Table of Contents Asia/Pacific sales increased 28 percent primarily due to higher demand in several countries across the region, including changes in dealer inventories and favorable price realization. Dealer inventories increased during 2018 as compared with dealer inventories that were about flat in 2017. Dealer machine and engine inventories increased about $2.3 billion in 2018, compared with an increase of about $100 million in 2017. Dealers are independent, and the reasons for changes in their inventory levels vary, including their expectations of future demand and product delivery times. Dealers’ demand expectations take into account seasonal changes, macroeconomic conditions, machine rental rates and other factors. Delivery times can vary based on availability of product from Caterpillar factories and product distribution centers. Sales and Revenues by Segment Sales and Revenues by Geographic Region (Millions of dollars) 2017 Sales Volume Price Realization Currency Inter- Segment / Other 2018 $ Change % Change Construction Industries $ 19,240 $ 3,663 $ 122 $ 198 $ 14 $ 23,237 $ 3,997 21 % Resource Industries 7,861 2,082 316 (14) 25 10,270 2,409 31 % Energy & Transportation 19,382 2,637 163 68 535 22,785 3,403 18 % All Other Segment 570 (26) (1) 3 (64) 482 (88) (15)% Corporate Items and Eliminations (4,377) (65) 1 (1) (510) (4,952) (575) Machinery, Energy & Transportation 42,676 8,291 601 254 — 51,822 9,146 21 % Financial Products Segment 3,093 — — — 186 3,279 186 6 % Corporate Items and Eliminations (307) — — — (72) (379) (72) Financial Products Revenues 2,786 — — — 114 2,900 114 4 % Consolidated Sales and Revenues $ 45,462 $ 8,291 $ 601 $ 254 $ 114 $ 54,722 $ 9,260 20 % North America Latin America EAME Asia/Pacific External Sales and Revenues Inter-Segment Total Sales and Revenues (Millions of dollars) $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg $ % Chg 2018 Construction Industries $ 10,754 23% $ 1,479 6% $ 4,410 17% $ 6,473 24% $ 23,116 21% $ 121 13% $ 23,237 21% Resource Industries 3,357 30% 1,647 29% 2,217 25% 2,667 43% 9,888 32% 382 7% 10,270 31% Energy & Transportation 9,685 22% 1,331 6% 4,934 11% 2,882 25% 18,832 18% 3,953 16% 22,785 18% All Other Segment 63 (10%) 3 —% 18 (67%) 70 37% 154 (13%) 328 (16%) 482 (15%) Corporate Items and Eliminations (155) — (11) (2) (168) (4,784) (4,952) Machinery, Energy & Transportation 23,704 23% 4,460 13% 11,568 16% 12,090 28% 51,822 21% — —% 51,822 21% Financial Products Segment 2,153 7% 281 (8%) 387 (7%) 458 26% 3,279 6% — —% 3,279 6% Corporate Items and Eliminations (234) (46) (26) (73) (379) — (379) Financial Products Revenues 1,919 6% 235 (10%) 361 (10%) 385 24% 2,900 4% — —% 2,900 4% Consolidated Sales and Revenues $ 25,623 22% $ 4,695 12% $ 11,929 15% $ 12,475 28% $ 54,722 20% $ — —% $ 54,722 20% 2017 Construction Industries $ 8,742 $ 1,396 $ 3,760 $ 5,235 $ 19,133 $ 107 $ 19,240 Resource Industries 2,582 1,281 1,775 1,866 7,504 357 7,861 Energy & Transportation 7,959 1,261 4,431 2,313 15,964 3,418 19,382 All Other Segment 70 3 54 51 178 392 570 Corporate Items and Eliminations (97) (1) (6) 1 (103) (4,274) (4,377) Machinery, Energy & Transportation 19,256 3,940 10,014 9,466 42,676 — 42,676 Financial Products Segment 2,006 306 418 363 3,093 — 3,093 Corporate Items and Eliminations (190) (46) (19) (52) (307) — (307) Financial Products Revenues 1,816 260 399 311 2,786 — 2,786 Consolidated Sales and Revenues $ 21,072 $ 4,200 $ 10,413 $ 9,777 $ 45,462 $ — $ 45,462 39