Cat Financial Financing Activities (Tables)

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Allowance for credit losses

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

(Millions of dollars)	September 30, 2016
Allowance for Credit Losses:	Customer			Dealer		Total
Balance at beginning of year	$	327		$	9	$	336
Receivables written off	(118		)	—		(118		)
Recoveries on receivables previously written off	25			—		25
Provision for credit losses	93			2		95
Other	6			—		6
Balance at end of period	$	333		$	11	$	344
Individually evaluated for impairment	$	85		$	—	$	85
Collectively evaluated for impairment	248			11		259
Ending Balance	$	333		$	11	$	344
Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	819		$	—	$	819
Collectively evaluated for impairment	18,522			3,534		22,056
Ending Balance	$	19,341		$	3,534	$	22,875

(Millions of dollars)	December 31, 2015
Allowance for Credit Losses:	Customer			Dealer			Total
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

Aging related to finance receivables

The tables below summarize the recorded investment of finance receivables by aging category.

	September 30, 2016
(Millions of dollars)	31-60 Days Past Due		61-90 Days Past Due		91+ Days Past Due		Total Past Due		Current		Recorded Investment in Finance Receivables		91+ Still Accruing
Customer
North America	$	66	$	18	$	72	$	156	$	7,903	$	8,059	$	10
Europe	21		16		83		120		2,424		2,544		47
Asia Pacific	28		10		20		58		1,506		1,564		4
Mining	4		1		63		68		1,802		1,870		—
Latin America	57		39		222		318		1,866		2,184		—
Caterpillar Power Finance	1		5		72		78		3,042		3,120		12
Dealer
North America	—		—		—		—		2,069		2,069		—
Europe	—		—		—		—		127		127		—
Asia Pacific	—		—		—		—		599		599		—
Mining	—		—		—		—		4		4		—
Latin America	—		—		—		—		733		733		—
Caterpillar Power Finance	—		—		—		—		2		2		—
Total	$	177	$	89	$	532	$	798	$	22,077	$	22,875	$	73

	December 31, 2015
(Millions of dollars)	31-60 Days Past Due		61-90 Days Past Due		91+ Days Past Due		Total Past Due		Current		Recorded Investment in 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

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: 

	September 30, 2016						December 31, 2015
(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	$	21	$	21	$	—	$	12	$	12	$	—
Europe	49		48		—		41		41		—
Asia Pacific	2		2		—		1		1		—
Mining	119		118		—		84		84		—
Latin America	73		73		—		28		28		—
Caterpillar Power Finance	290		289		—		242		241		—
Total	$	554	$	551	$	—	$	408	$	407	$	—
Impaired Finance Receivables With An Allowance Recorded
North America	$	50	$	48	$	19	$	14	$	13	$	4
Europe	9		9		5		11		10		5
Asia Pacific	33		33		5		34		34		4
Mining	38		38		6		11		11		3
Latin America	91		103		33		53		53		21
Caterpillar Power Finance	44		44		17		70		70		28
Total	$	265	$	275	$	85	$	193	$	191	$	65
Total Impaired Finance Receivables
North America	$	71	$	69	$	19	$	26	$	25	$	4
Europe	58		57		5		52		51		5
Asia Pacific	35		35		5		35		35		4
Mining	157		156		6		95		95		3
Latin America	164		176		33		81		81		21
Caterpillar Power Finance	334		333		17		312		311		28
Total	$	819	$	826	$	85	$	601	$	598	$	65

	Three Months Ended September 30, 2016				Three Months Ended September 30, 2015
(Millions of dollars)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired Finance Receivables With No Allowance Recorded
North America	$	24	$	—	$	10	$	1
Europe	49		1		43		—
Asia Pacific	1		—		1		—
Mining	90		2		63		—
Latin America	58		—		32		—
Caterpillar Power Finance	282		3		165		1
Total	$	504	$	6	$	314	$	2
Impaired Finance Receivables With An Allowance Recorded
North America	$	42	$	—	$	10	$	—
Europe	10		—		15		—
Asia Pacific	35		—		41		—
Mining	19		—		9		—
Latin America	67		1		69		1
Caterpillar Power Finance	43		—		125		2
Total	$	216	$	1	$	269	$	3
Total Impaired Finance Receivables
North America	$	66	$	—	$	20	$	1
Europe	59		1		58		—
Asia Pacific	36		—		42		—
Mining	109		2		72		—
Latin America	125		1		101		1
Caterpillar Power Finance	325		3		290		3
Total	$	720	$	7	$	583	$	5

	Nine Months Ended September 30, 2016				Nine Months Ended September 30, 2015
(Millions of dollars)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired Finance Receivables With No Allowance Recorded
North America	$	19	$	1	$	12	$	1
Europe	45		1		43		—
Asia Pacific	2		—		2		—
Mining	84		3		80		3
Latin America	39		—		32		—
Caterpillar Power Finance	269		8		157		3
Total	$	458	$	13	$	326	$	7
Impaired Finance Receivables With An Allowance Recorded
North America	$	28	$	—	$	7	$	—
Europe	11		—		15		1
Asia Pacific	34		2		33		1
Mining	15		—		47		1
Latin America	59		2		56		2
Caterpillar Power Finance	50		1		128		3
Total	$	197	$	5	$	286	$	8
Total Impaired Finance Receivables
North America	$	47	$	1	$	19	$	1
Europe	56		1		58		1
Asia Pacific	36		2		35		1
Mining	99		3		127		4
Latin America	98		2		88		2
Caterpillar Power Finance	319		9		285		6
Total	$	655	$	18	$	612	$	15

Investment in finance receivables on non-accrual status

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

(Millions of dollars)	September 30, 2016		December 31, 2015
North America	$	71	$	31
Europe	38		39
Asia Pacific	16		15
Mining	131		106
Latin America	299		217
Caterpillar Power Finance	69		77
Total	$	624	$	485

Finance receivables modified as TDRs

TDRs in the Customer portfolio segment with a payment default during the three and nine months ended September 30, 2016 and 2015, which had been modified within twelve months prior to the default date, were as follows: 

	Three Months Ended September 30, 2016			Three Months Ended September 30, 2015
(Millions of dollars)	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
North America	1	$	—	5	$	—
Europe	1	—		—	—
Latin America	2	—		—	—
Total	4	$	—	5	$	—

	Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2015
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
North America	14	$	3	10	$	1
Europe	14	1		—	—
Asia Pacific	3	—		—	—
Latin America	4	—		1	—
Total	35	$	4	11	$	1

Finance receivables in the Customer portfolio segment modified as TDRs during the three and nine months ended September 30, 2016 and 2015, were as follows:

	Three Months Ended September 30, 2016					Three Months Ended September 30, 2015
(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
North America	2	$	—	$	—	6	$	—	$	—
Europe	—	—		—		4	—		—
Asia Pacific	4	1		1		1	1		1
Mining	1	33		30		2	15		14
Latin America 1	341	105		74		10	1		2
Caterpillar Power Finance	4	13		13		8	93		79
Total	352	$	152	$	118	31	$	110	$	96

	Nine Months Ended September 30, 2016					Nine Months Ended September 30, 2015
	Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment		Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
North America	15	$	16	$	16	10	$	1	$	1
Europe	3	11		8		23	2		2
Asia Pacific	8	4		4		19	1		1
Mining	2	43		35		2	15		14
Latin America	431	117		87		10	1		2
Caterpillar Power Finance	34	196		177		12	197		180
Total	493	$	387	$	327	76	$	217	$	200

¹  In Latin America, 321 contracts with a pre-TDR recorded investment of $94 million and a post-TDR recorded investment of $64 million are related to four customers.

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 and nine months ended September 30, 2016 and 2015, which had been modified within twelve months prior to the default date, were as follows: 

	Three Months Ended September 30, 2016			Three Months Ended September 30, 2015
(Millions of dollars)	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
North America	1	$	—	5	$	—
Europe	1	—		—	—
Latin America	2	—		—	—
Total	4	$	—	5	$	—

	Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2015
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
North America	14	$	3	10	$	1
Europe	14	1		—	—
Asia Pacific	3	—		—	—
Latin America	4	—		1	—
Total	35	$	4	11	$	1

Finance receivables in the Customer portfolio segment modified as TDRs during the three and nine months ended September 30, 2016 and 2015, were as follows:

	Three Months Ended September 30, 2016					Three Months Ended September 30, 2015
(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
North America	2	$	—	$	—	6	$	—	$	—
Europe	—	—		—		4	—		—
Asia Pacific	4	1		1		1	1		1
Mining	1	33		30		2	15		14
Latin America 1	341	105		74		10	1		2
Caterpillar Power Finance	4	13		13		8	93		79
Total	352	$	152	$	118	31	$	110	$	96

	Nine Months Ended September 30, 2016					Nine Months Ended September 30, 2015
	Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment		Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
North America	15	$	16	$	16	10	$	1	$	1
Europe	3	11		8		23	2		2
Asia Pacific	8	4		4		19	1		1
Mining	2	43		35		2	15		14
Latin America	431	117		87		10	1		2
Caterpillar Power Finance	34	196		177		12	197		180
Total	493	$	387	$	327	76	$	217	$	200

¹  In Latin America, 321 contracts with a pre-TDR recorded investment of $94 million and a post-TDR recorded investment of $64 million are related to four customers.