Fair Value Measurements (Tables)

12 Months Ended

Nov. 01, 2020

Fair Value Measurements

Fair Value of Financial Instruments

The fair values of financial instruments that do not approximate the carrying values at November 1, 2020 and November 3, 2019 were as follows (in millions of dollars):

	2020				2019
	Carrying		Fair		Carrying		Fair
	Value		Value *		Value		Value *
Receivables financed – net	$	28,751.6	$	28,931.7	$	28,382.5	$	28,396.6
Retail notes securitized – net		4,676.6		4,772.9		4,338.4		4,361.9
Securitization borrowings		4,656.2		4,697.6		4,277.0		4,301.7
Current maturities of long-term borrowings		5,741.6		5,801.1		5,716.6		5,727.9
Long-term borrowings		19,311.1		19,784.4		21,052.4		21,369.9

*    Fair value measurements above were Level 3 for all Receivables and Level 2 for all borrowings.

Assets and Liabilities Measured at Fair Value as Level 2 Measurements on a Recurring Basis

Assets and liabilities measured at November 1, 2020 and November 3, 2019 at fair value as Level 2 measurements on a recurring basis were as follows (in millions of dollars):

	2020		2019
Marketable securities
International debt securities	$	2.2	$	3.2
Receivables from John Deere
Derivatives:
Interest rate contracts		575.5		331.4
Cross-currency interest rate contracts		7.7		.5
Other assets
Derivatives:
Foreign exchange contracts		3.8		1.9
Total assets *	$	589.2	$	337.0
Other payables to John Deere
Derivatives:
Interest rate contracts	$	29.4	$	44.4
Cross-currency interest rate contracts		.7		3.0
Accounts payable and accrued expenses
Derivatives:
Foreign exchange contracts		.9		9.9
Total liabilities	$	31.0	$	57.3

*    Excluded from this table are the Company’s cash equivalents, which were carried at cost that approximates fair value. The cash equivalents consist primarily of time deposits and money market funds.

Fair Value, Nonrecurring Level 3 Measurements from Impairments

Fair value, nonrecurring Level 3 measurements from impairments at November 1, 2020, November 3, 2019, and October 28, 2018 were as follows (in millions of dollars):

	Fair Value				Losses **
	2020 *		2019		2020		2019		2018
Equipment on operating leases - net	$	340.3	$	855.4	$	21.0	$	59.4
Other assets		56.5		141.9		9.8		18.0
Total	$	396.8	$	997.3	$	30.8	$	77.4

*   Fair value as of May 3, 2020.

**           See Receivables with specific allowances in Note 5 that were not significant. See Note 7 for impairments on lease residual values.