DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Nov. 02, 2025

DERIVATIVE INSTRUMENTS

Fair Values of Derivative Instruments in Consolidated Balance Sheets

The fair values of our derivative instruments and the associated notional amounts were as follows:

	November 2, 2025						October 27, 2024
			Fair Value						Fair Value
	Notional		Asset		Liability		Notional		Asset		Liability
Cash flow hedges:
Interest rate contracts - swaps	$	2,675.0			$	20.9	$	2,875.0	$	2.9	$	20.0
Fair value hedges:
Interest rate contracts - swaps		10,929.0	$	150.5		219.1		15,033.9		107.8		445.2
Cross-currency interest rate contracts		1,558.0		91.4		10.6		974.5		30.4
Not designated as hedging instruments:
Interest rate contracts - swaps		7,073.2		17.6		20.2		5,907.0		25.9		15.0
Foreign currency exchange contracts		1,554.1		5.0		5.5		1,707.8		27.7		.8
Cross-currency interest rate contracts		131.9		2.3		5.7		157.8		16.5		.2
Interest rate caps - sold		1,650.8				2.6		1,469.1				8.8
Interest rate caps - purchased		1,650.8		2.6				1,469.1		8.8

Amounts Recorded in the Consolidated Balance Sheets Related to Borrowings and Fair Value Hedges

The amounts recorded in the consolidated balance sheets at November 2, 2025 and October 27, 2024 related to borrowings and fair value hedges are presented in the table below. Fair value hedging adjustments are included in the carrying amount of the hedged items.

			Cumulative
	Carrying		Fair Value
	Amount of		Hedging
2025	Hedged Items		Amounts
Current maturities of long-term external borrowings	$	2,891.2	$	(29.2)
Long-term external borrowings		24,089.0		(201.1)
2024
Current maturities of long-term external borrowings	$	1,781.8	$	7.3
Long-term external borrowings		24,222.6		(562.4)

Gains (Losses) Related to Derivative Instruments on Statements of Consolidated Income

The classification and gains (losses), including accrued interest expense, related to derivative instruments on the statements of consolidated income consisted of the following:

	2025		2024		2023
Fair value hedges:
Interest rate contracts - Interest expense *	$	99.9	$	212.4	$	(518.7)
Cash flow hedges:
Recognized in OCI:
Interest rate contracts - OCI (pretax)	$	.6	$	(9.7)	$	25.4
Reclassified from OCI:
Interest rate contracts - Interest expense		(18.2)		74.0		65.9
Not designated as hedges:
Interest rate contracts - Interest expense *	$	(12.0)	$	(7.1)	$	27.3
Foreign currency exchange contracts – Administrative and operating expenses *		59.7		(102.9)		19.1
Total not designated	$	47.7	$	(110.0)	$	46.4

* Includes interest and foreign currency exchange gains (losses) from cross-currency interest rate contracts.

Impact on Derivative Assets and Liabilities for External Derivatives and those with John Deere Related to Netting Arrangements and Collateral

Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities for external derivatives and those with John Deere related to netting arrangements and any collateral received or paid at November 2, 2025 and October 27, 2024 were as follows:

2025
Derivatives:	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Assets
External	$	5.0	$	(1.6)		$	3.4
John Deere		264.4		(237.3)			27.1
Liabilities
External		5.5		(1.6)			3.9
John Deere		279.1		(237.3)			41.8

2024
Derivatives:	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Assets
External	$	27.7	$	(.1)		$	27.6
John Deere		192.3		(151.2)			41.1
Liabilities
External		.8		(.1)			.7
John Deere		489.2		(151.2)			338.0