DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Jan. 26, 2025

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:

		January 26, 2025						October 27, 2024						January 28, 2024
				Fair Value						Fair Value						Fair Value
		Notional		Asset		Liability		Notional		Asset		Liability		Notional		Asset		Liability
Cash flow hedges:
Interest rate contracts - swaps	$	3,275.0	$	1.4	$	31.1	$	2,875.0	$	2.9	$	20.0	$	2,200.0	$	27.4	$	4.4
Fair value hedges:
Interest rate contracts - swaps		14,734.5		21.3		585.3		15,033.9		107.8		445.2		11,779.6		52.1		547.3
Cross-currency interest rate contracts		974.5				2.1		974.5		30.4
Not designated as hedging instruments:
Interest rate contracts - swaps		6,655.1		20.8		11.7		5,907.0		25.9		15.0		7,784.7		53.8		18.3
Foreign currency exchange contracts		1,494.0		1.4		17.6		1,707.8		27.7		.8		1,814.8		22.2		4.3
Cross-currency interest rate contracts		164.0		14.5		.3		157.8		16.5		.2		188.6				13.4
Interest rate caps - sold		1,916.2				12.1		1,469.1				8.8		1,199.5				13.3
Interest rate caps - purchased		1,916.2		12.1				1,469.1		8.8				1,199.5		13.3

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
January 26, 2025	Hedged Item		Adjustment		Hedged Item		Adjustment
Current maturities of long-term external borrowings					$	2,109.7	$	(14.3)
Long-term external borrowings	$	15,002.0	$	(608.8)		8,922.6		(179.4)
October 27, 2024
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)
January 28, 2024
Current maturities of long-term external borrowings					$	1,959.5	$	10.4
Long-term external borrowings	$	11,220.3	$	(506.6)		7,710.9		(269.7)

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
	January 26		January 28
	2025		2024
Fair Value Hedges
Interest rate contracts – Interest expense *	$	(345.1)	$	335.7
Cash Flow Hedges
Recognized in OCI:
Interest rate contracts – OCI (pretax)	$	6.8	$	(7.8)
Reclassified from OCI:
Interest rate contracts – Interest expense		9.2		11.9
Not Designated as Hedges
Interest rate contracts – Interest expense *	$	(3.8)	$	(5.7)
Foreign currency exchange contracts – Administrative and operating expenses *		109.4		(103.2)
Total not designated	$	105.6	$	(108.9)

^* 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 were as follows:

	January 26, 2025
	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Derivatives:
Assets
External	$	1.4				$	1.4
John Deere		70.1	$	(25.5)			44.6
Liabilities
External		17.6					17.6
John Deere		642.6		(25.5)			617.1

	October 27, 2024
	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Derivatives:
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

	January 28, 2024
	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Derivatives:
Assets
External	$	22.2	$	(3.0)		$	19.2
John Deere		146.6		(101.6)			45.0
Liabilities
External		4.3		(3.0)			1.3
John Deere		596.7		(101.6)			495.1