Leases (Tables)

6 Months Ended

Jun. 30, 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)	June 30, 2019
Amounts due in	Retail leases			Wholesale leases			Total
Remaining six months of 2019	$	1,834		$	14		$	1,848
2020	2,606			21			2,627
2021	1,543			14			1,557
2022	716			6			722
2023	302			3			305
Thereafter	149			2			151
Total	7,150			60			7,210
Guaranteed residual value	411			33			444
Unguaranteed residual value	835			2			837
Unearned income	(713		)	(6		)	(719		)
Total	$	7,683		$	89		$	7,772

(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)
	June 30, 2019			December 31, 2018
Equipment on operating leases, at cost	$	5,249		$	5,201
Less: Accumulated depreciation	(1,674		)	(1,639		)
Equipment on operating leases, net (1)	$	3,575		$	3,562

⁽¹⁾ Includes $66 million and $45 million of operating leases with Caterpillar as of June 30, 2019 and December 31, 2018, respectively.

Schedule of payments due for operating leases

At June 30, 2019, payments due for operating leases were as follows: 

(Millions of dollars)
Remaining Six Months of 2019		2020		2021		2022		2023		Thereafter		Total
$	525	$	620	$	346	$	165	$	69	$	31	$	1,756

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 June 30, 2019		Six Months Ended June 30, 2019
Finance lease revenue (included in retail and wholesale finance revenue)	$	135	$	253
Operating lease revenue	257		515
Total	$	392	$	768

Components of lease cost

The components of lease cost were as follows:

(Millions of dollars)
	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease cost	$	2	$	4
Short-term lease cost	$	1	$	1
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	June 30, 2019			January 1, 2019
Right-of-use assets	Other assets	$	20		$	22
Lease liabilities	Other liabilities	$	20		$	23
Weighted average remaining lease term		4 years			4 years
Weighted average discount rate		2.6		%	2.6		%

Maturities of operating lease liabilities

At June 30, 2019, maturities of operating lease liabilities were as follows:

(Millions of dollars)
Remaining six months of 2019	$	4
2020	6
2021	4
2022	3
2023	2
Thereafter	2
Total lease payments	21
Less: imputed interest	(1		)
Total	$	20

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)
	Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	4
Right-of-use assets obtained in exchange for operating lease obligations(1)	$	24

⁽¹⁾ Includes a $23 million impact of initial recognition of right-of-use assets and lease liabilities.