Derivative Instruments (Tables)

3 Months Ended

Jan. 30, 2022

Derivative Instruments

Amounts Recorded in the Consolidated Balance Sheet Related to Borrowings Designated in Fair Value Hedging Relationships

The amounts recorded in the consolidated balance sheet related to borrowings designated in fair value hedging relationships were as follows (in millions of dollars):

			Cumulative Increase (Decrease) of Fair Value
			Hedging Adjustments Included in the
			Carrying Amount
	Carrying		Active
	Amount of		Hedging		Discontinued
January 30, 2022	Hedged Item		Relationships		Relationships		Total
Current maturities of long-term external borrowings	$	185.5	$	1.7	$	8.1	$	9.8
Long-term external borrowings		7,464.5		(107.6)		181.3		73.7
October 31, 2021
Current maturities of long-term external borrowings	$	189.5	$	2.7	$	(1.7)	$	1.0
Long-term external borrowings		7,361.7		48.3		222.7		271.0
January 31, 2021
Current maturities of long-term external borrowings	$	1.3			$	1.3	$	1.3
Long-term external borrowings		8,120.1	$	423.8		137.3		561.1

Fair Value of Derivative Instruments in Consolidated Balance Sheet

Fair values of derivative instruments in the consolidated balance sheet were as follows (in millions of dollars):

	January 30		October 31		January 31
	2022		2021		2021
Receivables from John Deere
Designated as hedging instruments:
Interest rate contracts	$	102.7	$	162.8	$	474.3
Not designated as hedging instruments:
Interest rate contracts		30.6		23.4		10.0
Cross-currency interest rate contracts		23.5		5.4		3.4
Total not designated		54.1		28.8		13.4
Other Assets
Not designated as hedging instruments:
Foreign currency exchange contracts		27.3		1.1		1.2
Total derivative assets	$	184.1	$	192.7	$	488.9
Other Payables to John Deere
Designated as hedging instruments:
Interest rate contracts	$	164.1	$	79.0	$	27.7
Not designated as hedging instruments:
Interest rate contracts		21.9		17.1		14.4
Cross-currency interest rate contracts		.3		1.5		1.8
Total not designated		22.2		18.6		16.2
Accounts Payable and Accrued Expenses
Not designated as hedging instruments:
Foreign currency exchange contracts		1.4		4.8		3.0
Total derivative liabilities	$	187.7	$	102.4	$	46.9

Gains (Losses) Related to Derivative Instruments on Statement of Consolidated Income

The classification and gains (losses) including accrued interest expense related to derivative instruments on the statement of consolidated income consisted of the following (in millions of dollars):

	Three Months Ended
	January 30		January 31
	2022		2021
Fair Value Hedges
Interest rate contracts - Interest expense	$	(139.5)	$	(52.3)
Cash Flow Hedges
Recognized in OCI
Interest rate contracts - OCI (pretax)		15.4		(.5)
Reclassified from OCI
Interest rate contracts - Interest expense		(1.1)		(4.3)
Not Designated as Hedges
Interest rate contracts - Interest expense *	$	(3.3)	$	(2.5)
Foreign currency exchange contracts - Administrative and operating expenses *		67.8		(12.6)
Total not designated	$	64.5	$	(15.1)

*    Includes interest and foreign currency exchange gains (losses) from cross-currency interest rate contracts.

Impact on Derivative Assets and Liabilities for External Derivatives and those with John Deere Related to Netting Arrangements and Collateral

Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities for external derivatives and those with John Deere related to netting arrangements and any collateral received or paid were as follows (in millions of dollars):

January 30, 2022
Derivatives:	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Assets
External	$	27.3	$	(1.4)		$	25.9
John Deere		156.8		(130.9)			25.9
Liabilities
External		1.4		(1.4)
John Deere		186.3		(130.9)			55.4

October 31, 2021
Derivatives:	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Assets
External	$	1.1	$	(.3)		$	.8
John Deere		191.6		(97.6)			94.0
Liabilities
External		4.8		(.3)			4.5
John Deere		97.6		(97.6)

January 31, 2021
Derivatives:	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Assets
External	$	1.2				$	1.2
John Deere		487.7	$	(37.9)			449.8
Liabilities
External		3.0					3.0
John Deere		43.9		(37.9)			6.0