Fair Value Measurements (Tables)

9 Months Ended

Jul. 31, 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):

	July 31, 2013		October 31, 2012		July 31, 2012
	Carrying Value	Fair Value *	Carrying Value	Fair Value *	Carrying Value	Fair Value *
Receivables financed – net	$ 24,531	$ 24,434	$ 21,472	$ 21,455	$ 21,339	$ 21,328
Retail notes securitized – net	3,891	3,868	3,618	3,615	3,164	3,165
Securitization borrowings	3,780	3,778	3,575	3,584	3,028	3,038
Current maturities of long-term borrowings	3,741	3,779	3,913	3,947	3,632	3,667
Long-term borrowings	14,219	14,346	14,770	15,048	13,772	14,058

*  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):

		July 31		October 31		July 31
		2013		2012		2012
Receivables from John Deere
Derivatives:
Interest rate contracts		$	165.9	$	355.8	$	374.7
Cross-currency interest rate contracts		.8		9.9		14.6
Other assets
Derivatives:
Interest rate contracts		171.5		227.6		246.9
Foreign exchange contracts		.8		1.9		3.6
Cross-currency interest rate contracts				.3		.8
Total assets *		$	339.0	$	595.5	$	640.6
Other payables to John Deere
Derivatives:
Interest rate contracts		$	114.1	$	25.3	$	18.5
Cross-currency interest rate contracts		2.2		2.9		3.8
Accounts payable and accrued expenses
Derivatives:
Interest rate contracts		32.4		41.3		45.9
Foreign exchange contracts		13.9		5.4		15.9
Cross-currency interest rate contracts		38.3		56.4		83.2
Total liabilities		$	200.9	$	131.3	$	167.3
*	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
				Three Months Ended		Nine Months Ended
	July 31	October 31	July 31	July 31		July 31
	2013	2012	2012	2013	2012	2013	2012
Receivables:
Retail notes			$     .8		$    .3		$    .3
Wholesale receivables		$      .1				$    .1	.5
Operating loans	$    14.6					3.7
Total Receivables	$    14.6	$      .1	$     .8		$    .3	$  3.8	$    .8

* Does not include cost to sell.