Cat Financial Financing Activities (Tables)

12 Months Ended

Dec. 31, 2014

Contractual maturities of outstanding wholesale inventory receivables



Contractual maturities of outstanding wholesale inventory receivables:
(Millions of dollars)	December 31, 2014
Amounts Due In	Wholesale Installment Contracts			Wholesale Finance Leases			Wholesale Notes			Total
2015	$	200		$	109		$	867		$	1,176
2016	109			85			262			456
2017	70			58			202			330
2018	39			27			17			83
2019	15			7			—			22
Thereafter	3			2			—			5
	436			288			1,348			2,072
Guaranteed residual value	—			98			—			98
Unguaranteed residual value	—			38			—			38
Less: Unearned income	(7		)	(28		)	(3		)	(38		)
Total	$	429		$	396		$	1,345		$	2,170

Contractual maturities of outstanding finance receivables



Contractual maturities of outstanding finance receivables:
(Millions of dollars)	December 31, 2014
Amounts Due In	Retail Installment Contracts			Retail Finance Leases			Retail Notes			Total
2015	$	2,308		$	2,956		$	3,891		$	9,155
2016	1,736			2,064			2,238			6,038
2017	1,184			1,159			1,896			4,239
2018	587			513			1,069			2,169
2019	174			209			848			1,231
Thereafter	10			131			970			1,111
	5,999			7,032			10,912			23,943
Guaranteed residual value	—			323			—			323
Unguaranteed residual value	—			622			—			622
Less: Unearned income	(106		)	(630		)	(86		)	(822		)
Total	$	5,893		$	7,347		$	10,826		$	24,066

Impaired loans and finance leases

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



	December 31, 2014
(Millions of dollars)	Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired Loans and Finance Leases With No Allowance Recorded
Customer
North America	$	14	$	14	$	—
Europe	44		43		—
Asia Pacific	1		1		—
Mining	29		29		—
Latin America	34		34		—
Caterpillar Power Finance	129		128		—
Total	$	251	$	249	$	—

Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$	6	$	6	$	1
Europe	12		12		4
Asia Pacific	29		29		8
Mining	138		137		9
Latin America	42		42		12
Caterpillar Power Finance	135		134		41
Total	$	362	$	360	$	75

Total Impaired Loans and Finance Leases
Customer
North America	$	20	$	20	$	1
Europe	56		55		4
Asia Pacific	30		30		8
Mining	167		166		9
Latin America	76		76		12
Caterpillar Power Finance	264		262		41
Total	$	613	$	609	$	75



	December 31, 2013
(Millions of dollars)	Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired Loans and Finance Leases With No Allowance Recorded
Customer
North America	$	23	$	22	$	—
Europe	48		47		—
Asia Pacific	7		7		—
Mining	134		134		—
Latin America	11		11		—
Caterpillar Power Finance	223		222		—
Total	$	446	$	443	$	—

Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$	13	$	13	$	4
Europe	20		19		7
Asia Pacific	16		16		2
Mining	—		—		—
Latin America	23		23		6
Caterpillar Power Finance	110		106		51
Total	$	182	$	177	$	70

Total Impaired Loans and Finance Leases
Customer
North America	$	36	$	35	$	4
Europe	68		66		7
Asia Pacific	23		23		2
Mining	134		134		—
Latin America	34		34		6
Caterpillar Power Finance	333		328		51
Total	$	628	$	620	$	70



	December 31, 2012
(Millions of dollars)	Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired Loans and Finance Leases With No Allowance Recorded
Customer
North America	$	28	$	27	$	—
Europe	45		45		—
Asia Pacific	2		2		—
Mining	1		1		—
Latin America	7		7		—
Caterpillar Power Finance	295		295		—
Total	$	378	$	377	$	—

Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$	25	$	23	$	7
Europe	28		26		11
Asia Pacific	19		19		4
Mining	—		—		—
Latin America	30		30		8
Caterpillar Power Finance	113		109		24
Total	$	215	$	207	$	54

Total Impaired Loans and Finance Leases
Customer
North America	$	53	$	50	$	7
Europe	73		71		11
Asia Pacific	21		21		4
Mining	1		1		—
Latin America	37		37		8
Caterpillar Power Finance	408		404		24
Total	$	593	$	584	$	54



	Years ended December 31,
	2014				2013				2012
(Millions of dollars)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired Loans and Finance Leases With No Allowance Recorded
Customer
North America	$	20	$	1	$	25	$	3	$	50	$	3
Europe	47		1		49		1		45		1
Asia Pacific	3		—		4		—		3		—
Mining	69		3		61		3		8		—
Latin America	30		—		11		—		6		—
Caterpillar Power Finance	164		6		271		5		220		2
Total	$	333	$	11	$	421	$	12	$	332	$	6

Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$	9	$	—	$	18	$	1	$	25	$	1
Europe	21		1		22		1		27		1
Asia Pacific	22		1		18		1		15		1
Mining	90		7		1		—		—		—
Latin America	36		1		44		2		27		2
Caterpillar Power Finance	96		2		135		1		94		—
Total	$	274	$	12	$	238	$	6	$	188	$	5

Total Impaired Loans and Finance Leases
Customer
North America	$	29	$	1	$	43	$	4	$	75	$	4
Europe	68		2		71		2		72		2
Asia Pacific	25		1		22		1		18		1
Mining	159		10		62		3		8		—
Latin America	66		1		55		2		33		2
Caterpillar Power Finance	260		8		406		6		314		2
Total	$	607	$	23	$	659	$	18	$	520	$	11

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:



	December 31,
(Millions of dollars)	2014		2013		2012
Customer
North America	$	27	$	26	$	59
Europe	28		28		38
Asia Pacific	54		50		36
Mining	62		23		12
Latin America	201		179		148
Caterpillar Power Finance	96		119		220
Total	$	468	$	425	$	513

Aging related to loans and finance leases was as follows:



(Millions of dollars)	December 31, 2014
	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	$	46	$	8	$	27	$	81	$	7,192	$	7,273	$	4
Europe	16		23		29		68		2,607		2,675		6
Asia Pacific	29		22		69		120		2,316		2,436		16
Mining	28		—		11		39		2,084		2,123		—
Latin America	55		23		196		274		2,583		2,857		8
Caterpillar Power Finance	1		4		64		69		3,079		3,148		1
Dealer
North America	—		—		—		—		2,189		2,189		—
Europe	—		—		—		—		153		153		—
Asia Pacific	—		—		—		—		566		566		—
Mining	—		—		—		—		—		—		—
Latin America	—		—		—		—		646		646		—
Caterpillar Power Finance	—		—		—		—		—		—		—
Total	$	175	$	80	$	396	$	651	$	23,415	$	24,066	$	35



(Millions of dollars)	December 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	$	37	$	12	$	24	$	73	$	6,508	$	6,581	$	—
Europe	26		15		29		70		2,805		2,875		6
Asia Pacific	54		23		59		136		2,752		2,888		11
Mining	3		—		12		15		2,128		2,143		—
Latin America	54		25		165		244		2,474		2,718		5
Caterpillar Power Finance	55		30		60		145		2,946		3,091		—
Dealer
North America	—		—		—		—		2,283		2,283		—
Europe	—		—		—		—		150		150		—
Asia Pacific	—		—		—		—		583		583		—
Mining	—		—		—		—		1		1		—
Latin America	—		—		—		—		748		748		—
Caterpillar Power Finance	—		—		—		—		—		—		—
Total	$	229	$	105	$	349	$	683	$	23,378	$	24,061	$	22



(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		—
Caterpillar Power Finance	—		—		—		—		—		—		—
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 during 2014, 2013 and 2012 was as follows:



(Millions of dollars)	December 31, 2014
	Customer			Dealer		Total
Allowance for Credit Losses:
Balance at beginning of year	$	365		$	10	$	375
Receivables written off	(151		)	—		(151		)
Recoveries on receivables previously written off	47			—		47
Provision for credit losses	150			—		150
Other	(23		)	—		(23		)
Balance at end of year	$	388		$	10	$	398

Individually evaluated for impairment	$	75		$	—	$	75
Collectively evaluated for impairment	313			10		323
Ending Balance	$	388		$	10	$	398

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	613		$	—	$	613
Collectively evaluated for impairment	19,899			3,554		23,453
Ending Balance	$	20,512		$	3,554	$	24,066



(Millions of dollars)	December 31, 2013
	Customer			Dealer		Total
Allowance for Credit Losses:
Balance at beginning of year	$	414		$	9	$	423
Receivables written off	(179		)	—		(179		)
Recoveries on receivables previously written off	56			—		56
Provision for credit losses	83			1		84
Other	(9		)	—		(9		)
Balance at end of year	$	365		$	10	$	375

Individually evaluated for impairment	$	70		$	—	$	70
Collectively evaluated for impairment	295			10		305
Ending Balance	$	365		$	10	$	375

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	628		$	—	$	628
Collectively evaluated for impairment	19,668			3,765		23,433
Ending Balance	$	20,296		$	3,765	$	24,061



(Millions of dollars)	December 31, 2012
	Customer			Dealer		Total
Allowance for Credit Losses:
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	$	54		$	—	$	54
Collectively evaluated for impairment	360			9		369
Ending Balance	$	414		$	9	$	423

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	593		$	—	$	593
Collectively evaluated for impairment	18,831			3,884		22,715
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)	December 31, 2014
	Customer		Dealer		Total
Performing
North America	$	7,246	$	2,189	$	9,435
Europe	2,647		153		2,800
Asia Pacific	2,382		566		2,948
Mining	2,061		—		2,061
Latin America	2,656		646		3,302
Caterpillar Power Finance	3,052		—		3,052
Total Performing	$	20,044	$	3,554	$	23,598

Non-Performing
North America	$	27	$	—	$	27
Europe	28		—		28
Asia Pacific	54		—		54
Mining	62		—		62
Latin America	201		—		201
Caterpillar Power Finance	96		—		96
Total Non-Performing	$	468	$	—	$	468

Performing & Non-Performing
North America	$	7,273	$	2,189	$	9,462
Europe	2,675		153		2,828
Asia Pacific	2,436		566		3,002
Mining	2,123		—		2,123
Latin America	2,857		646		3,503
Caterpillar Power Finance	3,148		—		3,148
Total	$	20,512	$	3,554	$	24,066



(Millions of dollars)	December 31, 2013
	Customer		Dealer		Total
Performing
North America	$	6,555	$	2,283	$	8,838
Europe	2,847		150		2,997
Asia Pacific	2,838		583		3,421
Mining	2,120		1		2,121
Latin America	2,539		748		3,287
Caterpillar Power Finance	2,972		—		2,972
Total Performing	$	19,871	$	3,765	$	23,636

Non-Performing
North America	$	26	$	—	$	26
Europe	28		—		28
Asia Pacific	50		—		50
Mining	23		—		23
Latin America	179		—		179
Caterpillar Power Finance	119		—		119
Total Non-Performing	$	425	$	—	$	425

Performing & Non-Performing
North America	$	6,581	$	2,283	$	8,864
Europe	2,875		150		3,025
Asia Pacific	2,888		583		3,471
Mining	2,143		1		2,144
Latin America	2,718		748		3,466
Caterpillar Power Finance	3,091		—		3,091
Total	$	20,296	$	3,765	$	24,061



(Millions of dollars)	December 31, 2012
	Customer		Dealer		Total
Performing
North America	$	5,908	$	2,063	$	7,971
Europe	2,517		185		2,702
Asia Pacific	3,002		751		3,753
Mining	1,961		1		1,962
Latin America	2,571		884		3,455
Caterpillar Power Finance	2,952		—		2,952
Total Performing	$	18,911	$	3,884	$	22,795

Non-Performing
North America	$	59	$	—	$	59
Europe	38		—		38
Asia Pacific	36		—		36
Mining	12		—		12
Latin America	148		—		148
Caterpillar Power Finance	220		—		220
Total Non-Performing	$	513	$	—	$	513

Performing & Non-Performing
North America	$	5,967	$	2,063	$	8,030
Europe	2,555		185		2,740
Asia Pacific	3,038		751		3,789
Mining	1,973		1		1,974
Latin America	2,719		884		3,603
Caterpillar Power Finance	3,172		—		3,172
Total	$	19,424	$	3,884	$	23,308

Loans and finance receivables modified as TDRs

Loan and finance lease receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2014, 2013, and 2012 were as follows:



(Millions of dollars)	Year ended December 31, 2014
	Number of Contracts	Pre-TDR Outstanding Recorded Investment		Post-TDR Outstanding Recorded Investment
Customer
North America	34	$	12	$	7
Europe	8	7		7
Asia Pacific	2	—		—
Mining	51	185		176
Latin America	51	32		31
Caterpillar Power Finance ¹	18	137		139
Total ²	164	$	373	$	360

	Year ended December 31, 2013
	Number of Contracts	Pre-TDR Outstanding Recorded Investment		Post-TDR Outstanding Recorded Investment
Customer
North America	62	$	9	$	9
Europe	51	7		7
Asia Pacific	3	1		1
Mining	45	123		123
Latin America	16	2		2
Caterpillar Power Finance ¹	17	153		157
Total ²	194	$	295	$	299

	Year ended December 31, 2012
	Number of Contracts	Pre-TDR Outstanding Recorded Investment		Post-TDR Outstanding Recorded Investment
Customer
North America	98	$	15	$	15
Europe	21	8		8
Asia Pacific	12	3		3
Mining	—	—		—
Latin America	41	5		5
Caterpillar Power Finance ¹	27	253		253
Total ²	199	$	284	$	284

During the year ended December 31, 2014, no additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. During the years ended December 31, 2013 and 2012, $25 million and $24 million, respectively, of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. The $25 million and $24 million of additional funds are not reflected in the table above as no incremental modifications have been made with the borrower during the periods presented. At December 31, 2014, there were no remaining commitments to lend additional funds to a borrower whose terms have been modified in a TDR.


²	Modifications include extended contract maturities, inclusion of interest only periods, below market interest rates, extended skip payment periods and reduction of principal and/or accrued interest.

TDRs in the Customer portfolio segment with a payment default during the years ended December 31, 2014, 2013, and 2012 which had been modified within twelve months prior to the default date, were as follows:



(Millions of dollars)	Year ended December 31, 2014			Year ended December 31, 2013			Year ended December 31, 2012
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
Customer
North America	11	$	1	19	$	4	49	$	4
Europe	46	2		5	—		—	—
Asia Pacific	—	—		—	—		2	1
Mining	—	—		—	—		—	—
Latin America	11	1		—	—		—	—
Caterpillar Power Finance	—	—		2	3		16	21
Total	68	$	4	26	$	7	67	$	26

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

Loan and finance lease receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2014, 2013, and 2012 were as follows:



(Millions of dollars)	Year ended December 31, 2014
	Number of Contracts	Pre-TDR Outstanding Recorded Investment		Post-TDR Outstanding Recorded Investment
Customer
North America	34	$	12	$	7
Europe	8	7		7
Asia Pacific	2	—		—
Mining	51	185		176
Latin America	51	32		31
Caterpillar Power Finance ¹	18	137		139
Total ²	164	$	373	$	360

	Year ended December 31, 2013
	Number of Contracts	Pre-TDR Outstanding Recorded Investment		Post-TDR Outstanding Recorded Investment
Customer
North America	62	$	9	$	9
Europe	51	7		7
Asia Pacific	3	1		1
Mining	45	123		123
Latin America	16	2		2
Caterpillar Power Finance ¹	17	153		157
Total ²	194	$	295	$	299

	Year ended December 31, 2012
	Number of Contracts	Pre-TDR Outstanding Recorded Investment		Post-TDR Outstanding Recorded Investment
Customer
North America	98	$	15	$	15
Europe	21	8		8
Asia Pacific	12	3		3
Mining	—	—		—
Latin America	41	5		5
Caterpillar Power Finance ¹	27	253		253
Total ²	199	$	284	$	284


²	Modifications include extended contract maturities, inclusion of interest only periods, below market interest rates, extended skip payment periods and reduction of principal and/or accrued interest.



(Millions of dollars)	Year ended December 31, 2014			Year ended December 31, 2013			Year ended December 31, 2012
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
Customer
North America	11	$	1	19	$	4	49	$	4
Europe	46	2		5	—		—	—
Asia Pacific	—	—		—	—		2	1
Mining	—	—		—	—		—	—
Latin America	11	1		—	—		—	—
Caterpillar Power Finance	—	—		2	3		16	21
Total	68	$	4	26	$	7	67	$	26