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FINANCING RECEIVABLES (Tables)

3 Months Ended

Jan. 31, 2021

Financing Receivables

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:


		Three Months Ended January 31, 2021
		Retail Notes			Revolving
		& Financing			Charge			Wholesale
		Leases			Accounts			Receivables			Total
Allowance:
Beginning of period balance		$	133		$	43		$	8		$	184
ASU No. 2016-13 adoption			44			(13)						31
Provision (credit)			5			(10)			(1)			(6)
Write-offs			(8)			(5)						(13)
Recoveries			5			9						14
Translation adjustments			1									1
End of period balance		$	180		$	24		$	7		$	211

Financing receivables:
End of period balance		$	27,810		$	2,685		$	3,085		$	33,580


		Three Months Ended February 2, 2020
		Retail Notes			Revolving
		& Financing			Charge			Wholesale
		Leases			Accounts			Receivables			Total
Allowance:
Beginning of period balance		$	107		$	40		$	3		$	150
Provision (credit)			16			(1)			6			21
Write-offs			(18)			(7)						(25)
Recoveries			2			8						10
Translation adjustments			(1)						2			1
End of period balance		$	106		$	40		$	11		$	157

Financing receivables:
End of period balance		$	24,697		$	2,733		$	4,499		$	31,929

Customer Receivables

Financing Receivables

Credit Quality Analysis

The credit quality analysis of retail notes, financing leases, and revolving charge accounts (collectively, customer receivables), in millions of dollars at January 31, 2021 was as follows:


		Year of Origination
		2021			2020			2019			2018			2017			Prior			Revolving Charge Accounts			Total
Customer receivables:
Agriculture and turf
Current		$	2,531		$	9,427		$	5,129		$	2,817		$	1,400		$	686		$	2,564		$	24,554
30-59 days past due			4			65			49			30			13			7			27			195
60-89 days past due						20			17			11			5			3			5			61
90+ days past due									1															1
Non-performing						40			78			57			36			46			7			264
Construction and forestry
Current			737			2,251			1,276			573			164			39			77			5,117
30-59 days past due			5			53			32			17			6			1			3			117
60-89 days past due			1			15			16			7			3			1			1			44
90+ days past due						9			13			5			4			2						33
Non-performing						26			34			26			14			8			1			109
Total customer receivables		$	3,278		$	11,906		$	6,645		$	3,543		$	1,645		$	793		$	2,685		$	30,495

Age Credit Quality Analysis

The credit quality analysis of customer receivables in millions of dollars at November 1, 2020 and February 2, 2020 was as follows:


		November 1, 2020									February 2, 2020
Customer receivables:		Retail Notes & Financing Leases			Revolving Charge Accounts			Total			Retail Notes & Financing Leases			Revolving Charge Accounts			Total
Agriculture and turf
Current		$	21,597		$	3,787		$	25,384		$	19,455		$	2,578		$	22,033
30-59 days past due			135			13			148			162			53			215
60-89 days past due			64			4			68			71			15			86
90+ days past due			2						2			4						4
Non-performing			263			6			269			301			6			307
Construction and forestry
Current			4,859			88			4,947			4,362			75			4,437
30-59 days past due			111			2			113			121			4			125
60-89 days past due			55			1			56			46			1			47
90+ days past due			14						14			19						19
Non-performing			106			1			107			156			1			157
Total customer receivables		$	27,206		$	3,902		$	31,108		$	24,697		$	2,733		$	27,430

Wholesale Receivables

Financing Receivables

Credit Quality Analysis

The credit quality analysis of wholesale receivables in millions of dollars at January 31, 2021 was as follows:


		Year of Origination
		2021			2020			2019			2018			2017			Prior			Revolving			Total
Wholesale receivables:
Agriculture and turf
Current		$	78		$	226		$	67		$	18		$	8		$	1		$	2,297		$	2,695
30-59 days past due
60-89 days past due
90+ days past due
Non-performing									35															35
Construction and forestry
Current			3			11			20			2			1			2			315			354
30-59 days past due
60-89 days past due
90+ days past due																		1						1
Non-performing
Total wholesale receivables		$	81		$	237		$	122		$	20		$	9		$	4		$	2,612		$	3,085

Age Credit Quality Analysis

The credit quality analysis of wholesale receivables in millions of dollars at November 1, 2020 and February 2, 2020 was as follows:


		November 1			February 2
Wholesale receivables:		2020			2020
Agriculture and turf
Current		$	3,010		$	3,938
30-59 days past due						1
60-89 days past due
90+ days past due
Non-performing			47			76
Construction and forestry
Current			472			482
30-59 days past due
60-89 days past due
90+ days past due
Non-performing						2
Total wholesale receivables		$	3,529		$	4,499