FAIR VALUE MEASUREMENTS

3 Months Ended

Jan. 26, 2025

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

(10) FAIR VALUE MEASUREMENTS

The fair values of financial instruments that do not approximate the carrying values were as follows:

	January 26, 2025				October 27, 2024				January 28, 2024
	Carrying		Fair		Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value		Value		Value
Receivables financed – net	$	41,929.2	$	41,818.8	$	45,278.7	$	45,291.5	$	44,313.9	$	43,978.1
Retail notes securitized – net		8,255.2		8,172.3		8,721.4		8,651.8		6,399.9		6,224.9
Securitization borrowings		8,012.6		8,033.7		8,429.3		8,451.1		6,116.1		6,103.8
Current maturities of long-term external borrowings		8,376.6		8,331.1		7,628.9		7,600.4		5,705.1		5,610.7
Long-term external borrowings		32,236.4		32,505.5		33,725.4		33,904.9		28,720.4		28,775.5

Fair value measurements above were Level 3 for all Receivables and Level 2 for all borrowings.

Fair values of Receivables that were issued long-term were based on the discounted values of their related cash flows at interest rates currently being offered by us for similar Receivables. The fair values of the remaining Receivables approximated the carrying amounts.

Fair values of long-term external borrowings and securitization borrowings were based on current market quotes for identical or similar borrowings and credit risk, or on the discounted values of their related cash flows at current market interest rates. Certain long-term external borrowings have been swapped to current variable interest rates. The carrying values of these long-term external borrowings include adjustments related to fair value hedges.

Assets and liabilities measured at fair value on a recurring basis were as follows:

	January 26		October 27		January 28
	2025		2024		2024
Marketable securities
International debt securities	$	3.8	$	3.8	$	2.3
Receivables from John Deere
Derivatives		70.1		192.3		146.6
Other assets
Derivatives		1.4		27.7		22.2
Total assets	$	75.3	$	223.8	$	171.1
Other payables to John Deere
Derivatives	$	642.6	$	489.2	$	596.7
Accounts payable and accrued expenses
Derivatives		17.6		.8		4.3
Total liabilities	$	660.2	$	490.0	$	601.0

All fair value measurements in the table above were Level 2. Excluded from the table above were our cash equivalents, which were carried at cost that approximates fair value. The cash equivalents consist primarily of time deposits and money market funds.

The international debt securities mature over the next six years. At January 26, 2025, the amortized cost basis and fair value of these available-for-sale debt securities were $4.6 and $3.8, respectively.

There were no assets or liabilities measured at fair value on a nonrecurring basis during each of the periods ended January 26, 2025, October 27, 2024, and January 28, 2024.

The following is a description of the valuation methodologies we use to measure certain balance sheet items at fair value:

Marketable securities – The international debt securities are valued using quoted prices for identical assets in inactive markets.

Derivatives – Our derivative financial instruments consist of interest rate contracts (swaps and caps), foreign currency exchange contracts (forwards and swaps), and cross-currency interest rate contracts (swaps). The portfolio is valued based on an income approach (discounted cash flow) using market observable inputs, including swap curves and both forward and spot exchange rates for currencies.