Cat Financial Financing Activities (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

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 March 31, 2022							Three Months Ended March 31, 2021
	Customer			Dealer		Total		Customer		Dealer		Total
Beginning balance	$	251		$	82	$	333	$	431	$	44	$	475
Write-offs	(20)			—		(20)		(34)		—		(34)
Recoveries	12			—		12		10		—		10
Provision for credit losses	26		1	(1)		25		(10)		—		(10)
Other	2			—		2		(4)		—		(4)
Ending balance	$	271		$	81	$	352	$	393	$	44	$	437
Finance Receivables	$	20,289		$	1,722	$	22,011	$	19,103	$	2,633	$	21,736
1 Included a higher reserve for the Russia and Ukraine portfolios.

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)	March 31, 2022
	2022		2021		2020		2019		2018		Prior		Revolving Finance Receivables		Total Finance Receivables
North America
Current	$	1,204	$	4,442	$	2,323	$	1,213	$	503	$	154	$	188	$	10,027
31-60 days past due	5		29		22		15		7		3		6		87
61-90 days past due	—		8		4		4		2		1		2		21
91+ days past due	—		10		13		10		11		8		5		57
EAME
Current	307		1,369		739		496		295		136		—		3,342
31-60 days past due	1		12		6		5		1		—		—		25
61-90 days past due	—		4		4		1		1		1		—		11
91+ days past due	—		4		11		3		2		2		—		22
Asia/Pacific
Current	333		1,145		667		225		53		13		—		2,436
31-60 days past due	1		14		18		9		1		—		—		43
61-90 days past due	—		4		8		5		1		—		—		18
91+ days past due	—		7		9		7		2		—		—		25
Mining
Current	195		780		312		274		167		167		48		1,943
31-60 days past due	—		—		—		—		—		—		—		—
61-90 days past due	—		—		—		—		—		—		—		—
91+ days past due	—		1		1		8		12		8		—		30
Latin America
Current	204		607		270		137		45		29		—		1,292
31-60 days past due	—		6		7		5		16		—		—		34
61-90 days past due	—		5		1		1		1		—		—		8
91+ days past due	—		9		14		9		5		18		—		55
Caterpillar Power Finance
Current	12		105		144		92		65		236		115		769
31-60 days past due	2		—		—		—		—		—		—		2
61-90 days past due	—		—		—		—		—		—		—		—
91+ days past due	—		—		—		—		—		42		—		42
Totals by Aging Category
Current	$	2,255	$	8,448	$	4,455	$	2,437	$	1,128	$	735	$	351	$	19,809
31-60 days past due	9		61		53		34		25		3		6		191
61-90 days past due	—		21		17		11		5		2		2		58
91+ days past due	—		31		48		37		32		78		5		231
Total Customer	$	2,264	$	8,561	$	4,573	$	2,519	$	1,190	$	818	$	364	$	20,289

(Millions of dollars)	December 31, 2021
	2020		2019		2018		2017		2016		Prior		Revolving Finance Receivables		Total Finance Receivables
North America
Current	$	4,792	$	2,596	$	1,426	$	630	$	182	$	32	$	182	$	9,840
31-60 days past due	27		32		20		12		4		1		5		101
61-90 days past due	7		8		5		3		1		1		5		30
91+ days past due	9		17		12		13		5		4		5		65
EAME
Current	1,499		836		577		352		140		26		—		3,430
31-60 days past due	5		4		3		1		1		—		—		14
61-90 days past due	3		3		3		1		—		—		—		10
91+ days past due	3		11		2		2		—		2		—		20
Asia/Pacific
Current	1,271		803		307		71		16		2		—		2,470
31-60 days past due	10		14		10		2		—		—		—		36
61-90 days past due	3		7		4		1		—		—		—		15
91+ days past due	2		10		10		3		—		—		—		25
Mining
Current	851		347		307		193		36		161		36		1,931
31-60 days past due	6		—		—		—		—		—		—		6
61-90 days past due	1		—		—		—		4		—		—		5
91+ days past due	—		1		8		9		3		1		—		22
Latin America
Current	617		299		160		70		17		18		—		1,181
31-60 days past due	4		7		3		3		1		—		—		18
61-90 days past due	3		3		1		1		—		—		—		8
91+ days past due	4		9		9		7		7		14		—		50
Caterpillar Power Finance
Current	117		145		97		70		180		104		101		814
31-60 days past due	—		—		—		—		—		—		—		—
61-90 days past due	—		—		—		—		—		—		—		—
91+ days past due	—		—		—		—		—		44		—		44
Totals by Aging Category
Current	$	9,147	$	5,026	$	2,874	$	1,386	$	571	$	343	$	319	$	19,666
31-60 days past due	52		57		36		18		6		1		5		175
61-90 days past due	17		21		13		6		5		1		5		68
91+ days past due	18		48		41		34		15		65		5		226
Total Customer	$	9,234	$	5,152	$	2,964	$	1,444	$	597	$	410	$	334	$	20,135

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:

	March 31, 2022						December 31, 2021
	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	$	43	$	6	$	13	$	47	$	9	$	12
EAME	20		1		2		18		1		2
Asia/Pacific	13		—		13		19		—		7
Mining	28		1		1		8		1		14
Latin America	51		—		1		52		4		1
Caterpillar Power Finance	31		12		—		40		11		—
Total	$	186	$	20	$	30	$	184	$	26	$	36

There was $1 million and $3 million of interest income recognized during the three months ended March 31, 2022 and 2021, 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 March 31, 2022				Three Months Ended March 31, 2021
	Pre-TDR Amortized Cost		Post-TDR Amortized Cost		Pre-TDR Amortized Cost		Post-TDR Amortized Cost
Customer
EAME	$	1	$	1	$	—	$	—
Mining	—		—		11		5
Caterpillar Power Finance	6		6		—		—
Total	$	7	$	7	$	11	$	5

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:

(Millions of dollars)	Three Months Ended March 31
Customer	2022		2021
North America	$	—	$	1
Asia/Pacific	—		4
Mining	5		—
Caterpillar Power Finance	—		5
Total	$	5	$	10