OTHER INCOME AND OTHER OPERATING EXPENSES

12 Months Ended

Oct. 31, 2016

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:

	2016		2015		2014
Other income
Revenues from services	$	270	$	280	$	276
Insurance premiums and fees earned		195		173		297
Investment income		16		26		17
Other		265		228		234
Total	$	746	$	707	$	824
Other operating expenses
Depreciation of equipment on operating leases	$	742	$	577	$	494
Insurance claims and expenses		188		183		324
Cost of services		162		160		151
Other		163		41		124
Total	$	1,255	$	961	$	1,093

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 and 2014 were $54 million and $288 million, and claims recoveries on the ceded business were $65 million and $304 million, respectively. The amounts from reinsurance were netted against the insurance premiums and fees earned and the insurance claims and expenses in the table above.