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Cat Financial Financing Activities (Tables)

12 Months Ended

Dec. 31, 2019

Contractual maturities of outstanding wholesale inventory receivables



Contractual maturities of outstanding wholesale inventory receivables:
(Millions of dollars)	December 31, 2019
Amounts Due In	Wholesale Loans			Wholesale Leases			Total
2020	$	630		$	65		$	695
2021	235			48			283
2022	166			32			198
2023	61			22			83
2024	27			14			41
Thereafter	21			16			37
Total	1,140			197			1,337
Guaranteed residual value ¹	25			50			75
Unguaranteed residual value	—			33			33
Less: Unearned income	(10		)	(34		)	(44		)
Total	$	1,155		$	246		$	1,401

¹ For Wholesale loans, represents residual value on failed sale leasebacks.

Contractual maturities of outstanding finance receivables

Finance receivables are receivables of Cat Financial and are reported in Statement 3 net of an allowance for credit losses.



Contractual maturities of outstanding finance receivables:
(Millions of dollars)	December 31, 2019
Amounts Due In	Retail Loans			Retail Leases			Total
2020	$	6,280		$	3,134		$	9,414
2021	3,582			2,005			5,587
2022	2,610			1,076			3,686
2023	1,634			472			2,106
2024	622			182			804
Thereafter	417			62			479
Total	15,145			6,931			22,076
Guaranteed residual value¹	53			390			443
Unguaranteed residual value	—			798			798
Less: Unearned income	(265		)	(655		)	(920		)
Total	$	14,933		$	7,464		$	22,397

¹For Retail loans, represents residual value on failed sale leasebacks.

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, 2019
	Customer			Dealer		Total
Allowance for Credit Losses:
Balance at beginning of year	$	486		$	21	$	507
Receivables written off	(281		)	—		(281		)
Recoveries on receivables previously written off	44			—		44
Provision for credit losses	138			24		162
Other	(12		)	—		(12		)
Balance at end of year	$	375		$	45	$	420

Individually evaluated for impairment	$	178		$	39	$	217
Collectively evaluated for impairment	197			6		203
Ending Balance	$	375		$	45	$	420

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	594		$	78	$	672
Collectively evaluated for impairment	18,093			3,632		21,725
Ending Balance	$	18,687		$	3,710	$	22,397



(Millions of dollars)	December 31, 2018
	Customer			Dealer		Total
Allowance for Credit Losses:
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

In determining past-due status, Cat Financial considers the entire recorded investment in finance receivable 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, 2019
	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	$	72	$	23	$	55	$	150	$	8,038	$	8,188	$	15
EAME	30		31		141		202		2,955		3,157		4
Asia Pacific	40		14		29		83		2,440		2,523		8
Mining	5		—		19		24		1,851		1,875		—
Latin America	41		23		80		144		1,136		1,280		2
Caterpillar Power Finance	10		10		225		245		1,419		1,664		—
Dealer
North America	—		—		—		—		2,136		2,136		—
EAME	—		—		—		—		342		342		—
Asia Pacific	—		—		—		—		437		437		—
Mining	—		—		—		—		4		4		—
Latin America	—		—		78		78		712		790		—
Caterpillar Power Finance	—		—		—		—		1		1		—
Total	$	198	$	101	$	627	$	926	$	21,471	$	22,397	$	29



(Millions of dollars)	December 31, 2018
	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	$	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 allowances for the Customer portfolio segment were as follows:



	December 31, 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	$	6	$	6	$	—	$	10	$	10	$	—
EAME	—		—		—		1		1		—
Asia Pacific	—		—		—		—		—		—
Mining	22		22		—		33		33		—
Latin America	8		8		—		29		29		—
Caterpillar Power Finance	58		58		—		69		83		—
Total	$	94	$	94	$	—	$	142	$	156	$	—

Impaired Finance Receivables With An Allowance Recorded
North America	$	30	$	30	$	11	$	40	$	41	$	14
EAME	61		61		29		92		92		57
Asia Pacific	8		8		2		4		4		2
Mining	37		36		9		56		55		26
Latin America	58		58		20		75		75		25
Caterpillar Power Finance	306		319		107		449		455		164
Total	$	500	$	512	$	178	$	716	$	722	$	288

Total Impaired Finance Receivables
North America	$	36	$	36	$	11	$	50	$	51	$	14
EAME	61		61		29		93		93		57
Asia Pacific	8		8		2		4		4		2
Mining	59		58		9		89		88		26
Latin America	66		66		20		104		104		25
Caterpillar Power Finance	364		377		107		518		538		164
Total	$	594	$	606	$	178	$	858	$	878	$	288



	Years ended December 31,
	2019				2018				2017
(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	$	9	$	—	$	16	$	1	$	13	$	1
EAME	6		—		14		—		48		1
Asia Pacific	—		—		27		3		24		2
Mining	27		1		57		2		126		7
Latin America	21		1		38		2		64		3
Caterpillar Power Finance	54		3		130		7		221		9
Total	$	117	$	5	$	282	$	15	$	496	$	23

Impaired Finance Receivables With An Allowance Recorded
North America	$	34	$	2	$	49	$	2	$	49	$	1
EAME	81		2		53		2		6		—
Asia Pacific	9		1		4		—		31		2
Mining	48		2		46		3		—		—
Latin America	72		5		67		3		99		4
Caterpillar Power Finance	396		11		378		12		180		6
Total	$	640	$	23	$	597	$	22	$	365	$	13

Total Impaired Finance Receivables
North America	$	43	$	2	$	65	$	3	$	62	$	2
EAME	87		2		67		2		54		1
Asia Pacific	9		1		31		3		55		4
Mining	75		3		103		5		126		7
Latin America	93		6		105		5		163		7
Caterpillar Power Finance	450		14		508		19		401		15
Total	$	757	$	28	$	879	$	37	$	861	$	36

Investment in loans and finance leases on non-accrual status

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



	December 31,
(Millions of dollars)	2019		2018
North America	$	44	$	77
EAME	165		154
Asia Pacific	21		4
Mining	47		50
Latin America	89		106
Caterpillar Power Finance	361		416
Total	$	727	$	807

TDR tables

Cat Financial’s recorded investment in finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2019, 2018 and 2017 were as follows:



(Millions of dollars)	Year ended December 31, 2019
	Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
North America	15	$	11	$	11
EAME	19	17		17
Asia Pacific	—	—		—
Mining	2	8		8
Latin America	5	5		3
Caterpillar Power Finance	21	168		165
Total	62	$	209	$	204

	Year ended December 31, 2018
	Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
North America	38	$	21	$	21
EAME	—	—		—
Asia Pacific	—	—		—
Mining	1	29		29
Latin America	1	3		3
Caterpillar Power Finance	12	133		99
Total	52	$	186	$	152

	Year ended December 31, 2017
	Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
North America	43	$	34	$	35
EAME	4	1		1
Asia Pacific	10	39		31
Mining	2	57		56
Latin America	17	26		27
Caterpillar Power Finance ¹	68	422		407
Total	144	$	579	$	557


¹	In Caterpillar Power Finance, 48 contracts with a pre-TDR recorded investment of $265 million and a post-TDR recorded investment of $258 million were related to six customers.

TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) during the years ended December 31, 2019, 2018 and 2017 which had been modified within twelve months prior to the default date, were as follows:



(Millions of dollars)	Year ended December 31, 2019			Year ended December 31, 2018			Year ended December 31, 2017
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
North America	11	$	5	10	$	10	4	$	3
EAME	—	—		—	—		1	—
Asia Pacific	—	—		—	—		4	1
Latin America¹	—	—		3	1		243	17
Caterpillar Power Finance	1	10		3	33		—	—
Total	12	$	15	16	$	44	252	$	21


¹	In Latin America, 238 contracts with a post-TDR recorded investment of $16 million were related to two customers for the year ended December 31, 2017.