Commitments and Contingencies	12 Months Ended
Nov. 01, 2020
Commitments and Contingencies
Commitments and Contingencies	Note 18. Commitments and Contingencies At November 1, 2020, John Deere Financial Inc., the John Deere finance subsidiary in Canada, had $1,914.0 million of medium-term notes outstanding, and a fair value liability of $60.4 million for derivatives outstanding, prior to considering applicable netting provisions, with a notional amount of $3,141.9 million that were guaranteed by Capital Corporation. The weighted average interest rate on the medium-term notes at November 1, 2020 was 2.4 percent with a maximum remaining maturity of approximately seven years. Capital Corporation has a variable interest in John Deere Canada Funding Inc. (JDCFI), a wholly-owned subsidiary of John Deere Financial Inc., which was created as a VIE to issue debt in public markets to fund the operations of affiliated companies in Canada. Capital Corporation has a variable interest in JDCFI because it provides guarantees for all debt issued by JDCFI, however it does not consolidate JDCFI because it does not have the power to direct the activities that most significantly impact JDCFI’s economic performance. Capital Corporation has no carrying value of assets or liabilities related to JDCFI. Its maximum exposure to loss is the amount of the debt issued by JDCFI and guaranteed by Capital Corporation, which was $1,088.3 million at November 1, 2020. The weighted average interest rate on the debt at November 1, 2020 was 2.5 percent with a maximum remaining maturity of approximately three years. No additional support beyond what was previously contractually required has been provided to JDCFI during the reporting periods. The Company has commitments to extend credit to customers and John Deere dealers through lines of credit and other pre-approved credit arrangements. The Company applies the same credit policies and approval process for these commitments to extend credit as it does for its Receivables. Collateral is not required for these commitments, but if credit is extended, collateral may be required upon funding. The amount of unused commitments to extend credit to John Deere dealers was $9.8 billion at November 1, 2020. The amount of unused commitments to extend credit to customers was $27.9 billion at November 1, 2020. A significant portion of these commitments is not expected to be fully drawn upon; therefore, the total commitment amounts do not represent a future cash requirement. The Company generally has the right to unconditionally cancel, alter, or amend the terms of these commitments at any time. Over 95 percent of the unused commitments to extend credit to customers relate to revolving charge accounts. At November 1, 2020, Capital Corporation had $173.3 million in unused loan commitments, which are unconditionally cancellable, denominated in rubles to Limited Liability Company John Deere Financial, the John Deere finance subsidiary in Russia. At November 1, 2020, the Company had restricted other assets associated with borrowings related to securitizations (See Note 6). Excluding the securitization programs, the remaining balance of restricted other assets was not material as of November 1, 2020. The Company is subject to various unresolved legal actions which arise in the normal course of its business, the most prevalent of which relate to retail credit matters. The Company believes the reasonably possible range of losses for these unresolved legal actions would not have a material effect on its consolidated financial statements.

Commitments and Contingencies

12 Months Ended

Nov. 01, 2020

Note 18. Commitments and Contingencies

At November 1, 2020, John Deere Financial Inc., the John Deere finance subsidiary in Canada, had $1,914.0 million of medium-term notes outstanding, and a fair value liability of $60.4 million for derivatives outstanding, prior to considering applicable netting provisions, with a notional amount of $3,141.9 million that were guaranteed by Capital Corporation. The weighted average interest rate on the medium-term notes at November 1, 2020 was 2.4 percent with a maximum remaining maturity of approximately seven years.

Capital Corporation has a variable interest in John Deere Canada Funding Inc. (JDCFI), a wholly-owned subsidiary of John Deere Financial Inc., which was created as a VIE to issue debt in public markets to fund the operations of affiliated companies in Canada. Capital Corporation has a variable interest in JDCFI because it provides guarantees for all debt issued by JDCFI, however it does not consolidate JDCFI because it does not have the power to direct the activities that most significantly impact JDCFI’s economic performance. Capital Corporation has no carrying value of assets or liabilities related to JDCFI. Its maximum exposure to loss is the amount of the debt issued by JDCFI and guaranteed by Capital Corporation, which was $1,088.3 million at November 1, 2020. The weighted average interest rate on the debt at

November 1, 2020 was 2.5 percent with a maximum remaining maturity of approximately three years. No additional support beyond what was previously contractually required has been provided to JDCFI during the reporting periods.

The Company has commitments to extend credit to customers and John Deere dealers through lines of credit and other pre-approved credit arrangements. The Company applies the same credit policies and approval process for these commitments to extend credit as it does for its Receivables. Collateral is not required for these commitments, but if credit is extended, collateral may be required upon funding. The amount of unused commitments to extend credit to John Deere dealers was $9.8 billion at November 1, 2020. The amount of unused commitments to extend credit to customers was $27.9 billion at November 1, 2020. A significant portion of these commitments is not expected to be fully drawn upon; therefore, the total commitment amounts do not represent a future cash requirement. The Company generally has the right to unconditionally cancel, alter, or amend the terms of these commitments at any time. Over 95 percent of the unused commitments to extend credit to customers relate to revolving charge accounts. At November 1, 2020, Capital Corporation had $173.3 million in unused loan commitments, which are unconditionally cancellable, denominated in rubles to Limited Liability Company John Deere Financial, the John Deere finance subsidiary in Russia.

At November 1, 2020, the Company had restricted other assets associated with borrowings related to securitizations (See Note 6). Excluding the securitization programs, the remaining balance of restricted other assets was not material as of November 1, 2020.

The Company is subject to various unresolved legal actions which arise in the normal course of its business, the most prevalent of which relate to retail credit matters. The Company believes the reasonably possible range of losses for these unresolved legal actions would not have a material effect on its consolidated financial statements.