Business Segments - Caterpillar's Construction Industries segment focuses on machinery for infrastructure, forestry, and building construction, with significant R&D investment in next-generation construction machines in 2022[12]. - The Resource Industries segment provides high productivity equipment for mining and heavy construction, emphasizing technology products for fleet management and autonomous capabilities[15]. - The Energy & Transportation segment includes a diverse portfolio of products such as reciprocating engines and turbines, with ongoing investments to meet regulatory emissions standards[19]. - Cat Financial, the financial products segment, offers retail and wholesale financing, significantly supporting Caterpillar's sales and generating financing income[22]. - Caterpillar's differentiated product offerings in developing economies, such as SEM brand machines, enhance competitiveness by addressing local customer needs[12]. Financial Performance - Total sales and revenues for 2022 reached $59,427 million, a 16.3% increase from $50,971 million in 2021[273]. - Operating profit for 2022 was $7,904 million, up from $6,878 million in 2021, reflecting a 14.9% growth[273]. - Profit attributable to common shareholders for 2022 was $6,705 million, compared to $6,489 million in 2021, marking a 3.3% increase[273]. - Profit per common share for 2022 was $12.72, up from $11.93 in 2021, reflecting a 6.6% increase[273]. - The company recorded a goodwill impairment charge of $925 million in 2022, which was not present in 2021[273]. Tax and Regulatory Matters - The provision for income taxes for 2022 was $2,067 million, compared to $1,742 million in 2021, indicating an 18.6% increase[273]. - The company recorded a discrete tax benefit of $41 million related to the IRS settlement, which contributed to the overall income tax provision[269]. - The final tax assessed by the IRS for the settlement was $490 million for the ten-year period, primarily paid in 2022 along with associated interest of $250 million[269]. - Changes in effective tax rates due to shifts in earnings mix or tax laws could adversely affect future results of operations[116]. Workforce and Safety - Caterpillar employed about 109,100 full-time employees as of December 31, 2022, an increase from 107,700 in 2021, with 48,200 located in the U.S. and 60,900 outside the U.S.[54]. - The recordable injury frequency rate was 0.44 in 2022, compared to 0.41 in 2021, indicating a slight increase in workplace injuries[48]. - The company has established a peer-to-peer safety mentorship program to enhance safety culture among new hires in manufacturing[48]. - Caterpillar's workforce diversity initiatives include programs to encourage women in engineering roles, particularly in China and India[51]. Economic and Market Conditions - Caterpillar's financial results are affected by general economic conditions, including inflation and market interest rates, impacting financing availability and costs[29]. - The company's operations are significantly affected by global and regional economic conditions, with demand for products being cyclical and potentially reduced during economic downturns[62]. - Infrastructure spending, commercial construction, and housing starts are critical to the company's results, with decreased activity negatively impacting demand for products and services[64]. - Changes in government monetary or fiscal policies, including interest rate fluctuations, could negatively impact sales and create supply chain inefficiencies[71]. Supply Chain and Operations - The company maintains a global strategic sourcing model to ensure timely delivery of raw materials and components, although supply chain disruptions have led to constraints[40]. - Supply chain disruptions, including production challenges at suppliers and transportation delays, have limited the company's ability to meet customer demand, impacting financial performance[70]. - The company is a major user of steel and other commodities, and increases in commodity prices could adversely affect costs and financial results if not offset by price increases or cost reductions[69]. Risks and Challenges - The competitive landscape includes major global competitors in construction machinery and financial services, with Cat Financial facing competition from banks and other manufacturers' financial subsidiaries[28]. - The competitive environment poses risks to sales and pricing, with potential adverse impacts from aggressive pricing strategies by competitors[78]. - Cybersecurity threats pose risks to the company's information technology systems, which could lead to reputational damage and increased costs if not adequately managed[81]. - Labor disputes or union-related issues could negatively impact operations and financial results, with potential strikes or work stoppages affecting production[89]. Financial Position and Assets - Total assets decreased to $81,943 million in 2022 from $82,793 million in 2021, a decline of approximately 1.03%[277]. - Total liabilities slightly decreased to $66,052 million in 2022 from $66,277 million in 2021, a reduction of about 0.34%[277]. - Shareholders' equity decreased to $15,891 million in 2022 from $16,516 million in 2021, representing a decline of approximately 3.80%[277]. - Cash and cash equivalents decreased to $7,004 million in 2022 from $9,254 million in 2021, a decrease of about 24.3%[277]. Investments and Capital Expenditures - Capital expenditures in 2022 were $1,296 million, up from $1,093 million in 2021[284]. - The company repurchased 21,882,818 common shares in 2022, costing $4,230 million[282]. - The company experienced a net cash used for investing activities of $2,541 million in 2022, compared to $3,084 million in 2021[284]. Financial Products and Services - Cat Financial's operations are influenced by the ability of dealers to sell equipment and customer willingness to enter financing agreements, with a focus on managing interest rate and foreign currency risks[29][30]. - The company's financial products segment provides financing to customers and dealers for the purchase and lease of equipment, operating under competitive conditions[287]. - Cat Financial depreciation on equipment leased to others was $718 million in 2022, down from $755 million in 2021 and $758 million in 2020[294]. Compliance and Legal Matters - The company is subject to a complex system of international trade and anti-corruption laws, which may expose it to increased government scrutiny and potential penalties[113]. - The company is involved in various legal proceedings that could lead to adverse effects on its reputation and financial condition[119]. - Stringent environmental laws and regulations impose significant compliance costs, which could negatively impact operations and financial condition[122]. Research and Development - The company emphasizes the importance of low total cost of ownership for customers, driving R&D efforts towards high-quality, productive products[16]. - Research and development expenses for 2022 totaled $1,814 million, an increase from $1,686 million in 2021, representing a 7.6% rise[273]. - The company has made significant investments in research and development to comply with environmental regulations, particularly regarding emissions standards[56].

Caterpillar Inc. (NYSE:CAT) Q4 2022 Results Earnings Conference Call January 31, 2023 8:30 AM ET Company Participants Ryan Fiedler - Vice President, Investor Relations James Umpleby III - Chairman and Chief Executive Officer Andrew Bonfield - Chief Financial Officer Conference Call Participants Mircea Dobre - Robert W. Baird Rob Wertheimer - Melius Research Jamie Cook - Credit Suisse Securities Jerry Revich - Goldman Sachs David Raso - Evercore ISI Institutional Equities Tami Zakaria - J.P. Morgan Securitie ...

Fourth Quarter and Full Year 2022 Financial Review 4Q 2022 EARNINGS RELEASE Forward-Looking Statements Certain statements in this financial review 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 id ...

Table of Contents 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 September 30, 2022 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 jurisd ...

Caterpillar Inc. (NYSE:CAT) Q3 2022 Earnings Conference Call October 27, 2022 8:30 AM ET Company Participants Ryan Fiedler – Vice President-Investor Relations Jim Umpleby – Chairman and Chief Executive Officer Andrew Bonfield – Chief Financial Officer Conference Call Participants Rob Wertheimer – Melius Research Stephen Volkmann – Jefferies David Raso – Evercore Jamie Cook – Credit Suisse Michael Feniger – Bank of America Tim Thein – Citigroup Jerry Revich – Goldman Sachs Stanley Elliott – Stifel Chad Dilla ...

Table of Contents 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, 2022 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 jurisdictio ...

Caterpillar Inc. (NYSE:CAT) Q2 2022 Results Conference Call August 2, 2022 8:30 AM ET Company Participants Ryan Fiedler - Director, Investor Relations Jim Umpleby - Chairman and Chief Executive Officer Andrew Bonfield - Chief Financial Officer Kyle Epley - Vice President, Global Finance Services Rob Rengel - Senior Investor Relations Manager Conference Call Participants Jamie Cook - Credit Suisse Tami Zakaria - JPMorgan Nicole DeBlase - Deutsche Bank David Raso - Evercore Jerry Revich - Goldman Sachs Chad D ...

Company and Industry Key Points **1. Strategic Growth and Focus Areas**: * **Operational Excellence**: Emphasis on safety, quality, lean operations, and competitive cost structure. * **Expanded Offerings**: Development of machines to cater to various customer price points. * **Services**: Target to double services revenue from $14 billion to $28 billion by 2026. * **Sustainability**: Addition of sustainability as a core focus area, driven by energy transition and growing global energy demand. * **Energy Transition**: Opportunities in electric vehicles, mining equipment for commodities, LNG infrastructure, and grid stability. * **Infrastructure**: Opportunities in energy transition investments and infrastructure bill. [1][4][5][6][7][8][9] **2. Market Performance and Outlook**: * **Strong Demand**: Sales increased by more than 20% in 2021 and double-digit growth in the first quarter of 2022. * **Supply Chain Constraints**: Challenge in meeting demand due to supply chain constraints. * **China Market**: Expected to be slightly below 2019 levels due to economic cycle and equipment purchases over the past two years. * **Recession Concerns**: No signs of slowdown in core markets, with strong demand across most sectors. [11][12][13] **3. Business Model and Innovation**: * **Autonomous Mining**: Scaling autonomous mining capabilities from 25 to 10-15 trucks, improving productivity and flexibility. * **Electrification**: Introduction of electric underground loaders and battery-powered machines for mining applications. * **Grid Modernization**: Ability to provide grid stability through reciprocating engine and gas turbine generator sets. * **Remanufacturing**: Positive impact on sustainability and cost reduction. [39][61][32][69] **4. Service and Subscription Model**: * **Service Revenue Target**: Increased confidence in reaching the $28 billion target by 2026. * **Digital Capabilities**: Investments in digital capabilities and AI to enhance service offerings. * **Customer Value Agreements (CVAs)**: 50% of sales with CVAs attached, supporting service growth. [65][66] **5. Mergers and Acquisitions (M&A)**: * **Acquisitions**: Focus on acquiring technologies and capabilities in services, sustainability, and technology. * **Divestitures**: Exiting non-profitable businesses and focusing on areas with better growth potential. [83][86] **6. Financial Performance**: * **Free Cash Flow**: Returned 101% of free cash flow to shareholders over the past three years. * **Profitability**: Met margin targets each year for the last five years, despite challenges like COVID-19. [92]

Table of Contents 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 March 31, 2022 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 jurisdicti ...