DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Oct. 27, 2024

DERIVATIVE INSTRUMENTS

Fair Values of Derivative Instruments in Consolidated Balance Sheets

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

	October 27, 2024						October 29, 2023
			Fair Value						Fair Value
	Notional		Asset		Liability		Notional		Asset		Liability
Cash flow hedges:
Interest rate contracts - swaps	$	2,875.0	$	2.9	$	20.0	$	1,500.0	$	44.7
Fair value hedges:
Interest rate contracts - swaps		15,033.9		107.8		445.2		11,859.4			$	915.7
Cross-currency interest rate contracts		974.5		30.4
Not designated as hedging instruments:
Interest rate contracts - swaps		5,907.0		25.9		15.0		8,010.9		72.2		27.4
Foreign currency exchange contracts		1,707.8		27.7		.8		1,546.5		11.3		.5
Cross-currency interest rate contracts		157.8		16.5		.2		175.8		3.2		7.5
Interest rate caps - sold		1,469.1				8.8		1,336.0				24.3
Interest rate caps - purchased		1,469.1		8.8				1,336.0		24.3

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

The amounts recorded, at October 27, 2024 and October 29, 2023, 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
2024	Hedged Item		Adjustment		Hedged Item		Adjustment
Current maturities of long-term external borrowings					$	1,781.8	$	7.3
Long-term external borrowings	$	15,596.8	$	(335.1)		8,625.8		(227.3)
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)

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:

	2024		2023		2022
Fair Value Hedges
Interest rate contracts - Interest expense *	$	212.4	$	(518.7)	$	(1,102.0)
Cash Flow Hedges
Recognized in OCI
Interest rate contracts - OCI (pretax)	$	(9.7)	$	25.4	$	88.3
Reclassified from OCI
Interest rate contracts - Interest expense		74.0		65.9		12.4
Not Designated as Hedges
Interest rate contracts - Interest expense *	$	(7.1)	$	27.3	$	62.4
Foreign currency exchange contracts – Administrative and operating expenses *		(102.9)		19.1		169.3
Total not designated	$	(110.0)	$	46.4	$	231.7

* 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 any collateral received or paid at October 27, 2024 and October 29, 2023 were as follows:

2024
Derivatives:	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Assets
External	$	27.7	$	(.1)		$	27.6
John Deere		192.3		(151.2)			41.1
Liabilities
External		.8		(.1)			.7
John Deere		489.2		(151.2)			338.0

2023
Derivatives:	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
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