DERIVATIVE INSTRUMENTS (Tables)

9 Months Ended

Jul. 28, 2024

DERIVATIVE INSTRUMENTS

Fair Values of Derivative Instruments in Consolidated Balance Sheets

The fair values of our derivative instruments and the associated notional amounts were as follows:

		July 28, 2024						October 29, 2023						July 30, 2023
				Fair Value						Fair Value						Fair Value
		Notional		Asset		Liability		Notional		Asset		Liability		Notional		Asset		Liability
Cash flow hedges:
Interest rate contracts - swaps	$	3,475.0	$	14.3	$	17.6	$	1,500.0	$	44.7			$	1,500.0	$	47.8	$	2.5
Fair value hedges:
Interest rate contracts - swaps		14,333.2		111.1		454.9		11,859.4			$	915.7		11,479.3		4.0		667.5
Cross-currency interest rate contracts		974.5		15.5
Not designated as hedging instruments:
Interest rate contracts - swaps		6,975.7		39.1		7.6		8,010.9		72.2		27.4		7,392.1		92.6		23.8
Foreign currency exchange contracts		1,320.0		30.2				1,546.5		11.3		.5		1,433.0		8.4		5.2
Cross-currency interest rate contracts		190.2		9.7		3.4		175.8		3.2		7.5		155.2				24.5
Interest rate caps - sold		1,595.3				15.2		1,336.0				24.3		1,433.8				25.1
Interest rate caps - purchased		1,595.3		15.2				1,336.0		24.3				1,433.8		25.1

Amounts Recorded in the Consolidated Balance Sheets Related to Borrowings Designated in Fair Value Hedging Relationships

The amounts recorded in the consolidated balance sheets related to borrowings designated in fair value hedging relationships were as follows. Fair value hedging adjustments are included in the carrying amount of the hedged item.

	Active Hedging Relationships				Discontinued Hedging Relationships
			Cumulative		Carrying		Cumulative
	Carrying		Fair Value		Amount of		Fair Value
	Amount of		Hedging		Formerly		Hedging
July 28, 2024	Hedged Item		Adjustment		Hedged Item		Adjustment
Current maturities of long-term external borrowings					$	1,458.4	$	9.1
Long-term external borrowings	$	14,864.3	$	(375.0)		8,414.5		(263.8)
October 29, 2023
Current maturities of long-term external borrowings					$	1,814.0	$	14.9
Long-term external borrowings	$	10,883.7	$	(922.6)		7,144.1		(288.1)
July 30, 2023
Current maturities of long-term external borrowings					$	2,323.8	$	25.1
Long-term external borrowings	$	10,760.0	$	(667.4)		6,319.1		(265.0)

Gains (Losses) Related to Derivative Instruments on Statements of Consolidated Income

The classification and gains (losses), including accrued interest expense, related to derivative instruments on the statements of consolidated income consisted of the following:

	Three Months Ended				Nine Months Ended
	July 28		July 30		July 28		July 30
	2024		2023		2024		2023
Fair Value Hedges
Interest rate contracts – Interest expense *	$	363.1	$	(356.2)	$	259.3	$	(124.8)
Cash Flow Hedges
Recognized in OCI:
Interest rate contracts – OCI (pretax)	$	(14.8)	$	23.8	$	3.8	$	18.2
Reclassified from OCI:
Interest rate contracts – Interest expense		22.5		18.3		51.3		54.5
Not Designated as Hedges
Interest rate contracts – Interest expense *	$	(2.5)	$	25.0	$	(2.6)	$	27.4
Foreign currency exchange contracts – Administrative and operating expenses *		(4.8)		(40.4)		(92.3)		(100.2)
Total not designated	$	(7.3)	$	(15.4)	$	(94.9)	$	(72.8)

*    Includes interest and foreign currency exchange gains (losses) from cross-currency interest rate contracts.

Impact on Derivative Assets and Liabilities for External Derivatives and those with John Deere Related to Netting Arrangements and Collateral

Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities for external derivatives and those with John Deere related to netting arrangements and collateral were as follows:

	July 28, 2024
	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Derivatives:
Assets
External	$	30.2				$	30.2
John Deere		204.9	$	(143.6)			61.3
Liabilities
John Deere		498.7		(143.6)			355.1

	October 29, 2023
	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Derivatives:
Assets
External	$	11.3	$	(.1)		$	11.2
John Deere		144.4		(107.0)			37.4
Liabilities
External		.5		(.1)			.4
John Deere		974.9		(107.0)			867.9

	July 30, 2023
	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Derivatives:
Assets
External	$	8.4	$	(.1)		$	8.3
John Deere		169.5		(108.5)			61.0
Liabilities
External		5.2		(.1)			5.1
John Deere		743.4		(108.5)			634.9