FINANCING RECEIVABLES (Tables)

9 Months Ended

Jul. 31, 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:

	July 31, 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	$	145	$	60	$	81	$	286
Construction and forestry		74		36		26		136
Other:
Agriculture and turf		28		9		11		48
Construction and forestry		14		6		3		23
Total	$	261	$	111	$	121	$	493
							Total
	Total		Total				Financing
	Past Due		Non-Performing		Current		Receivables
Retail Notes:
Agriculture and turf	$	286	$	194	$	17,278	$	17,758
Construction and forestry		136		36		2,535		2,707
Other:
Agriculture and turf		48		9		7,212		7,269
Construction and forestry		23		7		949		979
Total	$	493	$	246	$	27,974		28,713
Less allowance for credit losses								171
Total financing receivables - net							$	28,542

	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

	July 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	$	108	$	44	$	54	$	206
Construction and forestry		65		20		14		99
Other:
Agriculture and turf		20		12		7		39
Construction and forestry		10		4		4		18
Total	$	203	$	80	$	79	$	362
							Total
	Total		Total				Financing
	Past Due		Non-Performing		Current		Receivables
Retail Notes:
Agriculture and turf	$	206	$	112	$	18,354	$	18,672
Construction and forestry		99		20		2,538		2,657
Other:
Agriculture and turf		39		12		7,453		7,504
Construction and forestry		18		8		1,009		1,035
Total	$	362	$	152	$	29,354		29,868
Less allowance for credit losses								157
Total financing receivables - net							$	29,711

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 July 31, 2016
			Revolving
	Retail		Charge
	Notes		Accounts		Other		Total
Allowance:
Beginning of period balance	$	102	$	40	$	23	$	165
Provision		11		22		1		34
Write-offs		(10)		(27)		(2)		(39)
Recoveries		3		6				9
Translation adjustments		2						2
End of period balance *	$	108	$	41	$	22	$	171
	Nine Months Ended July 31, 2016
Allowance:
Beginning of period balance	$	95	$	40	$	22	$	157
Provision		28		35		3		66
Write-offs		(29)		(49)		(3)		(81)
Recoveries		8		15				23
Translation adjustments		6						6
End of period balance *	$	108	$	41	$	22	$	171
Financing receivables:
End of period balance	$	20,465	$	2,997	$	5,251	$	28,713
Balance individually evaluated **	$	90	$	2	$	16	$	108

	Three Months Ended July 31, 2015
			Revolving
	Retail		Charge
	Notes		Accounts		Other		Total
Allowance:
Beginning of period balance	$	99	$	41	$	23	$	163
Provision		4		14		1		19
Write-offs		(8)		(18)		(1)		(27)
Recoveries		3		4				7
Translation adjustments		(4)				(1)		(5)
End of period balance *	$	94	$	41	$	22	$	157
	Nine Months Ended July 31, 2015
Allowance:
Beginning of period balance	$	109	$	41	$	25	$	175
Provision		9		22		2		33
Write-offs		(17)		(34)		(2)		(53)
Recoveries		7		12		1		20
Translation adjustments		(14)				(4)		(18)
End of period balance *	$	94	$	41	$	22	$	157
Financing receivables:
End of period balance	$	21,329	$	2,680	$	5,859	$	29,868
Balance individually evaluated **	$	19	$	3	$	9	$	31

* 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
July 31, 2016*
Receivables with specific allowance **	$	31	$	29	$	7	$	28
Receivables without a specific allowance ***		21		21				19
Total	$	52	$	50	$	7	$	47
Agriculture and turf	$	32	$	30	$	7	$	30
Construction and forestry	$	20	$	20			$	17
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
July 31, 2015*
Receivables with specific allowance **	$	5	$	4	$	1	$	8
Receivables without a specific allowance ***		20		19				21
Total	$	25	$	23	$	1	$	29
Agriculture and turf	$	12	$	11	$	1	$	16
Construction and forestry	$	13	$	12			$	13

*  Finance income recognized was not material.

**  Primarily retail notes.

***   Primarily retail notes and wholesale receivables.