Derivative Instruments (Tables)

12 Months Ended

Oct. 31, 2012

Derivative Instruments

Fair Value Hedge Derivative Instruments and Related Borrowings

The gains (losses) on these contracts and the underlying borrowings recorded in interest expense were as follows (in millions of dollars):

	2012			2011
Interest rate contracts *	$	186.5		$	16.6
Borrowings **	(187.8		)	(20.3		)

*Includes changes in fair value of interest rate contracts excluding net accrued interest income of $145.9 million and $160.7 million during 2012 and 2011, respectively.

**Includes adjustments for fair values of hedged borrowings excluding accrued interest expense of $257.8 million and $250.2 million during 2012 and 2011, respectively.

Fair Value of Derivative Instruments in Consolidated Balance Sheet

Fair values of derivative instruments in the consolidated balance sheet at October 31 were as follows (in millions of dollars):

	2012		2011
Receivable from John Deere
Designated as hedging instruments:
Interest rate contracts	$	314.2	$	133.1
Cross-currency interest rate contracts	8.7
Total designated	322.9		133.1
Not designated as hedging instruments:
Interest rate contracts	41.6		35.3
Cross-currency interest rate contracts	1.2		.9
Total not designated	42.8		36.2
Other Assets
Designated as hedging instruments:
Interest rate contracts	197.0		237.2
Not designated as hedging instruments:
Interest rate contracts	30.6		31.4
Foreign exchange contracts	1.9
Cross-currency interest rate contracts	.3		1.6
Total not designated	32.8		33.0
Total derivatives	$	595.5	$	439.5
Other Payables to John Deere
Designated as hedging instruments:
Interest rate contracts	$	11.8	$	13.4
Cross-currency interest rate contracts	2.2		1.4
Total designated	14.0		14.8
Not designated as hedging instruments:
Interest rate contracts	13.5		6.2
Cross-currency interest rate contracts	.7
Total not designated	14.2		6.2
Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Cross-currency interest rate contracts	56.3		5.5
Not designated as hedging instruments:
Interest rate contracts	41.3		37.0
Foreign exchange contracts	5.4		47.6
Cross-currency interest rate contracts	.1		.2
Total not designated	46.8		84.8
Total derivatives	$	131.3	$	111.3

Derivative Instruments Effect on Consolidated Income

The classification and gains (losses) including accrued interest expense related to derivative instruments on the statement of consolidated income consisted of the following (in millions of dollars):

	Expense or OCI Classification	2012			2011			2010
Fair Value Hedges
Interest rate contracts	Interest expense	$	332.4		$	177.3		$	337.8
Cash Flow Hedges
Recognized in OCI
(Effective Portion):
Interest rate contracts	OCI (pretax) *	(22.1		)	(4.7		)	(14.0		)
Foreign exchange contracts	OCI (pretax) *	(38.4		)	36.1			(41.8		)
Reclassified from OCI
(Effective Portion):
Interest rate contracts	Interest expense *	(13.1		)	(20.2		)	(67.2		)
Foreign exchange contracts	Administrative and operating expenses *	(42.3		)	19.3			(11.2		)
Recognized Directly in Income
(Ineffective Portion)		**			**			**
Not Designated as Hedges
Interest rate contracts	Interest expense *	$	(8.6	)	$	(.1	)	$	32.2
Foreign exchange contracts	Administrative and operating expenses *	7.7			(78.3		)	(80.1		)
Total not designated		$	(.9	)	$	(78.4	)	$	(47.9	)

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

**The amount is not significant.