Cat Financial Financing Activities (Tables)

9 Months Ended

Sep. 30, 2015

Individually impaired finance receivables for the Customer portfolio segment were as follows:



	September 30, 2015						December 31, 2014
(Millions of dollars)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired Finance Receivables With No Allowance Recorded
Customer
North America	$	10	$	10	$	—	$	14	$	14	$	—
Europe	43		42		—		44		43		—
Asia Pacific	2		1		—		1		1		—
Mining	56		56		—		29		29		—
Latin America	31		31		—		34		34		—
Caterpillar Power Finance	191		191		—		129		128		—
Total	$	333	$	331	$	—	$	251	$	249	$	—

Impaired Finance Receivables With An Allowance Recorded
Customer
North America	$	13	$	13	$	3	$	6	$	6	$	1
Europe	9		8		4		12		12		4
Asia Pacific	36		36		5		29		29		8
Mining	13		13		5		138		137		9
Latin America	60		60		22		42		42		12
Caterpillar Power Finance	89		88		39		135		134		41
Total	$	220	$	218	$	78	$	362	$	360	$	75

Total Impaired Finance Receivables
Customer
North America	$	23	$	23	$	3	$	20	$	20	$	1
Europe	52		50		4		56		55		4
Asia Pacific	38		37		5		30		30		8
Mining	69		69		5		167		166		9
Latin America	91		91		22		76		76		12
Caterpillar Power Finance	280		279		39		264		262		41
Total	$	553	$	549	$	78	$	613	$	609	$	75



	Three Months Ended September 30, 2015				Three Months Ended September 30, 2014
(Millions of dollars)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired Finance Receivables With No Allowance Recorded
Customer
North America	$	10	$	1	$	19	$	—
Europe	43		—		47		1
Asia Pacific	1		—		—		—
Mining	63		—		29		—
Latin America	32		—		37		—
Caterpillar Power Finance	165		1		143		1
Total	$	314	$	2	$	275	$	2

Impaired Finance Receivables With An Allowance Recorded
Customer
North America	$	10	$	—	$	10	$	—
Europe	15		—		24		1
Asia Pacific	41		—		26		—
Mining	9		—		127		2
Latin America	69		1		27		1
Caterpillar Power Finance	125		2		100		1
Total	$	269	$	3	$	314	$	5

Total Impaired Finance Receivables
Customer
North America	$	20	$	1	$	29	$	—
Europe	58		—		71		2
Asia Pacific	42		—		26		—
Mining	72		—		156		2
Latin America	101		1		64		1
Caterpillar Power Finance	290		3		243		2
Total	$	583	$	5	$	589	$	7



	Nine Months Ended September 30, 2015				Nine Months Ended September 30, 2014
(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	$	12	$	1	$	22	$	1
Europe	43		—		47		1
Asia Pacific	2		—		4		—
Mining	80		3		82		3
Latin America	32		—		29		—
Caterpillar Power Finance	157		3		174		4
Total	$	326	$	7	$	358	$	9

Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$	7	$	—	$	10	$	—
Europe	15		1		21		1
Asia Pacific	33		1		18		1
Mining	47		1		75		4
Latin America	56		2		24		1
Caterpillar Power Finance	128		3		84		2
Total	$	286	$	8	$	232	$	9

Total Impaired Loans and Finance Leases
Customer
North America	$	19	$	1	$	32	$	1
Europe	58		1		68		2
Asia Pacific	35		1		22		1
Mining	127		4		157		7
Latin America	88		2		53		1
Caterpillar Power Finance	285		6		258		6
Total	$	612	$	15	$	590	$	18

Investment in finance receivables on non-accrual status

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




(Millions of dollars)	September 30, 2015		December 31, 2014
Customer
North America	$	30	$	27
Europe	46		28
Asia Pacific	25		54
Mining	133		62
Latin America	260		201
Caterpillar Power Finance	114		96
Total	$	608	$	468

Aging related to finance receivables

Aging related to finance receivables was as follows:




	September 30, 2015
(Millions of dollars)	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	$	46	$	18	$	29	$	93	$	7,562	$	7,655	$	4
Europe	29		11		48		88		2,399		2,487		7
Asia Pacific	45		23		34		102		1,745		1,847		10
Mining	18		1		58		77		1,771		1,848		—
Latin America	42		42		204		288		1,919		2,207		—
Caterpillar Power Finance	6		—		47		53		3,119		3,172		6
Dealer
North America	—		—		—		—		2,283		2,283		—
Europe	—		—		—		—		149		149		—
Asia Pacific	—		—		—		—		525		525		—
Mining	—		—		—		—		4		4		—
Latin America	—		—		—		—		559		559		—
Caterpillar Power Finance	—		—		—		—		3		3		—
Total	$	186	$	95	$	420	$	701	$	22,038	$	22,739	$	27




	December 31, 2014
(Millions of dollars)	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	$	46	$	8	$	27	$	81	$	7,192	$	7,273	$	4
Europe	16		23		29		68		2,607		2,675		6
Asia Pacific	29		22		69		120		2,316		2,436		16
Mining	28		—		11		39		2,084		2,123		—
Latin America	55		23		196		274		2,583		2,857		8
Caterpillar Power Finance	1		4		64		69		3,079		3,148		1
Dealer
North America	—		—		—		—		2,189		2,189		—
Europe	—		—		—		—		153		153		—
Asia Pacific	—		—		—		—		566		566		—
Mining	—		—		—		—		—		—		—
Latin America	—		—		—		—		646		646		—
Caterpillar Power Finance	—		—		—		—		—		—		—
Total	$	175	$	80	$	396	$	651	$	23,415	$	24,066	$	35

Allowance for credit losses and recorded investment in finance receivables

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




(Millions of dollars)	September 30, 2015
Allowance for Credit Losses:	Customer			Dealer			Total
Balance at beginning of year	$	388		$	10		$	398
Receivables written off	(151		)	—			(151		)
Recoveries on receivables previously written off	32			—			32
Provision for credit losses	89			(1		)	88
Other	(22		)	—			(22		)
Balance at end of period	$	336		$	9		$	345

Individually evaluated for impairment	$	78		$	—		$	78
Collectively evaluated for impairment	258			9			267
Ending Balance	$	336		$	9		$	345

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	553		$	—		$	553
Collectively evaluated for impairment	18,663			3,523			22,186
Ending Balance	$	19,216		$	3,523		$	22,739




(Millions of dollars)	December 31, 2014
Allowance for Credit Losses:	Customer			Dealer		Total
Balance at beginning of year	$	365		$	10	$	375
Receivables written off	(151		)	—		(151		)
Recoveries on receivables previously written off	47			—		47
Provision for credit losses	150			—		150
Other	(23		)	—		(23		)
Balance at end of year	$	388		$	10	$	398

Individually evaluated for impairment	$	75		$	—	$	75
Collectively evaluated for impairment	313			10		323
Ending Balance	$	388		$	10	$	398

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	613		$	—	$	613
Collectively evaluated for impairment	19,899			3,554		23,453
Ending Balance	$	20,512		$	3,554	$	24,066

Recorded investment of performing and non-performing finance receivables

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




	September 30, 2015						December 31, 2014
(Millions of dollars)	Customer		Dealer		Total		Customer		Dealer		Total
Performing
North America	$	7,625	$	2,283	$	9,908	$	7,246	$	2,189	$	9,435
Europe	2,441		149		2,590		2,647		153		2,800
Asia Pacific	1,822		525		2,347		2,382		566		2,948
Mining	1,715		4		1,719		2,061		—		2,061
Latin America	1,947		559		2,506		2,656		646		3,302
Caterpillar Power Finance	3,058		3		3,061		3,052		—		3,052
Total Performing	$	18,608	$	3,523	$	22,131	$	20,044	$	3,554	$	23,598

Non-Performing
North America	$	30	$	—	$	30	$	27	$	—	$	27
Europe	46		—		46		28		—		28
Asia Pacific	25		—		25		54		—		54
Mining	133		—		133		62		—		62
Latin America	260		—		260		201		—		201
Caterpillar Power Finance	114		—		114		96		—		96
Total Non-Performing	$	608	$	—	$	608	$	468	$	—	$	468

Performing & Non-Performing
North America	$	7,655	$	2,283	$	9,938	$	7,273	$	2,189	$	9,462
Europe	2,487		149		2,636		2,675		153		2,828
Asia Pacific	1,847		525		2,372		2,436		566		3,002
Mining	1,848		4		1,852		2,123		—		2,123
Latin America	2,207		559		2,766		2,857		646		3,503
Caterpillar Power Finance	3,172		3		3,175		3,148		—		3,148
Total	$	19,216	$	3,523	$	22,739	$	20,512	$	3,554	$	24,066

Finance receivables modified as TDRs

TDRs in the Customer portfolio segment with a payment default during the three and nine months ended September 30, 2015 and 2014, which had been modified within twelve months prior to the default date, were as follows:




	Three Months Ended September 30, 2015			Three Months Ended September 30, 2014
(Millions of dollars)	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
Customer
North America	5	$	—	3	$	—
Europe	—	—		5	1
Total	5	$	—	8	$	1



	Nine Months Ended September 30, 2015			Nine Months Ended September 30, 2014
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
Customer
North America	10	$	1	10	$	1
Europe	—	—		12	2
Latin America	1	—		—	—
Total	11	$	1	22	$	3

Finance receivables in the Customer portfolio segment modified as TDRs during the three and nine months ended September 30, 2015 and 2014, were as follows:




	Three Months Ended September 30, 2015					Three Months Ended September 30, 2014
(Millions of dollars)	Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment		Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
Customer
North America	6	$	—	$	—	20	$	9	$	3
Europe	4	—		—		—	—		—
Asia Pacific	1	1		1		—	—		—
Mining	2	15		14		45	122		124
Latin America	10	1		2		45	3		3
Caterpillar Power Finance	8	93		79		7	44		46
Total ¹	31	$	110	$	96	117	$	178	$	176



	Nine Months Ended September 30, 2015					Nine Months Ended September 30, 2014
	Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment		Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
Customer
North America	10	$	1	$	1	24	$	11	$	5
Europe	23	2		2		8	7		7
Asia Pacific	19	1		1		—	—		—
Mining	2	15		14		47	165		157
Latin America	10	1		2		47	32		31
Caterpillar Power Finance	12	197		180		13	80		81
Total ¹	76	$	217	$	200	139	$	295	$	281


¹	Modifications include extended contract maturities, inclusion of interest only periods, below market interest rates, extended skip payment periods and reduction of principal and/or accrued interest.

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




	Three Months Ended September 30, 2015			Three Months Ended September 30, 2014
(Millions of dollars)	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
Customer
North America	5	$	—	3	$	—
Europe	—	—		5	1
Total	5	$	—	8	$	1



	Nine Months Ended September 30, 2015			Nine Months Ended September 30, 2014
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
Customer
North America	10	$	1	10	$	1
Europe	—	—		12	2
Latin America	1	—		—	—
Total	11	$	1	22	$	3

Finance receivables in the Customer portfolio segment modified as TDRs during the three and nine months ended September 30, 2015 and 2014, were as follows:




	Three Months Ended September 30, 2015					Three Months Ended September 30, 2014
(Millions of dollars)	Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment		Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
Customer
North America	6	$	—	$	—	20	$	9	$	3
Europe	4	—		—		—	—		—
Asia Pacific	1	1		1		—	—		—
Mining	2	15		14		45	122		124
Latin America	10	1		2		45	3		3
Caterpillar Power Finance	8	93		79		7	44		46
Total ¹	31	$	110	$	96	117	$	178	$	176



	Nine Months Ended September 30, 2015					Nine Months Ended September 30, 2014
	Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment		Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
Customer
North America	10	$	1	$	1	24	$	11	$	5
Europe	23	2		2		8	7		7
Asia Pacific	19	1		1		—	—		—
Mining	2	15		14		47	165		157
Latin America	10	1		2		47	32		31
Caterpillar Power Finance	12	197		180		13	80		81
Total ¹	76	$	217	$	200	139	$	295	$	281


¹	Modifications include extended contract maturities, inclusion of interest only periods, below market interest rates, extended skip payment periods and reduction of principal and/or accrued interest.