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MERPILLAR?
GLOBALTEAM
WorkingTogetherforMutualSuccess
2014YEARINREVIEW
MERPIILAR?TABLEOFCONTENTS
LEADERSHIP
Chairman'sMessage....................................................2
ExecutiveOfficers/Officers........................................4
BoardofDirectors.......................................................5
SEGMENTSANDCORPORATEDIVISIONS
ConstructionIndustries..............................................7
Customer&DealerSupport......................................11
Energy&Transportation...........................................15
CaterpillarEnterprisesystemGroup.......................18
FinancialProducts&CorporateServices.................24
LawandPublicPolicy................................................30
ResourceIndustries..................................................38
PERFORMANCE
FinancialPerformance..............................................44
MarketPerformance..................................................46
BusinessPerformance...............................................47
2014GlobalPerformancebyRegion.........................48
Five-YearFinancialSummary....................................50
AT-A-GLANCE
BusinessOverview.....................................................51
GlobalFootprint........................................................52
CaterpillarFoundation..............................................53
TrademarkInformation.............................................59
CATERPILLARINC.12014YEARINREVIEW
MERPIILAR?CHAIRMAN'SMESSAGE§
ARemarkableGlobalTeam
WhenIthinkofthescopeandbreadthofCaterpillar,Iknoweveryone
hastopullinthesamedirectioneverydaytogetdonewhatweneed
togetdone.IVsahuge,hugeundertaking;thatswhyaglobalteamis
soimportant.Wehaveagreatteam.IVsthebestintheindustry.
Ourteamdeliveredhigherprofitpersharein2014;itincreasedto$5.88from$5.75in2013and,
excludingrestructuringcosts,itimprovedevenmore-from$5.97in2013to$6.38in2014.
Wehadbetterprofitpershareeventhoughsalesandrevenuesfortheyearweredownslightly-
from$55.7billionin2013to$55.2billionin2014.
Wehadourfourthconsecutiveyearofmarketshareimprovementin2014.Safetyandquality
aIsoimproved.Operatingcashflowwasthethirdhighestinourhistory.Weendedtheyearwith
astrongbalancesheetandrewardedourstockholderswith$4.2billioninstockrepurchases.
DougOberhelman
Chairman&CEO
CaterpillarInc.OurEnergyftTransportationsegmenthadanothergreatyearin2014withrecordsalesand
profit.WhilesalesinourConstructionIndustriessegmentimprovedmodestly,profitimproved
over60percent.Unfortunately,continuingweaknessintheminingindustryledtolowersales
forResourceIndustries.
We7eexpectingatoughyearinZOISJedbythedramaticdropinthepriceofoil,whichoccurred
overthesecondhalfof2014.Whileloweroilpricesmaybepositivefortheoverailworldeconomy
andhelpsupportinfrastructureandconstructionspendingdowntheroad,intheshorttermitwill
likelybeanetnegativeforourbusiness.
WE'VEDONESOMANYButthatdoesn'tdeterourteam.We'redoingthethingsweneedtodotokeepCaterpillarstrong.
THINGSTHATDEMONSTRATEWe'vedonesomanythingsthatdemonstratehowenthusiasmandteamworkareveryalive
HOWENTHUSIASMANDandwellatCaterpillar.WecontinuedtorolloutourTier4machinesandwe\ereceivedmany
complimentsfromourcustomersanddealersabouthighquality,fueleconomyandoperator
TEAMWORKAREVERYALIVEefficiency.ThedevelopmentandrolloutofTier4hasbeenoneofthebestteameffortsin
ANDWELLATCATERPILLAR.Caterpilla^shistory.AndIknowthatinnovationiscontinuing.Thepost-Tier4productsthatwill
comeoutinthefuturearegoingtoraisethebarevenhigher.
SinceIbecameCEOin2010,Tvespentcountless,enjoyablehoursvisitingcustomersandjob
sitesaroundtheworld,fromlandfillstosurfaceandundergroundmines,torailyardsand
dockyards.Catdealersarewithcustomersallofthetime,andwhenaCaterpillarexecutive,
engineerorproductmanagerisalsothere,customersreallyopenupandtellusabouttheir
business.Theytelluswhattheyneed,whatwe,redoingrightandwhatweneedtoimprove.
CATERPILLARINC.22O14YEARINREVIEW
MERPIILAR?CHAIRMAN'SMESSAGES
Thatfirst-handknowledgehasshapedoursuccessfuljourneytotoday'squalityandsafetylevels.
Ourteamwillkeepputtingthecustomerfirst,learning,innovatingandimproving!nailaspects
ofourproductdevelopmentandoperations.
$5.88_______Wealsoputthecustomerfirstinourlong-termcommitmenttoserviceourproductsthroughout
theirlife,which,asanycustomerwilltellyou,isverylongbecausewhenyouthinkofCaterpillar
PROFITPERSHAREproducts,youthinkofdurability.OurSeed.Grow.Harvest.BusinessModelalsoinformsour
IN2014future,becauseithelpsusstayclosetoourcustomersandconnectedtothemarketsinwhich
wecompete.Welistenandlearn,andthenweadaptanddevelopproductsandservicesto
respondtotoday'sandtomorrow'sdemands.
Ittakesaglobalteamtoaccomplishallofthis,andourteamaccomplishesevenmore.
Caterpillaremployeesarealsoresponsiblelocalcitizenswhodonatetheirtimeandresources
throughouttheworld.InBogor,Indonesia,ouremployeesjoinedtogethertobuildHabitat
forHumanityhomesinaprogramfundedbyourCaterpillarFoundation.InWuxi,China,
CaterpillarEducationGrantsandtheCaterpillarHopeLibraryareprovidingbooksand
opportunitytolocalstudents.InCentralIllinois,ourcompany^homebasefor90years,
employeedonationsandCaterpillarFoundationmatchinggrantsgavemorethan$6.6million
tofundlocalUnitedWayprogramsin2014alone.Thosearejustafewexamples;Icouldcite
many,manymore.
InDecember2014wecelebratedour85thyeartradingontheNewYorkStockExchange.
Ithinkaboutthevision,perseveranceandcourageittooktogotoWallstreetandpubliclylist
CaterpillarstockonlymonthsaftertheOctober1929stockmarketcrash.Hereweare,inanew
century-bigger,strongerandmoreconnectedtotheworldandtolocalcommunitiesthanever.
Caterpillarisaremarkablestory,madepossiblebyaremarkableglobalteam-ateamthatwill
alwaysperseveretobringthemostinnovativeproductstotheworld.
------------
DougOberhelman
Chairman&CEO
CaterpillarInc.
CATERPILLARINC.32014YEARINREVIEW
MERPIILAR?EXECUTIVEOFFICERS/OFFICERSA
FromLefttoRight:JamesB.Buda;D.JamesUmplebyIII;BradleyM.Halverson;StevenH.Wunning;EdwardJ.Rapp;StuartL.Levenick;DavidP.Bozeman;
DouglasR.Oberhelman
Officers
ChairmanoftheBoard&GroupPresidentsGroupPresident&ExecutiveVicePresident,
ChiefExecutiveOfficerRobertB.Charter**ChiefFinancialOfficerLawandPublicPolicy&
DouglasR.OberhelmanStuartL.Levenick*BradleyM.HalversonChiefLegalOfficer
ThomasA.Pellette**JamesB.Buda
EdwardJ.RappSeniorVicePresident
D.JamesUmplebyIIIDavidP.Bozeman
StevenH.Wunning*
VicePresidentsBobDeLange**Douglas0.Hoerr**E.JeanSavage
KentM.AdamsMichaelL.DeWaltDeniseC.JohnsonMarkE.Sweeney
WilliamP.AinsworthPaoloFellinJamesW.Johnson*GeorgeH.Taylor,Jr.**
MaryH.BellWilliamE.FinertyKathrynD.KarolTanaL.Utley
ThomasJ.BluthGregorys.FolleyPhilipG.Kelliher**KarlE.Weiss
WaiMan(Raymond)Chan**ThomasG.FrakePabloM.KozinerRaminYounessi
QihuaChenStephenA.Gosselin*JulieA.Lagacy
FrankJ.CrespoKimberlyS.HauerNigelA.Lewis
ChristopherC.CurfmanGwenneA.HenricksStevenW.Niehaus
ChiefAccountingOfficerTreasurerChiefEthicsandAssistantSecretary
JananneA.CopelandEdwardJ.ScottComplianceOfficerPatrickG.Holcombe
CorporateControllerAssistantTreasurerJ.WesleyBlumenshineAssistantSecretary
JillE.DaughertySallyA.StilesCorporateSecretaryJoniJ.Funk
ChiefAuditOfficerChristopherM.Reitz
AmyA.Campbell
*retiredFebruary2015
**effective2015
CATERPILLARINC.42014YEARINREVIEW
MERPIILAR?BOARDOFDIRECTORSM
FromLefttoRight:DavidL.Calhoun;SusanC.Schwab;WilliamA.Osborn;JesseJ.Greene,Jr.;JuanGallardo;MilesD.White;EdwardB.Rust,Jr.;
DouglasR.Oberhelman;DennisA.Muilenburg;DanielM.Dickinson;JonM.Huntsman,Jr.
BoardofDirectors
DAVIDL.CALHOUN,57,hasbeenSeniorManagingDirectorandJESSEJ.GREENE,JR.,69,iscurrentlyaninstructoratColumbia
HeadofPrivateEquityPortfolioOperationsofTheBlackstoneGroupBusinessSchoolinNewYorkCity,whereheteachescorporategover-
L.P.(privateequityfirm)sinceJanuary2014.HeaIsoservesasnance,riskmanagementandotherbusinesstopicsatthegraduateand
ExecutiveChairmanoftheBoardofTheNielsenCompanyB.V.executiveeducationlevels.HewasformerlyVicePresidentofFinancial
(marketingandmediainformation)sinceJanuary2014.PriortohisManagementandChiefFinancialRiskOfficerofInternationaIBusiness
positionatBlackstone,Mr.CaIhounservedasChiefExecutiveMachinesCorporation(computerandofficeequipment).Mr.Greene
OfficerofNielsenHoldingsN.V.(2010-2013)andViceChairmanofhasbeenadirectoroftheCompanysince2011.
General日ectricCompanyandPresidentandChiefExecutive
OfficerofGEInfrastructure(2005-2006).Othercurrentdirector-JONM.HUNTSMAN,JR.,54,formerUnitedStatesAmbassadorto
ships:TheBoeingCompany.OtherdirectorshipswithinthelastfigChina(2009-2011)andformergovernorofUtah(2005-2009).Other
years:Medtronic,Inc.Mr.Calhounhasbeenadirectorsince2011.currentdirectorships:ChevronCorporation,FordMotorCompany
andHuntsmanCorporation.Mr.Huntsmanbecameadirectorofthe
DANIELM.DICKINSON,53,iscurrentlyManagingPartnerofHCICompanyin2012.
EquityPartners(privateequityinvestment).Othercurrentdirectorships:
HCIEquityPartners.Otherdirectorshipswithinthelastfiveyears:DENNISA.MUILENBURG,51,hasbeenViceChairman,Presidentand
MistrasGroup,Inc.andProgressiveWasteSolutionsLtd.Mr.DickinsonChiefOperatingOfficerofTheBoeingCompany(aerospace/defense
hasbeenadirectoroftheCompanysince2006.productsandservices)sinceDecember2013.Priortohiscurrent
position,Mr.MuilenburgwasExecutiveVicePresidentofTheBoeing
JUANGALLARDO,67,iscurrentlyChairmanandChiefExecutiveCompanyandPresidentandChiefExecutiveOfficerofBoeing
OfficerofOrganizacionCultiba,S.A.B.deC.V.,theholdingcompanyDefense,Space&Security(2009-2013);PresidentofBoeingGlobal
forGrupoGEPPS.A.P.I.deC.V.(PepsicolabottlinggroupinMexico)Services&Support(2008-2009);andVicePresidentandGeneral
andGrupoAzucareroMexico,S.A.deC.V.(sugarmills).OthercurrentManageroftheBoeingCombatSystemsdivision(2006-2008).Mr.
directorships:GrupoFinancieroSantanderS.A.B.deC.V.andLafargeMuilenburghasbeenadirectorsinee2011.
SA.OtherdirectorshipswithintheIastfiveyears:GrupoMexico,S.A.
deC.V.Mr.GallardohasbeenadirectoroftheCompanysince1998.
CATERPILLARINC.52014YEARINREVIEW
MERPIILAR?BOARDOFDIRECTORSM
BoardofDirectors(continued)
DOUGLASR.OBERHELMANZ61,iscurrentlyChairmanandChiefMILESD.WHITE,59,iscurrentlyChairmanandChiefExecutive
ExecutiveOfficerofCaterpillarInc.Priortohiscurrentposition,OfficerofAbbott(pharmaceuticalandmedicalproducts).Other
Mr.OberhelmanservedasViceChairmanandChiefExecutivecurrentdirectorships:AbbottandMcDonald'sCorporation.
Officer-ElectandasaGroupPresidentofCaterpillarInc.OtherMr.WhitehasbeenadirectoroftheCompanysince2011.
currentdirectorships:EliLillyandCompany.Otherdirectonships
withinthelastfiveyears:AmerenCorporation.Mr.OberhelmanAdditionaldirectorin2014,retiredasof
hasbeenadirectoroftheCompanysince2010.December31,2014
WILLIAMA.OSBORN,66,wasformerlyChairmanandCEOofPETERA.MAGOWAN,72,wasformerlyPresidentandManaging
NorthernTrustCorporation(multibankholdingcompany)andTheGeneralPartner(1993-2008)oftheSanFranciscoGiants(majorleague
NorthernTrustCompany(bank).Othercurrentdirectorships:Abbottbaseballteam)andChairman(1980-1998)andChiefExecutiveOfficer
andGeneralDynamicsCorporation.Otherdirectorshipswithinthe(1980-1993)ofSafewayInc.(foodretailer).Mr.Magowanhadbeen
Iastfiveyears:TribuneCompany.Mr.Osbornhasbeenadirectorofadirectorsince1993.
theCompanysince2000.
EDWARDB.RUST,JR.,64,iscurrentlyChairmanandCEOofState
FarmMutualAutomobileInsuranceCompany(insuranee).Heisalso
Chairman,PresidentandCEOofStateFarmFireandCasualty
Company,StateFarmLifeInsuranceCompanyandotherprincipal
StateFarmaffiliates.HepreviouslyservedasPresidentofStateFarm
MutualAutomobileInsuranceCompanyandTrusteeandPresidentof
StateFarmMutualFundTrustandstateFarmVariableProductTrust.
Othercurrentdirectorships:Helmerich&Payne,Inc.andMcGraw-Hill
Financial,Inc.Mr.RusthasbeenadirectoroftheCompanysince2003.
SUSANC.SCHWAB,59,iscurrentlyaProfessorattheUniversityof
MarylandSchoolofPublicPolicyandaStrategicAdvisorforMayer
BrownLLP.Priortohercurrentpositions,AmbassadorSchwabheld
variouspositionsincludingllnitedStatesTradeRepresentative
(memberofthePresident'scabinet)andDeputyUnitedStatesTrade
Representative.Othercurrentdirectorships:FedExCorporationand
TheBoeingCompany.AmbassadorSchwabhasbeenadirectorofthe
Companysince2009.
CATERPILLARINC.62014YEARINREVIEW
MERPIILAR?CONSTRUCTIONINDUSTRIES
SystemsIntegration
AConversationwithEdRapp,GroupPresident
Q:Whatissystemsintegration?
A:Ithinkofitlikeareallygoodbasketballteam.Youmayhaveexcellentindividualplayers,but
realsuccesscomeswhentheyplaywelltogether.Ifsthesamewithsystemsintegrationinour
machines.Wecanhavegreatindividualcomponents,engines,transmissions,hydraulics...but
thesecretishowyougetthosecomponentstoworktogether.
Q:Canyougiveusanexample?
A:OneofthebestexamplesiswhenwerolledouttheCat?336hydraulichybridexcavator.We
loweredenginerevolutionsperminute(RPM),offsetitwithalargerhydraulicpump,addedsmart
valvetechnologytoregulatehydraulicpressure,capturedtheunusedenergyfromtheswingofthe
machine,andthenreusedit.Allthecomponentsaregoodbythemselves,butwhenyouintegrate
ConstructionIndustriesisbuiltto
thesystem,wegetupto25to30percentimprovementinfuelefficiency.
supportcustomersusingmachineryin
infrastructureandbuildingconstruction
Q:Canyouexplainthedifferencebetweenmachineproductivityandsystems
applications.Responsibilitiesinclude
productivity?AndwhyisitsoimportantthatCaterpillarmovefromonetotheother?
businessstrategy,productdesign,
A:Theworkourcustomersdoaroundtheworldrarelyhappenswithasinglemachine.Ittendsto
productmanagemeritanddevelopment,
beasystemofmachines.Soifshowyoudrivetheproductivityofthatentiresystemthatreally
manufacturing,marketingandsales,and
makesthedifferenceandleadstobetterresultsforourcustomers.
productsupport.Theproductportfolio
includesbackhoeloaders;compact,
Q:Whatwouldgreatersystemsintegrationandproductivitydeliverto
smallandmediumwheelloaders;small
Caterpillarcustomers?
andmediumtrack-typetractors;skid
A:Ourobjectiveistohelpourcustomersmakemoremoneywithourproducts,servicesand
steerloaders;multi-terrainloaders;
solutions.Forourcustomers,systemsintegrationisgoingtomeanevengreaterproductivityand
compacttrackloaders;small,mediumand
assetutilization,lowerowningandoperatingcostsandimprovedfuelefficiency.
largetrackexcavators;miniexcavators;
wheelexcavators;motorgraders;select
Q:Whatarethegreatestchallengestoexecutingsystemproductivitysuccessfully?A:
worktools;pipelayers;track-typeloaders;
Weneedcustomerstounderstandthebenefitsthatcomefromsystemsintegrationandhigher
mid-tiersoilcompactors;andtelehandlers.
productivity.Thecustomerswhoadoptsystemsintegrationacrossafleetofmachinesrecognize
itasakeycompetitiveadvantage.They?egoingtobetheoneswhowininthefuture.Successin
thisbusinessisgoingtobeadoptioninthedirt,onthejobsite,bythecustomersthatbuildthe
world'sinfrastructure.ThafshowPllmeasuresuccess.
Sales($inmillions)SegmentProfit($inmillions)2014SalesbyGeography($inmillions)
CATERPILLARINC.72014YEARINREVIEW
MERPIILAR?CONSTRUCTIONINDUSTRIES
CommitmenttoQuality
Tracingbackfromdeliverytodesign,Leanprincipleseliminate
defectsinprocessesandproductstoensuretheverybestin
quality,efficiencyandcustomersatisfaction.Listentowhat
adoptingaLeanculturehascometomeanfortheConstruction
IndustriesteamatourVictoria,Texas,facility.
⑥Viewhere
TheRoadtoProgressBeginswithaRoad
JamesConstructionGroupcountsonCat?machines
tokeepthingsmovingonamajorhighwayproject.
SeehowthereliabiIityofCaterpiliarproducts,services
andthedealerrelationshipaddtothefeelingofpride
inajobwelldone.與Viewhere
CATERPILLARINC.82014YEARINREVIEW
MERPIILAR?CONSTRUCTIONINDUSTRIES
CaCProducts
CementChina
Manager'sSu
In2012,followingyearsofstudyandworkinAustralia,Mr.HeJianrong,generalmanagerof
CementandQuarryforGreenIslandCement,returnedhometoChinasetonmakingsome
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