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☒
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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37-0602744
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(State or other jurisdiction of incorporation)
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(IRS Employer I.D. No.)
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510 Lake Cook Road,
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Suite 100,
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Deerfield,
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Illinois
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60015
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol (s)
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Name of each exchange on which registered
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Common Stock ($1.00 par value)
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CAT
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New York Stock Exchange (1)
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9 3/8% Debentures due March 15, 2021
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CAT21
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New York Stock Exchange
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8% Debentures due February 15, 2023
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CAT23
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New York Stock Exchange
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5.3% Debentures due September 15, 2035
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CAT35
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New York Stock Exchange
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(1)
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In addition to the New York Stock Exchange, Caterpillar common stock is also listed on stock exchanges in France and Switzerland.
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Large accelerated filer
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x
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Accelerated filer
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o
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Non-accelerated filer
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o
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Part III
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2020 Annual Meeting Proxy Statement (Proxy Statement) to be filed with the Securities and Exchange Commission (SEC) within 120 days after the end of the fiscal year.
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Item 1.
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Business.
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· asphalt pavers
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· feller bunchers
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· telehandlers
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· backhoe loaders
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· harvesters
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· small and medium
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· compactors
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· knuckleboom loaders
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track-type tractors
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· cold planers
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· motorgraders
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· track-type loaders
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· compact track and
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· pipelayers
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· wheel excavators
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multi-terrain loaders
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· road reclaimers
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· compact, small and
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· mini, small, medium
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· site prep tractors
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medium wheel loaders
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and large excavators
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· skidders
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· utility vehicles
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· forestry excavators
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· skid steer loaders
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•
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reciprocating engine powered generator sets
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•
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reciprocating engines supplied to the industrial industry as well as Caterpillar machinery
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•
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integrated systems used in the electric power generation industry
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•
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turbines, centrifugal gas compressors and related services
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•
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reciprocating engines and integrated systems and solutions for the marine and oil and gas industries
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•
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remanufactured reciprocating engines and components
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•
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diesel-electric locomotives and components and other rail-related products and services
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•
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Loans that allow customers and dealers to use their Caterpillar equipment or other assets as collateral to obtain financing (24 percent*).
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•
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Installment sale contracts, which are equipment loans that enable customers to purchase equipment with a down payment or trade-in and structure payments over time (25 percent*).
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•
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Finance (non-tax) leases, where the lessee for tax purposes is considered to be the owner of the equipment during the term of the lease, that either require or allow the customer to purchase the equipment for a fixed price at the end of the term (22 percent*).
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•
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Tax leases that are classified as either operating or finance leases for financial accounting purposes, depending on the characteristics of the lease. For tax purposes, Cat Financial is considered the owner of the equipment (12 percent*).
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•
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Governmental lease-purchase plans in the U.S. that offer low interest rates and flexible terms to qualified non-federal government agencies (1 percent*).
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•
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Contractual Liability Insurance to Caterpillar and its affiliates, Caterpillar dealers and original equipment manufacturers (OEMs) for extended service contracts (parts and labor) offered by Caterpillar, third party dealers and OEMs.
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•
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Cargo insurance for the worldwide cargo risks of Caterpillar products.
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•
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Contractors’ Equipment Physical Damage Insurance for equipment manufactured by Caterpillar or OEMs, which is leased, rented or sold by third party dealers to customers.
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•
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General liability, employer’s liability, auto liability and property insurance for Caterpillar.
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•
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Retiree Medical Stop Loss Insurance for medical claims under the VEBA.
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•
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Brokerage services for property and casualty and life and health business.
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•
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view additional financial information on-line at www.Caterpillar.com/en/investors/financial-information.html
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•
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request, view or download materials on-line or register for email alerts at www.Caterpillar.com/materialsrequest
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•
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view/download on-line at www.Caterpillar.com/historical
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Item 1A.
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Risk Factors.
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•
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multiple and potentially conflicting laws, regulations and policies that are subject to change;
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•
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imposition of currency restrictions, restrictions on repatriation of earnings or other restraints;
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•
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imposition of new or additional tariffs or quotas;
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•
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withdrawal from or modification of trade agreements or the negotiation of new trade agreements;
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•
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imposition of new or additional trade and economic sanctions laws imposed by the U.S. or foreign governments;
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•
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war or acts of terrorism; and
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•
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political and economic instability or civil unrest that may severely disrupt economic activity in affected countries.
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•
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the failure to achieve the acquisition's revenue or profit forecast;
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•
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the business culture of the acquired business may not match well with our culture;
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•
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technological and product synergies, economies of scale and cost reductions may not occur as expected;
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•
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unforeseen expenses, delays or conditions may be imposed upon the acquisition, including due to required regulatory approvals or consents;
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•
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we may acquire or assume unexpected liabilities or be subject to unexpected penalties or other enforcement actions;
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•
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faulty assumptions may be made regarding the macroeconomic environment or the integration process;
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•
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unforeseen difficulties may arise in integrating operations, processes and systems;
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•
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higher than expected investments may be required to implement necessary compliance processes and related systems, including information technology systems, accounting systems and internal controls over financial reporting;
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•
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we may fail to retain, motivate and integrate key management and other employees of the acquired business;
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•
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higher than expected costs may arise due to unforeseen changes in tax, trade, environmental, labor, safety, payroll or pension policies in any jurisdiction in which the acquired business conducts its operations; and
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•
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we may experience problems in retaining customers and integrating customer bases.
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•
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Market developments that may affect customer confidence levels and cause declines in the demand for financing and adverse changes in payment patterns, causing increases in delinquencies and default rates, which could impact Cat Financial’s write-offs and provision for credit losses.
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•
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The process Cat Financial uses to estimate losses inherent in its credit exposure requires a high degree of management’s judgment regarding numerous subjective qualitative factors, including forecasts of economic conditions and how economic predictors might impair the ability of its borrowers to repay their loans. Financial market disruption and volatility may impact the accuracy of these judgments.
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•
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Cat Financial’s ability to engage in routine funding transactions or borrow from other financial institutions on acceptable terms or at all could be adversely affected by disruptions in the capital markets or other events, including actions by rating agencies and deteriorating investor expectations.
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•
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As Cat Financial’s lending agreements are primarily with financial institutions, their ability to perform in accordance with any of its underlying agreements could be adversely affected by market volatility and/or disruptions in financial markets.
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Item 1B.
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Unresolved Staff Comments.
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Item 1C.
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Executive Officers of the Registrant.
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Name and age
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Present Caterpillar Inc. position
and date of initial election
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Principal positions held during the
past five years if other than
Caterpillar Inc. position currently held
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D. James Umpleby III (61)
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Chairman of the Board (2018) and Chief Executive Officer (2017)
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Group President (2013-2016)
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Andrew R.J. Bonfield (57)
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Chief Financial Officer (2018)
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Group Chief Financial Officer for a multinational electricity and gas utility company (2010-2018)
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Bob De Lange (50)
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Group President (2017)
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Vice President (2015-2016), Worldwide Product Manager, Medium Wheel Loaders, (2013-2014)
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Denise C. Johnson (53)
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Group President (2016)
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Vice President (2012-2016)
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William P. Ainsworth (63)
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Group President (2019)
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President/CEO, Progress Rail & Senior Vice President and Strategic Advisor to Caterpillar Inc. (2017-2019), President/CEO, Progress Rail - Vice President (2014-2017)
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Ramin Younessi (55)
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Group President (2018)
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Vice President (2013-2018)
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Suzette M. Long (54)
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Chief Legal Officer, General Counsel and Corporate Secretary (2017)
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Interim Executive Vice President, Law and Public Policy (2017), Deputy General Counsel (2013-2017)
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Cheryl C. Johnson (59)
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Chief Human Resources Officer (2017)
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Executive Vice President of Human Resources for a global multi-industry aerospace, defense and industrial manufacturing company (2012-2017)
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G. Michael Marvel (58)
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Chief Accounting Officer (2019)
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Director of Corporate Financial Reporting (2018-2019), Chief Financial Officer for Solar Turbines Incorporated (2013-2018)
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Item 2.
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Properties.
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Segment
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U.S. Facilities
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Facilities Outside the U.S.
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Construction Industries
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Arkansas: North Little Rock
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Brazil: Campo Largo, Piracicaba
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Georgia: Athens, LaGrange
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China: Suzhou, Wujiang, Xuzhou, Qingzhou
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Illinois: Decatur, East Peoria
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France: Grenoble, Echirolles
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Kansas: Wamego
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Hungary: Godollo
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Minnesota: Brooklyn Park
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India: Thiruvallur
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North Carolina: Clayton, Sanford
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Indonesia: Jakarta
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Texas: Victoria
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Italy: Minerbio
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Japan: Akashi
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Mexico: Torreon
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Netherlands: Den Bosch
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Poland: Janow, Sosnowiec
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Thailand: Rayong
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United Kingdom: Desford, Stockton
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Resource Industries
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Illinois: Aurora, Decatur, East Peoria, Joliet
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China: Wuxi
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South Carolina: Sumter
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Germany: Dortmund, Lunen
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Tennessee: Dyersburg
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India: Thiruvallur
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Texas: Denison
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Indonesia: Batam
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Wisconsin: South Milwaukee
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Italy: Jesi
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Mexico: Acuna, Monterrey, Reynosa
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Russia: Tosno
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Thailand: Rayong
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United Kingdom: Peterlee, Springvale
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Energy & Transportation
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Alabama: Albertville, Montgomery
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Australia: Cardiff, Perth, Redbank, Revesby
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California: San Diego
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Brazil: Curitiba, Hortolandia, Piracicaba, Sete Lagoas
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Georgia: Griffin
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China: Tianjin, Wuxi
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Illinois: Island Lake, LaGrange, Mossville, Mapleton, Pontiac
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Czech Republic: Zatec, Zebrak
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Indiana: Lafayette, Muncie
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Germany: Kiel, Mannheim, Rostock
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Kentucky: Decoursey, Mayfield
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India: Aurangabad, Hosur
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Oklahoma: Broken Arrow
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Italy: Pistoria
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North Carolina: Winston-Salem
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Mexico: San Luis Potosi, Tijuana
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Texas: Channelview, DeSoto, Mabank, San Antonio, Schertz, Seguin, Sherman
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Republic of Singapore: Singapore
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Sweden: Ockero Islands
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United Kingdom: Larne, Peterborough, Sandiacre, South Queensferry, Stafford, Wimborne
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Item 3.
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Legal Proceedings.
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Item 4.
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Mine Safety Disclosures.
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Item 5.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
|
|
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2014
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2015
|
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2016
|
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2017
|
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2018
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2019
|
||||||||||||
Caterpillar Inc.
|
|
$
|
100.00
|
|
|
$
|
77.03
|
|
|
$
|
109.46
|
|
|
$
|
191.59
|
|
|
$
|
157.95
|
|
|
$
|
188.77
|
|
S&P 500
|
|
$
|
100.00
|
|
|
$
|
101.38
|
|
|
$
|
113.51
|
|
|
$
|
138.29
|
|
|
$
|
132.23
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|
|
$
|
173.86
|
|
S&P 500 Machinery
|
|
$
|
100.00
|
|
|
$
|
97.47
|
|
|
$
|
115.85
|
|
|
$
|
140.22
|
|
|
$
|
121.58
|
|
|
$
|
157.29
|
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Period
|
|
Total Number
of Shares
Purchased2,3
|
|
Average Price
Paid per Share2,3
|
|
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
|
||||||
October 1-31, 2019
|
|
4,755,142
|
|
|
$
|
137.65
|
|
|
4,755,142
|
|
|
$
|
6.022
|
|
November 1-30, 2019
|
|
36,414
|
|
|
$
|
137.31
|
|
|
36,414
|
|
|
$
|
6.017
|
|
December 1-31, 2019
|
|
2,890
|
|
|
$
|
139.73
|
|
|
2,890
|
|
|
$
|
6.017
|
|
Total
|
|
4,794,446
|
|
|
$
|
137.64
|
|
|
4,794,446
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
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 December 31, 2019, approximately $6.0 billion remained available under the 2018 Authorization.
|
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2 During the fourth quarter of 2019, we entered into an accelerated share repurchase agreement (ASR) with a third-party financial institution to purchase $600 million of our common stock. In October 2019, upon payment of $600 million to the financial institution, we received 3.5 million shares. In January 2020, upon final settlement of the ASR, we received an additional 0.7 million shares. In total, we repurchased 4.2 million shares under this ASR at an average price per share of $142.48.
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3 In October of 2019, we repurchased 1.3 million shares for $158 million in open market transactions at an average price per share of $124.43. In November and December of 2019, we repurchased a minimal number of shares in open market transactions as illustrated in the above table.
|
||||||||||||||
Share repurchases in the table above are reported based on the trade dates.
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Item 6.
|
Selected Financial Data.
|
Five-year Financial Summary
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Dollars in millions except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
||||||||||
Years ended December 31,
|
|
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|
|
|
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|
|||||
Sales and revenues
|
|
$
|
53,800
|
|
|
$
|
54,722
|
|
|
$
|
45,462
|
|
|
$
|
38,537
|
|
|
$
|
47,011
|
|
|
Percent inside the United States
|
|
42
|
%
|
|
41
|
%
|
|
41
|
%
|
|
41
|
%
|
|
41
|
%
|
|
|||||
Percent outside the United States
|
|
58
|
%
|
|
59
|
%
|
|
59
|
%
|
|
59
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%
|
|
59
|
%
|
|
|||||
Sales
|
|
$
|
50,755
|
|
|
$
|
51,822
|
|
|
$
|
42,676
|
|
|
$
|
35,773
|
|
|
$
|
44,147
|
|
|
Revenues
|
|
$
|
3,045
|
|
|
$
|
2,900
|
|
|
$
|
2,786
|
|
|
$
|
2,764
|
|
|
$
|
2,864
|
|
|
Profit (loss) 1
|
|
$
|
6,093
|
|
|
$
|
6,147
|
|
|
$
|
754
|
|
|
$
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(67
|
)
|
|
$
|
2,512
|
|
|
Profit (loss) per common share 2
|
|
$
|
10.85
|
|
|
$
|
10.39
|
|
|
$
|
1.27
|
|
|
$
|
(0.11
|
)
|
|
$
|
4.23
|
|
|
Profit (loss) per common share–diluted 3
|
|
$
|
10.74
|
|
|
$
|
10.26
|
|
|
$
|
1.26
|
|
|
$
|
(0.11
|
)
|
|
$
|
4.18
|
|
|
Dividends declared per share of common stock
|
|
$
|
3.95
|
|
|
$
|
3.36
|
|
|
$
|
3.11
|
|
|
$
|
3.08
|
|
|
$
|
3.01
|
|
|
Return on average common shareholders’ equity 4
|
|
42.4
|
%
|
|
44.1
|
%
|
|
5.6
|
%
|
|
(0.5
|
)%
|
|
15.8
|
%
|
|
|||||
Capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Property, plant and equipment
|
|
$
|
1,056
|
|
|
$
|
1,276
|
|
|
$
|
898
|
|
|
$
|
1,109
|
|
|
$
|
1,388
|
|
|
Equipment leased to others
|
|
$
|
1,613
|
|
|
$
|
1,640
|
|
|
$
|
1,438
|
|
|
$
|
1,819
|
|
|
$
|
1,873
|
|
|
Depreciation and amortization
|
|
$
|
2,577
|
|
|
$
|
2,766
|
|
|
$
|
2,877
|
|
|
$
|
3,034
|
|
|
$
|
3,046
|
|
|
Research and development expenses
|
|
$
|
1,693
|
|
|
$
|
1,850
|
|
|
$
|
1,842
|
|
|
$
|
1,853
|
|
|
$
|
2,134
|
|
|
As a percent of sales and revenues
|
|
3.1
|
%
|
|
3.4
|
%
|
|
4.1
|
%
|
|
4.8
|
%
|
|
4.5
|
%
|
|
|||||
Average number of employees
|
|
103,400
|
|
|
101,500
|
|
|
96,000
|
|
|
99,500
|
|
|
110,800
|
|
|
|||||
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total assets
|
|
$
|
78,453
|
|
|
$
|
78,509
|
|
|
$
|
76,962
|
|
|
$
|
74,704
|
|
|
$
|
78,342
|
|
|
Long-term debt due after one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Consolidated
|
|
$
|
26,281
|
|
|
$
|
25,000
|
|
|
$
|
23,847
|
|
|
$
|
22,818
|
|
|
$
|
25,169
|
|
|
Machinery, Energy & Transportation
|
|
$
|
9,141
|
|
|
$
|
8,005
|
|
|
$
|
7,929
|
|
|
$
|
8,436
|
|
|
$
|
8,960
|
|
|
Financial Products
|
|
$
|
17,140
|
|
|
$
|
16,995
|
|
|
$
|
15,918
|
|
|
$
|
14,382
|
|
|
$
|
16,209
|
|
|
Total debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Consolidated
|
|
$
|
37,657
|
|
|
$
|
36,553
|
|
|
$
|
34,878
|
|
|
$
|
36,783
|
|
|
$
|
38,013
|
|
|
Machinery, Energy & Transportation
|
|
$
|
9,162
|
|
|
$
|
8,015
|
|
|
$
|
7,936
|
|
|
$
|
9,152
|
|
|
$
|
9,486
|
|
|
Financial Products
|
|
$
|
28,495
|
|
|
$
|
28,538
|
|
|
$
|
26,942
|
|
|
$
|
27,631
|
|
|
$
|
28,527
|
|
|
1
|
Profit (loss) attributable to common shareholders.
|
2
|
Computed on weighted-average number of shares outstanding.
|
3
|
Computed on weighted-average number of shares outstanding diluted by assumed exercise of stock-based compensation awards, using the treasury stock method. In 2016, the assumed exercise of stock-based compensation awards was not considered because the impact would be antidilutive.
|
4
|
Represents profit (loss) divided by average shareholders’ equity (beginning of year shareholders’ equity plus end of year shareholders’ equity divided by two).
|
|
|
|
|
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
•
|
Sales and revenues in 2019 were $53.800 billion, down 2 percent from 2018. Sales declined in Energy & Transportation and Construction Industries, while Resource Industries was about flat.
|
•
|
Operating profit as a percent of sales and revenues was 15.4 percent in 2019, compared with 15.2 percent in 2018.
|
•
|
Profit was $10.74 per share for 2019, and excluding the items in the table below, adjusted profit per share was $11.06. For 2018 profit was $10.26 per share, and excluding the items in the table below, adjusted profit per share was $11.22.
|
•
|
In order for our results to be more meaningful to our readers, we have separately quantified the impact of several significant items:
|
•
|
Enterprise operating cash flow for 2019 was about $6.9 billion, compared with about $6.6 billion in 2018. Machinery, Energy & Transportation (ME&T) operating cash flow for 2019 was about $4.9 billion, more than sufficient to cover capital expenditures and dividends. ME&T operating cash flow for 2018 was about $6.3 billion.
|
•
|
Glossary of terms included on pages 44-46; first occurrence of terms shown in bold italics.
|
•
|
Information on non-GAAP financial measures is included on pages 58-59.
|
•
|
Some amounts within this report are rounded to the millions or billions and may not add. In addition, the sum of the components reported across periods may not equal the total amount reported year-to-date due to rounding.
|
Sales and Revenues by Segment
|
|||||||||||||||||||||||||||||||
(Millions of dollars)
|
|
2018
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-Segment / Other
|
|
2019
|
|
$
Change
|
|
%
Change |
|||||||||||||||
Construction Industries
|
|
$
|
23,237
|
|
|
$
|
(560
|
)
|
|
$
|
349
|
|
|
$
|
(349
|
)
|
|
$
|
(28
|
)
|
|
$
|
22,649
|
|
|
$
|
(588
|
)
|
|
(3
|
%)
|
Resource Industries
|
|
10,270
|
|
|
(260
|
)
|
|
306
|
|
|
(121
|
)
|
|
81
|
|
|
10,276
|
|
|
6
|
|
|
—
|
%
|
|||||||
Energy & Transportation
|
|
22,785
|
|
|
(116
|
)
|
|
55
|
|
|
(286
|
)
|
|
(341
|
)
|
|
22,097
|
|
|
(688
|
)
|
|
(3
|
%)
|
|||||||
All Other Segment
|
|
482
|
|
|
(24
|
)
|
|
—
|
|
|
(3
|
)
|
|
45
|
|
|
500
|
|
|
18
|
|
|
4
|
%
|
|||||||
Corporate Items and Eliminations
|
|
(4,952
|
)
|
|
(57
|
)
|
|
—
|
|
|
(1
|
)
|
|
243
|
|
|
(4,767
|
)
|
|
185
|
|
|
|
|
|||||||
Machinery, Energy & Transportation
|
|
51,822
|
|
|
(1,017
|
)
|
|
710
|
|
|
(760
|
)
|
|
—
|
|
|
50,755
|
|
|
(1,067
|
)
|
|
(2
|
%)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Financial Products Segment
|
|
3,279
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
155
|
|
|
3,434
|
|
|
155
|
|
|
5
|
%
|
|||||||
Corporate Items and Eliminations
|
|
(379
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(389
|
)
|
|
(10
|
)
|
|
|
|
|||||||
Financial Products Revenues
|
|
2,900
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
145
|
|
|
3,045
|
|
|
145
|
|
|
5
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Consolidated Sales and Revenues
|
|
$
|
54,722
|
|
|
$
|
(1,017
|
)
|
|
$
|
710
|
|
|
$
|
(760
|
)
|
|
$
|
145
|
|
|
$
|
53,800
|
|
|
$
|
(922
|
)
|
|
(2
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit by Segment
|
|
|
|
|
|
|
|
|
|||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
|
$
Change
|
|
%
Change
|
|||||||
Construction Industries
|
|
$
|
3,931
|
|
|
$
|
4,174
|
|
|
$
|
(243
|
)
|
|
(6
|
%)
|
Resource Industries
|
|
1,629
|
|
|
1,603
|
|
|
26
|
|
|
2
|
%
|
|||
Energy & Transportation
|
|
3,910
|
|
|
3,938
|
|
|
(28
|
)
|
|
(1
|
%)
|
|||
All Other Segment
|
|
4
|
|
|
23
|
|
|
(19
|
)
|
|
(83
|
%)
|
|||
Corporate Items and Eliminations
|
|
(1,504
|
)
|
|
(1,583
|
)
|
|
79
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
|
7,970
|
|
|
8,155
|
|
|
(185
|
)
|
|
(2
|
%)
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Financial Products Segment
|
|
832
|
|
|
505
|
|
|
327
|
|
|
65
|
%
|
|||
Corporate Items and Eliminations
|
|
(81
|
)
|
|
17
|
|
|
(98
|
)
|
|
|
|
|||
Financial Products
|
|
751
|
|
|
522
|
|
|
229
|
|
|
44
|
%
|
|||
Consolidating Adjustments
|
|
(431
|
)
|
|
(384
|
)
|
|
(47
|
)
|
|
|
|
|||
Consolidated Operating Profit
|
|
$
|
8,290
|
|
|
$
|
8,293
|
|
|
$
|
(3
|
)
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
•
|
Interest expense excluding Financial Products in 2019 was $421 million, compared with $404 million in 2018. The increase was due to higher average debt outstanding during 2019 than 2018.
|
•
|
Other income (expense) in 2019 was expense of $57 million, compared with expense of $67 million in 2018. The decrease was due to a lower expected return on pension and other postretirement benefit (OPEB) plan assets more than offset by lower foreign exchange losses, unrealized and realized gains on marketable securities at Insurance Services and the favorable impact of commodity hedges.
|
•
|
The provision for income taxes for 2019 reflected an annual effective tax rate of 25.2 percent, compared with 24.1 percent for 2018, excluding the discrete items discussed in the following paragraph. The increase from 2018 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.
|
◦
|
A tax benefit of $178 million to adjust previously unrecognized tax benefits as a result of receipt of additional guidance in 2019 related to the calculation of the mandatory deemed repatriation of non-U.S. earnings due to U.S. tax reform. In 2018, the mandatory deemed repatriation estimate increased by $50 million.
|
◦
|
A tax benefit of $41 million in 2019, compared with $56 million in 2018, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense.
|
◦
|
A net benefit of $183 million in 2018 to adjust deferred tax balances. (See Note – 6 “Income Taxes” of Part II, Item 8 “Financial Statements and Supplementary Data” for more information.)
|
•
|
In North America, the sales increase was primarily due to higher demand for construction equipment and favorable price realization.
|
•
|
Sales were higher in Latin America. While construction activities remained at low levels, the increase was driven by road and non-residential construction activities.
|
•
|
Sales decreased in EAME primarily due to changes in dealer inventories and the unfavorable impact of a weaker euro, partially offset by favorable price realization. Dealer inventories increased during 2018, compared with a decrease during 2019.
|
•
|
Sales in Asia/Pacific decreased mostly due to lower demand, including changes in dealer inventories, and unfavorable currency impacts. The unfavorable currency impacts were due to a weaker Chinese yuan and Australian dollar. Dealers increased inventories during 2018 and decreased inventories during 2019. The lower demand was primarily in China due to continued competitive pressures. In addition, demand was lower across the region.
|
Sales by Application
|
|
|
|
|
|
|
|
|
|||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
|
$
Change
|
|
%
Change
|
|||||||
Oil and Gas
|
|
$
|
5,205
|
|
|
$
|
5,763
|
|
|
$
|
(558
|
)
|
|
(10
|
%)
|
Power Generation
|
|
4,474
|
|
|
4,334
|
|
|
140
|
|
|
3
|
%
|
|||
Industrial
|
|
3,749
|
|
|
3,640
|
|
|
109
|
|
|
3
|
%
|
|||
Transportation
|
|
5,057
|
|
|
5,095
|
|
|
(38
|
)
|
|
(1
|
%)
|
|||
External Sales
|
|
18,485
|
|
|
18,832
|
|
|
(347
|
)
|
|
(2
|
%)
|
|||
Inter-Segment
|
|
3,612
|
|
|
3,953
|
|
|
(341
|
)
|
|
(9
|
%)
|
|||
Total Sales
|
|
$
|
22,097
|
|
|
$
|
22,785
|
|
|
$
|
(688
|
)
|
|
(3
|
%)
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
▪
|
Oil and Gas – Sales decreased in North America primarily due to lower new equipment demand for well servicing and the timing of turbine project deliveries for gas compression and production. Lower sales in North America were partially offset by increases in all other regions, primarily Asia/Pacific.
|
▪
|
Power Generation – Sales increased mostly due to higher deliveries of diesel reciprocating engines in North America and higher turbine sales across all regions. The increase was partially offset by lower diesel reciprocating engine sales in EAME and Asia/Pacific driven by unfavorable currency impacts and lower volume.
|
▪
|
Industrial – Sales improved primarily in North America and Asia/Pacific driven by higher end-user demand.
|
▪
|
Transportation – Sales were about flat as lower locomotive sales were offset by stronger marine demand.
|
Sales and Revenues by Segment
|
|||||||||||||||||||||||||||||||
(Millions of dollars)
|
|
Fourth Quarter 2018
|
|
Sales
Volume
|
|
Price
Realization
|
|
Currency
|
|
Inter-Segment / Other
|
|
Fourth Quarter 2019
|
|
$
Change
|
|
%
Change
|
|||||||||||||||
Construction Industries
|
|
$
|
5,705
|
|
|
$
|
(565
|
)
|
|
$
|
(86
|
)
|
|
$
|
(32
|
)
|
|
$
|
(2
|
)
|
|
$
|
5,020
|
|
|
$
|
(685
|
)
|
|
(12
|
%)
|
Resource Industries
|
|
2,797
|
|
|
(430
|
)
|
|
17
|
|
|
(22
|
)
|
|
33
|
|
|
2,395
|
|
|
(402
|
)
|
|
(14
|
%)
|
|||||||
Energy & Transportation
|
|
6,287
|
|
|
(25
|
)
|
|
(27
|
)
|
|
(47
|
)
|
|
(239
|
)
|
|
5,949
|
|
|
(338
|
)
|
|
(5
|
%)
|
|||||||
All Other Segment
|
|
129
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
24
|
|
|
143
|
|
|
14
|
|
|
11
|
%
|
|||||||
Corporate Items and Eliminations
|
|
(1,288
|
)
|
|
(16
|
)
|
|
1
|
|
|
(2
|
)
|
|
184
|
|
|
(1,121
|
)
|
|
167
|
|
|
|
|
|||||||
Machinery, Energy & Transportation
|
|
13,630
|
|
|
(1,046
|
)
|
|
(95
|
)
|
|
(103
|
)
|
|
—
|
|
|
12,386
|
|
|
(1,244
|
)
|
|
(9
|
%)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Financial Products Segment
|
|
812
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
846
|
|
|
34
|
|
|
4
|
%
|
|||||||
Corporate Items and Eliminations
|
|
(100
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
(88
|
)
|
|
12
|
|
|
|
|
|||||||
Financial Products Revenues
|
|
712
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|
758
|
|
|
46
|
|
|
6
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Consolidated Sales and Revenues
|
|
$
|
14,342
|
|
|
$
|
(1,046
|
)
|
|
$
|
(95
|
)
|
|
$
|
(103
|
)
|
|
$
|
46
|
|
|
$
|
13,144
|
|
|
$
|
(1,198
|
)
|
|
(8
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (Loss) by Segment
|
|
|
|
|
|
|
|
|
|||||||
(Millions of dollars)
|
|
Fourth Quarter 2019
|
|
Fourth Quarter 2018
|
|
$
Change
|
|
%
Change
|
|||||||
Construction Industries
|
|
$
|
659
|
|
|
$
|
845
|
|
|
$
|
(186
|
)
|
|
(22
|
%)
|
Resource Industries
|
|
261
|
|
|
400
|
|
|
(139
|
)
|
|
(35
|
%)
|
|||
Energy & Transportation
|
|
1,165
|
|
|
1,079
|
|
|
86
|
|
|
8
|
%
|
|||
All Other Segment
|
|
(11
|
)
|
|
(47
|
)
|
|
36
|
|
|
77
|
%
|
|||
Corporate Items and Eliminations
|
|
(325
|
)
|
|
(375
|
)
|
|
50
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
|
1,749
|
|
|
1,902
|
|
|
(153
|
)
|
|
(8
|
%)
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Financial Products Segment
|
|
210
|
|
|
29
|
|
|
181
|
|
|
624
|
%
|
|||
Corporate Items and Eliminations
|
|
(6
|
)
|
|
54
|
|
|
(60
|
)
|
|
|
|
|||
Financial Products
|
|
204
|
|
|
83
|
|
|
121
|
|
|
146
|
%
|
|||
Consolidating Adjustments
|
|
(103
|
)
|
|
(102
|
)
|
|
(1
|
)
|
|
|
|
|||
Consolidated Operating Profit
|
|
$
|
1,850
|
|
|
$
|
1,883
|
|
|
$
|
(33
|
)
|
|
(2
|
%)
|
|
|
|
|
|
|
|
|
|
•
|
Interest expense excluding Financial Products in the fourth quarter of 2019 was $112 million, compared with $99 million in the fourth quarter of 2018. The increase was due to higher average debt outstanding during the fourth quarter of 2019, compared with the fourth quarter of 2018.
|
•
|
Other income (expense) in the fourth quarter of 2019 was expense of $373 million, compared with expense of $417 million in the fourth quarter of 2018. The decrease in expense was due to the favorable impact of commodity hedges, higher realized gains and lower unrealized losses on marketable securities at Insurance Services, which were partially offset by unfavorable pension and OPEB costs.
|
•
|
The provision for income taxes in the fourth quarter reflected an annual effective tax rate of 25.2 percent, compared with 24.1 percent for the full year of 2018, excluding discrete items discussed in the following paragraph. The increase from 2018 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.
|
◦
|
The change from the third-quarter estimated annual tax rate of 26 percent to the annual effective tax rate of 25.2 percent resulted in a $54 million tax benefit in the fourth quarter of 2019.
|
◦
|
A tax benefit of $13 million in the fourth quarter of 2019, compared to $4 million in the fourth quarter of 2018, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense.
|
◦
|
A net tax benefit of $13 million in the fourth quarter of 2018 for other discrete items.
|
•
|
In North America, sales decreased due to lower demand driven by the impact from changes in dealer inventories, while end-user demand was about flat. Dealers decreased inventories during the fourth quarter of 2019, compared with an increase during the fourth quarter of 2018.
|
•
|
Sales were higher in Latin America. While construction activities remained at low levels, the increase was driven by road and residential construction activities.
|
•
|
In EAME, the sales decrease was primarily due to the impact from changes in dealer inventories and lower end-user demand across most of the region. Dealers decreased inventories more during the fourth quarter of 2019 than during the fourth quarter of 2018.
|
•
|
Sales in Asia/Pacific were about flat as unfavorable price realization was mostly offset by a few countries’ higher sales volume.
|
Sales by Application
|
|
|
|
|
|
|
|
|
|||||||
(Millions of dollars)
|
|
Fourth Quarter 2019
|
|
Fourth Quarter 2018
|
|
$
Change
|
|
%
Change
|
|||||||
Oil and Gas
|
|
$
|
1,523
|
|
|
$
|
1,719
|
|
|
$
|
(196
|
)
|
|
(11
|
%)
|
Power Generation
|
|
1,294
|
|
|
1,271
|
|
|
23
|
|
|
2
|
%
|
|||
Industrial
|
|
908
|
|
|
902
|
|
|
6
|
|
|
1
|
%
|
|||
Transportation
|
|
1,441
|
|
|
1,373
|
|
|
68
|
|
|
5
|
%
|
|||
External Sales
|
|
5,166
|
|
|
5,265
|
|
|
(99
|
)
|
|
(2
|
%)
|
|||
Inter-Segment
|
|
783
|
|
|
1,022
|
|
|
(239
|
)
|
|
(23
|
%)
|
|||
Total Sales
|
|
$
|
5,949
|
|
|
$
|
6,287
|
|
|
$
|
(338
|
)
|
|
(5
|
%)
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
•
|
Oil and Gas - Sales were lower mainly in North America. The sales decline was largely due to lower demand for reciprocating engines used in gas compression and lower turbine project deliveries.
|
•
|
Power Generation - Sales increased slightly primarily due to higher deliveries for turbines in EAME.
|
•
|
Industrial - Sales were about flat as slightly higher sales in North America were partially offset by lower sales in Latin America and EAME.
|
•
|
Transportation - Sales were higher mainly due to stronger marine demand in EAME.
|
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
|
||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Construction Industries
|
$
|
10,754
|
|
|
23%
|
|
$
|
1,479
|
|
|
6%
|
|
$
|
4,410
|
|
|
17%
|
|
$
|
6,473
|
|
|
24%
|
|
$
|
23,116
|
|
|
21%
|
|
$
|
121
|
|
|
13%
|
|
$
|
23,237
|
|
|
21%
|
Resource Industries
|
3,357
|
|
|
30%
|
|
1,647
|
|
|
29%
|
|
2,217
|
|
|
25%
|
|
2,667
|
|
|
43%
|
|
9,888
|
|
|
32%
|
|
382
|
|
|
7%
|
|
10,270
|
|
|
31%
|
|||||||
Energy & Transportation
|
9,685
|
|
|
22%
|
|
1,331
|
|
|
6%
|
|
4,934
|
|
|
11%
|
|
2,882
|
|
|
25%
|
|
18,832
|
|
|
18%
|
|
3,953
|
|
|
16%
|
|
22,785
|
|
|
18%
|
|||||||
All Other Segment
|
63
|
|
|
(10%)
|
|
3
|
|
|
—%
|
|
18
|
|
|
(67%)
|
|
70
|
|
|
37%
|
|
154
|
|
|
(13%)
|
|
328
|
|
|
(16%)
|
|
482
|
|
|
(15%)
|
|||||||
Corporate Items and Eliminations
|
(155
|
)
|
|
|
|
—
|
|
|
|
|
(11
|
)
|
|
|
|
(2
|
)
|
|
|
|
(168
|
)
|
|
|
|
(4,784
|
)
|
|
|
|
(4,952
|
)
|
|
|
|||||||
Machinery, Energy & Transportation
|
23,704
|
|
|
23%
|
|
4,460
|
|
|
13%
|
|
11,568
|
|
|
16%
|
|
12,090
|
|
|
28%
|
|
51,822
|
|
|
21%
|
|
—
|
|
|
—%
|
|
51,822
|
|
|
21%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Financial Products Segment
|
2,153
|
|
|
7%
|
|
281
|
|
|
(8%)
|
|
387
|
|
|
(7%)
|
|
458
|
|
|
26%
|
|
3,279
|
|
|
6%
|
|
—
|
|
|
—%
|
|
3,279
|
|
|
6%
|
|||||||
Corporate Items and Eliminations
|
(234
|
)
|
|
|
|
(46
|
)
|
|
|
|
(26
|
)
|
|
|
|
(73
|
)
|
|
|
|
(379
|
)
|
|
|
|
—
|
|
|
|
|
(379
|
)
|
|
|
|||||||
Financial Products Revenues
|
1,919
|
|
|
6%
|
|
235
|
|
|
(10%)
|
|
361
|
|
|
(10%)
|
|
385
|
|
|
24%
|
|
2,900
|
|
|
4%
|
|
—
|
|
|
—%
|
|
2,900
|
|
|
4%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Consolidated Sales and Revenues
|
$
|
25,623
|
|
|
22%
|
|
$
|
4,695
|
|
|
12%
|
|
$
|
11,929
|
|
|
15%
|
|
$
|
12,475
|
|
|
28%
|
|
$
|
54,722
|
|
|
20%
|
|
$
|
—
|
|
|
—%
|
|
$
|
54,722
|
|
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Construction Industries
|
$
|
8,742
|
|
|
|
|
$
|
1,396
|
|
|
|
|
$
|
3,760
|
|
|
|
|
$
|
5,235
|
|
|
|
|
$
|
19,133
|
|
|
|
|
$
|
107
|
|
|
|
|
$
|
19,240
|
|
|
|
Resource Industries
|
2,582
|
|
|
|
|
1,281
|
|
|
|
|
1,775
|
|
|
|
|
1,866
|
|
|
|
|
7,504
|
|
|
|
|
357
|
|
|
|
|
7,861
|
|
|
|
|||||||
Energy & Transportation
|
7,959
|
|
|
|
|
1,261
|
|
|
|
|
4,431
|
|
|
|
|
2,313
|
|
|
|
|
15,964
|
|
|
|
|
3,418
|
|
|
|
|
19,382
|
|
|
|
|||||||
All Other Segment
|
70
|
|
|
|
|
3
|
|
|
|
|
54
|
|
|
|
|
51
|
|
|
|
|
178
|
|
|
|
|
392
|
|
|
|
|
570
|
|
|
|
|||||||
Corporate Items and Eliminations
|
(97
|
)
|
|
|
|
(1
|
)
|
|
|
|
(6
|
)
|
|
|
|
1
|
|
|
|
|
(103
|
)
|
|
|
|
(4,274
|
)
|
|
|
|
(4,377
|
)
|
|
|
|||||||
Machinery, Energy & Transportation
|
19,256
|
|
|
|
|
3,940
|
|
|
|
|
10,014
|
|
|
|
|
9,466
|
|
|
|
|
42,676
|
|
|
|
|
—
|
|
|
|
|
42,676
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Financial Products Segment
|
2,006
|
|
|
|
|
306
|
|
|
|
|
418
|
|
|
|
|
363
|
|
|
|
|
3,093
|
|
|
|
|
—
|
|
|
|
|
3,093
|
|
|
|
|||||||
Corporate Items and Eliminations
|
(190
|
)
|
|
|
|
(46
|
)
|
|
|
|
(19
|
)
|
|
|
|
(52
|
)
|
|
|
|
(307
|
)
|
|
|
|
—
|
|
|
|
|
(307
|
)
|
|
|
|||||||
Financial Products Revenues
|
1,816
|
|
|
|
|
260
|
|
|
|
|
399
|
|
|
|
|
311
|
|
|
|
|
2,786
|
|
|
|
|
—
|
|
|
|
|
2,786
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Consolidated Sales and Revenues
|
$
|
21,072
|
|
|
|
|
$
|
4,200
|
|
|
|
|
$
|
10,413
|
|
|
|
|
$
|
9,777
|
|
|
|
|
$
|
45,462
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
45,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (Loss) by Segment
|
|
|
|
|
|
|
|
|
|||||||
(Millions of dollars)
|
|
2018
|
|
2017
|
|
$
Change
|
|
%
Change
|
|||||||
Construction Industries
|
|
$
|
4,174
|
|
|
$
|
3,255
|
|
|
$
|
919
|
|
|
28
|
%
|
Resource Industries
|
|
1,603
|
|
|
698
|
|
|
905
|
|
|
130
|
%
|
|||
Energy & Transportation
|
|
3,938
|
|
|
2,856
|
|
|
1,082
|
|
|
38
|
%
|
|||
All Other Segment
|
|
23
|
|
|
(44
|
)
|
|
67
|
|
|
152
|
%
|
|||
Corporate Items and Eliminations
|
|
(1,583
|
)
|
|
(2,659
|
)
|
|
1,076
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
|
8,155
|
|
|
4,106
|
|
|
4,049
|
|
|
99
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Financial Products Segment
|
|
505
|
|
|
792
|
|
|
(287
|
)
|
|
(36
|
)%
|
|||
Corporate Items and Eliminations
|
|
17
|
|
|
(116
|
)
|
|
133
|
|
|
|
|
|||
Financial Products
|
|
522
|
|
|
676
|
|
|
(154
|
)
|
|
(23
|
)%
|
|||
Consolidating Adjustments
|
|
(384
|
)
|
|
(322
|
)
|
|
(62
|
)
|
|
|
|
|||
Consolidated Operating Profit
|
|
$
|
8,293
|
|
|
$
|
4,460
|
|
|
$
|
3,833
|
|
|
86
|
%
|
|
|
|
|
|
|
|
|
|
•
|
Other income/expense in 2018 was expense of $67 million, compared with income of $153 million in 2017. The unfavorable change was primarily a result of an unfavorable impact from equity securities in Insurance Services. Effective January 1, 2018, we adopted a new U.S. GAAP accounting rule that requires our equity securities to be measured at fair value through earnings. Previously, the fair value adjustments for these securities were reported in equity until the securities were sold or an impairment was recognized. We adopted the standard using the modified retrospective approach, with no change to prior year financial statements. During 2018, we recognized a loss of $33 million related to fair value adjustments. During 2017, we recognized gains on sales of securities of $104 million. In addition, the absence of a 2017 pretax gain of $85 million on the sale of Caterpillar’s equity investment in IronPlanet contributed to the unfavorable change.
|
•
|
The provision for income taxes for 2018 reflects an annual effective tax rate of 24.1 percent, compared with 27.7 percent for the full year of 2017, excluding the items discussed below. The decrease was primarily due to the reduction in the U.S. corporate tax rate beginning January 1, 2018, along with other changes in the geographic mix of profits from a tax perspective.
|
▪
|
Sales volume increased primarily due to higher demand for construction equipment and changes in dealer inventories. Dealer inventories increased significantly more during 2018 than during 2017.
|
▪
|
In North America, the sales increase was primarily due to higher demand for construction equipment, primarily to support oil and gas activities, including pipelines, non-residential building construction and infrastructure activities. In addition, sales increased due to changes in dealer inventories, which increased during 2018, compared with a slight decrease during 2017.
|
▪
|
Although construction activities remained weak in Latin America, sales were higher in the region.
|
▪
|
Sales increased in EAME primarily due to higher demand and the favorable impact of currency, mostly from a stronger euro. Higher demand was driven by increased construction activities across several countries in the region. Favorable price realization also contributed to the sales increase.
|
▪
|
Sales in Asia/Pacific were higher in several countries in the region, most significantly in China, stemming from increased building construction and infrastructure investment. Changes in dealer inventories contributed to the sales improvement as dealer inventories increased in 2018 and were about flat in 2017.
|
Sales by Application
|
|
|
|
|
|
|
|
|
|||||||
(Millions of dollars)
|
|
2018
|
|
2017
|
|
$
Change
|
|
%
Change
|
|||||||
Oil and Gas
|
|
$
|
5,763
|
|
|
$
|
4,424
|
|
|
$
|
1,339
|
|
|
30
|
%
|
Power Generation
|
|
4,334
|
|
|
3,551
|
|
|
783
|
|
|
22
|
%
|
|||
Industrial
|
|
3,640
|
|
|
3,445
|
|
|
195
|
|
|
6
|
%
|
|||
Transportation
|
|
5,095
|
|
|
4,544
|
|
|
551
|
|
|
12
|
%
|
|||
External Sales
|
|
18,832
|
|
|
15,964
|
|
|
2,868
|
|
|
18
|
%
|
|||
Inter-Segment
|
|
3,953
|
|
|
3,418
|
|
|
535
|
|
|
16
|
%
|
|||
Total Sales
|
|
$
|
22,785
|
|
|
$
|
19,382
|
|
|
$
|
3,403
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
•
|
Oil and Gas – Sales increased due to higher demand in North America for well servicing and gas compression applications. Growth in U.S. onshore oil and gas drove increased sales for reciprocating engines and related aftermarket parts. Sales of turbines and turbine-related services were higher for production applications.
|
•
|
Power Generation – Sales improved across all regions, with the largest increase in North America, primarily for reciprocating engine applications including data centers, and for aftermarket parts. In addition, sales increased in EAME from reciprocating engine projects, turbines and turbine-related services and favorable currency.
|
•
|
Industrial – Sales were higher in Asia/Pacific and North America, primarily due to improving economic conditions supporting higher engine sales into industrial applications. Sales in EAME were about flat as economic uncertainty in a few countries in the Middle East was mostly offset by favorable currency impacts.
|
•
|
Transportation – Sales were higher for rail services driven by acquisitions in Asia/Pacific and EAME and increased rail traffic in North America. Marine sales were higher in Asia/Pacific, led by increased activity in the ferry sector.
|
|
|
|
|
|
|
|
||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Employee separations 1
|
|
$
|
48
|
|
|
$
|
112
|
|
|
$
|
525
|
|
Contract terminations 1
|
|
1
|
|
|
7
|
|
|
183
|
|
|||
Long-lived asset impairments 1
|
|
65
|
|
|
93
|
|
|
346
|
|
|||
Defined benefit plan curtailments and termination benefits 2
|
|
—
|
|
|
(8
|
)
|
|
29
|
|
|||
Other 3
|
|
122
|
|
|
182
|
|
|
173
|
|
|||
Total restructuring costs
|
|
$
|
236
|
|
|
$
|
386
|
|
|
$
|
1,256
|
|
|
|
|
|
|
|
|
||||||
1 Recognized in Other operating (income) expenses.
|
|
|
|
|
|
|
||||||
2 Recognized in Other income (expense).
|
|
|
|
|
|
|
||||||
3 Represents costs related to our restructuring programs, primarily for project management, inventory write-downs, accelerated depreciation and equipment relocation, and also LIFO inventory decrement benefits from inventory liquidations at closed facilities, 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)
|
48
|
|
|
Reduction in liability (payments)
|
(85
|
)
|
|
Liability balance at December 31, 2019
|
$
|
48
|
|
|
|
1.
|
Adjusted Profit Per Share - For 2019, profit per share excluding pension and OPEB mark-to-market losses and a discrete tax benefit related to U.S. tax reform. For 2018, profit per share excluding pension and OPEB mark-to-market losses, restructuring costs, certain deferred tax valuation allowance adjustments and the impact of U.S. tax reform.
|
2.
|
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; and digital investments for new customer and dealer solutions that integrate data analytics with state-of-the-art digital technologies while transforming the buying experience.
|
3.
|
Consolidating Adjustments - Elimination of transactions between Machinery, Energy & Transportation and Financial Products.
|
4.
|
Construction Industries - A segment primarily responsible for supporting customers using machinery in infrastructure, forestry and building construction applications. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support. The product portfolio includes asphalt pavers; backhoe loaders; compactors; cold planers; compact track and multi-terrain loaders; mini, small, medium and large track excavators; forestry excavators; feller bunchers; harvesters; knuckleboom loaders; motor graders; pipelayers; road reclaimers; 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.
|
5.
|
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; certain restructuring costs; and inter-segment eliminations.
|
6.
|
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).
|
7.
|
EAME - A geographic region including Europe, Africa, the Middle East and the Commonwealth of Independent States (CIS).
|
8.
|
Earning Assets - Assets consisting primarily of total finance receivables net of unearned income, plus equipment on operating leases, less accumulated depreciation at Cat Financial.
|
9.
|
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.
|
10.
|
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.
|
11.
|
Latin America - A geographic region including Central and South American countries and Mexico.
|
12.
|
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.
|
13.
|
Machinery, Energy & Transportation (ME&T) Other Operating (Income) Expenses - Comprised primarily of gains/losses on disposal of long-lived assets, gains/losses on divestitures and legal settlements and accruals.
|
14.
|
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 repairs, depreciation on manufacturing assets, facility support, procurement, factory scheduling, manufacturing planning and operations management.
|
15.
|
Mark-to-market gains/losses - Represents the net gain or loss of actual results differing from our assumptions and the effects of changing assumptions for our defined benefit pension and OPEB plans. These gains and losses are immediately recognized through earnings upon the annual remeasurement in the fourth quarter, or on an interim basis as triggering events warrant remeasurement.
|
16.
|
Pension and Other Postemployment Benefit (OPEB) - The company’s defined-benefit pension and postemployment benefit plans.
|
17.
|
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.
|
18.
|
Resource Industries - A segment primarily responsible for supporting customers using machinery in mining, heavy construction, 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; autonomous ready vehicles and solutions; 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 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.
|
19.
|
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.
|
20.
|
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.
|
21.
|
Services - Enterprise services include, but are not limited to, aftermarket parts, Financial Products’ revenues and other service-related revenues. Machinery, Energy & Transportation segments exclude most Financial Products’ revenues.
|
•
|
The 364-day facility of $3.15 billion (of which $0.82 billion is available to ME&T) expires in September 2020.
|
•
|
The three-year facility, as amended and restated in September 2019, of $2.73 billion (of which $0.72 billion is available to ME&T) expires in September 2022.
|
•
|
The five-year facility, as amended and restated in September 2019, of $4.62 billion (of which $1.21 billion is available to ME&T) expires in September 2024.
|
|
|
|
|
|
|
|
||||||
|
|
December 31, 2019
|
||||||||||
(Millions of dollars)
|
|
Consolidated
|
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
||||||
Credit lines available:
|
|
|
|
|
|
|
|
|
|
|||
Global credit facilities
|
|
$
|
10,500
|
|
|
$
|
2,751
|
|
|
$
|
7,749
|
|
Other external
|
|
4,999
|
|
|
194
|
|
|
4,805
|
|
|||
Total credit lines available
|
|
15,499
|
|
|
2,945
|
|
|
12,554
|
|
|||
Less: Commercial paper outstanding
|
|
(4,168
|
)
|
|
—
|
|
|
(4,168
|
)
|
|||
Less: Utilized credit
|
|
(1,247
|
)
|
|
—
|
|
|
(1,247
|
)
|
|||
Available credit
|
|
$
|
10,084
|
|
|
$
|
2,945
|
|
|
$
|
7,139
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
|
2020
|
|
2021-2022
|
|
2023-2024
|
|
After 2024
|
|
Total
|
||||||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Machinery, Energy & Transportation
|
|
$
|
16
|
|
|
$
|
1,919
|
|
|
$
|
1,102
|
|
|
$
|
6,716
|
|
|
$
|
9,753
|
|
Financial Products
|
|
6,198
|
|
|
12,508
|
|
|
4,334
|
|
|
341
|
|
|
23,381
|
|
|||||
Total long-term debt 1
|
|
6,214
|
|
|
14,427
|
|
|
5,436
|
|
|
7,057
|
|
|
33,134
|
|
|||||
Operating leases
|
|
185
|
|
|
225
|
|
|
110
|
|
|
175
|
|
|
695
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Postretirement benefit obligations 2
|
|
280
|
|
|
705
|
|
|
745
|
|
|
1,860
|
|
|
3,590
|
|
|||||
Purchase obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accounts payable 3
|
|
5,957
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,957
|
|
|||||
Purchase orders 4
|
|
5,103
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
5,106
|
|
|||||
Other contractual obligations 5
|
|
160
|
|
|
87
|
|
|
26
|
|
|
—
|
|
|
273
|
|
|||||
Total purchase obligations
|
|
11,220
|
|
|
90
|
|
|
26
|
|
|
—
|
|
|
11,336
|
|
|||||
Interest on long-term debt 6
|
|
909
|
|
|
1,291
|
|
|
834
|
|
|
6,362
|
|
|
9,396
|
|
|||||
Other long-term obligations 7
|
|
685
|
|
|
546
|
|
|
159
|
|
|
90
|
|
|
1,480
|
|
|||||
Total contractual obligations
|
|
$
|
19,493
|
|
|
$
|
17,284
|
|
|
$
|
7,310
|
|
|
$
|
15,544
|
|
|
$
|
59,631
|
|
1
|
Amounts exclude unamortized discounts, debt issuance costs, and fair value adjustments.
|
2
|
Amounts represent expected contributions to our pension and other postretirement benefit plans through 2029, offset by expected Medicare Part D subsidy receipts.
|
3
|
Amount represents invoices received and recorded as liabilities in 2019, but scheduled for payment in 2020. These represent short-term obligations made in the ordinary course of business.
|
4
|
Amount represents contractual obligations for material and services on order at December 31, 2019 but not yet delivered. These represent short-term obligations made in the ordinary course of business.
|
5
|
Amounts represent long-term commitments entered into with key suppliers for minimum purchases quantities.
|
6
|
Amounts represent estimated contractual interest payments on long-term debt, including finance lease interest payments.
|
7
|
Amounts represent contractual obligations primarily for logistics services agreements related to our former third party logistics business, software license and development contracts and IT consulting contracts and outsourcing contracts for benefit plan administration and software system support.
|
|
|
|
|
|
•
|
The assumed discount rate is used to discount future benefit obligations back to today’s dollars. The U.S. discount rate is based on a benefit cash flow-matching approach and represents the rate at which our benefit obligations could effectively be settled as of our measurement date, December 31. The benefit cash flow-matching approach involves analyzing Caterpillar’s projected cash flows against a high quality bond yield curve, calculated using a wide population of corporate Aa bonds available on the measurement date. A similar approach is used to determine the assumed discount rate for our most significant non-U.S. plans. In estimating the service and interest cost components of net periodic benefit cost, we utilize a full yield curve approach in determining a discount rate. This approach applies the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows.
|
•
|
The expected long-term rate of return on plan assets is based on our estimate of long-term passive returns for equities and fixed income securities weighted by the allocation of our plan assets. Based on historical performance, we increase the passive returns due to our active management of the plan assets. This rate is impacted by changes in general market conditions, but because it represents a long-term rate, it is not significantly impacted by short-term market swings. Changes in our allocation of plan assets would also impact this rate. For example, a shift to more fixed income securities would lower the rate. A decrease in the rate would increase our expense. The expected return on plan assets is calculated using the fair value of plan assets as of our measurement date, December 31.
|
•
|
The expected rate of compensation increase is used to develop benefit obligations using projected pay at retirement. It represents average long-term salary increases. This rate is influenced by our long-term compensation policies. An increase in the rate would increase our obligation and expense.
|
•
|
The assumed health care trend rate represents the rate at which health care costs are assumed to increase and is based on historical and expected experience. Changes in our projections of future health care costs due to general economic conditions and those specific to health care (e.g., technology driven cost changes) will impact this trend rate. An increase in the trend rate would increase our obligation and expense.
|
•
|
The mortality assumption is used to estimate the life expectancy of plan participants. An increase in the life expectancy of plan participants will result in an increase in our obligation and expense.
|
|
|
|
|
|
|
|
2019 Benefit Cost
|
|
Year-end Benefit Obligation
|
||||||||||||
(Millions of dollars)
|
|
One percentage-
point increase
|
|
One percentage-
point decrease
|
|
One percentage-
point increase
|
|
One percentage-
point decrease
|
||||||||
U.S. Pension benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assumed discount rate
|
|
$
|
54
|
|
|
$
|
(71
|
)
|
|
$
|
(1,893
|
)
|
|
$
|
2,305
|
|
Expected rate of compensation increase
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||
Expected long-term rate of return on plan assets
|
|
(122
|
)
|
|
122
|
|
|
—
|
|
|
—
|
|
||||
Non-U.S. Pension benefits:
|
|
|
|
|
|
|
|
|
||||||||
Assumed discount rate
|
|
7
|
|
|
(10
|
)
|
|
(634
|
)
|
|
610
|
|
||||
Expected rate of compensation increase
|
|
5
|
|
|
(4
|
)
|
|
41
|
|
|
(35
|
)
|
||||
Expected long-term rate of return on plan assets
|
|
(39
|
)
|
|
39
|
|
|
—
|
|
|
—
|
|
||||
Other postretirement benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assumed discount rate
|
|
8
|
|
|
(10
|
)
|
|
(366
|
)
|
|
437
|
|
||||
Expected rate of compensation increase
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
||||
Expected long-term rate of return on plan assets
|
|
(3
|
)
|
|
3
|
|
|
—
|
|
|
—
|
|
||||
Assumed health care cost trend rate
|
|
13
|
|
|
(11
|
)
|
|
158
|
|
|
(133
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Pension Benefits
|
|
Non-U.S. Pension Benefits
|
|
Other Postretirement Benefits
|
|||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|||||||||
Weighted-average assumptions used to determine benefit obligation, end of year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate
|
|
3.2
|
%
|
|
4.2
|
%
|
|
3.5
|
%
|
|
1.9
|
%
|
|
2.5
|
%
|
|
2.4
|
%
|
|
3.2
|
%
|
|
4.2
|
%
|
|
3.6
|
%
|
Rate of compensation increase 1
|
|
—
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
2.0
|
%
|
|
3.0
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted-average assumptions used to determine net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate used to measure service cost
|
|
4.3
|
%
|
|
3.7
|
%
|
|
4.2
|
%
|
|
2.5
|
%
|
|
2.3
|
%
|
|
2.4
|
%
|
|
4.1
|
%
|
|
3.5
|
%
|
|
3.9
|
%
|
Discount rate used to measure interest cost
|
|
3.9
|
%
|
|
3.2
|
%
|
|
3.3
|
%
|
|
2.3
|
%
|
|
2.2
|
%
|
|
2.3
|
%
|
|
3.9
|
%
|
|
3.2
|
%
|
|
3.3
|
%
|
Expected rate of return on plan assets
|
|
5.9
|
%
|
|
6.3
|
%
|
|
6.7
|
%
|
|
3.8
|
%
|
|
5.2
|
%
|
|
5.9
|
%
|
|
7.2
|
%
|
|
7.5
|
%
|
|
7.5
|
%
|
Rate of compensation increase
|
|
4.0
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
3.0
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
4.1
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Health care cost trend rates at year-end:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health care trend rate assumed for next year
|
|
6.1
|
%
|
|
6.1
|
%
|
|
6.1
|
%
|
||||||||||||||||||
Rate that the cost trend rate gradually declines to
|
|
5.0
|
%
|
|
5.0
|
%
|
|
5.0
|
%
|
||||||||||||||||||
Year that the cost trend rate reaches ultimate rate
|
|
2025
|
|
|
2025
|
|
|
2022
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
1 Effective December 31, 2019, all U.S. pension benefits were frozen, and accordingly this assumption is no longer applicable.
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(Millions of dollars)
|
|
2020 Expected
|
|
2019
|
|
2018
|
|
2017
|
||||||||
U.S. Pension Benefits
|
|
$
|
(308
|
)
|
|
$
|
(7
|
)
|
|
$
|
(149
|
)
|
|
$
|
(85
|
)
|
Non-U.S. Pension Benefits
|
|
(4
|
)
|
|
19
|
|
|
(69
|
)
|
|
(22
|
)
|
||||
Other Postretirement Benefits
|
|
150
|
|
|
158
|
|
|
138
|
|
|
148
|
|
||||
Mark-to-market loss (gain)
|
|
—
|
|
1
|
468
|
|
|
495
|
|
|
301
|
|
||||
Total net periodic benefit cost (benefit)
|
|
$
|
(162
|
)
|
|
$
|
638
|
|
|
$
|
415
|
|
|
$
|
342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Expected decrease in expense in 2020 compared to 2019 - Excluding the impact of mark-to-market gains and losses, our net periodic benefit cost is expected to decrease $332 million in 2020. This decrease is primarily due to lower interest cost as a result of lower discount rates at year-end 2019, elimination of service cost for our U.S. pension plans freezing benefit accruals and higher expected return on plan assets due to a higher asset base at year-end 2019.
|
•
|
Increase in expense in 2019 compared to 2018 - Primarily due to lower expected return on plan assets (U.S. pension plans had an expected rate of return of 5.9 percent in 2019 compared to 6.3 percent in 2018) and higher interest costs due to higher discount rates at year-end 2018.
|
•
|
Increase in expense in 2018 compared to 2017 - Primarily due to higher net mark-to-market losses in 2018 compared to 2017. This was partially offset by a higher expected return on plan assets and curtailment gains compared to curtailment and termination charges in 2017.
|
•
|
2019 net mark-to-market loss of $468 million - Primarily due to lower discount rates at the end of 2019 compared to the end of 2018. This was partially offset by a higher actual return on plan assets compared to the expected return on plan assets (U.S. pension plans had an actual rate of return of 22.3 percent compared to an expected rate of return of 5.9 percent).
|
•
|
2018 net mark-to-market loss of $495 million - Primarily due to the difference between the actual return on plan assets compared to the expected return on plan assets (U.S. pension plans had an actual rate of return of negative 5.4 percent compared to an expected rate of return of 6.3 percent). This was partially offset by higher discount rates at the end of 2018 compared to the end of 2017.
|
•
|
2017 net mark-to-market loss of $301 million - Primarily due to lower discount rates at the end of 2017 compared to the end of 2016 and changes in our mortality assumption (discussed below). This was partially offset by the difference between the actual return on plan assets compared to the expected return on plan assets (U.S. pension plans had an actual rate of return of 15.5 percent compared to an expected rate of return of 6.7 percent).
|
|
|
Three Months Ended December 31,
|
|
Twelve Months Ended December 31,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Operating profit as a percent of total sales and revenues
|
|
14.1
|
%
|
|
13.1
|
%
|
|
15.4
|
%
|
|
15.2
|
%
|
Restructuring costs 1
|
|
—
|
%
|
|
0.7
|
%
|
|
—
|
%
|
|
0.7
|
%
|
Adjusted operating profit margin
|
|
14.1
|
%
|
|
13.8
|
%
|
|
15.4
|
%
|
|
15.9
|
%
|
1 2019 Restructuring costs were not material.
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended December 31,
|
|
Twelve Months Ended December 31,
|
||||||||||||
(millions of dollars)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Profit before taxes
|
|
$
|
1,365
|
|
|
$
|
1,367
|
|
|
$
|
7,812
|
|
|
$
|
7,822
|
|
Mark-to-market losses
|
|
$
|
468
|
|
|
$
|
495
|
|
|
$
|
468
|
|
|
$
|
495
|
|
Restructuring costs
|
|
$
|
—
|
|
|
$
|
93
|
|
|
$
|
—
|
|
|
$
|
386
|
|
Adjusted profit before taxes
|
|
$
|
1,833
|
|
|
$
|
1,955
|
|
|
$
|
8,280
|
|
|
$
|
8,703
|
|
|
|
|
|
|
|
|
|
|
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 Data for Financial Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
At December 31
|
|
|
|
|
|
Supplemental consolidating data
|
|
||||||||||||||||||||||||||
|
|
Consolidated
|
|
Machinery,
Energy & Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
||||||||||||||||||||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and short-term investments
|
|
$
|
8,284
|
|
|
$
|
7,857
|
|
|
$
|
7,299
|
|
|
$
|
6,968
|
|
|
$
|
985
|
|
|
$
|
889
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Receivables - trade and other
|
|
8,568
|
|
|
8,802
|
|
|
3,737
|
|
|
4,677
|
|
|
451
|
|
|
401
|
|
|
4,380
|
|
2,3
|
3,724
|
|
2,3
|
||||||||
Receivables - finance
|
|
9,336
|
|
|
8,650
|
|
|
—
|
|
|
—
|
|
|
14,489
|
|
|
13,989
|
|
|
(5,153
|
)
|
3
|
(5,339
|
)
|
3
|
||||||||
Prepaid expenses and other current assets
|
|
1,739
|
|
|
1,765
|
|
|
1,290
|
|
|
1,227
|
|
|
529
|
|
|
583
|
|
|
(80
|
)
|
4
|
(45
|
)
|
4
|
||||||||
Inventories
|
|
11,266
|
|
|
11,529
|
|
|
11,266
|
|
|
11,529
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||
Total current assets
|
|
39,193
|
|
|
38,603
|
|
|
23,592
|
|
|
24,401
|
|
|
16,454
|
|
|
15,862
|
|
|
(853
|
)
|
|
(1,660
|
)
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Property, plant and equipment - net
|
|
12,904
|
|
|
13,574
|
|
|
8,606
|
|
|
9,085
|
|
|
4,298
|
|
|
4,489
|
|
|
—
|
|
|
—
|
|
|
||||||||
Long-term receivables - trade and other
|
|
1,193
|
|
|
1,161
|
|
|
348
|
|
|
302
|
|
|
152
|
|
|
204
|
|
|
693
|
|
2,3
|
655
|
|
2,3
|
||||||||
Long-term receivables - finance
|
|
12,651
|
|
|
13,286
|
|
|
—
|
|
|
—
|
|
|
13,354
|
|
|
13,951
|
|
|
(703
|
)
|
3
|
(665
|
)
|
3
|
||||||||
Investments in Financial Products subsidiaries
|
|
—
|
|
|
—
|
|
|
4,260
|
|
|
3,672
|
|
|
—
|
|
|
—
|
|
|
(4,260
|
)
|
5
|
(3,672
|
)
|
5
|
||||||||
Noncurrent deferred and refundable income taxes
|
|
1,411
|
|
|
1,439
|
|
|
2,002
|
|
|
2,015
|
|
|
117
|
|
|
116
|
|
|
(708
|
)
|
6
|
(692
|
)
|
6
|
||||||||
Intangible assets
|
|
1,565
|
|
|
1,897
|
|
|
1,565
|
|
|
1,897
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||
Goodwill
|
|
6,196
|
|
|
6,217
|
|
|
6,196
|
|
|
6,217
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||
Other assets
|
|
3,340
|
|
|
2,332
|
|
|
1,868
|
|
|
886
|
|
|
1,572
|
|
|
1,446
|
|
|
(100
|
)
|
7
|
—
|
|
|
||||||||
Total assets
|
|
$
|
78,453
|
|
|
$
|
78,509
|
|
|
$
|
48,437
|
|
|
$
|
48,475
|
|
|
$
|
35,947
|
|
|
$
|
36,068
|
|
|
$
|
(5,931
|
)
|
|
$
|
(6,034
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Short-term borrowings
|
|
$
|
5,166
|
|
|
$
|
5,723
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5,161
|
|
|
$
|
5,723
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Short-term borrowings with consolidated companies
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
600
|
|
|
1,500
|
|
|
(600
|
)
|
8
|
(1,500
|
)
|
8
|
||||||||
Accounts payable
|
|
5,957
|
|
|
7,051
|
|
|
5,918
|
|
|
6,972
|
|
|
212
|
|
|
194
|
|
|
(173
|
)
|
9
|
(115
|
)
|
9
|
||||||||
Accrued expenses
|
|
3,750
|
|
|
3,573
|
|
|
3,415
|
|
|
3,212
|
|
|
335
|
|
|
361
|
|
|
—
|
|
|
—
|
|
|
||||||||
Accrued wages, salaries and employee benefits
|
|
1,629
|
|
|
2,384
|
|
|
1,580
|
|
|
2,350
|
|
|
49
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
||||||||
Customer advances
|
|
1,187
|
|
|
1,243
|
|
|
1,187
|
|
|
1,243
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||
Dividends payable
|
|
567
|
|
|
495
|
|
|
567
|
|
|
495
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||
Other current liabilities
|
|
2,155
|
|
|
1,919
|
|
|
1,689
|
|
|
1,532
|
|
|
566
|
|
|
433
|
|
|
(100
|
)
|
6,10
|
(46
|
)
|
6,10
|
||||||||
Long-term debt due within one year
|
|
6,210
|
|
|
5,830
|
|
|
16
|
|
|
10
|
|
|
6,194
|
|
|
5,820
|
|
|
—
|
|
|
—
|
|
|
||||||||
Total current liabilities
|
|
26,621
|
|
|
28,218
|
|
|
14,377
|
|
|
15,814
|
|
|
13,117
|
|
|
14,065
|
|
|
(873
|
)
|
|
(1,661
|
)
|
|
||||||||
Long-term debt due after one year
|
|
26,281
|
|
|
25,000
|
|
|
9,151
|
|
|
8,015
|
|
|
17,140
|
|
|
16,995
|
|
|
(10
|
)
|
8
|
(10
|
)
|
8
|
||||||||
Liability for postemployment benefits
|
|
6,599
|
|
|
7,455
|
|
|
6,599
|
|
|
7,455
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||
Other liabilities
|
|
4,323
|
|
|
3,756
|
|
|
3,681
|
|
|
3,111
|
|
|
1,430
|
|
|
1,336
|
|
|
(788
|
)
|
6
|
(691
|
)
|
6
|
||||||||
Total liabilities
|
|
63,824
|
|
|
64,429
|
|
|
33,808
|
|
|
34,395
|
|
|
31,687
|
|
|
32,396
|
|
|
(1,671
|
)
|
|
(2,362
|
)
|
|
||||||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Common stock
|
|
5,935
|
|
|
5,827
|
|
|
5,935
|
|
|
5,827
|
|
|
919
|
|
|
919
|
|
|
(919
|
)
|
5
|
(919
|
)
|
5
|
||||||||
Treasury stock
|
|
(24,217
|
)
|
|
(20,531
|
)
|
|
(24,217
|
)
|
|
(20,531
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||
Profit employed in the business
|
|
34,437
|
|
|
30,427
|
|
|
34,437
|
|
|
30,427
|
|
|
3,997
|
|
|
3,543
|
|
|
(3,997
|
)
|
5
|
(3,543
|
)
|
5
|
||||||||
Accumulated other comprehensive income (loss)
|
|
(1,567
|
)
|
|
(1,684
|
)
|
|
(1,567
|
)
|
|
(1,684
|
)
|
|
(828
|
)
|
|
(943
|
)
|
|
828
|
|
5
|
943
|
|
5
|
||||||||
Noncontrolling interests
|
|
41
|
|
|
41
|
|
|
41
|
|
|
41
|
|
|
172
|
|
|
153
|
|
|
(172
|
)
|
5
|
(153
|
)
|
5
|
||||||||
Total shareholders’ equity
|
|
14,629
|
|
|
14,080
|
|
|
14,629
|
|
|
14,080
|
|
|
4,260
|
|
|
3,672
|
|
|
(4,260
|
)
|
|
(3,672
|
)
|
|
||||||||
Total liabilities and shareholders’ equity
|
|
$
|
78,453
|
|
|
$
|
78,509
|
|
|
$
|
48,437
|
|
|
$
|
48,475
|
|
|
$
|
35,947
|
|
|
$
|
36,068
|
|
|
$
|
(5,931
|
)
|
|
$
|
(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 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.
|
10
|
Elimination of prepaid insurance in Financial Products’ other liabilities.
|
|
|
|
|
|
Supplemental Data for Statement of Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
For the Years Ended December 31
|
|
|
|
Supplemental consolidating data
|
|
||||||||||||||||||||||||||||
|
|
Consolidated
|
|
Machinery,
Energy & Transportation 1
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
||||||||||||||||||||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||||||||||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Profit (loss) of consolidated and affiliated companies
|
|
$
|
6,094
|
|
|
$
|
6,148
|
|
|
$
|
6,072
|
|
|
$
|
6,128
|
|
|
$
|
597
|
|
|
$
|
382
|
|
|
$
|
(575
|
)
|
2
|
$
|
(362
|
)
|
2
|
Adjustments for non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0
|
|
|
|
|
|
|
|||||||||||||
Depreciation and amortization
|
|
2,577
|
|
|
2,766
|
|
|
1,713
|
|
|
1,895
|
|
|
864
|
|
|
871
|
|
|
—
|
|
|
—
|
|
|
||||||||
Undistributed profit of Financial Products
|
|
—
|
|
|
—
|
|
|
(550
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
550
|
|
3
|
—
|
|
|
||||||||
Actuarial (gain) loss on pension and postretirement benefits
|
|
468
|
|
|
495
|
|
|
468
|
|
|
495
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||
Provision (benefit) for deferred income taxes
|
|
28
|
|
|
220
|
|
|
15
|
|
|
149
|
|
|
13
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
||||||||
Other
|
|
675
|
|
|
1,006
|
|
|
456
|
|
|
434
|
|
|
(215
|
)
|
|
178
|
|
|
434
|
|
4
|
394
|
|
4
|
||||||||
Financial Products' dividend in excess of profit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(57
|
)
|
5
|
||||||||
Changes in assets and liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Receivables - trade and other
|
|
171
|
|
|
(1,619
|
)
|
|
4
|
|
|
(396
|
)
|
|
15
|
|
|
6
|
|
|
152
|
|
4,6
|
(1,229
|
)
|
4,6
|
||||||||
Inventories
|
|
274
|
|
|
(1,579
|
)
|
|
250
|
|
|
(1,528
|
)
|
|
—
|
|
|
—
|
|
|
24
|
|
4
|
(51
|
)
|
4
|
||||||||
Accounts payable
|
|
(1,025
|
)
|
|
709
|
|
|
(983
|
)
|
|
771
|
|
|
20
|
|
|
(55
|
)
|
|
(62
|
)
|
4
|
(7
|
)
|
4
|
||||||||
Accrued expenses
|
|
172
|
|
|
101
|
|
|
187
|
|
|
71
|
|
|
(13
|
)
|
|
30
|
|
|
(2
|
)
|
4
|
—
|
|
|
||||||||
Accrued wages, salaries and employee benefits
|
|
(757
|
)
|
|
(162
|
)
|
|
(772
|
)
|
|
(141
|
)
|
|
15
|
|
|
(21
|
)
|
|
—
|
|
|
—
|
|
|
||||||||
Customer advances
|
|
(10
|
)
|
|
(183
|
)
|
|
(8
|
)
|
|
(183
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
4
|
—
|
|
|
||||||||
Other assets—net
|
|
(93
|
)
|
|
41
|
|
|
(166
|
)
|
|
16
|
|
|
38
|
|
|
(14
|
)
|
|
35
|
|
4
|
39
|
|
4
|
||||||||
Other liabilities—net
|
|
(1,662
|
)
|
|
(1,385
|
)
|
|
(1,815
|
)
|
|
(1,421
|
)
|
|
169
|
|
|
75
|
|
|
(16
|
)
|
4
|
(39
|
)
|
4
|
||||||||
Net cash provided by (used for) operating activities
|
|
6,912
|
|
|
6,558
|
|
|
4,871
|
|
|
6,347
|
|
|
1,503
|
|
|
1,523
|
|
|
538
|
|
|
(1,312
|
)
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures—excluding equipment leased to others
|
|
(1,056
|
)
|
|
(1,276
|
)
|
|
(1,036
|
)
|
|
(1,168
|
)
|
|
(20
|
)
|
|
(108
|
)
|
|
—
|
|
|
—
|
|
|
||||||||
Expenditures for equipment leased to others
|
|
(1,613
|
)
|
|
(1,640
|
)
|
|
(38
|
)
|
|
(53
|
)
|
|
(1,616
|
)
|
|
(1,667
|
)
|
|
41
|
|
4
|
80
|
|
4
|
||||||||
Proceeds from disposals of leased assets and property, plant and equipment
|
|
1,153
|
|
|
936
|
|
|
164
|
|
|
152
|
|
|
1,092
|
|
|
811
|
|
|
(103
|
)
|
4
|
(27
|
)
|
4
|
||||||||
Additions to finance receivables
|
|
(12,777
|
)
|
|
(12,183
|
)
|
|
—
|
|
|
—
|
|
|
(14,270
|
)
|
|
(13,595
|
)
|
|
1,493
|
|
6
|
1,412
|
|
6,7
|
||||||||
Collections of finance receivables
|
|
12,183
|
|
|
10,901
|
|
|
—
|
|
|
—
|
|
|
13,537
|
|
|
12,513
|
|
|
(1,354
|
)
|
6
|
(1,612
|
)
|
6
|
||||||||
Net intercompany purchased receivables
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
640
|
|
|
(1,046
|
)
|
|
(640
|
)
|
6
|
1,046
|
|
6
|
||||||||
Proceeds from sale of finance receivables
|
|
235
|
|
|
477
|
|
|
—
|
|
|
—
|
|
|
235
|
|
|
477
|
|
|
—
|
|
|
—
|
|
|
||||||||
Net intercompany borrowings
|
|
—
|
|
|
—
|
|
|
900
|
|
|
112
|
|
|
3
|
|
|
31
|
|
|
(903
|
)
|
8
|
(143
|
)
|
8
|
||||||||
Investments and acquisitions (net of cash acquired)
|
|
(47
|
)
|
|
(392
|
)
|
|
(47
|
)
|
|
(392
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||
Proceeds from sale of businesses and investments (net of cash sold)
|
|
41
|
|
|
16
|
|
|
3
|
|
|
22
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
7
|
||||||||
Proceeds from sale of securities
|
|
529
|
|
|
442
|
|
|
32
|
|
|
162
|
|
|
497
|
|
|
280
|
|
|
—
|
|
|
—
|
|
|
||||||||
Investments in securities
|
|
(552
|
)
|
|
(506
|
)
|
|
(27
|
)
|
|
(24
|
)
|
|
(525
|
)
|
|
(482
|
)
|
|
—
|
|
|
—
|
|
|
||||||||
Other—net
|
|
(24
|
)
|
|
13
|
|
|
1
|
|
|
2
|
|
|
(25
|
)
|
|
10
|
|
|
—
|
|
|
1
|
|
9
|
||||||||
Net cash provided by (used for) investing activities
|
|
(1,928
|
)
|
|
(3,212
|
)
|
|
(48
|
)
|
|
(1,187
|
)
|
|
(414
|
)
|
|
(2,776
|
)
|
|
(1,466
|
)
|
|
751
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends paid
|
|
(2,132
|
)
|
|
(1,951
|
)
|
|
(2,132
|
)
|
|
(1,951
|
)
|
|
(25
|
)
|
|
(419
|
)
|
|
25
|
|
10
|
419
|
|
10
|
||||||||
Common stock issued, including treasury shares reissued
|
|
238
|
|
|
313
|
|
|
238
|
|
|
313
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
9
|
||||||||
Common shares repurchased
|
|
(4,047
|
)
|
|
(3,798
|
)
|
|
(4,047
|
)
|
|
(3,798
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||
Net intercompany borrowings
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(31
|
)
|
|
(900
|
)
|
|
(112
|
)
|
|
903
|
|
8
|
143
|
|
8
|
||||||||
Proceeds from debt issued (original maturities greater than three months)
|
|
9,841
|
|
|
8,907
|
|
|
1,479
|
|
|
57
|
|
|
8,362
|
|
|
8,850
|
|
|
—
|
|
|
—
|
|
|
||||||||
Payments on debt (original maturities greater than three months)
|
|
(8,297
|
)
|
|
(7,829
|
)
|
|
(12
|
)
|
|
(7
|
)
|
|
(8,285
|
)
|
|
(7,822
|
)
|
|
—
|
|
|
—
|
|
|
||||||||
Short-term borrowings - net (original maturities three months or less)
|
|
(138
|
)
|
|
762
|
|
|
5
|
|
|
—
|
|
|
(143
|
)
|
|
762
|
|
|
—
|
|
|
—
|
|
|
||||||||
Other—net
|
|
(3
|
)
|
|
(54
|
)
|
|
(3
|
)
|
|
(54
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||
Net cash provided by (used for) financing activities
|
|
(4,538
|
)
|
|
(3,650
|
)
|
|
(4,475
|
)
|
|
(5,471
|
)
|
|
(991
|
)
|
|
1,260
|
|
|
928
|
|
|
561
|
|
|
||||||||
Effect of exchange rate changes on cash
|
|
(44
|
)
|
|
(126
|
)
|
|
(40
|
)
|
|
(111
|
)
|
|
(4
|
)
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
||||||||
Increase (decrease) in cash and short-term investments and restricted cash
|
|
402
|
|
|
(430
|
)
|
|
308
|
|
|
(422
|
)
|
|
94
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
||||||||
Cash and short-term investments and restricted cash at beginning of period
|
|
7,890
|
|
|
8,320
|
|
|
6,994
|
|
|
7,416
|
|
|
896
|
|
|
904
|
|
|
—
|
|
|
—
|
|
|
||||||||
Cash and short-term investments and restricted cash at end of period
|
|
$
|
8,292
|
|
|
$
|
7,890
|
|
|
$
|
7,302
|
|
|
$
|
6,994
|
|
|
$
|
990
|
|
|
$
|
896
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
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
|
Elimination of Financial Products’ dividend to Machinery, Energy & Transportation in excess of Financial Products’ profit.
|
6
|
Reclassification of Financial Products’ cash flow activity from investing to operating for receivables that arose from the sale of inventory.
|
7
|
Elimination of proceeds received from Financial Products related to Machinery, Energy & Transportation’s sale of businesses and investments.
|
8
|
Elimination of net proceeds and payments to/from Machinery, Energy & Transportation and Financial Products.
|
9
|
Elimination of change in investment and common stock related to Financial Products.
|
10
|
Elimination of dividend from Financial Products to Machinery, Energy & Transportation.
|
|
|
|
|
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 8.
|
Financial Statements and Supplementary Data.
|
|
/s/ D. James Umpleby III
|
|
|
D. James Umpleby III
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Andrew R.J. Bonfield
|
|
|
Andrew R.J. Bonfield
|
|
|
Chief Financial Officer
|
|
|
|
|
|
|
|
|
|
|
|
February 19, 2020
|
|
STATEMENT 1
|
Caterpillar Inc.
|
|
|||||||||
Consolidated Results of Operations for the Years Ended December 31
|
|
|
|
|
|
||||||
(Dollars in millions except per share data)
|
|
|
|
|
|
||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Sales and revenues:
|
|
|
|
|
|
|
|
|
|||
Sales of Machinery, Energy & Transportation
|
$
|
50,755
|
|
|
$
|
51,822
|
|
|
$
|
42,676
|
|
Revenues of Financial Products
|
3,045
|
|
|
2,900
|
|
|
2,786
|
|
|||
Total sales and revenues
|
53,800
|
|
|
54,722
|
|
|
45,462
|
|
|||
|
|
|
|
|
|
||||||
Operating costs:
|
|
|
|
|
|
|
|
|
|||
Cost of goods sold
|
36,630
|
|
|
36,997
|
|
|
31,260
|
|
|||
Selling, general and administrative expenses
|
5,162
|
|
|
5,478
|
|
|
4,999
|
|
|||
Research and development expenses
|
1,693
|
|
|
1,850
|
|
|
1,842
|
|
|||
Interest expense of Financial Products
|
754
|
|
|
722
|
|
|
646
|
|
|||
Other operating (income) expenses
|
1,271
|
|
|
1,382
|
|
|
2,255
|
|
|||
Total operating costs
|
45,510
|
|
|
46,429
|
|
|
41,002
|
|
|||
|
|
|
|
|
|
||||||
Operating profit
|
8,290
|
|
|
8,293
|
|
|
4,460
|
|
|||
|
|
|
|
|
|
||||||
Interest expense excluding Financial Products
|
421
|
|
|
404
|
|
|
531
|
|
|||
Other income (expense)
|
(57
|
)
|
|
(67
|
)
|
|
153
|
|
|||
|
|
|
|
|
|
||||||
Consolidated profit before taxes
|
7,812
|
|
|
7,822
|
|
|
4,082
|
|
|||
|
|
|
|
|
|
||||||
Provision (benefit) for income taxes
|
1,746
|
|
|
1,698
|
|
|
3,339
|
|
|||
Profit of consolidated companies
|
6,066
|
|
|
6,124
|
|
|
743
|
|
|||
|
|
|
|
|
|
||||||
Equity in profit (loss) of unconsolidated affiliated companies
|
28
|
|
|
24
|
|
|
16
|
|
|||
|
|
|
|
|
|
||||||
Profit of consolidated and affiliated companies
|
6,094
|
|
|
6,148
|
|
|
759
|
|
|||
|
|
|
|
|
|
||||||
Less: Profit (loss) attributable to noncontrolling interests
|
1
|
|
|
1
|
|
|
5
|
|
|||
|
|
|
|
|
|
||||||
Profit 1
|
$
|
6,093
|
|
|
$
|
6,147
|
|
|
$
|
754
|
|
|
|
|
|
|
|
||||||
Profit per common share
|
$
|
10.85
|
|
|
$
|
10.39
|
|
|
$
|
1.27
|
|
|
|
|
|
|
|
||||||
Profit per common share — diluted 2
|
$
|
10.74
|
|
|
$
|
10.26
|
|
|
$
|
1.26
|
|
|
|
|
|
|
|
||||||
Weighted-average common shares outstanding (millions)
|
|
|
|
|
|
|
|
|
|||
- Basic
|
561.6
|
|
|
591.4
|
|
|
591.8
|
|
|||
- Diluted 2
|
567.5
|
|
|
599.4
|
|
|
599.3
|
|
|||
|
|
|
|
|
|
1
|
Profit attributable to common shareholders.
|
2
|
Diluted by assumed exercise of stock-based compensation awards, using the treasury stock method.
|
See accompanying notes to Consolidated Financial Statements.
|
STATEMENT 2
|
|
|
Caterpillar Inc.
|
|
|||||||
Consolidated Comprehensive Income (Loss) for the Years Ended December 31
|
|||||||||||
(Millions of dollars)
|
|
|
|
|
|
||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
|
|
|
||||||
Profit (loss) of consolidated and affiliated companies
|
$
|
6,094
|
|
|
$
|
6,148
|
|
|
$
|
759
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Foreign currency translation, net of tax (provision)/benefit of: 2019 - $(5); 2018 - $(24); 2017 - $96
|
16
|
|
|
(396
|
)
|
|
765
|
|
|||
|
|
|
|
|
|
||||||
Pension and other postretirement benefits:
|
|
|
|
|
|
||||||
Current year prior service credit (cost), net of tax (provision)/benefit of: 2019 - $0; 2018 - $(6); 2017 - $(26)
|
(4
|
)
|
|
(6
|
)
|
|
48
|
|
|||
Amortization of prior service (credit) cost, net of tax (provision)/benefit of: 2019 -$10; 2018 - $8; 2017 - $9
|
(30
|
)
|
|
(28
|
)
|
|
(16
|
)
|
|||
|
|
|
|
|
|
||||||
Derivative financial instruments:
|
|
|
|
|
|
||||||
Gains (losses) deferred, net of tax (provision)/benefit of: 2019 -$(14); 2018 - $(19); 2017 - $2
|
43
|
|
|
61
|
|
|
(3
|
)
|
|||
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2019 -$15; 2018 - $31; 2017 - $(44)
|
(51
|
)
|
|
(100
|
)
|
|
77
|
|
|||
|
|
|
|
|
|
||||||
Available-for-sale securities:
|
|
|
|
|
|
||||||
Gains (losses) deferred, net of tax (provision)/benefit of: 2019 -$(10); 2018 - $3; 2017 - $(23)
|
35
|
|
|
(12
|
)
|
|
41
|
|
|||
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2019 -$0; 2018 - $0; 2017 - $35
|
—
|
|
|
—
|
|
|
(65
|
)
|
|||
|
|
|
|
|
|
||||||
Total other comprehensive income (loss), net of tax
|
9
|
|
|
(481
|
)
|
|
847
|
|
|||
Comprehensive income (loss)
|
6,103
|
|
|
5,667
|
|
|
1,606
|
|
|||
Less: comprehensive income attributable to the noncontrolling interests
|
1
|
|
|
1
|
|
|
5
|
|
|||
Comprehensive income (loss) attributable to shareholders
|
$
|
6,102
|
|
|
$
|
5,666
|
|
|
$
|
1,601
|
|
|
|
|
|
|
|
See accompanying notes to Consolidated Financial Statements.
|
STATEMENT 3
|
Caterpillar Inc.
|
|
|||||
Consolidated Financial Position at December 31
|
|
|
|
||||
(Dollars in millions)
|
|
|
|
||||
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
|
|
||
Current assets:
|
|
|
|
|
|
||
Cash and short-term investments
|
$
|
8,284
|
|
|
$
|
7,857
|
|
Receivables – trade and other
|
8,568
|
|
|
8,802
|
|
||
Receivables – finance
|
9,336
|
|
|
8,650
|
|
||
Prepaid expenses and other current assets
|
1,739
|
|
|
1,765
|
|
||
Inventories
|
11,266
|
|
|
11,529
|
|
||
Total current assets
|
39,193
|
|
|
38,603
|
|
||
|
|
|
|
||||
Property, plant and equipment – net
|
12,904
|
|
|
13,574
|
|
||
Long-term receivables – trade and other
|
1,193
|
|
|
1,161
|
|
||
Long-term receivables – finance
|
12,651
|
|
|
13,286
|
|
||
Noncurrent deferred and refundable income taxes
|
1,411
|
|
|
1,439
|
|
||
Intangible assets
|
1,565
|
|
|
1,897
|
|
||
Goodwill
|
6,196
|
|
|
6,217
|
|
||
Other assets
|
3,340
|
|
|
2,332
|
|
||
Total assets
|
$
|
78,453
|
|
|
$
|
78,509
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Short-term borrowings:
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
$
|
5
|
|
|
$
|
—
|
|
Financial Products
|
5,161
|
|
|
5,723
|
|
||
Accounts payable
|
5,957
|
|
|
7,051
|
|
||
Accrued expenses
|
3,750
|
|
|
3,573
|
|
||
Accrued wages, salaries and employee benefits
|
1,629
|
|
|
2,384
|
|
||
Customer advances
|
1,187
|
|
|
1,243
|
|
||
Dividends payable
|
567
|
|
|
495
|
|
||
Other current liabilities
|
2,155
|
|
|
1,919
|
|
||
Long-term debt due within one year:
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
16
|
|
|
10
|
|
||
Financial Products
|
6,194
|
|
|
5,820
|
|
||
Total current liabilities
|
26,621
|
|
|
28,218
|
|
||
Long-term debt due after one year:
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
9,141
|
|
|
8,005
|
|
||
Financial Products
|
17,140
|
|
|
16,995
|
|
||
Liability for postemployment benefits
|
6,599
|
|
|
7,455
|
|
||
Other liabilities
|
4,323
|
|
|
3,756
|
|
||
Total liabilities
|
63,824
|
|
|
64,429
|
|
||
Commitments and contingencies (Notes 21 and 22)
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
|
|
||
Common stock of $1.00 par value:
|
|
|
|
|
|
||
Authorized shares: 2,000,000,000
Issued shares: (2019 and 2018 – 814,894,624 shares) at paid-in amount |
5,935
|
|
|
5,827
|
|
||
Treasury stock: (2019 - 264,812,014 shares; and 2018 – 239,351,886 shares) at cost
|
(24,217
|
)
|
|
(20,531
|
)
|
||
Profit employed in the business
|
34,437
|
|
|
30,427
|
|
||
Accumulated other comprehensive income (loss)
|
(1,567
|
)
|
|
(1,684
|
)
|
||
Noncontrolling interests
|
41
|
|
|
41
|
|
||
Total shareholders’ equity
|
14,629
|
|
|
14,080
|
|
||
Total liabilities and shareholders’ equity
|
$
|
78,453
|
|
|
$
|
78,509
|
|
See accompanying notes to Consolidated Financial Statements.
|
STATEMENT 4
|
|
Caterpillar Inc.
|
|
||||||||||||||||||||
Changes in Consolidated Shareholders’ Equity for the Years Ended December 31
|
|||||||||||||||||||||||
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Common
stock
|
|
Treasury
stock
|
|
Profit
employed
in the
business
|
|
Accumulated
other
comprehensive
income (loss)
|
|
Noncontrolling
interests
|
|
Total
|
||||||||||||
Balance at January 1, 2017
|
$
|
5,277
|
|
|
$
|
(17,478
|
)
|
|
$
|
27,392
|
|
|
$
|
(2,039
|
)
|
|
$
|
76
|
|
|
$
|
13,228
|
|
Profit (loss) of consolidated and affiliated companies
|
—
|
|
|
—
|
|
|
754
|
|
|
—
|
|
|
5
|
|
|
759
|
|
||||||
Foreign currency translation, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
765
|
|
|
—
|
|
|
765
|
|
||||||
Pension and other postretirement benefits, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
32
|
|
||||||
Derivative financial instruments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
—
|
|
|
74
|
|
||||||
Available-for-sale securities, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
(24
|
)
|
||||||
Change in ownership from noncontrolling interests
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
1
|
|
||||||
Dividends declared
|
—
|
|
|
—
|
|
|
(1,845
|
)
|
|
—
|
|
|
—
|
|
|
(1,845
|
)
|
||||||
Distribution to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
(9
|
)
|
||||||
Common shares issued from treasury stock for stock-based compensation: 11,139,748
|
93
|
|
|
473
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
566
|
|
||||||
Stock-based compensation expense
|
206
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
206
|
|
||||||
Other
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
||||||
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 (loss) of consolidated and affiliated companies
|
—
|
|
|
—
|
|
|
6,147
|
|
|
—
|
|
|
1
|
|
|
6,148
|
|
||||||
Foreign currency translation, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(396
|
)
|
|
—
|
|
|
(396
|
)
|
||||||
Pension and other postretirement benefits, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(34
|
)
|
|
—
|
|
|
(34
|
)
|
||||||
Derivative financial instruments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
|
(39
|
)
|
||||||
Available-for-sale securities, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
||||||
Change in ownership from noncontrolling interests
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
(53
|
)
|
||||||
Dividends declared
|
—
|
|
|
—
|
|
|
(1,985
|
)
|
|
—
|
|
|
—
|
|
|
(1,985
|
)
|
||||||
Distribution to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Common shares issued from treasury stock for stock-based compensation: 5,590,641
|
41
|
|
|
272
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
313
|
|
||||||
Stock-based compensation expense
|
197
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
197
|
|
||||||
Common shares repurchased: 27,673,675 1
|
—
|
|
|
(3,798
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,798
|
)
|
||||||
Other
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
||||||
Balance at December 31, 2018
|
$
|
5,827
|
|
|
$
|
(20,531
|
)
|
|
$
|
30,427
|
|
|
$
|
(1,684
|
)
|
|
$
|
41
|
|
|
$
|
14,080
|
|
STATEMENT 4
|
|
Caterpillar Inc.
|
|
||||||||||||||||||||
Changes in Consolidated Shareholders’ Equity for the Years Ended December 31
|
|||||||||||||||||||||||
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Common
stock
|
|
Treasury
stock
|
|
Profit
employed
in the
business
|
|
Accumulated
other
comprehensive
income (loss)
|
|
Noncontrolling
interests
|
|
Total
|
||||||||||||
Balance at December 31, 2018
|
$
|
5,827
|
|
|
$
|
(20,531
|
)
|
|
$
|
30,427
|
|
|
$
|
(1,684
|
)
|
|
$
|
41
|
|
|
$
|
14,080
|
|
Adjustments to adopt new accounting guidance2
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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 (loss) of consolidated and affiliated companies
|
—
|
|
|
—
|
|
|
6,093
|
|
|
—
|
|
|
1
|
|
|
6,094
|
|
||||||
Foreign currency translation, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
||||||
Pension and other postretirement benefits, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(34
|
)
|
|
—
|
|
|
(34
|
)
|
||||||
Derivative financial instruments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
||||||
Available-for-sale securities, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|
35
|
|
||||||
Dividends declared 3
|
—
|
|
|
—
|
|
|
(2,210
|
)
|
|
—
|
|
|
—
|
|
|
(2,210
|
)
|
||||||
Distribution to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||
Common shares issued from treasury stock for stock-based compensation: 5,126,379
|
(4
|
)
|
|
242
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
238
|
|
||||||
Stock-based compensation expense
|
205
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
205
|
|
||||||
Common shares repurchased: 30,586,507 1
|
—
|
|
|
(3,928
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,928
|
)
|
||||||
Other
|
(93
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(91
|
)
|
||||||
Balance at December 31, 2019
|
$
|
5,935
|
|
|
$
|
(24,217
|
)
|
|
$
|
34,437
|
|
|
$
|
(1,567
|
)
|
|
$
|
41
|
|
|
$
|
14,629
|
|
1
|
See Note 16 regarding shares repurchased.
|
2
|
See Note 1J regarding new accounting guidance.
|
3
|
Dividends per share of common stock of $3.95, $3.36 and $3.11 were declared in the years ended December 31, 2019, 2018 and 2017, respectively.
|
See accompanying notes to Consolidated Financial Statements.
|
STATEMENT 5
|
|
Caterpillar Inc.
|
|
||||||||
Consolidated Statement of Cash Flow for the Years Ended December 31
|
|
|
|
|
|
||||||
(Millions of dollars)
|
|
|
|
|
|
||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|||
Profit (loss) of consolidated and affiliated companies
|
$
|
6,094
|
|
|
$
|
6,148
|
|
|
$
|
759
|
|
Adjustments for non-cash items:
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization
|
2,577
|
|
|
2,766
|
|
|
2,877
|
|
|||
Actuarial (gain) loss on pension and postretirement benefits
|
468
|
|
|
495
|
|
|
301
|
|
|||
Provision (benefit) for deferred income taxes
|
28
|
|
|
220
|
|
|
1,213
|
|
|||
Other
|
675
|
|
|
1,006
|
|
|
750
|
|
|||
Changes in assets and liabilities, net of acquisitions and divestitures:
|
|
|
|
|
|
|
|
|
|||
Receivables – trade and other
|
171
|
|
|
(1,619
|
)
|
|
(1,151
|
)
|
|||
Inventories
|
274
|
|
|
(1,579
|
)
|
|
(1,295
|
)
|
|||
Accounts payable
|
(1,025
|
)
|
|
709
|
|
|
1,478
|
|
|||
Accrued expenses
|
172
|
|
|
101
|
|
|
175
|
|
|||
Accrued wages, salaries and employee benefits
|
(757
|
)
|
|
(162
|
)
|
|
1,187
|
|
|||
Customer advances
|
(10
|
)
|
|
(183
|
)
|
|
(8
|
)
|
|||
Other assets – net
|
(93
|
)
|
|
41
|
|
|
(192
|
)
|
|||
Other liabilities – net
|
(1,662
|
)
|
|
(1,385
|
)
|
|
(388
|
)
|
|||
Net cash provided by (used for) operating activities
|
6,912
|
|
|
6,558
|
|
|
5,706
|
|
|||
|
|
|
|
|
|
||||||
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|||
Capital expenditures – excluding equipment leased to others
|
(1,056
|
)
|
|
(1,276
|
)
|
|
(898
|
)
|
|||
Expenditures for equipment leased to others
|
(1,613
|
)
|
|
(1,640
|
)
|
|
(1,438
|
)
|
|||
Proceeds from disposals of leased assets and property, plant and equipment
|
1,153
|
|
|
936
|
|
|
1,164
|
|
|||
Additions to finance receivables
|
(12,777
|
)
|
|
(12,183
|
)
|
|
(11,953
|
)
|
|||
Collections of finance receivables
|
12,183
|
|
|
10,901
|
|
|
12,018
|
|
|||
Proceeds from sale of finance receivables
|
235
|
|
|
477
|
|
|
127
|
|
|||
Investments and acquisitions (net of cash acquired)
|
(47
|
)
|
|
(392
|
)
|
|
(59
|
)
|
|||
Proceeds from sale of businesses and investments (net of cash sold)
|
41
|
|
|
16
|
|
|
100
|
|
|||
Proceeds from sale of securities
|
529
|
|
|
442
|
|
|
932
|
|
|||
Investments in securities
|
(552
|
)
|
|
(506
|
)
|
|
(1,048
|
)
|
|||
Other – net
|
(24
|
)
|
|
13
|
|
|
89
|
|
|||
Net cash provided by (used for) investing activities
|
(1,928
|
)
|
|
(3,212
|
)
|
|
(966
|
)
|
|||
|
|
|
|
|
|
||||||
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|||
Dividends paid
|
(2,132
|
)
|
|
(1,951
|
)
|
|
(1,831
|
)
|
|||
Common stock issued, including treasury shares reissued
|
238
|
|
|
313
|
|
|
566
|
|
|||
Common shares repurchased
|
(4,047
|
)
|
|
(3,798
|
)
|
|
—
|
|
|||
Proceeds from debt issued (original maturities greater than three months):
|
|
|
|
|
|
|
|
|
|||
- Machinery, Energy & Transportation
|
1,479
|
|
|
57
|
|
|
361
|
|
|||
- Financial Products
|
8,362
|
|
|
8,850
|
|
|
8,702
|
|
|||
Payments on debt (original maturities greater than three months):
|
|
|
|
|
|
|
|
|
|||
- Machinery, Energy & Transportation
|
(12
|
)
|
|
(7
|
)
|
|
(1,465
|
)
|
|||
- Financial Products
|
(8,285
|
)
|
|
(7,822
|
)
|
|
(6,923
|
)
|
|||
Short-term borrowings – net (original maturities three months or less)
|
(138
|
)
|
|
762
|
|
|
(3,058
|
)
|
|||
Other – net
|
(3
|
)
|
|
(54
|
)
|
|
(9
|
)
|
|||
Net cash provided by (used for) financing activities
|
(4,538
|
)
|
|
(3,650
|
)
|
|
(3,657
|
)
|
|||
Effect of exchange rate changes on cash
|
(44
|
)
|
|
(126
|
)
|
|
38
|
|
|||
Increase (decrease) in cash and short-term investments and restricted cash
|
402
|
|
|
(430
|
)
|
|
1,121
|
|
|||
Cash and short-term investments and restricted cash at beginning of period
|
7,890
|
|
|
8,320
|
|
|
7,199
|
|
|||
Cash and short-term investments and restricted cash at end of period
|
$
|
8,292
|
|
|
$
|
7,890
|
|
|
$
|
8,320
|
|
See accompanying notes to Consolidated Financial Statements.
|
1.
|
Operations and summary of significant accounting policies
|
A.
|
Nature of operations
|
B.
|
Basis of presentation
|
C.
|
Inventories
|
D.
|
Depreciation and amortization
|
E.
|
Foreign currency translation
|
F.
|
Derivative financial instruments
|
G.
|
Income taxes
|
H.
|
Goodwill
|
I.
|
Estimates in financial statements
|
J.
|
New accounting guidance
|
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
|
|
|
|
|
|
|
|
|
ASU
|
Description
|
2017-08
|
Premium amortization on purchased callable debt securities
|
2017-12
|
Derivatives and hedging - Targeted improvements
|
2018-02
|
Reclassification of certain tax effects from accumulated other comprehensive income
|
2.
|
Sales and revenue recognition
|
3.
|
Stock-based compensation
|
TABLE I — Financial Information Related to Stock-based Compensation
|
||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
Stock options / SARs
|
|
RSUs
|
|
PRSUs
|
|||||||||||||||
|
Shares
|
|
Weighted-
Average
Exercise
Price
|
|
Shares
|
|
Weighted-
Average
Grant Date Fair Value
|
|
Shares
|
|
Weighted-
Average
Grant Date Fair Value
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Outstanding at January 1, 2019
|
17,841,669
|
|
|
$
|
91.93
|
|
|
1,566,070
|
|
|
$
|
112.99
|
|
|
735,299
|
|
|
$
|
115.18
|
|
Granted to officers and key employees 1
|
1,499,524
|
|
|
$
|
138.35
|
|
|
687,294
|
|
|
$
|
138.61
|
|
|
359,122
|
|
|
$
|
138.67
|
|
Exercised
|
(4,808,237
|
)
|
|
$
|
83.81
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Vested
|
—
|
|
|
$
|
—
|
|
|
(820,927
|
)
|
|
$
|
99.76
|
|
|
(399,811
|
)
|
|
$
|
95.66
|
|
Forfeited / expired
|
(67,962
|
)
|
|
$
|
123.36
|
|
|
(63,234
|
)
|
|
$
|
133.39
|
|
|
(24,495
|
)
|
|
$
|
125.89
|
|
Outstanding at December 31, 2019
|
14,464,994
|
|
|
$
|
99.29
|
|
|
1,369,203
|
|
|
$
|
132.88
|
|
|
670,115
|
|
|
$
|
144.46
|
|
Exercisable at December 31, 2019
|
11,154,215
|
|
|
$
|
89.84
|
|
|
|
|
|
|
|
|
|
1
|
No SARs were granted during the year ended December 31, 2019.
|
2
|
The difference between a stock award’s exercise price and the underlying stock’s closing market price at December 31, 2019, for awards with market price greater than the exercise price. Amounts are in millions of dollars.
|
|
|
|
|
|
TABLE II— Additional Stock-based Award Information
|
||||||||||||
|
|
|
|
|
|
|
||||||
(Dollars in millions except per share data)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Stock options/SARs activity:
|
|
|
|
|
|
|
|
|
|
|||
Weighted-average fair value per share of stock awards granted
|
|
$
|
40.98
|
|
|
$
|
46.09
|
|
|
$
|
25.01
|
|
Intrinsic value of stock awards exercised
|
|
$
|
264
|
|
|
$
|
348
|
|
|
$
|
504
|
|
Fair value of stock awards vested 1
|
|
$
|
100
|
|
|
$
|
86
|
|
|
$
|
191
|
|
Cash received from stock awards exercised
|
|
$
|
298
|
|
|
$
|
370
|
|
|
$
|
629
|
|
|
|
|
|
|
|
|
||||||
RSUs activity:
|
|
|
|
|
|
|
|
|
|
|||
Weighted-average fair value per share of stock awards granted
|
|
$
|
138.61
|
|
|
$
|
150.58
|
|
|
$
|
90.11
|
|
Fair value of stock awards vested 2
|
|
$
|
110
|
|
|
$
|
180
|
|
|
$
|
189
|
|
|
|
|
|
|
|
|
||||||
PRSUs activity:
|
|
|
|
|
|
|
|
|
|
|||
Weighted-average fair value per share of stock awards granted
|
|
$
|
138.67
|
|
|
$
|
150.98
|
|
|
$
|
86.78
|
|
Fair value of stock awards vested 2
|
|
$
|
59
|
|
|
$
|
70
|
|
|
$
|
20
|
|
1
|
Based on the grant date fair value.
|
2
|
Based on the underlying stock’s closing market price on the vesting date.
|
|
|
|
|
|
4.
|
Derivative financial instruments and risk management
|
A.
|
Foreign currency exchange rate risk
|
B.
|
Interest rate risk
|
C.
|
Commodity price risk
|
|
Consolidated
Statement of Financial Position Location
|
|
Asset (Liability) Fair Value
|
||||||
(Millions of dollars)
|
|
|
Years ended December 31,
|
||||||
|
|
|
2019
|
|
2018
|
||||
Designated derivatives
|
|
|
|
|
|
|
|
||
Foreign exchange contracts
|
|
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
Receivables — trade and other
|
|
$
|
18
|
|
|
$
|
16
|
|
Machinery, Energy & Transportation
|
Long-term receivables — trade and other
|
|
9
|
|
|
—
|
|
||
Machinery, Energy & Transportation
|
Accrued expenses
|
|
(20
|
)
|
|
(26
|
)
|
||
Machinery, Energy & Transportation
|
Other liabilities
|
|
—
|
|
|
(9
|
)
|
||
Financial Products
|
Receivables — trade and other
|
|
54
|
|
|
53
|
|
||
Financial Products
|
Long-term receivables — trade and other
|
|
13
|
|
|
35
|
|
||
Financial Products
|
Accrued expenses
|
|
(3
|
)
|
|
(9
|
)
|
||
Interest rate contracts
|
|
|
|
|
|
|
|
||
Financial Products
|
Receivables — trade and other
|
|
—
|
|
|
1
|
|
||
Financial Products
|
Long-term receivables — trade and other
|
|
5
|
|
|
3
|
|
||
Financial Products
|
Accrued expenses
|
|
(25
|
)
|
|
(40
|
)
|
||
|
|
|
$
|
51
|
|
|
$
|
24
|
|
|
|
|
|
|
|
||||
Undesignated derivatives
|
|
|
|
|
|
|
|
||
Foreign exchange contracts
|
|
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
Receivables — trade and other
|
|
$
|
1
|
|
|
$
|
2
|
|
Machinery, Energy & Transportation
|
Accrued expenses
|
|
—
|
|
|
(21
|
)
|
||
Financial Products
|
Receivables — trade and other
|
|
7
|
|
|
15
|
|
||
Financial Products
|
Long-term receivables — trade and other
|
|
5
|
|
|
5
|
|
||
Financial Products
|
Accrued expenses
|
|
(22
|
)
|
|
(14
|
)
|
||
Commodity contracts
|
|
|
|
|
|
|
|
||
Machinery, Energy & Transportation
|
Receivables — trade and other
|
|
4
|
|
|
1
|
|
||
Machinery, Energy & Transportation
|
Accrued expenses
|
|
(1
|
)
|
|
(31
|
)
|
||
|
|
|
$
|
(6
|
)
|
|
$
|
(43
|
)
|
|
|
|
|
|
|
|
Years ended December 31,
|
|||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
||||
Machinery, Energy & Transportation
|
|
$
|
2,563
|
|
|
$
|
1,834
|
|
Financial Products
|
|
$
|
8,931
|
|
|
$
|
10,210
|
|
|
|
|
|
|
Cash Flow Hedges
|
|
|
|
|
|
|
|
|
||||||
(Millions of dollars)
|
|
Year ended December 31, 2019
|
||||||||||||
|
|
|
|
Recognized in Earnings
|
||||||||||
|
|
Amount of
Gains (Losses) Recognized in AOCI |
|
Classification of
Gains (Losses)
|
|
Amount of Gains (Losses) Reclassified from AOCI
|
|
Amount of the line items in Statement 1
|
||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
|
$
|
34
|
|
|
Sales of Machinery, Energy & Transportation
|
|
$
|
11
|
|
|
$
|
50,755
|
|
|
|
|
|
Cost of goods sold
|
|
(3
|
)
|
|
36,630
|
|
||||
Financial Products
|
|
93
|
|
|
Interest expense of Financial Products
|
|
33
|
|
|
754
|
|
|||
|
|
|
|
Other income (expense)
|
|
37
|
|
|
(57
|
)
|
||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
|
—
|
|
|
Interest expense excluding Financial Products
|
|
(4
|
)
|
|
421
|
|
|||
Financial Products
|
|
(70
|
)
|
|
Interest expense of Financial Products
|
|
(8
|
)
|
|
754
|
|
|||
|
|
$
|
57
|
|
|
|
|
$
|
66
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
|
Year ended December 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 to
Earnings
|
|
Recognized in Earnings (Ineffective Portion)
|
||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
|
$
|
(47
|
)
|
|
Other income (expense)
|
|
$
|
(33
|
)
|
|
$
|
—
|
|
Financial Products
|
|
165
|
|
|
Other income (expense)
|
|
148
|
|
|
—
|
|
|||
|
|
|
|
Interest expense of Financial Products
|
|
19
|
|
|
—
|
|
||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
|
—
|
|
|
Interest expense excluding Financial Products
|
|
(3
|
)
|
|
—
|
|
|||
Financial Products
|
|
(38
|
)
|
|
Interest expense of Financial Products
|
|
—
|
|
|
—
|
|
|||
|
|
$
|
80
|
|
|
|
|
$
|
131
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Year ended December 31, 2017
|
||||||||||||
|
|
|
|
Recognized in Earnings
|
||||||||||
|
|
Amount of
Gains (Losses) Recognized in AOCI (Effective Portion) |
|
Classification of
Gains (Losses)
|
|
Amount of
Gains (Losses)
Reclassified
from AOCI to
Earnings
|
|
Recognized in Earnings (Ineffective Portion)
|
||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
||||||
Machinery, Energy & Transportation
|
|
$
|
72
|
|
|
Other income (expense)
|
|
$
|
(40
|
)
|
|
$
|
—
|
|
Financial Products
|
|
(77
|
)
|
|
Other income (expense)
|
|
(81
|
)
|
|
—
|
|
|||
|
|
|
|
Interest expense of Financial Products
|
|
6
|
|
|
—
|
|
||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
|
—
|
|
|
Interest expense excluding Financial Products
|
|
(9
|
)
|
|
—
|
|
|||
Financial Products
|
|
—
|
|
|
Interest expense of Financial Products
|
|
3
|
|
|
—
|
|
|||
|
|
$
|
(5
|
)
|
|
|
|
$
|
(121
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31,
|
||||||||||
(Millions of dollars)
|
|
Classification of Gains (Losses)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
|
Other income (expense)
|
|
$
|
13
|
|
|
$
|
(54
|
)
|
|
$
|
72
|
|
Financial Products
|
|
Other income (expense)
|
|
(37
|
)
|
|
19
|
|
|
9
|
|
|||
Commodity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|||
Machinery, Energy & Transportation
|
|
Other income (expense)
|
|
18
|
|
|
(39
|
)
|
|
30
|
|
|||
|
|
|
|
$
|
(6
|
)
|
|
$
|
(74
|
)
|
|
$
|
111
|
|
|
|
|
|
|
|
|
|
|
December 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
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
32
|
|
|
$
|
(13
|
)
|
|
$
|
—
|
|
|
$
|
19
|
|
|
Financial Products
|
|
84
|
|
|
—
|
|
|
84
|
|
|
(21
|
)
|
|
—
|
|
|
63
|
|
|
||||||
Total
|
|
$
|
116
|
|
|
$
|
—
|
|
|
$
|
116
|
|
|
$
|
(34
|
)
|
|
$
|
—
|
|
|
$
|
82
|
|
|
December 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
|
|
$
|
(21
|
)
|
|
$
|
—
|
|
|
$
|
(21
|
)
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
|
Financial Products
|
|
(50
|
)
|
|
—
|
|
|
(50
|
)
|
|
21
|
|
|
—
|
|
|
(29
|
)
|
|
||||||
Total
|
|
$
|
(71
|
)
|
|
$
|
—
|
|
|
$
|
(71
|
)
|
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
(37
|
)
|
|
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
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.
|
Other income (expense)
|
|
|
Years ended December 31,
|
|
||||||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
|
2017
|
|
||||||
Investment and interest income
|
|
$
|
202
|
|
|
$
|
195
|
|
|
$
|
122
|
|
|
Foreign exchange gains (losses) 1
|
|
(67
|
)
|
|
(201
|
)
|
|
(213
|
)
|
|
|||
License fee income
|
|
121
|
|
|
125
|
|
|
100
|
|
|
|||
Gains (losses) on sale of securities and affiliated companies
|
|
30
|
|
|
4
|
|
|
187
|
|
2
|
|||
Net periodic pension and OPEB income (cost), excluding service cost
|
|
(363
|
)
|
|
(118
|
)
|
|
(54
|
)
|
|
|||
Gains (losses) on equity securities measured at fair value 3
|
|
35
|
|
|
(33
|
)
|
|
—
|
|
|
|||
Miscellaneous income (loss)
|
|
(15
|
)
|
|
(39
|
)
|
|
11
|
|
|
|||
Total
|
|
$
|
(57
|
)
|
|
$
|
(67
|
)
|
|
$
|
153
|
|
|
1
|
Includes gains (losses) from foreign exchange derivative contracts. See Note 4 for further details.
|
2
|
Includes pretax gain of $85 million related to the sale of Caterpillar’s equity interest in Iron Planet Holdings Inc.
|
|
|
|
|
|
6.
|
Income taxes
|
The components of profit (loss) before taxes were:
|
|
|
|
|
|
|
||||||
|
|
Years ended December 31,
|
||||||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
|
2017
|
||||||
U.S.
|
|
$
|
2,888
|
|
|
$
|
2,131
|
|
|
$
|
240
|
|
Non-U.S.
|
|
4,924
|
|
|
5,691
|
|
|
3,842
|
|
|||
|
|
$
|
7,812
|
|
|
$
|
7,822
|
|
|
$
|
4,082
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
||||
Assets:
|
|
|
|
|
|
|
||
Noncurrent deferred and refundable income taxes
|
|
$
|
1,324
|
|
|
$
|
1,363
|
|
Liabilities:
|
|
|
|
|
|
|
||
Other liabilities
|
|
414
|
|
|
331
|
|
||
Deferred income taxes—net
|
|
$
|
910
|
|
|
$
|
1,032
|
|
|
|
|
|
|
The components of deferred tax assets and liabilities were:
|
|
|
|
|
||||
|
|
December 31,
|
||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
||||
Deferred income tax assets:
|
|
|
|
|
|
|
||
Tax carryforwards
|
|
$
|
1,218
|
|
|
$
|
1,312
|
|
Postemployment benefits other than pensions
|
|
876
|
|
|
793
|
|
||
Pension
|
|
445
|
|
|
785
|
|
||
Warranty reserves
|
|
263
|
|
|
237
|
|
||
Research expenditures
|
|
219
|
|
|
—
|
|
||
Allowance for credit losses
|
|
171
|
|
|
155
|
|
||
Post sale discounts
|
|
200
|
|
|
158
|
|
||
Other employee compensation and benefits
|
|
197
|
|
|
186
|
|
||
Lease obligations
|
|
157
|
|
|
—
|
|
||
Stock-based compensation
|
|
107
|
|
|
121
|
|
||
Other—net
|
|
250
|
|
|
298
|
|
||
|
|
4,103
|
|
|
4,045
|
|
||
|
|
|
|
|
||||
Deferred income tax liabilities:
|
|
|
|
|
|
|
||
Capital and intangible assets, including lease basis differences
|
|
(1,574
|
)
|
|
(1,381
|
)
|
||
Bond discount
|
|
(122
|
)
|
|
(127
|
)
|
||
Translation
|
|
(194
|
)
|
|
(190
|
)
|
||
Other outside basis differences
|
|
(257
|
)
|
|
(271
|
)
|
||
Undistributed profits of non-U.S. subsidiaries
|
|
(118
|
)
|
|
(129
|
)
|
||
|
|
(2,265
|
)
|
|
(2,098
|
)
|
||
Valuation allowance for deferred tax assets
|
|
(928
|
)
|
|
(915
|
)
|
||
Deferred income taxes—net
|
|
$
|
910
|
|
|
$
|
1,032
|
|
|
|
|
|
|
(Millions of dollars)
|
||||||||||||||||||||||||||
2020
|
|
2021
|
|
2022
|
|
2023-2025
|
|
2026-2040
|
|
Unlimited
|
|
Total
|
||||||||||||||
$
|
104
|
|
|
$
|
53
|
|
|
$
|
81
|
|
|
$
|
59
|
|
|
$
|
451
|
|
|
$
|
3,627
|
|
|
$
|
4,375
|
|
1
|
Foreign currency impacts are included within each line as applicable.
|
2
|
Includes cash payment or other reduction of assets to settle liability.
|
|
|
|
|
|
7.
|
Cat Financial Financing Activities
|
A.
|
Wholesale inventory receivables
|
B.
|
Finance receivables
|
C.
|
Allowance for credit losses
|
•
|
Customer - Finance receivables with end-user customers.
|
•
|
Dealer - Finance receivables with Caterpillar dealers.
|
•
|
North America - Finance receivables originated in the United States and Canada.
|
•
|
EAME - Finance receivables originated in Europe, Africa, Middle East and the Commonwealth of Independent States.
|
•
|
Asia Pacific - Finance receivables originated in Australia, New Zealand, China, Japan, Southeast Asia and India.
|
•
|
Mining - Finance receivables related to large mining customers worldwide.
|
•
|
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)
|
|
December 31, 2019
|
||||||||||
|
|
Customer
|
|
Dealer
|
|
Total
|
||||||
Allowance for Credit Losses:
|
|
|
|
|
|
|
|
|
|
|||
Balance at beginning of year
|
|
$
|
486
|
|
|
$
|
21
|
|
|
$
|
507
|
|
Receivables written off
|
|
(281
|
)
|
|
—
|
|
|
(281
|
)
|
|||
Recoveries on receivables previously written off
|
|
44
|
|
|
—
|
|
|
44
|
|
|||
Provision for credit losses
|
|
138
|
|
|
24
|
|
|
162
|
|
|||
Other
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
|||
Balance at end of year
|
|
$
|
375
|
|
|
$
|
45
|
|
|
$
|
420
|
|
|
|
|
|
|
|
|
||||||
Individually evaluated for impairment
|
|
$
|
178
|
|
|
$
|
39
|
|
|
$
|
217
|
|
Collectively evaluated for impairment
|
|
197
|
|
|
6
|
|
|
203
|
|
|||
Ending Balance
|
|
$
|
375
|
|
|
$
|
45
|
|
|
$
|
420
|
|
|
|
|
|
|
|
|
||||||
Recorded Investment in Finance Receivables:
|
|
|
|
|
|
|
|
|
|
|||
Individually evaluated for impairment
|
|
$
|
594
|
|
|
$
|
78
|
|
|
$
|
672
|
|
Collectively evaluated for impairment
|
|
18,093
|
|
|
3,632
|
|
|
21,725
|
|
|||
Ending Balance
|
|
$
|
18,687
|
|
|
$
|
3,710
|
|
|
$
|
22,397
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
|
December 31, 2018
|
||||||||||
|
|
Customer
|
|
Dealer
|
|
Total
|
||||||
Allowance for Credit Losses:
|
|
|
|
|
|
|
|
|
|
|||
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
|
December 31, 2019
|
||||||||||||||||||||||||||
|
|
31-60 Days Past Due
|
|
61-90 Days Past Due
|
|
91+
Days Past Due
|
|
Total Past
Due
|
|
Current
|
|
Total
Finance
Receivables
|
|
91+ Still
Accruing
|
||||||||||||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
North America
|
|
$
|
72
|
|
|
$
|
23
|
|
|
$
|
55
|
|
|
$
|
150
|
|
|
$
|
8,038
|
|
|
$
|
8,188
|
|
|
$
|
15
|
|
EAME
|
|
30
|
|
|
31
|
|
|
141
|
|
|
202
|
|
|
2,955
|
|
|
3,157
|
|
|
4
|
|
|||||||
Asia Pacific
|
|
40
|
|
|
14
|
|
|
29
|
|
|
83
|
|
|
2,440
|
|
|
2,523
|
|
|
8
|
|
|||||||
Mining
|
|
5
|
|
|
—
|
|
|
19
|
|
|
24
|
|
|
1,851
|
|
|
1,875
|
|
|
—
|
|
|||||||
Latin America
|
|
41
|
|
|
23
|
|
|
80
|
|
|
144
|
|
|
1,136
|
|
|
1,280
|
|
|
2
|
|
|||||||
Caterpillar Power Finance
|
|
10
|
|
|
10
|
|
|
225
|
|
|
245
|
|
|
1,419
|
|
|
1,664
|
|
|
—
|
|
|||||||
Dealer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
North America
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,136
|
|
|
2,136
|
|
|
—
|
|
|||||||
EAME
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
342
|
|
|
342
|
|
|
—
|
|
|||||||
Asia Pacific
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
437
|
|
|
437
|
|
|
—
|
|
|||||||
Mining
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|||||||
Latin America
|
|
—
|
|
|
—
|
|
|
78
|
|
|
78
|
|
|
712
|
|
|
790
|
|
|
—
|
|
|||||||
Caterpillar Power Finance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|||||||
Total
|
|
$
|
198
|
|
|
$
|
101
|
|
|
$
|
627
|
|
|
$
|
926
|
|
|
$
|
21,471
|
|
|
$
|
22,397
|
|
|
$
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
|
December 31, 2018
|
||||||||||||||||||||||||||
|
|
31-60 Days Past Due
|
|
61-90 Days Past Due
|
|
91+
Days Past Due
|
|
Total Past
Due
|
|
Current
|
|
Total
Finance
Receivables
|
|
91+ Still
Accruing
|
||||||||||||||
Customer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
North America
|
|
$
|
65
|
|
|
$
|
18
|
|
|
$
|
84
|
|
|
$
|
167
|
|
|
$
|
7,825
|
|
|
$
|
7,992
|
|
|
$
|
14
|
|
EAME
|
|
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
|
|
|
—
|
|
|||||||
EAME
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 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
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
10
|
|
|
$
|
—
|
|
EAME
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
||||||
Asia Pacific
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Mining
|
22
|
|
|
22
|
|
|
—
|
|
|
33
|
|
|
33
|
|
|
—
|
|
||||||
Latin America
|
8
|
|
|
8
|
|
|
—
|
|
|
29
|
|
|
29
|
|
|
—
|
|
||||||
Caterpillar Power Finance
|
58
|
|
|
58
|
|
|
—
|
|
|
69
|
|
|
83
|
|
|
—
|
|
||||||
Total
|
$
|
94
|
|
|
$
|
94
|
|
|
$
|
—
|
|
|
$
|
142
|
|
|
$
|
156
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired Finance Receivables With An Allowance Recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
30
|
|
|
$
|
30
|
|
|
$
|
11
|
|
|
$
|
40
|
|
|
$
|
41
|
|
|
$
|
14
|
|
EAME
|
61
|
|
|
61
|
|
|
29
|
|
|
92
|
|
|
92
|
|
|
57
|
|
||||||
Asia Pacific
|
8
|
|
|
8
|
|
|
2
|
|
|
4
|
|
|
4
|
|
|
2
|
|
||||||
Mining
|
37
|
|
|
36
|
|
|
9
|
|
|
56
|
|
|
55
|
|
|
26
|
|
||||||
Latin America
|
58
|
|
|
58
|
|
|
20
|
|
|
75
|
|
|
75
|
|
|
25
|
|
||||||
Caterpillar Power Finance
|
306
|
|
|
319
|
|
|
107
|
|
|
449
|
|
|
455
|
|
|
164
|
|
||||||
Total
|
$
|
500
|
|
|
$
|
512
|
|
|
$
|
178
|
|
|
$
|
716
|
|
|
$
|
722
|
|
|
$
|
288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Impaired Finance Receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
36
|
|
|
$
|
36
|
|
|
$
|
11
|
|
|
$
|
50
|
|
|
$
|
51
|
|
|
$
|
14
|
|
EAME
|
61
|
|
|
61
|
|
|
29
|
|
|
93
|
|
|
93
|
|
|
57
|
|
||||||
Asia Pacific
|
8
|
|
|
8
|
|
|
2
|
|
|
4
|
|
|
4
|
|
|
2
|
|
||||||
Mining
|
59
|
|
|
58
|
|
|
9
|
|
|
89
|
|
|
88
|
|
|
26
|
|
||||||
Latin America
|
66
|
|
|
66
|
|
|
20
|
|
|
104
|
|
|
104
|
|
|
25
|
|
||||||
Caterpillar Power Finance
|
364
|
|
|
377
|
|
|
107
|
|
|
518
|
|
|
538
|
|
|
164
|
|
||||||
Total
|
$
|
594
|
|
|
$
|
606
|
|
|
$
|
178
|
|
|
$
|
858
|
|
|
$
|
878
|
|
|
$
|
288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31,
|
||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||
(Millions of dollars)
|
|
Average
Recorded
Investment
|
|
Interest
Income Recognized |
|
Average
Recorded
Investment
|
|
Interest
Income Recognized |
|
Average
Recorded
Investment
|
|
Interest
Income Recognized |
||||||||||||
Impaired Finance Receivables With No Allowance Recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
North America
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
1
|
|
|
$
|
13
|
|
|
$
|
1
|
|
EAME
|
|
6
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
48
|
|
|
1
|
|
||||||
Asia Pacific
|
|
—
|
|
|
—
|
|
|
27
|
|
|
3
|
|
|
24
|
|
|
2
|
|
||||||
Mining
|
|
27
|
|
|
1
|
|
|
57
|
|
|
2
|
|
|
126
|
|
|
7
|
|
||||||
Latin America
|
|
21
|
|
|
1
|
|
|
38
|
|
|
2
|
|
|
64
|
|
|
3
|
|
||||||
Caterpillar Power Finance
|
|
54
|
|
|
3
|
|
|
130
|
|
|
7
|
|
|
221
|
|
|
9
|
|
||||||
Total
|
|
$
|
117
|
|
|
$
|
5
|
|
|
$
|
282
|
|
|
$
|
15
|
|
|
$
|
496
|
|
|
$
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired Finance Receivables With An Allowance Recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
North America
|
|
$
|
34
|
|
|
$
|
2
|
|
|
$
|
49
|
|
|
$
|
2
|
|
|
$
|
49
|
|
|
$
|
1
|
|
EAME
|
|
81
|
|
|
2
|
|
|
53
|
|
|
2
|
|
|
6
|
|
|
—
|
|
||||||
Asia Pacific
|
|
9
|
|
|
1
|
|
|
4
|
|
|
—
|
|
|
31
|
|
|
2
|
|
||||||
Mining
|
|
48
|
|
|
2
|
|
|
46
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||||
Latin America
|
|
72
|
|
|
5
|
|
|
67
|
|
|
3
|
|
|
99
|
|
|
4
|
|
||||||
Caterpillar Power Finance
|
|
396
|
|
|
11
|
|
|
378
|
|
|
12
|
|
|
180
|
|
|
6
|
|
||||||
Total
|
|
$
|
640
|
|
|
$
|
23
|
|
|
$
|
597
|
|
|
$
|
22
|
|
|
$
|
365
|
|
|
$
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Impaired Finance Receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
North America
|
|
$
|
43
|
|
|
$
|
2
|
|
|
$
|
65
|
|
|
$
|
3
|
|
|
$
|
62
|
|
|
$
|
2
|
|
EAME
|
|
87
|
|
|
2
|
|
|
67
|
|
|
2
|
|
|
54
|
|
|
1
|
|
||||||
Asia Pacific
|
|
9
|
|
|
1
|
|
|
31
|
|
|
3
|
|
|
55
|
|
|
4
|
|
||||||
Mining
|
|
75
|
|
|
3
|
|
|
103
|
|
|
5
|
|
|
126
|
|
|
7
|
|
||||||
Latin America
|
|
93
|
|
|
6
|
|
|
105
|
|
|
5
|
|
|
163
|
|
|
7
|
|
||||||
Caterpillar Power Finance
|
|
450
|
|
|
14
|
|
|
508
|
|
|
19
|
|
|
401
|
|
|
15
|
|
||||||
Total
|
|
$
|
757
|
|
|
$
|
28
|
|
|
$
|
879
|
|
|
$
|
37
|
|
|
$
|
861
|
|
|
$
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
||||
North America
|
|
$
|
44
|
|
|
$
|
77
|
|
EAME
|
|
165
|
|
|
154
|
|
||
Asia Pacific
|
|
21
|
|
|
4
|
|
||
Mining
|
|
47
|
|
|
50
|
|
||
Latin America
|
|
89
|
|
|
106
|
|
||
Caterpillar Power Finance
|
|
361
|
|
|
416
|
|
||
Total
|
|
$
|
727
|
|
|
$
|
807
|
|
|
|
|
|
|
(Millions of dollars)
|
|
Year ended December 31, 2019
|
|
|||||||||
|
|
Number
of Contracts
|
|
Pre-TDR
Recorded Investment |
|
Post-TDR
Recorded Investment |
|
|||||
North America
|
|
15
|
|
|
$
|
11
|
|
|
$
|
11
|
|
|
EAME
|
|
19
|
|
|
17
|
|
|
17
|
|
|
||
Asia Pacific
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||
Mining
|
|
2
|
|
|
8
|
|
|
8
|
|
|
||
Latin America
|
|
5
|
|
|
5
|
|
|
3
|
|
|
||
Caterpillar Power Finance
|
|
21
|
|
|
168
|
|
|
165
|
|
|
||
Total
|
|
62
|
|
|
$
|
209
|
|
|
$
|
204
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Year ended December 31, 2018
|
|
|||||||||
|
|
Number
of Contracts
|
|
Pre-TDR
Recorded Investment |
|
Post-TDR
Recorded Investment |
|
|||||
North America
|
|
38
|
|
|
$
|
21
|
|
|
$
|
21
|
|
|
EAME
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||
Asia Pacific
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||
Mining
|
|
1
|
|
|
29
|
|
|
29
|
|
|
||
Latin America
|
|
1
|
|
|
3
|
|
|
3
|
|
|
||
Caterpillar Power Finance
|
|
12
|
|
|
133
|
|
|
99
|
|
|
||
Total
|
|
52
|
|
|
$
|
186
|
|
|
$
|
152
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Year ended December 31, 2017
|
|
|||||||||
|
|
Number
of Contracts
|
|
Pre-TDR
Recorded Investment |
|
Post-TDR
Recorded Investment |
|
|||||
North America
|
|
43
|
|
|
$
|
34
|
|
|
$
|
35
|
|
|
EAME
|
|
4
|
|
|
1
|
|
|
1
|
|
|
||
Asia Pacific
|
|
10
|
|
|
39
|
|
|
31
|
|
|
||
Mining
|
|
2
|
|
|
57
|
|
|
56
|
|
|
||
Latin America
|
|
17
|
|
|
26
|
|
|
27
|
|
|
||
Caterpillar Power Finance 1
|
|
68
|
|
|
422
|
|
|
407
|
|
|
||
Total
|
|
144
|
|
|
$
|
579
|
|
|
$
|
557
|
|
|
|
|
|
|
|
|
|
|
1
|
In Caterpillar Power Finance, 48 contracts with a pre-TDR recorded investment of $265 million and a post-TDR recorded investment of $258 million were related to six customers.
|
|
|
|
|
|
(Millions of dollars)
|
|
Year ended December 31, 2019
|
|
Year ended December 31, 2018
|
|
Year ended December 31, 2017
|
|
|||||||||||||||
|
|
Number
of Contracts |
|
Post-TDR
Recorded Investment |
|
Number
of Contracts |
|
Post-TDR
Recorded Investment |
|
Number
of Contracts |
|
Post-TDR
Recorded Investment |
|
|||||||||
North America
|
|
11
|
|
|
$
|
5
|
|
|
10
|
|
|
$
|
10
|
|
|
4
|
|
|
$
|
3
|
|
|
EAME
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
|||
Asia Pacific
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
1
|
|
|
|||
Latin America1
|
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
243
|
|
|
17
|
|
|
|||
Caterpillar Power Finance
|
|
1
|
|
|
10
|
|
|
3
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
|||
Total
|
|
12
|
|
|
$
|
15
|
|
|
16
|
|
|
$
|
44
|
|
|
252
|
|
|
$
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
In Latin America, 238 contracts with a post-TDR recorded investment of $16 million were related to two customers for the year ended December 31, 2017.
|
|
|
|
|
|
8.
|
Inventories
|
|
|
December 31,
|
||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
||||
Raw materials
|
|
$
|
4,263
|
|
|
$
|
4,477
|
|
Work-in-process
|
|
1,147
|
|
|
1,259
|
|
||
Finished goods
|
|
5,598
|
|
|
5,562
|
|
||
Supplies
|
|
258
|
|
|
231
|
|
||
Total inventories
|
|
$
|
11,266
|
|
|
$
|
11,529
|
|
|
|
|
|
|
9.
|
Property, plant and equipment
|
|
|
|
|
December 31,
|
||||||
(Millions of dollars)
|
|
Useful
Lives (Years)
|
|
2019
|
|
2018
|
||||
Land
|
|
—
|
|
$
|
664
|
|
|
$
|
671
|
|
Buildings and land improvements
|
|
20-45
|
|
6,710
|
|
|
6,977
|
|
||
Machinery, equipment and other
|
|
2-10
|
|
13,287
|
|
|
13,733
|
|
||
Software
|
|
3-7
|
|
1,728
|
|
|
1,703
|
|
||
Equipment leased to others
|
|
1-7
|
|
6,208
|
|
|
6,015
|
|
||
Construction-in-process
|
|
—
|
|
620
|
|
|
682
|
|
||
Total property, plant and equipment, at cost
|
|
|
|
29,217
|
|
|
29,781
|
|
||
Less: Accumulated depreciation
|
|
|
|
(16,313
|
)
|
|
(16,207
|
)
|
||
Property, plant and equipment–net
|
|
|
|
$
|
12,904
|
|
|
$
|
13,574
|
|
|
|
|
|
|
|
|
A.
|
Intangible assets
|
|
|
|
|
December 31, 2019
|
||||||||||
(Millions of dollars)
|
|
Weighted
Amortizable
Life (Years)
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
||||||
Customer relationships
|
|
15
|
|
$
|
2,450
|
|
|
$
|
(1,406
|
)
|
|
$
|
1,044
|
|
Intellectual property
|
|
12
|
|
1,510
|
|
|
(1,055
|
)
|
|
455
|
|
|||
Other
|
|
13
|
|
191
|
|
|
(125
|
)
|
|
66
|
|
|||
Total finite-lived intangible assets
|
|
14
|
|
$
|
4,151
|
|
|
$
|
(2,586
|
)
|
|
$
|
1,565
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
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)
|
||||||||||
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
$310
|
|
$292
|
|
$273
|
|
$215
|
|
$158
|
|
$317
|
|
|
|
|
|
|
|
|
|
|
|
B.
|
Goodwill
|
(Millions of dollars)
|
|
December 31, 2018
|
|
Acquisitions
|
|
Other Adjustments 1
|
|
December 31, 2019
|
||||||||
Construction Industries
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
$
|
304
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
306
|
|
Impairments
|
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
||||
Net goodwill
|
|
282
|
|
|
—
|
|
|
2
|
|
|
284
|
|
||||
Resource Industries
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
4,172
|
|
|
—
|
|
|
(16
|
)
|
|
4,156
|
|
||||
Impairments
|
|
(1,175
|
)
|
|
—
|
|
|
—
|
|
|
(1,175
|
)
|
||||
Net goodwill
|
|
2,997
|
|
|
—
|
|
|
(16
|
)
|
|
2,981
|
|
||||
Energy & Transportation
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
2,882
|
|
|
—
|
|
|
(7
|
)
|
|
2,875
|
|
||||
All Other 2
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
56
|
|
|
—
|
|
|
—
|
|
|
56
|
|
||||
Consolidated total
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
7,414
|
|
|
—
|
|
|
(21
|
)
|
|
7,393
|
|
||||
Impairments
|
|
(1,197
|
)
|
|
—
|
|
|
—
|
|
|
(1,197
|
)
|
||||
Net goodwill
|
|
$
|
6,217
|
|
|
$
|
—
|
|
|
$
|
(21
|
)
|
|
$
|
6,196
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
December 31, 2017
|
|
Acquisitions
|
|
Other Adjustments 1
|
|
December 31, 2018
|
||||||||
Construction Industries
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
$
|
305
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
304
|
|
Impairments
|
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
||||
Net goodwill
|
|
283
|
|
|
—
|
|
|
(1
|
)
|
|
282
|
|
||||
Resource Industries
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
4,232
|
|
|
—
|
|
|
(60
|
)
|
|
4,172
|
|
||||
Impairments
|
|
(1,175
|
)
|
|
—
|
|
|
—
|
|
|
(1,175
|
)
|
||||
Net goodwill
|
|
3,057
|
|
|
—
|
|
|
(60
|
)
|
|
2,997
|
|
||||
Energy & Transportation
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
2,806
|
|
|
127
|
|
|
(51
|
)
|
|
2,882
|
|
||||
All Other 2
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
54
|
|
|
—
|
|
|
2
|
|
|
56
|
|
||||
Consolidated total
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
7,397
|
|
|
127
|
|
|
(110
|
)
|
|
7,414
|
|
||||
Impairments
|
|
(1,197
|
)
|
|
—
|
|
|
—
|
|
|
(1,197
|
)
|
||||
Net goodwill
|
|
$
|
6,200
|
|
|
$
|
127
|
|
|
$
|
(110
|
)
|
|
$
|
6,217
|
|
|
|
|
|
|
11.
|
Investments in debt and equity securities
|
|
|
December 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
|
|
54
|
|
|
—
|
|
|
54
|
|
|
42
|
|
|
—
|
|
|
42
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Corporate bonds
|
|
836
|
|
|
20
|
|
|
856
|
|
|
735
|
|
|
(15
|
)
|
|
720
|
|
||||||
Asset-backed securities
|
|
62
|
|
|
—
|
|
|
62
|
|
|
63
|
|
|
—
|
|
|
63
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. governmental agency
|
|
327
|
|
|
4
|
|
|
331
|
|
|
301
|
|
|
(4
|
)
|
|
297
|
|
||||||
Residential
|
|
6
|
|
|
—
|
|
|
6
|
|
|
7
|
|
|
—
|
|
|
7
|
|
||||||
Commercial
|
|
46
|
|
|
1
|
|
|
47
|
|
|
14
|
|
|
(1
|
)
|
|
13
|
|
||||||
Total debt securities
|
|
$
|
1,340
|
|
|
$
|
25
|
|
|
$
|
1,365
|
|
|
$
|
1,171
|
|
|
$
|
(20
|
)
|
|
$
|
1,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
December 31, 2019
|
||||||
(Millions of dollars)
|
|
Cost Basis
|
|
Fair Value
|
||||
Due in one year or less
|
|
$
|
80
|
|
|
$
|
80
|
|
Due after one year through five years
|
|
701
|
|
|
715
|
|
||
Due after five years through ten years
|
|
148
|
|
|
153
|
|
||
Due after ten years
|
|
32
|
|
|
33
|
|
||
U.S. governmental agency mortgage-backed securities
|
|
327
|
|
|
331
|
|
||
Residential mortgage-backed securities
|
|
6
|
|
|
6
|
|
||
Commercial mortgage-backed securities
|
|
46
|
|
|
47
|
|
||
Total debt securities – available-for-sale
|
|
$
|
1,340
|
|
|
$
|
1,365
|
|
|
|
|
|
|
12.
|
Postemployment benefit plans
|
|
|
|
|
|
|
|
U.S. Pension Benefits
|
|
Non-U.S.
Pension Benefits
|
|
Other Postretirement
Benefits
|
||||||||||||||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Accumulated benefit obligation, end of year
|
|
$
|
17,773
|
|
|
$
|
15,877
|
|
|
$
|
4,502
|
|
|
$
|
4,038
|
|
|
|
|
|
|
|
||
Change in benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Benefit obligation, beginning of year
|
|
$
|
15,953
|
|
|
$
|
17,326
|
|
|
$
|
4,215
|
|
|
$
|
4,606
|
|
|
$
|
3,649
|
|
|
$
|
4,002
|
|
Service cost
|
|
115
|
|
|
125
|
|
|
80
|
|
|
89
|
|
|
80
|
|
|
83
|
|
||||||
Interest cost
|
|
600
|
|
|
534
|
|
|
94
|
|
|
96
|
|
|
136
|
|
|
125
|
|
||||||
Plan amendments
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
26
|
|
|
8
|
|
|
(25
|
)
|
||||||
Actuarial losses (gains)
|
|
2,090
|
|
|
(1,058
|
)
|
|
424
|
|
|
(88
|
)
|
|
350
|
|
|
(195
|
)
|
||||||
Foreign currency exchange rates
|
|
—
|
|
|
—
|
|
|
95
|
|
|
(205
|
)
|
|
(1
|
)
|
|
(28
|
)
|
||||||
Participant contributions
|
|
—
|
|
|
—
|
|
|
7
|
|
|
6
|
|
|
46
|
|
|
51
|
|
||||||
Benefits paid - gross
|
|
(982
|
)
|
|
(971
|
)
|
|
(237
|
)
|
|
(277
|
)
|
|
(316
|
)
|
|
(369
|
)
|
||||||
Less: federal subsidy on benefits paid
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
7
|
|
||||||
Curtailments, settlements and termination benefits
|
|
(3
|
)
|
|
(3
|
)
|
|
(7
|
)
|
|
(38
|
)
|
|
(1
|
)
|
|
(2
|
)
|
||||||
Benefit obligation, end of year
|
|
$
|
17,773
|
|
|
$
|
15,953
|
|
|
$
|
4,666
|
|
|
$
|
4,215
|
|
|
$
|
3,960
|
|
|
$
|
3,649
|
|
Change in plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value of plan assets, beginning of year
|
|
$
|
12,697
|
|
|
$
|
13,416
|
|
|
$
|
4,025
|
|
|
$
|
4,305
|
|
|
$
|
328
|
|
|
$
|
504
|
|
Actual return on plan assets
|
|
2,740
|
|
|
(784
|
)
|
|
482
|
|
|
13
|
|
|
71
|
|
|
(5
|
)
|
||||||
Foreign currency exchange rates
|
|
—
|
|
|
—
|
|
|
105
|
|
|
(187
|
)
|
|
—
|
|
|
—
|
|
||||||
Company contributions
|
|
1,542
|
|
|
1,039
|
|
|
143
|
|
|
165
|
|
|
127
|
|
|
147
|
|
||||||
Participant contributions
|
|
—
|
|
|
—
|
|
|
7
|
|
|
6
|
|
|
46
|
|
|
51
|
|
||||||
Benefits paid
|
|
(982
|
)
|
|
(971
|
)
|
|
(237
|
)
|
|
(277
|
)
|
|
(316
|
)
|
|
(369
|
)
|
||||||
Settlements and termination benefits
|
|
(3
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||||
Fair value of plan assets, end of year
|
|
$
|
15,994
|
|
|
$
|
12,697
|
|
|
$
|
4,525
|
|
|
$
|
4,025
|
|
|
$
|
255
|
|
|
$
|
328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Over (under) funded status
|
|
$
|
(1,779
|
)
|
|
$
|
(3,256
|
)
|
|
$
|
(141
|
)
|
|
$
|
(190
|
)
|
|
$
|
(3,705
|
)
|
|
$
|
(3,321
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Components of net amount recognized in financial position:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other assets (non-current asset)
|
|
$
|
219
|
|
|
$
|
9
|
|
|
$
|
485
|
|
|
$
|
442
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Accrued wages, salaries and employee benefits (current liability)
|
|
(42
|
)
|
|
(40
|
)
|
|
(19
|
)
|
|
(20
|
)
|
|
(161
|
)
|
|
(173
|
)
|
||||||
Liability for postemployment benefits (non-current liability) 1
|
|
(1,956
|
)
|
|
(3,225
|
)
|
|
(607
|
)
|
|
(612
|
)
|
|
(3,544
|
)
|
|
(3,148
|
)
|
||||||
Net liability recognized
|
|
$
|
(1,779
|
)
|
|
$
|
(3,256
|
)
|
|
$
|
(141
|
)
|
|
$
|
(190
|
)
|
|
$
|
(3,705
|
)
|
|
$
|
(3,321
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amounts recognized in Accumulated other comprehensive income (pre-tax) consist of:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Prior service cost (credit)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
20
|
|
|
$
|
(78
|
)
|
|
$
|
(126
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Pension Benefits
|
|
Non-U.S.
Pension Benefits
|
||||||||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Pension plans with projected benefit obligation in excess of plan assets:
|
|
|
|
|
|
|
|
|
||||||||
Projected benefit obligation
|
|
$
|
14,037
|
|
|
$
|
15,614
|
|
|
$
|
2,010
|
|
|
$
|
1,821
|
|
Accumulated benefit obligation
|
|
$
|
14,037
|
|
|
$
|
15,541
|
|
|
$
|
1,896
|
|
|
$
|
1,723
|
|
Fair value of plan assets
|
|
$
|
12,039
|
|
|
$
|
12,349
|
|
|
$
|
1,384
|
|
|
$
|
1,189
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pension plans with accumulated benefit obligation in excess of plan assets:
|
|
|
|
|
|
|
|
|
||||||||
Projected benefit obligation
|
|
$
|
14,037
|
|
|
$
|
15,614
|
|
|
$
|
1,875
|
|
|
$
|
1,655
|
|
Accumulated benefit obligation
|
|
$
|
14,037
|
|
|
$
|
15,541
|
|
|
$
|
1,799
|
|
|
$
|
1,603
|
|
Fair value of plan assets
|
|
$
|
12,039
|
|
|
$
|
12,349
|
|
|
$
|
1,269
|
|
|
$
|
1,047
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
U.S. Pension Benefits
|
|
Non-U.S. Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||||||||||||||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||
Components of net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Service cost
|
|
$
|
115
|
|
|
$
|
125
|
|
|
$
|
115
|
|
|
$
|
80
|
|
|
$
|
89
|
|
|
$
|
95
|
|
|
$
|
80
|
|
|
$
|
83
|
|
|
$
|
78
|
|
Interest cost
|
|
600
|
|
|
534
|
|
|
525
|
|
|
94
|
|
|
96
|
|
|
101
|
|
|
136
|
|
|
125
|
|
|
130
|
|
|||||||||
Expected return on plan assets
|
|
(721
|
)
|
|
(808
|
)
|
|
(734
|
)
|
|
(148
|
)
|
|
(221
|
)
|
|
(231
|
)
|
|
(18
|
)
|
|
(32
|
)
|
|
(37
|
)
|
|||||||||
Curtailments, settlements and termination benefits
|
|
(1
|
)
|
|
—
|
|
|
9
|
|
|
(7
|
)
|
|
(33
|
)
|
|
15
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|||||||||
Amortization of prior service cost (credit) 1
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(40
|
)
|
|
(36
|
)
|
|
(23
|
)
|
|||||||||
Actuarial loss (gain) 2
|
|
72
|
|
|
534
|
|
|
481
|
|
|
90
|
|
|
111
|
|
|
(195
|
)
|
|
306
|
|
|
(150
|
)
|
|
15
|
|
|||||||||
Net Periodic benefit cost (benefit) 3
|
|
$
|
65
|
|
|
$
|
385
|
|
|
$
|
396
|
|
|
$
|
109
|
|
|
$
|
42
|
|
|
$
|
(217
|
)
|
|
$
|
464
|
|
|
$
|
(12
|
)
|
|
$
|
163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Current year prior service cost (credit)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
20
|
|
|
$
|
3
|
|
|
$
|
8
|
|
|
$
|
(20
|
)
|
|
$
|
(77
|
)
|
Amortization of prior service (cost) credit 1
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
40
|
|
|
36
|
|
|
23
|
|
|||||||||
Total recognized in other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
20
|
|
|
5
|
|
|
48
|
|
|
16
|
|
|
(54
|
)
|
|||||||||
Total recognized in net periodic cost and other comprehensive income
|
|
$
|
65
|
|
|
$
|
385
|
|
|
$
|
396
|
|
|
$
|
105
|
|
|
$
|
62
|
|
|
$
|
(212
|
)
|
|
$
|
512
|
|
|
$
|
4
|
|
|
$
|
109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Discount rate used to measure service cost
|
|
4.3
|
%
|
|
3.7
|
%
|
|
4.2
|
%
|
|
2.5
|
%
|
|
2.3
|
%
|
|
2.4
|
%
|
|
4.1
|
%
|
|
3.5
|
%
|
|
3.9
|
%
|
|||||||||
Discount rate used to measure interest cost
|
|
3.9
|
%
|
|
3.2
|
%
|
|
3.3
|
%
|
|
2.3
|
%
|
|
2.2
|
%
|
|
2.3
|
%
|
|
3.9
|
%
|
|
3.2
|
%
|
|
3.3
|
%
|
|||||||||
Expected rate of return on plan assets 4
|
|
5.9
|
%
|
|
6.3
|
%
|
|
6.7
|
%
|
|
3.8
|
%
|
|
5.2
|
%
|
|
5.9
|
%
|
|
7.2
|
%
|
|
7.5
|
%
|
|
7.5
|
%
|
|||||||||
Rate of compensation increase
|
|
4.0
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
3.0
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
4.1
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
1
|
The estimated amount of prior service cost (credit) that will be amortized from Accumulated other comprehensive income (loss) at December 31, 2019 into net periodic benefit cost (pre-tax) in 2020 is a credit of $38 million for Other Postretirement Benefits.
|
2
|
Actuarial loss (gain) represents the effects of actual results differing from our assumptions and the effects of changing assumptions. We recognize actuarial loss (gain) immediately through earnings upon the annual remeasurement in the fourth quarter, or on an interim basis as triggering events warrant remeasurement.
|
3
|
The service cost component is included in Operating costs and all other components are included in Other income (expense) in Statement 1.
|
4
|
The weighted-average rates for 2020 are 5.1 percent and 3.2 percent for U.S. and non-U.S. pension plans, respectively.
|
|
|
|
|
|
(Millions of dollars)
|
|
One-percentage-
point increase
|
|
One-percentage-
point decrease
|
||||
Effect on 2019 service and interest cost components of other postretirement benefit cost
|
|
$
|
13
|
|
|
$
|
(11
|
)
|
Effect on accumulated postretirement benefit obligation
|
|
$
|
158
|
|
|
$
|
(133
|
)
|
|
|
|
|
|
(Millions of dollars)
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Expected employer contributions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. Pension Benefits
|
|
$
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-U.S. Pension Benefits
|
|
$
|
105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other Postretirement Benefits
|
|
$
|
135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Expected benefit payments:
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
2025-
2029
|
|
Total
|
||||||||||||||
U.S. Pension Benefits
|
|
$
|
1,020
|
|
|
$
|
1,010
|
|
|
$
|
1,010
|
|
|
$
|
1,010
|
|
|
$
|
1,010
|
|
|
$
|
5,005
|
|
|
$
|
10,065
|
|
Non-U.S. Pension Benefits
|
|
$
|
280
|
|
|
$
|
175
|
|
|
$
|
180
|
|
|
$
|
185
|
|
|
$
|
190
|
|
|
$
|
1,055
|
|
|
$
|
2,065
|
|
Other Postretirement Benefits
|
|
$
|
290
|
|
|
$
|
285
|
|
|
$
|
280
|
|
|
$
|
275
|
|
|
$
|
270
|
|
|
$
|
1,340
|
|
|
$
|
2,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Expected Medicare Part D subsidy:
|
|
$
|
9
|
|
|
$
|
9
|
|
|
$
|
9
|
|
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
35
|
|
|
$
|
78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Equity securities are primarily based on valuations for identical instruments in active markets.
|
•
|
Fixed income securities are primarily based upon models that take into consideration such market-based factors as recent sales, risk-free yield curves and prices of similarly rated bonds.
|
•
|
Real estate is stated at the fund’s net asset value or at appraised value.
|
•
|
Cash, short-term instruments and other are based on the carrying amount, which approximates fair value, or the fund’s net asset value.
|
|
|
December 31, 2019
|
||||||||||||||||||
(Millions of dollars)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Measured at NAV
|
|
Total Assets at Fair Value
|
||||||||||
U.S. Pension
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. equities
|
|
$
|
2,578
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
133
|
|
|
$
|
2,734
|
|
Non-U.S. equities
|
|
2,068
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,068
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. corporate bonds
|
|
—
|
|
|
6,577
|
|
|
57
|
|
|
—
|
|
|
6,634
|
|
|||||
Non-U.S. corporate bonds
|
|
—
|
|
|
1,414
|
|
|
—
|
|
|
—
|
|
|
1,414
|
|
|||||
U.S. government bonds
|
|
—
|
|
|
2,220
|
|
|
—
|
|
|
—
|
|
|
2,220
|
|
|||||
U.S. governmental agency mortgage-backed securities
|
|
—
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
63
|
|
|||||
Non-U.S. government bonds
|
|
—
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
96
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, short-term instruments and other
|
|
230
|
|
|
10
|
|
|
—
|
|
|
515
|
|
|
755
|
|
|||||
Total U.S. pension assets
|
|
$
|
4,876
|
|
|
$
|
10,380
|
|
|
$
|
90
|
|
|
$
|
648
|
|
|
$
|
15,994
|
|
|
|
December 31, 2018
|
||||||||||||||||||
(Millions of dollars)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Measured at NAV
|
|
Total Assets at Fair Value
|
||||||||||
U.S. Pension
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. equities
|
|
$
|
1,971
|
|
|
$
|
—
|
|
|
$
|
35
|
|
|
$
|
155
|
|
|
$
|
2,161
|
|
Non-U.S. equities
|
|
1,279
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1,280
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. corporate bonds
|
|
—
|
|
|
6,371
|
|
|
61
|
|
|
52
|
|
|
6,484
|
|
|||||
Non-U.S. corporate bonds
|
|
—
|
|
|
1,332
|
|
|
—
|
|
|
—
|
|
|
1,332
|
|
|||||
U.S. government bonds
|
|
—
|
|
|
590
|
|
|
—
|
|
|
—
|
|
|
590
|
|
|||||
U.S. governmental agency mortgage-backed securities
|
|
—
|
|
|
384
|
|
|
—
|
|
|
—
|
|
|
384
|
|
|||||
Non-U.S. government bonds
|
|
—
|
|
|
79
|
|
|
—
|
|
|
—
|
|
|
79
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, short-term instruments and other
|
|
202
|
|
|
9
|
|
|
—
|
|
|
166
|
|
|
377
|
|
|||||
Total U.S. pension assets
|
|
$
|
3,452
|
|
|
$
|
8,765
|
|
|
$
|
107
|
|
|
$
|
373
|
|
|
$
|
12,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
||||||||||||||||||
(Millions of dollars)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Measured at NAV
|
|
Total Assets at Fair Value
|
||||||||||
Non-U.S. Pension
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. equities
|
|
$
|
58
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
58
|
|
Non-U.S. equities
|
|
346
|
|
|
29
|
|
|
—
|
|
|
65
|
|
|
440
|
|
|||||
Global equities 1
|
|
26
|
|
|
16
|
|
|
—
|
|
|
111
|
|
|
153
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. corporate bonds
|
|
—
|
|
|
253
|
|
|
—
|
|
|
—
|
|
|
253
|
|
|||||
Non-U.S. corporate bonds
|
|
—
|
|
|
808
|
|
|
—
|
|
|
7
|
|
|
815
|
|
|||||
U.S. government bonds
|
|
—
|
|
|
65
|
|
|
—
|
|
|
—
|
|
|
65
|
|
|||||
Non-U.S. government bonds
|
|
—
|
|
|
1,952
|
|
|
—
|
|
|
—
|
|
|
1,952
|
|
|||||
Global fixed income 1
|
|
—
|
|
|
182
|
|
|
—
|
|
|
208
|
|
|
390
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
|
—
|
|
|
211
|
|
|
—
|
|
|
—
|
|
|
211
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, short-term instruments and other 2
|
|
68
|
|
|
120
|
|
|
—
|
|
|
—
|
|
|
188
|
|
|||||
Total non-U.S. pension assets
|
|
$
|
498
|
|
|
$
|
3,636
|
|
|
$
|
—
|
|
|
$
|
391
|
|
|
$
|
4,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
||||||||||||||||||
(Millions of dollars)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Measured at NAV
|
|
Total Assets at Fair Value
|
||||||||||
Other Postretirement Benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. equities
|
|
$
|
119
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
119
|
|
Non-U.S. equities
|
|
56
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. corporate bonds
|
|
—
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|||||
Non-U.S. corporate bonds
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
U.S. government bonds
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||
U.S. governmental agency mortgage-backed securities
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|||||
Non-U.S. government bonds
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, short-term instruments and other
|
|
2
|
|
|
1
|
|
|
—
|
|
|
10
|
|
|
13
|
|
|||||
Total other postretirement benefit assets
|
|
$
|
177
|
|
|
$
|
68
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
255
|
|
|
|
December 31, 2018
|
||||||||||||||||||
(Millions of dollars)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Measured at NAV
|
|
Total Assets at Fair Value
|
||||||||||
Other Postretirement Benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. equities
|
|
$
|
151
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
152
|
|
Non-U.S. equities
|
|
64
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. corporate bonds
|
|
—
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|||||
Non-U.S. corporate bonds
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|||||
U.S. government bonds
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
U.S. governmental agency mortgage-backed securities
|
|
—
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|||||
Non-U.S. government bonds
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, short-term instruments and other
|
|
3
|
|
|
1
|
|
|
—
|
|
|
16
|
|
|
20
|
|
|||||
Total other postretirement benefit assets
|
|
$
|
218
|
|
|
$
|
94
|
|
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
328
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
|
Equities
|
|
Fixed Income
|
|
Real Estate
|
||||||
U.S. Pension
|
|
|
|
|
|
|
|
|
|
|||
Balance at December 31, 2017
|
|
$
|
20
|
|
|
$
|
60
|
|
|
$
|
10
|
|
Unrealized gains (losses)
|
|
(6
|
)
|
|
(12
|
)
|
|
—
|
|
|||
Realized gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Purchases, issuances and settlements, net
|
|
21
|
|
|
11
|
|
|
—
|
|
|||
Transfers in and/or out of Level 3
|
|
1
|
|
|
2
|
|
|
—
|
|
|||
Balance at December 31, 2018
|
|
$
|
36
|
|
|
$
|
61
|
|
|
$
|
10
|
|
Unrealized gains (losses)
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|||
Realized gains (losses)
|
|
7
|
|
|
—
|
|
|
—
|
|
|||
Purchases, issuances and settlements, net
|
|
(10
|
)
|
|
(4
|
)
|
|
—
|
|
|||
Transfers in and/or out of Level 3
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||
Balance at December 31, 2019
|
|
$
|
23
|
|
|
$
|
57
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
(Millions of dollars)
|
|
2019
|
|
2018
|
|
2017
|
||||||
U.S. plans
|
|
$
|
414
|
|
|
$
|
271
|
|
|
$
|
375
|
|
Non-U.S. plans
|
|
83
|
|
|
89
|
|
|
73
|
|
|||
|
|
$
|
497
|
|
|
$
|
360
|
|
|
$
|
448
|
|
|
|
|
|
|
|
|
13.
|
Short-term borrowings
|
|
|
December 31,
|
|||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
|
||||
Machinery, Energy & Transportation:
|
|
|
|
|
|
|
|
||
Notes payable to banks
|
|
$
|
5
|
|
|
$
|
—
|
|
|
|
|
5
|
|
|
—
|
|
|
||
Financial Products:
|
|
|
|
|
|
|
|
||
Notes payable to banks
|
|
605
|
|
|
526
|
|
|
||
Commercial paper
|
|
4,168
|
|
|
4,759
|
|
|
||
Demand notes
|
|
388
|
|
|
438
|
|
|
||
|
|
5,161
|
|
|
5,723
|
|
|
||
Total short-term borrowings
|
|
$
|
5,166
|
|
|
$
|
5,723
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|||||
|
|
2019
|
|
2018
|
|
||
Notes payable to banks
|
|
5.0
|
%
|
|
5.3
|
%
|
|
Commercial paper
|
|
1.3
|
%
|
|
2.0
|
%
|
|
Demand notes
|
|
1.7
|
%
|
|
2.2
|
%
|
|
|
|
|
|
|
|
14.
|
Long-term debt
|
|
|
|
December 31,
|
|
||||||
(Millions of dollars)
|
Effective Yield to Maturity 1
|
|
2019
|
|
2018
|
|
||||
Machinery, Energy & Transportation:
|
|
|
|
|
|
|
|
|
||
Notes—$1,250 million of 3.900% due 2021 2
|
4.01%
|
|
$
|
1,248
|
|
|
$
|
1,247
|
|
|
Notes—$759 million of 5.200% due 2041 2
|
5.27%
|
|
752
|
|
|
751
|
|
|
||
Debentures—$120 million of 9.375% due 2021
|
9.41%
|
|
120
|
|
|
120
|
|
|
||
Debentures—$500 million of 2.600% due 2022 2
|
2.70%
|
|
499
|
|
|
498
|
|
|
||
Debentures—$82 million of 8.000% due 2023
|
8.06%
|
|
82
|
|
|
82
|
|
|
||
Debentures—$1,000 million of 3.400% due 2024
|
3.46%
|
|
998
|
|
|
997
|
|
|
||
Debentures—$193 million of 6.625% due 2028 2
|
6.68%
|
|
192
|
|
|
192
|
|
|
||
Debentures—$500 million of 2.600% due 2029 2
|
2.64%
|
|
497
|
|
|
—
|
|
|
||
Debentures—$242 million of 7.300% due 2031 2
|
7.38%
|
|
240
|
|
|
240
|
|
|
||
Debentures—$307 million of 5.300% due 2035 2
|
8.64%
|
|
220
|
|
|
218
|
|
|
||
Debentures—$460 million of 6.050% due 2036 2
|
6.12%
|
|
456
|
|
|
456
|
|
|
||
Debentures—$65 million of 8.250% due 2038 2
|
8.38%
|
|
64
|
|
|
64
|
|
|
||
Debentures—$160 million of 6.950% due 2042 2
|
7.02%
|
|
158
|
|
|
158
|
|
|
||
Debentures—$1,722 million of 3.803% due 2042 2
|
6.39%
|
|
1,277
|
|
|
1,257
|
|
|
||
Debentures—$500 million of 4.300% due 2044
|
4.39%
|
|
493
|
|
|
493
|
|
|
||
Debentures—$1,000 million of 3.250% due 2049 2
|
3.37%
|
|
982
|
|
|
—
|
|
|
||
Debentures—$500 million of 4.750% due 2064
|
4.81%
|
|
494
|
|
|
494
|
|
|
||
Debentures—$246 million of 7.375% due 2097 2
|
7.51%
|
|
241
|
|
|
241
|
|
|
||
Finance lease obligations & other 3
|
|
|
128
|
|
|
497
|
|
|
||
Total Machinery, Energy & Transportation
|
|
|
9,141
|
|
|
8,005
|
|
|
||
Financial Products:
|
|
|
|
|
|
|
|
|
||
Medium-term notes
|
|
|
16,719
|
|
|
16,592
|
|
|
||
Other
|
|
|
421
|
|
|
403
|
|
|
||
Total Financial Products
|
|
|
17,140
|
|
|
16,995
|
|
|
||
Total long-term debt due after one year
|
|
|
$
|
26,281
|
|
|
$
|
25,000
|
|
|
1
|
Effective yield to maturity includes the impact of discounts, premiums and debt issuance costs.
|
2
|
Redeemable at our option in whole or in part at any time at a redemption price equal to the greater of (i) 100% of the principal amount or (ii) the discounted present value of the notes or debentures, calculated in accordance with the terms of such notes or debentures.
|
3
|
2018 includes $360 million related to a financing transaction in Japan entered into in 2017 that was removed in 2019 due to the new lease accounting guidance adopted January 1, 2019. See Note 1J for additional information.
|
|
|
|
|
|
|
|
December 31,
|
||||||||||||||||||
(Millions of dollars)
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
||||||||||
Machinery, Energy & Transportation
|
|
$
|
16
|
|
|
$
|
1,403
|
|
|
$
|
513
|
|
|
$
|
93
|
|
|
$
|
1,007
|
|
Financial Products
|
|
6,194
|
|
|
7,732
|
|
|
4,744
|
|
|
2,167
|
|
|
2,157
|
|
|||||
|
|
$
|
6,210
|
|
|
$
|
9,135
|
|
|
$
|
5,257
|
|
|
$
|
2,260
|
|
|
$
|
3,164
|
|
|
|
|
|
|
|
|
|
|
|
|
15.
|
Credit commitments
|
|
|
December 31, 2019
|
||||||||||
(Millions of dollars)
|
|
Consolidated
|
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
||||||
Credit lines available:
|
|
|
|
|
|
|
|
|
|
|||
Global credit facilities
|
|
$
|
10,500
|
|
|
$
|
2,751
|
|
|
$
|
7,749
|
|
Other external
|
|
4,999
|
|
|
194
|
|
|
4,805
|
|
|||
Total credit lines available
|
|
15,499
|
|
|
2,945
|
|
|
12,554
|
|
|||
Less: Commercial paper outstanding
|
|
(4,168
|
)
|
|
—
|
|
|
(4,168
|
)
|
|||
Less: Utilized credit
|
|
(1,247
|
)
|
|
—
|
|
|
(1,247
|
)
|
|||
Available credit
|
|
$
|
10,084
|
|
|
$
|
2,945
|
|
|
$
|
7,139
|
|
|
|
|
|
|
|
|
•
|
The 364-day facility of $3.15 billion (of which $0.82 billion is available to ME&T) expires in September 2020.
|
•
|
The three-year facility, as amended and restated in September 2019, of $2.73 billion (of which $0.72 billion is available to ME&T) expires in September 2022.
|
•
|
The five-year facility, as amended and restated in September 2019, of $4.62 billion (of which $1.21 billion is available to ME&T) expires in September 2024.
|
16.
|
Profit per share
|
1
|
Profit attributable to common shareholders.
|
2
|
Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
|
|
|
|
|
|
17.
|
Accumulated other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Millions of dollars)
|
|
Foreign currency translation
|
|
Pension and other postretirement benefits
|
|
Derivative financial instruments
|
|
Available-for-sale securities
|
|
Total
|
||||||||||
Balance at December 31, 2016
|
|
$
|
(1,970
|
)
|
|
$
|
14
|
|
|
$
|
(115
|
)
|
|
$
|
32
|
|
|
$
|
(2,039
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
752
|
|
|
48
|
|
|
(3
|
)
|
|
41
|
|
|
838
|
|
|||||
Amounts reclassified from accumulated other comprehensive (income) loss
|
|
13
|
|
|
(16
|
)
|
|
77
|
|
|
(65
|
)
|
|
9
|
|
|||||
Other comprehensive income (loss)
|
|
765
|
|
|
32
|
|
|
74
|
|
|
(24
|
)
|
|
847
|
|
|||||
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
|
|
(397
|
)
|
|
(6
|
)
|
|
61
|
|
|
(12
|
)
|
|
(354
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive (income) loss
|
|
1
|
|
|
(28
|
)
|
|
(100
|
)
|
|
—
|
|
|
(127
|
)
|
|||||
Other comprehensive income (loss)
|
|
(396
|
)
|
|
(34
|
)
|
|
(39
|
)
|
|
(12
|
)
|
|
(481
|
)
|
|||||
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
|
|
16
|
|
|
(4
|
)
|
|
43
|
|
|
35
|
|
|
90
|
|
|||||
Amounts reclassified from accumulated other comprehensive (income) loss
|
|
—
|
|
|
(30
|
)
|
|
(51
|
)
|
|
—
|
|
|
(81
|
)
|
|||||
Other comprehensive income (loss)
|
|
16
|
|
|
(34
|
)
|
|
(8
|
)
|
|
35
|
|
|
9
|
|
|||||
Balance at December 31, 2019
|
|
$
|
(1,487
|
)
|
|
$
|
(3
|
)
|
|
$
|
(97
|
)
|
|
$
|
20
|
|
|
$
|
(1,567
|
)
|
|
|
|
|
|
|
|
|
|
|
18.
|
Fair value disclosures
|
A.
|
Fair value measurements
|
•
|
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.
|
|
|
December 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
|
|
—
|
|
|
54
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate bonds
|
|
—
|
|
|
856
|
|
|
—
|
|
|
—
|
|
|
856
|
|
|||||
Asset-backed securities
|
|
—
|
|
|
62
|
|
|
—
|
|
|
—
|
|
|
62
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage-backed debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
U.S. governmental agency
|
|
—
|
|
|
331
|
|
|
—
|
|
|
—
|
|
|
331
|
|
|||||
Residential
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Commercial
|
|
—
|
|
|
47
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|||||
Total debt securities
|
|
9
|
|
|
1,356
|
|
|
—
|
|
|
—
|
|
|
1,365
|
|
|||||
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Large capitalization value
|
|
187
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
187
|
|
|||||
Smaller company growth
|
|
29
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
33
|
|
|||||
REIT
|
|
—
|
|
|
—
|
|
|
—
|
|
|
126
|
|
|
126
|
|
|||||
Total equity securities
|
|
216
|
|
|
—
|
|
|
4
|
|
|
126
|
|
|
346
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative financial instruments, net
|
|
—
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|||||
Total Assets
|
|
$
|
225
|
|
|
$
|
1,401
|
|
|
$
|
4
|
|
|
$
|
126
|
|
|
$
|
1,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
B.
|
Fair values of financial instruments
|
TABLE III—Fair Values of Financial Instruments
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
|
|
|
|
||||||||||||
(Millions of dollars)
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Fair Value Levels
|
|
Reference
|
||||||||
Assets at December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and short-term investments
|
|
$
|
8,284
|
|
|
$
|
8,284
|
|
|
$
|
7,857
|
|
|
$
|
7,857
|
|
|
1
|
|
Statement 3
|
Restricted cash and short-term investments
|
|
8
|
|
|
8
|
|
|
33
|
|
|
33
|
|
|
1
|
|
Statement 3
|
||||
Investments in debt and equity securities
|
|
1,711
|
|
|
1,711
|
|
|
1,576
|
|
|
1,576
|
|
|
1, 2 & 3
|
|
Notes 11 & 19
|
||||
Finance receivables–net (excluding finance leases 1)
|
|
14,473
|
|
|
14,613
|
|
|
14,714
|
|
|
14,798
|
|
|
3
|
|
Notes 7 & 19
|
||||
Wholesale inventory receivables–net (excluding finance leases 1)
|
|
1,105
|
|
|
1,076
|
|
|
1,050
|
|
|
1,025
|
|
|
3
|
|
Notes 7 & 19
|
||||
Foreign currency contracts–net
|
|
62
|
|
|
62
|
|
|
47
|
|
|
47
|
|
|
2
|
|
Notes 4 & 19
|
||||
Commodity contracts–net
|
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
2
|
|
Notes 4 & 19
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities at December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Short-term borrowings
|
|
5,166
|
|
|
5,166
|
|
|
5,723
|
|
|
5,723
|
|
|
1
|
|
Note 13
|
||||
Long-term debt (including amounts due within one year):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Machinery, Energy & Transportation
|
|
9,157
|
|
|
11,216
|
|
|
8,015
|
|
|
9,046
|
|
|
2
|
|
Note 14
|
||||
Financial Products
|
|
23,334
|
|
|
23,655
|
|
|
22,815
|
|
|
22,684
|
|
|
2
|
|
Note 14
|
||||
Interest rate swaps–net
|
|
20
|
|
|
20
|
|
|
36
|
|
|
36
|
|
|
2
|
|
Notes 4 & 19
|
||||
Commodity contracts–net
|
|
—
|
|
|
—
|
|
|
30
|
|
|
30
|
|
|
2
|
|
Notes 4 & 19
|
||||
Guarantees
|
|
5
|
|
|
5
|
|
|
8
|
|
|
8
|
|
|
3
|
|
Note 21
|
1
|
Represents finance leases and failed sale leasebacks of $7,800 million at December 31, 2019 and finance leases of $7,463 million at December 31, 2018, respectively.
|
|
|
|
|
|
19.
|
Concentration of credit risk
|
20.
|
Leases
|
|
|
|
||
(Millions of dollars)
|
|
|
||
|
|
Year ended December 31
|
||
|
|
2019
|
||
Operating lease cost
|
|
$
|
232
|
|
Short-term lease cost
|
|
$
|
57
|
|
|
|
|
|
|
|
|
|
||||
(Millions of dollars)
|
|
|
|
|
||||
|
|
December 31, 2019
|
|
January 1, 2019
|
||||
Operating Leases
|
|
|
|
|
||||
Other assets
|
|
$
|
624
|
|
|
$
|
713
|
|
Other current liabilities
|
|
$
|
173
|
|
|
$
|
209
|
|
Other liabilities
|
|
$
|
461
|
|
|
$
|
511
|
|
|
|
|
|
|
||||
Weighted average remaining lease term
|
|
|
|
|
||||
Operating leases
|
|
7 years
|
|
|
7 years
|
|
||
|
|
|
|
|
||||
Weighted average discount rates
|
|
|
|
|
||||
Operating leases
|
|
2
|
%
|
|
2
|
%
|
||
|
|
|
|
|
|
|
|
||
(Millions of dollars)
|
|
December 31, 2019
|
||
Amounts Due In
|
|
|
||
2020
|
|
$
|
185
|
|
2021
|
|
139
|
|
|
2022
|
|
86
|
|
|
2023
|
|
64
|
|
|
2024
|
|
46
|
|
|
Thereafter
|
|
175
|
|
|
Total lease payments
|
|
695
|
|
|
Less: Imputed interest
|
|
(61
|
)
|
|
Total
|
|
$
|
634
|
|
|
|
|
||
|
|
|
||
|
|
December 31, 2018
|
||
Amounts Due In
|
|
|
||
2019
|
|
$
|
205
|
|
2020
|
|
154
|
|
|
2021
|
|
111
|
|
|
2022
|
|
67
|
|
|
2023
|
|
50
|
|
|
Thereafter
|
|
185
|
|
|
Total
|
|
$
|
772
|
|
|
|
|
|
|
|
|
|
||||
|
|
December 31,
|
||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
||||
Equipment leased to others - at original cost
|
|
$
|
6,208
|
|
|
$
|
6,015
|
|
Less: Accumulated depreciation
|
|
(1,960
|
)
|
|
(1,744
|
)
|
||
Equipment leased to others - net
|
|
$
|
4,248
|
|
|
$
|
4,271
|
|
|
|
|
|
|
|
|
|
|
||
(Millions of dollars)
|
|
|
|
||
|
|
|
Year ended December 31
|
||
|
|
2019
|
|||
Finance lease revenue
|
|
|
$
|
521
|
|
Operating lease revenue
|
|
|
1,248
|
|
|
Total
|
|
|
$
|
1,769
|
|
|
|
|
|
21.
|
Guarantees and product warranty
|
(Millions of dollars)
|
|
2019
|
|
2018
|
||||
Caterpillar dealer performance guarantees
|
|
$
|
1,150
|
|
|
$
|
1,244
|
|
Supplier consortium performance guarantees
|
|
238
|
|
|
527
|
|
||
Other guarantees
|
|
221
|
|
|
207
|
|
||
Total guarantees
|
|
$
|
1,609
|
|
|
$
|
1,978
|
|
|
|
|
|
|
(Millions of dollars)
|
|
2019
|
|
2018
|
|
||||
Warranty liability, January 1
|
|
$
|
1,391
|
|
|
$
|
1,419
|
|
|
Reduction in liability (payments)
|
|
(903
|
)
|
|
(783
|
)
|
|
||
Increase in liability (new warranties)
|
|
1,053
|
|
|
755
|
|
|
||
Warranty liability, December 31
|
|
$
|
1,541
|
|
|
$
|
1,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22.
|
Environmental and legal matters
|
23.
|
Segment information
|
A.
|
Basis for segment information
|
•
|
ME&T 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 ME&T 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 ME&T 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.
|
•
|
ME&T 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 140, has been included to illustrate how segment profit would have been impacted by the restructuring costs. See Note 25 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.
|
Segment Information
|
||||||||||||||||||||||||||||
(Millions of dollars)
|
||||||||||||||||||||||||||||
Reportable Segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
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
|
||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction Industries
|
|
$
|
22,556
|
|
|
$
|
93
|
|
|
$
|
22,649
|
|
|
$
|
331
|
|
|
$
|
3,931
|
|
|
$
|
5,219
|
|
|
$
|
201
|
|
Resource Industries
|
|
9,813
|
|
|
463
|
|
|
10,276
|
|
|
425
|
|
|
1,629
|
|
|
6,214
|
|
|
168
|
|
|||||||
Energy & Transportation
|
|
18,485
|
|
|
3,612
|
|
|
22,097
|
|
|
628
|
|
|
3,910
|
|
|
8,612
|
|
|
613
|
|
|||||||
Machinery, Energy & Transportation
|
|
$
|
50,854
|
|
|
$
|
4,168
|
|
|
$
|
55,022
|
|
|
$
|
1,384
|
|
|
$
|
9,470
|
|
|
$
|
20,045
|
|
|
$
|
982
|
|
Financial Products Segment
|
|
3,434
|
|
1
|
—
|
|
|
3,434
|
|
|
829
|
|
|
832
|
|
|
35,813
|
|
|
1,534
|
|
|||||||
Total
|
|
$
|
54,288
|
|
|
$
|
4,168
|
|
|
$
|
58,456
|
|
|
$
|
2,213
|
|
|
$
|
10,302
|
|
|
$
|
55,858
|
|
|
$
|
2,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction Industries
|
|
$
|
23,116
|
|
|
$
|
121
|
|
|
$
|
23,237
|
|
|
$
|
367
|
|
|
$
|
4,174
|
|
|
$
|
4,902
|
|
|
$
|
266
|
|
Resource Industries
|
|
9,888
|
|
|
382
|
|
|
10,270
|
|
|
462
|
|
|
1,603
|
|
|
6,442
|
|
|
188
|
|
|||||||
Energy & Transportation
|
|
18,832
|
|
|
3,953
|
|
|
22,785
|
|
|
640
|
|
|
3,938
|
|
|
8,386
|
|
|
742
|
|
|||||||
Machinery, Energy & Transportation
|
|
$
|
51,836
|
|
|
$
|
4,456
|
|
|
$
|
56,292
|
|
|
$
|
1,469
|
|
|
$
|
9,715
|
|
|
$
|
19,730
|
|
|
$
|
1,196
|
|
Financial Products Segment
|
|
3,279
|
|
1
|
—
|
|
|
3,279
|
|
|
834
|
|
|
505
|
|
|
36,002
|
|
|
1,559
|
|
|||||||
Total
|
|
$
|
55,115
|
|
|
$
|
4,456
|
|
|
$
|
59,571
|
|
|
$
|
2,303
|
|
|
$
|
10,220
|
|
|
$
|
55,732
|
|
|
$
|
2,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction Industries
|
|
$
|
19,133
|
|
|
$
|
107
|
|
|
$
|
19,240
|
|
|
$
|
400
|
|
|
$
|
3,255
|
|
|
$
|
4,838
|
|
|
$
|
228
|
|
Resource Industries
|
|
7,504
|
|
|
357
|
|
|
7,861
|
|
|
514
|
|
|
698
|
|
|
6,403
|
|
|
183
|
|
|||||||
Energy & Transportation
|
|
15,964
|
|
|
3,418
|
|
|
19,382
|
|
|
653
|
|
|
2,856
|
|
|
7,564
|
|
|
527
|
|
|||||||
Machinery, Energy & Transportation
|
|
$
|
42,601
|
|
|
$
|
3,882
|
|
|
$
|
46,483
|
|
|
$
|
1,567
|
|
|
$
|
6,809
|
|
|
$
|
18,805
|
|
|
$
|
938
|
|
Financial Products Segment
|
|
3,093
|
|
1
|
—
|
|
|
3,093
|
|
|
820
|
|
|
792
|
|
|
34,893
|
|
|
1,373
|
|
|||||||
Total
|
|
$
|
45,694
|
|
|
$
|
3,882
|
|
|
$
|
49,576
|
|
|
$
|
2,387
|
|
|
$
|
7,601
|
|
|
$
|
53,698
|
|
|
$
|
2,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Revenues by Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Millions of dollars)
|
|
North
America |
|
Latin
America |
|
EAME
|
|
Asia/
Pacific |
|
External Sales and Revenues
|
|
||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction Industries
|
|
$
|
11,455
|
|
|
$
|
1,533
|
|
|
$
|
4,012
|
|
|
$
|
5,556
|
|
|
$
|
22,556
|
|
|
Resource Industries
|
|
3,632
|
|
|
1,533
|
|
|
1,836
|
|
|
2,812
|
|
|
$
|
9,813
|
|
|
||||
Energy & Transportation
|
|
8,864
|
|
|
1,389
|
|
|
4,994
|
|
|
3,238
|
|
|
$
|
18,485
|
|
|
||||
All Other operating segment
|
|
25
|
|
|
7
|
|
|
28
|
|
|
67
|
|
|
$
|
127
|
|
|
||||
Corporate Items and Eliminations
|
|
(192
|
)
|
|
—
|
|
|
(20
|
)
|
|
(14
|
)
|
|
(226
|
)
|
|
|||||
Machinery, Energy & Transportation Sales
|
|
23,784
|
|
|
4,462
|
|
|
10,850
|
|
|
11,659
|
|
|
$
|
50,755
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Products Segment
|
|
2,235
|
|
|
299
|
|
|
408
|
|
|
492
|
|
|
3,434
|
|
1
|
|||||
Corporate Items and Eliminations
|
|
(234
|
)
|
|
(51
|
)
|
|
(35
|
)
|
|
(69
|
)
|
|
(389
|
)
|
|
|||||
Financial Products Revenues
|
|
2,001
|
|
|
248
|
|
|
373
|
|
|
423
|
|
|
3,045
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Sales and Revenues
|
|
$
|
25,785
|
|
|
$
|
4,710
|
|
|
$
|
11,223
|
|
|
$
|
12,082
|
|
|
$
|
53,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America |
|
Latin
America |
|
EAME
|
|
Asia/
Pacific |
|
External Sales and Revenues
|
|
||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction Industries
|
|
$
|
10,754
|
|
|
$
|
1,479
|
|
|
$
|
4,410
|
|
|
$
|
6,473
|
|
|
$
|
23,116
|
|
|
Resource Industries
|
|
3,357
|
|
|
1,647
|
|
|
2,217
|
|
|
2,667
|
|
|
$
|
9,888
|
|
|
||||
Energy & Transportation
|
|
9,685
|
|
|
1,331
|
|
|
4,934
|
|
|
2,882
|
|
|
$
|
18,832
|
|
|
||||
All Other operating segment
|
|
63
|
|
|
3
|
|
|
18
|
|
|
70
|
|
|
$
|
154
|
|
|
||||
Corporate Items and Eliminations
|
|
(155
|
)
|
|
—
|
|
|
(11
|
)
|
|
(2
|
)
|
|
(168
|
)
|
|
|||||
Machinery, Energy & Transportation Sales
|
|
23,704
|
|
|
4,460
|
|
|
11,568
|
|
|
12,090
|
|
|
$
|
51,822
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Products Segment
|
|
2,153
|
|
|
281
|
|
|
387
|
|
|
458
|
|
|
3,279
|
|
1
|
|||||
Corporate Items and Eliminations
|
|
(234
|
)
|
|
(46
|
)
|
|
(26
|
)
|
|
(73
|
)
|
|
(379
|
)
|
|
|||||
Financial Products Revenues
|
|
1,919
|
|
|
235
|
|
|
361
|
|
|
385
|
|
|
2,900
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Sales and Revenues
|
|
$
|
25,623
|
|
|
$
|
4,695
|
|
|
$
|
11,929
|
|
|
$
|
12,475
|
|
|
$
|
54,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Elimination of Financial Products revenues from ME&T.
|
|
|
|
|
|
Energy & Transportation External Sales
|
|
|
||||
(Millions of dollars)
|
2019
|
2018
|
||||
Oil and gas
|
$
|
5,205
|
|
$
|
5,763
|
|
Power generation
|
4,474
|
|
4,334
|
|
||
Industrial
|
3,749
|
|
3,640
|
|
||
Transportation
|
5,057
|
|
5,095
|
|
||
Energy & Transportation External Sales
|
$
|
18,485
|
|
$
|
18,832
|
|
|
|
|
Reconciliation of Assets:
|
|
|
|
|
|
|
|
|
||||||||
(Millions of dollars)
|
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total assets from reportable segments
|
|
$
|
20,045
|
|
|
$
|
35,813
|
|
|
$
|
—
|
|
|
$
|
55,858
|
|
All Other operating segment
|
|
1,337
|
|
|
—
|
|
|
—
|
|
|
1,337
|
|
||||
Items not included in segment assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and short-term investments
|
|
7,299
|
|
|
—
|
|
|
—
|
|
|
7,299
|
|
||||
Intercompany receivables
|
|
758
|
|
|
—
|
|
|
(758
|
)
|
|
—
|
|
||||
Investment in Financial Products
|
|
4,260
|
|
|
—
|
|
|
(4,260
|
)
|
|
—
|
|
||||
Deferred income taxes
|
|
2,002
|
|
|
—
|
|
|
(708
|
)
|
|
1,294
|
|
||||
Goodwill and intangible assets
|
|
4,435
|
|
|
—
|
|
|
—
|
|
|
4,435
|
|
||||
Property, plant and equipment – net and other assets
|
|
2,529
|
|
|
—
|
|
|
—
|
|
|
2,529
|
|
||||
Inventory methodology differences
|
|
(2,426
|
)
|
|
—
|
|
|
—
|
|
|
(2,426
|
)
|
||||
Liabilities included in segment assets
|
|
8,541
|
|
|
—
|
|
|
—
|
|
|
8,541
|
|
||||
Other
|
|
(343
|
)
|
|
134
|
|
|
(205
|
)
|
|
(414
|
)
|
||||
Total assets
|
|
$
|
48,437
|
|
|
$
|
35,947
|
|
|
$
|
(5,931
|
)
|
|
$
|
78,453
|
|
|
|
|
|
|
|
|
|
|
||||||||
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
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Depreciation and amortization:
|
|
|
|
|
|
|
||||||
(Millions of dollars)
|
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidated
Total
|
||||||
2019
|
|
|
|
|
|
|
|
|
|
|||
Total depreciation and amortization from reportable segments
|
|
$
|
1,384
|
|
|
$
|
829
|
|
|
$
|
2,213
|
|
Items not included in segment depreciation and amortization:
|
|
|
|
|
|
|
|
|
|
|||
All Other operating segment
|
|
210
|
|
|
—
|
|
|
210
|
|
|||
Cost centers
|
|
136
|
|
|
—
|
|
|
136
|
|
|||
Other
|
|
(17
|
)
|
|
35
|
|
|
18
|
|
|||
Total depreciation and amortization
|
|
$
|
1,713
|
|
|
$
|
864
|
|
|
$
|
2,577
|
|
|
|
|
|
|
|
|
||||||
2018
|
|
|
|
|
|
|
|
|
|
|||
Total depreciation and amortization from reportable segments
|
|
$
|
1,469
|
|
|
$
|
834
|
|
|
$
|
2,303
|
|
Items not included in segment depreciation and amortization:
|
|
|
|
|
|
|
|
|
|
|||
All Other operating segment
|
|
225
|
|
|
—
|
|
|
225
|
|
|||
Cost centers
|
|
130
|
|
|
—
|
|
|
130
|
|
|||
Other
|
|
71
|
|
|
37
|
|
|
108
|
|
|||
Total depreciation and amortization
|
|
$
|
1,895
|
|
|
$
|
871
|
|
|
$
|
2,766
|
|
|
|
|
|
|
|
|
||||||
2017
|
|
|
|
|
|
|
|
|
|
|||
Total depreciation and amortization from reportable segments
|
|
$
|
1,567
|
|
|
$
|
820
|
|
|
$
|
2,387
|
|
Items not included in segment depreciation and amortization:
|
|
|
|
|
|
|
|
|
|
|||
All Other operating segment
|
|
220
|
|
|
—
|
|
|
220
|
|
|||
Cost centers
|
|
143
|
|
|
—
|
|
|
143
|
|
|||
Other
|
|
86
|
|
|
41
|
|
|
127
|
|
|||
Total depreciation and amortization
|
|
$
|
2,016
|
|
|
$
|
861
|
|
|
$
|
2,877
|
|
|
|
|
|
|
|
|
Reconciliation of Capital expenditures:
|
|
|
|
|
|
|
|
|
||||||||
(Millions of dollars)
|
|
Machinery,
Energy &
Transportation
|
|
Financial
Products
|
|
Consolidating
Adjustments
|
|
Consolidated
Total
|
||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total capital expenditures from reportable segments
|
|
$
|
982
|
|
|
$
|
1,534
|
|
|
$
|
—
|
|
|
$
|
2,516
|
|
Items not included in segment capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
All Other operating segment
|
|
131
|
|
|
—
|
|
|
—
|
|
|
131
|
|
||||
Cost centers
|
|
101
|
|
|
—
|
|
|
—
|
|
|
101
|
|
||||
Timing
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
||||
Other
|
|
(129
|
)
|
|
102
|
|
|
(41
|
)
|
|
(68
|
)
|
||||
Total capital expenditures
|
|
$
|
1,074
|
|
|
$
|
1,636
|
|
|
$
|
(41
|
)
|
|
$
|
2,669
|
|
|
|
|
|
|
|
|
|
|
||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total capital expenditures from reportable segments
|
|
$
|
1,196
|
|
|
$
|
1,559
|
|
|
$
|
—
|
|
|
$
|
2,755
|
|
Items not included in segment capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
All Other operating segment
|
|
170
|
|
|
—
|
|
|
—
|
|
|
170
|
|
||||
Cost centers
|
|
100
|
|
|
—
|
|
|
—
|
|
|
100
|
|
||||
Timing
|
|
42
|
|
|
—
|
|
|
—
|
|
|
42
|
|
||||
Other
|
|
(287
|
)
|
|
216
|
|
|
(80
|
)
|
|
(151
|
)
|
||||
Total capital expenditures
|
|
$
|
1,221
|
|
|
$
|
1,775
|
|
|
$
|
(80
|
)
|
|
$
|
2,916
|
|
|
|
|
|
|
|
|
|
|
||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total capital expenditures from reportable segments
|
|
$
|
938
|
|
|
$
|
1,373
|
|
|
$
|
—
|
|
|
$
|
2,311
|
|
Items not included in segment capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
All Other operating segment
|
|
134
|
|
|
—
|
|
|
—
|
|
|
134
|
|
||||
Cost centers
|
|
84
|
|
|
—
|
|
|
—
|
|
|
84
|
|
||||
Timing
|
|
(96
|
)
|
|
—
|
|
|
—
|
|
|
(96
|
)
|
||||
Other
|
|
(144
|
)
|
|
80
|
|
|
(33
|
)
|
|
(97
|
)
|
||||
Total capital expenditures
|
|
$
|
916
|
|
|
$
|
1,453
|
|
|
$
|
(33
|
)
|
|
$
|
2,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment - net
|
||||||||||||
|
|
External sales and revenues 1
|
|
December 31,
|
||||||||||||||||
(Millions of dollars)
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
||||||||||
Inside United States
|
|
$
|
22,806
|
|
|
$
|
22,690
|
|
|
$
|
18,552
|
|
|
$
|
7,568
|
|
|
$
|
8,152
|
|
Outside United States
|
|
30,994
|
|
|
32,032
|
|
|
26,910
|
|
|
5,336
|
|
|
5,422
|
|
|||||
Total
|
|
$
|
53,800
|
|
|
$
|
54,722
|
|
|
$
|
45,462
|
|
|
$
|
12,904
|
|
|
$
|
13,574
|
|
|
|
|
|
|
24.
|
Acquisitions
|
(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)
|
48
|
|
|
Reduction in liability (payments)
|
(85
|
)
|
|
Liability balance at December 31, 2019
|
$
|
48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
2019 Quarter
|
|
||||||||||||||
(Dollars in millions except per share data)
|
|
1st
|
|
2nd
|
|
3rd
|
|
4th
|
|
||||||||
Sales and revenues
|
|
$
|
13,466
|
|
|
$
|
14,432
|
|
|
$
|
12,758
|
|
|
$
|
13,144
|
|
|
Less: Revenues
|
|
(742
|
)
|
|
(761
|
)
|
|
(784
|
)
|
|
(758
|
)
|
|
||||
Sales
|
|
12,724
|
|
|
13,671
|
|
|
11,974
|
|
|
12,386
|
|
|
||||
Cost of goods sold
|
|
9,003
|
|
|
9,941
|
|
|
8,569
|
|
|
9,117
|
|
|
||||
Gross margin
|
|
3,721
|
|
|
3,730
|
|
|
3,405
|
|
|
3,269
|
|
|
||||
Profit 1
|
|
$
|
1,881
|
|
3
|
$
|
1,620
|
|
|
$
|
1,494
|
|
|
$
|
1,098
|
|
5
|
Profit per common share
|
|
$
|
3.29
|
|
|
$
|
2.85
|
|
|
$
|
2.69
|
|
|
$
|
2.00
|
|
|
Profit per common share–diluted 2
|
|
$
|
3.25
|
|
|
$
|
2.83
|
|
|
$
|
2.66
|
|
|
$
|
1.97
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
2018 Quarter
|
|
||||||||||||||
(Dollars in millions except per share data)
|
|
1st
|
|
2nd
|
|
3rd
|
|
4th
|
|
||||||||
Sales and revenues
|
|
$
|
12,859
|
|
|
$
|
14,011
|
|
|
$
|
13,510
|
|
|
$
|
14,342
|
|
|
Less: Revenues
|
|
(709
|
)
|
|
(732
|
)
|
|
(747
|
)
|
|
(712
|
)
|
|
||||
Sales
|
|
12,150
|
|
|
13,279
|
|
|
12,763
|
|
|
13,630
|
|
|
||||
Cost of goods sold
|
|
8,566
|
|
|
9,422
|
|
|
9,022
|
|
|
9,987
|
|
|
||||
Gross margin
|
|
3,584
|
|
|
3,857
|
|
|
3,741
|
|
|
3,643
|
|
|
||||
Profit 1
|
|
$
|
1,665
|
|
|
$
|
1,707
|
|
|
$
|
1,727
|
|
4
|
$
|
1,048
|
|
3,5,6
|
Profit per common share
|
|
$
|
2.78
|
|
|
$
|
2.86
|
|
|
$
|
2.92
|
|
|
$
|
1.80
|
|
|
Profit per common share–diluted 2
|
|
$
|
2.74
|
|
|
$
|
2.82
|
|
|
$
|
2.88
|
|
|
$
|
1.78
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Profit attributable to common shareholders.
|
2
|
Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
|
3
|
The first quarter of 2019 includes a benefit of $178 million to adjust unrecognized tax benefits due to the receipt of final regulations providing additional guidance related to the calculation of the mandatory deemed repatriation of non-U.S. earnings due to U.S. tax reform. The fourth quarter of 2018 includes a charge of $50 million due to an estimated increase in the mandatory deemed repatriation of non-U.S. earnings.
|
4
|
The third quarter of 2018 includes a benefit of $154 million due to the revised estimated impact of the write-down of U.S. net deferred tax assets to reflect the reduction in the U.S. corporate tax rate from 35 percent to 21 percent. The third quarter of 2018 also includes a charge of $59 million to increase the valuation allowance against deferred tax assets for prior years. See Note 6 for additional details.
|
5
|
The fourth quarter of 2019 and fourth quarter of 2018 include pre-tax pension and other postretirement benefit plan actuarial losses of $468 million and $495 million, respectively. See Note 12 for additional information on these costs.
|
6
|
The fourth quarter of 2018 includes a benefit of $63 million from reductions in the valuation allowance against U.S. state deferred tax assets. See Note 6 for additional information.
|
|
|
|
|
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
|
Item 9A.
|
Controls and Procedures.
|
Item 9B.
|
Other Information.
|
Item 10.
|
Directors, Executive Officers and Corporate Governance.
|
Item 11.
|
Executive Compensation.
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
|
Plan category
|
|
(a)
Number of securities to be issued upon exercise of outstanding options, warrants and rights
|
|
(b)
Weighted-
average
exercise
price of outstanding options, warrants and rights
|
|
(c)
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
|
|||
Equity compensation plans approved by security holders
|
|
17,467,057
|
|
|
$
|
99.29
|
|
|
40,754,720
|
Equity compensation plans not approved by security holders
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Total
|
|
17,467,057
|
|
|
$
|
99.29
|
|
|
40,754,720
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence.
|
Item 14.
|
Principal Accountant Fees and Services.
|
|
Exhibits:
|
|
|
3.1
|
|
|
3.2
|
|
|
4.1
|
|
|
4.2
|
|
|
4.3
|
|
|
4.4
|
|
|
4.5
|
|
|
4.6
|
|
|
4.7
|
|
|
4.8
|
|
|
4.9
|
|
|
4.10
|
|
|
4.11
|
|
|
4.12
|
|
|
4.13
|
|
|
4.14
|
|
|
4.15
|
|
|
4.16
|
|
|
10.1
|
|
|
10.2
|
|
|
10.3
|
|
|
10.4
|
|
|
10.5
|
|
10.6
|
|
|
10.7
|
|
|
10.8
|
|
|
10.9
|
|
|
10.10
|
|
|
10.11
|
|
|
10.12
|
|
|
10.13
|
|
|
10.14
|
|
|
10.15
|
|
|
10.16
|
|
|
10.17
|
|
|
10.18
|
|
|
10.19
|
|
|
10.20
|
|
|
10.21
|
|
|
10.22
|
|
|
10.23
|
|
|
10.24
|
|
|
10.25
|
|
10.26
|
|
|
10.27
|
|
|
10.28
|
|
|
10.29
|
|
|
10.30
|
|
|
10.31
|
|
|
10.32
|
|
|
10.33
|
|
|
10.34
|
|
|
10.35
|
|
|
10.36
|
|
|
10.37
|
|
|
10.38
|
|
|
10.39
|
|
|
10.40
|
|
|
10.41
|
|
|
10.42
|
|
|
10.43
|
|
|
10.44
|
|
|
10.45
|
|
CATERPILLAR INC.
|
|
|
Registrant
|
|
|
|
|
February 19, 2020
|
By:
|
/s/ Suzette M. Long
|
|
|
Suzette M. Long
|
|
|
Chief Legal Officer, General Counsel & Corporate Secretary
|
|
|
Chairman of the Board and Chief Executive Officer
|
February 19, 2020
|
/s/ D. James Umpleby III
|
|
|
D. James Umpleby III
|
|
|
|
|
|
|
|
February 19, 2020
|
/s/ Andrew R.J. Bonfield
|
Chief Financial Officer
|
|
Andrew R.J. Bonfield
|
|
|
|
|
|
|
|
February 19, 2020
|
/s/ G. Michael Marvel
|
Chief Accounting Officer
|
|
G. Michael Marvel
|
|
|
|
|
|
|
|
February 19, 2020
|
/s/ Kelly A. Ayotte
|
Director
|
|
Kelly A. Ayotte
|
|
|
|
|
|
|
|
February 19, 2020
|
/s/ David L. Calhoun
|
Presiding Director
|
|
David L. Calhoun
|
|
|
|
|
|
|
|
February 19, 2020
|
/s/ Daniel M. Dickinson
|
Director
|
|
Daniel M. Dickinson
|
|
|
|
|
|
|
|
February 19, 2020
|
/s/ Juan Gallardo
|
Director
|
|
Juan Gallardo
|
|
|
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February 19, 2020
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/s/ William A. Osborn
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Director
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William A. Osborn
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February 19, 2020
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/s/ Debra L. Reed-Klages
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Director
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Debra L. Reed-Klages
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February 19, 2020
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/s/ Edward B. Rust, Jr.
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Director
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Edward B. Rust, Jr.
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February 19, 2020
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/s/ Susan C. Schwab
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Director
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Susan C. Schwab
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February 19, 2020
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/s/ Miles D. White
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Director
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Miles D. White
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|
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February 19, 2020
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/s/ Rayford Wilkins, Jr.
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Director
|
|
Rayford Wilkins, Jr.
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•
|
certain mortgages, pledges, liens, security interests or encumbrances to secure payment of all or part of the cost of acquisition, construction or improvement of our property or the property of a Restricted Subsidiary;
|
•
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mortgages, pledges, liens, security interests or encumbrances on property acquired, whether or not assumed by us or a Restricted Subsidiary;
|
•
|
mortgages, pledges, liens, security interests or encumbrances on property, stock, or indebtedness of a Restricted Subsidiary at the time it becomes a Restricted Subsidiary;
|
•
|
mortgages, pledges, liens, security interests or encumbrances on property of a corporation merged with us or a Restricted Subsidiary or at the time of a disposition of substantially all of the property of another corporation to us or a Restricted Subsidiary;
|
•
|
mortgages, pledges, liens, security interests, or encumbrances on our property or the property of a Restricted Subsidiary in favor of a governmental entity pursuant to contract or statute or to secure certain indebtedness;
|
•
|
extensions, renewals or replacements of any mortgage, pledge, lien, security interest or encumbrance referred to above; or
|
•
|
any mortgage, pledge, lien, security interest, or encumbrance securing debt owed by us or a Restricted Subsidiary to us or a Restricted Subsidiary.
|
•
|
if we or a Restricted Subsidiary could incur Secured Debt equal to the amount received on a sale or transfer secured by a mortgage on the property to be leased without equally and ratably securing the Debt Securities; or
|
•
|
if we or a Restricted Subsidiary apply an amount equal to the value of the property leased to the retirement, within 120 days after the effective date of the arrangement, of indebtedness for money borrowed by us or a Restricted Subsidiary recorded as funded debt as of the date of its creation and which, in the case of indebtedness of us, is not subordinated in right of payment to the prior payment of the Debt Securities. The amount applied to the retirement of that
|
•
|
failure to pay interest on any Debt Securities when due, continued for 60 days;
|
•
|
failure to pay principal of or premium, if any, on any Debt Securities when due;
|
•
|
failure to deposit any sinking fund payment when due;
|
•
|
failure to perform, breach or default of any other covenant or warranty in the Indenture for 60 days after we have received written notice of such failure, breach or default in accordance with the Indenture;
|
•
|
certain events in bankruptcy, insolvency or reorganization; and
|
•
|
any other Event of Default set forth in the applicable prospectus supplement.
|
•
|
changes to the stated maturity date of the principal or any interest installment;
|
•
|
changes to the places or currency of payment;
|
•
|
impairment of the right to institute suit for the enforcement of payment on or after the stated maturity thereof (or, in the case of redemption, on or after the redemption date);
|
•
|
reduction in the stated percentage of holders whose consent is necessary to modify the Indenture; or
|
•
|
modifications to any of the requirements for consent of holders of the Debt Securities to enter into certain supplemental indentures, the requirements to waive compliance with certain provisions of the Indenture or the requirements for a waiver of certain defaults.
|
•
|
we are the continuing corporation or the successor corporation is a domestic corporation and expressly assumes, by supplemental indenture, the due and punctual payment of principal of (and premium, if any) and interest on the Debt Securities and the performance and observance of every covenant of the Indenture binding on us;
|
ARTICLE I DEFINITIONS
|
1
|
1.1
|
General. 1
|
1.2
|
Construction. 4
|
ARTICLE II ELIGIBILITY; ADOPTION BY AFFILIATES
|
4
|
2.1
|
Eligible Employees. 4
|
2.2
|
Existing Participants. 5
|
2.3
|
New Participants. 5
|
2.4
|
Discontinuance of Participation. 5
|
2.5
|
Adoption by Affiliates. 5
|
ARTICLE III DETERMINATION OF BENEFIT
|
5
|
3.1
|
General. 5
|
3.2
|
Amount of Benefit Payable to Participant. 6
|
3.3
|
Survivor Benefits. 7
|
3.4
|
Early Retirement Reductions. 8
|
3.5
|
Future Adjustments. 8
|
ARTICLE IV VESTING
|
8
|
4.1
|
Vesting. 8
|
ARTICLE V PAYMENT OF BENEFIT
|
8
|
5.1
|
Payments on or After January 1, 2005, But Prior to January 1, 2009. 8
|
5.2
|
Payments on or After January 1, 2009. 8
|
5.3
|
Automatic Lump Sum Distributions. 11
|
5.4
|
Withholding. 12
|
5.5
|
Ban on Acceleration of Benefits. 12
|
ARTICLE VI ADMINISTRATION OF THE PLAN
|
12
|
6.1
|
General Powers and Duties. 12
|
6.2
|
General. 12
|
6.3
|
Claims Procedures. 13
|
ARTICLE VII AMENDMENT
|
13
|
7.1
|
Amendment. 13
|
7.2
|
Effect of Amendment. 13
|
7.3
|
Termination. 13
|
ARTICLE VIII GENERAL PROVISIONS
|
14
|
8.1
|
Participant’s Rights Unsecured. 14
|
8.2
|
No Guaranty of Benefits. 14
|
8.3
|
No Enlargement of Employee Rights. 14
|
8.4
|
Section 409A Compliance. 14
|
8.5
|
Spendthrift Provision. 14
|
8.6
|
Domestic Relations Orders. 15
|
8.7
|
Incapacity of Recipient. 15
|
8.8
|
Successors. 15
|
8.9
|
Limitations on Liability. 15
|
8.10
|
Overpayments. 15
|
8.11
|
Plan Frozen. 15
|
8.12
|
Special Rules for Participants With Same-Sex Domestic Partners. 16
|
8.13
|
Determination of “spouse”. 17
|
“3.2
|
Early Retirement Date. Each Participant whose employment is terminated prior to his Normal Retirement Date, but after he has attained age 55 and completed at least 10 years of Credited Service or 10 years of continuous service with the Company (whichever is first to occur), may elect to retire with the approval of the Company. Such Participant’s Early Retirement Date shall be the first day of the month next following the month in which such termination of employment occurs. Early Retirement Benefits will be determined in accordance with Article IV.
|
“4.6
|
Lump Sum Distributions as Normal Form. Notwithstanding the foregoing, effective January 1, 2020, a Participant who has terminated employment with a Vested Percentage and has not commenced his or her benefits prior to January 1, 2020 shall have such benefit paid in the form of a lump sum that is the Actuarial Equivalent of the Participant’s Accrued Benefit.”
|
“(F)
|
Notwithstanding the foregoing, effective January 1, 2020, a Spouse or eligible child that is eligible to receive a benefit pursuant to this Section 6.1 and who has not commenced his or her benefits prior to January 1, 2020 shall have such benefit paid in the form of a lump sum. For purposes of the benefit paid to an eligible child, such benefit will be calculated as though the eligible child is a full-time student.”
|
“8.1
|
Payment Currency. Effective January 1, 2020, the Retirement Benefit will be paid in U.S. Dollars. A Participant or Beneficiary may not elect to have his or her Retirement Benefit converted into any other currency.”
|
“11.1
|
Employer Contributions. The Company is under no obligation to make any contributions under the Plan after the Plan is terminated, whether or not benefits accrued or vested prior to such date or termination have been fully funded.”
|
“14.1
|
For periods before January 1, 2005, this Section is intended to clarify the Plan as in effect since it was established. To the extent that the Company acquires or holds designated assets in connection with its obligation hereunder, the Plan at all times shall nonetheless be entirely
|
“14.5
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Subject to Section 14.1, any insurance contract and other designated assets acquired and held by the Company in connection with its obligation hereunder shall be the sole source of benefits under this Plan, and each employee, Participant, Beneficiary, or any other person who shall claim the right to any payment or benefit under this Plan shall be entitled to look only to such assets for payment of benefits. The Company shall have no further liability to make or continue from its own funds the payment of any benefit under the Plan.”
|
EXHIBIT 21
|
|
CATERPILLAR INC.
List of Subsidiaries and Affiliated Companies
(as of December 31, 2019)
|
|
Direct and Indirect Wholly-Owned Subsidiaries
|
|
Name of Company
|
Where Organized
|
Advanced Tri-Gen Power Systems, LLC
|
Delaware
|
Anchor Coupling Inc.
|
Delaware
|
Asia Power Systems (Tianjin) Ltd.
|
China
|
Banco Caterpillar S.A.
|
Brazil
|
Bucyrus Australia Surface Pty. Ltd.
|
Australia
|
Bucyrus Europe Holdings, Ltd.
|
England and Wales
|
Bucyrus Europe Limited
|
England and Wales
|
Bucyrus International (Chile) Limitada
|
Chile
|
Bucyrus International (Peru) S.A.
|
Peru
|
Bucyrus Mining Australia Pty. Ltd.
|
Australia
|
Bucyrus Mining China LLC
|
Delaware
|
Bucyrus UK Limited
|
England and Wales
|
Caterpillar (Africa) (Proprietary) Limited
|
South Africa
|
Caterpillar (China) Financial Leasing Co., Ltd.
|
China
|
Caterpillar (China) Investment Co., Ltd.
|
China
|
Caterpillar (China) Machinery Components Co., Ltd.
|
China
|
Caterpillar (HK) Limited
|
Hong Kong
|
Caterpillar (Langfang) Mining Equipment Co., Ltd.
|
China
|
Caterpillar (Luxembourg) Investment Co. S.a r.l.
|
Luxembourg
|
Caterpillar (Newberry) LLC
|
Delaware
|
Caterpillar (NI) Limited
|
Northern Ireland
|
Caterpillar (Qingzhou) Ltd.
|
China
|
Caterpillar (Shanghai) Trading Co., Ltd.
|
China
|
Caterpillar (Suzhou) Co., Ltd.
|
China
|
Caterpillar (Suzhou) Logistics Co., Ltd.
|
China
|
Caterpillar (Thailand) Limited
|
Thailand
|
Caterpillar (U.K.) Limited
|
England and Wales
|
Caterpillar (Wujiang) Ltd.
|
China
|
Caterpillar (Xuzhou) Ltd.
|
China
|
Caterpillar (Zhengzhou) Ltd.
|
China
|
Caterpillar Acquisition Holding Corp.
|
Delaware
|
Caterpillar Americas C.V.
|
Netherlands
|
Caterpillar Americas Co.
|
Delaware
|
Caterpillar Americas Funding Inc.
|
Delaware
|
Caterpillar Americas Mexico, S. de R.L. de C.V.
|
Mexico
|
Caterpillar Asia Limited
|
Hong Kong
|
Caterpillar Asia Pacific L.P.
|
Bermuda
|
Caterpillar Asia Pte. Ltd.
|
Singapore
|
Caterpillar Asset Intelligence LLC
|
Delaware
|
Caterpillar Belgium Holding S.A.
|
Belgium
|
Caterpillar Brasil Comercio de Maquinas e Pecas Ltda.
|
Brazil
|
Caterpillar Brasil Ltda.
|
Brazil
|
Caterpillar Brazil LLC
|
Delaware
|
Caterpillar Castings Kiel GmbH
|
Germany
|
Caterpillar Centro de Formacion, S.L.
|
Spain
|
Caterpillar China Limited
|
Hong Kong
|
Caterpillar Commercial Australia Pty. Ltd.
|
Australia
|
Caterpillar Commercial LLC
|
Delaware
|
Caterpillar Commercial Northern Europe Limited
|
England and Wales
|
Caterpillar Commercial S.A.R.L.
|
France
|
Caterpillar Commercial Services S.A.R.L.
|
France
|
Caterpillar Communications LLC
|
Delaware
|
Caterpillar Corporativo Mexico, S. de R.L. de C.V.
|
Mexico
|
Caterpillar Cote D’Ivoire SARL
|
Ivory Coast
|
Caterpillar Crédito, S.A. de C.V., SOFOM, E.N.R.
|
Mexico
|
Caterpillar DC Pension Trust Limited
|
England and Wales
|
Caterpillar Digital Services & Solutions SARL
|
Switzerland
|
Caterpillar Distribution International LLC
|
Russia
|
Caterpillar Distribution Services Europe B.V.B.A.
|
Belgium
|
Caterpillar East Real Estate Holding Ltd.
|
Japan
|
Caterpillar Energy Solutions Asia Pacific Pte. Ltd.
|
Singapore
|
Caterpillar Energy Solutions GmbH
|
Germany
|
Caterpillar Energy Solutions Inc.
|
Delaware
|
Caterpillar Energy Solutions, S.A.
|
Spain
|
Caterpillar Energy System Technology (Beijing) Co., Ltd.
|
China
|
Caterpillar Engine Systems Inc.
|
Delaware
|
Caterpillar Equipos Mexico, S. de R.L. de C.V.
|
Mexico
|
Caterpillar Eurasia LLC
|
Russia
|
Caterpillar Finance France S.A.
|
France
|
Caterpillar Finance Kabushiki Kaisha
|
Japan
|
Caterpillar Financial Acquisition Funding LLC
|
Delaware
|
Caterpillar Financial Aftermarket Solutions Corporation
|
Delaware
|
Caterpillar Financial Australia Leasing Pty Limited
|
Australia
|
Caterpillar Financial Australia Limited
|
Australia
|
Caterpillar Financial Commercial Account Corporation
|
Nevada
|
Caterpillar Financial Corporacion Financiera, S.A., E.F.C.
|
Spain
|
Caterpillar Financial Dealer Funding LLC
|
Delaware
|
Caterpillar Financial Funding Corporation
|
Nevada
|
Caterpillar Financial Kazakhstan Limited Liability Partnership
|
Kazakhstan
|
Caterpillar Financial Leasing (Shanghai) Co., Ltd.
|
China
|
Caterpillar Financial New Zealand Limited
|
New Zealand
|
Caterpillar Financial Nordic Services AB
|
Sweden
|
Caterpillar Financial Nova Scotia Corporation
|
Canada
|
Caterpillar Financial OOO
|
Russia
|
Caterpillar Financial Receivables Corporation
|
Nevada
|
Caterpillar Financial Renting, S.A.
|
Spain
|
Caterpillar Financial SARL
|
Switzerland
|
Caterpillar Financial Services (Dubai) Limited
|
United Arab Emirates
|
Caterpillar Financial Services (Ireland) plc
|
Ireland
|
Caterpillar Financial Services (UK) Limited
|
England and Wales
|
Caterpillar Financial Services Argentina S.A.
|
Argentina
|
Caterpillar Financial Services Asia Pte. Ltd.
|
Singapore
|
Caterpillar Financial Services Belgium S.P.R.L.
|
Belgium
|
Caterpillar Financial Services Corporation
|
Delaware
|
Caterpillar Financial Services CR, s.r.o.
|
Czech Republic
|
Caterpillar Financial Services GmbH
|
Germany
|
Caterpillar Financial Services India Private Limited
|
India
|
Caterpillar Financial Services Leasing ULC
|
Canada
|
Caterpillar Financial Services Limited Les Services Financiers Caterpillar Limitee
|
Canada
|
Caterpillar Financial Services Malaysia Sdn Bhd
|
Malaysia
|
Caterpillar Financial Services Netherlands B.V.
|
Netherlands
|
Caterpillar Financial Services Norway AS
|
Norway
|
Caterpillar Financial Services Philippines Inc.
|
Philippines
|
Caterpillar Financial Services Poland Sp. z o.o.
|
Poland
|
Caterpillar Financial Services South Africa (Pty) Limited
|
South Africa
|
Caterpillar Financial UK Acquisition Funding Partners
|
England and Wales
|
Caterpillar Financial Ukraine LLC
|
Ukraine
|
Caterpillar Fluid Systems S.r.l.
|
Italy
|
Caterpillar Fomento Comercial Ltda.
|
Brazil
|
Caterpillar France S.A.S.
|
France
|
Caterpillar FS (QFC) LLC
|
United Arab Emirates
|
Caterpillar GB, L.L.C.
|
Delaware
|
Caterpillar Global Investments S.a r.l.
|
Luxembourg
|
Caterpillar Global Mining Equipment LLC
|
Delaware
|
Caterpillar Global Mining Europe GmbH
|
Germany
|
Caterpillar Global Mining Expanded Products Pty Ltd
|
Australia
|
Caterpillar Global Mining Germany Holdings GmbH
|
Germany
|
Caterpillar Global Mining HMS GmbH
|
Germany
|
Caterpillar Global Mining Holdings GmbH
|
Germany
|
Caterpillar Global Mining Hong Kong AFC Manufacturing Holding Co., Limited
|
Hong Kong
|
Caterpillar Global Mining Hong Kong Limited
|
Hong Kong
|
Caterpillar Global Mining LLC
|
Delaware
|
Caterpillar Global Mining Mexico LLC
|
Delaware
|
Caterpillar Global Mining Pty. Ltd.
|
Australia
|
Caterpillar Global Mining SARL
|
Switzerland
|
Caterpillar Global Services LLC
|
Delaware
|
Caterpillar Holding (France) S.A.S.
|
France
|
Caterpillar Holding Germany GmbH
|
Germany
|
Caterpillar Holdings Australia Pty. Ltd.
|
Australia
|
Caterpillar Hungary Components Manufacturing Ltd.
|
Hungary
|
Caterpillar Hydraulics Italia S.r.l.
|
Italy
|
Caterpillar Impact Products Limited
|
England and Wales
|
Caterpillar India Private Limited
|
India
|
Caterpillar Industrial Inc.
|
Ohio
|
Caterpillar Industrias Mexico, S. de R.L. de C.V.
|
Mexico
|
Caterpillar Industries (Pty) Ltd
|
South Africa
|
Caterpillar Insurance Co. Ltd.
|
Bermuda
|
Caterpillar Insurance Company
|
Missouri
|
Caterpillar Insurance Holdings Inc.
|
Delaware
|
Caterpillar Insurance Services Corporation
|
Tennessee
|
Caterpillar International Finance Designated Activity Company
|
Ireland
|
Caterpillar International Finance Luxembourg Holding S. à r.l.
|
Luxembourg
|
Caterpillar International Finance Luxembourg S. à r.l.
|
Luxembourg
|
Caterpillar International Funding Pte. Ltd.
|
Singapore
|
Caterpillar International Luxembourg I S. à r.l.
|
Luxembourg
|
Caterpillar International Luxembourg II S. à r.l.
|
Luxembourg
|
Caterpillar International Product SARL
|
Switzerland
|
Caterpillar International Services Corporation
|
Nevada
|
Caterpillar International Services del Peru S.A.
|
Peru
|
Caterpillar Investment Limited
|
Ireland
|
Caterpillar Investment One SARL
|
Switzerland
|
Caterpillar Investment Two SARL
|
Switzerland
|
Caterpillar Investments
|
England and Wales
|
Caterpillar IPX LLC
|
Delaware
|
Caterpillar IRB LLC
|
Delaware
|
Caterpillar Japan LLC
|
Japan
|
Caterpillar Latin America Services de Mexico, S. de R.L. de C.V.
|
Mexico
|
Caterpillar Latin America Services de Panama, S. de R.L.
|
Panama
|
Caterpillar Latin America Services, S.R.L.
|
Costa Rica
|
Caterpillar Latin America Servicios de Chile Limitada
|
Chile
|
Caterpillar Latin America Support Services, S. DE R.L.
|
Panama
|
Caterpillar Leasing (Thailand) Limited
|
Thailand
|
Caterpillar Leasing Chile, S.A.
|
Chile
|
Caterpillar Leasing GmbH (Leipzig)
|
Germany
|
Caterpillar Leasing Operativo Limitada
|
Chile
|
Caterpillar Life Insurance Company
|
Missouri
|
Caterpillar Logistics (Shanghai) Co. Ltd.
|
China
|
Caterpillar Logistics (UK) Limited
|
England and Wales
|
Caterpillar Logistics Inc.
|
Delaware
|
Caterpillar Logistics Services China Limited
|
Hong Kong
|
Caterpillar Luxembourg Group S.ar.l.
|
Luxembourg
|
Caterpillar Luxembourg LLC
|
Delaware
|
Caterpillar Luxembourg S.a r.l.
|
Luxembourg
|
Caterpillar Machinery Nantong Co., Ltd.
|
China
|
Caterpillar Marine Asia Pacific Pte. Ltd.
|
Singapore
|
Caterpillar Marine Power UK Limited
|
England and Wales
|
Caterpillar Marine Trading (Shanghai) Co., Ltd.
|
China
|
Caterpillar Maroc SARL
|
Morocco
|
Caterpillar Materiels Routiers SAS
|
France
|
Caterpillar Mexico II S.a.r.l.
|
Luxembourg
|
Caterpillar Mexico, S.A. de C.V.
|
Mexico
|
Caterpillar Mining Canada ULC
|
Canada
|
Caterpillar Mining Chile Servicios Limitada
|
Chile
|
Caterpillar Motoren (Guangdong) Co. Ltd.
|
China
|
Caterpillar Motoren GmbH & Co. KG
|
Germany
|
Caterpillar Motoren Henstedt-Ulzburg GmbH
|
Germany
|
Caterpillar Motoren Rostock GmbH
|
Germany
|
Caterpillar Motoren Verwaltungs-GmbH
|
Germany
|
Caterpillar Netherlands Holding B.V.
|
Netherlands
|
Caterpillar North America C.V.
|
Netherlands
|
Caterpillar of Australia Pty. Ltd.
|
Australia
|
Caterpillar of Canada Corporation
|
Canada
|
Caterpillar of Delaware, Inc.
|
Delaware
|
Caterpillar Operator Training Ltd.
|
Japan
|
Caterpillar Overseas Credit Corporation SARL
|
Switzerland
|
Caterpillar Overseas Investment Holding SARL
|
Switzerland
|
Caterpillar Overseas Limited
|
England and Wales
|
Caterpillar Overseas SARL
|
Switzerland
|
Caterpillar Panama Services S.A.
|
Panama
|
Caterpillar Paving Products Inc.
|
Oklahoma
|
Caterpillar Paving Products Xuzhou Ltd.
|
China
|
Caterpillar Pension Trust Limited
|
England and Wales
|
Caterpillar Poland Sp. z o.o.
|
Poland
|
Caterpillar Power Generation Systems (Bangladesh) Limited
|
Bangladesh
|
Caterpillar Power Generation Systems L.L.C.
|
Delaware
|
Caterpillar Power Systems Inc.
|
Delaware
|
Caterpillar Power Ventures International, Ltd.
|
Bermuda
|
Caterpillar Precision Seals Korea
|
South Korea
|
Caterpillar Prodotti Stradali S.r.l.
|
Italy
|
Caterpillar Product Services Corporation
|
Missouri
|
Caterpillar Propulsion AB
|
Sweden
|
Caterpillar Propulsion International Trading (Shanghai) Co., Ltd.
|
China
|
Caterpillar Propulsion Italy S.R.L.
|
Italy
|
Caterpillar Propulsion Namibia (Proprietary) Limited
|
Namibia
|
Caterpillar Propulsion Production AB
|
Sweden
|
Caterpillar Propulsion Pte. Ltd.
|
Singapore
|
Caterpillar R&D Center (China) Co., Ltd.
|
China
|
Caterpillar Ramos Arizpe LLC
|
Delaware
|
Caterpillar Ramos Arizpe Servicios S.A. de C.V.
|
Mexico
|
Caterpillar Ramos Arizpe, S. de R.L. de C.V.
|
Mexico
|
Caterpillar Reman Powertrain Indiana LLC
|
Delaware
|
Caterpillar Remanufacturing Drivetrain LLC
|
Delaware
|
Caterpillar Remanufacturing Services (Shanghai) Co., Ltd.
|
China
|
Caterpillar Renting France S.A.S.
|
France
|
Caterpillar Reynosa, S.A. de C.V.
|
Mexico
|
Caterpillar SARL
|
Switzerland
|
Caterpillar Services Germany GmbH
|
Germany
|
Caterpillar Servicios Limitada
|
Chile
|
Caterpillar Servicios Mexico, S. de R.L. de C.V.
|
Mexico
|
Caterpillar Servizi Italia Srl
|
Italy
|
Caterpillar Shrewsbury Limited
|
England and Wales
|
Caterpillar Skinningrove Limited
|
England and Wales
|
Caterpillar Southern Africa (Pty) Ltd.
|
South Africa
|
Caterpillar Switchgear Americas LLC
|
Delaware
|
Caterpillar Switchgear Holding Inc.
|
Georgia
|
Caterpillar Tianjin Ltd.
|
China
|
Caterpillar Torreon S. de R.L. de C.V.
|
Mexico
|
Caterpillar Tosno, L.L.C.
|
Russia
|
Caterpillar Transmissions France S.A.R.L.
|
France
|
Caterpillar Tunneling Canada Holdings Ltd.
|
Canada
|
Caterpillar Tunnelling Canada Corporation
|
Canada
|
Caterpillar Tunnelling Europe Limited
|
England and Wales
|
Caterpillar UK Employee Trust Limited
|
England and Wales
|
Caterpillar UK Engines Company Limited
|
England and Wales
|
Caterpillar UK Group Limited
|
England and Wales
|
Caterpillar UK Holdings Limited
|
England and Wales
|
Caterpillar Undercarriage (Xuzhou) Co., Ltd.
|
China
|
Caterpillar Underground Mining Pty. Ltd.
|
Australia
|
Caterpillar Used Equipment Services Inc.
|
Delaware
|
Caterpillar Venture Capital Inc.
|
Delaware
|
Caterpillar Work Tools B.V.
|
Netherlands
|
Caterpillar Work Tools, Inc.
|
Kansas
|
Caterpillar World Trading Corporation
|
Delaware
|
Cleveland Track Material, Inc.
|
Ohio
|
ECM Railway Evolution Romania s.r.l.
|
Romania
|
ECM S.p.A.
|
Italy
|
EDC European Excavator Design Center GmbH
|
Germany
|
Electro-Motive Diesel Limited
|
England and Wales
|
Electro-Motive Locomotive Technologies LLC
|
Russia
|
Electro-Motive Technical Consulting Co. (Beijing) Ltd.
|
China
|
EMC Holding Corp.
|
Delaware
|
EMD International Holdings, Inc.
|
Delaware
|
Energy Services International Limited
|
Bermuda
|
Equipos de Acuña, S.A. de C.V.
|
Mexico
|
ERA Information & Entertainment (BVI) Limited
|
British Virgin Islands
|
ERA Mining Machinery Limited
|
Cayman Islands
|
F. G. Wilson (Proprietary) Limited
|
South Africa
|
F. Perkins Limited
|
England and Wales
|
FG Wilson (Engineering) Limited
|
England and Wales
|
GB Holdco (China), Inc.
|
Delaware
|
GFCM Comercial Mexico, S.A. de C.V., SOFOM, E.N.R.
|
Mexico
|
GFCM Servicios, S.A. de C.V.
|
Mexico
|
Hong Kong Siwei Holdings Limited
|
Hong Kong
|
Inmobiliaria Conek, S.A. de C.V.
|
Mexico
|
Kemper Valve & Fittings Corp.
|
Illinois
|
Leo, Inc.
|
Washington
|
Locomotive Demand Power Pty Ltd.
|
Australia
|
Locomotoras Progress Mexico, S. de R.L. de C.V.
|
Mexico
|
M2M Data Corporation
|
Colorado
|
MaK Americas Inc.
|
Illinois
|
MaK Americas Inc. (Canada)
|
Canada
|
Mec-Track S.r.l.
|
Italy
|
Metalmark Financial Services Limited
|
England and Wales
|
Motoren Steffens GmbH
|
Germany
|
MWM Austria GmbH
|
Austria
|
MWM Benelux B.V.
|
Netherlands
|
MWM Energy Australia Pty Ltd
|
Australia
|
MWM France S.A.S
|
France
|
MWM Real Estate GmbH
|
Germany
|
Nippon Caterpillar LLC
|
Japan
|
Perkins Engines (Asia Pacific) Pte Ltd
|
Singapore
|
Perkins Engines Company Limited
|
England and Wales
|
Perkins Engines Group Limited
|
England and Wales
|
Perkins Engines, Inc.
|
Maryland
|
Perkins Group Limited
|
England and Wales
|
Perkins Holdings Limited LLC
|
Delaware
|
Perkins India Private Limited
|
India
|
Perkins International Inc.
|
Delaware
|
Perkins Japan LLC
|
Japan
|
Perkins Limited
|
England and Wales
|
Perkins Machinery (Changshu) Co., Ltd.
|
China
|
Perkins Motores do Brasil Ltda.
|
Brazil
|
Perkins Power Systems Technology (Wuxi) Co., Ltd.
|
China
|
Perkins Small Engines Limited
|
England and Wales
|
Perkins Small Engines (Wuxi) Co., Ltd.
|
China
|
Perkins Small Engines LLC
|
Delaware
|
Perkins Technology Inc.
|
Delaware
|
Progress Metal Reclamation Company
|
Kentucky
|
Progress Rail Australia Pty Ltd
|
Australia
|
Progress Rail Canada Corporation
|
Canada
|
Progress Rail de Mexico, S.A. de C.V.
|
Mexico
|
Progress Rail Equipamentos e Servicos Ferroviarios do Brasil Ltda.
|
Brazil
|
Progress Rail Equipment Leasing Corporation
|
Michigan
|
Progress Rail Innovations Private Limited
|
India
|
Progress Rail Inspection & Information Systems GmbH
|
Germany
|
Progress Rail International Corp.
|
Delaware
|
Progress Rail Leasing Canada Corporation
|
Delaware
|
Progress Rail Leasing Corporation
|
Delaware
|
Progress Rail Leasing de Mexico, S. de R.L. de C.V.
|
Mexico
|
Progress Rail Leasing UK Limited
|
England and Wales
|
Progress Rail Locomotivas do Brasil Ltda.
|
Brazil
|
Progress Rail Locomotive Canada Co.
|
Canada
|
Progress Rail Locomotive Chile SpA
|
Chile
|
Progress Rail Locomotive Inc.
|
Delaware
|
Progress Rail Maintenance de Mexico S.A. de C.V.
|
Mexico
|
Progress Rail Manufacturing Corporation
|
Delaware
|
Progress Rail Raceland Corporation
|
Delaware
|
Progress Rail SA Proprietary Limited
|
South Africa
|
Progress Rail Services Corporation
|
Alabama
|
Progress Rail Services Holdings Corp.
|
Delaware
|
Progress Rail Services LLC
|
Delaware
|
Progress Rail Services UK Limited
|
England and Wales
|
Progress Rail Transcanada Corporation
|
Canada
|
Progress Rail Welding Corporation
|
Delaware
|
Progress Rail Wildwood, LLC
|
Florida
|
PT Caterpillar Finance Indonesia
|
Indonesia
|
PT. Bucyrus Indonesia
|
Indonesia
|
PT. Caterpillar Indonesia
|
Indonesia
|
PT. Caterpillar Indonesia Batam
|
Indonesia
|
PT. Caterpillar Remanufacturing Indonesia
|
Indonesia
|
Pyrrha Investments B.V.
|
Netherlands
|
Pyrrha Investments Limited
|
England and Wales
|
S&L Railroad, LLC
|
Nebraska
|
SCM Singapore Holdings Pte. Ltd.
|
Singapore
|
Servicios de Turbinas Solar, S. de R.L. de C.V.
|
Mexico
|
Shandong SEM Machinery Co., Ltd.
|
China
|
Solar Turbines (B) Sdn Bhd
|
Brunei
|
Solar Turbines (Beijing) Trading Services Co., Ltd.
|
China
|
Solar Turbines (Thailand) Ltd.
|
Thailand
|
Solar Turbines Canada Ltd./Ltee.
|
Canada
|
Solar Turbines Central Asia Limited Liability Partnership
|
Kazakhstan
|
Solar Turbines CIS Limited Liability Company
|
Russia
|
Solar Turbines EAME s.r.o.
|
Czech Republic
|
Solar Turbines Egypt Limited Liability Company
|
Egypt
|
Solar Turbines Europe S.A.
|
Belgium
|
Solar Turbines Incorporated
|
Delaware
|
Solar Turbines India Private Limited
|
India
|
Solar Turbines International Company
|
Delaware
|
Solar Turbines Italy S.R.L.
|
Italy
|
Solar Turbines Malaysia Sdn Bhd
|
Malaysia
|
Solar Turbines Middle East Limited
|
United Arab Emirates
|
Solar Turbines New Zealand Limited
|
New Zealand
|
Solar Turbines Saudi Arabia Limited
|
Saudi Arabia
|
Solar Turbines Services Company
|
California
|
Solar Turbines Services Nigeria Limited
|
Nigeria
|
Solar Turbines Services of Argentina S.R.L.
|
Argentina
|
Solar Turbines Switzerland Sagl
|
Switzerland
|
Solar Turbines Trinidad & Tobago Limited
|
Trinidad and Tobago
|
Solar Turbines West-Africa SARL
|
Gabon
|
SPL Software Alliance LLC
|
Delaware
|
Tecnologia Modificada, S.A. de C.V.
|
Mexico
|
Tokyo Rental Ltd.
|
Japan
|
Traction & Mining Motor Repairs Pty Ltd
|
Australia
|
Turbinas Solar de Colombia S.A.
|
Colombia
|
Turbinas Solar de Venezuela, C.A.
|
Venezuela
|
Turbinas Solar S.A. de C.V.
|
Mexico
|
Turbo Tecnologia de Reparaciones S.A. de C.V.
|
Mexico
|
Turbomach Endustriyel Gaz Turbinleri Sanayi Ve Ticaret Limited
|
Turkey
|
Turbomach France SARL
|
France
|
Turbomach GmbH
|
Germany
|
Turbomach Netherlands B.V.
|
Netherlands
|
Turbomach Pakistan (Private) Limited
|
Pakistan
|
Turbomach S.A., Unipersonal
|
Spain
|
Turbomach Sp. Z o.o.
|
Poland
|
Turner Powertrain Systems Limited
|
England and Wales
|
United Industries, LLC
|
Kentucky
|
VALA Inc.
|
Delaware
|
Vasky Energy Ltd.
|
British Virgin Islands
|
West Virginia Auto Shredding, Inc.
|
West Virginia
|
Western Gear Machinery LLC
|
Delaware
|
Zhengzhou Siwei Mechanical and Electrical Equipment Sales Co., Ltd.
|
China
|
Majority-Owned Subsidiaries
|
|
Name of Company
|
Where Organized
|
124 Adams Property Holdings LLC
|
Illinois
|
AsiaTrak (Tianjin) Ltd.
|
China
|
Magnum Power Products, LLC
|
Delaware
|
P. T. Solar Services Indonesia
|
Indonesia
|
Progress Rail Arabia Limited Company
|
Saudi Arabia
|
Wetland Sustainability Fund I, LLC
|
Delaware
|
Affiliated Companies (50% and less ownership)
|
|
Name of Company
|
Where Organized
|
10G LLC
|
Delaware
|
Advanced Filtration Systems Inc.
|
Delaware
|
AFSI Europe s.r.o.
|
Czech Republic
|
Amsted RPS/Schwihag JV LLC
|
Delaware
|
AP Operation & Maintenance Limited
|
Channel Islands
|
Atlas Heavy Engineering Pty Ltd
|
Australia
|
Black Horse LLC
|
Delaware
|
Caterpillar Trimble Control Technologies LLC
|
Delaware
|
CSSC Motoren Anqing-Kiel Co., Ltd.
|
China
|
Datong Tongbi Machinery Company Limited
|
China
|
Electro-Motive Diesel Africa Proprietary Limited
|
South Africa
|
Evercompounds LLC
|
Delaware
|
Landscape Management Network Inc.
|
Canada
|
MaK Middle East LLC
|
United Arab Emirates
|
Shanxi Xishan Siwei Mechanical & Electrical Equipment Manufacturing Co., Ltd.
|
China
|
Terex NHL Mining Equipment Company Limited
|
China
|
Turboservices SDN BHD
|
Malaysia
|
VirtualSite Solutions LLC
|
Delaware
|
Xi'an FC Intelligence Transmission Co., Ltd.
|
China
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and 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.
|
|
|
|
|
February 19, 2020
|
/s/ D. James Umpleby III
|
|
Chief Executive Officer
|
|
D. James Umpleby III
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February 19, 2020
|
/s/ Andrew R.J. Bonfield
|
|
Chief Financial Officer
|
|
Andrew R.J. Bonfield
|
|
|