Other Income and Administrative and Operating Expenses

12 Months Ended

Oct. 30, 2022

Other Income and Administrative and Operating Expenses

Other Income and Administrative and Operating Expenses

Note 15. Other Income and Administrative and Operating Expenses

The major components of other income and administrative and operating expenses were as follows (in millions of dollars):

	2022		2021		2020
Other income
Fees and interest from John Deere	$	28.5	$	25.6	$	25.5
External interest income		8.6		2.9		13.8
Operating lease disposition gains - net		66.9		65.0
Freestanding credit enhancement recoveries *		8.5		14.3
Other		23.2		13.7		19.2
Total	$	135.7	$	121.5	$	58.5
Administrative and operating expenses
Compensation and benefits	$	252.9	$	249.0	$	251.0
Operating lease disposition losses - net and impairments						53.6
Computer processing and software		55.8		52.0		47.2
Property taxes on leased assets		33.0		29.0		30.0
Foreign currency exchange losses - net		25.6		14.9		18.8
Other		72.8		61.1		70.0
Total	$	440.1	$	406.0	$	470.6

*            As a result of the adoption of ASU No. 2016-13 in 2021, recoveries from freestanding credit enhancements are recognized in other income. Prior to the adoption of ASU No. 2016-13, recoveries from freestanding credit enhancements were recorded in the provision for credit losses.

The Company recorded net gains on operating lease dispositions in 2022 and 2021 of $66.9 million and $65.0 million, respectively, driven by better than expected conditions in the agriculture and construction used equipment markets, which led to favorable results when the matured operating lease equipment was sold. In 2020, the Company recorded a net loss on operating lease residual values and impairments of $53.6 million (see Note 6).