LEASES (Tables)
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12 Months Ended |
Oct. 30, 2022 |
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| LEASES |
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| 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 | |
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| 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 | |
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| 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% | |
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| 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 | |
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| 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 | |
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| 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 | |
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| 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 | |
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| 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 | |
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| 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 | |
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| 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 | |
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| 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 | |
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