|
RECEIVABLES (Tables)
|
12 Months Ended |
|
Oct. 31, 2012
|
| Accounts, Notes, Loans and Financing Receivable |
|
| Schedule of Financing Receivable Installments |
|
Financing receivable installments, including unearned finance income, at October 31 are scheduled as follows in millions of dollars:
|
|
|
2012 |
|
2011 |
|
|
|
|
Unrestricted/Securitized |
|
Unrestricted/Securitized |
|
|
Due in months: |
|
|
|
|
|
|
|
|
|
|
0 - 12 |
|
$ |
11,486 |
|
$ |
1,437 |
|
$ |
10,311 |
|
$ |
1,192 |
|
|
13 - 24 |
|
4,257 |
|
1,004 |
|
3,937 |
|
807 |
|
|
25 - 36 |
|
3,232 |
|
712 |
|
2,960 |
|
524 |
|
|
37 - 48 |
|
2,278 |
|
399 |
|
2,032 |
|
305 |
|
|
49 - 60 |
|
1,356 |
|
120 |
|
1,196 |
|
119 |
|
|
Thereafter |
|
455 |
|
7 |
|
423 |
|
12 |
|
|
Total |
|
$ |
23,064 |
|
$ |
3,679 |
|
$ |
20,859 |
|
$ |
2,959 |
| |
|
| Age Analysis of Past Due and Non-Performing Financing Receivables |
|
An age analysis of past due and non-performing financing receivables at October 31, 2012 follows in millions of dollars:
|
|
|
30-59 |
|
60-89 |
|
90 Days |
|
|
|
|
|
|
Days |
|
Days |
|
or Greater |
|
Total |
|
|
|
|
Past Due |
|
Past Due |
|
Past Due* |
|
Past Due |
|
|
Retail Notes: |
|
|
|
|
|
|
|
|
|
|
Agriculture and turf |
|
$ |
60 |
|
$ |
25 |
|
$ |
17 |
|
$ |
102 |
|
|
Construction and forestry |
|
39 |
|
18 |
|
9 |
|
66 |
|
|
Other: |
|
|
|
|
|
|
|
|
|
|
Agriculture and turf |
|
21 |
|
6 |
|
3 |
|
30 |
|
|
Construction and forestry |
|
8 |
|
2 |
|
2 |
|
12 |
|
|
Total |
|
$ |
128 |
|
$ |
51 |
|
$ |
31 |
|
$ |
210 |
|
|
|
|
|
|
Total |
|
|
|
Total |
|
|
|
|
Total |
|
Non- |
|
|
|
Financing |
|
|
|
|
Past Due |
|
Performing |
|
Current |
|
Receivables |
|
|
Retail Notes: |
|
|
|
|
|
|
|
|
|
|
Agriculture and turf |
|
$ |
102 |
|
$ |
117 |
|
$ |
16,432 |
|
$ |
16,651 |
|
|
Construction and forestry |
|
66 |
|
13 |
|
1,521 |
|
1,600 |
|
|
Other: |
|
|
|
|
|
|
|
|
|
|
Agriculture and turf |
|
30 |
|
11 |
|
6,464 |
|
6,505 |
|
|
Construction and forestry |
|
12 |
|
3 |
|
1,183 |
|
1,198 |
|
|
Total |
|
$ |
210 |
|
$ |
144 |
|
$ |
25,600 |
|
25,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less allowance for credit losses |
|
|
|
|
|
|
|
177 |
|
|
Total financing receivables - net |
|
|
|
|
|
|
|
$ |
25,777 |
|
* Financing receivables that are 90 days or greater past due and still accruing finance income.
An age analysis of past due and non-performing financing receivables at October 31, 2011 follows in millions of dollars:
|
|
|
30-59 |
|
60-89 |
|
90 Days |
|
|
|
|
|
|
Days |
|
Days |
|
or Greater |
|
Total |
|
|
|
|
Past Due |
|
Past Due |
|
Past Due* |
|
Past Due |
|
|
Retail Notes: |
|
|
|
|
|
|
|
|
|
|
Agriculture and turf |
|
$ |
81 |
|
$ |
30 |
|
$ |
25 |
|
$ |
136 |
|
|
Construction and forestry |
|
45 |
|
20 |
|
11 |
|
76 |
|
|
Other: |
|
|
|
|
|
|
|
|
|
|
Agriculture and turf |
|
23 |
|
10 |
|
5 |
|
38 |
|
|
Construction and forestry |
|
7 |
|
4 |
|
2 |
|
13 |
|
|
Total |
|
$ |
156 |
|
$ |
64 |
|
$ |
43 |
|
$ |
263 |
|
|
|
|
|
|
Total |
|
|
|
Total |
|
|
|
|
Total |
|
Non- |
|
|
|
Financing |
|
|
|
|
Past Due |
|
Performing |
|
Current |
|
Receivables |
|
|
Retail Notes: |
|
|
|
|
|
|
|
|
|
|
Agriculture and turf |
|
$ |
136 |
|
$ |
132 |
|
$ |
14,667 |
|
$ |
14,935 |
|
|
Construction and forestry |
|
76 |
|
17 |
|
1,264 |
|
1,357 |
|
|
Recreational products |
|
|
|
|
|
4 |
|
4 |
|
|
Other: |
|
|
|
|
|
|
|
|
|
|
Agriculture and turf |
|
38 |
|
16 |
|
5,655 |
|
5,709 |
|
|
Construction and forestry |
|
13 |
|
5 |
|
1,003 |
|
1,021 |
|
|
Total |
|
$ |
263 |
|
$ |
170 |
|
$ |
22,593 |
|
23,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less allowance for credit losses |
|
|
|
|
|
|
|
197 |
|
|
Total financing receivables - net |
|
|
|
|
|
|
|
$ |
22,829 |
|
* Financing receivables that are 90 days or greater past due and still accruing finance income. |
|
| 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:
|
|
|
|
|
Revolving |
|
|
|
|
|
|
|
|
Retail |
|
Charge |
|
|
|
|
|
|
|
|
Notes |
|
Accounts |
|
Other |
|
Total |
|
|
2012 |
|
|
|
|
|
|
|
|
|
|
Allowance: |
|
|
|
|
|
|
|
|
|
|
Beginning of year balance |
|
$ |
130 |
|
$ |
40 |
|
$ |
27 |
|
$ |
197 |
|
|
Provision (credit) |
|
(12 |
) |
8 |
|
3 |
|
(1 |
) |
|
Write-offs |
|
(8 |
) |
(30 |
) |
(4 |
) |
(42 |
) |
|
Recoveries |
|
10 |
|
22 |
|
1 |
|
33 |
|
|
Translation adjustments |
|
(10 |
) |
|
|
|
|
(10 |
) |
|
End of year balance |
|
$ |
110 |
|
$ |
40 |
|
$ |
27 |
|
$ |
177 |
|
|
Balance individually evaluated* |
|
|
|
$ |
1 |
|
|
|
$ |
1 |
|
|
Financing receivables: |
|
|
|
|
|
|
|
|
|
|
End of year balance |
|
$ |
18,251 |
|
$ |
2,488 |
|
$ |
5,215 |
|
$ |
25,954 |
|
|
Balance individually evaluated* |
|
$ |
11 |
|
$ |
1 |
|
$ |
1 |
|
$ |
13 |
|
* Remainder is collectively evaluated.
|
2011 |
|
|
|
|
|
|
|
|
|
|
Allowance: |
|
|
|
|
|
|
|
|
|
|
Beginning of year balance |
|
$ |
144 |
|
$ |
44 |
|
$ |
37 |
|
$ |
225 |
|
|
Provision (credit) |
|
3 |
|
8 |
|
(2 |
) |
9 |
|
|
Write-offs |
|
(29 |
) |
(40 |
) |
(10 |
) |
(79 |
) |
|
Recoveries |
|
12 |
|
28 |
|
2 |
|
42 |
|
|
End of year balance |
|
$ |
130 |
|
$ |
40 |
|
$ |
27 |
|
$ |
197 |
|
|
Balance individually evaluated* |
|
$ |
1 |
|
|
|
|
|
$ |
1 |
|
|
Financing receivables: |
|
|
|
|
|
|
|
|
|
|
End of year balance |
|
$ |
16,296 |
|
$ |
2,518 |
|
$ |
4,212 |
|
$ |
23,026 |
|
|
Balance individually evaluated* |
|
$ |
12 |
|
|
|
$ |
11 |
|
$ |
23 |
|
* Remainder is collectively evaluated. |
|
| Comparative Analysis of the Allowance for Credit Losses |
|
A comparative analysis of the allowance for credit losses follows in millions of dollars:
|
|
|
2012 |
|
2011 |
|
2010 |
|
|
Beginning of year balance |
|
$ |
197 |
|
$ |
225 |
|
$ |
239 |
|
|
Provision (credit) |
|
(1 |
) |
9 |
|
100 |
|
|
Write-offs |
|
(42 |
) |
(79 |
) |
(147 |
) |
|
Recoveries |
|
33 |
|
42 |
|
31 |
|
|
Translation adjustments |
|
(10 |
) |
|
|
2 |
|
|
End of year balance |
|
$ |
177 |
|
$ |
197 |
|
$ |
225 |
| |
|
| Analysis of the Impaired Financing Receivables |
|
An analysis of the impaired financing receivables at October 31 follows in millions of dollars:
|
|
|
|
|
Unpaid |
|
|
|
Average |
|
|
|
|
Recorded |
|
Principal |
|
Specific |
|
Recorded |
|
|
|
|
Investment |
|
Balance |
|
Allowance |
|
Investment |
|
|
2012 |
|
|
|
|
|
|
|
|
|
|
Receivables with specific allowance* |
|
$ |
1 |
|
$ |
1 |
|
$ |
1 |
|
$ |
1 |
|
|
Receivables without a specific allowance** |
|
9 |
|
9 |
|
|
|
10 |
|
|
Total |
|
$ |
10 |
|
$ |
10 |
|
$ |
1 |
|
$ |
11 |
|
|
Agriculture and turf |
|
$ |
6 |
|
$ |
6 |
|
$ |
1 |
|
$ |
6 |
|
|
Construction and forestry |
|
$ |
4 |
|
$ |
4 |
|
|
|
$ |
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
|
|
|
|
|
|
|
|
Receivables with specific allowance* |
|
$ |
7 |
|
$ |
7 |
|
$ |
1 |
|
$ |
8 |
|
|
Receivables without a specific allowance** |
|
9 |
|
9 |
|
|
|
12 |
|
|
Total |
|
$ |
16 |
|
$ |
16 |
|
$ |
1 |
|
$ |
20 |
|
|
Agriculture and turf |
|
$ |
11 |
|
$ |
11 |
|
$ |
1 |
|
$ |
14 |
|
|
Construction and forestry |
|
$ |
5 |
|
$ |
5 |
|
|
|
$ |
6 |
|
* Finance income recognized was not material.
** Primarily retail notes. |
|
| Schedule of Other Receivables |
|
Other receivables at October 31 consisted of the following in millions of dollars:
|
|
|
2012 |
|
2011 |
|
|
Taxes receivable |
|
$ |
971 |
|
$ |
844 |
|
|
Reinsurance receivables |
|
569 |
|
242 |
|
|
Insurance premium receivables |
|
69 |
|
58 |
|
|
Other |
|
182 |
|
187 |
|
|
Other receivables |
|
$ |
1,791 |
|
$ |
1,331 |
| |
|
|
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 consisted of the following in millions of dollars:
|
|
|
2012 |
|
2011 |
|
|
Trade accounts and notes: |
|
|
|
|
|
|
Agriculture and turf |
|
$ |
3,074 |
|
$ |
2,618 |
|
|
Construction and forestry |
|
725 |
|
676 |
|
|
Trade accounts and notes receivable—net |
|
$ |
3,799 |
|
$ |
3,294 |
| |
|
|
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 consisted of the following in millions of dollars:
|
|
|
2012 |
|
2011 |
|
|
|
|
Unrestricted/Securitized |
|
Unrestricted/Securitized |
|
|
Retail notes: |
|
|
|
|
|
|
|
|
|
|
Equipment: |
|
|
|
|
|
|
|
|
|
|
Agriculture and turf |
|
$ |
14,144 |
|
$ |
3,126 |
|
$ |
12,969 |
|
$ |
2,597 |
|
|
Construction and forestry |
|
1,091 |
|
553 |
|
1,036 |
|
362 |
|
|
Recreational products |
|
|
|
|
|
4 |
|
|
|
|
Total |
|
15,235 |
|
3,679 |
|
14,009 |
|
2,959 |
|
|
Wholesale notes |
|
3,888 |
|
|
|
3,006 |
|
|
|
|
Revolving charge accounts |
|
2,488 |
|
|
|
2,518 |
|
|
|
|
Financing leases (direct and sales-type) |
|
1,411 |
|
|
|
1,242 |
|
|
|
|
Operating loans |
|
42 |
|
|
|
84 |
|
|
|
|
Total financing receivables |
|
23,064 |
|
3,679 |
|
20,859 |
|
2,959 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
Unearned finance income: |
|
|
|
|
|
|
|
|
|
|
Equipment notes |
|
619 |
|
44 |
|
635 |
|
36 |
|
|
Financing leases |
|
126 |
|
|
|
121 |
|
|
|
|
Total |
|
745 |
|
44 |
|
756 |
|
36 |
|
|
Allowance for credit losses |
|
160 |
|
17 |
|
179 |
|
18 |
|
|
Financing receivables — net |
|
$ |
22,159 |
|
$ |
3,618 |
|
$ |
19,924 |
|
$ |
2,905 |
| |
|
|
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 related to the company’s sales of equipment that were included in the table above consisted of the following in millions of dollars:
|
|
|
2012 |
|
2011 |
|
|
|
|
Unrestricted |
|
Unrestricted |
|
|
Retail notes*: |
|
|
|
|
|
|
Equipment: |
|
|
|
|
|
|
Agriculture and turf |
|
$ |
1,810 |
|
$ |
1,633 |
|
|
Construction and forestry |
|
313 |
|
310 |
|
|
Total |
|
2,123 |
|
1,943 |
|
|
Wholesale notes |
|
3,888 |
|
3,006 |
|
|
Sales-type leases |
|
836 |
|
776 |
|
|
Total |
|
|
6,847 |
|
|
5,725 |
|
|
Less: |
|
|
|
|
|
|
Unearned finance income: |
|
|
|
|
|
|
Equipment notes |
|
|
191 |
|
|
197 |
|
|
Sales-type leases |
|
61 |
|
64 |
|
|
Total |
|
252 |
|
261 |
|
|
Financing receivables related to the company’s sales of equipment |
|
$ |
6,595 |
|
$ |
5,464 |
|
* These retail notes generally arise from sales of equipment by company-owned dealers or through direct sales. |
|