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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