Caterpillar Reports Second-Quarter 2021 Results

Rhea-AI Summary

Caterpillar Inc. reported a strong second quarter for 2021, with sales and revenues rising to $12.9 billion, a 29% increase year-over-year. Profit per share reached $2.56, significantly up from $0.84 in 2020. The rise in sales was attributed to higher demand for equipment and favorable changes in dealer inventories. Operating profit margin improved to 13.9%, while the company returned $0.8 billion to shareholders via dividends and share buybacks. End-user demand showed growth across all regions, supporting a strong financial outlook.

Positive

• Sales and revenues grew by 29% to $12.9 billion.
• Profit per share increased to $2.56 from $0.84 in Q2 2020.
• Operating profit margin improved to 13.9%, compared to 7.8% in Q2 2020.
• Returned $0.8 billion to shareholders through dividends and share repurchases.
• Strong end-user demand for equipment and services across all regions.

Negative

• Higher SG&A and R&D expenses, including short-term incentive compensation.
• Increased manufacturing costs, primarily labor-related.

DEERFIELD, Ill., July 30, 2021 /PRNewswire/ --

• Second-quarter 2021 sales and revenues increased 29% to $12.9 billion
• Second-quarter 2021 profit per share of $2.56; adjusted profit per share of $2.60
• Strong balance sheet; returned $0.8 billion to shareholders through dividends and share repurchases

 

		Second Quarter
($ in billions except profit per share)		2021	2020
Sales and Revenues		$12.9	$10.0
Profit Per Share		$2.56	$0.84
Adjusted Profit Per Share		$2.60	$1.27

Caterpillar Inc. (NYSE: CAT) today announced second-quarter 2021 sales and revenues of $12.9 billion, a 29% increase compared with $10.0 billion in the second quarter of 2020. The increase was primarily due to higher sales volume driven by higher end-user demand for equipment and services and the impact from changes in dealer inventories. Dealers decreased their inventories more during the second quarter of 2020 than during the second quarter of 2021.

Operating profit margin was 13.9% for the second quarter of 2021, compared with 7.8% for the second quarter of 2020. Second-quarter 2021 profit per share was $2.56, compared with $0.84 profit per share in the second quarter of 2020. Adjusted profit per share in the second quarter of 2021 was $2.60, compared with second-quarter 2020 adjusted profit per share of $1.27. Adjusted profit per share for both quarters excluded restructuring costs, while the second quarter of 2020 also excluded remeasurement losses of $0.19 per share, resulting from the settlements of pension obligations. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 13.

For the first half of 2021, enterprise operating cash flow was $4.0 billion. In total, the company returned $0.8 billion to shareholders in the quarter, after increasing the dividend and reinstating share repurchases. The company ended the period with $10.8 billion of enterprise cash.

"Our dedicated global team remains focused on serving our customers, executing our strategy and investing for future profitable growth," said Caterpillar Chairman and CEO Jim Umpleby. "We're encouraged by higher sales and revenues across all regions and in our three primary segments, which reflect continued improvement in our end markets."

CONSOLIDATED RESULTS

Consolidated Sales and Revenues

Consolidated Sales and Revenues Comparison
Second Quarter 2021 vs. Second Quarter 2020

To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar second-quarter 2021 earnings.

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the second quarter of 2020 (at left) and the second 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 second quarter of 2021 were $12.889 billion, an increase of $2.892 billion, or 29%, compared with $9.997 billion in the second quarter of 2020. The increase was primarily due to higher sales volume driven by higher end-user demand for equipment and services and the impact from changes in dealer inventories. Dealers decreased inventories by $1.4 billion during the second quarter of 2020, compared with a decrease of $400 million during the second quarter of 2021. Favorable currency impacts were related to the Australian dollar, euro and Chinese yuan. Favorable price realization also contributed to the sales improvement.

Sales were higher across all regions and in the three primary segments.

Sales and Revenues by Segment
(Millions of dollars)	Second Quarter 2020				Sales Volume				Price Realization				Currency				Inter- Segment / Other				Second Quarter 2021				$ Change				% Change
Construction Industries	$	4,048			$	1,171			$	238			$	162			$	37			$	5,656			$	1,608			40%
Resource Industries	1,826				712				(17)				66				(8)				2,579				753				41%
Energy & Transportation	4,149				456				12				111				247				4,975				826				20%
All Other Segment	115				4				—				2				7				128				13				11%
Corporate Items and Eliminations	(828)				(34)				—				—				(283)				(1,145)				(317)
Machinery, Energy & Transportation	9,310				2,309				233				341				—				12,193				2,883				31%
Financial Products Segment	763				—				—				—				11				774				11				1%
Corporate Items and Eliminations	(76)				—				—				—				(2)				(78)				(2)
Financial Products Revenues	687				—				—				—				9				696				9				1%
Consolidated Sales and Revenues	$	9,997			$	2,309			$	233			$	341			$	9			$	12,889			$	2,892			29%

 

Sales and Revenues by Geographic Region
	North America						Latin America						EAME						Asia/Pacific						External Sales and Revenues						Inter-Segment						Total Sales and Revenues
(Millions of dollars)	$				% Chg		$				% Chg		$				% Chg		$				% Chg		$				% Chg		$				% Chg		$				% Chg
Second Quarter 2021
Construction Industries	$	2,498			56%		$	430			103%		$	1,291			38%		$	1,384			8%		$	5,603			39%		$	53			231%		$	5,656			40%
Resource Industries	799				58%		487				80%		525				39%		660				19%		2,471				45%		108				(7%)		2,579				41%
Energy & Transportation	1,992				10%		250				27%		1,196				29%		682				14%		4,120				16%		855				41%		4,975				20%
All Other Segment	11				57%		1				—%		4				(20%)		18				20%		34				21%		94				8%		128				11%
Corporate Items and Eliminations	(31)						(1)						(1)						(2)						(35)						(1,110)						(1,145)
Machinery, Energy & Transportation	5,269				34%		1,167				72%		3,015				34%		2,742				12%		12,193				31%		—				—%		12,193				31%
Financial Products Segment	488				(1%)		65				8%		96				—%		125				10%		774				1%		—				—%		774				1%
Corporate Items and Eliminations	(38)						(11)						(9)						(20)						(78)						—						(78)
Financial Products Revenues	450				—%		54				6%		87				—%		105				6%		696				1%		—				—%		696				1%
Consolidated Sales and Revenues	$	5,719			30%		$	1,221			67%		$	3,102			33%		$	2,847			12%		$	12,889			29%		$	—			—%		$	12,889			29%
Second Quarter 2020
Construction Industries	$	1,604					$	212					$	933					$	1,283					$	4,032					$	16					$	4,048
Resource Industries	507						270						379						554						1,710						116						1,826
Energy & Transportation	1,816						197						929						599						3,541						608						4,149
All Other Segment	7						1						5						15						28						87						115
Corporate Items and Eliminations	2						(1)						—						(2)						(1)						(827)						(828)
Machinery, Energy & Transportation	3,936						679						2,246						2,449						9,310						—						9,310
Financial Products Segment	493						60						96						114						763						—						763
Corporate Items and Eliminations	(43)						(9)						(9)						(15)						(76)						—						(76)
Financial Products Revenues	450						51						87						99						687						—						687
Consolidated Sales and Revenues	$	4,386					$	730					$	2,333					$	2,548					$	9,997					$	—					$	9,997

Consolidated Operating Profit

Consolidated Operating Profit Comparison 
Second Quarter 2021 vs. Second Quarter 2020 

To access this chart, go to https://investors.caterpillar.com/financials/quarterly-results/default.aspx for the downloadable version of Caterpillar second-quarter 2021 earnings. 

The chart above graphically illustrates reasons for the change in consolidated operating profit between the second quarter of 2020 (at left) and the second 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 second quarter of 2021 was $1.789 billion, an increase of $1.005 billion, or 128%, compared with $784 million in the second quarter of 2020. The increase was primarily due to higher sales volume. Favorable price realization, lower restructuring expenses (included in other) and higher profit from Financial Products were mostly offset by higher selling, general and administrative (SG&A) and research and development (R&D) expenses and higher manufacturing costs.

The increase in SG&A/R&D expenses was mainly driven by higher short-term incentive compensation expense, which was reinstated in 2021.

Unfavorable manufacturing costs reflected higher period manufacturing and material costs, partially offset by favorable cost absorption. Period manufacturing costs increased primarily due to higher short-term incentive compensation expense and higher labor-related costs. Cost absorption was favorable as inventory increased during the second quarter of 2021, compared with a decrease during the second quarter of 2020.

Profit (Loss) by Segment
(Millions of dollars)	Second Quarter 2021				Second Quarter 2020				$ Change				%  Change
Construction Industries	$	1,024			$	518			$	506			98%
Resource Industries	361				152				209				138%
Energy & Transportation	731				624				107				17%
All Other Segment	(10)				(3)				(7)				(233%)
Corporate Items and Eliminations	(453)				(542)				89
Machinery, Energy & Transportation	1,653				749				904				121%
Financial Products Segment	243				148				95				64%
Corporate Items and Eliminations	(29)				(38)				9
Financial Products	214				110				104				95%
Consolidating Adjustments	(78)				(75)				(3)
Consolidated Operating Profit	$	1,789			$	784			$	1,005			128%

Other Profit/Loss and Tax Items

• Other income (expense) in the second quarter of 2021 was income of $201 million, compared with income of $29 million in the second quarter of 2020. The change was primarily due to the absence of remeasurement losses resulting from the settlements of pension obligations that occurred in the second quarter of 2020, as well as favorable pension and other postemployment benefit (OPEB) costs.
• The provision for income taxes for the second quarter of 2021 reflected a lower estimated annual tax rate of 26%, compared with 31% for the second 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 was mainly related to changes in the expected geographic mix of profits from a tax perspective for 2021.
  In addition, a discrete tax benefit of $17 million was recorded in the second quarter of 2021 for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. A $21 million tax benefit was also recorded in the second quarter of 2020 related to the $122 million of remeasurement losses resulting from the settlements of pension obligations.

CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
		Second Quarter 2020				Sales Volume				Price Realization				Currency				Inter- Segment				Second Quarter 2021				$  Change				%  Change
Total Sales		$	4,048			$	1,171			$	238			$	162			$	37			$	5,656			$	1,608			40%
Sales by Geographic Region
		Second Quarter 2021				Second Quarter 2020				$ Change				% Change
North America		$	2,498			$	1,604			$	894			56%
Latin America		430				212				218				103%
EAME		1,291				933				358				38%
Asia/Pacific		1,384				1,283				101				8%
External Sales		5,603				4,032				1,571				39%
Inter-segment		53				16				37				231%
Total Sales		$	5,656			$	4,048			$	1,608			40%
Segment Profit
		Second Quarter 2021				Second Quarter 2020				Change				% Change
Segment Profit		$	1,024			$	518			$	506			98%
Segment Profit Margin		18.1%				12.8%				5.3 pts

Construction Industries' total sales were $5.656 billion in the second quarter of 2021, an increase of $1.608 billion, or 40%, compared with $4.048 billion in the second quarter of 2020. The increase was due to higher sales volume, favorable price realization and favorable currency impacts from the euro, Australian dollar and Chinese yuan. The increase in sales volume was driven by higher end-user demand for equipment and aftermarket parts and the impact from changes in dealer inventories. Overall, dealers decreased inventories more during the second quarter of 2020 than during the second quarter of 2021.

• In North America, sales increased due to higher sales volume and favorable price realization. Higher sales volume was driven by higher end-user demand primarily in residential construction and the impact from changes in dealer inventories. Dealers decreased inventories more during the second quarter of 2020 than during the second quarter of 2021.
• Sales increased in Latin America mostly due to higher sales volume driven by higher end-user demand across the region for equipment and aftermarket parts and the impact of changes in dealer inventories. Dealers increased inventories during the second quarter of 2021, compared with a decrease during the second quarter of 2020.
• In EAME, sales increased due to higher sales volume and favorable currency impacts primarily 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 during the second quarter of 2021, compared with a decrease during the second quarter of 2020.
• Sales increased in Asia/Pacific primarily due to favorable currency impacts from a stronger Australian dollar and Chinese yuan and favorable price realization, partially offset by lower sales volume. Lower sales volume was driven by lower end-user demand for equipment, primarily in China, partially offset by the impacts from changes in dealer inventories and higher end-user demand for aftermarket parts. Dealers decreased inventories more during the second quarter of 2020 than during the second quarter of 2021.

Construction Industries' profit was $1.024 billion in the second quarter of 2021, an increase of $506 million, or 98%, compared with $518 million in the second quarter of 2020. The increase was mainly due to higher sales volume and favorable price realization, partially offset by higher SG&A/R&D expenses and unfavorable manufacturing costs.

The increase in SG&A/R&D expenses was driven by higher short-term incentive compensation expense.

Increased manufacturing costs reflected higher period manufacturing and material costs partially offset by favorable impacts of cost absorption and variable labor and burden. The increase in period manufacturing costs was driven by higher short-term incentive compensation expense and higher labor costs. Cost absorption was favorable as inventory increased during the second quarter of 2021, compared with a decrease during the second quarter of 2020.

RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
		Second Quarter 2020				Sales Volume				Price Realization				Currency				Inter- Segment				Second Quarter 2021				$  Change				%  Change
Total Sales		$	1,826			$	712			$	(17)			$	66			$	(8)			$	2,579			$	753			41%
Sales by Geographic Region
		Second Quarter 2021				Second Quarter 2020				$ Change				% Change
North America		$	799			$	507			$	292			58%
Latin America		487				270				217				80%
EAME		525				379				146				39%
Asia/Pacific		660				554				106				19%
External Sales		2,471				1,710				761				45%
Inter-segment		108				116				(8)				(7%)
Total Sales		$	2,579			$	1,826			$	753			41%
Segment Profit
		Second Quarter 2021				Second Quarter 2020				Change				% Change
Segment Profit		$	361			$	152			$	209			138%
Segment Profit Margin		14.0%				8.3%				5.7 pts

Resource Industries' total sales were $2.579 billion in the second quarter of 2021, an increase of $753 million, or 41%, compared with $1.826 billion in the second quarter of 2020. The increase was due to higher sales volume driven by higher end-user demand for equipment and aftermarket parts and the impacts of changes in dealer inventories. Dealers decreased inventories during the second quarter of 2020, compared to remaining about flat during the second quarter of 2021. End-user demand was higher in heavy construction and quarry and aggregates; it was also higher in mining, although to a lesser extent.

Resource Industries' profit was $361 million in the second quarter of 2021, an increase of $209 million, or 138%, compared with $152 million in the second quarter of 2020. The increase was mainly due to higher sales volume, partially offset by higher SG&A/R&D expenses. The increase in SG&A/R&D expenses was driven by higher short-term incentive compensation expense.

ENERGY & TRANSPORTATION
(Millions of dollars)
Segment Sales
		Second Quarter 2020				Sales Volume				Price Realization				Currency				Inter- Segment				Second Quarter 2021				$  Change						%  Change
Total Sales		$	4,149			$	456			$	12			$	111			$	247			$	4,975					$	826			20%
Sales by Application
		Second Quarter 2021				Second Quarter 2020				$ Change				% Change
Oil and Gas		$	1,137			$	1,027			$	110			11%
Power Generation		1,052				895				157				18%
Industrial		899				678				221				33%
Transportation		1,032				941				91				10%
External Sales		4,120				3,541				579				16%
Inter-segment		855				608				247				41%
Total Sales		$	4,975			$	4,149			$	826			20%
Segment Profit
		Second Quarter 2021				Second Quarter 2020				Change				% Change
Segment Profit		$	731			$	624			$	107			17%
Segment Profit Margin		14.7%				15.0%				(0.3 pts)

Energy & Transportation's total sales were $4.975 billion in the second quarter of 2021, an increase of $826 million, or 20%, compared with $4.149 billion in the second quarter of 2020. Sales increased across all applications.

• Oil and Gas – Sales increased mainly due to higher sales of reciprocating engine aftermarket parts in all regions. The increase was partially offset by lower sales in reciprocating engines used in well servicing applications and turbines and turbine-related services.
• Power Generation – Sales increased due to higher sales volume in large reciprocating engines, primarily driven by data centers, and reciprocating engine aftermarket parts.
• Industrial – Sales were up due to higher demand across all regions.
• Transportation – Sales increased in rail services and marine.

Energy & Transportation's profit was $731 million in the second quarter of 2021, an increase of $107 million, or 17%, compared with $624 million in the second quarter of 2020. The increase was due to higher sales volume partially offset by higher SG&A/R&D expenses and period manufacturing costs. Both SG&A/R&D expenses and period manufacturing costs were driven by higher short-term incentive compensation expense and acquisition-related expenses.

FINANCIAL PRODUCTS SEGMENT
(Millions of dollars)
Revenues by Geographic Region
		Second Quarter 2021				Second Quarter 2020				$ Change				% Change
North America		$	488			$	493			$	(5)			(1%)
Latin America		65				60				5				8%
EAME		96				96				—				—%
Asia/Pacific		125				114				11				10%
Total Revenues		$	774			$	763			$	11			1%
Segment Profit
		Second Quarter 2021				Second Quarter 2020				Change				% Change
Segment Profit		$	243			$	148			$	95			64%

Financial Products' segment revenues were $774 million in the second quarter of 2021, an increase of $11 million, or 1%, from the second quarter of 2020.

Financial Products' segment profit was $243 million in the second quarter of 2021, compared with $148 million in the second quarter of 2020. The increase was mainly due to lower provision for credit losses at Cat Financial, higher net yield on average earning assets and a favorable impact from returned or repossessed equipment. These favorable impacts were partially offset by an increase in SG&A expenses primarily due to higher short-term incentive compensation expense.

At the end of the second quarter of 2021, past dues at Cat Financial were 2.58%, compared with 3.74% at the end of the second quarter of 2020. Past dues decreased across all portfolio segments as global markets generally improved. Write-offs, net of recoveries, were $54 million for the second quarter of 2021, compared with $30 million for the second quarter of 2020. As of June 30, 2021, Cat Financial's allowance for credit losses totaled $402 million, or 1.46% of finance receivables, compared with $441 million, or 1.64% of finance receivables at March 31, 2021. The allowance for credit losses at year-end 2020 was $479 million, or 1.77% of finance receivables.

Corporate Items and Eliminations

Expense for corporate items and eliminations was $482 million in the second quarter of 2021, a decrease of $98 million from the second quarter of 2020, primarily due to favorable impacts of segment reporting methodology differences and lower restructuring costs, partially offset by higher expenses due to timing differences.

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 Friday, July 30, 2021.
iii.  Information on non-GAAP financial measures is included in the appendix on page 13.
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 Friday, July 30, 2021, to discuss its 2021 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 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)

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.

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, which were incurred to generate longer-term benefits and (ii) remeasurement losses resulting from the settlements of pension obligations in the second quarter of 2020. 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 Profit				Operating Profit Margin			Profit Before Taxes				Provision (Benefit) for Income Taxes				Effective Tax Rate			Profit				Profit per Share
Three Months Ended June 30, 2021 - U.S. GAAP		$	1,789			13.9%			$	1,870			$	470			25.1%			$	1,413			$	2.56
Restructuring costs		25				0.2%			25				3				15.0%			22				$	0.04
Three Months Ended June 30, 2021 - Adjusted		$	1,814			14.1%			$	1,895			$	473			25.0%			$	1,435			$	2.60
Three Months Ended June 30, 2020 - U.S. GAAP		$	784			7.8%			$	678			$	227			33.5%			$	458			$	0.84
Restructuring costs		147				1.5%			147				15				10.2%			132				$	0.24
Remeasurement losses of pension obligations		—				—%			122				21				17.2%			101				$	0.19
Three Months Ended June 30, 2020 - Adjusted		$	931			9.3%			$	947			$	263			27.8%			$	691			$	1.27

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 15 to 25 reconcile ME&T and Financial Products to Caterpillar Inc. consolidated financial information.

 

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,
	2021				2020				2021				2020
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	12,193			$	9,310			$	23,384			$	19,224
Revenues of Financial Products	696				687				1,392				1,408
Total sales and revenues	12,889				9,997				24,776				20,632
Operating costs:
Cost of goods sold	8,881				7,113				16,893				14,379
Selling, general and administrative expenses	1,364				1,179				2,603				2,300
Research and development expenses	446				341				820				697
Interest expense of Financial Products	116				149				241				324
Other operating (income) expenses	293				431				616				744
Total operating costs	11,100				9,213				21,173				18,444
Operating profit	1,789				784				3,603				2,188
Interest expense excluding Financial Products	120				135				262				248
Other income (expense)	201				29				526				251
Consolidated profit before taxes	1,870				678				3,867				2,191
Provision (benefit) for income taxes	470				227				945				652
Profit of consolidated companies	1,400				451				2,922				1,539
Equity in profit (loss) of unconsolidated affiliated companies	14				8				23				13
Profit of consolidated and affiliated companies	1,414				459				2,945				1,552
Less: Profit (loss) attributable to noncontrolling interests	1				1				2				2
Profit 1	$	1,413			$	458			$	2,943			$	1,550
Profit per common share	$	2.58			$	0.84			$	5.38			$	2.85
Profit per common share — diluted 2	$	2.56			$	0.84			$	5.33			$	2.83
Weighted-average common shares outstanding (millions)
– Basic	547.9				541.5				547.1				544.5
– Diluted 2	552.1				544.5				551.8				548.2

1	Profit attributable to common shareholders.
2	Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

 

Caterpillar Inc.
Condensed Consolidated Statement of Financial Position
(Unaudited)
(Millions of dollars)
	June 30, 2021				December 31, 2020
Assets
Current assets:
Cash and short-term investments	$	10,831			$	9,352
Receivables – trade and other	7,840				7,317
Receivables – finance	9,523				9,463
Prepaid expenses and other current assets	2,080				1,930
Inventories	12,672				11,402
Total current assets	42,946				39,464
Property, plant and equipment – net	12,014				12,401
Long-term receivables – trade and other	1,206				1,185
Long-term receivables – finance	12,590				12,222
Noncurrent deferred and refundable income taxes	1,455				1,523
Intangible assets	1,176				1,308
Goodwill	6,372				6,394
Other assets	3,938				3,827
Total assets	$	81,697			$	78,324
Liabilities
Current liabilities:
Short-term borrowings:
-- Machinery, Energy & Transportation	$	4			$	10
-- Financial Products	3,421				2,005
Accounts payable	6,921				6,128
Accrued expenses	3,556				3,642
Accrued wages, salaries and employee benefits	1,759				1,096
Customer advances	1,157				1,108
Dividends payable	608				562
Other current liabilities	2,126				2,017
Long-term debt due within one year:
-- Machinery, Energy & Transportation	50				1,420
-- Financial Products	7,906				7,729
Total current liabilities	27,508				25,717
Long-term debt due after one year:
-- Machinery, Energy & Transportation	9,752				9,749
-- Financial Products	16,452				16,250
Liability for postemployment benefits	6,581				6,872
Other liabilities	4,524				4,358
Total liabilities	64,817				62,946
Shareholders' equity
Common stock	6,293				6,230
Treasury stock	(25,240)				(25,178)
Profit employed in the business	36,934				35,167
Accumulated other comprehensive income (loss)	(1,154)				(888)
Noncontrolling interests	47				47
Total shareholders' equity	16,880				15,378
Total liabilities and shareholders' equity	$	81,697			$	78,324

 

Caterpillar Inc.
Condensed Consolidated Statement of Cash Flow
(Unaudited)
(Millions of dollars)
	Six Months Ended June 30,
	2021				2020
Cash flow from operating activities:
Profit of consolidated and affiliated companies	$	2,945			$	1,552
Adjustments for non-cash items:
Depreciation and amortization	1,173				1,222
Net gain on remeasurement of pension obligations	—				(132)
Provision (benefit) for deferred income taxes	68				(32)
Other	(20)				674
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other	(343)				1,176
Inventories	(1,179)				(145)
Accounts payable	893				(655)
Accrued expenses	22				(253)
Accrued wages, salaries and employee benefits	618				(648)
Customer advances	49				(2)
Other assets – net	(47)				(7)
Other liabilities – net	(133)				(229)
Net cash provided by (used for) operating activities	4,046				2,521
Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others	(419)				(472)
Expenditures for equipment leased to others	(681)				(526)
Proceeds from disposals of leased assets and property, plant and equipment	636				382
Additions to finance receivables	(6,203)				(6,712)
Collections of finance receivables	5,580				6,801
Proceeds from sale of finance receivables	27				31
Investments and acquisitions (net of cash acquired)	(398)				(49)
Proceeds from sale of businesses and investments (net of cash sold)	28				13
Proceeds from sale of securities	276				151
Investments in securities	(500)				(369)
Other – net	(63)				7
Net cash provided by (used for) investing activities	(1,717)				(743)
Cash flow from financing activities:
Dividends paid	(1,126)				(1,125)
Common stock issued, including treasury shares reissued	123				(10)
Common shares repurchased	(251)				(1,130)
Proceeds from debt issued (original maturities greater than three months)	4,906				6,159
Payments on debt (original maturities greater than three months)	(5,966)				(4,629)
Short-term borrowings – net (original maturities three months or less)	1,460				(477)
Other – net	(2)				(1)
Net cash provided by (used for) financing activities	(856)				(1,213)
Effect of exchange rate changes on cash	3				(66)
Increase (decrease) in cash and short-term investments and restricted cash	1,476				499
Cash and short-term investments and restricted cash at beginning of period	9,366				8,292
Cash and short-term investments and restricted cash at end of period	$	10,842			$	8,791

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.

 

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended June 30, 2021
(Unaudited)
(Millions of dollars)
					Supplemental Consolidating Data
	Consolidated				Machinery, Energy & Transportation				Financial Products				Consolidating Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	12,193			$	12,193			$	—			$	—
Revenues of Financial Products	696				—				796				(100)			1
Total sales and revenues	12,889				12,193				796				(100)
Operating costs:
Cost of goods sold	8,881				8,884				—				(3)			2
Selling, general and administrative expenses	1,364				1,210				159				(5)			2
Research and development expenses	446				446				—				—
Interest expense of Financial Products	116				—				116				—
Other operating (income) expenses	293				—				307				(14)			2
Total operating costs	11,100				10,540				582				(22)
Operating profit	1,789				1,653				214				(78)
Interest expense excluding Financial Products	120				120				—				—
Other income (expense)	201				445				28				(272)			3
Consolidated profit before taxes	1,870				1,978				242				(350)
Provision (benefit) for income taxes	470				415				55				—
Profit of consolidated companies	1,400				1,563				187				(350)
Equity in profit (loss) of unconsolidated affiliated companies	14				17				—				(3)			4
Profit of consolidated and affiliated companies	1,414				1,580				187				(353)
Less: Profit (loss) attributable to noncontrolling interests	1				1				3				(3)			5
Profit 6	$	1,413			$	1,579			$	184			$	(350)

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.
6	Profit attributable to common shareholders.

 

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Three Months Ended June 30, 2020
(Unaudited)
(Millions of dollars)
					Supplemental Consolidating Data
	Consolidated				Machinery, Energy & Transportation				Financial Products				Consolidating Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	9,310			$	9,310			$	—			$	—
Revenues of Financial Products	687				—				780				(93)			1
Total sales and revenues	9,997				9,310				780				(93)
Operating costs:
Cost of goods sold	7,113				7,114				—				(1)			2
Selling, general and administrative expenses	1,179				984				201				(6)			2
Research and development expenses	341				341				—				—
Interest expense of Financial Products	149				—				149				—
Other operating (income) expenses	431				122				320				(11)			2
Total operating costs	9,213				8,561				670				(18)
Operating profit	784				749				110				(75)
Interest expense excluding Financial Products	135				135				—				—
Other income (expense)	29				(57)				31				55			3
Consolidated profit before taxes	678				557				141				(20)
Provision (benefit) for income taxes	227				190				37				—
Profit of consolidated companies	451				367				104				(20)
Equity in profit (loss) of unconsolidated affiliated companies	8				13				—				(5)			4
Profit of consolidated and affiliated companies	459				380				104				(25)
Less: Profit (loss) attributable to noncontrolling interests	1				1				5				(5)			5
Profit 6	$	458			$	379			$	99			$	(20)

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.
6	Profit attributable to common shareholders.

 

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Six Months Ended June 30, 2021
(Unaudited)
(Millions of dollars)
					Supplemental Consolidating Data
	Consolidated				Machinery, Energy & Transportation				Financial Products				Consolidating Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	23,384			$	23,384			$	—			$	—
Revenues of Financial Products	1,392				—				1,584				(192)			1
Total sales and revenues	24,776				23,384				1,584				(192)
Operating costs:
Cost of goods sold	16,893				16,897				—				(4)			2
Selling, general and administrative expenses	2,603				2,324				283				(4)			2
Research and development expenses	820				820				—				—
Interest expense of Financial Products	241				—				241				—
Other operating (income) expenses	616				26				621				(31)			2
Total operating costs	21,173				20,067				1,145				(39)
Operating profit	3,603				3,317				439				(153)
Interest expense excluding Financial Products	262				262				—				—
Other income (expense)	526				676				47				(197)			3
Consolidated profit before taxes	3,867				3,731				486				(350)
Provision (benefit) for income taxes	945				827				118				—
Profit of consolidated companies	2,922				2,904				368				(350)
Equity in profit (loss) of unconsolidated affiliated companies	23				29				—				(6)			4
Profit of consolidated and affiliated companies	2,945				2,933				368				(356)
Less: Profit (loss) attributable to noncontrolling interests	2				2				6				(6)			5
Profit 6	$	2,943			$	2,931			$	362			$	(350)

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.
6	Profit attributable to common shareholders.

 

Caterpillar Inc.
Supplemental Data for Results of Operations
For the Six Months Ended June 30, 2020
(Unaudited)
(Millions of dollars)
					Supplemental Consolidating Data
	Consolidated				Machinery, Energy & Transportation				Financial Products				Consolidating Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation	$	19,224			$	19,224			$	—			$	—
Revenues of Financial Products	1,408				—				1,610				(202)			1
Total sales and revenues	20,632				19,224				1,610				(202)
Operating costs:
Cost of goods sold	14,379				14,381				—				(2)			2
Selling, general and administrative expenses	2,300				1,924				383				(7)			2
Research and development expenses	697				697				—				—
Interest expense of Financial Products	324				—				325				(1)			3
Other operating (income) expenses	744				132				640				(28)			2
Total operating costs	18,444				17,134				1,348				(38)
Operating profit	2,188				2,090				262				(164)
Interest expense excluding Financial Products	248				247				—				1			3
Other income (expense)	251				122				(16)				145			4
Consolidated profit before taxes	2,191				1,965				246				(20)
Provision (benefit) for income taxes	652				587				65				—
Profit of consolidated companies	1,539				1,378				181				(20)
Equity in profit (loss) of unconsolidated affiliated companies	13				22				—				(9)			5
Profit of consolidated and affiliated companies	1,552				1,400				181				(29)
Less: Profit (loss) attributable to noncontrolling interests	2				2				9				(9)			6
Profit 7	$	1,550			$	1,398			$	172			$	(20)

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.
7	Profit attributable to common shareholders.

 

Caterpillar Inc.
Supplemental Data for Financial Position
At June 30, 2021
(Unaudited)
(Millions of dollars)
					Supplemental Consolidating Data
	Consolidated				Machinery, Energy & Transportation				Financial Products				Consolidating Adjustments
Assets
Current assets:
Cash and short-term investments	$	10,831			$	10,028			$	803			$	—
Receivables – trade and other	7,840				3,169				455				4,216			1,2
Receivables – finance	9,523				—				13,863				(4,340)			2
Prepaid expenses and other current assets	2,080				1,756				479				(155)			3
Inventories	12,672				12,672				—				—
Total current assets	42,946				27,625				15,600				(279)
Property, plant and equipment – net	12,014				8,035				3,979				—
Long-term receivables – trade and other	1,206				375				176				655			1,2
Long-term receivables – finance	12,590				—				13,273				(683)			2
Noncurrent deferred and refundable income taxes	1,455				1,980				103				(628)			4
Intangible assets	1,176				1,176				—				—
Goodwill	6,372				6,372				—				—
Other assets	3,938				3,250				1,899				(1,211)			5
Total assets	$	81,697			$	48,813			$	35,030			$	(2,146)
Liabilities
Current liabilities:
Short-term borrowings	$	3,425			$	4			$	3,421			$	—
Short-term borrowings with consolidated companies	—				—				—				—
Accounts payable	6,921				6,830				215				(124)			6
Accrued expenses	3,556				3,191				365				—
Accrued wages, salaries and employee benefits	1,759				1,719				40				—
Customer advances	1,157				1,157				—				—
Dividends payable	608				608				—				—
Other current liabilities	2,126				1,658				646				(178)			4,7
Long-term debt due within one year	7,956				50				7,906				—
Total current liabilities	27,508				15,217				12,593				(302)
Long-term debt due after one year	26,204				9,780				16,452				(28)			8
Liability for postemployment benefits	6,581				6,580				1				—
Other liabilities	4,524				3,851				1,374				(701)			4
Total liabilities	64,817				35,428				30,420				(1,031)
Shareholders' equity
Common stock	6,293				6,293				919				(919)			9
Treasury stock	(25,240)				(25,240)				—				—
Profit employed in the business	36,934				32,846				4,077				11			9
Accumulated other comprehensive income (loss)	(1,154)				(563)				(591)				—
Noncontrolling interests	47				49				205				(207)			9
Total shareholders' equity	16,880				13,385				4,610				(1,115)
Total liabilities and shareholders' equity	$	81,697			$	48,813			$	35,030			$	(2,146)

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.
3	Elimination 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.
7	Elimination 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.

 

Caterpillar Inc.
Supplemental Data for Financial Position
At December 31, 2020
(Unaudited)
(Millions of dollars)
					Supplemental Consolidating Data
	Consolidated				Machinery, Energy & Transportation				Financial Products				Consolidating Adjustments
Assets
Current assets:
Cash and short-term investments	$	9,352			$	8,822			$	530			$	—
Receivables – trade and other	7,317				3,846				397				3,074			1,2
Receivables – finance	9,463				—				13,681				(4,218)			2
Prepaid expenses and other current assets	1,930				1,376				624				(70)			3
Inventories	11,402				11,402				—				—
Total current assets	39,464				25,446				15,232				(1,214)
Property, plant and equipment – net	12,401				8,309				4,092				—
Long-term receivables – trade and other	1,185				363				164				658			1,2
Long-term receivables – finance	12,222				—				12,895				(673)			2
Noncurrent deferred and refundable income taxes	1,523				2,058				110				(645)			4
Intangible assets	1,308				1,308				—				—
Goodwill	6,394				6,394				—				—
Other assets	3,827				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 payable	6,128				6,060				212				(144)			7
Accrued expenses	3,642				3,099				543				—
Accrued wages, salaries and employee benefits	1,096				1,081				15				—
Customer advances	1,108				1,108				—				—
Dividends payable	562				562				—				—
Other current liabilities	2,017				1,530				580				(93)			4,8
Long-term debt due within one year	9,149				1,420				7,729				—
Total current liabilities	25,717				14,870				12,084				(1,237)
Long-term debt due after one year	25,999				9,764				16,250				(15)			6
Liability for postemployment benefits	6,872				6,872				—				—
Other liabilities	4,358				3,691				1,385				(718)			4
Total liabilities	62,946				35,197				29,719				(1,970)
Shareholders' equity
Common stock	6,230				6,230				919				(919)			9
Treasury stock	(25,178)				(25,178)				—				—
Profit employed in the business	35,167				31,091				4,065				11			9
Accumulated other comprehensive income (loss)	(888)				(352)				(536)				—
Noncontrolling interests	47				48				197				(198)			9
Total shareholders' equity	15,378				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.
3	Elimination 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 debt between ME&T and Financial Products.
7	Elimination of payables between ME&T and Financial Products.
8	Elimination of prepaid insurance in Financial Products' other liabilities.
9	Eliminations associated with ME&T's investments in Financial Products' subsidiaries.

 

Caterpillar Inc.
Supplemental Data for Cash Flow
For the Six Months Ended June 30, 2021
(Unaudited)
(Millions of dollars)
					Supplemental Consolidating Data
	Consolidated				Machinery, Energy & Transportation				Financial Products				Consolidating Adjustments
Cash flow from operating activities:
Profit of consolidated and affiliated companies	$	2,945			$	2,933			$	368			$	(356)		1, 5
Adjustments for non-cash items:
Depreciation and amortization	1,173				772				401				—
Provision (benefit) for deferred income taxes	68				111				(43)				—
Other	(20)				74				(169)				75			2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other	(343)				(206)				11				(148)			2, 3
Inventories	(1,179)				(1,180)				—				1			2
Accounts payable	893				871				2				20			2
Accrued expenses	22				93				(71)				—
Accrued wages, salaries and employee benefits	618				593				25				—
Customer advances	49				49				—				—
Other assets – net	(47)				(154)				15				92			2
Other liabilities – net	(133)				(157)				97				(73)			2
Net cash provided by (used for) operating activities	4,046				3,799				636				(389)
Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others	(419)				(417)				(7)				5			2
Expenditures for equipment leased to others	(681)				(13)				(670)				2			2
Proceeds from disposals of leased assets and property, plant and equipment	636				49				595				(8)			2
Additions to finance receivables	(6,203)				—				(6,680)				477			3
Collections of finance receivables	5,580				—				6,095				(515)			3
Net intercompany purchased receivables	—				—				(78)				78			3
Proceeds from sale of finance receivables	27				—				27				—
Net intercompany borrowings	—				1,000				2				(1,002)			4
Investments and acquisitions (net of cash acquired)	(398)				(398)				—				—
Proceeds from sale of businesses and investments (net of cash sold)	28				28				—				—
Proceeds from sale of securities	276				35				241				—
Investments in securities	(500)				(225)				(275)				—
Other – net	(63)				26				(89)				—
Net cash provided by (used for) investing activities	(1,717)				85				(839)				(963)
Cash flow from financing activities:
Dividends paid	(1,126)				(1,126)				(350)				350			5
Common stock issued, including treasury shares reissued	123				123				—				—
Common shares repurchased	(251)				(251)				—				—
Net intercompany borrowings	—				(2)				(1,000)				1,002			4
Proceeds from debt issued > 90 days	4,906				494				4,412				—
Payments on debt > 90 days	(5,966)				(1,902)				(4,064)				—
Short-term borrowings – net < 90 days	1,460				(6)				1,466				—
Other – net	(2)				(2)				—				—
Net cash provided by (used for) financing activities	(856)				(2,672)				464				1,352
Effect of exchange rate changes on cash	3				(5)				8				—
Increase (decrease) in cash and short-term investments and restricted cash	1,476				1,207				269				—
Cash and short-term investments and restricted cash at beginning of period	9,366				8,822				544				—
Cash and short-term investments and restricted cash at end of period	$	10,842			$	10,029			$	813			$	—

1	Elimination of equity profit earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.
2	Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.
3	Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory.
4	Elimination of net proceeds and payments to/from ME&T and Financial Products.
5	Elimination of dividend activity between Financial Products and ME&T.

 

Caterpillar Inc.
Supplemental Data for Cash Flow
For the Six Months Ended June 30, 2020
(Unaudited)
(Millions of dollars)
					Supplemental Consolidating Data
	Consolidated				Machinery, Energy & Transportation				Financial Products				Consolidating Adjustments
Cash flow from operating activities:
Profit of consolidated and affiliated companies	$	1,552			$	1,400			$	181			$	(29)		1, 5
Adjustments for non-cash items:
Depreciation and amortization	1,222				805				417				—
Net gain on remeasurement of pension obligations	(132)				(132)				—				—
Provision (benefit) for deferred income taxes	(32)				40				(72)				—
Other	674				338				145				191			2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other	1,176				539				(77)				714			2, 3
Inventories	(145)				(137)				—				(8)			2
Accounts payable	(655)				(664)				(5)				14			2
Accrued expenses	(253)				(237)				(16)				—
Accrued wages, salaries and employee benefits	(648)				(614)				(34)				—
Customer advances	(2)				(2)				—				—
Other assets – net	(7)				30				30				(67)			2
Other liabilities – net	(229)				(391)				84				78			2
Net cash provided by (used for) operating activities	2,521				975				653				893
Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others	(472)				(465)				(7)				—
Expenditures for equipment leased to others	(526)				1				(540)				13			2
Proceeds from disposals of leased assets and property, plant and equipment	382				104				283				(5)			2
Additions to finance receivables	(6,712)				—				(7,352)				640			3
Collections of finance receivables	6,801				—				7,442				(641)			3
Net intercompany purchased receivables	—				—				920				(920)			3
Proceeds from sale of finance receivables	31				—				31				—
Net intercompany borrowings	—				500				2				(502)			4
Investments and acquisitions (net of cash acquired)	(49)				(49)				—				—
Proceeds from sale of businesses and investments (net of cash sold)	13				13				—				—
Proceeds from sale of securities	151				12				139				—
Investments in securities	(369)				(10)				(359)				—
Other – net	7				(15)				22				—
Net cash provided by (used for) investing activities	(743)				91				581				(1,415)
Cash flow from financing activities:
Dividends paid	(1,125)				(1,125)				(20)				20			5
Common stock issued, including treasury shares reissued	(10)				(10)				—				—
Common shares repurchased	(1,130)				(1,130)				—				—
Net intercompany borrowings	—				(2)				(500)				502			4
Proceeds from debt issued > 90 days	6,159				1,991				4,168				—
Payments on debt > 90 days	(4,629)				(12)				(4,617)				—
Short-term borrowings – net < 90 days	(477)				8				(485)				—
Other – net	(1)				(1)				—				—
Net cash provided by (used for) financing activities	(1,213)				(281)				(1,454)				522
Effect of exchange rate changes on cash	(66)				(54)				(12)				—
Increase (decrease) in cash and short-term investments and restricted cash	499				731				(232)				—
Cash and short-term investments and restricted cash at beginning of period	8,292				7,302				990				—
Cash and short-term investments and restricted cash at end of period	$	8,791			$	8,033			$	758			$	—

1	Elimination of equity profit earned from Financial Products' subsidiaries partially owned by ME&T subsidiaries.
2	Elimination of non-cash adjustments and changes in assets and liabilities related to consolidated reporting.
3	Reclassification of Financial Products' cash flow activity from investing to operating for receivables that arose from the sale of inventory.
4	Elimination of net proceeds and payments to/from ME&T and Financial Products.
5	Elimination of dividend activity between Financial Products and ME&T.

 

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SOURCE Caterpillar Inc.

FAQ

What were Caterpillar's sales and revenues in the second quarter of 2021?

Caterpillar's sales and revenues were $12.9 billion in the second quarter of 2021, a 29% increase compared to the same quarter in 2020.

How much profit did Caterpillar report per share for Q2 2021?

Caterpillar reported a profit per share of $2.56 for the second quarter of 2021.

What was the operating profit margin for Caterpillar in Q2 2021?

The operating profit margin for Caterpillar in Q2 2021 was 13.9%.

How much did Caterpillar return to shareholders in Q2 2021?

Caterpillar returned $0.8 billion to shareholders through dividends and share repurchases in the second quarter of 2021.

Which regions showed growth in sales for Caterpillar in Q2 2021?

Sales growth for Caterpillar in Q2 2021 was observed across all regions.