Transactions with Related Parties (Tables)

12 Months Ended

Dec. 31, 2017

We have variable amount and term lending agreements and other notes receivable with Caterpillar. Under these agreements, we may borrow up to $2.79 billion from Caterpillar, and Caterpillar may borrow up to $2.14 billion from us. The variable amount lending agreements are in effect for indefinite periods of time and may be changed or terminated by either party with 30 days notice. The term lending agreements have remaining maturities ranging up to ten years. We extended a $2 billion committed credit facility to Caterpillar, which expires in February 2019. Under this agreement, we receive a fee from Caterpillar based on amounts drawn under the credit facility and a commitment fee for the undrawn amounts under the credit facility. Information concerning these agreements was as follows:



(Millions of dollars)
	2017		2016		2015
Notes payable as of December 31,	$	1,638	$	1,637	$	1,096
Notes receivable as of December 31,	$	559	$	530	$	490
Interest expense	$	21	$	15	$	6
Interest income on Notes Receivable with Caterpillar⁽¹⁾	$	74	$	30	$	21
Fees on committed credit facility extended to Caterpillar⁽¹⁾	$	40	$	40	$	40

⁽¹⁾Included in Other revenues, net in the Consolidated Statements of Profit.

We have agreements with Caterpillar to purchase certain trade receivables at a discount. Information pertaining to these purchases was as follows:



(Millions of dollars)
	2017		2016		2015
Purchases made	$	34,667	$	28,631	$	33,154
Discounts earned	$	253	$	207	$	222
Purchased Receivables as of December 31,	$	3,461	$	2,431	$	2,601