XML 63 R35.htm IDEA: XBRL DOCUMENT v2.4.1.9
Allowance for Credit Losses and Credit Quality of Receivables (Tables)
 12 Months Ended
Oct. 31, 2014
Allowance for Credit Losses and Credit Quality of Receivables  
Age Analysis of Past Due Receivables that are Still Accruing Interest and Non-performing Receivables

An age analysis of past due Receivables that are still accruing interest and non-performing Receivables at October 31, 2014 was as follows (in millions of dollars):

 

 

 

30-59 Days
Past Due

 

60-89 Days
Past Due

 

90 Days or
Greater
Past Due

 

Total
Past Due

 

Retail notes:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

$

85.0

 

$

30.8

 

$

24.0

 

$

139.8

 

Construction and forestry equipment

 

53.6

 

15.6

 

7.0

 

76.2

 

Revolving charge accounts:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

11.3

 

3.7

 

.9

 

15.9

 

Construction and forestry equipment

 

2.4

 

1.2

 

.3

 

3.9

 

Wholesale receivables:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

4.1

 

3.4

 

4.5

 

12.0

 

Construction and forestry equipment

 

.2

 

 

 

1.5

 

1.7

 

Financing leases:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

7.5

 

5.1

 

.6

 

13.2

 

Construction and forestry equipment

 

2.5

 

.8

 

.2

 

3.5

 

Total Receivables

 

$

166.6

 

$

60.6

 

$

39.0

 

$

266.2

 

 

 

 

Total
Past Due

 

Total Non-
Performing

 

Current

 

Total
Receivables

 

Retail notes:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

$

139.8

 

$

41.8

 

$

17,023.9

 

$

17,205.5

 

Construction and forestry equipment

 

76.2

 

14.3

 

2,165.3

 

2,255.8

 

Revolving charge accounts:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

15.9

 

1.1

 

2,437.0

 

2,454.0

 

Construction and forestry equipment

 

3.9

 

.1

 

77.9

 

81.9

 

Wholesale receivables:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

12.0

 

1.1

 

6,961.0

 

6,974.1

 

Construction and forestry equipment

 

1.7

 

 

 

943.3

 

945.0

 

Financing leases:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

13.2

 

11.5

 

396.0

 

420.7

 

Construction and forestry equipment

 

3.5

 

1.3

 

164.1

 

168.9

 

Total Receivables

 

$

266.2

 

$

71.2

 

$

30,168.5

 

$

30,505.9

 

 

An age analysis of past due Receivables that are still accruing interest and non-performing Receivables at October 31, 2013 was as follows (in millions of dollars):

 

 

 

30-59 Days
Past Due

 

60-89 Days
Past Due

 

90 Days or
Greater
Past Due

 

Total
Past Due

 

Retail notes:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

$

67.8

 

$

23.3

 

$

17.1

 

$

108.2

 

Construction and forestry equipment

 

38.4

 

14.4

 

8.6

 

61.4

 

Revolving charge accounts:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

14.6

 

4.5

 

2.2

 

21.3

 

Construction and forestry equipment

 

2.3

 

1.0

 

.5

 

3.8

 

Wholesale receivables:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

10.0

 

4.9

 

3.0

 

17.9

 

Construction and forestry equipment

 

.3

 

.1

 

.9

 

1.3

 

Financing leases:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

10.2

 

4.0

 

2.3

 

16.5

 

Construction and forestry equipment

 

2.2

 

.5

 

 

 

2.7

 

Operating loans:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

.1

 

 

 

 

 

.1

 

Total Receivables

 

$

145.9

 

$

52.7

 

$

34.6

 

$

233.2

 

 

 

 

Total
Past Due

 

Total Non-
Performing

 

Current

 

Total
Receivables

 

Retail notes:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

$

108.2

 

$

34.1

 

$

16,359.3

 

$

16,501.6

 

Construction and forestry equipment

 

61.4

 

11.4

 

1,672.1

 

1,744.9

 

Revolving charge accounts:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

21.3

 

.9

 

2,438.0

 

2,460.2

 

Construction and forestry equipment

 

3.8

 

 

 

70.9

 

74.7

 

Wholesale receivables:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

17.9

 

.3

 

6,541.1

 

6,559.3

 

Construction and forestry equipment

 

1.3

 

 

 

904.1

 

905.4

 

Financing leases:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

16.5

 

11.0

 

379.0

 

406.5

 

Construction and forestry equipment

 

2.7

 

2.0

 

144.1

 

148.8

 

Operating loans:

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

.1

 

.3

 

31.5

 

31.9

 

Total Receivables

 

$

233.2

 

$

60.0

 

$

28,540.1

 

$

28,833.3

 

 
Analysis of the Allowance for Credit Losses and Investment in Receivables

An analysis of the allowance for credit losses and investment in Receivables was as follows (in millions of dollars):

 

 

 

Retail
Notes

 

Revolving
Charge
Accounts

 

Wholesale
Receivables

 

Other

 

Total
Receivables

 

2014

 

 

 

 

 

 

 

 

 

 

 

Allowance:

 

 

 

 

 

 

 

 

 

 

 

Beginning of year balance

 

$

50.7

 

$

39.7

 

$

6.4

 

$

14.6

 

$

111.4

 

Provision (credit) for credit losses

 

13.2

 

10.5

 

9.0

 

(5.4

)

27.3

 

Write-offs

 

(12.7

)

(24.6

)

(7.7

)

(.7

)

(45.7

)

Recoveries

 

5.5

 

14.3

 

.1

 

.3

 

20.2

 

Other changes (primarily translation adjustments)

 

(.6

)

 

 

(.2

)

 

 

(.8

)

End of year balance

 

$

56.1

 

$

39.9

 

$

7.6

 

$

8.8

 

$

112.4

 

Balance individually evaluated *

 

$

1.7

 

$

.2

 

$

.1

 

 

 

$

2.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

 

 

 

 

 

 

End of year balance

 

$

19,461.3

 

$

2,535.9

 

$

7,919.1

 

$

589.6

 

$

30,505.9

 

Balance individually evaluated *

 

$

24.5

 

$

.2

 

$

1.2

 

 

 

$

25.9

 

 

 

*                      Remainder is collectively evaluated.

 

2013

 

 

 

 

 

 

 

 

 

 

 

Allowance:

 

 

 

 

 

 

 

 

 

 

 

Beginning of year balance

 

$

56.4

 

$

40.2

 

$

5.9

 

$

11.5

 

$

114.0

 

Provision (credit) for credit losses

 

(1.9

)

4.0

 

.1

 

4.2

 

6.4

 

Write-offs

 

(9.4

)

(19.8

)

(.3

)

(1.9

)

(31.4

)

Recoveries

 

5.9

 

15.3

 

.2

 

1.1

 

22.5

 

Other changes (primarily translation adjustments)

 

(.3

)

 

 

.5

 

(.3

)

(.1

)

End of year balance

 

$

50.7

 

$

39.7

 

$

6.4

 

$

14.6

 

$

111.4

 

Balance individually evaluated *

 

 

 

 

 

$

.1

 

$

3.7

 

$

3.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

 

 

 

 

 

 

End of year balance

 

$

18,246.5

 

$

2,534.9

 

$

7,464.7

 

$

587.2

 

$

28,833.3

 

Balance individually evaluated *

 

$

21.3

 

$

.3

 

$

.1

 

$

32.3

 

$

54.0

 

 

 

*                      Remainder is collectively evaluated.

 

2012

 

 

 

 

 

 

 

 

 

 

 

Allowance:

 

 

 

 

 

 

 

 

 

 

 

Beginning of year balance

 

$

67.8

 

$

39.7

 

$

6.0

 

$

12.8

 

$

126.3

 

Provision (credit) for credit losses

 

(10.4

)

7.9

 

.9

 

1.4

 

(.2

)

Write-offs

 

(7.4

)

(28.8

)

(1.0

)

(3.5

)

(40.7

)

Recoveries

 

6.8

 

21.4

 

.1

 

.8

 

29.1

 

Other changes (primarily translation adjustments)

 

(.4

)

 

 

(.1

)

 

 

(.5

)

End of year balance

 

$

56.4

 

$

40.2

 

$

5.9

 

$

11.5

 

$

114.0

 

Balance individually evaluated *

 

 

 

$

.5

 

$

.1

 

 

 

$

.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

 

 

 

 

 

 

End of year balance

 

$

15,728.8

 

$

2,427.7

 

$

6,483.1

 

$

564.7

 

$

25,204.3

 

Balance individually evaluated *

 

$

10.6

 

$

.5

 

$

.2

 

$

.3

 

$

11.6

 

 

 

*                      Remainder is collectively evaluated.

 
Analysis of Impaired Receivables

An analysis of impaired Receivables at October 31, 2014 and 2013 was as follows (in millions of dollars):

 

 

 

Recorded
Investment

 

Unpaid
Principal
Balance

 

Specific
Allowance

 

Average
Recorded
Investment

 

2014 *

 

 

 

 

 

 

 

 

 

Receivables with specific allowance:

 

 

 

 

 

 

 

 

 

Retail notes

 

$

7.0

 

$

6.9

 

$

1.7

 

$

8.4

 

Revolving charge accounts

 

.2

 

.2

 

.2

 

.2

 

Wholesale receivables

 

.1

 

.1

 

.1

 

.1

 

Total with specific allowance

 

7.3

 

7.2

 

2.0

 

8.7

 

 

 

 

 

 

 

 

 

 

 

Receivables without specific allowance:

 

 

 

 

 

 

 

 

 

Retail notes

 

5.9

 

5.7

 

 

 

6.1

 

Total without specific allowance

 

5.9

 

5.7

 

 

 

6.1

 

Total

 

$

13.2

 

$

12.9

 

$

2.0

 

$

14.8

 

 

 

 

 

 

 

 

 

 

 

Agriculture and turf

 

$

11.7

 

$

11.4

 

$

2.0

 

$

13.0

 

Construction and forestry

 

1.5

 

1.5

 

 

 

1.8

 

Total

 

$

13.2

 

$

12.9

 

$

2.0

 

$

14.8

 

 

2013 *

 

 

 

 

 

 

 

 

 

Receivables with specific allowance:

 

 

 

 

 

 

 

 

 

Wholesale receivables

 

$

.1

 

$

.1

 

$

.1

 

$

.2

 

Operating loans

 

18.0

 

17.9

 

3.7

 

18.8

 

Total with specific allowance

 

18.1

 

18.0

 

3.8

 

19.0

 

 

 

 

 

 

 

 

 

 

 

Receivables without specific allowance:

 

 

 

 

 

 

 

 

 

Retail notes

 

7.2

 

7.1

 

 

 

8.0

 

Total without specific allowance

 

7.2

 

7.1

 

 

 

8.0

 

Total

 

$

25.3

 

$

25.1

 

$

3.8

 

$

27.0

 

 

 

 

 

 

 

 

 

 

 

Agriculture and turf

 

$

23.2

 

$

23.0

 

$

3.8

 

$

24.6

 

Construction and forestry

 

2.1

 

2.1

 

 

 

2.4

 

Total

 

$

25.3

 

$

25.1

 

$

3.8

 

$

27.0

 

 

 

*                 Finance income recognized was not material.

 
Total Receivable Write-offs and Recoveries, by Product, and as a Percentage of Average Balances Held

Total Receivable write-offs and recoveries, by product, and as a percentage of average balances held during the year, were as follows (in millions of dollars):

 

 

 

2014

 

2013

 

2012

 

 

 

Dollars

 

Percent

 

Dollars

 

Percent

 

Dollars

 

Percent

 

Write-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail notes:

 

 

 

 

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

$

(6.1

)

(.04

)%

$

(4.3

)

(.03

)%

$

(3.4

)

(.03

)%

Construction and forestry equipment

 

(6.6

)

(.33

)

(5.1

)

(.33

)

(4.0

)

(.32

)

Total retail notes

 

(12.7

)

(.07

)

(9.4

)

(.06

)

(7.4

)

(.05

)

Revolving charge accounts

 

(24.6

)

(1.11

)

(19.8

)

(.89

)

(28.8

)

(1.29

)

Wholesale receivables

 

(7.7

)

(.09

)

(.3

)

(.00

)

(1.0

)

(.02

)

Financing leases

 

(.5

)

(.09

)

(1.8

)

(.34

)

(1.6

)

(.34

)

Operating loans

 

(.2

)

(1.45

)

(.1

)

(.25

)

(1.9

)

(3.12

)

Total write-offs

 

(45.7

)

(.16

)

(31.4

)

(.12

)

(40.7

)

(.18

)

Recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail notes:

 

 

 

 

 

 

 

 

 

 

 

 

 

Agriculture and turf equipment

 

3.3

 

.02

 

3.6

 

.03

 

3.9

 

.03

 

Construction and forestry equipment

 

2.2

 

.11

 

2.3

 

.15

 

2.9

 

.23

 

Total retail notes

 

5.5

 

.03

 

5.9

 

.04

 

6.8

 

.05

 

Revolving charge accounts

 

14.3

 

.65

 

15.3

 

.69

 

21.4

 

.96

 

Wholesale receivables

 

.1

 

.00

 

.2

 

.00

 

.1

 

.00

 

Financing leases

 

.2

 

.04

 

.5

 

.09

 

.3

 

.06

 

Operating loans

 

.1

 

.73

 

.6

 

1.50

 

.5

 

.82

 

Total recoveries

 

20.2

 

.07

 

22.5

 

.09

 

29.1

 

.13

 

Total net write-offs

 

$

(25.5

)

(.09

)

$

(8.9

)

(.03

)

$

(11.6

)

(.05

)