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Finance Receivables (Tables)
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Summary of finance receivables included in the Consolidated Statements of Financial Position
A summary of finance receivables included in the Consolidated Statements of Financial Position as of December 31, was as follows:
(Millions of dollars)
 
2019
 
2018
Retail loans, net(1)
 
$
15,424

 
$
15,509

Retail leases, net
 
7,660

 
7,499

Caterpillar purchased receivables, net
 
4,448

 
4,691

Wholesale loans, net(1)
 
664

 
626

Wholesale leases, net
 
60

 
109

Recorded investment in finance receivables
 
28,256

 
28,434

Less: Allowance for credit losses
 
(424
)
 
(511
)
Total finance receivables, net
 
$
27,832

 
$
27,923

 
 
 
 
 

(1) Includes failed sale leasebacks.
Maturities of finance receivables
Maturities of our finance receivables, as of December 31, 2019, reflect contractual repayments due from borrowers and were as follows:
(Millions of dollars)
 
 
 
 
 
 
 
 
 
 
 
 
Amounts due in
 
Retail
loans
 
Retail
leases
 
Caterpillar
purchased
receivables
 
Wholesale
loans
 
Wholesale
leases
 
Total
2020
 
$
6,486

 
$
3,184

 
$
4,505

 
$
424

 
$
17

 
$
14,616

2021
 
3,696

 
2,043

 
—

 
121

 
12

 
5,872

2022
 
2,693

 
1,105

 
—

 
83

 
5

 
3,886

2023
 
1,688

 
494

 
—

 
7

 
2

 
2,191

2024
 
648

 
196

 
—

 
1

 
1

 
846

Thereafter
 
435

 
80

 
—

 
3

 
1

 
519

Total
 
15,646

 
7,102

 
4,505

 
639

 
38

 
27,930

Guaranteed residual value(1)
 
53

 
416

 
—

 
25

 
24

 
518

Unguaranteed residual value
 
—

 
829

 
—

 
—

 
2

 
831

Unearned income
 
(275
)
 
(687
)
 
(57
)
 
—

 
(4
)
 
(1,023
)
Total
 
$
15,424

 
$
7,660

 
$
4,448

 
$
664

 
$
60

 
$
28,256

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) For Retail loans and Wholesale loans, represents residual value on failed sale leasebacks.
Allowance for credit losses and recorded investment in finance receivables
An analysis of the allowance for credit losses was as follows:
(Millions of dollars)
 
 
 
 
 
 
 
 
 
 
December 31, 2019
Allowance for Credit Losses:
 
Customer
 
Dealer
 
Caterpillar
Purchased
Receivables
 
Total
Balance at beginning of year
 
$
486

 
$
21

 
$
4

 
$
511

Receivables written off
 
(281
)
 
—

 
—

 
(281
)
Recoveries on receivables previously written off
 
44

 
—

 
—

 
44

Provision for credit losses
 
138

 
24

 
—

 
162

Adjustment due to sale of receivables
 
(11
)
 
—

 
—

 
(11
)
Foreign currency translation adjustment
 
(1
)
 
—

 
—

 
(1
)
Balance at end of year
 
$
375

 
$
45

 
$
4

 
$
424

 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
178

 
$
39

 
$
—

 
$
217

Collectively evaluated for impairment
 
197

 
6

 
4

 
207

Ending Balance
 
$
375

 
$
45

 
$
4

 
$
424

 
 
 
 
 
 
 
 
 
Recorded Investment in Finance Receivables:
 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
594

 
$
78

 
$
—

 
$
672

Collectively evaluated for impairment
 
18,770

 
4,366

 
4,448

 
27,584

Ending Balance
 
$
19,364

 
$
4,444

 
$
4,448

 
$
28,256

 
 
 
 
 
 
 
 
 

(Millions of dollars)
 
 
 
 
 
 
 
 
 
 
December 31, 2018
Allowance for Credit Losses:
 
Customer
 
Dealer
 
Caterpillar
Purchased
Receivables
 
Total
Balance at beginning of year
 
$
353

 
$
9

 
$
3

 
$
365

Receivables written off
 
(235
)
 
—

 
—

 
(235
)
Recoveries on receivables previously written off
 
46

 
—

 
—

 
46

Provision for credit losses
 
337

 
12

 
1

 
350

Adjustment due to sale of receivables
 
(7
)
 
—

 
—

 
(7
)
Foreign currency translation adjustment
 
(8
)
 
—

 
—

 
(8
)
Balance at end of year
 
$
486

 
$
21

 
$
4

 
$
511

 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
288

 
$
14

 
$
—

 
$
302

Collectively evaluated for impairment
 
198

 
7

 
4

 
209

Ending Balance
 
$
486

 
$
21

 
$
4

 
$
511

 
 
 
 
 
 
 
 
 
Recorded Investment in Finance Receivables:
 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
859

 
$
78

 
$
—

 
$
937

Collectively evaluated for impairment
 
18,724

 
4,082

 
4,691

 
27,497

Ending Balance
 
$
19,583

 
$
4,160

 
$
4,691

 
$
28,434

 
 
 
 
 
 
 
 
 
Aging related to finance receivables
The tables below summarize our recorded investment in finance receivables by aging category.
(Millions of dollars)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
31-60
Days
Past Due
 
61-90
Days
Past Due
 
91+
Days
Past Due
 
Total
Past Due
 
Current
 
Recorded
Investment in
Finance
Receivables
 
91+ Still
Accruing
Customer
 
 

 
 

 
 

 
 
 
 
 
 
 
 
North America
 
$
72

 
$
23

 
$
55

 
$
150

 
$
8,121

 
$
8,271

 
$
15

EAME
 
30

 
31

 
141

 
202

 
2,955

 
3,157

 
4

Asia/Pacific
 
40

 
14

 
29

 
83

 
2,992

 
3,075

 
8

Mining
 
5

 
—

 
19

 
24

 
1,851

 
1,875

 
—

Latin America
 
41

 
23

 
80

 
144

 
1,178

 
1,322

 
2

Caterpillar Power Finance
 
10

 
10

 
225

 
245

 
1,419

 
1,664

 
—

Dealer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
—

 
—

 
—

 
—

 
2,514

 
2,514

 
—

EAME
 
—

 
—

 
—

 
—

 
600

 
600

 
—

Asia/Pacific
 
—

 
—

 
—

 
—

 
487

 
487

 
—

Mining
 
—

 
—

 
—

 
—

 
4

 
4

 
—

Latin America
 
—

 
—

 
78

 
78

 
758

 
836

 
—

Caterpillar Power Finance
 
—

 
—

 
—

 
—

 
3

 
3

 
—

Caterpillar Purchased Receivables(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
15

 
6

 
18

 
39

 
2,450

 
2,489

 


EAME
 
1

 
—

 
2

 
3

 
574

 
577

 


Asia/Pacific
 
1

 
—

 
—

 
1

 
891

 
892

 


Mining
 
—

 
—

 
—

 
—

 
—

 
—

 


Latin America
 
—

 
—

 
—

 
—

 
475

 
475

 


Caterpillar Power Finance
 
—

 
—

 
—

 
—

 
15

 
15

 


Total
 
$
215

 
$
107

 
$
647

 
$
969

 
$
27,287

 
$
28,256

 
$
29

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Caterpillar Purchased Receivables are non-interest bearing trade receivables purchased at a discount.

(Millions of dollars)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
31-60
Days
Past Due
 
61-90
Days
Past Due
 
91+
Days
Past Due
 
Total
Past Due
 
Current
 
Recorded
Investment in
Finance
Receivables
 
91+ Still
Accruing
Customer
 
 

 
 

 
 

 
 
 
 
 
 
 
 
North America
 
$
65

 
$
18

 
$
84

 
$
167

 
$
7,883

 
$
8,050

 
$
14

EAME
 
19

 
9

 
153

 
181

 
2,850

 
3,031

 
5

Asia/Pacific
 
25

 
9

 
8

 
42

 
2,923

 
2,965

 
5

Mining
 
28

 
1

 
9

 
38

 
1,642

 
1,680

 
—

Latin America
 
38

 
29

 
71

 
138

 
1,421

 
1,559

 
—

Caterpillar Power Finance
 
10

 
1

 
384

 
395

 
1,903

 
2,298

 
—

Dealer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
—

 
—

 
—

 
—

 
2,210

 
2,210

 
—

EAME
 
—

 
—

 
—

 
—

 
619

 
619

 
—

Asia/Pacific
 
—

 
—

 
—

 
—

 
514

 
514

 
—

Mining
 
—

 
—

 
—

 
—

 
4

 
4

 
—

Latin America
 
—

 
—

 
78

 
78

 
731

 
809

 
—

Caterpillar Power Finance
 
—

 
—

 
—

 
—

 
4

 
4

 
—

Caterpillar Purchased Receivables(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
22

 
12

 
18

 
52

 
2,982

 
3,034

 


EAME
 
1

 
—

 
1

 
2

 
546

 
548

 


Asia/Pacific
 
5

 
1

 
1

 
7

 
756

 
763

 


Mining
 
—

 
—

 
—

 
—

 
—

 
—

 


Latin America
 
—

 
—

 
—

 
—

 
338

 
338

 


Caterpillar Power Finance
 
—

 
—

 
—

 
—

 
8

 
8

 


Total
 
$
213

 
$
80

 
$
807

 
$
1,100

 
$
27,334

 
$
28,434

 
$
24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1) Caterpillar Purchased Receivables are non-interest bearing trade receivables purchased at a discount.
Impaired finance receivables
Our recorded investment in impaired finance receivables and the related unpaid principal balances and allowance for the Customer portfolio segment were as follows:
(Millions of dollars)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2019
 
As of December 31, 2018
Impaired Finance Receivables With
No Allowance Recorded
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
North America
 
$
6

 
$
6

 
$
—

 
$
10

 
$
10

 
$
—

EAME
 
—

 
—

 
—

 
1

 
1

 
—

Asia/Pacific
 
—

 
—

 
—

 
1

 
1

 
—

Mining
 
22

 
22

 
—

 
33

 
33

 
—

Latin America
 
8

 
8

 
—

 
29

 
29

 
—

Caterpillar Power Finance
 
58

 
58

 
—

 
69

 
83

 
—

Total
 
$
94

 
$
94

 
$
—

 
$
143

 
$
157

 
$
—

Impaired Finance Receivables With
An Allowance Recorded
 
 

 
 

 
 

 
 

 
 

 
 

North America
 
$
30

 
$
30

 
$
11

 
$
40

 
$
41

 
$
14

EAME
 
61

 
61

 
29

 
92

 
92

 
57

Asia/Pacific
 
8

 
8

 
2

 
4

 
4

 
2

Mining
 
37

 
36

 
9

 
56

 
55

 
26

Latin America
 
58

 
58

 
20

 
75

 
75

 
25

Caterpillar Power Finance
 
306

 
319

 
107

 
449

 
455

 
164

Total
 
$
500

 
$
512

 
$
178

 
$
716

 
$
722

 
$
288

Total Impaired Finance Receivables
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
$
36

 
$
36

 
$
11

 
$
50

 
$
51

 
$
14

EAME
 
61

 
61

 
29

 
93

 
93

 
57

Asia/Pacific
 
8

 
8

 
2

 
5

 
5

 
2

Mining
 
59

 
58

 
9

 
89

 
88

 
26

Latin America
 
66

 
66

 
20

 
104

 
104

 
25

Caterpillar Power Finance
 
364

 
377

 
107

 
518

 
538

 
164

Total
 
$
594

 
$
606

 
$
178

 
$
859

 
$
879

 
$
288

 
 
 
 
 
 
 
 
 
 
 
 
 

(Millions of dollars)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
December 31, 2019
 
Year Ended
December 31, 2018
 
Year Ended
December 31, 2017
Impaired Finance Receivables With
No Allowance Recorded
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
North America
 
$
9

 
$
—

 
$
16

 
$
1

 
$
13

 
$
1

EAME
 
6

 
—

 
14

 
—

 
48

 
1

Asia/Pacific
 
—

 
—

 
28

 
3

 
24

 
2

Mining
 
27

 
1

 
57

 
2

 
126

 
7

Latin America
 
21

 
1

 
38

 
2

 
64

 
3

Caterpillar Power Finance
 
54

 
3

 
130

 
7

 
221

 
9

Total
 
$
117

 
$
5

 
$
283

 
$
15

 
$
496

 
$
23

Impaired Finance Receivables With
An Allowance Recorded
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
$
34

 
$
2

 
$
49

 
$
2

 
$
49

 
$
1

EAME
 
81

 
2

 
53

 
2

 
6

 
—

Asia/Pacific
 
9

 
1

 
5

 
—

 
31

 
2

Mining
 
48

 
2

 
46

 
3

 
—

 
—

Latin America
 
72

 
5

 
67

 
3

 
99

 
4

Caterpillar Power Finance
 
396

 
11

 
378

 
12

 
180

 
6

Total
 
$
640

 
$
23

 
$
598

 
$
22

 
$
365

 
$
13

Total Impaired Finance Receivables
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
$
43

 
$
2

 
$
65

 
$
3

 
$
62

 
$
2

EAME
 
87

 
2

 
67

 
2

 
54

 
1

Asia/Pacific
 
9

 
1

 
33

 
3

 
55

 
4

Mining
 
75

 
3

 
103

 
5

 
126

 
7

Latin America
 
93

 
6

 
105

 
5

 
163

 
7

Caterpillar Power Finance
 
450

 
14

 
508

 
19

 
401

 
15

Total
 
$
757

 
$
28

 
$
881

 
$
37

 
$
861

 
$
36

 
 
 
 
 
 
 
 
 
 
 
 
 
Recorded investment in Customer finance receivables on non-accrual status
The recorded investment in Customer finance receivables on non-accrual status as of December 31, was as follows: 
(Millions of dollars)
 
 
 
 
 
 
2019
 
2018
North America
 
$
44

 
$
77

EAME
 
165

 
154

Asia/Pacific
 
21

 
4

Mining
 
47

 
50

Latin America
 
89

 
106

Caterpillar Power Finance
 
361

 
416

Total
 
$
727

 
$
807

 
 
 
 
 
Finance receivables modified as TDRs
Our recorded investment in finance receivables in the Customer portfolio segment modified as TDRs during the years ended December 31, 2019, 2018 and 2017, was as follows:
(Dollars in millions)
 
Year Ended
December 31, 2019
 
 
Number of
Contracts
 
Pre-TDR
Recorded 
Investment
 
Post-TDR
Recorded 
Investment
North America
 
15

 
$
11

 
$
11

EAME
 
19

 
17

 
17

Asia/Pacific
 
—

 
—

 
—

Mining
 
2

 
8

 
8

Latin America
 
5

 
5

 
3

Caterpillar Power Finance
 
21

 
168

 
165

Total
 
62

 
$
209

 
$
204

 
 
 
 
 
 
 
 
 
Year Ended
December 31, 2018
 
 
Number of
Contracts
 
Pre-TDR
Recorded 
Investment
 
Post-TDR
Recorded 
Investment
North America
 
38

 
$
21

 
$
21

EAME
 
—

 
—

 
—

Asia/Pacific
 
—

 
—

 
—

Mining
 
1

 
29

 
29

Latin America
 
1

 
3

 
3

Caterpillar Power Finance
 
12

 
133

 
99

Total
 
52

 
$
186

 
$
152

 
 
 
 
 
 
 
 
 
Year Ended
December 31, 2017
 
 
Number of
Contracts
 
Pre-TDR
Recorded 
Investment
 
Post-TDR
Recorded 
Investment
North America
 
43

 
$
34

 
$
35

EAME
 
4

 
1

 
1

Asia/Pacific
 
10

 
39

 
31

Mining
 
2

 
57

 
56

Latin America
 
17

 
26

 
27

Caterpillar Power Finance(1)
 
68

 
422

 
407

Total
 
144

 
$
579

 
$
557

 
 
 
 
 
 
 

(1) In Caterpillar Power Finance, 48 contracts with a pre-TDR recorded investment of $265 million and a post-TDR recorded investment of $258 million were related to six customers.


TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) during the years ended December 31, 2019, 2018 and 2017, which had been modified within twelve months prior to the default date, were as follows:
(Dollars in millions)
 
Year Ended
December 31, 2019
 
Year Ended
December 31, 2018
 
Year Ended
December 31, 2017
 
 
Number of
Contracts
 
Post-TDR
Recorded
Investment
 
Number of
Contracts
 
Post-TDR
Recorded
Investment
 
Number of
Contracts
 
Post-TDR
Recorded
Investment
North America
 
11

 
$
5

 
10

 
$
10

 
4

 
$
3

EAME
 
—

 
—

 
—

 
—

 
1

 
—

Asia/Pacific
 
—

 
—

 
—

 
—

 
4

 
1

Latin America(1)
 
—

 
—

 
3

 
1

 
243

 
17

  Caterpillar Power Finance
 
1

 
10

 
3

 
33

 
—

 
—

Total
 
12

 
$
15

 
16

 
$
44

 
252

 
$
21

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) In Latin America, 238 contracts with a post-TDR recorded investment of $16 million were related to two customers for the year ended December 31, 2017.