CATERPILLAR INC. Total.................................................... USD 94 USD 94 USD
Impaired Finance Receivables With An Allowance Recorded
North America............................................... USD 30 USD30 USD 11
EAME ..........................................................61 61 29
Asia/Pacific ........................................................8 8 2
Mining ..........................................................37 36 9
Latin America ......................................................58 58 20
Caterpillar Power Finance .............................................306 319 107
Total.................................................... USD 500 USD 512 USD 178
Total Impaired Finance Receivables
North America............................................... USD 36 USD36 USD 11
EAME ..........................................................61 61 29
Asia/Pacific ........................................................8 8 2
Mining ..........................................................59 58 9
Latin America ......................................................66 66 20
Caterpillar Power Finance .............................................364 377 107
Total.................................................... USD 594 USD 606 USD 178
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Three Months Ended September 30, Nine Months Ended September 30,
2019 2019
Interest Income Average
(Millions of dollars) Average Recorded Investment Recorded Interest Income
Recognized
Recognized Investment
Impaired Finance Receivables With No
Allowance Recorded
North America.................USD
10 - - - 1
EAME....................... - USD - - - -
10 15 - 26 22 57 USD 7 - 29 22 USD 1
Asia/Pacific................... 1 53
2
Mining......................
Latin America..................
Caterpillar Power Finance..........
Total......................... USD 130 USD 1 USD 121 USD 4
Impaired Finance Receivables With An
Allowance Recorded - USD 1
North America.................USD 1 2
EAME....................... 1 36 88 9 49 1
30 80 12 65 69 376 USD 73 422 USD
Asia/Pacific................... 1 2
Mining...................... 1 4
Latin America.................. 1 8
Caterpillar Power Finance..........
Total......................... USD 632 USD 5 USD 677 USD 18
Total Impaired Finance Receivables
- USD 1
North America.................USD
1 2
EAME....................... 46
1 1
Asia/Pacific................... 40 95 12 91 91 433 USD 95 USD
1 3
Mining...................... 9 78 95 475
1 5
Latin America..................
2 10
Caterpillar Power Finance..........
Total......................... USD 762 USD 6 USD 798 USD 22 There were USD78 million in impaired finance receivables with a related allowance of USD39 million as of December 31, 2019 for the Dealer portfolio segment, all of which was in Latin America.
Non-accrual finance receivables
Recognition of income is suspended and the finance receivable is placed on non-accrual status when management determines that collection of future income is not probable. Contracts on non-accrual status are generally more than 120 days past due or have been restructured in a troubled debt restructuring (TDR). Recognition is resumed and previously suspended income is recognized when the finance receivable becomes current and collection of remaining amounts is considered probable. Payments received while the finance receivable is on non-accrual status are applied to interest and principal in accordance with the contractual terms. Interest earned but uncollected prior to the receivable being placed on non-accrual status is written off through Provision for credit losses when, in the judgment of management, it is considered uncollectible.
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In Cat Financial's 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:
September 30, 2020
Amortized Cost
Non-accrual Non-accrual 91+ Still
(Millions of dollars) With an Without an Accruing
Allowance Allowance
North America................................ USD 82 USD 1 USD 28
EAME..................................... 137 - 1
Asia/Pacific.................................. 26 - 13
Mining.................................... 38 1 10
Latin America................................ 95 2 -
Caterpillar Power Finance......................... 207 17 -
Total....................................... USD 585 USD 21 USD 52 There was USD2 million and USD8 million of interest income recognized during the three and nine months ended September 30, 2020 for customer finance receivables on non-accrual status.
December 31, 2019
(Millions of dollars) Recorded Investment
Non-accrual Finance Receivables 91+ Still Accruing
North America........................................... USD 44 USD 15
EAME................................................. 165 4
Asia/Pacific............................................ 21 8
Mining................................................ 47 -
Latin America............................................ 89 2
Caterpillar Power Finance................................... 361 -
Total.................................................. USD 727 USD 29 As of September 30, 2020 and December 31, 2019, there were USD78 million in finance receivables on non-accrual status in Cat Financial's Dealer portfolio segment, all of which was in Latin America. There were no finance receivables in Cat Financial's Dealer portfolio segment more than 90 days past due and still accruing income as of September 30, 2020 and no interest income was recognized on dealer finance receivables on non-accrual status during the three and nine months ended September 30, 2020.
Troubled debt restructurings
A restructuring of a finance receivable constitutes a TDR when the lender grants a concession it would not otherwise consider to a borrower experiencing financial difficulties. Concessions granted may include extended contract maturities, inclusion of interest only periods, below market interest rates, payment deferrals and reduction of principal and/or accrued interest.
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There were no finance receivables modified as TDRs during the three and nine months ended September 30, 2020 and 2019 for the Dealer portfolio segment. Cat Financial's finance receivables in the Customer portfolio segment modified as TDRs were as follows:
Three Months Ended September 30, 2020 Three Months Ended September 30, 2019
Number Pre-TDR Post-TDR Number Pre-TDR Post-TDR
(Dollars in millions) of Amortized Amortized of Recorded Recorded
Contracts Cost Cost Contracts Investment Investment
North America......... 3 USD 1 USD 1 4 USD - USD -
Asia/Pacific............ 79 4 4 - - -
Mining............... 12 5 5 - - -
Latin America......... 3 16 16 - - - (MORE TO FOLLOW) Dow Jones Newswires
February 03, 2021 17:38 ET (22:38 GMT)
