CATERPILLAR INC [CAT] Filings

10-Q 1 cat-20220930.htm 10-Q cat-20220930

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, 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.)

5205 N. O'Connor Boulevard,

Suite 100,

Irving,

Texas

75039

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (972) 891-7700

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, 2022, 520,409,355 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	75
Item 4.	Controls and Procedures	75

Part II. Other Information
Item 1.	Legal Proceedings	76
Item 1A.	Risk Factors	76
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.

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
	2022		2021
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	14,278	$	11,707
Revenues of Financial Products	716		690
Total sales and revenues	14,994		12,397

Operating costs:
Cost of goods sold	10,202		8,617
Selling, general and administrative expenses	1,401		1,340
Research and development expenses	476		427
Interest expense of Financial Products	151		111
Other operating (income) expenses	339		238
Total operating costs	12,569		10,733

Operating profit	2,425		1,664

Interest expense excluding Financial Products	109		114
Other income (expense)	242		225

Consolidated profit before taxes	2,558		1,775

Provision (benefit) for income taxes	527		368
Profit of consolidated companies	2,031		1,407

Equity in profit (loss) of unconsolidated affiliated companies	9		21

Profit of consolidated and affiliated companies	2,040		1,428

Less: Profit (loss) attributable to noncontrolling interests	(1)		2

Profit 1	$	2,041	$	1,426

Profit per common share	$	3.89	$	2.62

Profit per common share – diluted 2	$	3.87	$	2.60

Weighted-average common shares outstanding (millions)
– Basic	525.0		544.0
– Diluted 2	527.6		547.6

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
	2022		2021

Profit of consolidated and affiliated companies	$	2,040	$	1,428
Other comprehensive income (loss), net of tax (Note 13):
Foreign currency translation:	(618)		(242)
Pension and other postretirement benefits:	(1)		(8)
Derivative financial instruments:	(191)		(31)
Available-for-sale securities:	(44)		(5)

Total other comprehensive income (loss), net of tax	(854)		(286)
Comprehensive income	1,186		1,142
Less: comprehensive income attributable to the noncontrolling interests	(1)		2
Comprehensive income attributable to shareholders	$	1,187	$	1,140

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
	2022		2021
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	40,703	$	35,091
Revenues of Financial Products	2,127		2,082
Total sales and revenues	42,830		37,173

Operating costs:
Cost of goods sold	29,736		25,510
Selling, general and administrative expenses	4,172		3,943
Research and development expenses	1,413		1,247
Interest expense of Financial Products	377		352
Other operating (income) expenses	908		854
Total operating costs	36,606		31,906

Operating profit	6,224		5,267

Interest expense excluding Financial Products	326		376
Other income (expense)	755		751

Consolidated profit before taxes	6,653		5,642

Provision (benefit) for income taxes	1,423		1,313
Profit of consolidated companies	5,230		4,329

Equity in profit (loss) of unconsolidated affiliated companies	20		44

Profit of consolidated and affiliated companies	5,250		4,373

Less: Profit (loss) attributable to noncontrolling interests	(1)		4

Profit 1	$	5,251	$	4,369

Profit per common share	$	9.91	$	8.00

Profit per common share – diluted 2	$	9.85	$	7.94

Weighted-average common shares outstanding (millions)
– Basic	530.1		545.8
– Diluted 2	533.2		550.2

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
	2022		2021

Profit of consolidated and affiliated companies	$	5,250	$	4,373
Other comprehensive income (loss), net of tax (Note 13):
Foreign currency translation:	(1,392)		(490)
Pension and other postretirement benefits:	(3)		(23)
Derivative financial instruments:	(254)		(19)
Available-for-sale securities:	(151)		(20)

Total other comprehensive income (loss), net of tax	(1,800)		(552)
Comprehensive income	3,450		3,821
Less: comprehensive income attributable to the noncontrolling interests	(1)		4
Comprehensive income attributable to shareholders	$	3,451	$	3,817

See accompanying notes to Consolidated Financial Statements.

Table of Contents

Caterpillar Inc.

Consolidated Statement of Financial Position

(Unaudited)

(Dollars in millions)


	September 30, 2022		December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	6,346	$	9,254
Receivables – trade and other	8,158		8,477
Receivables – finance	8,918		8,898

Prepaid expenses and other current assets	2,295		2,788
Inventories	16,860		14,038
Total current assets	42,577		43,455

Property, plant and equipment – net	11,643		12,090
Long-term receivables – trade and other	1,278		1,204
Long-term receivables – finance	11,859		12,707

Noncurrent deferred and refundable income taxes	2,218		1,840
Intangible assets	806		1,042
Goodwill	6,092		6,324
Other assets	4,434		4,131
Total assets	$	80,907	$	82,793

Liabilities
Current liabilities:
Short-term borrowings:
Machinery, Energy & Transportation	$	3	$	9
Financial Products	4,199		5,395
Accounts payable	8,260		8,154
Accrued expenses	4,013		3,757
Accrued wages, salaries and employee benefits	2,204		2,242
Customer advances	1,831		1,087
Dividends payable	—		595
Other current liabilities	2,878		2,256
Long-term debt due within one year:
Machinery, Energy & Transportation	120		45
Financial Products	6,694		6,307
Total current liabilities	30,202		29,847

Long-term debt due after one year:
Machinery, Energy & Transportation	9,479		9,746
Financial Products	16,030		16,287
Liability for postemployment benefits	5,038		5,592
Other liabilities	4,536		4,805
Total liabilities	65,285		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: (9/30/22 and 12/31/21 – 814,894,624) at paid-in amount	6,523		6,398
Treasury stock: (9/30/22 – 294,485,269 shares; 12/31/21 – 279,006,573 shares) at cost	(30,883)		(27,643)
Profit employed in the business	43,304		39,282
Accumulated other comprehensive income (loss)	(3,353)		(1,553)
Noncontrolling interests	31		32
Total shareholders’ equity	15,622		16,516
Total liabilities and shareholders’ equity	$	80,907	$	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 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: 6,610,438 1	—		(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

Three Months Ended September 30, 2022
Balance at June 30, 2022	$	6,464	$	(29,501)	$	41,263	$	(2,499)	$	32	$	15,759
Profit of consolidated and affiliated companies	—		—		2,041		—		(1)		2,040
Foreign currency translation, net of tax	—		—		—		(618)		—		(618)
Pension and other postretirement benefits, net of tax	—		—		—		(1)		—		(1)
Derivative financial instruments, net of tax	—		—		—		(191)		—		(191)
Available-for-sale securities, net of tax	—		—		—		(44)		—		(44)



Common shares issued from treasury stock for stock-based compensation: 75,534	(5)		4		—		—		—		(1)
Stock-based compensation expense	55		—		—		—		—		55
Common shares repurchased: 7,575,322 1	—		(1,385)		—		—		—		(1,385)

Other	9		(1)		—		—		—		8
Balance at September 30, 2022	$	6,523	$	(30,883)	$	43,304	$	(3,353)	$	31	$	15,622

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




Profit of consolidated and affiliated companies	—		—		4,369		—		4		4,373
Foreign currency translation, net of tax	—		—		—		(490)		—		(490)
Pension and other postretirement benefits, net of tax	—		—		—		(23)		—		(23)
Derivative financial instruments, net of tax	—		—		—		(19)		—		(19)
Available-for-sale securities, net of tax	—		—		—		(20)		—		(20)
Change in ownership from noncontrolling interests	—		—		—		—		(16)		(16)
Dividends declared 1	—		—		(1,175)

CATERPILLAR INC [CAT] Filings
10-Q	[2022-11-02]
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]