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Cat Financial Financing Activities (Tables)
 9 Months Ended
Sep. 30, 2017
Receivables [Abstract]  
Allowance for credit losses
An analysis of the allowance for credit losses was as follows:

 
 
 
 
 
 
 (Millions of dollars)
September 30, 2017
Allowance for Credit Losses:
Customer
 
Dealer
 
Total
Balance at beginning of year
$
331

 
$
10

 
$
341

Receivables written off
(119
)
 
—

 
(119
)
Recoveries on receivables previously written off
31

 
—

 
31

Provision for credit losses
80

 
—

 
80

Other
8

 
—

 
8

Balance at end of period
$
331

 
$
10

 
$
341

 
 

 
 

 
 

Individually evaluated for impairment
$
100

 
$
—

 
$
100

Collectively evaluated for impairment
231

 
10

 
241

Ending Balance
$
331

 
$
10

 
$
341

 
 
 
 
 
 
Recorded Investment in Finance Receivables:
 

 
 

 
 

Individually evaluated for impairment
$
869

 
$
—

 
$
869

Collectively evaluated for impairment
18,086

 
3,533

 
21,619

Ending Balance
$
18,955

 
$
3,533

 
$
22,488

 
 
 
 
 
 

 
 
 
 
 
 
 (Millions of dollars)
December 31, 2016
Allowance for Credit Losses:
Customer
 
Dealer
 
Total
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

 
 
 
 
 
 
Aging related to finance receivables
The tables below summarize the recorded investment in finance receivables by aging category.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2017
 (Millions of dollars)
31-60
Days
Past Due
 
61-90
Days
Past Due
 
91+
Days
Past Due
 
Total Past
Due
 
Current
 
Recorded Investment in Finance
Receivables
 
91+ Still
Accruing
Customer
 

 
 

 
 

 
 

 
 

 
 

 
 

North America
$
64

 
$
17

 
$
49

 
$
130

 
$
7,820

 
$
7,950

 
$
8

Europe
27

 
9

 
56

 
92

 
2,642

 
2,734

 
4

Asia Pacific
26

 
13

 
17

 
56

 
1,793

 
1,849

 
9

Mining
8

 
4

 
52

 
64

 
1,682

 
1,746

 
1

Latin America
53

 
28

 
180

 
261

 
1,657

 
1,918

 
—

Caterpillar Power Finance
11

 
34

 
124

 
169

 
2,589

 
2,758

 
11

Dealer
 

 
 

 
 

 
 
 
 
 
 
 
 

North America
—

 
—

 
—

 
—

 
2,129

 
2,129

 
—

Europe
—

 
—

 
—

 
—

 
132

 
132

 
—

Asia Pacific
—

 
—

 
—

 
—

 
555

 
555

 
—

Mining
—

 
—

 
—

 
—

 
3

 
3

 
—

Latin America
5

 
—

 
3

 
8

 
704

 
712

 
—

Caterpillar Power Finance
—

 
—

 
—

 
—

 
2

 
2

 
—

Total
$
194

 
$
105

 
$
481

 
$
780

 
$
21,708

 
$
22,488

 
$
33

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 (Millions of dollars)
31-60
Days
Past Due
 
61-90
Days
Past Due
 
91+
Days
Past Due
 
Total Past
Due
 
Current
 
Recorded Investment in 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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
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: 
 
 
September 30, 2017
 
December 31, 2016
(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
$
16

 
$
21

 
$
—

 
$
10

 
$
10

 
$
—

Europe
47

 
47

 
—

 
49

 
48

 
—

Asia Pacific
32

 
31

 
—

 
3

 
2

 
—

Mining
127

 
125

 
—

 
129

 
129

 
—

Latin America
60

 
60

 
—

 
68

 
68

 
—

Caterpillar Power Finance
187

 
200

 
—

 
271

 
271

 
—

Total
$
469

 
$
484

 
$
—

 
$
530

 
$
528

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
Impaired Finance Receivables With An Allowance Recorded
 

 
 

 
 

 
 

 
 

 
 

North America
$
36

 
$
35

 
$
13

 
$
61

 
$
60

 
$
22

Europe
8

 
8

 
5

 
7

 
7

 
3

Asia Pacific
25

 
25

 
3

 
50

 
50

 
8

Mining
—

 
—

 
—

 
—

 
—

 
—

Latin America
92

 
104

 
35

 
93

 
104

 
34

Caterpillar Power Finance
239

 
241

 
44

 
45

 
44

 
18

Total
$
400

 
$
413

 
$
100

 
$
256

 
$
265

 
$
85

 
 
 
 
 
 
 
 
 
 
 
 
Total Impaired Finance Receivables
 

 
 

 
 

 
 

 
 

 
 

North America
$
52

 
$
56

 
$
13

 
$
71

 
$
70


$
22

Europe
55

 
55

 
5

 
56

 
55


3

Asia Pacific
57

 
56

 
3

 
53

 
52


8

Mining
127

 
125

 
—

 
129

 
129

 
—

Latin America
152

 
164

 
35

 
161

 
172


34

Caterpillar Power Finance
426

 
441

 
44

 
316

 
315


18

Total
$
869

 
$
897

 
$
100

 
$
786

 
$
793

 
$
85

 
 
 
 
 
 
 
 
 
 
 
 

 
Three Months Ended
September 30, 2017
 
Three Months Ended
September 30, 2016
(Millions of dollars)
Average Recorded
Investment
 
Interest Income
Recognized
 
Average Recorded
Investment
 
Interest Income
Recognized
Impaired Finance Receivables With No Allowance Recorded
 

 
 

 
 

 
 

North America
$
14

 
$
1

 
$
24

 
$
—

Europe
47

 
—

 
49

 
1

Asia Pacific
30

 
1

 
1

 
—

Mining
128

 
1

 
90

 
2

Latin America
68

 
1

 
58

 
—

Caterpillar Power Finance
171

 
1

 
282

 
3

Total
$
458

 
$
5

 
$
504

 
$
6

 
 
 
 
 
 
 
 
Impaired Finance Receivables With An Allowance Recorded
 

 
 

 
 

 
 

North America
$
44

 
$
—

 
$
42

 
$
—

Europe
6

 
—

 
10

 
—

Asia Pacific
28

 
1

 
35

 
—

Mining
—

 
—

 
19

 
—

Latin America
102

 
1

 
67

 
1

Caterpillar Power Finance
251

 
3

 
43

 
—

Total
$
431

 
$
5

 
$
216

 
$
1

 
 
 
 
 
 
 
 
Total Impaired Finance Receivables
 

 
 

 
 

 
 

North America
$
58

 
$
1

 
$
66

 
$
—

Europe
53

 
—

 
59

 
1

Asia Pacific
58

 
2

 
36

 
—

Mining
128

 
1

 
109

 
2

Latin America
170

 
2

 
125

 
1

Caterpillar Power Finance
422

 
4

 
325

 
3

Total
$
889

 
$
10

 
$
720

 
$
7

 
 
Nine Months Ended
September 30, 2017
 
Nine Months Ended
September 30, 2016
(Millions of dollars)
Average Recorded
Investment
 
Interest Income
Recognized
 
Average Recorded
Investment
 
Interest Income
Recognized
Impaired Finance Receivables With No Allowance Recorded
 

 
 

 
 

 
 

North America
$
12

 
$
1

 
$
19

 
$
1

Europe
48

 
1

 
45

 
1

Asia Pacific
22

 
2

 
2

 
—

Mining
128

 
5

 
84

 
3

Latin America
69

 
2

 
39

 
—

Caterpillar Power Finance
233

 
7

 
269

 
8

Total
$
512

 
$
18

 
$
458

 
$
13

 
 
 
 
 
 
 
 
Impaired Finance Receivables With An Allowance Recorded
 

 
 

 
 

 
 

North America
$
52

 
$
1

 
$
28

 
$
—

Europe
6

 
—

 
11

 
—

Asia Pacific
35

 
2

 
34

 
2

Mining
—

 
—

 
15

 
—

Latin America
101

 
3

 
59

 
2

Caterpillar Power Finance
141

 
4

 
50

 
1

Total
$
335

 
$
10

 
$
197

 
$
5

 
 
 
 
 
 
 
 
Total Impaired Finance Receivables
 

 
 

 
 

 
 

North America
$
64

 
$
2

 
$
47

 
$
1

Europe
54

 
1

 
56

 
1

Asia Pacific
57

 
4

 
36

 
2

Mining
128

 
5

 
99

 
3

Latin America
170

 
5

 
98

 
2

Caterpillar Power Finance
374

 
11

 
319

 
9

Total
$
847

 
$
28

 
$
655

 
$
18

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment in finance receivables on non-accrual status
he recorded investment in customer finance receivables on non-accrual status was as follows:

 
 
 
 
 (Millions of dollars)
September 30, 2017
 
December 31, 2016
North America
$
48

 
$
66

Europe
56

 
35

Asia Pacific
11

 
12

Mining
55

 
69

Latin America
242

 
307

Caterpillar Power Finance
277

 
90

Total
$
689

 
$
579

 
 
 
 
Finance receivables modified as TDRs
Our recorded investment in finance receivables in the Customer portfolio segment modified as TDRs during the three and nine months ended September 30, 2017 and 2016, were as follows:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
  (Millions of dollars)
 
Number 
of
Contracts
 
Pre-TDR
Recorded
Investment
 
Post-TDR
Recorded
Investment
 
Number
of
Contracts
 
Pre-TDR
Recorded
Investment
 
Post-TDR
Recorded
Investment
North America
 
11
 
$
4

 
$
5

 
2
 
$
—

 
$
—

Europe
 
1
 
—

 
—

 
—
 
—

 
—

Asia Pacific
 
—
 
—

 
—

 
4
 
1

 
1

Mining
 
—
 
—

 
—

 
1
 
33

 
30

Latin America1 
 
3
 
21

 
22

 
341
 
105

 
74

Caterpillar Power Finance
 
5
 
51

 
44

 
4
 
13

 
13

Total
 
20
 
$
76

 
$
71

 
352
 
$
152

 
$
118

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
Nine Months Ended September 30, 2016
 
 
Number 
of
Contracts
 
Pre-TDR
Recorded
Investment
 
Post-TDR
Recorded
Investment
 
Number 
of
Contracts
 
Pre-TDR
Recorded
Investment
 
Post-TDR
Recorded
Investment
North America
 
37
 
$
13

 
$
13

 
15
 
$
16

 
$
16

Europe
 
2
 
—

 
—

 
3
 
11

 
8

Asia Pacific
 
6
 
39

 
30

 
8
 
4

 
4

Mining
 
2
 
57

 
56

 
2
 
43

 
35

Latin America
 
17
 
26

 
27

 
431
 
117

 
87

Caterpillar Power Finance2
 
59
 
319

 
305

 
34
 
196

 
177

Total
 
123
 
$
454

 
$
431

 
493
 
$
387

 
$
327

 
 
 
 
 
 
 
 
 
 
 
 
 
    
1 
For the three months ended September 30, 2016, 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.
2 
For the nine months ended September 30, 2017, 44 contracts with a pre-TDR recorded investment of $200 million and a post-TDR recorded investment of $200 million are related to four customers.