DERIVATIVE INSTRUMENTS (Tables)

6 Months Ended

Apr. 27, 2025

Fair Values of Derivative Instruments in Consolidated Balance Sheets

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


		April 27, 2025						October 27, 2024						April 28, 2024
				Fair Value						Fair Value						Fair Value
		Notional		Asset		Liability		Notional		Asset		Liability		Notional		Asset		Liability
Cash flow hedges:
Interest rate contracts - swaps	$	2,975.0			$	28.7	$	2,875.0	$	2.9	$	20.0	$	2,700.0	$	33.7	$	.4

Fair value hedges:
Interest rate contracts - swaps		13,066.9	$	158.6		359.6		15,033.9		107.8		445.2		12,822.2		7.6		842.3
Cross-currency interest rate contracts		974.5		103.4				974.5		30.4

Not designated as hedging instruments:
Interest rate contracts - swaps		7,507.0		33.0		29.6		5,907.0		25.9		15.0		6,421.3		46.9		15.0
Foreign currency exchange contracts		1,381.6		1.1		20.6		1,707.8		27.7		.8		1,587.9		6.5		3.7
Cross-currency interest rate contracts		140.6		8.2		2.4		157.8		16.5		.2		211.2		1.0		11.0
Interest rate caps - sold		1,718.9				6.9		1,469.1				8.8		1,458.7				25.1
Interest rate caps - purchased		1,718.9		6.9				1,469.1		8.8				1,458.7		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 are presented in the table below. Fair value hedging adjustments are included in the carrying amount of the hedged item. The carrying amount of the hedged item and formerly hedged item includes long-term borrowings of $398.8, $597.9, and $597.7 at April 27, 2025, October 27, 2024, and April 28,2024, respectively, that are in active hedging relationships and also had discontinued hedging relationships.


	Active Hedging Relationships				Discontinued Hedging Relationships
			Cumulative		Carrying		Cumulative
	Carrying		Fair Value		Amount of		Fair Value
	Amount of		Hedging		Formerly		Hedging
April 27, 2025	Hedged Item		Adjustment		Hedged Item		Adjustment
Current maturities of long-term external borrowings					$	1,212.5	$	(11.9)
Long-term external borrowings	$	13,875.0	$	(155.3)		10,533.0		(141.4)

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)

April 28, 2024
Current maturities of long-term external borrowings					$	2,565.0	$	16.0
Long-term external borrowings	$	11,919.8	$	(845.2)		7,615.5		(264.2)

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				Six Months Ended
	April 27		April 28		April 27		April 28
	2025		2024		2025		2024
Fair value hedges
Interest rate contracts – Interest expense *	$	431.7	$	(439.5)	$	86.6	$	(103.8)

Cash flow hedges
Recognized in OCI:
Interest rate contracts – OCI (pretax)	$	(10.5)	$	26.4	$	(3.7)	$	18.6
Reclassified from OCI:
Interest rate contracts – Interest expense		1.0		16.9		10.2		28.8

Not designated as hedges
Interest rate contracts – Interest expense *	$	(12.8)	$	5.6	$	(16.6)	$	(.1)
Foreign currency exchange contracts – Administrative and operating expenses *		(34.3)		15.7		75.1		(87.5)
Total not designated	$	(47.1)	$	21.3	$	58.5	$	(87.6)

^* 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:


	April 27, 2025
	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Derivatives:
Assets
External	$	1.1	$	(.5)		$	.6
John Deere		310.1		(245.4)			64.7
Liabilities
External		20.6		(.5)			20.1
John Deere		427.2		(245.4)			181.8


	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


	April 28, 2024
	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
Derivatives:
Assets
External	$	6.5	$	(.9)		$	5.6
John Deere		114.3		(62.6)			51.7
Liabilities
External		3.7		(.9)			2.8
John Deere		893.8		(62.6)			831.2