DERIVATIVE INSTRUMENTS (Tables)

9 Months Ended

Jul. 31, 2012

DERIVATIVE INSTRUMENTS

Fair Value Hedge Derivative Instruments and Related Borrowings

	Three Months Ended July 31,				Nine Months Ended July 31,
	2012		2011		2012		2011
Interest rate contracts *	$	120.8	$	93.6	$	206.1	$	(30.5)
Borrowings **	(117.0)		(91.3)		(210.5)		29.1

*   Includes changes in fair value of interest rate contracts excluding net accrued interest income of $36.2 million and $39.2 million during the third quarter of 2012 and 2011 and $110.7 million and $120.7 million during the first nine months of 2012 and 2011, respectively.

**   Includes adjustments for fair values of hedged borrowings excluding accrued interest expense of $63.7 million and $62.1 million during the third quarter of 2012 and 2011 and $195.5 million and $186.1 million during the first nine months of 2012 and 2011, respectively.

Fair Value of Derivative Instruments in Consolidated Balance Sheet

	July 31, 2012		October 31, 2011		July 31, 2011
Receivable from John Deere
Designated as hedging instruments:
Interest rate contracts	$	330.1	$	133.1	$	71.9
Cross-currency interest rate contracts	13.2				.1
Total designated	343.3		133.1		72.0
Not designated as hedging instruments:
Interest rate contracts	44.6		35.3		1.9
Cross-currency interest rate contracts	1.4		.9
Total not designated	46.0		36.2		1.9
Other Assets
Designated as hedging instruments:
Interest rate contracts	216.8		237.2		252.6
Not designated as hedging instruments:
Interest rate contracts	30.1		31.4		26.8
Foreign exchange contracts	3.6				.4
Cross-currency interest rate contracts	.8		1.6		1.0
Total not designated	34.5		33.0		28.2
Total derivatives	$	640.6	$	439.5	$	354.7
Other Payables to John Deere
Designated as hedging instruments:
Interest rate contracts	$	6.7	$	13.4	$	.8
Cross-currency interest rate contracts	3.4		1.4		1.8
Total designated	10.1		14.8		2.6
Not designated as hedging instruments:
Interest rate contracts	11.8		6.2		1.8
Cross-currency interest rate contracts	.4				.3
Total not designated	12.2		6.2		2.1
Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Cross-currency interest rate contracts	83.1		5.5		5.8
Not designated as hedging instruments:
Interest rate contracts	45.9		37.0		5.3
Foreign exchange contracts	15.9		47.6		23.2
Cross-currency interest rate contracts	.1		.2		2.8
Total not designated	61.9		84.8		31.3
Total derivatives	$	167.3	$	111.3	$	41.8

Derivative Instruments Effect on Consolidated Income

	Expense or OCI	Three Months Ended July 31						Nine Months Ended July 31
	Classification	2012			2011			2012			2011
Fair Value Hedges:
Interest rate contracts	Interest expense	$	157.0		$	132.8		$	316.8		$	90.2
Cash Flow Hedges:
Recognized in OCI
(Effective Portion):
Interest rate contracts	OCI (pretax) *	(8.3		)	(1.9		)	(16.7		)	(4.8		)
Foreign exchange contracts	OCI (pretax) *	(33.7		)	(19.4		)	(64.2		)	34.3
Reclassified from OCI
(Effective Portion):
Interest rate contracts	Interest expense *	(3.6		)	(3.1		)	(9.2		)	(18.4		)
Foreign exchange contracts	Administrative and operating expenses *	(31.3		)	(23.9		)	(63.8		)	27.4
Recognized Directly in Income
(Ineffective Portion)		**			**			**			**
Not Designated as Hedges:
Interest rate contracts	Interest expense *	$	(3.7	)	$	4.3		$	(8.0	)	(.3		)
Foreign exchange contracts	Administrative and operating expenses *	30.9			(5.7		)	44.7			(108.3		)
Total not designated		$	27.2		$	(1.4	)	$	36.7		(108.6		)

*Includes interest and foreign exchange gains (losses) from cross-currency interest rate contracts.

**The amount is not significant.