FINANCING RECEIVABLES (Tables)

9 Months Ended

Jul. 28, 2019

FINANCING RECEIVABLES

Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables

An age analysis of past due financing receivables that are still accruing interest and non-performing financing receivables in millions of dollars follows:


		July 28, 2019
								90 Days
		30-59 Days			60-89 Days			or Greater			Total
		Past Due			Past Due			Past Due			Past Due
Retail Notes:
Agriculture and turf		$	136		$	63		$	3		$	202
Construction and forestry			87			35			2			124
Other:
Agriculture and turf			38			22						60
Construction and forestry			17			7						24
Total		$	278		$	127		$	5		$	410

											Total
		Total			Total						Financing
		Past Due			Non-Performing			Current			Receivables
Retail Notes:
Agriculture and turf		$	202		$	301		$	18,038		$	18,541
Construction and forestry			124			135			3,249			3,508
Other:
Agriculture and turf			60			37			8,833			8,930
Construction and forestry			24			14			1,417			1,455
Total		$	410		$	487		$	31,537			32,434
Less allowance for credit losses												185
Total financing receivables – net											$	32,249


		October 28, 2018
								90 Days
		30-59 Days			60-89 Days			or Greater			Total
		Past Due			Past Due			Past Due			Past Due
Retail Notes:
Agriculture and turf		$	133		$	74		$	63		$	270
Construction and forestry			79			45			52			176
Other:
Agriculture and turf			36			16			8			60
Construction and forestry			18			5			3			26
Total		$	266		$	140		$	126		$	532

											Total
		Total			Total						Financing
		Past Due			Non-Performing			Current			Receivables
Retail Notes:
Agriculture and turf		$	270		$	201		$	17,836		$	18,307
Construction and forestry			176			40			3,101			3,317
Other:
Agriculture and turf			60			15			8,274			8,349
Construction and forestry			26			3			1,252			1,281
Total		$	532		$	259		$	30,463			31,254
Less allowance for credit losses												178
Total financing receivables – net											$	31,076


		July 29, 2018
								90 Days
		30-59 Days			60-89 Days			or Greater			Total
		Past Due			Past Due			Past Due			Past Due
Retail Notes:
Agriculture and turf		$	138		$	53		$	54		$	245
Construction and forestry			105			43			50			198
Other:
Agriculture and turf			37			14			12			63
Construction and forestry			12			6			3			21
Total		$	292		$	116		$	119		$	527

											Total
		Total			Total						Financing
		Past Due			Non-Performing			Current			Receivables
Retail Notes:
Agriculture and turf		$	245		$	203		$	17,048		$	17,496
Construction and forestry			198			42			2,967			3,207
Other:
Agriculture and turf			63			14			8,009			8,086
Construction and forestry			21			3			1,249			1,273
Total		$	527		$	262		$	29,273			30,062
Less allowance for credit losses												187
Total financing receivables – net											$	29,875

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:


					Revolving
		Retail			Charge
		Notes			Accounts			Other			Total
Three Months Ended July 28, 2019
Allowance:
Beginning of period balance		$	115		$	43		$	24		$	182
Provision			7			18			1			26
Write-offs			(9)			(26)			(1)			(36)
Recoveries			5			8						13
Translation adjustments			2						(2)
End of period balance *		$	120		$	43		$	22		$	185

Nine Months Ended July 28, 2019
Allowance:
Beginning of period balance		$	113		$	43		$	22		$	178
Provision			21			34			7			62
Write-offs			(29)			(51)			(5)			(85)
Recoveries			15			17			1			33
Translation adjustments									(3)			(3)
End of period balance *		$	120		$	43		$	22		$	185
Financing receivables:
End of period balance		$	22,049		$	3,877		$	6,508		$	32,434
Balance individually evaluated **		$	145					$	10		$	155

* Individual allowances were not significant.

** Remainder is collectively evaluated.


					Revolving
		Retail			Charge
		Notes			Accounts			Other			Total
Three Months Ended July 29, 2018
Allowance:
Beginning of period balance		$	120		$	40		$	27		$	187
Provision			8			21			3			32
Write-offs			(9)			(26)			(1)			(36)
Recoveries			3			5						8
Translation adjustments			(4)									(4)
End of period balance *		$	118		$	40		$	29		$	187

Nine Months Ended July 29, 2018
Allowance:
Beginning of period balance		$	121		$	40		$	26		$	187
Provision			13			29			7			49
Write-offs			(23)			(44)			(5)			(72)
Recoveries			13			15			1			29
Translation adjustments			(6)									(6)
End of period balance *		$	118		$	40		$	29		$	187
Financing receivables:
End of period balance		$	20,703		$	3,750		$	5,609		$	30,062
Balance individually evaluated **		$	120		$	1		$	13		$	134

* Individual allowances were not significant.

** Remainder is collectively evaluated.

Analysis of the Impaired Financing Receivables

An analysis of the impaired financing receivables in millions of dollars follows:


					Unpaid						Average
		Recorded			Principal			Specific			Recorded
		Investment			Balance			Allowance			Investment
July 28, 2019*
Receivables with specific allowance **		$	37		$	36		$	13		$	37
Receivables without a specific allowance **			35			33						39
Total		$	72		$	69		$	13		$	76
Agriculture and turf		$	51		$	50		$	9		$	52
Construction and forestry		$	21		$	19		$	4		$	24

October 28, 2018*
Receivables with specific allowance **		$	28		$	27		$	10		$	30
Receivables without a specific allowance **			37			35						41
Total		$	65		$	62		$	10		$	71
Agriculture and turf		$	50		$	48		$	9		$	54
Construction and forestry		$	15		$	14		$	1		$	17

July 29, 2018*
Receivables with specific allowance **		$	31		$	30		$	12		$	33
Receivables without a specific allowance **			37			35						40
Total		$	68		$	65		$	12		$	73
Agriculture and turf		$	51		$	49		$	10		$	54
Construction and forestry		$	17		$	16		$	2		$	19

* Finance income recognized was not material.

** Primarily retail notes.