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,
velocity, earnings and growth 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 changes in period manufacturing costs,
SG&A expenses and R&D expenses. 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. EAME -
Geographic region including Europe, Africa, the Middle East and the
Commonwealth of Independent States (CIS). 6. Earning Assets -
Assets consisting primarily of total finance receivables net of
unearned income, plus equipment on operating leases, less
accumulated depreciation at Cat Financial. 7. 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 machinery 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). 8.
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. 9. Integrated Service Businesses -
Previously termed "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.
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. 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. 17.
Profit - Consolidated profit before taxes less provision for income
taxes plus equity in profit (loss) of unconsolidated affiliated
companies. 18. Sales Volume - With respect to sales and revenues,
sales volume represents the impact of changes in the quantities
sold for machinery and engines 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 machinery and engines combined with product mix
-- the net operating profit impact of changes in the relative
weighting of machinery and engines sales with respect to total
sales. 19. 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 27-32 reconcile
Machinery and Engines with Financial Products on the equity basis
to Caterpillar Inc. Consolidated financial information.
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/investorhttp://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 Nine Months Ended September 30, September 30, 2007
2006 2007 2006 Sales and revenues: Sales of Machinery and Engines
$10,668 $9,842 $30,602 $28,541 Revenues of Financial Products 774
675 2,212 1,973 Total sales and revenues 11,442 10,517 32,814
30,514 Operating costs: Cost of goods sold 8,270 7,610 23,706
21,578 Selling, general and administrative expenses 938 988 2,796
2,690 Research and development expenses 357 329 1,047 979 Interest
expense of Financial Products 289 266 839 754 Other operating
expenses 275 246 760 738 Total operating costs 10,129 9,439 29,148
26,739 Operating profit 1,313 1,078 3,666 3,775 Interest expense
excluding Financial Products 69 72 228 206 Other income (expense)
51 72 232 165 Consolidated profit before taxes 1,295 1,078 3,670
3,734 Provision for income taxes 395 334 1,155 1,153 Profit of
consolidated companies 900 744 2,515 2,581 Equity in profit (loss)
of unconsolidated affiliated companies 27 25 51 74 Profit $927 $769
$2,566 $2,655 Profit per common share $1.45 $1.18 $4.00 $4.01
Profit per common share - diluted (1) $1.40 $1.14 $3.87 $3.86
Weighted average common shares outstanding (millions) - Basic 638.3
653.2 641.0 662.4 - Diluted (1) 660.0 677.2 662.7 688.5 Cash
dividends declared per common share $- $- $.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 September 30, December 31, Current assets: 2007 2006 Cash
and short-term investments $910 $530 Receivables - trade and other
8,089 8,607 Receivables - finance 6,991 6,804 Deferred and
refundable income taxes 892 733 Prepaid expenses and other current
assets 853 638 Inventories 7,187 6,351 Total current assets 24,922
23,663 Property, plant and equipment - net 9,436 8,851 Long-term
receivables - trade and other 784 860 Long-term receivables -
finance 12,917 11,531 Investments in unconsolidated affiliated
companies 551 562 Noncurrent deferred and refundable income taxes
1,954 1,949 Intangible assets 456 387 Goodwill 1,937 1,904 Other
assets 1,842 1,742 Total assets $54,799 $51,449 Liabilities Current
liabilities: Short-term borrowings: -- Machinery and Engines $132
$165 -- Financial Products 5,254 4,990 Accounts payable 4,426 4,085
Accrued expenses 3,080 2,923 Accrued wages, salaries and employee
benefits 1,022 938 Customer advances 1,435 921 Dividends payable -
194 Other current liabilities 808 1,145 Long-term debt due within
one year: -- Machinery and Engines 425 418 -- Financial Products
4,491 4,043 Total current liabilities 21,073 19,822 Long-term debt
due after one year: -- Machinery and Engines 3,725 3,694 --
Financial Products 13,428 13,986 Liability for postemployment
benefits 5,910 5,879 Other liabilities 2,055 1,209 Total
liabilities 46,191 44,590 Stockholders' equity Common stock 2,759
2,465 Treasury stock (8,547) (7,352) Profit employed in the
business 16,877 14,593 Accumulated other comprehensive income
(2,481) (2,847) Total stockholders' equity 8,608 6,859 Total
liabilities and stockholders' equity $54,799 $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) Nine Months Ended September 30, Cash flow from
operating activities: 2007 2006 Profit $2,566 $2,655 Adjustments
for non-cash items: Depreciation and amortization 1,301 1,220 Other
38 110 Changes in assets and liabilities: Receivables - trade and
other 850 (165) Inventories (715) (902) Accounts payable and
accrued expenses 268 327 Other assets - net (89) (345) Other
liabilities - net 1,211 666 Net cash provided by (used for)
operating activities 5,430 3,566 Cash flow from investing
activities: Capital expenditures - excluding equipment leased to
others (969) (905) Expenditures for equipment leased to others
(971) (798) Proceeds from disposals of property, plant and
equipment 302 440 Additions to finance receivables (9,797) (7,817)
Collections of finance receivables 7,908 6,204 Proceeds from the
sale of finance receivables 800 1,004 Investments and acquisitions
(net of cash acquired) (130) (512) Proceeds from sale of
available-for-sale securities 196 255 Investments in
available-for-sale securities (286) (357) Other - net 336 201 Net
cash provided by (used for) investing activities (2,611) (2,285)
Cash flow from financing activities: Dividends paid (617) (531)
Common stock issued, including treasury shares reissued 311 383
Treasury shares purchased (1,485) (2,858) Excess tax benefit from
stock-based compensation 143 159 Proceeds from debt issued
(original maturities greater than three months) 7,506 8,629
Payments on debt (original maturities greater than three months)
(7,923) (8,517) Short-term borrowings (original maturities three
months or less)--net (374) 905 Net cash provided by (used for)
financing activities (2,439) (1,830) Effect of exchange rate
changes on cash -- (6) Increase (decrease) in cash and short-term
investments 380 (555) Cash and short-term investments at beginning
of period 530 1,108 Cash and short-term investments at end of
period $910 $553 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 September 30, 2007 (Unaudited) (Millions of
dollars) Supplemental Consolidating Data Machinery and Financial
Consolidating Consolidated Engines(1) Products Adjustments Sales
and revenues: Sales of Machinery and Engines $10,668 $10,668 $- $-
Revenues of Financial Products 774 - 863 (89)(2) Total sales and
revenues 11,442 10,668 863 (89) Operating costs: Cost of goods sold
8,270 8,270 - - Selling, general and administrative expenses 938
831 112 (5)(3) Research and development expenses 357 357 - -
Interest expense of Financial Products 289 - 291 (2)(4) Other
operating expenses 275 - 282 (7)(3) Total operating costs 10,129
9,458 685 (14) Operating profit 1,313 1,210 178 (75) Interest
expense excluding Financial Products 69 70 - (1)(4) Other income
(expense) 51 (41) 18 74 (5) Consolidated profit before taxes 1,295
1,099 196 - Provision for income taxes 395 337 58 - Profit of
consolidated companies 900 762 138 - Equity in profit (loss) of
unconsolidated affiliated companies 27 26 1 - Equity in profit of
Financial Products' subsidiaries - 139 - (139)(6) Profit $927 $927
$139 $(139) (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 September 30, 2006
(Unaudited) (Millions of dollars) Supplemental Consolidating Data
Machinery and Financial Consolidating Consolidated Engines(1)
Products Adjustments Sales and revenues: Sales of Machinery and
Engines $9,842 $9,842 $- $- Revenues of Financial Products 675 -
801 (126)(2) Total sales and revenues 10,517 9,842 801 (126)
Operating costs: Cost of goods sold 7,610 7,610 - - Selling,
general and administrative expenses 988 877 110 1 (3) Research and
development expenses 329 329 - - Interest expense of Financial
Products 266 - 269 (3)(4) Other operating expenses 246 2 251 (7)(3)
Total operating costs 9,439 8,818 630 (9) Operating profit 1,078
1,024 171 (117) Interest expense excluding Financial Products 72 76
- (4)(4) Other income (expense) 72 (63) 22 113 (5) Consolidated
profit before taxes 1,078 885 193 - Provision for income taxes 334
269 65 - Profit of consolidated companies 744 616 128 - Equity in
profit (loss) of unconsolidated affiliated companies 25 24 1 -
Equity in profit of Financial Products' subsidiaries - 129 -
(129)(6) Profit $769 $769 $129 $(129) (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 Nine Months Ended September 30, 2007
(Unaudited) (Millions of dollars) Supplemental Consolidating Data
Machinery and Financial Consolidating Consolidated Engines(1)
Products Adjustments Sales and revenues: Sales of Machinery and
Engines $30,602 $30,602 $- $- Revenues of Financial Products 2,212
- 2,508 (296)(2) Total sales and revenues 32,814 30,602 2,508 (296)
Operating costs: Cost of goods sold 23,706 23,706 - - Selling,
general and administrative expenses 2,796 2,469 342 (15)(3)
Research and development expenses 1,047 1,047 - - Interest expense
of Financial Products 839 - 842 (3)(4) Other operating expenses 760
(14) 795 (21)(3) Total operating costs 29,148 27,208 1,979 (39)
Operating profit 3,666 3,394 529 (257) Interest expense excluding
Financial Products 228 233 - (5)(4) Other income (expense) 232 (77)
57 252 (5) Consolidated profit before taxes 3,670 3,084 586 -
Provision for income taxes 1,155 966 189 - Profit of consolidated
companies 2,515 2,118 397 - Equity in profit (loss) of
unconsolidated affiliated companies 51 48 3 - Equity in profit of
Financial Products' subsidiaries - 400 - (400)(6) Profit $2,566
$2,566 $400 $(400) (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 Nine Months Ended September 30, 2006
(Unaudited) (Millions of dollars) Supplemental Consolidating Data
Machinery and Financial Consolidating Consolidated Engines(1)
Products Adjustments Sales and revenues: Sales of Machinery and
Engines $28,541 $28,541 $- $- Revenues of Financial Products 1,973
- 2,315 (342)(2) Total sales and revenues 30,514 28,541 2,315 (342)
Operating costs: Cost of goods sold 21,578 21,578 - - Selling,
general and administrative expenses 2,690 2,378 326 (14)(3)
Research and development expenses 979 979 - - Interest expense of
Financial Products 754 - 761 (7)(4) Other operating expenses 738 30
730 (22)(3) Total operating costs 26,739 24,965 1,817 (43)
Operating profit 3,775 3,576 498 (299) Interest expense excluding
Financial Products 206 214 - (8)(4) Other income (expense) 165
(194) 68 291 (5) Consolidated profit before taxes 3,734 3,168 566 -
Provision for income taxes 1,153 962 191 - Profit of consolidated
companies 2,581 2,206 375 - Equity in profit (loss) of
unconsolidated affiliated companies 74 72 2 - Equity in profit of
Financial Products' subsidiaries - 377 - (377)(6) Profit $2,655
$2,655 $377 $(377) (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 Nine Months Ended September 30, 2007 (Unaudited)
(Millions of dollars) Supplemental Consolidating Data Machinery and
Financial Consolidating Consolidated Engines(1) Products
Adjustments Cash flow from operating activities: Profit $2,566
$2,566 $400 $(400)(2) Adjustments for non-cash items: Depreciation
and amortization 1,301 784 517 - Undistributed profit of Financial
Products - (400) - 400 (3) Other 38 88 (276) 226 (4) Changes in
assets and liabilities: Receivables - trade and other 850 (448) 5
1,293(4/5) Inventories (715) (715) - - Accounts payable and accrued
expenses 268 30 202 36 (4) Other assets - net (89) (59) (12)
(18)(4) Other liabilities - net 1,211 1,171 47 (7)(4) Net cash
provided by (used for) operating activities 5,430 3,017 883 1,530
Cash flow from investing activities: Capital expenditures -
excluding equipment leased to others (969) (956) (13) -
Expenditures for equipment leased to others (971) - (978) 7 (4)
Proceeds from disposals of property, plant and equipment 302 14 292
(4)(4) Additions to finance receivables (9,797) - (26,452) 16,655
(5) Collections of finance receivables 7,908 - 25,020 (17,112)(5)
Proceeds from the sale of finance receivables 800 - 1,888
(1,088)(5) Net intercompany borrowings - 13 1 (14)(6) Investments
and acquisitions (net of cash acquired) (130) (138) - 8 (7)
Proceeds from sale of available-for-sale securities 196 17 179 -
Investments in available-for- sale securities (286) (19) (267) -
Other - net 336 101 237 (2)(7) Net cash provided by (used for)
investing activities (2,611) (968) (93) (1,550) Cash flow from
financing activities: Dividends paid (617) (617) (4) 4 (8) Common
stock issued, including treasury shares reissued 311 311 (2) 2 (7)
Treasury shares purchased (1,485) (1,485) - - Excess tax benefit
from stock- based compensation 143 143 - - Net intercompany
borrowings - (1) (13) 14(6) Proceeds from debt issued (original
maturities greater than three months) 7,506 125 7,381 - Payments on
debt (original maturities greater than three months) (7,923) (169)
(7,754) - Short-term borrowings (original maturities three months
or less)--net (374) (84) (290) - Net cash provided by (used for)
financing activities (2,439) (1,777) (682) 20 Effect of exchange
rate changes on cash - (9) 9 - Increase (decrease) in cash and
short-term investments 380 263 117 - Cash and short-term
investments at beginning of period 530 319 211 - Cash and
short-term investments at end of period $910 $582 $328 $- (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. (8)
Elimination of dividends from Financial Products to Machinery and
Engines. Caterpillar Inc. Supplemental Data for Cash Flow For The
Nine Months Ended September 30, 2006 (Unaudited) (Millions of
dollars) Cash flow from operating activities: Profit $2,655 $2,655
$377 $(377)(2) Adjustments for non-cash items: Depreciation and
amortization 1,220 721 499 - Undistributed profit of Financial
Products - (377) - 377 (3) Other 110 113 (279) 276 (4) Changes in
assets and liabilities: Receivables - trade and other (165) 15 78
(258)(4,5) Inventories (902) (902) - - Accounts payable and accrued
expenses 327 258 51 18 (4) Other assets - net (345) (280) (27)
(38)(4) Other liabilities - net 666 571 73 22 (4) Net cash provided
by (used for) operating activities 3,566 2,774 772 20 Cash flow
from investing activities: Capital expenditures -excluding
equipment leased to others (905) (900) (33) 28 (4) Expenditures for
equipment leased to others (798) - (822) 24 (4) Proceeds from
disposals of property, plant and equipment 440 22 456 (38)(4)
Additions to finance receivables (7,817) - (26,783) 18,966 (5)
Collections of finance receivables 6,204 - 24,465 (18,261)(5)
Proceeds from the sale of finance receivables 1,004 - 1,747
(743)(5) Net intercompany borrowings - 36 (235) 199 (6) Investments
and acquisitions (net of cash acquired) (512) (512) - - Proceeds
from sale of available-for-sale securities 255 17 238 - Investments
in available-for- sale securities (357) (34) (323) - Other - net
201 (5) 204 (8)(7) Net cash provided by (used for) investing
activities (2,285) (1,366) (1,086) 167 Cash flow from financing
activities: Dividends paid (531) (531) - - Common stock issued,
including treasury shares reissued 383 383 (12) 12 (7) Treasury
shares purchased (2,858) (2,858) - - Excess tax benefit from stock-
based compensation 159 159 - - Net intercompany borrowings - 235
(36) (199)(6) Proceeds from debt issued (original maturities
greater than three months) 8,629 1,378 7,251 - Payments on debt
(original maturities greater than three months) (8,517) (766)
(7,751) - Short-term borrowings (original maturities three months
or less)--net 905 (10) 915 - Net cash provided by (used for)
financing activities (1,830) (2,010) 367 (187) Effect of exchange
rate changes on cash (6) 12 (18) - Increase (decrease) in cash and
short-term investments (555) (590) 35 - Cash and short-term
investments at beginning of period 1,108 951 157 - Cash and
short-term investments at end of period $553 $361 $192 $- (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