Receivables (Tables)

9 Months Ended

Jul. 28, 2019

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 was as follows (in millions of dollars):

	July 28, 2019
					90 Days
	30-59 Days		60-89 Days		or Greater		Total
	Past Due		Past Due		Past Due		Past Due
Retail notes:
Agriculture and turf	$	107.7	$	53.0	$	2.8	$	163.5
Construction and forestry		82.3		33.6				115.9
Revolving charge accounts:
Agriculture and turf		22.4		5.1				27.5
Construction and forestry		3.9		1.4				5.3
Wholesale receivables:
Agriculture and turf		4.4		.2		.7		5.3
Construction and forestry		1.1		1.5		.2		2.8
Financing leases:
Agriculture and turf		11.9		13.3		.2		25.4
Construction and forestry		2.8		.5				3.3
Total Receivables	$	236.5	$	108.6	$	3.9	$	349.0

	Total		Total Non-				Total
	Past Due		Performing		Current		Receivables
Retail notes:
Agriculture and turf	$	163.5	$	173.2	$	15,139.6	$	15,476.3
Construction and forestry		115.9		115.6		2,888.8		3,120.3
Revolving charge accounts:
Agriculture and turf		27.5		10.0		3,662.4		3,699.9
Construction and forestry		5.3		1.4		92.1		98.8
Wholesale receivables:
Agriculture and turf		5.3		6.1		8,065.2		8,076.6
Construction and forestry		2.8		3.6		2,216.5		2,222.9
Financing leases:
Agriculture and turf		25.4		22.1		524.5		572.0
Construction and forestry		3.3		2.4		139.2		144.9
Total Receivables	$	349.0	$	334.4	$	32,728.3	$	33,411.7

	October 28, 2018
					90 Days
	30-59 Days		60-89 Days		or Greater		Total
	Past Due		Past Due		Past Due		Past Due
Retail notes:
Agriculture and turf	$	119.7	$	67.5	$	57.5	$	244.7
Construction and forestry		75.9		44.8		49.7		170.4
Revolving charge accounts:
Agriculture and turf		22.8		8.3		4.6		35.7
Construction and forestry		4.0		1.2		.8		6.0
Wholesale receivables:
Agriculture and turf		1.7		.4		1.1		3.2
Construction and forestry		1.2						1.2
Financing leases:
Agriculture and turf		9.9		6.1		2.3		18.3
Construction and forestry		1.7		1.1		.9		3.7
Total Receivables	$	236.9	$	129.4	$	116.9	$	483.2

	Total		Total Non-				Total
	Past Due		Performing		Current		Receivables
Retail notes:
Agriculture and turf	$	244.7	$	95.9	$	14,838.6	$	15,179.2
Construction and forestry		170.4		28.5		2,732.8		2,931.7
Revolving charge accounts:
Agriculture and turf		35.7		1.3		3,659.2		3,696.2
Construction and forestry		6.0				95.4		101.4
Wholesale receivables:
Agriculture and turf		3.2		7.3		6,135.5		6,146.0
Construction and forestry		1.2				1,820.4		1,821.6
Financing leases:
Agriculture and turf		18.3		8.4		597.5		624.2
Construction and forestry		3.7		.6		142.1		146.4
Total Receivables	$	483.2	$	142.0	$	30,021.5	$	30,646.7

	July 29, 2018
					90 Days
	30-59 Days		60-89 Days		or Greater		Total
	Past Due		Past Due		Past Due		Past Due
Retail notes:
Agriculture and turf	$	109.7	$	43.9	$	47.3	$	200.9
Construction and forestry		98.0		41.8		47.8		187.6
Revolving charge accounts:
Agriculture and turf		22.8		6.3		6.2		35.3
Construction and forestry		3.6		1.6		1.0		6.2
Wholesale receivables:
Agriculture and turf		2.4		.5		1.4		4.3
Construction and forestry		2.4		1.7				4.1
Financing leases:
Agriculture and turf		9.6		6.5		5.6		21.7
Construction and forestry		2.4		.8		.1		3.3
Total Receivables	$	250.9	$	103.1	$	109.4	$	463.4

	Total		Total Non-				Total
	Past Due		Performing		Current		Receivables
Retail notes:
Agriculture and turf	$	200.9	$	82.1	$	14,305.5	$	14,588.5
Construction and forestry		187.6		28.0		2,617.9		2,833.5
Revolving charge accounts:
Agriculture and turf		35.3		1.1		3,548.0		3,584.4
Construction and forestry		6.2				96.3		102.5
Wholesale receivables:
Agriculture and turf		4.3		5.2		7,372.1		7,381.6
Construction and forestry		4.1				1,664.6		1,668.7
Financing leases:
Agriculture and turf		21.7		6.1		556.9		584.7
Construction and forestry		3.3		1.4		138.7		143.4
Total Receivables	$	463.4	$	123.9	$	30,300.0	$	30,887.3

Analysis of the Allowance for Credit Losses and Investment in Receivables

Allowances for credit losses on Receivables are maintained in amounts considered to be appropriate in relation to the Receivables outstanding based on historical loss experience by product category, portfolio duration, delinquency trends, economic conditions in the Company’s major markets and geographies, and credit risk quality. An analysis of the allowance for credit losses and investment in Receivables was as follows (in millions of dollars):

	Three Months Ended
	July 28, 2019
			Revolving
	Retail		Charge		Wholesale		Financing		Total
	Notes		Accounts		Receivables		Leases		Receivables
Allowance:
Beginning of period balance	$	54.1	$	42.3	$	8.0	$	6.0	$	110.4
Provision (credit) for credit losses		5.5		17.9		(.3)		.3		23.4
Write-offs		(7.2)		(25.4)		(.1)		(.5)		(33.2)
Recoveries		1.8		7.5		.4		.1		9.8
End of period balance	$	54.2	$	42.3	$	8.0	$	5.9	$	110.4

	Nine Months Ended
	July 28, 2019
			Revolving
	Retail		Charge		Wholesale		Financing		Total
	Notes		Accounts		Receivables		Leases		Receivables
Allowance:
Beginning of period balance	$	51.6	$	42.3	$	8.0	$	4.8	$	106.7
Provision (credit) for credit losses		18.1		33.3		(4.0)		2.9		50.3
Write-offs		(20.4)		(50.8)		(.1)		(2.1)		(73.4)
Recoveries		5.0		17.5		4.0		.3		26.8
Translation adjustments		(.1)				.1
End of period balance	$	54.2	$	42.3	$	8.0	$	5.9	$	110.4
Balance individually evaluated *	$	2.0			$	2.9	$	.6	$	5.5
Receivables:
End of period balance	$	18,596.6	$	3,798.7	$	10,299.5	$	716.9	$	33,411.7
Balance individually evaluated *	$	60.8	$	.2	$	10.1	$	1.7	$	72.8

*    Remainder is collectively evaluated.

	Three Months Ended
	July 29, 2018
			Revolving
	Retail		Charge		Wholesale		Financing		Total
	Notes		Accounts		Receivables		Leases		Receivables
Allowance:
Beginning of period balance	$	56.6	$	39.7	$	9.9	$	8.6	$	114.8
Provision for credit losses		5.9		20.4		.8		.5		27.6
Write-offs		(6.3)		(25.1)		(.2)		(.8)		(32.4)
Recoveries		.8		4.7		.2		.3		6.0
Translation adjustments		(.2)				(.1)				(.3)
End of period balance	$	56.8	$	39.7	$	10.6	$	8.6	$	115.7

	Nine Months Ended
	July 29, 2018
			Revolving
	Retail		Charge		Wholesale		Financing		Total
	Notes		Accounts		Receivables		Leases		Receivables
Allowance:
Beginning of period balance	$	55.7	$	39.7	$	9.9	$	8.5	$	113.8
Provision for credit losses		12.0		28.8		1.1		1.8		43.7
Write-offs		(16.1)		(44.1)		(.6)		(2.3)		(63.1)
Recoveries		5.4		15.3		.1		.6		21.4
Translation adjustments		(.2)				.1				(.1)
End of period balance	$	56.8	$	39.7	$	10.6	$	8.6	$	115.7
Balance individually evaluated *	$	.1			$	3.3	$	.1	$	3.5
Receivables:
End of period balance	$	17,422.0	$	3,686.9	$	9,050.3	$	728.1	$	30,887.3
Balance individually evaluated *	$	55.5	$	.9	$	7.4	$	.2	$	64.0

*    Remainder is collectively evaluated.

Analysis of Impaired Receivables

An analysis of impaired Receivables was as follows (in millions of dollars):

			Unpaid				Average
	Recorded		Principal		Specific		Recorded
	Investment		Balance		Allowance		Investment
July 28, 2019 *
Receivables with specific allowance:
Retail notes	$	4.8	$	4.6	$	2.0	$	4.8
Wholesale receivables		5.3		5.3		2.9		5.8
Financing leases		.6		.5		.6		.6
Total with specific allowance		10.7		10.4		5.5		11.2
Receivables without specific allowance:
Retail notes		23.3		22.8				25.4
Wholesale receivables		4.8		4.8				4.3
Total without specific allowance		28.1		27.6				29.7
Total	$	38.8	$	38.0	$	5.5	$	40.9
Agriculture and turf	$	30.7	$	30.1	$	5.2	$	32.2
Construction and forestry		8.1		7.9		.3		8.7
Total	$	38.8	$	38.0	$	5.5	$	40.9
October 28, 2018 *
Receivables with specific allowance:
Retail notes	$	.8	$	.6	$	.1	$	.9
Wholesale receivables		5.8		5.8		2.8		6.7
Total with specific allowance		6.6		6.4		2.9		7.6
Receivables without specific allowance:
Retail notes		23.9		23.6				26.1
Wholesale receivables		2.4		2.4				2.6
Total without specific allowance		26.3		26.0				28.7
Total	$	32.9	$	32.4	$	2.9	$	36.3
Agriculture and turf	$	28.8	$	28.4	$	2.9	$	31.7
Construction and forestry		4.1		4.0				4.6
Total	$	32.9	$	32.4	$	2.9	$	36.3
July 29, 2018 *
Receivables with specific allowance:
Retail notes	$	.9	$	.8	$	.1	$	.9
Wholesale receivables		6.4		6.4		3.3		7.6
Financing leases		.2		.2		.1		.2
Total with specific allowance		7.5		7.4		3.5		8.7
Receivables without specific allowance:
Retail notes		24.9		24.7				26.6
Wholesale receivables		.2		.2				.3
Total without specific allowance		25.1		24.9				26.9
Total	$	32.6	$	32.3	$	3.5	$	35.6
Agriculture and turf	$	26.8	$	26.5	$	3.4	$	29.5
Construction and forestry		5.8		5.8		.1		6.1
Total	$	32.6	$	32.3	$	3.5	$	35.6

*    Finance income recognized was not material.