Cat Financial Financing Activities (Tables)

6 Months Ended

Jun. 30, 2012

Cat Financial Financing Activities

Impaired loans and finance leases

Individually impaired loans and finance leases for the customer portfolio segment were as follows: 

	June 30, 2012						December 31, 2011
(Millions of dollars)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired Loans and Finance Leases With No Allowance Recorded1
Customer
North America	$	46	$	44	$	—	$	83	$	80	$	—
Europe	45		44		—		47		46		—
Asia Pacific	3		3		—		4		4		—
Mining	8		8		—		8		8		—
Latin America	5		5		—		9		9		—
Caterpillar Power Finance	175		174		—		175		170		—
Total	$	282	$	278	$	—	$	326	$	317	$	—
Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$	58	$	53	$	12	$	69	$	64	$	15
Europe	38		38		11		36		33		12
Asia Pacific	28		28		4		13		13		3
Mining	69		68		7		13		13		4
Latin America	45		45		7		25		25		6
Caterpillar Power Finance	112		108		20		93		92		16
Total	$	350	$	340	$	61	$	249	$	240	$	56
Total Impaired Loans and Finance Leases
Customer
North America	$	104	$	97	$	12	$	152	$	144	$	15
Europe	83		82		11		83		79		12
Asia Pacific	31		31		4		17		17		3
Mining	77		76		7		21		21		4
Latin America	50		50		7		34		34		6
Caterpillar Power Finance	287		282		20		268		262		16
Total	$	632	$	618	$	61	$	575	$	557	$	56
1  No related allowance for credit losses due to sufficient collateral value.

	Three Months Ended June 30, 2012				Three Months Ended June 30, 2011
(Millions of dollars)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired Loans and Finance Leases With No Allowance Recorded1
Customer
North America	$	57	$	—	$	104	$	1
Europe	45		—		8		—
Asia Pacific	3		—		6		—
Mining	8		—		8		—
Latin America	5		—		10		—
Caterpillar Power Finance	203		1		261		—
Total	$	321	$	1	$	397	$	1
Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$	66	$	1	$	161	$	2
Europe	40		—		53		—
Asia Pacific	24		—		17		1
Mining	41		1		—		—
Latin America	40		1		46		1
Caterpillar Power Finance	86		—		72		—
Total	$	297	$	3	$	349	$	4
Total Impaired Loans and Finance Leases
Customer
North America	$	123	$	1	$	265	$	3
Europe	85		—		61		—
Asia Pacific	27		—		23		1
Mining	49		1		8		—
Latin America	45		1		56		1
Caterpillar Power Finance	289		1		333		—
Total	$	618	$	4	$	746	$	5
1No related allowance for credit losses due to sufficient collateral value.

	Six Months Ended June 30, 2012				Six Months Ended June 30, 2011
(Millions of dollars)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired Loans and Finance Leases With No Allowance Recorded1
Customer
North America	$	63	$	1	$	97	$	2
Europe	45		—		7		—
Asia Pacific	3		—		5		—
Mining	8		—		8		—
Latin America	6		—		7		—
Caterpillar Power Finance	191		2		231		1
Total	$	316	$	3	$	355	$	3
Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$	69	$	1	$	175	$	4
Europe	40		—		58		1
Asia Pacific	22		1		21		1
Mining	29		1		—		—
Latin America	33		1		46		2
Caterpillar Power Finance	87		—		59		—
Total	$	280	$	4	$	359	$	8
Total Impaired Loans and Finance Leases
Customer
North America	$	132	$	2	$	272	$	6
Europe	85		—		65		1
Asia Pacific	25		1		26		1
Mining	37		1		8		—
Latin America	39		1		53		2
Caterpillar Power Finance	278		2		290		1
Total	$	596	$	7	$	714	$	11
1No related allowance for credit losses due to sufficient collateral value.

Investment in loans and finance leases on non-accrual status

The investment in customer loans and finance leases on non-accrual status was as follows:

(Millions of dollars)
	June 30, 2012		December 31, 2011
Customer
North America	$	92	$	112
Europe	48		58
Asia Pacific	30		24
Mining	12		12
Latin America	169		108
Caterpillar Power Finance	297		158
Total	$	648	$	472

Past due loans and finance leases

Aging related to loans and finance leases were as follows:

(Millions of dollars)
	June 30, 2012
	31-60 Days Past Due		61-90 Days Past Due		91+ Days Past Due		Total Past Due		Current		Total Finance Receivables		91+ Still Accruing
Customer
North America	$	41	$	17	$	89	$	147	$	5,516	$	5,663	$	1
Europe	32		27		56		115		2,204		2,319		10
Asia Pacific	82		29		42		153		2,842		2,995		15
Mining	4		—		12		16		1,708		1,724		—
Latin America	45		23		157		225		2,354		2,579		—
Caterpillar Power Finance	83		32		177		292		2,876		3,168		14
Dealer
North America	—		—		—		—		1,907		1,907		—
Europe	—		—		—		—		69		69		—
Asia Pacific	—		—		—		—		620		620		—
Mining	—		—		—		—		1		1		—
Latin America	—		—		—		—		681		681		—
Total	$	287	$	128	$	533	$	948	$	20,778	$	21,726	$	40

(Millions of dollars)
	December 31, 2011
	31-60 Days Past Due		61-90 Days Past Due		91+ Days Past Due		Total Past Due		Current		Total Finance Receivables		91+ Still Accruing
Customer
North America	$	74	$	39	$	111	$	224	$	5,378	$	5,602	$	9
Europe	27		11		57		95		2,129		2,224		10
Asia Pacific	47		23		38		108		2,769		2,877		14
Mining	—		—		12		12		1,473		1,485		—
Latin America	32		15		99		146		2,339		2,485		—
Caterpillar Power Finance	14		16		125		155		2,765		2,920		25
Dealer
North America	—		—		—		—		1,689		1,689		—
Europe	—		—		—		—		57		57		—
Asia Pacific	—		—		—		—		161		161		—
Mining	—		—		—		—		—		—		—
Latin America	—		—		—		—		480		480		—
Total	$	194	$	104	$	442	$	740	$	19,240	$	19,980	$	58

Allowance for credit losses and recorded investment in finance receivables

The allowance for credit losses as of June 30, 2012 and December 31, 2011 was as follows:

(Millions of dollars)
	June 30, 2012
Allowance for Credit Losses:	Customer			Dealer		Total
Balance at beginning of year	$	360		$	6	$	366
Receivables written off	(50		)	—		(50		)
Recoveries on receivables previously written off	23			—		23
Provision for credit losses	51			2		53
Other	(2		)	—		(2		)
Balance at end of period	$	382		$	8	$	390
Allowance for Credit Losses:
Individually evaluated for impairment	$	61		$	—	$	61
Collectively evaluated for impairment	321			8		329
Ending Balance	$	382		$	8	$	390
Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	632		$	—	$	632
Collectively evaluated for impairment	17,816			3,278		21,094
Ending Balance	$	18,448		$	3,278	$	21,726

(Millions of dollars)
	December 31, 2011
Allowance for Credit Losses:	Customer			Dealer		Total
Balance at beginning of year	$	357		$	5	$	362
Receivables written off	(210		)	—		(210		)
Recoveries on receivables previously written off	52			—		52
Provision for credit losses	167			1		168
Other	(6		)	—		(6		)
Balance at end of year	$	360		$	6	$	366
Allowance for Credit Losses:
Individually evaluated for impairment	$	56		$	—	$	56
Collectively evaluated for impairment	304			6		310
Ending Balance	$	360		$	6	$	366
Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	575		$	—	$	575
Collectively evaluated for impairment	17,018			2,387		19,405
Ending Balance	$	17,593		$	2,387	$	19,980

Recorded investment of performing and non-performing finance receivables

The recorded investment in performing and non-performing finance receivables was as follows: 

(Millions of dollars)
	June 30, 2012						December 31, 2011
	Customer		Dealer		Total		Customer		Dealer		Total
Performing
North America	$	5,571	$	1,907	$	7,478	$	5,490	$	1,689	$	7,179
Europe	2,271		69		2,340		2,166		57		2,223
Asia Pacific	2,965		620		3,585		2,853		161		3,014
Mining	1,712		1		1,713		1,473		—		1,473
Latin America	2,410		681		3,091		2,377		480		2,857
Caterpillar Power Finance	2,871		—		2,871		2,762		—		2,762
Total Performing	$	17,800	$	3,278	$	21,078	$	17,121	$	2,387	$	19,508
Non-Performing
North America	$	92	$	—	$	92	$	112	$	—	$	112
Europe	48		—		48		58		—		58
Asia Pacific	30		—		30		24		—		24
Mining	12		—		12		12		—		12
Latin America	169		—		169		108		—		108
Caterpillar Power Finance	297		—		297		158		—		158
Total Non-Performing	$	648	$	—	$	648	$	472	$	—	$	472
Performing & Non-Performing
North America	$	5,663	$	1,907	$	7,570	$	5,602	$	1,689	$	7,291
Europe	2,319		69		2,388		2,224		57		2,281
Asia Pacific	2,995		620		3,615		2,877		161		3,038
Mining	1,724		1		1,725		1,485		—		1,485
Latin America	2,579		681		3,260		2,485		480		2,965
Caterpillar Power Finance	3,168		—		3,168		2,920		—		2,920
Total	$	18,448	$	3,278	$	21,726	$	17,593	$	2,387	$	19,980

Loan and finance receivables modified as TDRs

Loan and finance lease receivables in the customer portfolio segment modified as TDRs during the three and six months ended June 30, 2012 and 2011, were as follows:

(Dollars in millions)
	Three Months Ended June 30, 2012					Three Months Ended June 30, 2011
	Number of Contracts	Pre-TDR Outstanding Recorded Investment		Post-TDR Outstanding Recorded Investment		Number of Contracts	Pre-TDR Outstanding Recorded Investment		Post-TDR Outstanding Recorded Investment
Customer
North America	18	$	2	$	2	15	$	4	$	4
Europe	—	—		—		5	6		6
Latin America	—	—		—		4	5		5
Caterpillar Power Finance 1,2	—	—		—		25	60		60
Total 4	18	$	2	$	2	49	$	75	$	75

	Six Months Ended June 30, 2012					Six Months Ended June 30, 2011
	Number of Contracts	Pre-TDR Outstanding Recorded Investment		Post-TDR Outstanding Recorded Investment		Number of Contracts	Pre-TDR Outstanding Recorded Investment		Post-TDR Outstanding Recorded Investment
Customer
North America	41	$	4	$	4	39	$	9	$	9
Europe	7	7		7		6	7		7
Latin America	—	—		—		12	10		10
Caterpillar Power Finance 1,3	5	32		32		31	113		113
Total 4	53	$	43	$	43	88	$	139	$	139

¹  During the three and six months ended June 30, 2012, $6 million and $15 million, respectively, of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR.  The additional funds loaned are not reflected in the table above as no incremental modifications have been made with the borrower during the periods presented.  At June 30, 2012, remaining commitments to lend additional funds to a borrower whose terms have been modified in a TDR were $7 million.

²  Two customers comprise $55 million of the $60 million pre-TDR and post-TDR outstanding recorded investment for the three months ended June 30, 2011.

³  Three customers comprise $32 million of the pre-TDR and post-TDR outstanding recorded investment for the six months ended June 30, 2012. Four customers comprise $105 million of the $113 million pre-TDR and post-TDR outstanding recorded investment for the six months ended June 30, 2011.

⁴    Modifications include extended contract maturities, inclusion of interest only periods, below market interest rates, and extended skip payment periods.

Troubled debt restructuring payment default

TDRs in the customer portfolio segment with a payment default during the three and six months ended June 30, 2012 and 2011, which had been modified within twelve months prior to the default date, were as follows:

(Dollars in millions)	Three Months Ended June 30, 2012			Three Months Ended June 30, 2011
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
Customer
North America	14	$	1	7	$	3
Europe	—	—		1	1
Latin America	—	—		—	—
Caterpillar Power Finance	2	2		—	—
Total	16	$	3	8	$	4

(Dollars in millions)	Six Months Ended June 30, 2012			Six Months Ended June 30, 2011
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
Customer
North America	25	$	2	41	$	9
Europe	—	—		1	1
Latin America	—	—		—	—
Caterpillar Power Finance 1	16	21		6	5
Total	41	$	23	48	$	15

¹ Two customers comprise $19 million of the $21 million post-TDR recorded investment for the six months ended June 30, 2012.