0000018230false00000182302023-07-312023-07-310000018230us-gaap:CommonStockMember2023-07-312023-07-310000018230cat:A5.3DebenturesDueSeptember152035Member2023-07-312023-07-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
caterpillarlogo.jpg
FORM8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):August 1, 2023
CATERPILLAR INC.
(Exact name of registrant as specified in its charter)
Delaware1-76837-0602744
(State or other jurisdiction of incorporation)
 (Commission File Number)
 (I.R.S Employer Identification No.)
5205 N. O'Connor Blvd.,Suite 100,Irving,Texas75039
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code:(972)891-7700
Former name or former address, if changed since last report:N/A
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:


Title of each classTrading Symbol (s)Name of each exchange which registered
Common Stock ($1.00 par value)CATThe New York Stock Exchange
5.3% Debentures due September 15, 2035CAT35The New York Stock Exchange
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined by Rule 405 of the Securities Act of
1933 (17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter).
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.






Item 2.02. Results of Operations and Financial Condition.
On August 1, 2023, Caterpillar Inc. issued a press release reporting its financial results for the quarter ended June 30, 2023. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated into this Item 2.02 by reference.
Item 7.01. Regulation FD Disclosure.
Caterpillar Inc. is furnishing supplemental information concerning (i) retail sales of machines to end users and (ii) retail sales of power systems (including reciprocating and turbine engines and locomotives) to end users and Original Equipment Manufacturers ("OEMs"). This supplemental information is attached hereto as Exhibit 99.2 and incorporated into this Item 7.01 by reference.

The information in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished in accordance with the provisions of General Instruction B.2 of Form 8-K.

Item 9.01. Financial Statements and Exhibits.
(d)Exhibits:
The following is furnished as an exhibit to this report:
99.1
99.2
104The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.




























 SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CATERPILLAR INC.
August 1, 2023
By:/s/ Derek Owens
Derek Owens
Senior Vice President and General Counsel



Exhibit 99.1
Caterpillar Inc.                                     
2Q 2023 Earnings Release



FOR IMMEDIATE RELEASE
Caterpillar Reports Second-Quarter 2023 Results
Second Quarter
($ in billions except profit per share)20232022
Sales and Revenues$17.3$14.2
Profit Per Share$5.67$3.13
Adjusted Profit Per Share$5.55$3.18
Second-quarter 2023 sales and revenues increased 22% to $17.3 billion
Second-quarter 2023 profit per share of $5.67; adjusted profit per share of $5.55
Returned $2.0 billion to shareholders through share repurchases and dividends in the quarter
IRVING, Texas, August 1, 2023 – Caterpillar Inc. (NYSE: CAT) announced second-quarter 2023 sales and revenues of $17.3 billion, a 22% increase compared with $14.2 billion in the second quarter of 2022. The increase was primarily due to higher sales volume and favorable price realization.
Operating profit margin was 21.1% for the second quarter of 2023, compared with 13.6% for the second quarter of 2022. Adjusted operating profit margin was 21.3% for the second quarter of 2023, compared with 13.8% for the second quarter of 2022. Second-quarter 2023 profit per share was $5.67, compared with second-quarter 2022 profit per share of $3.13. Adjusted profit per share in the second quarter of 2023 was $5.55, compared with second-quarter 2022 adjusted profit per share of $3.18. Second-quarter 2023 and 2022 adjusted operating profit margin and adjusted profit per share excluded restructuring costs. Second-quarter 2023 adjusted profit per share also excluded a discrete tax benefit to adjust deferred tax balances. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 12.
For the first half of 2023, enterprise operating cash flow was $4.8 billion, and the company ended the second quarter with $7.4 billion of enterprise cash. In the quarter, the company repurchased $1.4 billion of Caterpillar common stock and paid dividends of $0.6 billion.
“I’m proud of our global team’s strong operational performance in the second quarter. Our results reflect continued healthy demand as we achieved double-digit top-line growth and record adjusted profit per share while generating strong ME&T free cash flow,” said Jim Umpleby, Chairman and CEO. “Our team remains committed to serving our customers, executing our strategy and continuing to invest for long-term profitable growth.”
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CONSOLIDATED RESULTS
Consolidated Sales and Revenues
qtdschart-june2023.jpg
The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the second quarter of 2022 (at left) and the second quarter of 2023 (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 second quarter of 2023 were $17.318 billion, an increase of $3.071 billion, or 22%, compared with $14.247 billion in the second quarter of 2022. The increase was due to higher sales volume and favorable price realization. The increase in sales volume was driven by higher sales of equipment to end users and the impact from changes in dealer inventories. Dealer inventory increased during the second quarter of 2023 (primarily Energy & Transportation), compared with a decrease during the second quarter of 2022 (primarily Construction Industries).
Sales were higher across the three primary segments.
Sales and Revenues by Segment
(Millions of dollars)Second Quarter 2022Sales
Volume
Price
Realization
CurrencyInter-Segment / OtherSecond Quarter 2023$
Change
%
Change
Construction Industries$6,033 $606 $629 $(105)$(9)$7,154 $1,121 19%
Resource Industries2,961 250 375 (47)24 3,563 602 20%
Energy & Transportation5,705 932 417 (32)197 7,219 1,514 27%
All Other Segment118 (4)— (1)116 (2)(2%)
Corporate Items and Eliminations(1,278)(13)(2)(215)(1,507)(229) 
Machinery, Energy & Transportation13,539 1,771 1,422 (187)— 16,545 3,006 22%
Financial Products Segment798 — — — 125 923 125 16%
Corporate Items and Eliminations(90)— — — (60)(150)(60) 
Financial Products Revenues708 — — — 65 773 65 9%
Consolidated Sales and Revenues$14,247 $1,771 $1,422 $(187)$65 $17,318 $3,071 22%
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Sales and Revenues by Geographic Region
North AmericaLatin AmericaEAMEAsia/PacificExternal Sales and RevenuesInter-SegmentTotal Sales and Revenues
(Millions of dollars)$% Chg$% Chg$% Chg$% Chg$% Chg$% Chg$% Chg
Second Quarter 2023          
Construction Industries$3,968 32%$566 (11%)$1,438 20%$1,149 —%$7,121 19%$33 (21%)$7,154 19%
Resource Industries1,342 31%538 15%517 6%1,076 18%3,473 20%90 36%3,563 20%
Energy & Transportation3,120 37%459 20%1,479 22%899 17%5,957 28%1,262 18%7,219 27%
All Other Segment16 (11%)— —%(20%)14 (7%)34 (11%)82 3%116 (2%)
Corporate Items and Eliminations(32)(2)(2)(4)(40)(1,467)(1,507)
Machinery, Energy & Transportation 8,414 33%1,561 5%3,436 18%3,134 10%16,545 22%— —%16,545 22%
Financial Products Segment593 17%102 17%118 22%110 1%923 16%— —%923 16%
Corporate Items and Eliminations(85)(21)(21)(23)(150)— (150)
Financial Products Revenues508 10%81 23%97 11%87 (5%)773 9%— —%773 9%
Consolidated Sales and Revenues$8,922 32%$1,642 6%$3,533 18%$3,221 10%$17,318 22%$— —%$17,318 22%
Second Quarter 2022              
Construction Industries$3,006 $635 $1,202 $1,148  $5,991 $42 $6,033 
Resource Industries1,027 466 489 913  2,895 66 2,961 
Energy & Transportation2,277 382 1,215 766  4,640 1,065 5,705 
All Other Segment18 — 15  38 80 118 
Corporate Items and Eliminations(20)(2)— (3)(25)(1,253)(1,278)
Machinery, Energy & Transportation6,308  1,481  2,911  2,839  13,539  —  13,539  
Financial Products Segment505 87 97 109  798 — 798 
Corporate Items and Eliminations(42)(21)(10)(17) (90)— (90)
Financial Products Revenues463  66  87  92  708  —  708  
Consolidated Sales and Revenues$6,771  $1,547  $2,998  $2,931  $14,247  $—  $14,247  
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Consolidated Operating Profit
qtdprofitchart-june2023.jpg
The chart above graphically illustrates reasons for the change in consolidated operating profit between the second quarter of 2022 (at left) and the second quarter of 2023 (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 second quarter of 2023 was $3.652 billion, an increase of $1.708 billion, or 88%, compared with $1.944 billion in the second quarter of 2022. The increase was primarily due to favorable price realization and higher sales volume, partially offset by higher manufacturing costs and higher selling, general and administrative (SG&A) and research and development (R&D) expenses. Unfavorable manufacturing costs largely reflected higher material costs. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives and an unfavorable change in fair value adjustments related to deferred compensation plans.
Profit (Loss) by Segment
(Millions of dollars)Second Quarter 2023Second Quarter 2022$
Change
%
 Change
Construction Industries$1,803 $989 $814 82 %
Resource Industries740 355 385 108 %
Energy & Transportation1,269 659 610 93 %
All Other Segment10 31 (21)(68 %)
Corporate Items and Eliminations(272)(230)(42) 
Machinery, Energy & Transportation3,550 1,804 1,746 97 %
Financial Products Segment240 217 23 11 %
Corporate Items and Eliminations17 17 — 
Financial Products257 234 23 10 %
Consolidating Adjustments(155)(94)(61)
Consolidated Operating Profit$3,652 $1,944 $1,708 88 %





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Other Profit/Loss and Tax Items
Other income (expense) in the second quarter of 2023 was income of $127 million, compared with income of $260 million in the second quarter of 2022. The change was primarily driven by unfavorable impacts from foreign currency exchange and pension and other postemployment benefit (OPEB) plan costs, partially offset by higher investment and interest income and lower unrealized losses on marketable securities.
The provision for income taxes for the second quarter of 2023 reflected an estimated annual global tax rate of 23%, compared with approximately 24% for the second quarter of 2022, excluding the discrete items discussed below. The comparative tax rate for full-year 2022 was approximately 23%.
In the second quarter of 2023, the company recorded a discrete tax benefit of $88 million due to a change in the valuation allowance for certain deferred tax assets compared to a benefit of $55 million in the second quarter of 2022 primarily for a prior year tax adjustment due to a change in estimate.
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CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
Second Quarter 2022Sales VolumePrice RealizationCurrencyInter-SegmentSecond Quarter 2023$
 Change
%
 Change
Total Sales$6,033 $606 $629 $(105)$(9)$7,154 $1,121 19 %
Sales by Geographic Region
Second Quarter 2023Second Quarter 2022$
Change
%
Change
North America$3,968 $3,006 $962 32 %
Latin America566 635 (69)(11 %)
EAME1,438 1,202 236 20 %
Asia/Pacific1,149 1,148 — %
External Sales7,121 5,991 1,130 19 %
Inter-segment33 42 (9)(21 %)
Total Sales$7,154 $6,033 $1,121 19 %
Segment Profit
Second Quarter 2023Second Quarter 2022
Change
%
Change
Segment Profit$1,803 $989 $814 82 %
Segment Profit Margin25.2 %16.4 %8.8  pts
Construction Industries’ total sales were $7.154 billion in the second quarter of 2023, an increase of $1.121 billion, or 19%, compared with $6.033 billion in the second quarter of 2022. The increase was due to favorable price realization and higher sales volume. The increase in sales volume was driven by the impact from changes in dealer inventories and higher sales of equipment to end users. Dealer inventory decreased during the second quarter of 2022, compared with a modest increase during the second quarter of 2023.
In North America, sales increased due to higher sales volume and favorable price realization. Higher sales volume was driven by higher sales of equipment to end users and the impact from changes in dealer inventories. Dealer inventory decreased during the second quarter of 2022, compared with an increase during the second quarter of 2023.
Sales decreased in Latin America primarily due to lower sales volume, partially offset by favorable price realization. Lower sales volume was driven by the impact from changes in dealer inventories and lower sales of equipment to end users. Dealer inventory decreased more during the second quarter of 2023 than during the second quarter of 2022.
In EAME, sales increased primarily due to higher sales volume and favorable price realization. Higher sales volume was primarily due to the impact from changes in dealer inventories, partially offset by lower sales of equipment to end users. Dealer inventory decreased during the second quarter of 2022, compared with an increase during the second quarter of 2023.
Sales were about flat in Asia/Pacific.
Construction Industries’ profit was $1.803 billion in the second quarter of 2023, an increase of $814 million, or 82%, compared with $989 million in the second quarter of 2022. The increase was mainly due to favorable price realization and higher sales volume.
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RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
Second Quarter 2022Sales VolumePrice RealizationCurrencyInter-SegmentSecond Quarter 2023$
 Change
%
 Change
Total Sales$2,961 $250 $375 $(47)$24 $3,563 $602 20 %
Sales by Geographic Region
Second Quarter 2023Second Quarter 2022$
Change
%
Change
North America$1,342 $1,027 $315 31 %
Latin America538 466 72 15 %
EAME517 489 28 %
Asia/Pacific1,076 913 163 18 %
External Sales3,473 2,895 578 20 %
Inter-segment90 66 24 36 %
Total Sales$3,563 $2,961 $602 20 %
Segment Profit
Second Quarter 2023Second Quarter 2022
Change
%
Change
Segment Profit$740 $355 $385 108 %
Segment Profit Margin20.8 %12.0 %8.8  pts
Resource Industries’ total sales were $3.563 billion in the second quarter of 2023, an increase of $602 million, or 20%, compared with $2.961 billion in the second quarter of 2022. The increase was primarily due to favorable price realization and higher sales volume. The increase in sales volume was due to higher sales of equipment to end users, partially offset by lower aftermarket parts sales volume.
Resource Industries’ profit was $740 million in the second quarter of 2023, an increase of $385 million, or 108%, compared with $355 million in the second quarter of 2022. The increase was mainly due to favorable price realization and higher sales volume, partially offset by unfavorable manufacturing costs. Unfavorable manufacturing costs largely reflected higher material costs.



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ENERGY & TRANSPORTATION
(Millions of dollars)
Segment Sales
Second Quarter 2022Sales VolumePrice RealizationCurrencyInter-SegmentSecond Quarter 2023$
 Change
%
 Change
Total Sales$5,705 $932 $417 $(32)$197 $7,219 $1,514 27 %
Sales by Application
Second Quarter 2023Second Quarter 2022$
Change
%
Change
Oil and Gas$1,760 $1,232 $528 43 %
Power Generation1,645 1,186 459 39 %
Industrial1,318 1,117 201 18 %
Transportation1,234 1,105 129 12 %
External Sales5,957 4,640 1,317 28 %
Inter-segment1,262 1,065 197 18 %
Total Sales$7,219 $5,705 $1,514 27 %
Segment Profit
Second Quarter 2023Second Quarter 2022
Change
%
Change
Segment Profit$1,269 $659 $610 93 %
Segment Profit Margin17.6 %11.6 %6.0  pts
Energy & Transportation’s total sales were $7.219 billion in the second quarter of 2023, an increase of $1.514 billion, or 27%, compared with $5.705 billion in the second quarter of 2022. Sales increased across all applications and inter-segment sales. The increase in sales was primarily due to higher sales volume and favorable price realization.
Oil and Gas – Sales increased for turbines and turbine-related services. Sales also increased in reciprocating engines used in gas compression and well servicing applications.
Power Generation – Sales increased in large reciprocating engines, primarily data center applications, and small reciprocating engines. Turbines and turbine-related services increased as well.
Industrial – Sales were up across all regions.
Transportation – Sales increased in marine and rail services.
Energy & Transportation’s profit was $1.269 billion in the second quarter of 2023, an increase of $610 million, or 93%, compared with $659 million in the second quarter of 2022. The increase was mainly due to higher sales volume and favorable price realization, partially offset by unfavorable manufacturing costs and higher SG&A/R&D expenses. Unfavorable manufacturing costs were driven by higher material costs and increased period manufacturing costs. The increase in SG&A/R&D expenses was primarily driven by investments aligned with strategic initiatives.

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FINANCIAL PRODUCTS SEGMENT
(Millions of dollars)
Revenues by Geographic Region
Second Quarter 2023Second Quarter 2022$
Change
%
Change
North America$593 $505 $88 17 %
Latin America102 87 15 17 %
EAME118 97 21 22 %
Asia/Pacific110 109 %
Total Revenues$923 $798 $125 16 %
Segment Profit
Second Quarter 2023Second Quarter 2022
Change
%
Change
Segment Profit$240 $217 $23 11 %
Financial Products’ segment revenues were $923 million in the second quarter of 2023, an increase of $125 million, or 16%, compared with $798 million in the second quarter of 2022. The increase was primarily due to higher average financing rates across all regions.
Financial Products’ segment profit was $240 million in the second quarter of 2023, an increase of $23 million, or 11%, compared with $217 million in the second quarter of 2022. The increase was mainly due to lower provision for credit losses at Cat Financial, partially offset by an increase in SG&A expenses.
At the end of the second quarter of 2023, past dues at Cat Financial were 2.15%, compared with 2.19% at the end of the second quarter of 2022. Write-offs, net of recoveries, were $8 million for the second quarter of 2023, compared with less than $1 million for the second quarter of 2022. As of June 30, 2023, Cat Financial's allowance for credit losses totaled $320 million, or 1.15% of finance receivables, compared with $348 million, or 1.27% of finance receivables at March 31, 2023. The allowance for credit losses at year-end 2022 was $346 million, or 1.29% of finance receivables.
Corporate Items and Eliminations
Expense for corporate items and eliminations was $255 million in the second quarter of 2023, an increase of $42 million from the second quarter of 2022. Lower corporate costs and decreased expenses due to timing differences were more than offset by an unfavorable change in fair value adjustments related to deferred compensation plans and unfavorable impacts of 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.Sales of equipment to end users is demonstrated by the company’s Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Tuesday, August 1, 2023.
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 Tuesday, August 1, 2023, to discuss its 2023 second-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 2022 sales and revenues of $59.4 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we’ve been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does 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/en/news/social-media.html.
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: Ryan Fiedler, +1 224-551-4074 or Fiedler_Ryan_S@cat.com
Caterpillar media contact: Tiffany Heikkila, +1 832-573-0958 or Tiffany.Heikkila@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) catastrophic events, including global pandemics such as 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) restructuring costs and (ii) certain deferred tax valuation allowance adjustments. 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 2023, 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 June 30, 2023 - U.S. GAAP
$3,652 21.1 %$3,652 $752 20.6 %$2,922 $5.67 
Restructuring costs31 0.2 %31 20.0 %25 0.05
Deferred tax valuation allowance adjustments— — %— 88 — %(88)(0.17)
Three Months Ended June 30, 2023 - Adjusted
$3,683 21.3 %$3,683 $846 23.0 %$2,859 $5.55 
Three Months Ended June 30, 2022 - U.S. GAAP
$1,944 13.6 %$2,096 $427 20.4 %$1,673 $3.13 
Restructuring costs28 0.2 %28 10.0 %26 0.05
Three Months Ended June 30, 2022 - Adjusted
$1,972 13.8 %$2,124 $429 20.2 %$1,699 $3.18 
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.
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 13 to 23 reconcile ME&T and Financial Products to Caterpillar Inc. consolidated financial information.
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13

Caterpillar Inc.
Condensed Consolidated Statement of Results of Operations
(Unaudited)
(Dollars in millions except per share data)
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Sales and revenues:  
Sales of Machinery, Energy & Transportation$16,545 $13,539 $31,644 $26,425 
Revenues of Financial Products773 708 1,536 1,411 
Total sales and revenues17,318 14,247 33,180 27,836 
Operating costs:  
Cost of goods sold11,065 9,975 21,168 19,534 
Selling, general and administrative expenses1,528 1,425 2,991 2,771 
Research and development expenses528 480 1,000 937 
Interest expense of Financial Products245 120 462 226 
Other operating (income) expenses300 303 1,176 569 
Total operating costs13,666 12,303 26,797 24,037 
Operating profit3,652 1,944 6,383 3,799 
Interest expense excluding Financial Products127 108 256 217 
Other income (expense)127 260 159 513 
Consolidated profit before taxes3,652 2,096 6,286 4,095 
Provision (benefit) for income taxes752 427 1,460 896 
Profit of consolidated companies2,900 1,669 4,826 3,199 
Equity in profit (loss) of unconsolidated affiliated companies24 40 11 
Profit of consolidated and affiliated companies2,924 1,673 4,866 3,210 
Less: Profit (loss) attributable to noncontrolling interests— — 
Profit 1
$2,922 $1,673 $4,865 $3,210 
Profit per common share$5.70 $3.15 $9.46 $6.03 
Profit per common share — diluted 2
$5.67 $3.13 $9.41 $5.99 
Weighted-average common shares outstanding (millions)  
– Basic512.9 531.0 514.3 532.6 
– Diluted 2
515.0 534.1 517.1 536.1 
1Profit attributable to common shareholders.
2Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.
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14

Caterpillar Inc.
Condensed Consolidated Statement of Financial Position
(Unaudited)
(Millions of dollars)
June 30,
2023
December 31,
2022
Assets  
Current assets: 
Cash and cash equivalents$7,387 $7,004 
Receivables – trade and other9,416 8,856 
Receivables – finance9,288 9,013 
Prepaid expenses and other current assets3,163 2,642 
Inventories17,746 16,270 
Total current assets47,000 43,785 
Property, plant and equipment – net12,124 12,028 
Long-term receivables – trade and other1,161 1,265 
Long-term receivables – finance12,022 12,013 
Noncurrent deferred and refundable income taxes2,607 2,213 
Intangible assets630 758 
Goodwill5,293 5,288 
Other assets4,590 4,593 
Total assets$85,427 $81,943 
Liabilities 
Current liabilities: 
Short-term borrowings: 
-- Machinery, Energy & Transportation$— $
-- Financial Products5,548 5,954 
Accounts payable8,443 8,689 
Accrued expenses4,493 4,080 
Accrued wages, salaries and employee benefits1,755 2,313 
Customer advances2,137 1,860 
Dividends payable663 620 
Other current liabilities3,109 2,690 
Long-term debt due within one year:  
-- Machinery, Energy & Transportation1,043 120 
-- Financial Products8,123 5,202 
Total current liabilities35,314 31,531 
Long-term debt due after one year: 
-- Machinery, Energy & Transportation8,535 9,498 
-- Financial Products14,450 16,216 
Liability for postemployment benefits4,084 4,203 
Other liabilities4,788 4,604 
Total liabilities67,171 66,052 
Shareholders’ equity 
Common stock6,478 6,560 
Treasury stock(33,391)(31,748)
Profit employed in the business47,094 43,514 
Accumulated other comprehensive income (loss)(1,946)(2,457)
Noncontrolling interests21 22 
Total shareholders’ equity18,256 15,891 
Total liabilities and shareholders’ equity$85,427 $81,943 

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15

Caterpillar Inc.
Condensed Consolidated Statement of Cash Flow
(Unaudited)
(Millions of dollars)
Six Months Ended June 30,
20232022
Cash flow from operating activities:  
Profit of consolidated and affiliated companies$4,866 $3,210 
Adjustments for non-cash items:  
Depreciation and amortization1,074 1,110 
Provision (benefit) for deferred income taxes(355)(283)
Loss on divestiture572 — 
Other106 49 
Changes in assets and liabilities, net of acquisitions and divestitures:  
Receivables – trade and other(465)283 
Inventories(1,560)(2,003)
Accounts payable34 427 
Accrued expenses381 (80)
Accrued wages, salaries and employee benefits(562)(445)
Customer advances284 514 
Other assets – net81 86 
Other liabilities – net366 (322)
Net cash provided by (used for) operating activities4,822 2,546 
Cash flow from investing activities: 
Capital expenditures – excluding equipment leased to others(683)(586)
Expenditures for equipment leased to others(774)(688)
Proceeds from disposals of leased assets and property, plant and equipment368 468 
Additions to finance receivables(6,973)(6,705)
Collections of finance receivables6,759 6,519 
Proceeds from sale of finance receivables29 21 
Investments and acquisitions (net of cash acquired)(20)(36)
Proceeds from sale of businesses and investments (net of cash sold)(14)
Proceeds from sale of securities463 1,204 
Investments in securities(1,078)(2,118)
Other – net41 32 
Net cash provided by (used for) investing activities(1,882)(1,888)
Cash flow from financing activities: 
Dividends paid(1,238)(1,187)
Common stock issued, including treasury shares reissued(22)
Common shares repurchased(1,829)(1,924)
Proceeds from debt issued (original maturities greater than three months)3,299 4,015 
Payments on debt (original maturities greater than three months)(2,303)(4,246)
Short-term borrowings – net (original maturities three months or less)(406)(553)
Net cash provided by (used for) financing activities(2,499)(3,891)
Effect of exchange rate changes on cash(60)(7)
Increase (decrease) in cash, cash equivalents and restricted cash381 (3,240)
Cash, cash equivalents and restricted cash at beginning of period7,013 9,263 
Cash, cash equivalents and restricted cash at end of period$7,394 $6,023 
Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less.

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16

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended June 30, 2023
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & TransportationFinancial
Products
Consolidating
Adjustments
Sales and revenues:    
Sales of Machinery, Energy & Transportation$16,545 $16,545 $— $— 
Revenues of Financial Products773 — 955 (182)1
Total sales and revenues17,318 16,545 955 (182)
Operating costs:    
Cost of goods sold11,065 11,068 — (3)2
Selling, general and administrative expenses1,528 1,389 143 (4)2
Research and development expenses528 528 — — 
Interest expense of Financial Products245 — 245 — 
Other operating (income) expenses300 10 310 (20)2
Total operating costs13,666 12,995 698 (27)
Operating profit3,652 3,550 257 (155)
Interest expense excluding Financial Products127 127 — — 
Other income (expense)127 (10)(18)155 3
Consolidated profit before taxes3,652 3,413 239 — 
Provision (benefit) for income taxes752 691 61 — 
Profit of consolidated companies2,900 2,722 178 — 
Equity in profit (loss) of unconsolidated affiliated companies24 24 — — 
Profit of consolidated and affiliated companies2,924 2,746 178 — 
Less: Profit (loss) attributable to noncontrolling interests(1)— 
Profit 4
$2,922 $2,747 $175 $— 
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.
4Profit attributable to common shareholders.





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17

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended June 30, 2022
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & TransportationFinancial
Products
Consolidating
Adjustments
Sales and revenues:    
Sales of Machinery, Energy & Transportation$13,539 $13,539 $— $— 
Revenues of Financial Products708 — 828 (120)1
Total sales and revenues14,247 13,539 828 (120)
Operating costs:    
Cost of goods sold9,975 9,978 — (3)2
Selling, general and administrative expenses1,425 1,261 167 (3)2
Research and development expenses480 480 — — 
Interest expense of Financial Products120 — 120 — 
Other operating (income) expenses303 16 307 (20)2
Total operating costs12,303 11,735 594 (26)
Operating profit1,944 1,804 234 (94)
Interest expense excluding Financial Products108 108 — — 
Other income (expense)260 180 (14)94 3
Consolidated profit before taxes2,096 1,876 220 — 
Provision (benefit) for income taxes427 374 53 — 
Profit of consolidated companies1,669 1,502 167 — 
Equity in profit (loss) of unconsolidated affiliated companies— (3)4
Profit of consolidated and affiliated companies1,673 1,509 167 (3)
Less: Profit (loss) attributable to noncontrolling interests— — (3)5
Profit 6
$1,673 $1,509 $164 $— 
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 Six Months Ended June 30,2023
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & Transportation Financial
Products
Consolidating
Adjustments
Sales and revenues:    
Sales of Machinery, Energy & Transportation$31,644 $31,644 $— $— 
Revenues of Financial Products1,536 — 1,890 (354)1
Total sales and revenues33,180 31,644 1,890 (354)
Operating costs:    
Cost of goods sold21,168 21,172 — (4)2
Selling, general and administrative expenses2,991 2,709 301 (19)2
Research and development expenses1,000 1,000 — — 
Interest expense of Financial Products462 — 462 — 
Other operating (income) expenses1,176 599 613 (36)2
Total operating costs26,797 25,480 1,376 (59)
Operating profit6,383 6,164 514 (295)
Interest expense excluding Financial Products256 256 — — 
Other income (expense)159 (24)(37)220 3
Consolidated profit before taxes6,286 5,884 477 (75)
Provision (benefit) for income taxes1,460 1,339 121 — 
Profit of consolidated companies4,826 4,545 356 (75)
Equity in profit (loss) of unconsolidated affiliated companies40 43 — (3)4
Profit of consolidated and affiliated companies4,866 4,588 356 (78)
Less: Profit (loss) attributable to noncontrolling interests(1)(3)5
Profit 6
$4,865 $4,589 $351 $(75)
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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19


Caterpillar Inc.
Supplemental Data for Results of Operations
For the Six Months Ended June 30,2022
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & Transportation Financial
Products
Consolidating
Adjustments
Sales and revenues:    
Sales of Machinery, Energy & Transportation$26,425 $26,425 $— $— 
Revenues of Financial Products1,411 — 1,641 (230)1
Total sales and revenues27,836 26,425 1,641 (230)
Operating costs:
Cost of goods sold19,534 19,538 — (4)2
Selling, general and administrative expenses2,771 2,443 339 (11)2
Research and development expenses937 937 — — 
Interest expense of Financial Products226 — 226 — 
Other operating (income) expenses569 (12)621 (40)2
Total operating costs24,037 22,906 1,186 (55)
Operating profit3,799 3,519 455 (175)
Interest expense excluding Financial Products217 217 — — 
Other income (expense)513 337 175 3
Consolidated profit before taxes4,095 3,639 456 — 
Provision (benefit) for income taxes896 786 110 — 
Profit of consolidated companies3,199 2,853 346 — 
Equity in profit (loss) of unconsolidated affiliated companies11 15 — (4)4
Profit of consolidated and affiliated companies3,210 2,868 346 (4)
Less: Profit (loss) attributable to noncontrolling interests— — (4)5
Profit 6
$3,210 $2,868 $342 $— 
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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20

Caterpillar Inc.
Supplemental Data for Financial Position
At June 30, 2023
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery,
Energy &
Transportation
Financial
Products
Consolidating
Adjustments
Assets    
Current assets:    
Cash and cash equivalents$7,387 $6,323 $1,064 $— 
Receivables – trade and other9,416 3,467 591 5,358 
1,2
Receivables – finance9,288 — 14,850 (5,562)2
Prepaid expenses and other current assets3,163 2,936 308 (81)3
Inventories17,746 17,746 — — 
Total current assets47,000 30,472 16,813 (285)
Property, plant and equipment – net12,124 8,102 4,022 — 
Long-term receivables – trade and other1,161 523 155 483 
1,2
Long-term receivables – finance12,022 — 12,544 (522)2
Noncurrent deferred and refundable income taxes2,607 3,122 116 (631)4
Intangible assets630 630 — — 
Goodwill5,293 5,293 — — 
Other assets4,590 3,802 1,966 (1,178)5
Total assets$85,427 $51,944 $35,616 $(2,133)
Liabilities    
Current liabilities:    
Short-term borrowings$5,548 $— $5,548 $— 
Accounts payable8,443 8,364 298 (219)6,7
Accrued expenses4,493 4,003 490 — 
Accrued wages, salaries and employee benefits1,755 1,718 37 — 
Customer advances2,137 2,121 15 7
Dividends payable663 663 — — 
Other current liabilities3,109 2,484 729 (104)
4,8
Long-term debt due within one year9,166 1,043 8,123 — 
Total current liabilities35,314 20,396 15,226 (308)
Long-term debt due after one year22,985 8,574 14,450 (39)9
Liability for postemployment benefits4,084 4,084 — — 
Other liabilities4,788 3,855 1,617 (684)4
Total liabilities67,171 36,909 31,293 (1,031)
    
Shareholders’ equity    
Common stock6,478 6,478 905 (905)10
Treasury stock(33,391)(33,391)— — 
Profit employed in the business47,094 42,739 4,344 11 10
Accumulated other comprehensive income (loss)(1,946)(815)(1,131)— 
Noncontrolling interests21 24 205 (208)10
Total shareholders’ equity18,256 15,035 4,323 (1,102)
Total liabilities and shareholders’ equity$85,427 $51,944 $35,616 $(2,133)
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.
7Reclassification of Financial Products' payables to accrued expenses or customer advances.
8Elimination of prepaid insurance in Financial Products’ other liabilities.
9
Elimination of debt between ME&T and Financial Products.
10
Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries.
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21

Caterpillar Inc.
Supplemental Data for Financial Position
At December 31, 2022
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery,
Energy &
Transportation
Financial
Products
Consolidating
Adjustments
Assets    
Current assets:    
Cash and cash equivalents$7,004 $6,042 $962 $— 
Receivables – trade and other8,856 3,710 519 4,627 
1,2
Receivables – finance9,013 — 13,902 (4,889)2
Prepaid expenses and other current assets2,642 2,488 290 (136)3
Inventories16,270 16,270 — — 
Total current assets43,785 28,510 15,673 (398)
Property, plant and equipment – net12,028 8,186 3,842 — 
Long-term receivables – trade and other1,265 418 339 508 
1,2
Long-term receivables – finance12,013 — 12,552 (539)2
Noncurrent deferred and refundable income taxes2,213 2,755 115 (657)4
Intangible assets758 758 — — 
Goodwill5,288 5,288 — — 
Other assets4,593 3,882 1,892 (1,181)5
Total assets$81,943 $49,797 $34,413 $(2,267)
Liabilities    
Current liabilities:    
Short-term borrowings$5,957 $$5,954 $— 
Accounts payable8,689 8,657 294 (262)6
Accrued expenses4,080 3,687 393 — 
Accrued wages, salaries and employee benefits2,313 2,264 49 — 
Customer advances1,860 1,860 — — 
Dividends payable620 620 — — 
Other current liabilities2,690 2,215 635 (160)
4,7
Long-term debt due within one year5,322 120 5,202 — 
Total current liabilities31,531 19,426 12,527 (422)
Long-term debt due after one year25,714 9,529 16,216 (31)8
Liability for postemployment benefits4,203 4,203 — — 
Other liabilities4,604 3,677 1,638 (711)4
Total liabilities66,052 36,835 30,381 (1,164)
    
Shareholders’ equity    
Common stock6,560 6,560 905 (905)9
Treasury stock(31,748)(31,748)— — 
Profit employed in the business43,514 39,435 4,068 11 9
Accumulated other comprehensive income (loss)(2,457)(1,310)(1,147)— 
Noncontrolling interests22 25 206 (209)9
Total shareholders’ equity15,891 12,962 4,032 (1,103)
Total liabilities and shareholders’ equity$81,943 $49,797 $34,413 $(2,267)
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 payables between ME&T and Financial Products.
7
Elimination of prepaid insurance in Financial Products’ other liabilities.
8Elimination of debt between ME&T and Financial Products.
9
Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries.
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22

Caterpillar Inc.
Supplemental Data for Cash Flow
For the Six Months Ended June 30,2023
(Unaudited)
(Millions of dollars)
  Supplemental Consolidating Data
 ConsolidatedMachinery, Energy & TransportationFinancial
Products
Consolidating
Adjustments
Cash flow from operating activities:    
Profit of consolidated and affiliated companies$4,866 $4,588 $356 $(78)1,5
Adjustments for non-cash items:    
Depreciation and amortization1,074 690 384 — 
Provision (benefit) for deferred income taxes(355)(338)(17)— 
Loss on divestiture572 572 — — 
Other106 198 (368)276 2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other(465)132 57 (654)
2,3
Inventories(1,560)(1,558)— (2)2
Accounts payable34 (28)60 2
Accrued expenses381 318 63 — 
Accrued wages, salaries and employee benefits(562)(550)(12)— 
Customer advances284 283 — 
Other assets – net81 149 (73)2
Other liabilities – net366 211 71 84 2
Net cash provided by (used for) operating activities4,822 4,667 542 (387)
Cash flow from investing activities:    
Capital expenditures – excluding equipment leased to others(683)(678)(11)2
Expenditures for equipment leased to others(774)(7)(772)2
Proceeds from disposals of leased assets and property, plant and equipment368 27 350 (9)2
Additions to finance receivables(6,973)— (7,957)984 3
Collections of finance receivables6,759 — 7,516 (757)3
Net intercompany purchased receivables— — (83)83 3
Proceeds from sale of finance receivables29 — 29 — 
Net intercompany borrowings— — (4)4
Investments and acquisitions (net of cash acquired)(20)(20)— — 
Proceeds from sale of businesses and investments (net of cash sold)(14)(14)— — 
Proceeds from sale of securities463 332 131 — 
Investments in securities(1,078)(866)(212)— 
Other – net41 41 — —