Analysis of the Allowance for Credit Losses and Investment in Receivables

An analysis of the allowance for credit losses and investment in Receivables during 2021 was as follows (in millions of dollars):


	Three Months Ended
	January 31, 2021
	Retail Notes		Revolving
	& Financing		Charge		Wholesale		Total
	Leases		Accounts		Receivables		Receivables
Allowance:
Beginning of period balance	$	76.9	$	42.3	$	9.9	$	129.1
ASU No. 2016-13 adoption*		32.5		(12.2)		(.6)		19.7
Provision (credit) for credit losses**		6.7		(9.7)				(3.0)
Write-offs		(4.1)		(5.3)				(9.4)
Recoveries		2.8		9.2				12.0
Translation adjustments		.9				.2		1.1
End of period balance	$	115.7	$	24.3	$	9.5	$	149.5

Receivables:
End of period balance	$	23,032.1	$	2,621.7	$	7,835.5	$	33,489.3

*See Note 2 regarding new accounting guidance related to credit losses.

**Excludes provision for credit losses on unfunded commitments of $2.4 million, which is recorded in accounts payable and accrued expenses on the consolidated balance sheet.

An analysis of the allowance for credit losses and investment in Receivables during 2020 was as follows (in millions of dollars):

Receivables

Age Credit Quality Analysis


	Year of Origination
	2021		2020		2019		2018		2017		Prior		Revolving Charge Accounts		Total
Customer Receivables:
Agriculture and turf
Current	$	2,233.8	$	8,126.9	$	4,264.4	$	2,338.4	$	1,137.2	$	464.9	$	2,498.1	$	21,063.7
30-59 days past due		2.7		50.0		35.1		24.4		10.8		6.0		26.3		155.3
60-89 days past due		.1		13.8		11.7		8.4		3.7		2.8		4.2		44.7
90+ days past due						.8		.2		.1		.2				1.3
Non-performing		.3		34.4		52.5		40.2		21.6		24.0		6.5		179.5
Construction and forestry
Current		582.3		1,723.8		974.0		447.5		123.4		30.1		81.8		3,962.9
30-59 days past due		3.7		46.8		27.9		14.5		4.7		1.2		2.9		101.7
60-89 days past due		.4		12.8		15.1		6.5		2.1		.6		1.2		38.7
90+ days past due				8.6		4.9										13.5
Non-performing				23.5		28.8		22.4		11.0		6.1		.7		92.5
Total Customer Receivables	$	2,823.3	$	10,040.6	$	5,415.2	$	2,902.5	$	1,314.6	$	535.9	$	2,621.7	$	25,653.8

Receivables

Age Credit Quality Analysis


	Year of Origination
	2021		2020		2019		2018		2017		Prior		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current	$	78.5	$	216.5	$	61.5	$	17.8	$	7.5	$	1.3	$	6,092.5	$	6,475.6
30-59 days past due														7.2		7.2
60-89 days past due				.2										3.0		3.2
90+ days past due														2.2		2.2
Non-performing														4.1		4.1
Construction and forestry
Current		2.6		7.9		5.4		.6						1,323.3		1,339.8
30-59 days past due														3.0		3.0
60-89 days past due														.4		.4
90+ days past due
Non-performing
Total wholesale receivables	$	81.1	$	224.6	$	66.9	$	18.4	$	7.5	$	1.3	$	7,435.7	$	7,835.5