Cat Financial Financing Activities (Tables)

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Allowance for credit losses and total finance receivables

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

(Millions of dollars)	Three Months Ended September 30, 2022						Three Months Ended September 30, 2021
	Customer		Dealer		Total		Customer		Dealer		Total
Beginning balance	$	290	$	82	$	372	$	354	$	44	$	398
Write-offs	(30)		—		(30)		(91)		—		(91)
Recoveries	17		—		17		15		—		15
Provision for credit losses 1	(2)		(17)		(19)		17		38		55
Other	(5)		—		(5)		(3)		—		(3)
Ending balance	$	270	$	65	$	335	$	292	$	82	$	374
	Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
Allowance for Credit Losses:	Customer		Dealer		Total		Customer		Dealer		Total
Beginning balance	$	251	$	82	$	333	$	431	$	44	$	475
Write-offs	(68)		—		(68)		(193)		—		(193)
Recoveries	47		—		47		39		—		39
Provision for credit losses 1	46		(17)		29		20		38		58
Other	(6)		—		(6)		(5)		—		(5)
Ending balance	$	270	$	65	$	335	$	292	$	82	$	374
Finance Receivables	$	19,363	$	1,737	$	21,100	$	19,967	$	1,931	$	21,898
1 Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables.

Financing Receivable Credit Quality Indicators

The tables below summarize the aging category of Cat Financial's amortized cost of finance receivables in the Customer portfolio segment by origination year:

(Millions of dollars)	September 30, 2022
	2022		2021		2020		2019		2018		Prior		Revolving Finance Receivables		Total Finance Receivables
North America
Current	$	3,151	$	3,632	$	1,765	$	811	$	289	$	64	$	233	$	9,945
31-60 days past due	18		25		19		13		6		2		4		87
61-90 days past due	5		9		4		2		1		1		2		24
91+ days past due	5		16		13		8		5		5		5		57
EAME
Current	873		1,014		511		309		179		81		—		2,967
31-60 days past due	6		12		5		4		—		—		—		27
61-90 days past due	2		4		5		1		1		—		—		13
91+ days past due	3		21		11		5		2		1		—		43
Asia/Pacific
Current	805		765		385		95		23		4		—		2,077
31-60 days past due	5		13		11		2		1		—		—		32
61-90 days past due	1		6		6		2		—		—		—		15
91+ days past due	1		8		6		6		1		—		—		22
Mining
Current	568		625		240		203		117		112		79		1,944
31-60 days past due	—		—		—		—		—		—		—		—
61-90 days past due	—		—		—		—		—		3		—		3
91+ days past due	—		—		1		—		3		1		—		5
Latin America
Current	584		443		176		86		24		14		—		1,327
31-60 days past due	5		9		5		2		12		—		—		33
61-90 days past due	4		4		2		1		—		—		—		11
91+ days past due	—		14		14		5		4		17		—		54
Caterpillar Power Finance
Current	40		91		145		75		30		170		118		669
31-60 days past due	—		—		—		—		—		—		—		—
61-90 days past due	—		—		—		—		—		—		—		—
91+ days past due	—		—		—		—		—		8		—		8
Totals by Aging Category
Current	$	6,021	$	6,570	$	3,222	$	1,579	$	662	$	445	$	430	$	18,929
31-60 days past due	34		59		40		21		19		2		4		179
61-90 days past due	12		23		17		6		2		4		2		66
91+ days past due	9		59		45		24		15		32		5		189
Total Customer	$	6,076	$	6,711	$	3,324	$	1,630	$	698	$	483	$	441	$	19,363

(Millions of dollars)	December 31, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Finance Receivables		Total Finance Receivables
North America
Current	$	4,792	$	2,596	$	1,426	$	630	$	182	$	32	$	182	$	9,840
31-60 days past due	27		32		20		12		4		1		5		101
61-90 days past due	7		8		5		3		1		1		5		30
91+ days past due	9		17		12		13		5		4		5		65
EAME
Current	1,499		836		577		352		140		26		—		3,430
31-60 days past due	5		4		3		1		1		—		—		14
61-90 days past due	3		3		3		1		—		—		—		10
91+ days past due	3		11		2		2		—		2		—		20
Asia/Pacific
Current	1,271		803		307		71		16		2		—		2,470
31-60 days past due	10		14		10		2		—		—		—		36
61-90 days past due	3		7		4		1		—		—		—		15
91+ days past due	2		10		10		3		—		—		—		25
Mining
Current	851		347		307		193		36		161		36		1,931
31-60 days past due	6		—		—		—		—		—		—		6
61-90 days past due	1		—		—		—		4		—		—		5
91+ days past due	—		1		8		9		3		1		—		22
Latin America
Current	617		299		160		70		17		18		—		1,181
31-60 days past due	4		7		3		3		1		—		—		18
61-90 days past due	3		3		1		1		—		—		—		8
91+ days past due	4		9		9		7		7		14		—		50
Caterpillar Power Finance
Current	117		145		97		70		180		104		101		814
31-60 days past due	—		—		—		—		—		—		—		—
61-90 days past due	—		—		—		—		—		—		—		—
91+ days past due	—		—		—		—		—		44		—		44
Totals by Aging Category
Current	$	9,147	$	5,026	$	2,874	$	1,386	$	571	$	343	$	319	$	19,666
31-60 days past due	52		57		36		18		6		1		5		175
61-90 days past due	17		21		13		6		5		1		5		68
91+ days past due	18		48		41		34		15		65		5		226
Total Customer	$	9,234	$	5,152	$	2,964	$	1,444	$	597	$	410	$	334	$	20,135

Investment in finance receivables on non-accrual status

In Cat Financial's Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income were as follows:

	September 30, 2022						December 31, 2021
	Amortized Cost						Amortized Cost
(Millions of dollars)	Non-accrual With an Allowance		Non-accrual Without an Allowance		91+ Still Accruing		Non-accrual With an Allowance		Non-accrual Without an Allowance		91+ Still Accruing
North America	$	54	$	5	$	10	$	47	$	9	$	12
EAME	42		—		4		18		1		2
Asia/Pacific	15		—		7		19		—		7
Mining	6		1		—		8		1		14
Latin America	57		—		—		52		4		1
Caterpillar Power Finance	9		11		—		40		11		—
Total	$	183	$	17	$	21	$	184	$	26	$	36

Finance receivables modified as TDRs

Cat Financial’s finance receivables in the Customer portfolio segment modified as TDRs were as follows:

(Millions of dollars)	Three Months Ended September 30, 2022				Three Months Ended September 30, 2021
	Pre-TDR Amortized Cost		Post-TDR Amortized Cost		Pre-TDR Amortized Cost		Post-TDR Amortized Cost
Customer
North America	$	3	$	3	$	1	$	1
EAME	—		—		1		1
Asia/Pacific	—		—		4		4
Mining	15		15		—		—
Latin America	—		—		4		4
Caterpillar Power Finance	11		11		7		3
Total	$	29	$	29	$	17	$	13
	Nine Months Ended September 30, 2022				Nine Months Ended September 30, 2021
	Pre-TDR Amortized Cost		Post-TDR Amortized Cost		Pre-TDR Amortized Cost		Post-TDR Amortized Cost
North America	$	4	$	4	$	5	$	5
EAME	1		1		1		1
Asia/Pacific	—		—		4		4
Mining	15		15		11		5
Latin America	—		—		10		10
Caterpillar Power Finance	20		19		23		19
Total	$	40	$	39	$	54	$	44

The Post-TDR amortized costs 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:

(Millions of dollars)	Three Months Ended September 30				Nine Months Ended September 30
Customer	2022		2021		2022		2021
North America	$	—	$	—	$	—	$	1
Asia/Pacific	—		—		—		6
Mining	—		—		5		—
Latin America	—		—		—		15
Caterpillar Power Finance	—		—		—		5
Total	$	—	$	—	$	5	$	27