FINANCING RECEIVABLES (Tables)

9 Months Ended

Jul. 28, 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:

	July 28, 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	$	136	$	63	$	3	$	202
Construction and forestry		87		35		2		124
Other:
Agriculture and turf		38		22				60
Construction and forestry		17		7				24
Total	$	278	$	127	$	5	$	410
							Total
	Total		Total				Financing
	Past Due		Non-Performing		Current		Receivables
Retail Notes:
Agriculture and turf	$	202	$	301	$	18,038	$	18,541
Construction and forestry		124		135		3,249		3,508
Other:
Agriculture and turf		60		37		8,833		8,930
Construction and forestry		24		14		1,417		1,455
Total	$	410	$	487	$	31,537		32,434
Less allowance for credit losses								185
Total financing receivables – net							$	32,249

	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

	July 29, 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	$	138	$	53	$	54	$	245
Construction and forestry		105		43		50		198
Other:
Agriculture and turf		37		14		12		63
Construction and forestry		12		6		3		21
Total	$	292	$	116	$	119	$	527
							Total
	Total		Total				Financing
	Past Due		Non-Performing		Current		Receivables
Retail Notes:
Agriculture and turf	$	245	$	203	$	17,048	$	17,496
Construction and forestry		198		42		2,967		3,207
Other:
Agriculture and turf		63		14		8,009		8,086
Construction and forestry		21		3		1,249		1,273
Total	$	527	$	262	$	29,273		30,062
Less allowance for credit losses								187
Total financing receivables – net							$	29,875

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:

			Revolving
	Retail		Charge
	Notes		Accounts		Other		Total
Three Months Ended July 28, 2019
Allowance:
Beginning of period balance	$	115	$	43	$	24	$	182
Provision		7		18		1		26
Write-offs		(9)		(26)		(1)		(36)
Recoveries		5		8				13
Translation adjustments		2				(2)
End of period balance *	$	120	$	43	$	22	$	185
Nine Months Ended July 28, 2019
Allowance:
Beginning of period balance	$	113	$	43	$	22	$	178
Provision		21		34		7		62
Write-offs		(29)		(51)		(5)		(85)
Recoveries		15		17		1		33
Translation adjustments						(3)		(3)
End of period balance *	$	120	$	43	$	22	$	185
Financing receivables:
End of period balance	$	22,049	$	3,877	$	6,508	$	32,434
Balance individually evaluated **	$	145			$	10	$	155

* Individual allowances were not significant.

** Remainder is collectively evaluated.

			Revolving
	Retail		Charge
	Notes		Accounts		Other		Total
Three Months Ended July 29, 2018
Allowance:
Beginning of period balance	$	120	$	40	$	27	$	187
Provision		8		21		3		32
Write-offs		(9)		(26)		(1)		(36)
Recoveries		3		5				8
Translation adjustments		(4)						(4)
End of period balance *	$	118	$	40	$	29	$	187
Nine Months Ended July 29, 2018
Allowance:
Beginning of period balance	$	121	$	40	$	26	$	187
Provision		13		29		7		49
Write-offs		(23)		(44)		(5)		(72)
Recoveries		13		15		1		29
Translation adjustments		(6)						(6)
End of period balance *	$	118	$	40	$	29	$	187
Financing receivables:
End of period balance	$	20,703	$	3,750	$	5,609	$	30,062
Balance individually evaluated **	$	120	$	1	$	13	$	134

* 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 28, 2019*
Receivables with specific allowance **	$	37	$	36	$	13	$	37
Receivables without a specific allowance **		35		33				39
Total	$	72	$	69	$	13	$	76
Agriculture and turf	$	51	$	50	$	9	$	52
Construction and forestry	$	21	$	19	$	4	$	24
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
July 29, 2018*
Receivables with specific allowance **	$	31	$	30	$	12	$	33
Receivables without a specific allowance **		37		35				40
Total	$	68	$	65	$	12	$	73
Agriculture and turf	$	51	$	49	$	10	$	54
Construction and forestry	$	17	$	16	$	2	$	19

*  Finance income recognized was not material.

** Primarily retail notes.