LEASES (Tables)

3 Months Ended

Feb. 02, 2020

LEASES

Summary of Lease Expense by Type

The lease expense by type consisted of the following in millions of dollars:

	Three Months Ended
	February 2, 2020
Operating lease expense	$	32
Short-term lease expense		4
Variable lease expense		10
Finance lease depreciation expense		5
Total lease expense	$	51

Schedule of Operating and Finance Lease Right of Use Assets and Liabilities, Location in Condensed Consolidated Balance Sheet

Operating and finance lease right of use assets and liabilities follow in millions of dollars:

	February 2, 2020
Operating leases
Other assets	$	376
Accounts payable and accrued expenses		361
Finance leases
Property and equipment — net	$	37
Short-term borrowings		12
Long-term borrowings		23
Total finance lease liabilities	$	35

Schedule of Weighted-Average Remaining Lease Term in Years and Discount Rates

The weighted-average remaining lease term in years and discount rates follows:

	February 2, 2020
Weighted-average remaining lease terms
Operating leases	7
Finance leases	3
Weighted-average discount rate
Operating leases	2.5%
Finance leases	3.2%

Schedule of Operating Lease Payment Amounts

Lease payment amounts in each of the next five years at February 2, 2020 follow in millions of dollars:

	Operating		Finance
February 2, 2020	Leases		Leases
Remainder of 2020	$	93	$	12
2021		80		11
2022		69		8
2023		53		3
2024		38		2
2025		19
Later years		33		1
Total lease payments		385		37
Less imputed interest		24		2
Total lease liabilities	$	361	$	35

Schedule of Finance Lease Payment Amounts

Lease payment amounts in each of the next five years at February 2, 2020 follow in millions of dollars:

	Operating		Finance
February 2, 2020	Leases		Leases
Remainder of 2020	$	93	$	12
2021		80		11
2022		69		8
2023		53		3
2024		38		2
2025		19
Later years		33		1
Total lease payments		385		37
Less imputed interest		24		2
Total lease liabilities	$	361	$	35

Schedule of Future Minimum Payments under Previous Lease Standard for Operating Leases

Future minimum lease payments under the previous lease standard for operating and finance leases at November 3, 2019 follow in millions of dollars:

	Operating		Capital
November 3, 2019	Leases		Leases
2020	$	111	$	12
2021		77		10
2022		56		6
2023		39		2
2024		28		1
Later years		26		1
Total minimum lease payments	$	337	$	32

Schedule of Future Minimum Payments under Previous Lease Standard for Capital Leases

Future minimum lease payments under the previous lease standard for operating and finance leases at November 3, 2019 follow in millions of dollars:

	Operating		Capital
November 3, 2019	Leases		Leases
2020	$	111	$	12
2021		77		10
2022		56		6
2023		39		2
2024		28		1
Later years		26		1
Total minimum lease payments	$	337	$	32

Schedule of Cash Paid for Amounts Included in the Measurement of Lease Liabilities and Right of Use Assets Obtained in Exchange for Lease Liabilities

Cash paid for amounts included in the measurement of lease liabilities:

	Three Months Ended
	February 2, 2020
Operating cash flows from operating leases	$	30
Financing cash flows from finance leases		5

Right of use assets obtained in exchange for lease liabilities:

	Three Months Ended
	February 2, 2020
Operating leases	$	16
Finance leases		9

Schedule of Lease Revenues Earned

Lease revenues earned by the Company were as follows in millions of dollars:

	Three Months Ended
	February 2, 2020
Sales-type and direct finance lease revenues	$	36
Operating lease revenues		374
Variable lease revenues		5
Total lease revenues	$	415

Schedule of Sales-type and Direct Financing Lease Receivables by Product Category

Sales-type and direct financing lease receivables by product category were as follows in millions of dollars:

	February 2		November 3
	2020		2019
Agriculture and turf	$	863	$	897
Construction and forestry		1,007		1,033
Total		1,870		1,930
Guaranteed residual values		152		232
Unguaranteed residual values		98		101
Less unearned finance income		209		212
Financing leases receivables	$	1,911	$	2,051

Schedule of Scheduled Payments, Including Guaranteed Residual Values, on Sales-type and Direct Financing Leases Receivables

Scheduled payments, including guaranteed residual values, on sales-type and direct financing lease receivables at February 2, 2020 follow in millions of dollars:

	February 2
	2020
Due in:
Remainder of 2020	$	732
2021		614
2022		380
2023		188
2024		86
2025		18
Later years		4
Total	$	2,022

Schedule of Finance Lease Scheduled Payments under the Previous Lease Standard

Scheduled payments on financing lease receivables under the previous lease standard at November 3, 2019 follow in millions of dollars:

	November 3
	2019
Due in:
2020	$	833
2021		557
2022		321
2023		153
2024		53
Later years		13
Total	$	1,930

Schedule of Cost of Equipment on Operating Leases by Product Category

The cost of equipment on operating leases by product category was as follows in millions of dollars:

	February 2		November 3
	2020		2019
Agriculture and turf	$	7,260	$	7,257
Construction and forestry		2,163		2,165
Total		9,423		9,422
Less accumulated depreciation		1,919		1,855
Equipment on operating leases - net	$	7,504	$	7,567

Schedule of Lease Payments for Equipment on Operating Leases

Lease payments for equipment on operating leases at February 2, 2020 were scheduled as follows in millions of dollars:

	February 2
	2020
Due in:
Remainder of 2020	$	948
2021		871
2022		513
2023		248
2024		80
2025		3
Total	$	2,663

Schedule of Rental Payments for Equipment on Operating Leases under the Previous Lease Standard

Rental payments for equipment on operating leases under the previous lease standard at November 3, 2019 were scheduled as follows in millions of dollars:

	November 3
	2019
Due in:
2020	$	1,086
2021		759
2022		419
2023		193
2024		41
Total	$	2,498