OTHER INCOME AND OTHER OPERATING EXPENSES

12 Months Ended

Oct. 31, 2015

OTHER INCOME AND OTHER OPERATING EXPENSES

OTHER INCOME AND OTHER OPERATING EXPENSES

9. OTHER INCOME AND OTHER OPERATING EXPENSES

The major components of other income and other operating expenses consisted of the following in millions of dollars:

	2015		2014		2013
Other income
Insurance premiums and fees earned	$	173	$	297	$	252
Revenues from services		280		276		256
Investment income		26		17		15
Other		228		234		159
Total	$	707	$	824	$	682
Other operating expenses
Depreciation of equipment on operating leases	$	577	$	494	$	389
Insurance claims and expenses		183		324		204
Cost of services		160		151		143
Other		41		124		85
Total	$	961	$	1,093	$	821

The company offers extended equipment warranties and, prior to the divestiture of the crop insurance subsidiaries (see Note 4),  issued crop insurance policies. To limit losses and reduce exposure to crop insurance claims, the company utilized reinsurance. Although reinsurance contracts permitted recovery of certain claims from reinsurers, the insurance subsidiary was not relieved of its primary obligation to the policyholders. The premiums ceded by the crop insurance subsidiary in 2015, 2014 and 2013 were $54 million, $288 million and $337 million, and claims recoveries on the ceded business were $65 million, $304 million and $294 million, respectively. The amounts from reinsurance are netted against the insurance premiums and fees earned and the insurance claims and expenses in the table above.