Cat Financial Financing Activities (Tables)

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Allowance for credit losses

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

(Millions of dollars)	March 31, 2017
Allowance for Credit Losses:	Customer			Dealer		Total
Balance at beginning of year	$	331		$	10	$	341
Receivables written off	(24		)	—		(24		)
Recoveries on receivables previously written off	9			—		9
Provision for credit losses	12			2		14
Other	3			—		3
Balance at end of period	$	331		$	12	$	343
Individually evaluated for impairment	$	98		$	—	$	98
Collectively evaluated for impairment	233			12		245
Ending Balance	$	331		$	12	$	343
Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	858		$	—	$	858
Collectively evaluated for impairment	18,027			3,537		21,564
Ending Balance	$	18,885		$	3,537	$	22,422

(Millions of dollars)	December 31, 2016
Allowance for Credit Losses:	Customer			Dealer		Total
Balance at beginning of year	$	327		$	9	$	336
Receivables written off	(158		)	—		(158		)
Recoveries on receivables previously written off	35			—		35
Provision for credit losses	132			1		133
Other	(5		)	—		(5		)
Balance at end of year	$	331		$	10	$	341
Individually evaluated for impairment	$	85		$	—	$	85
Collectively evaluated for impairment	246			10		256
Ending Balance	$	331		$	10	$	341
Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	786		$	—	$	786
Collectively evaluated for impairment	18,236			3,375		21,611
Ending Balance	$	19,022		$	3,375	$	22,397

Aging related to finance receivables

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

	March 31, 2017
(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	$	56	$	17	$	61	$	134	$	7,837	$	7,971	$	7
Europe	23		18		46		87		2,361		2,448		10
Asia Pacific	21		8		15		44		1,529		1,573		5
Mining	13		5		53		71		1,818		1,889		—
Latin America	67		47		215		329		1,767		2,096		—
Caterpillar Power Finance	30		7		66		103		2,805		2,908		6
Dealer
North America	—		—		—		—		2,086		2,086		—
Europe	—		—		—		—		153		153		—
Asia Pacific	—		—		—		—		567		567		—
Mining	—		—		—		—		3		3		—
Latin America	—		—		—		—		726		726		—
Caterpillar Power Finance	—		—		—		—		2		2		—
Total	$	210	$	102	$	456	$	768	$	21,654	$	22,422	$	28

	December 31, 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	$	50	$	16	$	59	$	125	$	7,938	$	8,063	$	5
Europe	16		12		39		67		2,388		2,455		6
Asia Pacific	17		7		15		39		1,435		1,474		4
Mining	3		2		63		68		1,756		1,824		2
Latin America	40		33		214		287		1,808		2,095		—
Caterpillar Power Finance	11		9		73		93		3,018		3,111		1
Dealer
North America	—		—		—		—		1,916		1,916		—
Europe	—		—		—		—		161		161		—
Asia Pacific	—		—		—		—		541		541		—
Mining	—		—		—		—		3		3		—
Latin America	—		—		—		—		752		752		—
Caterpillar Power Finance	—		—		—		—		2		2		—
Total	$	137	$	79	$	463	$	679	$	21,718	$	22,397	$	18

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: 

	March 31, 2017						December 31, 2016
(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	$	11	$	11	$	—	$	10	$	10	$	—
Europe	48		47		—		49		48		—
Asia Pacific	30		29		—		3		2		—
Mining	133		132		—		129		129		—
Latin America	67		67		—		68		68		—
Caterpillar Power Finance	289		289		—		271		271		—
Total	$	578	$	575	$	—	$	530	$	528	$	—
Impaired Finance Receivables With An Allowance Recorded
North America	$	56	$	54	$	22	$	61	$	60	$	22
Europe	4		4		2		7		7		3
Asia Pacific	31		31		4		50		50		8
Mining	—		—		—		—		—		—
Latin America	110		121		39		93		104		34
Caterpillar Power Finance	79		78		31		45		44		18
Total	$	280	$	288	$	98	$	256	$	265	$	85
Total Impaired Finance Receivables
North America	$	67	$	65	$	22	$	71	$	70	$	22
Europe	52		51		2		56		55		3
Asia Pacific	61		60		4		53		52		8
Mining	133		132		—		129		129		—
Latin America	177		188		39		161		172		34
Caterpillar Power Finance	368		367		31		316		315		18
Total	$	858	$	863	$	98	$	786	$	793	$	85

	Three Months Ended March 31, 2017				Three Months Ended March 31, 2016
(Millions of dollars)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired Finance Receivables With No Allowance Recorded
North America	$	10	$	—	$	14	$	—
Europe	49		—		40		—
Asia Pacific	9		—		2		—
Mining	128		1		81		1
Latin America	72		1		27		—
Caterpillar Power Finance	267		3		253		3
Total	$	535	$	5	$	417	$	4
Impaired Finance Receivables With An Allowance Recorded
North America	$	61	$	—	$	14	$	—
Europe	6		—		12		—
Asia Pacific	45		1		33		1
Mining	—		—		11		—
Latin America	96		1		51		1
Caterpillar Power Finance	63		1		59		—
Total	$	271	$	3	$	180	$	2
Total Impaired Finance Receivables
North America	$	71	$	—	$	28	$	—
Europe	55		—		52		—
Asia Pacific	54		1		35		1
Mining	128		1		92		1
Latin America	168		2		78		1
Caterpillar Power Finance	330		4		312		3
Total	$	806	$	8	$	597	$	6

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)	March 31, 2017		December 31, 2016
North America	$	66	$	66
Europe	37		35
Asia Pacific	15		12
Mining	56		69
Latin America	308		307
Caterpillar Power Finance	70		90
Total	$	552	$	579

Finance receivables modified as TDRs

Our recorded investment in finance receivables in the Customer portfolio segment modified as TDRs during the three months ended March 31, 2017 and 2016, were as follows:

	Three Months Ended March 31, 2017					Three Months Ended March 31, 2016
(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	9	$	1	$	1	11	$	10	$	10
Europe	1	—		—		—	—		—
Asia Pacific	5	39		30		4	3		3
Mining	2	57		56		—	—		—
Latin America	7	2		2		2	—		—
Caterpillar Power Finance	6	25		24		4	39		27
Total	30	$	124	$	113	21	$	52	$	40