FINANCING RECEIVABLES (Tables)

9 Months Ended

Jul. 31, 2014

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, 2014
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due
Retail Notes:
Agriculture and turf	$	99	$	38	$	30	$	167
Construction and forestry	61		20		12		93
Other:
Agriculture and turf	22		10		8		40
Construction and forestry	15		5		2		22
Total	$	197	$	73	$	52	$	322

	Total Past Due		Total Non- Performing		Current		Total Financing Receivables
Retail Notes:
Agriculture and turf	$	167	$	117	$	19,458	$	19,742
Construction and forestry	93		18		2,237		2,348
Other:
Agriculture and turf	40		85		8,169		8,294
Construction and forestry	22		6		1,112		1,140
Total	$	322	$	226	$	30,976	31,524
Less allowance for credit losses							180
Total financing receivables - net							$	31,344

	October 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	$	75	$		26	$	20		$	121
Construction and forestry	39		14			9			62
Other:
Agriculture and turf	28		9			5			42
Construction and forestry	12		4			3			19
Total	$	154	$		53	$	37		$	244
	Total Past Due		Total Non- Performing			Current		Total Financing Receivables
Retail Notes:
Agriculture and turf	$	121	$	102		$	18,942	$		19,165
Construction and forestry	62		12			1,921		1,995
Other:
Agriculture and turf	42		13			7,613		7,668
Construction and forestry	19		3			1,109		1,131
Total	$	244	$	130		$	29,585	29,959
Less allowance for credit losses								173
Total financing receivables - net								$		29,786

	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

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 during the periods follows:

	Three Months Ended
	July 31, 2014
	Retail Notes		Revolving Charge Accounts		Other		Total
Allowance:
Beginning of period balance	$	105	$	40	$	26	$	171
Provision	2		7		7		16
Write-offs	(4)		(10)		(1)		(15)
Recoveries	3		4		1		8
End of period balance	$	106	$	41	$	33	$	180

	Nine Months Ended
	July 31, 2014
Allowance:
Beginning of period balance	$	101	$	41	$	31	$	173
Provision	10		10		3		23
Write-offs	(12)		(21)		(1)		(34)
Recoveries	8		11				19
Translation adjustments	(1)						(1)
End of period balance *	$	106	$	41	$	33	$	180
Financing receivables:
End of period balance	$	22,090	$	2,562	$	6,872	$	31,524
Balance individually evaluated **	$	44	$	1	$	80	$	125

* Individual allowances were not significant.

** Remainder is collectively evaluated.

	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
Financing receivables:
End of period balance	$	19,626	$	2,577	$	6,042	$	28,245
Balance individually evaluated **	$	15			$	39	$	54

* Individual allowances were not significant.

** 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, 2014 *
Receivables with specific allowance **	$	92	$	92	$	10	$	95
Receivables without a specific allowance ***	6		6				6
Total	$	98	$	98	$	10	$	101
Agriculture and turf	$	96	$	96	$	10	$	99
Construction and forestry	$	2	$	2			$	2
October 31, 2013 *
Receivables with specific allowance ****	$	18	$	18	$	4	$	19
Receivables without a specific allowance ***	8		8				8
Total	$	26	$	26	$	4	$	27
Agriculture and turf	$	23	$	23	$	4	$	24
Construction and forestry	$	3	$	3			$	3
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

* Finance income recognized was not material.

** Primarily wholesale receivables, retail notes and operating loans.

*** Primarily retail notes.

**** Primarily operating loans and retail notes.