Allowance for Credit Losses and Credit Quality of Receivables (Tables)

12 Months Ended

Oct. 31, 2016

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, 2016 was as follows (in millions of dollars):

					90 Days or
	30-59 Days		60-89 Days		Greater		Total
	Past Due		Past Due		Past Due		Past Due
Retail notes:
Agriculture and turf	$	106.3	$	51.0	$	59.6	$	216.9
Construction and forestry		73.6		32.4		25.1		131.1
Revolving charge accounts:
Agriculture and turf		12.9		3.5		2.1		18.5
Construction and forestry		2.4		.7		.4		3.5
Wholesale receivables:
Agriculture and turf		5.5		1.3		1.5		8.3
Construction and forestry						1.4		1.4
Financing leases:
Agriculture and turf		8.8		4.6		3.6		17.0
Construction and forestry		2.8		1.6		.2		4.6
Total Receivables	$	212.3	$	95.1	$	93.9	$	401.3

	Total		Total Non-				Total
	Past Due		Performing		Current		Receivables
Retail notes:
Agriculture and turf	$	216.9	$	90.2	$	14,658.7	$	14,965.8
Construction and forestry		131.1		23.7		2,347.6		2,502.4
Revolving charge accounts:
Agriculture and turf		18.5		1.3		2,979.2		2,999.0
Construction and forestry		3.5				76.0		79.5
Wholesale receivables:
Agriculture and turf		8.3		.3		5,530.7		5,539.3
Construction and forestry		1.4				1,021.8		1,023.2
Financing leases:
Agriculture and turf		17.0		6.1		409.0		432.1
Construction and forestry		4.6		2.6		166.0		173.2
Total Receivables	$	401.3	$	124.2	$	27,189.0	$	27,714.5

An age analysis of past due Receivables that are still accruing interest and non-performing Receivables at October 31, 2015 was as follows (in millions of dollars):

					90 Days or
	30-59 Days		60-89 Days		Greater		Total
	Past Due		Past Due		Past Due		Past Due
Retail notes:
Agriculture and turf	$	100.2	$	48.8	$	43.3	$	192.3
Construction and forestry		61.7		28.5		12.1		102.3
Revolving charge accounts:
Agriculture and turf		11.4		5.1		.8		17.3
Construction and forestry		2.1		.8		.3		3.2
Wholesale receivables:
Agriculture and turf		2.0		2.1		.6		4.7
Construction and forestry		.8				1.4		2.2
Financing leases:
Agriculture and turf		12.3		5.7		2.2		20.2
Construction and forestry		2.8		.7		.4		3.9
Total Receivables	$	193.3	$	91.7	$	61.1	$	346.1

	Total		Total Non-				Total
	Past Due		Performing		Current		Receivables
Retail notes:
Agriculture and turf	$	192.3	$	45.8	$	15,956.8	$	16,194.9
Construction and forestry		102.3		17.0		2,344.8		2,464.1
Revolving charge accounts:
Agriculture and turf		17.3		1.8		2,579.5		2,598.6
Construction and forestry		3.2		.1		78.9		82.2
Wholesale receivables:
Agriculture and turf		4.7		10.3		5,981.2		5,996.2
Construction and forestry		2.2				1,187.1		1,189.3
Financing leases:
Agriculture and turf		20.2		8.2		360.8		389.2
Construction and forestry		3.9		3.3		170.7		177.9
Total Receivables	$	346.1	$	86.5	$	28,659.8	$	29,092.4

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):

			Revolving
	Retail		Charge		Wholesale				Total
	Notes		Accounts		Receivables		Other		Receivables
2016
Allowance:
Beginning of year balance	$	53.3	$	39.7	$	8.1	$	8.7	$	109.8
Provision for credit losses		27.3		35.8		3.1		2.6		68.8
Write-offs		(29.9)		(54.3)		(4.1)		(3.0)		(91.3)
Recoveries		5.8		18.5		.1		.5		24.9
Other changes (primarily translation adjustments)		(.2)						(.3)		(.5)
End of year balance	$	56.3	$	39.7	$	7.2	$	8.5	$	111.7
Balance individually evaluated *	$	2.3			$	.2	$	.1	$	2.6
Receivables:
End of year balance	$	17,468.2	$	3,078.5	$	6,562.5	$	605.3	$	27,714.5
Balance individually evaluated *	$	44.5	$	8.4	$	.8	$	.6	$	54.3

*  Remainder is collectively evaluated.

2015
Allowance:
Beginning of year balance	$	56.1	$	39.9	$	7.6	$	8.8	$	112.4
Provision for credit losses		9.4		20.7		.6		1.6		32.3
Write-offs		(17.8)		(36.2)		(.3)		(1.6)		(55.9)
Recoveries		6.5		15.3		.6		.2		22.6
Other changes (primarily translation adjustments)		(.9)				(.4)		(.3)		(1.6)
End of year balance	$	53.3	$	39.7	$	8.1	$	8.7	$	109.8
Balance individually evaluated *					$	1.0	$	.2	$	1.2
Receivables:
End of year balance	$	18,659.0	$	2,680.8	$	7,185.5	$	567.1	$	29,092.4
Balance individually evaluated *	$	20.2	$	.2	$	10.9	$	.8	$	32.1

*  Remainder is collectively evaluated.

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.

Analysis of Impaired Receivables

An analysis of impaired Receivables at October 31, 2016 and 2015 was as follows (in millions of dollars):

			Unpaid				Average
	Recorded		Principal		Specific		Recorded
	Investment		Balance		Allowance		Investment
2016 *
Receivables with specific allowance:
Retail notes	$	10.2	$	9.9	$	2.3	$	10.6
Wholesale receivables		.3		.3		.2		1.5
Financing leases		.4		.3		.1		.4
Total with specific allowance		10.9		10.5		2.6		12.5
Receivables without specific allowance:
Retail notes		9.5		9.4				10.6
Wholesale receivables		.2		.2				.3
Total without specific allowance		9.7		9.6				10.9
Total	$	20.6	$	20.1	$	2.6	$	23.4
Agriculture and turf	$	11.9	$	11.6	$	1.9	$	10.2
Construction and forestry		8.7		8.5		.7		13.2
Total	$	20.6	$	20.1	$	2.6	$	23.4
2015 *
Receivables with specific allowance:
Wholesale receivables	$	9.7	$	9.7	$	1.0	$	9.7
Financing leases		.8		.7		.2		.7
Total with specific allowance		10.5		10.4		1.2		10.4
Receivables without specific allowance:
Retail notes		9.5		9.5				11.8
Wholesale receivables		.6		.6				.7
Total without specific allowance		10.1		10.1				12.5
Total	$	20.6	$	20.5	$	1.2	$	22.9
Agriculture and turf	$	16.9	$	16.8	$	1.0	$	18.0
Construction and forestry		3.7		3.7		.2		4.9
Total	$	20.6	$	20.5	$	1.2	$	22.9

*  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):

	2016				2015				2014
	Dollars		Percent		Dollars		Percent		Dollars		Percent
Write-offs:
Retail notes:
Agriculture and turf	$	(10.5)	(.07)	%	$	(9.5)	(.06)	%	$	(6.1)	(.04)	%
Construction and forestry		(19.4)	(.79)			(8.3)	(.35)			(6.6)	(.33)
Total retail notes		(29.9)	(.17)			(17.8)	(.10)			(12.7)	(.07)
Revolving charge accounts		(54.3)	(2.13)			(36.2)	(1.58)			(24.6)	(1.11)
Wholesale receivables		(4.1)	(.05)			(.3)				(7.7)	(.09)
Financing leases		(3.0)	(.54)			(1.6)	(.29)			(.5)	(.09)
Operating loans										(.2)	(1.45)
Total write-offs		(91.3)	(.32)			(55.9)	(.19)			(45.7)	(.16)
Recoveries:
Retail notes:
Agriculture and turf		4.3	.03			4.7	.03			3.3	.02
Construction and forestry		1.5	.06			1.8	.08			2.2	.11
Total retail notes		5.8	.03			6.5	.03			5.5	.03
Revolving charge accounts		18.5	.73			15.3	.68			14.3	.65
Wholesale receivables		.1				.6	.01			.1
Financing leases		.5	.09			.2	.04			.2	.04
Operating loans										.1	.73
Total recoveries		24.9	.09			22.6	.08			20.2	.07
Total net write-offs	$	(66.4)	(.23)	%	$	(33.3)	(.11)	%	$	(25.5)	(.09)	%