Fair Value Measurements (Tables)

9 Months Ended

Aug. 02, 2020

Fair Value Measurements

Fair Value of Financial Instruments

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

	August 2, 2020				November 3, 2019				July 28, 2019
	Carrying		Fair		Carrying		Fair		Carrying		Fair
	Value		Value *		Value		Value *		Value		Value *
Receivables financed – net	$	28,076.5	$	28,275.8	$	28,382.5	$	28,396.6	$	28,155.1	$	28,165.9
Retail notes securitized – net		5,432.2		5,543.9		4,338.4		4,361.9		5,146.2		5,154.2
Securitization borrowings		5,324.1		5,380.7		4,277.0		4,301.7		4,994.8		5,017.6
Current maturities of long-term borrowings		4,910.2		4,958.2		5,716.6		5,727.9		6,269.5		6,276.3
Long-term borrowings		20,492.1		21,038.2		21,052.4		21,369.9		20,035.4		20,298.1

*    Fair value measurements above were Level 3 for all Receivables and Level 2 for all borrowings.

Assets and Liabilities Measured at Fair Value as Level 2 Measurements 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):

	August 2		November 3		July 28
	2020		2019		2019
Marketable securities
International debt securities	$	2.4	$	3.2	$	6.9
Receivables from John Deere
Derivatives:
Interest rate contracts		795.4		331.4		234.4
Cross-currency interest rate contracts		9.1		.5		.9
Other assets
Derivatives:
Interest rate contracts						.1
Foreign exchange contracts		3.7		1.9		4.7
Total assets *	$	810.6	$	337.0	$	247.0
Other payables to John Deere
Derivatives:
Interest rate contracts	$	42.5	$	44.4	$	53.3
Cross-currency interest rate contracts		.1		3.0		2.0
Accounts payable and accrued expenses
Derivatives:
Foreign exchange contracts		6.2		9.9		5.6
Total liabilities	$	48.8	$	57.3	$	60.9

*    Excluded from this table were the Company’s cash equivalents, which were carried at cost that approximates fair value. The cash equivalents consist primarily of time deposits and money market funds.

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
	August 2	November 3		July 28	August 2	July 28	August 2		July 28
	2020	2019		2019	2020	2019	2020		2019
Equipment on operating leases – net		$	855.4				$	21.0
Other assets			141.9					9.8
Total		$	997.3				$	30.8

*    See Receivables with specific allowances in Note 4 that were not significant. See Note 6 for impairments on lease residual values.