0000018230false00000182302021-01-292021-01-290000018230us-gaap:CommonStockMember2021-01-292021-01-290000018230cat:A938DebenturesDueMarch152021Member2021-01-292021-01-290000018230cat: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 29, 2021

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

9 3/8% Debentures due March 15, 2021

CAT21

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.

☐

---

Item 2.02. Results of Operations and Financial Condition.

On January 29, 2021, Caterpillar Inc. issued a press release reporting its financial results for the quarter ended December 31, 2020. 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 29, 2021
						99.2			Retail Statistics
						104			The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

---

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
			CATERPILLAR INC.
January 29, 2021			By:			/s/ Suzette M. Long
						Suzette M. Long Chief Legal Officer & General Counsel

Exhibit 99.1

Caterpillar Inc.                                     

4Q 2020 Earnings Release

January 29, 2021

FOR IMMEDIATE RELEASE

Caterpillar Reports Fourth-Quarter and Full-Year 2020 Results

●			Caterpillar reports strong operational performance
●			Fourth-quarter 2020 profit per share of $1.42; adjusted profit per share of $2.12
●			Full-year operating profit margin percentage of 10.9%; adjusted operating profit margin of 11.8%, within 2019 Investor Day target range
●			Returned $3.4 billion to shareholders through dividends and share repurchases in 2020

						Fourth Quarter									Full Year
($ in billions except profit per share)						2020			2019						2020			2019
Sales and Revenues						$11.2			$13.1						$41.7			$53.8
Profit Per Share						$1.42			$1.97						$5.46			$10.74
Adjusted Profit Per Share						$2.12			$2.71						$6.56			$11.40

DEERFIELD, Ill. – Caterpillar Inc. (NYSE: CAT) today announced fourth-quarter and full-year results for 2020.

Sales and revenues for the fourth quarter of 2020 were $11.2 billion, a 15% decrease compared with $13.1 billion in the fourth quarter of 2019. Operating profit margin was 12.3% for the fourth quarter of 2020, compared with 14.1% for the fourth quarter of 2019. Fourth-quarter 2020 profit per share was $1.42, compared with $1.97 profit per share in the fourth quarter of 2019. Adjusted profit per share in the fourth quarter of 2020 was $2.12, compared with fourth-quarter 2019 adjusted profit per share of $2.71. Fourth-quarter 2020 adjusted profit per share of $2.12 reflects strong operational performance and a lower effective tax rate.

Full-year sales and revenues in 2020 were $41.7 billion, down 22% compared with $53.8 billion in 2019. The sales decline reflected lower end-user demand and dealers reducing their inventories by $2.9 billion in 2020. Operating profit margin was 10.9% for 2020, compared with 15.4% for 2019. Full-year profit was $5.46 per share in 2020, compared with profit of $10.74 per share in 2019. Adjusted profit per share in 2020 was $6.56, compared with adjusted profit per share of $11.40 in 2019.

“I’m proud of our global team’s continued resilience in safely navigating COVID-19 while continuing to provide the essential products and services the world needs,” said Caterpillar Chairman and CEO Jim Umpleby. “Our fourth-quarter and full-year results reflect the team’s agility in a challenging environment while executing our strategy for long-term profitable growth. We achieved the adjusted operating profit margin established during our 2019 Investor Day while continuing to invest in products and services. We are well-positioned for the future and will emerge from the pandemic as an even stronger company.”

(more)

---

2

In 2020, adjusted profit per share excluded mark-to-market losses for remeasurement of pension and other postemployment benefit (OPEB) plans and restructuring costs. In 2019, adjusted profit per share excluded mark-to-market losses for remeasurement of pension and OPEB plans, restructuring costs and a discrete tax benefit related to U.S. tax reform. Please see in the appendix on page 14 a reconciliation of GAAP to non-GAAP financial measures.

For the full year of 2020, enterprise operating cash flow was $6.3 billion. During the year, the company paid dividends of $2.2 billion and repurchased $1.1 billion of Caterpillar common stock. Liquidity remains strong with an enterprise cash balance of $9.4 billion at the end of 2020.

(more)

---

3

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 2019 (at left) and the fourth quarter of 2020 (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 2020 were $11.235 billion, a decrease of $1.909 billion, or 15%, compared with $13.144 billion in the fourth quarter of 2019. The decline was mostly due to lower sales volume driven by lower end-user demand for equipment and services and the impact from changes in dealer inventories. Dealers decreased inventories more during the fourth quarter of 2020 than during the fourth quarter of 2019.

Sales were lower across the three primary segments, with the largest decline in Energy & Transportation.

Sales and Revenues by Segment
(Millions of dollars)			Fourth Quarter 2019						Sales Volume						Price Realization						Currency						Inter-Segment / Other						Fourth Quarter 2020						$ Change						% Change
Construction Industries			$	5,020					$	(526)					$	(3)					$	30					$	(13)					$	4,508					$	(512)					(10%)
Resource Industries			2,395						(237)						7						7						8						2,180						(215)						(9%)
Energy & Transportation			5,949						(1,197)						12						49						(2)						4,811						(1,138)						(19%)
All Other Segment			143						3						(1)						1						(9)						137						(6)						(4%)
Corporate Items and Eliminations			(1,121)						36						2						1						16						(1,066)						55
Machinery, Energy & Transportation			12,386						(1,921)						17						88						—						10,570						(1,816)						(15%)
Financial Products Segment			846						—						—						—						(103)						743						(103)						(12%)
Corporate Items and Eliminations			(88)						—						—						—						10						(78)						10
Financial Products Revenues			758						—						—						—						(93)						665						(93)						(12%)
Consolidated Sales and Revenues			$	13,144					$	(1,921)					$	17					$	88					$	(93)					$	11,235					$	(1,909)					(15%)

(more)

---

4

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 2020
Construction Industries			$	1,895					(16%)						$	324					(21%)						$	848					—%						$	1,417					(4%)						$	4,484					(10%)						$	24					(35%)						$	4,508					(10%)
Resource Industries			596						(29%)						394						26%						412						(22%)						651						8%						2,053						(10%)						127						7%						2,180						(9%)
Energy & Transportation			1,705						(25%)						265						(25%)						1,353						(14%)						707						(25%)						4,030						(22%)						781						—%						4,811						(19%)
All Other Segment			5						150%						—						—%						9						80%						18						(18%)						32						10%						105						(8%)						137						(4%)
Corporate Items and Eliminations			(27)												1												(2)												(1)												(29)												(1,037)												(1,066)
Machinery, Energy & Transportation			4,174						(22%)						984						(9%)						2,620						(11%)						2,792						(8%)						10,570						(15%)						—						—%						10,570						(15%)
Financial Products Segment			464						(16%)						64						(14%)						94						(8%)						121						4%						743						(12%)						—						—%						743						(12%)
Corporate Items and Eliminations			(41)												(10)												(10)												(17)												(78)												—												(78)
Financial Products Revenues			423						(16%)						54						(10%)						84						(10%)						104						3%						665						(12%)						—						—%						665						(12%)
Consolidated Sales and Revenues			$	4,597					(21%)						$	1,038					(9%)						$	2,704					(11%)						$	2,896					(8%)						$	11,235					(15%)						$	—					—%						$	11,235					(15%)
Fourth Quarter 2019
Construction Industries			$	2,249											$	409											$	850											$	1,475											$	4,983											$	37											$	5,020
Resource Industries			834												313												526												603												2,276												119												2,395
Energy & Transportation			2,287												354												1,578												947												5,166												783												5,949
All Other Segment			2												—												5												22												29												114												143
Corporate Items and Eliminations			(50)												—												(5)												(13)												(68)												(1,053)												(1,121)
Machinery, Energy & Transportation			5,322												1,076												2,954												3,034												12,386												—												12,386
Financial Products Segment			554												74												102												116												846												—												846
Corporate Items and Eliminations			(50)												(14)												(9)												(15)												(88)												—												(88)
Financial Products Revenues			504												60												93												101												758												—												758
Consolidated Sales and Revenues			$	5,826											$	1,136											$	3,047											$	3,135											$	13,144											$	—											$	13,144

(more)

---

5

Consolidated Operating Profit

The chart above graphically illustrates reasons for the change in consolidated operating profit between the fourth quarter of 2019 (at left) and the fourth quarter of 2020 (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 2020 was $1.380 billion, a decrease of $470 million, or 25%, compared with $1.850 billion in the fourth quarter of 2019. The decrease was primarily the result of lower sales volume partially offset by lower manufacturing costs and selling, general and administrative (SG&A) and research and development (R&D) expenses. In addition, operating profit declined due to lower profit from Financial Products.

Manufacturing costs were lower due to favorable impact from cost absorption, lower material and period manufacturing costs, partially offset by higher warranty expense. Cost absorption was favorable as inventory decreased more in the fourth quarter of 2019 than in the fourth quarter of 2020.

SG&A/R&D expenses and period manufacturing costs benefited from reduced short-term incentive compensation expense and other cost reductions related to lower sales volumes, partially offset by higher labor and benefits costs.

(more)

---

6

Profit (Loss) by Segment
(Millions of dollars)			Fourth Quarter 2020						Fourth Quarter 2019						$ Change						%  Change
Construction Industries			$	630					$	659					$	(29)					(4		%)
Resource Industries			273						261						12						5		%
Energy & Transportation			687						1,165						(478)						(41		%)
All Other Segment			(3)						(11)						8						73		%
Corporate Items and Eliminations			(281)						(325)						44
Machinery, Energy & Transportation			1,306						1,749						(443)						(25		%)
Financial Products Segment			195						210						(15)						(7		%)
Corporate Items and Eliminations			(47)						(6)						(41)
Financial Products			148						204						(56)						(27		%)
Consolidating Adjustments			(74)						(103)						29
Consolidated Operating Profit			$	1,380					$	1,850					$	(470)					(25		%)

Other Profit/Loss and Tax Items

•Other income (expense) in the fourth quarter of 2020 was an expense of $309 million, compared with an expense of $373 million in the fourth quarter of 2019. The change was primarily driven by lower pension and OPEB costs including lower mark-to-market losses for remeasurement of pension and OPEB plans and impacts from gains (losses) on marketable securities at Insurance Services, partially offset by unfavorable impacts from foreign currency exchange gains (losses). The favorable impact of gains (losses) on marketable securities reflected unrealized gains in the fourth quarter of 2020, compared with unrealized losses in the fourth quarter of 2019 and the absence of realized gains that occurred in the fourth quarter of 2019.

•The provision for income taxes for the fourth quarter of 2020 reflected an annual effective tax rate of approximately 28%, compared with 25% for the fourth quarter of 2019, excluding the discrete items discussed below. The increase from 2019 was primarily related to changes in the geographic mix of profits from a tax perspective.

In the fourth quarter of 2020, the company recorded a $96 million tax benefit due to the change from the third quarter estimated annual tax rate of 31%, compared to a $64 million tax benefit for the reduction in the annual effective tax rate in the fourth quarter of 2019. In addition, the company recorded a tax benefit of $92 million related to $438 million of pension and OPEB mark-to-market losses in the fourth quarter of 2020, compared to a $105 million tax benefit related to $468 million of mark-to-market losses in the fourth quarter of 2019. Finally, the company recorded a tax benefit of $28 million in the fourth quarter of 2020, compared to $13 million in the fourth quarter of 2019, for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense.

(more)

---

7

CONSTRUCTION INDUSTRIES
(Millions of dollars)
Segment Sales
						Fourth Quarter 2019						Sales Volume						Price Realization						Currency						Inter-Segment						Fourth Quarter 2020						$ Change						% Change
Total Sales						$	5,020					$	(526)					$	(3)					$	30					$	(13)					$	4,508					$	(512)					(10		%)
Sales by Geographic Region
						Fourth Quarter 2020						Fourth Quarter 2019						$ Change						% Change
North America						$	1,895					$	2,249					$	(354)					(16		%)
Latin America						324						409						(85)						(21		%)
EAME						848						850						(2)						—		%
Asia/Pacific						1,417						1,475						(58)						(4		%)
External Sales						4,484						4,983						(499)						(10		%)
Inter-segment						24						37						(13)						(35		%)
Total Sales						$	4,508					$	5,020					$	(512)					(10		%)
Segment Profit
						Fourth Quarter 2020						Fourth Quarter 2019						Change						% Change
Segment Profit						$	630					$	659					$	(29)					(4		%)
Segment Profit Margin						14.0		%				13.1		%				0.9		pts

Construction Industries’ total sales were $4.508 billion in the fourth quarter of 2020, a decrease of $512 million, or 10%, compared with $5.020 billion in the fourth quarter of 2019. The decrease was due to lower sales volume, driven by the impact from changes in dealer inventories and slightly lower end-user demand. Dealers decreased inventories more during the fourth quarter of 2020 than during the fourth quarter of 2019.

▪In North America, sales decreased mostly due to lower sales volume driven by the impact from changes in dealer inventories and lower end-user demand. The lower end-user demand was primarily the result of weaker pipeline and road construction. Dealers decreased inventories more during the fourth quarter of 2020 than during the fourth quarter of 2019.

▪Sales declined in Latin America primarily due to the unfavorable currency impacts from a weaker Brazilian real and lower sales volume.

▪In EAME, sales were about flat as lower sales volume across several countries in the region was offset by favorable price realization and favorable currency impacts from a stronger euro. Lower sales volume was driven by lower end-user demand, partially offset by the impact of changes in dealer inventories. Dealers decreased inventories more during the fourth quarter of 2019 than during the fourth quarter of 2020.

▪Sales decreased in Asia/Pacific primarily due to lower sales volume and unfavorable price realization, partially offset by favorable currency impacts from both a stronger Chinese yuan and Australian dollar. The decrease in sales was mainly driven by China, where higher end-user demand was more than offset by unfavorable impacts from changes in dealer inventories. This was partially offset by higher demand in several other countries.

Construction Industries’ profit was $630 million in the fourth quarter of 2020, a decrease of $29 million, or 4%, compared with $659 million in the fourth quarter of 2019. The decrease was mainly due to lower sales volume and higher warranty expense, partially offset by favorable impact of cost absorption and lower SG&A/R&D expenses. Cost absorption was favorable as inventory increased during the fourth quarter of 2020, compared with a decrease

(more)

---

8

during the fourth quarter of 2019. SG&A/R&D expenses benefited from reduced short-term incentive compensation expense and other cost reductions related to lower sales volumes.

(more)

---

9

RESOURCE INDUSTRIES
(Millions of dollars)
Segment Sales
						Fourth Quarter 2019						Sales Volume						Price Realization						Currency						Inter-Segment						Fourth Quarter 2020						$ Change						% Change
Total Sales						$	2,395					$	(237)					$	7					$	7					$	8					$	2,180					$	(215)					(9		%)
Sales by Geographic Region
						Fourth Quarter 2020						Fourth Quarter 2019						$ Change						% Change
North America						$	596					$	834					$	(238)					(29		%)
Latin America						394						313						81						26		%
EAME						412						526						(114)						(22		%)
Asia/Pacific						651						603						48						8		%
External Sales						2,053						2,276						(223)						(10		%)
Inter-segment						127						119						8						7		%
Total Sales						$	2,180					$	2,395					$	(215)					(9		%)
Segment Profit
						Fourth Quarter 2020						Fourth Quarter 2019						Change						% Change
Segment Profit						$	273					$	261					$	12					5		%
Segment Profit Margin						12.5		%				10.9		%				1.6		pts

Resource Industries’ total sales were $2.180 billion in the fourth quarter of 2020, a decrease of $215 million, or 9%, compared with $2.395 billion in the fourth quarter of 2019. The decrease was due to lower end-user demand for equipment and aftermarket parts. End-user demand was lower for heavy construction and quarry and aggregates and was also lower in mining, but to a lesser extent.

Resource Industries’ profit was $273 million in the fourth quarter of 2020, an increase of $12 million, or 5%, compared with $261 million in the fourth quarter of 2019. The increase was mainly due to favorable manufacturing costs and lower SG&A/R&D expenses which was mostly offset by lower sales volume. Favorable manufacturing costs reflected favorable variable labor and burden, impact of cost absorption, period manufacturing costs and material costs. Cost absorption was favorable as inventory decreased in the fourth quarter of 2019 compared with being about flat in the fourth quarter of 2020. SG&A/R&D expenses, along with period manufacturing costs, benefited from lower short-term incentive compensation expense, other cost-reduction actions implemented and benefits from prior restructuring programs.

(more)

---

10

ENERGY & TRANSPORTATION
(Millions of dollars)
Segment Sales
						Fourth Quarter 2019						Sales Volume						Price Realization						Currency						Inter-Segment						Fourth Quarter 2020						$ Change						% Change
Total Sales						$	5,949					$	(1,197)					$	12					$	49					$	(2)					$	4,811					$	(1,138)					(19		%)
Sales by Application
						Fourth Quarter 2020						Fourth Quarter 2019						$ Change						% Change
Oil and Gas						$	1,079					$	1,523					$	(444)					(29		%)
Power Generation						1,180						1,294						(114)						(9		%)
Industrial						736						908						(172)						(19		%)
Transportation						1,035						1,441						(406)						(28		%)
External Sales						4,030						5,166						(1,136)						(22		%)
Inter-segment						781						783						(2)						—		%
Total Sales						$	4,811					$	5,949					$	(1,138)					(19		%)
Segment Profit
						Fourth Quarter 2020						Fourth Quarter 2019						Change						% Change
Segment Profit						$	687					$	1,165					$	(478)					(41		%)
Segment Profit Margin						14.3		%				19.6		%				(5.3		pts)

Energy & Transportation’s total sales were $4.811 billion in the fourth quarter of 2020, a decrease of $1.138 billion, or 19%, compared with $5.949 billion in the fourth quarter of 2019. Sales declined across all applications.

▪Oil and Gas – Sales decreased mainly due to lower demand in North America for reciprocating engines used in gas compression and well servicing. In addition, sales were lower for turbines and turbine-related services.

▪Power Generation – Sales decreased primarily due to lower sales volume in small reciprocating engines, turbines and turbine-related services and engine aftermarket parts.

▪Industrial – Sales decreased due to lower demand across all regions.

▪Transportation – Sales declined in rail due to lower rail services and locomotives deliveries, primarily in North America. Marine sales were also lower.

Energy & Transportation’s profit was $687 million in the fourth quarter of 2020, a decrease of $478 million, or 41%, compared with $1.165 billion in the fourth quarter of 2019. The decrease was due to lower sales volume, partially offset by lower SG&A/R&D expenses and period manufacturing costs. SG&A/R&D expenses and period manufacturing costs were mostly impacted by a reduction in short-term incentive compensation expense and other cost-reduction actions implemented in response to lower sales volumes.

(more)

---

11

FINANCIAL PRODUCTS SEGMENT
(Millions of dollars)
Revenues by Geographic Region
						Fourth Quarter 2020						Fourth Quarter 2019						$ Change						% Change
North America						$	464					$	554					$	(90)					(16		%)
Latin America						64						74						(10)						(14		%)
EAME						94						102						(8)						(8		%)
Asia/Pacific						121						116						5						4		%
Total Revenues						$	743					$	846					$	(103)					(12		%)
Segment Profit
						Fourth Quarter 2020						Fourth Quarter 2019						Change						% Change
Segment Profit						$	195					$	210					$	(15)					(7		%)

Financial Products’ segment revenues were $743 million in the fourth quarter of 2020, a decrease of $103 million, or 12%, from the fourth quarter of 2019. The decrease was primarily because of lower average financing rates across all regions and lower average earning assets in North America.

Financial Products’ segment profit was $195 million in the fourth quarter of 2020, compared with $210 million in the fourth quarter of 2019. The decrease was primarily due to higher provision for credit losses, an unfavorable impact from returned or repossessed equipment and lower average earning assets at Cat Financial. These unfavorable impacts were partially offset by a reduction in SG&A expenses primarily due to lower short-term incentive compensation and a favorable impact from equity securities in Insurance Services.

At the end of 2020, past dues at Cat Financial were 3.49%, compared with 3.14% at the end of 2019. Past dues increased primarily due to the impact of the COVID-19 pandemic, partially offset by decreases in the Caterpillar Power Finance, EAME and Latin American portfolios. Write-offs, net of recoveries, were $222 million for 2020, compared with $237 million for 2019. As of December 31, 2020, Cat Financial's allowance for credit losses totaled $479 million, or 1.77% of finance receivables, compared with $424 million, or 1.50% of finance receivables at December 31, 2019.

Corporate Items and Eliminations

Expense for corporate items and eliminations was $328 million in the fourth quarter of 2020, a decrease of $3 million from the fourth quarter of 2019.

(more)

---

12

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 29, 2021.

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 29, 2021, to discuss its 2020 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 2020 sales and revenues of $41.7 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Since 1925, we’ve been driving sustainable progress and helping customers build a better world through innovative products and services. Throughout the product life cycle, we offer services built on cutting-edge technology and decades of product expertise. These products and services, backed by our global dealer network, provide exceptional value to help our customers succeed. We do business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries, and Energy & Transportation – and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/social-media.

Caterpillar’s latest financial results are also available online:

https://investors.caterpillar.com/overview/default.aspx

https://investors.caterpillar.com/financials/quarterly-results/default.aspx (live broadcast/replays of quarterly conference call)

Caterpillar investor relations contact: Jennifer Driscoll, +1 224-551-4382 or [email protected]

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

(more)

---

13

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.

(more)

---

14

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.

Adjusted Profit

The company believes it is important to separately quantify the profit impact of three 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 losses resulting from plan remeasurements, (ii) restructuring costs, which were incurred to generate longer-term benefits, and (iii) U.S. tax reform impact in 2019. 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, 2020 - US 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 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
Three Months Ended December 31, 2019 - US GAAP						$	1,850					14.1		%				$	1,365					$	276					20.2		%				$	1,098					$	1.97
Pension/OPEB mark-to-market (gains) losses						—						—		%				468						105						22.4		%				363						$	0.65
Restructuring costs						54						0.4		%				54						10						19.0		%				44						$	0.08
Three Months Ended December 31, 2019 - Adjusted						$	1,904					14.5		%				$	1,887					$	391					20.7		%				$	1,505					$	2.71
Twelve Months Ended December 31, 2020 - US 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 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
Twelve Months Ended December 31, 2019 - US GAAP						$	8,290					15.4		%				$	7,812					$	1,746					22.4		%				$	6,093					$	10.74
Pension/OPEB mark-to-market (gains) losses						—						—		%				468						105						22.4		%				363						$	0.64
Restructuring costs						236						0.4		%				236						45						19.0		%				191						$	0.34
U.S. tax reform impact						—						—		%				—						178						—		%				(178)						$	(0.31)
Twelve Months Ended December 31, 2019 - Adjusted						$	8,526					15.8		%				$	8,516					$	2,074					24.4		%				$	6,469					$	11.40

(more)

---

15

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

(more)

---

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,
			2020						2019						2020						2019
Sales and revenues:
Sales of Machinery, Energy & Transportation			$	10,570					$	12,386					$	39,022					$	50,755
Revenues of Financial Products			665						758						2,726						3,045
Total sales and revenues			11,235						13,144						41,748						53,800
Operating costs:
Cost of goods sold			7,784						9,117						29,082						36,630
Selling, general and administrative expenses			1,216						1,283						4,642						5,162
Research and development expenses			374						386						1,415						1,693
Interest expense of Financial Products			128						183						589						754
Other operating (income) expenses			353						325						1,467						1,271
Total operating costs			9,855						11,294						37,195						45,510
Operating profit			1,380						1,850						4,553						8,290
Interest expense excluding Financial Products			130						112						514						421
Other income (expense)			(309)						(373)						(44)						(57)
Consolidated profit before taxes			941						1,365						3,995						7,812
Provision (benefit) for income taxes			167						276						1,006						1,746
Profit of consolidated companies			774						1,089						2,989						6,066
Equity in profit (loss) of unconsolidated affiliated companies			6						8						14						28
Profit of consolidated and affiliated companies			780						1,097						3,003						6,094
Less: Profit (loss) attributable to noncontrolling interests			—						(1)						5						1
Profit 1			$	780					$	1,098					$	2,998					$	6,093
Profit per common share			$	1.43					$	2.00					$	5.51					$	10.85
Profit per common share — diluted 2			$	1.42					$	1.97					$	5.46					$	10.74
Weighted-average common shares outstanding (millions)
– Basic			544.5						550.3						544.1						561.6
– Diluted 2			549.5						556.1						548.6						567.5

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

(more)

---

17

Caterpillar Inc.

Condensed Consolidated Statement of Financial Position

(Unaudited)

(Millions of dollars)

			December 31, 2020						December 31, 2019
Assets
Current assets:
Cash and short-term investments			$	9,352					$	8,284
Receivables – trade and other			7,317						8,568
Receivables – finance			9,463						9,336
Prepaid expenses and other current assets			1,930						1,739
Inventories			11,402						11,266
Total current assets			39,464						39,193
Property, plant and equipment – net			12,401						12,904
Long-term receivables – trade and other			1,185						1,193
Long-term receivables – finance			12,222						12,651
Noncurrent deferred and refundable income taxes			1,523						1,411
Intangible assets			1,308						1,565
Goodwill			6,394						6,196
Other assets			3,827						3,340
Total assets			$	78,324					$	78,453
Liabilities
Current liabilities:
Short-term borrowings:
-- Machinery, Energy & Transportation			$	10					$	5
-- Financial Products			2,005						5,161
Accounts payable			6,128						5,957
Accrued expenses			3,642						3,750
Accrued wages, salaries and employee benefits			1,096						1,629
Customer advances			1,108						1,187
Dividends payable			562						567
Other current liabilities			2,017						2,155
Long-term debt due within one year:
-- Machinery, Energy & Transportation			1,420						16
-- Financial Products			7,729						6,194
Total current liabilities			25,717						26,621
Long-term debt due after one year:
-- Machinery, Energy & Transportation			9,749						9,141
-- Financial Products			16,250						17,140
Liability for postemployment benefits			6,872						6,599
Other liabilities			4,358						4,323
Total liabilities			62,946						63,824
Shareholders’ equity
Common stock			6,230						5,935
Treasury stock			(25,178)						(24,217)
Profit employed in the business			35,167						34,437
Accumulated other comprehensive income (loss)			(888)						(1,567)
Noncontrolling interests			47						41
Total shareholders’ equity			15,378						14,629
Total liabilities and shareholders’ equity			$	78,324					$	78,453

(more)

---

18

Caterpillar Inc.

Condensed Consolidated Statement of Cash Flow

(Unaudited)

(Millions of dollars)

			Twelve Months Ended December 31,
			2020						2019
Cash flow from operating activities:
Profit of consolidated and affiliated companies			$	3,003					$	6,094
Adjustments for non-cash items:
Depreciation and amortization			2,432						2,577
Actuarial (gain) loss on pension and postretirement benefits			384						468
Provision (benefit) for deferred income taxes			(74)						28
Other			1,000						675
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other			1,442						171
Inventories			(34)						274
Accounts payable			98						(1,025)
Accrued expenses			(366)						172
Accrued wages, salaries and employee benefits			(544)						(757)
Customer advances			(126)						(10)
Other assets – net			(201)						(93)
Other liabilities – net			(687)						(1,662)
Net cash provided by (used for) operating activities			6,327						6,912
Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others			(978)						(1,056)
Expenditures for equipment leased to others			(1,137)						(1,613)
Proceeds from disposals of leased assets and property, plant and equipment			772						1,153
Additions to finance receivables			(12,385)						(12,777)
Collections of finance receivables			12,646						12,183
Proceeds from sale of finance receivables			42						235
Investments and acquisitions (net of cash acquired)			(111)						(47)
Proceeds from sale of businesses and investments (net of cash sold)			25						41
Proceeds from sale of securities			345						529
Investments in securities			(638)						(552)
Other – net			(66)						(24)
Net cash provided by (used for) investing activities			(1,485)						(1,928)
Cash flow from financing activities:
Dividends paid			(2,243)						(2,132)
Common stock issued, including treasury shares reissued			229						238
Common shares repurchased			(1,130)						(4,047)
Proceeds from debt issued (original maturities greater than three months)			10,431						9,841
Payments on debt (original maturities greater than three months)			(8,237)						(8,297)
Short-term borrowings – net (original maturities three months or less)			(2,804)						(138)
Other – net			(1)						(3)
Net cash provided by (used for) financing activities			(3,755)						(4,538)
Effect of exchange rate changes on cash			(13)						(44)
Increase (decrease) in cash and short-term investments and restricted cash			1,074						402
Cash and short-term investments and restricted cash at beginning of period			8,292						7,890
Cash and short-term investments and restricted cash at end of period			$	9,366					$	8,292

All short-term investments, which consist primarily of highly liquid investments with original maturities of three months or less, are considered to be cash equivalents.

(more)

---

19

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.

(more)

---

20

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended December 31, 2019

(Unaudited)

(Millions of dollars)

									Supplemental Consolidating Data
			Consolidated						Machinery, Energy & Transportation						Financial Products						Consolidating Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation			$	12,386					$	12,386					$	—					$	—
Revenues of Financial Products			758						—						887						(129)			1
Total sales and revenues			13,144						12,386						887						(129)
Operating costs:
Cost of goods sold			9,117						9,119						—						(2)			2
Selling, general and administrative expenses			1,283						1,120						173						(10)			2
Research and development expenses			386						386						—						—
Interest expense of Financial Products			183						—						187						(4)			3
Other operating (income) expenses			325						12						323						(10)			2
Total operating costs			11,294						10,637						683						(26)
Operating profit			1,850						1,749						204						(103)
Interest expense excluding Financial Products			112						111						—						1			3
Other income (expense)			(373)						(464)						12						79			4
Consolidated profit before taxes			1,365						1,174						216						(25)
Provision (benefit) for income taxes			276						218						58						—
Profit of consolidated companies			1,089						956						158						(25)
Equity in profit (loss) of unconsolidated affiliated companies			8						13						—						(5)			5
Profit of consolidated and affiliated companies			1,097						969						158						(30)
Less: Profit (loss) attributable to noncontrolling interests			(1)						(1)						5						(5)			6
Profit 7			$	1,098					$	970					$	153					$	(25)

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.

(more)

---

21

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.

(more)

---

22

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Twelve Months Ended December 31, 2019

(Unaudited)

(Millions of dollars)

									Supplemental Consolidating Data
			Consolidated						Machinery, Energy & Transportation						Financial Products						Consolidating Adjustments
Sales and revenues:
Sales of Machinery, Energy & Transportation			$	50,755					$	50,755					$	—					$	—
Revenues of Financial Products			3,045						—						3,571						(526)			1
Total sales and revenues			53,800						50,755						3,571						(526)
Operating costs:
Cost of goods sold			36,630						36,634						—						(4)			2
Selling, general and administrative expenses			5,162						4,444						737						(19)			2
Research and development expenses			1,693						1,693						—						—
Interest expense of Financial Products			754						—						786						(32)			3
Other operating (income) expenses			1,271						14						1,297						(40)			2
Total operating costs			45,510						42,785						2,820						(95)
Operating profit			8,290						7,970						751						(431)
Interest expense excluding Financial Products			421						429						—						(8)			3
Other income (expense)			(57)						(535)						80						398			4
Consolidated profit before taxes			7,812						7,006						831						(25)
Provision (benefit) for income taxes			1,746						1,512						234						—
Profit of consolidated companies			6,066						5,494						597						(25)
Equity in profit (loss) of unconsolidated affiliated companies			28						49						—						(21)			5
Profit of consolidated and affiliated companies			6,094						5,543						597						(46)
Less: Profit (loss) attributable to noncontrolling interests			1						—						22						(21)			6
Profit 7			$	6,093					$	5,543					$	575					$	(25)

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.

(more)

---

23

Caterpillar Inc.

Supplemental Data for Financial Position

At December 31, 2020

(Unaudited)

(Millions of dollars)

									Supplemental Consolidating Data
			Consolidated						Machinery, Energy & Transportation						Financial Products						Consolidating Adjustments
Assets
Current assets:
Cash and short-term investments			$	9,352					$	8,822					$	530					$	—
Receivables – trade and other			7,317						3,846						397						3,074			1,2
Receivables – finance			9,463						—						13,681						(4,218)			2
Prepaid expenses and other current assets			1,930						1,376						624						(70)			3
Inventories			11,402						11,402						—						—
Total current assets			39,464						25,446						15,232						(1,214)
Property, plant and equipment – net			12,401						8,309						4,092						—
Long-term receivables – trade and other			1,185						363						164						658			1,2
Long-term receivables – finance			12,222						—						12,895						(673)			2
Noncurrent deferred and refundable income taxes			1,523						2,058						110						(645)			4
Intangible assets			1,308						1,308						—						—
Goodwill			6,394						6,394						—						—
Other assets			3,827						3,158						1,871						(1,202)			5
Total assets			$	78,324					$	47,036					$	34,364					$	(3,076)
Liabilities
Current liabilities:
Short-term borrowings			$	2,015					$	10					$	2,005					$	—
Short-term borrowings with consolidated companies			—						—						1,000						(1,000)			6
Accounts payable			6,128						6,060						212						(144)			7
Accrued expenses			3,642						3,099						543						—
Accrued wages, salaries and employee benefits			1,096						1,081						15						—
Customer advances			1,108						1,108						—						—
Dividends payable			562						562						—						—
Other current liabilities			2,017						1,530						580						(93)			4,8
Long-term debt due within one year			9,149						1,420						7,729						—
Total current liabilities			25,717						14,870						12,084						(1,237)
Long-term debt due after one year			25,999						9,764						16,250						(15)			6
Liability for postemployment benefits			6,872						6,872						—						—
Other liabilities			4,358						3,691						1,385						(718)			4
Total liabilities			62,946						35,197						29,719						(1,970)
Shareholders’ equity
Common stock			6,230						6,230						919						(919)			9
Treasury stock			(25,178)						(25,178)						—						—
Profit employed in the business			35,167						31,091						4,065						11			9
Accumulated other comprehensive income (loss)			(888)						(352)						(536)						—
Noncontrolling interests			47						48						197						(198)			9
Total shareholders’ equity			15,378						11,839						4,645						(1,106)
Total liabilities and shareholders’ equity			$	78,324					$	47,036					$	34,364					$	(3,076)

1			Elimination of receivables between ME&T and Financial Products.
2			Reclassification of ME&T’s trade receivables purchased by Financial Products and Financial Products’ wholesale inventory receivables.
3			Elimination of ME&T's insurance premiums that are prepaid to Financial Products.
4			Reclassification reflecting required netting of deferred tax assets/liabilities by taxing jurisdiction.
5			Elimination of other intercompany assets between ME&T and Financial Products.
6			Elimination of debt between ME&T and Financial Products.
7			Elimination of payables between ME&T and Financial Products.
8			Elimination of prepaid insurance in Financial Products’ other liabilities.
9			Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries.

(more)

---

24

Caterpillar Inc.

Supplemental Data for Financial Position

At December 31, 2019

(Unaudited)

(Millions of dollars)

									Supplemental Consolidating Data
			Consolidated						Machinery, Energy & Transportation						Financial Products						Consolidating Adjustments
Assets
Current assets:
Cash and short-term investments			$	8,284					$	7,299					$	985					$	—
Receivables – trade and other			8,568						3,737						451						4,380			1,2
Receivables – finance			9,336						—						14,489						(5,153)			2
Prepaid expenses and other current assets			1,739						1,290						529						(80)			3
Inventories			11,266						11,266						—						—
Total current assets			39,193						23,592						16,454						(853)
Property, plant and equipment – net			12,904						8,606						4,298						—
Long-term receivables – trade and other			1,193						348						152						693			1,2
Long-term receivables – finance			12,651						—						13,354						(703)			2
Noncurrent deferred and refundable income taxes			1,411						2,002						117						(708)			4
Intangible assets			1,565						1,565						—						—
Goodwill			6,196						6,196						—						—
Other assets			3,340						2,953						1,572						(1,185)			5
Total assets			$	78,453					$	45,262					$	35,947					$	(2,756)
Liabilities
Current liabilities:
Short-term borrowings			$	5,166					$	5					$	5,161					$	—
Short-term borrowings with consolidated companies			—						—						600						(600)			6
Accounts payable			5,957						5,918						212						(173)			7
Accrued expenses			3,750						3,415						335						—
Accrued wages, salaries and employee benefits			1,629						1,580						49						—
Customer advances			1,187						1,187						—						—
Dividends payable			567						567						—						—
Other current liabilities			2,155						1,689						566						(100)			4,8
Long-term debt due within one year			6,210						16						6,194						—
Total current liabilities			26,621						14,377						13,117						(873)
Long-term debt due after one year			26,281						9,151						17,140						(10)			6
Liability for postemployment benefits			6,599						6,599						—						—
Other liabilities			4,323						3,681						1,430						(788)			4
Total liabilities			63,824						33,808						31,687						(1,671)
Shareholders’ equity
Common stock			5,935						5,935						919						(919)			9
Treasury stock			(24,217)						(24,217)						—						—
Profit employed in the business			34,437						30,434						3,997						6			9
Accumulated other comprehensive income (loss)			(1,567)						(739)						(828)						—
Noncontrolling interests			41						41						172						(172)			9
Total shareholders’ equity			14,629						11,454						4,260						(1,085)
Total liabilities and shareholders’ equity			$	78,453					$	45,262					$	35,947					$	(2,756)

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)

---

25

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			384						384						—						—
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			(687)						(694)						(23)						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 and short-term investments and restricted cash			1,074						1,520						(446)						—
Cash and short-term investments and restricted cash at beginning of period			8,292						7,302						990						—
Cash and short-term investments and restricted cash at end of period			$	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.

(more)

---

26

Caterpillar Inc.

Supplemental Data for Cash Flow

For the Twelve Months Ended December 31, 2019

(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			$	6,094					$	5,543					$	597					$	(46)		1,5
Adjustments for non-cash items:
Depreciation and amortization			2,577						1,713						864						—
Actuarial (gain) loss on pension and postretirement benefits			468						468						—						—
Provision (benefit) for deferred income taxes			28						15						13						—
Other			675						435						(215)						455			2
Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables – trade and other			171						4						15						152			2, 3
Inventories			274						250						—						24			2
Accounts payable			(1,025)						(983)						20						(62)			2
Accrued expenses			172						187						(13)						(2)			2
Accrued wages, salaries and employee benefits			(757)						(772)						15						—
Customer advances			(10)						(8)						—						(2)			2
Other assets – net			(93)						(166)						38						35			2
Other liabilities – net			(1,662)						(1,815)						169						(16)			2
Net cash provided by (used for) operating activities			6,912						4,871						1,503						538
Cash flow from investing activities:
Capital expenditures – excluding equipment leased to others			(1,056)						(1,036)						(20)						—
Expenditures for equipment leased to others			(1,613)						(38)						(1,616)						41			2
Proceeds from disposals of leased assets and property, plant and equipment			1,153						164						1,092						(103)			2
Additions to finance receivables			(12,777)						—						(14,270)						1,493			3
Collections of finance receivables			12,183						—						13,537						(1,354)			3
Net intercompany purchased receivables			—						—						640						(640)			3
Proceeds from sale of finance receivables			235						—						235						—
Net intercompany borrowings			—						900						3						(903)			4
Investments and acquisitions (net of cash acquired)			(47)						(47)						—						—
Proceeds from sale of businesses and investments (net of cash sold)			41						3						38						—
Proceeds from sale of securities			529						32						497						—
Investments in securities			(552)						(27)						(525)						—
Other – net			(24)						1						(25)						—
Net cash provided by (used for) investing activities			(1,928)						(48)						(414)						(1,466)
Cash flow from financing activities:
Dividends paid			(2,132)						(2,132)						(25)						25			5
Common stock issued, including treasury shares reissued			238						238						—						—
Common shares repurchased			(4,047)						(4,047)						—						—
Net intercompany borrowings			—						(3)						(900)						903			4
Proceeds from debt issued > 90 days			9,841						1,479						8,362						—
Payments on debt > 90 days			(8,297)						(12)						(8,285)						—
Short-term borrowings – net < 90 days			(138)						5						(143)						—
Other – net			(3)						(3)						—						—
Net cash provided by (used for) financing activities			(4,538)						(4,475)						(991)						928
Effect of exchange rate changes on cash			(44)						(40)						(4)						—
Increase (decrease) in cash and short-term investments and restricted cash			402						308						94						—
Cash and short-term investments and restricted cash at beginning of period			7,890						6,994						896						—
Cash and short-term investments and restricted cash at end of period			$	8,292					$	7,302					$	990					$	—

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

#

Caterpillar Inc. (“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 total 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.

---

Exhibit 99.2

Caterpillar Inc. Rolling 3 Month Retail Sales Statistics

Total Machines

December 2020

November 2020

October 2020

Asia/Pacific

Up 7%

Up 2%

Up 3%

EAME

Down 5%

Down 10%

Down 15%

Latin America

Up 31%

Up 8%

Down 7%

North America

Down 9%

Down 20%

Down 28%

World

Down 2%

Down 11%

Down 17%

Resource Industries

December 2020

November 2020

October 2020

Asia/Pacific

Down 18%

Down 17%

Down 14%

EAME

Up 1%

Unchanged

Down 20%

Latin America

Up 77%

Up 2%

Down 29%

North America

Down 13%

Down 25%

Down 44%

World

Down 3%

Down 13%

Down 29%

Construction Industries

December 2020

November 2020

October 2020

Asia/Pacific

Up 16%

Up 8%

Up 9%

EAME

Down 7%

Down 13%

Down 13%

Latin America

Up 11%

Up 10%

Up 6%

North America

Down 8%

Down 19%

Down 24%

World

Down 1%

Down 9%

Down 13%

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

Energy & Transportation Retail Sales by industry for the 3-month rolling period ended as of the month indicated cocmpared with the same period of the prior year:

December 2020

November 2020

October 2020

Power Gen

Down 10%

Down 9%

Down 6%

Industrial

Down 31%

Down 32%

Down 33%

Transportation

Down 47%

Down 49%

Down 38%

Oil & Gas

Down 29%

Down 26%

Down 27%

Total

Down 25%

Down 24%

Down 22%

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

---

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 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
multi-terrain loaders			· skid steer loaders			medium wheel loaders
· mini, small, medium			· telehandlers			· utility vehicles
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 Total 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 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, quarry, waste and material handling applications. 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			· electronics and control systems
· hard rock vehicles			· wheel tractor scrapers			· select work tools
· large track-type tractors			· wheel dozers			· hard rock continuous mining systems
· 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 Total Machines.

---

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.