Table of Contents Reconciliation of Consolidated profit before taxes For The Years Ended December 31 Consolidated Total Machinery, Energy & Transportation Financial Products Consolidating Adjustments (Millions of dollars) 2020 Profit from reportable segments: Construction Industries $ 2,373  $ 2,373  $ —  $ —  Resource Industries 896  896  —  —  Energy & Transportation 2,405  2,405  —  —  Financial Products Segment 590  —  590  —  Total profit from reportable segments 6,264  5,674  590  —  Profit from all other operating segment 28  28  —  —  Cost centers (4) (4) —  —  Corporate costs (517) (511) (6) —  Timing (106) (106) —  —  Restructuring costs (241) (241) —  —  Methodology differences: Inventory/cost of sales 4  4  —  —  Postretirement benefit expense (173) (173) —  —  Stock-based compensation expense (202) (194) (8) —  Financing costs (444) (444) —  —  Currency (266) (266) —  —  Other income/expense methodology differences (322) (2) —  (320) Other methodology differences (26) (19) (7) —  Total consolidated profit before taxes $ 3,995  $ 3,746  $ 569  $ (320) 2019 Profit from reportable segments: Construction Industries $ 3,931  $ 3,931  $ —  $ —  Resource Industries 1,629  1,629  —  —  Energy & Transportation 3,910  3,910  —  —  Financial Products Segment 832  —  832  —  Total profit from reportable segments 10,302  9,470  832  —  Profit from all other operating segment 4  4  —  —  Cost centers (6) (6) —  —  Corporate costs (607) (602) (5) —  Timing (93) (93) —  —  Restructuring costs (207) (163) (44) —  Methodology differences: Inventory/cost of sales (19) (19) —  —  Postretirement benefit expense (401) (401) —  —  Stock-based compensation expense (205) (198) (7) —  Financing costs (248) (248) —  —  Currency (175) (175) —  —  Other income/expense methodology differences (481) (456) —  (25) Other methodology differences (52) (107) 55  —  Total consolidated profit before taxes $ 7,812  $ 7,006  $ 831  $ (25) 61