Caterpillar Inc.: Files Form 10-Q FQE 30 June 2023

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

• QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
  For the quarterly period ended June 30, 2023
  OR
• TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from	to
Commission File Number: 1-768

CATERPILLAR INC.

(Exact name of registrant as specified in its charter)

Delaware		37-0602744
(State or other jurisdiction of incorporation)	(IRS Employer I.D. No.)
5205 N. O'Connor Boulevard, Suite 100,	Irving, Texas	75039
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: [phone]

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report: N/A

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol (s)	Name of each exchange on which registered
Common Stock ($1.00 par value)	CAT	New York Stock Exchange ¹
5.3% Debentures due September 15, 2035	CAT35	New York Stock Exchange

• In addition to the New York Stock Exchange, Caterpillar common stock is also listed on stock exchanges in France and Switzerland.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

At June 30, 2023, 510,143,097 shares of common stock of the registrant were outstanding.

Table of Contents
	Table of Contents
Part I. Financial Information
Item 1.	Financial Statements	3
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	47
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	76
Item 4.	Controls and Procedures	76
Part II. Other Information
Item 1.	Legal Proceedings	77
Item 1A.	Risk Factors	77
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	77
Item 3.	Defaults Upon Senior Securities	*
Item 4.	Mine Safety Disclosures	*
Item 5.	Other Information	*
Item 6.	Exhibits	78

* Item omitted because no answer is called for or item is not applicable.

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Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

Caterpillar Inc.

Consolidated Statement of Results of Operations

(Unaudited)

(Dollars in millions except per share data)

	Three Months Ended June 30
Sales and revenues:		2023			2022
Sales of Machinery, Energy & Transportation	$	16,545	$	13,539
Revenues of Financial Products		773			708
Total sales and revenues		17,318			14,247
Operating costs:
Cost of goods sold		11,065			9,975
Selling, general and administrative expenses		1,528			1,425
Research and development expenses		528			480
Interest expense of Financial Products		245			120
Other operating (income) expenses		300			303
Total operating costs		13,666			12,303
Operating profit		3,652			1,944
Interest expense excluding Financial Products		127			108
Other income (expense)		127			260
Consolidated profit before taxes		3,652			2,096
Provision (benefit) for income taxes		752			427
Profit of consolidated companies		2,900			1,669
Equity in profit (loss) of unconsolidated affiliated companies		24			4
Profit of consolidated and affiliated companies		2,924			1,673
Less: Profit (loss) attributable to noncontrolling interests		2			-
Profit 1	$	2,922		$	1,673
Profit per common share	$	5.70	$	3.15
Profit per common share - diluted 2	$	5.67	$	3.13
Weighted-average common shares outstanding (millions)
- Basic		512.9			531.0
- Diluted 2		515.0			534.1

• Profit attributable to common shareholders.

• Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

See accompanying notes to Consolidated Financial Statements.

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Caterpillar Inc.

Consolidated Statement of Comprehensive Income

(Unaudited)

(Dollars in millions)

	Three Months Ended June 30
		2023			2022
Profit of consolidated and affiliated companies	$	2,924	$	1,673
Other comprehensive income (loss), net of tax (Note 13):
Foreign currency translation:		(142)			(659)
Pension and other postretirement benefits:		(3)			(1)
Derivative financial instruments:		(41)			(86)
Available-for-sale securities:		(14)			(43)

Total other comprehensive income (loss), net of tax Comprehensive income

Less: comprehensive income attributable to the noncontrolling interests

Comprehensive income attributable to shareholders

	(200)			(789)
	2,724			884
	2			-
$	2,722		$	884

See accompanying notes to Consolidated Financial Statements.

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Caterpillar Inc.

Consolidated Statement of Results of Operations

(Unaudited)

(Dollars in millions except per share data)

	Six Months Ended June 30
Sales and revenues:		2023			2022
Sales of Machinery, Energy & Transportation	$	31,644	$	26,425
Revenues of Financial Products		1,536			1,411
Total sales and revenues		33,180			27,836
Operating costs:
Cost of goods sold		21,168			19,534
Selling, general and administrative expenses		2,991			2,771
Research and development expenses		1,000			937
Interest expense of Financial Products		462			226
Other operating (income) expenses		1,176			569
Total operating costs		26,797			24,037
Operating profit		6,383			3,799
Interest expense excluding Financial Products		256			217
Other income (expense)		159			513
Consolidated profit before taxes		6,286			4,095
Provision (benefit) for income taxes		1,460			896
Profit of consolidated companies		4,826			3,199
Equity in profit (loss) of unconsolidated affiliated companies		40			11
Profit of consolidated and affiliated companies		4,866			3,210
Less: Profit (loss) attributable to noncontrolling interests		1			-
Profit 1	$	4,865		$	3,210
Profit per common share	$	9.46	$	6.03
Profit per common share - diluted 2	$	9.41	$	5.99
Weighted-average common shares outstanding (millions)
- Basic		514.3			532.6
- Diluted 2		517.1			536.1

• Profit attributable to common shareholders.

• Diluted by assumed exercise of stock-based compensation awards using the treasury stock method.

See accompanying notes to Consolidated Financial Statements.

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