LEASES (Tables)

12 Months Ended

Oct. 31, 2021

LEASES

Summary of Lease Expense by Type

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

		2021		2020
Operating lease expense	$	116	$	126
Short-term lease expense		29		23
Variable lease expense		53		41
Finance lease:
Depreciation expense		26		20
Interest on lease liabilities		1		2
Total lease expense	$	225	$	212

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

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

		2021		2020
Operating leases:
Other assets	$	291	$	324
Accounts payable and accrued expenses		279		305
Finance leases:
Property and equipment — net	$	71	$	63
Short-term borrowings		23		21
Long-term borrowings		38		39
Total finance lease liabilities	$	61	$	60

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

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

	2021	2020
Weighted-average remaining lease terms:
Operating leases	5	5
Finance leases	2	3
Weighted-average discount rates:
Operating leases	2.3%	2.1%
Finance leases	2.3%	2.2%

Schedule of Operating Lease Payment Amounts

Lease payment amounts in each of the next five years at October 31, 2021 follow in millions of dollars:

	Operating		Finance
Due in:	Leases		Leases
2022	$	83	$	25
2023		69		19
2024		54		11
2025		32		5
2026		15		1
Later years		41		3
Total lease payments		294		64
Less imputed interest		15		3
Total lease liabilities	$	279	$	61

Schedule of Finance Lease Payment Amounts

Lease payment amounts in each of the next five years at October 31, 2021 follow in millions of dollars:

	Operating		Finance
Due in:	Leases		Leases
2022	$	83	$	25
2023		69		19
2024		54		11
2025		32		5
2026		15		1
Later years		41		3
Total lease payments		294		64
Less imputed interest		15		3
Total lease liabilities	$	279	$	61

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 follows in millions of dollars:

		2021		2020
Operating cash flows from operating leases	$	104	$	124
Operating cash flows from finance leases		1		2
Financing cash flows from finance leases		25		17

Right of use assets obtained in exchange for lease liabilities follow in millions of dollars:

		2021		2020
Operating leases	$	101	$	40
Finance leases		27		46

Schedule of Lease Revenues Earned

Lease revenues earned by the company follow in millions of dollars:

		2021		2020
Sales-type and direct finance lease revenues	$	145	$	135
Operating lease revenues		1,423		1,469
Variable lease revenues		30		31
Total lease revenues	$	1,598	$	1,635

Schedule of Sales-type and Direct Financing Lease Receivables by Market

Sales-type and direct financing lease receivables by market follow in millions of dollars:

		2021		2020
Agriculture and turf	$	1,131	$	985
Construction and forestry		1,284		1,030
Total		2,415		2,015
Guaranteed residual values		394		278
Unguaranteed residual values		70		71
Less unearned finance income		(258)		(217)
Financing lease receivables	$	2,621	$	2,147

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

Scheduled payments, including guaranteed residual values, on sales-type and direct financing lease receivables at October 31, 2021 follow in millions of dollars:

Due in:	2021
2022	$	1,223
2023		712
2024		461
2025		229
2026		161
Later years		23
Total	$	2,809

Schedule of Cost of Equipment on Operating Leases by Market

The cost of equipment on operating leases by market follow in millions of dollars:

		2021		2020
Agriculture and turf	$	7,317	$	7,366
Construction and forestry		1,616		1,921
Total		8,933		9,287
Less accumulated depreciation		(1,945)		(1,989)
Equipment on operating leases - net	$	6,988	$	7,298

Schedule of Lease Payments for Equipment on Operating Leases

Lease payments for equipment on operating leases at October 31, 2021 were scheduled as follows in millions of dollars:

Due in:	2021
2022	$	1,027
2023		693
2024		409
2025		207
2026		50
Later years		6
Total	$	2,392