Fair Value Measurements (Tables)

12 Months Ended

Oct. 29, 2017

The fair values of financial instruments that do not approximate the carrying values at October 29, 2017 and October 30, 2016 were as follows (in millions of dollars):


	2017				2016
	Carrying		Fair		Carrying		Fair
	Value		Value *		Value		Value *
Receivables financed – net	$	24,123.1	$	24,016.0	$	22,476.3	$	22,429.5
Retail notes securitized – net		4,158.8		4,129.6		5,126.5		5,114.2
Securitization borrowings		4,118.7		4,118.4		4,997.8		5,004.9
Current maturities of long-term borrowings		5,056.9		5,080.6		4,509.3		4,530.0
Long-term borrowings		17,534.4		17,763.6		16,536.5		16,724.5

* 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 October 29, 2017 and October 30, 2016 at fair value as Level 2 measurements on a recurring basis were as follows (in millions of dollars):


	2017		2016

Receivables from John Deere
Derivatives:
Interest rate contracts	$	85.4	$	241.8
Cross-currency interest rate contracts		5.6		10.2
Other assets
Derivatives:
Interest rate contracts		8.1		35.3
Foreign exchange contracts		24.6		13.8
Total assets *	$	123.7	$	301.1

Other payables to John Deere
Derivatives:
Interest rate contracts	$	125.6	$	24.0
Cross-currency interest rate contracts		.9
Accounts payable and accrued expenses
Derivatives:
Foreign exchange contracts		6.0		4.3
Total liabilities	$	132.5	$	28.3

* 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 at October 29, 2017 and October 30, 2016 were as follows (in millions of dollars):


	Fair Value			Losses *
	2017	2016		2017	2016		2015
Equipment on operating leases - net		$	654.4		$	31.1	$	10.3
Other assets			184.0			28.6		9.1
Total		$	838.4		$	59.7	$	19.4

* See Receivables with specific allowances in Note 5. Losses were not significant. See Note 7 for impairments on lease residual values.