RECEIVABLES (Tables)

12 Months Ended

Nov. 03, 2019

Accounts, Notes, Loans and Financing Receivable

Schedule of Financing Receivable Installments

Financing receivable installments, including unearned finance income, at November 3, 2019 and October 28, 2018 are scheduled as follows in millions of dollars:

	2019				2018
	Unrestricted/Securitized				Unrestricted/Securitized
Due in months:
0 – 12	$	16,174	$	2,067	$	14,658	$	1,922
13 – 24		5,639		1,214		5,355		1,160
25 – 36		4,133		777		3,911		652
37 – 48		2,759		369		2,663		315
49 – 60		1,555		67		1,480		65
Thereafter		498		2		458		2
Total	$	30,758	$	4,496	$	28,525	$	4,116

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 at November 3, 2019 and October 28, 2018 follows in millions of dollars:

	30-59		60-89		90 Days
	Days		Days		or Greater		Total
	Past Due		Past Due		Past Due		Past Due
2019
Retail Notes:
Agriculture and turf	$	138	$	73	$	1	$	212
Construction and forestry		79		29		4		112
Other:
Agriculture and turf		39		19		1		59
Construction and forestry		26		7				33
Total	$	282	$	128	$	6	$	416

			Total				Total
	Total		Non-				Financing
	Past Due		Performing		Current		Receivables
Retail Notes:
Agriculture and turf	$	212	$	268	$	18,931	$	19,411
Construction and forestry		112		127		3,450		3,689
Other:
Agriculture and turf		59		28		8,986		9,073
Construction and forestry		33		26		1,496		1,555
Total	$	416	$	449	$	32,863		33,728
Less allowance for credit losses								150
Total financing receivables - net							$	33,578

(continued)

	30-59		60-89		90 Days
	Days		Days		or Greater		Total
	Past Due		Past Due		Past Due		Past Due
2018
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		Non-				Financing
	Past Due		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

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 follows in millions of dollars:

			Revolving
	Retail		Charge
	Notes		Accounts		Other		Total
2019
Allowance:
Beginning of year balance	$	113	$	43	$	22	$	178
Provision (credit)		(2)		29		8		35
Write-offs		(40)		(58)		(7)		(105)
Recoveries		22		26		1		49
Translation adjustments		(4)				(3)		(7)
End of year balance*	$	89	$	40	$	21	$	150
Financing receivables:
End of year balance	$	23,100	$	3,943	$	6,685	$	33,728
Balance individually evaluated	$	156			$	13	$	169

2018
Allowance:
Beginning of year balance	$	121	$	40	$	26	$	187
Provision		14		38		2		54
Write-offs		(33)		(55)		(6)		(94)
Recoveries		17		20		1		38
Translation adjustments		(6)				(1)		(7)
End of year balance*	$	113	$	43	$	22	$	178
Financing receivables:
End of year balance	$	21,624	$	3,862	$	5,768	$	31,254
Balance individually evaluated	$	122	$	2	$	12	$	136

(continued)

				Revolving
		Retail		Charge
		Notes		Accounts		Other		Total
2017
Allowance:
Beginning of year balance	$	113	$	40	$	23	$	176
Provision		46		33		9		88
Write-offs		(56)		(53)		(7)		(116)
Recoveries		20		20		1		41
Translation adjustments		(2)						(2)
End of year balance*	$	121	$	40	$	26	$	187
Financing receivables:
End of year balance	$	20,697	$	3,629	$	5,124	$	29,450
Balance individually evaluated	$	86	$	3	$	20	$	109

*    Individual allowances were not significant.

Analysis of the Impaired Financing Receivables

An analysis of the impaired financing receivables at November 3, 2019 and October 28, 2018 follows in millions of dollars:

			Unpaid				Average
	Recorded		Principal		Specific		Recorded
	Investment		Balance		Allowance		Investment
2019*
Receivables with specific allowance**	$	40	$	39	$	13	$	40
Receivables without a specific allowance**		32		31				37
Total	$	72	$	70	$	13	$	77
Agriculture and turf	$	49	$	48	$	8	$	52
Construction and forestry	$	23	$	22	$	5	$	25

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

*       Finance income recognized was not material.

**     Primarily retail notes.

Schedule of Other Receivables

Other receivables at November 3, 2019 and October 28, 2018 consisted of the following in millions of dollars:

	2019		2018
Taxes receivable	$	1,231	$	1,370
Other		256		366
Other receivables	$	1,487	$	1,736

Trade Accounts and Notes Receivable

Accounts, Notes, Loans and Financing Receivable

Schedule of Trade Accounts and Notes Receivable, Financing Receivables, and Financing Receivables Related to the Sale of Equipment

Trade accounts and notes receivable at November 3, 2019 and October 28, 2018 in millions of dollars follows:

	2019		2018
Trade accounts and notes:
Agriculture and turf	$	3,224	$	3,210
Construction and forestry		2,006		1,794
Trade accounts and notes receivable – net	$	5,230	$	5,004

Schedule of Allowance for Credit Losses on Trade Accounts and Notes Receivable

The allowance for credit losses on trade accounts and notes receivable at November 3, 2019, October 28, 2018, and October 29, 2017, as well as the related activity, in millions of dollars follow:

	2019		2018		2017
Beginning of year balance	$	70	$	56	$	50
Provision		8		36		11
Write-offs		(14)		(16)		(3)
Recoveries		4
Translation adjustments		4		(6)		(2)
End of year balance	$	72	$	70	$	56

Financing Receivables

Accounts, Notes, Loans and Financing Receivable

Schedule of Trade Accounts and Notes Receivable, Financing Receivables, and Financing Receivables Related to the Sale of Equipment

Financing receivables at November 3, 2019 and October 28, 2018 in millions of dollars follow:

	2019				2018
	Unrestricted/Securitized				Unrestricted/Securitized
Retail notes:
Agriculture and turf	$	16,712	$	3,799	$	15,885	$	3,441
Construction and forestry		3,134		697		2,776		675
Total		19,846		4,496		18,661		4,116
Wholesale notes		4,645				4,009
Revolving charge accounts		4,004				3,907
Financing leases (direct and sales-type)		2,263				1,948
Total financing receivables		30,758		4,496		28,525		4,116
Less:
Unearned finance income:
Retail notes		1,141		101		1,069		84
Wholesale notes		11				10
Revolving charge accounts		61				45
Financing leases		212				179
Total		1,425		101		1,303		84
Allowance for credit losses		138		12		168		10
Financing receivables – net	$	29,195	$	4,383	$	27,054	$	4,022

Financing Receivables | Related to Sales of Equipment

Accounts, Notes, Loans and Financing Receivable

Schedule of Trade Accounts and Notes Receivable, Financing Receivables, and Financing Receivables Related to the Sale of Equipment

Financing receivables at November 3, 2019 and October 28, 2018 related to the company’s sales of equipment that were included in the table above consisted of the following in millions of dollars:

	2019				2018
	Unrestricted/Securitized				Unrestricted/Securitized
Retail notes*:
Agriculture and turf	$	2,164			$	2,312
Construction and forestry		374	$	45		441	$	77
Total		2,538		45		2,753		77
Wholesale notes		4,645				4,009
Sales-type leases		1,064				878
Total		8,247		45		7,640		77
Less:
Unearned finance income:
Retail notes		242				261		1
Wholesale notes		11				10
Sales-type leases		83				68
Total		336				339		1
Financing receivables related to the company’s sales of equipment	$	7,911	$	45	$	7,301	$	76

*    These retail notes generally arise from sales of equipment by company-owned dealers or through direct sales.