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Other Income and Administrative and Operating Expenses
12 Months Ended
Oct. 31, 2021
Other Income and Administrative and Operating Expenses  
Other Income and Administrative and Operating Expenses

Note 16. Other Income and Administrative and Operating Expenses

The major components of other income and administrative and operating expenses were as follows (in millions of dollars):

2021

2020

2019

    

Other income

Fees from John Deere

$

25.6

$

25.5

$

30.7

Interest income

2.9

13.8

33.1

Operating lease residual gains - net

65.0

Freestanding credit enhancement recoveries *

14.3

Other

 

13.7

 

19.2

 

15.8

Total

$

121.5

$

58.5

$

79.6

Administrative and operating expenses

Compensation and benefits

$

249.0

$

251.0

$

260.5

Operating lease residual losses - net and impairments

53.6

159.5

Computer processing and software

52.0

47.2

50.6

Property taxes on leased assets

29.0

30.0

21.1

Other

 

76.0

 

88.8

41.3

Total

$

406.0

$

470.6

$

533.0

*            As a result of the adoption of ASU No. 2016-13 in 2021, recoveries from freestanding credit enhancements are recognized in other income. Prior to the adoption of ASU No. 2016-13, recoveries from freestanding credit enhancements were recorded in the provision for credit losses (see Note 3).

The Company recorded net gains in 2021 of $65.0 million on operating lease residual values, which had been revised downward over the term of the leases. Better than expected conditions in the agriculture and turf and the construction and forestry markets led to favorable results when the matured lease equipment was sold. In 2020 and 2019, the Company recorded net losses on operating lease residual values and impairments of $53.6 million and $159.5 million, respectively (see Note 7).