Other assets - net............................................                        56                (50) 
Other liabilities - net.........................................                      (116)             (173) 
Net cash provided by (used for) operating activities..........................        1,928             1,130 
Cash flow from investing activities: 
Capital expenditures - excluding equipment leased to others...................        (252)             (305) 
Expenditures for equipment leased to others..............................             (252)             (243) 
Proceeds from disposals of leased assets and property, plant and equipment.........   309               216 
Additions to finance receivables.....................................                 (2,629)           (2,953) 
Collections of finance receivables....................................                2,770             3,153 
Proceeds from sale of finance receivables...............................              5                 31 
Investments and acquisitions (net of cash acquired).........................          (386)             (35) 
Proceeds from sale of businesses and investments (net of cash sold)..............     28                - 
Proceeds from sale of securities......................................                126               68 
Investments in securities..........................................                   (148)             (180) 
Other - net...................................................                        (48)              35 
Net cash provided by (used for) investing activities...........................       (477)             (213) 
Cash flow from financing activities: 
Dividends paid.................................................                       (562)             (567) 
Common stock issued, including treasury shares reissued.....................          65                (23) 
Common shares repurchased........................................                                       (1,043) 
Proceeds from debt issued (original maturities greater than three months): 
Machinery, Energy & Transportation...............................                     494               15 
Financial Products...........................................                         1,779             2,126 
Payments on debt (original maturities greater than three months): 
Machinery, Energy & Transportation...............................                     (644)             (6) 
Financial Products...........................................                         (2,243)           (2,460) 
Short-term borrowings - net (original maturities three months or less)............    1,659             (40) 
Other - net                                                                           (2)               (1) 
Net cash provided by (used for) financing activities..........................        546               (1,999) 
Effect of exchange rate changes on cash..................................             (12)              (80) 
Increase (decrease) in cash and short-term investments and restricted cash........    1,985             (1,162) 
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............... USD 11,351          USD 7,130

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.

See accompanying notes to Consolidated Financial Statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited) 1. A. Nature of operations

Information in our financial statements and related commentary are presented in the following categories:

Machinery, Energy & Transportation (ME&T) - We define ME&T as Caterpillar Inc. and its subsidiaries, excluding Financial Products. ME&T's information relates to the design, manufacturing and marketing of our products.

Financial Products - We define Financial Products as our 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.

B. Basis of presentation

In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated results of operations for the three months ended March 31, 2021 and 2020, (b) the consolidated comprehensive income for the three months ended March 31, 2021 and 2020, (c) the consolidated financial position at March 31, 2021 and December 31, 2020, (d) the consolidated changes in shareholders' equity for the three months ended March 31, 2021 and 2020 and (e) the consolidated cash flow for the three months ended March 31, 2021 and 2020. The financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC).

Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in our company's annual report on Form 10-K for the year ended December 31, 2020 (2020 Form 10-K).

The December 31, 2020 financial position data included herein is derived from the audited consolidated financial statements included in the 2020 Form 10-K but does not include all disclosures required by U.S. GAAP. Certain amounts for prior periods have been reclassified to conform to the current period financial statement presentation.

Cat Financial has end-user customers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support to these entities and therefore have a variable interest, we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. These risks were evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses. See Note 11 for further discussions on a consolidated VIE. 2. New accounting guidance

A. Adoption of new accounting standards

Reference rate reform (Accounting Standards Update (ASU) 2020-04) - In March 2020, the Financial Accounting Standards Board (FASB) issued accounting guidance to ease the potential burden in accounting for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and may be elected over time as reference rate reform activities occur between March 12, 2020 through December 31, 2022. In January 2021, we elected to adopt optional expedients impacting our derivative instruments. We continue to evaluate the impact of reference rate reform on our other contracts and assess the impacts of adopting this guidance on our financial statements.

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We adopted the following ASUs effective January 1, 2021, none of which had a material impact on our financial statements:

ASU Description

2020-01 Investments - Equity securities, equity method and joint ventures and derivatives and hedging

2020-08 Codification improvements - Receivables - Nonrefundable fees and other costs

2021-01 Reference rate reform - Scope

B. Accounting standards issued but not yet adopted

We consider the applicability and impact of all ASUs. We assessed the ASUs and determined that they either were not applicable or were not expected to have a material impact on our financial statements. 3. Sales and revenue contract information

Trade receivables represent amounts due from dealers and end users for the sale of our products. In addition, Cat Financial provides wholesale inventory financing for a dealer's purchase of inventory. We include wholesale inventory receivables in Receivables - trade and other and Long-term receivables - trade and other in the Consolidated Statement of Financial Position. Short-term trade receivables from dealers and end users were USD6,889 million, USD6,310 million and USD7,648 million as of March 31, 2021, December 31, 2020 and December 31, 2019, respectively. We recognize short-term trade receivables from dealers and end users in Receivables - trade and other in the Consolidated Statement of Financial Position. Long-term trade receivables from dealers and end users were USD612 million, USD657 million and USD693 million as of March 31, 2021, December 31, 2020 and December 31, 2019, respectively. We recognize long-term trade receivables from dealers and end users in Long-term receivables - trade and other in the Consolidated Statement of Financial Position.

We invoice in advance of recognizing the sale of certain products. We recognize advanced customer payments as a contract liability in Customer advances and Other liabilities in the Consolidated Statement of Financial Position. Contract liabilities were USD1,584 million, USD1,526 million and USD1,654 million as of March 31, 2021, December 31, 2020 and December 31, 2019, respectively. We reduce the contract liability when revenue is recognized. During the three months ended March 31, 2021 and 2020, we recognized USD433 million and USD368 million of revenue that was recorded as a contract liability at the beginning of 2021 and 2020, respectively.

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