Financing Activities (Tables)

3 Months Ended

Mar. 31, 2014

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	38		38		11		33		33		9
Caterpillar Power Finance	55		54		18		110		106		51
Total	$	163	$	161	$	53	$	193	$	188	$	73
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	75		75		11		44		44		9
Caterpillar Power Finance	211		210		18		333		328		51
Total	$	565	$	562	$	53	$	639	$	631	$	73



(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	34		—		59		1
Caterpillar Power Finance	82		1		128		—
Total	$	185	$	1	$	290	$	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	51		—		68		1
Caterpillar Power Finance	287		3		413		—
Total	$	620	$	6	$	661	$	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	203		210
Caterpillar Power Finance	82		119
Total	$	423	$	456

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	$	5
Europe	31		19		35		85		2,786		2,871		9
Asia/Pacific	55		28		91		174		3,103		3,277		36
Mining	—		—		11		11		2,193		2,204		—
Latin America	85		39		181		305		2,554		2,859		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	$	452	$	820	$	28,938	$	29,758	$	79



(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	$	6,507	$	6,580	$	6
Europe	26		15		29		70		2,805		2,875		8
Asia/Pacific	55		46		59		160		3,158		3,318		11
Mining	3		—		12		15		2,128		2,143		—
Latin America	54		25		196		275		2,438		2,713		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	$	384	$	776	$	28,290	$	29,066	$	33

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	$	374		$	10	$	3	$	387
Receivables written off	(53		)	—		—		(53		)
Recoveries on receivables previously written off	14			—		—		14
Provision for credit losses	35			—		1		36
Balance at end of period	$	370		$	10	$	4	$	384

Individually evaluated for impairment	$	53		$	—	$	—	$	53
Collectively evaluated for impairment	317			10		4		331
Ending Balance	$	370		$	10	$	4	$	384

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	565		$	—	$	—	$	565
Collectively evaluated for impairment	20,468			5,212		3,513		29,193
Ending Balance	$	21,033		$	5,212	$	3,513	$	29,758



(Millions of dollars)
	December 31, 2013
Allowance for Credit Losses:	Customer			Dealer		Caterpillar Purchased Receivables		Total
Balance at beginning of year	$	417		$	9	$	3	$	429
Receivables written off	(180		)	—		—		(180		)
Recoveries on receivables previously written off	56			—		—		56
Provision for credit losses	90			1		—		91
Adjustment due to sale of receivables	(3		)	—		—		(3		)
Foreign currency translation adjustment	(6		)	—		—		(6		)
Balance at end of year	$	374		$	10	$	3	$	387

Individually evaluated for impairment	$	73		$	—	$	—	$	73
Collectively evaluated for impairment	301			10		3		314
Ending Balance	$	374		$	10	$	3	$	387

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	639		$	—	$	—	$	639
Collectively evaluated for impairment	20,081			5,254		3,092		28,427
Ending Balance	$	20,720		$	5,254	$	3,092	$	29,066

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	3,220		687		684		4,591
Mining	2,183		4		—		2,187
Latin America	2,656		931		535		4,122
Caterpillar Power Finance	3,026		—		11		3,037
Total Performing	$	20,610	$	5,212	$	3,513	$	29,335
Non-Performing
North America	$	29	$	—	$	—	$	29
Europe	31		—		—		31
Asia/Pacific	57		—		—		57
Mining	21		—		—		21
Latin America	203		—		—		203
Caterpillar Power Finance	82		—		—		82
Total Non-Performing	$	423	$	—	$	—	$	423
Total Performing and Non-Performing
North America	$	6,714	$	3,057	$	1,744	$	11,515
Europe	2,871		533		539		3,943
Asia/Pacific	3,277		687		684		4,648
Mining	2,204		4		—		2,208
Latin America	2,859		931		535		4,325
Caterpillar Power Finance	3,108		—		11		3,119
Total	$	21,033	$	5,212	$	3,513	$	29,758



(Millions of dollars)
	December 31, 2013
	Customer		Dealer		Caterpillar Purchased Receivables		Total
Performing
North America	$	6,554	$	3,034	$	1,572	$	11,160
Europe	2,847		569		427		3,843
Asia/Pacific	3,268		706		468		4,442
Mining	2,120		5		—		2,125
Latin America	2,503		940		616		4,059
Caterpillar Power Finance	2,972		—		9		2,981
Total Performing	$	20,264	$	5,254	$	3,092	$	28,610
Non-Performing
North America	$	26	$	—	$	—	$	26
Europe	28		—		—		28
Asia/Pacific	50		—		—		50
Mining	23		—		—		23
Latin America	210		—		—		210
Caterpillar Power Finance	119		—		—		119
Total Non-Performing	$	456	$	—	$	—	$	456
Total Performing and Non-Performing
North America	$	6,580	$	3,034	$	1,572	$	11,186
Europe	2,875		569		427		3,871
Asia/Pacific	3,318		706		468		4,492
Mining	2,143		5		—		2,148
Latin America	2,713		940		616		4,269
Caterpillar Power Finance	3,091		—		9		3,100
Total	$	20,720	$	5,254	$	3,092	$	29,066

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	10	30		29		—	—		—
Caterpillar Power Finance⁽¹⁾	1	1		1		4	36		37
Total⁽²⁾	18	$	49	$	47	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