CATERPILLAR INC [CAT] Filings

10-Q 1 cat-20210930.htm 10-Q cat-20210930

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 September 30, 2021

☐ 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 September 30, 2021, 540,941,600 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	49
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	79
Item 4.	Controls and Procedures	79

Part II. Other Information
Item 1.	Legal Proceedings	80
Item 1A.	Risk Factors	80
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	80
Item 3.	Defaults Upon Senior Securities	*
Item 4.	Mine Safety Disclosures	*
Item 5.	Other Information	*
Item 6.	Exhibits	81

* 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 September 30
	2021		2020
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	11,707	$	9,228
Revenues of Financial Products	690		653
Total sales and revenues	12,397		9,881

Operating costs:
Cost of goods sold	8,617		6,919
Selling, general and administrative expenses	1,340		1,126
Research and development expenses	427		344
Interest expense of Financial Products	111		137
Other operating (income) expenses	238		370
Total operating costs	10,733		8,896

Operating profit	1,664		985

Interest expense excluding Financial Products	114		136
Other income (expense)	225		14

Consolidated profit before taxes	1,775		863

Provision (benefit) for income taxes	368		187
Profit of consolidated companies	1,407		676

Equity in profit (loss) of unconsolidated affiliated companies	21		(5)

Profit of consolidated and affiliated companies	1,428		671

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

Profit 1	$	1,426	$	668

Profit per common share	$	2.62	$	1.23

Profit per common share – diluted 2	$	2.60	$	1.22

Weighted-average common shares outstanding (millions)
– Basic	544.0		542.3
– Diluted 2	547.6		546.4

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 September 30
	2021		2020

Profit of consolidated and affiliated companies	$	1,428	$	671
Other comprehensive income (loss), net of tax (Note 13):
Foreign currency translation:	(242)		291
Pension and other postretirement benefits:	(8)		(8)
Derivative financial instruments:	(31)		76
Available-for-sale securities:	(5)		8

Total other comprehensive income (loss), net of tax	(286)		367
Comprehensive income	1,142		1,038
Less: comprehensive income attributable to the noncontrolling interests	2		3
Comprehensive income attributable to shareholders	$	1,140	$	1,035

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)


	Nine Months Ended September 30
	2021		2020
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	35,091	$	28,452
Revenues of Financial Products	2,082		2,061
Total sales and revenues	37,173		30,513

Operating costs:
Cost of goods sold	25,510		21,298
Selling, general and administrative expenses	3,943		3,426
Research and development expenses	1,247		1,041
Interest expense of Financial Products	352		461
Other operating (income) expenses	854		1,114
Total operating costs	31,906		27,340

Operating profit	5,267		3,173

Interest expense excluding Financial Products	376		384
Other income (expense)	751		265

Consolidated profit before taxes	5,642		3,054

Provision (benefit) for income taxes	1,313		839
Profit of consolidated companies	4,329		2,215

Equity in profit (loss) of unconsolidated affiliated companies	44		8

Profit of consolidated and affiliated companies	4,373		2,223

Less: Profit (loss) attributable to noncontrolling interests	4		5

Profit 1	$	4,369	$	2,218

Profit per common share	$	8.00	$	4.08

Profit per common share – diluted 2	$	7.94	$	4.05

Weighted-average common shares outstanding (millions)
– Basic	545.8		543.9
– Diluted 2	550.2		547.8

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)


	Nine Months Ended September 30
	2021		2020

Profit of consolidated and affiliated companies	$	4,373	$	2,223
Other comprehensive income (loss), net of tax (Note 13):
Foreign currency translation:	(490)		106
Pension and other postretirement benefits:	(23)		(20)
Derivative financial instruments:	(19)		4
Available-for-sale securities:	(20)		29

Total other comprehensive income (loss), net of tax	(552)		119
Comprehensive income	3,821		2,342
Less: comprehensive income attributable to the noncontrolling interests	4		5
Comprehensive income attributable to shareholders	$	3,817	$	2,337

See accompanying notes to Consolidated Financial Statements.

Table of Contents

Caterpillar Inc.

Consolidated Statement of Financial Position

(Unaudited)

(Dollars in millions)


	September 30, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	9,446	$	9,352
Receivables – trade and other	7,647		7,317
Receivables – finance	8,919		9,463

Prepaid expenses and other current assets	2,215		1,930
Inventories	13,666		11,402
Total current assets	41,893		39,464

Property, plant and equipment – net	11,904		12,401
Long-term receivables – trade and other	1,273		1,185
Long-term receivables – finance	12,605		12,222

Noncurrent deferred and refundable income taxes	1,744		1,523
Intangible assets	1,121		1,308
Goodwill	6,353		6,394
Other assets	3,891		3,827
Total assets	$	80,784	$	78,324

Liabilities
Current liabilities:
Short-term borrowings:
Machinery, Energy & Transportation	$	—	$	10
Financial Products	3,247		2,005
Accounts payable	7,218		6,128
Accrued expenses	3,579		3,642
Accrued wages, salaries and employee benefits	2,075		1,096
Customer advances	1,155		1,108
Dividends payable	—		562
Other current liabilities	2,319		2,017
Long-term debt due within one year:
Machinery, Energy & Transportation	48		1,420
Financial Products	6,335		7,729
Total current liabilities	25,976		25,717

Long-term debt due after one year:
Machinery, Energy & Transportation	9,759		9,749
Financial Products	17,395		16,250
Liability for postemployment benefits	6,395		6,872
Other liabilities	4,564		4,358
Total liabilities	64,089		62,946
Commitments and contingencies (Notes 11 and 14)

Shareholders’ equity
Common stock of $1.00 par value:
Authorized shares: 2,000,000,000 Issued shares: (9/30/21 and 12/31/20 – 814,894,624) at paid-in amount	6,352		6,230
Treasury stock (9/30/21 – 273,953,024 shares; 12/31/20 – 269,590,777 shares) at cost	(26,608)		(25,178)
Profit employed in the business	38,361		35,167
Accumulated other comprehensive income (loss)	(1,440)		(888)
Noncontrolling interests	30		47
Total shareholders’ equity	16,695		15,378
Total liabilities and shareholders’ equity	$	80,784	$	78,324

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 September 30, 2020
Balance at June 30, 2020	$	6,120	$	(25,412)	$	34,841	$	(1,815)	$	43	$	13,777
Profit of consolidated and affiliated companies	—		—		668		—		3		671
Foreign currency translation, net of tax	—		—		—		291		—		291
Pension and other postretirement benefits, net of tax	—		—		—		(8)		—		(8)
Derivative financial instruments, net of tax	—		—		—		76		—		76
Available-for-sale securities, net of tax	—		—		—		8		—		8



Common shares issued from treasury stock for stock-based compensation: 1,751,708	23		97		—		—		—		120
Stock-based compensation expense	55		—		—		—		—		55


Other	6		—		(1)		—		(1)		4
Balance at September 30, 2020	$	6,204	$	(25,315)	$	35,508	$	(1,448)	$	45	$	14,994

Three Months Ended September 30, 2021
Balance at June 30, 2021	$	6,293	$	(25,240)	$	36,934	$	(1,154)	$	47	$	16,880
Profit of consolidated and affiliated companies	—		—		1,426		—		2		1,428
Foreign currency translation, net of tax	—		—		—		(242)		—		(242)
Pension and other postretirement benefits, net of tax	—		—		—		(8)		—		(8)
Derivative financial instruments, net of tax	—		—		—		(31)		—		(31)
Available-for-sale securities, net of tax	—		—		—		(5)		—		(5)
Change in ownership from noncontrolling interests	—		—		—		—		(16)		(16)
Dividends declared	—		—		1		—		—		1
Distribution to noncontrolling interests	—		—		—		—		(2)		(2)
Common shares issued from treasury stock for stock-based compensation: 80,571	(5)		4		—		—		—		(1)
Stock-based compensation expense	58		—		—		—		—		58
Common shares repurchased: 6,610,4381	—		(1,371)		—		—		—		(1,371)

Other	6		(1)		—		—		(1)		4
Balance at September 30, 2021	$	6,352	$	(26,608)	$	38,361	$	(1,440)	$	30	$	16,695

1 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

Nine Months Ended September 30, 2020

Balance at December 31, 2019

CATERPILLAR INC [CAT] Filings
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]