Leases (Tables)

9 Months Ended

Sep. 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)	September 30, 2019
Amounts due in	Retail leases			Wholesale leases			Total
Remaining three months of 2019	$	917		$	3		$	920
2020	2,840			19			2,859
2021	1,766			12			1,778
2022	881			5			886
2023	383			2			385
Thereafter	204			2			206
Total	6,991			43			7,034
Guaranteed residual value	398			26			424
Unguaranteed residual value	825			5			830
Unearned income	(683		)	(4		)	(687		)
Total	$	7,531		$	70		$	7,601

(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

Carrying amount of Equipment on operating leases, net

The carrying amount of Equipment on operating leases, net in the Consolidated Statements of Financial Position was as follows: 

(Millions of dollars)
	September 30, 2019			December 31, 2018
Equipment on operating leases, at cost	$	5,229		$	5,201
Less: Accumulated depreciation	(1,662		)	(1,639		)
Equipment on operating leases, net (1)	$	3,567		$	3,562

⁽¹⁾ Includes $101 million and $45 million of operating leases with Caterpillar as of September 30, 2019 and December 31, 2018, respectively.

Schedule of payments due for operating leases

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

(Millions of dollars)
Remaining Three Months of 2019		2020		2021		2022		2023		Thereafter		Total
$	245	$	758	$	433	$	216	$	96	$	58	$	1,806

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

Revenues from finance and operating leases

Revenues from finance and operating leases were as follows: 

(Millions of dollars)
	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Finance lease revenue (included in retail and wholesale finance revenue)	$	135	$	388
Operating lease revenue	262		777
Total	$	397	$	1,165

Components of lease cost

The components of lease cost were as follows:

(Millions of dollars)
	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease cost	$	2	$	6
Short-term lease cost	$	—	$	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	September 30, 2019			January 1, 2019
Right-of-use assets	Other assets	$	22		$	22
Lease liabilities	Other liabilities	$	22		$	23
Weighted average remaining lease term		5 years			4 years
Weighted average discount rates		2.4		%	2.6		%

Maturities of operating lease liabilities

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

(Millions of dollars)
Remaining three months of 2019	$	2
2020	7
2021	4
2022	3
2023	3
Thereafter	4
Total lease payments	23
Less: imputed interest	(1		)
Total	$	22

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)
	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	6
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.