Short-Term External Borrowings

12 Months Ended

Oct. 29, 2023

Short-Term External Borrowings

Short-Term External Borrowings

Note 8. Short-Term External Borrowings

Our short-term external borrowings at October 29, 2023 and October 30, 2022 consisted of the following:

	2023		2022
Commercial paper and other notes payable	$	6,836.1	$	2,402.3
Securitization borrowings		6,995.2		5,710.9
Current maturities of long-term external borrowings *		6,059.9		5,989.6
Total	$	19,891.2	$	14,102.8

* Includes unamortized fair value adjustments related to interest rate swaps.

The weighted-average interest rates at October 29, 2023 and October 30, 2022, were:

	2023		2022
Commercial paper and other notes payable		5.6%		3.4%
Securitization borrowings		4.7%		2.8%

Worldwide lines of credit were $10,215.7 at October 29, 2023, consisting primarily of:

● a 364-day credit facility agreement of $5.0 billion, expiring in the second quarter of 2024,

● a credit facility agreement of $2.5 billion, expiring in the second quarter of 2027, and

● a credit facility agreement of $2.5 billion, expiring in the second quarter of 2028.

Some of these credit lines are available to both us and Deere & Company. At October 29, 2023, $841.2 of these worldwide lines of credit were unused. For the purpose of computing the unused credit lines, commercial paper and short-term bank borrowings of us and John Deere were considered to constitute utilization.

The credit agreements governing these lines of credit require us to maintain our consolidated ratio of earnings to fixed charges at not less than 1.05 to 1 for any four consecutive fiscal quarterly periods and our ratio of senior debt, excluding securitization indebtedness to capital base (total subordinated debt and stockholder’s equity excluding accumulated other comprehensive income (loss)) at not more than 11 to 1 at the end of any fiscal quarter. All of these credit agreement requirements have been met during the periods included in the consolidated financial statements. The agreements are mutually extendable, and the annual facility fees are not significant.

Deere & Company has an agreement with us pursuant to which it has agreed to continue to own, directly or through one or more wholly-owned subsidiaries, at least 51 percent of the voting shares of capital stock of Capital Corporation and to maintain our consolidated tangible net worth at not less than $50.0. This agreement also obligates Deere & Company to make payments to us such that our consolidated ratio of earnings to fixed charges is not less than 1.05 to 1 for any four consecutive fiscal quarterly periods. Deere & Company’s obligations to make payments to us under the agreement are independent of whether we are in default on our indebtedness, obligations, or other liabilities. Further, Deere & Company’s obligations under the agreement are not measured by the amount of our indebtedness, obligations, or other liabilities. Deere & Company’s obligations to make payments under this agreement are expressly stated not to be a guarantee of any specific indebtedness, obligation, or liability of ours and are enforceable only by or in the name of Capital Corporation. No payments were required under this agreement during the periods included in the consolidated financial statements. At October 29, 2023, Deere & Company indirectly owned 100 percent of the voting shares of Capital Corporation’s capital stock and our consolidated tangible net worth was $5,901.6.