CASH FLOW INFORMATION

12 Months Ended

Oct. 31, 2021

CASH FLOW INFORMATION

CASH FLOW INFORMATION

7. CASH FLOW INFORMATION

The company considers investments with purchased maturities of three months or less to be cash equivalents. Substantially all of the company’s short-term borrowings, excluding the current maturities of finance lease obligations and long-term borrowings, mature or may require payment within three months or less.

The equipment operations sell a significant portion of their trade receivables to financial services. These intercompany cash flows are eliminated in the consolidated cash flows.

All cash flows from the changes in trade accounts and notes receivable (see Note 13) are classified as operating activities in the statement of consolidated cash flows as these receivables arise from sales to the company’s customers. Cash flows from financing receivables that are related to sales to the company’s customers (see Note 13) are also included in operating activities. The remaining financing receivables are related to the financing of equipment sold by independent dealers and are included in investing activities.

The company had the following non-cash operating and investing activities that were not included in the statement of consolidated cash flows. The company transferred inventory to equipment on operating leases of $662 million, $614 million, and $678 million in 2021, 2020, and 2019, respectively. The company also had accounts payable related to purchases of property and equipment of $121 million, $98 million, and $152 million at October 31, 2021, November 1, 2020, and November 3, 2019, respectively.

The company’s restricted cash held at October 31, 2021, November 1, 2020, and November 3, 2019 was as follows in millions of dollars:

	2021		2020		2019
Equipment operations	$	12	$	11	$	21
Financial services		96		95		78
Total	$	108	$	106	$	99

The restricted cash, recorded in “Other assets” in the consolidated balance sheet, primarily relates to securitization of financing receivables (see Note 14).

Cash payments for interest and income taxes consisted of the following in millions of dollars:

	2021		2020		2019
Interest:
Equipment operations	$	584	$	553	$	666
Financial services		736		998		1,154
Intercompany eliminations		(279)		(272)		(360)
Consolidated	$	1,041	$	1,279	$	1,460
Income taxes:
Equipment operations	$	1,996	$	1,000	$	1,018
Financial services		348		297		(57)
Intercompany eliminations		(269)		(228)		150
Consolidated	$	2,075	$	1,069	$	1,111