RECEIVABLES (Tables)

12 Months Ended

Oct. 30, 2022

Accounts, Notes, Loans and Financing Receivable

Schedule of Financing Receivable Installments

Financing receivable installments, including unearned finance income, at October 30, 2022 and October 31, 2021 were scheduled as follows in millions of dollars:

	2022				2021
	Unrestricted/Securitized				Unrestricted/Securitized
Due in months:
0 – 12	$	17,032	$	2,226	$	15,205	$	1,904
13 – 24		7,975		1,667		7,412		1,323
25 – 36		5,987		1,209		5,629		885
37 – 48		4,297		709		3,991		478
49 – 60		2,559		227		2,397		150
Thereafter		809		9		772		13
Total	$	38,659	$	6,047	$	35,406	$	4,753

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
2022
Allowance:
Beginning of year balance	$	138	$	21	$	7	$	166
Provision (credit)		197		(2)		(3)		192
Write-offs		(61)		(27)				(88)
Recoveries		22		30				52
Translation adjustments		3						3
End of year balance*	$	299	$	22	$	4	$	325
Financing receivables:
End of year balance	$	35,367	$	4,255	$	3,273	$	42,895

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

*    Individual allowances were not significant.

Financing Receivable Analysis Metrics

Financing receivable analysis metrics follow in millions of dollars:

	2022		2021
Percent of the overall financing receivable portfolio:
Past-due amounts		1.07		1.09
Non-performing		.83		.96
Allowance for credit losses		.76		.43
Deposits held as credit enhancements	$	158	$	154

Schedule of Troubled Debt Restructuring Modifications

The following table includes receivable contracts identified as troubled debt restructurings:

	2022		2021		2020
Number of receivable contracts		276		397		574
Pre-modification balance in millions	$	12	$	18	$	108
Post modification balance in millions		10		17		95

Schedule of Other Receivables

Other receivables at October 30, 2022 and October 31, 2021 consisted of the following in millions of dollars:

	2022		2021
Taxes receivable	$	1,450	$	1,436
Collateral on derivatives		709		13
Receivables from unconsolidated affiliates				27
Other		333		289
Other receivables	$	2,492	$	1,765

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) by year of origination was as follows in millions of dollars:

	October 30, 2022
	2022		2021		2020		2019
Retail customer receivables:
Agriculture and turf
Current	$	13,500	$	7,984	$	4,091	$	1,875
30-59 days past due		46		63		36		17
60-89 days past due		14		25		13		6
90+ days past due		1
Non-performing		27		60		44		28
Construction and forestry
Current		2,964		1,974		842		292
30-59 days past due		53		52		23		9
60-89 days past due		19		16		7		3
90+ days past due		1		4		1		3
Non-performing		25		61		34		19
Total retail customer receivables	$	16,650	$	10,239	$	5,091	$	2,252
	October 30, 2022
	2018		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf
Current	$	785	$	200	$	4,111	$	32,546
30-59 days past due		7		3		19		191
60-89 days past due		2		1		5		66
90+ days past due								1
Non-performing		18		19		8		204
Construction and forestry
Current		73		12		108		6,265
30-59 days past due		2		1		3		143
60-89 days past due		1				1		47
90+ days past due				1				10
Non-performing		7		3				149
Total retail customer receivables	$	895	$	240	$	4,255	$	39,622

	October 31, 2021
	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
	October 31, 2021
	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

Wholesale Receivables

Accounts, Notes, Loans and Financing Receivable

Credit Quality Analysis

The credit quality analysis of wholesale receivables by year of origination was as follows in millions of dollars:

	October 30, 2022
	2022		2021		2020		2019
Wholesale receivables:
Agriculture and turf
Current	$	387	$	64	$	27	$	4
30+ days past due
Non-performing								1
Construction and forestry
Current		7		29		2		1
30+ days past due
Non-performing
Total wholesale receivables	$	394	$	93	$	29	$	6
	October 30, 2022
	2018		Prior Years		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current			$	2	$	2,371	$	2,855
30+ days past due
Non-performing								1
Construction and forestry
Current				1		377		417
30+ days past due
Non-performing
Total wholesale receivables			$	3	$	2,748	$	3,273

	October 31, 2021
	2021		2020		2019		2018
Wholesale receivables:
Agriculture and turf
Current	$	346	$	80	$	22	$	9
30+ days past due
Non-performing						12
Construction and forestry
Current		41		7		7
30+ days past due
Non-performing
Total wholesale receivables	$	387	$	87	$	41	$	9
	October 31, 2021
	2017		Prior Years		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current	$	3			$	1,696	$	2,156
30+ days past due
Non-performing								12
Construction and forestry
Current		1	$	1		340		397
30+ days past due				1				1
Non-performing
Total wholesale receivables	$	4	$	2	$	2,036	$	2,566

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 30, 2022 and October 31, 2021 in millions of dollars follow:

	2022		2021
Trade accounts and notes receivable:
Production & precision ag	$	2,397	$	1,204
Small ag & turf		2,065		1,683
Construction & forestry		1,948		1,321
Trade accounts and notes receivable – net	$	6,410	$	4,208

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 30, 2022, October 31, 2021, and November 1, 2020, as well as the related activity, in millions of dollars follow:

	2022		2021		2020
Beginning of year balance	$	41	$	39	$	72
ASU No. 2016-13				(2)
Provision		1		10
Write-offs		(5)		(7)		(23)
Recoveries						1
Translation adjustments		(1)		1		(11)
End of year balance	$	36	$	41	$	39

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 30, 2022 and October 31, 2021 in millions of dollars follow:

	2022				2021
	Unrestricted/Securitized				Unrestricted/Securitized
Retail notes:
Agriculture and turf	$	23,830	$	4,868	$	21,736	$	4,041
Construction and forestry		4,396		1,179		4,334		712
Total		28,226		6,047		26,070		4,753
Wholesale notes		3,285				2,577
Revolving charge accounts		4,316				3,880
Financing leases (direct and sales-type)		2,832				2,879
Total financing receivables		38,659		6,047		35,406		4,753
Less:
Unearned finance income:
Retail notes		1,358		95		1,131		80
Wholesale notes		12				11
Revolving charge accounts		61				55
Financing leases		285				258
Total		1,716		95		1,455		80
Allowance for credit losses		309		16		152		14
Financing receivables – net	$	36,634	$	5,936	$	33,799	$	4,659

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 30, 2022 and October 31, 2021 related to the company’s sales of equipment that were included in the previous table consisted of the following in millions of dollars:

	2022		2021
Retail notes*:
Agriculture and turf	$	1,392	$	1,977
Construction and forestry		304		378
Total		1,696		2,355
Wholesale notes		3,285		2,577
Sales-type leases		799		1,269
Total		5,780		6,201
Less:
Unearned finance income:
Retail notes		133		159
Wholesale notes		12		11
Sales-type leases		67		98
Total		212		268
Financing receivables related to the company’s sales of equipment	$	5,568	$	5,933

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

Included in the table above were $10 million of securitized construction and forestry retail notes at October 31, 2021.