Commitments and contingencies:

6 Months Ended

Apr. 30, 2012

Commitments and contingencies

Commitments and contingencies

(6)Commitments and contingencies:

At April 30, 2012, John Deere Credit Inc., the John Deere finance subsidiary in Canada, had $82 million of commercial paper, $1,903 million of medium-term notes outstanding, and a fair value liability of $4 million for derivatives, prior to considering applicable netting provisions, with a notional amount of $543 million that were guaranteed by the Company.

The Company has commitments to extend credit to customers and John Deere dealers through lines of credit and other pre-approved credit arrangements. The Company applies the same credit policies and approval process for these commitments to extend credit as it does for its Receivables. Collateral is not required for these commitments, but if credit is extended, collateral may be required upon funding. The amount of unused commitments to extend credit to John Deere dealers was $2.4 billion at April 30, 2012. The amount of unused commitments to extend credit to customers was $29.8 billion at April 30, 2012. A significant portion of these commitments is not expected to be fully drawn upon; therefore, the total commitment amounts likely do not represent a future cash requirement. The Company generally has the right to unconditionally cancel, alter or amend the terms of these commitments at any time. Over 95 percent of these unused commitments to extend credit to customers relate to revolving charge accounts.

At April 30, 2012, the Company had restricted other assets of $2 million. See Note 5 for additional restricted assets associated with borrowings related to securitizations.

The Company also had other miscellaneous contingent liabilities totaling approximately $3 million at April 30, 2012, for which it believes the probability for payment is substantially remote. The accrued liability for these contingencies was not material at April 30, 2012.

The Company is subject to various unresolved legal actions which arise in the normal course of its business, the most prevalent of which relate to state and federal laws and regulations concerning retail credit. The Company believes the reasonably possible range of losses for these unresolved legal actions in addition to amounts accrued would not have a material effect on its financial statements.