Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Contractual maturities for finance lease receivables (classified as sales-type and direct finance leases)

Contractual maturities for finance lease receivables (classified as sales-type and direct finance leases) were as follows:

(Millions of dollars)	March 31, 2019
Amounts due in	Retail leases			Wholesale leases			Total
Remaining nine months of 2019	$	2,423		$	22		$	2,445
2020	2,303			21			2,324
2021	1,282			13			1,295
2022	564			6			570
2023	226			2			228
Thereafter	80			2			82
Total	6,878			66			6,944
Guaranteed residual value	396			39			435
Unguaranteed residual value	849			2			851
Unearned income	(640		)	(6		)	(646		)
Total	$	7,483		$	101		$	7,584

(Millions of dollars)	December 31, 2018
Amounts due in	Retail leases			Wholesale leases			Total
2019	$	3,024		$	29		$	3,053
2020	2,055			21			2,076
2021	1,092			12			1,104
2022	465			5			470
2023	171			2			173
Thereafter	62			2			64
Total	6,869			71			6,940
Guaranteed residual value	416			42			458
Unguaranteed residual value	854			3			857
Unearned income	(640		)	(7		)	(647		)
Total	$	7,499		$	109		$	7,608

Components of equipment on operating leases, less accumulated depreciation

Components of equipment on operating leases, less accumulated depreciation, were as follows: 

(Millions of dollars)
	March 31, 2019			December 31, 2018
Equipment on operating leases, at cost	$	5,120		$	5,201
Less: Accumulated depreciation	(1,649		)	(1,639		)
Equipment on operating leases, net (1)	$	3,471		$	3,562

⁽¹⁾ Includes $52 million and $45 million of operating leases with Caterpillar as of March 31, 2019 and December 31, 2018, respectively.

Schedule of payments due for operating leases

At March 31, 2019, payments due for operating leases were as follows: 

(Millions of dollars)
Remaining Nine Months of 2019		2020		2021		2022		2023		Thereafter		Total
$	629	$	553	$	294	$	131	$	52	$	20	$	1,679

Scheduled minimum rental payments for operating leases

At December 31, 2018, scheduled minimum rental payments for operating leases were as follows: 

(Millions of dollars)
2019		2020		2021		2022		2023		Thereafter		Total
$	808	$	503	$	257	$	115	$	41	$	15	$	1,739

Revenue from finance and operating leases

Revenue from finance and operating leases were as follows: 

(Millions of dollars)
	Three Months Ended March 31, 2019
Finance lease revenue (included in retail and wholesale finance revenue)	$	118
Operating lease revenue	258
Total	$	376

Components of lease cost

The components of lease cost were as follows:

(Millions of dollars)
	Three Months Ended March 31, 2019
Operating lease cost	$	2
Short-term lease cost	$	—
Variable lease cost	$	—

Supplemental information related to operating leases

Supplemental information related to operating leases was as follows:

(Millions of dollars)
	Consolidated Statements of Financial Position Location	March 31, 2019			January 1, 2019
Right-of-use assets	Other assets	$	21		$	22
Lease liabilities	Other liabilities	$	21		$	23
Weighted average remaining lease term		4 years			4 years
Weighted average discount rate		2.6		%	2.6		%

Maturities of operating lease liabilities

At March 31, 2019, maturities of operating lease liabilities were as follows:

(Millions of dollars)
Remaining nine months of 2019	$	6
2020	6
2021	4
2022	2
2023	2
Thereafter	2
Total lease payments	22
Less: imputed interest	(1		)
Total	$	21

Schedule of minimum payments for operating leases having initial non-cancelable terms in excess of one year

At December 31, 2018, minimum payments for operating leases having initial non-cancelable terms in excess of one year were as follows:

(Millions of dollars)
2019	$	8
2020	6
2021	4
2022	2
2023	2
Thereafter	2
Total	$	24

Supplemental cash flow information related to operating leases

Supplemental cash flow information related to operating leases was as follows:

(Millions of dollars)
	Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	2
Right-of-use assets obtained in exchange for new operating lease obligations	$	23