LEASES (Tables)

12 Months Ended

Oct. 30, 2022

LEASES

Summary of Lease Expense by Type

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

	2022		2021		2020
Operating lease expense	$	114	$	116	$	126
Short-term lease expense		55		29		23
Variable lease expense		74		53		41
Finance lease:
Depreciation expense		26		26		20
Interest on lease liabilities		1		1		2
Total lease expense	$	270	$	225	$	212

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

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

		2022		2021
Operating leases:
Other assets	$	299	$	291
Accounts payable and accrued expenses		302		279
Finance leases:
Property and equipment — net	$	49	$	71
Short-term borrowings		21		23
Long-term borrowings		30		38
Total finance lease liabilities	$	51	$	61

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

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

	2022	2021
Weighted-average remaining lease terms:
Operating leases	7	5
Finance leases	3	2
Weighted-average discount rates:
Operating leases	2.4%	2.3%
Finance leases	1.9%	2.3%

Schedule of Operating Lease Payment Amounts

Lease payment amounts in each of the next five years at October 30, 2022 follow in millions of dollars:

	Operating		Finance
Due in:	Leases		Leases
2023	$	95	$	22
2024		77		14
2025		54		7
2026		27		3
2027		17		2
Later years		53		6
Total lease payments		323		54
Less imputed interest		21		3
Total lease liabilities	$	302	$	51

Schedule of Finance Lease Payment Amounts

Lease payment amounts in each of the next five years at October 30, 2022 follow in millions of dollars:

	Operating		Finance
Due in:	Leases		Leases
2023	$	95	$	22
2024		77		14
2025		54		7
2026		27		3
2027		17		2
Later years		53		6
Total lease payments		323		54
Less imputed interest		21		3
Total lease liabilities	$	302	$	51

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:

		2022		2021		2020
Operating cash flows for operating leases	$	127	$	104	$	124
Operating cash flows for finance leases		1		1		2
Financing cash flows for finance leases		28		25		17

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

		2022		2021
Operating leases	$	135	$	101
Finance leases		17		27

Schedule of Lease Revenues Earned

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

		2022		2021		2020
Sales-type and direct finance lease revenues	$	154	$	145	$	135
Operating lease revenues		1,318		1,423		1,469
Variable lease revenues		26		30		31
Total lease revenues	$	1,498	$	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:

		2022		2021
Agriculture and turf	$	1,118	$	1,131
Construction and forestry		1,167		1,284
Total		2,285		2,415
Guaranteed residual values		491		394
Unguaranteed residual values		56		70
Less unearned finance income		(285)		(258)
Financing lease receivables	$	2,547	$	2,621

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 30, 2022 follow in millions of dollars:

Due in:	2022
2023	$	1,310
2024		722
2025		404
2026		200
2027		120
Later years		20
Total	$	2,776

Schedule of Cost of Equipment on Operating Leases by Market

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

		2022		2021
Agriculture and turf	$	6,912	$	7,317
Construction and forestry		1,342		1,616
Total		8,254		8,933
Less accumulated depreciation		(1,631)		(1,945)
Equipment on operating leases - net	$	6,623	$	6,988

Schedule of Lease Payments for Equipment on Operating Leases

Lease payments for equipment on operating leases at October 30, 2022 were scheduled as follows in millions of dollars:

Due in:	2022
2023	$	974
2024		709
2025		437
2026		228
2027		58
Later years		6
Total	$	2,412