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Caterpillar Financial Services

Cover Page

Cover Page - shares3 Months Ended
Mar. 31, 2021May 05, 2021
Cover [Abstract]
Document Type10-Q
Document Quarterly Reporttrue
Document Period End DateMar. 31,
2021
Document Transition Reportfalse
Entity File Number001-11241
Entity Registrant NameCATERPILLAR FINANCIAL SERVICES CORPORATION
Entity Incorporation, State or Country CodeDE
Entity Tax Identification Number37-1105865
Entity Address, Address Line One2120 West End Ave.
Entity Address, City or TownNashville
Entity Address, State or ProvinceTN
Entity Address, Postal Zip Code37203-0001
City Area Code615
Local Phone Number341-1000
Title of 12(b) SecurityMedium-Term Notes, Series H,3.300% Notes Due 2024
Trading SymbolCAT/24
Security Exchange NameNYSE
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryNon-accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding1
Entity Central Index Key0000764764
Current Fiscal Year End Date--12-31
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ1
Amendment Flagfalse

Consolidated Statements of Prof

Consolidated Statements of Profit - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Revenues:
Retail finance $ 303 $ 329
Operating lease244 257
Wholesale finance78 99
Other, net14 10
Total revenues639 695
Expenses:
Interest125 175
Depreciation on equipment leased to others192 201
General, operating and administrative121 108
Provision for credit losses(10)61
Other7 13
Total expenses435 558
Other income (expense)(8)(10)
Profit before income taxes196 127
Provision for income taxes53 33
Profit of consolidated companies143 94
Less: Profit attributable to noncontrolling interests3 4
Profit[1] $ 140 $ 90
[1]Profit attributable to Caterpillar Financial Services Corporation.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Profit of consolidated companies $ 143 $ 94
Other comprehensive income (loss), net of tax (Note 5):
Foreign currency translation(121)(307)
Derivative financial instruments11 6
Total Other comprehensive income (loss), net of tax(110)(301)
Comprehensive income (loss)33 (207)
Less: Comprehensive income (loss) attributable to the noncontrolling interests1 3
Comprehensive income (loss) attributable to Caterpillar Financial Services Corporation $ 32 $ (210)

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Assets:
Cash and cash equivalents $ 735 $ 411
Finance receivables, net of Allowance for credit losses26,500 26,575
Notes receivable from Caterpillar331 356
Equipment on operating leases, net3,237 3,366
Other assets1,280 1,283
Total assets32,083 31,991
Liabilities and shareholder's equity:
Payable to dealers and others148 144
Payable to Caterpillar - borrowings and other96 1,087
Accrued expenses259 400
Short-term borrowings3,625 2,005
Current maturities of long-term debt6,898 7,729
Long-term debt16,605 16,250
Other liabilities928 885
Total liabilities28,559 28,500
Commitments and contingent liabilities (Note 7)
Common stock - $1 par value Authorized: 2,000 shares; Issued and outstanding: one share (at paid-in amount)745 745
Additional paid-in capital2 2
Retained earnings3,282 3,142
Accumulated other comprehensive income (loss)(703)(595)
Noncontrolling interests198 197
Total shareholder's equity3,524 3,491
Total liabilities and shareholder's equity $ 32,083 $ 31,991

Consolidated Statements of Fi_2

Consolidated Statements of Financial Position (Parentheticals) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for credit losses $ 441 $ 479
Shareholder's Equity:
Common stock - par value $ 1 $ 1
Common stock - authorized2,000 2,000
Common stock - issued1 1
Common stock - outstanding1 1

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholder's Equity - USD ($) $ in MillionsTotalCommon stockAdditional paid-in capitalRetained earningsAccumulated other comprehensive income (loss)Noncontrolling interestsAdjustment to adopt new accounting guidanceAdjustment to adopt new accounting guidanceRetained earnings
Balance at Dec. 31, 2019 $ 3,236 $ 745 $ 2 $ 3,162 $ (845) $ 172
Balance (Accounting Standards Update 2016-13) at Dec. 31, 2019 $ (13) $ (13)
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies94 90 4
Foreign currency translation, net of tax(307)(306)(1)
Derivative financial instruments, net of tax6 6
Balance at Mar. 31, 20203,016 745 2 3,239 (1,145)175
Balance at Dec. 31, 20203,491 745 2 3,142 (595)197
Increase (Decrease) in Shareholder's Equity [Roll Forward]
Profit of consolidated companies143 140 3
Foreign currency translation, net of tax(121)(119)(2)
Derivative financial instruments, net of tax11 11
Balance at Mar. 31, 2021 $ 3,524 $ 745 $ 2 $ 3,282 $ (703) $ 198

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Cash flows from operating activities:
Profit of consolidated companies $ 143 $ 94
Adjustments for non-cash items:
Depreciation and amortization195 205
Accretion of Caterpillar purchased receivable revenue(74)(91)
Provision for credit losses(10)61
Other, net23 150
Changes in assets and liabilities:
Other assets(12)(42)
Payable to dealers and others13 35
Accrued expenses28 (17)
Other payables with Caterpillar6 9
Other liabilities23 (3)
Net cash provided by operating activities335 401
Cash flows from investing activities:
Expenditures for equipment on operating leases(224)(246)
Capital expenditures - excluding equipment on operating leases(4)(1)
Proceeds from disposals of equipment244 155
Additions to finance receivables(2,867)(3,213)
Collections of finance receivables3,062 3,422
Net changes in Caterpillar purchased receivables(411)376
Proceeds from sales of receivables5 31
Net change in variable lending to Caterpillar19 0
Additions to other notes receivable with Caterpillar(23)0
Collections on other notes receivable with Caterpillar28 6
Settlements of undesignated derivatives(51)35
Other, net1 0
Net cash provided by (used for) investing activities(221)565
Cash flows from financing activities:
Net change in variable lending from Caterpillar(1,000)(596)
Proceeds from debt issued (original maturities greater than three months)1,779 2,126
Payments on debt issued (original maturities greater than three months)(2,243)(2,460)
Short-term borrowings, net (original maturities three months or less)1,669 (35)
Net cash provided by (used for) financing activities205 (965)
Effect of exchange rate changes on cash, cash equivalents and restricted cash0 (22)
Increase (decrease) in cash, cash equivalents and restricted cash319 (21)
Cash, cash equivalents and restricted cash at beginning of year425 695
Cash, cash equivalents and restricted cash at end of period $ 744 $ 674

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Statement of Cash Flows [Abstract]
Restricted cash and cash equivalents $ 9 $ 14

Basis of Presentation

Basis of Presentation3 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of PresentationBasis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of (a) the consolidated profit for the three months ended March 31, 2021 and 2020, (b) the consolidated comprehensive income for the three months ended March 31, 2021 and 2020, (c) the consolidated financial position at March 31, 2021 and December 31, 2020, (d) the consolidated changes in shareholder’s equity for the three months ended March 31, 2021 and 2020 and (e) the consolidated cash flows for the three months ended March 31, 2021 and 2020. The preparation of financial statements, in conformity with generally accepted accounting principles and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), requires management to make estimates and assumptions that affect the reported amounts. Significant estimates include residual values for leased assets, allowance for credit losses and income taxes. Actual results may differ from these estimates. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2020 (2020 Form 10-K). The December 31, 2020 financial position data included herein was derived from the audited consolidated financial statements included in the 2020 Form 10-K but does not include all disclosures required by generally accepted accounting principles. We consolidate all variable interest entities (VIEs) where we are the primary beneficiary. For VIEs, we assess whether we are the primary beneficiary as prescribed by the accounting guidance on the consolidation of VIEs. The primary beneficiary of a VIE is the party that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the entity. Please refer to Note 7 for more information. We have customers and dealers that are VIEs of which we are not the primary beneficiary. Although we have provided financial support to these entities and therefore have a variable interest, we do not have the power to direct the activities that most significantly impact their economic performance. Our maximum exposure to loss from our involvement with these VIEs is limited to the credit risk inherently present in the financial support that we have provided. Credit risk was evaluated and reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses.

New Accounting Pronouncements

New Accounting Pronouncements3 Months Ended
Mar. 31, 2021
Accounting Standards Update and Change in Accounting Principle [Abstract]
New Accounting PronouncementsNew Accounting Pronouncements A. Adoption of New Accounting Standards Reference rate reform (Accounting Standards Update (ASU) 2020-04) – In March 2020, the Financial Accounting Standards Board (FASB) issued accounting guidance to ease the potential burden in accounting for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and may be elected over time as reference rate reform activities occur between March 12, 2020 through December 31, 2022. In January 2021, we elected to adopt optional expedients impacting our derivative instruments. We continue to evaluate the impact of reference rate reform on our other contracts and assess the impacts of adopting this guidance on our financial statements. We adopted the following ASUs effective January 1, 2021, none of which had a material impact on our financial statements: ASU Description 2020-08 Codification improvements – Receivables – Nonrefundable fees and other costs 2021-01 Reference rate reform – Scope B. Accounting Standards Issued But Not Yet Adopted We consider the applicability and impact of all ASUs. We assessed the ASUs and determined that they either were not applicable or were not expected to have a material impact on our financial statements.

Finance Receivables

Finance Receivables3 Months Ended
Mar. 31, 2021
Receivables [Abstract]
Finance ReceivablesFinance Receivables A summary of finance receivables included in the Consolidated Statements of Financial Position was as follows: (Millions of dollars) March 31, December 31, Retail loans, net (1) $ 14,698 $ 15,037 Retail leases, net 7,734 7,812 Caterpillar purchased receivables, net 4,065 3,646 Wholesale loans, net (1) 423 533 Wholesale leases, net 21 26 Total finance receivables 26,941 27,054 Less: Allowance for credit losses (441) (479) Total finance receivables, net $ 26,500 $ 26,575 (1) Includes failed sale leasebacks. Finance leases Revenues from finance leases were $122 million and $125 million for the three months ended March 31, 2021 and 2020, respectively, and are included in retail and wholesale finance revenue in the Consolidated Statements of Profit. The residual values for finance leases are included in Finance receivables, net in the Consolidated Statements of Financial Position. Residual value adjustments are recognized through a reduction of finance revenue over the remaining lease term. Allowance for credit losses Portfolio segments A portfolio segment is the level at which we develop a systematic methodology for determining our allowance for credit losses. Our portfolio segments and related methods for estimating expected credit losses are as follows: Customer We provide loans and finance leases to end-user customers primarily for the purpose of financing new and used Caterpillar machinery, engines and equipment for commercial use, the majority of which operate in construction-related industries. We also provide financing for vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. The average original term of our customer finance receivable portfolio was approximately 48 months with an average remaining term of approximately 26 months as of March 31, 2021. We typically maintain a security interest in financed equipment and we require physical damage insurance coverage on the financed equipment, both of which provide us with certain rights and protections. If our collection efforts fail to bring a defaulted account current, we generally can repossess the financed equipment, after satisfying local legal requirements, and sell it within the Caterpillar dealer network or through third-party auctions. We estimate the allowance for credit losses related to our customer finance receivables based on loss forecast models utilizing probabilities of default and our estimated loss given default based on past loss experience adjusted for current conditions and reasonable and supportable forecasts capturing country and industry-specific economic factors. During the three months ended March 31, 2021, our forecasts for the markets in which we operate reflected an overall rebound in economic conditions, which had deteriorated due to the COVID-19 pandemic, resulting from a growing economy, improved unemployment rates and a decrease in delinquencies. We believe the economic forecasts employed represent reasonable and supportable forecasts, followed by a reversion to long-term trends. Dealer We provide financing to Caterpillar dealers in the form of wholesale financing plans. Our wholesale financing plans provide assistance to dealers by financing their mostly new Caterpillar equipment inventory and rental fleets on a secured and unsecured basis. In addition, we provide a variety of secured and unsecured loans to Caterpillar dealers. We estimate the allowance for credit losses for dealer finance receivables based on historical loss rates with consideration of current economic conditions and reasonable and supportable forecasts. In general, our Dealer portfolio segment has not historically experienced large increases or decreases in credit losses based on changes in economic conditions due to our close working relationships with the dealers and their financial strength. Therefore, we made no adjustments to historical loss rates during the three months ended March 31, 2021. Caterpillar Purchased Receivables We purchase receivables from Caterpillar, primarily related to the sale of equipment and parts to dealers. Caterpillar purchased receivables are non-interest-bearing short-term trade receivables that are purchased at a discount. We estimate the allowance for credit losses for Caterpillar purchased receivables based on historical loss rates with consideration of current economic conditions and reasonable and supportable forecasts. In general, our Caterpillar Purchased Receivables portfolio segment has not historically experienced large increases or decreases in credit losses based on changes in economic conditions due to the short-term maturities of the receivables and our close working relationships with the dealers and their financial strength. Therefore, we made no adjustments to historical loss rates during the three months ended March 31, 2021. Classes of finance receivables We further evaluate our portfolio segments by the class of finance receivables, which is defined as a level of information (below a portfolio segment) in which the finance receivables have the same initial measurement attribute and a similar method for assessing and monitoring credit risk. Typically, our finance receivables within a geographic area have similar credit risk profiles and methods for assessing and monitoring credit risk. Our classes, which align with management reporting for credit losses, are as follows: • North America - Finance receivables originated in the United States and Canada. • EAME - Finance receivables originated in Europe, Africa, the Middle East and the Commonwealth of Independent States. • Asia/Pacific - Finance receivables originated in Australia, New Zealand, China, Japan, Southeast Asia and India. • Mining - Finance receivables related to large mining customers worldwide. • Latin America - Finance receivables originated in Mexico and Central and South American countries. • Caterpillar Power Finance - Finance receivables originated worldwide related to marine vessels with Caterpillar engines and Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems. An analysis of the allowance for credit losses was as follows: (Millions of dollars) March 31, 2021 Allowance for Credit Losses: Customer Dealer Caterpillar Total Balance at beginning of year $ 431 $ 44 $ 4 $ 479 Receivables written off (34) — — (34) Recoveries on receivables previously written off 10 — — 10 Provision for credit losses (10) — — (10) Foreign currency translation adjustment (4) — — (4) Balance at end of period $ 393 $ 44 $ 4 $ 441 Individually evaluated $ 185 $ 39 $ — $ 224 Collectively evaluated 208 5 4 217 Ending Balance $ 393 $ 44 $ 4 $ 441 Finance Receivables: Individually evaluated $ 579 $ 78 $ — $ 657 Collectively evaluated 19,219 3,000 4,065 26,284 Ending Balance $ 19,798 $ 3,078 $ 4,065 $ 26,941 . (Millions of dollars) December 31, 2020 Allowance for Credit Losses: Customer Dealer Caterpillar Total Balance at beginning of year $ 375 $ 45 $ 4 $ 424 Adjustment to adopt new accounting guidance (1) 12 — — 12 Receivables written off (263) — — (263) Recoveries on receivables previously written off 41 — — 41 Provision for credit losses 262 (1) — 261 Foreign currency translation adjustment 4 — — 4 Balance at end of year $ 431 $ 44 $ 4 $ 479 Individually evaluated $ 187 $ 39 $ — $ 226 Collectively evaluated 244 5 4 253 Ending Balance $ 431 $ 44 $ 4 $ 479 Finance Receivables: Individually evaluated $ 594 $ 78 $ — $ 672 Collectively evaluated 19,333 3,403 3,646 26,382 Ending Balance $ 19,927 $ 3,481 $ 3,646 $ 27,054 (1) Adjustment to adopt new accounting guidance related to credit losses. Credit quality of finance receivables At origination, we evaluate credit risk based on a variety of credit quality factors including prior payment experience, customer financial information, credit ratings, loan-to-value ratios, probabilities of default, industry trends, macroeconomic factors and other internal metrics. On an ongoing basis, we monitor credit quality based on past-due status as there is a meaningful correlation between the past-due status of customers and the risk of loss. In determining past-due status, we consider the entire finance receivable past due when any installment is over 30 days past due. Customer 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) March 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Total North America Current $ 1,149 $ 3,551 $ 2,192 $ 1,156 $ 425 $ 166 $ 61 $ 8,700 31-60 days past due 5 34 30 18 7 8 1 103 61-90 days past due — 14 9 7 4 1 — 35 91+ days past due — 18 35 22 16 10 1 102 EAME Current 459 1,307 811 419 164 56 — 3,216 31-60 days past due 1 8 5 3 1 — — 18 61-90 days past due — 3 3 1 1 — — 8 91+ days past due — 9 5 12 5 81 — 112 Asia/Pacific Current 448 1,431 775 297 85 25 34 3,095 31-60 days past due — 16 16 10 1 — — 43 61-90 days past due — 7 9 7 4 — — 27 91+ days past due — 8 12 12 2 — — 34 Mining Current 230 473 567 315 109 206 86 1,986 31-60 days past due 5 — — — — — — 5 61-90 days past due — — — 1 — — — 1 91+ days past due — 1 2 4 2 — — 9 Latin America Current 124 490 264 106 35 23 — 1,042 31-60 days past due — 6 6 6 3 — — 21 61-90 days past due — 3 4 6 1 13 — 27 91+ days past due — 3 9 10 22 10 — 54 Caterpillar Power Finance Current 6 219 175 102 214 207 112 1,035 31-60 days past due — — — — — — — — 61-90 days past due — — — — 1 1 — 2 91+ days past due — 2 — 25 3 93 — 123 Total $ 2,427 $ 7,603 $ 4,929 $ 2,539 $ 1,105 $ 900 $ 295 $ 19,798 (Millions of dollars) December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Total North America Current $ 3,780 $ 2,423 $ 1,344 $ 522 $ 212 $ 27 $ 89 $ 8,397 31-60 days past due 52 49 33 16 7 2 — 159 61-90 days past due 22 25 16 9 2 1 — 75 91+ days past due 14 35 31 20 9 4 2 115 EAME Current 1,605 931 501 203 60 18 — 3,318 31-60 days past due 5 15 3 2 — — — 25 61-90 days past due 1 1 2 1 — — — 5 91+ days past due 7 7 12 4 39 43 — 112 Asia/Pacific Current 1,583 933 412 115 32 6 32 3,113 31-60 days past due 13 23 13 6 — — — 55 61-90 days past due 7 11 7 1 — — — 26 91+ days past due 4 10 9 3 — — — 26 Mining Current 515 574 289 181 92 151 137 1,939 31-60 days past due 5 — 5 1 — — — 11 61-90 days past due — — — — — — — — 91+ days past due — 11 8 2 — — 1 22 Latin America Current 561 348 151 48 13 34 — 1,155 31-60 days past due 3 6 4 3 — — — 16 61-90 days past due 1 7 6 3 2 — — 19 91+ days past due 2 14 11 24 5 4 — 60 Caterpillar Power Finance Current 217 199 111 273 99 117 119 1,135 31-60 days past due — — 6 — — — — 6 61-90 days past due — — — — — 9 — 9 91+ days past due 2 — 20 3 25 79 — 129 Total $ 8,399 $ 5,622 $ 2,994 $ 1,440 $ 597 $ 495 $ 380 $ 19,927 Finance receivables in the Customer portfolio segment are substantially secured by collateral, primarily in the form of Caterpillar and other machinery. For those contracts where the borrower is experiencing financial difficulty, repayment of the outstanding amounts is generally expected to be provided through the operation or repossession and sale of the machinery. Dealer As of March 31, 2021, our total amortized cost of finance receivables within the Dealer portfolio segment was current, with the exception of $78 million that was 91+ days past due in Latin America, all of which was originated in 2017. As of December 31, 2020, our total amortized cost of finance receivables within the Dealer portfolio segment was current, with the exception of $81 million that was 91+ days past due in Latin America. Of these past due receivables, $78 million were originated in 2017 and $3 million were originated prior to 2016. Caterpillar Purchased 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) March 31, 2021 31-60 61-90 91+ Total Current Total Finance North America $ 7 $ 3 $ 3 $ 13 $ 2,070 $ 2,083 EAME — — 1 1 777 778 Asia/Pacific 2 1 2 5 802 807 Mining — — — — — — Latin America — — — — 392 392 Caterpillar Power Finance — — — — 5 5 Total $ 9 $ 4 $ 6 $ 19 $ 4,046 $ 4,065 (Millions of dollars) December 31, 2020 31-60 61-90 91+ Total Current Total Finance North America $ 14 $ 11 $ 6 $ 31 $ 1,889 $ 1,920 EAME 1 — 1 2 632 634 Asia/Pacific 2 1 1 4 581 585 Mining — — — — — — Latin America — — — — 501 501 Caterpillar Power Finance — — — — 6 6 Total $ 17 $ 12 $ 8 $ 37 $ 3,609 $ 3,646 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. 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) March 31, 2021 December 31, 2020 Amortized Cost Amortized Cost Non-accrual Non-accrual 91+ Still Non-accrual Non-accrual 91+ Still North America $ 76 $ 2 $ 27 $ 86 $ 1 $ 34 EAME 109 — 3 113 1 1 Asia/Pacific 20 — 14 13 — 13 Mining 7 1 1 21 1 — Latin America 57 1 2 63 — 1 Caterpillar Power Finance 147 11 — 170 17 — Total $ 416 $ 15 $ 47 $ 466 $ 20 $ 49 There was $3 million and less than $1 million of interest income recognized during the three months ended March 31, 2021 and 2020, respectively, for customer finance receivables on non-accrual status. As of March 31, 2021 and December 31, 2020, finance receivables in our Dealer portfolio segment on non-accrual status were $78 million and $81 million, respectively, all of which was in Latin America. There were no finance receivables in our Dealer portfolio segment more than 90 days past due and still accruing income as of March 31, 2021 and December 31, 2020 and no interest income was recognized on dealer finance receivables on non-accrual status during the three months ended March 31, 2021 and 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. We individually evaluate TDR contracts and establish an allowance based on the present value of expected future cash flows discounted at the receivable’s effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. There were no finance receivables modified as TDRs during the three months ended March 31, 2021 and 2020 for the Dealer or Caterpillar Purchased Receivables portfolio segments. Finance receivables in the Customer portfolio segment modified as TDRs were as follows: (Millions of dollars) Three Months Ended Three Months Ended Pre-TDR Post-TDR Pre-TDR Post-TDR Mining $ 11 $ 5 $ — $ — Latin America — — 2 2 Total $ 11 $ 5 $ 2 $ 2 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: (Millions of dollars) Three Months Ended Three Months Ended Post-TDR Post-TDR North America $ 1 $ — EAME — 10 Asia/Pacific 4 — Latin America — 1 Caterpillar Power Finance 5 — Total $ 10 $ 11

Derivative Financial Instrument

Derivative Financial Instruments and Risk Management3 Months Ended
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments and Risk ManagementDerivative Financial Instruments and Risk Management Our earnings and cash flow are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. Our Risk Management Policy (policy) allows for the use of derivative financial instruments to prudently manage foreign currency exchange rate and interest rate exposures. Our policy specifies that derivatives are not to be used for speculative purposes. Derivatives that we use are primarily foreign currency forward, option and cross currency contracts and interest rate contracts. Our derivative activities are subject to the management, direction and control of our senior financial officers. We present at least annually to our Board of Directors and the Audit Committee of the Caterpillar Inc. Board of Directors on our risk management practices, including our use of financial derivative instruments. We recognize all derivatives at their fair value on the Consolidated Statements of Financial Position. On the date the derivative contract is entered into, we designate the derivative as (1) a hedge of the fair value of a recognized asset or liability (fair value hedge), (2) a hedge of a forecasted transaction or the variability of cash flow (cash flow hedge) or (3) an undesignated instrument. We record in current earnings changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged recognized asset or liability that is attributable to the hedged risk. We record in Accumulated other comprehensive income (loss) (AOCI) changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge, to the extent effective, on the Consolidated Statements of Financial Position until we reclassify them to earnings in the same period or periods during which the hedged transaction affects earnings. We report changes in the fair value of undesignated derivative instruments in current earnings. We classify cash flows from designated derivative financial instruments within the same category as the item being hedged on the Consolidated Statements of Cash Flows. We include cash flows from undesignated derivative financial instruments in the investing category on the Consolidated Statements of Cash Flows. We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities on the Consolidated Statements of Financial Position and linking cash flow hedges to specific forecasted transactions or variability of cash flow. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the designated derivatives that are used in hedging transactions are highly effective in offsetting changes in fair value or cash flow of hedged items. When a derivative is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable, we discontinue hedge accounting prospectively in accordance with derecognition criteria for hedge accounting. Foreign currency exchange rate risk We have balance sheet positions and expected future transactions denominated in foreign currencies, thereby creating exposure to movements in exchange rates. In managing foreign currency risk, our objective is to minimize earnings volatility resulting from conversion and the remeasurement of net foreign currency balance sheet positions and future transactions denominated in foreign currencies. Our policy allows the use of foreign currency forward, option and cross currency contracts to offset the risk of currency mismatch between our assets and liabilities and exchange rate risk associated with future transactions denominated in foreign currencies. Our foreign currency forward and option contracts are primarily undesignated. We designate fixed-to-fixed cross currency contracts as cash flow hedges to protect against movements in exchange rates on foreign currency fixed-rate assets and liabilities. Interest rate risk Interest rate movements create a degree of risk by affecting the amount of our interest payments and the value of our fixed-rate debt. Our practice is to use interest rate contracts to manage our exposure to interest rate changes. We have a match-funding policy that addresses interest rate risk by aligning the interest rate profile (fixed or floating rate and duration) of our debt portfolio with the interest rate profile of our finance receivable portfolio within predetermined ranges on an ongoing basis. In connection with that policy, we use interest rate derivative instruments to modify the debt structure to match assets within the finance receivable portfolio. This matched funding reduces the volatility of margins between interest-bearing assets and interest-bearing liabilities, regardless of which direction interest rates move. Our policy allows us to use fixed-to-floating, floating-to-fixed and floating-to-floating interest rate contracts to meet the match-funding objective. We designate fixed-to-floating interest rate contracts as fair value hedges to protect debt against changes in fair value due to changes in the benchmark interest rate. We designate most floating-to-fixed interest rate contracts as cash flow hedges to protect against the variability of cash flows due to changes in the benchmark interest rate. As of March 31, 2021, the cumulative amount of fair value hedging adjustments related to our fixed-to-floating interest rate contracts included in the carrying amount of Long-term debt w a s $31 million. Fair value gains and losses on these interest rate contracts and the related hedged items generally offset within interest expense. We have, at certain times, liquidated fixed-to-floating interest rate contracts that resulted in deferred gains at the time of liquidation. The deferred gains associated with these interest rate contracts are included in Long-term debt in the Consolidated Statements of Financial Position and are being amortized to Interest expense over the remaining term of the previously designated hedged item. The location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position were as follows: (Millions of dollars) Asset (Liability) Fair Value Consolidated Statements of March 31, December 31, Designated derivatives Interest rate contracts Other assets $ 41 $ 59 Interest rate contracts Accrued expenses (10) (5) Cross currency contracts Other assets 34 2 Cross currency contracts Accrued expenses (64) (148) $ 1 $ (92) Undesignated derivatives Foreign exchange contracts Other assets $ 60 $ 17 Foreign exchange contracts Accrued expenses (15) (107) Cross currency contracts Other assets 7 7 Cross currency contracts Accrued expenses — — $ 52 $ (83) The total notional amount of our derivative instruments was $10.64 billion and $11.26 billion as of March 31, 2021 and December 31, 2020, respectively. The notional amounts of derivative financial instruments do not represent amounts exchanged by the parties. We calculate the amounts exchanged by the parties by referencing the notional amounts and by other terms of the derivatives, such as foreign currency exchange rates and interest rates. The effect of derivatives designated as hedging instruments on the Consolidated Statements of Profit was as follows: Cash Flow Hedges (Millions of dollars) Three Months Ended March 31, 2021 Recognized in Earnings Amount of Classification Amount of Amount of the line Interest rate contracts $ — Interest expense $ (10) $ 125 Cross currency contracts 119 Other income (expense) 112 (8) Interest expense 2 125 $ 119 $ 104 Three Months Ended March 31, 2020 Recognized in Earnings Amount of Classification Amount of Amount of the line Interest rate contracts $ (15) Interest expense $ (5) $ 175 Cross currency contracts 101 Other income (expense) 71 (10) Interest expense 11 175 $ 86 $ 77 As of March 31, 2021, $2 million of deferred net losses, net of tax, included in equity (AOCI in the Consolidated Statements of Financial Position), related to our cash flow hedges, are expected to be reclassified to earnings over the next twelve months. The actual amount recorded in earnings will vary based on interest rates and exchange rates at the time the hedged transactions impact earnings. The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended March 31, Classification 2021 2020 Foreign exchange contracts Other income (expense) $ 85 $ 99 Cross currency contracts Other income (expense) 1 9 $ 86 $ 108 We enter into International Swaps and Derivatives Association master netting agreements that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits us or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. Collateral is generally not required of the counterparties or us under the master netting agreements. As of March 31, 2021 and December 31, 2020, no cash collateral was received or pledged under the master netting agreements. The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event was as follows: (Millions of dollars) March 31, December 31, Derivative Assets Gross Amount of Recognized Assets $ 142 $ 85 Gross Amounts Offset — — Net Amount of Assets (1) 142 85 Gross Amounts Not Offset (55) (57) Net Amount $ 87 $ 28 Derivative Liabilities Gross Amount of Recognized Liabilities $ (89) $ (260) Gross Amounts Offset — — Net Amount of Liabilities (1) (89) (260) Gross Amounts Not Offset 55 57 Net Amount $ (34) $ (203) (1) As presented in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)3 Months Ended
Mar. 31, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss)Accumulated Other Comprehensive Income (Loss) We present Comprehensive income (loss) and its components in the Consolidated Statements of Comprehensive Income. Changes in Accumulated other comprehensive income (loss), net of tax, included in the Consolidated Statements of Changes in Shareholder’s Equity, consisted of the following: (Millions of dollars) Three Months Ended 2021 2020 Foreign currency translation Balance at beginning of period $ (551) $ (777) Gains (losses) on foreign currency translation (94) (294) Less: Tax provision/(benefit) 25 12 Net gains (losses) on foreign currency translation (119) (306) Other comprehensive income (loss), net of tax (119) (306) Balance at end of period $ (670) $ (1,083) Derivative financial instruments Balance at beginning of period $ (44) $ (68) Gains (losses) deferred 119 86 Less: Tax provision/(benefit) 25 19 Net gains (losses) deferred 94 67 (Gains) losses reclassified to earnings (104) (77) Less: Tax (provision)/benefit (21) (16) Net (gains) losses reclassified to earnings (83) (61) Other comprehensive income (loss), net of tax 11 6 Balance at end of period $ (33) $ (62) Total Accumulated other comprehensive income (loss) at end of period $ (703) $ (1,145) The effect of the reclassifications out of Accumulated other comprehensive income (loss) on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended Derivative financial instruments Classification of 2021 2020 Cross currency contracts Other income (expense) $ 112 $ 71 Cross currency contracts Interest expense 2 11 Interest rate contracts Interest expense (10) (5) Reclassifications before tax 104 77 Tax (provision) benefit (21) (16) Total reclassifications from Accumulated other comprehensive income (loss) $ 83 $ 61

Segment Information

Segment Information3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]
Segment InformationSegment Information A. Basis for Segment Information We report information internally for operating segments based on management responsibility. Our operating segments provide financing alternatives to customers and dealers around the world for Caterpillar products and vehicles, power generation facilities and marine vessels that, in most cases, incorporate Caterpillar products. Financing plans include operating and finance leases, retail loans, working capital loans to Caterpillar dealers and wholesale financing plans within each of the operating segments. Certain operating segments also purchase short-term trade receivables from Caterpillar. B. Description of Segments We have six operating segments that offer financing services. Following is a brief description of our segments: • North America - Includes our operations in the United States and Canada. • EAME - Includes our operations in Europe, Africa, the Middle East and the Commonwealth of Independent States. • Asia/Pacific - Includes our operations in Australia, New Zealand, China, Japan, Southeast Asia and India. • Latin America - Includes our operations in Mexico and Central and South American countries. • Caterpillar Power Finance - Provides financing worldwide for marine vessels with Caterpillar engines and for Caterpillar electrical power generation, gas compression and co-generation systems and non-Caterpillar equipment that is powered by these systems. • Mining - Provides financing for large mining customers worldwide. C. Segment Measurement and Reconciliations Cash, debt and other expenses are allocated to our segments based on their respective portfolios. The related Interest expense is calculated based on the amount of allocated debt and the rates associated with that debt. The performance of each segment is assessed based on a consistent leverage ratio. The Provision for credit losses is based on each segment’s respective finance receivable portfolio. Capital expenditures include expenditures for equipment on operating leases and other miscellaneous capital expenditures. Reconciling items are created based on accounting differences between segment reporting and consolidated external reporting. For the reconciliation of Profit before income taxes, we have grouped the reconciling items as follows: • Unallocated - This item is related to corporate requirements and strategies that are considered to be for the benefit of the entire organization. Also included are the consolidated results of the special purpose corporation (see Note 7 for additional information) and other miscellaneous items. • Timing - Timing differences in the recognition of costs between segment reporting and consolidated external reporting. • Methodology - Methodology differences between segment reporting and consolidated external reporting are as follows: ◦ Segment assets include off-balance sheet managed assets for which we maintain servicing responsibilities. ◦ The impact of differences between the actual leverage and the segment leverage ratios. ◦ Interest expense includes realized forward points on foreign currency forward contracts. ◦ The net gain or loss from interest rate derivatives is excluded from segment reporting. Supplemental segment data and reconciliations to consolidated external reporting for the three months ended March 31 was as follows: (Millions of dollars) 2021 External Profit Interest Depreciation Provision Assets at Capital North America $ 347 $ 99 $ 69 $ 137 $ 1 $ 14,928 $ 178 EAME 67 30 5 15 (4) 4,947 10 Asia/Pacific 92 51 23 2 — 4,902 3 Latin America 47 16 14 2 3 2,504 7 Caterpillar Power Finance 13 11 4 1 (7) 1,184 — Mining 71 18 10 35 (3) 2,582 26 Total Segments 637 225 125 192 (10) 31,047 224 Unallocated 5 (72) 50 — — 1,373 4 Timing (3) 1 — — — 12 — Methodology — 42 (50) — — (107) — Inter-segment Eliminations (1) — — — — — (242) — Total $ 639 $ 196 $ 125 $ 192 $ (10) $ 32,083 $ 228 2020 External Profit Interest Depreciation Provision Assets at Capital North America $ 382 $ 75 $ 94 $ 144 $ 22 $ 14,749 $ 220 EAME 70 16 13 16 7 4,981 4 Asia/Pacific 86 36 27 2 7 4,585 3 Latin America 53 6 23 3 7 2,621 3 Caterpillar Power Finance 20 1 8 — 5 1,308 — Mining 81 8 17 36 13 2,575 16 Total Segments 692 142 182 201 61 30,819 246 Unallocated 9 (70) 56 — — 1,576 1 Timing (6) (1) — — — 12 — Methodology — 56 (63) — — (152) — Inter-segment Eliminations (1) — — — — — (264) — Total $ 695 $ 127 $ 175 $ 201 $ 61 $ 31,991 $ 247 (1) Elimination is primarily related to intercompany loans.

Commitments and Contingent Liab

Commitments and Contingent Liabilities3 Months Ended
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingent LiabilitiesCommitments and Contingent Liabilities Guarantees We provide loan guarantees to third-party lenders for financing associated with machinery purchased by customers. These guarantees have varying terms and are secured by the machinery being financed. We also provide residual value guarantees to third-party lenders associated with machinery leased to customers. These guarantees have varying terms. In addition, we participate in standby letters of credit issued to third parties on behalf of our customers. These standby letters of credit have varying terms and beneficiaries and are secured by customer assets. No significant loss has been experienced or is anticipated under any of these guarantees. At March 31, 2021 and December 31, 2020, the related recorded liability was less than $1 million. The maximum potential amount of future payments (undiscounted and without reduction for any amounts that may possibly be recovered under recourse or collateralized provisions) we could be required to make under the guarantees was $40 million at March 31, 2021 and December 31, 2020. We provide guarantees to repurchase certain loans of Caterpillar dealers from a special-purpose corporation (SPC) that qualifies as a VIE (see Note 1 for additional information regarding the accounting guidance on the consolidation of VIEs). The purpose of the SPC is to provide short-term working capital loans to Caterpillar dealers. This SPC issues commercial paper and uses the proceeds to fund its loan program. We have a loan purchase agreement with the SPC that obligates us to purchase certain loans that are not paid at maturity. We receive a fee for providing this guarantee, which provides a source of liquidity for the SPC. We are the primary beneficiary of the SPC as our guarantees result in us having both the power to direct the activities that most significantly impact the SPC’s economic performance and the obligation to absorb losses and therefore we have consolidated the financial statements of the SPC. As of March 31, 2021 and December 31, 2020, the SPC’s assets of $841 million and $1.03 billion, respectively, were primarily comprised of loans to dealers, which are included in Finance receivables, net in the Consolidated Statements of Financial Position, and the SPC’s liabilities of $840 million and $1.03 billion, respectively, were primarily comprised of commercial paper, which is included in Short-term borrowings in the Consolidated Statements of Financial Position. The assets of the SPC are not available to pay our creditors. We may be obligated to perform under the guarantee if the SPC experiences losses. No loss has been experienced or is anticipated under this loan purchase agreement. Litigation and claims We are involved in unresolved legal actions that arise in the normal course of business. Although it is not possible to predict with certainty the outcome of our unresolved legal actions, we believe that these unresolved legal actions will neither individually nor in the aggregate have a material adverse effect on our consolidated results of operations, financial position or liquidity.

Fair Value Measurements

Fair Value Measurements3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value MeasurementsFair Value MeasurementsFair Value Measurements The guidance on fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. This guidance also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. In accordance with this guidance, fair value measurements are classified under the following hierarchy: • Level 1 – Quoted prices for identical instruments in active markets. • Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets. • Level 3 – Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable. When available, we use quoted market prices to determine fair value and we classify such measurements within Level 1. In some cases where market prices are not available, we make use of observable market-based inputs to calculate fair value, in which case the measurements are classified within Level 2. If quoted or observable market prices are not available, fair value is based upon valuations in which one or more significant inputs are unobservable, including internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves and currency rates. These measurements are classified within Level 3. We classify fair value measurements according to the lowest level input or value-driver that is significant to the valuation. We may therefore classify a measurement within Level 3 even though there may be significant inputs that are readily observable. Fair value measurement includes the consideration of nonperformance risk. Nonperformance risk refers to the risk that an obligation (either by a counterparty or us) will not be fulfilled. For financial assets traded in an active market (Level 1), the nonperformance risk is included in the market price. For certain other financial assets and liabilities (Level 2 and 3), our fair value calculations have been adjusted accordingly. Derivative financial instruments The fair value of interest rate contracts is primarily based on a standard industry accepted valuation model that utilizes the appropriate market-based forward swap curves and zero-coupon interest rates to determine discounted cash flows. The fair value of foreign currency forward and cross currency contracts is based on standard industry accepted valuation models that discount cash flows resulting from the differential between the contract price and the market-based forward rate. Derivative financial instruments are measured on a recurring basis at fair value and are classified as Level 2 measurements. We had derivative financial instruments included in our Consolidated Statements of Financial Position in a net asset position of $53 million and a net liability position of $175 million as of March 31, 2021 and December 31, 2020, respectively. Loans measured at fair value Certain loans are subject to measurement at fair value on a nonrecurring basis and are classified as Level 3 measurements. A loan is measured at fair value when management determines that collection of contractual amounts due is not probable and the loan is individually evaluated. In these cases, an allowance for credit losses may be established based either on the present value of expected future cash flows discounted at the receivables’ effective interest rate, the fair value of the collateral for collateral-dependent receivables or the observable market price of the receivable. In determining collateral value, we estimate the current fair market value of the collateral less selling costs. We had loans carried at fair value of $232 million and $243 million as of March 31, 2021 and December 31, 2020, respectively. In addition to the methods and assumptions we use to record the fair value of financial instruments as discussed in the Fair Value Measurements section above, we use the following methods and assumptions to estimate the fair value of our financial instruments: Cash and cash equivalents – carrying amount approximates fair value. Restricted cash and cash equivalents – carrying amount approximates fair value. Finance receivables, net – we estimate fair value by discounting the future cash flows using current rates representative of receivables with similar remaining maturities. Short-term borrowings – carrying amount approximates fair value. Long-term debt – we estimate fair value for fixed and floating-rate debt based on quoted market prices. Fair values of our financial instruments were as follows: (Millions of dollars) March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Fair Value Reference Cash and cash equivalents $ 735 $ 735 $ 411 $ 411 1 Restricted cash and cash equivalents (1) $ 9 $ 9 $ 14 $ 14 1 Finance receivables, net (excluding finance leases (2) ) $ 18,580 $ 18,844 $ 18,599 $ 18,910 3 Note 3 Interest rate contracts: In a receivable position $ 41 $ 41 $ 59 $ 59 2 Note 4 In a payable position $ (10) $ (10) $ (5) $ (5) 2 Note 4 Cross currency contracts: In a receivable position $ 41 $ 41 $ 9 $ 9 2 Note 4 In a payable position $ (64) $ (64) $ (148) $ (148) 2 Note 4 Foreign exchange contracts: In a receivable position $ 60 $ 60 $ 17 $ 17 2 Note 4 In a payable position $ (15) $ (15) $ (107) $ (107) 2 Note 4 Short-term borrowings $ (3,625) $ (3,625) $ (2,005) $ (2,005) 1 Long-term debt $ (23,503) $ (23,960) $ (23,979) $ (24,614) 2 (1) Included in Other assets in the Consolidated Statements of Financial Position. (2) Represents finance leases and failed sale leasebacks of $7.92 billion and $7.98 billion as of March 31, 2021 and December 31, 2020, respectively.

Income Taxes

Income Taxes3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income TaxesIncome Taxes

Finance Receivables (Tables)

Finance Receivables (Tables)3 Months Ended
Mar. 31, 2021
Receivables [Abstract]
Summary of finance receivables included in the Consolidated Statements of Financial PositionA summary of finance receivables included in the Consolidated Statements of Financial Position was as follows: (Millions of dollars) March 31, December 31, Retail loans, net (1) $ 14,698 $ 15,037 Retail leases, net 7,734 7,812 Caterpillar purchased receivables, net 4,065 3,646 Wholesale loans, net (1) 423 533 Wholesale leases, net 21 26 Total finance receivables 26,941 27,054 Less: Allowance for credit losses (441) (479) Total finance receivables, net $ 26,500 $ 26,575 (1) Includes failed sale leasebacks.
Allowance for credit losses and total finance receivablesAn analysis of the allowance for credit losses was as follows: (Millions of dollars) March 31, 2021 Allowance for Credit Losses: Customer Dealer Caterpillar Total Balance at beginning of year $ 431 $ 44 $ 4 $ 479 Receivables written off (34) — — (34) Recoveries on receivables previously written off 10 — — 10 Provision for credit losses (10) — — (10) Foreign currency translation adjustment (4) — — (4) Balance at end of period $ 393 $ 44 $ 4 $ 441 Individually evaluated $ 185 $ 39 $ — $ 224 Collectively evaluated 208 5 4 217 Ending Balance $ 393 $ 44 $ 4 $ 441 Finance Receivables: Individually evaluated $ 579 $ 78 $ — $ 657 Collectively evaluated 19,219 3,000 4,065 26,284 Ending Balance $ 19,798 $ 3,078 $ 4,065 $ 26,941 . (Millions of dollars) December 31, 2020 Allowance for Credit Losses: Customer Dealer Caterpillar Total Balance at beginning of year $ 375 $ 45 $ 4 $ 424 Adjustment to adopt new accounting guidance (1) 12 — — 12 Receivables written off (263) — — (263) Recoveries on receivables previously written off 41 — — 41 Provision for credit losses 262 (1) — 261 Foreign currency translation adjustment 4 — — 4 Balance at end of year $ 431 $ 44 $ 4 $ 479 Individually evaluated $ 187 $ 39 $ — $ 226 Collectively evaluated 244 5 4 253 Ending Balance $ 431 $ 44 $ 4 $ 479 Finance Receivables: Individually evaluated $ 594 $ 78 $ — $ 672 Collectively evaluated 19,333 3,403 3,646 26,382 Ending Balance $ 19,927 $ 3,481 $ 3,646 $ 27,054 (1) Adjustment to adopt new accounting guidance related to credit losses.
Amortized cost of finance receivables in the Customer portfolio segment by origination yearThe tables below summarize the aging category of our amortized cost of finance receivables in the Customer portfolio segment by origination year. (Millions of dollars) March 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Total North America Current $ 1,149 $ 3,551 $ 2,192 $ 1,156 $ 425 $ 166 $ 61 $ 8,700 31-60 days past due 5 34 30 18 7 8 1 103 61-90 days past due — 14 9 7 4 1 — 35 91+ days past due — 18 35 22 16 10 1 102 EAME Current 459 1,307 811 419 164 56 — 3,216 31-60 days past due 1 8 5 3 1 — — 18 61-90 days past due — 3 3 1 1 — — 8 91+ days past due — 9 5 12 5 81 — 112 Asia/Pacific Current 448 1,431 775 297 85 25 34 3,095 31-60 days past due — 16 16 10 1 — — 43 61-90 days past due — 7 9 7 4 — — 27 91+ days past due — 8 12 12 2 — — 34 Mining Current 230 473 567 315 109 206 86 1,986 31-60 days past due 5 — — — — — — 5 61-90 days past due — — — 1 — — — 1 91+ days past due — 1 2 4 2 — — 9 Latin America Current 124 490 264 106 35 23 — 1,042 31-60 days past due — 6 6 6 3 — — 21 61-90 days past due — 3 4 6 1 13 — 27 91+ days past due — 3 9 10 22 10 — 54 Caterpillar Power Finance Current 6 219 175 102 214 207 112 1,035 31-60 days past due — — — — — — — — 61-90 days past due — — — — 1 1 — 2 91+ days past due — 2 — 25 3 93 — 123 Total $ 2,427 $ 7,603 $ 4,929 $ 2,539 $ 1,105 $ 900 $ 295 $ 19,798 (Millions of dollars) December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Total North America Current $ 3,780 $ 2,423 $ 1,344 $ 522 $ 212 $ 27 $ 89 $ 8,397 31-60 days past due 52 49 33 16 7 2 — 159 61-90 days past due 22 25 16 9 2 1 — 75 91+ days past due 14 35 31 20 9 4 2 115 EAME Current 1,605 931 501 203 60 18 — 3,318 31-60 days past due 5 15 3 2 — — — 25 61-90 days past due 1 1 2 1 — — — 5 91+ days past due 7 7 12 4 39 43 — 112 Asia/Pacific Current 1,583 933 412 115 32 6 32 3,113 31-60 days past due 13 23 13 6 — — — 55 61-90 days past due 7 11 7 1 — — — 26 91+ days past due 4 10 9 3 — — — 26 Mining Current 515 574 289 181 92 151 137 1,939 31-60 days past due 5 — 5 1 — — — 11 61-90 days past due — — — — — — — — 91+ days past due — 11 8 2 — — 1 22 Latin America Current 561 348 151 48 13 34 — 1,155 31-60 days past due 3 6 4 3 — — — 16 61-90 days past due 1 7 6 3 2 — — 19 91+ days past due 2 14 11 24 5 4 — 60 Caterpillar Power Finance Current 217 199 111 273 99 117 119 1,135 31-60 days past due — — 6 — — — — 6 61-90 days past due — — — — — 9 — 9 91+ days past due 2 — 20 3 25 79 — 129 Total $ 8,399 $ 5,622 $ 2,994 $ 1,440 $ 597 $ 495 $ 380 $ 19,927
Aging related to finance receivablesThe tables below summarize the aging category of our amortized cost of finance receivables in the Caterpillar Purchased Receivables portfolio segment. (Millions of dollars) March 31, 2021 31-60 61-90 91+ Total Current Total Finance North America $ 7 $ 3 $ 3 $ 13 $ 2,070 $ 2,083 EAME — — 1 1 777 778 Asia/Pacific 2 1 2 5 802 807 Mining — — — — — — Latin America — — — — 392 392 Caterpillar Power Finance — — — — 5 5 Total $ 9 $ 4 $ 6 $ 19 $ 4,046 $ 4,065 (Millions of dollars) December 31, 2020 31-60 61-90 91+ Total Current Total Finance North America $ 14 $ 11 $ 6 $ 31 $ 1,889 $ 1,920 EAME 1 — 1 2 632 634 Asia/Pacific 2 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 statusIn 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) March 31, 2021 December 31, 2020 Amortized Cost Amortized Cost Non-accrual Non-accrual 91+ Still Non-accrual Non-accrual 91+ Still North America $ 76 $ 2 $ 27 $ 86 $ 1 $ 34 EAME 109 — 3 113 1 1 Asia/Pacific 20 — 14 13 — 13 Mining 7 1 1 21 1 — Latin America 57 1 2 63 — 1 Caterpillar Power Finance 147 11 — 170 17 — Total $ 416 $ 15 $ 47 $ 466 $ 20 $ 49 There was $3 million and less than $1 million of interest income recognized during the three months ended March 31, 2021 and 2020, respectively, for customer finance receivables on non-accrual status.
Finance receivables modified as TDRsFinance receivables in the Customer portfolio segment modified as TDRs were as follows: (Millions of dollars) Three Months Ended Three Months Ended Pre-TDR Post-TDR Pre-TDR Post-TDR Mining $ 11 $ 5 $ — $ — Latin America — — 2 2 Total $ 11 $ 5 $ 2 $ 2 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: (Millions of dollars) Three Months Ended Three Months Ended Post-TDR Post-TDR North America $ 1 $ — EAME — 10 Asia/Pacific 4 — Latin America — 1 Caterpillar Power Finance 5 — Total $ 10 $ 11

Derivative Financial Instrume_2

Derivative Financial Instruments and Risk Management (Tables)3 Months Ended
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Location and fair value of derivative instruments reported in the Consolidated Statements of Financial PositionThe location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position were as follows: (Millions of dollars) Asset (Liability) Fair Value Consolidated Statements of March 31, December 31, Designated derivatives Interest rate contracts Other assets $ 41 $ 59 Interest rate contracts Accrued expenses (10) (5) Cross currency contracts Other assets 34 2 Cross currency contracts Accrued expenses (64) (148) $ 1 $ (92) Undesignated derivatives Foreign exchange contracts Other assets $ 60 $ 17 Foreign exchange contracts Accrued expenses (15) (107) Cross currency contracts Other assets 7 7 Cross currency contracts Accrued expenses — — $ 52 $ (83)
Schedule of effect of derivatives designated as cash flow hedging instruments in the Consolidated Statements of ProfitThe effect of derivatives designated as hedging instruments on the Consolidated Statements of Profit was as follows: Cash Flow Hedges (Millions of dollars) Three Months Ended March 31, 2021 Recognized in Earnings Amount of Classification Amount of Amount of the line Interest rate contracts $ — Interest expense $ (10) $ 125 Cross currency contracts 119 Other income (expense) 112 (8) Interest expense 2 125 $ 119 $ 104 Three Months Ended March 31, 2020 Recognized in Earnings Amount of Classification Amount of Amount of the line Interest rate contracts $ (15) Interest expense $ (5) $ 175 Cross currency contracts 101 Other income (expense) 71 (10) Interest expense 11 175 $ 86 $ 77
Schedule of effect of derivatives not designated as hedging instruments on the Consolidated Statements of ProfitThe effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended March 31, Classification 2021 2020 Foreign exchange contracts Other income (expense) $ 85 $ 99 Cross currency contracts Other income (expense) 1 9 $ 86 $ 108
Schedule of effect of net settlement provisions of the master netting agreements on our derivative balancesThe effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event was as follows: (Millions of dollars) March 31, December 31, Derivative Assets Gross Amount of Recognized Assets $ 142 $ 85 Gross Amounts Offset — — Net Amount of Assets (1) 142 85 Gross Amounts Not Offset (55) (57) Net Amount $ 87 $ 28 Derivative Liabilities Gross Amount of Recognized Liabilities $ (89) $ (260) Gross Amounts Offset — — Net Amount of Liabilities (1) (89) (260) Gross Amounts Not Offset 55 57 Net Amount $ (34) $ (203) (1) As presented in the Consolidated Statements of Financial Position.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)3 Months Ended
Mar. 31, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated other comprehensive income (loss)Changes in Accumulated other comprehensive income (loss), net of tax, included in the Consolidated Statements of Changes in Shareholder’s Equity, consisted of the following: (Millions of dollars) Three Months Ended 2021 2020 Foreign currency translation Balance at beginning of period $ (551) $ (777) Gains (losses) on foreign currency translation (94) (294) Less: Tax provision/(benefit) 25 12 Net gains (losses) on foreign currency translation (119) (306) Other comprehensive income (loss), net of tax (119) (306) Balance at end of period $ (670) $ (1,083) Derivative financial instruments Balance at beginning of period $ (44) $ (68) Gains (losses) deferred 119 86 Less: Tax provision/(benefit) 25 19 Net gains (losses) deferred 94 67 (Gains) losses reclassified to earnings (104) (77) Less: Tax (provision)/benefit (21) (16) Net (gains) losses reclassified to earnings (83) (61) Other comprehensive income (loss), net of tax 11 6 Balance at end of period $ (33) $ (62) Total Accumulated other comprehensive income (loss) at end of period $ (703) $ (1,145)
Reclassifications out of Accumulated other comprehensive income (loss)The effect of the reclassifications out of Accumulated other comprehensive income (loss) on the Consolidated Statements of Profit was as follows: (Millions of dollars) Three Months Ended Derivative financial instruments Classification of 2021 2020 Cross currency contracts Other income (expense) $ 112 $ 71 Cross currency contracts Interest expense 2 11 Interest rate contracts Interest expense (10) (5) Reclassifications before tax 104 77 Tax (provision) benefit (21) (16) Total reclassifications from Accumulated other comprehensive income (loss) $ 83 $ 61

Segment Information (Tables)

Segment Information (Tables)3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]
Segment InformationSupplemental segment data and reconciliations to consolidated external reporting for the three months ended March 31 was as follows: (Millions of dollars) 2021 External Profit Interest Depreciation Provision Assets at Capital North America $ 347 $ 99 $ 69 $ 137 $ 1 $ 14,928 $ 178 EAME 67 30 5 15 (4) 4,947 10 Asia/Pacific 92 51 23 2 — 4,902 3 Latin America 47 16 14 2 3 2,504 7 Caterpillar Power Finance 13 11 4 1 (7) 1,184 — Mining 71 18 10 35 (3) 2,582 26 Total Segments 637 225 125 192 (10) 31,047 224 Unallocated 5 (72) 50 — — 1,373 4 Timing (3) 1 — — — 12 — Methodology — 42 (50) — — (107) — Inter-segment Eliminations (1) — — — — — (242) — Total $ 639 $ 196 $ 125 $ 192 $ (10) $ 32,083 $ 228 2020 External Profit Interest Depreciation Provision Assets at Capital North America $ 382 $ 75 $ 94 $ 144 $ 22 $ 14,749 $ 220 EAME 70 16 13 16 7 4,981 4 Asia/Pacific 86 36 27 2 7 4,585 3 Latin America 53 6 23 3 7 2,621 3 Caterpillar Power Finance 20 1 8 — 5 1,308 — Mining 81 8 17 36 13 2,575 16 Total Segments 692 142 182 201 61 30,819 246 Unallocated 9 (70) 56 — — 1,576 1 Timing (6) (1) — — — 12 — Methodology — 56 (63) — — (152) — Inter-segment Eliminations (1) — — — — — (264) — Total $ 695 $ 127 $ 175 $ 201 $ 61 $ 31,991 $ 247 (1) Elimination is primarily related to intercompany loans.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]
Fair values of financial instrumentsFair values of our financial instruments were as follows: (Millions of dollars) March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Fair Value Reference Cash and cash equivalents $ 735 $ 735 $ 411 $ 411 1 Restricted cash and cash equivalents (1) $ 9 $ 9 $ 14 $ 14 1 Finance receivables, net (excluding finance leases (2) ) $ 18,580 $ 18,844 $ 18,599 $ 18,910 3 Note 3 Interest rate contracts: In a receivable position $ 41 $ 41 $ 59 $ 59 2 Note 4 In a payable position $ (10) $ (10) $ (5) $ (5) 2 Note 4 Cross currency contracts: In a receivable position $ 41 $ 41 $ 9 $ 9 2 Note 4 In a payable position $ (64) $ (64) $ (148) $ (148) 2 Note 4 Foreign exchange contracts: In a receivable position $ 60 $ 60 $ 17 $ 17 2 Note 4 In a payable position $ (15) $ (15) $ (107) $ (107) 2 Note 4 Short-term borrowings $ (3,625) $ (3,625) $ (2,005) $ (2,005) 1 Long-term debt $ (23,503) $ (23,960) $ (23,979) $ (24,614) 2 (1) Included in Other assets in the Consolidated Statements of Financial Position. (2) Represents finance leases and failed sale leasebacks of $7.92 billion and $7.98 billion as of March 31, 2021 and December 31, 2020, respectively.

Finance Receivables (Details)

Finance Receivables (Details) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable
Total finance receivables $ 26,941 $ 27,054
Less: Allowance for credit losses(441)(479) $ (424)
Total finance receivables, net26,500 26,575
Retail loans
Accounts, Notes, Loans and Financing Receivable
Total finance receivables14,698 15,037
Retail leases
Accounts, Notes, Loans and Financing Receivable
Total finance receivables7,734 7,812
Caterpillar Purchased Receivables
Accounts, Notes, Loans and Financing Receivable
Total finance receivables4,065 3,646
Wholesale loans
Accounts, Notes, Loans and Financing Receivable
Total finance receivables423 533
Wholesale leases
Accounts, Notes, Loans and Financing Receivable
Total finance receivables $ 21 $ 26

Finance Receivables (Details 2)

Finance Receivables (Details 2) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Receivables [Abstract]
Finance lease revenue (included in retail and wholesale finance revenue) $ 122 $ 125

Finance Receivables (Details 3)

Finance Receivables (Details 3) - USD ($) $ in Millions3 Months Ended12 Months Ended
Mar. 31, 2021Dec. 31, 2020Mar. 31, 2021Dec. 31, 2020
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year $ 479 $ 424
Receivables written off(34)(263)
Recoveries on receivables previously written off10 41
Provision for credit losses(10)261
Foreign currency translation adjustment(4)4
Balance at end of period441 479
Allowance for Credit Losses
Individually evaluated $ 224 $ 226
Collectively evaluated217 253
Allowance, Ending Balance441 424 441 479
Finance Receivables
Individually evaluated657 672
Collectively evaluated26,284 26,382
Finance Receivables, Ending Balance26,941 27,054
Adjustment to adopt new accounting guidance | Accounting Standards Update 2016-13
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year12
Allowance for Credit Losses
Allowance, Ending Balance12
Customer
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year431 375
Receivables written off(34)(263)
Recoveries on receivables previously written off10 41
Provision for credit losses(10)262
Foreign currency translation adjustment(4)4
Balance at end of period393 431
Allowance for Credit Losses
Individually evaluated185 187
Collectively evaluated208 244
Allowance, Ending Balance393 375 393 431
Finance Receivables
Individually evaluated579 594
Collectively evaluated19,219 19,333
Finance Receivables, Ending Balance19,798 19,927
Customer | Adjustment to adopt new accounting guidance | Accounting Standards Update 2016-13
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year12
Allowance for Credit Losses
Allowance, Ending Balance12
Dealer
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year44 45
Receivables written off0 0
Recoveries on receivables previously written off0 0
Provision for credit losses0 (1)
Foreign currency translation adjustment0 0
Balance at end of period44 44
Allowance for Credit Losses
Individually evaluated39 39
Collectively evaluated5 5
Allowance, Ending Balance44 44 44 44
Finance Receivables
Individually evaluated78 78
Collectively evaluated3,000 3,403
Finance Receivables, Ending Balance3,078 3,481
Dealer | Adjustment to adopt new accounting guidance | Accounting Standards Update 2016-13
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year0
Allowance for Credit Losses
Allowance, Ending Balance0
Caterpillar Purchased Receivables
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year4 4
Receivables written off0 0
Recoveries on receivables previously written off0 0
Provision for credit losses0 0
Foreign currency translation adjustment0 0
Balance at end of period4 4
Allowance for Credit Losses
Individually evaluated0 0
Collectively evaluated4 4
Allowance, Ending Balance $ 4 4 4 4
Finance Receivables
Individually evaluated0 0
Collectively evaluated4,065 3,646
Finance Receivables, Ending Balance $ 4,065 $ 3,646
Caterpillar Purchased Receivables | Adjustment to adopt new accounting guidance | Accounting Standards Update 2016-13
Financing Receivable, Allowance for Credit Losses
Balance at beginning of year0
Allowance for Credit Losses
Allowance, Ending Balance $ 0

Finance Receivables (Details 4)

Finance Receivables (Details 4) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Financing Receivable, Credit Quality Indicator
Total Finance Receivables $ 26,941 $ 27,054
Customer
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively2,427 8,399
2020 and 2019, respectively7,603 5,622
2019 and 2018, respectively4,929 2,994
2018 and 2017, respectively2,539 1,440
2017 and 2016, respectively1,105 597
Prior900 495
Revolving Financing Receivables295 380
Total Finance Receivables19,798 19,927
Customer | North America | Current
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively1,149 3,780
2020 and 2019, respectively3,551 2,423
2019 and 2018, respectively2,192 1,344
2018 and 2017, respectively1,156 522
2017 and 2016, respectively425 212
Prior166 27
Revolving Financing Receivables61 89
Total Finance Receivables8,700 8,397
Customer | North America | 31-60 Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively5 52
2020 and 2019, respectively34 49
2019 and 2018, respectively30 33
2018 and 2017, respectively18 16
2017 and 2016, respectively7 7
Prior8 2
Revolving Financing Receivables1 0
Total Finance Receivables103 159
Customer | North America | 61-90 Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively0 22
2020 and 2019, respectively14 25
2019 and 2018, respectively9 16
2018 and 2017, respectively7 9
2017 and 2016, respectively4 2
Prior1 1
Revolving Financing Receivables0 0
Total Finance Receivables35 75
Customer | North America | 91 Plus Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively0 14
2020 and 2019, respectively18 35
2019 and 2018, respectively35 31
2018 and 2017, respectively22 20
2017 and 2016, respectively16 9
Prior10 4
Revolving Financing Receivables1 2
Total Finance Receivables102 115
Customer | EAME | Current
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively459 1,605
2020 and 2019, respectively1,307 931
2019 and 2018, respectively811 501
2018 and 2017, respectively419 203
2017 and 2016, respectively164 60
Prior56 18
Revolving Financing Receivables0 0
Total Finance Receivables3,216 3,318
Customer | EAME | 31-60 Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively1 5
2020 and 2019, respectively8 15
2019 and 2018, respectively5 3
2018 and 2017, respectively3 2
2017 and 2016, respectively1 0
Prior0 0
Revolving Financing Receivables0 0
Total Finance Receivables18 25
Customer | EAME | 61-90 Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively0 1
2020 and 2019, respectively3 1
2019 and 2018, respectively3 2
2018 and 2017, respectively1 1
2017 and 2016, respectively1 0
Prior0 0
Revolving Financing Receivables0 0
Total Finance Receivables8 5
Customer | EAME | 91 Plus Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively0 7
2020 and 2019, respectively9 7
2019 and 2018, respectively5 12
2018 and 2017, respectively12 4
2017 and 2016, respectively5 39
Prior81 43
Revolving Financing Receivables0 0
Total Finance Receivables112 112
Customer | Asia/Pacific | Current
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively448 1,583
2020 and 2019, respectively1,431 933
2019 and 2018, respectively775 412
2018 and 2017, respectively297 115
2017 and 2016, respectively85 32
Prior25 6
Revolving Financing Receivables34 32
Total Finance Receivables3,095 3,113
Customer | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively0 13
2020 and 2019, respectively16 23
2019 and 2018, respectively16 13
2018 and 2017, respectively10 6
2017 and 2016, respectively1 0
Prior0 0
Revolving Financing Receivables0 0
Total Finance Receivables43 55
Customer | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively0 7
2020 and 2019, respectively7 11
2019 and 2018, respectively9 7
2018 and 2017, respectively7 1
2017 and 2016, respectively4 0
Prior0 0
Revolving Financing Receivables0 0
Total Finance Receivables27 26
Customer | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively0 4
2020 and 2019, respectively8 10
2019 and 2018, respectively12 9
2018 and 2017, respectively12 3
2017 and 2016, respectively2 0
Prior0 0
Revolving Financing Receivables0 0
Total Finance Receivables34 26
Customer | Mining | Current
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively230 515
2020 and 2019, respectively473 574
2019 and 2018, respectively567 289
2018 and 2017, respectively315 181
2017 and 2016, respectively109 92
Prior206 151
Revolving Financing Receivables86 137
Total Finance Receivables1,986 1,939
Customer | Mining | 31-60 Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively5 5
2020 and 2019, respectively0 0
2019 and 2018, respectively0 5
2018 and 2017, respectively0 1
2017 and 2016, respectively0 0
Prior0 0
Revolving Financing Receivables0 0
Total Finance Receivables5 11
Customer | Mining | 61-90 Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively0 0
2020 and 2019, respectively0 0
2019 and 2018, respectively0 0
2018 and 2017, respectively1 0
2017 and 2016, respectively0 0
Prior0 0
Revolving Financing Receivables0 0
Total Finance Receivables1 0
Customer | Mining | 91 Plus Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively0 0
2020 and 2019, respectively1 11
2019 and 2018, respectively2 8
2018 and 2017, respectively4 2
2017 and 2016, respectively2 0
Prior0 0
Revolving Financing Receivables0 1
Total Finance Receivables9 22
Customer | Latin America | Current
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively124 561
2020 and 2019, respectively490 348
2019 and 2018, respectively264 151
2018 and 2017, respectively106 48
2017 and 2016, respectively35 13
Prior23 34
Revolving Financing Receivables0 0
Total Finance Receivables1,042 1,155
Customer | Latin America | 31-60 Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively0 3
2020 and 2019, respectively6 6
2019 and 2018, respectively6 4
2018 and 2017, respectively6 3
2017 and 2016, respectively3 0
Prior0 0
Revolving Financing Receivables0 0
Total Finance Receivables21 16
Customer | Latin America | 61-90 Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively0 1
2020 and 2019, respectively3 7
2019 and 2018, respectively4 6
2018 and 2017, respectively6 3
2017 and 2016, respectively1 2
Prior13 0
Revolving Financing Receivables0 0
Total Finance Receivables27 19
Customer | Latin America | 91 Plus Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively0 2
2020 and 2019, respectively3 14
2019 and 2018, respectively9 11
2018 and 2017, respectively10 24
2017 and 2016, respectively22 5
Prior10 4
Revolving Financing Receivables0 0
Total Finance Receivables54 60
Customer | Caterpillar Power Finance | Current
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively6 217
2020 and 2019, respectively219 199
2019 and 2018, respectively175 111
2018 and 2017, respectively102 273
2017 and 2016, respectively214 99
Prior207 117
Revolving Financing Receivables112 119
Total Finance Receivables1,035 1,135
Customer | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively0 0
2020 and 2019, respectively0 0
2019 and 2018, respectively0 6
2018 and 2017, respectively0 0
2017 and 2016, respectively0 0
Prior0 0
Revolving Financing Receivables0 0
Total Finance Receivables0 6
Customer | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively0 0
2020 and 2019, respectively0 0
2019 and 2018, respectively0 0
2018 and 2017, respectively0 0
2017 and 2016, respectively1 0
Prior1 9
Revolving Financing Receivables0 0
Total Finance Receivables2 9
Customer | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Credit Quality Indicator
2021 and 2020, respectively0 2
2020 and 2019, respectively2 0
2019 and 2018, respectively0 20
2018 and 2017, respectively25 3
2017 and 2016, respectively3 25
Prior93 79
Revolving Financing Receivables0 0
Total Finance Receivables123 129
Dealer
Financing Receivable, Credit Quality Indicator
Total Finance Receivables3,078 3,481
Dealer | Latin America | 91 Plus Days Past Due
Financing Receivable, Credit Quality Indicator
2018 and 2017, respectively78
2017 and 2016, respectively $ 78
Prior3
Total Finance Receivables $ 81

Finance Receivables (Details 5)

Finance Receivables (Details 5) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Receivables [Abstract]
Period after which unpaid installments are considered as past due30 days
Financing Receivable, Past Due
Total Finance Receivables $ 26,941 $ 27,054
Caterpillar Purchased Receivables
Financing Receivable, Past Due
Past Due19 37
Current4,046 3,609
Total Finance Receivables4,065 3,646
Caterpillar Purchased Receivables | 31-60 Days Past Due
Financing Receivable, Past Due
Past Due9 17
Caterpillar Purchased Receivables | 61-90 Days Past Due
Financing Receivable, Past Due
Past Due4 12
Caterpillar Purchased Receivables | 91 Plus Days Past Due
Financing Receivable, Past Due
Past Due6 8
Caterpillar Purchased Receivables | North America
Financing Receivable, Past Due
Past Due13 31
Current2,070 1,889
Total Finance Receivables2,083 1,920
Caterpillar Purchased Receivables | North America | 31-60 Days Past Due
Financing Receivable, Past Due
Past Due7 14
Caterpillar Purchased Receivables | North America | 61-90 Days Past Due
Financing Receivable, Past Due
Past Due3 11
Caterpillar Purchased Receivables | North America | 91 Plus Days Past Due
Financing Receivable, Past Due
Past Due3 6
Caterpillar Purchased Receivables | EAME
Financing Receivable, Past Due
Past Due1 2
Current777 632
Total Finance Receivables778 634
Caterpillar Purchased Receivables | EAME | 31-60 Days Past Due
Financing Receivable, Past Due
Past Due0 1
Caterpillar Purchased Receivables | EAME | 61-90 Days Past Due
Financing Receivable, Past Due
Past Due0 0
Caterpillar Purchased Receivables | EAME | 91 Plus Days Past Due
Financing Receivable, Past Due
Past Due1 1
Caterpillar Purchased Receivables | Asia/Pacific
Financing Receivable, Past Due
Past Due5 4
Current802 581
Total Finance Receivables807 585
Caterpillar Purchased Receivables | Asia/Pacific | 31-60 Days Past Due
Financing Receivable, Past Due
Past Due2 2
Caterpillar Purchased Receivables | Asia/Pacific | 61-90 Days Past Due
Financing Receivable, Past Due
Past Due1 1
Caterpillar Purchased Receivables | Asia/Pacific | 91 Plus Days Past Due
Financing Receivable, Past Due
Past Due2 1
Caterpillar Purchased Receivables | Mining
Financing Receivable, Past Due
Past Due0 0
Current0 0
Total Finance Receivables0 0
Caterpillar Purchased Receivables | Mining | 31-60 Days Past Due
Financing Receivable, Past Due
Past Due0 0
Caterpillar Purchased Receivables | Mining | 61-90 Days Past Due
Financing Receivable, Past Due
Past Due0 0
Caterpillar Purchased Receivables | Mining | 91 Plus Days Past Due
Financing Receivable, Past Due
Past Due0 0
Caterpillar Purchased Receivables | Latin America
Financing Receivable, Past Due
Past Due0 0
Current392 501
Total Finance Receivables392 501
Caterpillar Purchased Receivables | Latin America | 31-60 Days Past Due
Financing Receivable, Past Due
Past Due0 0
Caterpillar Purchased Receivables | Latin America | 61-90 Days Past Due
Financing Receivable, Past Due
Past Due0 0
Caterpillar Purchased Receivables | Latin America | 91 Plus Days Past Due
Financing Receivable, Past Due
Past Due0 0
Caterpillar Purchased Receivables | Caterpillar Power Finance
Financing Receivable, Past Due
Past Due0 0
Current5 6
Total Finance Receivables5 6
Caterpillar Purchased Receivables | Caterpillar Power Finance | 31-60 Days Past Due
Financing Receivable, Past Due
Past Due0 0
Caterpillar Purchased Receivables | Caterpillar Power Finance | 61-90 Days Past Due
Financing Receivable, Past Due
Past Due0 0
Caterpillar Purchased Receivables | Caterpillar Power Finance | 91 Plus Days Past Due
Financing Receivable, Past Due
Past Due $ 0 $ 0

Finance Receivables (Details 6)

Finance Receivables (Details 6) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Financing Receivable, Past Due
Period after which collection of future income is considered as not probable120 days
Customer
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance $ 416 $ 466
Amortized Cost, Non-accrual Without an Allowance15 20
91 Plus, Still Accruing47 49
Interest income recognized for finance receivables on non-accrual status3 $ 1
Customer | North America
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance76 86
Amortized Cost, Non-accrual Without an Allowance2 1
91 Plus, Still Accruing27 34
Customer | EAME
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance109 113
Amortized Cost, Non-accrual Without an Allowance0 1
91 Plus, Still Accruing3 1
Customer | Asia/Pacific
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance20 13
Amortized Cost, Non-accrual Without an Allowance0 0
91 Plus, Still Accruing14 13
Customer | Mining
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance7 21
Amortized Cost, Non-accrual Without an Allowance1 1
91 Plus, Still Accruing1 0
Customer | Latin America
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance57 63
Amortized Cost, Non-accrual Without an Allowance1 0
91 Plus, Still Accruing2 1
Customer | Caterpillar Power Finance
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance147 170
Amortized Cost, Non-accrual Without an Allowance11 17
91 Plus, Still Accruing0 0
Dealer
Financing Receivable, Past Due
91 Plus, Still Accruing0 0
Interest income recognized for finance receivables on non-accrual status0 $ 0
Dealer | Latin America
Financing Receivable, Past Due
Amortized Cost, Non-accrual With an Allowance $ 78 $ 81

Finance Receivables (Details 7)

Finance Receivables (Details 7) $ in Millions3 Months Ended
Mar. 31, 2021USD ($)contractsMar. 31, 2020USD ($)contracts
Finance receivables modified as TDRs
Pre-TDR Amortized Cost $ 11 $ 2
Post-TDR Amortized Cost5 2
Customer
TDRs which had been modified within twelve months of the default date [Abstract]
Post-TDR Amortized Cost10 11
Customer | North America
TDRs which had been modified within twelve months of the default date [Abstract]
Post-TDR Amortized Cost1 0
Customer | EAME
TDRs which had been modified within twelve months of the default date [Abstract]
Post-TDR Amortized Cost0 10
Customer | Asia/Pacific
TDRs which had been modified within twelve months of the default date [Abstract]
Post-TDR Amortized Cost4 0
Customer | Mining
Finance receivables modified as TDRs
Pre-TDR Amortized Cost11 0
Post-TDR Amortized Cost5 0
Customer | Latin America
Finance receivables modified as TDRs
Pre-TDR Amortized Cost0 2
Post-TDR Amortized Cost0 2
TDRs which had been modified within twelve months of the default date [Abstract]
Post-TDR Amortized Cost0 1
Customer | Caterpillar Power Finance
TDRs which had been modified within twelve months of the default date [Abstract]
Post-TDR Amortized Cost $ 5 $ 0
Dealer
Finance receivables modified as TDRs
Number of Contracts | contracts0 0
Caterpillar Purchased Receivables
Finance receivables modified as TDRs
Number of Contracts | contracts0 0

Derivative Financial Instrume_3

Derivative Financial Instruments and Risk Management (Details) $ in Millions3 Months Ended
Mar. 31, 2021USD ($)
Derivative
Cumulative amount of fair value hedging adjustments related to our fixed-to-floating interest rate contracts included in the carrying amount of Long-term debt $ 31
Deferred net losses, net of tax, included in equity, related to cash flow hedges, expected to be reclassified to earnings over the next twelve months $ 2

Derivative Financial Instrume_4

Derivative Financial Instruments and Risk Management (Details 2) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Derivatives, Fair Value
Asset Fair Value $ 142 $ 85
Liability Fair Value(89)(260)
Designated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value1 (92)
Designated derivatives | Interest rate contracts | Other assets
Derivatives, Fair Value
Asset Fair Value41 59
Designated derivatives | Interest rate contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value(10)(5)
Designated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value34 2
Designated derivatives | Cross currency contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value(64)(148)
Undesignated derivatives
Derivatives, Fair Value
Asset (Liability) Fair Value52 (83)
Undesignated derivatives | Foreign exchange contracts | Other assets
Derivatives, Fair Value
Asset Fair Value60 17
Undesignated derivatives | Foreign exchange contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value(15)(107)
Undesignated derivatives | Cross currency contracts | Other assets
Derivatives, Fair Value
Asset Fair Value7 7
Undesignated derivatives | Cross currency contracts | Accrued expenses
Derivatives, Fair Value
Liability Fair Value $ 0 $ 0

Derivative Financial Instrume_5

Derivative Financial Instruments and Risk Management (Details 3) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Derivative
Derivative, Notional Amount $ 10,640 $ 11,260

Derivative Financial Instrume_6

Derivative Financial Instruments and Risk Management (Details 4) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI $ 119 $ 86
Amount of Gains (Losses) Reclassified from AOCI(104)(77)
Interest Expense125 175
Other income (expense)(8)(10)
Designated derivatives | Cash flow hedges
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI119 86
Amount of Gains (Losses) Reclassified from AOCI104 77
Designated derivatives | Cash flow hedges | Interest rate contracts
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI0 (15)
Designated derivatives | Cash flow hedges | Interest rate contracts | Interest expense
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI(10)(5)
Interest Expense125 175
Designated derivatives | Cash flow hedges | Cross currency contracts
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Recognized in AOCI119 101
Designated derivatives | Cash flow hedges | Cross currency contracts | Interest expense
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI2 11
Interest Expense125 175
Designated derivatives | Cash flow hedges | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Amount of Gains (Losses) Reclassified from AOCI112 71
Other income (expense)(8)(10)
Undesignated derivatives
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments86 108
Undesignated derivatives | Foreign exchange contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments85 99
Undesignated derivatives | Cross currency contracts | Other income (expense)
Derivative Instruments, Gain (Loss)
Gains (Losses) on Derivatives Not Designated as Hedging Instruments $ 1 $ 9

Derivative Financial Instrume_7

Derivative Financial Instruments and Risk Management (Details 5) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross Amount of Recognized Assets $ 142 $ 85
Gross Amounts Offset0 0
Net Amount of Assets142 85
Gross Amounts Not Offset(55)(57)
Net Amount87 28
Gross Amount of Recognized Liabilities(89)(260)
Gross Amounts Offset0 0
Net Amount of Liabilities(89)(260)
Gross Amounts Not Offset55 57
Net Amount $ (34) $ (203)

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period $ (551) $ (777)
Gains (losses) on foreign currency translation(94)(294)
Less: Tax provision/(benefit)25 12
Net gains (losses) on foreign currency translation(119)(306)
Other comprehensive income (loss), net of tax(119)(306)
Balance at end of period(670)(1,083)
Balance at beginning of period(44)(68)
Gains (losses) deferred119 86
Less: Tax provision/(benefit)25 19
Net gains (losses) deferred94 67
(Gains) losses reclassified to earnings(104)(77)
Less: Tax (provision)/benefit(21)(16)
Net (gains) losses reclassified to earnings(83)(61)
Other comprehensive income (loss), net of tax11 6
Balance at end of period(33)(62)
Total Accumulated other comprehensive income (loss) at end of period $ (703) $ (1,145) $ (595)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income (expense) $ (8) $ (10)
Interest(125)(175)
Reclassifications before tax196 127
Tax (provision) benefit(53)(33)
Total reclassifications from Accumulated other comprehensive income (loss)[1]140 90
Reclassifications out of Accumulated other comprehensive income (loss) | Derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications before tax104 77
Tax (provision) benefit(21)(16)
Total reclassifications from Accumulated other comprehensive income (loss)83 61
Reclassifications out of Accumulated other comprehensive income (loss) | Derivative financial instruments | Cross currency contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other income (expense)112 71
Interest2 11
Reclassifications out of Accumulated other comprehensive income (loss) | Derivative financial instruments | Interest rate contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest $ (10) $ (5)
[1]Profit attributable to Caterpillar Financial Services Corporation.

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Segment Reporting Information
External Revenues $ 639 $ 695
Profit before income taxes196 127
Interest Expense125 175
Depreciation on equipment leased to others192 201
Provision for credit losses(10)61
Assets32,083 $ 31,991
Capital expenditures228 247
Operating Segments
Segment Reporting Information
External Revenues637 692
Profit before income taxes225 142
Interest Expense125 182
Depreciation on equipment leased to others192 201
Provision for credit losses(10)61
Assets31,047 30,819
Capital expenditures224 246
Unallocated
Segment Reporting Information
External Revenues5 9
Profit before income taxes(72)(70)
Interest Expense50 56
Depreciation on equipment leased to others0 0
Provision for credit losses0 0
Assets1,373 1,576
Capital expenditures4 1
Segment Reconciling Items | Timing
Segment Reporting Information
External Revenues(3)(6)
Profit before income taxes1 (1)
Interest Expense0 0
Depreciation on equipment leased to others0 0
Provision for credit losses0 0
Assets12 12
Capital expenditures0 0
Segment Reconciling Items | Methodology
Segment Reporting Information
External Revenues0 0
Profit before income taxes42 56
Interest Expense(50)(63)
Depreciation on equipment leased to others0 0
Provision for credit losses0 0
Assets(107)(152)
Capital expenditures0 0
Inter-segment Eliminations
Segment Reporting Information
External Revenues0 0
Profit before income taxes0 0
Interest Expense0 0
Depreciation on equipment leased to others0 0
Provision for credit losses0 0
Assets(242)(264)
Capital expenditures0 0
North America | Operating Segments
Segment Reporting Information
External Revenues347 382
Profit before income taxes99 75
Interest Expense69 94
Depreciation on equipment leased to others137 144
Provision for credit losses1 22
Assets14,928 14,749
Capital expenditures178 220
EAME | Operating Segments
Segment Reporting Information
External Revenues67 70
Profit before income taxes30 16
Interest Expense5 13
Depreciation on equipment leased to others15 16
Provision for credit losses(4)7
Assets4,947 4,981
Capital expenditures10 4
Asia/Pacific | Operating Segments
Segment Reporting Information
External Revenues92 86
Profit before income taxes51 36
Interest Expense23 27
Depreciation on equipment leased to others2 2
Provision for credit losses0 7
Assets4,902 4,585
Capital expenditures3 3
Latin America | Operating Segments
Segment Reporting Information
External Revenues47 53
Profit before income taxes16 6
Interest Expense14 23
Depreciation on equipment leased to others2 3
Provision for credit losses3 7
Assets2,504 2,621
Capital expenditures7 3
Caterpillar Power Finance | Operating Segments
Segment Reporting Information
External Revenues13 20
Profit before income taxes11 1
Interest Expense4 8
Depreciation on equipment leased to others1 0
Provision for credit losses(7)5
Assets1,184 1,308
Capital expenditures0 0
Mining | Operating Segments
Segment Reporting Information
External Revenues71 81
Profit before income taxes18 8
Interest Expense10 17
Depreciation on equipment leased to others35 36
Provision for credit losses(3)13
Assets2,582 $ 2,575
Capital expenditures $ 26 $ 16

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Details) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Guarantor Obligations
Guarantees, maximum potential amount of future payments $ 40 $ 40
Assets32,083 31,991
Liabilities28,559 28,500
Maximum
Guarantor Obligations
Related recorded liability1 1
Variable interest entity, primary beneficiary
Guarantor Obligations
Assets841 1,030
Liabilities $ 840 $ 1,030

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Recurring basis | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivative financial instruments, net asset (liability) position $ 53 $ (175)

Fair Value Measurements (Deta_2

Fair Value Measurements (Details 2) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Fair Value, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Loans carried at fair value $ 232 $ 243

Fair Value Measurements (Deta_3

Fair Value Measurements (Details 3) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Financial Instruments, Financial Assets, Balance Sheet Groupings
Restricted cash and cash equivalents $ 9 $ 14
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings(3,625)(2,005)
Fair Value, Level 1
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and cash equivalents735 411
Restricted cash and cash equivalents9 14
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Short-term borrowings(3,625)(2,005)
Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Interest rate contracts, in a receivable position41 59
Foreign exchange contracts, in a receivable position60 17
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a payable position(10)(5)
Foreign exchange contracts, in a payable position(15)(107)
Long-term debt(23,960)(24,614)
Fair Value, Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings
Finance receivables, net (excluding finance leases)18,844 18,910
Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Cash and cash equivalents735 411
Restricted cash and cash equivalents9 14
Finance receivables, net (excluding finance leases)18,580 18,599
Interest rate contracts, in a receivable position41 59
Foreign exchange contracts, in a receivable position60 17
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Interest rate contracts, in a payable position(10)(5)
Foreign exchange contracts, in a payable position(15)(107)
Short-term borrowings(3,625)(2,005)
Long-term debt(23,503)(23,979)
Carrying amount of assets excluded from measurement at fair value
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Finance leases and failed sale leasebacks, Carrying Value7,920 7,980
Cross currency contracts | Fair Value, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign exchange contracts, in a receivable position41 9
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign exchange contracts, in a payable position(64)(148)
Cross currency contracts | Carrying Amount
Financial Instruments, Financial Assets, Balance Sheet Groupings
Foreign exchange contracts, in a receivable position41 9
Financial Instruments, Financial Liabilities, Balance Sheet Groupings
Foreign exchange contracts, in a payable position $ (64) $ (148)

Income Taxes (Details)

Income Taxes (Details)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Income Tax Disclosure [Abstract]
Estimated annual tax rate27.00%26.00%