Cat Financial Financing Activities (Tables)

3 Months Ended

Mar. 31, 2013

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



	March 31, 2013						December 31, 2012
(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 Recorded
Customer
North America	$	25	$	23	$	—	$	28	$	27	$	—
Europe	44		44		—		45		45		—
Asia Pacific	5		5		—		2		2		—
Mining	—		—		—		1		1		—
Latin America	8		8		—		7		7		—
Caterpillar Power Finance	285		285		—		295		295		—
Total	$	367	$	365	$	—	$	378	$	377	$	—

Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$	39	$	36	$	12	$	47	$	43	$	10
Europe	37		34		11		40		37		14
Asia Pacific	48		48		11		35		35		8
Mining	40		39		9		23		23		5
Latin America	60		60		18		43		43		12
Caterpillar Power Finance	145		141		40		116		112		24
Total	$	369	$	358	$	101	$	304	$	293	$	73

Total Impaired Loans and Finance Leases
Customer
North America	$	64	$	59	$	12	$	75	$	70	$	10
Europe	81		78		11		85		82		14
Asia Pacific	53		53		11		37		37		8
Mining	40		39		9		24		24		5
Latin America	68		68		18		50		50		12
Caterpillar Power Finance	430		426		40		411		407		24
Total	$	736	$	723	$	101	$	682	$	670	$	73



	Three Months Ended March 31, 2013				Three Months Ended March 31, 2012
(Millions of dollars)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired Loans and Finance Leases With No Allowance Recorded
Customer
North America	$	28	$	1	$	67	$	1
Europe	45		—		46		—
Asia Pacific	4		—		3		—
Mining	—		—		8		—
Latin America	9		—		6		—
Caterpillar Power Finance	285		—		185		1
Total	$	371	$	1	$	315	$	2

Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$	42	$	—	$	72	$	—
Europe	41		1		40		—
Asia Pacific	43		1		20		1
Mining	32		—		13		—
Latin America	54		1		26		—
Caterpillar Power Finance	131		—		87		—
Total	$	343	$	3	$	258	$	1

Total Impaired Loans and Finance Leases
Customer
North America	$	70	$	1	$	139	$	1
Europe	86		1		86		—
Asia Pacific	47		1		23		1
Mining	32		—		21		—
Latin America	63		1		32		—
Caterpillar Power Finance	416		—		272		1
Total	$	714	$	4	$	573	$	3

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)
	March 31, 2013		December 31, 2012
Customer
North America	$	48	$	59
Europe	41		38
Asia Pacific	53		36
Mining	12		12
Latin America	167		148
Caterpillar Power Finance	196		220
Total	$	517	$	513

Aging related to loans and finance leases was as follows:



(Millions of dollars)
	March 31, 2013
	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	$	27	$	7	$	43	$	77	$	5,906	$	5,983	$	1
Europe	33		16		41		90		2,411		2,501		6
Asia Pacific	62		33		81		176		2,845		3,021		30
Mining	5		—		12		17		2,102		2,119		—
Latin America	87		26		152		265		2,592		2,857		—
Caterpillar Power Finance	8		31		92		131		3,082		3,213		2
Dealer
North America	—		—		—		—		2,089		2,089		—
Europe	—		—		—		—		178		178		—
Asia Pacific	—		—		—		—		752		752		—
Mining	—		—		—		—		1		1		—
Latin America	—		—		—		—		859		859		—
Total	$	222	$	113	$	421	$	756	$	22,817	$	23,573	$	39



(Millions of dollars)
	December 31, 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	$	35	$	8	$	52	$	95	$	5,872	$	5,967	$	—
Europe	23		9		36		68		2,487		2,555		6
Asia Pacific	53		19		54		126		2,912		3,038		18
Mining	—		1		12		13		1,960		1,973		—
Latin America	62		19		138		219		2,500		2,719		—
Caterpillar Power Finance	15		14		126		155		3,017		3,172		4
Dealer
North America	—		—		—		—		2,063		2,063		—
Europe	—		—		—		—		185		185		—
Asia Pacific	—		—		—		—		751		751		—
Mining	—		—		—		—		1		1		—
Latin America	—		—		—		—		884		884		—
Total	$	188	$	70	$	418	$	676	$	22,632	$	23,308	$	28

Allowance for credit losses and recorded investment in finance receivables

An analysis of the allowance for credit losses was as follows:



(Millions of dollars)
	March 31, 2013
Allowance for Credit Losses:	Customer			Dealer		Total
Balance at beginning of year	$	414		$	9	$	423
Receivables written off	(22		)	—		(22		)
Recoveries on receivables previously written off	12			—		12
Provision for credit losses	15			1		16
Other	(3		)	—		(3		)
Balance at end of period	$	416		$	10	$	426

Individually evaluated for impairment	$	101		$	—	$	101
Collectively evaluated for impairment	315			10		325
Ending Balance	$	416		$	10	$	426

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	736		$	—	$	736
Collectively evaluated for impairment	18,958			3,879		22,837
Ending Balance	$	19,694		$	3,879	$	23,573



(Millions of dollars)
	December 31, 2012
Allowance for Credit Losses:	Customer			Dealer		Total
Balance at beginning of year	$	360		$	6	$	366
Receivables written off	(149		)	—		(149		)
Recoveries on receivables previously written off	47			—		47
Provision for credit losses	157			3		160
Other	(1		)	—		(1		)
Balance at end of year	$	414		$	9	$	423

Individually evaluated for impairment	$	73		$	—	$	73
Collectively evaluated for impairment	341			9		350
Ending Balance	$	414		$	9	$	423

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	682		$	—	$	682
Collectively evaluated for impairment	18,742			3,884		22,626
Ending Balance	$	19,424		$	3,884	$	23,308

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)
	March 31, 2013						December 31, 2012
	Customer		Dealer		Total		Customer		Dealer		Total
Performing
North America	$	5,935	$	2,089	$	8,024	$	5,908	$	2,063	$	7,971
Europe	2,460		178		2,638		2,517		185		2,702
Asia Pacific	2,968		752		3,720		3,002		751		3,753
Mining	2,107		1		2,108		1,961		1		1,962
Latin America	2,690		859		3,549		2,571		884		3,455
Caterpillar Power Finance	3,017		—		3,017		2,952		—		2,952
Total Performing	$	19,177	$	3,879	$	23,056	$	18,911	$	3,884	$	22,795

Non-Performing
North America	$	48	$	—	$	48	$	59	$	—	$	59
Europe	41		—		41		38		—		38
Asia Pacific	53		—		53		36		—		36
Mining	12		—		12		12		—		12
Latin America	167		—		167		148		—		148
Caterpillar Power Finance	196		—		196		220		—		220
Total Non-Performing	$	517	$	—	$	517	$	513	$	—	$	513

Performing & Non-Performing
North America	$	5,983	$	2,089	$	8,072	$	5,967	$	2,063	$	8,030
Europe	2,501		178		2,679		2,555		185		2,740
Asia Pacific	3,021		752		3,773		3,038		751		3,789
Mining	2,119		1		2,120		1,973		1		1,974
Latin America	2,857		859		3,716		2,719		884		3,603
Caterpillar Power Finance	3,213		—		3,213		3,172		—		3,172
Total	$	19,694	$	3,879	$	23,573	$	19,424	$	3,884	$	23,308

Loans modified as TDRs

Loans in the Customer portfolio segment modified as TDRs during the three months ended March 31, 2013 and 2012, were as follows:



(Dollars in millions)
	Three Months Ended March 31, 2013					Three Months Ended March 31, 2012
	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	10	$	2	$	2	23	$	2	$	2
Europe	—	—		—		7	7		7
Caterpillar Power Finance ¹	4	36		37		5	32		32
Total ²	14	$	38	$	39	35	$	41	$	41

During the three months ended March 31, 2013, $5 million of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. The $5 million of additional funds is not reflected in the table above as no incremental modifications have been made with the borrower during the period presented. At March 31, 2013, remaining commitments to lend additional funds to a borrower whose terms have been modified in a TDR were $30 million.


²	Modifications include extended contract maturities, inclusion of interest only periods, below market interest rates, and extended skip payment periods.

TDRs with a payment default which had been modified within twelve months prior to the default date

TDRs in the Customer portfolio segment with a payment default during the three months ended March 31, 2013 and 2012, which had been modified within twelve months prior to the default date, were as follows:



(Dollars in millions)	Three Months Ended March 31, 2013			Three Months Ended March 31, 2012
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
Customer
North America	8	$	2	11	$	1
Caterpillar Power Finance	2	3		14	19
Total	10	$	5	25	$	20