Financing Activities (Tables)

6 Months Ended

Jun. 30, 2014

Individually impaired loans and finance leases for the Customer portfolio segment were as follows:



(Millions of dollars)
	As of June 30, 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	$	20	$	20	$	—	$	23	$	22	$	—
Europe	46		46		—		48		47		—
Asia/Pacific	1		1		—		7		7		—
Mining	42		42		—		134		134		—
Latin America	38		38		—		11		11		—
Caterpillar Power Finance	150		149		—		223		222		—
Total	$	297	$	296	$	—	$	446	$	443	$	—
Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$	15	$	15	$	7	$	13	$	13	$	4
Europe	14		14		5		20		19		7
Asia/Pacific	17		17		4		17		17		2
Mining	114		114		11		—		—		—
Latin America	20		20		6		33		33		9
Caterpillar Power Finance	89		88		24		110		106		51
Total	$	269	$	268	$	57	$	193	$	188	$	73
Total Impaired Loans and Finance Leases
Customer
North America	$	35	$	35	$	7	$	36	$	35	$	4
Europe	60		60		5		68		66		7
Asia/Pacific	18		18		4		24		24		2
Mining	156		156		11		134		134		—
Latin America	58		58		6		44		44		9
Caterpillar Power Finance	239		237		24		333		328		51
Total	$	566	$	564	$	57	$	639	$	631	$	73



(Millions of dollars)
	Three Months Ended June 30, 2014				Three Months Ended June 30, 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	$	22	$	—	$	28	$	2
Europe	47		—		45		—
Asia/Pacific	4		—		5		—
Mining	87		1		4		—
Latin America	37		—		9		—
Caterpillar Power Finance	162		1		287		1
Total	$	359	$	2	$	378	$	3
Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$	13	$	—	$	17	$	—
Europe	16		—		21		—
Asia/Pacific	14		1		16		—
Mining	73		2		2		—
Latin America	27		—		48		—
Caterpillar Power Finance	63		—		151		—
Total	$	206	$	3	$	255	$	—
Total Impaired Loans and Finance Leases
Customer
North America	$	35	$	—	$	45	$	2
Europe	63		—		66		—
Asia/Pacific	18		1		21		—
Mining	160		3		6		—
Latin America	64		—		57		—
Caterpillar Power Finance	225		1		438		1
Total	$	565	$	5	$	633	$	3



(Millions of dollars)
	Six Months Ended June 30, 2014				Six Months Ended June 30, 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	$	23	$	1	$	28	$	3
Europe	47		—		45		—
Asia/Pacific	5		—		5		—
Mining	107		3		3		—
Latin America	26		—		9		—
Caterpillar Power Finance	188		3		286		1
Total	$	396	$	7	$	376	$	4
Impaired Loans and Finance Leases With An Allowance Recorded
Customer
North America	$	11	$	—	$	20	$	—
Europe	18		—		24		1
Asia/Pacific	15		1		17		1
Mining	51		2		1		—
Latin America	30		—		45		1
Caterpillar Power Finance	75		1		139		—
Total	$	200	$	4	$	246	$	3
Total Impaired Loans and Finance Leases
Customer
North America	$	34	$	1	$	48	$	3
Europe	65		—		69		1
Asia/Pacific	20		1		22		1
Mining	158		5		4		—
Latin America	56		—		54		1
Caterpillar Power Finance	263		4		425		1
Total	$	596	$	11	$	622	$	7

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)
	June 30, 2014		December 31, 2013
Customer
North America	$	27	$	26
Europe	30		28
Asia/Pacific	80		50
Mining	26		23
Latin America	239		210
Caterpillar Power Finance	118		119
Total	$	520	$	456

Aging related to loans and finance leases was as follows:



(Millions of dollars)
	June 30, 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	$	34	$	9	$	31	$	74	$	6,926	$	7,000	$	5
Europe	45		25		35		105		2,860		2,965		10
Asia/Pacific	67		33		94		194		3,179		3,373		16
Mining	4		—		12		16		2,119		2,135		—
Latin America	68		46		211		325		2,639		2,964		2
Caterpillar Power Finance	13		—		130		143		3,045		3,188		17
Dealer
North America	—		—		—		—		3,352		3,352		—
Europe	—		—		—		—		539		539		—
Asia/Pacific	—		—		—		—		696		696		—
Mining	—		—		—		—		4		4		—
Latin America	—		—		—		—		880		880		—
Caterpillar Power Finance	—		—		—		—		—		—		—
Caterpillar Purchased Receivables
North America	22		9		3		34		1,928		1,962		3
Europe	3		1		—		4		501		505		—
Asia/Pacific	—		—		—		—		400		400		—
Mining	—		—		—		—		—		—		—
Latin America	—		—		—		—		487		487		—
Caterpillar Power Finance	1		1		—		2		6		8		—
Total	$	257	$	124	$	516	$	897	$	29,561	$	30,458	$	53



(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)
	June 30, 2014
Allowance for Credit Losses:	Customer			Dealer		Caterpillar Purchased Receivables		Total
Balance at beginning of year	$	374		$	10	$	3	$	387
Receivables written off	(84		)	—		—		(84		)
Recoveries on receivables previously written off	26			—		—		26
Provision for credit losses	67			—		—		67
Adjustment due to sale of receivables	(2		)	—		—		(2		)
Foreign currency translation adjustment	1			—		—		1
Balance at end of period	$	382		$	10	$	3	$	395

Individually evaluated for impairment	$	57		$	—	$	—	$	57
Collectively evaluated for impairment	325			10		3		338
Ending Balance	$	382		$	10	$	3	$	395

Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	566		$	—	$	—	$	566
Collectively evaluated for impairment	21,059			5,471		3,362		29,892
Ending Balance	$	21,625		$	5,471	$	3,362	$	30,458



(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)
	June 30, 2014
	Customer		Dealer		Caterpillar Purchased Receivables		Total
Performing
North America	$	6,973	$	3,352	$	1,962	$	12,287
Europe	2,935		539		505		3,979
Asia/Pacific	3,293		696		400		4,389
Mining	2,109		4		—		2,113
Latin America	2,725		880		487		4,092
Caterpillar Power Finance	3,070		—		8		3,078
Total Performing	$	21,105	$	5,471	$	3,362	$	29,938
Non-Performing
North America	$	27	$	—	$	—	$	27
Europe	30		—		—		30
Asia/Pacific	80		—		—		80
Mining	26		—		—		26
Latin America	239		—		—		239
Caterpillar Power Finance	118		—		—		118
Total Non-Performing	$	520	$	—	$	—	$	520
Total Performing and Non-Performing
North America	$	7,000	$	3,352	$	1,962	$	12,314
Europe	2,965		539		505		4,009
Asia/Pacific	3,373		696		400		4,469
Mining	2,135		4		—		2,139
Latin America	2,964		880		487		4,331
Caterpillar Power Finance	3,188		—		8		3,196
Total	$	21,625	$	5,471	$	3,362	$	30,458



(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 June 30, 2014					Three Months Ended June 30, 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	1	$	—	$	—	22	$	2	$	3
Europe	5	2		2		8	1		1
Mining	1	32		23		—	—		—
Latin America	18	1		1		10	1		1
Caterpillar Power Finance⁽¹⁾	5	35		34		—	—		—
Total⁽²⁾	30	$	70	$	60	40	$	4	$	5

	Six Months Ended June 30, 2014					Six Months Ended June 30, 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	4	$	2	$	2	32	$	4	$	5
Europe	8	7		7		8	1		1
Mining	2	43		33		—	—		—
Latin America	28	31		30		10	1		1
Caterpillar Power Finance⁽¹⁾	6	36		35		4	36		37
Total⁽²⁾	48	$	119	$	107	54	$	42	$	44

⁽¹⁾During the three and six months ended June 30, 2014, there were no additional funds subsequently loaned to a borrower whose terms had been modified in a TDR. During the three and six months ended June 30, 2013, $7 million and $12 million, respectively, of additional funds were subsequently loaned to a borrower whose terms had been modified in a TDR. The $7 and $12 million of additional funds are not reflected in the table above as no incremental modifications have been made with the borrower during the periods presented. At June 30, 2014, remaining commitments to lend additional funds to a borrower whose terms have been modified in a TDR were $2 million.

⁽²⁾Modifications include extended contract maturities, inclusion of interest only periods, below market interest rates, extended skip payment periods and reduction of principal and/or accrued interest.

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 and six months ended June 30, 2014 and 2013, which had been modified within twelve months prior to the default date, were as follows:



(Dollars in millions)	Three Months Ended June 30, 2014			Three Months Ended June 30, 2013
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
Customer
North America	—	$	—	5	$	1
Total	—	$	—	5	$	1

	Six Months Ended June 30, 2014			Six Months Ended June 30, 2013
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
Customer
North America	7	$	1	13	$	3
Europe	7	1		—	—
Caterpillar Power Finance	—	—		2	3
Total	14	$	2	15	$	6