Cat Financial Financing Activities (Tables)

3 Months Ended

Mar. 31, 2014

Individually impaired loans and finance leases for the Customer portfolio segment were as follows:



	March 31, 2014						December 31, 2013
(Millions of dollars)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired Loans and Finance Leases With No Allowance Recorded
Customer
North America	$	24	$	23	$	—	$	23	$	22	$	—
Europe	47		47		—		48		47		—
Asia Pacific	5		5		—		7		7		—
Mining	133		133		—		134		134		—
Latin America	37		37		—		11		11		—
Caterpillar Power Finance	156		156		—		223		222		—
Total	$	402	$	401	$	—	$	446	$	443	$	—

Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$	8	$	8	$	3	$	13	$	13	$	4
Europe	17		16		6		20		19		7
Asia Pacific	11		11		3		16		16		2
Mining	32		32		12		—		—		—
Latin America	28		28		8		23		23		6
Caterpillar Power Finance	55		54		18		110		106		51
Total	$	151	$	149	$	50	$	182	$	177	$	70

Total Impaired Loans and Finance Leases
Customer
North America	$	32	$	31	$	3	$	36	$	35	$	4
Europe	64		63		6		68		66		7
Asia Pacific	16		16		3		23		23		2
Mining	165		165		12		134		134		—
Latin America	65		65		8		34		34		6
Caterpillar Power Finance	211		210		18		333		328		51
Total	$	553	$	550	$	50	$	628	$	620	$	70



	Three Months Ended March 31, 2014				Three Months Ended March 31, 2013
(Millions of dollars)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired Loans and Finance Leases With No Allowance Recorded
Customer
North America	$	25	$	1	$	28	$	1
Europe	48		—		45		—
Asia Pacific	6		—		4		—
Mining	134		2		—		—
Latin America	17		—		9		—
Caterpillar Power Finance	205		2		285		—
Total	$	435	$	5	$	371	$	1

Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$	10	$	—	$	24	$	—
Europe	19		—		34		—
Asia Pacific	14		—		26		1
Mining	24		—		19		—
Latin America	24		—		52		1
Caterpillar Power Finance	82		1		128		—
Total	$	173	$	1	$	283	$	2

Total Impaired Loans and Finance Leases
Customer
North America	$	35	$	1	$	52	$	1
Europe	67		—		79		—
Asia Pacific	20		—		30		1
Mining	158		2		19		—
Latin America	41		—		61		1
Caterpillar Power Finance	287		3		413		—
Total	$	608	$	6	$	654	$	3

Investment in loans and finance leases on non-accrual status

The investment in customer loans and finance leases on non-accrual status was as follows:



(Millions of dollars)
	March 31, 2014		December 31, 2013
Customer
North America	$	29	$	26
Europe	31		28
Asia Pacific	57		50
Mining	21		23
Latin America	165		179
Caterpillar Power Finance	82		119
Total	$	385	$	425

Aging related to loans and finance leases was as follows:



(Millions of dollars)
	March 31, 2014
	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	$	38	$	14	$	30	$	82	$	6,620	$	6,702	$	1
Europe	31		19		35		85		2,786		2,871		6
Asia Pacific	54		28		91		173		2,680		2,853		35
Mining	—		—		11		11		2,193		2,204		—
Latin America	85		39		143		267		2,598		2,865		4
Caterpillar Power Finance	27		19		102		148		2,960		3,108		24
Dealer
North America	—		—		—		—		2,312		2,312		—
Europe	—		—		—		—		157		157		—
Asia Pacific	—		—		—		—		600		600		—
Latin America	—		—		—		—		734		734		—
Total	$	235	$	119	$	412	$	766	$	23,640	$	24,406	$	70



(Millions of dollars)
	December 31, 2013
	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	$	37	$	12	$	24	$	73	$	6,508	$	6,581	$	—
Europe	26		15		29		70		2,805		2,875		6
Asia Pacific	54		23		59		136		2,752		2,888		11
Mining	3		—		12		15		2,128		2,143		—
Latin America	54		25		165		244		2,474		2,718		5
Caterpillar Power Finance	55		30		60		145		2,946		3,091		—
Dealer
North America	—		—		—		—		2,283		2,283		—
Europe	—		—		—		—		150		150		—
Asia Pacific	—		—		—		—		583		583		—
Mining	—		—		—		—		1		1		—
Latin America	—		—		—		—		748		748		—
Total	$	229	$	105	$	349	$	683	$	23,378	$	24,061	$	22

Allowance for credit losses and recorded investment in finance receivables

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



(Millions of dollars)
	March 31, 2014
Allowance for Credit Losses:	Customer			Dealer		Total
Balance at beginning of year	$	365		$	10	$	375
Receivables written off	(52		)	—		(52		)
Recoveries on receivables previously written off	14			—		14
Provision for credit losses	32			—		32
Balance at end of period	$	359		$	10	$	369

Individually evaluated for impairment	$	50		$	—	$	50
Collectively evaluated for impairment	309			10		319
Ending Balance	$	359		$	10	$	369

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	553		$	—	$	553
Collectively evaluated for impairment	20,050			3,803		23,853
Ending Balance	$	20,603		$	3,803	$	24,406



(Millions of dollars)
	December 31, 2013
Allowance for Credit Losses:	Customer			Dealer		Total
Balance at beginning of year	$	414		$	9	$	423
Receivables written off	(179		)	—		(179		)
Recoveries on receivables previously written off	56			—		56
Provision for credit losses	83			1		84
Other	(9		)	—		(9		)
Balance at end of year	$	365		$	10	$	375

Individually evaluated for impairment	$	70		$	—	$	70
Collectively evaluated for impairment	295			10		305
Ending Balance	$	365		$	10	$	375

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	628		$	—	$	628
Collectively evaluated for impairment	19,668			3,765		23,433
Ending Balance	$	20,296		$	3,765	$	24,061

Recorded investment of performing and non-performing finance receivables

The recorded investment in performing and non-performing finance receivables was as follows:



(Millions of dollars)
	March 31, 2014						December 31, 2013
	Customer		Dealer		Total		Customer		Dealer		Total
Performing
North America	$	6,673	$	2,312	$	8,985	$	6,555	$	2,283	$	8,838
Europe	2,840		157		2,997		2,847		150		2,997
Asia Pacific	2,796		600		3,396		2,838		583		3,421
Mining	2,183		—		2,183		2,120		1		2,121
Latin America	2,700		734		3,434		2,539		748		3,287
Caterpillar Power Finance	3,026		—		3,026		2,972		—		2,972
Total Performing	$	20,218	$	3,803	$	24,021	$	19,871	$	3,765	$	23,636

Non-Performing
North America	$	29	$	—	$	29	$	26	$	—	$	26
Europe	31		—		31		28		—		28
Asia Pacific	57		—		57		50		—		50
Mining	21		—		21		23		—		23
Latin America	165		—		165		179		—		179
Caterpillar Power Finance	82		—		82		119		—		119
Total Non-Performing	$	385	$	—	$	385	$	425	$	—	$	425

Performing & Non-Performing
North America	$	6,702	$	2,312	$	9,014	$	6,581	$	2,283	$	8,864
Europe	2,871		157		3,028		2,875		150		3,025
Asia Pacific	2,853		600		3,453		2,888		583		3,471
Mining	2,204		—		2,204		2,143		1		2,144
Latin America	2,865		734		3,599		2,718		748		3,466
Caterpillar Power Finance	3,108		—		3,108		3,091		—		3,091
Total	$	20,603	$	3,803	$	24,406	$	20,296	$	3,765	$	24,061

Loans and finance receivables modified as TDRs

Loan and finance lease receivables in the Customer portfolio segment modified as TDRs during the three months ended March 31, 2014 and 2013, were as follows:



(Dollars in millions)
	Three Months Ended March 31, 2014					Three Months Ended March 31, 2013
	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	3	$	2	$	2	10	$	2	$	2
Europe	3	5		5		—	—		—
Mining	1	11		10		—	—		—
Latin America	1	29		28		—	—		—
Caterpillar Power Finance ¹	1	1		1		4	36		37
Total ²	9	$	48	$	46	14	$	38	$	39

During the three months ended March 31, 2014, there were no additional funds subsequently loaned to a borrower whose terms had been modified in a TDR. During the three months ended March 31, 2013, $5 million of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. The $5 million of additional funds is not reflected in the table above as no incremental modifications have been made with the borrower during the period presented. At March 31, 2014, remaining commitments to lend additional funds to a borrower whose terms have been modified in a TDR were $3 million.


²	Modifications include extended contract maturities, inclusion of interest only periods, below market interest rates, and extended skip payment periods.

TDRs with a payment default which had been modified within twelve months prior to the default date

TDRs in the Customer portfolio segment with a payment default during the three months ended March 31, 2014 and 2013, which had been modified within twelve months prior to the default date, were as follows:



(Dollars in millions)	Three Months Ended March 31, 2014			Three Months Ended March 31, 2013
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
Customer
North America	7	$	1	8	$	2
Europe	7	1		—	—
Caterpillar Power Finance	—	—		2	3
Total	14	$	2	10	$	5