XML 38 R25.htm IDEA: XBRL DOCUMENT
v3.6.0.2

TOTAL SHORT-TERM BORROWINGS | 12 Months Ended
--- | ---
Oct. 31, 2016
TOTAL SHORT-TERM BORROWINGS |
TOTAL SHORT-TERM BORROWINGS | 18. TOTAL SHORT-TERM BORROWINGS Total short-term borrowings at October 31 consisted of the following in millions of dollars:
|  | 2016 |  | 2015 |
Equipment Operations |  |  |  |  |  |  |
Commercial paper |  |  |  |  | $ | 225 |
Notes payable to banks |  | $ | 164 |  |  | 154 |
Long-term borrowings due within one year |  |  | 85 |  |  | 86 |
Total |  |  | 249 |  |  | 465 |
Financial Services |  |  |  |  |  |  |
Commercial paper |  |  | 1,253 |  |  | 2,743 |
Notes payable to banks |  |  | 151 |  |  | 52 |
Long-term borrowings due within one year* |  |  | 5,259 |  |  | 5,167 |
Total |  |  | 6,663 |  |  | 7,962 |
Short-term borrowings |  |  | 6,912 |  |  | 8,427 |
Financial Services |  |  |  |  |  |  |
Short-term securitization borrowings |  |  | 5,003 |  |  | 4,590 |
Total short-term borrowings |  | $ | 11,915 |  | $ | 13,017 |
* Includes unamortized fair value adjustments related to interest rate swaps. The short-term securitization borrowings for financial services are secured by financing receivables (retail notes) on the balance sheet (see Note 13). Although these securitization borrowings are classified as short-term since payment is required if the retail notes are liquidated early, the payment schedule for these borrowings of $5,003 million at October 31, 2016 based on the expected liquidation of the retail notes in millions of dollars is as follows: 2017 - $2,727, 2018 - $1,474, 2019 - $663, 2020 - $112, 2021 - $25 and 2022 - $2. The weighted-average interest rates on total short-term borrowings, excluding current maturities of long-term borrowings, at October 31, 2016 and 2015 were 1.6 percent and .9 percent, respectively. Lines of credit available from U.S. and foreign banks were $7,315 million at October 31, 2016. At October 31, 2016, $5,747 million of these worldwide lines of credit were unused. For the purpose of computing the unused credit lines, commercial paper and short-term bank borrowings, excluding secured borrowings and the current portion of long-term borrowings, were primarily considered to constitute utilization. Included in the above lines of credit were long-term credit facility agreements for $2,900 million, expiring in April 2020, and $2,900 million, expiring in April 2021. The agreements are mutually extendable and the annual facility fees are not significant. These credit agreements require Capital Corporation to maintain its consolidated ratio of earnings to fixed charges at not less than 1.05 to 1 for each fiscal quarter and the ratio of senior debt, excluding securitization indebtedness, to capital base (total subordinated debt and stockholder’s equity excluding accumulated other comprehensive income (loss)) at not more than 11 to 1 at the end of any fiscal quarter. The credit agreements also require the equipment operations to maintain a ratio of total debt to total capital (total debt and stockholders’ equity excluding accumulated other comprehensive income (loss)) of 65 percent or less at the end of each fiscal quarter. Under this provision, the company’s excess equity capacity and retained earnings balance free of restriction at October 31, 2016 was $9,553 million. Alternatively under this provision, the equipment operations had the capacity to incur additional debt of $17,742 million at October 31, 2016. All of these requirements of the credit agreements have been met during the periods included in the consolidated financial statements. Deere & Company has an agreement with Capital Corporation pursuant to which it has agreed to continue to own, directly or through one or more wholly-owned subsidiaries, at least 51 percent of the voting shares of capital stock of Capital Corporation and to maintain Capital Corporation’s consolidated tangible net worth at not less than $50 million. This agreement also obligates Deere & Company to make payments to Capital Corporation such that its consolidated ratio of earnings to fixed charges is not less than 1.05 to 1 for each fiscal quarter. Deere & Company’s obligations to make payments to Capital Corporation under the agreement are independent of whether Capital Corporation is in default on its indebtedness, obligations or other liabilities. Further, Deere & Company’s obligations under the agreement are not measured by the amount of Capital Corporation’s indebtedness, obligations or other liabilities. Deere & Company’s obligations to make payments under this agreement are expressly stated not to be a guaranty of any specific indebtedness, obligation or liability of Capital Corporation and are enforceable only by or in the name of Capital Corporation. No payments were required under this agreement during the periods included in the consolidated financial statements.

X
- References No definition available. + Details
Name: | us-gaap_ShortTermBorrowingsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for short-term debt. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03.16) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.13) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 + Details
Name: | us-gaap_ShortTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration