RECEIVABLES (Tables)
|
12 Months Ended |
Oct. 27, 2024 |
|---|
| Accounts, Notes, Loans and Financing Receivable |
|
| Schedule of Financing Receivable Installments |
Financing receivable installments, including unearned finance income, at October 27, 2024 and October 29, 2023 were scheduled as follows: | | | | | | | | | | | | | | | | 2024 | | 2023 | | | | Unrestricted/Securitized | | Unrestricted/Securitized | | Due in months: | | | | | | | | | | | | | | 0 – 12 | | $ | 23,872 | | $ | 3,555 | | $ | 22,176 | | $ | 2,820 | | 13 – 24 | | | 8,187 | | | 2,507 | | | 8,646 | | | 2,089 | | 25 – 36 | | | 6,356 | | | 1,702 | | | 6,692 | | | 1,509 | | 37 – 48 | | | 4,509 | | | 918 | | | 4,844 | | | 824 | | 49 – 60 | | | 2,660 | | | 266 | | | 2,920 | | | 241 | | Thereafter | | | 781 | | | 9 | | | 942 | | | 11 | | Total | | $ | 46,365 | | $ | 8,957 | | $ | 46,220 | | $ | 7,494 | |
|
| 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: | | | | | | | | | | | | | | | | Retail Notes | | Revolving | | | | | | | | & Financing | | Charge | | Wholesale | | | | | | Leases | | Accounts | | Receivables | | Total | | 2024 | | | | | | | | | | | | | | Allowance: | | | | | | | | | | | | | | Beginning of year balance | | $ | 172 | | $ | 21 | | $ | 4 | | $ | 197 | | Provision | | | 262 | | | 52 | | | | | | 314 | | Provision reversal for assets held for sale | | | (38) | | | | | | | | | (38) | | Provision subtotal | | | 224 | | | 52 | | | | | | 276 | | Write-offs | | | (186) | | | (95) | | | | | | (281) | | Recoveries | | | 13 | | | 30 | | | | | | 43 | | Translation adjustments | | | (4) | | | | | | (2) | | | (6) | | End of year balance* | | $ | 219 | | $ | 8 | | $ | 2 | | $ | 229 | | | | | | | | | | | | | | | | Financing receivables: | | | | | | | | | | | | | | End of year balance | | $ | 39,680 | | $ | 4,654 | | $ | 8,927 | | $ | 53,261 | |
| | | | | | | | | | | | | | 2023 | | | | | | | | | | | | | | Allowance: | | | | | | | | | | | | | | Beginning of year balance | | $ | 299 | | $ | 22 | | $ | 4 | | $ | 325 | | Provision | | | 97 | | | 22 | | | | | | 119 | | Provision reversal for assets held for sale | | | (142) | | | | | | | | | (142) | | Provision (credit) subtotal | | | (45) | | | 22 | | | | | | (23) | | Write-offs | | | (84) | | | (45) | | | | | | (129) | | Recoveries | | | 21 | | | 22 | | | | | | 43 | | Translation adjustments | | | (19) | | | | | | | | | (19) | | End of year balance* | | $ | 172 | | $ | 21 | | $ | 4 | | $ | 197 | | | | | | | | | | | | | | | | Financing receivables: | | | | | | | | | | | | | | End of year balance | | $ | 39,585 | | $ | 4,698 | | $ | 6,922 | | $ | 51,205 | |
| | | | | | | | | | | | | | 2022 | | | | | | | | | | | | | | Allowance: | | | | | | | | | | | | | | Beginning of year balance | | $ | 138 | | $ | 21 | | $ | 7 | | $ | 166 | | Provision (credit) | | | 197 | | | (2) | | | (3) | | | 192 | | Write-offs | | | (61) | | | (27) | | | | | | (88) | | Recoveries | | | 22 | | | 30 | | | | | | 52 | | Translation adjustments | | | 3 | | | | | | | | | 3 | | End of year balance* | | $ | 299 | | $ | 22 | | $ | 4 | | $ | 325 | | | | | | | | | | | | | | | | Financing receivables: | | | | | | | | | | | | | | End of year balance | | $ | 35,367 | | $ | 4,255 | | $ | 3,273 | | $ | 42,895 | |
* Individual allowances were not significant.
|
| Write-offs by Year of Origination |
Write-offs by year of origination were as follows: | | | | | | | | | | | | | | | | October 27, 2024 | | | | 2024 | | 2023 | | 2022 | | 2021 | | Retail customer receivables: | | | | | | | | | | | | | | Agriculture and turf | | $ | 5 | | $ | 33 | | $ | 25 | | $ | 11 | | Construction and forestry | | | 9 | | | 38 | | | 30 | | | 11 | | Total | | $ | 14 | | $ | 71 | | $ | 55 | | $ | 22 | | | | | | | | | | | | | | | | | | October 27, 2024 | | | | 2020 | | Prior Years | | Revolving Charge Accounts | | Total | | Retail customer receivables: | | | | | | | | | | | | | | Agriculture and turf | | $ | 11 | | $ | 5 | | $ | 87 | | $ | 177 | | Construction and forestry | | | 5 | | | 3 | | | 8 | | | 104 | | Total | | $ | 16 | | $ | 8 | | $ | 95 | | $ | 281 | |
|
| Financing Receivable Analysis Metrics |
Financing receivable analysis metrics follow: | | | | | | | | | | 2024 | | 2023 | | Percent of the overall financing receivable portfolio: | | | | | | | | Past-due amounts | | | 1.20 | | | 1.02 | | Non-performing | | | 1.01 | | | .92 | | Allowance for credit losses | | | .43 | | | .38 | | Deposits held as credit enhancements | | $ | 142 | | $ | 154 | |
|
| Amortized Cost and Performance of Modified Loans |
At October 27, 2024, the ending amortized cost and performance of modified loans with borrowers experiencing financial difficulty in 2024 was as follows: | | | | | | | 2024 | | Current | | $ | 78 | | 30-59 days past due | | | 1 | | 60-89 days past due | | | 2 | | 90+ days past due | | | | | Non-performing | | | 13 | | Total | | $ | 94 | |
|
| Schedule of Troubled Debt Restructurings |
The following table quantifies troubled debt restructurings: | | | | | | | | | | 2023 | | 2022 | | Number of receivable contracts | | | 209 | | | 276 | | Pre-modification balance | | $ | 10 | | $ | 12 | | Post modification balance | | | 9 | | | 10 | |
|
| Schedule of Other Receivables |
Other receivables at the end of 2024 and 2023 consisted of: | | | | | | | | | | 2024 | | 2023 | | Taxes receivable | | $ | 1,874 | | $ | 1,626 | | Collateral on derivatives | | | 254 | | | 667 | | Receivables from unconsolidated affiliates | | | 3 | | | 3 | | Other | | | 414 | | | 327 | | Other receivables | | $ | 2,545 | | $ | 2,623 | |
|
| Retail Customer Receivables |
|
| Accounts, Notes, Loans and Financing Receivable |
|
| 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: | | | | | | | | | | | | | | | | October 27, 2024 | | | | 2024 | | 2023 | | 2022 | | 2021 | | Retail customer receivables: | | | | | | | | | | | | | | Agriculture and turf: | | | | | | | | | | | | | | Current | | $ | 14,394 | | $ | 8,305 | | $ | 5,191 | | $ | 2,833 | | 30-59 days past due | | | 44 | | | 101 | | | 55 | | | 27 | | 60-89 days past due | | | 22 | | | 50 | | | 21 | | | 10 | | 90+ days past due | | | 1 | | | 1 | | | 1 | | | 2 | | Non-performing | | | 23 | | | 91 | | | 76 | | | 50 | | Construction and forestry: | | | | | | | | | | | | | | Current | | | 3,100 | | | 1,841 | | | 1,064 | | | 458 | | 30-59 days past due | | | 54 | | | 47 | | | 25 | | | 10 | | 60-89 days past due | | | 25 | | | 28 | | | 10 | | | 7 | | 90+ days past due | | | 1 | | | 4 | | | 3 | | | 1 | | Non-performing | | | 40 | | | 94 | | | 67 | | | 32 | | Total | | $ | 17,704 | | $ | 10,562 | | $ | 6,513 | | $ | 3,430 | | | | | | | | | | | | | | | | | | October 27, 2024 | | | | 2020 | | Prior Years | | Revolving Charge Accounts | | Total | | Retail customer receivables: | | | | | | | | | | | | | | Agriculture and turf: | | | | | | | | | | | | | | Current | | $ | 992 | | $ | 253 | | $ | 4,465 | | $ | 36,433 | | 30-59 days past due | | | 11 | | | 4 | | | 40 | | | 282 | | 60-89 days past due | | | 8 | | | 2 | | | 13 | | | 126 | | 90+ days past due | | | | | | | | | | | | 5 | | Non-performing | | | 20 | | | 13 | | | 15 | | | 288 | | Construction and forestry: | | | | | | | | | | | | | | Current | | | 102 | | | 45 | | | 114 | | | 6,724 | | 30-59 days past due | | | 3 | | | 2 | | | 4 | | | 145 | | 60-89 days past due | | | 2 | | | | | | 2 | | | 74 | | 90+ days past due | | | | | | | | | | | | 9 | | Non-performing | | | 9 | | | 5 | | | 1 | | | 248 | | Total | | $ | 1,147 | | $ | 324 | | $ | 4,654 | | $ | 44,334 | |
| | | | | | | | | | | | | | | | October 29, 2023 | | | | 2023 | | 2022 | | 2021 | | 2020 | | Retail customer receivables: | | | | | | | | | | | | | | Agriculture and turf: | | | | | | | | | | | | | | Current | | $ | 15,191 | | $ | 8,430 | | $ | 5,120 | | $ | 2,334 | | 30-59 days past due | | | 62 | | | 75 | | | 39 | | | 21 | | 60-89 days past due | | | 18 | | | 26 | | | 18 | | | 10 | | 90+ days past due | | | 2 | | | 1 | | | 3 | | | 3 | | Non-performing | | | 30 | | | 78 | | | 62 | | | 33 | | Construction and forestry: | | | | | | | | | | | | | | Current | | | 2,927 | | | 1,961 | | | 1,084 | | | 353 | | 30-59 days past due | | | 49 | | | 34 | | | 27 | | | 9 | | 60-89 days past due | | | 19 | | | 14 | | | 12 | | | 5 | | 90+ days past due | | | | | | 6 | | | 1 | | | | | Non-performing | | | 42 | | | 80 | | | 55 | | | 23 | | Total | | $ | 18,340 | | $ | 10,705 | | $ | 6,421 | | $ | 2,791 | | | | | | | | | | | | | | | | | | October 29, 2023 | | | | 2019 | | Prior Years | | Revolving Charge Accounts | | Total | | Retail customer receivables: | | | | | | | | | | | | | | Agriculture and turf: | | | | | | | | | | | | | | Current | | $ | 853 | | $ | 280 | | $ | 4,526 | | $ | 36,734 | | 30-59 days past due | | | 9 | | | 3 | | | 29 | | | 238 | | 60-89 days past due | | | 4 | | | 2 | | | 9 | | | 87 | | 90+ days past due | | | | | | | | | | | | 9 | | Non-performing | | | 22 | | | 22 | | | 8 | | | 255 | | Construction and forestry: | | | | | | | | | | | | | | Current | | | 84 | | | 29 | | | 119 | | | 6,557 | | 30-59 days past due | | | 4 | | | | | | 4 | | | 127 | | 60-89 days past due | | | 2 | | | | | | 2 | | | 54 | | 90+ days past due | | | | | | 1 | | | | | | 8 | | Non-performing | | | 9 | | | 4 | | | 1 | | | 214 | | Total | | $ | 987 | | $ | 341 | | $ | 4,698 | | $ | 44,283 | |
|
| Wholesale Receivables |
|
| Accounts, Notes, Loans and Financing Receivable |
|
| Credit Quality Analysis |
The credit quality analysis of wholesale receivables by year of origination was as follows: | | | | | | | | | | | | | | | | October 27, 2024 | | | | 2024 | | 2023 | | 2022 | | 2021 | | Wholesale receivables: | | | | | | | | | | | | | | Agriculture and turf: | | | | | | | | | | | | | | Current | | $ | 650 | | $ | 164 | | $ | 29 | | $ | 6 | | 30+ days past due | | | | | | | | | | | | | | Non-performing | | | | | | | | | | | | | | Construction and forestry: | | | | | | | | | | | | | | Current | | | 21 | | | 11 | | | 3 | | | 12 | | 30+ days past due | | | | | | | | | | | | | | Non-performing | | | | | | | | | | | | | | Total | | $ | 671 | | $ | 175 | | $ | 32 | | $ | 18 | | | | | | | | | | | | | | | | | | October 27, 2024 | | | | 2020 | | Prior Years | | Revolving | | Total | | Wholesale receivables: | | | | | | | | | | | | | | Agriculture and turf: | | | | | | | | | | | | | | Current | | $ | 1 | | | | | $ | 6,718 | | $ | 7,568 | | 30+ days past due | | | | | | | | | | | | | | Non-performing | | | | | $ | 1 | | | | | | 1 | | Construction and forestry: | | | | | | | | | | | | | | Current | | | | | | | | | 1,311 | | | 1,358 | | 30+ days past due | | | | | | | | | | | | | | Non-performing | | | | | | | | | | | | | | Total | | $ | 1 | | $ | 1 | | $ | 8,029 | | $ | 8,927 | |
| | | | | | | | | | | | | | | | October 29, 2023 | | | | 2023 | | 2022 | | 2021 | | 2020 | | Wholesale receivables: | | | | | | | | | | | | | | Agriculture and turf: | | | | | | | | | | | | | | Current | | $ | 631 | | $ | 93 | | $ | 21 | | $ | 4 | | 30+ days past due | | | | | | | | | | | | | | Non-performing | | | | | | | | | | | | | | Construction and forestry: | | | | | | | | | | | | | | Current | | | 23 | | | 5 | | | 20 | | | | | 30+ days past due | | | | | | | | | | | | | | Non-performing | | | | | | | | | | | | | | Total | | $ | 654 | | $ | 98 | | $ | 41 | | $ | 4 | | | | | | | | | | | | | | | | | | October 29, 2023 | | | | 2019 | | Prior Years | | Revolving | | Total | | Wholesale receivables: | | | | | | | | | | | | | | Agriculture and turf: | | | | | | | | | | | | | | Current | | $ | 1 | | $ | 160 | | $ | 5,175 | | $ | 6,085 | | 30+ days past due | | | | | | | | | | | | | | Non-performing | | | 1 | | | | | | | | | 1 | | Construction and forestry: | | | | | | | | | | | | | | Current | | | | | | 76 | | | 712 | | | 836 | | 30+ days past due | | | | | | | | | | | | | | Non-performing | | | | | | | | | | | | | | Total | | $ | 2 | | $ | 236 | | $ | 5,887 | | $ | 6,922 | |
|
| 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 the end of 2024 and 2023 follow: | | | | | | | | | | 2024 | | 2023 | | Trade accounts and notes receivable: | | | | | | | | Production & precision ag | | $ | 1,532 | | $ | 2,642 | | Small ag & turf | | | 1,657 | | | 2,344 | | Construction & forestry | | | 2,137 | | | 2,753 | | Trade accounts and notes receivable – net | | $ | 5,326 | | $ | 7,739 | |
|
| Schedule of Allowance for Credit Losses on Trade Accounts and Notes Receivable |
The allowance for credit losses on trade accounts and notes receivable at October 27, 2024, October 29, 2023, and October 30, 2022, as well as the related activity, follow: | | | | | | | | | | | | | 2024 | | 2023 | | 2022 | | Beginning of year balance | | $ | 35 | | $ | 36 | | $ | 41 | | Provision | | | 34 | | | 7 | | | 1 | | Write-offs | | | (5) | | | (8) | | | (5) | | Translation adjustments | | | 2 | | | | | | (1) | | End of year balance* | | $ | 66 | | $ | 35 | | $ | 36 | |
* Individual allowances were not significant.
|
| 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 the end of 2024 and 2023 follow: | | | | | | | | | | | | | | | | 2024 | | 2023 | | | | Unrestricted/Securitized | | Unrestricted/Securitized | | Retail notes: | | | | | | | | | | | | | | Agriculture and turf | | $ | 25,102 | | $ | 7,203 | | $ | 26,955 | | $ | 6,052 | | Construction and forestry | | | 4,550 | | | 1,754 | | | 4,623 | | | 1,442 | | Total | | | 29,652 | | | 8,957 | | | 31,578 | | | 7,494 | | Wholesale notes | | | 8,951 | | | | | | 6,947 | | | | | Revolving charge accounts | | | 4,730 | | | | | | 4,789 | | | | | Financing leases (direct
and sales-type) | | | 3,032 | | | | | | 2,906 | | | | | Total financing receivables | | | 46,365 | | | 8,957 | | | 46,220 | | | 7,494 | | Less: | | | | | | | | | | | | | | Unearned finance income: | | | | | | | | | | | | | | Retail notes | | | 1,467 | | | 187 | | | 1,906 | | | 137 | | Wholesale notes | | | 24 | | | | | | 25 | | | | | Revolving charge accounts | | | 76 | | | | | | 91 | | | | | Financing leases | | | 307 | | | | | | 350 | | | | | Total | | | 1,874 | | | 187 | | | 2,372 | | | 137 | | Allowance for credit losses | | | 182 | | | 47 | | | 175 | | | 22 | | Financing receivables – net | | $ | 44,309 | | $ | 8,723 | | $ | 43,673 | | $ | 7,335 | |
|
| 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 |
The balances at the end of 2024 and 2023 were as follows: | | | | | | | | | | 2024 | | 2023 | | Retail notes*: | | | | | | | | Agriculture and turf | | $ | 376 | | $ | 1,084 | | Construction and forestry | | | 271 | | | 320 | | Total | | | 647 | | | 1,404 | | Wholesale notes | | | 8,951 | | | 6,947 | | Direct financing and sales-type leases* | | | 295 | | | 494 | | Total financing receivables | | | 9,893 | | | 8,845 | | Less: | | | | | | | | Unearned finance income: | | | | | | | | Retail notes | | | 37 | | | 137 | | Wholesale notes | | | 24 | | | 25 | | Direct financing and sales-type leases | | | 47 | | | 60 | | Total | | | 108 | | | 222 | | Financing receivables related to our sales of equipment | | $ | 9,785 | | $ | 8,623 | |
* These balances arise from sales and direct financing leases of equipment by company-owned dealers or through direct sales.
|