LEASES (Tables)

6 Months Ended

May 03, 2020

LEASES

Summary of Lease Expense by Type

The lease expense by type consisted of the following in millions of dollars:

	Three Months Ended		Six Months Ended
	May 3, 2020		May 3, 2020
Operating lease expense	$	31	$	63
Short-term lease expense		6		10
Variable lease expense		10		20
Finance lease:
Depreciation expense		2		7
Interest on lease liabilities		1		1
Total lease expense	$	50	$	101

Schedule of Operating and Finance Lease Right of Use Assets and Liabilities, Location in Condensed Consolidated Balance Sheet

Operating and finance lease right of use assets and liabilities follow in millions of dollars:

	May 3, 2020
Operating leases
Other assets	$	341
Accounts payable and accrued expenses		319
Finance leases
Property and equipment — net	$	43
Short-term borrowings		13
Long-term borrowings		26
Total finance lease liabilities	$	39

Schedule of Weighted-Average Remaining Lease Term in Years and Discount Rates

The weighted-average remaining lease term in years and discount rates follows:

	May 3, 2020
Weighted-average remaining lease terms:
Operating leases	7
Finance leases	3
Weighted-average discount rate:
Operating leases	2.4%
Finance leases	2.9%

Schedule of Operating Lease Payment Amounts

Lease payment amounts in each of the next five years at May 3, 2020 follow in millions of dollars:

	Operating		Finance
Due in:	Leases		Leases
Remainder of 2020	$	59	$	7
2021		79		13
2022		67		10
2023		46		5
2024		35		3
2025		19		1
Later years		35		3
Total lease payments		340		42
Less imputed interest		21		3
Total lease liabilities	$	319	$	39

Schedule of Finance Lease Payment Amounts

Lease payment amounts in each of the next five years at May 3, 2020 follow in millions of dollars:

	Operating		Finance
Due in:	Leases		Leases
Remainder of 2020	$	59	$	7
2021		79		13
2022		67		10
2023		46		5
2024		35		3
2025		19		1
Later years		35		3
Total lease payments		340		42
Less imputed interest		21		3
Total lease liabilities	$	319	$	39

Schedule of Future Minimum Payments under Previous Lease Standard for Operating Leases

Future minimum lease payments under the previous lease standard for operating and finance leases at November 3, 2019 follow in millions of dollars:

	Operating		Capital
Due in:	Leases		Leases
2020	$	111	$	12
2021		77		10
2022		56		6
2023		39		2
2024		28		1
Later years		26		1
Total minimum lease payments	$	337	$	32

Schedule of Future Minimum Payments under Previous Lease Standard for Capital Leases

Future minimum lease payments under the previous lease standard for operating and finance leases at November 3, 2019 follow in millions of dollars:

	Operating		Capital
Due in:	Leases		Leases
2020	$	111	$	12
2021		77		10
2022		56		6
2023		39		2
2024		28		1
Later years		26		1
Total minimum lease payments	$	337	$	32

Schedule of Cash Paid for Amounts Included in the Measurement of Lease Liabilities and Right of Use Assets Obtained in Exchange for Lease Liabilities

Cash paid for amounts included in the measurement of lease liabilities:

	Six Months Ended
	May 3, 2020
Operating cash flows from operating leases	$	64
Operating cash flows from finance leases		1
Financing cash flows from finance leases		9

Right of use assets obtained in exchange for lease liabilities:

	Six Months Ended
	May 3, 2020
Operating leases	$	10
Finance leases		18

Schedule of Lease Revenues Earned

Lease revenues earned by the Company were as follows in millions of dollars:

	Three Months Ended		Six Months Ended
	May 3, 2020		May 3, 2020
Sales-type and direct finance lease revenues	$	32	$	68
Operating lease revenues		369		743
Variable lease revenues		6		11
Total lease revenues	$	407	$	822

Schedule of Sales-type and Direct Financing Lease Receivables by Product Category

Sales-type and direct financing lease receivables by product category were as follows in millions of dollars:

	May 3		November 3
	2020		2019
Agriculture and turf	$	792	$	897
Construction and forestry		923		1,033
Total		1,715		1,930
Guaranteed residual values		175		232
Unguaranteed residual values		92		101
Less unearned finance income		197		212
Financing leases receivables	$	1,785	$	2,051

Schedule of Scheduled Payments, Including Guaranteed Residual Values, on Sales-type and Direct Financing Leases Receivables

Scheduled payments, including guaranteed residual values, on sales-type and direct financing lease receivables at May 3, 2020 follow in millions of dollars:

	May 3
Due in:	2020
Remainder of 2020	$	460
2021		670
2022		409
2023		213
2024		103
2025		27
Later years		8
Total	$	1,890

Schedule of Financing Lease Receivables Scheduled Payments under the Previous Lease Standard

Scheduled payments on financing lease receivables under the previous lease standard at November 3, 2019 follow in millions of dollars:

	November 3
Due in:	2019
2020	$	833
2021		557
2022		321
2023		153
2024		53
Later years		13
Total	$	1,930

Schedule of Cost of Equipment on Operating Leases by Product Category

The cost of equipment on operating leases by product category was as follows in millions of dollars:

	May 3		November 3
	2020		2019
Agriculture and turf	$	7,080	$	7,257
Construction and forestry		2,097		2,165
Total		9,177		9,422
Less accumulated depreciation		1,932		1,855
Equipment on operating leases - net	$	7,245	$	7,567

Schedule of Lease Payments for Equipment on Operating Leases

Lease payments for equipment on operating leases at May 3, 2020 were scheduled as follows in millions of dollars:

	May 3
Due in:	2020
Remainder of 2020	$	563
2021		932
2022		573
2023		282
2024		107
2025		7
Total	$	2,464

Schedule of Rental Payments for Equipment on Operating Leases under the Previous Lease Standard

Rental payments for equipment on operating leases under the previous lease standard at November 3, 2019 were scheduled as follows in millions of dollars:

	November 3
Due in:	2019
2020	$	1,086
2021		759
2022		419
2023		193
2024		41
Total	$	2,498