Caterpillar Earnings 2019-03-31

CAT 10Q Quarterly Report

Balance Sheet	Income Statement	Cash Flow

10-Q 1 cat_10qx3312019.htm 10-Q Document

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-768

CATERPILLAR INC.

(Exact name of registrant as specified in its charter)



Delaware (State or other jurisdiction of incorporation)		37-0602744 (IRS Employer I.D. No.)

510 Lake Cook Road, Suite 100, Deerfield, Illinois (Address of principal executive offices)		60015 (Zip Code)

Registrant’s telephone number, including area code: (224) 551-4000

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report: N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.



Large accelerated filer	x	Accelerated filer	o

Non-accelerated filer	o	Smaller reporting company	o

		Emerging growth company	o

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. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol (s)	Name of each exchange on which registered
Common Stock ($1.00 par value)	CAT	New York Stock Exchange
9 3/8% Debentures due March 15, 2021	CAT21	New York Stock Exchange
8% Debentures due February 15, 2023	CAT23	New York Stock Exchange
5.3% Debentures due September 15, 2035	CAT35	New York Stock Exchange

At March 31, 2019, 571,702,278 shares of common stock of the registrant were outstanding.

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Part I. Financial Information
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	54
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	75
Item 4.	Controls and Procedures	75

Part II. Other Information
Item 1.	Legal Proceedings	76
Item 1A.	Risk Factors	*
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	76
Item 3.	Defaults Upon Senior Securities	*
Item 4.	Mine Safety Disclosures	*
Item 5.	Other Information	*
Item 6.	Exhibits	77

* Item omitted because no answer is called for or item is not applicable.

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Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

Caterpillar Inc.

Consolidated Statement of Results of Operations

(Unaudited)

(Dollars in millions except per share data)



	Three Months Ended March 31
	2019		2018
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	12,724	$	12,150
Revenues of Financial Products	742		709
Total sales and revenues	13,466		12,859

Operating costs:
Cost of goods sold	9,003		8,566
Selling, general and administrative expenses	1,319		1,276
Research and development expenses	435		443
Interest expense of Financial Products	190		166
Other operating (income) expenses	312		300
Total operating costs	11,259		10,751

Operating profit	2,207		2,108

Interest expense excluding Financial Products	103		101
Other income (expense)	160		127

Consolidated profit before taxes	2,264		2,134

Provision (benefit) for income taxes	387		472
Profit of consolidated companies	1,877		1,662

Equity in profit (loss) of unconsolidated affiliated companies	7		5

Profit of consolidated and affiliated companies	1,884		1,667

Less: Profit (loss) attributable to noncontrolling interests	3		2

Profit ¹	$	1,881	$	1,665

Profit per common share	$	3.29	$	2.78

Profit per common share – diluted ²	$	3.25	$	2.74

Weighted-average common shares outstanding (millions)
– Basic	572.4		598.0
– Diluted²	578.8		608.0

¹ Profit attributable to common shareholders.

² Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

See accompanying notes to Consolidated Financial Statements.

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Caterpillar Inc.

Consolidated Statement of Comprehensive Income

(Unaudited)

(Dollars in millions)



	Three Months Ended March 31
	2019			2018

Profit of consolidated and affiliated companies	$	1,884		$	1,667
Other comprehensive income (loss), net of tax:
Foreign currency translation, net of tax (provision)/benefit of: 2019 - $(4); 2018 - $15	(22		)	184

Pension and other postretirement benefits:
Current year prior service credit (cost), net of tax (provision)/benefit of: 2019 - $0; 2018 - $1	—			(2		)
Amortization of prior service (credit) cost, net of tax (provision)/benefit of: 2019 - $3; 2018 - $2	(7		)	(7		)

Derivative financial instruments:
Gains (losses) deferred, net of tax (provision)/benefit of: 2019 - $(3); 2018 - $(1)	10			5
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2019 - $2; 2018 - $(6)	(9		)	18

Available-for-sale securities:
Gains (losses) deferred, net of tax (provision)/benefit of: 2019 - $(6); 2018 - $2	15			(11		)
(Gains) losses reclassified to earnings, net of tax (provision)/benefit of: 2019 - $0; 2018 - $0	1			—

Total other comprehensive income (loss), net of tax	(12		)	187
Comprehensive income	1,872			1,854
Less: comprehensive income attributable to the noncontrolling interests	3			2
Comprehensive income attributable to shareholders	$	1,869		$	1,852

See accompanying notes to Consolidated Financial Statements.

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Caterpillar Inc.

Consolidated Statement of Financial Position

(Unaudited)

(Dollars in millions)



	March 31, 2019			December 31, 2018
Assets
Current assets:
Cash and short-term investments	$	7,128		$	7,857
Receivables – trade and other	8,961			8,802
Receivables – finance	8,932			8,650
Prepaid expenses and other current assets	1,765			1,765
Inventories	12,340			11,529
Total current assets	39,126			38,603

Property, plant and equipment – net	13,259			13,574
Long-term receivables – trade and other	1,149			1,161
Long-term receivables – finance	12,674			13,286
Noncurrent deferred and refundable income taxes	1,378			1,439
Intangible assets	1,807			1,897
Goodwill	6,191			6,217
Other assets	3,142			2,332
Total assets	$	78,726		$	78,509

Liabilities
Current liabilities:
Short-term borrowings:
Machinery, Energy & Transportation	$	4		$	—
Financial Products	5,586			5,723
Accounts payable	7,198			7,051
Accrued expenses	3,746			3,573
Accrued wages, salaries and employee benefits	1,200			2,384
Customer advances	1,354			1,243
Dividends payable	—			495
Other current liabilities	2,348			1,919
Long-term debt due within one year:
Machinery, Energy & Transportation	13			10
Financial Products	5,939			5,820
Total current liabilities	27,388			28,218

Long-term debt due after one year:
Machinery, Energy & Transportation	7,650			8,005
Financial Products	16,590			16,995
Liability for postemployment benefits	7,441			7,455
Other liabilities	4,179			3,756
Total liabilities	63,248			64,429
Commitments and contingencies (Notes 11 and 14)
Shareholders’ equity
Common stock of $1.00 par value:
Authorized shares: 2,000,000,000 Issued shares: (3/31/19 and 12/31/18 – 814,894,624) at paid-in amount	5,804			5,827
Treasury stock (3/31/19 – 243,192,346 shares; 12/31/18 – 239,351,886 shares) at cost	(21,214		)	(20,531		)
Profit employed in the business	32,435			30,427
Accumulated other comprehensive income (loss)	(1,588		)	(1,684		)
Noncontrolling interests	41			41
Total shareholders’ equity	15,478			14,080
Total liabilities and shareholders’ equity	$	78,726		$	78,509

See accompanying notes to Consolidated Financial Statements.

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Caterpillar Inc.

Consolidated Statement of Changes in Shareholders’ Equity

(Unaudited)

(Dollars in millions)



	Common stock			Treasury stock			Profit employed in the business			Accumulated other comprehensive income (loss)			Noncontrolling interests			Total
Three Months Ended March 31, 2018
Balance at December 31, 2017	$	5,593		$	(17,005	)	$	26,301		$	(1,192	)	$	69		$	13,766
Adjustments to adopt new accounting guidance
Revenue recognition	—			—			(12		)	—			—			(12		)
Tax accounting for intra-entity asset transfers	—			—			(35		)	—			—			(35		)
Recognition and measurement of financial assets and liabilities	—			—			11			(11		)	—			—
Balance at January 1, 2018	5,593			(17,005		)	26,265			(1,203		)	69			13,719
Profit of consolidated and affiliated companies	—			—			1,665			—			2			1,667
Foreign currency translation, net of tax	—			—			—			184			—			184
Pension and other postretirement benefits, net of tax	—			—			—			(9		)	—			(9		)
Derivative financial instruments, net of tax	—			—			—			23			—			23
Available-for-sale securities, net of tax	—			—			—			(11		)	—			(11		)
Change in ownership from noncontrolling interests	2			—			—			—			(5		)	(3		)
Dividends declared	—			—			(1		)	—			—			(1		)
Common shares issued from treasury stock for stock-based compensation: 3,426,757	(9		)	158			—			—			—			149
Stock-based compensation expense	50			—			—			—			—			50
Common shares repurchased: 3,147,629 ²	—			(500		)	—			—			—			(500		)
Other	4			—			—			—			—			4
Balance at March 31, 2018	$	5,640		$	(17,347	)	$	27,929		$	(1,016	)	$	66		$	15,272

Three Months Ended March 31, 2019
Balance at December 31, 2018	$	5,827		$	(20,531	)	$	30,427		$	(1,684	)	$	41		$	14,080
Adjustments to adopt new accounting guidance¹
Lease accounting	—			—			235			—			—			235
Reclassification of certain tax effects from accumulated other comprehensive income	—			—			(108		)	108			—			—
Balance at January 1, 2019	5,827			(20,531		)	30,554			(1,576		)	41			14,315
Profit of consolidated and affiliated companies	—			—			1,881			—			3			1,884
Foreign currency translation, net of tax	—			—			—			(22		)	—			(22		)
Pension and other postretirement benefits, net of tax	—			—			—			(7		)	—			(7		)
Derivative financial instruments, net of tax	—			—			—			1			—			1
Available-for-sale securities, net of tax	—			—			—			16			—			16
Distribution to noncontrolling interests	—			—			—			—			(1		)	(1		)
Common shares issued from treasury stock for stock-based compensation: 1,859,065	(73		)	68			—			—			—			(5		)
Stock-based compensation expense	45			—			—			—			—			45
Common shares repurchased: 5,699,525 ²	—			(751		)	—			—			—			(751		)
Other	5			—			—			—			(2		)	3
Balance at March 31, 2019	$	5,804		$	(21,214	)	$	32,435		$	(1,588	)	$	41		$	15,478

¹ See Note 2 for additional information.
² See Note 12 for additional information.

See accompanying notes to Consolidated Financial Statements.

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Caterpillar Inc.

Consolidated Statement of Cash Flow

(Unaudited)

(Millions of dollars)



	Three Months Ended March 31
	2019			2018
Cash flow from operating activities:
Profit of consolidated and affiliated companies	$	1,884		$	1,667
Adjustments for non-cash items:
Depreciation and amortization	641			681
Other	88			148
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other	(150		)	(326		)
Inventories	(813		)	(803		)
Accounts payable	355			486
Accrued expenses	135			66
Accrued wages, salaries and employee benefits	(1,185		)	(1,110		)
Customer advances	105			(46		)
Other assets – net	(44		)	165
Other liabilities – net	105			7
Net cash provided by (used for) operating activities	1,121			935

Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others	(278		)	(412		)
Expenditures for equipment leased to others	(269		)	(345		)
Proceeds from disposals of leased assets and property, plant and equipment	209			258
Additions to finance receivables	(2,615		)	(2,621		)
Collections of finance receivables	2,818			2,671
Proceeds from sale of finance receivables	44			69
Investments and acquisitions (net of cash acquired)	(2		)	(340		)
Proceeds from sale of businesses and investments (net of cash sold)	—			12
Proceeds from sale of securities	57			89
Investments in securities	(107		)	(197		)
Other – net	(38		)	16
Net cash provided by (used for) investing activities	(181		)	(800		)

Cash flow from financing activities:
Dividends paid	(494		)	(467		)
Common stock issued, including treasury shares reissued	(5		)	149
Common shares repurchased	(751		)	(500		)
Proceeds from debt issued (original maturities greater than three months):
Machinery, Energy & Transportation	—			—
Financial Products	2,665			1,541
Payments on debt (original maturities greater than three months):
Machinery, Energy & Transportation	(2		)	(1		)
Financial Products	(2,565		)	(2,408		)
Short-term borrowings – net (original maturities three months or less)	(522		)	1,151
Other – net	(1		)	(3		)
Net cash provided by (used for) financing activities	(1,675		)	(538		)
Effect of exchange rate changes on cash	3			10
Increase (decrease) in cash and short-term investments and restricted cash	(732		)	(393		)
Cash and short-term investments and restricted cash at beginning of period	7,890			8,320
Cash and short-term investments and restricted cash at end of period	$	7,158		$	7,927

All short-term investments, which consist primarily of highly liquid investments with original maturities of three months or less, are considered to be cash equivalents.

See accompanying notes to Consolidated Financial Statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


1.	A. Nature of operations

Information in our financial statements and related commentary are presented in the following categories:

Machinery, Energy & Transportation (ME&T) – Represents the aggregate total of Construction Industries, Resource Industries, Energy & Transportation and the All Other operating segment and related corporate items and eliminations.

Financial Products – Primarily includes the company’s Financial Products Segment. This category includes Caterpillar Financial Services Corporation (Cat Financial), Caterpillar Insurance Holdings Inc. (Insurance Services) and their respective subsidiaries.

B. Basis of presentation

In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated results of operations for the three months ended March 31, 2019 and 2018, (b) the consolidated comprehensive income for the three months ended March 31, 2019 and 2018, (c) the consolidated financial position at March 31, 2019 and December 31, 2018, (d) the consolidated changes in shareholders’ equity for the three months ended March 31, 2019 and 2018 and (e) the consolidated cash flow for the three months ended March 31, 2019 and 2018. The financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC).

Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in our company’s annual report on Form 10-K for the year ended December 31, 2018 (2018 Form 10-K).

The December 31, 2018 financial position data included herein is derived from the audited consolidated financial statements included in the 2018 Form 10-K but does not include all disclosures required by U.S. GAAP. Certain amounts for prior periods have been reclassified to conform to the current period financial statement presentation.

Unconsolidated Variable Interest Entities (VIEs)

We have affiliates, suppliers and dealers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support, we do not have the power to direct the activities that most significantly impact the economic performance of each entity. Our maximum exposure to loss from VIEs for which we are not the primary beneficiary was $145 million and $131 million as of March 31, 2019 and December 31, 2018, respectively.

In addition, Cat Financial has end-user customers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support to these entities and therefore have a variable interest, we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. These risks are evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses.

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2. New accounting guidance

Lease accounting – In February 2016, the Financial Accounting Standards Board (FASB) issued accounting guidance that revises the accounting for leases. Under the new guidance, lessees are required to recognize a right-of-use asset and a lease liability for substantially all leases. The new guidance will continue to classify leases as either financing or operating, with classification affecting the pattern of expense recognition. The accounting applied by a lessor under the new guidance will be substantially equivalent to current lease accounting guidance. The new guidance was effective January 1, 2019 and was applied using a modified retrospective approach through a cumulative effect adjustment to retained earnings as of January 1, 2019. The prior period comparative information has not been recasted and continues to be reported under the accounting guidance in effect for those periods.

The new guidance provides a number of optional practical expedients in transition. We elected the "package of practical expedients," which allows us not to reassess under the new guidance our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the use-of-hindsight practical expedient. In addition, the new guidance provides practical expedients for an entity’s ongoing lessee accounting. For certain property and information technology equipment leases, we have elected to separate payments for lease components from non-lease components. For all other leases, we have elected to not separate lease and non-lease components. We have elected the short-term lease recognition exemption for all leases that qualify which means we will not recognize right-of-use assets or lease liabilities for these leases with a term of twelve months or less.

The most significant effects of adoption relate to the recognition of right-of-use assets and lease liabilities on our balance sheet for operating leases and providing new disclosures about our leasing activities. In addition, we derecognized existing assets and debt obligations for a sale-leaseback transaction that qualified for sale accounting under the new guidance. The gain associated with this change in accounting was recognized through opening retained earnings as of January 1, 2019. The adoption did not have a material impact on our results of operations.

In March 2019, the FASB issued accounting guidance which amended the new leasing guidance. Under these amendments, lessors that are not manufacturers or dealers will use their cost, less any discounts that may apply, as the fair value of the underlying asset, and lessors within the scope of Financial Services-Depository and Lending guidance will present all principal payments received under leases within investment activities on the statement of cash flows. We adopted the new guidance effective January 1, 2019, and the adoption did not have a material impact to our financial statements.

See Note 10 for additional information.

The cumulative effect of initially applying the new lease guidance to our consolidated financial statements on January 1, 2019 was as follows:



Consolidated Statement of Financial Position
(Millions of dollars)	Balance as of December 31, 2018		Cumulative Impact from Adopting New Lease Guidance			Balance as of January 1, 2019
Assets
Prepaid expenses and other current assets	$	1,765	$	(17	)	$	1,748
Property, plant and equipment - net	$	13,574	$	(26	)	$	13,548
Noncurrent deferred and refundable income taxes	$	1,439	$	(77	)	$	1,362
Other assets	$	2,332	$	713		$	3,045

Liabilities
Accrued expenses	$	3,573	$	(27	)	$	3,546
Other current liabilities	$	1,919	$	209		$	2,128
Long-term debt due after one year
Machinery, Energy & Transportation	$	8,005	$	(362	)	$	7,643
Other liabilities	$	3,756	$	538		$	4,294

Shareholders' equity
Profit employed in the business	$	30,427	$	235		$	30,662

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Measurement of credit losses on financial instruments – In June 2016, the FASB issued accounting guidance to introduce a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The new guidance will apply to loans, accounts receivable, trade receivables, other financial assets measured at amortized cost, loan commitments and other off-balance sheet credit exposures. The new guidance will also apply to debt securities and other financial assets measured at fair value through other comprehensive income. The new guidance is effective January 1, 2020, with early adoption permitted beginning January 1, 2019. An implementation team is currently evaluating data requirements and methodologies to assess the effect of the new guidance on our financial statements. We plan to adopt the new guidance effective January 1, 2020.

Premium amortization on purchased callable debt securities – In March 2017, the FASB issued accounting guidance related to the amortization period for certain purchased callable debt securities held at a premium. Securities held at a premium will be required to be amortized to the earliest call date rather than the maturity date. The guidance was effective January 1, 2019, and the adoption did not have a material impact on our financial statements.

Derivatives and hedging – In August 2017, the FASB issued accounting guidance to better align hedge accounting with a company’s risk management activities, simplify the application of hedge accounting and improve the disclosures of hedging arrangements. The guidance was effective January 1, 2019. The adoption primarily resulted in the reclassification of our gains (losses) for designated ME&T foreign exchange contracts from Other income (expense) to components of Operating profit in the Consolidated Statement of Results of Operations. This presentation change was applied prospectively and did not have a material impact on our financial statements.

Reclassification of certain tax effects from accumulated other comprehensive income – In February 2018, the FASB issued accounting guidance to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from U.S. tax reform legislation. We adopted the guidance effective January 1, 2019, and the resulting reclassification was included in the period of adoption. The adoption did not have a material impact on our financial statements.

Defined benefit plan disclosures – In August 2018, the FASB issued accounting guidance that revises the annual disclosure requirements for employers by removing and adding certain disclosures for these plans. The applicable requirements that were removed include the disclosure of the amount of prior service cost (credit) that will be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost for the next fiscal year and the effect of a one-percentage-point change in the assumed health care cost trend rates on the service and interest cost components of other postretirement benefit cost and on the accumulated postretirement benefit obligations. The new disclosure requirements include the weighted average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and narrative description of the reasons for significant actuarial gains and losses related to changes in benefit plan obligations or assets for the period. The new guidance is required to be applied on a retrospective basis. The guidance is effective January 1, 2020, with early adoption permitted. We plan to adopt the new guidance effective January 1, 2020, and do not expect the adoption to have a material impact on our financial statements.

Cloud computing arrangements – In August 2018, the FASB issued accounting guidance that aligns the accounting for implementation costs incurred in a cloud computing arrangement service contract with the internal use software costs model. Under the new standard, costs that meet certain criteria will be required to be capitalized on the balance sheet and subsequently amortized over the term of the hosting arrangement. The guidance is effective January 1, 2020, with early adoption permitted. The new guidance allows for either prospective or retrospective transition. We plan to adopt the new guidance effective January 1, 2020 on a prospective basis. We do not expect the adoption to have a material impact on our financial statements.


3.	Sales and revenue contract information

Trade receivables represent amounts due from dealers and end users for the sale of our products. In addition, Cat Financial provides wholesale inventory financing for a dealer's purchase of inventory. Wholesale inventory receivables are included in Receivables – trade and other and Long-term receivables – trade and other in the Consolidated Statement of Financial Position. Trade receivables from dealers and end users were $7,918 million and $7,743 million as of March 31, 2019 and December 31, 2018, respectively, and are recognized in Receivables – trade and other in the Consolidated Statement of Financial Position. Long-term trade receivables from dealers and end users were $640 million and $674 million as of March 31, 2019 and December 31, 2018, respectively, and are recognized in Long-term receivables – trade and other in the Consolidated Statement of Financial Position.

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We invoice in advance of recognizing the sale of certain products. Advanced customer payments are recognized as a contract liability in Customer advances and Other liabilities in the Consolidated Statement of Financial Position. Long-term customer advances recognized in Other liabilities in the Consolidated Statement of Financial Position were $430 million and $437 million as of March 31, 2019 and December 31, 2018, respectively. We reduce the contract liability when revenue is recognized. During the three months ended March 31, 2019, we recognized $507 million of revenue that was recorded as a contract liability at the beginning of 2019.

As of March 31, 2019, we have entered into contracts with dealers and end users for which sales have not been recognized as we have not satisfied our performance obligations and transferred control of the products. The dollar amount of unsatisfied performance obligations for contracts with an original duration greater than one year is $5.8 billion, of which $2.5 billion is expected to be completed and revenue recognized in the twelve months following March 31, 2019. We have elected the practical expedient to not disclose unsatisfied performance obligations with an original contract duration of one year or less. Contracts with an original duration of one year or less are primarily sales to dealers for machinery, engines and replacement parts.

See Note 16 for further disaggregated sales and revenues information.

4. Stock-based compensation

Accounting for stock-based compensation requires that the cost resulting from all stock-based payments be recognized in the financial statements based on the grant date fair value of the award. Our stock-based compensation primarily consists of stock options, restricted stock units (RSUs) and performance-based restricted stock units (PRSUs).

Upon separation from service, if a participant is 55 years of age or older with more than five years of service, the participant meets the criteria for a "Long Service Separation." For PRSU awards granted prior to 2019, only a prorated number of shares may vest at the end of the performance period based upon achievement of the performance target, with the proration based upon the number of months of continuous employment during the three-year performance period. Award terms for the 2019 PRSU grant allow for continued vesting upon achievement of the performance target specified in the award document for employees who meet the criteria for a "Long Service Separation" and fulfill a requisite service period of six months. Compensation expense for the 2019 PRSU grant with respect to employees who have met the criteria for a "Long Service Separation" is recognized over the period from the grant date to the end of the six-month requisite service period. For employees who become eligible for a "Long Service Separation" subsequent to the end date of the six-month requisite service period and prior to the completion of the vesting period, compensation expense is recognized over the period from the grant date to the date eligibility is achieved.

We recognized pretax stock-based compensation expense of $45 million and $50 million for the three months ended March 31, 2019 and 2018, respectively.

The following table illustrates the type and fair value of the stock-based compensation awards granted during the three months ended March 31, 2019 and 2018, respectively:




	Three Months Ended March 31, 2019					Three Months Ended March 31, 2018
	Shares Granted	Weighted-Average Fair Value Per Share		Weighted-Average Grant Date Stock Price		Shares Granted	Weighted-Average Fair Value Per Share		Weighted-Average Grant Date Stock Price
Stock options	1,499,524	$	40.98	$	138.35	1,566,788	$	46.18	$	151.12
RSUs	657,389	$	138.35	$	138.35	676,228	$	151.12	$	151.12
PRSUs	342,097	$	138.35	$	138.35	339,559	$	151.12	$	151.12

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The following table provides the assumptions used in determining the fair value of the stock-based awards for the three months ended March 31, 2019 and 2018, respectively:




	Grant Year
	2019		2018
Weighted-average dividend yield	2.56	%	2.70	%
Weighted-average volatility	29.1	%	30.2	%
Range of volatilities	25.1-38.7%		21.5-33.0%
Range of risk-free interest rates	2.48-2.68%		2.02-2.87%
Weighted-average expected lives	7 years		8 years

As of March 31, 2019, the total remaining unrecognized compensation expense related to nonvested stock-based compensation awards was $333 million, which will be amortized over the weighted-average remaining requisite service periods of approximately 1.9 years.

5. Derivative financial instruments and risk management

Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates, interest rates and commodity prices. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate and commodity price exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option and cross currency contracts, interest rate contracts and commodity forward and option contracts. Our derivative activities are subject to the management, direction and control of our senior financial officers. Risk management practices, including the use of financial derivative instruments, are presented to the Audit Committee of the Board of Directors at least annually.

All derivatives are recognized on the Consolidated Statement of Financial Position at their fair value. On the date the derivative contract is entered into, we designate the derivative as (1) a hedge of the fair value of a recognized asset or liability (fair value hedge), (2) a hedge of a forecasted transaction or the variability of cash flow (cash flow hedge) or (3) an undesignated instrument. Changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged recognized asset or liability that is attributable to the hedged risk, are recorded in current earnings. Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge are recorded in Accumulated other comprehensive income (loss) (AOCI), to the extent effective, on the Consolidated Statement of Financial Position until they are reclassified to earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of undesignated derivative instruments are reported in current earnings. Cash flows from designated derivative financial instruments are classified within the same category as the item being hedged on the Consolidated Statement of Cash Flow. Cash flows from undesignated derivative financial instruments are included in the investing category on the Consolidated Statement of Cash Flow.

We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities on the Consolidated Statement of Financial Position and linking cash flow hedges to specific forecasted transactions or variability of cash flow.

We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the designated derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flow of hedged items. When a derivative is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, we discontinue hedge accounting prospectively, in accordance with the derecognition criteria for hedge accounting.

Foreign Currency Exchange Rate Risk

Foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors. Additionally, we have balance sheet positions denominated in foreign currencies, thereby creating exposure to movements in exchange rates.

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Our Machinery, Energy & Transportation operations purchase, manufacture and sell products in many locations around the world. As we have a diversified revenue and cost base, we manage our future foreign currency cash flow exposure on a net basis. We use foreign currency forward and option contracts to manage unmatched foreign currency cash inflow and outflow. Our objective is to minimize the risk of exchange rate movements that would reduce the U.S. dollar value of our foreign currency cash flow. Our policy allows for managing anticipated foreign currency cash flow for up to five years. As of March 31, 2019, the maximum term of these outstanding contracts was approximately 51 months.

We generally designate as cash flow hedges at inception of the contract any Australian dollar, Brazilian real, British pound, Canadian dollar, Chinese yuan, Indian rupee, Japanese yen, Mexican peso, Singapore dollar or Thailand baht forward or option contracts that meet the requirements for hedge accounting and the maturity extends beyond the current quarter-end. Designation is performed on a specific exposure basis to support hedge accounting. The remainder of Machinery, Energy & Transportation foreign currency contracts are undesignated.

As of March 31, 2019, $2 million of deferred net gains, net of tax, included in equity (AOCI in the Consolidated Statement of Financial Position), are expected to be reclassified to current earnings (Other income (expense) in the Consolidated Statement of Results of Operations) over the next twelve months when earnings are affected by the hedged transactions. The actual amount recorded in Other income (expense) will vary based on exchange rates at the time the hedged transactions impact earnings.

In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our assets and liabilities and exchange rate risk associated with future transactions denominated in foreign currencies. Our foreign currency forward and option contracts are primarily undesignated. We designate fixed-to-fixed cross currency contracts as cash flow hedges to protect against movements in exchange rates on foreign currency fixed-rate assets and liabilities.

Interest Rate Risk

Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate contracts to manage our exposure to interest rate changes.

Our Machinery, Energy & Transportation operations generally use fixed-rate debt as a source of funding. Our objective is to minimize the cost of borrowed funds. Our policy allows us to enter into fixed-to-floating interest rate contracts and forward rate agreements to meet that objective. We designate fixed-to-floating interest rate contracts as fair value hedges at inception of the contract, and we designate certain forward rate agreements as cash flow hedges at inception of the contract.

Financial Products operations has a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate) of Cat Financial’s debt portfolio with the interest rate profile of their receivables portfolio within predetermined ranges on an ongoing basis. In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the receivables portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move.

Our policy allows us to use fixed-to-floating, floating-to-fixed and floating-to-floating interest rate contracts to meet the match-funding objective. We designate fixed-to-floating interest rate contracts as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate. We designate most floating-to-fixed interest rate contracts as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate.

We have, at certain times, liquidated fixed-to-floating and floating-to-fixed interest rate contracts at both Machinery, Energy & Transportation and Financial Products. The gains or losses associated with these contracts at the time of liquidation are amortized into earnings over the original term of the previously designated hedged item.

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Commodity Price Risk

Commodity price movements create a degree of risk by affecting the price we must pay for certain raw material. Our policy is to use commodity forward and option contracts to manage the commodity risk and reduce the cost of purchased materials.

Our Machinery, Energy & Transportation operations purchase base and precious metals embedded in the components we purchase from suppliers. Our suppliers pass on to us price changes in the commodity portion of the component cost. In addition, we are subject to price changes on energy products such as natural gas and diesel fuel purchased for operational use.

Our objective is to minimize volatility in the price of these commodities. Our policy allows us to enter into commodity forward and option contracts to lock in the purchase price of a portion of these commodities within a five-year horizon. All such commodity forward and option contracts are undesignated.

The location and fair value of derivative instruments reported in the Consolidated Statement of Financial Position are as follows:




(Millions of dollars)	Consolidated Statement of Financial	Asset (Liability) Fair Value
	Position Location	March 31, 2019			December 31, 2018
Designated derivatives
Foreign exchange contracts
Machinery, Energy & Transportation	Receivables – trade and other	$	19		$	16
Machinery, Energy & Transportation	Accrued expenses	(16		)	(26		)
Machinery, Energy & Transportation	Other liabilities	(3		)	(9		)
Financial Products	Receivables – trade and other	44			53
Financial Products	Long-term receivables – trade and other	44			35
Financial Products	Accrued expenses	(5		)	(9		)
Interest rate contracts
Financial Products	Receivables – trade and other	—			1
Financial Products	Long-term receivables – trade and other	3			3
Financial Products	Accrued expenses	(58		)	(40		)
		$	28		$	24
Undesignated derivatives
Foreign exchange contracts
Machinery, Energy & Transportation	Receivables – trade and other	$	2		$	2
Machinery, Energy & Transportation	Accrued expenses	(5		)	(21		)
Financial Products	Receivables – trade and other	9			15
Financial Products	Long-term receivables – trade and other	6			5
Financial Products	Accrued expenses	(13		)	(14		)
Commodity contracts
Machinery, Energy & Transportation	Receivables – trade and other	6			1
Machinery, Energy & Transportation	Accrued expenses	(8		)	(31		)
		$	(3	)	$	(43	)

The total notional amounts of the derivative instruments are as follows:




(Millions of dollars)	March 31, 2019		December 31, 2018

Machinery, Energy & Transportation	$	2,003	$	1,834
Financial Products	$	9,001	$	10,210

The notional amounts of the derivative financial instruments do not represent amounts exchanged by the parties. The amounts exchanged by the parties are calculated by reference to the notional amounts and by other terms of the derivatives, such as foreign currency exchange rates, interest rates or commodity prices.

Table of Contents

The effect of derivatives designated as hedging instruments on the Consolidated Statement of Results of Operations is as follows:




Cash Flow Hedges
	Three Months Ended March 31, 2019
				Recognized in Earnings
(Millions of dollars)	Amount of Gains (Losses) Recognized in AOCI			Classification of Gains (Losses)	Amount of Gains (Losses) Reclassified from AOCI			Amount of the line items in the Consolidated Statement of Results of Operations containing hedging gains (losses)
Foreign exchange contracts
Machinery, Energy & Transportation	$	17
				Sales of Machinery, Energy & Transportation	$	1		$	12,724
				Cost of goods sold	(3		)	$	9,003
Financial Products	22
				Interest expense of Financial Products	7			$	190
				Other income (expense)	6			$	160
Interest rate contracts
Machinery, Energy & Transportation	—			Interest expense excluding Financial Products	(1		)	$	103
Financial Products	(26		)	Interest expense of Financial Products	1			$	190
	$	13			$	11



	Three Months Ended March 31, 2018
				Recognized in Earnings
	Amount of Gains (Losses) Recognized in AOCI (Effective Portion)			Classification of Gains (Losses)	Amount of Gains (Losses) Reclassified from AOCI			Recognized in Earnings (Ineffective Portion)
Foreign exchange contracts
Machinery, Energy & Transportation	$	39		Other income (expense)	$	1		$	—
Financial Products	(33		)	Other income (expense)	(29		)	—
Financial Products				Interest expense of Financial Products	3			—
Interest rate contracts
Financial Products	—			Interest expense of Financial Products	1			—
	$	6			$	(24	)	$	—

The effect of derivatives not designated as hedging instruments on the Consolidated Statement of Results of Operations is as follows:




(Millions of dollars)	Classification of Gains (Losses)	Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
Foreign exchange contracts
Machinery, Energy & Transportation	Other income (expense)	$	6		$	16
Financial Products	Other income (expense)	(29		)	(7		)
Commodity contracts
Machinery, Energy & Transportation	Other income (expense)	23			(9		)
		$	—		$	—

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We enter into International Swaps and Derivatives Association (ISDA) master netting agreements within Machinery, Energy & Transportation and Financial Products that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits the company or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event.

Collateral is generally not required of the counterparties or of our company under the master netting agreements. As of March 31, 2019 and December 31, 2018, no cash collateral was received or pledged under the master netting agreements.

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The effect of the net settlement provisions of the master netting agreements on our derivative balances upon an event of default or termination event is as follows:




March 31, 2019							Gross Amounts Not Offset in the Statement of Financial Position
(Millions of dollars)	Gross Amount of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amount of Assets Presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Received		Net Amount of Assets
Derivatives
Machinery, Energy & Transportation	$	27	$	—	$	27	$	(19	)	$	—	$	8
Financial Products	106		—		106		(22		)	—		84
Total	$	133	$	—	$	133	$	(41	)	$	—	$	92



March 31, 2019									Gross Amounts Not Offset in the Statement of Financial Position
(Millions of dollars)	Gross Amount of Recognized Liabilities			Gross Amounts Offset in the Statement of Financial Position		Net Amount of Liabilities Presented in the Statement of Financial Position			Financial Instruments		Cash Collateral Pledged		Net Amount of Liabilities
Derivatives
Machinery, Energy & Transportation	$	(32	)	$	—	$	(32	)	$	19	$	—	$	(13	)
Financial Products	(76		)	—		(76		)	22		—		(54		)
Total	$	(108	)	$	—	$	(108	)	$	41	$	—	$	(67	)



December 31, 2018							Gross Amounts Not Offset in the Statement of Financial Position
(Millions of dollars)	Gross Amount of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amount of Assets Presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Received		Net Amount of Assets
Derivatives
Machinery, Energy & Transportation	$	19	$	—	$	19	$	(19	)	$	—	$	—
Financial Products	112		—		112		(34		)	—		78
Total	$	131	$	—	$	131	$	(53	)	$	—	$	78



December 31, 2018									Gross Amounts Not Offset in the Statement of Financial Position
(Millions of dollars)	Gross Amount of Recognized Liabilities			Gross Amounts Offset in the Statement of Financial Position		Net Amount of Liabilities Presented in the Statement of Financial Position			Financial Instruments		Cash Collateral Pledged		Net Amount of Liabilities
Derivatives
Machinery, Energy & Transportation	$	(87	)	$	—	$	(87	)	$	19	$	—	$	(68	)
Financial Products	(63		)	—		(63		)	34		—		(29		)
Total	$	(150	)	$	—	$	(150	)	$	53	$	—	$	(97	)

Table of Contents

6. Inventories

Inventories (principally using the last-in, first-out (LIFO) method) are comprised of the following:




(Millions of dollars)	March 31, 2019		December 31, 2018
Raw materials	$	3,592	$	3,382
Work-in-process	2,737		2,674
Finished goods	5,785		5,241
Supplies	226		232
Total inventories	$	12,340	$	11,529

7. Intangible assets and goodwill

A. Intangible assets

Intangible assets are comprised of the following:




		March 31, 2019
(Millions of dollars)	Weighted Amortizable Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net
Customer relationships	15	$	2,450	$	(1,283	)	$	1,167
Intellectual property	12	1,522		(966		)	556
Other	13	199		(115		)	84
Total finite-lived intangible assets	14	$	4,171	$	(2,364	)	$	1,807



		December 31, 2018
	Weighted Amortizable Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net
Customer relationships	15	$	2,463	$	(1,249	)	$	1,214
Intellectual property	11	1,557		(965		)	592
Other	13	199		(108		)	91
Total finite-lived intangible assets	14	$	4,219	$	(2,322	)	$	1,897

Amortization expense for the three months ended March 31, 2019 and 2018 was $82 million and $83 million, respectively. Amortization expense related to intangible assets is expected to be:



(Millions of dollars)

Remaining Nine Months of 2019	2020	2021	2022	2023	Thereafter
$243	$310	$292	$273	$215	$474

B. Goodwill

No goodwill was impaired during the three months ended March 31, 2019 or 2018.

Table of Contents

The changes in carrying amount of goodwill by reportable segment for the three months ended March 31, 2019 were as follows:




(Millions of dollars)	December 31, 2018			Other Adjustments ¹			March 31, 2019
Construction Industries
Goodwill	$	304		$	(1	)	$	303
Impairments	(22		)	—			(22		)
Net goodwill	282			(1		)	281
Resource Industries
Goodwill	4,172			(14		)	4,158
Impairments	(1,175		)	—			(1,175		)
Net goodwill	2,997			(14		)	2,983
Energy & Transportation
Goodwill	2,882			(10		)	2,872
All Other ²
Goodwill	56			(1		)	55
Consolidated total
Goodwill	7,414			(26		)	7,388
Impairments	(1,197		)	—			(1,197		)
Net goodwill	$	6,217		$	(26	)	$	6,191

¹ Other adjustments are comprised primarily of foreign currency translation.

²Includes All Other operating segment (See Note 16).

8. Investments in debt and equity securities

We have investments in certain debt and equity securities, primarily at Insurance Services, which are recorded at fair value and are primarily included in Other assets in the Consolidated Statement of Financial Position.

Debt securities have been classified as available-for-sale and the unrealized gains and losses arising from the revaluation of these debt securities are included, net of applicable deferred income taxes, in equity (Accumulated other comprehensive income (loss) in the Consolidated Statement of Financial Position). The unrealized gains and losses arising from the revaluation of the equity securities are included in Other income (expense) in the Consolidated Statement of Results of Operations. Realized gains and losses on sales of investments are generally determined using the specific identification method for debt and equity securities and are included in Other income (expense) in the Consolidated Statement of Results of Operations.

Table of Contents

The cost basis and fair value of debt securities with unrealized gains and losses included in equity (Accumulated other comprehensive income (loss) in the Consolidated Statement of Financial Position) were as follows:



	March 31, 2019							December 31, 2018
(Millions of dollars)	Cost Basis		Unrealized Pretax Net Gains (Losses)			Fair Value		Cost Basis		Unrealized Pretax Net Gains (Losses)			Fair Value
Government debt
U.S. treasury bonds	$	9	$	—		$	9	$	9	$	—		$	9
Other U.S. and non-U.S. government bonds	50		—			50		42		—			42

Corporate bonds
Corporate bonds	775		2			777		735		(15		)	720
Asset-backed securities	61		—			61		63		—			63

Mortgage-backed debt securities
U.S. governmental agency	305		(1		)	304		301		(4		)	297
Residential	7		—			7		7		—			7
Commercial	17		—			17		14		(1		)	13
Total debt securities	$	1,224	$	1		$	1,225	$	1,171	$	(20	)	$	1,151



Available-for-sale investments in an unrealized loss position that are not other-than-temporarily impaired:

	March 31, 2019
	Less than 12 months¹				12 months or more ¹				Total
(Millions of dollars)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate bonds
Corporate bonds	$	20	$	—	$	342	$	3	$	362	$	3
Mortgage-backed debt securities
U.S. governmental agency	22		—		156		2		178		2
Total	$	42	$	—	$	498	$	5	$	540	$	5

December 31, 2018

Less than 12 months ¹

12 months or more

Closing Price ($)	Shares Out (MM)	Market Cap ($MM)
$131.20	572	$75,030

10-Q	2019-03-31	Quarter: 2019-03-31
10-K	2018-12-31	Annual: 2018-12-31
10-Q	2018-09-30	Quarter: 2018-09-30
10-Q	2018-06-30	Quarter: 2018-06-30
10-Q	2018-03-31	Quarter: 2018-03-31
10-K	2017-12-31	Annual: 2017-12-31
10-Q	2017-09-30	Quarter: 2017-09-30
10-Q	2017-06-30	Quarter: 2017-06-30
10-Q	2017-03-31	Quarter: 2017-03-31
10-K	2016-12-31	Annual: 2016-12-31
10-Q	2016-09-30	Quarter: 2016-09-30
10-Q	2016-06-30	Quarter: 2016-06-30
10-Q	2016-03-31	Quarter: 2016-03-31
10-K	2015-12-31	Annual: 2015-12-31
10-Q	2015-09-30	Quarter: 2015-09-30
10-Q	2015-06-30	Quarter: 2015-06-30
10-Q	2015-03-31	Quarter: 2015-03-31
10-K	2014-12-31	Annual: 2014-12-31
10-Q	2014-09-30	Quarter: 2014-09-30
10-Q	2014-06-30	Quarter: 2014-06-30
10-Q	2014-03-31	Quarter: 2014-03-31
10-K	2013-12-31	Annual: 2013-12-31

8-K	2019-06-14	Shareholder Vote
8-K	2019-06-13	Regulation FD
8-K	2019-05-13	Regulation FD
8-K	2019-05-02	Regulation FD, Exhibits
8-K	2019-04-24	Regulation FD
8-K	2019-04-24	Earnings, Exhibits
8-K	2019-03-13	Regulation FD
8-K	2019-02-15	Officers
8-K	2019-02-13	Regulation FD
8-K	2019-02-13	Officers, Other Events
8-K	2019-01-28	Earnings, Exhibits
8-K	2019-01-28	Earnings, Exhibits
8-K	2019-01-28	Regulation FD
8-K	2018-12-13	Regulation FD
8-K	2018-12-12	Other Events, Exhibits
8-K	2018-12-11	Officers
8-K	2018-11-13	Regulation FD
8-K	2018-10-23	Earnings, Exhibits
8-K	2018-10-23	Earnings, Exhibits
8-K	2018-10-22	Regulation FD
8-K	2018-09-14	Regulation FD
8-K	2018-09-06	Enter Agreement, Off-BS Arrangement, Exhibits
8-K	2018-08-13	Regulation FD
8-K	2018-07-30	Earnings, Exhibits
8-K	2018-07-27	Regulation FD
8-K	2018-06-13	Regulation FD, Exhibits
8-K	2018-06-13	Shareholder Vote
8-K	2018-06-13	Regulation FD
8-K	2018-05-11	Regulation FD
8-K	2018-04-30	Officers, Exhibits
8-K	2018-04-24	Earnings, Exhibits
8-K	2018-04-23	Regulation FD
8-K	2018-04-11	Other Events, Exhibits
8-K	2018-04-06	Officers, Exhibits
8-K	2018-03-13	Regulation FD
8-K	2018-02-13	Regulation FD
8-K	2018-01-25	Earnings, Exhibits
8-K	2018-01-24	Regulation FD
8-K	2017-12-31	Officers

PVH	PVH	9,050
ONCE	Spark Therapeutics	4,250
RH	RH	2,090
GNW	Genworth Financial	1,850
TPRE	Third Point Reinsurance	1,090
LION	Fidelity Southern	803
CPSH	CPS Technologies	17
PRLX	Parallax Health Sciences	0
GFNL	Genesis Financial	0
LIBE	Liberated Solutions	0

EX-10.1	a101_1stxamendmentxddcp.htm
EX-10.2	a102_3rdxamendmentxtoxrest.htm
EX-10.3	a103_formxofxnqso-award.htm
EX-10.4	a104_addendumxformxofxnqso.htm
EX-10.5	a105_formxofxprsuxaward.htm
EX-31.1	ex_311x3x31x2019.htm
EX-31.2	cat_exx312x3x31x2019.htm
EX-32	ex_32x3x31x2019.htm