CATERPILLAR INC [CAT] Filings

10-Q 1 cat-20220630.htm 10-Q cat-20220630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2022

☐ 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

37-0602744

(State or other jurisdiction of incorporation)

(IRS Employer I.D. No.)

510 Lake Cook Road,

Suite 100,

Deerfield,

Illinois

60015

(Address of principal executive offices)

(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

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	¹
8% Debentures due February 15, 2023	CAT23	New York Stock Exchange
5.3% Debentures due September 15, 2035	CAT35	New York Stock Exchange

¹ In addition to the New York Stock Exchange, Caterpillar common stock is also listed on stock exchanges in France and Switzerland.

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 ☒ 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 ☒ 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	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		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. ☐

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

At June 30, 2022, 527,909,143 shares of common stock of the registrant were outstanding.

Table of Contents


Part I. Financial Information
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	45
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	74
Item 4.	Controls and Procedures	74

Part II. Other Information
Item 1.	Legal Proceedings	75
Item 1A.	Risk Factors	75
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	75
Item 3.	Defaults Upon Senior Securities	*
Item 4.	Mine Safety Disclosures	*
Item 5.	Other Information	*
Item 6.	Exhibits	76

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

Table of Contents

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 June 30
	2022		2021
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	13,539	$	12,193
Revenues of Financial Products	708		696
Total sales and revenues	14,247		12,889

Operating costs:
Cost of goods sold	9,975		8,881
Selling, general and administrative expenses	1,425		1,364
Research and development expenses	480		446
Interest expense of Financial Products	120		116
Other operating (income) expenses	303		293
Total operating costs	12,303		11,100

Operating profit	1,944		1,789

Interest expense excluding Financial Products	108		120
Other income (expense)	260		201

Consolidated profit before taxes	2,096		1,870

Provision (benefit) for income taxes	427		470
Profit of consolidated companies	1,669		1,400

Equity in profit (loss) of unconsolidated affiliated companies	4		14

Profit of consolidated and affiliated companies	1,673		1,414

Less: Profit (loss) attributable to noncontrolling interests	—		1

Profit 1	$	1,673	$	1,413

Profit per common share	$	3.15	$	2.58

Profit per common share – diluted 2	$	3.13	$	2.56

Weighted-average common shares outstanding (millions)
– Basic	531.0		547.9
– Diluted 2	534.1		552.1

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.

Table of Contents

Caterpillar Inc.

Consolidated Statement of Comprehensive Income

(Unaudited)

(Dollars in millions)


	Three Months Ended June 30
	2022		2021

Profit of consolidated and affiliated companies	$	1,673	$	1,414
Other comprehensive income (loss), net of tax (Note 13):
Foreign currency translation:	(659)		99
Pension and other postretirement benefits:	(1)		(7)
Derivative financial instruments:	(86)		43
Available-for-sale securities:	(43)		1

Total other comprehensive income (loss), net of tax	(789)		136
Comprehensive income	884		1,550
Less: comprehensive income attributable to the noncontrolling interests	—		1
Comprehensive income attributable to shareholders	$	884	$	1,549

See accompanying notes to Consolidated Financial Statements.

Table of Contents

Caterpillar Inc.

Consolidated Statement of Results of Operations

(Unaudited)

(Dollars in millions except per share data)


	Six Months Ended June 30
	2022		2021
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	26,425	$	23,384
Revenues of Financial Products	1,411		1,392
Total sales and revenues	27,836		24,776

Operating costs:
Cost of goods sold	19,534		16,893
Selling, general and administrative expenses	2,771		2,603
Research and development expenses	937		820
Interest expense of Financial Products	226		241
Other operating (income) expenses	569		616
Total operating costs	24,037		21,173

Operating profit	3,799		3,603

Interest expense excluding Financial Products	217		262
Other income (expense)	513		526

Consolidated profit before taxes	4,095		3,867

Provision (benefit) for income taxes	896		945
Profit of consolidated companies	3,199		2,922

Equity in profit (loss) of unconsolidated affiliated companies	11		23

Profit of consolidated and affiliated companies	3,210		2,945

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

Profit 1	$	3,210	$	2,943

Profit per common share	$	6.03	$	5.38

Profit per common share – diluted 2	$	5.99	$	5.33

Weighted-average common shares outstanding (millions)
– Basic	532.6		547.1
– Diluted 2	536.1		551.8

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.

Table of Contents

Caterpillar Inc.

Consolidated Statement of Comprehensive Income

(Unaudited)

(Dollars in millions)


	Six Months Ended June 30
	2022		2021

Profit of consolidated and affiliated companies	$	3,210	$	2,945
Other comprehensive income (loss), net of tax (Note 13):
Foreign currency translation:	(774)		(248)
Pension and other postretirement benefits:	(2)		(15)
Derivative financial instruments:	(63)		12
Available-for-sale securities:	(107)		(15)

Total other comprehensive income (loss), net of tax	(946)		(266)
Comprehensive income	2,264		2,679
Less: comprehensive income attributable to the noncontrolling interests	—		2
Comprehensive income attributable to shareholders	$	2,264	$	2,677

See accompanying notes to Consolidated Financial Statements.

Table of Contents

Caterpillar Inc.

Consolidated Statement of Financial Position

(Unaudited)

(Dollars in millions)


	June 30, 2022		December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	6,014	$	9,254
Receivables – trade and other	8,393		8,477
Receivables – finance	8,922		8,898

Prepaid expenses and other current assets	2,772		2,788
Inventories	15,881		14,038
Total current assets	41,982		43,455

Property, plant and equipment – net	11,744		12,090
Long-term receivables – trade and other	1,197		1,204
Long-term receivables – finance	12,372		12,707

Noncurrent deferred and refundable income taxes	2,121		1,840
Intangible assets	889		1,042
Goodwill	6,195		6,324
Other assets	4,607		4,131
Total assets	$	81,107	$	82,793

Liabilities
Current liabilities:
Short-term borrowings:
Machinery, Energy & Transportation	$	—	$	9
Financial Products	5,002		5,395
Accounts payable	8,092		8,154
Accrued expenses	3,782		3,757
Accrued wages, salaries and employee benefits	1,772		2,242
Customer advances	1,608		1,087
Dividends payable	633		595
Other current liabilities	2,333		2,256
Long-term debt due within one year:
Machinery, Energy & Transportation	124		45
Financial Products	5,617		6,307
Total current liabilities	28,963		29,847

Long-term debt due after one year:
Machinery, Energy & Transportation	9,589		9,746
Financial Products	16,630		16,287
Liability for postemployment benefits	5,160		5,592
Other liabilities	5,006		4,805
Total liabilities	65,348		66,277
Commitments and contingencies (Notes 11 and 14)

Shareholders’ equity
Common stock of $1.00 par value:
Authorized shares: 2,000,000,000 Issued shares: (6/30/22 and 12/31/21 – 814,894,624) at paid-in amount	6,464		6,398
Treasury stock (6/30/22 – 286,985,481 shares; 12/31/21 – 279,006,573 shares) at cost	(29,501)		(27,643)
Profit employed in the business	41,263		39,282
Accumulated other comprehensive income (loss)	(2,499)		(1,553)
Noncontrolling interests	32		32
Total shareholders’ equity	15,759		16,516
Total liabilities and shareholders’ equity	$	81,107	$	82,793

See accompanying notes to Consolidated Financial Statements.

Table of Contents

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 June 30, 2021
Balance at March 31, 2021	$	6,215	$	(25,049)	$	36,697	$	(1,290)	$	44	$	16,617
Profit of consolidated and affiliated companies	—		—		1,413		—		1		1,414
Foreign currency translation, net of tax	—		—		—		99		—		99
Pension and other postretirement benefits, net of tax	—		—		—		(7)		—		(7)
Derivative financial instruments, net of tax	—		—		—		43		—		43
Available-for-sale securities, net of tax	—		—		—		1		—		1

Dividends declared 1	—		—		(1,176)		—		—		(1,176)

Common shares issued from treasury stock for stock-based compensation: 869,892	(2)		60		—		—		—		58
Stock-based compensation expense	69		—		—		—		—		69

Common shares repurchased: 1,161,955 2	—		(251)		—		—		—		(251)
Other	11		—		—		—		2		13
Balance at June 30, 2021	$	6,293	$	(25,240)	$	36,934	$	(1,154)	$	47	$	16,880

Three Months Ended June 30, 2022
Balance at March 31, 2022	$	6,281	$	(28,326)	$	40,820	$	(1,710)	$	32	$	17,097
Profit of consolidated and affiliated companies	—		—		1,673		—		—		1,673
Foreign currency translation, net of tax	—		—		—		(659)		—		(659)
Pension and other postretirement benefits, net of tax	—		—		—		(1)		—		(1)
Derivative financial instruments, net of tax	—		—		—		(86)		—		(86)
Available-for-sale securities, net of tax	—		—		—		(43)		—		(43)

Dividends declared 1	—		—		(1,230)		—		—		(1,230)

Common shares issued from treasury stock for stock-based compensation: 416,751	4		28		—		—		—		32
Stock-based compensation expense	67		—		—		—		—		67
Common shares repurchased: 5,860,813 2	—		(1,204)		—		—		—		(1,204)

Other	112		1		—		—		—		113
Balance at June 30, 2022	$	6,464	$	(29,501)	$	41,263	$	(2,499)	$	32	$	15,759

1 Dividends per share of common stock of $2.31 and $2.14 were declared in the three months ended June 30, 2022 and 2021, respectively.

2 See Note 12 for additional information.

See accompanying notes to Consolidated Financial Statements.

Table of Contents

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
Six Months Ended June 30, 2021
Balance at December 31, 2020	$	6,230	$	(25,178)	$	35,167	$	(888)	$	47	$	15,378




Profit of consolidated and affiliated companies	—		—		2,943		—		2		2,945
Foreign currency translation, net of tax	—		—		—		(248)		—		(248)
Pension and other postretirement benefits, net of tax	—		—		—		(15)		—		(15)
Derivative financial instruments, net of tax	—		—		—		12		—		12
Available-for-sale securities, net of tax	—		—		—		(15)		—		(15)

Dividends declared 1	—		—		(1,176)		—		—		(1,176)
Distribution to noncontrolling interests	—		—		—		—		(2)		(2)
Common shares issued from treasury stock for stock-based compensation: 3,329,575	(65)		188		—		—		—		123

CATERPILLAR INC [CAT] Filings
10-Q	[2022-08-03]
10-Q	[2022-05-04]
10-K	[2022-02-16]
10-Q	[2021-11-03]
10-Q	[2021-08-04]
10-Q	[2021-05-05]
10-K	[2021-02-17]
10-Q	[2020-11-04]
10-Q	[2020-08-05]
10-Q	[2020-05-06]
10-K	[2020-02-19]
10-Q	[2019-10-31]
10-Q	[2019-08-01]
10-Q	[2019-05-06]
10-K	[2019-02-14]
10-Q	[2018-10-31]
10-Q	[2018-08-07]
10-Q	[2018-05-02]
10-K	[2018-02-15]
10-Q	[2017-11-01]
10-Q	[2017-08-02]
10-Q	[2017-05-03]
10-K	[2017-02-15]
10-Q	[2016-11-02]
10-Q	[2016-08-03]
10-Q	[2016-05-02]
10-K	[2016-02-16]
10-Q	[2015-10-30]
10-Q	[2015-07-31]
10-Q	[2015-05-01]
10-K	[2015-02-17]
10-Q	[2014-10-31]
10-Q	[2014-08-01]
10-Q	[2014-05-02]
10-K	[2014-02-18]
10-Q	[2013-11-01]
10-Q	[2013-08-02]
10-Q	[2013-05-02]
10-K	[2013-02-19]
10-Q	[2012-11-02]
10-Q	[2012-08-06]
10-Q	[2012-05-07]
10-K	[2012-02-21]