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Allowance for Credit Losses and Credit Quality of Receivables (Tables)
12 Months Ended
Oct. 30, 2022
Allowance for Credit Losses and Credit Quality of Receivables  
Analysis of the Allowance for Credit Losses and Investment in Receivables

An analysis of the allowance for credit losses and investment in Receivables at October 30, 2022, October 31, 2021, and November 1, 2020 was as follows (in millions of dollars):

    

Retail Notes

    

Revolving

    

    

 

& Financing

Charge

Wholesale

Total

 

Leases

Accounts

Receivables

Receivables

 

2022

Allowance:

Beginning of year balance

$

96.5

$

20.8

$

11.7

$

129.0

Provision (credit) for credit losses*

 

26.1

(1.8)

.1

 

24.4

Write-offs

 

(40.7)

(26.8)

(.3)

 

(67.8)

Recoveries

 

14.4

29.7

.1

 

44.2

Translation adjustments

 

(.9)

(.5)

 

(1.4)

End of year balance

$

95.4

$

21.9

$

11.1

$

128.4

Receivables:

End of year balance

$

29,932.6

$

4,165.8

$

8,404.5

$

42,502.9

2021

    

    

    

    

 

Allowance:

Beginning of year 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*

 

11.8

(17.0)

2.5

 

(2.7)

Write-offs

 

(36.7)

(27.8)

(.3)

 

(64.8)

Recoveries

 

11.6

35.5

 

47.1

Translation adjustments

 

.4

.2

 

.6

End of year balance

$

96.5

$

20.8

$

11.7

$

129.0

Receivables:

End of year balance

$

26,978.2

$

3,740.1

$

5,951.3

$

36,669.6

2020

    

    

    

    

 

Allowance:

Beginning of year balance

$

53.7

$

39.3

$

7.6

$

100.6

Provision (credit) for credit losses

 

66.2

25.1

(1.9)

 

89.4

Write-offs

 

(49.1)

(51.6)

(.9)

 

(101.6)

Recoveries

 

6.4

29.5

1.3

 

37.2

Translation adjustments

 

(.3)

3.8

 

3.5

End of year balance

$

76.9

$

42.3

$

9.9

$

129.1

Receivables:

End of year balance

$

22,636.6

$

3,827.4

$

7,093.3

$

33,557.3

*            Excludes provision (credit) for credit losses on unfunded commitments of $(.9) million and $1.8 million for the years ended October 30, 2022 and October 31, 2021, respectively. The estimated credit losses related to unfunded commitments are recorded in accounts payable and accrued expenses on the consolidated balance sheets.

Schedule of Troubled Debt Restructuring Modifications The following table includes Receivable contracts identified as troubled debt restructurings, which were primarily retail notes (in millions of dollars):

2022

2021

2020

Number of receivable contracts

199

326

468

 

Pre-modification balance

$

7.0

$

12.0

$

19.0

 

Post-modification balance

5.8

10.7

17.4

 

Total Write-offs and Recoveries, by Product, and as a Percentage of Average Balances Held

Total write-offs and recoveries, by product, and as a percentage of average balances held during the year, were as follows (in millions of dollars):

2022

2021

2020

 

    

Dollars

    

Percent

    

Dollars

    

Percent

    

Dollars

    

Percent

 

Write-offs:

Retail notes & financing leases:

Agriculture and turf

$

(21.4)

 

(.09)

%  

$

(18.6)

 

(.09)

%  

$

(15.2)

 

(.09)

%

Construction and forestry

 

(19.3)

 

(.39)

 

(18.1)

 

(.42)

 

(33.9)

 

(.94)

Total retail notes & financing leases

 

(40.7)

 

(.15)

 

(36.7)

 

(.15)

 

(49.1)

 

(.24)

Revolving charge accounts

 

(26.8)

 

(.77)

 

(27.8)

 

(.85)

 

(51.6)

 

(1.51)

Wholesale receivables

 

(.3)

 

 

(.3)

 

 

(.9)

 

(.01)

Total write-offs

 

(67.8)

 

(.18)

 

(64.8)

 

(.19)

 

(101.6)

 

(.31)

Recoveries:

Retail notes & financing leases:

Agriculture and turf

 

10.2

 

.05

 

9.2

 

.05

 

4.6

 

.03

Construction and forestry

 

4.2

 

.09

 

2.4

 

.06

 

1.8

 

.05

Total retail notes & financing leases

 

14.4

 

.05

 

11.6

 

.05

 

6.4

 

.03

Revolving charge accounts

 

29.7

 

.86

 

35.5

 

1.08

 

29.5

 

.86

Wholesale receivables

 

.1

 

 

 

 

1.3

 

.02

Total recoveries

 

44.2

 

.12

 

47.1

 

.14

 

37.2

 

.11

Total net write-offs

$

(23.6)

 

(.06)

%  

$

(17.7)

 

(.05)

%  

$

(64.4)

 

(.20)

%

Customer Receivables  
Allowance for Credit Losses and Credit Quality of Receivables  
Credit Quality Analysis

The credit quality analysis of Customer Receivables by year of origination was as follows (in millions of dollars):

October 30, 2022

2022

2021

2020

2019

2018

Prior Years

Revolving Charge Accounts

Total

Customer Receivables:

 

 

 

 

 

 

 

 

Agriculture and turf

Current

$

11,764.5

$

6,958.0

$

3,488.7

$

1,519.7

$

582.8

$

153.2

$

4,022.7

$

28,489.6

30-59 days past due

40.1

55.8

31.4

15.0

6.4

2.7

18.4

169.8

60-89 days past due

11.8

19.5

10.8

4.4

2.0

1.1

4.5

54.1

90+ days past due

.4

.2

.2

.8

Non-performing

24.7

38.4

29.2

13.7

11.2

10.2

7.8

135.2

Construction and forestry

Current

2,373.7

1,526.3

658.1

230.7

57.2

10.5

107.7

4,964.2

30-59 days past due

44.5

40.6

20.7

7.6

1.8

.6

3.1

118.9

60-89 days past due

18.1

11.4

6.0

3.0

.7

.1

1.0

40.3

90+ days past due

.3

1.3

1.4

3.0

Non-performing

19.3

51.2

27.6

15.4

5.5

2.9

.6

122.5

Total Customer Receivables

$

14,297.4

$

8,702.7

$

4,272.7

$

1,810.9

$

667.6

$

181.3

$

4,165.8

$

34,098.4

October 31, 2021

2021

2020

2019

2018

2017

Prior Years

Revolving Charge Accounts

Total

Customer Receivables:

 

 

 

 

 

 

 

 

Agriculture and turf

Current

$

11,318.1

$

5,719.1

$

2,842.5

$

1,431.0

$

582.8

$

119.9

$

3,620.9

$

25,634.3

30-59 days past due

34.7

47.5

24.2

13.7

5.9

2.9

13.1

142.0

60-89 days past due

12.8

17.4

8.4

5.1

2.4

.7

3.2

50.0

90+ days past due

.5

.5

.1

.2

.1

1.4

Non-performing

20.1

44.5

26.4

22.3

10.6

12.5

6.4

142.8

Construction and forestry

Current

2,356.4

1,198.5

573.5

215.6

42.5

5.4

92.3

4,484.2

30-59 days past due

36.6

33.0

21.1

5.8

2.0

.1

2.7

101.3

60-89 days past due

12.5

8.4

5.0

2.6

.5

.2

1.0

30.2

90+ days past due

.1

.4

.9

.1

1.5

Non-performing

21.9

50.0

33.9

15.1

6.3

2.9

.5

130.6

Total Customer Receivables

$

13,813.7

$

7,119.3

$

3,536.0

$

1,711.4

$

653.2

$

144.6

$

3,740.1

$

30,718.3

Wholesale Receivables  
Allowance for Credit Losses and Credit Quality of Receivables  
Credit Quality Analysis

The credit quality analysis of wholesale receivables by year of origination was as follows (in millions of dollars):

October 30, 2022

2022

2021

2020

2019

2018

Prior Years

Revolving

Total

Wholesale receivables:

    

    

    

    

    

    

    

    

Agriculture and turf

Current

$

381.3

$

62.7

$

25.0

$

3.8

$

.3

$

1.1

$

6,238.1

$

6,712.3

30+ days past due

.1

8.3

8.4

Non-performing

5.5

5.5

Construction and forestry

Current

4.8

28.2

1.4

.4

.1

1,633.8

1,668.7

30+ days past due

9.6

9.6

Non-performing

Total wholesale receivables

$

386.1

$

91.0

$

26.4

$

4.2

$

.4

$

1.1

$

7,895.3

$

8,404.5

October 31, 2021

2021

2020

2019

2018

2017

Prior Years

Revolving

Total

Wholesale receivables:

    

    

    

    

    

    

    

    

Agriculture and turf

Current

$

339.6

$

77.1

$

21.1

$

9.2

$

2.7

$

.4

$

4,233.4

$

4,683.5

30+ days past due

12.0

12.0

Non-performing

6.7

6.7

Construction and forestry

Current

39.4

4.0

3.4

.3

1,199.6

1,246.7

30+ days past due

2.4

2.4

Non-performing

Total wholesale receivables

$

379.0

$

81.1

$

24.5

$

9.5

$

2.7

$

.4

$

5,454.1

$

5,951.3