Financing Activities (Tables)

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Impaired finance receivables

Individually impaired finance receivables for the Customer portfolio segment were as follows:

(Millions of dollars)
	As of September 30, 2015						As of December 31, 2014
Impaired Finance Receivables With No Allowance Recorded	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Customer
North America	$	10	$	10	$	—	$	14	$	14	$	—
Europe	43		42		—		44		43		—
Asia/Pacific	2		1		—		2		2		—
Mining	56		56		—		29		29		—
Latin America	31		31		—		34		34		—
Caterpillar Power Finance	191		191		—		129		128		—
Total	$	333	$	331	$	—	$	252	$	250	$	—
Impaired Finance Receivables With An Allowance Recorded
Customer
North America	$	13	$	13	$	3	$	6	$	6	$	1
Europe	9		8		4		12		12		4
Asia/Pacific	48		48		9		29		29		8
Mining	13		13		5		138		137		9
Latin America	60		60		22		42		42		12
Caterpillar Power Finance	89		88		39		135		134		41
Total	$	232	$	230	$	82	$	362	$	360	$	75
Total Impaired Finance Receivables
Customer
North America	$	23	$	23	$	3	$	20	$	20	$	1
Europe	52		50		4		56		55		4
Asia/Pacific	50		49		9		31		31		8
Mining	69		69		5		167		166		9
Latin America	91		91		22		76		76		12
Caterpillar Power Finance	280		279		39		264		262		41
Total	$	565	$	561	$	82	$	614	$	610	$	75

(Millions of dollars)
	Three Months Ended September 30, 2015				Three Months Ended September 30, 2014
Impaired Finance Receivables With No Allowance Recorded	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Customer
North America	$	10	$	1	$	19	$	—
Europe	43		—		47		1
Asia/Pacific	1		—		1		—
Mining	63		—		29		—
Latin America	32		—		37		—
Caterpillar Power Finance	165		1		143		1
Total	$	314	$	2	$	276	$	2
Impaired Finance Receivables With An Allowance Recorded
Customer
North America	$	10	$	—	$	10	$	—
Europe	15		—		24		1
Asia/Pacific	63		—		26		—
Mining	9		—		127		2
Latin America	69		1		34		1
Caterpillar Power Finance	125		2		100		1
Total	$	291	$	3	$	321	$	5
Total Impaired Finance Receivables
Customer
North America	$	20	$	1	$	29	$	—
Europe	58		—		71		2
Asia/Pacific	64		—		27		—
Mining	72		—		156		2
Latin America	101		1		71		1
Caterpillar Power Finance	290		3		243		2
Total	$	605	$	5	$	597	$	7

(Millions of dollars)
	Nine Months Ended September 30, 2015				Nine Months Ended September 30, 2014
Impaired Finance Receivables With No Allowance Recorded	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Customer
North America	$	12	$	1	$	22	$	1
Europe	43		—		47		1
Asia/Pacific	2		—		4		—
Mining	80		3		82		3
Latin America	32		—		29		—
Caterpillar Power Finance	157		3		174		4
Total	$	326	$	7	$	358	$	9
Impaired Finance Receivables With An Allowance Recorded
Customer
North America	$	7	$	—	$	10	$	—
Europe	15		1		21		1
Asia/Pacific	42		1		19		1
Mining	47		1		75		4
Latin America	56		2		33		1
Caterpillar Power Finance	128		3		84		2
Total	$	295	$	8	$	242	$	9
Total Impaired Finance Receivables
Customer
North America	$	19	$	1	$	32	$	1
Europe	58		1		68		2
Asia/Pacific	44		1		23		1
Mining	127		4		157		7
Latin America	88		2		62		1
Caterpillar Power Finance	285		6		258		6
Total	$	621	$	15	$	600	$	18

Investment in customer finance receivables on non-accrual status

The investment in Customer finance receivables on non-accrual status was as follows: 

(Millions of dollars)
	September 30, 2015		December 31, 2014
Customer
North America	$	30	$	27
Europe	46		28
Asia/Pacific	25		54
Mining	133		62
Latin America	260		201
Caterpillar Power Finance	114		96
Total	$	608	$	468

Aging related to finance receivables

Aging related to finance receivables was as follows: 

(Millions of dollars)
	September 30, 2015
	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	$	46	$	18	$	29	$	93	$	7,723	$	7,816	$	4
Europe	29		11		48		88		2,399		2,487		7
Asia/Pacific	46		23		34		103		2,175		2,278		10
Mining	18		1		58		77		1,771		1,848		—
Latin America	42		42		204		288		1,919		2,207		—
Caterpillar Power Finance	6		—		47		53		3,119		3,172		6
Dealer
North America	—		—		—		—		3,528		3,528		—
Europe	—		—		—		—		400		400		—
Asia/Pacific	—		—		—		—		584		584		—
Mining	—		—		—		—		7		7		—
Latin America	—		—		—		—		724		724		—
Caterpillar Power Finance	—		—		—		—		3		3		—
Caterpillar Purchased Receivables
North America	21		5		2		28		1,461		1,489		2
Europe	2		1		6		9		341		350		—
Asia/Pacific	—		—		—		—		369		369		—
Mining	—		—		—		—		—		—		—
Latin America	—		—		—		—		323		323		—
Caterpillar Power Finance	—		—		—		—		6		6		—
Total	$	210	$	101	$	428	$	739	$	26,852	$	27,591	$	29

(Millions of dollars)
	December 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	$	46	$	8	$	27	$	81	$	7,291	$	7,372	$	4
Europe	16		23		29		68		2,607		2,675		6
Asia/Pacific	29		22		69		120		2,773		2,893		16
Mining	28		—		11		39		2,084		2,123		—
Latin America	55		23		196		274		2,583		2,857		8
Caterpillar Power Finance	1		4		64		69		3,079		3,148		1
Dealer
North America	—		—		—		—		3,209		3,209		—
Europe	—		—		—		—		467		467		—
Asia/Pacific	—		—		—		—		637		637		—
Mining	—		—		—		—		3		3		—
Latin America	—		—		—		—		853		853		—
Caterpillar Power Finance	—		—		—		—		—		—		—
Caterpillar Purchased Receivables
North America	23		5		1		29		1,916		1,945		1
Europe	4		1		5		10		429		439		1
Asia/Pacific	—		—		—		—		401		401		—
Mining	—		—		—		—		—		—		—
Latin America	6		5		—		11		420		431		—
Caterpillar Power Finance	—		—		1		1		21		22		1
Total	$	208	$	91	$	403	$	702	$	28,773	$	29,475	$	38

Allowance for credit losses and recorded investment in finance receivables

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

(Millions of dollars)
	September 30, 2015
Allowance for Credit Losses:	Customer			Dealer			Caterpillar Purchased Receivables		Total
Balance at beginning of year	$	388		$	10		$	3	$	401
Receivables written off	(151		)	—			—		(151		)
Recoveries on receivables previously written off	32			—			—		32
Provision for credit losses	89			(1		)	—		88
Adjustment due to sale of receivables	(1		)	—			—		(1		)
Foreign currency translation adjustment	(21		)	—			—		(21		)
Balance at end of period	$	336		$	9		$	3	$	348
Individually evaluated for impairment	$	82		$	—		$	—	$	82
Collectively evaluated for impairment	254			9			3		266
Ending Balance	$	336		$	9		$	3	$	348
Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	565		$	—		$	—	$	565
Collectively evaluated for impairment	19,243			5,246			2,537		27,026
Ending Balance	$	19,808		$	5,246		$	2,537	$	27,591

(Millions of dollars)
	December 31, 2014
Allowance for Credit Losses:	Customer			Dealer		Caterpillar Purchased Receivables		Total
Balance at beginning of year	$	374		$	10	$	3	$	387
Receivables written off	(146		)	—		—		(146		)
Recoveries on receivables previously written off	47			—		—		47
Provision for credit losses	136			—		—		136
Adjustment due to sale of receivables	(3		)	—		—		(3		)
Foreign currency translation adjustment	(20		)	—		—		(20		)
Balance at end of year	$	388		$	10	$	3	$	401
Individually evaluated for impairment	$	75		$	—	$	—	$	75
Collectively evaluated for impairment	313			10		3		326
Ending Balance	$	388		$	10	$	3	$	401
Recorded Investment in Finance Receivables:
Individually evaluated for impairment	$	614		$	—	$	—	$	614
Collectively evaluated for impairment	20,454			5,169		3,238		28,861
Ending Balance	$	21,068		$	5,169	$	3,238	$	29,475

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)
	September 30, 2015
	Customer		Dealer		Caterpillar Purchased Receivables		Total
Performing
North America	$	7,786	$	3,528	$	1,489	$	12,803
Europe	2,441		400		344		3,185
Asia/Pacific	2,253		584		369		3,206
Mining	1,715		7		—		1,722
Latin America	1,947		724		323		2,994
Caterpillar Power Finance	3,058		3		6		3,067
Total Performing	$	19,200	$	5,246	$	2,531	$	26,977
Non-Performing
North America	$	30	$	—	$	—	$	30
Europe	46		—		6		52
Asia/Pacific	25		—		—		25
Mining	133		—		—		133
Latin America	260		—		—		260
Caterpillar Power Finance	114		—		—		114
Total Non-Performing	$	608	$	—	$	6	$	614
Total Performing and Non-Performing
North America	$	7,816	$	3,528	$	1,489	$	12,833
Europe	2,487		400		350		3,237
Asia/Pacific	2,278		584		369		3,231
Mining	1,848		7		—		1,855
Latin America	2,207		724		323		3,254
Caterpillar Power Finance	3,172		3		6		3,181
Total	$	19,808	$	5,246	$	2,537	$	27,591

(Millions of dollars)
	December 31, 2014
	Customer		Dealer		Caterpillar Purchased Receivables		Total
Performing
North America	$	7,345	$	3,209	$	1,945	$	12,499
Europe	2,647		467		435		3,549
Asia/Pacific	2,839		637		401		3,877
Mining	2,061		3		—		2,064
Latin America	2,656		853		431		3,940
Caterpillar Power Finance	3,052		—		22		3,074
Total Performing	$	20,600	$	5,169	$	3,234	$	29,003
Non-Performing
North America	$	27	$	—	$	—	$	27
Europe	28		—		4		32
Asia/Pacific	54		—		—		54
Mining	62		—		—		62
Latin America	201		—		—		201
Caterpillar Power Finance	96		—		—		96
Total Non-Performing	$	468	$	—	$	4	$	472
Total Performing and Non-Performing
North America	$	7,372	$	3,209	$	1,945	$	12,526
Europe	2,675		467		439		3,581
Asia/Pacific	2,893		637		401		3,931
Mining	2,123		3		—		2,126
Latin America	2,857		853		431		4,141
Caterpillar Power Finance	3,148		—		22		3,170
Total	$	21,068	$	5,169	$	3,238	$	29,475

Finance receivables modified as TDRs

Finance receivables in the Customer portfolio segment modified as TDRs were as follows:

(Dollars in millions)	Three Months Ended September 30, 2015					Three Months Ended September 30, 2014
	Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment		Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
Customer
North America	6	$	—	$	—	20	$	9	$	3
Europe	4	—		—		—	—		—
Asia/Pacific	1	1		1		—	—		—
Mining	2	15		14		45	122		124
Latin America	10	1		2		3	—		—
Caterpillar Power Finance	8	93		79		7	44		46
Total(1)	31	$	110	$	96	75	$	175	$	173
	Nine Months Ended September 30, 2015					Nine Months Ended September 30, 2014
	Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment		Number of Contracts	Pre-TDR Recorded Investment		Post-TDR Recorded Investment
Customer
North America	10	$	1	$	1	24	$	11	$	5
Europe	23	2		2		8	7		7
Asia/Pacific	21	26		26		—	—		—
Mining	2	15		14		47	165		157
Latin America	10	1		2		31	31		30
Caterpillar Power Finance	12	197		180		13	80		81
Total(1)	78	$	242	$	225	123	$	294	$	280

⁽¹⁾ 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.

TDRs in the Customer portfolio segment with a payment default during the three and nine months ended September 30, 2015 and 2014, which had been modified within twelve months prior to the default date, were as follows:

(Dollars in millions)	Three Months Ended September 30, 2015			Three Months Ended September 30, 2014
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
Customer
North America	5	$	—	3	$	—
Europe	—	—		5	1
Latin America	—	—		7	—
Total	5	$	—	15	$	1
	Nine Months Ended September 30, 2015			Nine Months Ended September 30, 2014
	Number of Contracts	Post-TDR Recorded Investment		Number of Contracts	Post-TDR Recorded Investment
Customer
North America	10	$	1	10	$	1
Europe	—	—		12	2
Latin America	1	—		7	—
Total	11	$	1	29	$	3