RECEIVABLES (Tables)

12 Months Ended

Oct. 31, 2021

Accounts, Notes, Loans and Financing Receivable

Schedule of Financing Receivable Installments

Financing receivable installments, including unearned finance income, at October 31, 2021 and November 1, 2020 were scheduled as follows in millions of dollars:

	2021				2020
	Unrestricted/Securitized				Unrestricted/Securitized
Due in months:
0 – 12	$	15,205	$	1,904	$	14,983	$	1,971
13 – 24		7,412		1,323		6,180		1,354
25 – 36		5,629		885		4,556		889
37 – 48		3,991		478		3,145		460
49 – 60		2,397		150		1,794		129
Thereafter		772		13		624		11
Total	$	35,406	$	4,753	$	31,282	$	4,814

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:

	Retail Notes		Revolving
	& Financing		Charge		Wholesale
	Leases		Accounts		Receivables		Total
2021
Allowance:
Beginning of year balance	$	133	$	43	$	8	$	184
ASU No. 2016-13		44		(13)				31
Provision (credit)				(17)		(1)		(18)
Write-offs		(60)		(28)				(88)
Recoveries		20		36				56
Translation adjustments		1						1
End of year balance*	$	138	$	21	$	7	$	166
Financing receivables:
End of year balance	$	32,233	$	3,825	$	2,566	$	38,624

2020
Allowance:
Beginning of year balance	$	107	$	40	$	3	$	150
Provision		81		26		3		110
Write-offs		(65)		(53)				(118)
Recoveries		17		30				47
Translation adjustments		(7)				2		(5)
End of year balance*	$	133	$	43	$	8	$	184
Financing receivables:
End of year balance	$	27,206	$	3,902	$	3,529	$	34,637

2019
Allowance:
Beginning of year balance	$	129	$	43	$	6	$	178
Provision		6		29				35
Write-offs		(47)		(58)				(105)
Recoveries		23		26				49
Translation adjustments		(4)				(3)		(7)
End of year balance*	$	107	$	40	$	3	$	150
Financing receivables:
End of year balance	$	25,151	$	3,943	$	4,634	$	33,728

*    Individual allowances were not significant.

Schedule of Other Receivables

Other receivables at October 31, 2021 and November 1, 2020 consisted of the following in millions of dollars:

	2021		2020
Taxes receivable	$	1,436	$	931
Other		302		289
Other receivables	$	1,738	$	1,220

Retail Customer Receivables

Accounts, Notes, Loans and Financing Receivable

Credit Quality Analysis

The credit quality analysis of retail notes, financing leases, and revolving charge accounts (collectively, retail customer receivables) was as follows in millions of dollars at October 31, 2021:

	Year of Origination
	2021		2020		2019		2018
Retail customer receivables:
Agriculture and turf
Current	$	12,877	$	6,676	$	3,463	$	1,738
30-59 days past due		43		53		29		16
60-89 days past due		16		23		12		6
90+ days past due				1
Non-performing		23		57		53		32
Construction and forestry
Current		3,122		1,575		754		273
30-59 days past due		50		40		27		7
60-89 days past due		15		11		9		6
90+ days past due		1		2		3		3
Non-performing		26		56		39		17
Total retail customer receivables	$	16,173	$	8,494	$	4,389	$	2,098
	Year of Origination
	2017		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf
Current	$	728	$	211	$	3,704	$	29,397
30-59 days past due		7		3		14		165
60-89 days past due		3		1		4		65
90+ days past due								1
Non-performing		17		23		7		212
Construction and forestry
Current		57		7		92		5,880
30-59 days past due		4		1		3		132
60-89 days past due		1				1		43
90+ days past due		4		2				15
Non-performing		7		3				148
Total retail customer receivables	$	828	$	251	$	3,825	$	36,058

Age Credit Quality Analysis

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

	2020
	Retail Notes & Financing Leases		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf
Current	$	21,597	$	3,787	$	25,384
30-59 days past due		135		13		148
60-89 days past due		64		4		68
90+ days past due		2				2
Non-performing		263		6		269
Construction and forestry
Current		4,859		88		4,947
30-59 days past due		111		2		113
60-89 days past due		55		1		56
90+ days past due		14				14
Non-performing		106		1		107
Total retail customer receivables	$	27,206	$	3,902	$	31,108

Wholesale Receivables

Accounts, Notes, Loans and Financing Receivable

Credit Quality Analysis

The credit quality analysis of wholesale receivables was as follows in millions of dollars at October 31, 2021:

	Year of Origination
	2021		2020		2019		2018
Wholesale receivables:
Agriculture and turf
Current	$	346	$	80	$	22	$	9
30-59 days past due
60-89 days past due
90+ days past due
Non-performing						12
Construction and forestry
Current		41		7		7
30-59 days past due
60-89 days past due
90+ days past due
Non-performing
Total wholesale receivables	$	387	$	87	$	41	$	9
	Year of Origination
	2017		Prior Years		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current	$	3			$	1,696	$	2,156
30-59 days past due
60-89 days past due
90+ days past due
Non-performing								12
Construction and forestry
Current		1	$	1		340		397
30-59 days past due
60-89 days past due				1				1
90+ days past due
Non-performing
Total wholesale receivables	$	4	$	2	$	2,036	$	2,566

Age Credit Quality Analysis

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

	2020
Wholesale receivables:
Agriculture and turf
Current	$	3,010
30-59 days past due
60-89 days past due
90+ days past due
Non-performing		47
Construction and forestry
Current		472
30-59 days past due
60-89 days past due
90+ days past due
Non-performing
Total wholesale receivables	$	3,529

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 October 31, 2021 and November 1, 2020 in millions of dollars follow:

	2021		2020
Trade accounts and notes receivable:
Production & precision ag	$	1,204	$	1,397
Small ag & turf		1,683		1,484
Construction & forestry		1,321		1,290
Trade accounts and notes receivable – net	$	4,208	$	4,171

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

The allowance for credit losses on trade accounts and notes receivable at October 31, 2021, November 1, 2020, and November 3, 2019, as well as the related activity, in millions of dollars follow:

	2021		2020		2019
Beginning of year balance	$	39	$	72	$	70
ASU No. 2016-13		(2)
Provision		10				8
Write-offs		(7)		(23)		(14)
Recoveries				1		4
Translation adjustments		1		(11)		4
End of year balance	$	41	$	39	$	72

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 October 31, 2021 and November 1, 2020 in millions of dollars follow:

	2021				2020
	Unrestricted/Securitized				Unrestricted/Securitized
Retail notes:
Agriculture and turf	$	21,736	$	4,041	$	17,780	$	4,134
Construction and forestry		4,334		712		3,629		680
Total		26,070		4,753		21,409		4,814
Wholesale notes		2,577				3,547
Revolving charge accounts		3,880				3,962
Financing leases (direct and sales-type)		2,879				2,364
Total financing receivables		35,406		4,753		31,282		4,814
Less:
Unearned finance income:
Retail notes		1,131		80		1,066		98
Wholesale notes		11				18
Revolving charge accounts		55				60
Financing leases		258				217
Total		1,455		80		1,361		98
Allowance for credit losses		152		14		171		13
Financing receivables – net	$	33,799	$	4,659	$	29,750	$	4,703

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 October 31, 2021 and November 1, 2020 related to the company’s sales of equipment that were included in the table above consisted of the following in millions of dollars:

	2021				2020
	Unrestricted/Securitized				Unrestricted/Securitized
Retail notes*:
Agriculture and turf	$	1,977			$	1,971
Construction and forestry		368	$	10		335	$	27
Total		2,345		10		2,306		27
Wholesale notes		2,577				3,547
Sales-type leases		1,269				1,045
Total		6,191		10		6,898		27
Less:
Unearned finance income:
Retail notes		159				178
Wholesale notes		11				18
Sales-type leases		98				82
Total		268				278
Financing receivables related to the company’s sales of equipment	$	5,923	$	10	$	6,620	$	27

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