XML 49 R34.htm IDEA: XBRL DOCUMENT v3.23.3
Allowance for Credit Losses and Credit Quality of Receivables (Tables)
12 Months Ended
Oct. 29, 2023
Allowance for Credit Losses and Credit Quality of 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

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:

​

​

​

​

​

​

​

​

​

​

​

​

​

2023

​

2022

​

2021

Accrued finance income and lease revenue reversed

​

$

17.1

​

$

11.3

​

$

12.4

Finance income and lease revenue recognized on cash payments

​

​

18.4

​

​

15.4

​

​

17.1

​

Total Receivable balances represent principal plus accrued interest. Receivable balances are written off to the allowance for credit losses when, in the judgment of management, they are considered uncollectible. Write-offs generally occur when Customer Receivables are 120 days delinquent, and on a case-by-case basis when wholesale receivables are 60 days delinquent. In these situations, collateral is repossessed (for collateral-dependent Receivables) or the account is designated for litigation, and the estimated uncollectible amount is written off to the allowance for credit losses.

Analysis of the Allowance for Credit Losses and Investment in Receivables

An analysis of the allowance for credit losses and investment in Receivables at October 29, 2023, October 30, 2022, and October 31, 2021 was as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Retail Notes

    

Revolving

    

​

​

    

​

​

 

​

​

& Financing

​

Charge

​

Wholesale

​

Total

 

​

​

Leases

​

Accounts

​

Receivables

​

Receivables

 

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2022

    

​

​

    

​

​

    

​

​

    

​

​

 

Allowance:

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning of year balance

​

$

96.5

​

$

20.8

​

$

11.7

​

$

129.0

​

Provision (credit) for credit losses*

​

 

26.1

​

​

(1.8)

​

​

.1

​

 

24.4

​

Write-offs

​

 

(40.7)

​

​

(26.8)

​

​

(.3)

​

 

(67.8)

​

Recoveries

​

 

14.4

​

​

29.7

​

​

.1

​

 

44.2

​

Translation adjustments

​

 

(.9)

​

​

​

​

​

(.5)

​

 

(1.4)

​

End of year balance

​

$

95.4

​

$

21.9

​

$

11.1

​

$

128.4

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Receivables:

​

​

​

​

​

​

​

​

​

​

​

​

​

End of year balance

​

$

29,871.3

​

$

4,165.8

​

$

8,404.5

​

$

42,441.6

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2021

    

​

​

    

​

​

    

​

​

    

​

​

 

Allowance:

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning of year balance

​

$

76.9

​

$

42.3

​

$

9.9

​

$

129.1

​

ASU No. 2016-13 adoption

​

 

32.5

​

​

(12.2)

​

​

(.6)

​

 

19.7

​

Provision (credit) for credit losses*

​

 

11.8

​

​

(17.0)

​

​

2.5

​

 

(2.7)

​

Write-offs

​

 

(36.7)

​

​

(27.8)

​

​

(.3)

​

 

(64.8)

​

Recoveries

​

 

11.6

​

​

35.5

​

​

​

​

 

47.1

​

Translation adjustments

​

 

.4

​

​

​

​

​

.2

​

 

.6

​

End of year balance

​

$

96.5

​

$

20.8

​

$

11.7

​

$

129.0

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Receivables:

​

​

​

​

​

​

​

​

​

​

​

​

​

End of year balance

​

$

26,933.3

​

$

3,740.1

​

$

5,951.3

​

$

36,624.7

​

* Excludes provision (credit) for credit losses on unfunded commitments of $(.1), $(.9), and $1.8 for the years ended October 29, 2023, October 30, 2022, and October 31, 2021, respectively. The estimated credit losses related to unfunded commitments are recorded in “Accounts payable and accrued expenses.”

Schedule of Troubled Debt Restructuring Modifications The following table includes Receivable contracts identified as troubled debt restructurings, which were primarily retail notes:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2023

​

2022

​

2021

​

Number of receivable contracts

​

​

149

​

​

199

​

​

326

 

Pre-modification balance

​

$

7.2

​

$

7.0

​

$

12.0

 

Post-modification balance

​

​

6.7

​

​

5.8

​

​

10.7

 

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

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2023

​

2022

​

2021

 

​

    

Dollars

    

Percent

    

Dollars

    

Percent

    

Dollars

    

Percent

 

Write-offs:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Retail notes & financing leases:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

$

(31.7)

 

(.12)

%  

$

(21.4)

 

(.09)

%  

$

(18.6)

 

(.09)

%

Construction and forestry

​

 

(29.1)

 

(.55)

​

 

(19.3)

 

(.39)

​

 

(18.1)

 

(.42)

​

Total retail notes & financing leases

​

 

(60.8)

 

(.20)

​

 

(40.7)

 

(.15)

​

 

(36.7)

 

(.15)

​

Revolving charge accounts

​

 

(44.4)

 

(1.17)

​

 

(26.8)

 

(.77)

​

 

(27.8)

 

(.85)

​

Wholesale receivables

​

 

(.2)

 

​

​

 

(.3)

 

​

​

 

(.3)

 

​

​

Total write-offs

​

 

(105.4)

 

(.23)

​

 

(67.8)

 

(.18)

​

 

(64.8)

 

(.19)

​

Recoveries:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Retail notes & financing leases:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Agriculture and turf

​

 

8.8

 

.03

​

 

10.2

 

.05

​

 

9.2

 

.05

​

Construction and forestry

​

 

4.1

 

.08

​

 

4.2

 

.09

​

 

2.4

 

.06

​

Total retail notes & financing leases

​

 

12.9

 

.04

​

 

14.4

 

.05

​

 

11.6

 

.05

​

Revolving charge accounts

​

 

21.8

 

.58

​

 

29.7

 

.86

​

 

35.5

 

1.08

​

Wholesale receivables

​

 

.6

 

.01

​

 

.1

 

​

​

 

​

 

​

​

Total recoveries

​

 

35.3

 

.08

​

 

44.2

 

.12

​

 

47.1

 

.14

​

Total net write-offs

​

$

(70.1)

 

(.15)

%  

$

(23.6)

 

(.06)

%  

$

(17.7)

 

(.05)

%

​

Customer Receivables  
Allowance for Credit Losses and Credit Quality of Receivables  
Credit Quality Analysis

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

October 29, 2023

​

​

2023

​

2022

​

2021

​

2020

​

2019

​

Prior Years

​

Revolving Charge Accounts

​

Total

Customer Receivables:

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

Agriculture and turf

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Current

​

$

12,998.3

​

$

7,208.2

​

$

4,459.1

​

$

1,970.4

​

$

666.3

​

$

179.3

​

$

4,424.8

​

$

31,906.4

30-59 days past due

​

​

46.8

​

​

66.6

​

​

34.6

​

​

18.7

​

​

8.2

​

​

2.9

​

​

28.1

​

​

205.9

60-89 days past due

​

​

15.8

​

​

22.0

​

​

14.8

​

​

7.8

​

​

3.3

​

​

1.3

​

​

8.6

​

​

73.6

90+ days past due

​

​

1.4

​

​

.8

​

​

2.7

​

​

2.9

​

​

.1

​

​

.1

​

​

​

​

​

8.0

Non-performing

​

​

25.9

​

​

63.7

​

​

44.5

​

​

25.0

​

​

12.9

​

​

12.0

​

​

7.2

​

​

191.2

Construction and forestry

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Current

​

​

2,343.4

​

​

1,586.2

​

​

859.0

​

​

279.2

​

​

65.3

​

​

27.3

​

​

118.6

​

​

5,279.0

30-59 days past due

​

​

44.4

​

​

28.1

​

​

24.8

​

​

8.6

​

​

3.4

​

​

.4

​

​

4.1

​

​

113.8

60-89 days past due

​

​

17.8

​

​

11.4

​

​

11.8

​

​

4.5

​

​

1.0

​

​

.2

​

​

1.8

​

​

48.5

90+ days past due

​

​

.1

​

​

1.2

​

​

.1

​

​

.1

​

​

​

​

​

​

​

​

​

​

​

1.5

Non-performing

​

​

34.1

​

​

67.5

​

​

51.2

​

​

20.7

​

​

7.5

​

​

4.0

​

​

1.2

​

​

186.2

Total Customer Receivables

​

$

15,528.0

​

$

9,055.7

​

$

5,502.6

​

$

2,337.9

​

$

768.0

​

$

227.5

​

$

4,594.4

​

$

38,014.1

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

October 30, 2022

​

​

2022

​

2021

​

2020

​

2019

​

2018

​

Prior Years

​

Revolving Charge Accounts

​

Total

Customer Receivables:

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

 

​

​

Agriculture and turf

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Current

​

$

11,736.1

​

$

6,939.9

​

$

3,479.6

​

$

1,515.8

​

$

581.3

​

$

152.9

​

$

4,022.7

​

$

28,428.3

30-59 days past due

​

​

40.1

​

​

55.8

​

​

31.4

​

​

15.0

​

​

6.4

​

​

2.7

​

​

18.4

​

​

169.8

60-89 days past due

​

​

11.8

​

​

19.5

​

​

10.8

​

​

4.4

​

​

2.0

​

​

1.1

​

​

4.5

​

​

54.1

90+ days past due

​

​

.4

​

​

.2

​

​

.2

​

​

​

​

​

​

​

​

​

​

​

​

​

​

.8

Non-performing

​

​

24.7

​

​

38.4

​

​

29.2

​

​

13.7

​

​

11.2

​

​

10.2

​

​

7.8

​

​

135.2

Construction and forestry

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Current

​

​

2,373.7

​

​

1,526.3

​

​

658.1

​

​

230.7

​

​

57.2

​

​

10.5

​

​

107.7

​

​

4,964.2

30-59 days past due

​

​

44.5

​

​

40.6

​

​

20.7

​

​

7.6

​

​

1.8

​

​

.6

​

​

3.1

​

​

118.9

60-89 days past due

​

​

18.1

​

​

11.4

​

​

6.0

​

​

3.0

​

​

.7

​

​

.1

​

​

1.0

​

​

40.3

90+ days past due

​

​

.3

​

​

1.3

​

​

​

​

​

1.4

​

​

​

​

​

​

​

​

​

​

​

3.0

Non-performing

​

​

19.3

​

​

51.2

​

​

27.6

​

​

15.4

​

​

5.5

​

​

2.9

​

​

.6

​

​

122.5

Total Customer Receivables

​

$

14,269.0

​

$

8,684.6

​

$

4,263.6

​

$

1,807.0

​

$

666.1

​

$

181.0

​

$

4,165.8

​

$

34,037.1

Wholesale Receivables  
Allowance for Credit Losses and Credit Quality of Receivables  
Credit Quality Analysis

The credit quality analysis of wholesale receivables by year of origination was as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

October 29, 2023

​

​

2023

​

2022

​

2021

​

2020

​

2019

​

Prior Years

​

Revolving

​

Total

Wholesale receivables:

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

Agriculture and turf

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Current

​

$

609.5

​

$

92.6

​

$

20.0

​

$

3.9

​

$

.7

​

$

159.9

​

$

9,270.1

​

$

10,156.7

30+ days past due

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

45.8

​

​

45.8

Non-performing

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

5.7

​

​

5.7

Construction and forestry

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Current

​

​

19.4

​

​

2.5

​

​

19.9

​

​

.2

​

​

.1

​

​

75.2

​

​

2,987.6

​

​

3,104.9

30+ days past due

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

17.0

​

​

17.0

Non-performing

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total wholesale receivables

​

$

628.9

​

$

95.1

​

$

39.9

​

$

4.1

​

$

.8

​

$

235.1

​

$

12,326.2

​

$

13,330.1

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

October 30, 2022

​

​

2022

​

2021

​

2020

​

2019

​

2018

​

Prior Years

​

Revolving

​

Total

Wholesale receivables:

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

Agriculture and turf

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Current

​

$

381.3

​

$

62.7

​

$

25.0

​

$

3.8

​

$

.3

​

$

1.1

​

$

6,238.1

​

$

6,712.3

30+ days past due

​

​

​

​

​

.1

​

​

​

​

​

​

​

​

​

​

​

​

​

​

8.3

​

​

8.4

Non-performing

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

5.5

​

​

5.5

Construction and forestry

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Current

​

​

4.8

​

​

28.2

​

​

1.4

​

​

.4

​

​

.1

​

​

​

​

​

1,633.8

​

​

1,668.7

30+ days past due

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

9.6

​

​

9.6

Non-performing

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total wholesale receivables

​

$

386.1

​

$

91.0

​

$

26.4

​

$

4.2

​

$

.4

​

$

1.1

​

$

7,895.3

​

$

8,404.5