We monitor the credit quality of Receivables based on delinquency status, defined as follows:

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:

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, we repossess available collateral or designate the account for litigation, and the estimated uncollectible amount is written off to the allowance for credit losses.

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


	July 28, 2024
	2024		2023		2022		2021		2020		Prior Years		Revolving Charge Accounts		Total
Customer Receivables:
Agriculture and turf
Current	$	9,434.5	$	8,820.5	$	5,301.9	$	3,050.5	$	1,176.3	$	359.4	$	4,300.0	$	32,443.1
30-59 days past due		33.8		77.6		49.1		24.0		9.2		3.6		29.3		226.6
60-89 days past due		13.6		59.4		21.8		10.1		4.0		2.1		9.4		120.4
90+ days past due				1.2		.4		2.6		4.7		.2				9.1
Non-performing		11.8		95.0		77.4		50.3		21.6		15.4		14.5		286.0
Construction and forestry
Current		1,912.3		1,750.4		1,047.4		482.9		120.0		54.3		111.5		5,478.8
30-59 days past due		37.0		53.0		29.2		13.2		4.2		1.0		3.6		141.2
60-89 days past due		10.8		21.0		12.6		7.9		1.6		1.1		1.3		56.3
90+ days past due		.8		1.3		.9		.4		.3		.1				3.8
Non-performing		19.3		89.6		68.3		35.8		12.1		4.9		1.6		231.6
Total	$	11,473.9	$	10,969.0	$	6,609.0	$	3,677.7	$	1,354.0	$	442.1	$	4,471.2	$	38,996.9


	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	$	15,528.0	$	9,055.7	$	5,502.6	$	2,337.9	$	768.0	$	227.5	$	4,594.4	$	38,014.1


	July 30, 2023
	2023		2022		2021		2020		2019		Prior Years		Revolving Charge Accounts		Total
Customer Receivables:
Agriculture and turf
Current	$	9,040.7	$	8,355.6	$	5,064.2	$	2,361.3	$	858.2	$	282.6	$	4,284.0	$	30,246.6
30-59 days past due		52.9		73.3		43.5		20.4		10.2		3.4		19.4		223.1
60-89 days past due		17.2		25.6		13.2		7.5		3.9		1.1		5.6		74.1
90+ days past due		.1		.7		.4		.1				.1				1.4
Non-performing		12.9		55.0		45.4		24.9		13.2		13.8		8.3		173.5
Construction and forestry
Current		1,725.5		1,757.6		1,006.8		351.7		96.5		36.0		113.0		5,087.1
30-59 days past due		35.0		38.4		34.9		11.8		4.8		1.3		4.3		130.5
60-89 days past due		12.5		20.1		13.3		7.6		1.9		1.0		1.5		57.9
90+ days past due				.3												.3
Non-performing		15.9		68.5		55.2		23.0		8.3		4.5		1.4		176.8
Total	$	10,912.7	$	10,395.1	$	6,276.9	$	2,808.3	$	997.0	$	343.8	$	4,437.5	$	36,171.3

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


	July 28, 2024
	2024		2023		2022		2021		2020		Prior Years		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current	$	552.1	$	229.1	$	36.4	$	6.8	$	1.3	$	.5	$	11,776.7	$	12,602.9
30+ days past due		.9		.2										23.6		24.7
Non-performing														24.1		24.1
Construction and forestry
Current		12.4		9.8		1.7		18.4		.1				4,150.0		4,192.4
30+ days past due														24.7		24.7
Non-performing
Total	$	565.4	$	239.1	$	38.1	$	25.2	$	1.4	$	.5	$	15,999.1	$	16,868.8


	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	$	628.9	$	95.1	$	39.9	$	4.1	$	.8	$	235.1	$	12,326.2	$	13,330.1


	July 30, 2023
	2023		2022		2021		2020		2019		Prior Years		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current	$	444.6	$	138.5	$	26.3	$	6.8	$	1.3	$	1.0	$	10,555.3	$	11,173.8
30+ days past due		.3												21.2		21.5
Non-performing														6.2		6.2
Construction and forestry
Current		18.8		3.2		22.3		.3		.2				2,768.3		2,813.1
30+ days past due														13.0		13.0
Non-performing
Total	$	463.7	$	141.7	$	48.6	$	7.1	$	1.5	$	1.0	$	13,364.0	$	14,027.6

The allowance for credit losses is an estimate of the credit losses expected over the life of our Receivable portfolio. Non-performing Receivables are included in the estimate of expected credit losses. The allowance is measured on a collective basis for receivables with similar risk characteristics. Receivables that do not share risk characteristics are evaluated on an individual basis. Risk characteristics include:

Recoveries from freestanding credit enhancements, such as dealer deposits and certain credit insurance and bank guarantee contracts, are not included in the estimate of expected credit losses. Recoveries from dealer deposits are recognized in “Other income” when the dealer’s deposit account is charged, while recoveries from other freestanding credit enhancements are generally recognized when the associated credit loss is recorded.

An analysis of the allowance for credit losses and investment in Receivables was as follows:


	Three Months Ended July 28, 2024
	Retail Notes		Revolving
	& Financing		Charge		Wholesale		Total
	Leases		Accounts		Receivables		Receivables
Allowance:
Beginning of period balance	$	144.2	$	20.9	$	9.3	$	174.4
Provision for credit losses*		76.9		25.0		20.1		122.0
Write-offs		(41.1)		(46.1)				(87.2)
Recoveries		3.0		8.0				11.0
Translation adjustments		(.2)				(.1)		(.3)
End of period balance	$	182.8	$	7.8	$	29.3	$	219.9


	Nine Months Ended July 28, 2024
	Retail Notes		Revolving
	& Financing		Charge		Wholesale		Total
	Leases		Accounts		Receivables		Receivables
Allowance:
Beginning of period balance	$	114.9	$	20.4	$	11.1	$	146.4
Provision for credit losses*		154.5		45.8		19.7		220.0
Write-offs		(93.5)		(79.8)				(173.3)
Recoveries		7.1		21.4		.2		28.7
Translation adjustments		(.2)				(1.7)		(1.9)
End of period balance	$	182.8	$	7.8	$	29.3	$	219.9

Receivables:
End of period balance	$	34,525.7	$	4,471.2	$	16,868.8	$	55,865.7


	Three Months Ended July 30, 2023
	Retail Notes		Revolving
	& Financing		Charge		Wholesale		Total
	Leases		Accounts		Receivables		Receivables
Allowance:
Beginning of period balance	$	103.2	$	19.3	$	11.2	$	133.7
Provision for credit losses*		11.2		10.6		.5		22.3
Write-offs		(18.5)		(18.2)				(36.7)
Recoveries		3.3		5.8				9.1
Translation adjustments		.2				.2		.4
End of period balance	$	99.4	$	17.5	$	11.9	$	128.8

	Nine Months Ended July 30, 2023
	Retail Notes		Revolving
	& Financing		Charge		Wholesale		Total
	Leases		Accounts		Receivables		Receivables
Allowance:
Beginning of period balance	$	95.4	$	21.9	$	11.1	$	128.4
Provision for credit losses*		36.6		15.1		.2		51.9
Write-offs		(43.0)		(36.2)		(.1)		(79.3)
Recoveries		9.9		16.7		.6		27.2
Translation adjustments		.5				.1		.6
End of period balance	$	99.4	$	17.5	$	11.9	$	128.8

Receivables:
End of period balance	$	31,733.8	$	4,437.5	$	14,027.6	$	50,198.9

* Excludes provision for credit losses on unfunded commitments of $.4 and $2.7 for the three and nine months ended July 28, 2024, respectively, and $.1 and $.7 for the three and nine months ended July 30, 2023, respectively. The estimated credit losses related to unfunded commitments are recorded in “Accounts payable and accrued expenses.”

The allowance for credit losses increased in the third quarter and first nine months of 2024, primarily due to higher expected losses on retail notes as a result of elevated delinquencies and a decline in market conditions. The allowance for wholesale receivables also increased due to a specific provision for a dealer experiencing financial difficulties. These increases were partially offset by a decrease in the allowance on revolving charge accounts, driven by write-offs of seasonal financing program accounts and recoveries expected on those accounts in the future. We continue to monitor the economy as part of the allowance setting process, including potential impacts of inflation and interest rates, among other factors, and qualitative adjustments to the allowance are incorporated as necessary.

Recoveries from freestanding credit enhancements recorded in “Other income” were $26.6 for the third quarter and $39.1 for the first nine months of 2024, compared with $3.4 for the third quarter and $9.2 for the first nine months of 2023. The increases were driven by expected recoveries on bank guarantee contracts, which relate to the wholesale allowance increase noted above.


	Nine Months Ended July 28, 2024
	2024		2023		2022		2021		2020		Prior Years		Revolving		Total
Customer Receivables:
Agriculture and turf	$	1.5	$	13.7	$	14.6	$	5.9	$	6.5	$	1.6	$	73.5	$	117.3
Construction and forestry		2.1		19.4		15.4		7.2		3.9		1.7		6.3		56.0
Total	$	3.6	$	33.1	$	30.0	$	13.1	$	10.4	$	3.3	$	79.8	$	173.3

We occasionally grant contractual modifications to customers experiencing financial difficulties. Before offering a modification, we evaluate the ability of the customer to meet the modified payment terms. Modifications offered include payment deferrals, term extensions, or a combination thereof. Finance charges continue to accrue during the deferral or extension period with the exception of modifications related to bankruptcy proceedings. Our allowance for credit losses incorporates historical loss information, including the effects of loan modifications with customers. Therefore, additional adjustments to the allowance are generally not recorded upon modification of a loan.

The ending amortized cost of loans modified with borrowers experiencing financial difficulty during the third quarter and the nine months ended July 28, 2024 was $22.1 and $59.2, respectively, of which $48.2 was current, $4.4 was 30-59 days past due, $2.6 was 60-89 days past due, $.8 was 90 days or greater past due, and $3.2 was non-performing. These modifications represented .04 percent and .11 percent of our Receivable portfolio for the same periods, respectively.

Defaults and subsequent write-offs of loans modified in the prior twelve months were not significant during the third quarter or the first nine months of 2024. In addition, at July 28, 2024, commitments to provide additional financing to these customers were not significant.

Prior to adopting ASU 2022-02, modifications of loans to borrowers experiencing financial difficulty were considered troubled debt restructurings when the modification resulted in a concession we would not otherwise consider. During the nine months ended July 30, 2023, we identified 92 Receivable contracts, primarily retail notes, as troubled debt restructurings with aggregate balances of $3.5 pre-modification and $3.4 post-modification. During this same period, there were no significant troubled debt restructurings that subsequently defaulted and were written off.