RECEIVABLES

9 Months Ended

Jul. 31, 2011

RECEIVABLES

RECEIVABLES

(4)         Past due balances of Receivables represent the total balance held (principal plus accrued interest) with any payment amounts 30 days or more past the contractual payment due date.

Generally, when retail notes are approximately 120 days delinquent, accrual of finance income is suspended, the collateral is repossessed or the account is designated for litigation and the estimated uncollectible amount, after charging the dealer’s withholding account, if any, is written off to the allowance for credit losses. Revolving charge accounts are deemed to be uncollectible and written off to the allowance for credit losses when delinquency reaches 120 days for a John Deere Financial Multi-use account (formerly known as Farm Planä), PowerPlanâ or John Deere Financial Revolving Plan account. When a financing lease account becomes 120 days delinquent, the accrual of lease revenue is suspended, the equipment is repossessed or the account is designated for litigation, and the estimated uncollectible amount, after charging the dealer’s withholding account, if any, is written off to the allowance for credit losses. Generally, when a wholesale receivable becomes 60 days delinquent, the Company determines whether the accrual of finance income on interest-bearing wholesale receivables should be suspended, the collateral should be repossessed or the account should be designated for litigation and the estimated uncollectible amount written off to the allowance for credit losses. Finance income for non-performing Receivables is recognized on a cash basis. Accrual of finance income is resumed when the receivable becomes contractually current and collections are reasonably assured.

The Company monitors the credit quality of Receivables as either performing or non-performing monthly. Non-performing Receivables represent loans for which the Company has ceased accruing finance income.

An aging of total Receivables and non-performing Receivables was as follows (in millions of dollars):

	July 31, 2011
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due *		Total Past Due
Retail notes:
Agriculture and turf equipment	$	76.4	$	58.2	$	21.2	$	155.8
Construction and forestry equipment	47.3		23.5		12.8		83.6
Recreational products	.1		.1				.2
Revolving charge accounts:
Agriculture and turf equipment	15.5		6.3		8.0		29.8
Construction and forestry equipment	2.0		.8		.3		3.1
Wholesale receivables:
Agriculture and turf equipment	1.3		.5		.6		2.4
Construction and forestry equipment	.6		.2		.2		1.0
Financing leases:
Agriculture and turf equipment	7.2		2.9		11.6		21.7
Construction and forestry equipment	2.4		.9		3.7		7.0
Operating loans:
Agriculture and turf equipment
Total Receivables	$	152.8	$	93.4	$	58.4	$	304.6

*              Receivables that are 90 days or greater past due and still accruing finance income.

	Total Past Due		Total Non- Performing		Current		Total Receivables
Retail notes:
Agriculture and turf equipment	$	155.8	$	45.6	$	11,789.5	$	11,990.9
Construction and forestry equipment	83.6		19.1		1,030.8		1,133.5
Recreational products	.2		.1		3.5		3.8
Revolving charge accounts:
Agriculture and turf equipment	29.8		.9		2,370.5		2,401.2
Construction and forestry equipment	3.1				55.5		58.6
Wholesale receivables:
Agriculture and turf equipment	2.4		1.1		5,000.7		5,004.2
Construction and forestry equipment	1.0				793.2		794.2
Financing leases:
Agriculture and turf equipment	21.7		12.5		277.2		311.4
Construction and forestry equipment	7.0		4.5		127.7		139.2
Operating loans:
Agriculture and turf equipment			2.4		111.2		113.6
Total Receivables	$	304.6	$	86.2	$	21,559.8	$	21,950.6

Allowance for credit losses on Receivables are maintained in amounts considered to be appropriate in relation to the Receivables outstanding based on collection experience, economic conditions and credit risk quality.

An analysis of the allowance for credit losses on Receivables was as follows (in millions of dollars):

	Three Months Ended
	July 31, 2011
	Retail Notes			Revolving Charge Accounts			Wholesale Receivables			Other			Total Receivables
Allowance:
Balance, beginning of the period	$	81.8		$	43.3		$	6.1		$	14.2		$	145.4
Provision (credit) for credit losses	(5.5		)	3.2			(.1		)	3.8			1.4
Write-offs	(2.9		)	(11.3		)				(1.8		)	(16.0		)
Recoveries	.7			6.3			.1			.4			7.5
Other changes *	(.1		)										(.1		)
Balance, end of the period	$	74.0		$	41.5		$	6.1		$	16.6		$	138.2

	Nine Months Ended
	July 31, 2011
	Retail Notes			Revolving Charge Accounts			Wholesale Receivables			Other			Total Receivables
Allowance:
Balance, beginning of the period	$	82.1		$	43.3		$	7.4		$	15.8		$	148.6
Provision (credit) for credit losses	(2.2		)	7.5			(1.4		)	4.3			8.2
Write-offs	(12.3		)	(29.7		)	(.3		)	(4.3		)	(46.6		)
Recoveries	6.0			20.4			.1			.6			27.1
Other changes *	.4						.3			.2			.9
Balance, end of the period	$	74.0		$	41.5		$	6.1		$	16.6		$	138.2
Balance individually evaluated	$	.6					$	.3		$	2.1		$	3.0
Balance collectively evaluated	$	73.4		$	41.5		$	5.8		$	14.5		$	135.2
Receivables:
Balance, end of the period	$	13,128.2		$	2,459.8		$	5,798.4		$	564.2		$	21,950.6
Balance individually evaluated	$	16.3		$	.4		$	.3		$	6.5		$	23.5
Balance collectively evaluated	$	13,111.9		$	2,459.4		$	5,798.1		$	557.7		$	21,927.1

*         Primarily translation adjustments

Receivables are considered impaired when it is probable the Company will be unable to collect all amounts due according to the contractual terms. Receivables reviewed for impairment generally include those that are either past due, or have provided bankruptcy notification, or require significant collection efforts. Receivables, which are impaired, are classified as non-performing.

An analysis of impaired Receivables was as follows (in millions of dollars):

		July 31, 2011
		Recorded Investment		Unpaid Principal Balance		Specific Allowance		Average Recorded Investment
Receivables with specific allowance: *
Retail notes		$	1.3	$	1.3	$	.6	$	1.3
Revolving charge accounts
Wholesale receivables		.3		.3		.3		1.0
Financing leases		1.1		.9		.4		1.2
Operating loans		2.3		2.3		1.7		3.7
Total		5.0		4.8		3.0		7.2
Receivables without specific allowance:
Retail notes		11.6		11.3				10.1
Total		$	16.6	$	16.1	$	3.0	$	17.3
Agriculture and turf		$	10.3	$	10.1	$	2.6	$	11.6
Construction and forestry		$	6.3	$	6.0	$	.4	$	5.7
	*            Finance income recognized was not material.