
|
|
265
|
|
|
1,790
|
|
|
675
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Financial Products Segment
|
141
|
|
|
183
|
|
|
(42
|
)
|
|
(23
|
%)
|
|||
Corporate Items and Eliminations
|
(2
|
)
|
|
3
|
|
|
(5
|
)
|
|
|
|
|||
Financial Products
|
139
|
|
|
186
|
|
|
(47
|
)
|
|
(25
|
%)
|
|||
Consolidating Adjustments
|
(86
|
)
|
|
(71
|
)
|
|
(15
|
)
|
|
|
|
|||
Consolidated Operating Profit
|
$
|
2,108
|
|
|
$
|
380
|
|
|
$
|
1,728
|
|
|
455
|
%
|
|
|
|
|
|
|
|
|
▪
|
Sales volume increased primarily due to the impact of favorable changes in dealer inventories and higher end-user demand for construction equipment. Dealer inventories increased significantly more in the first quarter of 2018 than in the first quarter of 2017. The company believes the increase in dealer inventories is reflective of current end-user demand.
|
▪
|
In North America, the sales increase was mostly due to the impact of favorable changes in dealer inventories, which increased significantly more in the first quarter of 2018 than in the first quarter of 2017. In addition, sales increased due to higher end-user demand for construction equipment, primarily due to non-residential, infrastructure and oil and gas construction activities, including pipelines.
|
▪
|
Sales in Asia/Pacific were higher across the region, with about half due to improved end-user demand in China stemming from increased building construction and infrastructure investment. In addition, the impact of changes in dealer inventories was favorable as dealer inventories decreased more in the first quarter of 2017 than in the first quarter of 2018. The favorable impact of a stronger Chinese yuan also contributed to the increase.
|
▪
|
Sales increased in EAME primarily due to the impact of favorable changes in dealer inventories, the impact from a stronger euro and higher end-user demand for construction equipment. Dealer inventories increased more in the first quarter of 2018 than in the first quarter of 2017.
|
▪
|
Although construction activity remained weak in Latin America, sales were higher as end-user demand increased from low levels due to stabilizing economic conditions in several countries in the region.
|
Sales by Application
|
|
|
|
|
|
|
|
|
|||||||
(Millions of dollars)
|
|
First Quarter 2018
|
|
First Quarter 2017
|
|
$
Change
|
|
%
Change
|
|||||||
Oil and gas
|
|
$
|
1,215
|
|
|
809
|
|
|
$
|
406
|
|
|
50
|
%
|
|
Power generation
|
|
969
|
|
|
716
|
|
|
253
|
|
|
35
|
%
|
|||
Industrial
|
|
906
|
|
|
777
|
|
|
129
|
|
|
17
|
%
|
|||
Transportation
|
|
1,186
|
|
|
1,054
|
|
|
132
|
|
|
13
|
%
|
|||
External Sales
|
|
4,276
|
|
|
3,356
|
|
|
920
|
|
|
27
|
%
|
|||
Inter-Segment
|
|
943
|
|
|
780
|
|
|
163
|
|
|
21
|
%
|
|||
Total Sales
|
|
$
|
5,219
|
|
|
$
|
4,136
|
|
|
$
|
1,083
|
|
|
26
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
▪
|
Oil and Gas
- Sales increased primarily due to higher demand in North America for gas compression, production and well servicing applications. Higher energy prices and growth in U.S. onshore oil and gas drove increased sales for reciprocating engines and related aftermarket parts. Sales in North America were also positively impacted by the timing of turbine project deliveries.
|
▪
|
Power Generation
- Sales improved across all regions, with the largest increase in EAME primarily due to the timing of several large projects and favorable impacts from currency. In addition, sales in North America increased due to higher sales for turbines and aftermarket parts for reciprocating engines.
|
▪
|
Industrial
- Sales were higher across all regions except Latin America, primarily due to improving global economic conditions supporting higher engine sales into industrial end-user applications. Sales in EAME were also positively impacted by favorable currency.
|
▪
|
Transportation
- Sales were higher in Asia/Pacific and North America for rail services, driven primarily by growth in Australia and increased rail traffic in North America. Marine sales were higher primarily in Asia/Pacific due to timing of deliveries.
|
|
|
|
|
|
|
||||
(Millions of dollars)
|
|
Three Months Ended March 31
|
|
||||||
|
|
2018
|
|
2017
|
|
||||
Employee separations
1
|
|
$
|
33
|
|
|
$
|
464
|
|
|
Contract terminations
1
|
|
—
|
|
|
9
|
|
|
||
Long-lived asset impairments
1
|
|
—
|
|
|
212
|
|
|
||
Defined benefit plan curtailments and termination benefits
2
|
|
—
|
|
|
29
|
|
|
||
Other
3
|
|
36
|
|
|
38
|
|
|
||
Total restructuring costs
|
|
$
|
69
|
|
|
$
|
752
|
|
|
|
|
|
|
|
|
||||
1
Recognized in Other operating (income) expenses.
|
|
||||||||
2
Recognized in Other income (expense).
|
|
||||||||
3
Represents costs related to our restructuring programs, primarily for accelerated depreciation, project management costs and equipment
|
|
||||||||
relocation (all of which are primarily included in Cost of Goods sold.)
|
|||||||||
|
|
|
|
|
|
|
|
|
||
(Millions of dollars)
|
|
|
||
Liability balance at December 31, 2016
|
$
|
147
|
|
|
Increase in liability (separation charges)
|
525
|
|
||
Reduction in liability (payments)
|
(423
|
)
|
||
Liability balance at December 31, 2017
|
$
|
249
|
|
|
Increase in liability (separation charges)
|
33
|
|
||
Reduction in liability (payments)
|
(90
|
)
|
||
Liability balance at March 31, 2018
|
$
|
192
|
|
|
|
|
1.
|
Adjusted Profit Per Share
- Profit per share excluding restructuring costs for 2018 and 2017.
|
2.
|
All Other Segments
- Primarily includes activities such as: business strategy, product management and development, manufacturing of filters and fluids, undercarriage, ground engaging tools, fluid transfer products, precision seals, rubber sealing and connecting components primarily for Cat® products; parts distribution; integrated logistics solutions, distribution services responsible for dealer development and administration including a wholly owned dealer in Japan, dealer portfolio management and ensuring the most efficient and effective distribution of machines, engines and parts; digital investments for new customer and dealer solutions that integrate data analytics with state-of-the-art digital technologies while transforming the buying experience.
|
3.
|
Consolidating Adjustments
- Elimination of transactions between Machinery, Energy & Transportation and Financial Products.
|
4.
|
Construction Industries
- A segment primarily responsible for supporting customers using machinery in infrastructure, forestry 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 asphalt pavers, backhoe loaders, compactors, cold planers, compact track and multi-terrain loaders, mini, small, medium and large track excavators, forestry excavators, feller bunchers, harvesters, knuckleboom loaders, motor graders, pipelayers, road reclaimers, site prep tractors, skidders, skid steer loaders, telehandlers, small and medium track-type tractors, track-type loaders, wheel excavators, compact, small and medium wheel loaders and related parts and work tools.
|
5.
|
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 only includes the impact on sales and operating profit for the Machinery, Energy & Transportation lines of business excluding restructuring costs; 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 (hedging) and the net effect of changes in foreign currency exchange rates on our foreign currency assets and liabilities for consolidated results (translation).
|
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.
|
Energy & Transportation
- A segment primarily responsible for supporting customers using reciprocating engines, turbines, diesel-electric locomotives and related parts across industries serving Oil and Gas, Power Generation, Industrial and Transportation applications, including marine and rail-related businesses. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support of turbine machinery and integrated systems and solutions and turbine-related services, 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 oil and gas industries; reciprocating engines supplied to the industrial industry as well as Cat machinery; the remanufacturing of Cat engines and components and remanufacturing services for other companies; the business strategy, product design, product management and development, manufacturing, remanufacturing, leasing and service of diesel-electric locomotives and components and other rail-related products and services and product support of on-highway vocational trucks for North America.
|
9.
|
Financial Products Segment
- Provides financing alternatives to customers and dealers around the world for Caterpillar products, as well as financing for vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. Financing plans include operating and finance leases, installment sale contracts, working capital loans and wholesale financing plans. The segment also provides insurance and risk management products and services that help customers and dealers manage their business risk. Insurance and risk management products offered include physical damage
|
10.
|
Latin America
- A geographic region including Central and South American countries and Mexico.
|
11.
|
Machinery, Energy & Transportation (ME&T)
- Represents the aggregate total of Construction Industries, Resource Industries, Energy & Transportation, All Other Segments and related corporate items and eliminations.
|
12.
|
Machinery, Energy & Transportation Other Operating (Income) Expenses
-
Comprised primarily of gains/losses on disposal of long-lived assets, gains/losses on divestitures and legal settlements and accruals. Restructuring costs classified as other operating expenses on the Results of Operations are presented separately on the Operating Profit Comparison.
|
13.
|
Manufacturing Costs
- Manufacturing costs exclude the impacts of currency and restructuring costs (see definition below) 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.
|
14.
|
Pension and Other Postemployment Benefit (OPEB)
- The company’s defined-benefit pension and postretirement benefit plans.
|
15.
|
Price Realization
-
The impact of net price changes excluding currency and new product introductions. Price realization includes geographic mix of sales, which is the impact of changes in the relative weighting of sales prices between geographic regions.
|
16.
|
Resource Industries
- A segment primarily responsible for supporting customers using machinery in mining, quarry and aggregates, waste and material handling 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, hard rock vehicles, longwall miners, electric rope shovels, draglines, hydraulic shovels, rotary drills, large wheel loaders, off-highway trucks, articulated trucks, wheel tractor scrapers, wheel dozers, landfill compactors, soil compactors, hard rock continuous mining systems, select work tools, machinery components, electronics and control systems and related parts. In addition to equipment, Resource Industries also develops and sells technology products and services to provide customers fleet management, equipment management analytics and autonomous machine capabilities. Resource Industries also manages areas that provide services to other parts of the company, including integrated manufacturing and research and development.
|
17.
|
Restructuring Costs
- Primarily costs for employee separation, long-lived asset impairments and contract terminations. These costs are included in Other operating (income) expenses except for defined-benefit plan curtailment losses and special termination benefits, which are included in Other income (expense). Restructuring costs also include other exit-related costs primarily for accelerated depreciation, inventory write-downs, equipment relocation and project management costs and LIFO inventory decrement benefits from inventory liquidations at closed facilities, primarily included in Cost of goods sold.
|
18.
|
Sales Volume
- With respect to sales and revenues, sales volume represents the impact of changes in the quantities sold for Machinery, Energy & Transportation as well as the incremental sales 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, Energy & Transportation 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, Energy & Transportation sales with respect to total sales. The impact of sales volume on segment profit includes inter-segment sales.
|
•
|
The 364-day facility of $3.15 billion (of which $0.82 billion is available to ME&T) expires in September 2018.
|
•
|
The three-year facility of $2.73 billion (of which $0.72 billion is available to ME&T) expires in September 2020.
|
•
|
The five-year facility of $4.62 billion (of which $1.21 billion is available to ME&T) expires in September 2022.
|
|
March 31, 2018
|
||||||||||
(Millions of dollars)
|
Consolidated
|
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
||||||
Credit lines available:
|
|
|
|
|
|
|
|
|
|||
Global credit facilities
|
$
|
10,500
|
|
|
$
|
2,750
|
|
|
$
|
7,750
|
|
Other external
|
4,895
|
|
|
7
|
|
|
4,888
|
|
|||
Total credit lines available
|
15,395
|
|
|
2,757
|
|
|
12,638
|
|
|||
Less: Commercial paper outstanding
|
(4,681
|
)
|
|
—
|
|
|
(4,681
|
)
|
|||
Less: Utilized credit
|
(1,366
|
)
|
|
(7
|
)
|
|
(1,359
|
)
|
|||
Available credit
|
$
|
9,348
|
|
|
$
|
2,750
|
|
|
$
|
6,598
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Consolidating Data
|
|
|||||||||||||
|
Consolidated
|
|
Machinery,
Energy &
Transportation
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
|||||||||
Sales and revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales of Machinery, Energy & Transportation
|
$
|
12,150
|
|
|
$
|
12,150
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Revenues of Financial Products
|
709
|
|
|
—
|
|
|
811
|
|
|
(102
|
)
|
2
|
|
||||
Total sales and revenues
|
12,859
|
|
|
12,150
|
|
|
811
|
|
|
(102
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Operating costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of goods sold
|
8,566
|
|
|
8,566
|
|
|
—
|
|
|
—
|
|
|
|||||
Selling, general and administrative expenses
|
1,276
|
|
|
1,087
|
|
|
189
|
|
|
—
|
|
|
|||||
Research and development expenses
|
443
|
|
|
443
|
|
|
—
|
|
|
—
|
|
|
|||||
Interest expense of Financial Products
|
166
|
|
|
—
|
|
|
173
|
|
|
(7
|
)
|
4
|
|
||||
Other operating (income) expenses
|
300
|
|
|
(1
|
)
|
|
310
|
|
|
(9
|
)
|
3
|
|
||||
Total operating costs
|
10,751
|
|
|
10,095
|
|
|
672
|
|
|
(16
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Operating profit
|
2,108
|
|
|
2,055
|
|
|
139
|
|
|
(86
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense excluding Financial Products
|
101
|
|
|
112
|
|
|
—
|
|
|
(11
|
)
|
4
|
|
||||
Other income (expense)
|
127
|
|
|
54
|
|
|
(2
|
)
|
|
75
|
|
5
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated profit before taxes
|
2,134
|
|
|
1,997
|
|
|
137
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Provision (benefit) for income taxes
|
472
|
|
|
441
|
|
|
31
|
|
|
—
|
|
|
|||||
Profit of consolidated companies
|
1,662
|
|
|
1,556
|
|
|
106
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Equity in profit (loss) of unconsolidated affiliated companies
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
|||||
Equity in profit of Financial Products’ subsidiaries
|
—
|
|
|
102
|
|
|
—
|
|
|
(102
|
)
|
6
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||||
Profit of consolidated and affiliated companies
|
1,667
|
|
|
1,663
|
|
|
106
|
|
|
(102
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Less: Profit (loss) attributable to noncontrolling interests
|
2
|
|
|
(2
|
)
|
|
4
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Profit
7
|
$
|
1,665
|
|
|
$
|
1,665
|
|
|
$
|
102
|
|
|
$
|
(102
|
)
|
|
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, Energy & Transportation.
|
3
|
Elimination of net expenses recorded by Machinery, Energy & Transportation paid to Financial Products.
|
4
|
Elimination of interest expense recorded between Financial Products and Machinery, Energy & Transportation.
|
5
|
Elimination of discount recorded by Machinery, Energy & Transportation on receivables sold to Financial Products and of interest earned between Machinery, Energy & Transportation and Financial Products.
|
6
|
Elimination of Financial Products’ profit due to equity method of accounting.
|
7
|
Profit attributable to common shareholders.
|
|
|
|
Supplemental Consolidating Data
|
|
|||||||||||||
|
Consolidated
|
|
Machinery,
Energy &
Transportation
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
|||||||||
Sales and revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales of Machinery, Energy & Transportation
|
$
|
9,130
|
|
|
$
|
9,130
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Revenues of Financial Products
|
692
|
|
|
—
|
|
|
777
|
|
|
(85
|
)
|
2
|
|
||||
Total sales and revenues
|
9,822
|
|
|
9,130
|
|
|
777
|
|
|
(85
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Operating costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of goods sold
|
6,801
|
|
|
6,801
|
|
|
—
|
|
|
—
|
|
|
|||||
Selling, general and administrative expenses
|
1,061
|
|
|
940
|
|
|
126
|
|
|
(5
|
)
|
3
|
|
||||
Research and development expenses
|
425
|
|
|
425
|
|
|
—
|
|
|
—
|
|
|
|||||
Interest expense of Financial Products
|
159
|
|
|
—
|
|
|
163
|
|
|
(4
|
)
|
4
|
|
||||
Other operating (income) expenses
|
996
|
|
|
699
|
|
|
302
|
|
|
(5
|
)
|
3
|
|
||||
Total operating costs
|
9,442
|
|
|
8,865
|
|
|
591
|
|
|
(14
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Operating profit
|
380
|
|
|
265
|
|
|
186
|
|
|
(71
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense excluding Financial Products
|
123
|
|
|
144
|
|
|
—
|
|
|
(21
|
)
|
4
|
|
||||
Other income (expense)
|
32
|
|
|
(16
|
)
|
|
(2
|
)
|
|
50
|
|
5
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated profit before taxes
|
289
|
|
|
105
|
|
|
184
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Provision (benefit) for income taxes
|
90
|
|
|
34
|
|
|
56
|
|
|
—
|
|
|
|||||
Profit of consolidated companies
|
199
|
|
|
71
|
|
|
128
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Equity in profit (loss) of unconsolidated affiliated companies
|
(5
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
|||||
Equity in profit of Financial Products’ subsidiaries
|
—
|
|
|
126
|
|
|
—
|
|
|
(126
|
)
|
6
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||||
Profit of consolidated and affiliated companies
|
194
|
|
|
192
|
|
|
128
|
|
|
(126
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Less: Profit (loss) attributable to noncontrolling interests
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Profit
7
|
$
|
192
|
|
|
$
|
192
|
|
|
$
|
126
|
|
|
$
|
(126
|
)
|
|
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, Energy & Transportation.
|
3
|
Elimination of net expenses recorded by Machinery, Energy & Transportation paid to Financial Products.
|
4
|
Elimination of interest expense recorded between Financial Products and Machinery, Energy & Transportation.
|
5
|
Elimination of discount recorded by Machinery, Energy & Transportation on receivables sold to Financial Products and of interest earned between Machinery, Energy & Transportation and Financial Products.
|
6
|
Elimination of Financial Products’ profit due to equity method of accounting.
|
7
|
Profit attributable to common shareholders.
|
|
|
|
Supplemental Consolidating Data
|
|
||||||||||||
|
Consolidated
|
|
Machinery,
Energy &
Transportation
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash and short-term investments
|
$
|
7,888
|
|
|
$
|
7,034
|
|
|
$
|
854
|
|
|
$
|
—
|
|
|
Receivables – trade and other
|
7,894
|
|
|
4,399
|
|
|
383
|
|
|
3,112
|
|
2,3
|
||||
Receivables – finance
|
8,772
|
|
|
—
|
|
|
13,508
|
|
|
(4,736
|
)
|
3
|
||||
Prepaid expenses and other current assets
|
1,856
|
|
|
1,269
|
|
|
594
|
|
|
(7
|
)
|
4
|
||||
Inventories
|
10,947
|
|
|
10,947
|
|
|
—
|
|
|
—
|
|
|
||||
Total current assets
|
37,357
|
|
|
23,649
|
|
|
15,339
|
|
|
(1,631
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Property, plant and equipment – net
|
13,912
|
|
|
9,486
|
|
|
4,426
|
|
|
—
|
|
|
||||
Long-term receivables – trade and other
|
1,004
|
|
|
265
|
|
|
174
|
|
|
565
|
|
2,3
|
||||
Long-term receivables – finance
|
13,359
|
|
|
—
|
|
|
13,953
|
|
|
(594
|
)
|
3
|
||||
Investments in Financial Products subsidiaries
|
—
|
|
|
4,225
|
|
|
—
|
|
|
(4,225
|
)
|
5
|
||||
Noncurrent deferred and refundable income taxes
|
1,687
|
|
|
2,116
|
|
|
108
|
|
|
(537
|
)
|
6
|
||||
Intangible assets
|
2,163
|
|
|
2,159
|
|
|
4
|
|
|
—
|
|
|
||||
Goodwill
|
6,376
|
|
|
6,359
|
|
|
17
|
|
|
—
|
|
|
||||
Other assets
|
2,156
|
|
|
853
|
|
|
1,303
|
|
|
—
|
|
|
||||
Total assets
|
$
|
78,014
|
|
|
$
|
49,112
|
|
|
$
|
35,324
|
|
|
$
|
(6,422
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Short-term borrowings
|
$
|
5,733
|
|
|
$
|
7
|
|
|
$
|
5,726
|
|
|
$
|
—
|
|
|
Short-term borrowings with consolidated companies
|
—
|
|
|
—
|
|
|
1,516
|
|
|
(1,516
|
)
|
7
|
||||
Accounts payable
|
6,938
|
|
|
6,793
|
|
|
253
|
|
|
(108
|
)
|
8
|
||||
Accrued expenses
|
3,551
|
|
|
3,153
|
|
|
398
|
|
|
—
|
|
|
||||
Accrued wages, salaries and employee benefits
|
1,474
|
|
|
1,446
|
|
|
28
|
|
|
—
|
|
|
||||
Customer advances
|
1,399
|
|
|
1,399
|
|
|
—
|
|
|
—
|
|
|
||||
Dividends payable
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Other current liabilities
|
1,890
|
|
|
1,474
|
|
|
423
|
|
|
(7
|
)
|
6,9
|
||||
Long-term debt due within one year
|
6,417
|
|
|
8
|
|
|
6,409
|
|
|
—
|
|
|
||||
Total current liabilities
|
27,402
|
|
|
14,280
|
|
|
14,753
|
|
|
(1,631
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Long-term debt due after one year
|
23,165
|
|
|
8,009
|
|
|
15,185
|
|
|
(29
|
)
|
7
|
||||
Liability for postemployment benefits
|
8,233
|
|
|
8,233
|
|
|
—
|
|
|
—
|
|
|
||||
Other liabilities
|
3,942
|
|
|
3,318
|
|
|
1,161
|
|
|
(537
|
)
|
6
|
||||
Total liabilities
|
62,742
|
|
|
33,840
|
|
|
31,099
|
|
|
(2,197
|
)
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock
|
5,640
|
|
|
5,640
|
|
|
918
|
|
|
(918
|
)
|
5
|
||||
Treasury stock
|
(17,347
|
)
|
|
(17,347
|
)
|
|
—
|
|
|
—
|
|
|
||||
Profit employed in the business
|
27,929
|
|
|
27,929
|
|
|
3,702
|
|
|
(3,702
|
)
|
5
|
||||
Accumulated other comprehensive income (loss)
|
(1,016
|
)
|
|
(1,016
|
)
|
|
(545
|
)
|
|
545
|
|
5
|
||||
Noncontrolling interests
|
66
|
|
|
66
|
|
|
150
|
|
|
(150
|
)
|
5
|
||||
Total shareholders’ equity
|
15,272
|
|
|
15,272
|
|
|
4,225
|
|
|
(4,225
|
)
|
|
||||
Total liabilities and shareholders’ equity
|
$
|
78,014
|
|
|
$
|
49,112
|
|
|
$
|
35,324
|
|
|
$
|
(6,422
|
)
|
|
1
|
Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis.
|
2
|
Elimination of receivables between Machinery, Energy & Transportation and Financial Products.
|
3
|
Reclassification of Machinery, Energy & Transportation's trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables.
|
4
|
Elimination of Machinery, Energy & Transportation's insurance premiums that are prepaid to Financial Products.
|
5
|
Elimination of Financial Products’ equity which is accounted for by Machinery, Energy & Transportation on the equity basis.
|
6
|
Reclassification reflecting required netting of deferred tax assets / liabilities by taxing jurisdiction.
|
7
|
Elimination of debt between Machinery, Energy & Transportation and Financial Products.
|
8
|
Elimination of payables between Machinery, Energy & Transportation and Financial Products.
|
9
|
Elimination of prepaid insurance in Financial Products’ other liabilities.
|
|
|
|
Supplemental Consolidating Data
|
|
||||||||||||
|
Consolidated
|
|
Machinery,
Energy &
Transportation
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash and short-term investments
|
$
|
8,261
|
|
|
$
|
7,381
|
|
|
$
|
880
|
|
|
$
|
—
|
|
|
Receivables – trade and other
|
7,436
|
|
|
4,596
|
|
|
343
|
|
|
2,497
|
|
2,3
|
||||
Receivables – finance
|
8,757
|
|
|
—
|
|
|
12,985
|
|
|
(4,228
|
)
|
3
|
||||
Prepaid expenses and other current assets
|
1,772
|
|
|
1,099
|
|
|
679
|
|
|
(6
|
)
|
4
|
||||
Inventories
|
10,018
|
|
|
10,018
|
|
|
—
|
|
|
—
|
|
|
||||
Total current assets
|
36,244
|
|
|
23,094
|
|
|
14,887
|
|
|
(1,737
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Property, plant and equipment – net
|
14,155
|
|
|
9,823
|
|
|
4,332
|
|
|
—
|
|
|
||||
Long-term receivables – trade and other
|
990
|
|
|
229
|
|
|
162
|
|
|
599
|
|
2,3
|
||||
Long-term receivables – finance
|
13,542
|
|
|
—
|
|
|
14,170
|
|
|
(628
|
)
|
3
|
||||
Investments in Financial Products subsidiaries
|
—
|
|
|
4,064
|
|
|
—
|
|
|
(4,064
|
)
|
5
|
||||
Noncurrent deferred and refundable income taxes
|
1,693
|
|
|
2,166
|
|
|
101
|
|
|
(574
|
)
|
6
|
||||
Intangible assets
|
2,111
|
|
|
2,106
|
|
|
5
|
|
|
—
|
|
|
||||
Goodwill
|
6,200
|
|
|
6,183
|
|
|
17
|
|
|
—
|
|
|
||||
Other assets
|
2,027
|
|
|
822
|
|
|
1,205
|
|
|
—
|
|
|
||||
Total assets
|
$
|
76,962
|
|
|
$
|
48,487
|
|
|
$
|
34,879
|
|
|
$
|
(6,404
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Short-term borrowings
|
$
|
4,837
|
|
|
$
|
1
|
|
|
$
|
4,836
|
|
|
$
|
—
|
|
|
Short-term borrowings with consolidated companies
|
—
|
|
|
—
|
|
|
1,623
|
|
|
(1,623
|
)
|
7
|
||||
Accounts payable
|
6,487
|
|
|
6,330
|
|
|
265
|
|
|
(108
|
)
|
8
|
||||
Accrued expenses
|
3,220
|
|
|
2,880
|
|
|
340
|
|
|
—
|
|
|
||||
Accrued wages, salaries and employee benefits
|
2,559
|
|
|
2,504
|
|
|
55
|
|
|
—
|
|
|
||||
Customer advances
|
1,426
|
|
|
1,426
|
|
|
—
|
|
|
—
|
|
|
||||
Dividends payable
|
466
|
|
|
466
|
|
|
—
|
|
|
—
|
|
|
||||
Other current liabilities
|
1,742
|
|
|
1,327
|
|
|
423
|
|
|
(8
|
)
|
6,9
|
||||
Long-term debt due within one year
|
6,194
|
|
|
6
|
|
|
6,188
|
|
|
—
|
|
|
||||
Total current liabilities
|
26,931
|
|
|
14,940
|
|
|
13,730
|
|
|
(1,739
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Long-term debt due after one year
|
23,847
|
|
|
7,958
|
|
|
15,918
|
|
|
(29
|
)
|
7
|
||||
Liability for postemployment benefits
|
8,365
|
|
|
8,365
|
|
|
—
|
|
|
—
|
|
|
||||
Other liabilities
|
4,053
|
|
|
3,458
|
|
|
1,167
|
|
|
(572
|
)
|
6
|
||||
Total liabilities
|
63,196
|
|
|
34,721
|
|
|
30,815
|
|
|
(2,340
|
)
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock
|
5,593
|
|
|
5,593
|
|
|
918
|
|
|
(918
|
)
|
5
|
||||
Treasury stock
|
(17,005
|
)
|
|
(17,005
|
)
|
|
—
|
|
|
—
|
|
|
||||
Profit employed in the business
|
26,301
|
|
|
26,301
|
|
|
3,598
|
|
|
(3,598
|
)
|
5
|
||||
Accumulated other comprehensive income (loss)
|
(1,192
|
)
|
|
(1,192
|
)
|
|
(592
|
)
|
|
592
|
|
5
|
||||
Noncontrolling interests
|
69
|
|
|
69
|
|
|
140
|
|
|
(140
|
)
|
5
|
||||
Total shareholders’ equity
|
13,766
|
|
|
13,766
|
|
|
4,064
|
|
|
(4,064
|
)
|
|
||||
Total liabilities and shareholders’ equity
|
$
|
76,962
|
|
|
$
|
48,487
|
|
|
$
|
34,879
|
|
|
$
|
(6,404
|
)
|
|
1
|
Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis.
|
2
|
Elimination of receivables between Machinery, Energy & Transportation and Financial Products.
|
3
|
Reclassification of Machinery, Energy & Transportation's trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables.
|
4
|
Elimination of Machinery, Energy & Transportation's insurance premiums that are prepaid to Financial Products.
|
5
|
Elimination of Financial Products’ equity which is accounted for by Machinery, Energy & Transportation on the equity basis.
|
6
|
Reclassification reflecting required netting of deferred tax assets / liabilities by taxing jurisdiction.
|
7
|
Elimination of debt between Machinery, Energy & Transportation and Financial Products.
|
8
|
Elimination of payables between Machinery, Energy & Transportation and Financial Products.
|
9
|
Elimination of prepaid insurance in Financial Products’ other liabilities.
|
|
|
|
Supplemental Consolidating Data
|
|
||||||||||||
|
Consolidated
|
|
Machinery,
Energy &
Transportation
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
||||||||
Profit of consolidated and affiliated companies
|
$
|
1,667
|
|
|
$
|
1,663
|
|
|
$
|
106
|
|
|
$
|
(102
|
)
|
2
|
Adjustments for non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization
|
681
|
|
|
468
|
|
|
213
|
|
|
—
|
|
|
||||
Undistributed profit of Financial Products
|
—
|
|
|
(102
|
)
|
|
—
|
|
|
102
|
|
3
|
||||
Other
|
148
|
|
|
62
|
|
|
(6
|
)
|
|
92
|
|
4
|
||||
Changes in assets and liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
||||||||
Receivables - trade and other
|
(326
|
)
|
|
90
|
|
|
—
|
|
|
(416
|
)
|
4, 5
|
||||
Inventories
|
(803
|
)
|
|
(803
|
)
|
|
—
|
|
|
—
|
|
|
||||
Accounts payable
|
486
|
|
|
505
|
|
|
(19
|
)
|
|
—
|
|
|
||||
Accrued expenses
|
66
|
|
|
43
|
|
|
23
|
|
|
—
|
|
|
||||
Accrued wages, salaries and employee benefits
|
(1,110
|
)
|
|
(1,083
|
)
|
|
(27
|
)
|
|
—
|
|
|
||||
Customer advances
|
(46
|
)
|
|
(46
|
)
|
|
—
|
|
|
—
|
|
|
||||
Other assets – net
|
165
|
|
|
173
|
|
|
28
|
|
|
(36
|
)
|
4
|
||||
Other liabilities – net
|
7
|
|
|
(22
|
)
|
|
(7
|
)
|
|
36
|
|
4
|
||||
Net cash provided by (used for) operating activities
|
935
|
|
|
948
|
|
|
311
|
|
|
(324
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital expenditures - excluding equipment leased to others
|
(412
|
)
|
|
(321
|
)
|
|
(92
|
)
|
|
1
|
|
4
|
||||
Expenditures for equipment leased to others
|
(345
|
)
|
|
(2
|
)
|
|
(346
|
)
|
|
3
|
|
4
|
||||
Proceeds from disposals of leased assets and property, plant and equipment
|
258
|
|
|
54
|
|
|
207
|
|
|
(3
|
)
|
4
|
||||
Additions to finance receivables
|
(2,621
|
)
|
|
—
|
|
|
(2,955
|
)
|
|
334
|
|
5
|
||||
Collections of finance receivables
|
2,671
|
|
|
—
|
|
|
3,171
|
|
|
(500
|
)
|
5
|
||||
Net intercompany purchased receivables
|
—
|
|
|
—
|
|
|
(489
|
)
|
|
489
|
|
5
|
||||
Proceeds from sale of finance receivables
|
69
|
|
|
—
|
|
|
69
|
|
|
—
|
|
|
||||
Net intercompany borrowings
|
—
|
|
|
107
|
|
|
—
|
|
|
(107
|
)
|
6
|
||||
Investments and acquisitions (net of cash acquired)
|
(340
|
)
|
|
(340
|
)
|
|
—
|
|
|
—
|
|
|
||||
Proceeds from sale of businesses and investments (net of cash sold)
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
||||
Proceeds from sale of securities
|
89
|
|
|
5
|
|
|
84
|
|
|
—
|
|
|
||||
Investments in securities
|
(197
|
)
|
|
(18
|
)
|
|
(179
|
)
|
|
—
|
|
|
||||
Other – net
|
16
|
|
|
19
|
|
|
(3
|
)
|
|
—
|
|
|
||||
Net cash provided by (used for) investing activities
|
(800
|
)
|
|
(484
|
)
|
|
(533
|
)
|
|
217
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dividends paid
|
(467
|
)
|
|
(467
|
)
|
|
—
|
|
|
—
|
|
|
||||
Common stock issued, including treasury shares reissued
|
149
|
|
|
149
|
|
|
—
|
|
|
—
|
|
|
||||
Common shares repurchased
|
(500
|
)
|
|
(500
|
)
|
|
—
|
|
|
—
|
|
|
||||
Net intercompany borrowings
|
—
|
|
|
—
|
|
|
(107
|
)
|
|
107
|
|
6
|
||||
Proceeds from debt issued (original maturities greater than three months)
|
1,541
|
|
|
—
|
|
|
1,541
|
|
|
—
|
|
|
||||
Payments on debt (original maturities greater than three months)
|
(2,409
|
)
|
|
(1
|
)
|
|
(2,408
|
)
|
|
—
|
|
|
||||
Short-term borrowings – net (original maturities three months or less)
|
1,151
|
|
|
6
|
|
|
1,145
|
|
|
—
|
|
|
||||
Other – net
|
(3
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
||||
Net cash provided by (used for) financing activities
|
(538
|
)
|
|
(816
|
)
|
|
171
|
|
|
107
|
|
|
||||
Effect of exchange rate changes on cash
|
10
|
|
|
6
|
|
|
4
|
|
|
—
|
|
|
||||
Increase (decrease) in cash and short-term investments and restricted cash
|
(393
|
)
|
|
(346
|
)
|
|
(47
|
)
|
|
—
|
|
|
||||
Cash and short-term investments and restricted cash at beginning of period
|
8,320
|
|
|
7,416
|
|
|
904
|
|
|
—
|
|
|
||||
Cash and short-term investments and restricted cash at end of period
|
$
|
7,927
|
|
|
$
|
7,070
|
|
|
$
|
857
|
|
|
$
|
—
|
|
|
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, Energy & Transportation and Financial Products.
|
|
|
|
Supplemental Consolidating Data
|
|
||||||||||||
|
Consolidated
|
|
Machinery,
Energy &
Transportation
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
||||||||
Profit of consolidated and affiliated companies
|
$
|
194
|
|
|
$
|
192
|
|
|
$
|
128
|
|
|
$
|
(126
|
)
|
2
|
Adjustments for non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization
|
710
|
|
|
491
|
|
|
219
|
|
|
—
|
|
|
||||
Undistributed profit of Financial Products
|
—
|
|
|
(126
|
)
|
|
—
|
|
|
126
|
|
3
|
||||
Other
|
302
|
|
|
302
|
|
|
(47
|
)
|
|
47
|
|
4
|
||||
Changes in assets and liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|||||||
Receivables - trade and other
|
(353
|
)
|
|
(8
|
)
|
|
52
|
|
|
(397
|
)
|
4, 5
|
||||
Inventories
|
(444
|
)
|
|
(444
|
)
|
|
—
|
|
|
—
|
|
|
||||
Accounts payable
|
732
|
|
|
734
|
|
|
6
|
|
|
(8
|
)
|
4
|
||||
Accrued expenses
|
132
|
|
|
130
|
|
|
2
|
|
|
—
|
|
|
||||
Accrued wages, salaries and employee benefits
|
360
|
|
|
364
|
|
|
(4
|
)
|
|
—
|
|
|
||||
Customer advances
|
234
|
|
|
234
|
|
|
—
|
|
|
—
|
|
|
||||
Other assets – net
|
(261
|
)
|
|
(196
|
)
|
|
(25
|
)
|
|
(40
|
)
|
4
|
||||
Other liabilities – net
|
(64
|
)
|
|
(149
|
)
|
|
45
|
|
|
40
|
|
4
|
||||
Net cash provided by (used for) operating activities
|
1,542
|
|
|
1,524
|
|
|
376
|
|
|
(358
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital expenditures - excluding equipment leased to others
|
(204
|
)
|
|
(203
|
)
|
|
(1
|
)
|
|
—
|
|
|
||||
Expenditures for equipment leased to others
|
(305
|
)
|
|
(6
|
)
|
|
(302
|
)
|
|
3
|
|
4
|
||||
Proceeds from disposals of leased assets and property, plant and equipment
|
234
|
|
|
41
|
|
|
194
|
|
|
(1
|
)
|
4
|
||||
Additions to finance receivables
|
(2,122
|
)
|
|
—
|
|
|
(2,535
|
)
|
|
413
|
|
5
|
||||
Collections of finance receivables
|
2,272
|
|
|
—
|
|
|
2,788
|
|
|
(516
|
)
|
5
|
||||
Net intercompany purchased receivables
|
—
|
|
|
—
|
|
|
(459
|
)
|
|
459
|
|
5
|
||||
Proceeds from sale of finance receivables
|
17
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
||||
Net intercompany borrowings
|
—
|
|
|
50
|
|
|
(1,500
|
)
|
|
1,450
|
|
6
|
||||
Investments and acquisitions (net of cash acquired)
|
(18
|
)
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
||||
Proceeds from sale of securities
|
89
|
|
|
6
|
|
|
83
|
|
|
—
|
|
|
||||
Investments in securities
|
(65
|
)
|
|
(2
|
)
|
|
(63
|
)
|
|
—
|
|
|
||||
Other – net
|
9
|
|
|
(1
|
)
|
|
10
|
|
|
—
|
|
|
||||
Net cash provided by (used for) investing activities
|
(93
|
)
|
|
(133
|
)
|
|
(1,768
|
)
|
|
1,808
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dividends paid
|
(452
|
)
|
|
(452
|
)
|
|
—
|
|
|
—
|
|
|
||||
Common stock issued, including treasury shares reissued
|
(19
|
)
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
||||
Net intercompany borrowings
|
—
|
|
|
1,500
|
|
|
(50
|
)
|
|
(1,450
|
)
|
6
|
||||
Proceeds from debt issued (original maturities greater than three months)
|
2,715
|
|
|
360
|
|
|
2,355
|
|
|
—
|
|
|
||||
Payments on debt (original maturities greater than three months)
|
(1,978
|
)
|
|
(4
|
)
|
|
(1,974
|
)
|
|
—
|
|
|
||||
Short-term borrowings – net (original maturities three months or less)
|
618
|
|
|
226
|
|
|
392
|
|
|
—
|
|
|
||||
Other – net
|
(6
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
||||
Net cash provided by (used for) financing activities
|
878
|
|
|
1,605
|
|
|
723
|
|
|
(1,450
|
)
|
|
||||
Effect of exchange rate changes on cash
|
9
|
|
|
3
|
|
|
6
|
|
|
—
|
|
|
||||
Increase (decrease) in cash and short-term investments and restricted cash
|
2,336
|
|
|
2,999
|
|
|
(663
|
)
|
|
—
|
|
|
||||
Cash and short-term investments and restricted cash at beginning of period
|
7,199
|
|
|
5,259
|
|
|
1,940
|
|
|
—
|
|
|
||||
Cash and short-term investments and restricted cash at end of period
|
$
|
9,535
|
|
|
$
|
8,258
|
|
|
$
|
1,277
|
|
|
$
|
—
|
|
|
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, Energy & Transportation and Financial Products.
|
Period
|
|
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 (in billions)
1
|
||||||
January 1-31, 2018
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
5.475
|
|
February 1-28, 2018
|
|
3,147,629
|
|
|
$
|
158.85
|
|
|
3,147,629
|
|
|
$
|
4.975
|
|
March 1-31, 2018
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
4.975
|
|
Total
|
|
3,147,629
|
|
|
$
|
158.85
|
|
|
3,147,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|||
January 1-31, 2018
|
|
11,050
|
|
|
$
|
158.28
|
|
|
N/A
|
|
N/A
|
February 1-28, 2018
|
|
51,764
|
|
|
$
|
153.19
|
|
|
N/A
|
|
N/A
|
March 1-31, 2018
|
|
281,323
|
|
|
$
|
150.25
|
|
|
N/A
|
|
N/A
|
Total
|
|
344,137
|
|
|
$
|
150.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1
|
|
|
|
|
|
10.2
|
|
|
|
|
|
10.3
|
|
|
|
|
|
10.4
|
|
|
|
|
|
11
|
|
Computations of Earnings per Share (included in Note 11 of this Form 10-Q filed for the quarter ended March 31, 2018).
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32
|
|
|
|
|
|
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
|
|
CATERPILLAR INC.
|
|
|
|
|
|
|
|
May 2, 2018
|
/s/ D. James Umpleby III
|
Chief Executive Officer
|
|
(D. James Umpleby III)
|
|
|
|
|
|
|
|
May 2, 2018
|
/s/ Bradley M. Halverson
|
Group President and Chief Financial Officer
|
|
(Bradley M. Halverson)
|
|
|
|
|
|
|
|
May 2, 2018
|
/s/ Suzette M. Long
|
General Counsel & Corporate Secretary
|
|
(Suzette M. Long)
|
|
|
|
|
|
|
|
May 2, 2018
|
/s/ Jananne A. Copeland
|
Chief Accounting Officer
|
|
(Jananne A. Copeland)
|
|
•
|
Long-Service Separation
|
•
|
Death
|
•
|
Change in Control
|
•
|
Other
|
i.
|
solicit any business competitive with any Company business from any person or entity who: (a) was a provider or customer to the Company within the 18 months before your termination of employment date and (b) with whom you had contact to further the Company’s business or for whom you performed services, or supervised the provision of services for, during your employment;
|
ii.
|
hire, employ, recruit or solicit any employee of or consultant to the Company who possesses confidential information of the Company;
|
iii.
|
induce or influence any employee, consultant, customer or provider to the Company to terminate his, her or its employment or other relationship with the Company;
|
iv.
|
engage or participate in, or in any way render services or assistance to, any business that competes, directly or indirectly, with any Company product or service that you participated in, engaged in, or had confidential information regarding, in any geographic territory over which you had responsibilities, during the 18 months before your termination of employment date; or
|
v.
|
assist anyone in any of the activities listed above.
|
•
|
Long-Service Separation
|
•
|
Disability
|
•
|
Death
|
•
|
Change in Control
|
•
|
Cause
|
•
|
Other
|
i.
|
solicit any business competitive with any Company business from any person or entity who: (a) was a provider or customer to the Company within the 18 months before your termination of employment date and (b) with whom you had contact to further the Company’s business or for whom you performed services, or supervised the provision of services for, during your employment;
|
ii.
|
hire, employ, recruit or solicit any employee of or consultant to the Company who possesses confidential information of the Company;
|
iii.
|
induce or influence any employee, consultant, customer or provider to the Company to terminate his, her or its employment or other relationship with the Company;
|
iv.
|
engage or participate in, or in any way render services or assistance to, any business that competes, directly or indirectly, with any Company product or service that you participated in, engaged in, or had confidential information regarding, in any geographic territory over which you had responsibilities, during the 18 months before your termination of employment date; or
|
v.
|
assist anyone in any of the activities listed above.
|
•
|
Long-Service Separation
|
•
|
Disability
|
•
|
Death
|
•
|
Change in Control
|
i.
|
solicit any business competitive with any Company business from any person or entity who: (a) was a provider or customer to the Company within the 18 months before your termination of employment date and (b) with whom you had contact to further the Company’s business or for whom you performed services, or supervised the provision of services for, during your employment;
|
ii.
|
hire, employ, recruit or solicit any employee of or consultant to the Company who possesses confidential information of the Company;
|
iii.
|
induce or influence any employee, consultant, customer or provider to the Company to terminate his, her or its employment or other relationship with the Company;
|
iv.
|
engage or participate in, or in any way render services or assistance to, any business that competes, directly or indirectly, with any Company product or service that you participated in, engaged in, or had confidential information regarding, in any geographic territory over which you had responsibilities, during the 18 months before your termination of employment date; or
|
v.
|
assist anyone in any of the activities listed above.
|
•
|
Restructuring costs;
|
•
|
Actuarial gains and losses on pension and post-retirement benefits;
|
•
|
Impact from acquisitions and divestitures;
|
•
|
Asset impairments;
|
•
|
Disposal of assets;
|
•
|
Unusual material tax items;
|
•
|
Changes in accounting principles and/or adoption of new accounting guidance; and
|
•
|
Any other unusual or non-recurring charge as reflected in the Company’s financial statements.
|
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.
|
May 2, 2018
|
/s/ D. James Umpleby III
|
Chief Executive Officer
|
|
(D. James Umpleby III)
|
|
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.
|
May 2, 2018
|
/s/ Bradley M. Halverson
|
Group President and
Chief Financial Officer
|
|
(Bradley M. Halverson)
|
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
May 2, 2018
|
/s/ D. James Umpleby III
|
Chief Executive Officer
|
|
(D. James Umpleby III)
|
|
|
|
|
|
|
|
May 2, 2018
|
/s/ Bradley M. Halverson
|
Group President and
Chief Financial Officer
|
|
(Bradley M. Halverson)
|
|