EX-99.1 2 ex991toformcat2q2024earnin.htm EX-99.1 Document

Exhibit 99.1
Caterpillar Inc.                                     
2Q 2024 Earnings Release



FOR IMMEDIATE RELEASE
Caterpillar Reports Second-Quarter 2024 Results
Second Quarter
($ in billions except profit per share)20242023
Sales and Revenues$16.7$17.3
Profit Per Share$5.48$5.67
Adjusted Profit Per Share$5.99$5.55
Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 13 and 14.
Second-quarter 2024 profit per share of $5.48; adjusted profit per share of $5.99
Enterprise operating cash flow was $3.0 billion in the second quarter of 2024
Deployed $2.5 billion of cash for share repurchases and dividends in the second quarter
IRVING, Texas, August 6, 2024 – Caterpillar Inc. (NYSE: CAT) announced second-quarter 2024 results. Sales and revenues for the second quarter of 2024 were $16.7 billion, a 4% decrease compared with $17.3 billion in the second quarter of 2023. The decrease was primarily due to lower sales volume, partially offset by favorable price realization.
Operating profit margin was 20.9% for the second quarter of 2024, compared with 21.1% for the second quarter of 2023. Adjusted operating profit margin was 22.4% for the second quarter of 2024, compared with 21.3% for the second quarter of 2023. Second-quarter 2024 profit per share was $5.48, compared with second-quarter 2023 profit per share of $5.67. Adjusted profit per share in the second quarter of 2024 was $5.99, compared with second-quarter 2023 adjusted profit per share of $5.55. For the second quarter of 2024 and 2023, adjusted operating profit margin and adjusted profit per share excluded restructuring costs. Second-quarter 2023 adjusted profit per share also excluded a discrete tax benefit to adjust deferred tax balances.
For the second quarter of 2024, enterprise operating cash flow was $3.0 billion, and the company ended the second quarter with $4.3 billion of enterprise cash. In the quarter, the company deployed $1.8 billion of cash for repurchases of Caterpillar common stock and $0.6 billion of cash for dividends.
“I’d like to thank our team for delivering another strong quarter, including higher adjusted operating profit margin, record adjusted profit per share and robust ME&T free cash flow,” said Chairman and CEO Jim Umpleby. “Our results continue to reflect the benefit of the diversity of our end markets as well as the disciplined execution of our strategy for long-term profitable growth.”
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CONSOLIDATED RESULTS
Consolidated Sales and Revenues
salesandrevenueschunkcharta.jpg
The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the second quarter of 2023 (at left) and the second quarter of 2024 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company’s board of directors and employees.
Total sales and revenues for the second quarter of 2024 were $16.689 billion, a decrease of $629 million, or 4%, compared with $17.318 billion in the second quarter of 2023. The decrease was primarily due to lower sales volume of $1.206 billion, partially offset by favorable price realization of $578 million. The decrease in sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased during the second quarter of 2024, compared with an increase during the second quarter of 2023.
In the three primary segments, sales were lower in Construction Industries and Resource Industries and higher in Energy & Transportation.
Sales and Revenues by Segment
(Millions of dollars)Second Quarter 2023Sales
Volume
Price
Realization
CurrencyInter-Segment / OtherSecond Quarter 2024$
Change
%
Change
Construction Industries$7,154 $(588)$178 $(55)$(6)$6,683 $(471)(7%)
Resource Industries3,563 (475)133 (9)(6)3,206 (357)(10%)
Energy & Transportation7,219 (129)264 (12)(5)7,337 118 2%
All Other Segment116 (7)(1)(3)108 (8)(7%)
Corporate Items and Eliminations(1,507)(7)— — 20 (1,494)13  
Machinery, Energy & Transportation16,545 (1,206)578 (77)— 15,840 (705)(4%)
Financial Products Segment923 — — — 81 1,004 81 9%
Corporate Items and Eliminations(150)— — — (5)(155)(5) 
Financial Products Revenues773 — — — 76 849 76 10%
Consolidated Sales and Revenues$17,318 $(1,206)$578 $(77)$76 $16,689 $(629)(4%)
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Sales and Revenues by Geographic Region
North AmericaLatin AmericaEAMEAsia/PacificExternal Sales and RevenuesInter-SegmentTotal Sales and Revenues
(Millions of dollars)$% Chg$% Chg$% Chg$% Chg$% Chg$% Chg$% Chg
Second Quarter 2024          
Construction Industries$3,957 —%$677 20%$1,047 (27%)$975 (15%)$6,656 (7%)$27 (18%)$6,683 (7%)
Resource Industries1,206 (10%)524 (3%)442 (15%)950 (12%)3,122 (10%)84 (7%)3,206 (10%)
Energy & Transportation3,308 6%439 (4%)1,421 (4%)912 1%6,080 2%1,257 —%7,337 2%
All Other Segment13 (19%)— —%—%12 (14%)29 (15%)79 (4%)108 (7%)
Corporate Items and Eliminations(20)(1)(21)(5)(47)(1,447)(1,494)
Machinery, Energy & Transportation 8,464 1%1,639 5%2,893 (16%)2,844 (9%)15,840 (4%)— —%15,840 (4%)
Financial Products Segment668 13%101 (1%)124 5%111 1%1,004 9%— —%1,004 9%
Corporate Items and Eliminations(89)(21)(20)(25)(155)— (155)
Financial Products Revenues579 14%80 (1%)104 7%86 (1%)849 10%— —%849 10%
Consolidated Sales and Revenues$9,043 1%$1,719 5%$2,997 (15%)$2,930 (9%)$16,689 (4%)$— —%$16,689 (4%)
Second Quarter 2023              
Construction Industries$3,968 $566 $1,438 $1,149  $7,121 $33 $7,154 
Resource Industries1,342 538 517 1,076  3,473 90 3,563 
Energy & Transportation3,120 459 1,479 899  5,957 1,262 7,219 
All Other Segment16 — 14  34 82 116 
Corporate Items and Eliminations(32)(2)(2)(4)(40)(1,467)(1,507)
Machinery, Energy & Transportation8,414  1,561  3,436  3,134  16,545  —  16,545  
Financial Products Segment593 102 118 110  923 — 923 
Corporate Items and Eliminations(85)(21)(21)(23) (150)— (150)
Financial Products Revenues508  81  97  87  773  —  773  
Consolidated Sales and Revenues$8,922  $1,642  $3,533  $3,221  $17,318  $—  $17,318  
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Consolidated Operating Profit
operatingprofitchunkchart2q.jpg
The chart above graphically illustrates reasons for the change in consolidated operating profit between the second quarter of 2023 (at left) and the second quarter of 2024 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company’s board of directors and employees. The bar titled Other includes consolidating adjustments and Machinery, Energy & Transportation’s other operating (income) expenses.
Operating profit for the second quarter of 2024 was $3.482 billion, a decrease of $170 million, or 5%, compared with $3.652 billion in the second quarter of 2023. Favorable price realization of $578 million was more than offset by the profit impact of lower sales volume of $431 million, higher restructuring costs of $227 million and higher selling, general and administrative (SG&A) and research and development (R&D) expenses of $79 million. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives.
In the second quarter of 2024, restructuring costs increased primarily due to the divestiture of two non-U.S. entities.
Profit (Loss) by Segment
(Millions of dollars)Second Quarter 2024Second Quarter 2023$
Change
%
 Change
Construction Industries$1,741 $1,803 $(62)(3 %)
Resource Industries718 740 (22)(3 %)
Energy & Transportation1,525 1,269 256 20 %
All Other Segment21 10 11 110 %
Corporate Items and Eliminations(344)(272)(72) 
Machinery, Energy & Transportation3,661 3,550 111 %
Financial Products Segment227 240 (13)(5 %)
Corporate Items and Eliminations(243)17 (260)
Financial Products(16)257 (273)(106 %)
Consolidating Adjustments(163)(155)(8)
Consolidated Operating Profit$3,482 $3,652 $(170)(5 %)






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Other Profit/Loss and Tax Items
Other income (expense) in the second quarter of 2024 was income of $155 million, compared with income of $127 million in the second quarter of 2023. The change was primarily driven by favorable impacts from commodity hedges.
The effective tax rate for the second quarter of 2024 was 23.9% compared to 20.6% for the second quarter of 2023. Excluding the discrete items discussed below, the second quarter 2024 estimated annual tax rate was 22.5% compared with 23.0% for the second quarter of 2023.
The 2024 estimated annual tax rate excludes the impact of second-quarter losses of $228 million for the divestiture of two non-U.S. entities with no related tax benefit. In addition, a discrete tax benefit of $4 million was recorded in the second quarter of 2024 for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. In the second quarter of 2023, the company recorded a discrete tax benefit of $88 million due to a change in the valuation allowance for certain deferred tax assets.
Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on pages 13 and 14.
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CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
Second Quarter 2023Sales VolumePrice RealizationCurrencyInter-SegmentSecond Quarter 2024$
 Change
%
 Change
Total Sales$7,154 $(588)$178 $(55)$(6)$6,683 $(471)(7 %)
Sales by Geographic Region
Second Quarter 2024Second Quarter 2023$
Change
%
Change
North America$3,957 $3,968 $(11)— %
Latin America677 566 111 20 %
EAME1,047 1,438 (391)(27 %)
Asia/Pacific975 1,149 (174)(15 %)
External Sales6,656 7,121 (465)(7 %)
Inter-segment27 33 (6)(18 %)
Total Sales$6,683 $7,154 $(471)(7 %)
Segment Profit
Second Quarter 2024Second Quarter 2023
Change
%
Change
Segment Profit$1,741 $1,803 $(62)(3 %)
Segment Profit Margin26.1 %25.2 %0.9  pts
Construction Industries’ total sales were $6.683 billion in the second quarter of 2024, a decrease of $471 million, or 7%, compared with $7.154 billion in the second quarter of 2023. The decrease was primarily due to lower sales volume of $588 million, partially offset by favorable price realization of $178 million. The decrease in sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory remained about flat during the second quarter of 2024, compared to an increase during the second quarter of 2023.
Sales in North America were about flat. Lower sales volume was offset by favorable price realization. Lower sales volume was mainly driven by lower sales of equipment to end users.
Sales increased in Latin America mainly due to higher sales volume. Higher sales volume was primarily driven by the impact from changes in dealer inventories. Dealer inventory increased during the second quarter of 2024, compared with a decrease during the second quarter of 2023.
In EAME, sales decreased primarily due to lower sales volume. Lower sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased during the second quarter of 2024, compared with an increase during the second quarter of 2023.
Sales decreased in Asia/Pacific mainly due to lower sales volume and unfavorable currency impacts primarily related to the Japanese yen. Lower sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased during the second quarter of 2024, compared with an increase during the second quarter of 2023.



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Construction Industries’ segment profit was $1.741 billion in the second quarter of 2024, a decrease of $62 million, or 3%, compared with $1.803 billion in the second quarter of 2023. The decrease was mainly due to the profit impact of lower sales volume of $288 million and higher SG&A/R&D expenses of $30 million, partially offset by favorable price realization of $178 million, favorable manufacturing costs of $62 million and favorable other segment items of $16 million. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives. Favorable manufacturing costs largely reflected lower material costs. Favorable other segment items primarily consisted of favorable currency impacts.

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RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
Second Quarter 2023Sales VolumePrice RealizationCurrencyInter-SegmentSecond Quarter 2024$
 Change
%
 Change
Total Sales$3,563 $(475)$133 $(9)$(6)$3,206 $(357)(10 %)
Sales by Geographic Region
Second Quarter 2024Second Quarter 2023$
Change
%
Change
North America$1,206 $1,342 $(136)(10 %)
Latin America524 538 (14)(3 %)
EAME442 517 (75)(15 %)
Asia/Pacific950 1,076 (126)(12 %)
External Sales3,122 3,473 (351)(10 %)
Inter-segment84 90 (6)(7 %)
Total Sales$3,206 $3,563 $(357)(10 %)
Segment Profit
Second Quarter 2024Second Quarter 2023
Change
%
Change
Segment Profit$718 $740 $(22)(3 %)
Segment Profit Margin22.4 %20.8 %1.6  pts
Resource Industries’ total sales were $3.206 billion in the second quarter of 2024, a decrease of $357 million, or 10%, compared with $3.563 billion in the second quarter of 2023. The decrease was primarily due to lower sales volume of $475 million, partially offset by favorable price realization of $133 million. The decrease in sales volume was mainly driven by the impact from changes in dealer inventories. Dealer inventory decreased more during the second quarter of 2024 than during the second quarter of 2023.
Resource Industries’ segment profit was $718 million in the second quarter of 2024, a decrease of $22 million, or 3%, compared with $740 million in the second quarter of 2023. The decrease was mainly due to the profit impact of lower sales volume of $169 million, unfavorable other segment items of $16 million and higher SG&A/R&D expenses of $14 million, partially offset by favorable price realization of $133 million and favorable manufacturing costs of $44 million. Unfavorable other segment items primarily consisted of unfavorable currency impacts. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives. Favorable manufacturing costs largely reflected lower freight.

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ENERGY & TRANSPORTATION
(Millions of dollars)
Segment Sales
Second Quarter 2023Sales VolumePrice RealizationCurrencyInter-SegmentSecond Quarter 2024$
 Change
%
 Change
Total Sales$7,219 $(129)$264 $(12)$(5)$7,337 $118 %
Sales by Application
Second Quarter 2024Second Quarter 2023$
Change
%
Change
Oil and Gas$1,829 $1,760 $69 %
Power Generation1,885 1,645 240 15 %
Industrial1,045 1,318 (273)(21 %)
Transportation1,321 1,234 87 %
External Sales6,080 5,957 123 %
Inter-segment1,257 1,262 (5)— %
Total Sales$7,337 $7,219 $118 %
Segment Profit
Second Quarter 2024Second Quarter 2023
Change
%
Change
Segment Profit$1,525 $1,269 $256 20 %
Segment Profit Margin20.8 %17.6 %3.2  pts
Energy & Transportation’s total sales were $7.337 billion in the second quarter of 2024, an increase of $118 million, or 2%, compared with $7.219 billion in the second quarter of 2023. Sales increased across all applications except Industrial. The increase in sales was primarily due to favorable price realization of $264 million, partially offset by lower sales volume of $129 million.
Oil and Gas – Sales increased for turbines and turbine-related services.
Power Generation – Sales increased in large reciprocating engines, primarily data center applications. Turbines and turbine-related services increased as well.
Industrial – Sales decreased in EAME and North America.
Transportation – Sales increased in rail services and marine.
Energy & Transportation’s segment profit was $1.525 billion in the second quarter of 2024, an increase of $256 million, or 20%, compared with $1.269 billion in the second quarter of 2023. The increase was mainly due to favorable price realization of $264 million.
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FINANCIAL PRODUCTS SEGMENT
(Millions of dollars)
Revenues by Geographic Region
Second Quarter 2024Second Quarter 2023$
Change
%
Change
North America$668 $593 $75 13 %
Latin America101 102 (1)(1 %)
EAME124 118 %
Asia/Pacific111 110 %
Total Revenues$1,004 $923 $81 %
Segment Profit
Second Quarter 2024Second Quarter 2023
Change
%
Change
Segment Profit$227 $240 $(13)(5 %)
Financial Products’ segment revenues were $1.004 billion in the second quarter of 2024, an increase of $81 million, or 9%, compared with $923 million in the second quarter of 2023. The increase was primarily due to a favorable impact from higher average financing rates across all regions of $50 million and a favorable impact from higher average earning assets driven by North America of $32 million.
Financial Products’ segment profit was $227 million in the second quarter of 2024, a decrease of $13 million, or 5%, compared with $240 million in the second quarter of 2023. The decrease was mainly due to higher provision for credit losses at Cat Financial of $27 million and an increase in SG&A expenses of $15 million, partially offset by the absence of prior year unfavorable currency impacts of $14 million and a favorable impact from higher average earning assets of $12 million.
At the end of the second quarter of 2024, past dues at Cat Financial were 1.74%, compared with 2.15% at the end of the second quarter of 2023. Write-offs, net of recoveries, were $18 million for the second quarter of 2024, compared with $8 million for the second quarter of 2023. As of June 30, 2024, Cat Financial's allowance for credit losses totaled $254 million, or 0.89% of finance receivables, compared with $281 million, or 1.01% of finance receivables at March 31, 2024. The allowance for credit losses at year-end 2023 was $331 million, or 1.18% of finance receivables.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $587 million in the second quarter of 2024, an increase of $332 million from the second quarter of 2023, primarily driven by higher restructuring costs and higher corporate costs.
In the second quarter of 2024, restructuring costs increased primarily due to the divestiture of two non-U.S. entities.
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Notes
i.Glossary of terms is included on the Caterpillar website at https://investors.caterpillar.com/overview/default.aspx.
ii.Sales of equipment to end users is demonstrated by the company’s Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Tuesday, Aug. 6, 2024.
iii.Information on non-GAAP financial measures is included in the appendix on pages 13 and 14.
iv.Some amounts within this report are rounded to the millions or billions and may not add.
v.Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7:30 a.m. Central Time on Tuesday, Aug. 6, 2024, to discuss its 2024 second-quarter results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx.
About Caterpillar
With 2023 sales and revenues of $67.1 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we’ve been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries and Energy & Transportation – and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/en/news/social-media.html.
Caterpillar’s latest financial results are also available online:
https://investors.caterpillar.com/overview/default.aspx
https://investors.caterpillar.com/financials/quarterly-results/default.aspx (live broadcast/replays of quarterly conference call)
Caterpillar investor relations contact: Ryan Fiedler, +1 224-551-4074 or Fiedler_Ryan_S@cat.com
Caterpillar media contact: Tiffany Heikkila, +1 832-573-0958 or Tiffany.Heikkila@cat.com














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Forward-Looking Statements
Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “forecast,” “target,” “guide,” “project,” “intend,” “could,” “should” or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.
Caterpillar’s actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) commodity price changes, material price increases, fluctuations in demand for our products or significant shortages of material; (iii) government monetary or fiscal policies; (iv) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (v) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; (vi) our ability to develop, produce and market quality products that meet our customers’ needs; (vii) the impact of the highly competitive environment in which we operate on our sales and pricing; (viii) information technology security threats and computer crime; (ix) inventory management decisions and sourcing practices of our dealers and our OEM customers; (x) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (xv) our Financial Products segment’s risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an increase in delinquencies, repossessions or net losses of Cat Financial’s customers; (xviii) currency fluctuations; (xix) our or Cat Financial’s compliance with financial and other restrictive covenants in debt agreements; (xx) increased pension plan funding obligations; (xxi) alleged or actual violations of trade or anti-corruption laws and regulations; (xxii) additional tax expense or exposure, including the impact of U.S. tax reform; (xxiii) significant legal proceedings, claims, lawsuits or government investigations; (xxiv) new regulations or changes in financial services regulations; (xxv) compliance with environmental laws and regulations; (xxvi) catastrophic events, including global pandemics such as the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar’s Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.
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APPENDIX
NON-GAAP FINANCIAL MEASURES
The following definitions are provided for the non-GAAP financial measures. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures.
The company believes it is important to separately quantify the profit impact of three significant items in order for the company’s results to be meaningful to readers. These items consist of (i) restructuring costs related to the divestiture of two non-U.S. entities in 2024, (ii) other restructuring income/costs and (iii) certain deferred tax valuation allowance adjustments in 2023. The company does not consider these items indicative of earnings from ongoing business activities and believes the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company’s period-over-period results. The company intends to discuss adjusted profit per share for the fourth quarter and full-year 2024, excluding mark-to-market gains or losses for remeasurement of pension and other postemployment benefit plans.
Reconciliations of adjusted results to the most directly comparable GAAP measure are as follows:
(Dollars in millions except per share data)Operating ProfitOperating Profit MarginProfit Before TaxesProvision (Benefit) for Income TaxesProfitProfit per Share
Three Months Ended June 30, 2024 - U.S. GAAP
$3,482 20.9 %$3,500 $836 $2,681 $5.48 
Restructuring costs - divestiture of two non-U.S. entities228 1.3 %228 — 228 0.47 
Other restructuring (income) costs30 0.2 %30 24 0.04 
Three Months Ended June 30, 2024 - Adjusted
$3,740 22.4 %$3,758 $842 $2,933 $5.99 
Three Months Ended June 30, 2023 - U.S. GAAP
$3,652 21.1 %$3,652 $752 $2,922 $5.67 
Other restructuring (income) costs31 0.2 %31 25 0.05
Deferred tax valuation allowance adjustments— — %— 88 (88)(0.17)
Three Months Ended June 30, 2023 - Adjusted
$3,683 21.3 %$3,683 $846 $2,859 $5.55 



















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The company believes it is important to separately disclose the annual effective tax rate, excluding discrete items for the results to be meaningful to readers. The annual effective tax rate is discussed using non-GAAP financial measures that exclude the effects of amounts associated with discrete items recorded fully in the quarter they occur. For the three months ended June 30, 2024, and 2023, these items consist of (i) restructuring costs related to the divestiture of two non-U.S. entities in 2024, (ii) certain deferred tax valuation allowance adjustments in 2023 and (iii) settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. The company believes the non-GAAP measures will provide investors with useful perspective on underlying business results and trends and aids with assessing the company's period-over-period results.
A reconciliation of the effective tax rate to annual effective tax rate, excluding discrete items is below:
(Dollars in millions)Profit Before TaxesProvision (Benefit) for Income TaxesEffective Tax Rate
Three Months Ended June 30, 2024 - U.S. GAAP
$3,500 $836 23.9 %
Restructuring costs - divestiture of two non-U.S. entities228 — 
Excess stock-based compensation— 
Annual effective tax rate, excluding discrete items$3,728 $840 22.5 %
Excess stock-based compensation— (4)
Other restructuring (income) costs30 
Three Months Ended June 30, 2024 - Adjusted
$3,758 $842 
Three Months Ended June 30, 2023 - U.S. GAAP
$3,652 $752 20.6 %
Deferred tax valuation allowance adjustments— 88 
Annual effective tax rate, excluding discrete items$3,652 $840 23.0 %
Other restructuring (income) costs31 
Three Months Ended June 30, 2023 - Adjusted
$3,683 $846 





















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Supplemental Consolidating Data
The company is providing supplemental consolidating data for the purpose of additional analysis. The data has been grouped as follows:
Consolidated – Caterpillar Inc. and its subsidiaries.
Machinery, Energy & Transportation (ME&T) – The company defines ME&T as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. ME&T’s information relates to the design, manufacturing and marketing of its products.
Financial Products – The company defines Financial Products as it is presented in the supplemental data as its finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products’ information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment.
Consolidating Adjustments – Eliminations of transactions between ME&T and Financial Products.
The nature of the ME&T and Financial Products businesses is different, especially with regard to the financial position and cash flow items. Caterpillar management utilizes this presentation internally to highlight these differences. The company believes this presentation will assist readers in understanding its business.
Pages 16 to 26 reconcile ME&T and Financial Products to Caterpillar Inc. consolidated financial information.
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Caterpillar Inc.
Condensed Consolidated Statement of Results of Operations
(Unaudited)
(Dollars in millions except per share data)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Sales and revenues:  
Sales of Machinery, Energy & Transportation$15,840 $16,545 $30,800 $31,644 
Revenues of Financial Products849 773 1,688 1,536 
Total sales and revenues16,689 17,318 32,488 33,180 
Operating costs:  
Cost of goods sold10,150 11,065 19,812 21,168 
Selling, general and administrative expenses1,652 1,528 3,229 2,991 
Research and development expenses535 528 1,055 1,000 
Interest expense of Financial Products314 245 612 462 
Other operating (income) expenses556 300 779 1,176 
Total operating costs13,207 13,666 25,487 26,797 
Operating profit3,482 3,652 7,001 6,383 
Interest expense excluding Financial Products137 127 280 256 
Other income (expense)155 127 311 159 
Consolidated profit before taxes3,500 3,652 7,032 6,286 
Provision (benefit) for income taxes836 752 1,524 1,460 
Profit of consolidated companies2,664 2,900 5,508 4,826 
Equity in profit (loss) of unconsolidated affiliated companies17 24 27 40 
Profit of consolidated and affiliated companies2,681 2,924 5,535 4,866 
Less: Profit (loss) attributable to noncontrolling interests— (2)
Profit 1
$2,681 $2,922 $5,537 $4,865 
Profit per common share$5.50 $5.70 $11.28 $9.46 
Profit per common share — diluted 2
$5.48 $5.67 $11.23 $9.41 
Weighted-average common shares outstanding (millions)  
– Basic487.2 512.9 490.7 514.3 
– Diluted 2
489.5 515.0 493.3 517.1 
1Profit attributable to common shareholders.
2Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
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17

Caterpillar Inc.
Condensed Consolidated Statement of Financial Position
(Unaudited)
(Millions of dollars)
June 30,
2024
December 31,
2023
Assets  
Current assets: 
Cash and cash equivalents$4,341 $6,978 
Receivables – trade and other9,421 9,310 
Receivables – finance9,516 9,510 
Prepaid expenses and other current assets2,736 4,586 
Inventories17,082 16,565 
Total current assets43,096 46,949 
Property, plant and equipment – net12,582 12,680 
Long-term receivables – trade and other1,181 1,238 
Long-term receivables – finance12,797 12,664 
Noncurrent deferred and refundable income taxes2,920 2,816 
Intangible assets488 564 
Goodwill5,264 5,308 
Other assets5,008 5,257 
Total assets$83,336 $87,476 
Liabilities 
Current liabilities: 
Short-term borrowings: 
-- Machinery, Energy & Transportation$— $— 
-- Financial Products5,298 4,643 
Accounts payable7,575 7,906 
Accrued expenses4,947 4,958 
Accrued wages, salaries and employee benefits1,677 2,757 
Customer advances2,324 1,929 
Dividends payable684 649 
Other current liabilities2,882 3,123 
Long-term debt due within one year:  
-- Machinery, Energy & Transportation45 1,044 
-- Financial Products8,132 7,719 
Total current liabilities33,564 34,728 
Long-term debt due after one year: 
-- Machinery, Energy & Transportation8,537 8,579 
-- Financial Products15,299 15,893 
Liability for postemployment benefits3,993 4,098 
Other liabilities4,807 4,675 
Total liabilities66,200 67,973 
Shareholders’ equity 
Common stock5,517 6,403 
Treasury stock(41,612)(36,339)
Profit employed in the business55,455 51,250 
Accumulated other comprehensive income (loss)(2,230)(1,820)
Noncontrolling interests
Total shareholders’ equity17,136 19,503 
Total liabilities and shareholders’ equity$83,336 $87,476 

(more)



18

Caterpillar Inc.
Condensed Consolidated Statement of Cash Flow
(Unaudited)
(Millions of dollars)
Six Months Ended
June 30,
20242023
Cash flow from operating activities:  
Profit of consolidated and affiliated companies$5,535 $4,866 
Adjustments to reconcile profit to net cash provided by operating activities:  
Depreciation and amortization1,055 1,074 
Provision (benefit) for deferred income taxes(133)(355)
(Gain) loss on divestiture164 572 
Other105 106 
Changes in assets and liabilities, net of acquisitions and divestitures:  
Receivables – trade and other(245)(465)
Inventories(643)(1,560)
Accounts payable(21)34 
Accrued expenses69 381 
Accrued wages, salaries and employee benefits(1,056)(562)
Customer advances341 284 
Other assets – net20 81 
Other liabilities – net(118)366 
Net cash provided by (used for) operating activities5,073 4,822 
Cash flow from investing activities: 
Capital expenditures – excluding equipment leased to others(841)(683)
Expenditures for equipment leased to others(614)(774)
Proceeds from disposals of leased assets and property, plant and equipment342 368 
Additions to finance receivables(7,446)(6,973)
Collections of finance receivables6,743 6,759 
Proceeds from sale of finance receivables37 29 
Investments and acquisitions (net of cash acquired)(32)(20)
Proceeds from sale of businesses and investments (net of cash sold)(61)(14)
Proceeds from maturities and sale of securities2,574 463 
Investments in securities(523)(1,078)
Other – net57 41 
Net cash provided by (used for) investing activities236 (1,882)
Cash flow from financing activities: 
Dividends paid(1,283)(1,238)
Common stock issued, including treasury shares reissued(22)
Payments to purchase common stock(6,275)(1,829)
Proceeds from debt issued (original maturities greater than three months)4,151 3,299 
Payments on debt (original maturities greater than three months)(5,217)(2,303)
Short-term borrowings – net (original maturities three months or less)687 (406)
Net cash provided by (used for) financing activities(7,929)(2,499)
Effect of exchange rate changes on cash(17)(60)
Increase (decrease) in cash, cash equivalents and restricted cash(2,637)381 
Cash, cash equivalents and restricted cash at beginning of period6,985 7,013 
Cash, cash equivalents and restricted cash at end of period$4,348 $7,394 
Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less.

(more)



19

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended June 30, 2024
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & TransportationFinancial
Products
Consolidating
Adjustments
Sales and revenues:    
Sales of Machinery, Energy & Transportation$15,840 $15,840 $— $— 
Revenues of Financial Products849 — 1,043 (194)1
Total sales and revenues16,689 15,840 1,043 (194)
Operating costs:    
Cost of goods sold10,150 10,152 — (2)2
Selling, general and administrative expenses1,652 1,449 185 18 2
Research and development expenses535 535 — — 
Interest expense of Financial Products314 — 314 — 
Other operating (income) expenses556 43 560 (47)2
Total operating costs13,207 12,179 1,059 (31)
Operating profit3,482 3,661 (16)(163)
Interest expense excluding Financial Products137 137 — — 
Other income (expense)155 (21)13 163 3
Consolidated profit before taxes3,500 3,503 (3)— 
Provision (benefit) for income taxes836 786 50 — 
Profit of consolidated companies2,664 2,717 (53)— 
Equity in profit (loss) of unconsolidated affiliated companies17 17 — — 
Profit of consolidated and affiliated companies2,681 2,734 (53)— 
Less: Profit (loss) attributable to noncontrolling interests— — — — 
Profit 4
$2,681 $2,734 $(53)$— 
1
Elimination of Financial Products’ revenues earned from ME&T.
2
Elimination of net expenses recorded between ME&T and Financial Products.
3
Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.
4Profit attributable to common shareholders.





(more)



20

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended June 30, 2023
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & TransportationFinancial
Products
Consolidating
Adjustments
Sales and revenues:    
Sales of Machinery, Energy & Transportation$16,545 $16,545 $— $— 
Revenues of Financial Products773 — 955 (182)1
Total sales and revenues17,318 16,545 955 (182)
Operating costs:    
Cost of goods sold11,065 11,068 — (3)2
Selling, general and administrative expenses1,528 1,389 143 (4)2
Research and development expenses528 528 — — 
Interest expense of Financial Products245 — 245 — 
Other operating (income) expenses300 10 310 (20)2
Total operating costs13,666 12,995 698 (27)
Operating profit3,652 3,550 257 (155)
Interest expense excluding Financial Products127 127 — — 
Other income (expense)127 (10)(18)155 3
Consolidated profit before taxes3,652 3,413 239 — 
Provision (benefit) for income taxes752 691 61 — 
Profit of consolidated companies2,900 2,722 178 — 
Equity in profit (loss) of unconsolidated affiliated companies24 24 — — 
Profit of consolidated and affiliated companies2,924 2,746 178 — 
Less: Profit (loss) attributable to noncontrolling interests(1)— 
Profit 4
$2,922 $2,747 $175 $— 
1
Elimination of Financial Products’ revenues earned from ME&T.
2
Elimination of net expenses recorded by ME&T paid to Financial Products.
3
Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.
4Profit attributable to common shareholders.
(more)



21

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Six Months Ended June 30, 2024
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & Transportation Financial
Products
Consolidating
Adjustments
Sales and revenues:    
Sales of Machinery, Energy & Transportation$30,800 $30,800 $— $— 
Revenues of Financial Products1,688 — 2,072 (384)1
Total sales and revenues32,488 30,800 2,072 (384)
Operating costs:    
Cost of goods sold19,812 19,816 — (4)2
Selling, general and administrative expenses3,229 2,862 363 2
Research and development expenses1,055 1,055 — — 
Interest expense of Financial Products612 — 612 — 
Other operating (income) expenses779 845 (68)2
Total operating costs25,487 23,735 1,820 (68)
Operating profit7,001 7,065 252 (316)
Interest expense excluding Financial Products280 280 — — 
Other income (expense)311 (41)36 316 3
Consolidated profit before taxes7,032 6,744 288 — 
Provision (benefit) for income taxes1,524 1,401 123 — 
Profit of consolidated companies5,508 5,343 165 — 
Equity in profit (loss) of unconsolidated affiliated companies27 27 — — 
Profit of consolidated and affiliated companies5,535 5,370 165 — 
Less: Profit (loss) attributable to noncontrolling interests(2)(3)— 
Profit 4
$5,537 $5,373 $164 $— 
1
Elimination of Financial Products’ revenues earned from ME&T.
2
Elimination of net expenses recorded between ME&T and Financial Products.
3
Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.
4Profit attributable to common shareholders.



(more)



22

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Six Months Ended June 30, 2023
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & Transportation Financial
Products
Consolidating
Adjustments
Sales and revenues:    
Sales of Machinery, Energy & Transportation$31,644 $31,644 $— $— 
Revenues of Financial Products1,536 — 1,890 (354)1
Total sales and revenues33,180 31,644 1,890 (354)
Operating costs:
Cost of goods sold21,168 21,172 — (4)2
Selling, general and administrative expenses2,991 2,709 301 (19)2
Research and development expenses1,000 1,000 — — 
Interest expense of Financial Products462 — 462 — 
Other operating (income) expenses1,176 599 613 (36)2
Total operating costs26,797 25,480 1,376 (59)
Operating profit6,383 6,164 514 (295)
Interest expense excluding Financial Products256 256 — — 
Other income (expense)159 (24)(37)220 3
Consolidated profit before taxes6,286 5,884 477 (75)
Provision (benefit) for income taxes1,460 1,339 121 — 
Profit of consolidated companies4,826 4,545 356 (75)
Equity in profit (loss) of unconsolidated affiliated companies40 43 — (3)4
Profit of consolidated and affiliated companies4,866 4,588 356 (78)
Less: Profit (loss) attributable to noncontrolling interests(1)(3)5
Profit 6
$4,865 $4,589 $351 $(75)
1
Elimination of Financial Products’ revenues earned from ME&T.
2
Elimination of net expenses recorded by ME&T paid to Financial Products.
3
Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.
4
Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries.
5
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.
6Profit attributable to common shareholders.
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23

Caterpillar Inc.
Supplemental Data for Financial Position
At June 30, 2024
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery,
Energy &
Transportation
Financial
Products
Consolidating
Adjustments
Assets    
Current assets:    
Cash and cash equivalents$4,341 $3,481 $860 $— 
Receivables – trade and other9,421 3,672 643 5,106 
1,2
Receivables – finance9,516 — 14,826 (5,310)2
Prepaid expenses and other current assets2,736 2,549 390 (203)3
Inventories17,082 17,082 — — 
Total current assets43,096 26,784 16,719 (407)
Property, plant and equipment – net12,582 8,653 3,929 — 
Long-term receivables – trade and other1,181 501 55 625 
1,2
Long-term receivables – finance12,797 — 13,490 (693)2
Noncurrent deferred and refundable income taxes2,920 3,433 120 (633)4
Intangible assets488 488 — — 
Goodwill5,264 5,264 — — 
Other assets5,008 3,934 2,112 (1,038)5
Total assets$83,336 $49,057 $36,425 $(2,146)
Liabilities    
Current liabilities:    
Short-term borrowings$5,298 $— $5,298 $— 
Accounts payable7,575 7,523 274 (222)6,7
Accrued expenses4,947 4,315 632 — 
Accrued wages, salaries and employee benefits1,677 1,637 40 — 
Customer advances2,324 2,303 18 7
Dividends payable684 684 — — 
Other current liabilities2,882 2,365 744 (227)
4,8
Long-term debt due within one year8,177 45 8,132 — 
Total current liabilities33,564 18,872 15,123 (431)
Long-term debt due after one year23,836 8,605 15,299 (68)9
Liability for postemployment benefits3,993 3,993 — — 
Other liabilities4,807 3,931 1,550 (674)4
Total liabilities66,200 35,401 31,972 (1,173)
    
Shareholders’ equity    
Common stock5,517 5,517 905 (905)10
Treasury stock(41,612)(41,612)— — 
Profit employed in the business55,455 50,824 4,621 10 10
Accumulated other comprehensive income (loss)(2,230)(1,082)(1,148)— 
Noncontrolling interests75 (78)10
Total shareholders’ equity17,136 13,656 4,453 (973)
Total liabilities and shareholders’ equity$83,336 $49,057 $36,425 $(2,146)
1
Elimination of receivables between ME&T and Financial Products.
2
Reclassification of ME&T’s trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables.
3Elimination of ME&T's insurance premiums that are prepaid to Financial Products.
4
Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.
5
Elimination of other intercompany assets between ME&T and Financial Products.
6
Elimination of payables between ME&T and Financial Products.
7Reclassification of Financial Products' payables to customer advances.
8Elimination of prepaid insurance in Financial Products’ other liabilities.
9
Elimination of debt between ME&T and Financial Products.
10
Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries.
(more)



24

Caterpillar Inc.
Supplemental Data for Financial Position
At December 31, 2023
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery,
Energy &
Transportation
Financial
Products
Consolidating
Adjustments
Assets    
Current assets:    
Cash and cash equivalents$6,978 $6,106 $872 $— 
Receivables – trade and other9,310 3,971 570 4,769 
1,2
Receivables – finance9,510 — 14,499 (4,989)2
Prepaid expenses and other current assets4,586 4,327 341 (82)3
Inventories16,565 16,565 — — 
Total current assets46,949 30,969 16,282 (302)
Property, plant and equipment – net12,680 8,694 3,986 — 
Long-term receivables – trade and other1,238 565 85 588 
1,2
Long-term receivables – finance12,664 — 13,299 (635)2
Noncurrent deferred and refundable income taxes2,816 3,360 148 (692)4
Intangible assets564 564 — — 
Goodwill5,308 5,308 — — 
Other assets5,257 4,218 2,082 (1,043)5
Total assets$87,476 $53,678 $35,882 $(2,084)
Liabilities    
Current liabilities:    
Short-term borrowings$4,643 $— $4,643 $— 
Accounts payable7,906 7,827 314 (235)6,7
Accrued expenses4,958 4,361 597 — 
Accrued wages, salaries and employee benefits2,757 2,696 61 — 
Customer advances1,929 1,912 15 7
Dividends payable649 649 — — 
Other current liabilities3,123 2,583 647 (107)
4,8
Long-term debt due within one year8,763 1,044 7,719 — 
Total current liabilities34,728 21,072 13,983 (327)
Long-term debt due after one year24,472 8,626 15,893 (47)9
Liability for postemployment benefits4,098 4,098 — — 
Other liabilities4,675 3,806 1,607 (738)4
Total liabilities67,973 37,602 31,483 (1,112)
    
Shareholders’ equity    
Common stock6,403 6,403 905 (905)10
Treasury stock(36,339)(36,339)— — 
Profit employed in the business51,250 46,783 4,457 10 10
Accumulated other comprehensive income (loss)(1,820)(783)(1,037)— 
Noncontrolling interests12 74 (77)10
Total shareholders’ equity19,503 16,076 4,399 (972)
Total liabilities and shareholders’ equity$87,476 $53,678 $35,882 $(2,084)
1
Elimination of receivables between ME&T and Financial Products.
2
Reclassification of ME&T’s trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables.
3Elimination of ME&T’s insurance premiums that are prepaid to Financial Products.
4
Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.
5
Elimination of other intercompany assets between ME&T and Financial Products.
6Elimination of payables between ME&T and Financial Products.
7Reclassification of Financial Products' payables to customer advances.
8
Elimination of prepaid insurance in Financial Products’ other liabilities.
9Elimination of debt between ME&T and Financial Products.
10
Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries.
(more)



25

Caterpillar Inc.
Supplemental Data for Cash Flow
For the Six Months Ended June 30, 2024
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & TransportationFinancial
Products
Consolidating
Adjustments
Cash flow from operating activities:    
Profit of consolidated and affiliated companies$5,535 $5,370 $165 $— 
Adjustments to reconcile profit to net cash provided by operating activities:    
Depreciation and amortization1,055 662 393 — 
Provision (benefit) for deferred income taxes(133)(81)(52)— 
(Gain) loss on divestiture164 (46)210 — 
Other105 104 (280)281 1
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other(245)195 96 (536)
1,2
Inventories(643)(638)— (5)1
Accounts payable(21)(58)31 1
Accrued expenses69 (41)110 — 
Accrued wages, salaries and employee benefits(1,056)(1,035)(21)— 
Customer advances341 341 — — 
Other assets – net20 (108)123 1
Other liabilities – net(118)(156)147 (109)1
Net cash provided by (used for) operating activities5,073 4,573 715 (215)
Cash flow from investing activities:    
Capital expenditures – excluding equipment leased to others(841)(831)(13)1
Expenditures for equipment leased to others(614)(10)(612)1
Proceeds from disposals of leased assets and property, plant and equipment342 13 335 (6)1
Additions to finance receivables(7,446)— (7,951)505 2
Collections of finance receivables6,743 — 7,176 (433)2
Net intercompany purchased receivables— — (138)138 2
Proceeds from sale of finance receivables37 — 37 — 
Net intercompany borrowings— — (9)3
Investments and acquisitions (net of cash acquired)(32)(32)— — 
Proceeds from sale of businesses and investments (net of cash sold)(61)92 (153)— 
Proceeds from maturities and sale of securities2,574 2,402 172 — 
Investments in securities(523)(300)(223)— 
Other – net57 47 10 — 
Net cash provided by (used for) investing activities236 1,381 (1,351)206 
Cash flow from financing activities:    
Dividends paid(1,283)(1,283)— — 
Common stock issued, including treasury shares reissued— — 
Payments to purchase common stock(6,275)(6,275)— — 
Net intercompany borrowings— (9)— 3
Proceeds from debt issued (original maturities greater than three months)4,151 — 4,151 — 
Payments on debt (original maturities greater than three months)(5,217)(1,014)(4,203)— 
Short-term borrowings – net (original maturities three months or less)687 — 687 — 
Net cash provided by (used for) financing activities(7,929)(8,573)635 
Effect of exchange rate changes on cash(17)(7)(10)— 
Increase (decrease) in cash, cash equivalents and restricted cash(2,637)(2,626)(11)— 
Cash, cash equivalents and restricted cash at beginning of period6,985 6,111 874 — 
Cash, cash equivalents and restricted cash at end of period$4,348 $3,485 $863 $— 
1Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.
2Reclassification of Financial Products’ cash flow activity from investing to operating for receivables that arose from the sale of inventory.
3Elimination of net proceeds and payments to/from ME&T and Financial Products.
(more)



26

Caterpillar Inc.
Supplemental Data for Cash Flow
For the Six Months Ended June 30, 2023
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & TransportationFinancial
Products
Consolidating
Adjustments
Cash flow from operating activities:    
Profit of consolidated and affiliated companies$4,866 $4,588 $356 $(78)1,5
Adjustments to reconcile profit to net cash provided by operating activities:
Depreciation and amortization1,074 690 384 — 
Provision (benefit) for deferred income taxes(355)(338)(17)— 
(Gain) loss on divestiture572 572 — — 
Other106 198 (368)276 2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other(465)132 57 (654)
2,3
Inventories(1,560)(1,558)— (2)2
Accounts payable34 (28)60 2
Accrued expenses381 318 63 — 
Accrued wages, salaries and employee benefits(562)(550)(12)— 
Customer advances284 283 — 
Other assets – net81 149 (73)2
Other liabilities – net366 211 71 84 2
Net cash provided by (used for) operating activities4,822 4,667 542 (387)
Cash flow from investing activities: 
Capital expenditures – excluding equipment leased to others(683)(678)(11)2
Expenditures for equipment leased to others(774)(7)(772)2
Proceeds from disposals of leased assets and property, plant and equipment368 27 350 (9)2
Additions to finance receivables(6,973)— (7,957)984 3
Collections of finance receivables6,759 — 7,516 (757)3
Net intercompany purchased receivables— — (83)83 3
Proceeds from sale of finance receivables29 — 29 — 
Net intercompany borrowings— — (4)4
Investments and acquisitions (net of cash acquired)(20)(20)— — 
Proceeds from sale of businesses and investments (net of cash sold)(14)(14)— — 
Proceeds from sale of securities463 332 131 — 
Investments in securities(1,078)(866)(212)— 
Other – net41 41 — — 
Net cash provided by (used for) investing activities(1,882)(1,185)(1,005)308 
Cash flow from financing activities:
Dividends paid(1,238)(1,238)(75)75 5
Common stock issued, including treasury shares reissued(22)(22)— — 
Payments to purchase common stock(1,829)(1,829)— — 
Net intercompany borrowings— (4)— 4
Proceeds from debt issued (original maturities greater than three months)3,299 — 3,299 — 
Payments on debt (original maturities greater than three months)(2,303)(95)(2,208)— 
Short-term borrowings – net (original maturities three months or less)(406)(3)(403)— 
Net cash provided by (used for) financing activities(2,499)(3,191)613 79 
Effect of exchange rate changes on cash(60)(12)(48)— 
Increase (decrease) in cash, cash equivalents and restricted cash381 279 102 — 
Cash, cash equivalents and restricted cash at beginning of period7,013 6,049 964 — 
Cash, cash equivalents and restricted cash at end of period$7,394 $6,328 $1,066 $— 
1Elimination of equity profit earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.
2Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.
3Reclassification of Financial Products’ cash flow activity from investing to operating for receivables that arose from the sale of inventory.
4Elimination of net proceeds and payments to/from ME&T and Financial Products.
5Elimination of dividend activity between Financial Products and ME&T.
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