FINANCING RECEIVABLES (Tables)

9 Months Ended

Aug. 01, 2021

Financing Receivables

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 during the periods:

	Retail Notes		Revolving
	& Financing		Charge		Wholesale
	Leases		Accounts		Receivables		Total
Three Months Ended August 1, 2021
Allowance:
Beginning of period balance	$	152	$	19	$	7	$	178
Provision		3						3
Write-offs		(14)		(9)				(23)
Recoveries		8		8				16
End of period balance	$	149	$	18	$	7	$	174
Nine Months Ended August 1, 2021
Allowance:
Beginning of period balance	$	133	$	43	$	8	$	184
ASU No. 2016-13 adoption		44		(13)				31
Provision (credit)		(9)		(16)		(1)		(26)
Write-offs		(38)		(23)				(61)
Recoveries		17		27				44
Translation adjustments		2						2
End of period balance	$	149	$	18	$	7	$	174
Financing receivables:
End of period balance	$	30,235	$	3,772	$	3,017	$	37,024

	Retail Notes		Revolving
	& Financing		Charge		Wholesale
	Leases		Accounts		Receivables		Total
Three Months Ended August 2, 2020
Allowance:
Beginning of period balance	$	141	$	43	$	11	$	195
Provision (credit)		6		14		(2)		18
Write-offs		(9)		(22)				(31)
Recoveries		7		8				15
Translation adjustments		3						3
End of period balance	$	148	$	43	$	9	$	200
Nine Months Ended August 2, 2020
Allowance:
Beginning of period balance	$	107	$	40	$	3	$	150
Provision		88		32		4		124
Write-offs		(53)		(51)				(104)
Recoveries		12		22				34
Translation adjustments		(6)				2		(4)
End of period balance	$	148	$	43	$	9	$	200
Financing receivables:
End of period balance	$	25,682	$	3,997	$	3,804	$	33,483

Customer Receivables

Financing Receivables

Credit Quality Analysis

The credit quality analysis of retail notes, financing leases, and revolving charge accounts (collectively, customer receivables) was as follows in millions of dollars at August 1, 2021:

	Year of Origination
	2021		2020		2019		2018		2017		Prior		Revolving Charge Accounts		Total
Customer receivables:
Agriculture and turf
Current	$	9,159	$	7,516	$	3,938	$	2,053	$	910	$	317	$	3,658	$	27,551
30-59 days past due		38		54		35		19		7		3		13		169
60-89 days past due		14		28		15		6		3		1		4		71
90+ days past due				1												1
Non-performing		12		58		63		42		22		30		6		233
Construction and forestry
Current		2,327		1,845		938		357		84		13		86		5,650
30-59 days past due		35		44		26		9		4		1		3		122
60-89 days past due		13		19		10		5		1		1		1		50
90+ days past due		4		2		9		5		6		2				28
Non-performing		12		47		41		19		8		4		1		132
Total customer receivables	$	11,614	$	9,614	$	5,075	$	2,515	$	1,045	$	372	$	3,772	$	34,007

Age Credit Quality Analysis

The credit quality analysis of customer receivables was as follows in millions of dollars at November 1, 2020 and August 2, 2020:

	November 1, 2020						August 2, 2020
	Retail Notes & Financing Leases		Revolving Charge Accounts		Total		Retail Notes & Financing Leases		Revolving Charge Accounts		Total
Customer receivables:
Agriculture and turf
Current	$	21,597	$	3,787	$	25,384	$	20,261	$	3,876	$	24,137
30-59 days past due		135		13		148		148		20		168
60-89 days past due		64		4		68		77		3		80
90+ days past due		2				2		4				4
Non-performing		263		6		269		329		8		337
Construction and forestry
Current		4,859		88		4,947		4,582		85		4,667
30-59 days past due		111		2		113		90		3		93
60-89 days past due		55		1		56		40		1		41
90+ days past due		14				14		12				12
Non-performing		106		1		107		139		1		140
Total customer receivables	$	27,206	$	3,902	$	31,108	$	25,682	$	3,997	$	29,679

Wholesale Receivables

Financing Receivables

Credit Quality Analysis

The credit quality analysis of wholesale receivables was as follows in millions of dollars at August 1, 2021:

	Year of Origination
	2021		2020		2019		2018		2017		Prior		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current	$	263	$	110	$	38	$	13	$	3	$	1	$	2,256	$	2,684
30-59 days past due
60-89 days past due
90+ days past due
Non-performing						18										18
Construction and forestry
Current		8		8		8		1		1		1		287		314
30-59 days past due												1				1
60-89 days past due
90+ days past due
Non-performing
Total wholesale receivables	$	271	$	118	$	64	$	14	$	4	$	3	$	2,543	$	3,017

Age Credit Quality Analysis

The credit quality analysis of wholesale receivables was as follows in millions of dollars at November 1, 2020 and August 2, 2020:

	November 1		August 2
	2020		2020
Wholesale receivables:
Agriculture and turf
Current	$	3,010	$	3,279
30-59 days past due
60-89 days past due
90+ days past due
Non-performing		47		50
Construction and forestry
Current		472		473
30-59 days past due
60-89 days past due
90+ days past due
Non-performing				2
Total wholesale receivables	$	3,529	$	3,804