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Published: 2021-04-29 00:00:00 ET
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EX-99.1 2 cat_exx991x1qx2021xearning.htm EX-99.1 Document

Exhibit 99.1
Caterpillar Inc.                                     
1Q 2021 Earnings Release

April 29, 2021

FOR IMMEDIATE RELEASE
Caterpillar Reports First-Quarter 2021 Results
First Quarter
($ in billions except profit per share)20212020
Sales and Revenues$11.9$10.6●
Sales and revenues increased 12%
Profit Per Share$2.77$1.98●
First-quarter 2021 profit per share of $2.77; adjusted profit per share of $2.87

Adjusted Profit Per Share$2.87$1.65●
Strong balance sheet with $11.3 billion of enterprise cash on hand

DEERFIELD, Ill. – Caterpillar Inc. (NYSE: CAT) today announced first-quarter 2021 sales and revenues of $11.9 billion, a 12% increase compared with $10.6 billion in the first quarter of 2020. The increase was due to higher sales volume driven by higher end-user demand and the impact from changes in dealer inventories. Dealers increased their inventories more during the first quarter of 2021 than during the first quarter of 2020.
Operating profit margin was 15.3% for the first quarter of 2021, compared with 13.2% for the first quarter of 2020. First-quarter 2021 profit per share was $2.77, compared with $1.98 profit per share in the first quarter of 2020. Adjusted profit per share in the first quarter of 2021 was $2.87, compared with first-quarter 2020 adjusted profit per share of $1.65. Adjusted profit per share for both quarters excluded restructuring costs, while the first quarter of 2020 also excluded a remeasurement gain of $0.38 per share resulting from the settlement of a non-U.S. pension obligation. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 12.
For the three months ended March 31, 2021, enterprise operating cash flow was $1.9 billion. Caterpillar ended the first quarter with $11.3 billion of enterprise cash.
“I’m proud of our global team’s strong performance as they continue to serve our customers,” said Caterpillar Chairman and CEO Jim Umpleby. “We’re encouraged by improving conditions in our end markets and are proactively managing supply chain risks. Our dedicated team continues to execute our strategy for long-term profitable growth.”

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CONSOLIDATED RESULTS
Consolidated Sales and Revenues
conssalesandrevenues1q20211.jpg
The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the first quarter of 2020 (at left) and the first quarter of 2021 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company’s Board of Directors and employees.
Total sales and revenues for the first quarter of 2021 were $11.887 billion, an increase of $1.252 billion, or 12%, compared with $10.635 billion in the first quarter of 2020. The increase was primarily due to higher sales volume and favorable currency impacts related to the euro and the Australian dollar. The increase in sales volume was driven by higher end-user demand and the impact from changes in dealer inventories. Dealers increased inventories by $700 million during the first quarter of 2021 compared to $100 million during the first quarter of 2020.
Sales were higher across the three primary segments. Sales increased in Asia/Pacific, Latin America and EAME while sales in North America were about flat.
Sales and Revenues by Segment
(Millions of dollars)First Quarter 2020Sales
Volume		Price
Realization		CurrencyInter-Segment / OtherFirst Quarter 2021$
Change		%
Change
Construction Industries$4,306 $1,006 $(23)$146 $24 $5,459 $1,153 27%
Resource Industries2,084 132 (47)33 14 2,216 132 6%
Energy & Transportation4,349 (41)7 74 118 4,507 158 4%
All Other Segment109 9 — 1 11 130 21 19%
Corporate Items and Eliminations(934)(19)(1)— (167)(1,121)(187) 
Machinery, Energy & Transportation9,914 1,087 (64)254 — 11,191 1,277 13%
Financial Products Segment814 — — — (53)761 (53)(7%)
Corporate Items and Eliminations(93)— — — 28 (65)28  
Financial Products Revenues721 — — — (25)696 (25)(3%)
Consolidated Sales and Revenues$10,635 $1,087 $(64)$254 $(25)$11,887 $1,252 12%
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Sales and Revenues by Geographic Region
North AmericaLatin AmericaEAMEAsia/PacificExternal Sales and RevenuesInter-SegmentTotal Sales and Revenues
(Millions of dollars)$% Chg$% Chg$% Chg$% Chg$% Chg$% Chg$% Chg
First Quarter 2021          
Construction Industries$2,126 2%$392 48%$1,081 22%$1,842 72%$5,441 26%$18 400%$5,459 27%
Resource Industries657 (6%)405 27%474 20%561 (1%)2,097 6%119 13%2,216 6%
Energy & Transportation1,782 3%256 3%1,093 4%527 (9%)3,658 1%849 16%4,507 4%
All Other Segment13 160%— (100%)3 (73%)22 120%38 36%92 14%130 19%
Corporate Items and Eliminations(39)— — (4)(43)(1,078)(1,121)
Machinery, Energy & Transportation 4,539 1%1,053 26%2,651 13%2,948 32%11,191 13%— —%11,191 13%
Financial Products Segment476 (9%)62 (11%)100 (2%)123 5%761 (7%)— —%761 (7%)
Corporate Items and Eliminations(24)(11)(8)(22)(65)— (65)
Financial Products Revenues452 (4%)51 (12%)92 (1%)101 2%696 (3%)— —%696 (3%)
Consolidated Sales and Revenues$4,991 —%$1,104 24%$2,743 13%$3,049 31%$11,887 12%$— —%$11,887 12%
First Quarter 2020              
Construction Industries$2,085 $265 $889 $1,073  $4,312 $(6)$4,306 
Resource Industries696 320 395 568  1,979 105 2,084 
Energy & Transportation1,738 249 1,053 578  3,618 731 4,349 
All Other Segment5 2 11 10  28 81 109 
Corporate Items and Eliminations(15)(2)(4)(2)(23)(911)(934)
Machinery, Energy & Transportation4,509  834  2,344  2,227  9,914  —  9,914  
Financial Products Segment525 70 102 117  814 — 814 
Corporate Items and Eliminations(54)(12)(9)(18) (93)— (93)
Financial Products Revenues471  58  93  99  721  —  721  
Consolidated Sales and Revenues$4,980  $892  $2,437  $2,326  $10,635  $—  $10,635  

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Consolidated Operating Profit
consopprofit1q20211.jpg
The chart above graphically illustrates reasons for the change in consolidated operating profit between the first quarter of 2020 (at left) and the first quarter of 2021 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company’s Board of Directors and employees. The bar titled Other includes consolidating adjustments and Machinery, Energy & Transportation’s other operating (income) expenses.
Operating profit for the first quarter of 2021 was $1.814 billion, an increase of $410 million, or 29%, compared with $1.404 billion in the first quarter of 2020. The increase was primarily due to higher sales volume and higher profit from Financial Products, partially offset by higher selling, general and administrative (SG&A) and research and development (R&D) expenses, unfavorable price realization and higher manufacturing costs.
The increase in SG&A/R&D expenses was driven by higher short-term incentive compensation expense, which was reinstated in 2021. Unfavorable manufacturing costs were driven by higher short-term incentive compensation expense, partially offset by favorable material costs and lower warranty expense.
Profit (Loss) by Segment
(Millions of dollars)First Quarter 2021First Quarter 2020$
Change
%
 Change
Construction Industries$1,035 $640 $395 62 %
Resource Industries328 304 24 8 %
Energy & Transportation666 602 64 11 %
All Other Segment3 7 (4)(57 %)
Corporate Items and Eliminations(368)(212)(156) 
Machinery, Energy & Transportation1,664 1,341 323 24 %
Financial Products Segment244 105 139 132 %
Corporate Items and Eliminations(19)47 (66)
Financial Products225 152 73 48 %
Consolidating Adjustments(75)(89)14 
Consolidated Operating Profit$1,814 $1,404 $410 29 %

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Other Profit/Loss and Tax Items
•Other income (expense) in the first quarter of 2021 was income of $325 million, compared with income of $222 million in the first quarter of 2020. The change was due to the absence of a remeasurement gain resulting from the settlement of a non-U.S. pension obligation that occurred in the first quarter of 2020, which was more than offset by the favorable impacts from foreign currency exchange gains (losses), unrealized gains (losses) on marketable securities at Insurance Services, gains (losses) on commodity hedges and favorable pension and other postemployment benefit (OPEB) plan costs.
The company experienced foreign currency exchange net gains in the first quarter of 2021 across several currencies, compared with net losses in the first quarter of 2020. The favorable impact of unrealized gains (losses) on marketable securities was due to unrealized losses in the first quarter of 2020, compared with unrealized gains in the first quarter of 2021. The company experienced net losses in commodity hedges in the first quarter of 2020, compared with net gains in the first quarter of 2021.
•The provision for income taxes for the first quarter of 2021 reflected a lower estimated annual tax rate of 26%, compared with 31% for the first quarter of 2020, excluding the discrete items discussed below. The comparative tax rate for full year 2020 was approximately 28%. The decrease in the estimated annual tax rate from full-year 2020 is primarily related to changes in the expected geographic mix of profits from a tax perspective for 2021.
In addition, a discrete tax benefit of $43 million was recorded in the first quarter of 2021, compared with an $8 million benefit in the first quarter of 2020, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. A $43 million tax charge was also recorded in the first quarter of 2020 related to the $254 million remeasurement gain resulting from the settlement of a non-U.S. pension obligation.



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CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
First Quarter 2020Sales VolumePrice RealizationCurrencyInter-SegmentFirst Quarter 2021$
 Change		%
 Change
Total Sales$4,306 $1,006 $(23)$146 $24 $5,459 $1,153 27 %
Sales by Geographic Region
First Quarter 2021First Quarter 2020$
Change		%
Change
North America$2,126 $2,085 $41 2 %
Latin America392 265 127 48 %
EAME1,081 889 192 22 %
Asia/Pacific1,842 1,073 769 72 %
External Sales5,441 4,312 1,129 26 %
Inter-segment18 (6)24 400 %
Total Sales$5,459 $4,306 $1,153 27 %
Segment Profit
First Quarter 2021First Quarter 2020
Change		%
Change
Segment Profit$1,035 $640 $395 62 %
Segment Profit Margin19.0 %14.9 %4.1  pts
Construction Industries’ total sales were $5.459 billion in the first quarter of 2021, an increase of $1.153 billion, or 27%, compared with $4.306 billion in the first quarter of 2020. The increase was due to higher sales volume driven by higher end-user demand and the impact from changes in dealer inventories. Overall, dealers increased inventories more during the first quarter of 2021 than during the first quarter of 2020.
▪In North America, sales increased slightly due to higher end-user demand partially offset by the impact from changes in dealer inventories and unfavorable price realization. The higher end-user demand was driven primarily by residential construction. Dealers increased inventories more during the first quarter of 2020 than during the first quarter of 2021.
▪Sales increased in Latin America mostly due to higher sales volume driven by higher end-user demand across the region and the impact of changes in dealer inventories, partially offset by unfavorable currency impacts from a weaker Brazilian real. Dealers decreased inventories during the first quarter of 2020, compared with an increase during the first quarter of 2021.
▪In EAME, sales increased due to higher sales volume and favorable currency impacts from a stronger euro. Higher sales volume was driven by higher end-user demand and the impact from changes in dealer inventories. Dealers increased inventories more during the first quarter of 2021 than during the first quarter of 2020.
▪Sales increased in Asia/Pacific primarily due to higher sales volume and favorable currency impacts from a stronger Chinese yuan. The increase in sales was primarily due to higher end-user demand across the region driven mainly by China, reflecting the impact of the pandemic in the first quarter of 2020, and the impact from changes in dealer inventories. Dealers increased inventories during the first quarter of 2021, compared with a decrease during the first quarter of 2020 due to the timing of Chinese New Year.
Construction Industries’ profit was $1.035 billion in the first quarter of 2021, an increase of $395 million, or 62%, compared with $640 million in the first quarter of 2020. The increase was mainly due to higher sales volume.
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RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
First Quarter 2020Sales VolumePrice RealizationCurrencyInter-SegmentFirst Quarter 2021$
 Change		%
 Change
Total Sales$2,084 $132 $(47)$33 $14 $2,216 $132 6 %
Sales by Geographic Region
First Quarter 2021First Quarter 2020$
Change		%
Change
North America$657 $696 $(39)(6 %)
Latin America405 320 85 27 %
EAME474 395 79 20 %
Asia/Pacific561 568 (7)(1 %)
External Sales2,097 1,979 118 6 %
Inter-segment119 105 14 13 %
Total Sales$2,216 $2,084 $132 6 %
Segment Profit
First Quarter 2021First Quarter 2020
Change		%
Change
Segment Profit$328 $304 $24 8 %
Segment Profit Margin14.8 %14.6 %0.2  pts
Resource Industries’ total sales were $2.216 billion in the first quarter of 2021, an increase of $132 million, or 6%, compared with $2.084 billion in the first quarter of 2020. The increase was due to higher sales volume driven by the impacts of changes in dealer inventories, higher end-user demand for equipment and aftermarket parts and favorable currency impact from the Australian dollar, partially offset by unfavorable price realization. Dealers decreased inventories during the first quarter of 2020, compared to remaining about flat during the first quarter of 2021. End-user demand was higher in mining, offset by lower end-user demand in heavy construction and quarry and aggregates.
Resource Industries’ profit was $328 million in the first quarter of 2021, an increase of $24 million, or 8%, compared with $304 million in the first quarter of 2020. The increase was mainly due to favorable manufacturing costs and higher sales volume, partially offset by unfavorable price realization and higher SG&A/R&D expenses. Favorable manufacturing costs reflected favorable cost absorption, lower warranty expense and favorable variable labor and burden. Cost absorption was favorable as company inventory increased more in the first quarter of 2021 than in the first quarter of 2020. The increase in SG&A/R&D expenses was driven by higher short-term incentive compensation expense, partially offset by other cost-reduction actions.


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ENERGY & TRANSPORTATION
(Millions of dollars)
Segment Sales
First Quarter 2020Sales VolumePrice RealizationCurrencyInter-SegmentFirst Quarter 2021$
 Change		%
 Change
Total Sales$4,349 $(41)$7 $74 $118 $4,507 $158 4 %
Sales by Application
First Quarter 2021First Quarter 2020$
Change		%
Change
Oil and Gas$915 $861 $54 6 %
Power Generation963 854 109 13 %
Industrial813 801 12 1 %
Transportation967 1,102 (135)(12 %)
External Sales3,658 3,618 40 1 %
Inter-segment849 731 118 16 %
Total Sales$4,507 $4,349 $158 4 %
Segment Profit
First Quarter 2021First Quarter 2020
Change		%
Change
Segment Profit$666 $602 $64 11 %
Segment Profit Margin14.8 %13.8 %1.0  pts
Energy & Transportation’s total sales were $4.507 billion in the first quarter of 2021, an increase of $158 million, or 4%, compared with $4.349 billion in the first quarter of 2020. Sales growth was driven by Power Generation and Oil and Gas, partially offset by a decrease in Transportation. Inter-segment sales also increased.
▪Oil and Gas – Sales increased mainly due to higher sales of reciprocating engine aftermarket parts primarily driven by North America and EAME.
▪Power Generation – Sales increased due to turbines, turbine-related services and large reciprocating engine applications, including data centers.
▪Industrial – Sales were about flat.
▪Transportation – Sales declined in rail due to lower deliveries of locomotives and related services, primarily in North America, and in marine.
Energy & Transportation’s profit was $666 million in the first quarter of 2021, an increase of $64 million, or 11%, compared with $602 million in the first quarter of 2020. The increase was due to higher sales volume including inter-segment sales and favorable variable manufacturing costs, partially offset by higher SG&A/R&D expenses. Favorable variable manufacturing costs reflected lower material costs and variable labor and burden. The increase in SG&A/R&D expenses was driven by higher short-term compensation expense, partially offset by other cost reduction actions.


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FINANCIAL PRODUCTS SEGMENT
(Millions of dollars)
Revenues by Geographic Region
First Quarter 2021First Quarter 2020$
Change		%
Change
North America$476 $525 $(49)(9 %)
Latin America62 70 (8)(11 %)
EAME100 102 (2)(2 %)
Asia/Pacific123 117 6 5 %
Total Revenues$761 $814 $(53)(7 %)
Segment Profit
First Quarter 2021First Quarter 2020
Change		%
Change
Segment Profit$244 $105 $139 132 %
Financial Products’ segment revenues were $761 million in the first quarter of 2021, a decrease of $53 million, or 7%, from the first quarter of 2020. The decrease was primarily because of lower average financing rates and lower average earning assets in North America.
Financial Products’ segment profit was $244 million in the first quarter of 2021, compared with $105 million in the first quarter of 2020. The increase was primarily due to a favorable impact from equity securities in Insurance Services and lower provision for credit losses at Cat Financial, partially offset by an increase in SG&A expenses primarily due to higher incentive compensation. The impact of lower average financing rates was offset by lower interest expense.
At the end of the first quarter of 2021, past dues at Cat Financial were 2.90%, compared with 4.13% at the end of the first quarter of 2020. Past dues decreased across all portfolio segments as global markets generally improved. Write-offs, net of recoveries, were $24 million for the first quarter of 2021, compared with $30 million for the first quarter of 2020. As of March 31, 2021, Cat Financial's allowance for credit losses totaled $441 million, or 1.64% of finance receivables, compared with $479 million, or 1.77% of finance receivables at December 31, 2020.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $387 million in the first quarter of 2021, an increase of $222 million from the first quarter of 2020, primarily due to an unfavorable change in fair value adjustments related to deferred compensation plans and segment reporting methodology differences.
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Notes
i.Glossary of terms is included on the Caterpillar website at https://investors.caterpillar.com/overview/default.aspx.
ii.End-user demand is demonstrated by the company’s Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Thursday, April 29, 2021.
iii.Information on non-GAAP financial measures is included in the appendix on page 12.
iv.Some amounts within this report are rounded to the millions or billions and may not add.
v.Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7:30 a.m. Central Time on Thursday, April 29, 2021, to discuss its 2021 first-quarter results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx.
About Caterpillar
With 2020 sales and revenues of $41.7 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Since 1925, we’ve been driving sustainable progress and helping customers build a better world through innovative products and services. Throughout the product life cycle, we offer services built on cutting-edge technology and decades of product expertise. These products and services, backed by our global dealer network, provide exceptional value to help our customers succeed. We do business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries, and Energy & Transportation – and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/social-media.
Caterpillar’s latest financial results are also available online:
https://investors.caterpillar.com/overview/default.aspx
https://investors.caterpillar.com/financials/quarterly-results/default.aspx (live broadcast/replays of quarterly conference call)
Caterpillar investor relations contact: Jennifer Driscoll, +1 224-551-4382 or Driscoll_Jennifer@cat.com
Caterpillar media contact: Kate Kenny, +1 309-361-9333 or Kenny_Kate@cat.com













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Forward-Looking Statements
Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “forecast,” “target,” “guide,” “project,” “intend,” “could,” “should” or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.
Caterpillar’s actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) commodity price changes, material price increases, fluctuations in demand for our products or significant shortages of material; (iii) government monetary or fiscal policies; (iv) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (v) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; (vi) our ability to develop, produce and market quality products that meet our customers’ needs; (vii) the impact of the highly competitive environment in which we operate on our sales and pricing; (viii) information technology security threats and computer crime; (ix) inventory management decisions and sourcing practices of our dealers and our OEM customers; (x) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (xv) our Financial Products segment’s risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an increase in delinquencies, repossessions or net losses of Cat Financial’s customers; (xviii) currency fluctuations; (xix) our or Cat Financial’s compliance with financial and other restrictive covenants in debt agreements; (xx) increased pension plan funding obligations; (xxi) alleged or actual violations of trade or anti-corruption laws and regulations; (xxii) additional tax expense or exposure, including the impact of U.S. tax reform; (xxiii) significant legal proceedings, claims, lawsuits or government investigations; (xxiv) new regulations or changes in financial services regulations; (xxv) compliance with environmental laws and regulations; (xxvi) the duration and geographic spread of, business disruptions caused by, and the overall global economic impact of, the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar’s Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.
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APPENDIX
NON-GAAP FINANCIAL MEASURES
The following definitions are provided for the non-GAAP financial measures. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures.
The company believes it is important to separately quantify the profit impact of two significant items in order for the company’s results to be meaningful to readers. These items consist of (i) a remeasurement gain resulting from the settlement of a non-U.S. pension obligation in the first quarter of 2020 and (ii) restructuring costs, which were incurred to generate longer-term benefits. The company does not consider these items indicative of earnings from ongoing business activities and believes the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company’s period-over-period results. The company intends to discuss adjusted profit per share for the fourth quarter and full-year 2021, excluding mark-to-market gains or losses for remeasurement of pension and other postemployment benefit plans along with any other discrete items.
Reconciliations of adjusted results to the most directly comparable GAAP measure are as follows:
(Dollars in millions except per share data)Operating ProfitOperating Profit MarginProfit Before TaxesProvision (Benefit) for Income TaxesEffective Tax RateProfitProfit per Share
Three Months Ended March 31, 2021 - US GAAP$1,814 15.3 %$1,997 $475 23.8 %$1,530 $2.77 
Restructuring costs64 0.5 %64 10 15.0 %54 $0.10 
Three Months Ended March 31, 2021 - Adjusted$1,878 15.8 %$2,061 $485 23.5 %$1,584 $2.87 
Three Months Ended March 31, 2020 - US GAAP$1,404 13.2 %$1,513 $425 28.1 %$1,092 $1.98 
Remeasurement gain of a non-U.S. pension obligation— — %(254)(43)17.0 %(211)$(0.38)
Restructuring costs37 0.3 %37 7 19.0 %30 $0.05 
Three Months Ended March 31, 2020 - Adjusted$1,441 13.5 %$1,296 $389 30.0 %$911 $1.65 

Supplemental Consolidating Data
The company is providing supplemental consolidating data for the purpose of additional analysis. The data has been grouped as follows:
Consolidated – Caterpillar Inc. and its subsidiaries.
Machinery, Energy & Transportation (ME&T) – The company defines ME&T as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. ME&T’s information relates to the design, manufacturing and marketing of its products.
Financial Products – The company defines Financial Products as it is presented in the supplemental data as its finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products’ information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment.
Consolidating Adjustments – Eliminations of transactions between ME&T and Financial Products.
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The nature of the ME&T and Financial Products businesses is different, especially with regard to the financial position and cash flow items. Caterpillar management utilizes this presentation internally to highlight these differences. The company believes this presentation will assist readers in understanding its business.
Pages 14 to 22 reconcile ME&T and Financial Products to Caterpillar Inc. consolidated financial information.
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Caterpillar Inc.
Condensed Consolidated Statement of Results of Operations
(Unaudited)
(Dollars in millions except per share data)
Three Months Ended
March 31,
20212020
Sales and revenues:
Sales of Machinery, Energy & Transportation$11,191 $9,914 
Revenues of Financial Products696 721 
Total sales and revenues11,887 10,635 
Operating costs:  
Cost of goods sold8,012 7,266 
Selling, general and administrative expenses1,239 1,121 
Research and development expenses374 356 
Interest expense of Financial Products125 175 
Other operating (income) expenses323 313 
Total operating costs
10,073 9,231 
Operating profit1,814 1,404 
Interest expense excluding Financial Products142 113 
Other income (expense)325 222 
Consolidated profit before taxes1,997 1,513 
Provision (benefit) for income taxes475 425 
Profit of consolidated companies1,522 1,088 
Equity in profit (loss) of unconsolidated affiliated companies9 5 
Profit of consolidated and affiliated companies1,531 1,093 
Less: Profit (loss) attributable to noncontrolling interests1 1 
Profit 1
$1,530 $1,092 
Profit per common share$2.80 $2.00 
Profit per common share — diluted 2
$2.77 $1.98 
Weighted-average common shares outstanding (millions)
– Basic546.4 546.8 
– Diluted 2
551.4 551.1 
1Profit attributable to common shareholders.
2Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
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Caterpillar Inc.
Condensed Consolidated Statement of Financial Position
(Unaudited)
(Millions of dollars)
March 31,
2021		December 31,
2020
Assets  
Current assets: 
Cash and short-term investments$11,342 $9,352 
Receivables – trade and other7,955 7,317 
Receivables – finance9,333 9,463 
Prepaid expenses and other current assets1,802 1,930 
Inventories12,149 11,402 
Total current assets42,581 39,464 
Property, plant and equipment – net12,132 12,401 
Long-term receivables – trade and other1,115 1,185 
Long-term receivables – finance11,966 12,222 
Noncurrent deferred and refundable income taxes1,391 1,523 
Intangible assets1,246 1,308 
Goodwill6,343 6,394 
Other assets3,955 3,827 
Total assets$80,729 $78,324 
Liabilities 
Current liabilities: 
Short-term borrowings: 
-- Machinery, Energy & Transportation$— $10 
-- Financial Products3,625 2,005 
Accounts payable6,694 6,128 
Accrued expenses3,574 3,642 
Accrued wages, salaries and employee benefits1,283 1,096 
Customer advances1,168 1,108 
Dividends payable— 562 
Other current liabilities2,035 2,017 
Long-term debt due within one year:  
-- Machinery, Energy & Transportation1,301 1,420 
-- Financial Products6,898 7,729 
Total current liabilities26,578 25,717 
Long-term debt due after one year: 
-- Machinery, Energy & Transportation9,751 9,749 
-- Financial Products16,605 16,250 
Liability for postemployment benefits6,698 6,872 
Other liabilities4,480 4,358 
Total liabilities64,112 62,946 
Shareholders’ equity 
Common stock6,215 6,230 
Treasury stock(25,049)(25,178)
Profit employed in the business36,697 35,167 
Accumulated other comprehensive income (loss)(1,290)(888)
Noncontrolling interests44 47 
Total shareholders’ equity16,617 15,378 
Total liabilities and shareholders’ equity$80,729 $78,324 

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16

Caterpillar Inc.
Condensed Consolidated Statement of Cash Flow
(Unaudited)
(Millions of dollars)
Three Months Ended
March 31,
20212020
Cash flow from operating activities:  
Profit of consolidated and affiliated companies$1,531 $1,093 
Adjustments for non-cash items:  
Depreciation and amortization586 614 
Gain on remeasurement of a non-U.S. pension obligation— (254)
Provision (benefit) for deferred income taxes109 20 
Other(104)534 
Changes in assets and liabilities, net of acquisitions and divestitures:  
Receivables – trade and other(543)500 
Inventories(657)(541)
Accounts payable733 90 
Accrued expenses84 (97)
Accrued wages, salaries and employee benefits191 (722)
Customer advances58 116 
Other assets – net56 (50)
Other liabilities – net(116)(173)
Net cash provided by (used for) operating activities1,928 1,130 
Cash flow from investing activities: 
Capital expenditures – excluding equipment leased to others(252)(305)
Expenditures for equipment leased to others(252)(243)
Proceeds from disposals of leased assets and property, plant and equipment309 216 
Additions to finance receivables(2,629)(2,953)
Collections of finance receivables2,770 3,153 
Proceeds from sale of finance receivables5 31 
Investments and acquisitions (net of cash acquired)(386)(35)
Proceeds from sale of businesses and investments (net of cash sold)28 — 
Proceeds from sale of securities126 68 
Investments in securities(148)(180)
Other – net(48)35 
Net cash provided by (used for) investing activities(477)(213)
Cash flow from financing activities: 
Dividends paid(562)(567)
Common stock issued, including treasury shares reissued65 (23)
Common shares repurchased— (1,043)
Proceeds from debt issued (original maturities greater than three months)2,273 2,141 
Payments on debt (original maturities greater than three months)(2,887)(2,466)
Short-term borrowings – net (original maturities three months or less)1,659 (40)
Other – net(2)(1)
Net cash provided by (used for) financing activities546 (1,999)
Effect of exchange rate changes on cash(12)(80)
Increase (decrease) in cash and short-term investments and restricted cash1,985 (1,162)
Cash and short-term investments and restricted cash at beginning of period9,366 8,292 
Cash and short-term investments and restricted cash at end of period$11,351 $7,130 
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.

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17

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended March 31, 2021
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & Transportation Financial
Products		Consolidating
Adjustments
Sales and revenues:    
Sales of Machinery, Energy & Transportation$11,191 $11,191 $— $— 
Revenues of Financial Products696 — 788 (92)1
Total sales and revenues11,887 11,191 788 (92)
Operating costs:    
Cost of goods sold8,012 8,013 — (1)2
Selling, general and administrative expenses1,239 1,114 124 1 2
Research and development expenses374 374 — — 
Interest expense of Financial Products125 — 125 — 
Other operating (income) expenses323 26 314 (17)2
Total operating costs10,073 9,527 563 (17)
Operating profit1,814 1,664 225 (75)
Interest expense excluding Financial Products142 142 — — 
Other income (expense)325 231 19 75 3
Consolidated profit before taxes1,997 1,753 244 — 
Provision (benefit) for income taxes475 412 63 — 
Profit of consolidated companies1,522 1,341 181 — 
Equity in profit (loss) of unconsolidated affiliated companies9 12 — (3)4
Profit of consolidated and affiliated companies1,531 1,353 181 (3)
Less: Profit (loss) attributable to noncontrolling interests1 1 3 (3)5
Profit 6
$1,530 $1,352 $178 $— 
1
Elimination of Financial Products’ revenues earned from ME&T.
2
Elimination of net expenses recorded by ME&T paid to Financial Products.
3
Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.
4
Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries.
5
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.
6Profit attributable to common shareholders.



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18

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended March 31, 2020
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & Transportation Financial
Products		Consolidating
Adjustments
Sales and revenues:    
Sales of Machinery, Energy & Transportation$9,914 $9,914 $— $— 
Revenues of Financial Products721 — 830 (109)1
Total sales and revenues10,635 9,914 830 (109)
Operating costs:
Cost of goods sold7,266 7,267 — (1)2
Selling, general and administrative expenses1,121 940 182 (1)2
Research and development expenses356 356 — — 
Interest expense of Financial Products175 — 176 (1)3
Other operating (income) expenses313 10 320 (17)2
Total operating costs9,231 8,573 678 (20)
Operating profit1,404 1,341 152 (89)
Interest expense excluding Financial Products113 112 — 1 3
Other income (expense)222 179 (47)90 4
Consolidated profit before taxes1,513 1,408 105 — 
Provision (benefit) for income taxes425 397 28 — 
Profit of consolidated companies1,088 1,011 77 — 
Equity in profit (loss) of unconsolidated affiliated companies5 9 — (4)5
Profit of consolidated and affiliated companies1,093 1,020 77 (4)
Less: Profit (loss) attributable to noncontrolling interests1 1 4 (4)6
Profit 7
$1,092 $1,019 $73 $— 
1
Elimination of Financial Products’ revenues earned from ME&T.
2
Elimination of net expenses recorded by ME&T paid to Financial Products.
3
Elimination of interest expense recorded between Financial Products and ME&T.
4
Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.
5
Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries.
6
Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.
7Profit attributable to common shareholders.
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19

Caterpillar Inc.
Supplemental Data for Financial Position
At March 31, 2021
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery,
Energy &
Transportation 		Financial
Products		Consolidating
Adjustments
Assets    
Current assets:    
Cash and short-term investments$11,342 $10,492 $850 $— 
Receivables – trade and other7,955 3,020 501 4,434 
1,2
Receivables – finance9,333 — 13,896 (4,563)2
Prepaid expenses and other current assets1,802 1,399 544 (141)3
Inventories12,149 12,149 — — 
Total current assets42,581 27,060 15,791 (270)
Property, plant and equipment – net12,132 8,185 3,947 — 
Long-term receivables – trade and other1,115 333 169 613 
1,2
Long-term receivables – finance11,966 — 12,604 (638)2
Noncurrent deferred and refundable income taxes1,391 1,933 103 (645)4
Intangible assets1,246 1,246 — — 
Goodwill6,343 6,343 — — 
Other assets3,955 3,260 1,899 (1,204)5
Total assets$80,729 $48,360 $34,513 $(2,144)
Liabilities    
Current liabilities:    
Short-term borrowings$3,625 $— $3,625 $— 
Short-term borrowings with consolidated companies— — — — 
Accounts payable6,694 6,597 226 (129)6
Accrued expenses3,574 3,174 400 — 
Accrued wages, salaries and employee benefits1,283 1,256 27 — 
Customer advances1,168 1,168 — — 
Dividends payable— — — — 
Other current liabilities2,035 1,558 640 (163)
4,7
Long-term debt due within one year8,199 1,301 6,898 — 
Total current liabilities26,578 15,054 11,816 (292)
Long-term debt due after one year26,356 9,776 16,605 (25)8
Liability for postemployment benefits6,698 6,697 1 — 
Other liabilities4,480 3,804 1,394 (718)4
Total liabilities64,112 35,331 29,816 (1,035)
    
Shareholders’ equity    
Common stock6,215 6,215 919 (919)9
Treasury stock(25,049)(25,049)— — 
Profit employed in the business36,697 32,443 4,243 11 9
Accumulated other comprehensive income (loss)(1,290)(627)(663)— 
Noncontrolling interests44 47 198 (201)9
Total shareholders’ equity16,617 13,029 4,697 (1,109)
Total liabilities and shareholders’ equity$80,729 $48,360 $34,513 $(2,144)
1
Elimination of receivables between ME&T and Financial Products.
2
Reclassification of ME&T’s trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables.
3Elimination of ME&T's insurance premiums that are prepaid to Financial Products.
4
Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.
5
Elimination of other intercompany assets between ME&T and Financial Products.
6
Elimination of payables between ME&T and Financial Products.
7Elimination of prepaid insurance in Financial Products’ other liabilities.
8
Elimination of debt between ME&T and Financial Products.
9
Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries.
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20

Caterpillar Inc.
Supplemental Data for Financial Position
At December 31, 2020
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery,
Energy &
Transportation 		Financial
Products		Consolidating
Adjustments
Assets    
Current assets:    
Cash and short-term investments$9,352 $8,822 $530 $— 
Receivables – trade and other7,317 3,846 397 3,074 
1,2
Receivables – finance9,463 — 13,681 (4,218)2
Prepaid expenses and other current assets1,930 1,376 624 (70)3
Inventories11,402 11,402 — — 
Total current assets39,464 25,446 15,232 (1,214)
Property, plant and equipment – net12,401 8,309 4,092 — 
Long-term receivables – trade and other1,185 363 164 658 
1,2
Long-term receivables – finance12,222 — 12,895 (673)2
Noncurrent deferred and refundable income taxes1,523 2,058 110 (645)4
Intangible assets1,308 1,308 — — 
Goodwill6,394 6,394 — — 
Other assets3,827 3,158 1,871 (1,202)5
Total assets$78,324 $47,036 $34,364 $(3,076)
Liabilities    
Current liabilities:    
Short-term borrowings$2,015 $10 $2,005 $— 
Short-term borrowings with consolidated companies— — 1,000 (1,000)6
Accounts payable6,128 6,060 212 (144)7
Accrued expenses3,642 3,099 543 — 
Accrued wages, salaries and employee benefits1,096 1,081 15 — 
Customer advances1,108 1,108 — — 
Dividends payable562 562 — — 
Other current liabilities2,017 1,530 580 (93)
4,8
Long-term debt due within one year9,149 1,420 7,729 — 
Total current liabilities25,717 14,870 12,084 (1,237)
Long-term debt due after one year25,999 9,764 16,250 (15)6
Liability for postemployment benefits6,872 6,872 — — 
Other liabilities4,358 3,691 1,385 (718)4
Total liabilities62,946 35,197 29,719 (1,970)
    
Shareholders’ equity    
Common stock6,230 6,230 919 (919)9
Treasury stock(25,178)(25,178)— — 
Profit employed in the business35,167 31,091 4,065 11 9
Accumulated other comprehensive income (loss)(888)(352)(536)— 
Noncontrolling interests47 48 197 (198)9
Total shareholders’ equity15,378 11,839 4,645 (1,106)
Total liabilities and shareholders’ equity$78,324 $47,036 $34,364 $(3,076)
1
Elimination of receivables between ME&T and Financial Products.
2
Reclassification of ME&T’s trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables.
3Elimination of ME&T’s insurance premiums that are prepaid to Financial Products.
4
Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.
5
Elimination of other intercompany assets between ME&T and Financial Products.
6Elimination of debt between ME&T and Financial Products.
7
Elimination of payables between ME&T and Financial Products.
8Elimination of prepaid insurance in Financial Products’ other liabilities.
9
Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries.
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21

Caterpillar Inc.
Supplemental Data for Cash Flow
For the Three Months Ended March 31, 2021
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & TransportationFinancial
Products		Consolidating
Adjustments
Cash flow from operating activities:    
Profit of consolidated and affiliated companies$1,531 $1,353 $181 $(3)1
Adjustments for non-cash items:    
Depreciation and amortization586 383 203 — 
Provision (benefit) for deferred income taxes109 127 (18)— 
Other(104)(52)(83)31 2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other(543)(104)(32)(407)
2, 3
Inventories(657)(657)— — 
Accounts payable733 706 13 14 2
Accrued expenses84 58 26 — 
Accrued wages, salaries and employee benefits191 179 12 — 
Customer advances58 58 — — 
Other assets – net56 (4)(12)72 2
Other liabilities – net(116)(131)79 (64)2
Net cash provided by (used for) operating activities1,928 1,916 369 (357)
Cash flow from investing activities:    
Capital expenditures – excluding equipment leased to others(252)(251)(4)3 2
Expenditures for equipment leased to others(252)(4)(249)1 2
Proceeds from disposals of leased assets and property, plant and equipment309 27 286 (4)2
Additions to finance receivables(2,629)— (2,867)238 3
Collections of finance receivables2,770 — 3,062 (292)3
Net intercompany purchased receivables— — (411)411 3
Proceeds from sale of finance receivables5 — 5 — 
Net intercompany borrowings— 1,000 — (1,000)4
Investments and acquisitions (net of cash acquired)(386)(386)— — 
Proceeds from sale of businesses and investments (net of cash sold)28 28 — — 
Proceeds from sale of securities126 11 115 — 
Investments in securities(148)— (148)— 
Other – net(48)2 (50)— 
Net cash provided by (used for) investing activities(477)427 (261)(643)
Cash flow from financing activities:    
Dividends paid(562)(562)— — 
Common stock issued, including treasury shares reissued65 65 — — 
Net intercompany borrowings— — (1,000)1,000 4
Proceeds from debt issued > 90 days2,273 494 1,779 — 
Payments on debt > 90 days(2,887)(644)(2,243)— 
Short-term borrowings – net < 90 days1,659 (10)1,669 — 
Other – net(2)(2)— — 
Net cash provided by (used for) financing activities546 (659)205 1,000 
Effect of exchange rate changes on cash(12)(14)2 — 
Increase (decrease) in cash and short-term investments and restricted cash1,985 1,670 315 — 
Cash and short-term investments and restricted cash at beginning of period9,366 8,822 544 — 
Cash and short-term investments and restricted cash at end of period$11,351 $10,492 $859 $— 
1Elimination of equity profit earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.
2Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.
3Reclassification of Financial Products’ cash flow activity from investing to operating for receivables that arose from the sale of inventory.
4Elimination of net proceeds and payments to/from ME&T and Financial Products.
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22

Caterpillar Inc.
Supplemental Data for Cash Flow
For the Three Months Ended March 31, 2020
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & TransportationFinancial
Products		Consolidating
Adjustments
Cash flow from operating activities:    
Profit of consolidated and affiliated companies$1,093 $1,020 $77 $(4)1
Adjustments for non-cash items:
Depreciation and amortization614 402 212 — 
Gain on remeasurement of a non-U.S. pension obligation(254)(254)— — 
Provision (benefit) for deferred income taxes20 75 (55)— 
Other534 245 170 119 2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other500 328 (56)228 
2, 3
Inventories(541)(538)— (3)2
Accounts payable90 2 51 37 2
Accrued expenses(97)(105)8 — 
Accrued wages, salaries and employee benefits(722)(689)(33)— 
Customer advances116 116 — — 
Other assets – net(50)15 (16)(49)2
Other liabilities – net(173)(299)73 53 2
Net cash provided by (used for) operating activities1,130 318 431 381 
Cash flow from investing activities: 
Capital expenditures – excluding equipment leased to others(305)(304)(1)— 
Expenditures for equipment leased to others(243)2 (249)4 2
Proceeds from disposals of leased assets and property, plant and equipment216 61 156 (1)2
Additions to finance receivables(2,953)— (3,213)260 3
Collections of finance receivables3,153 — 3,421 (268)3
Net intercompany purchased receivables— — 376 (376)3
Proceeds from sale of finance receivables31 — 31 — 
Net intercompany borrowings— 599 1 (600)4
Investments and acquisitions (net of cash acquired)(35)(35)— — 
Proceeds from sale of securities68 6 62 — 
Investments in securities(180)(5)(175)— 
Other – net35 — 35 — 
Net cash provided by (used for) investing activities(213)324 444 (981)
Cash flow from financing activities:
Dividends paid(567)(567)— — 
Common stock issued, including treasury shares reissued(23)(23)— — 
Common shares repurchased(1,043)(1,043)— — 
Net intercompany borrowings— (1)(599)600 4
Proceeds from debt issued > 90 days2,141 15 2,126 — 
Payments on debt > 90 days(2,466)(6)(2,460)— 
Short-term borrowings – net < 90 days(40)(5)(35)— 
Other – net(1)(1)— — 
Net cash provided by (used for) financing activities(1,999)(1,631)(968)600 
Effect of exchange rate changes on cash(80)(59)(21)— 
Increase (decrease) in cash and short-term investments and restricted cash(1,162)(1,048)(114)— 
Cash and short-term investments and restricted cash at beginning of period8,292 7,302 990 — 
Cash and short-term investments and restricted cash at end of period$7,130 $6,254 $876 $— 
1Elimination of equity profit earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.
2Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.
3Reclassification of Financial Products’ cash flow activity from investing to operating for receivables that arose from the sale of inventory.
4Elimination of net proceeds and payments to/from ME&T and Financial Products.
#