Finance Receivables (Tables)

9 Months Ended

Sep. 30, 2023

Sep. 30, 2022

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 was as follows:

(Millions of dollars)	September 30, 2023		December 31, 2022
Retail loans, net(1)	$	15,907	$	14,973
Retail leases, net	6,432		6,965
Caterpillar purchased receivables, net	4,381		4,297
Wholesale loans, net(1)	817		545
Wholesale leases, net	5		7
Total finance receivables	27,542		26,787
Less: Allowance for credit losses	(340)		(346)
Total finance receivables, net	$	27,202	$	26,441

(1) Includes 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)	Three Months Ended September 30, 2023								Three Months Ended September 30, 2022
	Customer		Dealer		Caterpillar Purchased Receivables		Total		Customer		Dealer		Caterpillar Purchased Receivables		Total
Beginning Balance	$	265	$	50	$	5	$	320	$	290	$	82	$	4	$	376
Write-offs	(22)		—		—		(22)		(30)		—		—		(30)
Recoveries	13		—		—		13		17		—		—		17
Provision for credit losses(1)	31		1		—		32		(2)		(17)		—		(19)
Other	(3)		—		—		(3)		(5)		—		—		(5)
Ending Balance	$	284	$	51	$	5	$	340	$	270	$	65	$	4	$	339
	Nine Months Ended September 30, 2023								Nine Months Ended September 30, 2022
	Customer		Dealer		Caterpillar Purchased Receivables		Total		Customer		Dealer		Caterpillar Purchased Receivables		Total
Beginning Balance	$	277	$	65	$	4	$	346	$	251	$	82	$	4	$	337
Write-offs	(63)		—		—		(63)		(68)		—		—		(68)
Recoveries	36		—		—		36		47		—		—		47
Provision for credit losses(1)	35		(14)		1		22		46		(17)		—		29
Other	(1)		—		—		(1)		(6)		—		—		(6)
Ending Balance	$	284	$	51	$	5	$	340	$	270	$	65	$	4	$	339
Finance Receivables	$	20,279	$	2,882	$	4,381	$	27,542	$	19,927	$	2,222	$	3,962	$	26,111

(1) Excludes provision for credit losses on unfunded commitments and other miscellaneous receivables.

Write-offs by origination year

Gross write-offs by origination year for the Customer portfolio segment were as follows:

(Millions of Dollars)	Three Months Ended September 30, 2023
	2023		2022		2021		2020		2019		Prior		Revolving Finance Receivables		Total
North America	$	1	$	2	$	2	$	1	$	1	$	—	$	2	$	9
EAME	—		1		1		1		—		—		—		3
Asia/Pacific	—		2		3		1		—		—		—		6
Latin America	—		1		1		1		—		1		—		4
Total	$	1	$	6	$	7	$	4	$	1	$	1	$	2	$	22
	Nine Months Ended September 30, 2023
	2023		2022		2021		2020		2019		Prior		Revolving Finance Receivables		Total
North America	$	1	$	7	$	7	$	2	$	2	$	1	$	9	$	29
EAME	—		2		3		3		—		1		—		9
Asia/Pacific	—		3		6		4		1		—		—		14
Latin America	—		3		3		3		1		1		—		11
Total	$	1	$	15	$	19	$	12	$	4	$	3	$	9	$	63

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)	September 30, 2023
	2023		2022		2021		2020		2019		Prior		Revolving Finance Receivables		Total Finance Receivables
North America
Current	$	3,134	$	2,940	$	2,310	$	919	$	310	$	65	$	304	$	9,982
31-60 days past due	18		31		23		15		6		2		3		98
61-90 days past due	6		10		7		4		1		—		2		30
91+ days past due	5		19		18		10		5		3		2		62
EAME
Current	914		962		649		297		144		124		—		3,090
31-60 days past due	11		8		11		3		1		—		—		34
61-90 days past due	3		6		3		3		2		—		—		17
91+ days past due	4		16		18		9		3		1		—		51
Asia/Pacific
Current	832		760		440		150		47		12		42		2,283
31-60 days past due	3		13		10		4		1		—		—		31
61-90 days past due	1		3		3		4		1		—		—		12
91+ days past due	—		4		5		3		—		—		—		12
Mining
Current	836		740		436		148		111		50		49		2,370
31-60 days past due	—		—		—		—		—		—		—		—
61-90 days past due	—		—		1		—		—		2		—		3
91+ days past due	—		2		2		—		—		1		—		5
Latin America
Current	552		571		255		74		29		8		—		1,489
31-60 days past due	6		13		7		4		3		1		—		34
61-90 days past due	1		5		2		1		—		—		—		9
91+ days past due	1		15		9		8		8		20		—		61
Power
Current	46		71		70		86		45		122		162		602
31-60 days past due	—		—		—		—		—		1		—		1
61-90 days past due	—		—		—		—		—		—		—		—
91+ days past due	—		—		—		—		—		3		—		3
Totals by Aging Category
Current	6,314		6,044		4,160		1,674		686		381		557		19,816
31-60 days past due	38		65		51		26		11		4		3		198
61-90 days past due	11		24		16		12		4		2		2		71
91+ days past due	10		56		52		30		16		28		2		194
Total	$	6,373	$	6,189	$	4,279	$	1,742	$	717	$	415	$	564	$	20,279

(Millions of dollars)	December 31, 2022
	2022		2021		2020		2019		2018		Prior		Revolving Finance Receivables		Total Finance Receivables
North America
Current	$	3,915	$	3,276	$	1,525	$	653	$	206	$	34	$	240	$	9,849
31-60 days past due	25		26		18		12		4		1		4		90
61-90 days past due	9		15		7		3		1		—		3		38
91+ days past due	11		16		12		6		4		3		4		56
EAME
Current	1,270		953		477		280		155		68		—		3,203
31-60 days past due	10		12		7		1		1		—		—		31
61-90 days past due	8		4		3		1		—		—		—		16
91+ days past due	6		25		16		4		1		1		—		53
Asia/Pacific
Current	1,174		805		393		124		37		5		40		2,578
31-60 days past due	10		12		8		1		1		—		—		32
61-90 days past due	2		5		4		2		—		—		—		13
91+ days past due	2		6		6		4		—		—		—		18
Mining
Current	875		627		227		193		94		108		80		2,204
31-60 days past due	—		1		—		—		—		—		—		1
61-90 days past due	—		—		—		—		—		—		—		—
91+ days past due	—		—		—		—		—		1		—		1
Latin America
Current	770		400		150		69		26		20		—		1,435
31-60 days past due	7		8		4		2		—		1		—		22
61-90 days past due	2		5		1		1		—		—		—		9
91+ days past due	2		13		11		2		1		—		—		29
Power
Current	82		87		146		51		18		161		125		670
31-60 days past due	—		—		—		—		—		—		—		—
61-90 days past due	—		—		—		—		—		—		—		—
91+ days past due	—		—		—		—		—		5		—		5
Totals by Aging Category
Current	8,086		6,148		2,918		1,370		536		396		485		19,939
31-60 days past due	52		59		37		16		6		2		4		176
61-90 days past due	21		29		15		7		1		—		3		76
91+ days past due	21		60		45		16		6		10		4		162
Total	$	8,180	$	6,296	$	3,015	$	1,409	$	549	$	408	$	496	$	20,353

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)	September 30, 2023
	31-60 Days Past Due		61-90 Days Past Due		91+ Days Past Due		Total Past Due		Current		Total Finance Receivables
North America	$	15	$	5	$	2	$	22	$	2,629	$	2,651
EAME	1		1		1		3		758		761
Asia/Pacific	8		—		1		9		565		574
Latin America	4		4		23		31		353		384
Power	2		1		1		4		7		11
Total	$	30	$	11	$	28	$	69	$	4,312	$	4,381

(Millions of dollars)	December 31, 2022
	31-60 Days Past Due		61-90 Days Past Due		91+ Days Past Due		Total Past Due		Current		Total Finance Receivables
North America	$	11	$	7	$	4	$	22	$	2,458	$	2,480
EAME	1		—		2		3		812		815
Asia/Pacific	6		2		2		10		555		565
Latin America	9		2		14		25		406		431
Power	1		—		—		1		5		6
Total	$	28	$	11	$	22	$	61	$	4,236	$	4,297

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)	September 30, 2023						December 31, 2022
	Amortized Cost						Amortized 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	$	54	$	—	$	12	$	52	$	4	$	11
EAME	44		—		9		43		—		10
Asia/Pacific	8		—		5		11		—		7
Mining	4		—		1		—		1		—
Latin America	69		—		—		45		—		—
Power	9		—		—		5		11		—
Total	$	188	$	—	$	27	$	156	$	16	$	28

Finance receivables modified as TDRs

Finance receivables in the Customer portfolio segment modified as TDRs were as follows:

(Millions of dollars)	Three Months Ended September 30, 2022				Nine Months Ended September 30, 2022
	Pre-TDR Amortized Cost		Post-TDR Amortized Cost		Pre-TDR Amortized Cost		Post-TDR Amortized Cost
North America	$	3	$	3	$	4	$	4
EAME	—		—		1		1
Mining	15		15		15		15
Power	11		11		20		19
Total	$	29	$	29	$	40	$	39

During the three months ended September 30, 2022, there were no 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. During the nine months ended September 30, 2022, the Post-TDR amortized cost of TDRs in the Customer portfolio segment with a payment default which had been modified within twelve months prior to the default date was $5 million, all of which was in Mining.