Fair Value Measurements (Tables)

6 Months Ended

Apr. 30, 2017

The fair values of financial instruments that do not approximate the carrying values were as follows (in millions of dollars):


	April 30, 2017				October 30, 2016				May 1, 2016
	Carrying		Fair		Carrying		Fair		Carrying		Fair
	Value		Value *		Value		Value *		Value		Value *
Receivables financed – net	$	23,349.7	$	23,264.6	$	22,476.3	$	22,429.5	$	24,476.3	$	24,432.8
Retail notes securitized – net		4,281.8		4,253.0		5,126.5		5,114.2		4,734.7		4,723.4
Securitization borrowings		4,224.6		4,225.4		4,997.8		5,004.9		4,636.7		4,641.8
Current maturities of long‑term borrowings		4,519.9		4,545.6		4,509.3		4,530.0		4,504.1		4,528.2
Long-term borrowings		15,962.3		16,150.7		16,536.5		16,724.5		17,434.0		17,625.9

* 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):


	April 30		October 30		May 1
	2017		2016		2016
Receivables from John Deere
Derivatives:
Interest rate contracts	$	115.4	$	241.8	$	329.1
Cross-currency interest rate contracts		7.3		10.2		9.2
Other assets
Derivatives:
Interest rate contracts		21.1		35.3		67.2
Foreign exchange contracts		10.1		13.8		4.5
Total assets *	$	153.9	$	301.1	$	410.0

Other payables to John Deere
Derivatives:
Interest rate contracts	$	83.5	$	24.0	$	21.4
Cross-currency interest rate contracts		1.8				1.0
Accounts payable and accrued expenses
Derivatives:
Interest rate contracts		15.2				16.9
Foreign exchange contracts				4.3		16.6
Total liabilities	$	100.5	$	28.3	$	55.9

* 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					Losses *
						Three Months Ended			Six Months Ended
	April 30	October 30		May 1		April 30	May 1		April 30	May 1
	2017	2016		2016		2017	2016		2017	2016
Equipment on operating leases – net		$	654.4	$	725.1		$	25.8		$	29.6
Other assets			184.0		165.6			11.3			20.1
Total		$	838.4	$	890.7		$	37.1		$	49.7

* See Receivables with specific allowances in Note 4. Losses were not significant.