Fair Value Measurements (Tables)

9 Months Ended

Jul. 30, 2017

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


	July 30, 2017				October 30, 2016				July 31, 2016
	Carrying		Fair		Carrying		Fair		Carrying		Fair
	Value		Value *		Value		Value *		Value		Value *
Receivables financed – net	$	23,543.2	$	23,458.2	$	22,476.3	$	22,429.5	$	22,812.7	$	22,778.8
Retail notes securitized – net		4,922.9		4,891.7		5,126.5		5,114.2		5,947.4		5,939.1
Securitization borrowings		4,780.9		4,786.4		4,997.8		5,004.9		5,722.6		5,733.3
Current maturities of long-term borrowings		4,272.7		4,296.2		4,509.3		4,530.0		4,763.9		4,781.6
Long-term borrowings		16,679.7		16,910.6		16,536.5		16,724.5		16,913.0		17,178.6

* 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 30		October 30		July 31
	2017		2016		2016
Receivables from John Deere
Derivatives:
Interest rate contracts	$	108.8	$	241.8	$	395.5
Cross-currency interest rate contracts		3.9		10.2		11.8
Other assets
Derivatives:
Interest rate contracts		14.0		35.3		72.0
Foreign exchange contracts		2.0		13.8		8.7
Total assets *	$	128.7	$	301.1	$	488.0

Other payables to John Deere
Derivatives:
Interest rate contracts	$	76.0	$	24.0	$	19.3
Cross-currency interest rate contracts		3.8
Accounts payable and accrued expenses
Derivatives:
Interest rate contracts						18.4
Foreign exchange contracts		35.1		4.3		5.3
Total liabilities	$	114.9	$	28.3	$	43.0

* 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		Nine Months Ended
	July 30	October 30		July 31	July 30	July 31	July 30	July 31
	2017	2016		2016	2017	2016	2017	2016
Equipment on operating leases – net		$	654.4					$	29.6
Other assets			184.0						20.1
Total		$	838.4					$	49.7

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