0000018230false00000182302021-01-292021-01-290000018230us-gaap:CommonStockMember2021-01-292021-01-290000018230cat:A8DebenturesDueFebruary152023Member2021-01-292021-01-290000018230cat:A5.3DebenturesDueSeptember152035Member2021-01-292021-01-29

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM

8-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):

January 28, 2022

CATERPILLAR INC.

(Exact name of registrant as specified in its charter)

Delaware

1-768

37-0602744

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S Employer Identification No.)

510 Lake Cook Road,

Suite 100,

Deerfield,

Illinois

60015

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code:

(224)

551-4000

Former name 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 class

Trading Symbol (s)

Name of each exchange which registered

Common Stock ($1.00 par value)

CAT

The New York Stock Exchange

8% Debentures due February 15, 2023

CAT23

The New York Stock Exchange

5.3% Debentures due September 15, 2035

CAT35

The 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.

☐

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Item 2.02. Results of Operations and Financial Condition.

On January 28, 2022, Caterpillar Inc. issued a press release reporting its financial results for the quarter ended December 31, 2021. 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			Caterpillar Inc. press release dated January 28, 2022
						99.2			Retail Statistics
						104			The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

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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.
January 28, 2022			By:			/s/ Suzette M. Long
						Suzette M. Long Chief Legal Officer & General Counsel

Exhibit 99.1

Caterpillar Inc.                                     

4Q 2021 Earnings Release

January 28, 2022

FOR IMMEDIATE RELEASE

Caterpillar Reports Fourth-Quarter and Full-Year 2021 Results

●			Fourth-quarter 2021 sales and revenues up 23%; full-year sales and revenues up 22%
●			Fourth-quarter 2021 profit per share of $3.91; adjusted profit per share of $2.69
●			2021 profit per share of $11.83; adjusted profit per share of $10.81
●			Strong operating cash flow; ended the year with $9.3 billion of enterprise cash
●			Returned $5.0 billion to shareholders through dividends and share repurchases in 2021

						Fourth Quarter									Full Year
($ in billions except profit per share)						2021			2020						2021			2020
Sales and Revenues						$13.8			$11.2						$51.0			$41.7
Profit Per Share						$3.91			$1.42						$11.83			$5.46
Adjusted Profit Per Share						$2.69			$2.12						$10.81			$6.56

DEERFIELD, Ill. – Caterpillar Inc. (NYSE: CAT) today announced fourth-quarter and full-year results for 2021.

Sales and revenues for the fourth quarter of 2021 were $13.8 billion, a 23% increase compared with $11.2 billion in the fourth quarter of 2020. Operating profit margin was 11.7% for the fourth quarter of 2021, compared with 12.3% for the fourth quarter of 2020. Fourth-quarter 2021 profit per share was $3.91, compared with $1.42 profit per share in the fourth quarter of 2020. Adjusted profit per share in the fourth quarter of 2021 was $2.69, compared with fourth-quarter 2020 adjusted profit per share of $2.12. Fourth-quarter 2021 adjusted profit per share also reflected a lower-than-expected effective tax rate.

Full-year sales and revenues in 2021 were $51.0 billion, up 22% compared with $41.7 billion in 2020. The increase reflected higher end-user demand for equipment and services and the impact from changes in dealer inventories. Dealers decreased their inventories $2.9 billion in 2020, while remaining about flat in 2021. Operating profit margin was 13.5% for 2021, compared with 10.9% for 2020. Full-year profit was $11.83 per share in 2021, compared with profit of $5.46 per share in 2020. Adjusted profit per share in 2021 was $10.81, compared with adjusted profit per share of $6.56 in 2020.

“I’m proud of our global team’s continued resilience in what proved to be a challenging and dynamic operating environment. We delivered adjusted operating profit margins and ME&T free cash flows consistent with our long-term targets established during our 2019 Investor Day,” said Chairman and CEO Jim Umpleby. “Amid ongoing supply chain constraints, our team continues to execute our strategy for long-term profitable growth while striving to meet customer demand.”

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In 2021, adjusted profit per share excluded mark-to-market gains for remeasurement of pension and other postemployment benefit (OPEB) plans and restructuring costs. In 2020, adjusted profit per share excluded mark-to-market losses for remeasurement of pension and OPEB plans and restructuring costs. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 14.

For the full year of 2021, enterprise operating cash flow was $7.2 billion. During the year, the company repurchased $2.7 billion of Caterpillar common stock and paid dividends of $2.3 billion. Liquidity remained strong with an enterprise cash balance of $9.3 billion at the end of 2021.

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CONSOLIDATED RESULTS

Consolidated Sales and Revenues

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the fourth quarter of 2020 (at left) and the fourth 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 fourth quarter of 2021 were $13.798 billion, an increase of $2.563 billion, or 23%, compared with $11.235 billion in the fourth quarter of 2020. The increase was mostly due to higher sales volume, driven by higher end-user demand for equipment and services and the impact from changes in dealer inventories, along with favorable price realization. Dealers decreased inventories during the fourth quarter of 2020, compared to remaining about flat during the fourth quarter of 2021.

Sales were higher across the three primary segments.

Sales and Revenues by Segment
(Millions of dollars)			Fourth Quarter 2020						Sales Volume						Price Realization						Currency						Inter-Segment / Other						Fourth Quarter 2021						$ Change						% Change
Construction Industries			$	4,508					$	929					$	299					$	(23)					$	23					$	5,736					$	1,228					27%
Resource Industries			2,180						467						121						2						(8)						2,762						582						27%
Energy & Transportation			4,811						640						88						(7)						196						5,728						917						19%
All Other Segment			137						7						—						(1)						(9)						134						(3)						(2%)
Corporate Items and Eliminations			(1,066)						6						(1)						—						(202)						(1,263)						(197)
Machinery, Energy & Transportation			10,570						2,049						507						(29)						—						13,097						2,527						24%
Financial Products Segment			743						—						—						—						33						776						33						4%
Corporate Items and Eliminations			(78)						—						—						—						3						(75)						3
Financial Products Revenues			665						—						—						—						36						701						36						5%
Consolidated Sales and Revenues			$	11,235					$	2,049					$	507					$	(29)					$	36					$	13,798					$	2,563					23%

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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
Fourth Quarter 2021
Construction Industries			$	2,635					39%						$	563					74%						$	1,246					47%						$	1,245					(12%)						$	5,689					27%						$	47					96%						$	5,736					27%
Resource Industries			857						44%						415						5%						532						29%						839						29%						2,643						29%						119						(6%)						2,762						27%
Energy & Transportation			1,913						12%						398						50%						1,475						9%						965						36%						4,751						18%						977						25%						5,728						19%
All Other Segment			14						180%						1						—%						8						(11%)						15						(17%)						38						19%						96						(9%)						134						(2%)
Corporate Items and Eliminations			(17)												—												—												(7)												(24)												(1,239)												(1,263)
Machinery, Energy & Transportation			5,402						29%						1,377						40%						3,261						24%						3,057						9%						13,097						24%						—						—%						13,097						24%
Financial Products Segment			493						6%						70						9%						101						7%						112						(7%)						776						4%						—						—%						776						4%
Corporate Items and Eliminations			(37)												(15)												(9)												(14)												(75)												—												(75)
Financial Products Revenues			456						8%						55						2%						92						10%						98						(6%)						701						5%						—						—%						701						5%
Consolidated Sales and Revenues			$	5,858					27%						$	1,432					38%						$	3,353					24%						$	3,155					9%						$	13,798					23%						$	—					—%						$	13,798					23%
Fourth Quarter 2020
Construction Industries			$	1,895											$	324											$	848											$	1,417											$	4,484											$	24											$	4,508
Resource Industries			596												394												412												651												2,053												127												2,180
Energy & Transportation			1,705												265												1,353												707												4,030												781												4,811
All Other Segment			5												—												9												18												32												105												137
Corporate Items and Eliminations			(27)												1												(2)												(1)												(29)												(1,037)												(1,066)
Machinery, Energy & Transportation			4,174												984												2,620												2,792												10,570												—												10,570
Financial Products Segment			464												64												94												121												743												—												743
Corporate Items and Eliminations			(41)												(10)												(10)												(17)												(78)												—												(78)
Financial Products Revenues			423												54												84												104												665												—												665
Consolidated Sales and Revenues			$	4,597											$	1,038											$	2,704											$	2,896											$	11,235											$	—											$	11,235

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Consolidated Operating Profit

The chart above graphically illustrates reasons for the change in consolidated operating profit between the fourth quarter of 2020 (at left) and the fourth 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 fourth quarter of 2021 was $1.611 billion, an increase of $231 million, or 17%, compared with $1.380 billion in the fourth quarter of 2020. Higher manufacturing costs and selling, general and administrative (SG&A) and research and development (R&D) expenses were more than offset by higher sales volume, favorable price realization and net restructuring income due to a gain on the sale of a facility.

Unfavorable manufacturing costs primarily reflected higher freight and material costs.

The increase in SG&A/R&D expenses was driven by higher short-term incentive compensation expense, which was reinstated in 2021, higher labor costs due to increased headcount and investments aligned with the company's strategy for profitable growth, including acquisition-related expenses.

Profit (Loss) by Segment
(Millions of dollars)			Fourth Quarter 2021						Fourth Quarter 2020						$ Change						%  Change
Construction Industries			$	788					$	630					$	158					25		%
Resource Industries			305						273						32						12		%
Energy & Transportation			675						687						(12)						(2		%)
All Other Segment			(12)						(3)						(9)						(300		%)
Corporate Items and Eliminations			(281)						(281)						—
Machinery, Energy & Transportation			1,475						1,306						169						13		%
Financial Products Segment			248						195						53						27		%
Corporate Items and Eliminations			(37)						(47)						10
Financial Products			211						148						63						43		%
Consolidating Adjustments			(75)						(74)						(1)
Consolidated Operating Profit			$	1,611					$	1,380					$	231					17		%

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Other Profit/Loss and Tax Items

•Other income (expense) in the fourth quarter of 2021 was income of $1.063 billion, compared with expense of $309 million in the fourth quarter of 2020. The change was primarily driven by mark-to-market gains for remeasurement of pension and OPEB plans in the fourth quarter of 2021, compared with mark-to-market losses in the fourth quarter of 2020 (see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 14).

•The provision for income taxes for the fourth quarter of 2021 reflected an annual effective tax rate of approximately 23%, compared with approximately 28% for the fourth quarter of 2020, excluding the discrete items discussed below. The decrease from 2020 was primarily related to changes in the geographic mix of profits from a tax perspective.

In the fourth quarter of 2021, the company recorded a $118 million tax benefit due to the change from the third-quarter estimated annual tax rate of 25%, compared to a $96 million benefit for the reduction in the annual effective tax rate in the fourth quarter of 2020. In addition, the company recorded a tax charge of $190 million related to $833 million of pension and OPEB mark-to-market gains in the fourth quarter of 2021, compared to a tax benefit of $92 million related to $438 million of mark-to-market losses in the fourth quarter of 2020. Finally, the company recorded a tax benefit of $40 million in the fourth quarter of 2021 primarily related to recognition of U.S. capital losses compared to other discrete tax benefits of $28 million in the fourth quarter of 2020.

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CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
						Fourth Quarter 2020						Sales Volume						Price Realization						Currency						Inter-Segment						Fourth Quarter 2021						$  Change						%  Change
Total Sales						$	4,508					$	929					$	299					$	(23)					$	23					$	5,736					$	1,228					27		%
Sales by Geographic Region
						Fourth Quarter 2021						Fourth Quarter 2020						$ Change						% Change
North America						$	2,635					$	1,895					$	740					39		%
Latin America						563						324						239						74		%
EAME						1,246						848						398						47		%
Asia/Pacific						1,245						1,417						(172)						(12		%)
External Sales						5,689						4,484						1,205						27		%
Inter-segment						47						24						23						96		%
Total Sales						$	5,736					$	4,508					$	1,228					27		%
Segment Profit
						Fourth Quarter 2021						Fourth Quarter 2020						Change						% Change
Segment Profit						$	788					$	630					$	158					25		%
Segment Profit Margin						13.7		%				14.0		%				(0.3		pts)

Construction Industries’ total sales were $5.736 billion in the fourth quarter of 2021, an increase of $1.228 billion, or 27%, compared with $4.508 billion in the fourth quarter of 2020. The increase was due to higher sales volume, driven by the impact from changes in dealer inventories and higher end-user demand, along with favorable price realization. Dealers decreased inventories more during the fourth quarter of 2020 than during the fourth quarter of 2021.

▪In North America, sales increased due to higher sales volume and favorable price realization. Higher sales volume was driven by the impact from changes in dealer inventories as dealers decreased inventories more during the fourth quarter of 2020 than during the fourth quarter of 2021.

▪Sales increased in Latin America primarily due to higher sales volume and favorable price realization. Higher sales volume was driven by higher end-user demand and the impact from changes in dealer inventories. Dealers increased inventories during the fourth quarter of 2021, compared to a decrease during the fourth quarter of 2020.

▪In EAME, sales increased due to higher sales volume from higher end-user demand and the impact of changes in dealer inventories. Dealers decreased inventories more during the fourth quarter of 2020 than during the fourth quarter of 2021.

▪Sales decreased in Asia/Pacific primarily due to lower sales volume, partially offset by favorable price realization. Decreased sales volume reflected lower end-user demand, partially offset by the impact from changes in dealer inventories. Lower sales in China, driven by lower end-user demand, were partially offset by higher sales across most of the rest of the region. Dealers decreased inventories during the fourth quarter of 2020, compared to an increase during the fourth quarter of 2021.

Construction Industries’ profit was $788 million in the fourth quarter of 2021, an increase of $158 million, or 25%, compared with $630 million in the fourth quarter of 2020. Higher manufacturing costs and SG&A/R&D expenses

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were more than offset by higher sales volume and favorable price realization. Unfavorable manufacturing costs primarily reflected higher freight, material and labor costs.

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

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RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
						Fourth Quarter 2020						Sales Volume						Price Realization						Currency						Inter-Segment						Fourth Quarter 2021						$  Change						%  Change
Total Sales						$	2,180					$	467					$	121					$	2					$	(8)					$	2,762					$	582					27		%
Sales by Geographic Region
						Fourth Quarter 2021						Fourth Quarter 2020						$ Change						% Change
North America						$	857					$	596					$	261					44		%
Latin America						415						394						21						5		%
EAME						532						412						120						29		%
Asia/Pacific						839						651						188						29		%
External Sales						2,643						2,053						590						29		%
Inter-segment						119						127						(8)						(6		%)
Total Sales						$	2,762					$	2,180					$	582					27		%
Segment Profit
						Fourth Quarter 2021						Fourth Quarter 2020						Change						% Change
Segment Profit						$	305					$	273					$	32					12		%
Segment Profit Margin						11.0		%				12.5		%				(1.5		pts)

Resource Industries’ total sales were $2.762 billion in the fourth quarter of 2021, an increase of $582 million, or 27%, compared with $2.180 billion in the fourth quarter of 2020. The increase was primarily due to higher sales volume, driven by higher end-user demand for equipment and aftermarket parts, and favorable price realization. End-user demand was higher in mining as well as heavy construction and quarry and aggregates.

Resource Industries’ profit was $305 million in the fourth quarter of 2021, an increase of $32 million, or 12%, compared with $273 million in the fourth quarter of 2020. Increased manufacturing costs and SG&A/R&D expenses were more than offset by higher sales volume and favorable price realization. Unfavorable manufacturing costs primarily reflected higher freight and material costs.

The increase in SG&A/R&D expenses was driven by investments aligned with growth initiatives, primarily labor, and higher short-term incentive compensation expense.

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ENERGY & TRANSPORTATION
(Millions of dollars)
Segment Sales
						Fourth Quarter 2020						Sales Volume						Price Realization						Currency						Inter-Segment						Fourth Quarter 2021						$  Change						%  Change
Total Sales						$	4,811					$	640					$	88					$	(7)					$	196					$	5,728					$	917					19		%
Sales by Application
						Fourth Quarter 2021						Fourth Quarter 2020						$ Change						% Change
Oil and Gas						$	1,320					$	1,079					$	241					22		%
Power Generation						1,267						1,180						87						7		%
Industrial						952						736						216						29		%
Transportation						1,212						1,035						177						17		%
External Sales						4,751						4,030						721						18		%
Inter-segment						977						781						196						25		%
Total Sales						$	5,728					$	4,811					$	917					19		%
Segment Profit
						Fourth Quarter 2021						Fourth Quarter 2020						Change						% Change
Segment Profit						$	675					$	687					$	(12)					(2		%)
Segment Profit Margin						11.8		%				14.3		%				(2.5		pts)

Energy & Transportation’s total sales were $5.728 billion in the fourth quarter of 2021, an increase of $917 million, or 19%, compared with $4.811 billion in the fourth quarter of 2020. Sales increased across all applications and inter-segment sales.

▪Oil and Gas – Sales increased for reciprocating engines aftermarket parts across all regions, turbines and turbine-related services and reciprocating engines used in gas compression.

▪Power Generation – Sales rose due to higher sales volume in reciprocating engines aftermarket parts and small reciprocating engine applications.

▪Industrial – Sales were up due to higher demand across all regions.

▪Transportation – Sales increased due to higher deliveries of locomotives, which were primarily international, and rail services.

Energy & Transportation’s profit was $675 million in the fourth quarter of 2021, a decrease of $12 million, or 2%, compared with $687 million in the fourth quarter of 2020. The decrease was due to unfavorable manufacturing costs and higher SG&A/R&D expenses, mostly offset by higher sales volume and favorable price realization. Unfavorable manufacturing costs reflected higher freight and material costs, as well as increased period manufacturing costs.

Both SG&A/R&D expenses and period manufacturing costs increased primarily due to higher short-term incentive compensation expense and investments aligned with growth initiatives, including acquisition-related expenses.

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FINANCIAL PRODUCTS SEGMENT
(Millions of dollars)
Revenues by Geographic Region
						Fourth Quarter 2021						Fourth Quarter 2020						$ Change						% Change
North America						$	493					$	464					$	29					6		%
Latin America						70						64						6						9		%
EAME						101						94						7						7		%
Asia/Pacific						112						121						(9)						(7		%)
Total Revenues						$	776					$	743					$	33					4		%
Segment Profit
						Fourth Quarter 2021						Fourth Quarter 2020						Change						% Change
Segment Profit						$	248					$	195					$	53					27		%

Financial Products’ segment revenues were $776 million in the fourth quarter of 2021, an increase of $33 million, or 4%, from the fourth quarter of 2020.

Financial Products’ segment profit was $248 million in the fourth quarter of 2021, an increase of $53 million, or 27%, compared with $195 million in the fourth quarter of 2020. The increase was mainly due to a favorable impact from returned or repossessed equipment and lower provision for credit losses at Cat Financial, partially offset by an increase in SG&A expenses primarily due to higher short-term incentive compensation expense.

At the end of 2021, past dues at Cat Financial were 1.95%, compared with 3.49% at the end of 2020. Past dues decreased across all portfolio segments as global markets generally improved. Write-offs, net of recoveries, were $205 million for 2021, compared with $222 million for 2020. As of December 31, 2021, Cat Financial's allowance for credit losses totaled $337 million, or 1.22% of finance receivables, compared with $479 million, or 1.77% of finance receivables at December 31, 2020.

Corporate Items and Eliminations

Expense for corporate items and eliminations was $318 million in the fourth quarter of 2021, about flat to the fourth quarter of 2020.

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Notes

i.Glossary of terms is included on the Caterpillar website at https://investors.caterpillar.com/overview/default.aspx.

ii.End-user demand is demonstrated by the company’s Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Friday, January 28, 2022.

iii.Information on non-GAAP financial measures is included in the appendix on page 14.

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, January 28, 2022, to discuss its 2021 fourth-quarter and full-year 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 2021 sales and revenues of $51.0 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: Jennifer Driscoll, +1 224-551-4382 or [email protected]

Caterpillar media contact: Kate Kenny, +1 309-361-9333 or [email protected]

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Forward-Looking Statements

Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “forecast,” “target,” “guide,” “project,” “intend,” “could,” “should” or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.

Caterpillar’s actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) commodity price changes, material price increases, fluctuations in demand for our products or significant shortages of material; (iii) government monetary or fiscal policies; (iv) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (v) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; (vi) our ability to develop, produce and market quality products that meet our customers’ needs; (vii) the impact of the highly competitive environment in which we operate on our sales and pricing; (viii) information technology security threats and computer crime; (ix) inventory management decisions and sourcing practices of our dealers and our OEM customers; (x) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (xv) our Financial Products segment’s risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an increase in delinquencies, repossessions or net losses of Cat Financial’s customers; (xviii) currency fluctuations; (xix) our or Cat Financial’s compliance with financial and other restrictive covenants in debt agreements; (xx) increased pension plan funding obligations; (xxi) alleged or actual violations of trade or anti-corruption laws and regulations; (xxii) additional tax expense or exposure, including the impact of U.S. tax reform; (xxiii) significant legal proceedings, claims, lawsuits or government investigations; (xxiv) new regulations or changes in financial services regulations; (xxv) compliance with environmental laws and regulations; (xxvi) the duration and geographic spread of, business disruptions caused by, and the overall global economic impact of, the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar’s Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.

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APPENDIX

NON-GAAP FINANCIAL MEASURES

The following definitions are provided for the non-GAAP financial measures. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. Management does not intend these items to be considered in isolation or as a substitute for the related GAAP measures.

The company believes it is important to separately quantify the profit impact of two significant items in order for the company’s results to be meaningful to readers. These items consist of (i) pension and OPEB mark-to-market gains/losses resulting from plan remeasurements and (ii) restructuring income/costs, which were incurred to generate longer-term benefits. The company does not consider these items indicative of earnings from ongoing business activities and believes the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company’s period-over-period results.

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 December 31, 2021 - U.S. GAAP						$	1,611					11.7		%				$	2,562					$	429					16.7		%				$	2,120					$	3.91
Pension/OPEB mark-to-market (gains) losses						—						—		%				(833)						(190)						22.8		%				(643)						$	(1.19)
Restructuring (income) costs						(34)						(0.2)		%				(34)						(15)						44.1		%				(19)						$	(0.03)
Three Months Ended December 31, 2021 - Adjusted						$	1,577					11.4		%				$	1,695					$	224					13.2		%				$	1,458					$	2.69
Three Months Ended December 31, 2020 - U.S. GAAP						$	1,380					12.3		%				$	941					$	167					17.7		%				$	780					$	1.42
Pension/OPEB mark-to-market (gains) losses						—						—		%				438						92						21.0		%				346						$	0.63
Restructuring (income) costs						58						0.5		%				58						18						31.0		%				40						$	0.07
Three Months Ended December 31, 2020 - Adjusted						$	1,438					12.8		%				$	1,437					$	277					19.3		%				$	1,166					$	2.12
Twelve Months Ended December 31, 2021 - U.S. GAAP						$	6,878					13.5		%				$	8,204					$	1,742					21.2		%				$	6,489					$	11.83
Pension/OPEB mark-to-market (gains) losses						—						—		%				(833)						(190)						22.8		%				(643)						$	(1.17)
Restructuring (income) costs						90						0.2		%				90						4						4.4		%				86						$	0.15
Twelve Months Ended December 31, 2021 - Adjusted						$	6,968					13.7		%				$	7,461					$	1,556					20.9		%				$	5,932					$	10.81
Twelve Months Ended December 31, 2020 - U.S. GAAP						$	4,553					10.9		%				$	3,995					$	1,006					25.2		%				$	2,998					$	5.46
Pension/OPEB mark-to-market (gains) losses						—						—		%				383						82						21.4		%				301						$	0.55
Restructuring (income) costs						354						0.8		%				354						53						15.0		%				301						$	0.55
Twelve Months Ended December 31, 2020 - Adjusted						$	4,907					11.8		%				$	4,732					$	1,141					24.1		%				$	3,600					$	6.56

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.

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15

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 16 to 26 reconcile ME&T and Financial Products to Caterpillar Inc. consolidated financial information.

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16

Caterpillar Inc.

Condensed Consolidated Statement of Results of Operations

(Unaudited)

(Dollars in millions except per share data)

			Three Months Ended December 31,												Twelve Months Ended December 31,
			2021						2020						2021						2020
Sales and revenues:
Sales of Machinery, Energy & Transportation			$	13,097					$	10,570					$	48,188					$	39,022
Revenues of Financial Products			701						665						2,783						2,726
Total sales and revenues			13,798						11,235						50,971						41,748
Operating costs:
Cost of goods sold			10,003						7,784						35,513						29,082
Selling, general and administrative expenses			1,422						1,216						5,365						4,642
Research and development expenses			439						374						1,686						1,415
Interest expense of Financial Products			103						128						455						589
Other operating (income) expenses			220						353						1,074						1,467
Total operating costs			12,187						9,855						44,093						37,195
Operating profit			1,611						1,380						6,878						4,553
Interest expense excluding Financial Products			112						130						488						514
Other income (expense)			1,063						(309)						1,814						(44)
Consolidated profit before taxes			2,562						941						8,204						3,995
Provision (benefit) for income taxes			429						167						1,742						1,006
Profit of consolidated companies			2,133						774						6,462						2,989
Equity in profit (loss) of unconsolidated affiliated companies			(13)						6						31						14
Profit of consolidated and affiliated companies			2,120						780						6,493						3,003
Less: Profit (loss) attributable to noncontrolling interests			—						—						4						5
Profit 1			$	2,120					$	780					$	6,489					$	2,998
Profit per common share			$	3.94					$	1.43					$	11.93					$	5.51
Profit per common share — diluted 2			$	3.91					$	1.42					$	11.83					$	5.46
Weighted-average common shares outstanding (millions)
– Basic			538.7						544.5						544.0						544.1
– Diluted 2			542.6						549.5						548.5						548.6

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

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17

Caterpillar Inc.

Condensed Consolidated Statement of Financial Position

(Unaudited)

(Millions of dollars)

			December 31, 2021						December 31, 2020
Assets
Current assets:
Cash and cash equivalents			$	9,254					$	9,352
Receivables – trade and other			8,477						7,317
Receivables – finance			8,898						9,463
Prepaid expenses and other current assets			2,788						1,930
Inventories			14,038						11,402
Total current assets			43,455						39,464
Property, plant and equipment – net			12,090						12,401
Long-term receivables – trade and other			1,204						1,185
Long-term receivables – finance			12,707						12,222
Noncurrent deferred and refundable income taxes			1,840						1,523
Intangible assets			1,042						1,308
Goodwill			6,324						6,394
Other assets			4,131						3,827
Total assets			$	82,793					$	78,324
Liabilities
Current liabilities:
Short-term borrowings:
-- Machinery, Energy & Transportation			$	9					$	10
-- Financial Products			5,395						2,005
Accounts payable			8,154						6,128
Accrued expenses			3,757						3,642
Accrued wages, salaries and employee benefits			2,242						1,096
Customer advances			1,087						1,108
Dividends payable			595						562
Other current liabilities			2,256						2,017
Long-term debt due within one year:
-- Machinery, Energy & Transportation			45						1,420
-- Financial Products			6,307						7,729
Total current liabilities			29,847						25,717
Long-term debt due after one year:
-- Machinery, Energy & Transportation			9,746						9,749
-- Financial Products			16,287						16,250
Liability for postemployment benefits			5,592						6,872
Other liabilities			4,805						4,358
Total liabilities			66,277						62,946
Shareholders’ equity
Common stock			6,398						6,230
Treasury stock			(27,643)						(25,178)
Profit employed in the business			39,282						35,167
Accumulated other comprehensive income (loss)			(1,553)						(888)
Noncontrolling interests			32						47
Total shareholders’ equity			16,516						15,378
Total liabilities and shareholders’ equity			$	82,793					$	78,324

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18

Caterpillar Inc.

Condensed Consolidated Statement of Cash Flow

(Unaudited)

(Millions of dollars)

			Twelve Months Ended December 31,
			2021						2020
Cash flow from operating activities:
Profit of consolidated and affiliated companies			$	6,493					$	3,003
Adjustments for non-cash items:
Depreciation and amortization			2,352						2,432
Actuarial (gain) loss on pension and postretirement benefits			(833)						383
Provision (benefit) for deferred income taxes			(383)						(74)
Other			216						1,000
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other			(1,259)						1,442
Inventories			(2,586)						(34)
Accounts payable			2,041						98
Accrued expenses			196						(366)
Accrued wages, salaries and employee benefits			1,107						(544)
Customer advances			34						(126)
Other assets – net			(97)						(201)
Other liabilities – net			(83)						(686)
Net cash provided by (used for) operating activities			7,198						6,327
Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others			(1,093)						(978)
Expenditures for equipment leased to others			(1,379)						(1,137)
Proceeds from disposals of leased assets and property, plant and equipment			1,265						772
Additions to finance receivables			(13,002)						(12,385)
Collections of finance receivables			12,430						12,646
Proceeds from sale of finance receivables			51						42
Investments and acquisitions (net of cash acquired)			(490)						(111)
Proceeds from sale of businesses and investments (net of cash sold)			36						25
Proceeds from sale of securities			785						345
Investments in securities			(1,766)						(638)
Other – net			79						(66)
Net cash provided by (used for) investing activities			(3,084)						(1,485)
Cash flow from financing activities:
Dividends paid			(2,332)						(2,243)
Common stock issued, including treasury shares reissued			135						229
Common shares repurchased			(2,668)						(1,130)
Proceeds from debt issued (original maturities greater than three months)			6,989						10,431
Payments on debt (original maturities greater than three months)			(9,796)						(8,237)
Short-term borrowings – net (original maturities three months or less)			3,488						(2,804)
Other – net			(4)						(1)
Net cash provided by (used for) financing activities			(4,188)						(3,755)
Effect of exchange rate changes on cash			(29)						(13)
Increase (decrease) in cash, cash equivalents and restricted cash			(103)						1,074
Cash, cash equivalents and restricted cash at beginning of period			9,366						8,292
Cash, cash equivalents and restricted cash at end of period			$	9,263					$	9,366

Cash equivalents primarily represent short-term, highly liquid investments with original maturities of generally three months or less.

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19

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended December 31, 2021

(Unaudited)

(Millions of dollars)

									Supplemental Consolidating Data
			Consolidated						Machinery, Energy & Transportation						Financial Products						Consolidating Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation			$	13,097					$	13,097					$	—					$	—
Revenues of Financial Products			701						—						801						(100)			1
Total sales and revenues			13,798						13,097						801						(100)
Operating costs:
Cost of goods sold			10,003						10,006						—						(3)			2
Selling, general and administrative expenses			1,422						1,253						171						(2)			2
Research and development expenses			439						439						—						—
Interest expense of Financial Products			103						—						103						—
Other operating (income) expenses			220						(76)						316						(20)			2
Total operating costs			12,187						11,622						590						(25)
Operating profit			1,611						1,475						211						(75)
Interest expense excluding Financial Products			112						112						—						—
Other income (expense)			1,063						1,457						31						(425)			3
Consolidated profit before taxes			2,562						2,820						242						(500)
Provision (benefit) for income taxes			429						359						70						—
Profit of consolidated companies			2,133						2,461						172						(500)
Equity in profit (loss) of unconsolidated affiliated companies			(13)						(10)						—						(3)			4
Profit of consolidated and affiliated companies			2,120						2,451						172						(503)
Less: Profit (loss) attributable to noncontrolling interests			—						—						3						(3)			5
Profit 6			$	2,120					$	2,451					$	169					$	(500)

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.

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20

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended December 31, 2020

(Unaudited)

(Millions of dollars)

									Supplemental Consolidating Data
			Consolidated						Machinery, Energy & Transportation						Financial Products						Consolidating Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation			$	10,570					$	10,570					$	—					$	—
Revenues of Financial Products			665						—						760						(95)			1
Total sales and revenues			11,235						10,570						760						(95)
Operating costs:
Cost of goods sold			7,784						7,786						—						(2)			2
Selling, general and administrative expenses			1,216						1,048						174						(6)			2
Research and development expenses			374						374						—						—
Interest expense of Financial Products			128						—						129						(1)			3
Other operating (income) expenses			353						56						309						(12)			2
Total operating costs			9,855						9,264						612						(21)
Operating profit			1,380						1,306						148						(74)
Interest expense excluding Financial Products			130						130						—						—
Other income (expense)			(309)						(122)						39						(226)			4
Consolidated profit before taxes			941						1,054						187						(300)
Provision (benefit) for income taxes			167						133						34						—
Profit of consolidated companies			774						921						153						(300)
Equity in profit (loss) of unconsolidated affiliated companies			6						11						—						(5)			5
Profit of consolidated and affiliated companies			780						932						153						(305)
Less: Profit (loss) attributable to noncontrolling interests			—						3						2						(5)			6
Profit 7			$	780					$	929					$	151					$	(300)

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.

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21

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Twelve Months Ended December 31, 2021

(Unaudited)

(Millions of dollars)

									Supplemental Consolidating Data
			Consolidated						Machinery, Energy & Transportation						Financial Products						Consolidating Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation			$	48,188					$	48,188					$	—					$	—
Revenues of Financial Products			2,783						—						3,172						(389)			1
Total sales and revenues			50,971						48,188						3,172						(389)
Operating costs:
Cost of goods sold			35,513						35,521						—						(8)			2
Selling, general and administrative expenses			5,365						4,724						654						(13)			2
Research and development expenses			1,686						1,686						—						—
Interest expense of Financial Products			455						—						455						—
Other operating (income) expenses			1,074						(106)						1,247						(67)			2
Total operating costs			44,093						41,825						2,356						(88)
Operating profit			6,878						6,363						816						(301)
Interest expense excluding Financial Products			488						488						—						—
Other income (expense)			1,814						2,276						87						(549)			3
Consolidated profit before taxes			8,204						8,151						903						(850)
Provision (benefit) for income taxes			1,742						1,517						225						—
Profit of consolidated companies			6,462						6,634						678						(850)
Equity in profit (loss) of unconsolidated affiliated companies			31						42						—						(11)			4
Profit of consolidated and affiliated companies			6,493						6,676						678						(861)
Less: Profit (loss) attributable to noncontrolling interests			4						3						12						(11)			5
Profit 6			$	6,489					$	6,673					$	666					$	(850)

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.

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22

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Twelve Months Ended December 31, 2020

(Unaudited)

(Millions of dollars)

									Supplemental Consolidating Data
			Consolidated						Machinery, Energy & Transportation						Financial Products						Consolidating Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation			$	39,022					$	39,022					$	—					$	—
Revenues of Financial Products			2,726						—						3,110						(384)			1
Total sales and revenues			41,748						39,022						3,110						(384)
Operating costs:
Cost of goods sold			29,082						29,088						—						(6)			2
Selling, general and administrative expenses			4,642						3,915						746						(19)			2
Research and development expenses			1,415						1,415						—						—
Interest expense of Financial Products			589						—						591						(2)			3
Other operating (income) expenses			1,467						283						1,236						(52)			2
Total operating costs			37,195						34,701						2,573						(79)
Operating profit			4,553						4,321						537						(305)
Interest expense excluding Financial Products			514						513						—						1			3
Other income (expense)			(44)						(62)						32						(14)			4
Consolidated profit before taxes			3,995						3,746						569						(320)
Provision (benefit) for income taxes			1,006						853						153						—
Profit of consolidated companies			2,989						2,893						416						(320)
Equity in profit (loss) of unconsolidated affiliated companies			14						29						—						(15)			5
Profit of consolidated and affiliated companies			3,003						2,922						416						(335)
Less: Profit (loss) attributable to noncontrolling interests			5						5						15						(15)			6
Profit 7			$	2,998					$	2,917					$	401					$	(320)

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.

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23

Caterpillar Inc.

Supplemental Data for Financial Position

At December 31, 2021

(Unaudited)

(Millions of dollars)

									Supplemental Consolidating Data
			Consolidated						Machinery, Energy & Transportation						Financial Products						Consolidating Adjustments
Assets
Current assets:
Cash and cash equivalents			$	9,254					$	8,428					$	826					$	—
Receivables – trade and other			8,477						3,279						435						4,763			1,2
Receivables – finance			8,898						—						13,828						(4,930)			2
Prepaid expenses and other current assets			2,788						2,567						358						(137)			3
Inventories			14,038						14,038						—						—
Total current assets			43,455						28,312						15,447						(304)
Property, plant and equipment – net			12,090						8,172						3,918						—
Long-term receivables – trade and other			1,204						375						204						625			1,2
Long-term receivables – finance			12,707						—						13,358						(651)			2
Noncurrent deferred and refundable income taxes			1,840						2,396						105						(661)			4
Intangible assets			1,042						1,042						—						—
Goodwill			6,324						6,324						—						—
Other assets			4,131						3,388						1,952						(1,209)			5
Total assets			$	82,793					$	50,009					$	34,984					$	(2,200)
Liabilities
Current liabilities:
Short-term borrowings			$	5,404					$	9					$	5,395					$	—
Accounts payable			8,154						8,079						242						(167)			6
Accrued expenses			3,757						3,385						372						—
Accrued wages, salaries and employee benefits			2,242						2,186						56						—
Customer advances			1,087						1,086						1						—
Dividends payable			595						595						—						—
Other current liabilities			2,256						1,773						642						(159)			4,7
Long-term debt due within one year			6,352						45						6,307						—
Total current liabilities			29,847						17,158						13,015						(326)
Long-term debt due after one year			26,033						9,772						16,287						(26)			8
Liability for postemployment benefits			5,592						5,592						—						—
Other liabilities			4,805						4,106						1,425						(726)			4
Total liabilities			66,277						36,628						30,727						(1,078)
Shareholders’ equity
Common stock			6,398						6,398						919						(919)			9
Treasury stock			(27,643)						(27,643)						—						—
Profit employed in the business			39,282						35,390						3,881						11			9
Accumulated other comprehensive income (loss)			(1,553)						(799)						(754)						—
Noncontrolling interests			32						35						211						(214)			9
Total shareholders’ equity			16,516						13,381						4,257						(1,122)
Total liabilities and shareholders’ equity			$	82,793					$	50,009					$	34,984					$	(2,200)

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.

(more)

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24

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 cash equivalents			$	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.

(more)

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25

Caterpillar Inc.

Supplemental Data for Cash Flow

For the Twelve Months Ended December 31, 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			$	6,493					$	6,676					$	678					$	(861)		1,5
Adjustments for non-cash items:
Depreciation and amortization			2,352						1,550						802						—
Actuarial (gain) loss on pension and postretirement benefits			(833)						(833)						—						—
Provision (benefit) for deferred income taxes			(383)						(329)						(54)						—
Other			216						131						(209)						294			2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other			(1,259)						(463)						47						(843)			2,3
Inventories			(2,586)						(2,581)						—						(5)			2
Accounts payable			2,041						2,015						49						(23)			2
Accrued expenses			196						288						(92)						—
Accrued wages, salaries and employee benefits			1,107						1,066						41						—
Customer advances			34						33						1						—
Other assets – net			(97)						(200)						25						78			2
Other liabilities – net			(83)						(176)						132						(39)			2
Net cash provided by (used for) operating activities			7,198						7,177						1,420						(1,399)
Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others			(1,093)						(1,088)						(16)						11			2
Expenditures for equipment leased to others			(1,379)						(41)						(1,347)						9			2
Proceeds from disposals of leased assets and property, plant and equipment			1,265						186						1,095						(16)			2
Additions to finance receivables			(13,002)						—						(13,845)						843			3
Collections of finance receivables			12,430						—						13,337						(907)			3
Net intercompany purchased receivables			—						—						(609)						609			3
Proceeds from sale of finance receivables			51						—						51						—
Net intercompany borrowings			—						1,000						5						(1,005)			4
Investments and acquisitions (net of cash acquired)			(490)						(490)						—						—
Proceeds from sale of businesses and investments (net of cash sold)			36						36						—						—
Proceeds from sale of securities			785						274						511						—
Investments in securities			(1,766)						(1,189)						(577)						—
Other – net			79						81						(2)						—
Net cash provided by (used for) investing activities			(3,084)						(1,231)						(1,397)						(456)
Cash flow from financing activities:
Dividends paid			(2,332)						(2,332)						(850)						850			5
Common stock issued, including treasury shares reissued			135						135						—						—
Common shares repurchased			(2,668)						(2,668)						—						—
Net intercompany borrowings			—						(5)						(1,000)						1,005			4
Proceeds from debt issued > 90 days			6,989						494						6,495						—
Payments on debt > 90 days			(9,796)						(1,919)						(7,877)						—
Short-term borrowings – net < 90 days			3,488						(1)						3,489						—
Other – net			(4)						(4)						—						—
Net cash provided by (used for) financing activities			(4,188)						(6,300)						257						1,855
Effect of exchange rate changes on cash			(29)						(35)						6						—
Increase (decrease) in cash, cash equivalents and restricted cash			(103)						(389)						286						—
Cash, cash equivalents and restricted cash at beginning of period			9,366						8,822						544						—
Cash, cash equivalents and restricted cash at end of period			$	9,263					$	8,433					$	830					$	—

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.

(more)

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26

Caterpillar Inc.

Supplemental Data for Cash Flow

For the Twelve Months Ended December 31, 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			$	3,003					$	2,922					$	416					$	(335)		1,5
Adjustments for non-cash items:
Depreciation and amortization			2,432						1,630						802						—
Actuarial (gain) loss on pension and postretirement benefits			383						384						(1)						—
Provision (benefit) for deferred income taxes			(74)						(85)						11						—
Other			1,000						613						98						289			2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other			1,442						395						50						997			2,3
Inventories			(34)						(29)						—						(5)			2
Accounts payable			98						51						18						29			2
Accrued expenses			(366)						(364)						(2)						—
Accrued wages, salaries and employee benefits			(544)						(510)						(34)						—
Customer advances			(126)						(126)						—						—
Other assets – net			(201)						(133)						(71)						3			2
Other liabilities – net			(686)						(694)						(22)						30			2
Net cash provided by (used for) operating activities			6,327						4,054						1,265						1,008
Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others			(978)						(976)						(14)						12			2
Expenditures for equipment leased to others			(1,137)						(18)						(1,139)						20			2
Proceeds from disposals of leased assets and property, plant and equipment			772						147						651						(26)			2
Additions to finance receivables			(12,385)						—						(13,525)						1,140			3
Collections of finance receivables			12,646						—						14,077						(1,431)			3
Net intercompany purchased receivables			—						—						1,043						(1,043)			3
Proceeds from sale of finance receivables			42						—						42						—
Net intercompany borrowings			—						(401)						7						394			4
Investments and acquisitions (net of cash acquired)			(111)						(111)						—						—
Proceeds from sale of businesses and investments (net of cash sold)			25						25						—						—
Proceeds from sale of securities			345						24						321						—
Investments in securities			(638)						(21)						(617)						—
Other – net			(66)						(11)						(55)						—
Net cash provided by (used for) investing activities			(1,485)						(1,342)						791						(934)
Cash flow from financing activities:
Dividends paid			(2,243)						(2,243)						(320)						320			5
Common stock issued, including treasury shares reissued			229						229						—						—
Common shares repurchased			(1,130)						(1,130)						—						—
Net intercompany borrowings			—						(7)						401						(394)			4
Proceeds from debt issued > 90 days			10,431						1,991						8,440						—
Payments on debt > 90 days			(8,237)						(26)						(8,211)						—
Short-term borrowings – net < 90 days			(2,804)						5						(2,809)						—
Other – net			(1)						(1)						—						—
Net cash provided by (used for) financing activities			(3,755)						(1,182)						(2,499)						(74)
Effect of exchange rate changes on cash			(13)						(10)						(3)						—
Increase (decrease) in cash, cash equivalents and restricted cash			1,074						1,520						(446)						—
Cash, cash equivalents and restricted cash at beginning of period			8,292						7,302						990						—
Cash, cash equivalents and restricted cash at end of period			$	9,366					$	8,822					$	544					$	—

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.

#

EXHIBIT 99.2

Caterpillar Inc. (“Caterpillar”, “we” or “our”) 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”). Caterpillar sells the majority of its machinery and power systems to independently owned and operated dealers and OEMs to meet the demands of their customers, the end users. Caterpillar believes that this supplemental information may help readers better understand Caterpillar’s business and the industries it serves, particularly in light of the time delay between Caterpillar’s sales to dealers and dealers’ sales to end users.

In this report, we are providing information by geographic region for retail sales of machines in each of our Resource Industries and Construction Industries reportable segments, as well as information regarding retail sales of our machines globally. For our Energy & Transportation reportable segment, we are providing retail sales information by major end use.

The information presented in this report is primarily based on unaudited reports that are voluntarily provided to Caterpillar by its independent dealers and which are not subject to Caterpillar’s internal controls over financial reporting. Accordingly, the data collected from such third parties may not be accurate and/or complete. As such, the information presented in this report is intended solely to convey an approximate indication of the trends, direction and magnitude of retail sales and is not intended to be an estimate, approximation or prediction of, or substitute for, Caterpillar’s audited financial statements filed with the U.S. Securities and Exchange Commission. This information is furnished under this report with the U.S. Securities and Exchange Commission. Caterpillar does not undertake to update or adjust prior period information.

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Caterpillar Inc. Quarterly Retail Sales Statistics

Machines and E&T Combined

4th Quarter 2021

3rd Quarter 2021

2nd Quarter 2021

1st Quarter 2021

World

UP 7%

UP 14%

UP 15%

UP 8%

Machines

4th Quarter 2021

3rd Quarter 2021

2nd Quarter 2021

1st Quarter 2021

Asia/Pacific

DOWN 8%

DOWN 4%

UP 1%

UP 27%

EAME

UP 24%

UP 22%

UP 16%

UP 5%

Latin America

UP 15%

UP 57%

UP 55%

UP 54%

North America

UP 1%

UP 19%

UP 32%

DOWN 1%

World

UP 5%

UP 17%

UP 20%

UP 13%

Resource Industries (RI)

4th Quarter 2021

3rd Quarter 2021

2nd Quarter 2021

1st Quarter 2021

Asia/Pacific

UP 47%

UP 18%

UP 31%

UP 1%

EAME

UP 13%

UP 20%

DOWN 9%

DOWN 9%

Latin America

DOWN 20%

UP 130%

UP 23%

UP 85%

North America

DOWN 7%

UP 30%

UP 44%

DOWN 21%

World

UP 10%

UP 33%

UP 21%

UNCHANGED

Construction Industries (CI)

4th Quarter 2021

3rd Quarter 2021

2nd Quarter 2021

1st Quarter 2021

Asia/Pacific

DOWN 23%

DOWN 10%

DOWN 7%

UP 36%

EAME

UP 29%

UP 23%

UP 27%

UP 11%

Latin America

UP 40%

UP 31%

UP 76%

UP 38%

North America

UP 3%

UP 17%

UP 30%

UP 5%

World

UP 4%

UP 12%

UP 20%

UP 17%

Reported in dollars and based on unit sales as reported primarily by dealers.

Energy & Transportation (E&T) Retail Sales by industry for the quarter ended as indicated compared with the same period of the prior year:

Energy & Transportation (E&T)

4th Quarter 2021

3rd Quarter 2021

2nd Quarter 2021

1st Quarter 2021

Power Gen

UP 3%

DOWN 8%

DOWN 6%

UP 7%

Industrial

UP 30%

UP 36%

UP 44%

DOWN 4%

Transportation

UP 42%

DOWN 12%

UP 5%

DOWN 40%

Oil & Gas

UP 9%

UP 21%

DOWN 6%

DOWN 9%

Total

UP 12%

UP 8%

UP 1%

DOWN 5%

Reported in dollars based on reporting from dealers and direct sales.

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Glossary of Terms

Construction Industries: Our Construction Industries segment is primarily responsible for supporting customers using machinery in infrastructure, forestry and building construction. The majority of machine sales in this segment are made in the heavy and general construction, rental, quarry and aggregates markets and mining. The Construction Industries product portfolio primarily includes the following machines:

· asphalt pavers			· forestry excavators			· small and medium
· backhoe loaders			· motorgraders			track-type tractors
· compactors			· pipelayers			· track-type loaders
· cold planers			· road reclaimers			· utility vehicles
· compact track and			· site prep tractors			· wheel excavators
multi-terrain loaders			· skid steer loaders			· compact, small and medium
· mini, small, medium			· telehandlers			wheel loaders
and large excavators

Effective September 2019, Caterpillar has divested its Forestry product segment. Those products have been removed from the Construction Industries product portfolio where any remaining product Dealer Inventory will be reported in Machines as they are depleted.

EAME: Europe, Africa, Commonwealth of Independent States and Middle East.

Energy & Transportation: Our Energy & Transportation segment is primarily responsible for supporting customers using reciprocating engines, generator sets, turbines, diesel-electric locomotives, integrated systems and solutions, and certain related parts across industries serving oil and gas, power generation, industrial and marine applications as well as rail-related businesses.

Resource Industries: Our Resource Industries segment is primarily responsible for supporting customers using machinery in mining, heavy construction, and quarry and aggregates. The Resource Industries product portfolio primarily includes the following machines:

· electric rope shovels			· longwall miners			· landfill compactors
· draglines			· large wheel loaders			· soil compactors
· hydraulic shovels			· off-highway trucks			· machinery components
· rotary drills			· articulated trucks			· autonomous ready vehicles and
· hard rock vehicles			· wheel tractor scrapers			solutions
· large track-type tractors			· wheel dozers
· large mining trucks

For purposes of this report, retail sales of longwall miners are not included in the information presented above for Resource Industries or Machines or Machines and E&T Combined figures.

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FORWARD-LOOKING STATEMENTS

Certain statements in this report 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.