FINANCING RECEIVABLES (Tables)

6 Months Ended

Apr. 30, 2023

Financing Receivables

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 in millions of dollars during the periods follows:

	Retail Notes		Revolving
	& Financing		Charge		Wholesale
	Leases		Accounts		Receivables		Total
Three Months Ended April 30, 2023
Allowance:
Beginning of period balance	$	140	$	16	$	4	$	160
Provision		30		8				38
Write-offs		(19)		(11)				(30)
Recoveries		6		6				12
End of period balance	$	157	$	19	$	4	$	180
Six Months Ended April 30, 2023
Allowance:
Beginning of period balance	$	299	$	22	$	4	$	325
Provision		45		4				49
Provision transferred to held for sale		(142)						(142)
Provision (credit) subtotal		(97)		4				(93)
Write-offs		(37)		(18)				(55)
Recoveries		10		11				21
Translation adjustments		(18)						(18)
End of period balance	$	157	$	19	$	4	$	180
Financing receivables:
End of period balance	$	36,159	$	3,783	$	4,851	$	44,793

	Retail Notes		Revolving
	& Financing		Charge		Wholesale
	Leases		Accounts		Receivables		Total
Three Months Ended May 1, 2022
Allowance:
Beginning of period balance	$	138	$	15	$	5	$	158
Provision		39		3				42
Write-offs		(18)		(8)				(26)
Recoveries		5		7				12
Translation adjustments		4						4
End of period balance	$	168	$	17	$	5	$	190
Six Months Ended May 1, 2022
Allowance:
Beginning of period balance	$	138	$	21	$	7	$	166
Provision (credit)		52		(7)		(2)		43
Write-offs		(35)		(12)				(47)
Recoveries		9		15				24
Translation adjustments		4						4
End of period balance	$	168	$	17	$	5	$	190
Financing receivables:
End of period balance	$	32,481	$	3,507	$	2,360	$	38,348

Retail Customer Receivables

Financing Receivables

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:

	April 30, 2023
	2023		2022		2021		2020		2019		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf
Current	$	6,718	$	10,947	$	6,435	$	3,155	$	1,305	$	619	$	3,621	$	32,800
30-59 days past due		10		55		55		31		18		9		16		194
60-89 days past due		2		15		24		19		4		2		8		74
90+ days past due				1		1										2
Non-performing		5		51		51		36		25		29		25		222
Construction and forestry
Current		1,442		2,434		1,490		557		169		56		106		6,254
30-59 days past due		7		35		29		25		21		10		4		131
60-89 days past due		1		8		16		12		14		12		2		65
90+ days past due				7		1		1		2						11
Non-performing		5		71		61		33		12		6		1		189
Total	$	8,190	$	13,624	$	8,163	$	3,869	$	1,570	$	743	$	3,783	$	39,942

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

	May 1, 2022
	2022		2021		2020		2019		2018		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf
Current	$	5,540	$	10,141	$	5,318	$	2,684	$	1,286	$	723	$	3,381	$	29,073
30-59 days past due		20		75		36		20		9		5		12		177
60-89 days past due		4		29		14		9		5		2		4		67
90+ days past due						1										1
Non-performing		3		40		44		41		25		31		14		198
Construction and forestry
Current		1,506		2,404		1,211		577		234		105		91		6,128
30-59 days past due		20		52		33		17		6		2		3		133
60-89 days past due		7		25		15		6		1		1		1		56
90+ days past due				1		1		1		1		5				9
Non-performing		3		46		50		29		12		5		1		146
Total	$	7,103	$	12,813	$	6,723	$	3,384	$	1,579	$	879	$	3,507	$	35,988

Wholesale Receivables

Financing Receivables

Credit Quality Analysis

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

	April 30, 2023
	2023		2022		2021		2020		2019		Prior Years		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current	$	265	$	198	$	36	$	15	$	2	$	1	$	3,653	$	4,170
30+ days past due
Non-performing										1						1
Construction and forestry
Current		10		6		24		1				1		638		680
30+ days past due
Non-performing
Total	$	275	$	204	$	60	$	16	$	3	$	2	$	4,291	$	4,851

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

	May 1, 2022
	2022		2021		2020		2019		2018		Prior Years		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current	$	224	$	155	$	43	$	8	$	1	$	2	$	1,605	$	2,038
30+ days past due
Non-performing								5								5
Construction and forestry
Current		6		35		4		2				1		268		316
30+ days past due												1				1
Non-performing
Total	$	230	$	190	$	47	$	15	$	1	$	4	$	1,873	$	2,360