XML 55 R21.htm IDEA: XBRL DOCUMENT v2.4.0.8
Financing Activities (Tables)
3 Months Ended
Mar. 31, 2014
Receivables [Abstract]  
Impaired loans and finance leases
Individually impaired loans and finance leases for the Customer portfolio segment were as follows:
(Millions of dollars)
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2014
 
As of December 31, 2013
Impaired Loans and Finance Leases With
No Allowance Recorded
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
Customer
 
 
 
 
 
 
 
 
 
 
 
North America
$
24

 
$
23

 
$
—

 
$
23

 
$
22

 
$
—

Europe
47

 
47

 
—

 
48

 
47

 
—

Asia/Pacific
5

 
5

 
—

 
7

 
7

 
—

Mining
133

 
133

 
—

 
134

 
134

 
—

Latin America
37

 
37

 
—

 
11

 
11

 
—

Caterpillar Power Finance
156

 
156

 
—

 
223

 
222

 
—

Total
$
402

 
$
401

 
$
—

 
$
446

 
$
443

 
$
—

Impaired Loans and Finance Leases With
An Allowance Recorded
 

 
 

 
 

 
 

 
 

 
 

Customer
 

 
 

 
 

 
 

 
 

 
 

North America
$
8

 
$
8

 
$
3

 
$
13

 
$
13

 
$
4

Europe
17

 
16

 
6

 
20

 
19

 
7

Asia/Pacific
13

 
13

 
3

 
17

 
17

 
2

Mining
32

 
32

 
12

 
—

 
—

 
—

Latin America
28

 
28

 
8

 
23

 
23

 
6

Caterpillar Power Finance
55

 
54

 
18

 
110

 
106

 
51

Total
$
153

 
$
151

 
$
50

 
$
183

 
$
178

 
$
70

Total Impaired Loans and Finance Leases
 

 
 

 
 

 
 

 
 

 
 

Customer
 

 
 

 
 

 
 

 
 

 
 

North America
$
32

 
$
31

 
$
3

 
$
36

 
$
35

 
$
4

Europe
64

 
63

 
6

 
68

 
66

 
7

Asia/Pacific
18

 
18

 
3

 
24

 
24

 
2

Mining
165

 
165

 
12

 
134

 
134

 
—

Latin America
65

 
65

 
8

 
34

 
34

 
6

Caterpillar Power Finance
211

 
210

 
18

 
333

 
328

 
51

Total
$
555

 
$
552

 
$
50

 
$
629

 
$
621

 
$
70

 
 
 
 
 
 
 
 
 
 
 
 
 
(Millions of dollars)
 
 
 
 
 
 
 
 
Three Months Ended
March 31, 2014
 
Three Months Ended
March 31, 2013
Impaired Loans and Finance Leases With No Allowance
Recorded
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Customer
 
 
 
 
 
 
 
North America
$
25

 
$
1

 
$
28

 
$
1

Europe
48

 
—

 
45

 
—

Asia/Pacific
6

 
—

 
4

 
—

Mining
134

 
2

 
—

 
—

Latin America
17

 
—

 
9

 
—

Caterpillar Power Finance
205

 
2

 
285

 
—

Total
$
435

 
$
5

 
$
371

 
$
1

 
 
 
 
 
 
 
 
Impaired Loans and Finance Leases With An Allowance
Recorded
 

 
 

 
 

 
 

Customer
 

 
 

 
 

 
 

North America
$
10

 
$
—

 
$
24

 
$
—

Europe
19

 
—

 
34

 
—

Asia/Pacific
16

 
—

 
26

 
1

Mining
24

 
—

 
19

 
—

Latin America
24

 
—

 
52

 
1

Caterpillar Power Finance
82

 
1

 
128

 
—

Total
$
175

 
$
1

 
$
283

 
$
2

 
 
 
 
 
 
 
 
Total Impaired Loans and Finance Leases
 

 
 

 
 

 
 

Customer
 

 
 

 
 

 
 

North America
$
35

 
$
1

 
$
52

 
$
1

Europe
67

 
—

 
79

 
—

Asia/Pacific
22

 
—

 
30

 
1

Mining
158

 
2

 
19

 
—

Latin America
41

 
—

 
61

 
1

Caterpillar Power Finance
287

 
3

 
413

 
—

Total
$
610

 
$
6

 
$
654

 
$
3

 
 
 
 
 
 
 
 

Investment in customer loans and finance leases on non-accrual status
The investment in customer loans and finance leases on non-accrual status was as follows: 
(Millions of dollars)
 
 
 
 
March 31,
2014
 
December 31,
2013
Customer
 
 
 
North America
$
29

 
$
26

Europe
31

 
28

Asia/Pacific
57

 
50

Mining
21

 
23

Latin America
165

 
179

Caterpillar Power Finance
82

 
119

Total
$
385

 
$
425

 
 
 
 
Aging related to loans and finance leases
Aging related to loans and finance leases was as follows: 
(Millions of dollars)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2014
 
31-60
Days
Past Due
 
61-90
Days
Past Due
 
91+
Days
Past Due
 
Total
Past Due
 
Current
 
Total
Finance
Receivables
 
91+ Still
Accruing
Customer
 

 
 

 
 

 
 
 
 
 
 
 
 
North America
$
38

 
$
14

 
$
30

 
$
82

 
$
6,632

 
$
6,714

 
$
1

Europe
31

 
19

 
35

 
85

 
2,786

 
2,871

 
6

Asia/Pacific
55

 
28

 
91

 
174

 
3,139

 
3,313

 
35

Mining
—

 
—

 
11

 
11

 
2,193

 
2,204

 
—

Latin America
85

 
39

 
143

 
267

 
2,598

 
2,865

 
4

Caterpillar Power Finance
27

 
19

 
102

 
148

 
2,960

 
3,108

 
24

Dealer
 

 
 

 
 

 


 
 
 


 
 
North America
—

 
—

 
—

 
—

 
3,057

 
3,057

 
—

Europe
—

 
—

 
—

 
—

 
533

 
533

 
—

Asia/Pacific
—

 
—

 
—

 
—

 
687

 
687

 
—

Mining
—

 
—

 
—

 
—

 
4

 
4

 
—

Latin America
—

 
—

 
—

 
—

 
931

 
931

 
—

Caterpillar Power Finance
—

 
—

 
—

 
—

 
—

 
—

 
—

Caterpillar Purchased Receivables
 

 
 

 
 

 


 
 
 


 
 
North America
7

 
4

 
2

 
13

 
1,731

 
1,744

 
1

Europe
2

 
—

 
—

 
2

 
537

 
539

 
—

Asia/Pacific
—

 
—

 
—

 
—

 
684

 
684

 
—

Mining
—

 
—

 
—

 
—

 
—

 
—

 
—

Latin America
—

 
—

 
—

 
—

 
535

 
535

 
—

Caterpillar Power Finance
—

 
—

 
—

 
—

 
11

 
11

 
—

Total
$
245

 
$
123

 
$
414

 
$
782

 
$
29,018

 
$
29,800

 
$
71

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Millions of dollars)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
31-60
Days
Past Due
 
61-90
Days
Past Due
 
91+
Days
Past Due
 
Total
Past Due
 
Current
 
Total
Finance
Receivables
 
91+ Still
Accruing
Customer
 

 
 

 
 

 
 
 
 
 
 
 
 
North America
$
37

 
$
12

 
$
24

 
$
73

 
$
6,522

 
$
6,595

 
$
—

Europe
26

 
15

 
29

 
70

 
2,805

 
2,875

 
6

Asia/Pacific
55

 
46

 
59

 
160

 
3,174

 
3,334

 
11

Mining
3

 
—

 
12

 
15

 
2,128

 
2,143

 
—

Latin America
54

 
25

 
165

 
244

 
2,474

 
2,718

 
5

Caterpillar Power Finance
55

 
30

 
60

 
145

 
2,946

 
3,091

 
—

Dealer
 

 
 

 
 

 


 
 
 


 
 
North America
—

 
—

 
—

 
—

 
3,034

 
3,034

 
—

Europe
—

 
—

 
—

 
—

 
569

 
569

 
—

Asia/Pacific
—

 
—

 
—

 
—

 
706

 
706

 
—

Mining
—

 
—

 
—

 
—

 
5

 
5

 
—

Latin America
—

 
—

 
—

 
—

 
940

 
940

 
—

Caterpillar Power Finance
—

 
—

 
—

 
—

 
—

 
—

 
—

Caterpillar Purchased Receivables
 

 
 

 
 

 


 
 
 


 
 
North America
26

 
5

 
2

 
33

 
1,539

 
1,572

 
2

Europe
2

 
1

 
1

 
4

 
423

 
427

 
—

Asia/Pacific
—

 
—

 
—

 
—

 
468

 
468

 
—

Mining
—

 
—

 
—

 
—

 
—

 
—

 
—

Latin America
—

 
—

 
—

 
—

 
616

 
616

 
—

Caterpillar Power Finance
—

 
—

 
1

 
1

 
8

 
9

 
1

Total
$
258

 
$
134

 
$
353

 
$
745

 
$
28,357

 
$
29,102

 
$
25

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses and recorded investment in finance receivables
An analysis of the Allowance for credit losses was as follows:
(Millions of dollars)
 
 
 
 
 
 
 
 
March 31, 2014
Allowance for Credit Losses:
Customer
 
Dealer
 
Caterpillar
Purchased
Receivables
 
Total
Balance at beginning of year
$
365

 
$
10

 
$
3

 
$
378

Receivables written off
(52
)
 
—

 
—

 
(52
)
Recoveries on receivables previously written off
14

 
—

 
—

 
14

Provision for credit losses
32

 
—

 
1

 
33

Balance at end of period
$
359

 
$
10

 
$
4

 
$
373

 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
50

 
$
—

 
$
—

 
$
50

Collectively evaluated for impairment
309

 
10

 
4

 
323

Ending Balance
$
359

 
$
10

 
$
4

 
$
373

 
 
 
 
 
 
 
 
Recorded Investment in Finance Receivables:
 

 
 

 
 

 
 

Individually evaluated for impairment
$
555

 
$
—

 
$
—

 
$
555

Collectively evaluated for impairment
20,520

 
5,212

 
3,513

 
29,245

Ending Balance
$
21,075

 
$
5,212

 
$
3,513

 
$
29,800

 
 
 
 
 
 
 
 
(Millions of dollars)
 
 
 
 
 
 
 
 
December 31, 2013
Allowance for Credit Losses:
Customer
 
Dealer
 
Caterpillar
Purchased
Receivables
 
Total
Balance at beginning of year
$
414

 
$
9

 
$
3

 
$
426

Receivables written off
(179
)
 
—

 
—

 
(179
)
Recoveries on receivables previously written off
56

 
—

 
—

 
56

Provision for credit losses
83

 
1

 
—

 
84

Adjustment due to sale of receivables
(3
)
 
—

 
—

 
(3
)
Foreign currency translation adjustment
(6
)
 
—

 
—

 
(6
)
Balance at end of year
$
365

 
$
10

 
$
3

 
$
378

 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
70

 
$
—

 
$
—

 
$
70

Collectively evaluated for impairment
295

 
10

 
3

 
308

Ending Balance
$
365

 
$
10

 
$
3

 
$
378

 
 
 
 
 
 
 
 
Recorded Investment in Finance Receivables:
 

 
 

 
 

 
 

Individually evaluated for impairment
$
629

 
$
—

 
$
—

 
$
629

Collectively evaluated for impairment
20,127

 
5,254

 
3,092

 
28,473

Ending Balance
$
20,756

 
$
5,254

 
$
3,092

 
$
29,102

 
 
 
 
 
 
 
 

Recorded investment in performing and non-performing finance receivables
The recorded investment in performing and non-performing finance receivables was as follows:
(Millions of dollars)
 
 
 
 
 
 
 
 
March 31, 2014
 
Customer
 
Dealer
 
Caterpillar
Purchased
Receivables
 
Total
Performing
 
 
 
 
 
 
 
North America
$
6,685

 
$
3,057

 
$
1,744

 
$
11,486

Europe
2,840

 
533

 
539

 
3,912

Asia/Pacific
3,256

 
687

 
684

 
4,627

Mining
2,183

 
4

 
—

 
2,187

Latin America
2,700

 
931

 
535

 
4,166

Caterpillar Power Finance
3,026

 
—

 
11

 
3,037

Total Performing
$
20,690

 
$
5,212

 
$
3,513

 
$
29,415

Non-Performing
 

 
 

 
 

 
 

North America
$
29

 
$
—

 
$
—

 
$
29

Europe
31

 
—

 
—

 
31

Asia/Pacific
57

 
—

 
—

 
57

Mining
21

 
—

 
—

 
21

Latin America
165

 
—

 
—

 
165

Caterpillar Power Finance
82

 
—

 
—

 
82

Total Non-Performing
$
385

 
$
—

 
$
—

 
$
385

Total Performing and Non-Performing
 

 
 

 
 

 
 

North America
$
6,714

 
$
3,057

 
$
1,744

 
$
11,515

Europe
2,871

 
533

 
539

 
3,943

Asia/Pacific
3,313

 
687

 
684

 
4,684

Mining
2,204

 
4

 
—

 
2,208

Latin America
2,865

 
931

 
535

 
4,331

Caterpillar Power Finance
3,108

 
—

 
11

 
3,119

Total
$
21,075

 
$
5,212

 
$
3,513

 
$
29,800

 
 
 
 
 
 
 
 

(Millions of dollars)
 
 
 
 
 
 
 
 
December 31, 2013
 
Customer
 
Dealer
 
Caterpillar
Purchased
Receivables
 
Total
Performing
 
 
 
 
 
 
 
North America
$
6,569

 
$
3,034

 
$
1,572

 
$
11,175

Europe
2,847

 
569

 
427

 
3,843

Asia/Pacific
3,284

 
706

 
468

 
4,458

Mining
2,120

 
5

 
—

 
2,125

Latin America
2,539

 
940

 
616

 
4,095

Caterpillar Power Finance
2,972

 
—

 
9

 
2,981

Total Performing
$
20,331

 
$
5,254

 
$
3,092

 
$
28,677

Non-Performing
 

 
 

 
 

 
 

North America
$
26

 
$
—

 
$
—

 
$
26

Europe
28

 
—

 
—

 
28

Asia/Pacific
50

 
—

 
—

 
50

Mining
23

 
—

 
—

 
23

Latin America
179

 
—

 
—

 
179

Caterpillar Power Finance
119

 
—

 
—

 
119

Total Non-Performing
$
425

 
$
—

 
$
—

 
$
425

Total Performing and Non-Performing
 

 
 

 
 

 
 

North America
$
6,595

 
$
3,034

 
$
1,572

 
$
11,201

Europe
2,875

 
569

 
427

 
3,871

Asia/Pacific
3,334

 
706

 
468

 
4,508

Mining
2,143

 
5

 
—

 
2,148

Latin America
2,718

 
940

 
616

 
4,274

Caterpillar Power Finance
3,091

 
—

 
9

 
3,100

Total
$
20,756

 
$
5,254

 
$
3,092

 
$
29,102

 
 
 
 
 
 
 
 
Loans and finance lease receivables modified as TDRs
Loans and finance lease receivables in the Customer portfolio segment modified as TDRs were as follows:
(Dollars in millions)
Three Months Ended
March 31, 2014
 
Three Months Ended
March 31, 2013
 
Number of
Contracts
 
Pre-TDR
Outstanding
Recorded
Investment
 
Post-TDR
Outstanding
Recorded
Investment
 
Number of
Contracts
 
Pre-TDR
Outstanding
Recorded
Investment
 
Post-TDR
Outstanding
Recorded
Investment
Customer
 
 
 
 
 
 
 
 
 
 
 
North America
3

 
$
2

 
$
2

 
10

 
$
2

 
$
2

Europe
3

 
5

 
5

 
—

 
—

 
—

Mining
1

 
11

 
10

 
—

 
—

 
—

Latin America
1

 
29

 
28

 
—

 
—

 
—

Caterpillar Power Finance(1)
1

 
1

 
1

 
4

 
36

 
37

Total(2)
9

 
$
48

 
$
46

 
14

 
$
38

 
$
39

 
 
 
 
 
 
 
 
 
 
 
 
(1) During the three months ended March 31, 2014, there were no additional funds subsequently loaned to a borrower whose terms had been modified in a TDR. During the three months ended March 31, 2013, $5 million of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. The $5 million of additional funds is not reflected in the table above as no incremental modifications have been made with the borrower during the periods presented. At March 31, 2014, remaining commitments to lend additional funds to a borrower whose terms have been modified in a TDR were $3 million.
(2) Modifications include extended contract maturities, inclusion of interest only periods, below market interest rates and extended skip payment periods.

TDR's with a payment default that had been modified within twelve months prior to the default date
TDRs in the Customer portfolio segment with a payment default during the three months ended March 31, 2014 and 2013, which had been modified within twelve months prior to the default date, were as follows:
(Dollars in millions)
Three Months Ended
March 31, 2014
 
Three Months Ended
March 31, 2013
 
Number of
Contracts
 
Post-TDR
Recorded
Investment
 
Number of
Contracts
 
Post-TDR
Recorded
Investment
Customer
 
 
 
 
 
 
 
North America
7

 
$
1

 
8

 
$
2

Europe
7

 
1

 
—

 
—

Caterpillar Power Finance
—

 
—

 
2

 
3

Total
14

 
$
2

 
10

 
$
5