|
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
|
Smaller reporting company
|
o
|
|
|
|
|
|
|
Emerging growth company
|
o
|
Title of each class
|
Trading Symbol (s)
|
Name of each exchange on which registered
|
Common Stock ($1.00 par value)
|
CAT
|
New York Stock Exchange
|
9 3/8% Debentures due March 15, 2021
|
CAT21
|
New York Stock Exchange
|
8% Debentures due February 15, 2023
|
CAT23
|
New York Stock Exchange
|
5.3% Debentures due September 15, 2035
|
CAT35
|
New York Stock Exchange
|
|
|
|
|
|
|
|
|
|
|
Item 1A.
|
Risk Factors
|
*
|
Item 3.
|
Defaults Upon Senior Securities
|
*
|
Item 4.
|
Mine Safety Disclosures
|
*
|
Item 5.
|
Other Information
|
*
|
|
Three Months Ended March 31
|
||||||
|
2019
|
|
2018
|
||||
Sales and revenues:
|
|
|
|
||||
Sales of Machinery, Energy & Transportation
|
$
|
12,724
|
|
|
$
|
12,150
|
|
Revenues of Financial Products
|
742
|
|
|
709
|
|
||
Total sales and revenues
|
13,466
|
|
|
12,859
|
|
||
|
|
|
|
||||
Operating costs:
|
|
|
|
|
|
||
Cost of goods sold
|
9,003
|
|
|
8,566
|
|
||
Selling, general and administrative expenses
|
1,319
|
|
|
1,276
|
|
||
Research and development expenses
|
435
|
|
|
443
|
|
||
Interest expense of Financial Products
|
190
|
|
|
166
|
|
||
Other operating (income) expenses
|
312
|
|
|
300
|
|
||
Total operating costs
|
11,259
|
|
|
10,751
|
|
||
|
|
|
|
||||
Operating profit
|
2,207
|
|
|
2,108
|
|
||
|
|
|
|
||||
Interest expense excluding Financial Products
|
103
|
|
|
101
|
|
||
Other income (expense)
|
160
|
|
|
127
|
|
||
|
|
|
|
||||
Consolidated profit before taxes
|
2,264
|
|
|
2,134
|
|
||
|
|
|
|
||||
Provision (benefit) for income taxes
|
387
|
|
|
472
|
|
||
Profit of consolidated companies
|
1,877
|
|
|
1,662
|
|
||
|
|
|
|
||||
Equity in profit (loss) of unconsolidated affiliated companies
|
7
|
|
|
5
|
|
||
|
|
|
|
||||
Profit of consolidated and affiliated companies
|
1,884
|
|
|
1,667
|
|
||
|
|
|
|
||||
Less: Profit (loss) attributable to noncontrolling interests
|
3
|
|
|
2
|
|
||
|
|
|
|
||||
Profit
1
|
$
|
1,881
|
|
|
$
|
1,665
|
|
|
|
|
|
||||
Profit per common share
|
$
|
3.29
|
|
|
$
|
2.78
|
|
|
|
|
|
||||
Profit per common share – diluted
2
|
$
|
3.25
|
|
|
$
|
2.74
|
|
|
|
|
|
||||
Weighted-average common shares outstanding (millions)
|
|
|
|
|
|
||
– Basic
|
572.4
|
|
|
598.0
|
|
||
– Diluted
2
|
578.8
|
|
|
608.0
|
|
||
|
|
|
|
|
Three Months Ended March 31
|
||||||
|
2019
|
|
2018
|
||||
|
|
|
|
||||
Profit of consolidated and affiliated companies
|
$
|
1,884
|
|
|
$
|
1,667
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
||||
Foreign currency translation, net of tax (provision)/benefit of: 2019 - $(4); 2018 - $15
|
(22
|
)
|
|
184
|
|
||
|
|
|
|
||||
Pension and other postretirement benefits:
|
|
|
|
||||
Current year prior service credit (cost), net of tax (provision)/benefit of: 2019 - $0; 2018 - $1
|
—
|
|
|
(2
|
)
|
||
Amortization of prior service (credit) cost, net of tax (provision)/benefit of: 2019 - $3; 2018 - $2
|
(7
|
)
|
|
(7
|
)
|
||
|
|
|
|
||||
Derivative financial instruments:
|
|
|
|
||||
Gains (losses) deferred, net of tax (provision)/benefit of: 2019 - $(3); 2018 - $(1)
|
10
|
|
|
5
|
|
||
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2019 - $2; 2018 - $(6)
|
(9
|
)
|
|
18
|
|
||
|
|
|
|
||||
Available-for-sale securities:
|
|
|
|
||||
Gains (losses) deferred, net of tax (provision)/benefit of: 2019 - $(6); 2018 - $2
|
15
|
|
|
(11
|
)
|
||
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2019 - $0; 2018 - $0
|
1
|
|
|
—
|
|
||
|
|
|
|
||||
Total other comprehensive income (loss), net of tax
|
(12
|
)
|
|
187
|
|
||
Comprehensive income
|
1,872
|
|
|
1,854
|
|
||
Less: comprehensive income attributable to the noncontrolling interests
|
3
|
|
|
2
|
|
||
Comprehensive income attributable to shareholders
|
$
|
1,869
|
|
|
$
|
1,852
|
|
|
|
|
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
|
|
||
Cash and short-term investments
|
$
|
7,128
|
|
|
$
|
7,857
|
|
Receivables – trade and other
|
8,961
|
|
|
8,802
|
|
||
Receivables – finance
|
8,932
|
|
|
8,650
|
|
||
Prepaid expenses and other current assets
|
1,765
|
|
|
1,765
|
|
||
Inventories
|
12,340
|
|
|
11,529
|
|
||
Total current assets
|
39,126
|
|
|
38,603
|
|
||
|
|
|
|
||||
Property, plant and equipment – net
|
13,259
|
|
|
13,574
|
|
||
Long-term receivables – trade and other
|
1,149
|
|
|
1,161
|
|
||
Long-term receivables – finance
|
12,674
|
|
|
13,286
|
|
||
Noncurrent deferred and refundable income taxes
|
1,378
|
|
|
1,439
|
|
||
Intangible assets
|
1,807
|
|
|
1,897
|
|
||
Goodwill
|
6,191
|
|
|
6,217
|
|
||
Other assets
|
3,142
|
|
|
2,332
|
|
||
Total assets
|
$
|
78,726
|
|
|
$
|
78,509
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Short-term borrowings:
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
$
|
4
|
|
|
$
|
—
|
|
Financial Products
|
5,586
|
|
|
5,723
|
|
||
Accounts payable
|
7,198
|
|
|
7,051
|
|
||
Accrued expenses
|
3,746
|
|
|
3,573
|
|
||
Accrued wages, salaries and employee benefits
|
1,200
|
|
|
2,384
|
|
||
Customer advances
|
1,354
|
|
|
1,243
|
|
||
Dividends payable
|
—
|
|
|
495
|
|
||
Other current liabilities
|
2,348
|
|
|
1,919
|
|
||
Long-term debt due within one year:
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
13
|
|
|
10
|
|
||
Financial Products
|
5,939
|
|
|
5,820
|
|
||
Total current liabilities
|
27,388
|
|
|
28,218
|
|
||
|
|
|
|
||||
Long-term debt due after one year:
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
7,650
|
|
|
8,005
|
|
||
Financial Products
|
16,590
|
|
|
16,995
|
|
||
Liability for postemployment benefits
|
7,441
|
|
|
7,455
|
|
||
Other liabilities
|
4,179
|
|
|
3,756
|
|
||
Total liabilities
|
63,248
|
|
|
64,429
|
|
||
Commitments and contingencies (Notes 11 and 14)
|
|
|
|
|
|
||
Shareholders’ equity
|
|
|
|
|
|
||
Common stock of $1.00 par value:
|
|
|
|
|
|
||
Authorized shares: 2,000,000,000
Issued shares: (3/31/19 and 12/31/18 – 814,894,624) at paid-in amount |
5,804
|
|
|
5,827
|
|
||
Treasury stock (3/31/19 – 243,192,346 shares; 12/31/18 – 239,351,886 shares) at cost
|
(21,214
|
)
|
|
(20,531
|
)
|
||
Profit employed in the business
|
32,435
|
|
|
30,427
|
|
||
Accumulated other comprehensive income (loss)
|
(1,588
|
)
|
|
(1,684
|
)
|
||
Noncontrolling interests
|
41
|
|
|
41
|
|
||
Total shareholders’ equity
|
15,478
|
|
|
14,080
|
|
||
Total liabilities and shareholders’ equity
|
$
|
78,726
|
|
|
$
|
78,509
|
|
|
Common
stock
|
|
Treasury
stock
|
|
Profit
employed
in the
business
|
|
Accumulated
other
comprehensive
income (loss)
|
|
Noncontrolling
interests
|
|
Total
|
||||||||||||
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
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three Months Ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at December 31, 2018
|
$
|
5,827
|
|
|
$
|
(20,531
|
)
|
|
$
|
30,427
|
|
|
$
|
(1,684
|
)
|
|
$
|
41
|
|
|
$
|
14,080
|
|
Adjustments to adopt new accounting guidance
1
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lease accounting
|
—
|
|
|
—
|
|
|
235
|
|
|
—
|
|
|
—
|
|
|
235
|
|
||||||
Reclassification of certain tax effects from accumulated other comprehensive income
|
—
|
|
|
—
|
|
|
(108
|
)
|
|
108
|
|
|
—
|
|
|
—
|
|
||||||
Balance at January 1, 2019
|
5,827
|
|
|
(20,531
|
)
|
|
30,554
|
|
|
(1,576
|
)
|
|
41
|
|
|
14,315
|
|
||||||
Profit of consolidated and affiliated companies
|
—
|
|
|
—
|
|
|
1,881
|
|
|
—
|
|
|
3
|
|
|
1,884
|
|
||||||
Foreign currency translation, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
(22
|
)
|
||||||
Pension and other postretirement benefits, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
||||||
Derivative financial instruments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Available-for-sale securities, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
||||||
Distribution to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Common shares issued from treasury stock for stock-based compensation: 1,859,065
|
(73
|
)
|
|
68
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||||
Stock-based compensation expense
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45
|
|
||||||
Common shares repurchased: 5,699,525
2
|
—
|
|
|
(751
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(751
|
)
|
||||||
Other
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
3
|
|
||||||
Balance at March 31, 2019
|
$
|
5,804
|
|
|
$
|
(21,214
|
)
|
|
$
|
32,435
|
|
|
$
|
(1,588
|
)
|
|
$
|
41
|
|
|
$
|
15,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
1
See Note 2 for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2
See Note 12 for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31
|
||||||
|
2019
|
|
2018
|
||||
Cash flow from operating activities:
|
|
|
|
||||
Profit of consolidated and affiliated companies
|
$
|
1,884
|
|
|
$
|
1,667
|
|
Adjustments for non-cash items:
|
|
|
|
|
|
||
Depreciation and amortization
|
641
|
|
|
681
|
|
||
Other
|
88
|
|
|
148
|
|
||
Changes in assets and liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
||
Receivables – trade and other
|
(150
|
)
|
|
(326
|
)
|
||
Inventories
|
(813
|
)
|
|
(803
|
)
|
||
Accounts payable
|
355
|
|
|
486
|
|
||
Accrued expenses
|
135
|
|
|
66
|
|
||
Accrued wages, salaries and employee benefits
|
(1,185
|
)
|
|
(1,110
|
)
|
||
Customer advances
|
105
|
|
|
(46
|
)
|
||
Other assets – net
|
(44
|
)
|
|
165
|
|
||
Other liabilities – net
|
105
|
|
|
7
|
|
||
Net cash provided by (used for) operating activities
|
1,121
|
|
|
935
|
|
||
|
|
|
|
||||
Cash flow from investing activities:
|
|
|
|
|
|
||
Capital expenditures – excluding equipment leased to others
|
(278
|
)
|
|
(412
|
)
|
||
Expenditures for equipment leased to others
|
(269
|
)
|
|
(345
|
)
|
||
Proceeds from disposals of leased assets and property, plant and equipment
|
209
|
|
|
258
|
|
||
Additions to finance receivables
|
(2,615
|
)
|
|
(2,621
|
)
|
||
Collections of finance receivables
|
2,818
|
|
|
2,671
|
|
||
Proceeds from sale of finance receivables
|
44
|
|
|
69
|
|
||
Investments and acquisitions (net of cash acquired)
|
(2
|
)
|
|
(340
|
)
|
||
Proceeds from sale of businesses and investments (net of cash sold)
|
—
|
|
|
12
|
|
||
Proceeds from sale of securities
|
57
|
|
|
89
|
|
||
Investments in securities
|
(107
|
)
|
|
(197
|
)
|
||
Other – net
|
(38
|
)
|
|
16
|
|
||
Net cash provided by (used for) investing activities
|
(181
|
)
|
|
(800
|
)
|
||
|
|
|
|
||||
Cash flow from financing activities:
|
|
|
|
|
|
||
Dividends paid
|
(494
|
)
|
|
(467
|
)
|
||
Common stock issued, including treasury shares reissued
|
(5
|
)
|
|
149
|
|
||
Common shares repurchased
|
(751
|
)
|
|
(500
|
)
|
||
Proceeds from debt issued (original maturities greater than three months):
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
—
|
|
|
—
|
|
||
Financial Products
|
2,665
|
|
|
1,541
|
|
||
Payments on debt (original maturities greater than three months):
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
(2
|
)
|
|
(1
|
)
|
||
Financial Products
|
(2,565
|
)
|
|
(2,408
|
)
|
||
Short-term borrowings – net (original maturities three months or less)
|
(522
|
)
|
|
1,151
|
|
||
Other – net
|
(1
|
)
|
|
(3
|
)
|
||
Net cash provided by (used for) financing activities
|
(1,675
|
)
|
|
(538
|
)
|
||
Effect of exchange rate changes on cash
|
3
|
|
|
10
|
|
||
Increase (decrease) in cash and short-term investments and restricted cash
|
(732
|
)
|
|
(393
|
)
|
||
Cash and short-term investments and restricted cash at beginning of period
|
7,890
|
|
|
8,320
|
|
||
Cash and short-term investments and restricted cash at end of period
|
$
|
7,158
|
|
|
$
|
7,927
|
|
1.
|
A. Nature of operations
|
|
|
|
|
|
|
Consolidated Statement of Financial Position
|
|
|
|
|
|
|
||||||
(Millions of dollars)
|
|
Balance as of December 31, 2018
|
|
Cumulative Impact from Adopting New Lease Guidance
|
|
Balance as of January 1, 2019
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Prepaid expenses and other current assets
|
|
$
|
1,765
|
|
|
$
|
(17
|
)
|
|
$
|
1,748
|
|
Property, plant and equipment - net
|
|
$
|
13,574
|
|
|
$
|
(26
|
)
|
|
$
|
13,548
|
|
Noncurrent deferred and refundable income taxes
|
|
$
|
1,439
|
|
|
$
|
(77
|
)
|
|
$
|
1,362
|
|
Other assets
|
|
$
|
2,332
|
|
|
$
|
713
|
|
|
$
|
3,045
|
|
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
||||||
Accrued expenses
|
|
$
|
3,573
|
|
|
$
|
(27
|
)
|
|
$
|
3,546
|
|
Other current liabilities
|
|
$
|
1,919
|
|
|
$
|
209
|
|
|
$
|
2,128
|
|
Long-term debt due after one year
|
|
|
|
|
|
|
||||||
Machinery, Energy & Transportation
|
|
$
|
8,005
|
|
|
$
|
(362
|
)
|
|
$
|
7,643
|
|
Other liabilities
|
|
$
|
3,756
|
|
|
$
|
538
|
|
|
$
|
4,294
|
|
|
|
|
|
|
|
|
||||||
Shareholders' equity
|
|
|
|
|
|
|
||||||
Profit employed in the business
|
|
$
|
30,427
|
|
|
$
|
235
|
|
|
$
|
30,662
|
|
|
|
|
|
|
|
|
3.
|
Sales and revenue contract information
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended March 31, 2019
|
|
Three Months Ended March 31, 2018
|
||||||||||||||||||
|
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
|
1,499,524
|
|
|
$
|
40.98
|
|
|
$
|
138.35
|
|
|
1,566,788
|
|
|
$
|
46.18
|
|
|
$
|
151.12
|
|
RSUs
|
657,389
|
|
|
$
|
138.35
|
|
|
$
|
138.35
|
|
|
676,228
|
|
|
$
|
151.12
|
|
|
$
|
151.12
|
|
PRSUs
|
342,097
|
|
|
$
|
138.35
|
|
|
$
|
138.35
|
|
|
339,559
|
|
|
$
|
151.12
|
|
|
$
|
151.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Millions of dollars)
|
Consolidated Statement of Financial
|
|
Asset (Liability) Fair Value
|
||||||
|
Position Location
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Designated derivatives
|
|
|
|
|
|
||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
Receivables – trade and other
|
|
$
|
19
|
|
|
$
|
16
|
|
Machinery, Energy & Transportation
|
Accrued expenses
|
|
(16
|
)
|
|
(26
|
)
|
||
Machinery, Energy & Transportation
|
Other liabilities
|
|
(3
|
)
|
|
(9
|
)
|
||
Financial Products
|
Receivables – trade and other
|
|
44
|
|
|
53
|
|
||
Financial Products
|
Long-term receivables – trade and other
|
|
44
|
|
|
35
|
|
||
Financial Products
|
Accrued expenses
|
|
(5
|
)
|
|
(9
|
)
|
||
Interest rate contracts
|
|
|
|
|
|
|
|||
Financial Products
|
Receivables – trade and other
|
|
—
|
|
|
1
|
|
||
Financial Products
|
Long-term receivables – trade and other
|
|
3
|
|
|
3
|
|
||
Financial Products
|
Accrued expenses
|
|
(58
|
)
|
|
(40
|
)
|
||
|
|
|
$
|
28
|
|
|
$
|
24
|
|
Undesignated derivatives
|
|
|
|
|
|
|
|
||
Foreign exchange contracts
|
|
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
Receivables – trade and other
|
|
$
|
2
|
|
|
$
|
2
|
|
Machinery, Energy & Transportation
|
Accrued expenses
|
|
(5
|
)
|
|
(21
|
)
|
||
Financial Products
|
Receivables – trade and other
|
|
9
|
|
|
15
|
|
||
Financial Products
|
Long-term receivables – trade and other
|
|
6
|
|
|
5
|
|
||
Financial Products
|
Accrued expenses
|
|
(13
|
)
|
|
(14
|
)
|
||
Commodity contracts
|
|
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
Receivables – trade and other
|
|
6
|
|
|
1
|
|
||
Machinery, Energy & Transportation
|
Accrued expenses
|
|
(8
|
)
|
|
(31
|
)
|
||
|
|
|
$
|
(3
|
)
|
|
$
|
(43
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Millions of dollars)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
|
|
|
||||
Machinery, Energy & Transportation
|
|
$
|
2,003
|
|
|
$
|
1,834
|
|
Financial Products
|
|
$
|
9,001
|
|
|
$
|
10,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash Flow Hedges
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended March 31, 2019
|
||||||||||||
|
|
|
Recognized in Earnings
|
||||||||||
(Millions of dollars)
|
Amount of Gains
(Losses) Recognized
in AOCI
|
|
Classification of
Gains (Losses) |
|
Amount of Gains
(Losses) Reclassified from AOCI |
|
Amount of the line items in the Consolidated Statement of Results of Operations containing hedging gains (losses)
|
||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
$
|
17
|
|
|
|
|
|
|
|
||||
|
|
|
|
Sales of Machinery, Energy & Transportation
|
|
$
|
1
|
|
|
$
|
12,724
|
|
|
|
|
|
Cost of goods sold
|
|
(3
|
)
|
|
$
|
9,003
|
|
|||
Financial Products
|
22
|
|
|
|
|
|
|
|
|||||
|
|
|
|
Interest expense of Financial Products
|
|
7
|
|
|
$
|
190
|
|
||
|
|
|
Other income (expense)
|
|
6
|
|
|
$
|
160
|
|
|||
Interest rate contracts
|
|
|
|
|
|
|
|
||||||
Machinery, Energy & Transportation
|
—
|
|
|
Interest expense excluding Financial Products
|
|
(1
|
)
|
|
$
|
103
|
|
||
Financial Products
|
(26
|
)
|
|
Interest expense of Financial Products
|
|
1
|
|
|
$
|
190
|
|
||
|
$
|
13
|
|
|
|
|
$
|
11
|
|
|
|
|
|
Three Months Ended March 31, 2018
|
||||||||||||
|
|
|
Recognized in Earnings
|
||||||||||
|
Amount of Gains
(Losses) Recognized in AOCI
(Effective Portion)
|
|
Classification of
Gains (Losses) |
|
Amount of Gains
(Losses) Reclassified from AOCI |
|
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
|
|
|
|
|
|
|
|
|
|
||||
Financial Products
|
—
|
|
|
Interest expense of Financial Products
|
|
1
|
|
|
—
|
|
|||
|
$
|
6
|
|
|
|
|
$
|
(24
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
(Millions of dollars)
|
Classification of Gains (Losses)
|
|
Three Months Ended March 31, 2019
|
|
Three Months Ended March 31, 2018
|
||||
Foreign exchange contracts
|
|
|
|
|
|
||||
Machinery, Energy & Transportation
|
Other income (expense)
|
|
$
|
6
|
|
|
$
|
16
|
|
Financial Products
|
Other income (expense)
|
|
(29
|
)
|
|
(7
|
)
|
||
Commodity contracts
|
|
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
Other income (expense)
|
|
23
|
|
|
(9
|
)
|
||
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
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
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
(19
|
)
|
|
$
|
—
|
|
|
$
|
8
|
|
Financial Products
|
|
106
|
|
|
—
|
|
|
106
|
|
|
(22
|
)
|
|
—
|
|
|
84
|
|
||||||
Total
|
|
$
|
133
|
|
|
$
|
—
|
|
|
$
|
133
|
|
|
$
|
(41
|
)
|
|
$
|
—
|
|
|
$
|
92
|
|
March 31, 2019
|
|
|
|
|
|
|
|
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
|
|
$
|
(32
|
)
|
|
$
|
—
|
|
|
$
|
(32
|
)
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
(13
|
)
|
Financial Products
|
|
(76
|
)
|
|
—
|
|
|
(76
|
)
|
|
22
|
|
|
—
|
|
|
(54
|
)
|
||||||
Total
|
|
$
|
(108
|
)
|
|
$
|
—
|
|
|
$
|
(108
|
)
|
|
$
|
41
|
|
|
$
|
—
|
|
|
$
|
(67
|
)
|
December 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
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
(19
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Financial Products
|
|
112
|
|
|
—
|
|
|
112
|
|
|
(34
|
)
|
|
—
|
|
|
78
|
|
||||||
Total
|
|
$
|
131
|
|
|
$
|
—
|
|
|
$
|
131
|
|
|
$
|
(53
|
)
|
|
$
|
—
|
|
|
$
|
78
|
|
December 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
|
|
$
|
(87
|
)
|
|
$
|
—
|
|
|
$
|
(87
|
)
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
(68
|
)
|
Financial Products
|
|
(63
|
)
|
|
—
|
|
|
(63
|
)
|
|
34
|
|
|
—
|
|
|
(29
|
)
|
||||||
Total
|
|
$
|
(150
|
)
|
|
$
|
—
|
|
|
$
|
(150
|
)
|
|
$
|
53
|
|
|
$
|
—
|
|
|
$
|
(97
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Millions of dollars)
|
March 31,
2019 |
|
December 31,
2018 |
||||
Raw materials
|
$
|
3,592
|
|
|
$
|
3,382
|
|
Work-in-process
|
2,737
|
|
|
2,674
|
|
||
Finished goods
|
5,785
|
|
|
5,241
|
|
||
Supplies
|
226
|
|
|
232
|
|
||
Total inventories
|
$
|
12,340
|
|
|
$
|
11,529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
March 31, 2019
|
||||||||||
(Millions of dollars)
|
Weighted
Amortizable
Life (Years)
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
||||||
Customer relationships
|
15
|
|
$
|
2,450
|
|
|
$
|
(1,283
|
)
|
|
$
|
1,167
|
|
Intellectual property
|
12
|
|
1,522
|
|
|
(966
|
)
|
|
556
|
|
|||
Other
|
13
|
|
199
|
|
|
(115
|
)
|
|
84
|
|
|||
Total finite-lived intangible assets
|
14
|
|
$
|
4,171
|
|
|
$
|
(2,364
|
)
|
|
$
|
1,807
|
|
|
|
|
December 31, 2018
|
||||||||||
|
Weighted
Amortizable
Life (Years)
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
||||||
Customer relationships
|
15
|
|
$
|
2,463
|
|
|
$
|
(1,249
|
)
|
|
$
|
1,214
|
|
Intellectual property
|
11
|
|
1,557
|
|
|
(965
|
)
|
|
592
|
|
|||
Other
|
13
|
|
199
|
|
|
(108
|
)
|
|
91
|
|
|||
Total finite-lived intangible assets
|
14
|
|
$
|
4,219
|
|
|
$
|
(2,322
|
)
|
|
$
|
1,897
|
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
Remaining Nine Months of 2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
$243
|
|
$310
|
|
$292
|
|
$273
|
|
$215
|
|
$474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(Millions of dollars)
|
|
December 31,
2018 |
|
Other Adjustments
1
|
|
March 31,
2019 |
||||||
Construction Industries
|
|
|
|
|
|
|
|
|||||
Goodwill
|
|
$
|
304
|
|
|
$
|
(1
|
)
|
|
$
|
303
|
|
Impairments
|
|
(22
|
)
|
|
—
|
|
|
(22
|
)
|
|||
Net goodwill
|
|
282
|
|
|
(1
|
)
|
|
281
|
|
|||
Resource Industries
|
|
|
|
|
|
|
||||||
Goodwill
|
|
4,172
|
|
|
(14
|
)
|
|
4,158
|
|
|||
Impairments
|
|
(1,175
|
)
|
|
—
|
|
|
(1,175
|
)
|
|||
Net goodwill
|
|
2,997
|
|
|
(14
|
)
|
|
2,983
|
|
|||
Energy & Transportation
|
|
|
|
|
|
|
||||||
Goodwill
|
|
2,882
|
|
|
(10
|
)
|
|
2,872
|
|
|||
All Other
2
|
|
|
|
|
|
|
||||||
Goodwill
|
|
56
|
|
|
(1
|
)
|
|
55
|
|
|||
Consolidated total
|
|
|
|
|
|
|
||||||
Goodwill
|
|
7,414
|
|
|
(26
|
)
|
|
7,388
|
|
|||
Impairments
|
|
(1,197
|
)
|
|
—
|
|
|
(1,197
|
)
|
|||
Net goodwill
|
|
$
|
6,217
|
|
|
$
|
(26
|
)
|
|
$
|
6,191
|
|
|
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(Millions of dollars)
|
Cost
Basis
|
|
Unrealized Pretax Net Gains
(Losses)
|
|
Fair
Value
|
|
Cost
Basis
|
|
Unrealized Pretax Net Gains
(Losses)
|
|
Fair
Value
|
||||||||||||
Government debt
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. treasury bonds
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
9
|
|
Other U.S. and non-U.S. government bonds
|
50
|
|
|
—
|
|
|
50
|
|
|
42
|
|
|
—
|
|
|
42
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate bonds
|
775
|
|
|
2
|
|
|
777
|
|
|
735
|
|
|
(15
|
)
|
|
720
|
|
||||||
Asset-backed securities
|
61
|
|
|
—
|
|
|
61
|
|
|
63
|
|
|
—
|
|
|
63
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. governmental agency
|
305
|
|
|
(1
|
)
|
|
304
|
|
|
301
|
|
|
(4
|
)
|
|
297
|
|
||||||
Residential
|
7
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
7
|
|
||||||
Commercial
|
17
|
|
|
—
|
|
|
17
|
|
|
14
|
|
|
(1
|
)
|
|
13
|
|
||||||
Total debt securities
|
$
|
1,224
|
|
|
$
|
1
|
|
|
$
|
1,225
|
|
|
$
|
1,171
|
|
|
$
|
(20
|
)
|
|
$
|
1,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Less than 12 months
1
|
|
12 months or more
1
|
|
Total
|
||||||||||||||||||
(Millions of dollars)
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
Corporate bonds
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate bonds
|
$
|
280
|
|
|
$
|
3
|
|
|
$
|
391
|
|
|
$
|
11
|
|
|
$
|
671
|
|
|
$
|
14
|
|
Asset-backed securities
|
6
|
|
|
—
|
|
|
38
|
|
|
1
|
|
|
44
|
|
|
1
|
|
||||||
Mortgage-backed debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. governmental agency
|
52
|
|
|
—
|
|
|
223
|
|
|
5
|
|
|
275
|
|
|
5
|
|
||||||
Commercial
|
—
|
|
|
—
|
|
|
14
|
|
|
1
|
|
|
14
|
|
|
1
|
|
||||||
Total
|
$
|
338
|
|
|
$
|
3
|
|
|
$
|
666
|
|
|
$
|
18
|
|
|
$
|
1,004
|
|
|
$
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
1
Indicates the length of time that individual securities have been in a continuous unrealized loss position.
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
||||||
(Millions of dollars)
|
Cost Basis
|
|
Fair Value
|
||||
Due in one year or less
|
$
|
132
|
|
|
$
|
132
|
|
Due after one year through five years
|
617
|
|
|
618
|
|
||
Due after five years through ten years
|
129
|
|
|
129
|
|
||
Due after ten years
|
17
|
|
|
18
|
|
||
U.S. governmental agency mortgage-backed securities
|
305
|
|
|
304
|
|
||
Residential mortgage-backed securities
|
7
|
|
|
7
|
|
||
Commercial mortgage-backed securities
|
17
|
|
|
17
|
|
||
Total debt securities – available-for-sale
|
$
|
1,224
|
|
|
$
|
1,225
|
|
|
|
|
|
|
|
|
|
U.S. Pension
Benefits
|
|
Non-U.S. Pension
Benefits
|
|
Other
Postretirement
Benefits
|
||||||||||||||||||
(Millions of dollars)
|
March 31
|
|
March 31
|
|
March 31
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
For the three months ended:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Components of net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
29
|
|
|
$
|
32
|
|
|
$
|
21
|
|
|
$
|
22
|
|
|
$
|
20
|
|
|
$
|
21
|
|
Interest cost
|
150
|
|
|
133
|
|
|
23
|
|
|
25
|
|
|
34
|
|
|
31
|
|
||||||
Expected return on plan assets
|
(181
|
)
|
|
(202
|
)
|
|
(37
|
)
|
|
(56
|
)
|
|
(5
|
)
|
|
(8
|
)
|
||||||
Amortization of prior service cost (credit)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(9
|
)
|
||||||
Net periodic benefit cost (benefit)
1
|
$
|
(2
|
)
|
|
$
|
(37
|
)
|
|
$
|
7
|
|
|
$
|
(9
|
)
|
|
$
|
39
|
|
|
$
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
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)
|
2019
|
|
2018
|
||||
U.S. Plans
|
$
|
137
|
|
|
$
|
73
|
|
Non-U.S. Plans
|
21
|
|
|
22
|
|
||
|
$
|
158
|
|
|
$
|
95
|
|
|
|
|
|
|
|
|
||
(Millions of dollars)
|
|
|
||
|
|
Three Months Ended March 31
|
||
|
|
2019
|
||
Operating lease cost
|
|
$
|
64
|
|
Short-term lease cost
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
||||
(Millions of dollars)
|
|
|
|
|
||||
|
|
March 31, 2019
|
|
January 1, 2019
|
||||
Operating Leases
|
|
|
|
|
||||
Other assets
|
|
$
|
689
|
|
|
$
|
713
|
|
Other current liabilities
|
|
$
|
188
|
|
|
$
|
209
|
|
Other liabilities
|
|
$
|
513
|
|
|
$
|
511
|
|
|
|
|
|
|
||||
Weighted average remaining lease term
|
|
|
|
|
||||
Operating leases
|
|
7 years
|
|
|
7 years
|
|
||
|
|
|
|
|
||||
Weighted average discount rates
|
|
|
|
|
||||
Operating leases
|
|
2
|
%
|
|
2
|
%
|
||
|
|
|
|
|
|
|
|
||
(Millions of dollars)
|
|
March 31, 2019
|
||
Amounts Due In
|
|
|
||
Remaining nine months of 2019
|
|
$
|
158
|
|
2020
|
|
163
|
|
|
2021
|
|
119
|
|
|
2022
|
|
76
|
|
|
2023
|
|
57
|
|
|
Thereafter
|
|
197
|
|
|
Total lease payments
|
|
770
|
|
|
Less: Imputed interest
|
|
(69
|
)
|
|
Total
|
|
$
|
701
|
|
|
|
|
||
|
|
|
||
|
|
December 31, 2018
|
||
Amounts Due In
|
|
|
||
2019
|
|
$
|
205
|
|
2020
|
|
154
|
|
|
2021
|
|
111
|
|
|
2022
|
|
67
|
|
|
2023
|
|
50
|
|
|
Thereafter
|
|
185
|
|
|
Total
|
|
$
|
772
|
|
|
|
|
|
|
|
|
|
||||
(Millions of dollars)
|
|
|
|
|
||||
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Equipment leased to others - at original cost
|
|
$
|
6,411
|
|
|
$
|
6,015
|
|
Less: Accumulated depreciation
|
|
(2,047
|
)
|
|
(1,744
|
)
|
||
Equipment leased to others - net
|
|
$
|
4,364
|
|
|
$
|
4,271
|
|
|
|
|
|
|
|
|
|
||
(Millions of dollars)
|
|
|
||
|
|
Three Months Ended March 31
|
||
|
|
2019
|
||
Finance lease revenue
|
|
$
|
119
|
|
Operating lease revenue
|
|
316
|
|
|
Total
|
|
$
|
435
|
|
|
|
|
(Millions of dollars)
|
March 31,
2019 |
|
December 31,
2018 |
||||
Caterpillar dealer performance guarantees
|
$
|
1,235
|
|
|
$
|
1,244
|
|
Customer loan guarantees
|
36
|
|
|
31
|
|
||
Supplier consortium performance guarantees
|
541
|
|
|
527
|
|
||
Third party logistics business lease guarantees
|
58
|
|
|
60
|
|
||
Other guarantees
|
127
|
|
|
116
|
|
||
Total guarantees
|
$
|
1,997
|
|
|
$
|
1,978
|
|
|
|
|
|
(Millions of dollars)
|
2019
|
||
Warranty liability, January 1
|
$
|
1,391
|
|
Reduction in liability (payments)
|
(199
|
)
|
|
Increase in liability (new warranties)
|
205
|
|
|
Warranty liability, March 31
|
$
|
1,397
|
|
|
|
|
(Millions of dollars)
|
2018
|
||
Warranty liability, January 1
|
$
|
1,419
|
|
Reduction in liability (payments)
|
(783
|
)
|
|
Increase in liability (new warranties)
|
755
|
|
|
Warranty liability, December 31
|
$
|
1,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Millions of dollars)
|
|
Foreign currency translation
|
|
Pension and other postretirement benefits
|
|
Derivative financial instruments
|
|
Available-for-sale securities
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2018
|
|
$
|
(1,601
|
)
|
|
$
|
12
|
|
|
$
|
(80
|
)
|
|
$
|
(15
|
)
|
|
$
|
(1,684
|
)
|
Adjustment to adopt new accounting guidance related to reclassification of certain tax effects from accumulated other comprehensive income
|
|
98
|
|
|
19
|
|
|
(9
|
)
|
|
—
|
|
|
108
|
|
|||||
Balance at January 1, 2019
|
|
(1,503
|
)
|
|
31
|
|
|
(89
|
)
|
|
(15
|
)
|
|
(1,576
|
)
|
|||||
Other comprehensive income (loss) before reclassifications
|
|
(22
|
)
|
|
—
|
|
|
10
|
|
|
15
|
|
|
3
|
|
|||||
Amounts reclassified from accumulated other comprehensive (income) loss
|
|
—
|
|
|
(7
|
)
|
|
(9
|
)
|
|
1
|
|
|
(15
|
)
|
|||||
Other comprehensive income (loss)
|
|
(22
|
)
|
|
(7
|
)
|
|
1
|
|
|
16
|
|
|
(12
|
)
|
|||||
Balance at March 31, 2019
|
|
$
|
(1,525
|
)
|
|
$
|
24
|
|
|
$
|
(88
|
)
|
|
$
|
1
|
|
|
$
|
(1,588
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31, 2017
|
|
$
|
(1,205
|
)
|
|
$
|
46
|
|
|
$
|
(41
|
)
|
|
$
|
8
|
|
|
$
|
(1,192
|
)
|
Adjustment to adopt recognition and measurement of financial assets and liabilities guidance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
(11
|
)
|
|||||
Balance at January 1, 2018
|
|
(1,205
|
)
|
|
46
|
|
|
(41
|
)
|
|
(3
|
)
|
|
(1,203
|
)
|
|||||
Other comprehensive income (loss) before reclassifications
|
|
183
|
|
|
(2
|
)
|
|
5
|
|
|
(11
|
)
|
|
175
|
|
|||||
Amounts reclassified from accumulated other comprehensive (income) loss
|
|
1
|
|
|
(7
|
)
|
|
18
|
|
|
—
|
|
|
12
|
|
|||||
Other comprehensive income (loss)
|
|
184
|
|
|
(9
|
)
|
|
23
|
|
|
(11
|
)
|
|
187
|
|
|||||
Balance at March 31, 2018
|
|
$
|
(1,021
|
)
|
|
$
|
37
|
|
|
$
|
(18
|
)
|
|
$
|
(14
|
)
|
|
$
|
(1,016
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. Beginning in 2019, operating lease right-of-use assets are included in segment assets. In 2018, the present value of future lease payments for certain Machinery, Energy and Transportation operating leases was included in segment assets while the estimated financing component of the lease payments was excluded. 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.
|
•
|
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 most 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:
May include 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 which may consist of accelerated depreciation, inventory write-downs, building demolition, equipment relocation and project management costs and LIFO inventory decrement benefits from inventory liquidations at closed facilities, all of which are primarily included in Cost of goods sold. Beginning in 2019, only certain restructuring costs are excluded from segment profit. A table, Reconciliation of Restructuring costs on page 39, has been included to illustrate how segment profit would have been impacted by the restructuring costs. See Note 20 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)
|
|||||||||||||||||||||||||||
|
2019
|
||||||||||||||||||||||||||
|
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
|
$
|
5,852
|
|
|
$
|
21
|
|
|
$
|
5,873
|
|
|
$
|
80
|
|
|
$
|
1,085
|
|
|
$
|
5,331
|
|
|
$
|
28
|
|
Resource Industries
|
2,647
|
|
|
80
|
|
|
2,727
|
|
|
105
|
|
|
576
|
|
|
6,417
|
|
|
23
|
|
|||||||
Energy & Transportation
|
4,233
|
|
|
977
|
|
|
5,210
|
|
|
152
|
|
|
838
|
|
|
8,565
|
|
|
98
|
|
|||||||
Machinery, Energy & Transportation
|
12,732
|
|
|
1,078
|
|
|
13,810
|
|
|
337
|
|
|
2,499
|
|
|
20,313
|
|
|
149
|
|
|||||||
Financial Products Segment
|
850
|
|
1
|
—
|
|
|
850
|
|
|
206
|
|
|
211
|
|
|
35,753
|
|
|
246
|
|
|||||||
Total
|
$
|
13,582
|
|
|
$
|
1,078
|
|
|
$
|
14,660
|
|
|
$
|
543
|
|
|
$
|
2,710
|
|
|
$
|
56,066
|
|
|
$
|
395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
2018
|
||||||||||||||||||||||||||
|
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
|
$
|
5,659
|
|
|
$
|
18
|
|
|
$
|
5,677
|
|
|
$
|
89
|
|
|
$
|
1,117
|
|
|
$
|
4,902
|
|
|
$
|
42
|
|
Resource Industries
|
2,208
|
|
|
101
|
|
|
2,309
|
|
|
116
|
|
|
378
|
|
|
6,442
|
|
|
23
|
|
|||||||
Energy & Transportation
|
4,276
|
|
|
943
|
|
|
5,219
|
|
|
158
|
|
|
874
|
|
|
8,386
|
|
|
162
|
|
|||||||
Machinery, Energy & Transportation
|
12,143
|
|
|
1,062
|
|
|
13,205
|
|
|
363
|
|
|
2,369
|
|
|
19,730
|
|
|
227
|
|
|||||||
Financial Products Segment
|
793
|
|
1
|
—
|
|
|
793
|
|
|
203
|
|
|
141
|
|
|
36,002
|
|
|
361
|
|
|||||||
Total
|
$
|
12,936
|
|
|
$
|
1,062
|
|
|
$
|
13,998
|
|
|
$
|
566
|
|
|
$
|
2,510
|
|
|
$
|
55,732
|
|
|
$
|
588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Revenues by Geographic Region
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Millions of dollars)
|
|
North
America |
|
Latin
America |
|
EAME
|
|
Asia/
Pacific |
|
External Sales and Revenues
|
||||||||||
Three Months Ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction Industries
|
|
$
|
2,965
|
|
|
$
|
319
|
|
|
$
|
1,006
|
|
|
$
|
1,562
|
|
|
$
|
5,852
|
|
Resource Industries
|
|
951
|
|
|
423
|
|
|
468
|
|
|
805
|
|
|
2,647
|
|
|||||
Energy & Transportation
|
|
2,151
|
|
|
332
|
|
|
1,032
|
|
|
718
|
|
|
4,233
|
|
|||||
All Other operating segment
|
|
8
|
|
|
—
|
|
|
11
|
|
|
18
|
|
|
37
|
|
|||||
Corporate Items and Eliminations
|
|
(41
|
)
|
|
1
|
|
|
(3
|
)
|
|
(2
|
)
|
|
(45
|
)
|
|||||
Machinery, Energy & Transportation Sales
|
|
6,034
|
|
|
1,075
|
|
|
2,514
|
|
|
3,101
|
|
|
12,724
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Products Segment
|
|
558
|
|
|
70
|
|
|
102
|
|
|
120
|
|
|
850
|
|
|||||
Corporate Items and Eliminations
|
|
(69
|
)
|
|
(11
|
)
|
|
(9
|
)
|
|
(19
|
)
|
|
(108
|
)
|
|||||
Financial Products Revenues
|
|
489
|
|
|
59
|
|
|
93
|
|
|
101
|
|
|
742
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Sales and Revenues
|
|
$
|
6,523
|
|
|
$
|
1,134
|
|
|
$
|
2,607
|
|
|
$
|
3,202
|
|
|
$
|
13,466
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended March 31, 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 segment
|
|
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
|
|
Three Months Ended March 31
|
||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
||||
Oil and gas
|
|
$
|
1,131
|
|
|
$
|
1,215
|
|
Power generation
|
|
1,036
|
|
|
969
|
|
||
Industrial
|
|
904
|
|
|
906
|
|
||
Transportation
|
|
1,162
|
|
|
1,186
|
|
||
Energy & Transportation External Sales
|
|
$
|
4,233
|
|
|
$
|
4,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Consolidated profit before taxes:
|
|
|
|
|
|
||||||
(Millions of dollars)
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidated
Total
|
||||||
Three Months Ended March 31, 2019
|
|
|
|
|
|
||||||
Total profit from reportable segments
|
$
|
2,499
|
|
|
$
|
211
|
|
|
$
|
2,710
|
|
All Other operating segment
|
25
|
|
|
—
|
|
|
25
|
|
|||
Cost centers
|
24
|
|
|
—
|
|
|
24
|
|
|||
Corporate costs
|
(171
|
)
|
|
(5
|
)
|
|
(176
|
)
|
|||
Timing
|
(66
|
)
|
|
—
|
|
|
(66
|
)
|
|||
Restructuring costs
|
(39
|
)
|
|
—
|
|
|
(39
|
)
|
|||
Methodology differences:
|
|
|
|
|
|
|
|
||||
Inventory/cost of sales
|
7
|
|
|
—
|
|
|
7
|
|
|||
Postretirement benefit expense
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
|||
Stock-based compensation expense
|
(43
|
)
|
|
(2
|
)
|
|
(45
|
)
|
|||
Financing costs
|
(64
|
)
|
|
—
|
|
|
(64
|
)
|
|||
Currency
|
44
|
|
|
—
|
|
|
44
|
|
|||
Other income/expense methodology differences
|
(129
|
)
|
|
—
|
|
|
(129
|
)
|
|||
Other methodology differences
|
(12
|
)
|
|
2
|
|
|
(10
|
)
|
|||
Total consolidated profit before taxes
|
$
|
2,058
|
|
|
$
|
206
|
|
|
$
|
2,264
|
|
|
|
|
|
|
|
||||||
Three Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|||
Total profit from reportable segments
|
$
|
2,369
|
|
|
$
|
141
|
|
|
$
|
2,510
|
|
All Other operating segment
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Assets:
|
|
|
|
|
|
|
|
||||||||
(Millions of dollars)
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||
March 31, 2019
|
|
|
|
|
|
|
|
||||||||
Total assets from reportable segments
|
$
|
20,313
|
|
|
$
|
35,753
|
|
|
$
|
—
|
|
|
$
|
56,066
|
|
All Other operating segment
|
1,393
|
|
|
—
|
|
|
—
|
|
|
1,393
|
|
||||
Items not included in segment assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and short-term investments
|
6,358
|
|
|
—
|
|
|
—
|
|
|
6,358
|
|
||||
Intercompany receivables
|
1,579
|
|
|
—
|
|
|
(1,579
|
)
|
|
—
|
|
||||
Investment in Financial Products
|
3,843
|
|
|
—
|
|
|
(3,843
|
)
|
|
—
|
|
||||
Deferred income taxes
|
1,931
|
|
|
—
|
|
|
(674
|
)
|
|
1,257
|
|
||||
Goodwill and intangible assets
|
4,429
|
|
|
—
|
|
|
—
|
|
|
4,429
|
|
||||
Property, plant and equipment – net and other assets
|
2,230
|
|
|
—
|
|
|
—
|
|
|
2,230
|
|
||||
Inventory methodology differences
|
(2,364
|
)
|
|
—
|
|
|
—
|
|
|
(2,364
|
)
|
||||
Liabilities included in segment assets
|
9,956
|
|
|
—
|
|
|
—
|
|
|
9,956
|
|
||||
Other
|
(645
|
)
|
|
69
|
|
|
(23
|
)
|
|
(599
|
)
|
||||
Total assets
|
$
|
49,023
|
|
|
$
|
35,822
|
|
|
$
|
(6,119
|
)
|
|
$
|
78,726
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total assets from reportable segments
|
$
|
19,730
|
|
|
$
|
36,002
|
|
|
$
|
—
|
|
|
$
|
55,732
|
|
All Other operating segment
|
1,279
|
|
|
—
|
|
|
—
|
|
|
1,279
|
|
||||
Items not included in segment assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and short-term investments
|
6,968
|
|
|
—
|
|
|
—
|
|
|
6,968
|
|
||||
Intercompany receivables
|
1,633
|
|
|
—
|
|
|
(1,633
|
)
|
|
—
|
|
||||
Investment in Financial Products
|
3,672
|
|
|
—
|
|
|
(3,672
|
)
|
|
—
|
|
||||
Deferred income taxes
|
2,015
|
|
|
—
|
|
|
(692
|
)
|
|
1,323
|
|
||||
Goodwill and intangible assets
|
4,279
|
|
|
—
|
|
|
—
|
|
|
4,279
|
|
||||
Property, plant and equipment – net and other assets
|
1,802
|
|
|
—
|
|
|
—
|
|
|
1,802
|
|
||||
Inventory methodology differences
|
(2,503
|
)
|
|
—
|
|
|
—
|
|
|
(2,503
|
)
|
||||
Liabilities included in segment assets
|
9,766
|
|
|
—
|
|
|
—
|
|
|
9,766
|
|
||||
Other
|
(166
|
)
|
|
66
|
|
|
(37
|
)
|
|
(137
|
)
|
||||
Total assets
|
$
|
48,475
|
|
|
$
|
36,068
|
|
|
$
|
(6,034
|
)
|
|
$
|
78,509
|
|
|
Reconciliations of Depreciation and amortization:
|
|
|
|
|
|
||||||
(Millions of dollars)
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidated
Total
|
||||||
Three Months Ended March 31, 2019
|
|
|
|
|
|
||||||
Total depreciation and amortization from reportable segments
|
$
|
337
|
|
|
$
|
206
|
|
|
$
|
543
|
|
Items not included in segment depreciation and amortization:
|
|
|
|
|
|
|
|
|
|||
All Other operating segment
|
52
|
|
|
—
|
|
|
52
|
|
|||
Cost centers
|
32
|
|
|
—
|
|
|
32
|
|
|||
Other
|
3
|
|
|
11
|
|
|
14
|
|
|||
Total depreciation and amortization
|
$
|
424
|
|
|
$
|
217
|
|
|
$
|
641
|
|
|
|
|
|
|
|
||||||
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 segment
|
57
|
|
|
—
|
|
|
57
|
|
|||
Cost centers
|
31
|
|
|
—
|
|
|
31
|
|
|||
Other
|
17
|
|
|
10
|
|
|
27
|
|
|||
Total depreciation and amortization
|
$
|
468
|
|
|
$
|
213
|
|
|
$
|
681
|
|
|
|
|
|
|
|
Reconciliations of Capital expenditures:
|
|
|
|
|
|
|
|
||||||||
(Millions of dollars)
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||
Three Months Ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total capital expenditures from reportable segments
|
$
|
149
|
|
|
$
|
246
|
|
|
$
|
—
|
|
|
$
|
395
|
|
Items not included in segment capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
||||
All Other operating segment
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
||||
Cost centers
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
||||
Timing
|
134
|
|
|
—
|
|
|
—
|
|
|
134
|
|
||||
Other
|
(19
|
)
|
|
5
|
|
|
(1
|
)
|
|
(15
|
)
|
||||
Total capital expenditures
|
$
|
297
|
|
|
$
|
251
|
|
|
$
|
(1
|
)
|
|
$
|
547
|
|
|
|
|
|
|
|
|
|
||||||||
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 segment
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||
Cost centers
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||
Timing
|
175
|
|
|
—
|
|
|
—
|
|
|
175
|
|
||||
Other
|
(104
|
)
|
|
77
|
|
|
(4
|
)
|
|
(31
|
)
|
||||
Total capital expenditures
|
$
|
323
|
|
|
$
|
438
|
|
|
$
|
(4
|
)
|
|
$
|
757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
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, 2019
|
||||||||||
Allowance for Credit Losses:
|
Customer
|
|
Dealer
|
|
Total
|
||||||
Balance at beginning of year
|
$
|
486
|
|
|
$
|
21
|
|
|
$
|
507
|
|
Receivables written off
|
(38
|
)
|
|
—
|
|
|
(38
|
)
|
|||
Recoveries on receivables previously written off
|
8
|
|
|
—
|
|
|
8
|
|
|||
Provision for credit losses
|
39
|
|
|
13
|
|
|
52
|
|
|||
Balance at end of period
|
$
|
495
|
|
|
$
|
34
|
|
|
$
|
529
|
|
|
|
|
|
|
|
|
|
|
|||
Individually evaluated for impairment
|
$
|
302
|
|
|
$
|
27
|
|
|
$
|
329
|
|
Collectively evaluated for impairment
|
193
|
|
|
7
|
|
|
200
|
|
|||
Ending Balance
|
$
|
495
|
|
|
$
|
34
|
|
|
$
|
529
|
|
|
|
|
|
|
|
||||||
Recorded Investment in Finance Receivables:
|
|
|
|
|
|
|
|
|
|||
Individually evaluated for impairment
|
$
|
813
|
|
|
$
|
78
|
|
|
$
|
891
|
|
Collectively evaluated for impairment
|
17,881
|
|
|
3,347
|
|
|
21,228
|
|
|||
Ending Balance
|
$
|
18,694
|
|
|
$
|
3,425
|
|
|
$
|
22,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(Millions of dollars)
|
December 31, 2018
|
||||||||||
Allowance for Credit Losses:
|
Customer
|
|
Dealer
|
|
Total
|
||||||
Balance at beginning of year
|
$
|
353
|
|
|
$
|
9
|
|
|
$
|
362
|
|
Receivables written off
|
(235
|
)
|
|
—
|
|
|
(235
|
)
|
|||
Recoveries on receivables previously written off
|
46
|
|
|
—
|
|
|
46
|
|
|||
Provision for credit losses
|
337
|
|
|
12
|
|
|
349
|
|
|||
Other
|
(15
|
)
|
|
—
|
|
|
(15
|
)
|
|||
Balance at end of year
|
$
|
486
|
|
|
$
|
21
|
|
|
$
|
507
|
|
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
$
|
288
|
|
|
$
|
14
|
|
|
$
|
302
|
|
Collectively evaluated for impairment
|
198
|
|
|
7
|
|
|
205
|
|
|||
Ending Balance
|
$
|
486
|
|
|
$
|
21
|
|
|
$
|
507
|
|
|
|
|
|
|
|
||||||
Recorded Investment in Finance Receivables:
|
|
|
|
|
|
|
|
|
|||
Individually evaluated for impairment
|
$
|
858
|
|
|
$
|
78
|
|
|
$
|
936
|
|
Collectively evaluated for impairment
|
18,152
|
|
|
3,338
|
|
|
21,490
|
|
|||
Ending Balance
|
$
|
19,010
|
|
|
$
|
3,416
|
|
|
$
|
22,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
March 31, 2019
|
||||||||||||||||||||||||||
(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
|
$
|
89
|
|
|
$
|
18
|
|
|
$
|
44
|
|
|
$
|
151
|
|
|
$
|
7,786
|
|
|
$
|
7,937
|
|
|
$
|
10
|
|
Europe
|
31
|
|
|
17
|
|
|
158
|
|
|
206
|
|
|
2,794
|
|
|
3,000
|
|
|
7
|
|
|||||||
Asia Pacific
|
28
|
|
|
13
|
|
|
12
|
|
|
53
|
|
|
2,450
|
|
|
2,503
|
|
|
8
|
|
|||||||
Mining
|
—
|
|
|
—
|
|
|
20
|
|
|
20
|
|
|
1,663
|
|
|
1,683
|
|
|
10
|
|
|||||||
Latin America
|
48
|
|
|
42
|
|
|
73
|
|
|
163
|
|
|
1,385
|
|
|
1,548
|
|
|
—
|
|
|||||||
Caterpillar Power Finance
|
14
|
|
|
8
|
|
|
365
|
|
|
387
|
|
|
1,636
|
|
|
2,023
|
|
|
2
|
|
|||||||
Dealer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,911
|
|
|
1,911
|
|
|
—
|
|
|||||||
Europe
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
332
|
|
|
332
|
|
|
—
|
|
|||||||
Asia Pacific
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
466
|
|
|
466
|
|
|
—
|
|
|||||||
Mining
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|||||||
Latin America
|
1
|
|
|
1
|
|
|
78
|
|
|
80
|
|
|
631
|
|
|
711
|
|
|
—
|
|
|||||||
Caterpillar Power Finance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|||||||
Total
|
$
|
211
|
|
|
$
|
99
|
|
|
$
|
750
|
|
|
$
|
1,060
|
|
|
$
|
21,059
|
|
|
$
|
22,119
|
|
|
$
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
December 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
|
$
|
65
|
|
|
$
|
18
|
|
|
$
|
84
|
|
|
$
|
167
|
|
|
$
|
7,825
|
|
|
$
|
7,992
|
|
|
$
|
14
|
|
Europe
|
19
|
|
|
9
|
|
|
153
|
|
|
181
|
|
|
2,850
|
|
|
3,031
|
|
|
5
|
|
|||||||
Asia Pacific
|
24
|
|
|
9
|
|
|
8
|
|
|
41
|
|
|
2,409
|
|
|
2,450
|
|
|
5
|
|
|||||||
Mining
|
28
|
|
|
1
|
|
|
9
|
|
|
38
|
|
|
1,642
|
|
|
1,680
|
|
|
—
|
|
|||||||
Latin America
|
38
|
|
|
29
|
|
|
71
|
|
|
138
|
|
|
1,421
|
|
|
1,559
|
|
|
—
|
|
|||||||
Caterpillar Power Finance
|
10
|
|
|
1
|
|
|
384
|
|
|
395
|
|
|
1,903
|
|
|
2,298
|
|
|
—
|
|
|||||||
Dealer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
North America
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,895
|
|
|
1,895
|
|
|
—
|
|
|||||||
Europe
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
333
|
|
|
333
|
|
|
—
|
|
|||||||
Asia Pacific
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
466
|
|
|
466
|
|
|
—
|
|
|||||||
Mining
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|||||||
Latin America
|
—
|
|
|
—
|
|
|
78
|
|
|
78
|
|
|
638
|
|
|
716
|
|
|
—
|
|
|||||||
Caterpillar Power Finance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|||||||
Total
|
$
|
184
|
|
|
$
|
67
|
|
|
$
|
787
|
|
|
$
|
1,038
|
|
|
$
|
21,388
|
|
|
$
|
22,426
|
|
|
$
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(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
|
$
|
9
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
10
|
|
|
$
|
—
|
|
Europe
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
||||||
Asia Pacific
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Mining
|
29
|
|
|
29
|
|
|
—
|
|
|
33
|
|
|
33
|
|
|
—
|
|
||||||
Latin America
|
20
|
|
|
20
|
|
|
—
|
|
|
29
|
|
|
29
|
|
|
—
|
|
||||||
Caterpillar Power Finance
|
48
|
|
|
48
|
|
|
—
|
|
|
69
|
|
|
83
|
|
|
—
|
|
||||||
Total
|
$
|
107
|
|
|
$
|
107
|
|
|
$
|
—
|
|
|
$
|
142
|
|
|
$
|
156
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired Finance Receivables With An Allowance Recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
41
|
|
|
$
|
38
|
|
|
$
|
16
|
|
|
$
|
40
|
|
|
$
|
41
|
|
|
$
|
14
|
|
Europe
|
93
|
|
|
93
|
|
|
57
|
|
|
92
|
|
|
92
|
|
|
57
|
|
||||||
Asia Pacific
|
9
|
|
|
9
|
|
|
3
|
|
|
4
|
|
|
4
|
|
|
2
|
|
||||||
Mining
|
32
|
|
|
31
|
|
|
14
|
|
|
56
|
|
|
55
|
|
|
26
|
|
||||||
Latin America
|
76
|
|
|
76
|
|
|
27
|
|
|
75
|
|
|
75
|
|
|
25
|
|
||||||
Caterpillar Power Finance
|
455
|
|
|
468
|
|
|
185
|
|
|
449
|
|
|
455
|
|
|
164
|
|
||||||
Total
|
$
|
706
|
|
|
$
|
715
|
|
|
$
|
302
|
|
|
$
|
716
|
|
|
$
|
722
|
|
|
$
|
288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Impaired Finance Receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
50
|
|
|
$
|
47
|
|
|
$
|
16
|
|
|
$
|
50
|
|
|
$
|
51
|
|
|
$
|
14
|
|
Europe
|
94
|
|
|
94
|
|
|
57
|
|
|
93
|
|
|
93
|
|
|
57
|
|
||||||
Asia Pacific
|
9
|
|
|
9
|
|
|
3
|
|
|
4
|
|
|
4
|
|
|
2
|
|
||||||
Mining
|
61
|
|
|
60
|
|
|
14
|
|
|
89
|
|
|
88
|
|
|
26
|
|
||||||
Latin America
|
96
|
|
|
96
|
|
|
27
|
|
|
104
|
|
|
104
|
|
|
25
|
|
||||||
Caterpillar Power Finance
|
503
|
|
|
516
|
|
|
185
|
|
|
518
|
|
|
538
|
|
|
164
|
|
||||||
Total
|
$
|
813
|
|
|
$
|
822
|
|
|
$
|
302
|
|
|
$
|
858
|
|
|
$
|
878
|
|
|
$
|
288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2019
|
|
Three Months Ended March 31, 2018
|
||||||||||||
(Millions of dollars)
|
Average Recorded
Investment
|
|
Interest Income
Recognized
|
|
Average Recorded
Investment
|
|
Interest Income
Recognized
|
||||||||
Impaired Finance Receivables With No Allowance Recorded
|
|
|
|
|
|
|
|
|
|
|
|
||||
North America
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
—
|
|
Europe
|
1
|
|
|
—
|
|
|
36
|
|
|
—
|
|
||||
Asia Pacific
|
—
|
|
|
—
|
|
|
31
|
|
|
1
|
|
||||
Mining
|
31
|
|
|
—
|
|
|
103
|
|
|
1
|
|
||||
Latin America
|
24
|
|
|
—
|
|
|
45
|
|
|
1
|
|
||||
Caterpillar Power Finance
|
60
|
|
|
1
|
|
|
172
|
|
|
2
|
|
||||
Total
|
$
|
126
|
|
|
$
|
1
|
|
|
$
|
404
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
||||||||
Impaired Finance Receivables With An Allowance Recorded
|
|
|
|
|
|
|
|
|
|
|
|
||||
North America
|
$
|
40
|
|
|
$
|
1
|
|
|
$
|
51
|
|
|
$
|
1
|
|
Europe
|
94
|
|
|
1
|
|
|
19
|
|
|
—
|
|
||||
Asia Pacific
|
7
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||
Mining
|
43
|
|
|
1
|
|
|
17
|
|
|
—
|
|
||||
Latin America
|
77
|
|
|
1
|
|
|
87
|
|
|
1
|
|
||||
Caterpillar Power Finance
|
451
|
|
|
3
|
|
|
360
|
|
|
1
|
|
||||
Total
|
$
|
712
|
|
|
$
|
7
|
|
|
$
|
540
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
||||||||
Total Impaired Finance Receivables
|
|
|
|
|
|
|
|
|
|
|
|
||||
North America
|
$
|
50
|
|
|
$
|
1
|
|
|
$
|
68
|
|
|
$
|
1
|
|
Europe
|
95
|
|
|
1
|
|
|
55
|
|
|
—
|
|
||||
Asia Pacific
|
7
|
|
|
—
|
|
|
37
|
|
|
1
|
|
||||
Mining
|
74
|
|
|
1
|
|
|
120
|
|
|
1
|
|
||||
Latin America
|
101
|
|
|
1
|
|
|
132
|
|
|
2
|
|
||||
Caterpillar Power Finance
|
511
|
|
|
4
|
|
|
532
|
|
|
3
|
|
||||
Total
|
$
|
838
|
|
|
$
|
8
|
|
|
$
|
944
|
|
|
$
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Millions of dollars)
|
March 31, 2019
|
|
December 31, 2018
|
||||
North America
|
$
|
73
|
|
|
$
|
77
|
|
Europe
|
171
|
|
|
154
|
|
||
Asia Pacific
|
6
|
|
|
4
|
|
||
Mining
|
18
|
|
|
50
|
|
||
Latin America
|
118
|
|
|
106
|
|
||
Caterpillar Power Finance
|
442
|
|
|
416
|
|
||
Total
|
$
|
828
|
|
|
$
|
807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended March 31, 2019
|
|
Three Months Ended March 31, 2018
|
||||||||||||||||
(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
|
|
Europe
|
|
19
|
|
11
|
|
|
7
|
|
|
—
|
|
—
|
|
|
—
|
|
||||
Mining
|
|
—
|
|
—
|
|
|
—
|
|
|
1
|
|
29
|
|
|
29
|
|
||||
Latin America
|
|
—
|
|
—
|
|
|
—
|
|
|
1
|
|
3
|
|
|
3
|
|
||||
Caterpillar Power Finance
|
|
8
|
|
51
|
|
|
50
|
|
|
3
|
|
3
|
|
|
3
|
|
||||
Total
|
|
27
|
|
$
|
62
|
|
|
$
|
57
|
|
|
18
|
|
$
|
41
|
|
|
$
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
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, 2019
|
||||||||||||||||||
(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
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9
|
|
Other U.S. and non-U.S. government bonds
|
—
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|||||
Corporate bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Corporate bonds
|
—
|
|
|
777
|
|
|
—
|
|
|
—
|
|
|
777
|
|
|||||
Asset-backed securities
|
—
|
|
|
61
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|||||
Mortgage-backed debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. governmental agency
|
—
|
|
|
304
|
|
|
—
|
|
|
—
|
|
|
304
|
|
|||||
Residential
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||
Commercial
|
—
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|||||
Total debt securities
|
9
|
|
|
1,216
|
|
|
—
|
|
|
—
|
|
|
1,225
|
|
|||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Large capitalization value
|
294
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
294
|
|
|||||
Smaller company growth
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|||||
REIT
|
—
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|
120
|
|
|||||
Total equity securities
|
347
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|
467
|
|
|||||
Derivative financial instruments, net
|
—
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|||||
Total assets
|
$
|
356
|
|
|
$
|
1,241
|
|
|
$
|
—
|
|
|
$
|
120
|
|
|
$
|
1,717
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
December 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
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9
|
|
Other U.S. and non-U.S. government bonds
|
—
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|||||
Corporate bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Corporate bonds
|
—
|
|
|
720
|
|
|
—
|
|
|
—
|
|
|
720
|
|
|||||
Asset-backed securities
|
—
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
63
|
|
|||||
Mortgage-backed debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
U.S. governmental agency
|
—
|
|
|
297
|
|
|
—
|
|
|
—
|
|
|
297
|
|
|||||
Residential
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||
Commercial
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|||||
Total debt securities
|
9
|
|
|
1,142
|
|
|
—
|
|
|
—
|
|
|
1,151
|
|
|||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Large capitalization value
|
260
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
260
|
|
|||||
Smaller company growth
|
46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|||||
REIT
|
—
|
|
|
—
|
|
|
—
|
|
|
119
|
|
|
119
|
|
|||||
Total equity securities
|
306
|
|
|
—
|
|
|
—
|
|
|
119
|
|
|
425
|
|
|||||
Total assets
|
$
|
315
|
|
|
$
|
1,142
|
|
|
$
|
—
|
|
|
$
|
119
|
|
|
$
|
1,576
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivative financial instruments, net
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19
|
|
Total liabilities
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value of Financial Instruments
|
|
|
|
|
||||||||||||||
|
|
March 31, 2019
|
|
December 31, 2018
|
|
|
|
|
||||||||||||
(Millions of dollars)
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Fair Value Levels
|
|
Reference
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and short-term investments
|
|
$
|
7,128
|
|
|
$
|
7,128
|
|
|
$
|
7,857
|
|
|
$
|
7,857
|
|
|
1
|
|
|
Restricted cash and short-term investments
|
|
$
|
30
|
|
|
$
|
30
|
|
|
$
|
33
|
|
|
$
|
33
|
|
|
1
|
|
|
Investments in debt and equity securities
|
|
$
|
1,692
|
|
|
$
|
1,692
|
|
|
$
|
1,576
|
|
|
$
|
1,576
|
|
|
1 & 2
|
|
Note 8
|
Finance receivables – net (excluding finance leases
1
)
|
|
$
|
14,340
|
|
|
$
|
14,480
|
|
|
$
|
14,714
|
|
|
$
|
14,798
|
|
|
3
|
|
Note 17
|
Wholesale inventory receivables – net (excluding finance leases
1
)
|
|
$
|
1,132
|
|
|
$
|
1,103
|
|
|
$
|
1,050
|
|
|
$
|
1,025
|
|
|
3
|
|
|
Foreign currency contracts – net
|
|
$
|
82
|
|
|
$
|
82
|
|
|
$
|
47
|
|
|
$
|
47
|
|
|
2
|
|
Note 5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Short-term borrowings
|
|
$
|
5,590
|
|
|
$
|
5,590
|
|
|
$
|
5,723
|
|
|
$
|
5,723
|
|
|
1
|
|
|
Long-term debt (including amounts due within one year)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Machinery, Energy & Transportation
|
|
$
|
7,663
|
|
|
$
|
9,155
|
|
|
$
|
8,015
|
|
|
$
|
9,046
|
|
|
2
|
|
|
Financial Products
|
|
$
|
22,529
|
|
|
$
|
22,633
|
|
|
$
|
22,815
|
|
|
$
|
22,684
|
|
|
2
|
|
|
Interest rate contracts – net
|
|
$
|
55
|
|
|
$
|
55
|
|
|
$
|
36
|
|
|
$
|
36
|
|
|
2
|
|
Note 5
|
Commodity contracts – net
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
30
|
|
|
$
|
30
|
|
|
2
|
|
Note 5
|
Guarantees
|
|
$
|
10
|
|
|
$
|
10
|
|
|
$
|
8
|
|
|
$
|
8
|
|
|
3
|
|
Note 11
|
1
|
Represents finance leases and failed sales leasebacks of
$7,495 million
at
March 31, 2019
and finance leases of
$7,463 million
at
December 31, 2018
, respectively.
|
|
|
|
|
|
|
|
Three Months Ended March 31
|
||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
||||
Investment and interest income
|
|
$
|
52
|
|
|
$
|
36
|
|
Foreign exchange gains (losses)
1
|
|
18
|
|
|
(19
|
)
|
||
License fee income
|
|
25
|
|
|
31
|
|
||
Net periodic pension and OPEB income (cost), excluding service cost
|
|
26
|
|
|
86
|
|
||
Gains (losses) on securities
|
|
39
|
|
|
(2
|
)
|
||
Miscellaneous income (loss)
|
|
—
|
|
|
(5
|
)
|
||
Total
|
|
$
|
160
|
|
|
$
|
127
|
|
|
|
|
|
|
|
|
|
||
(Millions of dollars)
|
|
|
||
Liability balance at December 31, 2017
|
$
|
249
|
|
|
Increase in liability (separation charges)
|
112
|
|
||
Reduction in liability (payments)
|
(276
|
)
|
||
Liability balance at December 31, 2018
|
85
|
|
||
Increase in liability (separation charges)
|
15
|
|
||
Reduction in liability (payments)
|
(41
|
)
|
||
Liability balance at March 31, 2019
|
$
|
59
|
|
|
|
|
•
|
First-quarter sales and revenues were $13.466 billion, compared with $12.859 billion in the first quarter of 2018. Sales increased in Resource Industries and
Construction Industries
, while
Energy & Transportation
was about flat. Financial Products'
revenues increased slightly.
|
•
|
Operating profit as a percent of sales and revenues was 16.4 percent in the first quarter of 2019 and 2018.
|
•
|
Profit per share was $3.25 in the first quarter of 2019, compared with $2.74 in the first quarter of 2018. Profit per share in the first quarter of 2019 included a discrete tax benefit related to U.S. tax reform of $178 million, or $0.31 per share. Profit per share in the first quarter of 2018 included restructuring costs of $0.08 per share.
|
•
|
During the first quarter of 2019,
Machinery, Energy & Transportation (ME&T)
operating cash flow was $860 million. In the quarter, the company deployed significant capital through the repurchase of $751 million of Caterpillar common stock and a dividend payment of $494 million. The enterprise cash balance at the end of the first quarter of 2019 was $7.1 billion.
|
•
|
Glossary of terms is included on pages 60-62; first occurrence of terms shown in bold italics.
|
•
|
Information on non-GAAP financial measures is included on page 67.
|
Sales and Revenues by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(Millions of dollars)
|
First Quarter 2018
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-Segment / Other
|
|
First Quarter 2019
|
|
$
Change
|
|
%
Change
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Construction Industries
|
$
|
5,677
|
|
|
$
|
164
|
|
|
$
|
156
|
|
|
$
|
(127
|
)
|
|
$
|
3
|
|
|
$
|
5,873
|
|
|
$
|
196
|
|
|
3
|
%
|
Resource Industries
|
2,309
|
|
|
371
|
|
|
110
|
|
|
(42
|
)
|
|
(21
|
)
|
|
2,727
|
|
|
418
|
|
|
18
|
%
|
|||||||
Energy & Transportation
|
5,219
|
|
|
21
|
|
|
27
|
|
|
(91
|
)
|
|
34
|
|
|
5,210
|
|
|
(9
|
)
|
|
—
|
%
|
|||||||
All Other Segment
|
116
|
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
5
|
|
|
121
|
|
|
5
|
|
|
4
|
%
|
|||||||
Corporate Items and Eliminations
|
(1,171
|
)
|
|
(14
|
)
|
|
(1
|
)
|
|
—
|
|
|
(21
|
)
|
|
(1,207
|
)
|
|
(36
|
)
|
|
|
|
|||||||
Machinery, Energy & Transportation Sales
|
12,150
|
|
|
543
|
|
|
292
|
|
|
(261
|
)
|
|
—
|
|
|
12,724
|
|
|
574
|
|
|
5
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Financial Products Segment
|
793
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|
850
|
|
|
57
|
|
|
7
|
%
|
|||||||
Corporate Items and Eliminations
|
(84
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
(108
|
)
|
|
(24
|
)
|
|
|
|
|||||||
Financial Products Revenues
|
709
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
742
|
|
|
33
|
|
|
5
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Consolidated Sales and Revenues
|
$
|
12,859
|
|
|
$
|
543
|
|
|
$
|
292
|
|
|
$
|
(261
|
)
|
|
$
|
33
|
|
|
$
|
13,466
|
|
|
$
|
607
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Construction Industries
|
$
|
2,965
|
|
|
13
|
%
|
|
$
|
319
|
|
|
(7
|
%)
|
|
$
|
1,006
|
|
|
(6
|
%)
|
|
$
|
1,562
|
|
|
(4
|
%)
|
|
$
|
5,852
|
|
|
3
|
%
|
|
$
|
21
|
|
|
17
|
%
|
|
$
|
5,873
|
|
|
3
|
%
|
Resource Industries
|
951
|
|
|
19
|
%
|
|
423
|
|
|
18
|
%
|
|
468
|
|
|
(10
|
%)
|
|
805
|
|
|
52
|
%
|
|
2,647
|
|
|
20
|
%
|
|
80
|
|
|
(21
|
%)
|
|
2,727
|
|
|
18
|
%
|
|||||||
Energy & Transportation
|
2,151
|
|
|
(3
|
%)
|
|
332
|
|
|
19
|
%
|
|
1,032
|
|
|
(5
|
%)
|
|
718
|
|
|
6
|
%
|
|
4,233
|
|
|
(1
|
%)
|
|
977
|
|
|
4
|
%
|
|
5,210
|
|
|
—
|
%
|
|||||||
All Other Segment
|
8
|
|
|
(47
|
%)
|
|
—
|
|
|
—
|
%
|
|
11
|
|
|
175
|
%
|
|
18
|
|
|
—
|
%
|
|
37
|
|
|
—
|
%
|
|
84
|
|
|
6
|
%
|
|
121
|
|
|
4
|
%
|
|||||||
Corporate Items and Eliminations
|
(41
|
)
|
|
|
|
1
|
|
|
|
|
(3
|
)
|
|
|
|
(2
|
)
|
|
|
|
(45
|
)
|
|
|
|
(1,162
|
)
|
|
|
|
(1,207
|
)
|
|
|
||||||||||||||
Machinery, Energy & Transportation Sales
|
6,034
|
|
|
7
|
%
|
|
1,075
|
|
|
9
|
%
|
|
2,514
|
|
|
(6
|
%)
|
|
3,101
|
|
|
9
|
%
|
|
12,724
|
|
|
5
|
%
|
|
—
|
|
|
—
|
|
|
12,724
|
|
|
5
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Financial Products Segment
|
558
|
|
|
9
|
%
|
|
70
|
|
|
(5
|
%)
|
|
102
|
|
|
1
|
%
|
|
120
|
|
|
13
|
%
|
|
850
|
|
1
|
7
|
%
|
|
—
|
|
|
—
|
|
|
850
|
|
|
7
|
%
|
|||||||
Corporate Items and Eliminations
|
(69
|
)
|
|
|
|
(11
|
)
|
|
|
|
(9
|
)
|
|
|
|
(19
|
)
|
|
|
|
(108
|
)
|
|
|
|
—
|
|
|
|
|
(108
|
)
|
|
|
||||||||||||||
Financial Products Revenues
|
489
|
|
|
6
|
%
|
|
59
|
|
|
(3
|
%)
|
|
93
|
|
|
(3
|
%)
|
|
101
|
|
|
13
|
%
|
|
742
|
|
|
5
|
%
|
|
—
|
|
|
—
|
|
|
742
|
|
|
5
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consolidated Sales and Revenues
|
$
|
6,523
|
|
|
7
|
%
|
|
$
|
1,134
|
|
|
8
|
%
|
|
$
|
2,607
|
|
|
(6
|
%)
|
|
$
|
3,202
|
|
|
9
|
%
|
|
$
|
13,466
|
|
|
5
|
%
|
|
$
|
—
|
|
|
—
|
|
|
$
|
13,466
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
First Quarter 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction Industries
|
$
|
2,620
|
|
|
|
|
$
|
344
|
|
|
|
|
$
|
1,067
|
|
|
|
|
$
|
1,628
|
|
|
|
|
|
$
|
5,659
|
|
|
|
|
$
|
18
|
|
|
|
|
|
$
|
5,677
|
|
|
|
|||||
Resource Industries
|
798
|
|
|
|
|
360
|
|
|
|
|
520
|
|
|
|
|
530
|
|
|
|
|
|
2,208
|
|
|
|
|
101
|
|
|
|
|
|
2,309
|
|
|
|
||||||||||||
Energy & Transportation
|
2,225
|
|
|
|
|
280
|
|
|
|
|
1,092
|
|
|
|
|
679
|
|
|
|
|
|
4,276
|
|
|
|
|
943
|
|
|
|
|
|
5,219
|
|
|
|
||||||||||||
All Other Segment
|
15
|
|
|
|
|
—
|
|
|
|
|
4
|
|
|
|
|
18
|
|
|
|
|
|
37
|
|
|
|
|
79
|
|
|
|
|
|
116
|
|
|
|
||||||||||||
Corporate Items and Eliminations
|
(28
|
)
|
|
|
|
1
|
|
|
|
|
(3
|
)
|
|
|
|
—
|
|
|
|
|
(30
|
)
|
|
|
|
(1,141
|
)
|
|
|
|
(1,171
|
)
|
|
|
||||||||||||||
Machinery, Energy & Transportation Sales
|
5,630
|
|
|
|
|
|
985
|
|
|
|
|
|
2,680
|
|
|
|
|
|
2,855
|
|
|
|
|
|
12,150
|
|
|
|
|
|
—
|
|
|
|
|
|
12,150
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Financial Products Segment
|
512
|
|
|
|
|
74
|
|
|
|
|
101
|
|
|
|
|
106
|
|
|
|
|
|
793
|
|
1
|
|
|
—
|
|
|
|
|
|
793
|
|
|
|
||||||||||||
Corporate Items and Eliminations
|
(49
|
)
|
|
|
|
(13
|
)
|
|
|
|
(5
|
)
|
|
|
|
(17
|
)
|
|
|
|
|
(84
|
)
|
|
|
|
—
|
|
|
|
|
|
(84
|
)
|
|
|
||||||||||||
Financial Products Revenues
|
463
|
|
|
|
|
|
61
|
|
|
|
|
|
96
|
|
|
|
|
|
89
|
|
|
|
|
|
709
|
|
|
|
|
|
—
|
|
|
|
|
|
709
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consolidated Sales and Revenues
|
$
|
6,093
|
|
|
|
|
|
$
|
1,046
|
|
|
|
|
|
$
|
2,776
|
|
|
|
|
|
$
|
2,944
|
|
|
|
|
|
$
|
12,859
|
|
|
|
|
|
$
|
—
|
|
|
|
|
|
$
|
12,859
|
|
|
|
|
|
▪
|
Interest expense excluding Financial Products in the first quarter of 2019 was $103 million, compared with $101 million in the first quarter of 2018.
|
▪
|
Other income/expense in the first quarter of 2019 was income of $160 million, compared with income of $127 million in the first quarter of 2018. The favorable change was primarily a result of the impact of mark-to-market gains on equity securities, currency translation and hedging gains, partially offset by the impact from pension and other postretirement benefit plans.
|
▪
|
The provision for income taxes for the first quarter of 2019 reflected an estimated annual tax rate of 26 percent, compared with 24 percent for the first quarter of 2018, excluding the discrete items discussed in the following paragraph. The increase was largely driven by the application of U.S. tax reform provisions to the earnings of certain non-U.S. subsidiaries, which do not have a calendar fiscal year-end. These provisions did not apply to these subsidiaries in 2018.
|
Profit by Segment
|
|
|
|
|
|
|
|
|||||||
(Millions of dollars)
|
First Quarter 2019
|
|
First Quarter 2018
|
|
$
Change
|
|
%
Change
|
|||||||
Construction Industries
|
$
|
1,085
|
|
|
$
|
1,117
|
|
|
$
|
(32
|
)
|
|
(3
|
%)
|
Resource Industries
|
576
|
|
|
378
|
|
|
198
|
|
|
52
|
%
|
|||
Energy & Transportation
|
838
|
|
|
874
|
|
|
(36
|
)
|
|
(4
|
%)
|
|||
All Other Segment
|
25
|
|
|
57
|
|
|
(32
|
)
|
|
(56
|
%)
|
|||
Corporate Items and Eliminations
|
(375
|
)
|
|
(371
|
)
|
|
(4
|
)
|
|
|
|
|||
Machinery, Energy & Transportation
|
2,149
|
|
|
2,055
|
|
|
94
|
|
|
5
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Financial Products Segment
|
211
|
|
|
141
|
|
|
70
|
|
|
50
|
%
|
|||
Corporate Items and Eliminations
|
(46
|
)
|
|
(2
|
)
|
|
(44
|
)
|
|
|
|
|||
Financial Products
|
165
|
|
|
139
|
|
|
26
|
|
|
19
|
%
|
|||
Consolidating Adjustments
|
(107
|
)
|
|
(86
|
)
|
|
(21
|
)
|
|
|
|
|||
Consolidated Operating Profit
|
$
|
2,207
|
|
|
$
|
2,108
|
|
|
$
|
99
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
▪
|
In North America, the sales increase was driven by higher demand for new equipment, primarily to support road construction activities. Favorable price realization also contributed to the sales improvement. We believe the strength of the U.S. economy and state and local funding for infrastructure development will be favorable to sales in 2019.
|
▪
|
Construction activities remained at low levels in Latin America.
|
▪
|
In EAME, the sales decrease was primarily due to a smaller increase in dealer inventories compared with the first quarter of 2018 and a weaker euro, partially offset by favorable price realization.
|
▪
|
Sales in Asia/Pacific declined due to unfavorable currency impacts, while China sales were about flat compared with the first quarter of 2018. We expect demand in China to be about flat for the full year 2019.
|
Sales by Application
|
|
|
|
|
|
|
|
|
|||||||
(Millions of dollars)
|
|
First Quarter 2019
|
|
First Quarter 2018
|
|
$
Change
|
|
%
Change
|
|||||||
Oil and Gas
|
|
$
|
1,131
|
|
|
$
|
1,215
|
|
|
$
|
(84
|
)
|
|
(7
|
%)
|
Power Generation
|
|
1,036
|
|
|
969
|
|
|
67
|
|
|
7
|
%
|
|||
Industrial
|
|
904
|
|
|
906
|
|
|
(2
|
)
|
|
—
|
%
|
|||
Transportation
|
|
1,162
|
|
|
1,186
|
|
|
(24
|
)
|
|
(2
|
%)
|
|||
External Sales
|
|
4,233
|
|
|
4,276
|
|
|
(43
|
)
|
|
(1
|
%)
|
|||
Inter-segment
|
|
977
|
|
|
943
|
|
|
34
|
|
|
4
|
%
|
|||
Total Sales
|
|
$
|
5,210
|
|
|
$
|
5,219
|
|
|
$
|
(9
|
)
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
▪
|
Oil and Gas – Sales were negatively impacted by the timing of turbine project deliveries in North America. The decrease was partially offset by higher demand for reciprocating engines for gas compression in North America. We anticipate an increase in demand for well servicing equipment as pipeline constraints in the Permian Basin are expected to improve in the second half of 2019.
|
▪
|
Power Generation – Sales increased primarily due to higher shipments for large diesel reciprocating engine applications in all regions except EAME.
|
▪
|
Industrial – Sales were about flat, with a decrease in EAME primarily due to unfavorable currency impacts nearly offset by higher sales in North America.
|
▪
|
Transportation – Sales were slightly lower primarily due to unfavorable currency impacts.
|
|
|
|
|
|
||||
(Millions of dollars)
|
|
Three Months Ended March 31
|
||||||
|
|
2019
|
|
2018
|
||||
Employee separations
1
|
|
$
|
15
|
|
|
$
|
33
|
|
Long-lived asset impairments
1
|
|
7
|
|
|
—
|
|
||
Other
2
|
|
26
|
|
|
36
|
|
||
Total restructuring costs
|
|
$
|
48
|
|
|
$
|
69
|
|
|
|
|
|
|
||||
1
Recognized in Other operating (income) expenses.
|
||||||||
2
Represents costs related to our restructuring programs, primarily for project management costs, accelerated depreciation, building demolition and equipment relocation, all of which are primarily included in Cost of goods sold.
|
||||||||
|
|
|
|
|
|
|
|
||
(Millions of dollars)
|
|
|
||
Liability balance at December 31, 2017
|
$
|
249
|
|
|
Increase in liability (separation charges)
|
112
|
|
||
Reduction in liability (payments)
|
(276
|
)
|
||
Liability balance at December 31, 2018
|
85
|
|
||
Increase in liability (separation charges)
|
15
|
|
||
Reduction in liability (payments)
|
(41
|
)
|
||
Liability balance at March 31, 2019
|
$
|
59
|
|
|
|
|
1.
|
All Other Segment
– Primarily includes activities such as: business strategy, product management and development, manufacturing and sourcing 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.
|
2.
|
Consolidating Adjustments
– Elimination of transactions between Machinery, Energy & Transportation and Financial Products.
|
3.
|
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, skidders, skid steer loaders, telehandlers, small and medium track-type tractors, track-type loaders, utility vehicles, wheel excavators, compact, small and medium wheel loaders and related parts and work tools.
|
4.
|
Corporate Items and Eliminations
– Includes corporate-level expenses; timing differences, as some expenses are reported in segment profit on a cash basis; methodology differences between segment and consolidated external reporting; restructuring costs; and inter-segment eliminations.
|
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; 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 Caterpillar 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 insurance, inventory protection plans, extended service coverage for machines and engines, and dealer property and casualty insurance. The various forms of financing, insurance and risk management products offered to customers and dealers help support the purchase and lease of our equipment. The segment also earns revenues from Machinery, Energy & Transportation, but the related costs are not allocated to operating segments. Financial Products’ segment profit is determined on a pretax basis and includes other income/expense items.
|
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 Segment 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.
|
13.
|
Manufacturing Costs
– Manufacturing costs exclude the impacts of currency and represent the volume- adjusted change for variable costs and the absolute dollar change for period manufacturing costs. Variable manufacturing costs are defined as having a direct relationship with the volume of production. This includes material costs, direct labor and other costs that vary directly with production volume such as freight, power to operate machines and supplies that are consumed in the manufacturing process. Period manufacturing costs support production but are defined as generally not having a direct relationship to short-term changes in volume. Examples include machinery and equipment repair, depreciation on manufacturing assets, facility support, procurement, factory scheduling, manufacturing planning and operations management.
|
14.
|
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.
|
15.
|
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.
|
16.
|
Restructuring Costs
– May include 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 which may consist of accelerated depreciation, inventory write-downs, building demolition, equipment relocation and project management costs and LIFO inventory decrement benefits from inventory liquidations at closed facilities, all of which are primarily included in Cost of goods sold.
|
17.
|
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.
|
18.
|
Services
– Enterprise services include, but are not limited to, aftermarket parts, Financial Products’ revenues and other service-related revenues. Machinery, Energy & Transportation segments exclude Financial Products’ revenues.
|
•
|
The 364-day facility of $3.15 billion (of which $0.82 billion is available to ME&T) expires in September 2019.
|
•
|
The three-year facility, as amended in September 2018, of $2.73 billion (of which $0.72 billion is available to ME&T) now expires in September 2021.
|
•
|
The five-year facility, as amended in September 2018, of $4.62 billion (of which $1.21 billion is available to ME&T) now expires in September 2023.
|
|
March 31, 2019
|
||||||||||
(Millions of dollars)
|
Consolidated
|
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
||||||
Credit lines available:
|
|
|
|
|
|
|
|
|
|||
Global credit facilities
|
$
|
10,500
|
|
|
$
|
2,750
|
|
|
$
|
7,750
|
|
Other external
|
4,747
|
|
|
4
|
|
|
4,743
|
|
|||
Total credit lines available
|
15,247
|
|
|
2,754
|
|
|
12,493
|
|
|||
Less: Commercial paper outstanding
|
(4,765
|
)
|
|
—
|
|
|
(4,765
|
)
|
|||
Less: Utilized credit
|
(1,039
|
)
|
|
(4
|
)
|
|
(1,035
|
)
|
|||
Available credit
|
$
|
9,443
|
|
|
$
|
2,750
|
|
|
$
|
6,693
|
|
|
|
|
|
|
Three Months Ended March 31
|
||||
|
|
2019
|
|
2018
|
||
Operating profit as a percent of total sales and revenues
|
|
16.4
|
%
|
|
16.4
|
%
|
Restructuring costs
1
|
|
—
|
|
|
0.5
|
%
|
Adjusted operating profit margin
|
|
16.4
|
%
|
|
16.9
|
%
|
1
2019 restructuring costs are not material.
|
||||||
|
|
|
|
Supplemental Consolidating Data
|
|
|||||||||||||
|
Consolidated
|
|
Machinery,
Energy &
Transportation
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
|||||||||
Sales and revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sales of Machinery, Energy & Transportation
|
$
|
12,724
|
|
|
$
|
12,724
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Revenues of Financial Products
|
742
|
|
|
—
|
|
|
870
|
|
|
(128
|
)
|
2
|
|
||||
Total sales and revenues
|
13,466
|
|
|
12,724
|
|
|
870
|
|
|
(128
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Operating costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of goods sold
|
9,003
|
|
|
9,003
|
|
|
—
|
|
|
—
|
|
|
|||||
Selling, general and administrative expenses
|
1,319
|
|
|
1,127
|
|
|
192
|
|
|
—
|
|
|
|||||
Research and development expenses
|
435
|
|
|
435
|
|
|
—
|
|
|
—
|
|
|
|||||
Interest expense of Financial Products
|
190
|
|
|
—
|
|
|
200
|
|
|
(10
|
)
|
4
|
|
||||
Other operating (income) expenses
|
312
|
|
|
10
|
|
|
313
|
|
|
(11
|
)
|
3
|
|
||||
Total operating costs
|
11,259
|
|
|
10,575
|
|
|
705
|
|
|
(21
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Operating profit
|
2,207
|
|
|
2,149
|
|
|
165
|
|
|
(107
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense excluding Financial Products
|
103
|
|
|
110
|
|
|
—
|
|
|
(7
|
)
|
4
|
|
||||
Other income (expense)
|
160
|
|
|
19
|
|
|
41
|
|
|
100
|
|
5
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated profit before taxes
|
2,264
|
|
|
2,058
|
|
|
206
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Provision (benefit) for income taxes
|
387
|
|
|
335
|
|
|
52
|
|
|
—
|
|
|
|||||
Profit of consolidated companies
|
1,877
|
|
|
1,723
|
|
|
154
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Equity in profit (loss) of unconsolidated affiliated companies
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
|||||
Equity in profit of Financial Products’ subsidiaries
|
—
|
|
|
148
|
|
|
—
|
|
|
(148
|
)
|
6
|
|
||||
|
|
|
|
|
|
|
|
|
|||||||||
Profit of consolidated and affiliated companies
|
1,884
|
|
|
1,878
|
|
|
154
|
|
|
(148
|
)
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Less: Profit (loss) attributable to noncontrolling interests
|
3
|
|
|
(3
|
)
|
|
6
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
Profit
7
|
$
|
1,881
|
|
|
$
|
1,881
|
|
|
$
|
148
|
|
|
$
|
(148
|
)
|
|
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
|
$
|
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
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash and short-term investments
|
$
|
7,128
|
|
|
$
|
6,358
|
|
|
$
|
770
|
|
|
$
|
—
|
|
|
Receivables – trade and other
|
8,961
|
|
|
4,530
|
|
|
412
|
|
|
4,019
|
|
2,3
|
||||
Receivables – finance
|
8,932
|
|
|
—
|
|
|
14,496
|
|
|
(5,564
|
)
|
3
|
||||
Prepaid expenses and other current assets
|
1,765
|
|
|
1,241
|
|
|
531
|
|
|
(7
|
)
|
4
|
||||
Inventories
|
12,340
|
|
|
12,340
|
|
|
—
|
|
|
—
|
|
|
||||
Total current assets
|
39,126
|
|
|
24,469
|
|
|
16,209
|
|
|
(1,552
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Property, plant and equipment – net
|
13,259
|
|
|
8,872
|
|
|
4,387
|
|
|
—
|
|
|
||||
Long-term receivables – trade and other
|
1,149
|
|
|
318
|
|
|
209
|
|
|
622
|
|
2,3
|
||||
Long-term receivables – finance
|
12,674
|
|
|
—
|
|
|
13,305
|
|
|
(631
|
)
|
3
|
||||
Investments in Financial Products subsidiaries
|
—
|
|
|
3,843
|
|
|
—
|
|
|
(3,843
|
)
|
5
|
||||
Noncurrent deferred and refundable income taxes
|
1,378
|
|
|
1,931
|
|
|
121
|
|
|
(674
|
)
|
6
|
||||
Intangible assets
|
1,807
|
|
|
1,807
|
|
|
—
|
|
|
—
|
|
|
||||
Goodwill
|
6,191
|
|
|
6,191
|
|
|
—
|
|
|
—
|
|
|
||||
Other assets
|
3,142
|
|
|
1,592
|
|
|
1,591
|
|
|
(41
|
)
|
7
|
||||
Total assets
|
$
|
78,726
|
|
|
$
|
49,023
|
|
|
$
|
35,822
|
|
|
$
|
(6,119
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Short-term borrowings
|
$
|
5,590
|
|
|
$
|
4
|
|
|
$
|
5,586
|
|
|
$
|
—
|
|
|
Short-term borrowings with consolidated companies
|
—
|
|
|
—
|
|
|
1,437
|
|
|
(1,437
|
)
|
8
|
||||
Accounts payable
|
7,198
|
|
|
7,108
|
|
|
198
|
|
|
(108
|
)
|
9
|
||||
Accrued expenses
|
3,746
|
|
|
3,360
|
|
|
386
|
|
|
—
|
|
|
||||
Accrued wages, salaries and employee benefits
|
1,200
|
|
|
1,174
|
|
|
26
|
|
|
—
|
|
|
||||
Customer advances
|
1,354
|
|
|
1,354
|
|
|
—
|
|
|
—
|
|
|
||||
Dividends payable
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Other current liabilities
|
2,348
|
|
|
1,901
|
|
|
463
|
|
|
(16
|
)
|
6,10
|
||||
Long-term debt due within one year
|
5,952
|
|
|
13
|
|
|
5,939
|
|
|
—
|
|
|
||||
Total current liabilities
|
27,388
|
|
|
14,914
|
|
|
14,035
|
|
|
(1,561
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Long-term debt due after one year
|
24,240
|
|
|
7,659
|
|
|
16,590
|
|
|
(9
|
)
|
8
|
||||
Liability for postemployment benefits
|
7,441
|
|
|
7,441
|
|
|
—
|
|
|
—
|
|
|
||||
Other liabilities
|
4,179
|
|
|
3,531
|
|
|
1,354
|
|
|
(706
|
)
|
6
|
||||
Total liabilities
|
63,248
|
|
|
33,545
|
|
|
31,979
|
|
|
(2,276
|
)
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock
|
5,804
|
|
|
5,804
|
|
|
919
|
|
|
(919
|
)
|
5
|
||||
Treasury stock
|
(21,214
|
)
|
|
(21,214
|
)
|
|
—
|
|
|
—
|
|
|
||||
Profit employed in the business
|
32,435
|
|
|
32,435
|
|
|
3,595
|
|
|
(3,595
|
)
|
5
|
||||
Accumulated other comprehensive income (loss)
|
(1,588
|
)
|
|
(1,588
|
)
|
|
(832
|
)
|
|
832
|
|
5
|
||||
Noncontrolling interests
|
41
|
|
|
41
|
|
|
161
|
|
|
(161
|
)
|
5
|
||||
Total shareholders’ equity
|
15,478
|
|
|
15,478
|
|
|
3,843
|
|
|
(3,843
|
)
|
|
||||
Total liabilities and shareholders’ equity
|
$
|
78,726
|
|
|
$
|
49,023
|
|
|
$
|
35,822
|
|
|
$
|
(6,119
|
)
|
|
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 other intercompany assets between Machinery, Energy & Transportation and Financial Products.
|
8
|
Elimination of debt between Machinery, Energy & Transportation and Financial Products.
|
9
|
Elimination of payables between Machinery, Energy & Transportation and Financial Products.
|
|
|
|
Supplemental Consolidating Data
|
|
||||||||||||
|
Consolidated
|
|
Machinery,
Energy &
Transportation
1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash and short-term investments
|
$
|
7,857
|
|
|
$
|
6,968
|
|
|
$
|
889
|
|
|
$
|
—
|
|
|
Receivables – trade and other
|
8,802
|
|
|
4,677
|
|
|
401
|
|
|
3,724
|
|
2,3
|
||||
Receivables – finance
|
8,650
|
|
|
—
|
|
|
13,989
|
|
|
(5,339
|
)
|
3
|
||||
Prepaid expenses and other current assets
|
1,765
|
|
|
1,227
|
|
|
583
|
|
|
(45
|
)
|
4
|
||||
Inventories
|
11,529
|
|
|
11,529
|
|
|
—
|
|
|
—
|
|
|
||||
Total current assets
|
38,603
|
|
|
24,401
|
|
|
15,862
|
|
|
(1,660
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Property, plant and equipment – net
|
13,574
|
|
|
9,085
|
|
|
4,489
|
|
|
—
|
|
|
||||
Long-term receivables – trade and other
|
1,161
|
|
|
302
|
|
|
204
|
|
|
655
|
|
2,3
|
||||
Long-term receivables – finance
|
13,286
|
|
|
—
|
|
|
13,951
|
|
|
(665
|
)
|
3
|
||||
Investments in Financial Products subsidiaries
|
—
|
|
|
3,672
|
|
|
—
|
|
|
(3,672
|
)
|
5
|
||||
Noncurrent deferred and refundable income taxes
|
1,439
|
|
|
2,015
|
|
|
116
|
|
|
(692
|
)
|
6
|
||||
Intangible assets
|
1,897
|
|
|
1,897
|
|
|
—
|
|
|
—
|
|
|
||||
Goodwill
|
6,217
|
|
|
6,217
|
|
|
—
|
|
|
—
|
|
|
||||
Other assets
|
2,332
|
|
|
886
|
|
|
1,446
|
|
|
—
|
|
|
||||
Total assets
|
$
|
78,509
|
|
|
$
|
48,475
|
|
|
$
|
36,068
|
|
|
$
|
(6,034
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Short-term borrowings
|
$
|
5,723
|
|
|
$
|
—
|
|
|
$
|
5,723
|
|
|
$
|
—
|
|
|
Short-term borrowings with consolidated companies
|
—
|
|
|
—
|
|
|
1,500
|
|
|
(1,500
|
)
|
7
|
||||
Accounts payable
|
7,051
|
|
|
6,972
|
|
|
194
|
|
|
(115
|
)
|
8
|
||||
Accrued expenses
|
3,573
|
|
|
3,212
|
|
|
361
|
|
|
—
|
|
|
||||
Accrued wages, salaries and employee benefits
|
2,384
|
|
|
2,350
|
|
|
34
|
|
|
—
|
|
|
||||
Customer advances
|
1,243
|
|
|
1,243
|
|
|
—
|
|
|
—
|
|
|
||||
Dividends payable
|
495
|
|
|
495
|
|
|
—
|
|
|
—
|
|
|
||||
Other current liabilities
|
1,919
|
|
|
1,532
|
|
|
433
|
|
|
(46
|
)
|
6,9
|
||||
Long-term debt due within one year
|
5,830
|
|
|
10
|
|
|
5,820
|
|
|
—
|
|
|
||||
Total current liabilities
|
28,218
|
|
|
15,814
|
|
|
14,065
|
|
|
(1,661
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Long-term debt due after one year
|
25,000
|
|
|
8,015
|
|
|
16,995
|
|
|
(10
|
)
|
7
|
||||
Liability for postemployment benefits
|
7,455
|
|
|
7,455
|
|
|
—
|
|
|
—
|
|
|
||||
Other liabilities
|
3,756
|
|
|
3,111
|
|
|
1,336
|
|
|
(691
|
)
|
6
|
||||
Total liabilities
|
64,429
|
|
|
34,395
|
|
|
32,396
|
|
|
(2,362
|
)
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock
|
5,827
|
|
|
5,827
|
|
|
919
|
|
|
(919
|
)
|
5
|
||||
Treasury stock
|
(20,531
|
)
|
|
(20,531
|
)
|
|
—
|
|
|
—
|
|
|
||||
Profit employed in the business
|
30,427
|
|
|
30,427
|
|
|
3,543
|
|
|
(3,543
|
)
|
5
|
||||
Accumulated other comprehensive income (loss)
|
(1,684
|
)
|
|
(1,684
|
)
|
|
(943
|
)
|
|
943
|
|
5
|
||||
Noncontrolling interests
|
41
|
|
|
41
|
|
|
153
|
|
|
(153
|
)
|
5
|
||||
Total shareholders’ equity
|
14,080
|
|
|
14,080
|
|
|
3,672
|
|
|
(3,672
|
)
|
|
||||
Total liabilities and shareholders’ equity
|
$
|
78,509
|
|
|
$
|
48,475
|
|
|
$
|
36,068
|
|
|
$
|
(6,034
|
)
|
|
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
|
$
|
1,884
|
|
|
$
|
1,878
|
|
|
$
|
154
|
|
|
$
|
(148
|
)
|
2
|
Adjustments for non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization
|
641
|
|
|
424
|
|
|
217
|
|
|
—
|
|
|
||||
Undistributed profit of Financial Products
|
—
|
|
|
(148
|
)
|
|
—
|
|
|
148
|
|
3
|
||||
Other
|
88
|
|
|
49
|
|
|
(59
|
)
|
|
98
|
|
4
|
||||
Changes in assets and liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
||||||||
Receivables – trade and other
|
(150
|
)
|
|
75
|
|
|
(24
|
)
|
|
(201
|
)
|
4, 5
|
||||
Inventories
|
(813
|
)
|
|
(818
|
)
|
|
—
|
|
|
5
|
|
4
|
||||
Accounts payable
|
355
|
|
|
336
|
|
|
12
|
|
|
7
|
|
4
|
||||
Accrued expenses
|
135
|
|
|
124
|
|
|
11
|
|
|
—
|
|
|
||||
Accrued wages, salaries and employee benefits
|
(1,185
|
)
|
|
(1,177
|
)
|
|
(8
|
)
|
|
—
|
|
|
||||
Customer advances
|
105
|
|
|
105
|
|
|
—
|
|
|
—
|
|
|
||||
Other assets – net
|
(44
|
)
|
|
(16
|
)
|
|
28
|
|
|
(56
|
)
|
4
|
||||
Other liabilities – net
|
105
|
|
|
28
|
|
|
19
|
|
|
58
|
|
4
|
||||
Net cash provided by (used for) operating activities
|
1,121
|
|
|
860
|
|
|
350
|
|
|
(89
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital expenditures – excluding equipment leased to others
|
(278
|
)
|
|
(274
|
)
|
|
(4
|
)
|
|
—
|
|
|
||||
Expenditures for equipment leased to others
|
(269
|
)
|
|
(23
|
)
|
|
(247
|
)
|
|
1
|
|
4
|
||||
Proceeds from disposals of leased assets and property, plant and equipment
|
209
|
|
|
26
|
|
|
189
|
|
|
(6
|
)
|
4
|
||||
Additions to finance receivables
|
(2,615
|
)
|
|
—
|
|
|
(2,971
|
)
|
|
356
|
|
5
|
||||
Collections of finance receivables
|
2,818
|
|
|
—
|
|
|
3,096
|
|
|
(278
|
)
|
5
|
||||
Net intercompany purchased receivables
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
16
|
|
5
|
||||
Proceeds from sale of finance receivables
|
44
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
||||
Net intercompany borrowings
|
—
|
|
|
63
|
|
|
—
|
|
|
(63
|
)
|
6
|
||||
Investments and acquisitions (net of cash acquired)
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
||||
Proceeds from sale of securities
|
57
|
|
|
4
|
|
|
53
|
|
|
—
|
|
|
||||
Investments in securities
|
(107
|
)
|
|
(7
|
)
|
|
(100
|
)
|
|
—
|
|
|
||||
Other – net
|
(38
|
)
|
|
(13
|
)
|
|
(25
|
)
|
|
—
|
|
|
||||
Net cash provided by (used for) investing activities
|
(181
|
)
|
|
(226
|
)
|
|
19
|
|
|
26
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dividends paid
|
(494
|
)
|
|
(494
|
)
|
|
—
|
|
|
—
|
|
|
||||
Common stock issued, including treasury shares reissued
|
(5
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
||||
Common shares repurchased
|
(751
|
)
|
|
(751
|
)
|
|
—
|
|
|
—
|
|
|
||||
Net intercompany borrowings
|
—
|
|
|
—
|
|
|
(63
|
)
|
|
63
|
|
6
|
||||
Proceeds from debt issued (original maturities greater than three months)
|
2,665
|
|
|
—
|
|
|
2,665
|
|
|
—
|
|
|
||||
Payments on debt (original maturities greater than three months)
|
(2,567
|
)
|
|
(2
|
)
|
|
(2,565
|
)
|
|
—
|
|
|
||||
Short-term borrowings – net (original maturities three months or less)
|
(522
|
)
|
|
4
|
|
|
(526
|
)
|
|
—
|
|
|
||||
Other – net
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
||||
Net cash provided by (used for) financing activities
|
(1,675
|
)
|
|
(1,249
|
)
|
|
(489
|
)
|
|
63
|
|
|
||||
Effect of exchange rate changes on cash
|
3
|
|
|
5
|
|
|
(2
|
)
|
|
—
|
|
|
||||
Increase (decrease) in cash and short-term investments and restricted cash
|
(732
|
)
|
|
(610
|
)
|
|
(122
|
)
|
|
—
|
|
|
||||
Cash and short-term investments and restricted cash at beginning of period
|
7,890
|
|
|
6,994
|
|
|
896
|
|
|
—
|
|
|
||||
Cash and short-term investments and restricted cash at end of period
|
$
|
7,158
|
|
|
$
|
6,384
|
|
|
$
|
774
|
|
|
$
|
—
|
|
|
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
|
$
|
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.
|
Period
|
|
Total Number
of Shares
Purchased
2,3
|
|
Average Price
Paid per Share
2,3
|
|
Total Number
of Shares Purchased
as Part of Publicly Announced Program
|
|
Approximate Dollar
Value of Shares that
may yet be Purchased
under the Program (in billions)
1
|
||||||
January 1-31, 2019
|
|
4,744,611
|
|
|
$
|
131.54
|
|
|
4,744,611
|
|
|
$
|
9.376
|
|
February 1-28, 2019
|
|
632,189
|
|
|
$
|
132.91
|
|
|
632,189
|
|
|
$
|
9.292
|
|
March 1-31, 2019
|
|
322,725
|
|
|
$
|
133.38
|
|
|
322,725
|
|
|
$
|
9.249
|
|
Total
|
|
5,699,525
|
|
|
$
|
131.80
|
|
|
5,699,525
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
1
In July 2018, the Board approved a share repurchase authorization of up to $10.0 billion of Caterpillar common stock effective January 1, 2019, with no expiration (the 2018 Authorization). As of March 31, 2019, approximately $9.2 billion remained available under the 2018 Authorization.
|
||||||||||||||
2
During the first quarter of 2019, we entered into an accelerated stock repurchase (ASR) with a third-party financial institution to purchase $500 million of our common stock. In January 2019, upon payment of the $500 million to the financial institution, we received 3.6 million shares. In March 2019, upon final settlement of the January 2019 ASR, we received an additional 0.2 million shares. In total, we repurchased 3.8 million shares under this ASR at an average price per share of $132.30.
|
||||||||||||||
3
In January, February and March of 2019, we repurchased 1.2 million, 0.6 million and 0.1 million shares respectively, for an aggregate of $251 million in open market transactions at an average price per share of $129.33, $132.91 and $137.25, respectively.
|
||||||||||||||
|
||||||||||||||
|
|
|
|
|
|
|
|
|
10.1
|
|
|
|
|
|
10.2
|
|
|
|
|
|
10.3
|
|
|
|
|
|
10.4
|
|
|
|
|
|
10.5
|
|
|
|
|
|
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 6, 2019
|
/s/ D. James Umpleby III
|
Chairman & Chief Executive Officer
|
|
D. James Umpleby III
|
|
|
|
|
|
|
|
May 6, 2019
|
/s/ Andrew R.J. Bonfield
|
Chief Financial Officer
|
|
Andrew R.J. Bonfield
|
|
|
|
|
|
|
|
May 6, 2019
|
/s/ Suzette M. Long
|
General Counsel & Corporate Secretary
|
|
Suzette M. Long
|
|
|
|
|
|
|
|
May 6, 2019
|
/s/ G. Michael Marvel
|
Chief Accounting Officer
|
|
G. Michael Marvel
|
|
CATERPILLAR INC.
|
|
/s/ Cheryl H. Johnson
|
Cheryl H. Johnson
|
Chief Human Resources Officer
|
(a)
|
in cash or its equivalent, or
|
(b)
|
by tendering previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to the total Option Price, or
|
(d)
|
by cashless exercise through authorizing the Company to withhold whole shares of Common Stock which would otherwise be delivered having an aggregate Fair Market Value, determined as of the date of exercise, equal to the amount necessary to satisfy such obligation.”
|
CATERPILLAR INC.
|
|
/s/ Cheryl H. Johnson
|
Cheryl H. Johnson
|
Chief Human Resources Officer
|
•
|
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.
|
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 6, 2019
|
/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 6, 2019
|
/s/ Andrew R.J. Bonfield
|
Chief Financial Officer
|
|
Andrew R.J. Bonfield
|
|
(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 6, 2019
|
/s/ D. James Umpleby III
|
Chief Executive Officer
|
|
D. James Umpleby III
|
|
|
|
|
|
|
|
May 6, 2019
|
/s/ Andrew R.J. Bonfield
|
Chief Financial Officer
|
|
Andrew R.J. Bonfield
|
|