Cat Financial Financing Activities (Tables)

9 Months Ended

Sep. 30, 2011

Cat Financial Financing Activities

Impaired loans and finance leases

(Millions of dollars)	As of September 30, 2011			As of December 31, 2010
	Recorded Investment	Unpaid Principal Balance	Related Allowance	Recorded Investment	Unpaid Principal Balance	Related Allowance
Impaired Loans and Finance Leases With No Allowance Recorded1
Customer
North America	$84	$82	$—	$87	$87	$—
Europe	4	3	—	6	4	—
Asia Pacific	14	13	—	13	13	—
Latin America	8	8	—	3	3	—
Global Power Finance	196	196	—	174	174	—
Total	$306	$302	$—	$283	$281	$—
Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$110	$105	$25	$191	$185	$44
Europe	39	35	13	62	57	15
Asia Pacific	21	21	4	27	27	7
Latin America	24	24	5	44	43	9
Global Power Finance	104	103	18	34	33	4
Total	$298	$288	$65	$358	$345	$79
Total Impaired Loans and Finance Leases
Customer
North America	$194	$187	$25	$278	$272	$44
Europe	43	38	13	68	61	15
Asia Pacific	35	34	4	40	40	7
Latin America	32	32	5	47	46	9
Global Power Finance	300	299	18	208	207	4
Total	$604	$590	$65	$641	$626	$79

1  No related allowance for credit losses due to sufficient collateral value.

	Three Months Ended September 30, 2011		Three Months Ended September 30, 2010
(Millions of dollars)	Average Recorded Investment	Interest Income Recognized	Average Recorded Investment	Interest Income Recognized
Impaired Loans and Finance Leases With No Allowance Recorded1
Customer
North America	$92	$1	$43	$1
Europe	5	—	4	—
Asia Pacific	13	1	7	1
Latin America	12	—	4	—
Global Power Finance	231	—	113	—
Total	$353	$2	$171	$2
Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$125	$—	$270	$2
Europe	44	1	84	1
Asia Pacific	18	—	41	—
Latin America	40	—	37	1
Global Power Finance	126	—	10	—
Total	$353	$1	$442	$4
Total Impaired Loans and Finance Leases
Customer
North America	$217	$1	$313	$3
Europe	49	1	88	1
Asia Pacific	31	1	48	1
Latin America	52	—	41	1
Global Power Finance	357	—	123	—
Total	$706	$3	$613	$6
1No related allowance for credit losses due to sufficient collateral value.

	Nine Months Ended September 30, 2011		Nine Months Ended September 30, 2010
(Millions of dollars)	Average Recorded Investment	Interest Income Recognized	Average Recorded Investment	Interest Income Recognized
Impaired Loans and Finance Leases With No Allowance Recorded1
Customer
North America	$93	$3	$29	$1
Europe	6	—	7	—
Asia Pacific	13	1	7	1
Latin America	8	—	4	—
Global Power Finance	223	1	74	—
Total	$343	$5	$121	$2
Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$160	$4	$292	$9
Europe	53	2	90	3
Asia Pacific	21	1	44	2
Latin America	44	2	34	2
Global Power Finance	79	—	13	—
Total	$357	$9	$473	$16
Total Impaired Loans and Finance Leases
Customer
North America	$253	$7	$321	$10
Europe	59	2	97	3
Asia Pacific	34	2	51	3
Latin America	52	2	38	2
Global Power Finance	302	1	87	—
Total	$700	$14	$594	$18
1  No related allowance for credit losses due to sufficient collateral value.

Investment in loans and finance leases on non-accrual status

(Millions of dollars)
	September 30, 2011	December 31, 2010
Customer
North America	$149	$217
Europe	112	89
Asia Pacific	39	31
Latin America	116	139
Global Power Finance	211	163
Total	$627	$639

Past due loans and finance leases

(Millions of dollars)
	September 30, 2011
	31-60	61-90	91+	Total Past Due	Current	Total Finance Receivables	91+ Still Accruing
Customer
North America	$89	$31	$138	$258	$5,214	$5,472	$13
Europe	31	18	113	162	2,142	2,304	10
Asia Pacific	59	23	53	135	4,028	4,163	16
Latin America	45	17	104	166	2,267	2,433	—
Global Power Finance	52	16	111	179	2,739	2,918	10
Dealer
North America	—	—	—	—	1,735	1,735	—
Europe	—	—	—	—	64	64	—
Asia Pacific	—	—	—	—	155	155	—
Latin America	—	—	—	—	478	478	—
Total	$276	$105	$519	$900	$18,822	$19,722	$49

(Millions of dollars)
	December 31, 2010
	31-60	61-90	91+	Total Past Due	Current	Total Finance Receivables	91+ Still Accruing
Customer
North America	$139	$44	$228	$411	$6,037	$6,448	$27
Europe	27	12	106	145	2,365	2,510	26
Asia Pacific	63	17	37	117	3,412	3,529	12
Latin America	44	16	144	204	2,222	2,426	1
Global Power Finance	18	17	54	89	2,978	3,067	25
Dealer
North America	—	—	—	—	1,291	1,291	—
Europe	—	—	—	—	41	41	—
Asia Pacific	—	—	—	—	151	151	—
Latin America	—	—	—	—	457	457	—
Global Power Finance	—	—	—	—	3	3	—
Total	$291	$106	$569	$966	$18,957	$19,923	$91

Allowance for credit loss activity and recorded investment in finance receivables

(Millions of dollars)
	September 30, 2011
Allowance for Credit Losses:	Customer	Dealer	Total
Balance at beginning of year	$357	$5	$362
Provision for credit losses	119	1	120
Receivables written off	(159)	—	(159)
Recoveries on receivables previously written off	39	—	39
Adjustment due to sale of receivables	(1)	—	(1)
Foreign currency translation adjustment	(2)	—	(2)
Balance at end of period	$353	$6	$359
Allowance for Credit Losses:
Individually evaluated for impairment	$65	$—	$65
Collectively evaluated for impairment	288	6	294
Ending Balance	$353	$6	$359
Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$604	$—	$604
Collectively evaluated for impairment	16,686	2,432	19,118
Ending Balance	$17,290	$2,432	$19,722

(Millions of dollars)
	December 31, 2010
Allowance for Credit Losses:			Total
Balance at beginning of year			$376
Provision for credit losses			205
Receivables written off			(288)
Recoveries on receivables previously written off			51
Adjustment to adopt consolidation of variable-interest entities			18
Balance at end of year			$362
Allowance for Credit Losses:	Customer	Dealer	Total
Individually evaluated for impairment	$79	$—	$79
Collectively evaluated for impairment	278	5	283
Ending Balance	$357	$5	$362
Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$641	$—	$641
Collectively evaluated for impairment	17,339	1,943	19,282
Ending Balance	$17,980	$1,943	$19,923

Recorded investment of performing and non-performing finance receivables

(Millions of dollars)

	September 30, 2011			December 31, 2010
	Customer	Dealer	Total	Customer	Dealer	Total
Performing
North America	$5,323	$1,735	$7,058	$6,231	$1,291	$7,522
Europe	2,192	64	2,256	2,421	41	2,462
Asia Pacific	4,124	155	4,279	3,498	151	3,649
Latin America	2,317	478	2,795	2,287	457	2,744
Global Power Finance	2,707	—	2,707	2,904	3	2,907
Total Performing	$16,663	$2,432	$19,095	$17,341	$1,943	$19,284
Non-Performing
North America	$149	$—	$149	$217	$—	$217
Europe	112	—	112	89	—	89
Asia Pacific	39	—	39	31	—	31
Latin America	116	—	116	139	—	139
Global Power Finance	211	—	211	163	—	163
Total Non-Performing	$627	$—	$627	$639	$—	$639
Performing & Non-Performing
North America	$5,472	$1,735	$7,207	$6,448	$1,291	$7,739
Europe	2,304	64	2,368	2,510	41	2,551
Asia Pacific	4,163	155	4,318	3,529	151	3,680
Latin America	2,433	478	2,911	2,426	457	2,883
Global Power Finance	2,918	—	2,918	3,067	3	3,070
Total	$17,290	$2,432	$19,722	$17,980	$1,943	$19,923

Schedule of Troubled Debt Restructurings

(Dollars in millions)
	Three Months Ended September 30, 2011			Nine Months Ended September 30, 2011
	Number of Contracts	Pre-TDR Outstanding Recorded Investment	Post-TDR Outstanding Recorded Investment	Number of Contracts	Pre-TDR Outstanding Recorded Investment	Post-TDR Outstanding Recorded  Investment
Customer
North America	14	$2	$2	53	$11	$11
Europe	—	—	—	6	7	7
Latin America	—	—	—	12	10	10
Global Power Finance1,2	—	—	—	31	113	113
Total3	14	$2	$2	102	$141	$141
1 During the nine months ended September 30, 2011, $11 million of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR.  The $11 million of additional funds is not reflected in the table above.   At September 30, 2011, remaining commitments to lend additional funds to a borrower whose terms have been modified in a TDR were $2 million.  2 Three customers comprise $104 million of the $113 million pre-TDR and post-TDR outstanding recorded investment for the nine months ended September 30, 2011. 3 Modifications include extended contract maturities, inclusion of interest only periods, below market interest rates, and extended skip payment periods.

Troubled Debt Restructurings modified within twelve months prior to the default date

(Dollars in millions)	Three Months Ended September 30, 2011		Nine Months Ended September 30, 2011
	Number of Contracts	Post-TDR Recorded Investment	Number of Contracts	Post-TDRRecorded Investment
Customer
North America	3	$16	44	$25
Europe	—	—	1	1
Latin America	7	4	7	4
Global Power Finance	5	65	14	70
Total	15	$85	66	$100