Cat Financial Financing Activities (Tables)

12 Months Ended

Dec. 31, 2016

Contractual maturities of outstanding wholesale inventory receivables



Contractual maturities of outstanding wholesale inventory receivables:
(Millions of dollars)	December 31, 2016
Amounts Due In	Wholesale Installment Contracts			Wholesale Finance Leases			Wholesale Notes			Total
2017	$	147		$	60		$	765		$	972
2018	114			42			205			361
2019	75			27			127			229
2020	40			14			8			62
2021	13			5			4			22
Thereafter	—			1			14			15
	389			149			1,123			1,661
Guaranteed residual value	—			58			—			58
Unguaranteed residual value	—			35			—			35
Less: Unearned income	(7		)	(15		)	(5		)	(27		)
Total	$	382		$	227		$	1,118		$	1,727

Contractual maturities of outstanding finance receivables



Contractual maturities of outstanding finance receivables:
(Millions of dollars)	December 31, 2016
Amounts Due In	Retail Installment Contracts			Retail Finance Leases			Retail Notes			Total
2017	$	2,592		$	2,332		$	3,695		$	8,619
2018	1,951			1,547			1,893			5,391
2019	1,260			887			1,345			3,492
2020	598			407			1,126			2,131
2021	162			170			1,014			1,346
Thereafter	8			78			1,009			1,095
	6,571			5,421			10,082			22,074
Guaranteed residual value	—			295			—			295
Unguaranteed residual value	—			750			—			750
Less: Unearned income	(140		)	(503		)	(79		)	(722		)
Total	$	6,431		$	5,963		$	10,003		$	22,397

Allowance for credit losses and recorded investment in finance receivables

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



(Millions of dollars)	December 31, 2016
	Customer			Dealer		Total
Allowance for Credit Losses:
Balance at beginning of year	$	327		$	9	$	336
Receivables written off	(158		)	—		(158		)
Recoveries on receivables previously written off	35			—		35
Provision for credit losses	132			1		133
Other	(5		)	—		(5		)
Balance at end of year	$	331		$	10	$	341

Individually evaluated for impairment	$	85		$	—	$	85
Collectively evaluated for impairment	246			10		256
Ending Balance	$	331		$	10	$	341

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	786		$	—	$	786
Collectively evaluated for impairment	18,236			3,375		21,611
Ending Balance	$	19,022		$	3,375	$	22,397



(Millions of dollars)	December 31, 2015
	Customer			Dealer			Total
Allowance for Credit Losses:
Balance at beginning of year	$	388		$	10		$	398
Receivables written off	(196		)	—			(196		)
Recoveries on receivables previously written off	41			—			41
Provision for credit losses	119			(1		)	118
Other	(25		)	—			(25		)
Balance at end of year	$	327		$	9		$	336

Individually evaluated for impairment	$	65		$	—		$	65
Collectively evaluated for impairment	262			9			271
Ending Balance	$	327		$	9		$	336

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	601		$	—		$	601
Collectively evaluated for impairment	18,788			3,570			22,358
Ending Balance	$	19,389		$	3,570		$	22,959

In determining past-due status, Cat Financial considers the entire finance receivable balance past due when any installment is over 30 days past due. The tables below summarize the recorded investment of finance receivables by aging category.



(Millions of dollars)	December 31, 2016
	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	$	50	$	16	$	59	$	125	$	7,938	$	8,063	$	5
Europe	16		12		39		67		2,388		2,455		6
Asia Pacific	17		7		15		39		1,435		1,474		4
Mining	3		2		63		68		1,756		1,824		2
Latin America	40		33		214		287		1,808		2,095		—
Caterpillar Power Finance	11		9		73		93		3,018		3,111		1
Dealer
North America	—		—		—		—		1,916		1,916		—
Europe	—		—		—		—		161		161		—
Asia Pacific	—		—		—		—		541		541		—
Mining	—		—		—		—		3		3		—
Latin America	—		—		—		—		752		752		—
Caterpillar Power Finance	—		—		—		—		2		2		—
Total	$	137	$	79	$	463	$	679	$	21,718	$	22,397	$	18



(Millions of dollars)	December 31, 2015
	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	$	45	$	12	$	30	$	87	$	7,850	$	7,937	$	4
Europe	18		7		44		69		2,358		2,427		9
Asia Pacific	21		12		21		54		1,647		1,701		6
Mining	6		1		68		75		1,793		1,868		1
Latin America	45		31		199		275		1,998		2,273		—
Caterpillar Power Finance	—		1		35		36		3,147		3,183		2
Dealer
North America	—		—		—		—		2,209		2,209		—
Europe	—		—		—		—		149		149		—
Asia Pacific	—		—		—		—		552		552		—
Mining	—		—		—		—		4		4		—
Latin America	—		—		—		—		653		653		—
Caterpillar Power Finance	—		—		—		—		3		3		—
Total	$	135	$	64	$	397	$	596	$	22,363	$	22,959	$	22

Impaired finance receivables

Cat Financial’s recorded investment in impaired finance receivables and the related unpaid principal balances and allowance for the Customer portfolio segment were as follows:



	December 31, 2016						December 31, 2015
(Millions of dollars)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired Finance Receivables With No Allowance Recorded
North America	$	10	$	10	$	—	$	12	$	12	$	—
Europe	49		48		—		41		41		—
Asia Pacific	3		2		—		1		1		—
Mining	129		129		—		84		84		—
Latin America	68		68		—		28		28		—
Caterpillar Power Finance	271		271		—		242		241		—
Total	$	530	$	528	$	—	$	408	$	407	$	—

Impaired Finance Receivables With An Allowance Recorded
North America	$	61	$	60	$	22	$	14	$	13	$	4
Europe	7		7		3		11		10		5
Asia Pacific	50		50		8		34		34		4
Mining	—		—		—		11		11		3
Latin America	93		104		34		53		53		21
Caterpillar Power Finance	45		44		18		70		70		28
Total	$	256	$	265	$	85	$	193	$	191	$	65

Total Impaired Finance Receivables
North America	$	71	$	70	$	22	$	26	$	25	$	4
Europe	56		55		3		52		51		5
Asia Pacific	53		52		8		35		35		4
Mining	129		129		—		95		95		3
Latin America	161		172		34		81		81		21
Caterpillar Power Finance	316		315		18		312		311		28
Total	$	786	$	793	$	85	$	601	$	598	$	65



	Years ended December 31,
	2016				2015				2014
(Millions of dollars)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired Finance Receivables With No Allowance Recorded
North America	$	18	$	1	$	12	$	1	$	20	$	1
Europe	46		1		42		1		47		1
Asia Pacific	2		—		2		—		3		—
Mining	98		4		75		3		69		3
Latin America	47		1		31		—		30		—
Caterpillar Power Finance	270		11		170		5		164		6
Total	$	481	$	18	$	332	$	10	$	333	$	11

Impaired Finance Receivables With An Allowance Recorded
North America	$	34	$	—	$	9	$	—	$	9	$	—
Europe	11		1		14		1		21		1
Asia Pacific	37		3		35		2		22		1
Mining	13		—		39		1		90		7
Latin America	66		2		56		3		36		1
Caterpillar Power Finance	50		1		115		3		96		2
Total	$	211	$	7	$	268	$	10	$	274	$	12

Total Impaired Finance Receivables
North America	$	52	$	1	$	21	$	1	$	29	$	1
Europe	57		2		56		2		68		2
Asia Pacific	39		3		37		2		25		1
Mining	111		4		114		4		159		10
Latin America	113		3		87		3		66		1
Caterpillar Power Finance	320		12		285		8		260		8
Total	$	692	$	25	$	600	$	20	$	607	$	23

Investment in loans and finance leases on non-accrual status

The recorded investment in customer finance receivable on non-accrual status was as follows:



	December 31,
(Millions of dollars)	2016		2015
North America	$	66	$	31
Europe	35		39
Asia Pacific	12		15
Mining	69		106
Latin America	307		217
Caterpillar Power Finance	90		77
Total	$	579	$	485

Loans and finance receivables modified as TDRs

TDRs in the Customer portfolio segment with a payment default during the years ended December 31, 2016, 2015 and 2014 which had been modified within twelve months prior to the default date, were as follows:



(Millions of dollars)	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2014
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
North America	17	$	3	12	$	1	11	$	1
Europe	16	9		—	—		46	2
Asia Pacific	3	—		—	—		—	—
Latin America	7	3		12	1		11	1
Total	43	$	15	24	$	2	68	$	4

Finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2016, 2015 and 2014 were as follows:



(Millions of dollars)	Year ended December 31, 2016
	Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
North America	25	$	25	$	25
Europe	43	12		9
Asia Pacific	31	29		28
Mining	4	74		66
Latin America ¹	437	118		82
Caterpillar Power Finance	34	196		177
Total	574	$	454	$	387

	Year ended December 31, 2015
	Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
North America	14	$	1	$	1
Europe	23	2		2
Asia Pacific	21	26		26
Mining	4	65		65
Latin America	11	1		2
Caterpillar Power Finance	21	259		242
Total	94	$	354	$	338

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


¹	In Latin America, 321 contracts with a pre-TDR recorded investment of $94 million and a post-TDR recorded investment of $64 million are related to four customers.

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



(Millions of dollars)	Year ended December 31, 2016			Year ended December 31, 2015			Year ended December 31, 2014
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
North America	17	$	3	12	$	1	11	$	1
Europe	16	9		—	—		46	2
Asia Pacific	3	—		—	—		—	—
Latin America	7	3		12	1		11	1
Total	43	$	15	24	$	2	68	$	4

Finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2016, 2015 and 2014 were as follows:



(Millions of dollars)	Year ended December 31, 2016
	Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
North America	25	$	25	$	25
Europe	43	12		9
Asia Pacific	31	29		28
Mining	4	74		66
Latin America ¹	437	118		82
Caterpillar Power Finance	34	196		177
Total	574	$	454	$	387

	Year ended December 31, 2015
	Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
North America	14	$	1	$	1
Europe	23	2		2
Asia Pacific	21	26		26
Mining	4	65		65
Latin America	11	1		2
Caterpillar Power Finance	21	259		242
Total	94	$	354	$	338

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


¹	In Latin America, 321 contracts with a pre-TDR recorded investment of $94 million and a post-TDR recorded investment of $64 million are related to four customers.