Leases (Tables)

9 Months Ended

Sep. 30, 2019

The components of lease costs were as follows:




(Millions of dollars)
	Three Months Ended September 30		Nine Months Ended September 30
	2019
Operating lease cost	$	59	$	177
Short-term lease cost	$	11	$	43

Schedule of Supplemental Balance Sheet Information Related to Leases

Supplemental information related to leases was as follows:




(Millions of dollars)
	September 30, 2019			January 1, 2019
Operating Leases
Other assets	$	632		$	713
Other current liabilities	$	178		$	209
Other liabilities	$	462		$	511

Weighted average remaining lease term
Operating leases	7 years			7 years

Weighted average discount rates
Operating leases	2		%	2		%

Schedule of Maturities of Operating and Finance Leases Liabilities

Maturities of operating lease liabilities at September 30, 2019 and minimum payments for operating leases having initial or remaining non-cancelable terms in excess of one year at December 31, 2018 were as follows:




(Millions of dollars)	September 30, 2019
Amounts Due In
Remaining three months of 2019	$	47
2020	165
2021	124
2022	77
2023	59
Thereafter	205
Total lease payments	677
Less: Imputed interest	(37		)
Total	$	640


	December 31, 2018
Amounts Due In
2019	$	205
2020	154
2021	111
2022	67
2023	50
Thereafter	185
Total	$	772

Schedule of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:




(Millions of dollars)
	Nine Months Ended September 30
	2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	170
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	87

Sales-type and Direct Financing Leases, Lease Receivable, Maturity

Contractual maturities of finance lease receivables (sales-type and direct finance leases) were as follows:




(Millions of dollars)	September 30, 2019
Amounts Due In	Retail Leases ¹			Wholesale Leases ²			Total
Remaining three months of 2019	$	889		$	30		$	919
2020	2,798			59			2,857
2021	1,733			43			1,776
2022	857			27			884
2023	366			17			383
Thereafter	176			25			201
Total	6,819			201			7,020
Guaranteed residual value	375			49			424
Unguaranteed residual value	793			37			830
Less: Unearned income	(650		)	(34		)	(684		)
Total	$	7,337		$	253		$	7,590


	December 31, 2018
Amounts Due In	Retail Leases ¹			Wholesale Leases ²			Total
2019	$	2,981		$	70		$	3,051
2020	2,026			48			2,074
2021	1,073			30			1,103
2022	453			16			469
2023	166			6			172
Thereafter	56			3			59
Total	6,755			173			6,928
Guaranteed residual value	392			66			458
Unguaranteed residual value	822			35			857
Less: Unearned income	(628		)	(16		)	(644		)
Total	$	7,341		$	258		$	7,599

¹ Included in Receivables - finance and Long-term receivables - finance on the Consolidated Statement of Financial Position.
² Included in Receivables - trade and other and Long-term receivables - trade and other in the Consolidated Statement of Financial Position. Wholesale lease receivables are receivables of Cat Financial that arise when Cat Financial provides financing for a dealer’s lease of inventory.

Schedule of Equipment under Operating Leases

The carrying amount of equipment leased to others, included in Property, plant and equipment - net in the Consolidated Statement of Financial Position, under operating leases was as follows:




(Millions of dollars)
	September 30, 2019			December 31, 2018
Equipment leased to others - at original cost	$	6,313		$	6,015
Less: Accumulated depreciation	(2,021		)	(1,744		)
Equipment leased to others - net	$	4,292		$	4,271

Lessor, Operating Lease, Payments to be Received, Maturity

Payments due for operating leases at September 30, 2019 and scheduled minimum rental payments for operating leases at December 31, 2018 were as follows:




(Millions of dollars)

September 30, 2019

Remaining Three Months of 2019	2020	2021	2022	2023	Thereafter	Total
$276	$827	$486	$250	$117	$111	$2,067

December 31, 2018

2019	2020	2021	2022	2023	Thereafter	Total
$896	$574	$314	$158	$71	$69	$2,082

Revenue from sales-type and operating lease

Revenues from finance and operating leases, primarily included in Revenues of Financial Products on the Consolidated Statement of Results of Operations, were as follows:




(Millions of dollars)
	Three Months Ended September 30		Nine Months Ended September 30
	2019
Finance lease revenue	$	136	$	390
Operating lease revenue	317		941
Total	$	453	$	1,331