0000018230false00000182302021-07-302021-07-300000018230us-gaap:CommonStockMember2021-07-302021-07-300000018230cat:A8DebenturesDueFebruary152023Member2021-07-302021-07-300000018230cat:A5.3DebenturesDueSeptember152035Member2021-07-302021-07-30

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):

July 30, 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

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 July 30, 2021, Caterpillar Inc. issued a press release reporting its financial results for the quarter ended June 30, 2021. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated into this Item 2.02 by reference.

Item 7.01. Regulation FD Disclosure.

Caterpillar Inc. is furnishing supplemental information concerning (i) retail sales of machines to end users and (ii) retail sales of power systems (including reciprocating and turbine engines and locomotives) to end users and Original Equipment Manufacturers ("OEMs"). This supplemental information is attached hereto as Exhibit 99.2 and incorporated into this Item 7.01 by reference.

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

Item 9.01. Financial Statements and Exhibits.

			(d)			Exhibits:
						The following is furnished as an exhibit to this report:
						99.1			Caterpillar Inc. press release dated July 30, 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.
July 30, 2021			By:			/s/ Suzette M. Long
						Suzette M. Long Chief Legal Officer and General Counsel

Exhibit 99.1

Caterpillar Inc.                                     

2Q 2021 Earnings Release

July 30, 2021

FOR IMMEDIATE RELEASE

Caterpillar Reports Second-Quarter 2021 Results

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

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

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

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

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

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

(more)

---

2

CONSOLIDATED RESULTS

Consolidated Sales and Revenues

The chart above graphically illustrates reasons for the change in consolidated sales and revenues between the second quarter of 2020 (at left) and the second quarter of 2021 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company’s Board of Directors and employees.

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

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

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

(more)

---

3

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

(more)

---

4

Consolidated Operating Profit

The chart above graphically illustrates reasons for the change in consolidated operating profit between the second quarter of 2020 (at left) and the second quarter of 2021 (at right). Caterpillar management utilizes these charts internally to visually communicate with the company’s Board of Directors and employees. The bar titled Other includes consolidating adjustments and Machinery, Energy & Transportation’s other operating (income) expenses.

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

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

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

(more)

---

5

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

Other Profit/Loss and Tax Items

•Other income (expense) in the second quarter of 2021 was income of $201 million, compared with income of $29 million in the second quarter of 2020. The change was primarily due to the absence of remeasurement losses resulting from the settlements of pension obligations that occurred in the second quarter of 2020, as well as favorable pension and other postemployment benefit (OPEB) costs.

•The provision for income taxes for the second quarter of 2021 reflected a lower estimated annual tax rate of 26%, compared with 31% for the second quarter of 2020, excluding the discrete items discussed below. The comparative tax rate for full-year 2020 was approximately 28%. The decrease in the estimated annual tax rate from full-year 2020 was mainly related to changes in the expected geographic mix of profits from a tax perspective for 2021.

In addition, a discrete tax benefit of $17 million was recorded in the second quarter of 2021 for the settlement of stock-based compensation awards with associated tax deductions in excess of cumulative U.S. GAAP compensation expense. A $21 million tax benefit was also recorded in the second quarter of 2020 related to the $122 million of remeasurement losses resulting from the settlements of pension obligations.

(more)

---

6

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

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

▪In North America, sales increased due to higher sales volume and favorable price realization. Higher sales volume was driven by higher end-user demand primarily in residential construction and the impact from changes in dealer inventories. Dealers decreased inventories more during the second quarter of 2020 than during the second quarter of 2021.

▪Sales increased in Latin America mostly due to higher sales volume driven by higher end-user demand across the region for equipment and aftermarket parts and the impact of changes in dealer inventories. Dealers increased inventories during the second quarter of 2021, compared with a decrease during the second quarter of 2020.

▪In EAME, sales increased due to higher sales volume and favorable currency impacts primarily from a stronger euro. Higher sales volume was driven by higher end-user demand and the impact from changes in dealer inventories. Dealers increased inventories during the second quarter of 2021, compared with a decrease during the second quarter of 2020.

▪Sales increased in Asia/Pacific primarily due to favorable currency impacts from a stronger Australian dollar and Chinese yuan and favorable price realization, partially offset by lower sales volume. Lower sales volume was driven by lower end-user demand for equipment, primarily in China, partially offset by the impacts from changes in dealer inventories and higher end-user demand for aftermarket parts. Dealers decreased inventories more during the second quarter of 2020 than during the second quarter of 2021.

(more)

---

7

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

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

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

(more)

---

8

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

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

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

(more)

---

9

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

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

▪Oil and Gas – Sales increased mainly due to higher sales of reciprocating engine aftermarket parts in all regions. The increase was partially offset by lower sales in reciprocating engines used in well servicing applications and turbines and turbine-related services.

▪Power Generation – Sales increased due to higher sales volume in large reciprocating engines, primarily driven by data centers, and reciprocating engine aftermarket parts.

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

▪Transportation – Sales increased in rail services and marine.

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

(more)

---

10

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

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

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

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

Corporate Items and Eliminations

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

(more)

---

11

Notes

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

ii.End-user demand is demonstrated by the company’s Rolling 3 Month Retail Sales Statistics filed in a Form 8-K on Friday, July 30, 2021.

iii.Information on non-GAAP financial measures is included in the appendix on page 13.

iv.Some amounts within this report are rounded to the millions or billions and may not add.

v.Caterpillar will conduct a teleconference and live webcast, with a slide presentation, beginning at 7:30 a.m. Central Time on Friday, July 30, 2021, to discuss its 2021 second-quarter results. The accompanying slides will be available before the webcast on the Caterpillar website at https://investors.caterpillar.com/events-presentations/default.aspx.

About Caterpillar

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

Caterpillar’s latest financial results are also available online:

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

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

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)

---

12

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)

---

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 two significant items in order for the company’s results to be meaningful to readers. These items consist of (i) restructuring costs, which were incurred to generate longer-term benefits and (ii) remeasurement losses resulting from the settlements of pension obligations in the second quarter of 2020. The company does not consider these items indicative of earnings from ongoing business activities and believes the non-GAAP measure provides investors with useful perspective on underlying business results and trends and aids with assessing the company’s period-over-period results. The company intends to discuss adjusted profit per share for the fourth quarter and full-year 2021, excluding mark-to-market gains or losses for remeasurement of pension and other postemployment benefit plans along with any other discrete items.

Reconciliations of adjusted results to the most directly comparable GAAP measure are as follows:

(Dollars in millions except per share data)						Operating Profit						Operating Profit Margin						Profit Before Taxes						Provision (Benefit) for Income Taxes						Effective Tax Rate						Profit						Profit per Share
Three Months Ended June 30, 2021 - U.S. GAAP						$	1,789					13.9		%				$	1,870					$	470					25.1		%				$	1,413					$	2.56
Restructuring costs						25						0.2		%				25						3						15.0		%				22						$	0.04
Three Months Ended June 30, 2021 - Adjusted						$	1,814					14.1		%				$	1,895					$	473					25.0		%				$	1,435					$	2.60
Three Months Ended June 30, 2020 - U.S. GAAP						$	784					7.8		%				$	678					$	227					33.5		%				$	458					$	0.84
Restructuring costs						147						1.5		%				147						15						10.2		%				132						$	0.24
Remeasurement losses of pension obligations						—						—		%				122						21						17.2		%				101						$	0.19
Three Months Ended June 30, 2020 - Adjusted						$	931					9.3		%				$	947					$	263					27.8		%				$	691					$	1.27

Supplemental Consolidating Data

The company is providing supplemental consolidating data for the purpose of additional analysis. The data has been grouped as follows:

Consolidated – Caterpillar Inc. and its subsidiaries.

Machinery, Energy & Transportation (ME&T) – The company defines ME&T as it is presented in the supplemental data as Caterpillar Inc. and its subsidiaries, excluding Financial Products. ME&T’s information relates to the design, manufacturing and marketing of its products.

Financial Products – The company defines Financial Products as it is presented in the supplemental data as its finance and insurance subsidiaries, primarily Caterpillar Financial Services Corporation (Cat Financial) and Caterpillar Insurance Holdings Inc. (Insurance Services). Financial Products’ information relates to the financing to customers and dealers for the purchase and lease of Caterpillar and other equipment.

Consolidating Adjustments – Eliminations of transactions between ME&T and Financial Products.

(more)

---

14

The nature of the ME&T and Financial Products businesses is different, especially with regard to the financial position and cash flow items. Caterpillar management utilizes this presentation internally to highlight these differences. The company believes this presentation will assist readers in understanding its business.

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

(more)

---

15

Caterpillar Inc.

Condensed Consolidated Statement of Results of Operations

(Unaudited)

(Dollars in millions except per share data)

			Three Months Ended June 30,												Six Months Ended June 30,
			2021						2020						2021						2020
Sales and revenues:
Sales of Machinery, Energy & Transportation			$	12,193					$	9,310					$	23,384					$	19,224
Revenues of Financial Products			696						687						1,392						1,408
Total sales and revenues			12,889						9,997						24,776						20,632
Operating costs:
Cost of goods sold			8,881						7,113						16,893						14,379
Selling, general and administrative expenses			1,364						1,179						2,603						2,300
Research and development expenses			446						341						820						697
Interest expense of Financial Products			116						149						241						324
Other operating (income) expenses			293						431						616						744
Total operating costs			11,100						9,213						21,173						18,444
Operating profit			1,789						784						3,603						2,188
Interest expense excluding Financial Products			120						135						262						248
Other income (expense)			201						29						526						251
Consolidated profit before taxes			1,870						678						3,867						2,191
Provision (benefit) for income taxes			470						227						945						652
Profit of consolidated companies			1,400						451						2,922						1,539
Equity in profit (loss) of unconsolidated affiliated companies			14						8						23						13
Profit of consolidated and affiliated companies			1,414						459						2,945						1,552
Less: Profit (loss) attributable to noncontrolling interests			1						1						2						2
Profit 1			$	1,413					$	458					$	2,943					$	1,550
Profit per common share			$	2.58					$	0.84					$	5.38					$	2.85
Profit per common share — diluted 2			$	2.56					$	0.84					$	5.33					$	2.83
Weighted-average common shares outstanding (millions)
– Basic			547.9						541.5						547.1						544.5
– Diluted 2			552.1						544.5						551.8						548.2

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

(more)

---

16

Caterpillar Inc.

Condensed Consolidated Statement of Financial Position

(Unaudited)

(Millions of dollars)

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

(more)

---

17

Caterpillar Inc.

Condensed Consolidated Statement of Cash Flow

(Unaudited)

(Millions of dollars)

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

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

(more)

---

18

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended June 30, 2021

(Unaudited)

(Millions of dollars)

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

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

(more)

---

19

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Three Months Ended June 30, 2020

(Unaudited)

(Millions of dollars)

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

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

(more)

---

20

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Six Months Ended June 30, 2021

(Unaudited)

(Millions of dollars)

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

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

(more)

---

21

Caterpillar Inc.

Supplemental Data for Results of Operations

For the Six Months Ended June 30, 2020

(Unaudited)

(Millions of dollars)

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

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

(more)

---

22

Caterpillar Inc.

Supplemental Data for Financial Position

At June 30, 2021

(Unaudited)

(Millions of dollars)

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

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

(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 Cash Flow

For the Six Months Ended June 30, 2021

(Unaudited)

(Millions of dollars)

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

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

(more)

---

25

Caterpillar Inc.

Supplemental Data for Cash Flow

For the Six Months Ended June 30, 2020

(Unaudited)

(Millions of dollars)

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

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

#

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.

---

Caterpillar Inc. Quarterly Retail Sales Statistics

Machines and E&T Combined

2nd Quarter 2021

1st Quarter 2021

4th Quarter 2020

3rd Quarter 2020

World

UP 15%

UP 8%

DOWN 10%

DOWN 22%

Machines

2nd Quarter 2021

1st Quarter 2021

4th Quarter 2020

3rd Quarter 2020

Asia/Pacific

UP 1%

UP 27%

UP 7%

UNCHANGED

EAME

UP 16%

UP 5%

DOWN 5%

DOWN 13%

Latin America

UP 55%

UP 54%

UP 31%

DOWN 17%

North America

UP 32%

DOWN 1%

DOWN 9%

DOWN 31%

World

UP 20%

UP 13%

DOWN 2%

DOWN 20%

Resource Industries (RI)

2nd Quarter 2021

1st Quarter 2021

4th Quarter 2020

3rd Quarter 2020

Asia/Pacific

UP 31%

UP 1%

DOWN 18%

DOWN 10%

EAME

DOWN 9%

DOWN 9%

UP 1%

DOWN 13%

Latin America

UP 23%

UP 85%

UP 77%

DOWN 54%

North America

UP 44%

DOWN 21%

DOWN 13%

DOWN 46%

World

UP 21%

UNCHANGED

DOWN 3%

DOWN 31%

Construction Industries (CI)

2nd Quarter 2021

1st Quarter 2021

4th Quarter 2020

3rd Quarter 2020

Asia/Pacific

DOWN 7%

UP 36%

UP 16%

UP 4%

EAME

UP 27%

UP 11%

DOWN 7%

DOWN 13%

Latin America

UP 76%

UP 38%

UP 11%

UP 10%

North America

UP 30%

UP 5%

DOWN 8%

DOWN 27%

World

UP 20%

UP 17%

DOWN 1%

DOWN 15%

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)

2nd Quarter 2021

1st Quarter 2021

4th Quarter 2020

3rd Quarter 2020

Power Gen

DOWN 6%

UP 7%

DOWN 10%

DOWN 6%

Industrial

UP 44%

DOWN 4%

DOWN 31%

DOWN 39%

Transportation

UP 5%

DOWN 40%

DOWN 47%

DOWN 15%

Oil & Gas

DOWN 6%

DOWN 9%

DOWN 29%

DOWN 42%

Total

UP 1%

DOWN 5%

DOWN 25%

DOWN 27%

Reported in 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 machine sales in this segment are made in the heavy and general construction, rental, quarry and aggregates markets and mining. The Construction Industries product portfolio primarily includes the following machines:

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

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

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

Energy & Transportation: Our Energy & Transportation segment is primarily responsible for supporting customers using reciprocating engines, 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, 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			· autonomous ready vehicles and
· hard rock vehicles			· wheel tractor scrapers			solutions
· large track-type tractors			· wheel dozers			· select work tools
· 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.

---

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.