FINANCING RECEIVABLES (Tables)

3 Months Ended

Jan. 27, 2019

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:

	January 27, 2019
					90 Days
	30-59 Days		60-89 Days		or Greater		Total
	Past Due		Past Due		Past Due		Past Due
Retail Notes:
Agriculture and turf	$	162	$	63	$	1	$	226
Construction and forestry		102		47		1		150
Other:
Agriculture and turf		65		23		1		89
Construction and forestry		16		8				24
Total	$	345	$	141	$	3	$	489
							Total
	Total		Total				Financing
	Past Due		Non-Performing		Current		Receivables
Retail Notes:
Agriculture and turf	$	226	$	296	$	17,408	$	17,930
Construction and forestry		150		107		3,092		3,349
Other:
Agriculture and turf		89		28		7,213		7,330
Construction and forestry		24		10		1,247		1,281
Total	$	489	$	441	$	28,960		29,890
Less allowance for credit losses								177
Total financing receivables – net							$	29,713

	October 28, 2018
					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	$	74	$	63	$	270
Construction and forestry		79		45		52		176
Other:
Agriculture and turf		36		16		8		60
Construction and forestry		18		5		3		26
Total	$	266	$	140	$	126	$	532
							Total
	Total		Total				Financing
	Past Due		Non-Performing		Current		Receivables
Retail Notes:
Agriculture and turf	$	270	$	201	$	17,836	$	18,307
Construction and forestry		176		40		3,101		3,317
Other:
Agriculture and turf		60		15		8,274		8,349
Construction and forestry		26		3		1,252		1,281
Total	$	532	$	259	$	30,463		31,254
Less allowance for credit losses								178
Total financing receivables – net							$	31,076

	January 28, 2018
					90 Days
	30-59 Days		60-89 Days		or Greater		Total
	Past Due		Past Due		Past Due		Past Due
Retail Notes:
Agriculture and turf	$	149	$	49	$	59	$	257
Construction and forestry		78		38		39		155
Other:
Agriculture and turf		51		20		6		77
Construction and forestry		9		5		2		16
Total	$	287	$	112	$	106	$	505
							Total
	Total		Total				Financing
	Past Due		Non-Performing		Current		Receivables
Retail Notes:
Agriculture and turf	$	257	$	185	$	17,287	$	17,729
Construction and forestry		155		36		2,869		3,060
Other:
Agriculture and turf		77		13		6,481		6,571
Construction and forestry		16		4		1,139		1,159
Total	$	505	$	238	$	27,776		28,519
Less allowance for credit losses								190
Total financing receivables – net							$	28,329

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 January 27, 2019
			Revolving
	Retail		Charge
	Notes		Accounts		Other		Total
Allowance:
Beginning of period balance	$	113	$	43	$	22	$	178
Provision (credit)		6		(1)		2		7
Write-offs		(11)		(4)		(1)		(16)
Recoveries		4		5				9
Translation adjustments		(1)						(1)
End of period balance *	$	111	$	43	$	23	$	177
Financing receivables:
End of period balance	$	21,279	$	2,737	$	5,874	$	29,890
Balance individually evaluated **	$	118	$	2	$	13	$	133

	Three Months Ended January 28, 2018
			Revolving
	Retail		Charge
	Notes		Accounts		Other		Total
Allowance:
Beginning of period balance	$	121	$	40	$	26	$	187
Provision						2		2
Write-offs		(7)		(5)		(1)		(13)
Recoveries		6		5				11
Translation adjustments		3						3
End of period balance *	$	123	$	40	$	27	$	190
Financing receivables:
End of period balance	$	20,789	$	2,652	$	5,078	$	28,519
Balance individually evaluated **	$	101	$	2	$	16	$	119

* 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
January 27, 2019*
Receivables with specific allowance **	$	30	$	30	$	12	$	30
Receivables without a specific allowance **		36		34				36
Total	$	66	$	64	$	12	$	66
Agriculture and turf	$	49	$	48	$	9	$	49
Construction and forestry	$	17	$	16	$	3	$	17
October 28, 2018*
Receivables with specific allowance **	$	28	$	27	$	10	$	30
Receivables without a specific allowance **		37		35				41
Total	$	65	$	62	$	10	$	71
Agriculture and turf	$	50	$	48	$	9	$	54
Construction and forestry	$	15	$	14	$	1	$	17
January 28, 2018*
Receivables with specific allowance ***	$	30	$	28	$	9	$	32
Receivables without a specific allowance ***		34		33				31
Total	$	64	$	61	$	9	$	63
Agriculture and turf	$	47	$	45	$	9	$	47
Construction and forestry	$	17	$	16			$	16

*   Finance income recognized was not material.

**  Primarily retail notes.

***   Primarily retail notes and wholesale receivables.