Derivative Instruments (Tables)

12 Months Ended

Oct. 31, 2013

Derivative Instruments

Fair Value Hedge Interest Rate Contracts and Underlying Borrowings

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

	2013			2012
Interest rate contracts *	$	(237.5	)	$	186.5
Borrowings **	237.7			(187.8		)

* Includes changes in fair value of interest rate contracts excluding net accrued interest income of $146.6 million and $145.9 million during 2013 and 2012, respectively.

** Includes adjustments for fair values of hedged borrowings excluding accrued interest expense of $237.9 million and $257.8 million during 2013 and 2012, 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):

	2013		2012
Receivables from John Deere
Designated as hedging instruments:
Interest rate contracts	$	144.3	$	314.2
Cross-currency interest rate contracts			8.7
Total designated	144.3		322.9
Not designated as hedging instruments:
Interest rate contracts	31.2		41.6
Cross-currency interest rate contracts	1.1		1.2
Total not designated	32.3		42.8
Other Assets
Designated as hedging instruments:
Interest rate contracts	140.5		197.0
Not designated as hedging instruments:
Interest rate contracts	16.3		30.6
Foreign exchange contracts	1.0		1.9
Cross-currency interest rate contracts	.1		.3
Total not designated	17.4		32.8
Total derivatives	$	334.5	$	595.5
Other Payables to John Deere
Designated as hedging instruments:
Interest rate contracts	$	71.0	$	11.8
Cross-currency interest rate contracts	.4		2.2
Total designated	71.4		14.0
Not designated as hedging instruments:
Interest rate contracts	13.8		13.5
Cross-currency interest rate contracts	.7		.7
Total not designated	14.5		14.2
Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Cross-currency interest rate contracts	16.0		56.3
Not designated as hedging instruments:
Interest rate contracts	29.9		41.3
Foreign exchange contracts	15.8		5.4
Cross-currency interest rate contracts			.1
Total not designated	45.7		46.8
Total derivatives	$	147.6	$	131.3

Gains (Losses) Related to Derivative Instruments on Statement of Consolidated Income

The classifications 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	2013			2012			2011
Fair Value Hedges
Interest rate contracts	Interest expense	$	(90.9	)	$	332.4		$	177.3
Cash Flow Hedges
Recognized in OCI
(Effective Portion):
Interest rate contracts	OCI (pretax) *	(14.6		)	(22.1		)	(4.7		)
Foreign exchange contracts	OCI (pretax) *	47.9			(38.4		)	36.1
Reclassified from OCI
(Effective Portion):
Interest rate contracts	Interest expense *	(17.8		)	(13.1		)	(20.2		)
Foreign exchange contracts	Administrative and operating expenses *	39.3			(42.3		)	19.3
Recognized Directly in Income
(Ineffective Portion)		**			**			**
Not Designated as Hedges
Interest rate contracts	Interest expense *	$	(4.5	)	$	(8.6	)	$	(.1	)
Foreign exchange contracts	Administrative and operating expenses *	20.8			7.7			(78.3		)
Total not designated		$	16.3		$	(.9	)	$	(78.4	)

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

**   The amounts are not significant.