FINANCING RECEIVABLES (Tables)

9 Months Ended

Jul. 30, 2017

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 30, 2017
					90 Days
	30-59 Days		60-89 Days		or Greater		Total
	Past Due		Past Due		Past Due		Past Due
Retail Notes:
Agriculture and turf	$	133	$	53	$	58	$	244
Construction and forestry		93		41		40		174
Other:
Agriculture and turf		35		17		8		60
Construction and forestry		7		5		1		13
Total	$	268	$	116	$	107	$	491
							Total
	Total		Total				Financing
	Past Due		Non-Performing		Current		Receivables
Retail Notes:
Agriculture and turf	$	244	$	218	$	17,025	$	17,487
Construction and forestry		174		34		2,546		2,754
Other:
Agriculture and turf		60		11		7,494		7,565
Construction and forestry		13		16		999		1,028
Total	$	491	$	279	$	28,064		28,834
Less allowance for credit losses								189
Total financing receivables – net							$	28,645

	October 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	$	115	$	57	$	65	$	237
Construction and forestry		78		32		25		135
Other:
Agriculture and turf		26		11		6		43
Construction and forestry		10		5		4		19
Total	$	229	$	105	$	100	$	434
							Total
	Total		Total				Financing
	Past Due		Non-Performing		Current		Receivables
Retail Notes:
Agriculture and turf	$	237	$	191	$	17,526	$	17,954
Construction and forestry		135		35		2,558		2,728
Other:
Agriculture and turf		43		9		7,286		7,338
Construction and forestry		19		9		957		985
Total	$	434	$	244	$	28,327		29,005
Less allowance for credit losses								176
Total financing receivables – net							$	28,829

	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

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 30, 2017
			Revolving
	Retail		Charge
	Notes		Accounts		Other		Total
Allowance:
Beginning of period balance	$	111	$	43	$	23	$	177
Provision		21		18		3		42
Write-offs		(15)		(26)		(1)		(42)
Recoveries		5		5				10
Translation adjustments		1				1		2
End of period balance *	$	123	$	40	$	26	$	189
	Nine Months Ended July 30, 2017
Allowance:
Beginning of period balance	$	113	$	40	$	23	$	176
Provision		38		32		6		76
Write-offs		(41)		(47)		(4)		(92)
Recoveries		13		15				28
Translation adjustments						1		1
End of period balance *	$	123	$	40	$	26	$	189
Financing receivables:
End of period balance	$	20,241	$	3,454	$	5,139	$	28,834
Balance individually evaluated **	$	144	$	1	$	27	$	172

	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

* 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 30, 2017*
Receivables with specific allowance **	$	56	$	51	$	13	$	51
Receivables without a specific allowance ***		30		27				31
Total	$	86	$	78	$	13	$	82
Agriculture and turf	$	54	$	50	$	10	$	50
Construction and forestry	$	32	$	28	$	3	$	32
October 30, 2016*
Receivables with specific allowance **	$	31	$	28	$	9	$	29
Receivables without a specific allowance ***		29		27				26
Total	$	60	$	55	$	9	$	55
Agriculture and turf	$	33	$	30	$	8	$	27
Construction and forestry	$	27	$	25	$	1	$	28
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

*   Finance income recognized was not material.

**  Primarily retail notes.

***   Primarily retail notes and wholesale receivables.