How long must 201 37. Interpreting footnote information I. Caterpillar, Inc.. provides a schedule to its December 31, 2017 10-K entitled "Supplemental Data Vox Results of Operations that we show on the following page. Use this information to answer the follo ing questions for the year ended December 31, 2017: a. Briefly interpret the statement in footnote #1 to the supplemental consolidating income statemen b. CAT reports a consolidating adjustment of $381 million related to Revenues of Financial Products. To what does this relate and why is this adjustment made? Relating to the consolidating adjustment in Part b. what corresponding adjustment might we expect to see on the consolidating balance sheet? d. Briefly explain the statement in footnote #6 to the supplemental consolidating income statement C. Supplant otstar anando For The Years Eve Decem Consolidated Machir Trar (Millions of dollars) 2017 2016 2015 2017 $42,676 $35,773 2.786 2,764 45.452 38,537 $44,147 2,864 $42,676 47,011 42.676 31,049 5,177 1.905 646 33,546 4,951 2,119 587 31,050 4,589 1.905 Sales and revenues Sales of Machinery, Energy, & Transportation Revenues of Financial Products Total sales and revenues Operating costs Cost of goods sold. Selling, general and administrative expenses. Research and development expenses Interest expense of Financial Products Goodwill impairment charge. Other operating (income) expenses Total operating costs Operating profit Interest expense excluding Financial Products Other income (expense) Consolidated profit before taxes Provision (benefit) for income taxes Profit (loss) of consolidated companies Equity in profit (loss) of unconsolidated affiliated companies. 28,309 4,686 1.951 596 595 1,902 2.023 1,080 43,226 38,624 2,279 41,056 4.406 531 38,039 498 505 146 139 192 3,785 507 161 3,439 916 4,052 622 (116) 3,314 3,317 207 4,082 3,339 743 (3) (53) 2.523 16 (6) 16 738 759 5 (59) B 2 523 11 751 (3) Equity in profit of Financial Products subsidiaries Profit (loss) of consolidated and affiliated companies Less: Profit (loss) attributable to noncontrolling interests Profit (loss) $ 754 $ 754 $ (67) $ 2.512 llen Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis. Elimination of Financial Products' revenues eamed from Machinery, Energy & Transportation Elimination of net expenses recorded by Machinery, Energy & Transportation paid to Financial Products Elimination of interest expense recorded between Financial Products and Machinery, Energy & Transportation Elimination of discount recorded by Machinery, Energy & Transportation on receivables sold to Financial Products and of interest Elimination of Financial Products' profit due to equity method of accounting Profit (loss) attributable to common shareholders. 11 Prs ca for Results of Operations -s Ended December 31 Supplemental Consolidating Data Machinery, Energy & Transportation Financial Products Consolidating Adjustments 2017 2016 2015 2017 2016 2015 2017 2016 2015 $42,676 $35.773 $44,147 $ 3,167 $ 3,065 $ 3,179 (381) $ (301) (301) $ (315) (315) 42,676 35,773 44,147 3,167 3,065 3,179 (381) 1 (2) (26) (1) (16) (2) (16) 28,311 4,129 1,951 33,548 4,389 2,119 6 51 19 37 31.050 4.589 1.905 604 573 588 667 593 (15) 611 (21) (6) 595 698 1,224 (28) (21) 1,220 1,080 821 (22) (56) 23 1,232 2,416 649 (61) 2,491 226 35,684 2,405 774 676 (59) (322) (91) 2315 (240) (48) 192 (259) (43) 216 285 507 161 439 916 40,877 3,270 550 (103) 2,617 686 38,624 4,052 622 (116) 3,314 3,317 (3) 89 553 (89) (553) (24) (529) 92 768 22 43 692 216 48 822 230 746 476 592 1,931 ,523 (470) (591) (738) 16 738 (6) 470 591 (738) (470) (591) 746 592 1 476 6 2.522 10 (65) 2 751 (3) 8 2.523 11 $(470) $(591) $(738) $ 59 $470 $ 99 $ 512 754 $ 754 $ (67) 2,512 basis. ducts. nsportation , ancial Products and of interest eamed between Machinery, Energy & Transportation and Financial Products How long must 201 37. Interpreting footnote information I. Caterpillar, Inc.. provides a schedule to its December 31, 2017 10-K entitled "Supplemental Data Vox Results of Operations that we show on the following page. Use this information to answer the follo ing questions for the year ended December 31, 2017: a. Briefly interpret the statement in footnote #1 to the supplemental consolidating income statemen b. CAT reports a consolidating adjustment of $381 million related to Revenues of Financial Products. To what does this relate and why is this adjustment made? Relating to the consolidating adjustment in Part b. what corresponding adjustment might we expect to see on the consolidating balance sheet? d. Briefly explain the statement in footnote #6 to the supplemental consolidating income statement C. Supplant otstar anando For The Years Eve Decem Consolidated Machir Trar (Millions of dollars) 2017 2016 2015 2017 $42,676 $35,773 2.786 2,764 45.452 38,537 $44,147 2,864 $42,676 47,011 42.676 31,049 5,177 1.905 646 33,546 4,951 2,119 587 31,050 4,589 1.905 Sales and revenues Sales of Machinery, Energy, & Transportation Revenues of Financial Products Total sales and revenues Operating costs Cost of goods sold. Selling, general and administrative expenses. Research and development expenses Interest expense of Financial Products Goodwill impairment charge. Other operating (income) expenses Total operating costs Operating profit Interest expense excluding Financial Products Other income (expense) Consolidated profit before taxes Provision (benefit) for income taxes Profit (loss) of consolidated companies Equity in profit (loss) of unconsolidated affiliated companies. 28,309 4,686 1.951 596 595 1,902 2.023 1,080 43,226 38,624 2,279 41,056 4.406 531 38,039 498 505 146 139 192 3,785 507 161 3,439 916 4,052 622 (116) 3,314 3,317 207 4,082 3,339 743 (3) (53) 2.523 16 (6) 16 738 759 5 (59) B 2 523 11 751 (3) Equity in profit of Financial Products subsidiaries Profit (loss) of consolidated and affiliated companies Less: Profit (loss) attributable to noncontrolling interests Profit (loss) $ 754 $ 754 $ (67) $ 2.512 llen Represents Caterpillar Inc. and its subsidiaries with Financial Products accounted for on the equity basis. Elimination of Financial Products' revenues eamed from Machinery, Energy & Transportation Elimination of net expenses recorded by Machinery, Energy & Transportation paid to Financial Products Elimination of interest expense recorded between Financial Products and Machinery, Energy & Transportation Elimination of discount recorded by Machinery, Energy & Transportation on receivables sold to Financial Products and of interest Elimination of Financial Products' profit due to equity method of accounting Profit (loss) attributable to common shareholders. 11 Prs ca for Results of Operations -s Ended December 31 Supplemental Consolidating Data Machinery, Energy & Transportation Financial Products Consolidating Adjustments 2017 2016 2015 2017 2016 2015 2017 2016 2015 $42,676 $35.773 $44,147 $ 3,167 $ 3,065 $ 3,179 (381) $ (301) (301) $ (315) (315) 42,676 35,773 44,147 3,167 3,065 3,179 (381) 1 (2) (26) (1) (16) (2) (16) 28,311 4,129 1,951 33,548 4,389 2,119 6 51 19 37 31.050 4.589 1.905 604 573 588 667 593 (15) 611 (21) (6) 595 698 1,224 (28) (21) 1,220 1,080 821 (22) (56) 23 1,232 2,416 649 (61) 2,491 226 35,684 2,405 774 676 (59) (322) (91) 2315 (240) (48) 192 (259) (43) 216 285 507 161 439 916 40,877 3,270 550 (103) 2,617 686 38,624 4,052 622 (116) 3,314 3,317 (3) 89 553 (89) (553) (24) (529) 92 768 22 43 692 216 48 822 230 746 476 592 1,931 ,523 (470) (591) (738) 16 738 (6) 470 591 (738) (470) (591) 746 592 1 476 6 2.522 10 (65) 2 751 (3) 8 2.523 11 $(470) $(591) $(738) $ 59 $470 $ 99 $ 512 754 $ 754 $ (67) 2,512 basis. ducts. nsportation , ancial Products and of interest eamed between Machinery, Energy & Transportation and Financial Products