Fair Value Measurements (Tables)

9 Months Ended

Aug. 01, 2021

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 1, 2021				November 1, 2020				August 2, 2020
	Carrying		Fair		Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value		Value		Value
Receivables financed – net	$	31,155.9	$	31,264.6	$	28,751.6	$	28,931.7	$	28,076.5	$	28,275.8
Retail notes securitized – net		5,388.3		5,454.3		4,676.6		4,772.9		5,432.2		5,543.9
Securitization borrowings		5,264.6		5,289.3		4,656.2		4,697.6		5,324.1		5,380.7
Current maturities of long-term borrowings		5,746.0		5,800.4		5,741.6		5,801.1		4,910.2		4,958.2
Long-term borrowings		20,136.7		20,557.9		19,311.1		19,784.4		20,492.1		21,038.2

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 1		November 1		August 2
	2021		2020		2020
Marketable securities
International debt securities	$	2.1	$	2.2	$	2.4
Receivables from John Deere
Derivatives:
Interest rate contracts		331.7		575.5		795.4
Cross-currency interest rate contracts		2.0		7.7		9.1
Other assets
Derivatives:
Foreign exchange contracts		.5		3.8		3.7
Total assets	$	336.3	$	589.2	$	810.6
Other payables to John Deere
Derivatives:
Interest rate contracts	$	43.4	$	29.4	$	42.5
Cross-currency interest rate contracts		2.3		.7		.1
Accounts payable and accrued expenses
Derivatives:
Foreign exchange contracts		1.7		.9		6.2
Total liabilities	$	47.4	$	31.0	$	48.8

Excluded from the table above 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, excluding Receivables with specific allowances which were not material, were as follows (in millions of dollars):

	Fair Value				Losses
					Three Months Ended		Nine Months Ended
	August 1	November 1		August 2	August 1	August 2	August 1	August 2
	2021	2020		2020	2021	2020	2021	2020
Equipment on operating leases – net		$	340.3					$	21.0
Other assets			56.5						9.8
Total		$	396.8					$	30.8

The fair value shown for November 1, 2020 in the table above represents the fair value assessment at May 3, 2020, as the result of impairments taken on operating leases and matured operating lease inventory in the second quarter of 2020 (see Note 6).