Cat Financial Financing Activities (Tables)

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Allowance for credit losses

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

(Millions of dollars)	September 30, 2019
Allowance for Credit Losses:	Customer			Dealer		Total
Balance at beginning of year	$	486		$	21	$	507
Receivables written off	(238		)	—		(238		)
Recoveries on receivables previously written off	31			—		31
Provision for credit losses	120			24		144
Other	(14		)	—		(14		)
Balance at end of period	$	385		$	45	$	430
Individually evaluated for impairment	$	182		$	39	$	221
Collectively evaluated for impairment	203			6		209
Ending Balance	$	385		$	45	$	430
Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	665		$	78	$	743
Collectively evaluated for impairment	17,622			3,656		21,278
Ending Balance	$	18,287		$	3,734	$	22,021

(Millions of dollars)	December 31, 2018
Allowance for Credit Losses:	Customer			Dealer		Total
Balance at beginning of year	$	353		$	9	$	362
Receivables written off	(235		)	—		(235		)
Recoveries on receivables previously written off	46			—		46
Provision for credit losses	337			12		349
Other	(15		)	—		(15		)
Balance at end of year	$	486		$	21	$	507
Individually evaluated for impairment	$	288		$	14	$	302
Collectively evaluated for impairment	198			7		205
Ending Balance	$	486		$	21	$	507
Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	858		$	78	$	936
Collectively evaluated for impairment	18,152			3,338		21,490
Ending Balance	$	19,010		$	3,416	$	22,426

Aging related to finance receivables

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

	September 30, 2019
(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	$	73	$	16	$	48	$	137	$	7,773	$	7,910	$	15
EAME	33		10		136		179		2,853		3,032		4
Asia Pacific	36		21		24		81		2,437		2,518		6
Mining	1		24		19		44		1,810		1,854		—
Latin America	43		29		93		165		1,110		1,275		1
Caterpillar Power Finance	1		1		241		243		1,455		1,698		14
Dealer
North America	—		—		—		—		2,109		2,109		—
EAME	—		—		—		—		346		346		—
Asia Pacific	—		—		—		—		434		434		—
Mining	—		—		—		—		4		4		—
Latin America	—		—		81		81		759		840		—
Caterpillar Power Finance	—		—		—		—		1		1		—
Total	$	187	$	101	$	642	$	930	$	21,091	$	22,021	$	40

	December 31, 2018
(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	$	65	$	18	$	84	$	167	$	7,825	$	7,992	$	14
EAME	19		9		153		181		2,850		3,031		5
Asia Pacific	24		9		8		41		2,409		2,450		5
Mining	28		1		9		38		1,642		1,680		—
Latin America	38		29		71		138		1,421		1,559		—
Caterpillar Power Finance	10		1		384		395		1,903		2,298		—
Dealer
North America	—		—		—		—		1,895		1,895		—
EAME	—		—		—		—		333		333		—
Asia Pacific	—		—		—		—		466		466		—
Mining	—		—		—		—		4		4		—
Latin America	—		—		78		78		638		716		—
Caterpillar Power Finance	—		—		—		—		2		2		—
Total	$	184	$	67	$	787	$	1,038	$	21,388	$	22,426	$	24

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, 2019						December 31, 2018
(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	$	9	$	9	$	—	$	10	$	10	$	—
EAME	—		—		—		1		1		—
Asia Pacific	—		—		—		—		—		—
Mining	23		23		—		33		33		—
Latin America	25		25		—		29		29		—
Caterpillar Power Finance	71		113		—		69		83		—
Total	$	128	$	170	$	—	$	142	$	156	$	—
Impaired Finance Receivables With An Allowance Recorded
North America	$	31	$	30	$	9	$	40	$	41	$	14
EAME	60		60		27		92		92		57
Asia Pacific	10		10		4		4		4		2
Mining	61		59		18		56		55		26
Latin America	66		64		22		75		75		25
Caterpillar Power Finance	309		322		102		449		455		164
Total	$	537	$	545	$	182	$	716	$	722	$	288
Total Impaired Finance Receivables
North America	$	40	$	39	$	9	$	50	$	51	$	14
EAME	60		60		27		93		93		57
Asia Pacific	10		10		4		4		4		2
Mining	84		82		18		89		88		26
Latin America	91		89		22		104		104		25
Caterpillar Power Finance	380		435		102		518		538		164
Total	$	665	$	715	$	182	$	858	$	878	$	288

	Three Months Ended September 30, 2019				Three Months Ended September 30, 2018
(Millions of dollars)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired Finance Receivables With No Allowance Recorded
North America	$	10	$	—	$	19	$	—
EAME	15		—		4		—
Asia Pacific	—		—		29		1
Mining	26		—		35		—
Latin America	22		—		37		1
Caterpillar Power Finance	57		1		94		2
Total	$	130	$	1	$	218	$	4
Impaired Finance Receivables With An Allowance Recorded
North America	$	30	$	—	$	47	$	—
EAME	80		1		59		—
Asia Pacific	12		1		2		—
Mining	65		1		60		1
Latin America	69		1		51		1
Caterpillar Power Finance	376		1		374		4
Total	$	632	$	5	$	593	$	6
Total Impaired Finance Receivables
North America	$	40	$	—	$	66	$	—
EAME	95		1		63		—
Asia Pacific	12		1		31		1
Mining	91		1		95		1
Latin America	91		1		88		2
Caterpillar Power Finance	433		2		468		6
Total	$	762	$	6	$	811	$	10

	Nine Months Ended September 30, 2019				Nine Months Ended September 30, 2018
(Millions of dollars)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired Finance Receivables With No Allowance Recorded
Customer
North America	$	10	$	—	$	17	$	1
EAME	7		—		17		—
Asia Pacific	—		—		30		2
Mining	29		1		65		2
Latin America	22		1		41		2
Caterpillar Power Finance	53		2		149		5
Total	$	121	$	4	$	319	$	12
Impaired Finance Receivables With An Allowance Recorded
Customer
North America	$	36	$	1	$	51	$	1
EAME	88		2		41		1
Asia Pacific	9		1		4		—
Mining	49		2		43		2
Latin America	73		4		69		3
Caterpillar Power Finance	422		8		364		8
Total	$	677	$	18	$	572	$	15
Total Impaired Finance Receivables
Customer
North America	$	46	$	1	$	68	$	2
EAME	95		2		58		1
Asia Pacific	9		1		34		2
Mining	78		3		108		4
Latin America	95		5		110		5
Caterpillar Power Finance	475		10		513		13
Total	$	798	$	22	$	891	$	27

Investment in finance receivables on non-accrual status

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

(Millions of dollars)	September 30, 2019		December 31, 2018
North America	$	38	$	77
EAME	168		154
Asia Pacific	19		4
Mining	44		50
Latin America	103		106
Caterpillar Power Finance	372		416
Total	$	744	$	807

Finance receivables modified as TDRs

Cat Financial’s investment in finance receivables in the Customer portfolio segment modified as TDRs during the three and nine months ended September 30, 2019 and 2018 was as follows:

	Three Months Ended September 30, 2019					Three Months Ended September 30, 2018
(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	4	$	—	$	—	4	$	—	$	—
Caterpillar Power Finance	4	56		55		2	40		40
Total	8	$	56	$	55	6	$	40	$	40
	Nine Months Ended September 30, 2019					Nine Months Ended September 30, 2018
	Number  of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment		Number  of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
North America	12	$	5	$	4	34	$	13	$	13
EAME	21	21		17		—	—		—
Mining	1	6		6		1	29		29
Latin America	4	2		2		1	3		3
Caterpillar Power Finance	19	154		152		7	93		60
Total	57	$	188	$	181	43	$	138	$	105

TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date, were as follows:

	Three Months Ended September 30, 2019			Three Months Ended September 30, 2018
(Millions of dollars)	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
Customer
North America	—	$	—	7	$	9
Latin America	—	—		1	—
Caterpillar Power Finance	—	—		3	33
Total	—	$	—	11	$	42

	Nine Months Ended September 30, 2019			Nine Months Ended September 30, 2018
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
Customer
North America	—	$	—	10	$	10
Latin America	—	—		3	1
Caterpillar Power Finance	—	—		3	33
Total	—	$	—	16	$	44