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COMMITMENTS AND CONTINGENCIES | 3 Months Ended
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Jan. 29, 2023
COMMITMENTS AND CONTINGENCIES |
COMMITMENTS AND CONTINGENCIES | (16) Commitments and Contingencies The Company determines its total warranty liability by applying historical claims rate experience to the estimated amount of equipment that has been sold and is still under warranty based on dealer inventories and retail sales. The historical claims rate is determined by a review of five-year claims costs and current quality developments. The premiums for extended warranties are recognized in Other income in the statements of consolidated income in proportion to the costs expected to be incurred over the contract period. The unamortized extended warranty premiums (deferred revenue) included in the following table totaled $901 million and $781 million at January 29, 2023 and January 30, 2022, respectively. A reconciliation of the changes in the warranty liability and unearned premiums in millions of dollars follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended |
​ | ​ | January 29 | ​ | January 30 |
​ | ​ | 2023 | ​ | 2022 |
Beginning of period balance |  | $ | 2,293 |  | $ | 2,086 | ​
Payments | ​ | ​ | (263) | ​ |  | (193) | ​
Amortization of premiums received | ​ | ​ | (83) | ​ |  | (66) | ​
Accruals for warranties | ​ | ​ | 255 | ​ |  | 181 | ​
Premiums received | ​ | ​ | 106 | ​ |  | 83 | ​
Foreign exchange | ​ | ​ | 37 | ​ |  | (27) | ​
End of period balance | ​ | $ | 2,345 | ​ | $ | 2,064 | ​
​ At January 29, 2023, the Company had $235 million of guarantees issued to banks outside the U.S. and Canada related to third-party receivables for the retail financing of John Deere equipment. The Company may recover a portion of any required payments incurred under these agreements from repossession of the equipment collateralizing the receivables. At January 29, 2023, the accrued losses under these agreements were not material. The maximum remaining term of the receivables guaranteed at January 29, 2023 was about seven years. At January 29, 2023, the Company had commitments of $467 million for the construction and acquisition of property and equipment. Also, at January 29, 2023, the Company had restricted assets of $269 million, classified as “Other assets.” The Company also had other miscellaneous contingent liabilities and guarantees totaling approximately $90 million at January 29, 2023. The accrued liability for these contingencies was not material at January 29, 2023. The Company is subject to various unresolved legal actions which arise in the normal course of its business, the most prevalent of which relate to product liability (including asbestos-related liability), retail credit, employment, patent, trademark, and antitrust matters. The Company believes the reasonably possible range of losses for these unresolved legal actions would not have a material effect on its consolidated financial statements.

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- Definition The entire disclosure for commitments, contingencies, and guarantees. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI https://asc.fasb.org/topic&trid=2127136 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI https://asc.fasb.org/topic&trid=2144648 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -URI https://asc.fasb.org/topic&trid=2155896 + Details
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