Fair Value Measurements (Tables)

9 Months Ended

Jul. 31, 2016

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, 2016				October 31, 2015				July 31, 2015
	Carrying		Fair		Carrying		Fair		Carrying		Fair
	Value		Value *		Value		Value *		Value		Value *
Receivables financed – net	$	22,812.7	$	22,778.8	$	24,148.0	$	24,126.5	$	25,525.1	$	25,455.9
Retail notes securitized – net		5,947.4		5,939.1		4,834.6		4,820.5		4,737.8		4,709.1
Securitization borrowings		5,728.9		5,733.3		4,590.0		4,590.2		4,595.4		4,596.0
Current maturities of long‑term borrowings		4,765.2		4,781.6		4,465.4		4,478.7		3,730.3		3,736.7
Long‑term borrowings		16,947.2		17,178.6		16,980.5		17,007.6		16,659.0		16,756.8

*    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
	2016		2015		2015
Receivables from John Deere
Derivatives:
Interest rate contracts	$	395.5	$	241.6	$	212.4
Cross-currency interest rate contracts		11.8		11.5		12.7
Other assets
Derivatives:
Interest rate contracts		72.0		83.7		102.5
Foreign exchange contracts		8.7		11.3		8.2
Total assets *	$	488.0	$	348.1	$	335.8
Other payables to John Deere
Derivatives:
Interest rate contracts	$	19.3	$	22.4	$	38.4
Cross-currency interest rate contracts				.1
Accounts payable and accrued expenses
Derivatives:
Interest rate contracts		18.4		19.8		23.1
Foreign exchange contracts		5.3		5.6		2.6
Total liabilities	$	43.0	$	47.9	$	64.1

*    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 from Impairments

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

	Fair Value						(Gains) / Losses
							ThreeMonthsEnded				Nine Months Ended
	July 31		October 31		July 31		July 31				July 31
	2016		2015		2015		2016		2015		2016		2015
Receivables:
Retail notes	$	10.1			$	3.8	$	1.3	$	(1.0)	$	2.9	$	(1.0)
Revolving charge accounts										(.2)				(.2)
Wholesale receivables		9.1	$	8.7								.3
Financing leases				.6								(.1)
Equipment on operating leases – net				478.7								29.6
Other assets				96.2								20.1
Total	$	19.2	$	584.2	$	3.8	$	1.3	$	(1.2)	$	52.8	$	(1.2)