(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:

	July 31, 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	$	73	$	26	$	20	$	119
Construction and forestry	47		17		7		71
Other:
Agriculture and turf	27		9		4		40
Construction and forestry	12		4		3		19
Total	$	159	$	56	$	34	$	249

	Total Past Due		Total Non- Performing		Current		Total Financing Receivables
Retail Notes:
Agriculture and turf	$	119	$	108	$	17,567	$	17,794
Construction and forestry	71		11		1,749		1,831
Other:
Agriculture and turf	40		13		7,375		7,428
Construction and forestry	19		5		1,168		1,192
Total	$	249	$	137	$	27,859	28,245
Less allowance for credit losses							171
Total financing receivables - net							$	28,074

	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

	July 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	$	77	$	27	$	23	$	127
Construction and forestry	41		20		9		70
Other:
Agriculture and turf	18		5		4		27
Construction and forestry	10		4		3		17
Total	$	146	$	56	$	39	$	241

	Total Past Due		Total Non- Performing		Current		Total Financing Receivables
Retail Notes:
Agriculture and turf	$	127	$	130	$	15,121	$	15,378
Construction and forestry	70		14		1,403		1,487
Other:
Agriculture and turf	27		13		5,908		5,948
Construction and forestry	17		2		1,192		1,211
Total	$	241	$	159	$	23,624	24,024
Less allowance for credit losses							175
Total financing receivables - net							$	23,849

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

	Three Months Ended
	July 31, 2013
	Retail Notes			Revolving Charge Accounts			Other			Total
Allowance:
Beginning of period balance	$	105		$	41		$	30		$	176
Provision	1			2			1			4
Write-offs	(3		)	(6		)	(1		)	(10		)
Recoveries	3			4						7
Translation adjustments	(6		)							(6		)
End of period balance	$	100		$	41		$	30		$	171

	Nine Months Ended
	July 31, 2013
Allowance:
Beginning of period balance	$	110		$	40		$	27		$	177
Provision (credit)	(2		)	4			5			7
Write-offs	(10		)	(15		)	(2		)	(27		)
Recoveries	8			12			1			21
Translation adjustments	(6		)				(1		)	(7		)
End of period balance	$	100		$	41		$	30		$	171
Balance individually evaluated *							$	4		$	4
Financing receivables:
End of period balance	$	19,626		$	2,577		$	6,042		$	28,245
Balance individually evaluated *	$	15					$	39		$	54

* Remainder is collectively evaluated.

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

	Three Months Ended
	July 31, 2012
	Retail Notes			Revolving Charge Accounts			Other		Total
Allowance:
Beginning of period balance	$	126		$	41		$	25	$	192
Provision (credit)	(13		)	6					(7		)
Write-offs	(3		)	(11		)			(14		)
Recoveries	3			5			1		9
Translation adjustments	(5		)						(5		)
End of period balance	$	108		$	41		$	26	$	175

	Nine Months Ended
	July 31, 2012
Allowance:
Beginning of period balance	$	130		$	40		$	27		$	197
Provision (credit)	(12		)	9			2			(1		)
Write-offs	(6		)	(25		)	(3		)	(34		)
Recoveries	7			17			1			25
Translation adjustments	(11		)				(1		)	(12		)
End of period balance	$	108		$	41		$	26		$	175
Balance individually evaluated *
Financing receivables:
End of period balance	$	16,865		$	2,561		$	4,598		$	24,024
Balance individually evaluated *	$	18					$	1		$	19

* Remainder is collectively evaluated.

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 that are impaired are generally 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
July 31, 2013 *
Receivables with specific allowance **	$	18	$	18	$	4	$	19
Receivables without a specific allowance ***	8		8				9
Total	$	26	$	26	$	4	$	28
Agriculture and turf	$	23	$	23	$	4	$	25
Construction and forestry	$	3	$	3			$	3

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

July 31, 2012 *
Receivables with specific allowance ***	$	2	$	2			$	2
Receivables without a specific allowance ***	10		10				9
Total	$	12	$	12			$		11
Agriculture and turf	$	8	$	8			$		6
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 nine months of 2013, the Company identified 79 financing receivable contracts, primarily operating loans and retail notes, as troubled debt restructurings with aggregate balances of $16 million pre-modification and $15 million post-modification. During the first nine months of 2012, there were 120 financing receivable contracts, primarily retail notes, with $4 million pre-modification and $4 million post-modification balances. During these same periods, there were no significant troubled debt restructurings that subsequently defaulted and were written off. At July 31, 2013, the Company had no commitments to lend additional funds to borrowers whose accounts were modified in troubled debt restructurings.