Cat Financial Financing Activities (Tables)

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Contractual maturities of outstanding wholesale inventory receivables

Contractual maturities of outstanding wholesale inventory receivables:
(Millions of dollars)	December 31, 2015
Amounts Due In	Wholesale Installment Contracts			Wholesale Finance Leases			Wholesale Notes			Total
2016	$	174		$	88		$	1,030		$	1,292
2017	98			78			236			412
2018	71			55			161			287
2019	37			28			5			70
2020	15			10			2			27
Thereafter	2			2			—			4
	397			261			1,434			2,092
Guaranteed residual value	—			62			—			62
Unguaranteed residual value	—			50			—			50
Less: Unearned income	(7		)	(29		)	(3		)	(39		)
Total	$	390		$	344		$	1,431		$	2,165

Contractual maturities of outstanding finance receivables

Contractual maturities of outstanding finance receivables:
(Millions of dollars)	December 31, 2015
Amounts Due In	Retail Installment Contracts			Retail Finance Leases			Retail Notes			Total
2016	$	2,472		$	2,508		$	4,132		$	9,112
2017	1,923			1,634			1,937			5,494
2018	1,300			922			1,447			3,669
2019	662			415			1,022			2,099
2020	188			166			926			1,280
Thereafter	8			98			976			1,082
	6,553			5,743			10,440			22,736
Guaranteed residual value	—			307			—			307
Unguaranteed residual value	—			642			—			642
Less: Unearned income	(133		)	(505		)	(88		)	(726		)
Total	$	6,420		$	6,187		$	10,352		$	22,959

Allowance for credit losses and recorded investment in finance receivables

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

(Millions of dollars)	December 31, 2015
	Customer			Dealer			Total
Allowance for Credit Losses:
Balance at beginning of year	$	388		$	10		$	398
Receivables written off	(196		)	—			(196		)
Recoveries on receivables previously written off	41			—			41
Provision for credit losses	119			(1		)	118
Other	(25		)	—			(25		)
Balance at end of year	$	327		$	9		$	336
Individually evaluated for impairment	$	65		$	—		$	65
Collectively evaluated for impairment	262			9			271
Ending Balance	$	327		$	9		$	336
Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	601		$	—		$	601
Collectively evaluated for impairment	18,788			3,570			22,358
Ending Balance	$	19,389		$	3,570		$	22,959

(Millions of dollars)	December 31, 2014
	Customer			Dealer		Total
Allowance for Credit Losses:
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

Aging related to loans and finance leases

In determining past-due status, Cat Financial considers the entire finance receivable balance past due when any installment is over 30 days past due. The tables below summarize the recorded investment of finance receivables by aging category.

(Millions of dollars)	December 31, 2015
	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	$	45	$	12	$	30	$	87	$	7,850	$	7,937	$	4
Europe	18		7		44		69		2,358		2,427		9
Asia Pacific	21		12		21		54		1,647		1,701		6
Mining	6		1		68		75		1,793		1,868		1
Latin America	45		31		199		275		1,998		2,273		—
Caterpillar Power Finance	—		1		35		36		3,147		3,183		2
Dealer
North America	—		—		—		—		2,209		2,209		—
Europe	—		—		—		—		149		149		—
Asia Pacific	—		—		—		—		552		552		—
Mining	—		—		—		—		4		4		—
Latin America	—		—		—		—		653		653		—
Caterpillar Power Finance	—		—		—		—		3		3		—
Total	$	135	$	64	$	397	$	596	$	22,363	$	22,959	$	22

(Millions of dollars)	December 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	$	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

Impaired finance receivables

Cat Financial’s recorded investment in impaired finance receivables and the related unpaid principal balances and allowance for the Customer portfolio segment were as follows: 

	December 31, 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
North America	$	12	$	12	$	—	$	14	$	14	$	—
Europe	41		41		—		44		43		—
Asia Pacific	1		1		—		1		1		—
Mining	84		84		—		29		29		—
Latin America	28		28		—		34		34		—
Caterpillar Power Finance	242		241		—		129		128		—
Total	$	408	$	407	$	—	$	251	$	249	$	—
Impaired Finance Receivables With An Allowance Recorded
North America	$	14	$	13	$	4	$	6	$	6	$	1
Europe	11		10		5		12		12		4
Asia Pacific	34		34		4		29		29		8
Mining	11		11		3		138		137		9
Latin America	53		53		21		42		42		12
Caterpillar Power Finance	70		70		28		135		134		41
Total	$	193	$	191	$	65	$	362	$	360	$	75
Total Impaired Finance Receivables
North America	$	26	$	25	$	4	$	20	$	20	$	1
Europe	52		51		5		56		55		4
Asia Pacific	35		35		4		30		30		8
Mining	95		95		3		167		166		9
Latin America	81		81		21		76		76		12
Caterpillar Power Finance	312		311		28		264		262		41
Total	$	601	$	598	$	65	$	613	$	609	$	75

	Years ended December 31,
	2015				2014				2013
(Millions of dollars)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired Finance Receivables With No Allowance Recorded
North America	$	12	$	1	$	20	$	1	$	25	$	3
Europe	42		1		47		1		49		1
Asia Pacific	2		—		3		—		4		—
Mining	75		3		69		3		61		3
Latin America	31		—		30		—		11		—
Caterpillar Power Finance	170		5		164		6		271		5
Total	$	332	$	10	$	333	$	11	$	421	$	12
Impaired Finance Receivables With An Allowance Recorded
North America	$	9	$	—	$	9	$	—	$	18	$	1
Europe	14		1		21		1		22		1
Asia Pacific	35		2		22		1		18		1
Mining	39		1		90		7		1		—
Latin America	56		3		36		1		44		2
Caterpillar Power Finance	115		3		96		2		135		1
Total	$	268	$	10	$	274	$	12	$	238	$	6
Total Impaired Finance Receivables
North America	$	21	$	1	$	29	$	1	$	43	$	4
Europe	56		2		68		2		71		2
Asia Pacific	37		2		25		1		22		1
Mining	114		4		159		10		62		3
Latin America	87		3		66		1		55		2
Caterpillar Power Finance	285		8		260		8		406		6
Total	$	600	$	20	$	607	$	23	$	659	$	18

Investment in loans and finance leases on non-accrual status

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

	December 31,
(Millions of dollars)	2015		2014
North America	$	31	$	27
Europe	39		28
Asia Pacific	15		54
Mining	106		62
Latin America	217		201
Caterpillar Power Finance	77		96
Total	$	485	$	468

Loans and finance receivables modified as TDRs

TDRs in the Customer portfolio segment with a payment default during the years ended December 31, 2015, 2014 and 2013 which had been modified within twelve months prior to the default date, were as follows:

(Millions of dollars)	Year ended December 31, 2015			Year ended December 31, 2014			Year ended December 31, 2013
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
North America	12	$	1	11	$	1	19	$	4
Europe	—	—		46	2		5	—
Latin America	12	1		11	1		—	—
Caterpillar Power Finance	—	—		—	—		2	3
Total	24	$	2	68	$	4	26	$	7

Finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2015, 2014 and 2013 were as follows:

(Millions of dollars)	Year ended December 31, 2015
	Number of Contracts	Pre-TDR  Recorded Investment		Post-TDR Recorded Investment
North America	14	$	1	$	1
Europe	23	2		2
Asia Pacific	21	26		26
Mining	4	65		65
Latin America	11	1		2
Caterpillar Power Finance	21	259		242
Total	94	$	354	$	338
	Year ended December 31, 2014
	Number  of Contracts	Pre-TDR  Recorded Investment		Post-TDR Recorded Investment
North America	34	$	12	$	7
Europe	8	7		7
Asia Pacific	2	—		—
Mining	51	185		176
Latin America	51	32		31
Caterpillar Power Finance	18	137		139
Total	164	$	373	$	360
	Year ended December 31, 2013
	Number  of Contracts	Pre-TDR  Recorded Investment		Post-TDR  Recorded Investment
North America	62	$	9	$	9
Europe	51	7		7
Asia Pacific	3	1		1
Mining	45	123		123
Latin America	16	2		2
Caterpillar Power Finance 1	17	153		157
Total	194	$	295	$	299

¹  During the year ended December 31, 2013, $25 million of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. The $25 million of additional funds are not reflected in the table above as no incremental modifications have been made with the borrower during the periods presented.

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 years ended December 31, 2015, 2014 and 2013 which had been modified within twelve months prior to the default date, were as follows:

(Millions of dollars)	Year ended December 31, 2015			Year ended December 31, 2014			Year ended December 31, 2013
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
North America	12	$	1	11	$	1	19	$	4
Europe	—	—		46	2		5	—
Latin America	12	1		11	1		—	—
Caterpillar Power Finance	—	—		—	—		2	3
Total	24	$	2	68	$	4	26	$	7

Finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2015, 2014 and 2013 were as follows:

(Millions of dollars)	Year ended December 31, 2015
	Number of Contracts	Pre-TDR  Recorded Investment		Post-TDR Recorded Investment
North America	14	$	1	$	1
Europe	23	2		2
Asia Pacific	21	26		26
Mining	4	65		65
Latin America	11	1		2
Caterpillar Power Finance	21	259		242
Total	94	$	354	$	338
	Year ended December 31, 2014
	Number  of Contracts	Pre-TDR  Recorded Investment		Post-TDR Recorded Investment
North America	34	$	12	$	7
Europe	8	7		7
Asia Pacific	2	—		—
Mining	51	185		176
Latin America	51	32		31
Caterpillar Power Finance	18	137		139
Total	164	$	373	$	360
	Year ended December 31, 2013
	Number  of Contracts	Pre-TDR  Recorded Investment		Post-TDR  Recorded Investment
North America	62	$	9	$	9
Europe	51	7		7
Asia Pacific	3	1		1
Mining	45	123		123
Latin America	16	2		2
Caterpillar Power Finance 1	17	153		157
Total	194	$	295	$	299

¹  During the year ended December 31, 2013, $25 million of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. The $25 million of additional funds are not reflected in the table above as no incremental modifications have been made with the borrower during the periods presented.