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FINANCING RECEIVABLES (Tables) | 9 Months Ended
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Aug. 02, 2020
FINANCING RECEIVABLES |
Age Analysis of Past Due Financing Receivables Still Accruing Interest and Non-Performing Financing Receivables | An age analysis of past due financing receivables that are still accruing interest and non-performing financing receivables in millions of dollars follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | August 2, 2020 | ​
​ |  | ​ | ​ |  | ​ | ​ |  | 90 Days |  | ​ | ​ |
​ | ​ | 30-59 Days | ​ | 60-89 Days | ​ | or Greater | ​ | Total | ​
​ | ​ | Past Due | ​ | Past Due | ​ | Past Due | ​ | Past Due | ​
Retail Notes: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agriculture and turf |  | $ | 131 |  | $ | 63 |  | $ | 2 |  | $ | 196 | ​
Construction and forestry | ​ | ​ | 65 | ​ | ​ | 22 | ​ | ​ | 12 | ​ | ​ | 99 | ​
Other: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agriculture and turf | ​ | ​ | 37 | ​ | ​ | 17 | ​ | ​ | 2 | ​ | ​ | 56 | ​
Construction and forestry | ​ | ​ | 28 | ​ | ​ | 19 | ​ | ​ | ​ | ​ | ​ | 47 | ​
Total |  | $ | 261 |  | $ | 121 |  | $ | 16 |  | $ | 398 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ | Total | ​
​ | ​ | Total | ​ | Total | ​ | ​ | ​ | ​ | Financing | ​
​ | ​ | Past Due | ​ | Non-Performing | ​ | Current | ​ | Receivables | ​
Retail Notes: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agriculture and turf |  | $ | 196 |  | $ | 306 |  | $ | 19,255 |  | $ | 19,757 | ​
Construction and forestry | ​ | ​ | 99 | ​ | ​ | 102 | ​ | ​ | 3,748 | ​ | ​ | 3,949 | ​
Other: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agriculture and turf | ​ | ​ | 56 | ​ | ​ | 81 | ​ | ​ | 8,161 | ​ | ​ | 8,298 | ​
Construction and forestry | ​ | ​ | 47 | ​ | ​ | 40 | ​ | ​ | 1,392 | ​ | ​ | 1,479 | ​
Total |  | $ | 398 |  | $ | 529 |  | $ | 32,556 | ​ | ​ | 33,483 | ​
Less allowance for credit losses | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 200 | ​
Total financing receivables – net | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | $ | 33,283 | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | November 3, 2019 | ​
​ |  | ​ | ​ |  | ​ | ​ |  | 90 Days |  | ​ | ​ |
​ | ​ | 30-59 Days | ​ | 60-89 Days | ​ | or Greater | ​ | Total | ​
​ | ​ | Past Due | ​ | Past Due | ​ | Past Due | ​ | Past Due |
Retail Notes: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agriculture and turf | ​ | $ | 138 | ​ | $ | 73 | ​ | $ | 1 | ​ | $ | 212 | ​
Construction and forestry | ​ |  | 79 | ​ | ​ | 29 |  | ​ | 4 |  | ​ | 112 |
Other: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agriculture and turf | ​ |  | 39 | ​ | ​ | 19 |  | ​ | 1 |  | ​ | 59 |
Construction and forestry | ​ |  | 26 | ​ | ​ | 7 |  | ​ | ​ |  | ​ | 33 |
Total | ​ | $ | 282 | ​ | $ | 128 | ​ | $ | 6 | ​ | $ | 416 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ | Total |
​ | ​ | Total | ​ | Total | ​ | ​ | ​ | ​ | Financing |
​ | ​ | Past Due | ​ | Non-Performing | ​ | Current | ​ | Receivables |
Retail Notes: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agriculture and turf | ​ | $ | 212 | ​ | $ | 268 | ​ | $ | 18,931 | ​ | $ | 19,411 | ​
Construction and forestry | ​ | ​ | 112 |  | ​ | 127 |  | ​ | 3,450 |  | ​ | 3,689 |
Other: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agriculture and turf | ​ | ​ | 59 |  | ​ | 28 |  | ​ | 8,986 |  | ​ | 9,073 |
Construction and forestry | ​ | ​ | 33 |  | ​ | 26 |  | ​ | 1,496 |  | ​ | 1,555 |
Total | ​ | $ | 416 | ​ | $ | 449 | ​ | $ | 32,863 | ​ | ​ | 33,728 |
Less allowance for credit losses | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 150 |
Total financing receivables – net | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 33,578 | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | July 28, 2019 | ​
​ |  | ​ | ​ |  | ​ | ​ |  | 90 Days |  | ​ | ​ |
​ | ​ | 30-59 Days | ​ | 60-89 Days | ​ | or Greater | ​ | Total | ​
​ | ​ | Past Due | ​ | Past Due | ​ | Past Due | ​ | Past Due | ​
Retail Notes: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agriculture and turf |  | $ | 136 | ​ | $ | 63 |  | $ | 3 |  | $ | 202 |
Construction and forestry | ​ | ​ | 87 | ​ | ​ | 35 | ​ |  | 2 | ​ | ​ | 124 | ​
Other: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agriculture and turf | ​ | ​ | 38 | ​ | ​ | 22 | ​ |  | ​ | ​ | ​ | 60 | ​
Construction and forestry | ​ | ​ | 17 | ​ | ​ | 7 | ​ |  | ​ | ​ | ​ | 24 | ​
Total | ​ | $ | 278 | ​ | $ | 127 | ​ | $ | 5 | ​ | $ | 410 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Total | ​
​ | ​ | Total | ​ | Total | ​ | ​ | ​ | ​ | Financing | ​
​ | ​ | Past Due | ​ | Non-Performing | ​ | Current | ​ | Receivables | ​
Retail Notes: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agriculture and turf | ​ | $ | 202 | ​ | $ | 301 | ​ | $ | 18,038 | ​ | $ | 18,541 | ​
Construction and forestry | ​ | ​ | 124 | ​ |  | 135 | ​ |  | 3,249 | ​ | ​ | 3,508 | ​
Other: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agriculture and turf | ​ | ​ | 60 | ​ |  | 37 | ​ |  | 8,833 | ​ | ​ | 8,930 | ​
Construction and forestry | ​ | ​ | 24 | ​ |  | 14 | ​ |  | 1,417 | ​ | ​ | 1,455 | ​
Total | ​ | $ | 410 | ​ | $ | 487 | ​ | $ | 31,537 | ​ | ​ | 32,434 | ​
Less allowance for credit losses | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 185 | ​
Total financing receivables – net | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 32,249 | ​
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 in millions of dollars during the periods follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Revolving | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Retail | ​ | Charge | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Notes | ​ | Accounts | ​ | Other | ​ | Total | ​
Three Months Ended August 2, 2020 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Allowance: |  |  |  |  |  |  |  |  |  |  | ​ | ​ |
Beginning of period balance |  | $ | 119 |  | $ | 43 | ​ | $ | 33 | ​ | $ | 195 | ​
Provision (credit) | ​ | ​ | 5 | ​ | ​ | 14 | ​ | ​ | (1) | ​ | ​ | 18 | ​
Write-offs | ​ | ​ | (7) | ​ | ​ | (22) | ​ | ​ | (2) | ​ | ​ | (31) | ​
Recoveries | ​ | ​ | 6 | ​ | ​ | 8 | ​ | ​ | 1 | ​ | ​ | 15 | ​
Translation adjustments | ​ | ​ | 2 | ​ | ​ | ​ | ​ | ​ | 1 | ​ | ​ | 3 | ​
End of period balance * |  | $ | 125 |  | $ | 43 | ​ | $ | 32 | ​ | $ | 200 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Nine Months Ended August 2, 2020 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Allowance: |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Beginning of period balance |  | $ | 89 |  | $ | 40 | ​ | $ | 21 | ​ | $ | 150 | ​
Provision | ​ | ​ | 79 | ​ | ​ | 32 | ​ | ​ | 13 | ​ | ​ | 124 | ​
Write-offs | ​ | ​ | (47) | ​ | ​ | (51) | ​ | ​ | (6) | ​ | ​ | (104) | ​
Recoveries | ​ | ​ | 10 | ​ | ​ | 22 | ​ | ​ | 2 | ​ | ​ | 34 | ​
Translation adjustments | ​ | ​ | (6) | ​ | ​ | ​ | ​ | ​ | 2 | ​ | ​ | (4) | ​
End of period balance * |  | $ | 125 |  | $ | 43 | ​ | $ | 32 | ​ | $ | 200 | ​
Financing receivables: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
End of period balance |  | $ | 23,706 |  | $ | 3,997 | ​ | $ | 5,780 | ​ | $ | 33,483 | ​
Balance individually evaluated ** |  | $ | 160 |  | $ | 1 | ​ | $ | 67 | ​ | $ | 228 | ​
* Individual allowances were not significant. ** Remainder is collectively evaluated. The negative economic effects related to COVID and other macroeconomic issues have significantly affected certain retail borrowers, particularly of construction equipment. As a result, the allowance for credit losses increased $50 million in the first nine months of 2020 reflecting estimated credit losses inherent in the financing receivables.
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Revolving | ​ | ​ | ​ | ​ | ​ | ​ |
​ | ​ | Retail | ​ | Charge | ​ | ​ | ​ | ​ | ​ | ​ |
​ | ​ | Notes | ​ | Accounts | ​ | Other | ​ | Total | ​
Three Months Ended July 28, 2019 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Allowance: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  | ​
Beginning of period balance | ​ | $ | 115 |  | $ | 43 | ​ | $ | 24 | ​ | $ | 182 | ​
Provision | ​ |  | 7 | ​ | ​ | 18 | ​ | ​ | 1 | ​ |  | 26 | ​
Write-offs | ​ |  | (9) | ​ | ​ | (26) | ​ | ​ | (1) | ​ |  | (36) | ​
Recoveries | ​ |  | 5 | ​ | ​ | 8 | ​ | ​ | ​ | ​ |  | 13 | ​
Translation adjustments | ​ |  | 2 | ​ | ​ | ​ | ​ | ​ | (2) | ​ |  | ​ | ​
End of period balance * | ​ | $ | 120 | ​ | $ | 43 | ​ | $ | 22 | ​ | $ | 185 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Nine Months Ended July 28, 2019 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Allowance: |  |  |  |  |  |  |  |  |  |  | ​ | ​ | ​
Beginning of period balance | ​ | $ | 113 |  | $ | 43 | ​ | $ | 22 | ​ | $ | 178 | ​
Provision | ​ |  | 21 | ​ | ​ | 34 | ​ | ​ | 7 | ​ |  | 62 | ​
Write-offs | ​ |  | (29) | ​ | ​ | (51) | ​ | ​ | (5) | ​ |  | (85) | ​
Recoveries | ​ |  | 15 | ​ | ​ | 17 | ​ | ​ | 1 | ​ |  | 33 | ​
Translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3) | ​ |  | (3) | ​
End of period balance * | ​ | $ | 120 | ​ | $ | 43 | ​ | $ | 22 | ​ | $ | 185 | ​
Financing receivables: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
End of period balance | ​ | $ | 22,049 |  | $ | 3,877 | ​ | $ | 6,508 | ​ | $ | 32,434 | ​
Balance individually evaluated ** | ​ | $ | 145 |  | ​ | ​ | ​ | $ | 10 | ​ | $ | 155 | ​
* Individual allowances were not significant. ** Remainder is collectively evaluated.
Analysis of the Impaired Financing Receivables | An analysis of the impaired financing receivables in millions of dollars follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | Unpaid |  | ​ | ​ |  | Average |
​ | ​ | Recorded | ​ | Principal | ​ | Specific | ​ | Recorded | ​
​ | ​ | Investment | ​ | Balance | ​ | Allowance | ​ | Investment | ​
August 2, 2020* | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Receivables with specific allowance *** |  | $ | 92 |  | $ | 91 |  | $ | 23 | ​ | $ | 106 | ​
Receivables without a specific allowance ** | ​ | ​ | 36 | ​ | ​ | 33 | ​ | ​ | ​ | ​ | ​ | 38 | ​
Total |  | $ | 128 |  | $ | 124 |  | $ | 23 | ​ | $ | 144 | ​
Agriculture and turf |  | $ | 106 |  | $ | 103 |  | $ | 17 | ​ | $ | 117 | ​
Construction and forestry |  | $ | 22 |  | $ | 21 | ​ | $ | 6 |  | $ | 27 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
November 3, 2019* | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Receivables with specific allowance ** | ​ | $ | 40 | ​ | $ | 39 | ​ | $ | 13 | ​ | $ | 40 | ​
Receivables without a specific allowance ** | ​ |  | 32 | ​ |  | 31 | ​ | ​ | ​ | ​ |  | 37 | ​
Total | ​ | $ | 72 |  | $ | 70 |  | $ | 13 | ​ | $ | 77 | ​
Agriculture and turf | ​ | $ | 49 | ​ | $ | 48 | ​ | $ | 8 | ​ | $ | 52 | ​
Construction and forestry | ​ | $ | 23 | ​ | $ | 22 | ​ | $ | 5 | ​ | $ | 25 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
July 28, 2019* | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Receivables with specific allowance ** | ​ | $ | 37 |  | $ | 36 |  | $ | 13 | ​ | $ | 37 | ​
Receivables without a specific allowance ** | ​ |  | 35 | ​ | ​ | 33 | ​ | ​ | ​ | ​ | ​ | 39 | ​
Total | ​ | $ | 72 |  | $ | 69 |  | $ | 13 | ​ | $ | 76 | ​
Agriculture and turf | ​ | $ | 51 |  | $ | 50 |  | $ | 9 | ​ | $ | 52 | ​
Construction and forestry | ​ | $ | 21 |  | $ | 19 | ​ | $ | 4 |  | $ | 24 | ​
* Finance income recognized was not material. ** Primarily retail notes. *** Primarily retail notes and wholesale receivables.

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