Derivative Instruments (Tables)

3 Months Ended

Jan. 28, 2024

Derivative Instruments

Fair Values of Derivative Instruments in Consolidated Balance Sheets

The fair values of our derivative instruments and the associated notional amounts were as follows:

		January 28, 2024						October 29, 2023						January 29, 2023
				Fair Value						Fair Value						Fair Value
		Notional		Asset		Liability		Notional		Asset		Liability		Notional		Asset		Liability
Cash flow hedges:
Interest rate contracts - swaps	$	2,200.0	$	27.4	$	4.4	$	1,500.0	$	44.7			$	1,950.0	$	69.2
Fair value hedges:
Interest rate contracts - swaps		11,779.6		52.1		547.3		11,859.4			$	915.7		10,126.7		20.8	$	629.0
Not designated as hedging instruments:
Interest rate contracts - swaps		7,784.7		53.8		18.3		8,010.9		72.2		27.4		4,847.8		76.2		24.0
Foreign currency exchange contracts		1,814.8		22.2		4.3		1,546.5		11.3		.5		1,297.8		1.2		29.1
Cross-currency interest rate contracts		188.6				13.4		175.8		3.2		7.5		119.3		.3		6.5
Interest rate caps - sold		1,199.5				13.3		1,336.0				24.3		788.8				4.7
Interest rate caps - purchased		1,199.5		13.3				1,336.0		24.3				788.8		4.7

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

The amounts recorded in the consolidated balance sheets related to borrowings designated in fair value hedging relationships were as follows. Fair value hedging adjustments are included in the carrying amount of the hedged item.

	Active Hedging Relationships				Discontinued Hedging Relationships
			Cumulative		Carrying		Cumulative
	Carrying		Fair Value		Amount of		Fair Value
	Amount of		Hedging		Formerly		Hedging
January 28, 2024	Hedged Item		Adjustment		Hedged Item		Adjustment
Current maturities of long-term external borrowings					$	1,959.5	$	10.4
Long-term external borrowings	$	11,220.3	$	(506.6)		7,710.9		(269.7)
October 29, 2023
Current maturities of long-term external borrowings					$	1,814.0	$	14.9
Long-term external borrowings	$	10,883.7	$	(922.6)		7,144.1		(288.1)
January 29, 2023
Current maturities of long-term external borrowings					$	1,914.8	$	15.3
Long-term external borrowings	$	9,461.7	$	(618.6)		5,505.8		(82.9)

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

The classification and gains (losses), including accrued interest expense related to derivative instruments on the statements of consolidated income consisted of the following:

	Three Months Ended
	January 28		January 29
	2024		2023
Fair Value Hedges
Interest rate contracts - Interest expense	$	335.7	$	235.3
Cash Flow Hedges
Recognized in OCI:
Interest rate contracts - OCI (pretax)	$	(7.8)	$	(1.9)
Reclassified from OCI:
Interest rate contracts - Interest expense		11.9		16.3
Not Designated as Hedges
Interest rate contracts - Interest expense *	$	(5.7)	$	(1.9)
Foreign currency exchange contracts - Administrative and operating expenses *		(103.2)		(135.1)
Total not designated	$	(108.9)	$	(137.0)

*    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:

	January 28, 2024
	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Derivatives:
Assets
External	$	22.2	$	(3.0)		$	19.2
John Deere		146.6		(101.6)			45.0
Liabilities
External		4.3		(3.0)			1.3
John Deere		596.7		(101.6)			495.1

	October 29, 2023
	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Derivatives:
Assets
External	$	11.3	$	(.1)		$	11.2
John Deere		144.4		(107.0)			37.4
Liabilities
External		.5		(.1)			.4
John Deere		974.9		(107.0)			867.9

	January 29, 2023
	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Derivatives:
Assets
External	$	1.2				$	1.2
John Deere		171.2	$	(129.1)			42.1
Liabilities
External		29.1					29.1
John Deere		664.2		(129.1)			535.1