Cat Financial Financing Activities (Tables)

3 Months Ended

Mar. 31, 2018

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




(Millions of dollars)	March 31, 2018
Allowance for Credit Losses:	Customer			Dealer		Total
Balance at beginning of year	$	353		$	9	$	362
Receivables written off	(40		)	—		(40		)
Recoveries on receivables previously written off	10			—		10
Provision for credit losses	66			—		66
Other	1			—		1
Balance at end of period	$	390		$	9	$	399

Individually evaluated for impairment	$	194		$	—	$	194
Collectively evaluated for impairment	196			9		205
Ending Balance	$	390		$	9	$	399

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	971		$	—	$	971
Collectively evaluated for impairment	18,164			3,367		21,531
Ending Balance	$	19,135		$	3,367	$	22,502




(Millions of dollars)	December 31, 2017
Allowance for Credit Losses:	Customer			Dealer			Total
Balance at beginning of year	$	331		$	10		$	341
Receivables written off	(157		)	—			(157		)
Recoveries on receivables previously written off	43			—			43
Provision for credit losses	129			(1		)	128
Other	7			—			7
Balance at end of year	$	353		$	9		$	362

Individually evaluated for impairment	$	149		$	—		$	149
Collectively evaluated for impairment	204			9			213
Ending Balance	$	353		$	9		$	362

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	942		$	—		$	942
Collectively evaluated for impairment	18,226			3,464			21,690
Ending Balance	$	19,168		$	3,464		$	22,632

Aging related to finance receivables

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




	March 31, 2018
(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	$	73	$	28	$	38	$	139	$	7,934	$	8,073	$	6
Europe	20		23		54		97		2,759		2,856		10
Asia Pacific	23		11		13		47		2,114		2,161		6
Mining	7		1		12		20		1,755		1,775		1
Latin America	49		43		143		235		1,460		1,695		3
Caterpillar Power Finance	41		57		209		307		2,268		2,575		28
Dealer
North America	—		—		—		—		1,937		1,937		—
Europe	—		—		—		—		191		191		—
Asia Pacific	—		—		—		—		486		486		—
Mining	—		—		—		—		4		4		—
Latin America	1		2		73		76		671		747		—
Caterpillar Power Finance	—		—		—		—		2		2		—
Total	$	214	$	165	$	542	$	921	$	21,581	$	22,502	$	54




	December 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	$	71	$	15	$	42	$	128	$	7,950	$	8,078	$	8
Europe	21		10		46		77		2,718		2,795		13
Asia Pacific	13		7		14		34		2,009		2,043		5
Mining	3		1		60		64		1,751		1,815		9
Latin America	37		55		142		234		1,531		1,765		—
Caterpillar Power Finance	20		32		144		196		2,476		2,672		1
Dealer
North America	—		—		—		—		1,920		1,920		—
Europe	—		—		—		—		222		222		—
Asia Pacific	—		—		—		—		553		553		—
Mining	—		—		—		—		4		4		—
Latin America	—		72		—		72		691		763		—
Caterpillar Power Finance	—		—		—		—		2		2		—
Total	$	165	$	192	$	448	$	805	$	21,827	$	22,632	$	36

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, 2018						December 31, 2017
(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	$	16	$	16	$	—	$	19	$	19	$	—
Europe	7		7		—		45		45		—
Asia Pacific	27		27		—		34		33		—
Mining	50		50		—		121		121		—
Latin America	46		46		—		45		45		—
Caterpillar Power Finance	195		207		—		160		172		—
Total	$	341	$	353	$	—	$	424	$	435	$	—

Impaired Finance Receivables With An Allowance Recorded
North America	$	60	$	58	$	21	$	44	$	43	$	17
Europe	49		49		13		9		8		5
Asia Pacific	4		4		1		8		8		2
Mining	67		67		18		—		—		—
Latin America	71		71		40		95		106		42
Caterpillar Power Finance	379		381		101		362		365		83
Total	$	630	$	630	$	194	$	518	$	530	$	149

Total Impaired Finance Receivables
North America	$	76	$	74	$	21	$	63	$	62	$	17
Europe	56		56		13		54		53		5
Asia Pacific	31		31		1		42		41		2
Mining	117		117		18		121		121		—
Latin America	117		117		40		140		151		42
Caterpillar Power Finance	574		588		101		522		537		83
Total	$	971	$	983	$	194	$	942	$	965	$	149



	Three Months Ended March 31, 2018				Three Months Ended March 31, 2017
(Millions of dollars)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired Finance Receivables With No Allowance Recorded
North America	$	17	$	—	$	10	$	—
Europe	36		—		49		—
Asia Pacific	31		1		9		—
Mining	103		1		128		1
Latin America	45		1		72		1
Caterpillar Power Finance	172		2		267		3
Total	$	404	$	5	$	535	$	5

Impaired Finance Receivables With An Allowance Recorded
North America	$	51	$	1	$	61	$	—
Europe	19		—		6		—
Asia Pacific	6		—		45		1
Mining	17		—		—		—
Latin America	87		1		96		1
Caterpillar Power Finance	360		1		63		1
Total	$	540	$	3	$	271	$	3

Total Impaired Finance Receivables
North America	$	68	$	1	$	71	$	—
Europe	55		—		55		—
Asia Pacific	37		1		54		1
Mining	120		1		128		1
Latin America	132		2		168		2
Caterpillar Power Finance	532		3		330		4
Total	$	944	$	8	$	806	$	8

Investment in finance receivables on non-accrual status

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




(Millions of dollars)	March 31, 2018		December 31, 2017
North America	$	50	$	38
Europe	50		37
Asia Pacific	8		10
Mining	14		63
Latin America	174		192
Caterpillar Power Finance	339		343
Total	$	635	$	683

Finance receivables modified as TDRs

Cat Financial's investment in finance receivables in the Customer portfolio segment modified as TDRs during the three months ended March 31, 2018 and 2017, were as follows:




	Three Months Ended March 31, 2018					Three Months Ended March 31, 2017
(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	13	$	6	$	6	9	$	1	$	1
Europe	—	—		—		1	—		—
Asia Pacific	—	—		—		5	39		30
Mining	1	29		29		2	57		56
Latin America	1	3		3		7	2		2
Caterpillar Power Finance	3	3		3		6	25		24
Total	18	$	41	$	41	30	$	124	$	113