ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY OF RECEIVABLES (Tables)

12 Months Ended

Nov. 02, 2025

Credit Quality and Aging Analysis

Accrued finance income and lease revenue reversed on non-performing Receivables, and finance income and lease revenue recognized from cash payments on non-performing Receivables

Accrued finance income and lease revenue reversed on non-performing Receivables, and finance income and lease revenue recognized from cash payments on non-performing Receivables were as follows:

	2025		2024		2023
Accrued finance income and lease revenue reversed	$	63.3	$	43.1	$	17.1
Finance income and lease revenue recognized on cash payments		57.0		37.1		18.4

Analysis of the Allowance for Credit Losses and Investment in Receivables

An analysis of the allowance for credit losses and investment in Receivables at November 2, 2025, October 27, 2024, and October 29, 2023 was as follows:

	Retail Notes		Revolving
	& Financing		Charge		Wholesale		Total
	Leases		Accounts		Receivables		Receivables
2025
Allowance:
Beginning of year balance	$	192.4	$	7.6	$	27.5	$	227.5
Provision (credit) for credit losses*		198.4		65.7		(7.6)		256.5
Write-offs		(179.7)		(107.2)		(3.8)		(290.7)
Recoveries		13.7		41.3				55.0
Translation adjustments		.3				1.5		1.8
End of year balance	$	225.1	$	7.4	$	17.6	$	250.1
Receivables:
End of year balance	$	34,316.1	$	4,677.0	$	12,655.9	$	51,649.0

2024
Allowance:
Beginning of year balance	$	114.9	$	20.4	$	11.1	$	146.4
Provision for credit losses*		228.8		51.6		18.2		298.6
Write-offs		(162.5)		(93.8)				(256.3)
Recoveries		11.6		29.4		.2		41.2
Translation adjustments		(.4)				(2.0)		(2.4)
End of year balance	$	192.4	$	7.6	$	27.5	$	227.5
Receivables:
End of year balance	$	35,574.7	$	4,538.8	$	14,114.1	$	54,227.6

2023
Allowance:
Beginning of year balance	$	95.4	$	21.9	$	11.1	$	128.4
Provision (credit) for credit losses*		67.6		21.2		(.2)		88.6
Write-offs		(60.8)		(44.4)		(.2)		(105.4)
Recoveries		12.9		21.8		.6		35.3
Translation adjustments		(.2)		(.1)		(.2)		(.5)
End of year balance	$	114.9	$	20.4	$	11.1	$	146.4
Receivables:
End of year balance	$	33,419.7	$	4,594.4	$	13,330.1	$	51,344.2

* Excludes provision (credit) for credit losses on unfunded commitments of $.3, $2.3, and $(.1) for the years ended November 2, 2025, October 27, 2024, and October 29, 2023, respectively. The estimated credit losses related to unfunded commitments are recorded in “Accounts payable and accrued expenses.”

Schedule of Weighted-Average Effects for Contract Modifications in Months

	2025				2024
Current	$	148.9		$	68.0
30-59 days past due		6.3			1.3
60-89 days past due		2.6			1.4
90+ days past due					.1
Non-performing		12.5			12.7
Total	$	170.3		$	83.5
Percent of Receivable portfolio		0.33	%		0.15	%

Ending Amortized Cost and Performance of Receivables Modified

We continue to monitor the performance of Receivables that are modified with borrowers experiencing financial difficulty. The ending amortized cost and performance of Receivables modified in 2025 and 2024 were as follows:

	2025				2024
Current	$	148.9		$	68.0
30-59 days past due		6.3			1.3
60-89 days past due		2.6			1.4
90+ days past due					.1
Non-performing		12.5			12.7
Total	$	170.3		$	83.5
Percent of Receivable portfolio		0.33	%		0.15	%

Schedule of Troubled Debt Restructurings

The following table includes Receivable contracts identified as troubled debt restructurings, which were primarily retail notes:

	2023
Number of receivable contracts		149
Pre-modification balance	$	7.2
Post-modification balance		6.7

Total Write-offs and Recoveries, by Product, and as a Percentage of Average Balances Held

Write-offs and recoveries of Receivables, and as a percentage of average balances held, by product, during the year, were as follows:

	2025				2024				2023
	Dollars		Percent		Dollars		Percent		Dollars		Percent
Write-offs:
Retail notes & financing leases:
Agriculture and turf	$	(99.3)	(.35)	%	$	(80.0)	(.28)	%	$	(31.7)	(.12)	%
Construction and forestry		(80.4)	(1.29)			(82.5)	(1.44)			(29.1)	(.55)
Total retail notes & financing leases		(179.7)	(.52)			(162.5)	(.48)			(60.8)	(.20)
Revolving charge accounts		(107.2)	(2.55)			(93.8)	(2.40)			(44.4)	(1.17)
Wholesale receivables		(3.8)	(.03)							(.2)
Total write-offs		(290.7)	(.55)			(256.3)	(.48)			(105.4)	(.23)
Recoveries:
Retail notes & financing leases:
Agriculture and turf		8.5	.03			8.4	.03			8.8	.03
Construction and forestry		5.2	.08			3.2	.06			4.1	.08
Total retail notes & financing leases		13.7	.04			11.6	.03			12.9	.04
Revolving charge accounts		41.3	.99			29.4	.75			21.8	.58
Wholesale receivables						.2				.6	.01
Total recoveries		55.0	.10			41.2	.08			35.3	.08
Total net write-offs	$	(235.7)	(.45)	%	$	(215.1)	(.40)	%	$	(70.1)	(.15)	%

Customer Receivables

Credit Quality and Aging Analysis

Credit Quality and Aging Analysis

The credit quality and aging analysis of Customer Receivables by year of origination was as follows:

	November 2, 2025
	2025		2024		2023		2022		2021		Prior Years		Revolving Charge Accounts		Total
Customer Receivables:
Agriculture and turf
Current	$	10,793.0	$	7,561.2	$	4,784.4	$	2,755.4	$	1,228.4	$	260.0	$	4,489.1	$	31,871.5
30-59 days past due		33.0		65.9		53.1		34.8		14.5		5.9		33.9		241.1
60-89 days past due		11.7		30.7		22.4		11.2		6.9		2.2		9.0		94.1
90+ days past due		.5		1.8		.4		.8		2.2		.5				6.2
Non-performing		38.8		97.2		89.0		51.6		28.1		15.6		13.5		333.8
Construction and forestry
Current		2,774.6		1,726.0		888.1		392.5		108.6		9.1		124.1		6,023.0
30-59 days past due		38.8		42.0		27.4		11.6		3.6		1.3		4.6		129.3
60-89 days past due		19.2		13.3		11.7		6.3		1.5		.7		1.7		54.4
90+ days past due		.2		.8						.3						1.3
Non-performing		27.5		80.6		70.6		34.1		17.5		7.0		1.1		238.4
Total	$	13,737.3	$	9,619.5	$	5,947.1	$	3,298.3	$	1,411.6	$	302.3	$	4,677.0	$	38,993.1
Write-offs for 2025:
Agriculture and turf	$	5.0	$	29.3	$	33.0	$	19.1	$	6.7	$	6.2	$	99.9	$	199.2
Construction and forestry		7.2		32.4		26.2		10.3		2.7		1.6		7.3		87.7
Total	$	12.2	$	61.7	$	59.2	$	29.4	$	9.4	$	7.8	$	107.2	$	286.9

	October 27, 2024
	2024		2023		2022		2021		2020		Prior Years		Revolving Charge Accounts		Total
Customer Receivables:
Agriculture and turf
Current	$	12,957.7	$	7,528.9	$	4,715.5	$	2,633.1	$	915.6	$	232.8	$	4,351.5	$	33,335.1
30-59 days past due		39.5		93.3		49.2		25.2		10.6		3.6		39.2		260.6
60-89 days past due		18.4		43.7		16.7		8.8		7.0		1.9		12.3		108.8
90+ days past due		.4		.9		.3		2.2		.2						4.0
Non-performing		22.2		84.9		69.9		40.4		18.4		11.7		13.9		261.4
Construction and forestry
Current		2,636.0		1,564.0		893.1		380.1		83.2		41.9		114.2		5,712.5
30-59 days past due		49.4		41.3		23.2		9.8		2.5		1.5		4.0		131.7
60-89 days past due		20.0		23.5		8.2		5.8		1.5		.3		1.8		61.1
90+ days past due		.4		.5		.1		.2		.2						1.4
Non-performing		38.2		89.4		64.5		30.6		8.5		3.8		1.9		236.9
Total	$	15,782.2	$	9,470.4	$	5,840.7	$	3,136.2	$	1,047.7	$	297.5	$	4,538.8	$	40,113.5
Write-offs for 2024:
Agriculture and turf	$	4.0	$	29.2	$	23.5	$	10.3	$	9.9	$	3.1	$	86.0	$	166.0
Construction and forestry		8.2		33.4		23.4		10.3		4.7		2.5		7.8		90.3
Total	$	12.2	$	62.6	$	46.9	$	20.6	$	14.6	$	5.6	$	93.8	$	256.3

Wholesale Receivables

Credit Quality and Aging Analysis

Credit Quality and Aging Analysis

The credit quality and aging analysis of wholesale receivables was as follows:

	November 2, 2025		October 27, 2024
Wholesale receivables:
Agriculture and turf
Current	$	9,427.4	$	10,439.1
30-59 days past due		5.2		4.5
60-89 days past due				4.2
90+ days past due		.6		10.2
Non-performing		9.1		35.3
Construction and forestry
Current		3,205.7		3,599.9
30-59 days past due		1.1		8.1
60-89 days past due		1.1		5.1
90+ days past due		5.7		7.7
Total	$	12,655.9	$	14,114.1