OTHER INCOME AND OTHER OPERATING EXPENSES

12 Months Ended

Oct. 31, 2014

OTHER INCOME AND OTHER OPERATING EXPENSES

OTHER INCOME AND OTHER OPERATING EXPENSES

9. OTHER INCOME AND OTHER OPERATING EXPENSES

The major components of other income and other operating expenses consisted of the following in millions of dollars:

	2014		2013		2012
Other income
Insurance premiums and fees earned	$	297	$	252	$	248
Revenues from services	276		256		233
Investment income	17		15		14
Other	234		159		180
Total	$	824	$	682	$	675
Other operating expenses
Depreciation of equipment on operating leases	$	494	$	389	$	339
Insurance claims and expenses	324		204		245
Cost of services	151		143		122
Other	124		85		76
Total	$	1,093	$	821	$	782

The company issues insurance policies for crop insurance and extended equipment warranties. The crop insurance subsidiary utilizes reinsurance to limit its losses and reduce its exposure to claims. Although reinsurance contracts permit recovery of certain claims from reinsurers, the insurance subsidiary is not relieved of its primary obligation to the policyholders. The premiums ceded by the crop insurance subsidiary in 2014, 2013 and 2012 were $288 million, $337 million and $251 million, and claims recoveries on the ceded business were $304 million, $294 million and $493 million, respectively. The amounts from reinsurance are netted against the insurance premiums and fees earned and the insurance claims and expenses in the table above.