Cat Financial Financing Activities (Tables)

9 Months Ended

Sep. 30, 2021

Sep. 30, 2020

Allowance for credit losses and total finance receivables

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



(Millions of dollars)	Three Months Ended September 30, 2021						Three Months Ended September 30, 2020
Allowance for Credit Losses:	Customer		Dealer		Total		Customer		Dealer		Total
Beginning balance	$	354	$	44	$	398	$	467	$	45	$	512
Write-offs	(91)		—		(91)		(139)		—		(139)
Recoveries	15		—		15		14		—		14
Provision for credit losses	17		38		55		67		—		67
Other	(3)		—		(3)		3		—		3
Ending balance	$	292	$	82	$	374	$	412	$	45	$	457

	Nine Months Ended September 30, 2021						Nine Months Ended September 30, 2020
Allowance for Credit Losses:	Customer		Dealer		Total		Customer		Dealer		Total
Beginning balance	$	431	$	44	$	475	$	375	$	45	$	420
Adjustment to adopt new accounting guidance 1	—		—		—		12		—		12
Write-offs	(193)		—		(193)		(212)		—		(212)
Recoveries	39		—		39		27		—		27
Provision for credit losses	20		38		58		213		—		213
Other	(5)		—		(5)		(3)		—		(3)
Ending balance	$	292	$	82	$	374	$	412	$	45	$	457

Individually evaluated	$	118	$	78	$	196	$	172	$	39	$	211
Collectively evaluated	174		4		178		240		6		246
Ending Balance	$	292	$	82	$	374	$	412	$	45	$	457

Finance Receivables:
Individually evaluated	$	374	$	78	$	452	$	612	$	78	$	690
Collectively evaluated	19,593		1,853		21,446		17,967		2,975		20,942
Ending Balance	$	19,967	$	1,931	$	21,898	$	18,579	$	3,053	$	21,632
1 Adjustment to adopt new accounting guidance related to credit losses.

Financing Receivable Credit Quality Indicators

The tables below summarize the aging category of Cat Financial's amortized cost of finance receivables in the Customer portfolio segment by origination year:



(Millions of dollars)	September 30, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Finance Receivables		Total Finance Receivables
North America
Current	$	3,635	$	2,914	$	1,675	$	785	$	246	$	66	$	167	$	9,488
31-60 days past due	13		31		23		15		6		1		3		92
61-90 days past due	6		9		8		5		2		—		3		33
91+ days past due	5		17		22		12		8		5		6		75


EAME
Current	1,330		1,117		571		269		93		25		—		3,405
31-60 days past due	8		7		5		1		1		—		—		22
61-90 days past due	3		4		9		2		—		—		—		18
91+ days past due	2		15		7		5		1		24		—		54


Asia/Pacific
Current	1,071		929		390		102		22		4		—		2,518
31-60 days past due	9		17		14		5		2		—		—		47
61-90 days past due	3		10		7		1		—		—		—		21
91+ days past due	1		11		11		6		—		—		—		29


Mining
Current	656		382		417		230		67		164		66		1,982
31-60 days past due	2		—		8		9		3		—		—		22
61-90 days past due	—		2		—		—		—		—		—		2
91+ days past due	—		1		2		4		2		—		—		9


Latin America
Current	472		377		192		71		19		10		—		1,141
31-60 days past due	4		11		4		3		2		—		—		24
61-90 days past due	2		3		3		2		1		1		—		12
91+ days past due	—		18		8		5		5		4		—		40


Caterpillar Power Finance
Current	109		141		98		75		197		141		102		863
31-60 days past due	—		—		—		2		—		—		—		2
61-90 days past due	—		—		—		—		—		—		—		—
91+ days past due	1		2		—		20		1		44		—		68

Total Customer	$	7,332	$	6,018	$	3,474	$	1,629	$	678	$	489	$	347	$	19,967



(Millions of dollars)	December 31, 2020
	2020		2019		2018		2017		2016		Prior		Revolving Finance Receivables		Total Finance Receivables
North America
Current	$	3,777	$	2,423	$	1,344	$	522	$	212	$	27	$	89	$	8,394
31-60 days past due	52		49		33		16		7		2		—		159
61-90 days past due	22		25		16		9		2		1		—		75
91+ days past due	14		35		31		20		9		4		2		115


EAME
Current	1,605		931		501		203		60		18		—		3,318
31-60 days past due	5		15		3		2		—		—		—		25
61-90 days past due	1		1		2		1		—		—		—		5
91+ days past due	7		7		12		4		39		43		—		112


Asia/Pacific
Current	1,375		745		321		61		10		3		—		2,515
31-60 days past due	12		22		13		6		—		—		—		53
61-90 days past due	7		11		7		1		—		—		—		26
91+ days past due	4		10		9		3		—		—		—		26


Mining
Current	490		571		287		152		92		151		137		1,880
31-60 days past due	5		—		5		1		—		—		—		11
61-90 days past due	—		—		—		—		—		—		—		—
91+ days past due	—		11		8		2		—		—		1		22


Latin America
Current	561		348		151		48		13		34		—		1,155
31-60 days past due	3		6		4		3		—		—		—		16
61-90 days past due	1		7		6		3		2		—		—		19
91+ days past due	2		14		11		24		5		4		—		60


Caterpillar Power Finance
Current	217		172		111		273		99		117		119		1,108
31-60 days past due	—		—		6		—		—		—		—		6
61-90 days past due	—		—		—		—		—		9		—		9
91+ days past due	2		—		20		3		25		79		—		129

Total Customer	$	8,162	$	5,403	$	2,901	$	1,357	$	575	$	492	$	348	$	19,238

Investment in finance receivables on non-accrual status

In Cat Financial's Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income were as follows:



	September 30, 2021						December 31, 2020
	Amortized Cost						Amortized Cost
(Millions of dollars)	Non-accrual With an Allowance		Non-accrual Without an Allowance		91+ Still Accruing		Non-accrual With an Allowance		Non-accrual Without an Allowance		91+ Still Accruing

North America	$	54	$	7	$	17	$	86	$	1	$	34
EAME	50		1		4		113		1		1
Asia/Pacific	21		—		9		13		—		13
Mining	9		1		—		21		1		—
Latin America	42		—		1		63		—		1
Caterpillar Power Finance	75		—		—		170		17		—
Total	$	251	$	9	$	31	$	466	$	20	$	49

There was $1 million and $2 million of interest income recognized during the three months ended September 30, 2021 and 2020, respectively, for customer finance receivables on non-accrual status. There was $9 million and $8 million of interest income recognized during the nine months ended September 30, 2021 and 2020, respectively, for customer finance receivables on non-accrual status.

Finance receivables modified as TDRs

Cat Financial’s finance receivables in the Customer portfolio segment modified as TDRs were as follows:



(Millions of dollars)	Three Months Ended September 30, 2021				Three Months Ended September 30, 2020
	Pre-TDR Amortized Cost		Post-TDR Amortized Cost		Pre-TDR Amortized Cost		Post-TDR Amortized Cost
Customer
North America	$	1	$	1	$	1	$	1
EAME	1		1		—		—
Asia/Pacific	4		4		4		4
Mining	—		—		5		5
Latin America	4		4		16		16
Caterpillar Power Finance	7		3		50		50
Total	$	17	$	13	$	76	$	76

	Nine Months Ended September 30, 2021				Nine Months Ended September 30, 2020
	Pre-TDR Amortized Cost		Post-TDR Amortized Cost		Pre-TDR Amortized Cost		Post-TDR Amortized Cost
North America	$	5	$	5	$	10	$	10
EAME	1		1		—		—
Asia/Pacific	4		4		12		12
Mining	11		5		22		22
Latin America	10		10		18		18
Caterpillar Power Finance	23		19		87		87
Total	$	54	$	44	$	149	$	149

The Post-TDR amortized costs in the Customer portfolio segment with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date, were as follows:



	Three Months Ended September 30				Nine Months Ended September 30
Customer	2021		2020		2021		2020
North America	$	—	$	6	$	1	$	6
EAME	—		—		—		10
Asia/Pacific	—		—		6		—
Mining	—		1		—		1
Latin America	—		—		15		1
Caterpillar Power Finance	—		18		5		18
Total	$	—	$	25	$	27	$	36