We monitor the credit quality of Receivables based on delinquency status, defined as follows:

Accrued finance income and lease revenue reversed on non-performing Receivables, and finance income and lease revenue recognized from cash payments on non-performing Receivables, were as follows:

Total Receivable balances represent principal plus accrued interest. Receivable balances are written off to the allowance for credit losses when, in the judgment of management, they are considered uncollectible. Write-offs generally occur when Customer Receivables are 120 days delinquent, and on a case-by-case basis when wholesale receivables are 60 days delinquent. In these situations, collateral is repossessed (for collateral-dependent Receivables) or the account is designated for litigation, and the estimated uncollectible amount is written off to the allowance for credit losses.

The credit quality and aging analysis of Customer Receivables by year of origination was as follows:


	July 27, 2025
	2025		2024		2023		2022		2021		Prior Years		Revolving Charge Accounts		Total
Customer Receivables:
Agriculture and turf
Current	$	7,559.2	$	8,807.5	$	5,518.6	$	3,245.3	$	1,558.6	$	447.7	$	4,520.9	$	31,657.8
30-59 days past due		41.1		79.2		55.5		29.9		16.0		5.6		41.9		269.2
60-89 days past due		18.3		43.3		27.1		19.3		7.9		2.4		11.2		129.5
90+ days past due		.5		4.4		.7		.6		2.5		.5				9.2
Non-performing		11.9		106.8		109.8		63.4		33.0		20.6		13.5		359.0
Construction and forestry
Current		2,005.9		1,932.3		1,051.4		499.2		162.9		20.9		114.1		5,786.7
30-59 days past due		33.8		65.0		38.5		16.1		5.7		1.7		4.2		165.0
60-89 days past due		16.4		24.0		15.0		5.6		2.6		1.7		1.8		67.1
90+ days past due				.6		.2		.3		.1		.3				1.5
Non-performing		16.7		85.4		81.0		43.9		22.3		8.7		1.8		259.8
Total	$	9,703.8	$	11,148.5	$	6,897.8	$	3,923.6	$	1,811.6	$	510.1	$	4,709.4	$	38,704.8

Write-offs for the nine months ended July 27, 2025:
Agriculture and turf	$	2.5	$	23.5	$	26.6	$	14.4	$	4.8	$	4.8	$	95.0	$	171.6
Construction and forestry		2.1		25.3		22.1		7.6		1.9		1.3		5.5		65.8
Total	$	4.6	$	48.8	$	48.7	$	22.0	$	6.7	$	6.1	$	100.5	$	237.4


	October 27, 2024
	2024		2023		2022		2021		2020		Prior Years		Revolving Charge Accounts		Total
Customer Receivables:
Agriculture and turf
Current	$	12,957.7	$	7,528.9	$	4,715.5	$	2,633.1	$	915.6	$	232.8	$	4,351.5	$	33,335.1
30-59 days past due		39.5		93.3		49.2		25.2		10.6		3.6		39.2		260.6
60-89 days past due		18.4		43.7		16.7		8.8		7.0		1.9		12.3		108.8
90+ days past due		.4		.9		.3		2.2		.2						4.0
Non-performing		22.2		84.9		69.9		40.4		18.4		11.7		13.9		261.4
Construction and forestry
Current		2,636.0		1,564.0		893.1		380.1		83.2		41.9		114.2		5,712.5
30-59 days past due		49.4		41.3		23.2		9.8		2.5		1.5		4.0		131.7
60-89 days past due		20.0		23.5		8.2		5.8		1.5		.3		1.8		61.1
90+ days past due		.4		.5		.1		.2		.2						1.4
Non-performing		38.2		89.4		64.5		30.6		8.5		3.8		1.9		236.9
Total	$	15,782.2	$	9,470.4	$	5,840.7	$	3,136.2	$	1,047.7	$	297.5	$	4,538.8	$	40,113.5

Write-offs for the twelve months ended October 27, 2024:
Agriculture and turf	$	4.0	$	29.2	$	23.5	$	10.3	$	9.9	$	3.1	$	86.0	$	166.0
Construction and forestry		8.2		33.4		23.4		10.3		4.7		2.5		7.8		90.3
Total	$	12.2	$	62.6	$	46.9	$	20.6	$	14.6	$	5.6	$	93.8	$	256.3


	July 28, 2024
	2024		2023		2022		2021		2020		Prior Years		Revolving Charge Accounts		Total
Customer Receivables:
Agriculture and turf
Current	$	9,434.5	$	8,820.5	$	5,301.9	$	3,050.5	$	1,176.3	$	359.4	$	4,300.0	$	32,443.1
30-59 days past due		33.8		77.6		49.1		24.0		9.2		3.6		29.3		226.6
60-89 days past due		13.6		59.4		21.8		10.1		4.0		2.1		9.4		120.4
90+ days past due				1.2		.4		2.6		4.7		.2				9.1
Non-performing		11.8		95.0		77.4		50.3		21.6		15.4		14.5		286.0
Construction and forestry
Current		1,912.3		1,750.4		1,047.4		482.9		120.0		54.3		111.5		5,478.8
30-59 days past due		37.0		53.0		29.2		13.2		4.2		1.0		3.6		141.2
60-89 days past due		10.8		21.0		12.6		7.9		1.6		1.1		1.3		56.3
90+ days past due		.8		1.3		.9		.4		.3		.1				3.8
Non-performing		19.3		89.6		68.3		35.8		12.1		4.9		1.6		231.6
Total	$	11,473.9	$	10,969.0	$	6,609.0	$	3,677.7	$	1,354.0	$	442.1	$	4,471.2	$	38,996.9

Write-offs for the nine months ended July 28, 2024:
Agriculture and turf	$	1.5	$	13.7	$	14.6	$	5.9	$	6.5	$	1.6	$	73.5	$	117.3
Construction and forestry		2.1		19.4		15.4		7.2		3.9		1.7		6.3		56.0
Total	$	3.6	$	33.1	$	30.0	$	13.1	$	10.4	$	3.3	$	79.8	$	173.3


	July 27		October 27		July 28
	2025		2024		2024
Wholesale receivables:
Agriculture and turf
Current	$	11,274.6	$	10,439.1	$	12,602.9
30-59 days past due		1.1		4.5		15.1
60-89 days past due		.2		4.2		2.5
90+ days past due		.3		10.2		7.1
Non-performing		26.3		35.3		24.1
Construction and forestry
Current		3,163.4		3,599.9		4,192.4
30-59 days past due		3.4		8.1		5.1
60-89 days past due		2.0		5.1		1.5
90+ days past due		9.6		7.7		18.1
Total	$	14,480.9	$	14,114.1	$	16,868.8

The allowance for credit losses is an estimate of the credit losses expected over the life of our Receivable portfolio. Non-performing Receivables are included in the estimate of expected credit losses. The allowance is measured on a collective basis for receivables with similar risk characteristics. Receivables that do not share risk characteristics are evaluated on an individual basis. Risk characteristics include:

Expected recoveries from freestanding credit enhancements, such as dealer deposits and certain credit insurance and bank guarantee contracts, are not included in the estimate of expected credit losses. Recoveries from dealer deposits are recognized in “Other income” when the dealer’s deposit account is charged, while recoveries from other freestanding credit enhancements are generally recognized when the associated credit loss is recorded.

An analysis of the allowance for credit losses and investment in Receivables was as follows:



	Three Months Ended July 27, 2025
	Retail Notes		Revolving
	& Financing		Charge		Wholesale		Total
	Leases		Accounts		Receivables		Receivables
Allowance for credit losses:
Beginning of period balance	$	214.8	$	12.0	$	24.9	$	251.7
Provision (credit) for credit losses*		43.6		33.0		(5.1)		71.5
Write-offs		(43.2)		(48.1)		(2.0)		(93.3)
Recoveries		5.2		11.0				16.2
Translation adjustments		.3				.8		1.1
End of period balance	$	220.7	$	7.9	$	18.6	$	247.2


	Nine Months Ended July 27, 2025
	Retail Notes		Revolving
	& Financing		Charge		Wholesale		Total
	Leases		Accounts		Receivables		Receivables
Allowance for credit losses:
Beginning of period balance	$	192.4	$	7.6	$	27.5	$	227.5
Provision (credit) for credit losses*		154.6		73.2		(7.2)		220.6
Write-offs		(136.9)		(100.5)		(3.5)		(240.9)
Recoveries		10.4		27.7				38.1
Translation adjustments		.2		(.1)		1.8		1.9
End of period balance	$	220.7	$	7.9	$	18.6	$	247.2

Receivables:
End of period balance	$	33,995.4	$	4,709.4	$	14,480.9	$	53,185.7


	Three Months Ended July 28, 2024
	Retail Notes		Revolving
	& Financing		Charge		Wholesale		Total
	Leases		Accounts		Receivables		Receivables
Allowance for credit losses:
Beginning of period balance	$	144.2	$	20.9	$	9.3	$	174.4
Provision for credit losses*		76.9		25.0		20.1		122.0
Write-offs		(41.1)		(46.1)				(87.2)
Recoveries		3.0		8.0				11.0
Translation adjustments		(.2)				(.1)		(.3)
End of period balance	$	182.8	$	7.8	$	29.3	$	219.9


	Nine Months Ended July 28, 2024
	Retail Notes		Revolving
	& Financing		Charge		Wholesale		Total
	Leases		Accounts		Receivables		Receivables
Allowance for credit losses:
Beginning of period balance	$	114.9	$	20.4	$	11.1	$	146.4
Provision for credit losses*		154.5		45.8		19.7		220.0
Write-offs		(93.5)		(79.8)				(173.3)
Recoveries		7.1		21.4		.2		28.7
Translation adjustments		(.2)				(1.7)		(1.9)
End of period balance	$	182.8	$	7.8	$	29.3	$	219.9

Receivables:
End of period balance	$	34,525.7	$	4,471.2	$	16,868.8	$	55,865.7

^* Excludes provision (credit) for credit losses on unfunded commitments of $(.3) and $1.0 for the three and nine months ended July 27, 2025, respectively, and $.4 and $2.7 for the three and nine months ended July 28, 2024, respectively. The estimated credit losses related to unfunded commitments are recorded in “Accounts payable and accrued expenses.”

The allowance for credit losses remained relatively flat in the third quarter and increased in the first nine months of 2025, primarily due to higher expected losses on agricultural and turf customer accounts as a result of elevated delinquencies and a decline in market conditions. We monitor the economy as part of the allowance setting process, including potential impacts of the agricultural cycle, global trade policies, and interest rates, among other factors, and qualitative adjustments to the allowance are incorporated as necessary.

Recoveries from freestanding credit enhancements recorded in “Other income” were $7.3 for the third quarter and $25.1 for the first nine months of 2025, compared with $26.6 and $39.1 for the same periods last year, respectively. The prior year periods reflected expected recoveries on bank guarantee contracts related to a dealer experiencing financial difficulties. During 2025, our estimate of expected credit losses improved, resulting in both a decrease in the wholesale specific allowance and related

bank guarantee accrual. Excluding this item, recoveries from other freestanding credit enhancements, primarily dealer deposits, increased in both the third quarter and first nine months of 2025 compared to 2024 due to market conditions.

We occasionally grant contractual modifications to customers experiencing financial difficulties. Before offering a modification, we evaluate the ability of the customer to meet the modified payment terms. Modifications offered include payment deferrals, term extensions, or a combination thereof. Finance charges continue to accrue during the deferral or extension period with the exception of modifications related to bankruptcy proceedings. Our allowance for credit losses incorporates historical loss information, including the effects of loan modifications with customers. Therefore, additional adjustments to the allowance are generally not recorded upon modification of a loan.

The ending amortized cost of Receivables modified with borrowers experiencing financial difficulty was as follows:

For the nine months ended July 27, 2025, the financial effects of payment deferrals with borrowers experiencing financial difficulty resulted in a weighted average payment deferral of 7 months to the modified contracts. Term extensions provided to borrowers experiencing financial difficulty added a weighted average of 11 months to the modified contracts. Additionally, modifications with a combination of both payment deferrals and term extensions resulted in a weighted average payment deferral of 6 months and a weighted average term extension of 9 months.

We continue to monitor the performance of Receivables that are modified with borrowers experiencing financial difficulty. The ending amortized cost and performance of Receivables modified during the prior twelve months ended July 27, 2025 and July 28, 2024 were as follows:

^* In accordance with the adoption date of the accounting modification guidance, this period includes Receivables modified during the prior nine months.

Defaults and subsequent write-offs of Receivables modified in the prior twelve months were not significant during the three months and the nine months ended July 27, 2025 and July 28, 2024. In addition, at July 27, 2025, commitments to provide additional financing to these customers were not significant.