EQUIPMENT ON OPERATING LEASES

12 Months Ended

Oct. 31, 2015

EQUIPMENT ON OPERATING LEASES

EQUIPMENT ON OPERATING LEASES

14. EQUIPMENT ON OPERATING LEASES

Operating leases arise primarily from the leasing of John Deere equipment to retail customers. Initial lease terms generally range from four to 60 months. Net equipment on operating leases at October 31 consisted of the following in millions of dollars:

	2015		2014
Equipment on operating leases:
Agriculture and turf	$	3,909	$	3,261
Construction and forestry		1,061		755
Equipment on operating leases - net	$	4,970	$	4,016

The equipment is depreciated on a straight-line basis over the terms of the lease. The accumulated depreciation on this equipment was $793 million and $634 million at October 31, 2015 and 2014, respectively. The corresponding depreciation expense was $577 million in 2015, $494 million in 2014 and $389 million in 2013.

Future payments to be received on operating leases totaled $1,704 million at October 31, 2015 and are scheduled in millions of dollars as follows: 2016 - $712,  2017 - $508, 2018 - $294,  2019 - $156 and 2020 - $34.