XML 47 R36.htm IDEA: XBRL DOCUMENT v3.20.4
Allowance for Credit Losses and Credit Quality of Receivables (Tables)
12 Months Ended
Nov. 01, 2020
Allowance for Credit Losses and Credit Quality of Receivables  
Age Analysis of past due Receivables that are still accruing interest and non-performing Receivables

An age analysis of past due Receivables that are still accruing interest and non-performing Receivables at November 1, 2020 was as follows (in millions of dollars):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

90 Days or

​

​

​

​

​

​

30-59 Days

​

60-89 Days

​

Greater

​

Total

 

​

​

Past Due

​

Past Due

​

Past Due

​

Past Due

 

Retail notes:

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

$

101.2

​

$

43.6

​

$

.5

​

$

145.3

​

Construction and forestry

​

 

80.0

​

 

38.1

​

​

1.9

​

 

120.0

​

Revolving charge accounts:

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

 

11.5

​

 

3.5

​

​

​

​

 

15.0

​

Construction and forestry

​

 

2.4

​

 

1.1

​

​

​

​

 

3.5

​

Wholesale receivables:

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

 

3.9

​

 

4.4

​

​

1.1

​

 

9.4

​

Construction and forestry

​

 

.3

​

​

​

​

​

​

​

 

.3

​

Financing leases:

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

 

10.2

​

 

4.0

​

​

1.5

​

 

15.7

​

Construction and forestry

​

 

2.0

​

 

.7

​

​

​

​

 

2.7

​

Total Receivables

​

$

211.5

​

$

95.4

​

$

5.0

​

$

311.9

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total

    

Total Non-

    

​

​

    

Total

​

​

​

Past Due

​

Performing

​

Current

​

Receivables

 

Retail notes:

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

$

145.3

​

$

158.3

​

$

17,727.4

​

$

18,031.0

​

Construction and forestry

​

 

120.0

​

 

73.5

​

​

3,622.7

​

 

3,816.2

​

Revolving charge accounts:

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

 

15.0

​

 

5.4

​

​

3,710.3

​

 

3,730.7

​

Construction and forestry

​

 

3.5

​

 

.9

​

​

92.3

​

 

96.7

​

Wholesale receivables:

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

 

9.4

​

 

4.0

​

​

5,693.7

​

 

5,707.1

​

Construction and forestry

​

 

.3

​

​

​

​

​

1,385.9

​

 

1,386.2

​

Financing leases:

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

 

15.7

​

 

14.4

​

​

613.8

​

 

643.9

​

Construction and forestry

​

 

2.7

​

 

6.0

​

​

136.8

​

 

145.5

​

Total Receivables

​

$

311.9

​

$

262.5

​

$

32,982.9

​

$

33,557.3

​

​

An age analysis of past due Receivables that are still accruing interest and non-performing Receivables at November 3, 2019 was as follows (in millions of dollars):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

90 Days or

​

​

​

​

​

​

30-59 Days

​

60-89 Days

​

Greater

​

Total

 

​

​

Past Due

​

Past Due

​

Past Due

​

Past Due

 

Retail notes:

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

$

120.0

​

$

64.2

​

$

1.5

​

$

185.7

​

Construction and forestry

​

 

73.9

​

 

26.6

​

​

​

​

 

100.5

​

Revolving charge accounts:

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

 

19.1

​

 

9.2

​

​

​

​

 

28.3

​

Construction and forestry

​

 

3.2

​

 

1.2

​

​

​

​

 

4.4

​

Wholesale receivables:

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

 

4.1

​

 

1.9

​

​

.8

​

 

6.8

​

Construction and forestry

​

 

.1

​

​

.3

​

​

.3

​

 

.7

​

Financing leases:

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

 

14.6

​

 

7.8

​

​

.5

​

 

22.9

​

Construction and forestry

​

 

2.8

​

 

.7

​

​

​

​

 

3.5

​

Total Receivables

​

$

237.8

​

$

111.9

​

$

3.1

​

$

352.8

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Total

    

Total Non-

    

​

​

    

Total

 

​

​

Past Due

​

Performing

​

Current

​

Receivables

 

Retail notes:

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

$

185.7

​

$

168.7

​

$

15,831.5

​

$

16,185.9

​

Construction and forestry

​

 

100.5

​

 

112.9

​

​

3,100.8

​

 

3,314.2

​

Revolving charge accounts:

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

 

28.3

​

 

6.1

​

​

3,727.9

​

 

3,762.3

​

Construction and forestry

​

 

4.4

​

 

.9

​

​

95.4

​

 

100.7

​

Wholesale receivables:

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

 

6.8

​

 

6.3

​

​

6,544.6

​

 

6,557.7

​

Construction and forestry

​

 

.7

​

​

2.9

​

​

2,145.5

​

 

2,149.1

​

Financing leases:

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

 

22.9

​

 

11.6

​

​

569.8

​

 

604.3

​

Construction and forestry

​

 

3.5

​

 

2.5

​

​

141.3

​

 

147.3

​

Total Receivables

​

$

352.8

​

$

311.9

​

$

32,156.8

​

$

32,821.5

​

​

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 1, 2020, November 3, 2019, and October 28, 2018 was as follows (in millions of dollars):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

Revolving

    

​

​

    

​

​

    

​

​

 

​

​

Retail

​

Charge

​

Wholesale

​

Financing

​

Total

 

​

​

Notes

​

Accounts

​

Receivables

​

Leases

​

Receivables

 

2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning of year balance

​

$

48.3

​

$

39.3

​

$

7.6

​

$

5.4

​

$

100.6

​

Provision (credit) for credit losses

​

 

65.2

​

​

25.1

​

​

(1.9)

​

​

1.0

​

 

89.4

​

Write-offs

​

 

(46.9)

​

​

(51.6)

​

​

(.9)

​

​

(2.2)

​

 

(101.6)

​

Recoveries

​

 

5.9

​

​

29.5

​

​

1.3

​

​

.5

​

 

37.2

​

Other changes

​

 

(.1)

​

​

​

​

​

3.8

​

​

(.2)

​

 

3.5

​

End of year balance

​

$

72.4

​

$

42.3

​

$

9.9

​

$

4.5

​

$

129.1

​

Balance individually evaluated *

​

$

.8

​

​

​

​

$

5.0

​

​

​

​

$

5.8

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Receivables:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

End of year balance

​

$

21,847.2

​

$

3,827.4

​

$

7,093.3

​

$

789.4

​

$

33,557.3

​

Balance individually evaluated *

​

$

83.8

​

$

.9

​

$

13.0

​

$

1.9

​

$

99.6

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2019

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

 

Allowance:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning of year balance

​

$

51.6

​

$

42.3

​

$

8.0

​

$

4.8

​

$

106.7

​

Provision (credit) for credit losses

​

 

18.3

​

​

28.6

​

​

(4.2)

​

​

2.7

​

 

45.4

​

Write-offs

​

 

(28.7)

​

​

(56.9)

​

​

(.3)

​

​

(2.4)

​

 

(88.3)

​

Recoveries

​

 

7.3

​

​

25.3

​

​

4.1

​

​

.3

​

 

37.0

​

Translation adjustments

​

 

(.2)

​

​

​

​

​

​

​

​

​

​

 

(.2)

​

End of year balance

​

$

48.3

​

$

39.3

​

$

7.6

​

$

5.4

​

$

100.6

​

Balance individually evaluated *

​

$

1.9

​

​

​

​

$

2.9

​

​

​

​

$

4.8

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Receivables:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

End of year balance

​

$

19,500.1

​

$

3,863.0

​

$

8,706.8

​

$

751.6

​

$

32,821.5

​

Balance individually evaluated *

​

$

65.9

​

$

.1

​

$

9.6

​

$

1.9

​

$

77.5

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2018

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

 

Allowance:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning of year balance

​

$

55.7

​

$

39.7

​

$

9.9

​

$

8.5

​

$

113.8

​

Provision (credit) for credit losses

​

 

11.9

​

​

36.7

​

​

(.8)

​

​

(.6)

​

 

47.2

​

Write-offs

​

 

(22.1)

​

​

(54.1)

​

​

(1.1)

​

​

(3.9)

​

 

(81.2)

​

Recoveries

​

 

6.4

​

​

20.0

​

​

.2

​

​

.8

​

 

27.4

​

Translation adjustments

​

 

(.3)

​

​

​

​

​

(.2)

​

​

​

​

 

(.5)

​

End of year balance

​

$

51.6

​

$

42.3

​

$

8.0

​

$

4.8

​

$

106.7

​

Balance individually evaluated *

​

$

.1

​

​

​

​

$

2.8

​

​

​

​

$

2.9

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Receivables:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

End of year balance

​

$

18,110.9

​

$

3,797.6

​

$

7,967.6

​

$

770.6

​

$

30,646.7

​

Balance individually evaluated *

​

$

59.2

​

$

2.3

​

$

8.8

​

​

​

​

$

70.3

​

*              Remainder is collectively evaluated.

Analysis of Impaired Receivables

An analysis of impaired Receivables at November 1, 2020 and November 3, 2019 was as follows (in millions of dollars):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

Unpaid

    

​

​

    

Average

 

​

​

Recorded

​

Principal

​

Specific

​

Recorded

 

​

​

Investment

​

Balance

​

Allowance

​

Investment

 

2020 *

​

​

​

​

​

​

​

​

​

​

​

​

​

Receivables with specific allowance:

​

​

​

​

​

​

​

​

​

​

​

​

​

Retail notes

​

$

1.4

​

$

1.4

​

$

.8

​

$

3.0

​

Wholesale receivables

​

​

13.1

​

​

13.0

​

​

5.0

​

​

14.7

​

Total with specific allowance

​

 

14.5

​

 

14.4

​

 

5.8

​

 

17.7

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Receivables without specific allowance:

​

​

​

​

​

​

​

​

​

​

​

​

​

Retail notes

​

​

29.4

​

​

28.5

​

​

​

​

​

31.7

​

Total without specific allowance

​

 

29.4

​

 

28.5

​

​

​

​

 

31.7

​

Total

​

$

43.9

​

$

42.9

​

$

5.8

​

$

49.4

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

$

40.8

​

$

39.9

​

$

5.8

​

$

46.1

​

Construction and forestry

​

 

3.1

​

​

3.0

​

​

​

​

​

3.3

​

Total

​

$

43.9

​

$

42.9

​

$

5.8

​

$

49.4

​

(continued)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Unpaid

    

​

​

    

Average

​

​

​

Recorded

​

Principal

​

Specific

​

Recorded

​

​

​

Investment

​

Balance

​

Allowance

​

Investment

​

2019 *

​

​

​

​

​

​

​

​

​

​

​

​

​

Receivables with specific allowance:

​

​

​

​

​

​

​

​

​

​

​

​

​

Retail notes

​

$

4.9

​

$

4.6

​

$

1.9

​

$

5.0

​

Wholesale receivables

​

​

5.3

​

​

5.3

​

​

2.9

​

​

5.7

​

Total with specific allowance

​

 

10.2

​

 

9.9

​

 

4.8

​

 

10.7

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Receivables without specific allowance:

​

​

​

​

​

​

​

​

​

​

​

​

​

Retail notes

​

 

22.9

​

​

22.4

​

​

​

​

​

25.0

​

Wholesale receivables

​

​

3.9

​

​

3.9

​

​

​

​

​

4.1

​

Total without specific allowance

​

 

26.8

​

 

26.3

​

​

​

​

 

29.1

​

Total

​

$

37.0

​

$

36.2

​

$

4.8

​

$

39.8

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

$

30.3

​

$

29.7

​

$

4.6

​

$

32.0

​

Construction and forestry

​

 

6.7

​

​

6.5

​

​

.2

​

​

7.8

​

Total

​

$

37.0

​

$

36.2

​

$

4.8

​

$

39.8

​

*             Finance income recognized was not material.

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

Total Receivable write-offs and recoveries, by product, and as a percentage of average balances held during the year, were as follows (in millions of dollars):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

2019

​

2018

 

​

    

Dollars

    

Percent

    

Dollars

    

Percent

    

Dollars

    

Percent

 

Write-offs:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Retail notes:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

$

(13.7)

 

(.08)

%

$

(8.0)

 

(.05)

%

$

(6.4)

 

(.04)

%

Construction and forestry

​

 

(33.2)

 

(.96)

​

 

(20.7)

 

(.67)

​

 

(15.7)

 

(.57)

​

Total retail notes

​

 

(46.9)

 

(.24)

​

 

(28.7)

 

(.15)

​

 

(22.1)

 

(.13)

​

Revolving charge accounts

​

 

(51.6)

 

(1.51)

​

 

(56.9)

 

(1.65)

​

 

(54.1)

 

(1.67)

​

Wholesale receivables

​

 

(.9)

 

(.01)

​

 

(.3)

 

​

​

 

(1.1)

 

(.01)

​

Financing leases

​

 

(2.2)

 

(.31)

​

 

(2.4)

 

(.34)

​

 

(3.9)

 

(.55)

​

Total write-offs

​

 

(101.6)

 

(.31)

​

 

(88.3)

 

(.27)

​

 

(81.2)

 

(.27)

​

Recoveries:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Retail notes:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

 

4.2

 

.03

​

 

6.0

 

.04

​

 

4.7

 

.03

​

Construction and forestry

​

 

1.7

 

.05

​

 

1.3

 

.04

​

 

1.7

 

.06

​

Total retail notes

​

 

5.9

 

.03

​

 

7.3

 

.04

​

 

6.4

 

.04

​

Revolving charge accounts

​

 

29.5

 

.86

​

 

25.3

 

.73

​

 

20.0

 

.62

​

Wholesale receivables

​

 

1.3

 

.02

​

 

4.1

 

.04

​

 

.2

 

​

​

Financing leases

​

 

.5

 

.07

​

 

.3

 

.04

​

 

.8

 

.11

​

Total recoveries

​

 

37.2

 

.11

​

 

37.0

 

.11

​

 

27.4

 

.09

​

Total net write-offs

​

$

(64.4)

 

(.20)

%

$

(51.3)

 

(.16)

%

$

(53.8)

 

(.18)

%