FINANCING RECEIVABLES (Tables)

6 Months Ended

Apr. 30, 2016

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:

	April 30, 2016
					90 Days
	30-59 Days		60-89 Days		or Greater		Total
	Past Due		Past Due		Past Due		Past Due
Retail Notes:
Agriculture and turf	$	137	$	70	$	71	$	278
Construction and forestry		79		29		28		136
Other:
Agriculture and turf		28		12		33		73
Construction and forestry		10		6		2		18
Total	$	254	$	117	$	134	$	505
							Total
	Total		Total				Financing
	Past Due		Non-Performing		Current		Receivables
Retail Notes:
Agriculture and turf	$	278	$	129	$	17,436	$	17,843
Construction and forestry		136		32		2,556		2,724
Other:
Agriculture and turf		73		12		6,671		6,756
Construction and forestry		18		23		951		992
Total	$	505	$	196	$	27,614		28,315
Less allowance for credit losses								165
Total financing receivables - net							$	28,150

	October 31, 2015
					90 Days
	30-59 Days		60-89 Days		or Greater		Total
	Past Due		Past Due		Past Due		Past Due
Retail Notes:
Agriculture and turf	$	112	$	54	$	47	$	213
Construction and forestry		64		29		12		105
Other:
Agriculture and turf		26		12		4		42
Construction and forestry		13		5		3		21
Total	$	215	$	100	$	66	$	381
							Total
	Total		Total				Financing
	Past Due		Non-Performing		Current		Receivables
Retail Notes:
Agriculture and turf	$	213	$	98	$	18,574	$	18,885
Construction and forestry		105		21		2,556		2,682
Other:
Agriculture and turf		42		13		7,175		7,230
Construction and forestry		21		10		973		1,004
Total	$	381	$	142	$	29,278		29,801
Less allowance for credit losses								157
Total financing receivables - net							$	29,644

	April 30, 2015
					90 Days
	30-59 Days		60-89 Days		or Greater		Total
	Past Due		Past Due		Past Due		Past Due
Retail Notes:
Agriculture and turf	$	108	$	55	$	49	$	212
Construction and forestry		57		24		12		93
Other:
Agriculture and turf		32		13		20		65
Construction and forestry		14		6		2		22
Total	$	211	$	98	$	83	$	392
							Total
	Total		Total				Financing
	Past Due		Non-Performing		Current		Receivables
Retail Notes:
Agriculture and turf	$	212	$	96	$	18,543	$	18,851
Construction and forestry		93		18		2,511		2,622
Other:
Agriculture and turf		65		16		7,051		7,132
Construction and forestry		22		7		1,016		1,045
Total	$	392	$	137	$	29,121		29,650
Less allowance for credit losses								163
Total financing receivables - net							$	29,487

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

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

	Three Months Ended April 30, 2016
			Revolving
	Retail		Charge
	Notes		Accounts		Other		Total
Allowance:
Beginning of period balance	$	93	$	40	$	22	$	155
Provision		12		11		1		24
Write-offs		(12)		(15)		(1)		(28)
Recoveries		3		4				7
Translation adjustments		6				1		7
End of period balance *	$	102	$	40	$	23	$	165
	Six Months Ended April 30, 2016
Allowance:
Beginning of period balance	$	95	$	40	$	22	$	157
Provision		17		13		2		32
Write-offs		(19)		(22)		(1)		(42)
Recoveries		5		9				14
Translation adjustments		4						4
End of period balance *	$	102	$	40	$	23	$	165
Financing receivables:
End of period balance	$	20,567	$	2,636	$	5,112	$	28,315
Balance individually evaluated **	$	73	$	2	$	26	$	101

	Three Months Ended April 30, 2015
			Revolving
	Retail		Charge
	Notes		Accounts		Other		Total
Allowance:
Beginning of period balance	$	104	$	41	$	23	$	168
Provision		5		8		1		14
Write-offs		(6)		(11)		(2)		(19)
Recoveries		2		3		1		6
Translation adjustments		(6)						(6)
End of period balance *	$	99	$	41	$	23	$	163
	Six Months Ended April 30, 2015
Allowance:
Beginning of period balance	$	109	$	41	$	25	$	175
Provision		5		8		2		15
Write-offs		(9)		(15)		(2)		(26)
Recoveries		4		7				11
Translation adjustments		(10)				(2)		(12)
End of period balance *	$	99	$	41	$	23	$	163
Financing receivables:
End of period balance	$	21,473	$	2,345	$	5,832	$	29,650
Balance individually evaluated **	$	19					$	19

* 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:

			Unpaid				Average
	Recorded		Principal		Specific		Recorded
	Investment		Balance		Allowance		Investment
April 30, 2016*
Receivables with specific allowance **	$	27	$	26	$	5	$	23
Receivables without a specific allowance ***		36		35				31
Total	$	63	$	61	$	5	$	54
Agriculture and turf	$	32	$	31	$	5	$	28
Construction and forestry	$	31	$	30			$	26
October 31, 2015*
Receivables with specific allowance **	$	14	$	13	$	2	$	13
Receivables without a specific allowance ***		14		14				20
Total	$	28	$	27	$	2	$	33
Agriculture and turf	$	19	$	18	$	2	$	20
Construction and forestry	$	9	$	9			$	13
April 30, 2015*
Receivables with specific allowance **	$	3	$	3	$	2	$	6
Receivables without a specific allowance **		12		11				12
Total	$	15	$	14	$	2	$	18
Agriculture and turf	$	9	$	8	$	2	$	12
Construction and forestry	$	6	$	6			$	6

*  Finance income recognized was not material.

**  Primarily retail notes.

***   Primarily retail notes and wholesale receivables.