Fair Value Measurements (Tables)

6 Months Ended

Apr. 30, 2013

Fair Value Measurements

Fair Value of Financial Instruments

The fair values of financial instruments that do not approximate the carrying values were as follows (in millions of dollars):

	April 30, 2013				October 31, 2012				April 30, 2012
	Carrying Value		Fair Value *		Carrying Value		Fair Value *		Carrying Value		Fair Value *
Receivables financed – net	$	23,430	$	23,391	$	21,472	$	21,455	$	20,245	$	20,256
Retail notes securitized – net	3,788		3,785		3,618		3,615		3,116		3,124
Securitization borrowings	3,788		3,794		3,575		3,584		3,033		3,041
Current maturities of long-term borrowings	4,262		4,320		3,913		3,947		4,581		4,636
Long-term borrowings	14,142		14,327		14,770		15,048		13,214		13,505

*  Fair value measurements above were Level 3 for all Receivables and Level 2 for all borrowings.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value as Level 2 measurements on a recurring basis were as follows (in millions of dollars):

	April 30,		October 31,		April 30,
	2013		2012		2012
Receivables from John Deere
Derivatives:
Interest rate contracts	$	368.7	$	355.8	$	255.9
Cross-currency interest rate contracts			9.9		6.9
Other assets
Derivatives:
Interest rate contracts	196.0		227.6		236.4
Foreign exchange contracts	5.3		1.9		3.3
Cross-currency interest rate contracts			.3		.8
Total assets *	$	570.0	$	595.5	$	503.3
Other payables to John Deere
Derivatives:
Interest rate contracts	$	21.9	$	25.3	$	10.3
Cross-currency interest rate contracts	5.6		2.9		2.2
Accounts payable and accrued expenses
Derivatives:
Interest rate contracts	38.4		41.3		40.0
Foreign exchange contracts	10.9		5.4		6.6
Cross-currency interest rate contracts	48.6		56.4		40.4
Total liabilities	$	125.4	$	131.3	$	99.5

* Excluded from this table are the Company’s cash equivalents, which were carried at cost that approximates fair value. The cash equivalents consist primarily of money market funds that were Level 1 measurements.

Fair Value, Nonrecurring, Level 3 Measurements

Fair value, nonrecurring, Level 3 measurements were as follows (in millions of dollars):

	Fair Value *						Losses
							Six Months Ended
	April 30,		October 31,		April 30,		April 30
	2013		2012		2012		2013		2012
Receivables:
Wholesale receivables			$	.1	$	.5	$	.1	$	.5
Operating loans	$	15.0					3.7
Total Receivables	$	15.0	$	.1	$	.5	$	3.8	$	.5

* Does not include cost to sell.