0000018230false00000182302022-04-282022-04-280000018230us-gaap:CommonStockMember2022-04-282022-04-280000018230cat:A8DebenturesDueFebruary152023Member2022-04-282022-04-280000018230cat:A5.3DebenturesDueSeptember152035Member2022-04-282022-04-28

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):

April 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 April 28, 2022, Caterpillar Inc. issued a press release reporting its financial results for the quarter ended March 31, 2022. 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 April 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.
April 28, 2022			By:			/s/ Suzette M. Long
						Suzette M. Long Chief Legal Officer and General Counsel

Exhibit 99.1

Caterpillar Inc.                                     

1Q 2022 Earnings Release

April 28, 2022

FOR IMMEDIATE RELEASE

Caterpillar Reports First-Quarter 2022 Results

						First Quarter
($ in billions except profit per share)						2022			2021
Sales and Revenues						$13.6			$11.9
Profit Per Share						$2.86			$2.77
Adjusted Profit Per Share						$2.88			$2.87

●			First-quarter 2022 sales and revenues increased 14% to $13.6 billion
●			First-quarter 2022 profit per share of $2.86; adjusted profit per share of $2.88
●			Returned $1.4 billion to shareholders through share repurchases and dividends in the quarter

DEERFIELD, Ill. – Caterpillar Inc. (NYSE: CAT) announced first-quarter 2022 sales and revenues of $13.6 billion, a 14% increase compared with $11.9 billion in the first quarter of 2021. 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, as well as favorable price realization. Dealers increased inventories more during the first quarter of 2022 than during the first quarter of 2021.

Operating profit margin was 13.7% for the first quarter of 2022, compared with 15.3% for the first quarter of 2021. First-quarter 2022 profit per share was $2.86, compared with first-quarter 2021 profit per share of $2.77. Adjusted profit per share in the first quarter of 2022 was $2.88, compared with first-quarter 2021 adjusted profit per share of $2.87. Adjusted profit per share for both quarters excluded restructuring costs. Please see a reconciliation of GAAP to non-GAAP financial measures in the appendix on page 13.

For the three months ended March 31, 2022, enterprise operating cash flow was $0.3 billion and the company ended the first quarter with $6.5 billion of enterprise cash. The company paid about $1.3 billion of short-term incentive compensation in the quarter, which was reinstated in 2021. In the quarter, the company repurchased $0.8 billion of Caterpillar common stock and paid dividends of $0.6 billion.

“I’m proud of our global team’s performance as they achieved double-digit sales growth despite ongoing supply chain challenges. We remain focused on supporting our customers and executing our strategy for long-term profitable growth,” said Chairman and CEO Jim Umpleby. “Our strong balance sheet allowed us to repurchase shares and pay dividends totaling $1.4 billion in the quarter.”

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2

CONSOLIDATED RESULTS

Consolidated Sales and Revenues

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the first quarter of 2021 (at left) and the first quarter of 2022 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company’s Board of Directors and employees.

Total sales and revenues for the first quarter of 2022 were $13.589 billion, an increase of $1.702 billion, or 14%, compared with $11.887 billion in the first quarter of 2021. The increase was due to higher sales volume and favorable price realization, partially offset by unfavorable currency impacts primarily related to the euro, Australian dollar and Japanese yen. The increase in sales volume was driven by higher end-user demand for equipment and services and the impact from changes in dealer inventories. Dealers increased inventories by $1.3 billion during the first quarter of 2022, compared with an increase of $700 million during the first quarter of 2021.

Sales were higher across the three primary segments.

Sales and Revenues by Segment
(Millions of dollars)			First Quarter 2021						Sales Volume						Price Realization						Currency						Inter-Segment / Other						First Quarter 2022						$ Change						% Change
Construction Industries			$	5,459					$	325					$	421					$	(101)					$	11					$	6,115					$	656					12%
Resource Industries			2,178						527						169						(34)						(10)						2,830						652						30%
Energy & Transportation			4,507						333						115						(74)						157						5,038						531						12%
All Other Segment			130						2						—						(1)						(13)						118						(12)						(9%)
Corporate Items and Eliminations			(1,083)						15						(1)						(1)						(145)						(1,215)						(132)
Machinery, Energy & Transportation			11,191						1,202						704						(211)						—						12,886						1,695						15%
Financial Products Segment			761						—						—						—						22						783						22						3%
Corporate Items and Eliminations			(65)						—						—						—						(15)						(80)						(15)
Financial Products Revenues			696						—						—						—						7						703						7						1%
Consolidated Sales and Revenues			$	11,887					$	1,202					$	704					$	(211)					$	7					$	13,589					$	1,702					14%

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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
First Quarter 2022
Construction Industries			$	2,720					28%						$	627					60%						$	1,277					18%						$	1,462					(21%)						$	6,086					12%						$	29					61%						$	6,115					12%
Resource Industries			1,018						55%						399						(1%)						594						25%						748						33%						2,759						32%						71						(12%)						2,830						30%
Energy & Transportation			1,938						9%						310						21%						1,184						8%						600						14%						4,032						10%						1,006						18%						5,038						12%
All Other Segment			18						38%						—						—%						5						67%						16						(27%)						39						3%						79						(14%)						118						(9%)
Corporate Items and Eliminations			(24)												1												(2)												(5)												(30)												(1,185)												(1,215)
Machinery, Energy & Transportation			5,670						25%						1,337						27%						3,058						15%						2,821						(4%)						12,886						15%						—						—%						12,886						15%
Financial Products Segment			503						6%						73						18%						96						(4%)						111						(10%)						783						3%						—						—%						783						3%
Corporate Items and Eliminations			(36)												(17)												(9)												(18)												(80)												—												(80)
Financial Products Revenues			467						3%						56						10%						87						(5%)						93						(8%)						703						1%						—						—%						703						1%
Consolidated Sales and Revenues			$	6,137					23%						$	1,393					26%						$	3,145					15%						$	2,914					(4%)						$	13,589					14%						$	—					—%						$	13,589					14%
First Quarter 2021
Construction Industries			$	2,126											$	392											$	1,081											$	1,842											$	5,441											$	18											$	5,459
Resource Industries			657												405												474												561												2,097												81												2,178
Energy & Transportation			1,782												256												1,093												527												3,658												849												4,507
All Other Segment			13												—												3												22												38												92												130
Corporate Items and Eliminations			(39)												—												—												(4)												(43)												(1,040)												(1,083)
Machinery, Energy & Transportation			4,539												1,053												2,651												2,948												11,191												—												11,191
Financial Products Segment			476												62												100												123												761												—												761
Corporate Items and Eliminations			(24)												(11)												(8)												(22)												(65)												—												(65)
Financial Products Revenues			452												51												92												101												696												—												696
Consolidated Sales and Revenues			$	4,991											$	1,104											$	2,743											$	3,049											$	11,887											$	—											$	11,887

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Consolidated Operating Profit

The chart above graphically illustrates reasons for the change in consolidated operating profit between the first quarter of 2021 (at left) and the first quarter of 2022 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company’s Board of Directors and employees. The bar titled Other includes consolidating adjustments and Machinery, Energy & Transportation’s other operating (income) expenses.

Operating profit for the first quarter of 2022 was $1.855 billion, an increase of $41 million, or 2%, compared with $1.814 billion in the first quarter of 2021. Unfavorable manufacturing costs and higher selling, general and administrative (SG&A) and research and development (R&D) expenses were more than offset by favorable price realization and higher sales volume.

Unfavorable manufacturing costs primarily reflected higher material and freight costs. The increase in SG&A/R&D expenses was mainly driven by investments aligned with the company's strategy for profitable growth.

Profit by Segment
(Millions of dollars)			First Quarter 2022						First Quarter 2021						$ Change						%  Change
Construction Industries			$	1,057					$	1,042					$	15					1		%
Resource Industries			361						312						49						16		%
Energy & Transportation			538						675						(137)						(20		%)
All Other Segment			3						3						—						—		%
Corporate Items and Eliminations			(244)						(368)						124
Machinery, Energy & Transportation			1,715						1,664						51						3		%
Financial Products Segment			238						244						(6)						(2		%)
Corporate Items and Eliminations			(17)						(19)						2
Financial Products			221						225						(4)						(2		%)
Consolidating Adjustments			(81)						(75)						(6)
Consolidated Operating Profit			$	1,855					$	1,814					$	41					2		%

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Other Profit/Loss and Tax Items

•Other income (expense) in the first quarter of 2022 was income of $253 million, compared with income of $325 million in the first quarter of 2021. Favorable impacts from higher gains on commodity hedges were more than offset by the unfavorable impacts from lower foreign currency exchange net gains, lower pension and other postemployment benefit (OPEB) plan income and the unfavorable impacts from unrealized gains (losses) on marketable securities.

•The provision for income taxes for the first quarter of 2022 reflected an estimated annual global tax rate of 24%, compared with 26% for the first quarter of 2021, excluding the discrete items discussed below. The comparative tax rate for full-year 2021 was approximately 23%. The increase in the estimated annual global tax rate from full-year 2021 was primarily related to changes in the expected geographic mix of profits from a tax perspective for 2022.

In addition, a discrete tax benefit of $12 million was recorded in the first quarter of 2022, compared with a $43 million benefit in the first quarter of 2021, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense.

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CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
						First Quarter 2021						Sales Volume						Price Realization						Currency						Inter-Segment						First Quarter 2022						$  Change						%  Change
Total Sales						$	5,459					$	325					$	421					$	(101)					$	11					$	6,115					$	656					12		%
Sales by Geographic Region
						First Quarter 2022						First Quarter 2021						$ Change						% Change
North America						$	2,720					$	2,126					$	594					28		%
Latin America						627						392						235						60		%
EAME						1,277						1,081						196						18		%
Asia/Pacific						1,462						1,842						(380)						(21		%)
External Sales						6,086						5,441						645						12		%
Inter-segment						29						18						11						61		%
Total Sales						$	6,115					$	5,459					$	656					12		%
Segment Profit
						First Quarter 2022						First Quarter 2021						Change						% Change
Segment Profit						$	1,057					$	1,042					$	15					1		%
Segment Profit Margin						17.3		%				19.1		%				(1.8		pts)

Construction Industries’ total sales were $6.115 billion in the first quarter of 2022, an increase of $656 million, or 12%, compared with $5.459 billion in the first quarter of 2021. The increase was due to favorable price realization and higher sales volume, partially offset by unfavorable currency impacts related to the euro, Japanese yen and Australian dollar. The increase in sales volume was driven by the impact from changes in dealer inventories and higher end-user demand for aftermarket parts. Across all regions, dealers increased inventories more during the first quarter of 2022 than during the first 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 for equipment and aftermarket parts from improving non-residential construction, as well as continued strength in residential construction and the impact from changes in dealer inventories.

▪Sales increased in Latin America primarily due to higher sales volume, led by higher end-user demand across the region and the impact from changes in dealer inventories, as well as favorable price realization.

▪In EAME, sales increased due to higher sales volume and favorable price realization, partially offset by unfavorable currency impacts related to a weaker euro. Higher sales volume was driven by higher end-user demand for equipment and aftermarket parts and the impact from changes in dealer inventories.

▪Sales decreased in Asia/Pacific mainly due to lower sales volume and unfavorable currency impacts driven by a weaker Japanese yen and Australian dollar, partially offset by favorable price realization. Lower sales volume was driven by lower end-user demand, partially offset by the impact from changes in dealer inventories. Lower sales in China primarily driven by lower end-user demand were partially offset by increased sales across the majority of the region.

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Construction Industries’ profit was $1.057 billion in the first quarter of 2022, an increase of $15 million, or 1%, compared with $1.042 billion in the first quarter of 2021. Unfavorable manufacturing costs were more than offset by favorable price realization and higher sales volume. Unfavorable manufacturing costs largely reflected higher material and freight costs.

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RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
						First Quarter 2021						Sales Volume						Price Realization						Currency						Inter-Segment						First Quarter 2022						$  Change						%  Change
Total Sales						$	2,178					$	527					$	169					$	(34)					$	(10)					$	2,830					$	652					30		%
Sales by Geographic Region
						First Quarter 2022						First Quarter 2021						$ Change						% Change
North America						$	1,018					$	657					$	361					55		%
Latin America						399						405						(6)						(1		%)
EAME						594						474						120						25		%
Asia/Pacific						748						561						187						33		%
External Sales						2,759						2,097						662						32		%
Inter-segment						71						81						(10)						(12		%)
Total Sales						$	2,830					$	2,178					$	652					30		%
Segment Profit
						First Quarter 2022						First Quarter 2021						Change						% Change
Segment Profit						$	361					$	312					$	49					16		%
Segment Profit Margin						12.8		%				14.3		%				(1.5		pts)

Resource Industries’ total sales were $2.830 billion in the first quarter of 2022, an increase of $652 million, or 30%, compared with $2.178 billion in the first quarter of 2021. The increase was primarily due to higher sales volume and favorable price realization. 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. End-user demand was higher in heavy construction and quarry and aggregates as well as mining. Dealers increased inventories during the first quarter of 2022, compared to remaining about flat during the first quarter of 2021.

Resource Industries’ profit was $361 million in the first quarter of 2022, an increase of $49 million, or 16%, compared with $312 million in the first quarter of 2021. Unfavorable manufacturing costs and higher SG&A/R&D expenses were more than offset by higher sales volume and favorable price realization. Unfavorable manufacturing costs largely reflected higher freight and material costs. The increase in SG&A/R&D expenses was driven by investments aligned with growth initiatives.

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ENERGY & TRANSPORTATION
(Millions of dollars)
Segment Sales
						First Quarter 2021						Sales Volume						Price Realization						Currency						Inter-Segment						First Quarter 2022						$  Change						%  Change
Total Sales						$	4,507					$	333					$	115					$	(74)					$	157					$	5,038					$	531					12		%
Sales by Application
						First Quarter 2022						First Quarter 2021						$ Change						% Change
Oil and Gas						$	948					$	915					$	33					4		%
Power Generation						1,012						963						49						5		%
Industrial						1,020						813						207						25		%
Transportation						1,052						967						85						9		%
External Sales						4,032						3,658						374						10		%
Inter-segment						1,006						849						157						18		%
Total Sales						$	5,038					$	4,507					$	531					12		%
Segment Profit
						First Quarter 2022						First Quarter 2021						Change						% Change
Segment Profit						$	538					$	675					$	(137)					(20		%)
Segment Profit Margin						10.7		%				15.0		%				(4.3		pts)

Energy & Transportation’s total sales were $5.038 billion in the first quarter of 2022, an increase of $531 million, or 12%, compared with $4.507 billion in the first quarter of 2021. Sales increased across all applications and inter-segment sales.

▪Oil and Gas – Sales increased for reciprocating engines, primarily aftermarket parts, partially offset by lower sales for turbines and turbine-related services.

▪Power Generation – Sales rose due to higher sales volume in small reciprocating engine applications, partially offset by lower sales in turbines and turbine-related services.

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

▪Transportation – Sales increased in reciprocating engines, primarily aftermarket parts and marine applications.

Energy & Transportation’s profit was $538 million in the first quarter of 2022, a decrease of $137 million, or 20%, compared with $675 million in the first quarter of 2021. The decrease was mainly due to unfavorable manufacturing costs and higher SG&A/R&D expenses, partially offset by higher sales volume and favorable price realization. Unfavorable manufacturing costs largely reflected higher freight and material costs. The increase in SG&A/R&D expenses was driven by investments aligned with growth initiatives.

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FINANCIAL PRODUCTS SEGMENT
(Millions of dollars)
Revenues by Geographic Region
						First Quarter 2022						First Quarter 2021						$ Change						% Change
North America						$	503					$	476					$	27					6		%
Latin America						73						62						11						18		%
EAME						96						100						(4)						(4		%)
Asia/Pacific						111						123						(12)						(10		%)
Total Revenues						$	783					$	761					$	22					3		%
Segment Profit
						First Quarter 2022						First Quarter 2021						Change						% Change
Segment Profit						$	238					$	244					$	(6)					(2		%)

Financial Products’ segment revenues were $783 million in the first quarter of 2022, an increase of $22 million, or 3%, from the first quarter of 2021. The increase was mostly in North America, driven by a favorable impact from returned or repossessed equipment and higher average earning assets, partially offset by lower average financing rates.

Financial Products’ segment profit was $238 million in the first quarter of 2022, a decrease of $6 million, or 2%, compared with $244 million in the first quarter of 2021. The decrease was mainly due to higher provision for credit losses at Cat Financial and an increase in SG&A expenses, partially offset by a favorable impact from returned or repossessed equipment. The impact of lower average financing rates was mostly offset by lower interest expense.

At the end of the first quarter of 2022, past dues at Cat Financial were 2.05%, compared with 2.90% at the end of the first quarter of 2021. The decrease in past dues was mostly driven by the North America, Caterpillar Power Finance and EAME portfolios. Write-offs, net of recoveries, were $8 million for the first quarter of 2022, compared with $24 million for the first quarter of 2021. As of March 31, 2022, Cat Financial's allowance for credit losses totaled $357 million, or 1.29% of finance receivables, compared with $337 million, or 1.22% of finance receivables at December 31, 2021. The increase in allowance for credit losses included a higher reserve for the Russia and Ukraine portfolios.

Corporate Items and Eliminations

Expense for corporate items and eliminations was $261 million in the first quarter of 2022, a decrease of $126 million from the first quarter of 2021, primarily due to favorable impacts of segment reporting methodology differences and a favorable change in fair value adjustments related to deferred compensation plans.

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Notes

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

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

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 Thursday, April 28, 2022, to discuss its 2022 first-quarter results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx.

About Caterpillar

With 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: Ryan Fiedler, +1 224-551-4074 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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13

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 one significant item in order for the company’s results to be meaningful to readers. This item consists of (i) restructuring costs, which were incurred to generate longer-term benefits. The company does not consider this item 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 2022, 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 March 31, 2022 - U.S. GAAP						$	1,855					13.7		%				$	1,999					$	469					23.4		%				$	1,537					$	2.86
Restructuring costs						13						0.1		%				13						2						13.0		%				11						$	0.02
Three Months Ended March 31, 2022 - Adjusted						$	1,868					13.7		%				$	2,012					$	471					23.4		%				$	1,548					$	2.88
Three Months Ended March 31, 2021 - U.S. GAAP						$	1,814					15.3		%				$	1,997					$	475					23.8		%				$	1,530					$	2.77
Restructuring costs						64						0.5		%				64						10						15.0		%				54						$	0.10
Three Months Ended March 31, 2021 - Adjusted						$	1,878					15.8		%				$	2,061					$	485					23.5		%				$	1,584					$	2.87

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 14 to 22 reconcile ME&T and Financial Products to Caterpillar Inc. consolidated financial information.

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14

Caterpillar Inc.

Condensed Consolidated Statement of Results of Operations

(Unaudited)

(Dollars in millions except per share data)

									Three Months Ended March 31,
															2022						2021
Sales and revenues:
Sales of Machinery, Energy & Transportation															$	12,886					$	11,191
Revenues of Financial Products															703						696
Total sales and revenues															13,589						11,887
Operating costs:
Cost of goods sold															9,559						8,012
Selling, general and administrative expenses															1,346						1,239
Research and development expenses															457						374
Interest expense of Financial Products															106						125
Other operating (income) expenses															266						323
Total operating costs															11,734						10,073
Operating profit															1,855						1,814
Interest expense excluding Financial Products															109						142
Other income (expense)															253						325
Consolidated profit before taxes															1,999						1,997
Provision (benefit) for income taxes															469						475
Profit of consolidated companies															1,530						1,522
Equity in profit (loss) of unconsolidated affiliated companies															7						9
Profit of consolidated and affiliated companies															1,537						1,531
Less: Profit (loss) attributable to noncontrolling interests															—						1
Profit 1															$	1,537					$	1,530
Profit per common share															$	2.88					$	2.80
Profit per common share — diluted 2															$	2.86					$	2.77
Weighted-average common shares outstanding (millions)
– Basic															534.5						546.4
– Diluted 2															538.3						551.4

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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15

Caterpillar Inc.

Condensed Consolidated Statement of Financial Position

(Unaudited)

(Millions of dollars)

			March 31, 2022						December 31, 2021
Assets
Current assets:
Cash and cash equivalents			$	6,526					$	9,254
Receivables – trade and other			9,135						8,477
Receivables – finance			9,003						8,898
Prepaid expenses and other current assets			2,868						2,788
Inventories			15,038						14,038
Total current assets			42,570						43,455
Property, plant and equipment – net			11,932						12,090
Long-term receivables – trade and other			1,204						1,204
Long-term receivables – finance			12,665						12,707
Noncurrent deferred and refundable income taxes			1,973						1,840
Intangible assets			967						1,042
Goodwill			6,293						6,324
Other assets			4,672						4,131
Total assets			$	82,276					$	82,793
Liabilities
Current liabilities:
Short-term borrowings:
-- Machinery, Energy & Transportation			$	—					$	9
-- Financial Products			4,501						5,395
Accounts payable			8,361						8,154
Accrued expenses			3,846						3,757
Accrued wages, salaries and employee benefits			1,275						2,242
Customer advances			1,388						1,087
Dividends payable			—						595
Other current liabilities			2,355						2,256
Long-term debt due within one year:
-- Machinery, Energy & Transportation			127						45
-- Financial Products			7,679						6,307
Total current liabilities			29,532						29,847
Long-term debt due after one year:
-- Machinery, Energy & Transportation			9,636						9,746
-- Financial Products			15,641						16,287
Liability for postemployment benefits			5,363						5,592
Other liabilities			5,007						4,805
Total liabilities			65,179						66,277
Shareholders’ equity
Common stock			6,281						6,398
Treasury stock			(28,326)						(27,643)
Profit employed in the business			40,820						39,282
Accumulated other comprehensive income (loss)			(1,710)						(1,553)
Noncontrolling interests			32						32
Total shareholders’ equity			17,097						16,516
Total liabilities and shareholders’ equity			$	82,276					$	82,793

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16

Caterpillar Inc.

Condensed Consolidated Statement of Cash Flow

(Unaudited)

(Millions of dollars)

			Three Months Ended March 31,
			2022						2021
Cash flow from operating activities:
Profit of consolidated and affiliated companies			$	1,537					$	1,531
Adjustments for non-cash items:
Depreciation and amortization			557						586
Provision (benefit) for deferred income taxes			(99)						109
Other			(52)						(104)
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other			(372)						(543)
Inventories			(1,032)						(657)
Accounts payable			452						733
Accrued expenses			(74)						84
Accrued wages, salaries and employee benefits			(965)						191
Customer advances			311						58
Other assets – net			99						56
Other liabilities – net			(49)						(116)
Net cash provided by (used for) operating activities			313						1,928
Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others			(346)						(252)
Expenditures for equipment leased to others			(333)						(252)
Proceeds from disposals of leased assets and property, plant and equipment			269						309
Additions to finance receivables			(2,988)						(2,629)
Collections of finance receivables			2,966						2,770
Proceeds from sale of finance receivables			9						5
Investments and acquisitions (net of cash acquired)			(8)						(386)
Proceeds from sale of businesses and investments (net of cash sold)			—						28
Proceeds from sale of securities			571						126
Investments in securities			(1,438)						(148)
Other – net			(15)						(48)
Net cash provided by (used for) investing activities			(1,313)						(477)
Cash flow from financing activities:
Dividends paid			(595)						(562)
Common stock issued, including treasury shares reissued			(28)						65
Common shares repurchased			(820)						—
Proceeds from debt issued (original maturities greater than three months)			2,131						2,273
Payments on debt (original maturities greater than three months)			(1,387)						(2,887)
Short-term borrowings – net (original maturities three months or less)			(1,016)						1,659
Other – net			—						(2)
Net cash provided by (used for) financing activities			(1,715)						546
Effect of exchange rate changes on cash			(16)						(12)
Increase (decrease) in cash, cash equivalents and restricted cash			(2,731)						1,985
Cash, cash equivalents and restricted cash at beginning of period			9,263						9,366
Cash, cash equivalents and restricted cash at end of period			$	6,532					$	11,351

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

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17

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended March 31, 2022

(Unaudited)

(Millions of dollars)

									Supplemental Consolidating Data
			Consolidated						Machinery, Energy & Transportation						Financial Products						Consolidating Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation			$	12,886					$	12,886					$	—					$	—
Revenues of Financial Products			703						—						813						(110)			1
Total sales and revenues			13,589						12,886						813						(110)
Operating costs:
Cost of goods sold			9,559						9,560						—						(1)			2
Selling, general and administrative expenses			1,346						1,182						172						(8)			2
Research and development expenses			457						457						—						—
Interest expense of Financial Products			106						—						106						—
Other operating (income) expenses			266						(28)						314						(20)			2
Total operating costs			11,734						11,171						592						(29)
Operating profit			1,855						1,715						221						(81)
Interest expense excluding Financial Products			109						109						—						—
Other income (expense)			253						157						15						81			3
Consolidated profit before taxes			1,999						1,763						236						—
Provision (benefit) for income taxes			469						412						57						—
Profit of consolidated companies			1,530						1,351						179						—
Equity in profit (loss) of unconsolidated affiliated companies			7						8						—						(1)			4
Profit of consolidated and affiliated companies			1,537						1,359						179						(1)
Less: Profit (loss) attributable to noncontrolling interests			—						—						1						(1)			5
Profit 6			$	1,537					$	1,359					$	178					$	—

1			Elimination of Financial Products’ revenues earned from ME&T.
2			Elimination of net expenses recorded by ME&T paid to Financial Products.
3			Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.
4			Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries.
5			Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.
6			Profit attributable to common shareholders.

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18

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended March 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			$	11,191					$	11,191					$	—					$	—
Revenues of Financial Products			696						—						788						(92)			1
Total sales and revenues			11,887						11,191						788						(92)
Operating costs:
Cost of goods sold			8,012						8,013						—						(1)			2
Selling, general and administrative expenses			1,239						1,114						124						1			2
Research and development expenses			374						374						—						—
Interest expense of Financial Products			125						—						125						—
Other operating (income) expenses			323						26						314						(17)			2
Total operating costs			10,073						9,527						563						(17)
Operating profit			1,814						1,664						225						(75)
Interest expense excluding Financial Products			142						142						—						—
Other income (expense)			325						231						19						75			3
Consolidated profit before taxes			1,997						1,753						244						—
Provision (benefit) for income taxes			475						412						63						—
Profit of consolidated companies			1,522						1,341						181						—
Equity in profit (loss) of unconsolidated affiliated companies			9						12						—						(3)			4
Profit of consolidated and affiliated companies			1,531						1,353						181						(3)
Less: Profit (loss) attributable to noncontrolling interests			1						1						3						(3)			5
Profit 6			$	1,530					$	1,352					$	178					$	—

1			Elimination of Financial Products’ revenues earned from ME&T.
2			Elimination of net expenses recorded by ME&T paid to Financial Products.
3			Elimination of discount recorded by ME&T on receivables sold to Financial Products and of interest earned between ME&T and Financial Products as well as dividends paid by Financial Products to ME&T.
4			Elimination of equity profit (loss) earned from Financial Products’ subsidiaries partially owned by ME&T subsidiaries.
5			Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries.
6			Profit attributable to common shareholders.

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19

Caterpillar Inc.

Supplemental Data for Financial Position

At March 31, 2022

(Unaudited)

(Millions of dollars)

									Supplemental Consolidating Data
			Consolidated						Machinery, Energy & Transportation						Financial Products						Consolidating Adjustments
Assets
Current assets:
Cash and cash equivalents			$	6,526					$	5,662					$	864					$	—
Receivables – trade and other			9,135						3,734						435						4,966			1,2
Receivables – finance			9,003						—						14,117						(5,114)			2
Prepaid expenses and other current assets			2,868						2,626						345						(103)			3
Inventories			15,038						15,038						—						—
Total current assets			42,570						27,060						15,761						(251)
Property, plant and equipment – net			11,932						8,010						3,922						—
Long-term receivables – trade and other			1,204						434						216						554			1,2
Long-term receivables – finance			12,665						—						13,247						(582)			2
Noncurrent deferred and refundable income taxes			1,973						2,506						111						(644)			4
Intangible assets			967						967						—						—
Goodwill			6,293						6,293						—						—
Other assets			4,672						3,919						1,960						(1,207)			5
Total assets			$	82,276					$	49,189					$	35,217					$	(2,130)
Liabilities
Current liabilities:
Short-term borrowings			$	4,501					$	—					$	4,501					$	—
Accounts payable			8,361						8,238						271						(148)			6
Accrued expenses			3,846						3,403						443						—
Accrued wages, salaries and employee benefits			1,275						1,247						28						—
Customer advances			1,388						1,387						1						—
Other current liabilities			2,355						1,780						701						(126)			4,7
Long-term debt due within one year			7,806						127						7,679						—
Total current liabilities			29,532						16,182						13,624						(274)
Long-term debt due after one year			25,277						9,664						15,641						(28)			8
Liability for postemployment benefits			5,363						5,363						—						—
Other liabilities			5,007						4,169						1,542						(704)			4
Total liabilities			65,179						35,378						30,807						(1,006)
Shareholders’ equity
Common stock			6,281						6,281						919						(919)			9
Treasury stock			(28,326)						(28,326)						—						—
Profit employed in the business			40,820						36,750						4,059						11			9
Accumulated other comprehensive income (loss)			(1,710)						(928)						(782)						—
Noncontrolling interests			32						34						214						(216)			9
Total shareholders’ equity			17,097						13,811						4,410						(1,124)
Total liabilities and shareholders’ equity			$	82,276					$	49,189					$	35,217					$	(2,130)

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.

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20

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.

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21

Caterpillar Inc.

Supplemental Data for Cash Flow

For the Three Months Ended March 31, 2022

(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			$	1,537					$	1,359					$	179					$	(1)		1
Adjustments for non-cash items:
Depreciation and amortization			557						358						199						—
Provision (benefit) for deferred income taxes			(99)						(83)						(16)						—
Other			(52)						(46)						(89)						83			2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other			(372)						(257)						(7)						(108)			2,3
Inventories			(1,032)						(1,030)						—						(2)			2
Accounts payable			452						393						40						19			2
Accrued expenses			(74)						(1)						(73)						—
Accrued wages, salaries and employee benefits			(965)						(940)						(25)						—
Customer advances			311						311						—						—
Other assets – net			99						137						(17)						(21)			2
Other liabilities – net			(49)						(279)						202						28			2
Net cash provided by (used for) operating activities			313						(78)						393						(2)
Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others			(346)						(344)						(3)						1			2
Expenditures for equipment leased to others			(333)						(4)						(335)						6			2
Proceeds from disposals of leased assets and property, plant and equipment			269						33						241						(5)			2
Additions to finance receivables			(2,988)						—						(3,139)						151			3
Collections of finance receivables			2,966						—						3,159						(193)			3
Net intercompany purchased receivables			—						—						(42)						42			3
Proceeds from sale of finance receivables			9						—						9						—
Net intercompany borrowings			—						—						1						(1)			4
Investments and acquisitions (net of cash acquired)			(8)						(8)						—						—
Proceeds from sale of securities			571						478						93						—
Investments in securities			(1,438)						(1,266)						(172)						—
Other – net			(15)						18						(33)						—
Net cash provided by (used for) investing activities			(1,313)						(1,093)						(221)						1
Cash flow from financing activities:
Dividends paid			(595)						(595)						—						—
Common stock issued, including treasury shares reissued			(28)						(28)						—						—
Common shares repurchased			(820)						(820)						—						—
Net intercompany borrowings			—						(1)						—						1			4
Proceeds from debt issued > 90 days			2,131						—						2,131						—
Payments on debt > 90 days			(1,387)						(6)						(1,381)						—
Short-term borrowings – net < 90 days			(1,016)						(124)						(892)						—
Net cash provided by (used for) financing activities			(1,715)						(1,574)						(142)						1
Effect of exchange rate changes on cash			(16)						(21)						5						—
Increase (decrease) in cash, cash equivalents and restricted cash			(2,731)						(2,766)						35						—
Cash, cash equivalents and restricted cash at beginning of period			9,263						8,433						830						—
Cash, cash equivalents and restricted cash at end of period			$	6,532					$	5,667					$	865					$	—

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.

(more)

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22

Caterpillar Inc.

Supplemental Data for Cash Flow

For the Three Months Ended March 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			$	1,531					$	1,353					$	181					$	(3)		1
Adjustments for non-cash items:
Depreciation and amortization			586						383						203						—
Provision (benefit) for deferred income taxes			109						127						(18)						—
Other			(104)						(52)						(83)						31			2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other			(543)						(104)						(32)						(407)			2,3
Inventories			(657)						(657)						—						—
Accounts payable			733						706						13						14			2
Accrued expenses			84						58						26						—
Accrued wages, salaries and employee benefits			191						179						12						—
Customer advances			58						58						—						—
Other assets – net			56						(4)						(12)						72			2
Other liabilities – net			(116)						(131)						79						(64)			2
Net cash provided by (used for) operating activities			1,928						1,916						369						(357)
Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others			(252)						(251)						(4)						3			2
Expenditures for equipment leased to others			(252)						(4)						(249)						1			2
Proceeds from disposals of leased assets and property, plant and equipment			309						27						286						(4)			2
Additions to finance receivables			(2,629)						—						(2,867)						238			3
Collections of finance receivables			2,770						—						3,062						(292)			3
Net intercompany purchased receivables			—						—						(411)						411			3
Proceeds from sale of finance receivables			5						—						5						—
Net intercompany borrowings			—						1,000						—						(1,000)			4
Investments and acquisitions (net of cash acquired)			(386)						(386)						—						—
Proceeds from sale of businesses and investments (net of cash sold)			28						28						—						—
Proceeds from sale of securities			126						11						115						—
Investments in securities			(148)						—						(148)						—
Other – net			(48)						2						(50)						—
Net cash provided by (used for) investing activities			(477)						427						(261)						(643)
Cash flow from financing activities:
Dividends paid			(562)						(562)						—						—
Common stock issued, including treasury shares reissued			65						65						—						—
Net intercompany borrowings			—						—						(1,000)						1,000			4
Proceeds from debt issued > 90 days			2,273						494						1,779						—
Payments on debt > 90 days			(2,887)						(644)						(2,243)						—
Short-term borrowings – net < 90 days			1,659						(10)						1,669						—
Other – net			(2)						(2)						—						—
Net cash provided by (used for) financing activities			546						(659)						205						1,000
Effect of exchange rate changes on cash			(12)						(14)						2						—
Increase (decrease) in cash, cash equivalents and restricted cash			1,985						1,670						315						—
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			$	11,351					$	10,492					$	859					$	—

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.

#

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

1st Quarter 2022

4th Quarter 2021

3rd Quarter 2021

2nd Quarter 2021

World

UP 2%

UP 7%

UP 14%

UP 15%

Machines

1st Quarter 2022

4th Quarter 2021

3rd Quarter 2021

2nd Quarter 2021

Asia/Pacific

DOWN 18%

DOWN 8%

DOWN 4%

UP 1%

EAME

UP 10%

UP 24%

UP 22%

UP 16%

Latin America

DOWN 1%

UP 15%

UP 57%

UP 55%

North America

UP 17%

UP 1%

UP 19%

UP 32%

World

UP 3%

UP 5%

UP 17%

UP 20%

Resource Industries (RI)

1st Quarter 2022

4th Quarter 2021

3rd Quarter 2021

2nd Quarter 2021

Asia/Pacific

UP 23%

UP 47%

UP 18%

UP 31%

EAME

UP 17%

UP 13%

UP 20%

DOWN 9%

Latin America

DOWN 34%

DOWN 20%

UP 130%

UP 23%

North America

UP 36%

DOWN 7%

UP 30%

UP 44%

World

UP 13%

UP 10%

UP 33%

UP 21%

Construction Industries (CI)

1st Quarter 2022

4th Quarter 2021

3rd Quarter 2021

2nd Quarter 2021

Asia/Pacific

DOWN 31%

DOWN 23%

DOWN 10%

DOWN 7%

EAME

UP 8%

UP 29%

UP 23%

UP 27%

Latin America

UP 25%

UP 40%

UP 31%

UP 76%

North America

UP 14%

UP 3%

UP 17%

UP 30%

World

UNCHANGED

UP 4%

UP 12%

UP 20%

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)

1st Quarter 2022

4th Quarter 2021

3rd Quarter 2021

2nd Quarter 2021

Power Gen

DOWN 10%

UP 3%

DOWN 8%

DOWN 6%

Industrial

UP 26%

UP 30%

UP 36%

UP 44%

Transportation

UP 50%

UP 42%

DOWN 12%

UP 5%

Oil & Gas

DOWN 12%

UP 9%

UP 21%

DOWN 6%

Total

DOWN 1%

UP 12%

UP 8%

UP 1%

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			· wheel excavators
· compact track and			· site prep tractors			· compact, small and medium
multi-terrain loaders			· skid steer loaders			wheel loaders
· mini, small, medium			· telehandlers
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, 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.