XML 40 R25.htm IDEA: XBRL DOCUMENT v3.22.0.1
Finance Receivables (Tables)
 12 Months Ended
Dec. 31, 2021
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)20212020
Retail loans, net(1)
$14,817 $15,037 
Retail leases, net7,818 7,812 
Caterpillar purchased receivables, net4,462 3,646 
Wholesale loans, net(1)
406 533 
Wholesale leases, net11 26 
Total finance receivables27,514 27,054 
Less: Allowance for credit losses(337)(479)
Total finance receivables, net$27,177 $26,575 
(1) Includes failed sale leasebacks.
Maturities of finance receivables
Maturities of our finance receivables, as of December 31, 2021, reflect contractual repayments due from borrowers and were as follows:
(Millions of dollars)      
Amounts due inRetail
loans		Retail
leases		Caterpillar
purchased
receivables		Wholesale
loans		Wholesale
leases		Total
2022$6,047 $3,187 $4,488 $213 $3 $13,938 
20234,055 2,113 — 74 2 6,244 
20242,651 1,135 — 37 2 3,825 
20251,493 535 — 11 1 2,040 
2026665 227 — 3 — 895 
Thereafter198 35 — 2 — 235 
Total15,109 7,232 4,488 340 8 27,177 
Guaranteed residual value(1)
16 411 — 68 2 497 
Unguaranteed residual value(1)
3 750 — 2 2 757 
Unearned income(311)(575)(26)(4)(1)(917)
Total$14,817 $7,818 $4,462 $406 $11 $27,514 
(1) For Retail loans and Wholesale loans, represents residual value on failed sale leasebacks.
Allowance for credit losses and total finance receivables
An analysis of the allowance for credit losses was as follows:
(Millions of dollars)December 31, 2021December 31, 2020
Allowance for Credit Losses:CustomerDealerCaterpillar
Purchased
Receivables		TotalCustomerDealerCaterpillar
Purchased
Receivables		Total
Beginning Balance$431 $44 $4 $479 $375 $45 $4 $424 
Adjustment to adopt new
accounting guidance(1)
— — — — 12 — — 12 
Write-offs(256)— — (256)(263)— — (263)
Recoveries51 — — 51 41 — — 41 
Provision for credit losses30 38 — 68 262 (1)— 261 
Other(5)— — (5)4 — — 4 
Ending Balance$251 $82 $4 $337 $431 $44 $4 $479 
Finance Receivables$20,842 $2,210 $4,462 $27,514 $19,927 $3,481 $3,646 $27,054 
(1) On January 1, 2020, we adopted ASU 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments, which replaced the incurred loss impairment method with a method that reflects lifetime expected credit losses. We recognized the cumulative effect as a pre-tax adjustment to retained earnings as of January 1, 2020.
Amortized cost of finance receivables in the Customer portfolio segment by origination year
The tables below summarize the aging category of our amortized cost of finance receivables in the Customer portfolio segment by origination year.
(Millions of dollars)December 31, 2021
20212020201920182017PriorRevolving
Finance
Receivables		Total
Finance
Receivables
North America
Current$4,792 $2,596 $1,426 $630 $182 $32 $182 $9,840 
31-60 days past due27 32 20 12 4 1 5 101 
61-90 days past due7 8 5 3 1 1 5 30 
91+ days past due9 17 12 13 5 4 5 65 
EAME
Current1,499 836 577 352 140 26 — 3,430 
31-60 days past due5 4 3 1 1 — — 14 
61-90 days past due3 3 3 1 — — — 10 
91+ days past due3 11 2 2 — 2 — 20 
Asia/Pacific
Current1,456 943 420 119 40 3 36 3,017 
31-60 days past due10 14 10 2 — — — 36 
61-90 days past due3 7 4 1 — — — 15 
91+ days past due2 10 10 3 — — — 25 
Mining
Current944 356 332 194 36 161 36 2,059 
31-60 days past due6 — — — — — — 6 
61-90 days past due1 — — — 4 — — 5 
91+ days past due— 1 8 9 3 1 — 22 
Latin America
Current617 299 160 70 17 18 — 1,181 
31-60 days past due4 7 3 3 1 — — 18 
61-90 days past due3 3 1 1 — — — 8 
91+ days past due4 9 9 7 7 14 — 50 
Caterpillar Power Finance
Current120 152 119 70 180 104 101 846 
31-60 days past due— — — — — — — — 
61-90 days past due— — — — — — — — 
91+ days past due— — — — — 44 — 44 
Total$9,515 $5,308 $3,124 $1,493 $621 $411 $370 $20,842 
(Millions of dollars)December 31, 2020
20202019201820172016PriorRevolving
Finance
Receivables		Total
Finance
Receivables
North America
Current$3,780 $2,423 $1,344 $522 $212 $27 $89 $8,397 
31-60 days past due52 49 33 16 7 2 — 159 
61-90 days past due22 25 16 9 2 1 — 75 
91+ days past due14 35 31 20 9 4 2 115 
EAME
Current1,605 931 501 203 60 18 — 3,318 
31-60 days past due5 15 3 2 — — — 25 
61-90 days past due1 1 2 1 — — — 5 
91+ days past due7 7 12 4 39 43 — 112 
Asia/Pacific
Current1,583 933 412 115 32 6 32 3,113 
31-60 days past due13 23 13 6 — — — 55 
61-90 days past due7 11 7 1 — — — 26 
91+ days past due4 10 9 3 — — — 26 
Mining
Current515 574 289 181 92 151 137 1,939 
31-60 days past due5 — 5 1 — — — 11 
61-90 days past due— — — — — — — — 
91+ days past due— 11 8 2 — — 1 22 
Latin America
Current561 348 151 48 13 34 — 1,155 
31-60 days past due3 6 4 3 — — — 16 
61-90 days past due1 7 6 3 2 — — 19 
91+ days past due2 14 11 24 5 4 — 60 
Caterpillar Power Finance
Current217 199 111 273 99 117 119 1,135 
31-60 days past due— — 6 — — — — 6 
61-90 days past due— — — — — 9 — 9 
91+ days past due2 — 20 3 25 79 — 129 
Total$8,399 $5,622 $2,994 $1,440 $597 $495 $380 $19,927 
Aging related to finance receivables
The tables below summarize the aging category of our amortized cost of finance receivables in the Caterpillar Purchased Receivables portfolio segment.
(Millions of dollars)      
 December 31, 2021
 31-60
Days
Past Due		61-90
Days
Past Due		91+
Days
Past Due		Total
Past Due		CurrentTotal Finance
Receivables
North America$8 $6 $5 $19 $2,499 $2,518 
EAME1 — 1 2 844 846 
Asia/Pacific— — 1 1 620 621 
Mining— — — — — — 
Latin America1 1 — 2 472 474 
Caterpillar Power Finance— — — — 3 3 
Total$10 $7 $7 $24 $4,438 $4,462 

(Millions of dollars)      
 December 31, 2020
 31-60
Days
Past Due		61-90
Days
Past Due		91+
Days
Past Due		Total
Past Due		CurrentTotal Finance
Receivables
North America$14 $11 $6 $31 $1,889 $1,920 
EAME1 — 1 2 632 634 
Asia/Pacific2 1 1 4 581 585 
Mining— — — — — — 
Latin America— — — — 501 501 
Caterpillar Power Finance— — — — 6 6 
Total$17 $12 $8 $37 $3,609 $3,646 
Finance receivables on non-accrual status
In our Customer portfolio segment, finance receivables which were on non-accrual status and finance receivables over 90 days past due and still accruing income were as follows:
(Millions of dollars)December 31, 2021December 31, 2020
Amortized CostAmortized Cost
Non-accrual
With an
Allowance		Non-accrual
Without an
Allowance		91+ Still
Accruing		Non-accrual
With an
Allowance		Non-accrual
Without an
Allowance		91+ Still
Accruing
North America$47 $9 $12 $86 $1 $34 
EAME18 1 2 113 1 1 
Asia/Pacific19 — 7 13 — 13 
Mining8 1 14 21 1 — 
Latin America52 4 1 63 — 1 
Caterpillar Power Finance40 11 — 170 17 — 
Total$184 $26 $36 $466 $20 $49 
    
There was $12 million, $12 million and $28 million of interest income recognized during the years ended December 31, 2021, 2020 and 2019, respectively, for customer finance receivables on non-accrual status.
Finance receivables modified as TDRs Finance receivables in the Customer portfolio segment modified as TDRs for the years ended December 31, were as follows:
(Dollars in millions)202120202019
 Pre-TDR
Amortized
Cost		Post-TDR
Amortized
Cost		Pre-TDR
Amortized
Cost		Post-TDR
Amortized
Cost
Pre-TDR
Recorded
Investment
Post-TDR
Recorded
Investment
North America$6 $6 $13 $13 $11 $11 
EAME3 3 — — 17 17 
Asia/Pacific4 4 12 12 — — 
Mining11 5 35 35 8 8 
Latin America12 12 45 45 5 3 
Caterpillar Power Finance26 22 115 115 168 165 
Total$62 $52 $220 $220 $209 $204 
TDRs in the Customer portfolio segment with a payment default (defined as 91+ days past due) which had been modified within twelve months prior to the default date, were as follows for the years ended December 31, :
(Dollars in millions)202120202019
Post-TDR
Amortized
Cost		Post-TDR
Amortized
Cost		Post-TDR
Recorded
Investment
North America$1 $8 $5 
EAME— 10 — 
Asia/Pacific6 2 — 
Mining— 10 — 
Latin America15 1 — 
  Caterpillar Power Finance7 18 10 
Total$29 $49 $15