Cat Financial Financing Activities (Tables)

6 Months Ended

Jun. 30, 2017

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




(Millions of dollars)	June 30, 2017
Allowance for Credit Losses:	Customer			Dealer		Total
Balance at beginning of year	$	331		$	10	$	341
Receivables written off	(62		)	—		(62		)
Recoveries on receivables previously written off	21			—		21
Provision for credit losses	31			—		31
Other	4			—		4
Balance at end of period	$	325		$	10	$	335

Individually evaluated for impairment	$	113		$	—	$	113
Collectively evaluated for impairment	212			10		222
Ending Balance	$	325		$	10	$	335

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	898		$	—	$	898
Collectively evaluated for impairment	18,101			3,423		21,524
Ending Balance	$	18,999		$	3,423	$	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.




	June 30, 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	$	57	$	13	$	52	$	122	$	7,856	$	7,978	$	7
Europe	23		8		57		88		2,533		2,621		8
Asia Pacific	23		12		12		47		1,701		1,748		4
Mining	—		—		52		52		1,726		1,778		—
Latin America	54		30		224		308		1,677		1,985		—
Caterpillar Power Finance	27		5		135		167		2,722		2,889		41
Dealer
North America	—		—		—		—		2,033		2,033		—
Europe	—		—		—		—		140		140		—
Asia Pacific	—		—		—		—		543		543		—
Mining	—		—		—		—		3		3		—
Latin America	—		—		—		—		702		702		—
Caterpillar Power Finance	—		—		—		—		2		2		—
Total	$	184	$	68	$	532	$	784	$	21,638	$	22,422	$	60




	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:



	June 30, 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	$	13	$	13	$	—	$	10	$	10	$	—
Europe	48		47		—		49		48		—
Asia Pacific	29		29		—		3		2		—
Mining	130		130		—		129		129		—
Latin America	68		67		—		68		68		—
Caterpillar Power Finance	158		162		—		271		271		—
Total	$	446	$	448	$	—	$	530	$	528	$	—

Impaired Finance Receivables With An Allowance Recorded
North America	$	49	$	48	$	20	$	61	$	60	$	22
Europe	4		4		2		7		7		3
Asia Pacific	29		29		3		50		50		8
Mining	—		—		—		—		—		—
Latin America	107		119		43		93		104		34
Caterpillar Power Finance	263		261		45		45		44		18
Total	$	452	$	461	$	113	$	256	$	265	$	85

Total Impaired Finance Receivables
North America	$	62	$	61	$	20	$	71	$	70	$	22
Europe	52		51		2		56		55		3
Asia Pacific	58		58		3		53		52		8
Mining	130		130		—		129		129		—
Latin America	175		186		43		161		172		34
Caterpillar Power Finance	421		423		45		316		315		18
Total	$	898	$	909	$	113	$	786	$	793	$	85



	Three Months Ended June 30, 2017				Three Months Ended June 30, 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	$	11	$	—	$	24	$	1
Europe	48		1		44		—
Asia Pacific	30		1		3		—
Mining	130		3		80		—
Latin America	67		—		29		—
Caterpillar Power Finance	257		3		273		2
Total	$	543	$	8	$	453	$	3

Impaired Finance Receivables With An Allowance Recorded
North America	$	52	$	1	$	25	$	—
Europe	5		—		12		—
Asia Pacific	30		—		36		1
Mining	—		—		13		—
Latin America	107		1		57		—
Caterpillar Power Finance	125		—		45		1
Total	$	319	$	2	$	188	$	2

Total Impaired Finance Receivables
North America	$	63	$	1	$	49	$	1
Europe	53		1		56		—
Asia Pacific	60		1		39		1
Mining	130		3		93		—
Latin America	174		1		86		—
Caterpillar Power Finance	382		3		318		3
Total	$	862	$	10	$	641	$	5



	Six Months Ended June 30, 2017				Six Months Ended June 30, 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	$	11	$	—	$	19	$	1
Europe	48		1		43		—
Asia Pacific	18		1		2		—
Mining	129		4		80		1
Latin America	70		1		29		—
Caterpillar Power Finance	258		6		262		5
Total	$	534	$	13	$	435	$	7

Impaired Finance Receivables With An Allowance Recorded
North America	$	56	$	1	$	20	$	—
Europe	6		—		12		—
Asia Pacific	38		1		35		2
Mining	—		—		12		—
Latin America	101		2		54		1
Caterpillar Power Finance	96		1		53		1
Total	$	297	$	5	$	186	$	4

Total Impaired Finance Receivables
North America	$	67	$	1	$	39	$	1
Europe	54		1		55		—
Asia Pacific	56		2		37		2
Mining	129		4		92		1
Latin America	171		3		83		1
Caterpillar Power Finance	354		7		315		6
Total	$	831	$	18	$	621	$	11

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)	June 30, 2017		December 31, 2016
North America	$	57	$	66
Europe	51		35
Asia Pacific	11		12
Mining	56		69
Latin America	284		307
Caterpillar Power Finance	244		90
Total	$	703	$	579

Finance receivables modified as TDRs

Our recorded investment in finance receivables in the Customer portfolio segment modified as TDRs during the three and six months ended June 30, 2017 and 2016, were as follows:




	Three Months Ended June 30, 2017					Three Months Ended June 30, 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	17	$	8	$	7	2	$	6	$	6
Europe	—	—		—		3	11		8
Asia Pacific	1	—		—		—	—		—
Mining	—	—		—		1	10		5
Latin America	7	3		3		88	12		13
Caterpillar Power Finance¹	48	243		237		26	144		137
Total	73	$	254	$	247	120	$	183	$	169



	Six Months Ended June 30, 2017					Six Months Ended June 30, 2016
	Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment		Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
North America	26	$	9	$	8	13	$	16	$	16
Europe	1	—		—		3	11		8
Asia Pacific	6	39		30		4	3		3
Mining	2	57		56		1	10		5
Latin America	14	5		5		90	12		13
Caterpillar Power Finance	54	268		261		30	183		164
Total	103	$	378	$	360	141	$	235	$	209


¹	In Caterpillar Power Finance, 42 contracts with a pre-TDR recorded investment of $175 million and a post-TDR recorded investment of $175 million are related to three customers.