Accounts, Notes, Loans and Financing Receivable

Analysis of the Allowance for Credit Losses and Investment in Financing Receivables

An analysis of the allowance for credit losses and investment in financing receivables follows:


	Retail Notes		Revolving
	& Financing		Charge		Wholesale
	Leases		Accounts		Receivables		Total
2025
Allowance:
Beginning of year balance	$	219	$	8	$	2	$	229
Provision		217		67				284
Write-offs		(202)		(110)				(312)
Recoveries		15		42				57
End of year balance*	$	249	$	7	$	2	$	258

Financing receivables:
End of year balance	$	38,608	$	4,801	$	8,255	$	51,664


2024
Allowance:
Beginning of year balance	$	172	$	21	$	4	$	197
Provision		262		52				314
Provision reversal for assets held for sale		(38)						(38)
Provision subtotal		224		52				276
Write-offs		(186)		(95)				(281)
Recoveries		13		30				43
Translation adjustments		(4)				(2)		(6)
End of year balance*	$	219	$	8	$	2	$	229

Financing receivables:
End of year balance	$	39,680	$	4,654	$	8,927	$	53,261


2023
Allowance:
Beginning of year balance	$	299	$	22	$	4	$	325
Provision		97		22				119
Provision reversal for assets held for sale		(142)						(142)
Provision (credit) subtotal		(45)		22				(23)
Write-offs		(84)		(45)				(129)
Recoveries		21		22				43
Translation adjustments		(19)						(19)
End of year balance*	$	172	$	21	$	4	$	197

Financing receivables:
End of year balance	$	39,585	$	4,698	$	6,922	$	51,205

* Individual allowances were not significant.

Ending Amortized Cost and Performance of Financing Receivables Modified

We continue to monitor the performance of financing receivables that are modified with borrowers experiencing financial difficulty.

The ending amortized cost and performance of financing receivables modified in 2025 and 2024 were as follows:


	2025		2024
Current	$	160	$	78
30-59 days past due		7		1
60-89 days past due		3		2
Non-performing		16		13
Total	$	186	$	94
Percent of financing receivables portfolio		0.36%		0.18%

Schedule of Troubled Debt Restructurings

The following table quantifies troubled debt restructurings:


		2023
Number of receivable contracts			209
Pre-modification balance		$	10
Post modification balance			9

Credit Quality and Aging Analysis

The credit quality and aging analysis of retail notes, financing leases, and revolving charge accounts (collectively, retail customer receivables) by year of origination was as follows:


	November 2, 2025
	2025		2024		2023		2022
Retail customer receivables:
Agriculture and turf:
Current	$	12,380	$	8,389	$	5,228	$	3,003
30-59 days past due		36		73		59		38
60-89 days past due		14		37		28		13
90+ days past due		1		2				1
Non-performing		41		109		98		57
Construction and forestry:
Current		3,175		2,038		1,034		463
30-59 days past due		42		47		31		12
60-89 days past due		21		17		12		8
90+ days past due		1		6		3		2
Non-performing		31		94		78		38
Total	$	15,742	$	10,812	$	6,571	$	3,635

Write-offs for the period ended November 2, 2025:
Agriculture and turf	$	6	$	32	$	34	$	21
Construction and forestry		9		38		29		12
Total	$	15	$	70	$	63	$	33

	November 2, 2025
	2021		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf:
Current	$	1,310	$	281	$	4,608	$	35,199
30-59 days past due		15		7		37		265
60-89 days past due		8		2		10		112
90+ days past due		2						6
Non-performing		30		17		14		366
Construction and forestry:
Current		130		12		124		6,976
30-59 days past due		4		1		5		142
60-89 days past due		1		1		2		62
90+ days past due				1				13
Non-performing		19		7		1		268
Total	$	1,519	$	329	$	4,801	$	43,409

Write-offs for the period ended November 2, 2025:
Agriculture and turf	$	9	$	7	$	102	$	211
Construction and forestry		3		3		7		101
Total	$	12	$	10	$	109	$	312


	October 27, 2024
	2024		2023		2022		2021
Retail customer receivables:
Agriculture and turf:
Current	$	14,394	$	8,305	$	5,191	$	2,833
30-59 days past due		44		101		55		27
60-89 days past due		22		50		21		10
90+ days past due		1		1		1		2
Non-performing		23		91		76		50
Construction and forestry:
Current		3,100		1,841		1,064		458
30-59 days past due		54		47		25		10
60-89 days past due		25		28		10		7
90+ days past due		1		4		3		1
Non-performing		40		94		67		32
Total	$	17,704	$	10,562	$	6,513	$	3,430

Write-offs for the period ended October 27, 2024:
Agriculture and turf	$	5	$	33	$	25	$	11
Construction and forestry		9		38		30		11
Total	$	14	$	71	$	55	$	22

	October 27, 2024
	2020		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf:
Current	$	992	$	253	$	4,465	$	36,433
30-59 days past due		11		4		40		282
60-89 days past due		8		2		13		126
90+ days past due								5
Non-performing		20		13		15		288
Construction and forestry:
Current		102		45		114		6,724
30-59 days past due		3		2		4		145
60-89 days past due		2				2		74
90+ days past due								9
Non-performing		9		5		1		248
Total	$	1,147	$	324	$	4,654	$	44,334

Write-offs for the period ended October 27, 2024:
Agriculture and turf	$	11	$	5	$	87	$	177
Construction and forestry		5		3		8		104
Total	$	16	$	8	$	95	$	281

Accounts, Notes, Loans and Financing Receivable

Schedule of Trade Accounts and Notes Receivable, Financing Receivables, and Financing Receivables Related to the Sale of Equipment

Trade accounts and notes receivable at the end of 2025 and 2024 follow:


	2025		2024
Trade accounts and notes receivable:
Production & Precision Agriculture	$	1,673	$	1,532
Small Agriculture & Turf		1,967		1,657
Construction & Forestry		1,677		2,137
Trade accounts and notes receivable – net	$	5,317	$	5,326

Schedule of Trade Accounts and Notes Receivable, Financing Receivables, and Financing Receivables Related to the Sale of Equipment

Financing receivables at the end of 2025 and 2024 follow:


	2025				2024
	Unrestricted/Securitized				Unrestricted/Securitized
Retail notes:
Agriculture and turf	$	25,356	$	5,805	$	25,102	$	7,203
Construction and forestry		5,454		1,216		4,550		1,754
Total		30,810		7,021		29,652		8,957
Wholesale notes		8,274				8,951
Revolving charge accounts		4,872				4,730
Financing leases (direct and sales-type)		2,923				3,032
Total financing receivables		46,879		7,021		46,365		8,957
Less:
Unearned finance income:
Retail notes		1,667		149		1,467		187
Wholesale notes		19				24
Revolving charge accounts		71				76
Financing leases		330				307
Total		2,087		149		1,874		187
Allowance for credit losses		217		41		182		47
Financing receivables – net	$	44,575	$	6,831	$	44,309	$	8,723

Accounts, Notes, Loans and Financing Receivable