COMMITMENTS AND CONTINGENCIES

12 Months Ended

Oct. 27, 2024

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 17. COMMITMENTS AND CONTINGENCIES

We provide guarantees related to certain financial instruments issued by John Deere Financial Inc., a John Deere finance subsidiary in Canada. At October 27, 2024, the following notional amounts were guaranteed by us:

● Medium-term notes: $3,247.9 

● Commercial paper: $2,446.0

● Derivatives: $4,096.0, with a fair value liability of $81.5

The weighted average interest rate on the medium-term notes at October 27, 2024 was 3.7 percent with a maximum remaining maturity of five years.

We have commitments to extend credit to customers and John Deere dealers through lines of credit and other pre-approved credit arrangements. We apply the same credit policies and approval process for these commitments to extend credit as we do for our Receivables and Leases, and generally have the right to unconditionally cancel, alter, or amend the terms at any time. Collateral is not required for these commitments, but if credit is extended, collateral may be required upon funding. A significant portion of these commitments is not expected to be fully drawn upon; therefore, the total commitment amounts likely do not represent a future cash requirement. The unused commitments at October 27, 2024 were as follows:

● John Deere dealers: $11,733.5

● Customers: $32,901.7, primarily related to revolving charge accounts

We had a reserve for credit losses of $4.3 on unfunded commitments that are not unconditionally cancellable at October 27, 2024, which is recorded in “Accounts payable and accrued expenses.”

At October 27, 2024, we had restricted other assets associated with borrowings related to securitizations (see Note 5). Excluding the securitization programs, the remaining balance of restricted other assets was not material as of October 27, 2024.

We are subject to various unresolved legal actions, the most prevalent of which relate to retail credit matters. Currently we believe the reasonably possible range of losses for these unresolved legal actions would not have a material effect on our consolidated financial statements.