0000018230false00000182302024-02-042024-02-040000018230us-gaap:CommonStockMember2024-02-042024-02-040000018230cat:A5.3DebenturesDueSeptember152035Member2024-02-042024-02-04

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
caterpillarlogo.jpg
FORM8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):February 5, 2024
CATERPILLAR INC.
(Exact name of registrant as specified in its charter)
Delaware1-76837-0602744
(State or other jurisdiction of incorporation)
 (Commission File Number)
 (I.R.S Employer Identification No.)
5205 N. O'Connor Blvd.Suite 100,Irving,Texas75039
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code:(972) 891-7700
Former name or former address, if changed since last report:N/A
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:


Title of each classTrading Symbol (s)Name of each exchange which registered
Common Stock ($1.00 par value)CATThe New York Stock Exchange
5.3% Debentures due September 15, 2035CAT35The New York Stock Exchange
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined by Rule 405 of the Securities Act of
1933 (17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐





Item 2.02. Results of Operations and Financial Condition.

On February 5, 2024, Caterpillar Inc. issued a press release reporting its financial results for the quarter ended December 31, 2023. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated into this Item 2.02 by reference.

Item 7.01. Regulation FD Disclosure.

Caterpillar Inc. is furnishing supplemental information concerning (i) retail sales of machines to end users and (ii) retail sales of power systems (including reciprocating and turbine engines and locomotives) to end users and Original Equipment Manufacturers ("OEMs"). This supplemental information is attached hereto as Exhibit 99.2 and incorporated into this Item 7.01 by reference.

The information in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished in accordance with the provisions of General Instruction B.2 of Form 8-K.

Item 9.01. Financial Statements and Exhibits.
(d)Exhibits:
The following is furnished as an exhibit to this report:
99.1
99.2
104The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.





























 SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CATERPILLAR INC.
February 5, 2024By:/s/ Derek Owens
Derek Owens
Chief Legal Officer and General Counsel



Exhibit 99.1
Caterpillar Inc.                                     
4Q 2023 Earnings Release



FOR IMMEDIATE RELEASE
Caterpillar Reports Fourth-Quarter and Full-Year 2023 Results
●
Fourth-quarter 2023 sales and revenues up 3%; full-year sales and revenues up 13%
●
Fourth-quarter 2023 profit per share of $5.28; adjusted profit per share of $5.23
●
Full-year profit per share of $20.12; adjusted profit per share of $21.21
●
Strong operating cash flow of $12.9 billion; ended the year with $7.0 billion of enterprise cash
●
Returned $7.5 billion to shareholders through share repurchases and dividends in 2023
Fourth QuarterFull Year
($ in billions except profit per share)2023202220232022
Sales and Revenues$17.1$16.6$67.1$59.4
Profit Per Share$5.28$2.79$20.12$12.64
Adjusted Profit Per Share$5.23$3.86$21.21$13.84
IRVING, Texas, Feb. 5, 2024 – Caterpillar Inc. (NYSE: CAT) announced fourth-quarter and full-year results for 2023.
Sales and revenues for the fourth quarter of 2023 were $17.1 billion, a 3% increase compared with $16.6 billion in the fourth quarter of 2022. Operating profit margin was 18.4% for the fourth quarter of 2023, compared with 10.1% for the fourth quarter of 2022. Adjusted operating profit margin was 18.9% for the fourth quarter of 2023, compared with 17.0% for the fourth quarter of 2022. Fourth-quarter 2023 profit per share was $5.28, compared with $2.79 profit per share in the fourth quarter of 2022. Adjusted profit per share in the fourth quarter of 2023 was $5.23, compared with fourth-quarter 2022 adjusted profit per share of $3.86.
Full-year sales and revenues in 2023 were $67.1 billion, up 13% compared with $59.4 billion in 2022. The increase reflected favorable price realization and higher sales volume, driven by higher sales of equipment to end users, partially offset by the impact from changes in dealer inventories. Operating profit margin was 19.3% in 2023, compared with 13.3% in 2022. Adjusted operating profit margin was 20.5% in 2023, compared with 15.4% in 2022. Full-year profit was $20.12 per share in 2023, compared with profit of $12.64 per share in 2022. Adjusted profit per share in 2023 was $21.21, compared with adjusted profit per share of $13.84 in 2022.
“I'm very proud of our global team's strong performance as they achieved the best year in our 98-year history, including record full-year sales and revenues, record adjusted profit per share and record ME&T free cash flow,” said Caterpillar Chairman and CEO Jim Umpleby. “We remain committed to serving our customers, executing our strategy and investing for long-term profitable growth.”
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In 2023, adjusted operating profit margin and adjusted profit per share excluded restructuring costs, which included the impact of the divestiture of the company's Longwall business and other restructuring costs. 2023 adjusted profit per share also excluded a benefit for certain deferred tax valuation allowance adjustments and mark-to-market gains for remeasurement of pension and other postemployment benefit (OPEB) plans. In 2022, adjusted operating profit margin and adjusted profit per share excluded a goodwill impairment charge and restructuring costs related to the Rail division and other restructuring costs. 2022 adjusted profit per share also excluded mark-to-market gains for remeasurement of pension and OPEB plans. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 13.
For the full year of 2023, enterprise operating cash flow was $12.9 billion. During the year, the company repurchased $5.0 billion of Caterpillar common stock and paid dividends of $2.6 billion. Liquidity remained strong with an enterprise cash balance of $7.0 billion at the end of 2023.



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CONSOLIDATED RESULTS
Consolidated Sales and Revenues
sr_4q2023qtrchart.jpg
The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the fourth quarter of 2022 (at left) and the fourth quarter of 2023 (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 fourth quarter of 2023 were $17.070 billion, an increase of $473 million, or 3%, compared with $16.597 billion in the fourth quarter of 2022. The increase was due to favorable price realization, higher Financial Products' segment revenues and favorable currency impacts primarily related to the euro, partially offset by lower sales volume. The decrease in sales volume was driven by the impact from changes in dealer inventories, partially offset by higher sales of equipment to end users. Dealer inventory decreased by $900 million during the fourth quarter of 2023, compared with an increase of $700 million during the fourth quarter of 2022.
In the three primary segments, sales were higher in Energy & Transportation and lower in Construction Industries and Resource Industries.
Sales and Revenues by Segment
(Millions of dollars)Fourth Quarter 2022Sales
Volume		Price
Realization		CurrencyInter-Segment / OtherFourth Quarter 2023$
Change		%
Change
Construction Industries$6,845 $(809)$445 $38 $— $6,519 $(326)(5%)
Resource Industries3,436 (440)239 8 (1)3,242 (194)(6%)
Energy & Transportation6,823 561 305 54 (74)7,669 846 12%
All Other Segment111 5 (7)1 6 116 5 5%
Corporate Items and Eliminations(1,344)(38)— 4 69 (1,309)35  
Machinery, Energy & Transportation15,871 (721)982 105 — 16,237 366 2%
Financial Products Segment853 — — — 128 981 128 15%
Corporate Items and Eliminations(127)— — — (21)(148)(21) 
Financial Products Revenues726 — — — 107 833 107 15%
Consolidated Sales and Revenues$16,597 $(721)$982 $105 $107 $17,070 $473 3%
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Sales and Revenues by Geographic Region
North AmericaLatin AmericaEAMEAsia/PacificExternal Sales and RevenuesInter-SegmentTotal Sales and Revenues
(Millions of dollars)$% Chg$% Chg$% Chg$% Chg$% Chg$% Chg$% Chg
Fourth Quarter 2023          
Construction Industries$3,689 4%$587 (25%)$1,129 (18%)$1,083 (4%)$6,488 (5%)$31 —%$6,519 (5%)
Resource Industries1,240 (9%)529 5%445 (25%)939 6%3,153 (6%)89 (1%)3,242 (6%)
Energy & Transportation3,324 31%684 10%1,638 5%942 (1%)6,588 16%1,081 (6%)7,669 12%
All Other Segment15 25%— (100%)5 106%12 (88%)32 (3%)84 8%116 5%
Corporate Items and Eliminations(18)(2)(2)(2)(24)(1,285)(1,309)
Machinery, Energy & Transportation 8,250 11%1,798 (6%)3,215 (7%)2,974 (3%)16,237 2%— —%16,237 2%
Financial Products Segment645 18%100 2%127 23%109 5%981 15%—%981 15%
Corporate Items and Eliminations(88)(17)(22)(21)(148)(148)
Financial Products Revenues557 17%83 6%105 21%88 2%833 15%— —%833 15%
Consolidated Sales and Revenues$8,807 11%$1,881 (5%)$3,320 (6%)$3,062 (3%)$17,070 3%$— —%$17,070 3%
Fourth Quarter 2022              
Construction Industries$3,535 $782 $1,373 $1,124  $6,814 $31 $6,845 
Resource Industries1,364 503 596 883  3,346 90 3,436 
Energy & Transportation2,538 624 1,553 953  5,668 1,155 6,823 
All Other Segment12 2 (80)99  33 78 111 
Corporate Items and Eliminations14 — (3)(1)10 (1,354)(1,344)
Machinery, Energy & Transportation7,463  1,911  3,439  3,058  15,871  —  15,871  
Financial Products Segment548 98 103 104  853 — 853 
Corporate Items and Eliminations(73)(20)(16)(18) (127)— (127)
Financial Products Revenues475  78  87  86  726  —  726  
Consolidated Sales and Revenues$7,938  $1,989  $3,526  $3,144  $16,597  $—  $16,597  

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Consolidated Operating Profit
profit_4q2023qtrchart.jpg
The chart above graphically illustrates reasons for the change in consolidated operating profit between the fourth quarter of 2022 (at left) and the fourth quarter of 2023 (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 fourth quarter of 2023 was $3.134 billion, an increase of $1.454 billion, or 87%, compared with $1.680 billion in the fourth quarter of 2022. The increase was primarily due to favorable price realization and the absence of a 2022 goodwill impairment charge related to the Rail division, partially offset by higher selling, general and administrative (SG&A) and research and development (R&D) expenses. The increase in SG&A/R&D expenses was primarily driven by higher short-term incentive compensation expense and investments aligned with strategic initiatives.
Operating profit margin was 18.4% for the fourth quarter of 2023, compared with 10.1% for the fourth quarter of 2022. Adjusted operating profit margin was 18.9% for the fourth quarter of 2023, compared with 17.0% for the fourth quarter of 2022. Operating profit margin was 19.3% for 2023, compared with 13.3% for 2022. Adjusted operating profit margin was 20.5% for 2023, compared with 15.4% for 2022.
Profit (Loss) by Segment
(Millions of dollars)Fourth Quarter 2023Fourth Quarter 2022$
Change
%
 Change
Construction Industries$1,535 $1,488 $47 3 %
Resource Industries600 605 (5)(1 %)
Energy & Transportation1,429 1,177 252 21 %
All Other Segment(24)(53)29 55 %
Corporate Items and Eliminations(438)(1,588)1,150  
Machinery, Energy & Transportation3,102 1,629 1,473 90 %
Financial Products Segment234 189 45 24 %
Corporate Items and Eliminations(46)(4)(42)
Financial Products188 185 3 2 %
Consolidating Adjustments(156)(134)(22)
Consolidated Operating Profit$3,134 $1,680 $1,454 87 %
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Other Profit/Loss and Tax Items
•Other income (expense) in the fourth quarter of 2023 was income of $241 million, compared with income of $536 million in the fourth quarter of 2022. The change was primarily driven by lower mark-to-market gains for remeasurement of pension and OPEB plans (see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 13) and unfavorable impacts from pension and OPEB plan costs, partially offset by favorable impacts from foreign currency exchange and higher investment and interest income.
•The provision for income taxes for the fourth quarter of 2023 reflected a global annual effective tax rate of 21.4%, excluding discrete items. The comparative tax rate for the fourth quarter of 2022 and full-year 2022 was 23.2%. The decrease from 2022 was primarily related to changes in the geographic mix of profits. In addition, the company recorded a $112 million benefit in the fourth quarter of 2023 for the change from the third-quarter estimated annual tax rate.

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CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
Fourth Quarter 2022Sales VolumePrice RealizationCurrencyInter-SegmentFourth Quarter 2023$
 Change		%
 Change
Total Sales$6,845 $(809)$445 $38 $— $6,519 $(326)(5 %)
Sales by Geographic Region
Fourth Quarter 2023Fourth Quarter 2022$
Change		%
Change
North America$3,689 $3,535 $154 4 %
Latin America587 782 (195)(25 %)
EAME1,129 1,373 (244)(18 %)
Asia/Pacific1,083 1,124 (41)(4 %)
External Sales6,488 6,814 (326)(5 %)
Inter-segment31 31 — — %
Total Sales$6,519 $6,845 $(326)(5 %)
Segment Profit
Fourth Quarter 2023Fourth Quarter 2022
Change		%
Change
Segment Profit$1,535 $1,488 $47 3 %
Segment Profit Margin23.5 %21.7 %1.8  pts
Construction Industries’ total sales were $6.519 billion in the fourth quarter of 2023, a decrease of $326 million, or 5%, compared with $6.845 billion in the fourth quarter of 2022. The decrease was due to lower sales volume, partially offset by favorable price realization. The decrease in sales volume was driven by the impact from changes in dealer inventories, partially offset by higher sales of equipment to end users. Dealer inventory decreased during the fourth quarter of 2023, compared with an increase during the fourth quarter of 2022.
•In North America, sales increased due to favorable price realization, partially offset by lower sales volume. Lower sales volume was driven by the impact from changes in dealer inventories, partially offset by higher sales of equipment to end users. Dealer inventory increased during the fourth quarter of 2022, compared with a decrease during the fourth quarter of 2023.
•Sales decreased in Latin America primarily due to lower sales volume. Lower sales volume was driven by the impact from changes in dealer inventories. Dealer inventory increased during the fourth quarter of 2022, compared with a decrease during the fourth quarter of 2023.
•In EAME, sales decreased primarily due to lower sales volume, partially offset by favorable price realization and favorable currency impacts primarily related to the euro. Lower sales volume was primarily due to the impact from changes in dealer inventories. Dealer inventory decreased more during the fourth quarter of 2023 than during the fourth quarter of 2022.
•Sales decreased in Asia/Pacific primarily due to lower sales volume. Decreased sales volume was driven by the impact from changes in dealer inventories, partially offset by higher aftermarket parts sales volume. Dealer inventory decreased more during the fourth quarter of 2023 than during the fourth quarter of 2022.
Construction Industries’ profit was $1.535 billion in the fourth quarter of 2023, an increase of $47 million, or 3%, compared with $1.488 billion in the fourth quarter of 2022. The increase was primarily due to favorable price realization, partially offset by the profit impact from lower sales volume.
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RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
Fourth Quarter 2022Sales VolumePrice RealizationCurrencyInter-SegmentFourth Quarter 2023$
 Change		%
 Change
Total Sales$3,436 $(440)$239 $8 $(1)$3,242 $(194)(6 %)
Sales by Geographic Region
Fourth Quarter 2023Fourth Quarter 2022$
Change		%
Change
North America$1,240 $1,364 $(124)(9 %)
Latin America529 503 26 5 %
EAME445 596 (151)(25 %)
Asia/Pacific939 883 56 6 %
External Sales3,153 3,346 (193)(6 %)
Inter-segment89 90 (1)(1 %)
Total Sales$3,242 $3,436 $(194)(6 %)
Segment Profit
Fourth Quarter 2023Fourth Quarter 2022
Change		%
Change
Segment Profit$600 $605 $(5)(1 %)
Segment Profit Margin18.5 %17.6 %0.9  pts
Resource Industries’ total sales were $3.242 billion in the fourth quarter of 2023, a decrease of $194 million, or 6%, compared with $3.436 billion in the fourth quarter of 2022. The decrease was primarily due to lower sales volume, partially offset by favorable price realization. The decrease in sales volume was driven by the impact from changes in dealer inventories and lower aftermarket parts sales volume. Dealer inventory increased during the fourth quarter of 2022, compared with a decrease during the fourth quarter of 2023.
Resource Industries’ profit was $600 million in the fourth quarter of 2023, a decrease of $5 million, or 1%, compared with $605 million in the fourth quarter of 2022. Favorable price realization and manufacturing costs were offset by lower sales volume, higher SG&A/R&D expenses and currency impacts. Favorable manufacturing costs largely reflected lower freight. The increase in SG&A/R&D expenses was primarily driven by higher short-term incentive compensation expense and investments aligned with strategic initiatives.
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ENERGY & TRANSPORTATION
(Millions of dollars)
Segment Sales
Fourth Quarter 2022Sales VolumePrice RealizationCurrencyInter-SegmentFourth Quarter 2023$
 Change		%
 Change
Total Sales$6,823 $561 $305 $54 $(74)$7,669 $846 12 %
Sales by Application
Fourth Quarter 2023Fourth Quarter 2022$
Change		%
Change
Oil and Gas$2,247 $1,827 $420 23 %
Power Generation1,835 1,422 413 29 %
Industrial1,078 1,131 (53)(5 %)
Transportation1,428 1,288 140 11 %
External Sales6,588 5,668 920 16 %
Inter-segment1,081 1,155 (74)(6 %)
Total Sales$7,669 $6,823 $846 12 %
Segment Profit
Fourth Quarter 2023Fourth Quarter 2022
Change		%
Change
Segment Profit$1,429 $1,177 $252 21 %
Segment Profit Margin18.6 %17.3 %1.3  pts
Energy & Transportation’s total sales were $7.669 billion in the fourth quarter of 2023, an increase of $846 million, or 12%, compared with $6.823 billion in the fourth quarter of 2022. Sales increased across all applications except Industrial. The increase in sales was primarily due to higher sales volume and favorable price realization.
•Oil and Gas – Sales increased for turbines and turbine-related services. Sales also increased in reciprocating engines used in well servicing and gas compression applications.
•Power Generation – Sales increased in large reciprocating engines, primarily data center applications.
•Industrial – Sales decreased primarily in EAME, partially offset by increased sales in Latin America and Asia/Pacific.
•Transportation – Sales increased in rail services and marine. International locomotive deliveries were also higher.
Energy & Transportation’s profit was $1.429 billion in the fourth quarter of 2023, an increase of $252 million, or 21%, compared with $1.177 billion in the fourth quarter of 2022. The increase was primarily due to favorable price realization and higher sales volume, partially offset by higher SG&A/R&D expenses, currency impacts and unfavorable manufacturing costs. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives and higher short-term incentive compensation expense. Unfavorable manufacturing costs reflected lower freight being more than offset by increased period manufacturing costs, higher material costs, unfavorable cost absorption and the impact of manufacturing inefficiencies. Cost absorption was unfavorable as inventory decreased more during the fourth quarter of 2023 than during the fourth quarter of 2022.

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FINANCIAL PRODUCTS SEGMENT
(Millions of dollars)
Revenues by Geographic Region
Fourth Quarter 2023Fourth Quarter 2022$
Change		%
Change
North America$645 $548 $97 18 %
Latin America100 98 2 2 %
EAME127 103 24 23 %
Asia/Pacific109 104 5 5 %
Total Revenues$981 $853 $128 15 %
Segment Profit
Fourth Quarter 2023Fourth Quarter 2022
Change		%
Change
Segment Profit$234 $189 $45 24 %
Financial Products’ segment revenues were $981 million in the fourth quarter of 2023, an increase of $128 million, or 15%, compared with $853 million in the fourth quarter of 2022. The increase was primarily due to higher average financing rates across all regions and higher average earning assets in North America.
Financial Products’ segment profit was $234 million in the fourth quarter of 2023, an increase of $45 million, or 24%, compared with $189 million in the fourth quarter of 2022. The increase was mainly due to lower provision for credit losses at Cat Financial, higher average earning assets and higher net yield on average earning assets. These favorable impacts were partially offset by an increase in SG&A expenses.
At the end of 2023, past dues at Cat Financial were 1.79%, compared with 1.89% at the end of 2022. Write-offs, net of recoveries, were $65 million for 2023, compared with $46 million for 2022. As of December 31, 2023, Cat Financial's allowance for credit losses totaled $331 million, or 1.18% of finance receivables, compared with $346 million, or 1.29% of finance receivables, at December 31, 2022.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $484 million in the fourth quarter of 2023, a decrease of $1.108 billion from the fourth quarter of 2022, primarily driven by the absence of a 2022 goodwill impairment charge related to the Rail division.

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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 Monday, Feb. 5, 2024.
iii.Information on non-GAAP financial measures is included in the appendix on page 13.
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 Monday, Feb. 5, 2024, to discuss its 2023 fourth-quarter and full-year 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 five 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 the company's Longwall business, (ii) other restructuring costs, (iii) pension and OPEB mark-to-market gains/losses resulting from plan remeasurements, (iv) certain deferred tax valuation allowance adjustments and (v) goodwill impairment in 2022. 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.
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 TaxesEffective Tax RateProfitProfit per Share
Three Months Ended December 31, 2023 - U.S. GAAP$3,134 18.4 %$3,249 $587 18.1 %$2,676 $5.28 
Restructuring costs92 0.5 %92 27 29.3 %65 0.13 
Pension/OPEB mark-to-market (gains) losses— — %(97)(26)26.8 %(71)(0.14)
Deferred tax valuation allowance adjustments— — %— 18 — %(18)(0.04)
Three Months Ended December 31, 2023 - Adjusted$3,226 18.9 %$3,244 $606 18.7 %$2,652 $5.23 
Three Months Ended December 31, 2022 - U.S. GAAP$1,680 10.1 %$2,099 $644 30.7 %$1,454 $2.79 
Goodwill impairment925 5.6 %925 36 3.9 %889 1.71 
Restructuring costs209 1.3 %209 59 28.2 %150 0.29 
Pension/OPEB mark-to-market (gains) losses— — %(606)(124)20.5 %(482)(0.93)
Three Months Ended December 31, 2022 - Adjusted$2,814 17.0 %$2,627 $615 23.4 %$2,011 $3.86 
Twelve Months Ended December 31, 2023 - U.S. GAAP$12,966 19.3 %$13,050 $2,781 21.3 %$10,335 $20.12 
Restructuring costs - Longwall divestiture586 0.9 %586 — — %586 1.14 
Other restructuring costs194 0.3 %194 48 25.0 %146 0.30 
Pension/OPEB mark-to-market (gains) losses— — %(97)(26)26.8 %(71)(0.14)
Deferred tax valuation allowance adjustments— — %— 106 — %(106)(0.21)
Twelve Months Ended December 31, 2023 - Adjusted$13,746 20.5 %$13,733 $2,909 21.2 %$10,890 $21.21 
Twelve Months Ended December 31, 2022 - U.S. GAAP$7,904 13.3 %$8,752 $2,067 23.6 %$6,705 $12.64 
Goodwill impairment925 1.6 %925 36 3.9 %889 1.68 
Restructuring costs299 0.5 %299 72 24.0 %227 0.43 
Pension/OPEB mark-to-market (gains) losses— — %(606)(124)20.5 %(482)(0.91)
Twelve Months Ended December 31, 2022 - Adjusted$9,128 15.4 %$9,370 $2,051 21.9 %$7,339 $13.84 
Supplemental Consolidating Data
The company is providing supplemental consolidating data for the purpose of additional analysis. The data has been grouped as follows:
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14

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 15 to 25 reconcile ME&T and Financial Products to Caterpillar Inc. consolidated financial information.
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15

Caterpillar Inc.
Condensed Consolidated Statement of Results of Operations
(Unaudited)
(Dollars in millions except per share data)
Three Months Ended December 31,Twelve Months Ended December 31,
2023202220232022
Sales and revenues:
Sales of Machinery, Energy & Transportation$16,237 $15,871 $63,869 $56,574 
Revenues of Financial Products833 726 3,191 2,853 
Total sales and revenues17,070 16,597 67,060 59,427 
Operating costs: 
Cost of goods sold11,016 11,614 42,767 41,350 
Selling, general and administrative expenses1,756 1,479 6,371 5,651 
Research and development expenses554 401 2,108 1,814 
Interest expense of Financial Products288 188 1,030 565 
Goodwill impairment charge— 925 — 925 
Other operating (income) expenses322 310 1,818 1,218 
Total operating costs13,936 14,917 54,094 51,523 
Operating profit3,134 1,680 12,966 7,904 
Interest expense excluding Financial Products126 117 511 443 
Other income (expense)241 536 595 1,291 
Consolidated profit before taxes3,249 2,099 13,050 8,752 
Provision (benefit) for income taxes587 644 2,781 2,067 
Profit of consolidated companies2,662 1,455 10,269 6,685 
Equity in profit (loss) of unconsolidated affiliated companies11 (1)63 19 
Profit of consolidated and affiliated companies2,673 1,454 10,332 6,704 
Less: Profit (loss) attributable to noncontrolling interests(3)— (3)(1)
Profit 1
$2,676 $1,454 $10,335 $6,705 
Profit per common share$5.31 $2.81 $20.24 $12.72 
Profit per common share — diluted 2
$5.28 $2.79 $20.12 $12.64 
Weighted-average common shares outstanding (millions)
– Basic504.4 517.4 510.6 526.9 
– Diluted 2
507.0 520.9 513.6 530.4 
1Profit attributable to common shareholders.
2Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
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16

Caterpillar Inc.
Condensed Consolidated Statement of Financial Position
(Unaudited)
(Millions of dollars)
December 31,
2023		December 31,
2022
Assets  
Current assets: 
Cash and cash equivalents$6,978 $7,004 
Receivables – trade and other9,310 8,856 
Receivables – finance9,510 9,013 
Prepaid expenses and other current assets4,586 2,642 
Inventories16,565 16,270 
Total current assets46,949 43,785 
Property, plant and equipment – net12,680 12,028 
Long-term receivables – trade and other1,238 1,265 
Long-term receivables – finance12,664 12,013 
Noncurrent deferred and refundable income taxes2,816 2,213 
Intangible assets564 758 
Goodwill5,308 5,288 
Other assets5,257 4,593 
Total assets$87,476 $81,943 
Liabilities 
Current liabilities: 
Short-term borrowings: 
-- Machinery, Energy & Transportation$— $3 
-- Financial Products4,643 5,954 
Accounts payable7,906 8,689 
Accrued expenses4,958 4,080 
Accrued wages, salaries and employee benefits2,757 2,313 
Customer advances1,929 1,860 
Dividends payable649 620 
Other current liabilities3,123 2,690 
Long-term debt due within one year:
-- Machinery, Energy & Transportation1,044 120 
-- Financial Products7,719 5,202 
Total current liabilities34,728 31,531 
Long-term debt due after one year: 
-- Machinery, Energy & Transportation8,579 9,498 
-- Financial Products15,893 16,216 
Liability for postemployment benefits4,098 4,203 
Other liabilities4,675 4,604 
Total liabilities67,973 66,052 
Shareholders’ equity 
Common stock6,403 6,560 
Treasury stock(36,339)(31,748)
Profit employed in the business51,250 43,514 
Accumulated other comprehensive income (loss)(1,820)(2,457)
Noncontrolling interests9 22 
Total shareholders’ equity19,503 15,891 
Total liabilities and shareholders’ equity$87,476 $81,943 

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17

Caterpillar Inc.
Condensed Consolidated Statement of Cash Flow
(Unaudited)
(Millions of dollars)
Twelve Months Ended
December 31,
20232022
Cash flow from operating activities:  
Profit of consolidated and affiliated companies$10,332 $6,704 
Adjustments for non-cash items:
Depreciation and amortization2,144 2,219 
Actuarial (gain) loss on pension and postretirement benefits(97)(606)
Provision (benefit) for deferred income taxes(592)(377)
Loss on divestiture572 — 
Goodwill impairment charge— 925 
Other375 701 
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other(437)(220)
Inventories(364)(2,589)
Accounts payable(754)798 
Accrued expenses796 317 
Accrued wages, salaries and employee benefits486 90 
Customer advances80 768 
Other assets – net(95)(210)
Other liabilities – net439 (754)
Net cash provided by (used for) operating activities12,885 7,766 
Cash flow from investing activities: 
Capital expenditures – excluding equipment leased to others(1,597)(1,296)
Expenditures for equipment leased to others(1,495)(1,303)
Proceeds from disposals of leased assets and property, plant and equipment781 830 
Additions to finance receivables(15,161)(13,239)
Collections of finance receivables14,034 13,177 
Proceeds from sale of finance receivables63 57 
Investments and acquisitions (net of cash acquired)(75)(88)
Proceeds from sale of businesses and investments (net of cash sold)(4)1 
Proceeds from maturities and sale of securities1,891 2,383 
Investments in securities(4,405)(3,077)
Other – net97 14 
Net cash provided by (used for) investing activities(5,871)(2,541)
Cash flow from financing activities: 
Dividends paid(2,563)(2,440)
Common stock issued, including treasury shares reissued12 51 
Common shares repurchased(4,975)(4,230)
Proceeds from debt issued (original maturities greater than three months)8,257 6,674 
Payments on debt (original maturities greater than three months)(6,318)(7,728)
Short-term borrowings – net (original maturities three months or less)(1,345)402 
Other – net— (10)
Net cash provided by (used for) financing activities(6,932)(7,281)
Effect of exchange rate changes on cash(110)(194)
Increase (decrease) in cash, cash equivalents and restricted cash(28)(2,250)
Cash, cash equivalents and restricted cash at beginning of period7,013 9,263 
Cash, cash equivalents and restricted cash at end of period$6,985 $7,013 
Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less.

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18

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended December 31, 2023
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 Consolidated
Machinery, Energy & Transportation
Financial
Products		Consolidating
Adjustments
Sales and revenues:    
Sales of Machinery, Energy & Transportation$16,237 $16,237 $— $— 
Revenues of Financial Products833 — 1,020 (187)1
Total sales and revenues17,070 16,237 1,020 (187)
Operating costs:
Cost of goods sold11,016 11,018 — (2)2
Selling, general and administrative expenses1,756 1,557 197 2 2
Research and development expenses554 554 — — 
Interest expense of Financial Products288 — 290 (2)2
Other operating (income) expenses322 6 345 (29)2
Total operating costs13,936 13,135 832 (31)
Operating profit3,134 3,102 188 (156)
Interest expense excluding Financial Products126 126 — — 
Other income (expense)241 322 33 (114)3
Consolidated profit before taxes3,249 3,298 221 (270)
Provision (benefit) for income taxes587 567 20 — 
Profit of consolidated companies2,662 2,731 201 (270)
Equity in profit (loss) of unconsolidated affiliated companies11 12 — (1)4
Profit of consolidated and affiliated companies2,673 2,743 201 (271)
Less: Profit (loss) attributable to noncontrolling interests(3)(2)— (1)5
Profit 6
$2,676 $2,745 $201 $(270)
1
Elimination of Financial Products’ revenues earned from ME&T.
2Elimination 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.
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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19

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended December 31, 2022
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & TransportationFinancial
Products		Consolidating
Adjustments
Sales and revenues:    
Sales of Machinery, Energy & Transportation$15,871 $15,871 $— $— 
Revenues of Financial Products726 — 883 (157)1
Total sales and revenues16,597 15,871 883 (157)
Operating costs:
Cost of goods sold11,614 11,615 — (1)2
Selling, general and administrative expenses1,479 1,285 197 (3)2
Research and development expenses401 401 — — 
Interest expense of Financial Products188 — 188 — 
Goodwill impairment charge925 925 — — 
Other operating (income) expenses310 16 313 (19)2
Total operating costs14,917 14,242 698 (23)
Operating profit1,680 1,629 185 (134)
Interest expense excluding Financial Products117 117 — — 
Other income (expense)536 877 — (341)3
Consolidated profit before taxes2,099 2,389 185 (475)
Provision (benefit) for income taxes644 608 36 — 
Profit of consolidated companies1,455 1,781 149 (475)
Equity in profit (loss) of unconsolidated affiliated companies(1)— — (1)4
Profit of consolidated and affiliated companies1,454 1,781 149 (476)
Less: Profit (loss) attributable to noncontrolling interests— — 1 (1)5
Profit 6
$1,454 $1,781 $148 $(475)
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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20

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Twelve Months Ended December 31, 2023
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & Transportation Financial
Products		Consolidating
Adjustments
Sales and revenues:    
Sales of Machinery, Energy & Transportation$63,869 $63,869 $— $— 
Revenues of Financial Products3,191 — 3,927 (736)1
Total sales and revenues67,060 63,869 3,927 (736)
Operating costs:
Cost of goods sold42,767 42,776 — (9)2
Selling, general and administrative expenses6,371 5,696 704 (29)2
Research and development expenses2,108 2,108 — — 
Interest expense of Financial Products1,030 — 1,032 (2)2
Other operating (income) expenses1,818 630 1,268 (80)2
Total operating costs54,094 51,210 3,004 (120)
Operating profit12,966 12,659 923 (616)
Interest expense excluding Financial Products511 511 — — 
Other income (expense)595 340 (16)271 3
Consolidated profit before taxes13,050 12,488 907 (345)
Provision (benefit) for income taxes2,781 2,560 221 — 
Profit of consolidated companies10,269 9,928 686 (345)
Equity in profit (loss) of unconsolidated affiliated companies63 67 — (4)4
Profit of consolidated and affiliated companies10,332 9,995 686 (349)
Less: Profit (loss) attributable to noncontrolling interests(3)(4)5 (4)5
Profit 6
$10,335 $9,999 $681 $(345)
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.
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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21

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Twelve Months Ended December 31, 2022
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & Transportation Financial
Products		Consolidating
Adjustments
Sales and revenues:    
Sales of Machinery, Energy & Transportation$56,574 $56,574 $— $— 
Revenues of Financial Products2,853 — 3,376 (523)1 
Total sales and revenues59,427 56,574 3,376 (523)
Operating costs:
Cost of goods sold41,350 41,356 — (6)2 
Selling, general and administrative expenses5,651 4,999 672 (20)2 
Research and development expenses1,814 1,814 — — 
Interest expense of Financial Products565 — 565 — 
Goodwill impairment charge925 925 — — 
Other operating (income) expenses1,218 47 1,249 (78)2 
Total operating costs51,523 49,141 2,486 (104)
Operating profit7,904 7,433 890 (419)
Interest expense excluding Financial Products443 444 — (1)3 
Other income (expense)1,291 1,374 (26)(57)4 
Consolidated profit before taxes8,752 8,363 864 (475)
Provision (benefit) for income taxes2,067 1,858 209 — 
Profit of consolidated companies6,685 6,505 655 (475)
Equity in profit (loss) of unconsolidated affiliated companies19 26 — (7)5 
Profit of consolidated and affiliated companies6,704 6,531 655 (482)
Less: Profit (loss) attributable to noncontrolling interests(1)(1)7 (7)6 
Profit 7
$6,705 $6,532 $648 $(475)
1
Elimination of Financial Products’ revenues earned from ME&T.
2
Elimination of net expenses recorded by ME&T paid to Financial Products.
3Elimination of interest expense recorded between Financial Products and ME&T.
4
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.
5
Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries.
6
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.
7Profit attributable to common shareholders.
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22

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 2 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 interests9 12 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.
6
Elimination of payables between ME&T and Financial Products.
7Reclassification of Financial Products' payables to accrued expenses or 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.
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23

Caterpillar Inc.
Supplemental Data for Financial Position
At December 31, 2022
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery,
Energy &
Transportation 		Financial
Products		Consolidating
Adjustments
Assets    
Current assets:    
Cash and cash equivalents$7,004 $6,042 $962 $— 
Receivables – trade and other8,856 3,710 519 4,627 
1,2
Receivables – finance9,013 — 13,902 (4,889)2
Prepaid expenses and other current assets2,642 2,488 290 (136)3
Inventories16,270 16,270 — — 
Total current assets43,785 28,510 15,673 (398)
Property, plant and equipment – net12,028 8,186 3,842 — 
Long-term receivables – trade and other1,265 418 339 508 
1,2
Long-term receivables – finance12,013 — 12,552 (539)2
Noncurrent deferred and refundable income taxes2,213 2,755 115 (657)4
Intangible assets758 758 — — 
Goodwill5,288 5,288 — — 
Other assets4,593 3,882 1,892 (1,181)5
Total assets$81,943 $49,797 $34,413 $(2,267)
Liabilities    
Current liabilities:    
Short-term borrowings$5,957 $3 $5,954 $— 
Accounts payable8,689 8,657 294 (262)6
Accrued expenses4,080 3,687 393 — 
Accrued wages, salaries and employee benefits2,313 2,264 49 — 
Customer advances1,860 1,860 — — 
Dividends payable620 620 — — 
Other current liabilities2,690 2,215 635 (160)
4,7
Long-term debt due within one year5,322 120 5,202 — 
Total current liabilities31,531 19,426 12,527 (422)
Long-term debt due after one year25,714 9,529 16,216 (31)8
Liability for postemployment benefits4,203 4,203 — — 
Other liabilities4,604 3,677 1,638 (711)4
Total liabilities66,052 36,835 30,381 (1,164)
    
Shareholders’ equity    
Common stock6,560 6,560 905 (905)9
Treasury stock(31,748)(31,748)— — 
Profit employed in the business43,514 39,435 4,068 11 9
Accumulated other comprehensive income (loss)(2,457)(1,310)(1,147)— 
Noncontrolling interests22 25 206 (209)9
Total shareholders’ equity15,891 12,962 4,032 (1,103)
Total liabilities and shareholders’ equity$81,943 $49,797 $34,413 $(2,267)
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.
7Elimination of prepaid insurance in Financial Products’ other liabilities.
8
Elimination of debt between ME&T and Financial Products.
9
Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries.
(more)


24

Caterpillar Inc.
Supplemental Data for Cash Flow
For the Twelve Months Ended December 31, 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$10,332 $9,995 $686 $(349)1,5
Adjustments for non-cash items:
Depreciation and amortization2,144 1,361 783 — 
Actuarial (gain) loss on pension and postretirement benefits(97)(97)— — 
Provision (benefit) for deferred income taxes(592)(576)(16)— 
Loss on divestiture572 572 — — 
Other375 444 (577)508 2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other(437)(367)61 (131)
2,3
Inventories(364)(360)— (4)2
Accounts payable(754)(836)41 41 2
Accrued expenses796 690 106 — 
Accrued wages, salaries and employee benefits486 474 12 — 
Customer advances80 78 2 — 
Other assets – net(95)94 (110)(79)2
Other liabilities – net439 216 118 105 2
Net cash provided by (used for) operating activities12,885 11,688 1,106 91 
Cash flow from investing activities:    
Capital expenditures – excluding equipment leased to others(1,597)(1,624)(22)49 2
Expenditures for equipment leased to others(1,495)(39)(1,466)10 2
Proceeds from disposals of leased assets and property, plant and equipment781 55 781 (55)2
Additions to finance receivables(15,161)— (17,321)2,160 3
Collections of finance receivables14,034 — 15,634 (1,600)3
Net intercompany purchased receivables— — 1,080 (1,080)3
Proceeds from sale of finance receivables63 — 63 — 
Net intercompany borrowings— — 10 (10)4
Investments and acquisitions (net of cash acquired)(75)(75)— — 
Proceeds from sale of businesses and investments (net of cash sold)(4)(4)— — 
Proceeds from maturities and sale of securities1,891 1,642 249 — 
Investments in securities(4,405)(3,982)(423)— 
Other – net97 106 (9)— 
Net cash provided by (used for) investing activities(5,871)(3,921)(1,424)(526)
Cash flow from financing activities:    
Dividends paid(2,563)(2,563)(425)425 5
Common stock issued, including treasury shares reissued12 12 — — 
Common shares repurchased(4,975)(4,975)— — 
Net intercompany borrowings— (10)— 10 4
Proceeds from debt issued > 90 days8,257 — 8,257 — 
Payments on debt > 90 days(6,318)(106)(6,212)— 
Short-term borrowings – net < 90 days(1,345)(3)(1,342)— 
Net cash provided by (used for) financing activities(6,932)(7,645)278 435 
Effect of exchange rate changes on cash(110)(60)(50)— 
Increase (decrease) in cash, cash equivalents and restricted cash(28)62 (90)— 
Cash, cash equivalents and restricted cash at beginning of period7,013 6,049 964 — 
Cash, cash equivalents and restricted cash at end of period$6,985 $6,111 $874 $— 
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.
(more)


25

Caterpillar Inc.
Supplemental Data for Cash Flow
For the Twelve Months Ended December 31, 2022
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & TransportationFinancial
Products		Consolidating
Adjustments
Cash flow from operating activities:    
Profit of consolidated and affiliated companies$6,704 $6,531 $655 $(482)1,5
Adjustments for non-cash items:
Depreciation and amortization2,219 1,439 780 — 
Actuarial (gain) loss on pension and postretirement benefits(606)(606)— — 
Provision (benefit) for deferred income taxes
(377)(368)(9)— 
Goodwill impairment charge925 925 — — 
Other701 452 (205)454 2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other(220)(390)143 27 
2,3
Inventories(2,589)(2,572)— (17)2
Accounts payable798 811 82 (95)2
Accrued expenses317 274 43 — 
Accrued wages, salaries and employee benefits90 97 (7)— 
Customer advances768 769 (1)— 
Other assets – net(210)(183)(35)8 2
Other liabilities – net(754)(821)71 (4)2
Net cash provided by (used for) operating activities7,766 6,358 1,517 (109)
Cash flow from investing activities: 
Capital expenditures – excluding equipment leased to others(1,296)(1,279)(20)3 2
Expenditures for equipment leased to others(1,303)(19)(1,310)26 2
Proceeds from disposals of leased assets and property, plant and equipment830 78 764 (12)2
Additions to finance receivables(13,239)— (14,223)984 3
Collections of finance receivables13,177 — 14,052 (875)3
Net intercompany purchased receivables— — 492 (492)3
Proceeds from sale of finance receivables57 — 57 — 
Net intercompany borrowings— — 9 (9)4
Investments and acquisitions (net of cash acquired)(88)(88)— — 
Proceeds from sale of businesses and investments (net of cash sold)1 1 — — 
Proceeds from maturities and sale of securities2,383 1,948 435 — 
Investments in securities(3,077)(2,549)(528)— 
Other – net14 98 (84)— 
Net cash provided by (used for) investing activities(2,541)(1,810)(356)(375)
Cash flow from financing activities:
Dividends paid(2,440)(2,440)(475)475 5
Common stock issued, including treasury shares reissued51 51 — — 
Common shares repurchased(4,230)(4,230)— — 
Net intercompany borrowings— (9)— 9 4
Proceeds from debt issued > 90 days6,674 — 6,674 — 
Payments on debt > 90 days(7,728)(25)(7,703)— 
Short-term borrowings – net < 90 days402 (138)540 — 
Other – net(10)(10)— — 
Net cash provided by (used for) financing activities(7,281)(6,801)(964)484 
Effect of exchange rate changes on cash(194)(131)(63)— 
Increase (decrease) in cash, cash equivalents and restricted cash(2,250)(2,384)134 — 
Cash, cash equivalents and restricted cash at beginning of period9,263 8,433 830 — 
Cash, cash equivalents and restricted cash at end of period$7,013 $6,049 $964 $— 
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.
#

EXHIBIT 99.2

Caterpillar Inc. (“Caterpillar”, “we” or “our”) is furnishing supplemental information concerning (i) retail sales of machines to end users and (ii) retail sales of power systems (including reciprocating and turbine engines and locomotives) to end users and Original Equipment Manufacturers (“OEMs”). Caterpillar sells the majority of its machinery and power systems to independently owned and operated dealers and OEMs to meet the demands of their customers, the end users. Caterpillar believes that this supplemental information may help readers better understand Caterpillar’s business and the industries it serves, particularly in light of the time delay between Caterpillar’s sales to dealers and dealers’ sales to end users.
In this report, we are providing information by geographic region for retail sales of machines in each of our Resource Industries and Construction Industries reportable segments, as well as information regarding retail sales of our machines globally. For our Energy & Transportation reportable segment, we are providing retail sales information by major end use.
The information presented in this report is primarily based on unaudited reports that are voluntarily provided to Caterpillar by its independent dealers and which are not subject to Caterpillar’s internal controls over financial reporting. Accordingly, the data collected from such third parties may not be accurate and/or complete. As such, the information presented in this report is intended solely to convey an approximate indication of the trends, direction and magnitude of retail sales and is not intended to be an estimate, approximation or prediction of, or substitute for, Caterpillar’s audited financial statements filed with the U.S. Securities and Exchange Commission. This information is furnished under this report with the U.S. Securities and Exchange Commission. Caterpillar does not undertake to update or adjust prior period information.
























Caterpillar Inc.
Quarterly Retail Sales Statistics
     
Machines and E&T Combined4th Quarter 20233rd Quarter 20232nd Quarter 20231st Quarter 2023
WorldUP 8%UP 13%UP 16%UP 13%
     
Machines4th Quarter 20233rd Quarter 20232nd Quarter 20231st Quarter 2023
Asia/PacificDOWN 5%DOWN 14%UP 2%DOWN 14%
EAMEDOWN 3%DOWN 1%DOWN 10%UP 13%
Latin AmericaDOWN 1%DOWN 5%UNCHANGEDDOWN 6%
North AmericaUP 11%UP 25%UP 21%UP 15%
WorldUP 3%UP 7%UP 8%UP 5%
Resource Industries (RI)4th Quarter 20233rd Quarter 20232nd Quarter 20231st Quarter 2023
Asia/PacificDOWN 1%DOWN 10%UP 31%DOWN 12%
EAMEUP 1%DOWN 6%DOWN 10%UP 27%
Latin AmericaUP 1%UP 3%UP 28%DOWN 12%
North AmericaUP 3%UP 49%UP 47%UP 56%
WorldUP 1%UP 10%UP 26%UP 18%
Construction Industries (CI)4th Quarter 20233rd Quarter 20232nd Quarter 20231st Quarter 2023
Asia/PacificDOWN 8%DOWN 17%DOWN 14%DOWN 15%
EAMEDOWN 5%UP 1%DOWN 9%UP 7%
Latin AmericaDOWN 1%DOWN 9%DOWN 8%DOWN 4%
North AmericaUP 13%UP 20%UP 16%UP 5%
WorldUP 4%UP 6%UP 3%UNCHANGED
Reported in dollars and based on unit sales as reported primarily by dealers. 
     
Energy & Transportation (E&T) Retail Sales by industry for the quarter ended as indicated compared with the same period of the prior year:
Energy & Transportation (E&T)4th Quarter 20233rd Quarter 20232nd Quarter 20231st Quarter 2023
Power GenUP 26%UP 44%UP 30%UP 43%
IndustrialDOWN 21%UP 6%UP 39%UP 42%
TransportationUP 54%UP 3%UP 48%DOWN 8%
Oil & GasUP 25%UP 45%UP 71%UP 43%
TotalUP 20%UP 34%UP 47%UP 39%
Reported in dollars based on reporting from dealers and direct sales.  


Glossary of Terms

Construction Industries: Our Construction Industries segment is primarily responsible for supporting customers using machinery in infrastructure, forestry and building construction. The majority of machine sales in this segment are made in the heavy and general construction, rental, quarry and aggregates markets and mining. The Construction Industries product portfolio primarily includes the following machines:

· asphalt pavers
· forestry machines
· small and medium
· backhoe loaders
· material handlers
track-type tractors
· compactors
· motorgraders
· track-type loaders
· cold planers
· pipelayers
· wheel excavators
· compact track and
· road reclaimers
· compact, small and medium
multi-terrain loaders
· skid steer loaders
wheel loaders
· mini, small, medium
· telehandlers
and large track excavators

Effective September 2019, Caterpillar has divested its Forestry product segment. Those products have been removed from the Construction Industries product portfolio where any remaining product Dealer Inventory will be reported in Machines as they are depleted.

EAME: Europe, Africa, Commonwealth of Independent States and Middle East.

Energy & Transportation: Our Energy & Transportation segment is primarily responsible for supporting customers using reciprocating engines, generator sets, turbines, diesel-electric locomotives, integrated systems and solutions, and certain related parts across industries serving oil and gas, power generation, industrial and marine applications as well as rail-related businesses.

Resource Industries: Our Resource Industries segment is primarily responsible for supporting customers using machinery in mining, heavy construction, and quarry and aggregates. The Resource Industries product portfolio primarily includes the following machines:

· electric rope shovels
· longwall miners
· landfill compactors
· draglines
· large wheel loaders
· soil compactors
· hydraulic shovels
· off-highway trucks
· machinery components
· rotary drills
· articulated trucks
· autonomous ready vehicles and
· hard rock vehicles
· wheel tractor scrapers
solutions
· large track-type tractors
· wheel dozers
· large mining trucks

For purposes of this report, retail sales of longwall miners are not included in the information presented above for Resource Industries or Machines or Machines and E&T Combined figures.



FORWARD-LOOKING STATEMENTS

Certain statements in this report 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) the duration and geographic spread of, business disruptions caused by, and the overall global economic impact of, 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.

v3.24.0.1
Cover Page Cover Page
Feb. 04, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Feb. 05, 2024
Entity Registrant Name CATERPILLAR INC.
Entity Incorporation, State or Country Code DE
Entity File Number 1-768
Entity Tax Identification Number 37-0602744
Entity Address, Address Line One 5205 N. O'Connor Blvd.
Entity Address, Address Line Two Suite 100,
Entity Address, City or Town Irving,
Entity Address, State or Province TX
Entity Address, Postal Zip Code 75039
City Area Code (972)
Local Phone Number 891-7700
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000018230
Amendment Flag false
Common Stock  
Entity Information [Line Items]  
Title of 12(b) Security Common Stock ($1.00 par value)
Trading Symbol CAT
Security Exchange Name NYSE
5.3% Debentures Due September 15, 2035  
Entity Information [Line Items]  
Title of 12(b) Security 5.3% Debentures due September 15, 2035
Trading Symbol CAT35
Security Exchange Name NYSE
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