(10) Past due balances of financing receivables represent the total balance held (principal plus accrued interest) with any payment amounts 30 days or more past the contractual payment due date. Non-performing financing receivables represent loans for which the Company has ceased accruing finance income. These receivables are generally 120 days delinquent and the estimated uncollectible amount, after charging the dealer’s withholding account, has been written off to the allowance for credit losses. Finance income for non-performing receivables is recognized on a cash basis. Accrual of finance income is resumed when the receivable becomes contractually current and collections are reasonably assured.

An age analysis of past due financing receivables that are still accruing interest and non-performing financing receivables in millions of dollars follows:

	April 30, 2013
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due

Retail Notes:
Agriculture and turf	$	60	$	25	$	19	$	104
Construction and forestry	44		17		5		66
Other:
Agriculture and turf	22		10		7		39
Construction and forestry	8		4		4		16
Total	$	134	$	56	$	35	$	225

	Total Past Due		Total Non-Performing		Current		Total Financing Receivables
Retail Notes:
Agriculture and turf	$	104	$	106	$	16,973	$	17,183
Construction and forestry	66		11		1,666		1,743
Other:
Agriculture and turf	39		10		6,543		6,592
Construction and forestry	16		4		1,171		1,191
Total	$	225	$	131	$	26,353	26,709
Less allowance for credit losses							176
Total financing receivables - net							$	26,533

	October 31, 2012
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due
Retail Notes:
Agriculture and turf	$	60	$	25	$	17	$	102
Construction and forestry	39		18		9		66
Other:
Agriculture and turf	21		6		3		30
Construction and forestry	8		2		2		12
Total	$	128	$	51	$	31	$	210

	Total Past Due		Total Non- Performing		Current		Total Financing Receivables
Retail Notes:
Agriculture and turf	$	102	$	117	$	16,432	$	16,651
Construction and forestry	66		13		1,521		1,600
Other:
Agriculture and turf	30		11		6,464		6,505
Construction and forestry	12		3		1,183		1,198
Total	$	210	$	144	$	25,600	25,954
Less allowance for credit losses							177
Total financing receivables - net							$	25,777

	April 30, 2012
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due

Retail Notes:
Agriculture and turf	$	63	$	34	$	22	$	119
Construction and forestry	35		19		9		63
Other:
Agriculture and turf	20		14		9		43
Construction and forestry	9		4		1		14
Total	$	127	$	71	$	41	$	239

	Total Past Due		Total Non- Performing		Current		Total Financing Receivables

Retail Notes:
Agriculture and turf	$	119	$	113	$	14,837	$	15,069
Construction and forestry	63		14		1,360		1,437
Other:
Agriculture and turf	43		11		5,184		5,238
Construction and forestry	14		3		1,000		1,017
Total	$	239	$	141	$	22,381	22,761
Less allowance for credit losses							192
Total financing receivables - net							$	22,569

An analysis of the allowance for credit losses and investment in financing receivables in millions of dollars follows:

	Three Months Ended April 30, 2013
	Retail Notes			Revolving Charge Accounts		Other		Total
Allowance:

Beginning of period balance	$	108		$	40	$	27	$	175
Provision	(3)			1		4		2
Write-offs	(3)			(4)		(1)		(8)
Recoveries	3			4				7
End of period balance	$	105		$	41	$	30	$	176

	Six Months Ended April 30, 2013
Allowance:
Beginning of period balance	$		110	$	40	$	27	$	177
Provision	(3)			1		4		2
Write-offs	(7)			(9)		(1)		(17)
Recoveries	5			9				14
End of period balance	$		105	$	41	$	30	$	176
Balance individually evaluated *						$	4	$	4
Financing receivables:
End of period balance	$		18,926	$	2,250	$	5,533	$	26,709
Balance individually evaluated *	$		17			$	39	$	56

* Remainder is collectively evaluated.

	Three Months Ended April 30, 2012
	Retail Notes		Revolving Charge Accounts		Other		Total

Allowance:
Beginning of period balance	$	129	$	40	$	26	$	195
Provision	2		2		1		5
Write-offs	(2)		(7)		(2)		(11)
Recoveries	2		6				8
Translation adjustments	(5)						(5)
End of period balance	$	126	$	41	$	25	$	192

	Six Months Ended April 30, 2012
Allowance:
Beginning of period balance	$	130	$	40	$	27	$	197
Provision	2		3		1		6
Write-offs	(4)		(14)		(3)		(21)
Recoveries	4		12				16
Translation adjustments	(6)						(6)
End of period balance	$	126	$	41	$	25	$	192

Financing receivables:
End of period balance	$	16,505	$	2,358	$	3,898	$	22,761
Balance individually evaluated *	$	10	$	1	$	4	$	15

* Remainder is collectively evaluated. The allowance, which was individually evaluated, was not significant at the period end.

Financing receivables are considered impaired when it is probable the Company will be unable to collect all amounts due according to the contractual terms. Receivables reviewed for impairment generally include those that are either past due, or have provided bankruptcy notification, or require significant collection efforts. Receivables, which are impaired, are classified as non-performing.

An analysis of the impaired financing receivables in millions of dollars follows:

	Recorded Investment		Unpaid Principal Balance		Specific Allowance		Average Recorded Investment
April 30, 2013 *
Receivables with specific allowance **	$	19	$	19	$	4	$	20
Receivables without a specific allowance ***	9		9				9
Total	$	28	$	28	$	4	$	29
Agriculture and turf	$	24	$	24	$	4	$	25
Construction and forestry	$	4	$	4			$	4

October 31, 2012 *
Receivables with specific allowance ***	$	1	$	1	$	1	$	1
Receivables without a specific allowance ***	9		9				10
Total	$	10	$	10	$	1	$	11
Agriculture and turf	$	6	$	6	$	1	$	6
Construction and forestry	$	4	$	4			$	5

April 30, 2012 *
Receivables with specific allowance ***	$	1	$	1			$	1
Receivables without a specific allowance ***	9		9				9
Total	$	10	$	10			$	10
Agriculture and turf	$	6	$	6			$	5
Construction and forestry	$	4	$	4			$	5

* Finance income recognized was not material.

** Primarily operating loans and retail notes.

*** Primarily retail notes.

A troubled debt restructuring is generally the modification of debt in which a creditor grants a concession it would not otherwise consider to a debtor that is experiencing financial difficulties. These modifications may include a reduction of the stated interest rate, an extension of the maturity dates, a reduction of the face amount or maturity amount of the debt, or a reduction of accrued interest. During the first six months of 2013, the Company identified 67 financing receivable contracts, primarily operating loans and retail notes, as troubled debt restructurings with aggregate balances of $15.0 million pre-modification and $14.4 million post-modification. During the first six months of 2012, there were 102 contracts, primarily retail notes, with $2.7 million pre-modification and $2.5 million post-modification balances. During the same periods, there were no significant troubled debt restructurings that subsequently defaulted and were written off. At April 30, 2013, the Company had no commitments to lend additional funds to borrowers whose accounts were modified in troubled debt restructurings.