FINANCING RECEIVABLES (Tables)

9 Months Ended

Jul. 31, 2013

FINANCING RECEIVABLES

Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables

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

Analysis of the Allowance for Credit Losses and Investment in Financing Receivables

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.

	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.

Analysis of the Impaired Financing Receivables

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.