RECEIVABLES (Tables)

9 Months Ended

Sep. 30, 2020

A summary of financing receivables as of September 30, 2020 and December 31, 2019 is as follows:


	September 30, 2020		December 31, 2019
	(in millions)
Retail	$	8,820	$	9,218
Wholesale	8,205		10,081
Other	73		129
Total	$	17,098	$	19,428

Summary of Aging of Financing Receivables

The aging of financing receivables as of September 30, 2020 and December 31, 2019 is as follows (in millions):



	31-60 Days Past Due		61-90 Days Past Due		Total Past Due		Current		Total Performing		Non- Performing		Total
Retail
North America
2020									$	1,902	$	1	$	1,903
2019									1,795		5		1,800
2018									1,198		3		1,201
2017									653		3		656
2016									342		2		344
Prior to 2016									150		2		152
Total	$	40	$	2	$	42	$	5,998	$	6,040	$	16	$	6,056
South America
2020									$	583	$	1	$	584
2019									444		9		453
2018									294		9		303
2017									164		5		169
2016									83		3		86
Prior to 2016									67		4		71
Total	$	5	$	1	$	6	$	1,629	$	1,635	$	31	$	1,666
Rest of World
2020									$	369	$	—	$	369
2019									263		1		264
2018									195		—		195
2017									121		1		122
2016									44		—		44
Prior to 2016									3		—		3
Total	$	4	$	1	$	5	$	990	$	995	$	2	$	997
Europe	$	—	$	—	$	—	$	101	$	101	$	—	$	101
Total Retail	$	49	$	4	$	53	$	8,718	$	8,771	$	49	$	8,820
Wholesale
North America	$	—	$	—	$	—	$	2,956	$	2,956	$	29	$	2,985
South America	—		—		—		511		511		36		547
Rest of World	1		1		2		538		540		2		542
Europe	12		—		12		4,119		4,131		—		4,131
Total Wholesale	$	13	$	1	$	14	$	8,124	$	8,138	$	67	$	8,205

The above aging table is not necessarily reflective of the potential credit risk in the portfolio due to payment schedules changes granted by the Company and government stimulus policies benefiting the Company's dealers and end-use customers.


	December 31, 2019
	31-60 Days Past Due		61-90 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Performing		Non- Performing		Total
Retail
North America	$	24	$	4	$	—	$	28	$	6,123	$	6,151	$	16	$	6,167
Europe	—		—		—		—		136		136		—		136
South America	9		2		6		17		1,974		1,991		18		2,009
Rest of World	3		1		2		6		900		906		—		906
Total Retail	$	36	$	7	$	8	$	51	$	9,133	$	9,184	$	34	$	9,218
Wholesale
North America	$	—	$	—	$	—	$	—	$	3,641	$	3,641	$	26	$	3,667
Europe	24		9		7		40		4,857		4,897		—		4,897
South America	2		—		1		3		829		832		55		887
Rest of World	5		3		6		14		616		630		—		630
Total Wholesale	$	31	$	12	$	14	$	57	$	9,943	$	10,000	$	81	$	10,081

Summary of Allowance for Credit Loss Activity

Allowance for credit losses activity for the three and nine months ended September 30, 2020 and 2019 is as follows (in millions):


	Three Months Ended September 30, 2020
	Retail		Wholesale
Opening balance	$	326	$	159
Provision	28		6
Charge-offs, net of recoveries	(18)		(4)
Foreign currency translation and other	3		6
Ending balance	$	339	$	167


	Nine Months Ended September 30, 2020
	Retail		Wholesale
Opening Balance, as previously reported	$	299	$	159
Adoption of ASC 326	35		(9)
Opening Balance, as recast	334		150
Provision	82		23
Charge-offs, net of recoveries	(62)		(5)
Foreign currency translation and other	(15)		(1)
Ending Balance	$	339	$	167

At September 30, 2020, the allowance for credit losses includes a continued build of reserves primarily due to the expectation of deteriorating credit conditions related to the COVID-19 pandemic. The Company continues to monitor the situation and will update the macroeconomic factors and qualitative factors in future periods, as warranted. The provision for credit losses is included in selling, general, and administrative expenses.


	Three Months Ended September 30, 2019
	Retail		Wholesale
Opening Balance	$	319	$	158
Provision	11		2
Charge-offs, net of recoveries	(17)		(2)
Foreign currency translation and other	(18)		(3)
Ending Balance	$	295	$	155


	Nine Months Ended September 30, 2019
	Retail		Wholesale
Opening Balance	$	326	$	164
Provision	34		3
Charge-offs, net of recoveries	(44)		(8)
Foreign currency translation and other	(21)		(4)
Ending Balance	$	295	$	155

Allowance for credit losses activity for the year ended December 31, 2019 is as follows (in millions):


	December 31, 2019
	Retail		Wholesale
Opening Balance	$	326	$	164
Provision	44		12
Charge-offs, net of recoveries	(51)		(18)
Foreign currency translation and other	(20)		1
Ending Balance	$	299	$	159

Summary of Carrying Amount of Restricted Assets

At September 30, 2020 and December 31, 2019, the carrying amount of such restricted assets included in financing receivables above are the following (in millions):


	Restricted Receivables
	September 30, 2020		December 31, 2019
Retail note and finance lease receivables	$	5,596	$	6,340
Wholesale receivables	5,939		7,266
Total	$	11,535	$	13,606