Receivables (Tables)

6 Months Ended

May 02, 2021

Receivables

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
	May 2, 2021
	Retail Notes		Revolving
	& Financing		Charge		Wholesale		Total
	Leases		Accounts		Receivables		Receivables
Allowance:
Beginning of period balance	$	115.7	$	24.3	$	9.5	$	149.5
Provision (credit) for credit losses*		(9.1)		(6.1)		(.1)		(15.3)
Write-offs		(7.1)		(9.0)		(.1)		(16.2)
Recoveries		2.1		9.8				11.9
Translation adjustments		(.3)		(.1)		.3		(.1)
End of period balance	$	101.3	$	18.9	$	9.6	$	129.8

	Six Months Ended
	May 2, 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 (see Note 2)		32.5		(12.2)		(.6)		19.7
Provision (credit) for credit losses*		(2.4)		(15.8)		(.1)		(18.3)
Write-offs		(11.2)		(14.3)		(.1)		(25.6)
Recoveries		4.9		19.0				23.9
Translation adjustments		.6		(.1)		.5		1.0
End of period balance	$	101.3	$	18.9	$	9.6	$	129.8
Receivables:
End of period balance	$	24,041.5	$	3,267.9	$	8,424.1	$	35,733.5

*Excludes provision for credit losses on unfunded commitments of $(.3) million and $2.1 million for the three and six months ended May 2, 2021, respectively, 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):

	Three Months Ended
	May 3, 2020
	Retail Notes		Revolving
	& Financing		Charge		Wholesale		Total
	Leases		Accounts		Receivables		Receivables
Allowance:
Beginning of period balance	$	53.9	$	39.3	$	9.9	$	103.1
Provision (credit) for credit losses		53.8		19.2		(.3)		72.7
Write-offs		(20.2)		(22.4)				(42.6)
Recoveries		1.4		6.2		.1		7.7
Translation adjustments		(.5)				(.6)		(1.1)
End of period balance	$	88.4	$	42.3	$	9.1	$	139.8

	Six Months Ended
	May 3, 2020
	Retail Notes		Revolving
	& Financing		Charge		Wholesale		Total
	Leases		Accounts		Receivables		Receivables
Allowance:
Beginning of period balance	$	53.7	$	39.3	$	7.6	$	100.6
Provision (credit) for credit losses		67.2		18.1		(.5)		84.8
Write-offs		(34.1)		(28.8)		(.8)		(63.7)
Recoveries		2.1		13.7		.9		16.7
Translation adjustments		(.5)				1.9		1.4
End of period balance	$	88.4	$	42.3	$	9.1	$	139.8
Receivables:
End of period balance	$	20,209.2	$	3,388.7	$	9,343.4	$	32,941.3

Customer Receivables

Receivables

Credit Quality Analysis

The credit quality analysis of retail notes, financing leases, and revolving charge accounts (collectively, Customer Receivables) at May 2, 2021 was as follows (in millions of dollars):

	Year of Origination
	2021		2020		2019		2018		2017		Prior		Revolving Charge Accounts		Total
Customer Receivables:
Agriculture and turf
Current	$	5,347.9	$	7,187.4	$	3,645.2	$	1,976.0	$	899.2	$	305.4	$	3,137.1	$	22,498.2
30-59 days past due		17.8		56.7		33.0		16.5		9.2		4.5		19.1		156.8
60-89 days past due		3.6		28.8		12.9		7.2		3.5		1.8		4.8		62.6
90+ days past due						.8		.7		.3						1.8
Non-performing		1.9		42.6		41.7		38.6		18.2		18.3		16.5		177.8
Construction and forestry
Current		1,190.7		1,587.1		844.0		357.4		88.9		18.3		85.2		4,171.6
30-59 days past due		15.5		37.8		25.3		8.9		4.1		1.0		3.1		95.7
60-89 days past due		6.4		11.3		10.4		6.0		1.4		.4		1.3		37.2
90+ days past due				.6		3.9										4.5
Non-performing		.7		36.2		32.4		19.6		8.9		4.6		.8		103.2
Total Customer Receivables	$	6,584.5	$	8,988.5	$	4,649.6	$	2,430.9	$	1,033.7	$	354.3	$	3,267.9	$	27,309.4

Age Credit Quality Analysis

The credit quality analysis of Customer Receivables at November 1, 2020 and May 3, 2020 was as follows (in millions of dollars):

	November 1, 2020						May 3, 2020
	Retail Notes & Financing Leases		Revolving Charge Accounts		Total		Retail Notes & Financing Leases		Revolving Charge Accounts		Total
Customer Receivables:
Agriculture and turf
Current	$	18,341.2	$	3,710.3	$	22,051.5	$	16,179.5	$	3,215.9	$	19,395.4
30-59 days past due		111.4		11.5		122.9		170.2		30.7		200.9
60-89 days past due		47.6		3.5		51.1		82.1		11.9		94.0
90+ days past due		2.0				2.0		3.3				3.3
Non-performing		172.7		5.4		178.1		216.5		41.4		257.9
Construction and forestry
Current		3,759.5		92.3		3,851.8		3,286.5		82.5		3,369.0
30-59 days past due		82.0		2.4		84.4		99.7		4.0		103.7
60-89 days past due		38.8		1.1		39.9		45.8		1.2		47.0
90+ days past due		1.9				1.9
Non-performing		79.5		.9		80.4		125.6		1.1		126.7
Total Customer Receivables	$	22,636.6	$	3,827.4	$	26,464.0	$	20,209.2	$	3,388.7	$	23,597.9

Wholesale Receivables

Receivables

Credit Quality Analysis

The credit quality analysis of wholesale receivables at May 2, 2021 was as follows (in millions of dollars):

	Year of Origination
	2021		2020		2019		2018		2017		Prior		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current	$	189.8	$	138.4	$	45.0	$	12.4	$	3.6	$	.8	$	6,591.4	$	6,981.4
30-59 days past due														4.3		4.3
60-89 days past due														2.1		2.1
90+ days past due														3.3		3.3
Non-performing						.4								4.3		4.7
Construction and forestry
Current		4.9		6.6		4.7		.5						1,407.7		1,424.4
30-59 days past due														.9		.9
60-89 days past due
90+ days past due														3.0		3.0
Non-performing
Total wholesale receivables	$	194.7	$	145.0	$	50.1	$	12.9	$	3.6	$	.8	$	8,017.0	$	8,424.1

Age Credit Quality Analysis

The credit quality analysis of wholesale receivables at November 1, 2020 and May 3, 2020 was as follows (in millions of dollars):

	November 1, 2020		May 3, 2020
Wholesale receivables:
Agriculture and turf
Current	$	5,693.7	$	7,557.5
30-59 days past due		3.9		8.1
60-89 days past due		4.4		.9
90+ days past due		1.1		2.6
Non-performing		4.0		3.4
Construction and forestry
Current		1,385.9		1,764.8
30-59 days past due		.3		1.5
60-89 days past due				1.6
90+ days past due				1.0
Non-performing				2.0
Total wholesale receivables	$	7,093.3	$	9,343.4