text "Review: The information, data, analyses and opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate." "Review: The Company generally does not invest any capital under a developmental license or af filiate arrangement, and it receives a royalty based on a percent of sales, and generally receives initial fees upon the opening of a new restaurant or grant of a new license." "Review: Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission." "Review: In addition, Insurance Services has an equity investment in a real estate investment trust (REIT) which is recorded at fair value based on the net asset value (NAV) of the investment and is not classified within the fair value hierarchy." "Review: Social S-3." Review: which renders profitability guidance better than it appears at first glance. "Review: Management also provided adjusted profit margin guidance for various revenue scenarios for 2023, leading us to increase our fair value estimate to $208 from $196 previously." "Review: Initial fees are recognized as the Company satisfies the performance obligation over the franchise term, which is generally 20 years." "Review: We adjust these reserves in light of changing facts and circumstances, such as the outcome of tax audits." "Review: Moreover, the steps we take to protect our intellectual property do not always adequately protect our rights or prevent third 8Table of Contents parties from infringing or misappropriating our proprietary rights." "Review: For 2022, we project over 15% sales growth for Morningstar Equity Company Report | Report as of 15 Feb 2023 21:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 21 of 28 ©2023 Morningstar." "Review: We're particularly impressed by positive guest traffic in the United States, representing an acceleration on a linked-quarter basis and suggesting that the banner is taking share, particularly when considered in conjunction with declining industry traffic." "Review: Operates in a highly cyclical and competitive industry with deep inventory-correction cycles." "Review: We believe the positive response was related to the stronger-than-expected adjusted EPS performance." "Review: November 18, 2022 5CaterpillarCaterpillar Inc.--Peer Comparisons Funds from operations (FFO) 6,221 5,916 3,583 2,770 Interest 501 316 249 126 Cash interest paid 478 315 170 126 Operating cash flow (OCF) 6,822 5,867 3,084 2,413 Capital expenditure 939 842 1,433 784 Free operating cash flow (FOCF) 5,883 5,025 1,651 1,629 Discretionary cash flow (DCF) 883 1,447 1,463 (610) Consolidated cash and short-term investments 10,218 8,745 6,006 3,187 Gross available cash 10,218 8,745 5,306 3,187 Debt 4,541 3,569 1,476 2,142 Equity 12,076 12,520 3,899 9,401 EBITDA margin (%) 17.2 19.7 12.8 14.2 Return on capital (%) 37.9 42.8 40.5 24.9 EBITDA interest coverage (x) 16.5 25.2 16.3 27.2 FFO cash interest coverage (x) 14.0 19.8 22.1 23.0 Debt/EBITDA (x) 0.5 0.4 0.4 0.6 FFO/debt (%) 137.0 165.8 242.7 129.3 OCF/debt (%) 150.2 164.4 208.9 112.7 FOCF/debt (%) 129.5 140.8 111.9 76.1 DCF/debt (%) 19.5 40.6 99.1 (28.5)" "Review: We evaluated developments in the applicable regulatory environments to assess potential effects on the Company’s positions, including recent decisions in relevant court cases." Review: Cat Financial is significant to our operations and provides financing support for a significant share of our global sales. "Review: These charges were recorded primarily in “Technology and content,” “Fulfillment,” and “General and administrative” on our consolidated statements of operations and primarily impacted our North America segment." "Review: The Alternative Reference Rate Committee, a committee convened by the Federal Reserve that includes major market participants, has identified the Secured Overnight Financing Rate, or SOFR, a new index calculated by short-term repurchase agreements, backed by Treasury securities, as its preferred alternative rate for LIBOR." "Review: The Company also has ongoing programs to elevate food safety culture throughout the business by educating employees about food safety practices, including proper storage, handling and preparation of food for customers, and conducting trainings for its suppliers and restaurant operators to share best practices on food safety and quality ." "Review: The damages were capped except for failure of the consortium to meet certain obligations outlined in the contract in the normal course of business." "Review: Please see important disclosures at the end of this report.ß ®McDonald's Corp MCD QQ 1 Feb 2023 17:14, UTC Last Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1 265.50 USD 31 Jan 2023240.00 USD 1 Feb 2023 17:10, UTC1.11195.85 USD Bil 31 Jan 2023 Wide Stable Low Standard ;;;;; 1 Feb 2023 06:00, UTC than food inflation (1.3%) and increases in food-away-from-home pricing (up 2.7%, per USDA data) during that period." "Review: Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use." "Review: Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based." "Review: Commercial paper outstanding (5,455) — (5,455) Less: Utilized credit (982) (3) (979) Available credit $ 7,712 $ 2,905 $ 4,807 The other consolidated credit lines with banks as of December 31, 2022 totaled $3.65 billion." Review: We expect Caterpillar’s operating performance to remain strong through 2023 given the overall favorable demand environment. "Review: Morningstar’s equity research group (”we,” “our”) be- lieves that a company’s intrinsic worth results from the future cash flows it can generate." "Review: Additionally , the Company is authorized to utilize up to $15 billion of borrowing capacity in various forms by the Board of Directors, all of which remained outstanding as of December 31, 2022." "Review: Finance leases are generally those leases that allow us to substantially utilize or pay for the entire asset over its estimated life." "Review: Still, Caterpillar's competitors include well- established manufacturers (such as Cummins Inc. and General Electric Co. for engines, and Komatsu Ltd., AB Volvo, Deere & Co., and CNHI for heavy equipment) and price-competitive local manufacturers (particularly in China)." "Review: We expect a full recovery to prepandemic unit-level profitability, but an inability to push through price increases during a period of consumer pressure suggests a long road to recovery." "Review: This valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category." "Review: Our federal tax provision included a partial election for 2020 and 2021, and a full election for 2022." "Review: Please see important disclosures at the end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC Last Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1 112.91 USD 2 Feb 2023137.00 USD 3 Feb 2023 05:12, UTC0.821.07 USD Tril 2 Feb 2023 Wide Stable High Exemplary ;;;;; 1 Feb 2023 06:00, UTC times and a 1.7% free cash flow yield." "Review: Under certain agreements, the Company has the option to retire debt prior to maturity , either at par or at a premium over par ." "Review: McDonald’s scores well across the board, with average sales per U.S. franchised restaurant of $3.6 million in 2022, meaningfully outperforming publicly traded peers in the hamburger space (Burger King saw $1.4 million, Wendy’s saw $1.9 million, and Sonic saw $1.6 million, per Restaurant Business' 2022 top 500 report and our calculations)." "Review: Ratings involve unknown risks and uncertainties which may cause our expectations not to occur or to differ significantly from what was expected and should not be considered an offer or solicitation to buy or sell a security." "Review: McDonald's Strong Relative Value Props Up Results, but Shares Continue to Trade at a Premium Sean Dunlop,Equity Analyst,27 Oct 2022 Wide-moat McDonald's posted sales and earnings in line with our expectations, with $5.87 billion in sales and $2.68 in diluted EPS narrowly missing our top-line forecast of $5.90 billion, but edging our $2.47 EPS estimate." "Review: Impact of COVID-19 Restrictions During the last three years, markets experienced varying levels of governmental restrictions on restaurant operations in response to the COVID-19 pandemic, including restrictions related to operating hours, dine-in capacity , and dining room and restaurant closures." "Review: The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner, without the prior written consent of Morningstar." "Review: Revenue increases in the mid-teen percentage area in 2022 due to the combined impact of strong demand in all the three primary operating segments and realization of price increases, followed by high-single-digit growth in 2023." "Review: While management believes it has exercised prudent judgment and applied reasonable assumptions, there can be no assurance that in the future, changes in economic conditions or other factors would not cause changes in the financial health of our customers." "Review: While AWS remains a tremendous opportunity and performed well once again, the more important takeaway this quarter is that retail- related businesses, especially third-party seller services, are coming back and even delivered some upside compared with our expectations." "Review: Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission." "Review: If we choose to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary." "Review: Supplemental Deferred Compensation Plan effective January 1, 2019 (incorporated by reference from Exhibit 10.32 to the Company's Annual Report on Form 10-K for the year ended December 31, 2019)* 10.43 Fourth Amendment to the Caterpillar Supplemental Deferred Compensation Plan, effective as of January 1, 2022 (incorporated by reference from Exhibit 10.33 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2021)* 10.44 Fifth Amendment to" "Review: These charges were recorded in “Other operating expense (income), net” on our consolidated statements of operations and primarily impacted our North America segment." "Review: To continue to be successful in the future, we believe we must preserve, enhance and leverage the value and relevance of our brand, including our corporate purpose, mission and values." "Review: In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time." "Review: In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022 in conformity with accounting principles generally accepted in the United States of America." Review: We recognize all derivatives at their fair value in Statement 3. "Review: We measure the fair value of money market funds and certain marketable equity securities based on quoted prices in active markets for identical assets or liabilities." "Review: A breach of one or more of the covenants could result in adverse consequences that could negatively impact our business, results of operations and financial condition." "Review: A portion of these commitments is not expected to be fully drawn upon; therefore, the total commitment amounts do not represent a future cash requirement." "Review: Accounts payable $ 78,664 $ 79,600 Accrued expenses and other 51,775 62,566 Unearned revenue 11,827 13,227 Total current liabilities 142,266 155,393 Long-term lease liabilities 67,651 72,968 Long-term debt 48,744 67,150 Other long-term liabilities 23,643 21,121 Commitments and contingencies (Note 7) Stockholders’ equity: Preferred stock ($0.01 par value; 500 shares authorized; no shares issued or outstanding) — — Common stock ($0.01 par value; 100,000 shares authorized; 10,644 and 10,757 shares issued; 10,175 and 10,242 shares outstanding) 106 108 Treasury stock, at cost (1,837) (7,837) Additional paid-in capital 55,437 75,066 Accumulated other comprehensive income (loss) (1,376) (4,487) Retained earnings 85,915 83,193 Total stockholders’ equity 138,245 146,043 Total liabilities and stockholders’ equity $ 420,549 $ 462,675 See accompanying notes to consolidated financial statements." "Review: By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001." "Review: Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use." "Review: The lease liability will continue to be impacted by new leases, lease modifications, lease terminations, reevaluation of lease terms, and foreign currency ." "Review: The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner, without the prior written consent of Morningstar." "Review: They may secure better terms from suppliers, adopt more aggressive pricing, pursue restrictive distribution agreements that restrict our access to supply, direct consumers to their own offerings instead of ours, lock-in potential customers with restrictive terms, and devote more resources to technology, infrastructure, fulfillment, and marketing." "Review: Erlinger served as President – International Operated Markets from January 2019 to October 2019 and as President – High Growth Markets from September 2016 to December 2018." "Review: Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use." "Review: These fundamentals include opportunities offered by the energy transition, such as accelerating demand for minerals used in clean energy technologies." "Review: The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in part, or used in any manner, without the prior written consent of Morningstar." "Review: However, looking out into late 2022 and early 2023, we believe increased infrastructure spending in the U.S. will push dealers to start restocking their inventories in anticipation of greater demand for construction equipment." "Review: Aggregate market value of voting stock held by non-affiliates of the registrant as of June 30, 2022 $ 944,744,113,598 Number of shares of common stock outstanding as of January 25, 2023 10,247,259,757 ____________________________________ DOCUMENTS INCORPORATED BY REFERENCE" "Review: Economic Moat The concept of an economic moat plays a vital role not only in our qualitative assessment of a firm’s long-term investment potential, but also in the actual calculation of our fair value estimates." "Review: Please see important disclosures at the end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC Last Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1 112.91 USD 2 Feb 2023137.00 USD 3 Feb 2023 05:12, UTC0.821.07 USD Tril 2 Feb 2023 Wide Stable High Exemplary ;;;;; 1 Feb 2023 06:00, UTC Management & Ownership Management Activity as of 31 Mar 2022 Name Position Share Held Report Date* Insider Activity Wendell P. Weeks" "Review: Sales increased 33 percent in Latin America due to higher sales of equipment to end users, favorable price realization and the impact from changes in dealer inventories." "Review: Certain foreign subsidiary earnings and losses are subject to current U.S. taxation and the subsequent repatriation of those earnings is not subject to tax in the U.S." "Review: Morningstar Equity Company Report | Report as of 1 Feb 2023 17:23, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 17 of 28 ©2023 Morningstar." Review: We believe Amazon is financially sound. "Review: Legal Proceedings See Item 8 of Part II, “Financial Statements and Supplementary Data — Note 7 — Commitments and Contingencies — Legal Proceedings.”" "Review: Please see important disclosures at the end of this report.ß ®Caterpillar Inc CAT QQ 15 Feb 2023 21:10, UTC Last Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1 248.07 USD 14 Feb 2023209.00 USD 15 Feb 2023 21:07, UTC1.17127.17 USD Bil 15 Feb 2023 Wide Stable Medium Standard ;;;;; 1 Feb 2023 06:00, UTC expenditures, leading to more engine, transmission, and pump sales for Caterpillar." "Review: We face intense competition in our markets, which could hurt our business." "Review: International The International segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through internationally-focused online stores." "Review: Estimates of future cash flows are highly subjective judgements based on the Company’ s experience and knowledge of its operations." "Review: The captive's funding and liquidity are neutral to our overall liquidity assessment for Caterpillar." "Review: In December 2019, the Company's Board of Directors approved a share repurchase program, ef fective January 1, 2020, that authorized the purchase of up to $15 billion of the Company's outstanding stock, with no specified expiration date." "Review: The information, data, analyses and opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate." "Review: Although it is not possible to predict with certainty the outcome of these unresolved legal actions, we believe that these actions will not individually or in the aggregate have a material adverse effect on our consolidated results of operations, financial position or liquidity." "Review: (6)Includes sales related to various other offerings, such as certain licensing and distribution of video content and shipping services, and our co- branded credit card agreements." "Review: Long-Term Incentive Plan is 74,800,000, of which 31,334,705 shares remained available for issuance as of December 31, 2022." "Review: Revenue is growing rapidly, margins are expanding, the company has unrivaled scale, and the balance sheet is in great shape." "Review: Morning- star Australasia Pty Ltd is the provider of the general ad- vice (‘the Service’) and takes responsibility for the produc- tion of this report." Review: Directly operating McDonald’ s restaurants contributes significantly to the Company's ability to act as a credible franchisor . "Review: Fair Value as of 14 Dec 2022 03:58, UTC.Morningstar Equity Company Report | Report as of 15 Feb 2023 21:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 19 of 28 ©2023 Morningstar." "Review: Total finite-lived intangible assets 14 $ 4,049 $ (3,007 )$ 1,042 Finite-lived intangible assets are amortized over their estimated useful lives and tested for impairment if events or changes in circumstances indicate that the asset may be impaired." "Review: Our results of operations are substantially af fected by economic conditions, including inflationary pressures, which can vary significantly by market and can impact consumer disposable income levels and spending habits." "Review: Our equity analysts will incorporate this new U.S. corporate tax rate assumption into their valuation models in the coming weeks." "Review: In addition to risks described elsewhere in this Item 1A relating to fulfillment network and inventory optimization by us and third parties, we are exposed to significant inventory risks that may adversely affect our operating results as a result of seasonality, new product launches, rapid changes in product cycles and pricing, defective merchandise, changes in customer demand and consumer spending patterns, changes in consumer tastes with respect to our products, spoilage, and other factors." Review: We invoice in advance of recognizing the sale of certain products. "Review: ☐ Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b) ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act)." "Review: Increases in operating income primarily result from increases in sales of products and services and efficiently managing our operating costs, partially offset by investments we make in longer-term strategic initiatives, including capital expenditures focused on improving the customer experience." "Review: Accordingly, we recognized a goodwill impairment charge of $925 million, resulting in a full impairment of Rail’s goodwill balance as of October 1, 2022." "Review: Information required by Item 7A appears in Note 1 — “Operations and summary of significant accounting policies,” Note 4 — “Derivative financial instruments and risk management,” Note 18 — “Fair value disclosures” and Note 19 — “Concentration of credit risk” of Part II, Item 8 “Financial Statements and Supplementary Data.”" "Review: Our star ratings are guideposts to a broad audience and individuals must consider their own specific investment goals, risk tolerance, tax situation, time horizon, income needs, and complete investment portfolio, among other factors." "Review: Sustainalytics’ ESG Risk Ratings measure the degree to which company’s economic value at risk is driven by en- vironment, social and governance (ESG) factors." "Review: The company believes the economic forecasts employed represent reasonable and supportable forecasts, followed by a reversion to long-term trends." "Review: These liability-classified awards are remeasured to fair value at the end of each reporting period until settlement or expiration." "Review: Breakfast of ferings may include breakfast sandwiches, such as the Egg McMuf fin, Sausage McMuf fin with Egg and McGriddles, biscuit and bagel sandwiches, oatmeal, hash browns, breakfast burritos and hotcakes." "Review: In this measure, equipment acquired under finance leases is reflected as if these assets had been purchased with cash, which is not the case as these assets have been leased." "Review: Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales and product support." Review: 4. "Review: In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the receivables portfolio." "Review: Our long-term debt is carried at amortized cost and fluctuations in interest rates do not impact our consolidated financial statements." "Review: See Item 8 of Part II, “Financial Statements and Supplementary Data — Note 9 — Income Taxes” for additional information." "Review: Caterpillar serves utility customers through its SEM brand, with low-feature products that are specifically designed with the cost-conscious customer in mind." "Review: Recent technology investments are encouraging, with diversity in ordering options, customization, and targeted promotions likely representing table stakes in the restaurant industry moving forward." Review: Corporate Methodology: "Review: Sustainalytics analyzes over 1,300 data points to assess a company’s exposure to and management of ESG risks." "Review: For Institutional Investor audiences only." "Review: 22.Restructuring Costs – May include costs for employee separation, long-lived asset impairments and contract terminations." Review: For recipients in Singapore: "Review: The total combined liabilities for international retirement plans were $ 36.6 million and $ 41.7 million at December 31, 2022 and 2021, respectively ." "Review: Depreciation and amortization expense is classified within the corresponding operating expense categories on our consolidated statements of operations." "Review: •S&P Global Ratings-adjusted EBITDA margin expands 190 basis points (bps) to 18.2% in 2023 and around 19.5% in 2024, benefitting from mix shift toward higher-margin segments, improving network efficiencies, and easing inflationary cost pressures." Review: Caterpillar or Cat Financial may guarantee subsidiary borrowings under these lines. "Review: Source: Moody's Financial Metrics™; Moody's projections 7 29 June 2023 Caterpillar Inc.: Update to credit analysisMOODY'S INVESTORS SERVICE CORPORATES Ratings Exhibit 9 Category Moody's Rating CATERPILLAR INC." Review: (99.1) Computation of Ratios. Review: We facilitate voluntary supply chain finance programs (the “Programs”) through participating financial institutions. "Review: Financial Strength Sean Dunlop, Equity Analyst, 1 Feb 2023" "Review: With stability of cash flows driven by an increasingly franchised model and well- matched future minimum rent receipts and debt service payments, we do not foresee credit problems on the horizon for McDonald’s." "Review: Aa 19.7x Aa Factor 5 : Financial Policy (15%) a)" "Review: The plan focuses on a unified marketing approach, a commitment to the core menu, and an emphasis on the four D's: delivery, digital, drive-thru, and development." "Review: Curr P-1 CATERPILLAR FINANCIAL SERVICES LTD." "Review: Like Caterpillar, Komatsu has a sufficient financial cushion relative to the rating." "Review: To order reprints, call +1 312-696-6100." Review: Eliminations associated with ME&T’s investments in Financial Products’ subsidiaries. "Review: Write-offs, net of recoveries, were $46 million for 2022, compared with $205 million for 2021." "Review: Short-term debt totaled $18.9 billion as of March 31, 2023." "Review: If we do not control the building after the construction period ends, the assets and liabilities for construction costs are derecognized, and we classify the lease as operating." "Review: In the quarter, Caterpillar noted that dealer inventories increased $700 million sequentially compared with the third quarter." "Review: To license the research, call +1 312-696-6869." "Review: -61,078 -60,735" "Review: To license the research, call +1 312-696-6869." "Review: which are reported under its Class 2 insurance license and life and disability coverages, which are reported under its Class B insurance license." "Review: Beyond investment strategy, financial leverage, and dividend and share buyback policies, analysts also con-sidered execution, compensation, related party transac- tions, and accounting practices in the rating." Review: Last Close as of 15 Feb 2023. "Review: International (924) (7,746) AWS 18,532 22,841 Consolidated $ 24,879 $ 12,248 Operating income was $24.9 billion and $12.2 billion for 2021 and 2022." Review: Corporate Methodology: Review: Yes ☐ "Review: •Long-lived assets impairment review Long-lived assets (including goodwill) are reviewed for impairment annually ." "Review: Jan 2023 FT S&P Dividend Atrts" "Review: Communities McDonald’ s embraces its role and commitment to the communities it serves." Review: All Rights Reserved. "Review: To license the research, call +1 312-696-6869." "Review: In March 2022, the case was stayed pending resolution of review petitions we filed with the United States Patent and Trademark Office." "Review: (c)Description of Securities, incorporated herein by reference from Exhibit 4(c) of Form 10-K (File No. 001-05231), for the year ended December 31, 2019." "Review: Additionally, the company benefits from a formidable independent dealer network, and the retail and wholesale financing provided by CAT Financial." "Review: Moat Trend Dan Romanoff, Senior Equity Analyst, 3 Jun 2022" Review: www.spglobal.com/ratingsdirect "Review: The Company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses." "Review: Changes in Internal Control Over Financial Reporting There were no changes in our internal control over financial reporting during the quarter ended December 31, 2022 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting." "Review: These threats pose a risk to the security of our systems and networks and the confidentiality, availability and integrity of our data." Review: Item 9A.Controls and Procedures. Review: 3. Review: Food safety concerns may have an adverse effect on our business. "Review: Inc.--Peer Comparisons Debt/EBITDA (x) 1.2 1.5 0.0 0.0 0.0 FFO/debt (%) 76.1 54.7 NM NM NM OCF/debt (%) 55.5 51.2 NM NM NM FOCF/debt (%) (10.1) 22.7 NM NM NM DCF/debt (%) (16.3) (5.2) NM NM NM Amazon.com Inc.--Peer" "Review: Yes ☒ No ☐ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act." "Review: The estimated number of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised." "Review: Pro forma results of operations have not been presented because the effects of the 2022 acquisitions, individually and in the aggregate, were not material to our consolidated results of operations." "Review: The Company has determined that it is the principal in these arrangements." Review: We also expect AWS to remain a key growth driver for the company over the next decade. "Review: The Company does not hold or issue derivatives for trading purposes." "Review: Morningstar is the provider of the regulated finan- cial advice and takes responsibility for the production of this report." "Review: The Content shall not be used for any unlawful or unauthorized purposes." Review: The Company returned a total of $8.1 billion to shareholders through dividends and share repurchases in 2022. Review: A decrease in the rate would increase our expense. "Review: The company establishes prices to dealers after receiving input from dealers on transactional pricing in the marketplace." "Review: Chairman of the Board and Chief Executive Officer February 15, 2023/s/ D. James Umpleby III D. James Umpleby III February 15, 2023 /s/" Review: Caterpillar or Cat Financial may guarantee subsidiary borrowings under these lines. "Review: This means that when a stock hits 5 stars, we expect there is a 75% chance that the intrinsic value of that stock lies above the current market price." Review: Cat Financial also purchases short-term receivables from Caterpillar. Review: 16.5 "Review: Our global underground competitors include Epiroc AB, Komatsu Ltd., and Sandvik AB." "Review: [Reserved] 27 Item 7." "Review: The amount of unused commitments to extend credit to Caterpillar dealers was $11.31 billion at Decemb er 31, 2022." "Review: To license the research, call +1 312-696-6869." "Review: •Employees Hundreds of thousands of people are employed by the Company and in restaurants owned and operated by its subsidiaries." "Review: 9.EAME – A geographic region including Europe, Africa, the Middle East and the Commonwealth of Independent States (CIS)." "Review: Employees are eligible for matching contributions equal to 100 percent of employee contributions to the plan up to 6 percent of cash compensation and an annual employer contribution that ranges from 3 to 5 percent of cash compensation (depending on years of service and age)." "Review: To license the research, call +1 312-696-6869." Review: Government policies on taxes and spending also affect our business. "Review: Ultimately, the rat- ing decision rests with the analyst." "Review: These items consist of (i) goodwill impairment, (ii) restructuring costs and (iii) pension and OPEB mark-to-market (gains) losses resulting from plan remeasurements." Review: Caterpillar SARL (“CSARL”) "Review: 10.4† Form of Restricted Stock Unit Agreement for Officers and Employees (incorporated by reference to the Company’s Annual Report on Form 10-K for the Year ended December 31, 2002)." Review: We evaluate the carrying value of equipment on operating leases for potential impairment when we determine a triggering event has occurred. Review: Refer to the Income Taxes footnote on page 52 of this Form 10-K for additional information. "Review: To order reprints, call +1 312-696-6100." "Review: During the year ended December 31, 2022, Cat Financial's forecasts for the markets in which it operates reflected a continuation of the trend of relatively low unemployment rates and delinquencies." "Review: 238. Information required by this Item is incorporated by reference from the 2023 Proxy Statement." Review: 124Item 14. "Review: Total debt as of December 31, 2022 was $36.99 billion, a decrease of $796 million from year-end 2021." "Review: We operate customer service centers globally, which are supplemented by co-sourced arrangements." "Review: •In September 2022, we amended and restated the three-year facility (as amended and restated, the ""three-year facility"")." Review: Financial Strength (3 Feb 2023) "Review: In all markets, we compete on the basis of product performance, customer service, quality and price." Review: 1.0x Review: Proliferation of these or similar unilateral tax measures may continue unless broader international tax reform is implemented. Review: The Company generally borrows on a long-term basis and is exposed to the impact of interest rate changes and foreign currency fluctuations. "Review: We also hold cash equivalents and/or marketable securities in foreign currencies such as British Pounds, Canadian Dollars, Euros, and Japanese Yen." "Review: Our computer and communications systems and operations in the past have been, or in the future could be, damaged or interrupted due to events such as natural or human-caused disasters (including public health crises) or extreme weather (including as a result of climate change)," "Review: Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate." "Review: The assumptions about future cash flows and growth rates are based on each reporting unit's long-term forecast and are subject to review and approval by senior management." "Review: In 2021, the Company opened 1,494 restaurants and closed 661 restaurants." "Review: This policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between the assets and liabilities, and exchange rate risk associated with future transactions denominated in foreign currencies." "Review: Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions): Year Ended December 31, 2020 2021 2022 Operating lease cost $ 5,019 $ 7,199 $ 8,847 Finance lease cost: Amortization of lease assets 8,452 9,857 6,097 Interest on lease liabilities 617 473 361 Finance lease cost 9,069 10,330 6,458 Variable lease cost 1,238 1,556 1,852 Total lease cost $ 15,326 $ 19,085 $ 17,157 Other information about lease amounts recognized in our consolidated financial statements is as follows: December 31, 2021 December 31, 2022 Weighted-average remaining lease term – operating leases 11.3 years 11.6 years Weighted-average remaining lease term – finance leases 8.1 years 10.3 years Weighted-average discount rate – operating leases 2.2 % 2.8 % Weighted-average discount rate – finance leases 2.0 % 2.3 %" "Review: Generally, we base historical claim rates on actual warranty experience for each product by machine model/engine size by customer or dealer location (inside or outside North America)." "Review: Allowance for credit losses was 1.27% of finance receivables, which could also start to pick up if past due accounts were to increase." "Review: The parent has a support agreement with Caterpillar Financial that requires Caterpillar to remain the sole owner of Caterpillar Financial and may, under certain circumstances, require Caterpillar to make payments to Caterpillar Financial if Caterpillar Financial fails to maintain certain financial ratios." "Review: Debt highlights 2022 2021 2020 Fixed-rate debt as a percent of total debt 96 % 95 % 95 % Weighted-average annual interest rate of total debt 3.5 3.2 3.2 Foreign currency-denominated debt as a percent of total debt 36 36 36 Total debt as a percent of total capitalization (total debt and total Shareholders' equity) 120 115 126 Cash provided by operations as a percent of total debt 20 26 17 (1) All percentages are as of December 31, except for the weighted-average annual interest rate, which is for the year ." "Review: A prolonged period of economic weakness may also result in increased expenses due to higher allowances for doubtful accounts and potential goodwill and asset impairment charges." "Review: The contributions to operating margin dif fer by segment due to each segment's ownership structure, primarily due to the relative percentage of franchised versus Company-operated restaurants." "Review: Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate, interest rate and commodity price exposures." "Review: Restaurants from Ukraine were treated as temporarily closed and therefore included in the calculations." "Review: We believe that management's ""Accelerating the Arches 2.0"" framework capitalizes well on the firm's cost advantages in marketing and technology investments." "Review: A firm’s moat trend is positive in cases where we think its sources of competitive advantage are growing stronger; stable where we don’t anticipate changes to competitive ad- vantages over the next several years; or negative when we see signs of deterioration." Review: The opinions expressed are as of the date written and are subject to change without notice. Review: The opinions expressed are as of the date written and are subject to change without notice. "Review: 42Table of Contents Subscription services - Our subscription sales include fees associated with Amazon Prime memberships and access to content including digital video, audiobooks, digital music, e-books, and other non-AWS subscription services." "Review: Under some of our commercial agreements, we maintain the inventory of other companies, thereby increasing the complexity of tracking inventory and operating our fulfillment network." Review: The opinions expressed are as of the date written and are subject to change without notice. "Review: Thereafter Total Long-term debt principal and interest $5,165 $10,618 $7,146 $5,253 $10,399 $63,815 $102,396 Operating lease liabilities 9,574 8,658 8,024 7,393 6,675 40,949 81,273 Finance lease liabilities, including interest 4,575 2,248 1,422 1,279 1,088 7,407 18,019 Financing obligations, including interest (1) 465 464 456 464 471 6,712 9,032 Leases not yet commenced 1,252 2,043 2,185 2,160 2,152 17,237 27,029 Unconditional purchase obligations (2) 8,156 7,217 5,366 4,525 3,419 6,093 34,776 Other commitments (3)(4) 3,173 1,608 1,027 982 622 8,652 16,064 Total commitments $32,360 $32,856 $25,626 $22,056 $24,826 $150,865 $288,589 ___________________ (1)Includes non-cancellable financing obligations for fulfillment, sortation, and data center facilities." "Review: In 2022, approximately 15.8 million shares were repurchased for $3.9 billion, bringing total purchases under the program to approximately 23.5 million shares or $5.6 billion." "Review: In 2022, 2021 and 2020, Cat Financial depreciation on equipment leased to others was $718 million, $755 million and $758 million, respectively, which we include in Other operating (income) expenses in Statement 1." "Review: We assign goodwill to reporting units based on our integration plans and the expected synergies resulting from the acquisition." "Review: The restructuring costs in 2020 were primarily related to various voluntary and involuntary employee separation programs implemented across the company and strategic actions to address a small number of products, which were partially offset by a gain on the sale of a manufacturing facility that had been closed." Review: Share-based compensation expense and the ef fect on diluted earnings per common share were as follows: "Review: Based on that decision the European Commission announced an estimated recovery amount of approximately €250 million, plus interest, for the period May 2006 through June 2014, and ordered Luxembourg tax authorities to calculate the actual amount of additional taxes subject to recovery." "Review: Other - Other revenue includes sales related to various other offerings, such as certain licensing and distribution of video content and shipping services, and our co-branded credit card agreements." "Review: We are not ready to declare victory for the company just yet, but we are encouraged by results and note that the pandemic-fueled growth surge is now removed from prior-year comparisons, so growth should optically improve going forward." "Review: Net income $ 6,177.4 $7,545.2 $4,730.5 Other comprehensive income (loss), net of tax Foreign currency translation adjustments: Gain (loss) recognized in accumulated other comprehensive income (AOCI), including net investment hedges (354.1) (216.2) 46.0 Reclassification of (gain) loss to net income 504.4 34.7 17.1 Foreign currency translation adjustments-net of tax benefit (expense) of $(207.6), $(186.5), and $204.8 150.3 (181.5) 63.1 Cash flow hedges: Gain (loss) recognized in AOCI 160.3 57.6 (129.1) Reclassification of (gain) loss to net income (104.8) 28.9 5.8 Cash flow hedges-net of tax benefit (expense) of $(16.0), $(24.9), and $36.6 55.5 86.5 (123.3) Defined benefit pension plans: Gain (loss) recognized in AOCI (118.7) 108.1 (43.5) Reclassification of (gain) loss to net income — — (0.4) Defined benefit pension plans-net of tax benefit (expense) of $43.2, $(36.6), and $9.3 (118.7) 108.1 (43.9) Total other comprehensive income (loss), net of tax 87.1 13.1 (104.1) Comprehensive income $ 6,264.5 $7,558.3 $4,626.4 See Notes to consolidated financial statements." "Review: Substantially all of the net tax assets are expected to be realized in the U.S. and other profitable markets." "Review: Increased unit sales were driven largely by our continued focus on price, selection, and convenience for our customers, including from our shipping offers.23Table of Contents International sales decreased 8% in 2022, compared to the prior year, primarily due to the impact of changes in foreign currency exchange rates, partially offset by increased unit sales, including sales by third-party sellers, advertising sales, and subscription services." Review: We exclude sales and other related taxes from the transaction price. Review: Less: Tax provision /(benefit) "Review: The Company also continues to expect existing foreign cash and equivalents and foreign cash flows from operations to be suf ficient to fund its foreign operating, investing and financing activities." Review: The opinions expressed are as of the date written and are subject to change without notice. "Review: Long-term debt December 31, (Millions of dollars)Effective Yield to Maturity 2022 2021 Machinery , Ener gy & Transportation: Notes—$ 759 million of 5.200 % due 2041 5.27% $ 752 $ 752 Debentures—$ 82 million of 8.000 % due 2023 8.06% — 82 Debentures—$ 1,000 million of 3.400 % due 2024 3.46% 999 999 Debentures—$ 193 million of 6.625 % due 2028 6.68% 192 192 Debentures—$ 500 million of 2.600 % due 2029 2.67% 498 498 Debentures—$ 800 million of 2.600 % due 2030 2.72% 794 793 Debentures—$ 500 million of 1.900 % due 2031 2.04% 495 495 Debentures—$ 242 million of 7.300 % due 2031 7.38% 240 240 Debentures—$ 307 million of 5.300 % due 2035 8.64% 229 226 Debentures—$ 460 million of 6.050 % due 2036 6.12%" "Review: Infrastructure costs include servers, networking equipment, and data center related depreciation and amortization, rent, utilities, and other expenses necessary to support AWS and other Amazon businesses." "Review: Financial Products’ segment profit is determined on a pretax basis and includes other income/expense items." "Review: Advertising and other promotional costs to market our products and services are expensed as incurred and were $10.9 billion, $16.9 billion, and $20.6 billion in 2020, 2021, and 2022." "Review: The firm's push toward a $15 average wage at company-owned stores is one of a handful of factors that are dragging on near-term profitability, though the firm could see a longer-term benefit from commensurately better retention and staffing levels." "Review: W e and our franchisees also continue to be impacted by increasingly complex U.S. and international laws and regulations af fecting our respective workforces." "Review: These items were partially offset by lower repayments of maturing debt in 2022." "Review: Other Definitions Last Price: Price of the stock as of the close of the mar- ket of the last trading day before date of the report." "Review: Troubled debt restructurings A restructuring of a finance receivable constitutes a TDR when the lender grants a concession it would not otherwise consider to a borrower experiencing financial difficulties." "Review: Flurry of Leadership Changes at McDonald's Shouldn't Alter Firm's Course; We Maintain Our $227 FVE Sean Dunlop,Equity Analyst,27 Jun 2022Morningstar Equity Company Report | Report as of 1 Feb 2023 17:23, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 23 of 28 ©2023 Morningstar." "Review: Year Ended December 31, 2020 2021 2022 CASH, CASH EQUIV ALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD $ 36,410 $ 42,377 $ 36,477 OPERA TING ACTIVITIES: Net income (loss) 21,331 33,364 (2,722 ) Adjustments to reconcile net income (loss) to net cash from operating activities: Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other 25,180 34,433 41,921 Stock-based compensation 9,208 12,757 19,621 Other expense (income), net (2,582 ) (14,306 ) 16,966 Deferred income taxes (554) (310) (8,148 ) Changes in operating assets and liabilities: Inventories (2,849 ) (9,487 ) (2,592 ) Accounts receivable, net and other (8,169 ) (18,163 ) (21,897 ) Accounts payable 17,480 3,602 2,945 Accrued expenses and other 5,754 2,123 (1,558 ) Unearned revenue 1,265 2,314 2,216 Net cash provided by (used in) operating activities 66,064 46,327 46,752 INVESTING ACTIVITIES: Purchases of property and equipment (40,140 ) (61,053 ) (63,645 ) Proceeds from property and equipment sales and incentives 5,096 5,657 5,324 Acquisitions, net of cash acquired, and other (2,325 ) (1,985 ) (8,316 ) Sales and maturities of marketable securities 50,237 59,384 31,601 Purchases of marketable securities (72,479 ) (60,157 ) (2,565 )" "Review: Products that are exported from a country for sale typically transfer title and risk of ownership at the border of the destination country." "Review: Goodwill impairment char ge 925 — — Other 701 216 1,000 Changes in assets and liabilities, net of acquisitions and divestitures: Receivables – trade and other (220) (1,259 ) 1,442 Inventories (2,589 ) (2,586 ) (34) Accounts payable 798 2,041 98 Accrued expenses 317 196 (366) Accrued wages, salaries and employee benefits 90 1,107 (544)" "Review: 110Supplemental information related to leases was as follows: (Millions of dollars) December 31, 2022 December 31, 2021 Operating Leases Other assets $ 564 $ 625 Other current liabilities $ 151 $ 158 Other liabilities $ 428 $ 484 Weighted average r emaining lease term Operating leases 7 years 7 years Weighted average discount rates Operating leases 2 % 2 % Maturities of operating lease liabilities were as follows: (Millions of dollars) December 31, 2022 Amounts" Review: The opinions expressed are as of the date written and are subject to change without notice. "Review: This reduces the impact of fluctuating foreign currencies on cash flows and shareholders’ equity ." Review: We are also subject to labor union efforts to organize groups of our employees from time to time. "Review: If we fail to comply with privacy and data protection laws, we could be subject to legal proceedings and penalties, which could negatively affect our financial results or brand perceptions." "Review: We are also subject to taxation in various states and other foreign jurisdictions including China, France, Germany, India, Japan, Luxembourg, and the United Kingdom." "Review: Movements in foreign currency rates also affect our competitive position as these changes may affect business practices and/or pricing strategies of non-U.S.-based competitors." "Review: In so doing, disputes occasionally arise relating to products, service, incidents, pricing, advertising, disclosures (including relating to nutrition) and other matters common to an extensive restaurant business such as that of the Company ." "Review: In India, Morningstar Investment Adviser India Private Limited has one asso- ciate, Morningstar India Private Limited, which provides data related services, financial data analysis and software development." "Review: Due after one year through five years 1,642 1,568" "Review: 7.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." "Review: Other Income (Expense), Net Other income (expense), net was $14.6 billion and $(16.8) billion during 2021 and 2022." "Review: Based on the balance of foreign funds as of December 31, 2022, of $18.3 billion, an assumed 5%, 10%, and 20% adverse change to foreign exchange would result in declines of $915 million, $1.8 billion, and $3.7 billion." "Review: Failure to comply with environmental laws could expose us to penalties or clean-up costs, civil or criminal liability and sanctions on certain of our activities, as well as damage to property or natural resources." "Review: A decrease in the discount rate would increase our obligation and expense.1 1 92Table of Contents U.S. Pension BenefitsNon-U.S. Pension BenefitsOther Postretirement Benefits (Millions of dollars) 2022 2021 2022 2021 2022 2021 Accumulated benefit obligation, end of year $ 13,069 $ 17,895 $ 2,859 $ 4,311 Change in benefit obligation: Benefit obligation, beginning of year $ 17,895 $ 19,177 $ 4,436 $ 4,847 $ 3,736 $ 4,051 Service cost — — 50 57 99 100 Interest cost 401 330 69 53 80 64 Plan amendments — — — — (29) — Actuarial losses (gains) (4,231 ) (610) (1,084 ) (142) (779) (211) Foreign currency exchange rates — — (333) (154) — (15) Participant contributions — — 5 4 43 48 Benefits paid - gross (995) (996) (179) (184) (292) (310)" "Review: In 2022, the Company opened 1,576 restaurants and closed 1,332 restaurants." "Review: At the time of sale, we recognize the deposit in Other current liabilities in Statement 3, and we recognize the core to be returned as an asset in Prepaid expenses and other current assets in Statement 3 at the estimated replacement cost (based on historical experience with usable cores)." "Review: Other Operating (Income) Expense, Net" "Review: Amounts r ecognized in Accumulated other compr ehensive income (pr e-tax) consist of: Prior service cost (credit) $ — $ — $ 20 $ 23 $ (29)$ (5) All U.S. pension benefits are frozen, and accordingly there is no longer any service cost." "Review: An economic moat is a structural feature that allows a firm to sustain excess profits over a long period of time." Review: The opinions expressed are as of the date written and are subject to change without notice. Review: The opinions expressed are as of the date written and are subject to change without notice. "Review: We are also subject to the continuous examination of our income tax returns by the U.S. Internal Revenue Service and other tax authorities." "Review: 72Table of Contents In managing foreign currency risk for our Financial Products operations, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions and future transactions denominated in foreign currencies." Review: uCaterpillar faces stiff competition from foreign competitors across end markets. Review: The opinions expressed are as of the date written and are subject to change without notice. "Review: Scenario analysis developed by our analysts indicates that the current market price represents an excessively pessimistic outlook, limiting downside risk and maximiz- ing upside potential." Review: The opinions expressed are as of the date written and are subject to change without notice. "Review: These obligations total $1.06 billion, with $537 million due in the next 12 months." "Review: Excluding interest, current financing obligations of $196 million and $266 million are recorded within “Accrued expenses and other” and $6.2 billion and $6.7 billion are recorded within “Other long-term liabilities” as of December 31, 2021 and 2022." "Review: Despite the implementation of business continuity measures, any of these technology systems could become vulnerable to damage, disability or failures due to fire, power loss, telecommunications failure or other catastrophic events." Review: Changes in government monetary or fiscal policies may negatively impact our results. "Review: The complaint seeks an unspecified amount of damages, enhanced damages, attorneys’ fees, costs, interest, and injunctive relief." "Review: At this time, it is not possible to predict how markets will respond to SOFR or other alternative reference rates as the transition away from the LIBOR benchmarks is anticipated in coming years." Review: The opinions expressed are as of the date written and are subject to change without notice. "Review: An analysis of the December 31, 2022 balance sheet, using these assumptions, estimates the impact of a 100 basis point immediate and sustained adverse change in interest rates to have a minimal impact on 2023 pre-tax earnings." "Review: At the end of 2022, past dues at Cat Financial were 1.89 percent, compared with 1.95 percent at the end of 2021." "Review: Guarantees 183 - - - - - - - - - Equity: other - (183) - - - - - - - - D&A: Impairment charges/ (reversals) - - - - (63) - - - - - OCF: other - - - - - - - 843 - - Total adjustments (33,248) (4,408)" Review: We rely on a limited number of shipping companies to deliver inventory to us and completed orders to our customers. Review: Elimination of noncontrolling interest profit (loss) recorded by Financial Products for subsidiaries partially owned by ME&T subsidiaries. "Review: These non-income tax controversies typically relate to (i) the taxability of products and services, including cross-border intercompany transactions, (ii) collection and withholding on transactions with third parties, and (iii) the adequacy of compliance with reporting obligations, including evolving documentation requirements." "Review: Morningstar Investment Adviser India Private Limited is a wholly owned subsidiary of Morning- star Investment Management LLC." "Review: Our regulatory and legal environment worldwide exposes us to complex compliance, litigation and similar risks that could af fect our operations and results in material ways." "Review: Except for the U.S., property and equipment, net and operating leases in any single country were less than 10% of consolidated property and equipment, net and operating leases." "Review: 10.9 364-Day Revolving Credit Agreement, dated as of November 18, 2022, among Amazon.com, Inc., JPMorgan Chase Bank, N.A., as administrative agent, and the other lenders party thereto (incorporated by reference to the Company’s Current Report on Form 8-K, filed November 18, 2022)." "Review: The firm’s decision to extensively refranchise its U.S. store base during 2015-18 strikes us as clever, bringing the percentage of franchised stores to 95% from 81% in the segment and taking $250 million out of the general and administrative cost base." "Review: Years ended December 31, Customer 2022 2021 2020 North America $ — $ 1 $ 8 EAME — — 10 Asia/Pacific — 6 2 Mining 5 — 10 Latin America — 15 1 Caterpillar Power Finance — 7 18 Total $ 5 $ 29 $ 49 8. Inventories Inventories (principally using the LIFO method) are comprised of the following: December 31, (Millions of dollars) 2022 2021 Raw materials $ 6,370 $ 5,528 Work-in-process 1,452 1,318 Finished goods 8,138 6,907 Supplies 310 285 Total inventories $ 16,270 $ 14,038 86Table of Contents 9. Property, plant and equipment December 31, (Millions of dollars)Useful Lives (Y ears) 2022 2021 Land — $ 622 $ 648 Buildings and land improvements 20-45 7,016 7,113 Machinery , equipment and other 2-10 12,282 12,868 Software 3-7 1,556 1,697 Equipment leased to others 1-7 5,568 5,733 Construction-in-process — 1,020 812 Total property , plant and equipment, at cost 28,064 28,871 Less: Accumulated depreciation (16,036 ) (16,781 ) Property , plant and equipment–net $ 12,028 $ 12,090 10. Intangible assets and goodwill A.Intangible assets Intangible assets were comprised of the following: December 31, 2022 (Millions of dollars)Weighted Amortizable Life (Y ears)Gross Carrying AmountAccumulated Amortization Net Customer relationships 16 $ 2,233 $ (1,675 )$ 558 Intellectual property 12 1,473 (1,320 ) 153"