GLOSSARY OF TERMS 1. Cat Production System (CPS) - The Caterpillar
Production System is the common Order-to-Delivery process being
implemented enterprise- wide to achieve our safety, quality and
velocity goals for 2010 and beyond. 2. Consolidating Adjustments -
Eliminations of transactions between Machinery and Engines and
Financial Products. 3. Core Operating Costs - Machinery and Engines
variable manufacturing cost change adjusted for volume and change
in period costs. Excludes the impact of currency. 4. Currency -
With respect to sales and revenues, currency represents the
translation impact on sales resulting from changes in foreign
currency exchange rates versus the U.S. dollar. With respect to
operating profit, currency represents the net translation impact on
sales and operating costs resulting from changes in foreign
currency exchange rates versus the U.S. dollar. Currency includes
the impacts on sales and operating profit for the Machinery and
Engines lines of business only; currency impacts on Financial
Products revenues and operating profit are included in the
Financial Products portions of the respective analyses. With
respect to other income/expense, currency represents the effects of
forward and option contracts entered into by the company to reduce
the risk of fluctuations in exchange rates and the net effect of
changes in foreign currency exchange rates on our foreign currency
assets and liabilities for consolidated results. 5. Diversified
Service Businesses - A service business or a business containing an
important service component. These businesses include, but are not
limited to, aftermarket parts, Cat Financial, Cat Insurance, Cat
Logistics, Cat Reman, Progress Rail, OEM Solutions and Solar
Turbine Customer Services. 6. EAME - Geographic region including
Europe, Africa, the Middle East and the Commonwealth of Independent
States (CIS). 7. Earning Assets - These assets consist primarily of
total finance receivables net of unearned income, plus equipment on
operating leases, less accumulated depreciation at Cat Financial.
8. Engines - A principal line of business including the design,
manufacture, marketing and sales of engines for Caterpillar
machinery; electric power generation systems; on-highway vehicles
and locomotives; marine, petroleum, construction, industrial,
agricultural and other applications; and related parts. Also
includes remanufacturing of Caterpillar engines and a variety of
Caterpillar machine and engine components and remanufacturing
services for other companies. Reciprocating engines meet power
needs ranging from 5 to 21,500 horsepower (4 to more than 16 000
kilowatts). Turbines range from 1,600 to 20,500 horsepower (1 200
to 15 000 kilowatts). 9. Financial Products - A principal line of
business consisting primarily of Caterpillar Financial Services
Corporation (Cat Financial), Caterpillar Insurance Holdings, Inc.
(Cat Insurance), Caterpillar Power Ventures Corporation (Cat Power
Ventures) and their respective subsidiaries. Cat Financial provides
a wide range of financing alternatives to customers and dealers for
Caterpillar machinery and engines, Solar gas turbines as well as
other equipment and marine vessels. Cat Financial also extends
loans to customers and dealers. Cat Insurance provides various
forms of insurance to customers and dealers to help support the
purchase and lease of our equipment. Cat Power Ventures is an
investor in independent power projects using Caterpillar power
generation equipment and services. 10. Latin America - Geographic
region including Central and South American countries and Mexico.
11. Machinery - A principal line of business which includes the
design, manufacture, marketing and sales of construction, mining
and forestry machinery-track and wheel tractors, track and wheel
loaders, pipelayers, motor graders, wheel tractor-scrapers, track
and wheel excavators, backhoe loaders, log skidders, log loaders,
off-highway trucks, articulated trucks, paving products, skid steer
loaders and related parts. Also includes logistics services for
other companies and the design, manufacture, remanufacture,
maintenance and services of rail-related products. 12. Machinery
and Engines (M&E) - Due to the highly integrated nature of
operations, it represents the aggregate total of the Machinery and
Engines lines of business and includes primarily our manufacturing,
marketing and parts distribution operations. 13. Manufacturing
Costs - Manufacturing costs represent the volume- adjusted change
for variable costs and the absolute dollar change for period
manufacturing costs. Variable manufacturing costs are defined as
having a direct relationship with the volume of production. This
includes material costs, direct labor and other costs that vary
directly with production volume such as freight, power to operate
machines and supplies that are consumed in the manufacturing
process. Period manufacturing costs support production but are
defined as generally not having a direct relationship to short-term
changes in volume. Examples include machine and equipment repair,
depreciation on manufacturing assets, facility support,
procurement, factory scheduling, manufacturing planning and
operations management. 14. M&E Other Operating Expenses -
Comprised primarily of gains (losses) on disposal of long-lived
assets, long-lived asset impairment charges and impairment of
goodwill. 15. Operating Profit - Sales and revenues minus operating
costs. 16. Period Costs - Comprised of Machinery and Engines period
manufacturing costs, SG&A expense and R&D expense. 17.
Price Realization - The impact of net price changes excluding
currency and new product introductions. Consolidated price
realization includes the impact of changes in the relative
weighting of sales between geographic regions. 18. Profit -
Consolidated profit before taxes less provision for income taxes
plus equity in profit (loss) of unconsolidated affiliated
companies. 19. Sales Volume - With respect to sales and revenues,
sales volume represents the impact of changes in the quantities
sold for machines, engines and parts as well as the incremental
revenue impact of new product introductions. With respect to
operating profit, sales volume represents the impact of changes in
the quantities sold for machines, engines and parts combined with
product mix-the net operating profit impact of changes in the
relative weighting of machines, engines and parts sales with
respect to total sales. 20. 6 Sigma - On a technical level, 6 Sigma
represents a measure of variation that achieves 3.4 defects per
million opportunities. At Caterpillar, 6 Sigma represents a much
broader cultural philosophy to drive continuous improvement
throughout the value chain. It is a fact-based, data-driven
methodology that we are using to improve processes, enhance
quality, cut costs, grow our business and deliver greater value to
our customers through Black Belt-led project teams. At Caterpillar,
6 Sigma goes beyond mere process improvement-it has become the way
we work as teams to process business information, solve problems
and manage our business successfully. NON-GAAP FINANCIAL MEASURES
The following definition is provided for "non-GAAP financial
measures" in connection with Regulation G issued by the Securities
and Exchange Commission. This non-GAAP financial measure has no
standardized meaning prescribed by U.S. GAAP and therefore is
unlikely to be comparable to the calculation of similar measures
for other companies. Management does not intend this item to be
considered in isolation or as a substitute for the related GAAP
measure. MACHINERY AND ENGINES Caterpillar defines Machinery and
Engines as it is presented in the supplemental data as Caterpillar
Inc. and its subsidiaries with Financial Products accounted for on
the equity basis. Machinery and Engines information relates to the
design, manufacture and marketing of our products. Financial
Products information relates to the financing to customers and
dealers for the purchase and lease of Caterpillar and other
equipment. The nature of these businesses is different, especially
with regard to the financial position and cash flow items.
Caterpillar management utilizes this presentation internally to
highlight these differences. We also believe this presentation will
assist readers in understanding our business. Pages 29-34 reconcile
Machinery and Engines with Financial Products on the equity basis
to Caterpillar Inc. Consolidated financial information. SAFE HARBOR
Certain statements in this release relate to future events and
expectations and as such constitute forward-looking statements
involving known and unknown factors that may cause actual results
of Caterpillar Inc. to be different from those expressed or implied
in the forward-looking statements. In this context, words such as
"will", "expect", "anticipate" or other similar words and phrases
often identify forward-looking statements made on behalf of
Caterpillar. It is important to note that actual results of the
company may differ materially from those described or implied in
such forward-looking statements based on a number of factors and
uncertainties, including, but not limited to, changes in economic
conditions; currency exchange or interest rates; political
stability; market acceptance of the company's products and
services; significant changes in the competitive environment;
epidemic diseases; changes in law, regulations and tax rates; and
other general economic, business and financing conditions and
factors described in more detail in the company's Form 10-K filed
with the Securities and Exchange Commission on February 23, 2007.
This filing is available on our website at
http://www.cat.com/sec_filings. We do not undertake to update our
forward-looking statements. Caterpillar's latest financial results
and current outlook are also available via: Telephone: (800)
228-7717 (Inside the United States and Canada) (858) 244-2080
(Outside the United States and Canada) Internet:
http://www.cat.com/investor http://www.cat.com/irwebcast (live
broadcast/replays of quarterly conference call) Caterpillar Inc.
Condensed Consolidated Statement of Results of Operations
(Unaudited) (Dollars in millions except per share data) Three
Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006
Sales and revenues: Sales of Machinery and Engines $10,613 $9,956
$19,934 $18,699 Revenues of Financial Products 743 649 1,438 1,298
Total sales and revenues 11,356 10,605 21,372 19,997 Operating
costs: Cost of goods sold 8,300 7,416 15,436 13,968 Selling,
general and administrative expenses 968 881 1,858 1,702 Research
and development expenses 350 343 690 650 Interest expense of
Financial Products 279 256 550 488 Other operating expenses 246 230
485 492 Total operating costs 10,143 9,126 19,019 17,300 Operating
profit 1,213 1,479 2,353 2,697 Interest expense excluding Financial
Products 80 66 159 134 Other income (expense) 70 50 181 93
Consolidated profit before taxes 1,203 1,463 2,375 2,656 Provision
for income taxes 385 449 760 819 Profit of consolidated companies
818 1,014 1,615 1,837 Equity in profit (loss) of unconsolidated
affiliated companies 5 32 24 49 Profit $823 $1,046 $1,639 $1,886
Profit per common share $1.28 $1.58 $2.55 $2.83 Profit per common
share - diluted (1) $1.24 $1.52 $2.47 $2.72 Weighted average common
shares outstanding (millions) - Basic 640.5 662.1 642.4 666.7 -
Diluted (1) 662.8 688.5 664.3 693.8 Cash dividends declared per
common share $.66 $.55 $.66 $.55 (1) Diluted by assumed exercise of
stock-based compensation awards using the treasury stock method.
Caterpillar Inc. Condensed Consolidated Statement of Financial
Position (Unaudited) (Millions of dollars) Assets June 30, Dec. 31,
Current assets: 2007 2006 Cash and short-term investments $562 $530
Receivables - trade and other 7,835 8,607 Receivables - finance
6,821 6,804 Deferred and refundable income taxes 1,055 733 Prepaid
expenses and other current assets 751 638 Inventories 7,106 6,351
Total current assets 24,130 23,663 Property, plant and equipment -
net 9,127 8,851 Long-term receivables - trade and other 706 860
Long-term receivables - finance 12,711 11,531 Investments in
unconsolidated affiliated companies 551 562 Noncurrent deferred and
refundable income taxes 2,111 1,949 Intangible assets 467 387
Goodwill 1,937 1,904 Other assets 1,766 1,742 Total assets $53,506
$51,449 Liabilities Current liabilities: Short-term borrowings: --
Machinery and Engines $436 $165 -- Financial Products 5,280 4,990
Accounts payable 4,130 4,085 Accrued expenses 2,952 2,923 Accrued
wages, salaries and employee benefits 814 938 Customer advances
1,275 921 Dividends payable 230 194 Other current liabilities 803
1,145 Long-term debt due within one year: -- Machinery and Engines
469 418 -- Financial Products 3,416 4,043 Total current liabilities
19,805 19,822 Long-term debt due after one year: -- Machinery and
Engines 3,670 3,694 -- Financial Products 14,285 13,986 Liability
for postemployment benefits 5,906 5,879 Other liabilities 2,009
1,209 Total liabilities 45,675 44,590 Stockholders' equity Common
stock 2,655 2,465 Treasury stock (8,154) (7,352) Profit employed in
the business 15,951 14,593 Accumulated other comprehensive income
(2,621) (2,847) Total stockholders' equity 7,831 6,859 Total
liabilities and stockholders' equity $53,506 $51,449 Certain
amounts for prior periods have been reclassified to conform to the
current period financial statement presentation. Caterpillar Inc.
Condensed Consolidated Statement of Cash Flow (Unaudited) (Millions
of dollars) Six Months Ended June 30, Cash flow from operating
activities: 2007 2006 Profit $1,639 $1,886 Adjustments for non-cash
items: Depreciation and amortization 849 802 Other 71 94 Changes in
assets and liabilities: Receivables - trade and other 987 (762)
Inventories (691) (755) Accounts payable and accrued expenses (46)
356 Other assets - net (300) 23 Other liabilities - net 727 277 Net
cash provided by (used for) operating activities 3,236 1,921 Cash
flow from investing activities: Capital expenditures - excluding
equipment leased to others (582) (552) Expenditures for equipment
leased to others (621) (532) Proceeds from disposals of property,
plant and equipment 208 319 Additions to finance receivables
(6,356) (5,114) Collections of finance receivables 5,233 4,079
Proceeds from the sale of finance receivables 84 980 Investments
and acquisitions (net of cash acquired) (174) (419) Proceeds from
sale of available-for-sale securities 119 219 Investments in
available-for-sale securities (217) (296) Other - net 285 167 Net
cash provided by (used for) investing activities (2,021) (1,149)
Cash flow from financing activities: Dividends paid (386) (335)
Common stock issued, including treasury shares reissued 223 349
Treasury shares purchased (1,017) (2,411) Excess tax benefit from
stock-based compensation 97 147 Proceeds from debt issued (original
maturities greater than three months) 5,259 5,033 Payments on debt
(original maturities greater than three months) (5,453) (5,595)
Short-term borrowings (original maturities three months or
less)--net 86 1,564 Net cash provided by (used for) financing
activities (1,191) (1,248) Effect of exchange rate changes on cash
8 16 Increase (decrease) in cash and short-term investments 32
(460) Cash and short-term investments at beginning of period 530
1,108 Cash and short-term investments at end of period $562 $648
Certain amounts for prior periods have been reclassified to conform
to the current period financial statement presentation. 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. Caterpillar Inc. Supplemental
Data for Results of Operations For The Three Months Ended June 30,
2007 (Unaudited) (Millions of dollars) Supplemental Consolidating
Data Machinery Financial Consolidating Consolidated and Engines(1)
Products Adjustments Sales and revenues: Sales of Machinery and
Engines $10,613 $10,613 $-- $-- Revenues of Financial Products 743
-- 846 (103)(2) Total sales and revenues 11,356 10,613 846 (103)
Operating costs: Cost of goods sold 8,300 8,300 -- -- Selling,
general and administrative expenses 968 853 120 (5)(3) Research and
development expenses 350 350 -- -- Interest expense of Financial
Products 279 -- 279 -- Other operating expenses 246 (10) 263 (7)(3)
Total operating costs 10,143 9,493 662 (12) Operating profit 1,213
1,120 184 (91) Interest expense excluding Financial Products 80 83
-- (3)(4) Other income (expense) 70 (36) 18 88(5) Consolidated
profit before taxes 1,203 1,001 202 -- Provision for income taxes
385 316 69 -- Profit of consolidated companies 818 685 133 --
Equity in profit (loss) of unconsolidated affiliated companies 5 4
1 -- Equity in profit of Financial Products' subsidiaries -- 134 --
(134)(6) Profit $823 $823 $134 $(134) (1) Represents Caterpillar
Inc. and its subsidiaries with Financial Products accounted for on
the equity basis. (2) Elimination of Financial Products' revenues
earned from Machinery and Engines. (3) Elimination of net expenses
recorded by Machinery and Engines paid to Financial Products. (4)
Elimination of interest expense recorded between Financial Products
and Machinery and Engines. (5) Elimination of discount recorded by
Machinery and Engines on receivables sold to Financial Products and
of interest earned between Machinery and Engines and Financial
Products. (6) Elimination of Financial Products' profit due to
equity method of accounting. Caterpillar Inc. Supplemental Data for
Results of Operations For The Three Months Ended June 30, 2006
(Unaudited) (Millions of dollars) Supplemental Consolidating Data
Machinery Financial Consolidating Consolidated and Engines(1)
Products Adjustments Sales and revenues: Sales of Machinery and
Engines $9,956 $9,956 $-- $-- Revenues of Financial Products 649 --
768 (119)(2) Total sales and revenues 10,605 9,956 768 (119)
Operating costs: Cost of goods sold 7,416 7,416 -- -- Selling,
general and administrative expenses 881 777 113 (9)(3) Research and
development expenses 343 343 -- -- Interest expense of Financial
Products 256 -- 259 (3)(4) Other operating expenses 230 (1) 239
(8)(3) Total operating costs 9,126 8,535 611 (20) Operating profit
1,479 1,421 157 (99) Interest expense excluding Financial Products
66 70 -- (4)(4) Other income (expense) 50 (80) 35 95(5)
Consolidated profit before taxes 1,463 1,271 192 -- Provision for
income taxes 449 384 65 -- Profit of consolidated companies 1,014
887 127 -- Equity in profit (loss) of unconsolidated affiliated
companies 32 32 -- -- Equity in profit of Financial Products'
subsidiaries -- 127 -- (127)(6) Profit $1,046 $1,046 $127 $(127)
(1) Represents Caterpillar Inc. and its subsidiaries with Financial
Products accounted for on the equity basis. (2) Elimination of
Financial Products' revenues earned from Machinery and Engines. (3)
Elimination of net expenses recorded by Machinery and Engines paid
to Financial Products. (4) Elimination of interest expense recorded
between Financial Products and Machinery and Engines. (5)
Elimination of discount recorded by Machinery and Engines on
receivables sold to Financial Products and of interest earned
between Machinery and Engines and Financial Products. (6)
Elimination of Financial Products' profit due to equity method of
accounting. Caterpillar Inc. Supplemental Data for Results of
Operations For The Six Months Ended June 30, 2007 (Unaudited)
(Millions of dollars) Supplemental Consolidating Data Machinery
Financial Consolidating Consolidated and Engines(1) Products
Adjustments Sales and revenues: Sales of Machinery and Engines
$19,934 $19,934 $-- $-- Revenues of Financial Products 1,438 --
1,645 (207)(2) Total sales and revenues 21,372 19,934 1,645 (207)
Operating costs: Cost of goods sold 15,436 15,436 -- -- Selling,
general and administrative expenses 1,858 1,638 230 (10)(3)
Research and development expenses 690 690 -- -- Interest expense of
Financial Products 550 -- 551 (1)(4) Other operating expenses 485
(14) 513 (14)(3) Total operating costs 19,019 17,750 1,294 (25)
Operating profit 2,353 2,184 351 (182) Interest expense excluding
Financial Products 159 163 -- (4)(4) Other income (expense) 181
(36) 39 178(5) Consolidated profit before taxes 2,375 1,985 390 --
Provision for income taxes 760 629 131 -- Profit of consolidated
companies 1,615 1,356 259 -- Equity in profit (loss) of
unconsolidated affiliated companies 24 22 2 -- Equity in profit of
Financial Products' subsidiaries -- 261 -- (261)(6) Profit $1,639
$1,639 $261 $(261) (1) Represents Caterpillar Inc. and its
subsidiaries with Financial Products accounted for on the equity
basis. (2) Elimination of Financial Products' revenues earned from
Machinery and Engines. (3) Elimination of net expenses recorded by
Machinery and Engines paid to Financial Products. (4) Elimination
of interest expense recorded between Financial Products and
Machinery and Engines. (5) Elimination of discount recorded by
Machinery and Engines on receivables sold to Financial Products and
of interest earned between Machinery and Engines and Financial
Products. (6) Elimination of Financial Products' profit due to
equity method of accounting. Caterpillar Inc. Supplemental Data for
Results of Operations For The Six Months Ended June 30, 2006
(Unaudited) (Millions of dollars) Supplemental Consolidating Data
Machinery Financial Consolidating Consolidated and Engines(1)
Products Adjustments Sales and revenues: Sales of Machinery and
Engines $18,699 $18,699 $-- $-- Revenues of Financial Products
1,298 -- 1,514 (216)(2) Total sales and revenues 19,997 18,699
1,514 (216) Operating costs: Cost of goods sold 13,968 13,968 -- --
Selling, general and administrative expenses 1,702 1,501 216
(15)(3) Research and development expenses 650 650 -- -- Interest
expense of Financial Products 488 -- 492 (4)(4) Other operating
expenses 492 28 479 (15)(3) Total operating costs 17,300 16,147
1,187 (34) Operating profit 2,697 2,552 327 (182) Interest expense
excluding Financial Products 134 138 -- (4)(4) Other income
(expense) 93 (131) 46 178(5) Consolidated profit before taxes 2,656
2,283 373 -- Provision for income taxes 819 693 126 -- Profit of
consolidated companies 1,837 1,590 247 -- Equity in profit (loss)
of unconsolidated affiliated companies 49 48 1 -- Equity in profit
of Financial Products' subsidiaries -- 248 -- (248)(6) Profit
$1,886 $1,886 $248 $(248) (1) Represents Caterpillar Inc. and its
subsidiaries with Financial Products accounted for on the equity
basis. (2) Elimination of Financial Products' revenues earned from
Machinery and Engines. (3) Elimination of net expenses recorded by
Machinery and Engines paid to Financial Products. (4) Elimination
of interest expense recorded between Financial Products and
Machinery and Engines. (5) Elimination of discount recorded by
Machinery and Engines on receivables sold to Financial Products and
of interest earned between Machinery and Engines and Financial
Products. (6) Elimination of Financial Products' profit due to
equity method of accounting. Caterpillar Inc. Supplemental Data for
Cash Flow For The Six Months Ended June 30, 2007 (Unaudited)
(Millions of dollars) Supplemental Consolidating Data Machinery
Financial Consolidating Consolidated and Engines(1) Products
Adjustments Cash flow from operating activities: Profit $1,639
$1,639 $261 $(261)(2) Adjustments for non-cash items: Depreciation
and amortization 849 512 337 -- Undistributed profit of Financial
Products -- (261) -- 261(3) Other 71 47 (146) 170(4) Changes in
assets and liabilities: Receivables - trade and other 987 (57) (20)
1,064(4/5) Inventories (691) (691) -- -- Accounts payable and
accrued expenses (46) (146) 36 64(4) Other assets - net (300) (255)
2 (47)(4) Other liabilities - net 727 689 8 30(4) Net cash provided
by (used for) operating activities 3,236 1,477 478 1,281 Cash flow
from investing activities: Capital expenditures - excluding
equipment leased to others (582) (575) (7) -- Expenditures for
equipment leased to others (621) -- (627) 6(4) Proceeds from
disposals of property, plant and equipment 208 13 196 (1)(4)
Additions to finance receivables (6,356) -- (17,369) 11,013(5)
Collections of finance receivables 5,233 -- 16,846 (11,613)(5)
Proceeds from the sale of finance receivables 84 -- 777 (693)(5)
Net intercompany borrowings -- 35 (29) (6)(6) Investments and
acquisitions (net of cash acquired) (174) (181) -- 7(7) Proceeds
from sale of available-for-sale securities 119 7 112 -- Investments
in available-for-sale securities (217) (8) (209) -- Other - net 285
81 206 (2)(7) Net cash provided by (used for) investing activities
(2,021) (628) (104) (1,289) Cash flow from financing activities:
Dividends paid (386) (386) -- -- Common stock issued, including
treasury shares reissued 223 223 (2) 2(7) Treasury shares purchased
(1,017) (1,017) -- -- Excess tax benefit from stock-based
compensation 97 97 -- -- Net intercompany borrowings -- 29 (35)
6(6) Proceeds from debt issued (original maturities greater than
three months) 5,259 43 5,216 -- Payments on debt (original
maturities greater than three months) (5,453) (49) (5,404) --
Short-term borrowings (original maturities three months or
less)--net 86 267 (181) -- Net cash provided by (used for)
financing activities (1,191) (793) (406) 8 Effect of exchange rate
changes on cash 8 4 4 -- Increase (decrease) in cash and short-term
investments 32 60 (28) -- Cash and short-term investments at
beginning of period 530 319 211 -- Cash and short-term investments
at end of period $562 $379 $183 $-- (1) Represents Caterpillar Inc.
and its subsidiaries with Financial Products accounted for on the
equity basis. (2) Elimination of Financial Products' profit after
tax due to equity method of accounting. (3) Non-cash adjustment for
the undistributed earnings from Financial Products. (4) Elimination
of non-cash adjustments and changes in assets and liabilities
related to consolidated reporting. (5) Reclassification of Cat
Financial's cash flow activity from investing to operating for
receivables that arose from the sale of inventory. (6) Net proceeds
and payments to/from Machinery and Engines and Financial Products.
(7) Change in investment and common stock related to Financial
Products. Caterpillar Inc. Supplemental Data for Cash Flow For The
Six Months Ended June 30, 2006 (Unaudited) (Millions of dollars)
Supplemental Consolidating Data Machinery Financial Consolidating
Consolidated and Engines(1) Products Adjustments Cash flow from
operating activities: Profit $1,886 $1,886 $248 $(248)(2)
Adjustments for non-cash items: Depreciation and amortization 802
470 332 -- Undistributed profit of Financial Products -- (248) --
248(3) Other 94 90 (186) 190(4) Changes in assets and liabilities:
Receivables - trade and other (762) (53) 7 (716)(4,5) Inventories
(755) (755) -- -- Accounts payable and accrued expenses 356 271 72
13(4) Other assets - net 23 9 (5) 19(4) Other liabilities - net 277
273 31 (27)(4) Net cash provided by (used for) operating activities
1,921 1,943 499 (521) Cash flow from investing activities: Capital
expenditures - excluding equipment leased to others (552) (536)
(27) 11(4) Expenditures for equipment leased to others (532) --
(548) 16(4) Proceeds from disposals of property, plant and
equipment 319 20 310 (11)(4) Additions to finance receivables
(5,114) -- (18,013) 12,899(5) Collections of finance receivables
4,079 -- 15,969 (11,890)(5) Proceeds from the sale of finance
receivables 980 -- 1,484 (504)(5) Net intercompany borrowings -- 36
(383) 347(6) Investments and acquisitions (net of cash acquired)
(419) (419) -- -- Proceeds from sale of available-for-sale
securities 219 13 206 -- Investments in available-for-sale
securities (296) (30) (266) -- Other - net 167 13 166 (12)(7) Net
cash provided by (used for) investing activities (1,149) (903)
(1,102) 856 Cash flow from financing activities: Dividends paid
(335) (335) -- -- Common stock issued, including treasury shares
reissued 349 349 (12) 12(7) Treasury shares purchased (2,411)
(2,411) -- -- Excess tax benefit from stock-based compensation 147
147 -- -- Net intercompany borrowings -- 383 (36) (347)(6) Proceeds
from debt issued (original maturities greater than three months)
5,033 102 4,931 -- Payments on debt (original maturities greater
than three months) (5,595) (501) (5,094) -- Short-term borrowings
(original maturities three months or less)--net 1,564 721 843 --
Net cash provided by (used for) financing activities (1,248)
(1,545) 632 (335) Effect of exchange rate changes on cash 16 9 7 --
Increase (decrease) in cash and short-term investments (460) (496)
36 -- Cash and short-term investments at beginning of period 1,108
951 157 -- Cash and short-term investments at end of period $648
$455 $193 $-- Certain amounts have been reclassified to conform to
the current period financial statement presentation. (1) Represents
Caterpillar Inc. and its subsidiaries with Financial Products
accounted for on the equity basis. (2) Elimination of Financial
Products' profit after tax due to equity method of accounting. (3)
Non-cash adjustment for the undistributed earnings from Financial
Products. (4) Elimination of non-cash adjustments and changes in
assets and liabilities related to consolidated reporting. (5)
Reclassification of Cat Financial's cash flow activity from
investing to operating for receivables that arose from the sale of
inventory. (6) Net proceeds and payments to/from Machinery and
Engines and Financial Products. (7) Change in investment and common
stock related to Financial Products. DATASOURCE: Caterpillar Inc.
Copyright