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CASH FLOW INFORMATION
 12 Months Ended
Oct. 29, 2017
CASH FLOW INFORMATION  
CASH FLOW INFORMATION

6. CASH FLOW INFORMATION

For purposes of the statement of consolidated cash flows, the company considers investments with purchased maturities of three months or less to be cash equivalents. Substantially all of the company’s short-term borrowings, excluding the current maturities of long-term borrowings, mature or may require payment within three months or less.

The equipment operations sell a significant portion of their trade receivables to financial services. These intercompany cash flows are eliminated in the consolidated cash flows.

All cash flows from the changes in trade accounts and notes receivable (see Note 12) are classified as operating activities in the statement of consolidated cash flows as these receivables arise from sales to the company’s customers. Cash flows from financing receivables that are related to sales to the company’s customers (see Note 12) are also included in operating activities. The remaining financing receivables are related to the financing of equipment sold by independent dealers and are included in investing activities.

The company had the following non-cash operating and investing activities that were not included in the statement of consolidated cash flows. The company transferred inventory to equipment on operating leases of $801 million, $685 million, and $674 million in 2017, 2016, and 2015, respectively. The company also had accounts payable related to purchases of property and equipment of $108 million, $114 million, and $89 million at October 29, 2017, October 30, 2016, and November 1, 2015, respectively.

Cash payments for interest and income taxes consisted of the following in millions of dollars:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

2017

    

2016

    

2015

 

Interest:

 

 

 

 

 

 

 

 

 

 

Equipment operations

 

$

506

 

$

442

 

$

471

 

Financial services

 

 

665

 

 

524

 

 

443

 

Intercompany eliminations

 

 

(268)

 

 

(240)

 

 

(253)

 

Consolidated

 

$

903

 

$

726

 

$

661

 

Income taxes:

 

 

 

 

 

 

 

 

 

 

Equipment operations

 

$

898

 

$

314

 

$

828

 

Financial services

 

 

92

 

 

(26)

 

 

190

 

Intercompany eliminations

 

 

(9)

 

 

104

 

 

(117)

 

Consolidated

 

$

981

 

$

392

 

$

901