Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Jan. 31, 2014 | |
Document and Entity Information | ' |
Entity Registrant Name | 'DEERE JOHN CAPITAL CORP |
Entity Central Index Key | '0000027673 |
Document Type | '10-Q |
Document Period End Date | 31-Jan-14 |
Amendment Flag | 'false |
Current Fiscal Year End Date | '--10-31 |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 2,500 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q1 |
Statement_of_Consolidated_Inco
Statement of Consolidated Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Revenues | ' | ' |
Finance income earned on retail notes | $179.20 | $179.80 |
Revolving charge account income | 50 | 50.7 |
Finance income earned on wholesale receivables | 86.7 | 79.4 |
Lease revenues | 98.7 | 81.6 |
Operating loan income | 0.3 | 0.5 |
Other income - net | 16.9 | 16.1 |
Total revenues | 431.8 | 408.1 |
Expenses | ' | ' |
Interest expense | 74.1 | 87.5 |
Operating expenses: | ' | ' |
Administrative and operating expenses | 95.2 | 88.1 |
Fees paid to John Deere | 18.3 | 23.1 |
Provision for credit losses | 2.3 | 0.7 |
Depreciation of equipment on operating leases | 67.7 | 53.8 |
Total operating expenses | 183.5 | 165.7 |
Total expenses | 257.6 | 253.2 |
Income of consolidated group before income taxes | 174.2 | 154.9 |
Provision for income taxes | 38.5 | 50.2 |
Income of consolidated group | 135.7 | 104.7 |
Equity in income of unconsolidated affiliate | 0.8 | 0.3 |
Net income | 136.5 | 105 |
Net income attributable to the Company | $136.50 | $105 |
Statement_of_Consolidated_Comp
Statement of Consolidated Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Statement of Consolidated Comprehensive Income | ' | ' |
Net income | $136.50 | $105 |
Other comprehensive income (loss), net of income taxes | ' | ' |
Cumulative translation adjustment | -9.1 | 5.9 |
Unrealized gain on derivatives | 2.1 | 2.5 |
Other comprehensive income (loss), net of income taxes | -7 | 8.4 |
Comprehensive income of consolidated group | 129.5 | 113.4 |
Comprehensive income attributable to the Company | $129.50 | $113.40 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2013 |
In Millions, unless otherwise specified | |||
Assets | ' | ' | ' |
Cash and cash equivalents | $357.60 | $379.50 | $354.10 |
Receivables: | ' | ' | ' |
Total receivables | 28,275.80 | 28,833.30 | 25,061.70 |
Allowance for credit losses | -111 | -111.4 | -113.4 |
Total receivables - net | 28,164.80 | 28,721.90 | 24,948.30 |
Other receivables | 35.9 | 32.8 | 32.9 |
Receivables from John Deere | 169.3 | 176.6 | 327.4 |
Equipment on operating leases - net | 1,854.20 | 1,872.10 | 1,380.30 |
Investment in unconsolidated affiliate | 10.9 | 10.2 | 9.3 |
Deferred income taxes | 24.8 | 11.7 | 14.5 |
Other assets | 504.5 | 459.4 | 542.6 |
Total Assets | 31,122 | 31,664.20 | 27,609.40 |
Short-term borrowings: | ' | ' | ' |
Commercial paper and other notes payable | 2,177.70 | 2,768.50 | 1,608.50 |
Securitization borrowings | 3,490.80 | 4,109.10 | 3,043.90 |
John Deere | 2,119.90 | 2,234.10 | 740.9 |
Current maturities of long-term borrowings | 3,903.10 | 3,602.20 | 3,615.60 |
Total short-term borrowings | 11,691.50 | 12,713.90 | 9,008.90 |
Other payables to John Deere | 108.5 | 85.9 | 31.8 |
Accounts payable and accrued expenses | 565.7 | 729.5 | 585.9 |
Deposits withheld from dealers and merchants | 169.5 | 173.8 | 171.6 |
Deferred income taxes | 340.9 | 334.9 | 294.1 |
Long-term borrowings | 14,685.30 | 14,195.10 | 14,370.10 |
Total liabilities | 27,561.40 | 28,233.10 | 24,462.40 |
Commitments and contingencies (Note 6) | ' | ' | ' |
Stockholder's equity: | ' | ' | ' |
Common stock, without par value (issued and outstanding - 2,500 shares owned by John Deere Financial Services, Inc.) | 1,482.80 | 1,482.80 | 1,432.80 |
Retained earnings | 2,048.80 | 1,912.30 | 1,683.80 |
Accumulated other comprehensive income | 28.6 | 35.6 | 30 |
Total Company stockholder's equity | 3,560.20 | 3,430.70 | 3,146.60 |
Noncontrolling interests | 0.4 | 0.4 | 0.4 |
Total stockholder's equity | 3,560.60 | 3,431.10 | 3,147 |
Total Liabilities and Stockholder's Equity | 31,122 | 31,664.20 | 27,609.40 |
Retail notes | ' | ' | ' |
Receivables: | ' | ' | ' |
Total receivables | 14,820.20 | 14,079.30 | 12,809.80 |
Retail notes securitized | ' | ' | ' |
Receivables: | ' | ' | ' |
Total receivables | 3,502.10 | 4,167.20 | 3,047 |
Revolving charge accounts | ' | ' | ' |
Receivables: | ' | ' | ' |
Total receivables | 1,760 | 2,534.90 | 1,755.30 |
Wholesale receivables | ' | ' | ' |
Receivables: | ' | ' | ' |
Total receivables | 7,638.30 | 7,464.70 | 6,891.40 |
Financing leases | ' | ' | ' |
Receivables: | ' | ' | ' |
Total receivables | 529.9 | 555.3 | 517.4 |
Operating loans | ' | ' | ' |
Receivables: | ' | ' | ' |
Total receivables | $25.30 | $31.90 | $40.80 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2013 |
Consolidated Balance Sheet | ' | ' | ' |
Common stock, issued shares | 2,500 | 2,500 | 2,500 |
Common stock, outstanding shares | 2,500 | 2,500 | 2,500 |
Statement_of_Consolidated_Cash
Statement of Consolidated Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Cash Flows from Operating Activities: | ' | ' |
Net income | $136.50 | $105 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision for credit losses | 2.3 | 0.7 |
Provision for depreciation and amortization | 70.1 | 56.1 |
Provision (credit) for deferred income taxes | -8.2 | 3.6 |
Undistributed earnings of unconsolidated affiliate | -0.8 | -0.3 |
Change in accounts payable and accrued expenses | -36.5 | -38.2 |
Change in accrued income taxes payable/receivable | 12 | -1 |
Other | -8.3 | 23.6 |
Net cash provided by operating activities | 167.1 | 149.5 |
Cash Flows from Investing Activities: | ' | ' |
Cost of receivables acquired (excluding wholesale) | -4,080.60 | -3,847.20 |
Collections of receivables (excluding wholesale) | 4,647.10 | 4,337.20 |
Increase in wholesale receivables - net | -205.5 | -380.4 |
Cost of equipment on operating leases acquired | -307.1 | -226 |
Proceeds from sales of equipment on operating leases | 187.4 | 163.2 |
Proceeds from sales of receivables | ' | 0.7 |
Change in restricted cash | -33.9 | -23.5 |
Decrease in collateral on derivatives received - net | ' | -15 |
Other | -6.6 | -2.9 |
Net cash provided by investing activities | 200.8 | 6.1 |
Cash Flows from Financing Activities: | ' | ' |
Increase (decrease) in commercial paper and other notes payable - net | -530.8 | 590.2 |
Decrease in securitization borrowings - net | -618.3 | -530.9 |
Increase (decrease) in payable to John Deere - net | -107.8 | 207.2 |
Proceeds from issuance of long-term borrowings | 1,772.70 | 500.4 |
Payments of long-term borrowings | -883.9 | -1,156.50 |
Dividends paid | ' | -30 |
Debt issuance costs | -6.8 | -3.7 |
Net cash used for financing activities | -374.9 | -423.3 |
Effect of exchange rate changes on cash and cash equivalents | -14.9 | -6.6 |
Net decrease in cash and cash equivalents | -21.9 | -274.3 |
Cash and cash equivalents at beginning of period | 379.5 | 628.4 |
Cash and cash equivalents at end of period | $357.60 | $354.10 |
Statement_of_Changes_in_Consol
Statement of Changes in Consolidated Stockholder's Equity (USD $) | Total | Common Stock | Retained Earnings | Total Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interests |
In Millions, unless otherwise specified | |||||
Balance at Oct. 31, 2012 | $3,063.60 | $1,432.80 | $1,608.80 | $21.60 | $0.40 |
Increase (Decrease) in Stockholder's Equity | ' | ' | ' | ' | ' |
Net income | 105 | ' | 105 | ' | ' |
Other comprehensive income (loss) | 8.4 | ' | ' | 8.4 | ' |
Dividends declared | -30 | ' | -30 | ' | ' |
Balance at Jan. 31, 2013 | 3,147 | 1,432.80 | 1,683.80 | 30 | 0.4 |
Balance at Oct. 31, 2013 | 3,431.10 | 1,482.80 | 1,912.30 | 35.6 | 0.4 |
Increase (Decrease) in Stockholder's Equity | ' | ' | ' | ' | ' |
Net income | 136.5 | ' | 136.5 | ' | ' |
Other comprehensive income (loss) | -7 | ' | ' | -7 | ' |
Balance at Jan. 31, 2014 | $3,560.60 | $1,482.80 | $2,048.80 | $28.60 | $0.40 |
Organization_and_Consolidation
Organization and Consolidation | 3 Months Ended |
Jan. 31, 2014 | |
Organization and Consolidation | ' |
Organization and Consolidation | ' |
(1) John Deere Capital Corporation and its subsidiaries (Capital Corporation), and its other consolidated entities are collectively called the Company. The consolidated financial statements have been prepared by the Company, without audit, pursuant to the rules and regulations of the United States (U.S.) Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been condensed or omitted as permitted by such rules and regulations. All adjustments, consisting of normal recurring adjustments, have been included. Management believes that the disclosures are adequate to present fairly the financial position, results of operations and cash flows at the dates and for the periods presented. It is suggested that these interim financial statements be read in conjunction with the consolidated financial statements and the notes thereto appearing in the Company’s latest annual report on Form 10-K. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year. | |
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Actual results could differ from those estimates. | |
The Company provides and administers financing for retail purchases of new equipment manufactured by Deere & Company’s agriculture and turf and construction and forestry divisions and used equipment taken in trade for this equipment. The Company generally purchases retail installment sales and loan contracts (retail notes) from Deere & Company and its wholly-owned subsidiaries (collectively called John Deere). John Deere generally acquires these retail notes through John Deere retail dealers. The Company also purchases and finances a limited amount of non-Deere retail notes and continues to service a small portfolio of other retail notes. The Company also finances and services revolving charge accounts, in most cases acquired from and offered through merchants in the agriculture and turf and construction and forestry markets (revolving charge accounts). The Company also provides wholesale financing for inventories of John Deere agriculture and turf and construction and forestry equipment owned by dealers of those products (wholesale receivables). In addition, the Company leases John Deere equipment and a limited amount of non-Deere equipment to retail customers (financing and operating leases). Further, the Company finances and services operating loans (operating loans). The Company also offers credit enhanced international export financing to select customers and dealers which generally involves John Deere products. Retail notes, revolving charge accounts, wholesale receivables, financing leases and operating loans are collectively called “Receivables.” Receivables and equipment on operating leases are collectively called “Receivables and Leases.” | |
New_Accounting_Standards
New Accounting Standards | 3 Months Ended |
Jan. 31, 2014 | |
New Accounting Standards | ' |
New Accounting Standards | ' |
(2) New accounting standards adopted in the first three months of 2014 were as follows: | |
In the first quarter of 2014, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2011-11, Disclosures about Offsetting Assets and Liabilities, which amends Accounting Standards Codification (ASC) 210, Balance Sheet. This ASU requires entities to disclose gross and net information about both instruments and transactions eligible for offset in the statement of financial position and those subject to an agreement similar to a master netting arrangement. This includes derivatives and other financial securities arrangements. The adoption did not have a material effect on the Company’s consolidated financial statements. | |
In the first quarter of 2014, the Company adopted FASB ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which amends ASC 220, Comprehensive Income. This ASU requires the disclosure of amounts reclassified out of accumulated other comprehensive income by component and by net income line item. The disclosure may be provided either parenthetically on the face of the financial statements or in the notes. The Company provided the disclosure in the notes. The adoption did not have a material effect on the Company’s consolidated financial statements. | |
Other_Comprehensive_Income
Other Comprehensive Income | 3 Months Ended | ||||||||||
Jan. 31, 2014 | |||||||||||
Other Comprehensive Income Items | ' | ||||||||||
Other Comprehensive Income Items | ' | ||||||||||
(3) The after-tax changes in accumulated other comprehensive income (loss) were as follows (in millions of dollars): | |||||||||||
Cumulative | Unrealized | Total | |||||||||
Translation | Gain (Loss) | Accumulated | |||||||||
Adjustment | on | Other | |||||||||
Derivatives | Comprehensive | ||||||||||
Income | |||||||||||
Balance October 31, 2013 | $ | 39.5 | $ | -3.9 | $ | 35.6 | |||||
Other comprehensive income (loss) items before reclassification | -9.1 | -3.8 | -12.9 | ||||||||
Amounts reclassified from accumulated other comprehensive income | 5.9 | 5.9 | |||||||||
Net current period other comprehensive income (loss) | -9.1 | 2.1 | -7 | ||||||||
Balance January 31, 2014 | $ | 30.4 | $ | -1.8 | $ | 28.6 | |||||
The details about reclassifications of gains (losses) out of accumulated other comprehensive income were as follows (in millions of dollars): | |||||||||||
Three Months Ended | |||||||||||
January 31, 2014 | |||||||||||
Loss on derivatives | |||||||||||
Interest rate contracts – Interest expense | $ | -3.6 | |||||||||
Foreign exchange contracts – Administrative and operating expenses | -5.5 | ||||||||||
Total | -9.1 | ||||||||||
Tax credit | 3.2 | ||||||||||
Total after-tax reclassifications for the period | $ | -5.9 | |||||||||
The items included in other comprehensive income (loss) and the related tax effects were as follows (in millions of dollars): | |||||||||||
Three Months Ended January 31, 2014 | Before Tax | Tax Expense | After Tax | ||||||||
Amount | Amount | ||||||||||
Cumulative translation adjustment | $ | -9.1 | $ | -9.1 | |||||||
Net unrealized gain on derivatives | 3.2 | $ | -1.1 | 2.1 | |||||||
Total other comprehensive loss | $ | -5.9 | $ | -1.1 | $ | -7 | |||||
Three Months Ended January 31, 2013 | Before Tax | Tax Expense | After Tax | ||||||||
Amount | Amount | ||||||||||
Cumulative translation adjustment | $ | 5.9 | $ | 5.9 | |||||||
Net unrealized gain on derivatives | 3.9 | $ | -1.4 | 2.5 | |||||||
Total other comprehensive income | $ | 9.8 | $ | -1.4 | $ | 8.4 | |||||
Receivables
Receivables | 3 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Receivables | ' | ||||||||||||||||
Receivables | ' | ||||||||||||||||
(4) Past due balances of Receivables still accruing finance income represent the total balance held (principal plus accrued interest) with any payment amounts 30 days or more past the contractual payment due date. | |||||||||||||||||
The Company monitors the credit quality of Receivables as either performing or non-performing monthly. Non-performing Receivables represent loans for which the Company has ceased accruing finance income. Generally, when retail notes are approximately 120 days delinquent, accrual of finance income is suspended, the collateral is repossessed or the account is designated for litigation and the estimated uncollectible amount, after charging the dealer’s withholding account, if any, is written off to the allowance for credit losses. Revolving charge accounts are generally deemed to be uncollectible and written off to the allowance for credit losses when delinquency reaches 120 days. Generally, when a wholesale receivable becomes 60 days delinquent, the Company determines whether the accrual of finance income on interest-bearing wholesale receivables should be suspended, the collateral should be repossessed or the account should be designated for litigation and the estimated uncollectible amount written off to the allowance for credit losses. Generally, when a financing lease account becomes 120 days delinquent, the accrual of lease revenue is suspended, the equipment is repossessed or the account is designated for litigation, and the estimated uncollectible amount, after charging the dealer’s withholding account, if any, is written off to the allowance for credit losses. Finance income for non-performing Receivables is recognized on a cash basis. Accrual of finance income is resumed when the receivable becomes contractually current and collections are reasonably assured. | |||||||||||||||||
An aging of past due Receivables that are still accruing interest and non-performing Receivables was as follows (in millions of dollars): | |||||||||||||||||
January 31, 2014 | |||||||||||||||||
30-59 Days | 60-89 Days | 90 Days or | Total | ||||||||||||||
Past Due | Past Due | Greater | Past Due | ||||||||||||||
Past Due | |||||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | $ | 93.3 | $ | 33.3 | $ | 21.8 | $ | 148.4 | |||||||||
Construction and forestry equipment | 50.2 | 19.4 | 9.9 | 79.5 | |||||||||||||
Revolving charge accounts: | |||||||||||||||||
Agriculture and turf equipment | 19.9 | 5 | 1.7 | 26.6 | |||||||||||||
Construction and forestry equipment | 4 | 1.3 | 0.5 | 5.8 | |||||||||||||
Wholesale receivables: | |||||||||||||||||
Agriculture and turf equipment | 11.1 | 5.2 | 6.3 | 22.6 | |||||||||||||
Construction and forestry equipment | 0.2 | 0.2 | 0.2 | 0.6 | |||||||||||||
Financing leases: | |||||||||||||||||
Agriculture and turf equipment | 4.4 | 3.9 | 1.4 | 9.7 | |||||||||||||
Construction and forestry equipment | 2.9 | 0.4 | 0.4 | 3.7 | |||||||||||||
Operating loans: | |||||||||||||||||
Agriculture and turf equipment | |||||||||||||||||
Total Receivables | $ | 186 | $ | 68.7 | $ | 42.2 | $ | 296.9 | |||||||||
Total | Total Non- | Current | Total | ||||||||||||||
Past Due | Performing | Receivables | |||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | $ | 148.4 | $ | 42 | $ | 16,251.10 | $ | 16,441.50 | |||||||||
Construction and forestry equipment | 79.5 | 14.1 | 1,787.20 | 1,880.80 | |||||||||||||
Revolving charge accounts: | |||||||||||||||||
Agriculture and turf equipment | 26.6 | 1 | 1,665.00 | 1,692.60 | |||||||||||||
Construction and forestry equipment | 5.8 | 0.1 | 61.5 | 67.4 | |||||||||||||
Wholesale receivables: | |||||||||||||||||
Agriculture and turf equipment | 22.6 | 0.5 | 6,795.40 | 6,818.50 | |||||||||||||
Construction and forestry equipment | 0.6 | 819.2 | 819.8 | ||||||||||||||
Financing leases: | |||||||||||||||||
Agriculture and turf equipment | 9.7 | 11.4 | 353.2 | 374.3 | |||||||||||||
Construction and forestry equipment | 3.7 | 0.9 | 151 | 155.6 | |||||||||||||
Operating loans: | |||||||||||||||||
Agriculture and turf equipment | 25.3 | 25.3 | |||||||||||||||
Total Receivables | $ | 296.9 | $ | 70 | $ | 27,908.90 | $ | 28,275.80 | |||||||||
October 31, 2013 | |||||||||||||||||
30-59 Days | 60-89 Days | 90 Days or | Total | ||||||||||||||
Past Due | Past Due | Greater | Past Due | ||||||||||||||
Past Due | |||||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | $ | 67.8 | $ | 23.3 | $ | 17.1 | $ | 108.2 | |||||||||
Construction and forestry equipment | 38.4 | 14.4 | 8.6 | 61.4 | |||||||||||||
Revolving charge accounts: | |||||||||||||||||
Agriculture and turf equipment | 14.6 | 4.5 | 2.2 | 21.3 | |||||||||||||
Construction and forestry equipment | 2.3 | 1 | 0.5 | 3.8 | |||||||||||||
Wholesale receivables: | |||||||||||||||||
Agriculture and turf equipment | 10 | 4.9 | 3 | 17.9 | |||||||||||||
Construction and forestry equipment | 0.3 | 0.1 | 0.9 | 1.3 | |||||||||||||
Financing leases: | |||||||||||||||||
Agriculture and turf equipment | 10.2 | 4 | 2.3 | 16.5 | |||||||||||||
Construction and forestry equipment | 2.2 | 0.5 | 2.7 | ||||||||||||||
Operating loans: | |||||||||||||||||
Agriculture and turf equipment | 0.1 | 0.1 | |||||||||||||||
Total Receivables | $ | 145.9 | $ | 52.7 | $ | 34.6 | $ | 233.2 | |||||||||
Total | Total Non- | Current | Total | ||||||||||||||
Past Due | Performing | Receivables | |||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | $ | 108.2 | $ | 34.1 | $ | 16,359.30 | $ | 16,501.60 | |||||||||
Construction and forestry equipment | 61.4 | 11.4 | 1,672.10 | 1,744.90 | |||||||||||||
Revolving charge accounts: | |||||||||||||||||
Agriculture and turf equipment | 21.3 | 0.9 | 2,438.00 | 2,460.20 | |||||||||||||
Construction and forestry equipment | 3.8 | 70.9 | 74.7 | ||||||||||||||
Wholesale receivables: | |||||||||||||||||
Agriculture and turf equipment | 17.9 | 0.3 | 6,541.10 | 6,559.30 | |||||||||||||
Construction and forestry equipment | 1.3 | 904.1 | 905.4 | ||||||||||||||
Financing leases: | |||||||||||||||||
Agriculture and turf equipment | 16.5 | 11 | 379 | 406.5 | |||||||||||||
Construction and forestry equipment | 2.7 | 2 | 144.1 | 148.8 | |||||||||||||
Operating loans: | |||||||||||||||||
Agriculture and turf equipment | 0.1 | 0.3 | 31.5 | 31.9 | |||||||||||||
Total Receivables | $ | 233.2 | $ | 60 | $ | 28,540.10 | $ | 28,833.30 | |||||||||
January 31, 2013 | |||||||||||||||||
30-59 Days | 60-89 Days | 90 Days or | Total | ||||||||||||||
Past Due | Past Due | Greater | Past Due | ||||||||||||||
Past Due | |||||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | $ | 71.1 | $ | 20.4 | $ | 14.2 | $ | 105.7 | |||||||||
Construction and forestry equipment | 39.8 | 16.7 | 8.1 | 64.6 | |||||||||||||
Revolving charge accounts: | |||||||||||||||||
Agriculture and turf equipment | 14.8 | 4.4 | 1.6 | 20.8 | |||||||||||||
Construction and forestry equipment | 2.1 | 0.8 | 0.6 | 3.5 | |||||||||||||
Wholesale receivables: | |||||||||||||||||
Agriculture and turf equipment | 2.6 | 2 | 5.1 | 9.7 | |||||||||||||
Construction and forestry equipment | 5.5 | 0.1 | 5.6 | ||||||||||||||
Financing leases: | |||||||||||||||||
Agriculture and turf equipment | 6.3 | 2 | 0.6 | 8.9 | |||||||||||||
Construction and forestry equipment | 2 | 0.4 | 0.1 | 2.5 | |||||||||||||
Operating loans: | |||||||||||||||||
Agriculture and turf equipment | 0.1 | 0.1 | |||||||||||||||
Total Receivables | $ | 144.2 | $ | 46.8 | $ | 30.4 | $ | 221.4 | |||||||||
Total | Total Non- | Current | Total | ||||||||||||||
Past Due | Performing | Receivables | |||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | $ | 105.7 | $ | 37 | $ | 14,235.40 | $ | 14,378.10 | |||||||||
Construction and forestry equipment | 64.6 | 13.3 | 1,400.80 | 1,478.70 | |||||||||||||
Revolving charge accounts: | |||||||||||||||||
Agriculture and turf equipment | 20.8 | 0.7 | 1,674.30 | 1,695.80 | |||||||||||||
Construction and forestry equipment | 3.5 | 56 | 59.5 | ||||||||||||||
Wholesale receivables: | |||||||||||||||||
Agriculture and turf equipment | 9.7 | 0.4 | 5,956.60 | 5,966.70 | |||||||||||||
Construction and forestry equipment | 5.6 | 919.1 | 924.7 | ||||||||||||||
Financing leases: | |||||||||||||||||
Agriculture and turf equipment | 8.9 | 9.1 | 354.4 | 372.4 | |||||||||||||
Construction and forestry equipment | 2.5 | 1 | 141.5 | 145 | |||||||||||||
Operating loans: | |||||||||||||||||
Agriculture and turf equipment | 0.1 | 0.1 | 40.6 | 40.8 | |||||||||||||
Total Receivables | $ | 221.4 | $ | 61.6 | $ | 24,778.70 | $ | 25,061.70 | |||||||||
Allowances for credit losses on Receivables are maintained in amounts considered to be appropriate in relation to the Receivables outstanding based on historical loss experience by product category, portfolio duration, delinquency trends, economic conditions and credit risk quality. | |||||||||||||||||
An analysis of the allowance for credit losses and investment in Receivables was as follows (in millions of dollars): | |||||||||||||||||
Retail | Revolving | Wholesale | Other | Total | |||||||||||||
Notes | Charge | Receivables | Receivables | ||||||||||||||
Accounts | |||||||||||||||||
January 31, 2014 | |||||||||||||||||
Allowance: | |||||||||||||||||
Beginning of period balance | $ | 50.7 | $ | 39.7 | $ | 6.4 | $ | 14.6 | $ | 111.4 | |||||||
Provision for credit losses | 1 | 1.1 | 0.2 | 2.3 | |||||||||||||
Write-offs | (2.3 | ) | (4.5 | ) | (.3 | ) | (7.1 | ) | |||||||||
Recoveries | 1.4 | 3.4 | 4.8 | ||||||||||||||
Other changes (primarily translation adjustments) | (.4 | ) | (.4 | ) | |||||||||||||
End of period balance | $ | 50.4 | $ | 39.7 | $ | 6.4 | $ | 14.5 | $ | 111 | |||||||
Balance individually evaluated * | $ | 0.1 | $ | 3.7 | $ | 3.8 | |||||||||||
Receivables: | |||||||||||||||||
End of period balance | $ | 18,322.30 | $ | 1,760.00 | $ | 7,638.30 | $ | 555.2 | $ | 28,275.80 | |||||||
Balance individually evaluated * | $ | 14 | $ | 0.2 | $ | 0.3 | $ | 25.5 | $ | 40 | |||||||
January 31, 2013 | |||||||||||||||||
Allowance: | |||||||||||||||||
Beginning of period balance | $ | 56.4 | $ | 40.2 | $ | 5.9 | $ | 11.5 | $ | 114 | |||||||
Provision (credit) for credit losses | 1 | (.2 | ) | 0.1 | (.2 | ) | 0.7 | ||||||||||
Write-offs | (2.9 | ) | (4.2 | ) | (.4 | ) | (7.5 | ) | |||||||||
Recoveries | 1.9 | 4 | 0.2 | 6.1 | |||||||||||||
Other changes (primarily translation adjustments) | 0.1 | (.1 | ) | 0.1 | 0.1 | ||||||||||||
End of period balance | $ | 56.5 | $ | 39.7 | $ | 6.1 | $ | 11.1 | $ | 113.4 | |||||||
Balance individually evaluated * | $ | 0.1 | $ | 0.1 | |||||||||||||
Receivables: | |||||||||||||||||
End of period balance | $ | 15,856.80 | $ | 1,755.30 | $ | 6,891.40 | $ | 558.2 | $ | 25,061.70 | |||||||
Balance individually evaluated * | $ | 11.1 | $ | 0.6 | $ | 0.2 | $ | 11.9 | |||||||||
* Remainder is collectively evaluated. | |||||||||||||||||
Receivables are considered impaired when it is probable the Company will be unable to collect all amounts due according to the contractual terms. Receivables reviewed for impairment generally include those that are either past due, or have provided bankruptcy notification, or require significant collection efforts. Receivables that are impaired are generally classified as non-performing. | |||||||||||||||||
An analysis of impaired Receivables was as follows (in millions of dollars): | |||||||||||||||||
Recorded | Unpaid | Specific | Average | ||||||||||||||
Investment | Principal | Allowance | Recorded | ||||||||||||||
Balance | Investment | ||||||||||||||||
January 31, 2014 * | |||||||||||||||||
Receivables with specific allowance: | |||||||||||||||||
Wholesale receivables | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.1 | |||||||||
Operating loans | 17.7 | 17.7 | 3.7 | 18 | |||||||||||||
Total with specific allowance | 17.8 | 17.8 | 3.8 | 18.1 | |||||||||||||
Receivables without specific allowance: | |||||||||||||||||
Retail notes | 6.5 | 6.3 | 6.9 | ||||||||||||||
Total without specific allowance | 6.5 | 6.3 | 6.9 | ||||||||||||||
Total | $ | 24.3 | $ | 24.1 | $ | 3.8 | $ | 25 | |||||||||
Agriculture and turf | $ | 22.4 | $ | 22.2 | $ | 3.8 | $ | 23 | |||||||||
Construction and forestry | 1.9 | 1.9 | 2 | ||||||||||||||
Total | $ | 24.3 | $ | 24.1 | $ | 3.8 | $ | 25 | |||||||||
October 31, 2013 * | |||||||||||||||||
Receivables with specific allowance: | |||||||||||||||||
Wholesale receivables | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.2 | |||||||||
Operating loans | 18 | 17.9 | 3.7 | 18.8 | |||||||||||||
Total with specific allowance | 18.1 | 18 | 3.8 | 19 | |||||||||||||
Receivables without specific allowance: | |||||||||||||||||
Retail notes | 7.2 | 7.1 | 8 | ||||||||||||||
Total without specific allowance | 7.2 | 7.1 | 8 | ||||||||||||||
Total | $ | 25.3 | $ | 25.1 | $ | 3.8 | $ | 27 | |||||||||
Agriculture and turf | $ | 23.2 | $ | 23 | $ | 3.8 | $ | 24.6 | |||||||||
Construction and forestry | 2.1 | 2.1 | 2.4 | ||||||||||||||
Total | $ | 25.3 | $ | 25.1 | $ | 3.8 | $ | 27 | |||||||||
January 31, 2013 * | |||||||||||||||||
Receivables with specific allowance: | |||||||||||||||||
Wholesale receivables | $ | 0.2 | $ | 0.2 | $ | 0.1 | $ | 0.2 | |||||||||
Total with specific allowance | 0.2 | 0.2 | 0.1 | 0.2 | |||||||||||||
Receivables without specific allowance: | |||||||||||||||||
Retail notes | 8.5 | 8.3 | 8.5 | ||||||||||||||
Total without specific allowance | 8.5 | 8.3 | 8.5 | ||||||||||||||
Total | $ | 8.7 | $ | 8.5 | $ | 0.1 | $ | 8.7 | |||||||||
Agriculture and turf | $ | 6.1 | $ | 5.9 | $ | 0.1 | $ | 6.1 | |||||||||
Construction and forestry | 2.6 | 2.6 | 2.6 | ||||||||||||||
Total | $ | 8.7 | $ | 8.5 | $ | 0.1 | $ | 8.7 | |||||||||
* Finance income recognized was not material. | |||||||||||||||||
A troubled debt restructuring is generally the modification of debt in which a creditor grants a concession it would not otherwise consider to a debtor that is experiencing financial difficulties. These modifications may include a reduction of the stated interest rate, an extension of the maturity dates, a reduction of the face amount or maturity amount of the debt, or a reduction of accrued interest. During the first quarter of 2014, the Company identified six Receivable contracts, primarily retail notes, as troubled debt restructurings with aggregate balances of $.2 million pre-modification and $.2 million post-modification balances. During the first quarter of 2013, there were 26 contracts, primarily retail notes, with $1.3 million pre-modification and $1.1 million post-modification balances. During these same periods, there were no significant troubled debt restructurings that subsequently defaulted and were written off. At January 31, 2014, the Company had no commitments to lend additional funds to borrowers whose accounts were modified in troubled debt restructurings. | |||||||||||||||||
Securitization_of_Receivables
Securitization of Receivables | 3 Months Ended | ||||||||||
Jan. 31, 2014 | |||||||||||
Securitization of Receivables | ' | ||||||||||
Securitization of Receivables | ' | ||||||||||
(5) Securitization of receivables: | |||||||||||
The Company, as a part of its overall funding strategy, periodically transfers certain Receivables (retail notes) into variable interest entities (VIEs) that are special purpose entities (SPEs), or a non-VIE banking operation, as part of its asset-backed securities programs (securitizations). The structure of these transactions is such that the transfer of the retail notes does not meet the criteria of sales of receivables, and is, therefore, accounted for as a secured borrowing. SPEs utilized in securitizations of retail notes differ from other entities included in the Company’s consolidated statements because the assets they hold are legally isolated. Use of the assets held by the SPEs or the non-VIE is restricted by terms of the documents governing the securitization transactions. | |||||||||||
In securitizations of retail notes related to secured borrowings, the retail notes are transferred to certain SPEs or to a non-VIE banking operation, which in turn issue debt to investors. The resulting secured borrowings are recorded as “Securitization borrowings” on the balance sheet. The securitized retail notes are recorded as “Retail notes securitized” on the balance sheet. The total restricted assets on the balance sheet related to these securitizations include the retail notes securitized less an allowance for credit losses, and other assets primarily representing restricted cash. For those securitizations in which retail notes are transferred into SPEs, the SPEs supporting the secured borrowings are consolidated unless the Company does not have both the power to direct the activities that most significantly impact the SPEs’ economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the SPEs. No additional support to these SPEs beyond what was previously contractually required has been provided during the reporting periods. | |||||||||||
In certain securitizations, the Company consolidates the SPEs since it has both the power to direct the activities that most significantly impact the SPEs’ economic performance through its role as servicer of all the Receivables held by the SPEs, and the obligation through variable interests in the SPEs to absorb losses or receive benefits that could potentially be significant to the SPEs. The restricted assets (retail notes securitized, allowance for credit losses and other assets) of the consolidated SPEs totaled $2,223 million, $2,626 million and $1,970 million at January 31, 2014, October 31, 2013 and January 31, 2013, respectively. The liabilities (securitization borrowings and accounts payable and accrued expenses) of these SPEs totaled $2,159 million, $2,547 million and $1,915 million at January 31, 2014, October 31, 2013 and January 31, 2013, respectively. The credit holders of these SPEs do not have legal recourse to the Company’s general credit. | |||||||||||
In certain securitizations, the Company transfers retail notes to a non-VIE banking operation, which is not consolidated since the Company does not have a controlling interest in the entity. The Company’s carrying values and interests related to these securitizations with the unconsolidated non-VIE were restricted assets (retail notes securitized, allowance for credit losses and other assets) of $296 million, $353 million and $248 million at January 31, 2014, October 31, 2013 and January 31, 2013, respectively. The liabilities (securitization borrowings and accounts payable and accrued expenses) were $289 million, $338 million and $245 million at January 31, 2014, October 31, 2013 and January 31, 2013, respectively. | |||||||||||
In certain securitizations, the Company transfers retail notes into bank-sponsored, multi-seller, commercial paper conduits, which are SPEs that are not consolidated. The Company does not service a significant portion of the conduits’ receivables, and, therefore, does not have the power to direct the activities that most significantly impact the conduits’ economic performance. These conduits provide a funding source to the Company (as well as other transferors into the conduit) as they fund the retail notes through the issuance of commercial paper. The Company’s carrying values and variable interests related to these conduits were restricted assets (retail notes securitized, allowance for credit losses and other assets) of $1,069 million, $1,274 million and $898 million at January 31, 2014, October 31, 2013 and January 31, 2013, respectively. The liabilities (securitization borrowings and accounts payable and accrued expenses) related to these conduits were $1,044 million, $1,225 million and $885 million at January 31, 2014, October 31, 2013 and January 31, 2013, respectively. | |||||||||||
The Company’s carrying amount of the liabilities to the unconsolidated conduits, compared to the maximum exposure to loss related to these conduits, which would only be incurred in the event of a complete loss on the restricted assets was as follows (in millions of dollars): | |||||||||||
January 31 | |||||||||||
2014 | |||||||||||
Carrying value of liabilities | $ | 1,044 | |||||||||
Maximum exposure to loss | 1,069 | ||||||||||
The total assets of unconsolidated VIEs related to securitizations were approximately $43 billion at January 31, 2014. | |||||||||||
The components of consolidated restricted assets related to secured borrowings in securitization transactions were as follows (in millions of dollars): | |||||||||||
January 31 | October 31 | January 31 | |||||||||
2014 | 2013 | 2013 | |||||||||
Retail notes securitized | $ | 3,502.10 | $ | 4,167.20 | $ | 3,047.00 | |||||
Allowance for credit losses | (11.2 | ) | (14.1 | ) | (14.1 | ) | |||||
Other assets | 97.2 | 100.2 | 82.8 | ||||||||
Total restricted securitized assets | $ | 3,588.10 | $ | 4,253.30 | $ | 3,115.70 | |||||
The components of consolidated secured borrowings and other liabilities related to securitizations were as follows (in millions of dollars): | |||||||||||
January 31 | October 31 | January 31 | |||||||||
2014 | 2013 | 2013 | |||||||||
Securitization borrowings | $ | 3,490.80 | $ | 4,109.10 | $ | 3,043.90 | |||||
Accounts payable and accrued expenses | 0.8 | 1.3 | 0.8 | ||||||||
Total liabilities related to restricted securitized assets | $ | 3,491.60 | $ | 4,110.40 | $ | 3,044.70 | |||||
The secured borrowings related to these restricted retail notes are obligations that are payable as the retail notes are liquidated. Repayment of the secured borrowings depends primarily on cash flows generated by the restricted assets. Due to the Company’s short-term credit rating, cash collections from these restricted assets are not required to be placed into a restricted collection account until immediately prior to the time payment is required to the secured creditors. At January 31, 2014, the maximum remaining term of all restricted securitized retail notes was approximately six years. | |||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Jan. 31, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
(6) Commitments and contingencies: | |
At January 31, 2014, John Deere Financial Inc., the John Deere finance subsidiary in Canada, had $119 million of commercial paper, $788 million of medium-term notes outstanding, and a fair value liability of $6 million for derivatives, prior to considering applicable netting provisions, with a notional amount of $1,279 million that were guaranteed by John Deere Capital Corporation. The weighted average interest rate on the medium-term notes at January 31, 2014 was 4.0 percent with a maximum remaining maturity of approximately two years. | |
The Company has a variable interest in John Deere Canada Funding Inc. (JDCFI), a wholly-owned subsidiary of John Deere Financial Inc., which was created as a VIE to issue debt in public markets to fund the operations of affiliated companies in Canada. The Company has a variable interest in JDCFI because it provides guarantees for all debt issued by JDCFI, however it does not consolidate JDCFI because it does not have the power to direct the activities that most significantly impact JDCFI’s economic performance. The Company has no carrying value of assets or liabilities related to JDCFI. Its maximum exposure to loss is the amount of the debt issued by JDCFI and guaranteed by the Company, which was $1,306 million at January 31, 2014. The weighted average interest rate on the debt at January 31, 2014 was 2.3 percent with a maximum remaining maturity of approximately four years. No additional support beyond what was previously contractually required has been provided to JDCFI during the reporting periods. | |
The Company has commitments to extend credit to customers and John Deere dealers through lines of credit and other pre-approved credit arrangements. The Company applies the same credit policies and approval process for these commitments to extend credit as it does for its Receivables. Collateral is not required for these commitments, but if credit is extended, collateral may be required upon funding. The amount of unused commitments to extend credit to John Deere dealers was $7.4 billion at January 31, 2014. The amount of unused commitments to extend credit to customers was $29.6 billion at January 31, 2014. A significant portion of these commitments is not expected to be fully drawn upon; therefore, the total commitment amounts likely do not represent a future cash requirement. The Company generally has the right to unconditionally cancel, alter or amend the terms of these commitments at any time. Over 95 percent of these unused commitments to extend credit to customers relate to revolving charge accounts. | |
At January 31, 2014, the Company had restricted other assets of approximately $44 million. See Note 5 for additional restricted assets associated with borrowings related to securitizations. | |
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 state and federal laws and regulations concerning retail credit. The Company believes the reasonably possible range of losses for these unresolved legal actions in addition to amounts accrued would not have a material effect on its consolidated financial statements. | |
Income_Taxes
Income Taxes | 3 Months Ended |
Jan. 31, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
(7) The Company’s unrecognized tax benefits at January 31, 2014 were $25.9 million, compared to $33.6 million at October 31, 2013. The liability at January 31, 2014 consisted of approximately $14.3 million, which would affect the effective tax rate if it was recognized. The remaining liability was related to tax positions for which there are offsetting tax receivables, or the uncertainty was only related to timing. The changes to the unrecognized tax benefits for the first three months of 2014 were not significant. The Company expects that any reasonably possible change in the amounts of unrecognized tax benefits in the next 12 months would not be significant. | |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||
Jan. 31, 2014 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
(8) The fair values of financial instruments that do not approximate the carrying values were as follows (in millions of dollars): | ||||||||||||||
January 31, 2014 | October 31, 2013 | January 31, 2013 | ||||||||||||
Carrying | Fair | Carrying | Fair | Carrying | Fair | |||||||||
Value | Value * | Value | Value * | Value | Value * | |||||||||
Receivables financed – net | $ 24,674 | $ 24,557 | $ 24,569 | $ 24,459 | $ 21,915 | $ 21,900 | ||||||||
Retail notes securitized – net | 3,491 | 3,463 | 4,153 | 4,124 | 3,033 | 3,032 | ||||||||
Securitization borrowings | 3,491 | 3,492 | 4,109 | 4,113 | 3,044 | 3,050 | ||||||||
Current maturities of long-term borrowings | 3,903 | 3,912 | 3,602 | 3,623 | 3,616 | 3,690 | ||||||||
Long-term borrowings | 14,685 | 14,852 | 14,195 | 14,331 | 14,370 | 14,518 | ||||||||
* Fair value measurements above were Level 3 for all Receivables and Level 2 for all borrowings. | ||||||||||||||
Fair values of Receivables that were issued long-term were based on the discounted values of their related cash flows at interest rates currently being offered by the Company for similar Receivables. The fair values of the remaining Receivables approximated the carrying amounts. | ||||||||||||||
Fair values of long-term borrowings and short-term securitization borrowings were based on current market quotes for identical or similar borrowings and credit risk, or on the discounted values of their related cash flows at current market interest rates. Certain long-term borrowings have been swapped to current variable interest rates. The carrying values of these long-term borrowings included adjustments related to fair value hedges. | ||||||||||||||
Assets and liabilities measured at fair value as Level 2 measurements on a recurring basis were as follows (in millions of dollars): | ||||||||||||||
January 31 | October 31 | January 31 | ||||||||||||
2014 | 2013 | 2013 | ||||||||||||
Receivables from John Deere | ||||||||||||||
Derivatives: | ||||||||||||||
Interest rate contracts | $ | 165.1 | $ | 175.5 | $ | 322.2 | ||||||||
Cross-currency interest rate contracts | 4.2 | 1.1 | 5.2 | |||||||||||
Other assets | ||||||||||||||
Derivatives: | ||||||||||||||
Interest rate contracts | 147.3 | 156.8 | 206.4 | |||||||||||
Foreign exchange contracts | 13 | 1 | 6.2 | |||||||||||
Cross-currency interest rate contracts | 0.1 | 0.1 | ||||||||||||
Total assets * | $ | 329.7 | $ | 334.5 | $ | 540 | ||||||||
Other payables to John Deere | ||||||||||||||
Derivatives: | ||||||||||||||
Interest rate contracts | $ | 108.5 | $ | 84.8 | $ | 29.6 | ||||||||
Cross-currency interest rate contracts | 1.1 | 2.2 | ||||||||||||
Accounts payable and accrued expenses | ||||||||||||||
Derivatives: | ||||||||||||||
Interest rate contracts | 29.3 | 29.9 | 40.9 | |||||||||||
Foreign exchange contracts | 6.2 | 15.8 | 11.2 | |||||||||||
Cross-currency interest rate contracts | 16 | 30.3 | ||||||||||||
Total liabilities | $ | 144 | $ | 147.6 | $ | 114.2 | ||||||||
* Excluded from this table are the Company’s cash equivalents, which were carried at cost that approximates fair value. The cash equivalents consist primarily of money market funds that were Level 1 measurements. | ||||||||||||||
Fair value, nonrecurring, Level 3 measurements from impairments were as follows (in millions of dollars): | ||||||||||||||
Fair Value * | ||||||||||||||
January 31 | October 31 | January 31 | ||||||||||||
2014 | 2013 | 2013 | ||||||||||||
Receivables: | ||||||||||||||
Wholesale receivables | $ | 0.1 | ||||||||||||
Operating loans | $ | 14 | $ | 14.3 | ||||||||||
Total Receivables | $ | 14 | $ | 14.3 | $ | 0.1 | ||||||||
* There were no losses recorded for the three months ended January 31, 2014 or 2013. | ||||||||||||||
Level 1 measurements consist of quoted prices in active markets for identical assets or liabilities. Level 2 measurements include significant other observable inputs such as quoted prices for similar assets or liabilities in active markets; identical assets or liabilities in inactive markets; observable inputs such as interest rates and yield curves; and other market-corroborated inputs. Level 3 measurements include significant unobservable inputs. | ||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various methods including market and income approaches. The Company utilizes valuation models and techniques that maximize the use of observable inputs. The models are industry-standard models that consider various assumptions including time values and yield curves as well as other economic measures. These valuation techniques are consistently applied. | ||||||||||||||
The following is a description of the valuation methodologies the Company uses to measure certain financial instruments on the balance sheet at fair value: | ||||||||||||||
Derivatives – The Company’s derivative financial instruments consist of interest rate swaps and caps, foreign currency forwards and swaps and cross-currency interest rate swaps. The portfolio is valued based on an income approach (discounted cash flow) using market observable inputs, including swap curves and both forward and spot exchange rates for currencies. | ||||||||||||||
Receivables – Specific reserve impairments are based on the fair value of the collateral, which is measured using a market approach (appraisal values or realizable values). Inputs include a selection of realizable values. | ||||||||||||||
Derivative_Instruments
Derivative Instruments | 3 Months Ended | |||||||||||||
Jan. 31, 2014 | ||||||||||||||
Derivative Instruments | ' | |||||||||||||
Derivative Instruments | ' | |||||||||||||
(9) It is the Company’s policy that derivative transactions are executed only to manage exposures arising in the normal course of business and not for the purpose of creating speculative positions or trading. The Company manages the relationship of the types and amounts of its funding sources to its receivable and lease portfolio in an effort to diminish risk due to interest rate and foreign currency fluctuations, while responding to favorable financing opportunities. The Company also has foreign currency exposures at some of its foreign and domestic operations related to financing in currencies other than the functional currencies. | ||||||||||||||
All derivatives are recorded at fair value on the balance sheet. Each derivative is designated as a cash flow hedge, a fair value hedge, or remains undesignated. All designated hedges are formally documented as to the relationship with the hedged item as well as the risk-management strategy. Both at inception and on an ongoing basis the hedging instrument is assessed as to its effectiveness. If and when a derivative is determined not to be highly effective as a hedge, or the underlying hedged transaction is no longer likely to occur, or the hedge designation is removed, or the derivative is terminated, hedge accounting is discontinued. Any past or future changes in the derivative’s fair value, which will not be effective as an offset to the income effects of the item being hedged, are recognized currently in the income statement. | ||||||||||||||
Cash flow hedges | ||||||||||||||
Certain interest rate and cross-currency interest rate contracts (swaps) were designated as hedges of future cash flows from borrowings. The total notional amounts of the receive-variable/pay-fixed interest rate contracts at January 31, 2014, October 31, 2013 and January 31, 2013 were $3,600 million, $3,100 million and $3,100 million, respectively. The notional amounts of cross-currency interest rate contracts at January 31, 2014, October 31, 2013 and January 31, 2013 were none, $746 million and $853 million, respectively. The effective portions of the fair value gains or losses on these cash flow hedges were recorded in other comprehensive income (OCI) and subsequently reclassified into interest expense or administrative and operating expenses (foreign exchange) in the same periods during which the hedged transactions affected earnings. These amounts offset the effects of interest rate or foreign currency exchange rate changes on the related borrowings. Any ineffective portions of the gains or losses on all cash flow interest rate contracts designated as hedges were recognized currently in interest expense or administrative and operating expenses (foreign exchange) and were not material during any periods presented. The cash flows from these contracts were recorded in operating activities in the statement of consolidated cash flows. | ||||||||||||||
The amount of loss recorded in OCI at January 31, 2014 that is expected to be reclassified to interest expense or administrative and operating expenses in the next twelve months if interest rates or exchange rates remain unchanged is approximately $2 million after-tax. These contracts mature in up to 22 months. There were no gains or losses reclassified from OCI to earnings based on the probability that the original forecasted transaction would not occur. | ||||||||||||||
Fair value hedges | ||||||||||||||
Certain interest rate contracts (swaps) were designated as fair value hedges of borrowings. The total notional amounts of these receive-fixed/pay-variable interest rate contracts at January 31, 2014, October 31, 2013 and January 31, 2013 were $7,611 million, $6,864 million and $8,451 million, respectively. The effective portions of the fair value gains or losses on these contracts were offset by fair value gains or losses on the hedged items (fixed-rate borrowings). Any ineffective portions of the gains or losses were recognized currently in interest expense. During the first three months of 2014 and 2013, the ineffective portions were a loss of $2 million and a gain of $2 million, respectively. The cash flows from these contracts were recorded in operating activities in the statement of consolidated cash flows. | ||||||||||||||
The gains (losses) on these contracts and the underlying borrowings recorded in interest expense were as follows (in millions of dollars): | ||||||||||||||
Three Months Ended | ||||||||||||||
January 31 | ||||||||||||||
2014 | 2013 | |||||||||||||
Interest rate contracts * | $ | -70.6 | $ | -70.9 | ||||||||||
Borrowings ** | 68.7 | 73.1 | ||||||||||||
* Includes changes in fair value of interest rate contracts excluding net accrued interest income of $34.7 million and $36.2 million during the first three months of 2014 and 2013, respectively. | ||||||||||||||
** Includes adjustments for fair values of hedged borrowings excluding accrued interest expense of $54.5 million and $61.3 million during the first three months of 2014 and 2013, respectively. | ||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||
The Company has certain interest rate contracts (swaps and caps), foreign exchange contracts (forwards and swaps) and cross-currency interest rate contracts (swaps), which were not formally designated as hedges. These derivatives were held as economic hedges for underlying interest rate or foreign currency exposures primarily for certain borrowings. The total notional amounts of these interest rate swaps at January 31, 2014, October 31, 2013 and January 31, 2013 were $3,118 million, $2,950 million and $2,265 million, the foreign exchange contracts were $1,555 million, $1,339 million and $1,615 million and the cross-currency interest rate contracts were $86 million, $85 million and $82 million, respectively. At January 31, 2014, October 31, 2013 and January 31, 2013 there were also $1,458 million, $1,641 million and $1,263 million, respectively, of interest rate caps purchased and the same amounts sold at the same capped interest rate to facilitate borrowings through securitization of retail notes. The fair value gains or losses from the interest rate contracts were recognized currently in interest expense and the gains or losses from foreign exchange contracts in administrative and operating expenses, generally offsetting over time the expenses on the exposures being hedged. The cash flows from these non-designated contracts were recorded in operating activities in the statement of consolidated cash flows. | ||||||||||||||
Fair values of derivative instruments in the consolidated balance sheet were as follows (in millions of dollars): | ||||||||||||||
January 31 | October 31 | January 31 | ||||||||||||
2014 | 2013 | 2013 | ||||||||||||
Receivables from John Deere | ||||||||||||||
Designated as hedging instruments: | ||||||||||||||
Interest rate contracts | $ | 130.4 | $ | 144.3 | $ | 280.5 | ||||||||
Cross-currency interest rate contracts | 4.8 | |||||||||||||
Total designated | 130.4 | 144.3 | 285.3 | |||||||||||
Not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 34.7 | 31.2 | 41.7 | |||||||||||
Cross-currency interest rate contracts | 4.2 | 1.1 | 0.4 | |||||||||||
Total not designated | 38.9 | 32.3 | 42.1 | |||||||||||
Other Assets | ||||||||||||||
Designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 140.1 | 140.5 | 185.5 | |||||||||||
Not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 7.2 | 16.3 | 20.9 | |||||||||||
Foreign exchange contracts | 13 | 1 | 6.2 | |||||||||||
Cross-currency interest rate contracts | 0.1 | 0.1 | ||||||||||||
Total not designated | 20.3 | 17.4 | 27.1 | |||||||||||
Total derivatives | $ | 329.7 | $ | 334.5 | $ | 540 | ||||||||
Other Payables to John Deere | ||||||||||||||
Designated as hedging instruments: | ||||||||||||||
Interest rate contracts | $ | 94.6 | $ | 71 | $ | 18 | ||||||||
Cross-currency interest rate contracts | 0.4 | 0.6 | ||||||||||||
Total designated | 94.6 | 71.4 | 18.6 | |||||||||||
Not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 13.9 | 13.8 | 11.6 | |||||||||||
Cross-currency interest rate contracts | 0.7 | 1.6 | ||||||||||||
Total not designated | 13.9 | 14.5 | 13.2 | |||||||||||
Accounts Payable and Accrued Expenses | ||||||||||||||
Designated as hedging instruments: | ||||||||||||||
Cross-currency interest rate contracts | 16 | 30.2 | ||||||||||||
Not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 29.3 | 29.9 | 40.9 | |||||||||||
Foreign exchange contracts | 6.2 | 15.8 | 11.2 | |||||||||||
Cross-currency interest rate contracts | 0.1 | |||||||||||||
Total not designated | 35.5 | 45.7 | 52.2 | |||||||||||
Total derivatives | $ | 144 | $ | 147.6 | $ | 114.2 | ||||||||
The classification and gains (losses), including accrued interest expense related to derivative instruments on the statement of consolidated income consisted of the following (in millions of dollars): | ||||||||||||||
Three Months Ended | ||||||||||||||
Expense or OCI | January 31 | |||||||||||||
Classification | 2014 | 2013 | ||||||||||||
Fair Value Hedges: | ||||||||||||||
Interest rate contracts | Interest expense | $ | -35.9 | $ | -34.7 | |||||||||
Cash Flow Hedges: | ||||||||||||||
Recognized in OCI | ||||||||||||||
(Effective Portion): | ||||||||||||||
Interest rate contracts | OCI (pretax) * | -1.8 | -2.8 | |||||||||||
Foreign exchange contracts | OCI (pretax) * | -4.1 | 21.4 | |||||||||||
Reclassified from OCI | ||||||||||||||
(Effective Portion): | ||||||||||||||
Interest rate contracts | Interest expense * | -3.6 | -4.4 | |||||||||||
Foreign exchange contracts | Administrative and operating expenses * | -5.5 | 19.1 | |||||||||||
Recognized Directly in Income | ||||||||||||||
(Ineffective Portion) | ** | ** | ||||||||||||
Not Designated as Hedges: | ||||||||||||||
Interest rate contracts | Interest expense * | $ | 2.7 | $ | 0.6 | |||||||||
Foreign exchange contracts | Administrative and operating expenses * | 53.5 | -24.7 | |||||||||||
Total not designated | $ | 56.2 | $ | -24.1 | ||||||||||
* Includes interest and foreign exchange gains (losses) from cross-currency interest rate contracts. | ||||||||||||||
** The amount is not significant. | ||||||||||||||
Included in the above table are interest expense and administrative and operating expense amounts the Company incurred on derivatives transacted with John Deere. The amount of loss the Company recognized on these affiliate party transactions for the three months ended January 31, 2014 and 2013 was $31 million and $41 million, respectively. | ||||||||||||||
Counterparty Risk and Collateral | ||||||||||||||
The Company’s outstanding derivatives have been transacted with both unrelated external counterparties and with John Deere. For derivatives transacted with John Deere, the Company utilizes a centralized hedging center structure in which John Deere enters into a derivative transaction with an unrelated external counterparty and simultaneously enters into a derivative transaction with the Company. Except for collateral provisions, the terms of the transaction between the Company and John Deere are identical to the terms of the transaction between John Deere and its unrelated external counterparty. | ||||||||||||||
Certain of the Company’s derivative agreements executed directly with the unrelated external counterparties contain credit support provisions that may require the Company to post collateral based on reductions in credit ratings. At January 31, 2014, October 31, 2013 and January 31, 2013, there were no aggregate liability positions for derivatives with credit-risk-related contingent features. The Company, due to its credit rating and amounts of net liability positions, has not posted any collateral. If the credit-risk-related contingent features were triggered, the Company would be required to post full collateral for any liability position, prior to considering applicable netting provisions. | ||||||||||||||
Derivative instruments are subject to significant concentrations of credit risk to the banking sector. The Company manages individual unrelated external counterparty exposure by setting limits that consider the credit rating of the unrelated external counterparty and the size of other financial commitments and exposures between the Company and the unrelated external counterparty banks. All interest rate derivatives are transacted under International Swaps and Derivatives Association (ISDA) documentation. Some of these agreements executed with unrelated external counterparties include credit support provisions. Each master agreement executed with an unrelated external counterparty permits the net settlement of amounts owed in the event of default or termination. The maximum amount of loss that the Company would incur on derivatives transacted directly with unrelated external counterparties, if counterparties to derivative instruments fail to meet their obligations, not considering collateral received or netting arrangements, was the gross asset amount of the external derivatives shown in the subsequent table. None of the concentrations of risk with any individual unrelated external counterparty was considered significant in any periods presented. | ||||||||||||||
The Company also has ISDA agreements with John Deere that permit the net settlement of amounts owed between counterparties in the event of early termination. In addition, the Company has a loss sharing agreement with John Deere in which it has agreed to absorb any losses and expenses John Deere incurs if an unrelated external counterparty fails to meet its obligations on a derivative transaction that John Deere entered into to manage exposures of the Company. The maximum amount of loss that the Company would incur on derivatives transacted with John Deere if the unrelated external counterparty would fail to meet its obligations, not considering collateral received or netting arrangements, was the gross asset amount of the John Deere derivatives shown in the subsequent table. The loss sharing agreement increases the maximum amount of loss that the Company would incur, after considering collateral received and netting arrangements, by $36 million and $17 million as of January 31, 2014 and October 31, 2013 and decreases it by $2 million as of January 31, 2013. | ||||||||||||||
Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities for external derivatives and those with John Deere related to netting arrangements and any collateral received or paid were as follows (in millions of dollars): | ||||||||||||||
January 31, 2014 | ||||||||||||||
Derivatives: | Gross Amounts | Netting | Collateral | Net Amount | ||||||||||
Recognized | Arrangements | Received | ||||||||||||
Assets | ||||||||||||||
External | $ | 160.4 | $ | (29.5 | ) | $ | (2.4 | ) | $ | 128.5 | ||||
John Deere | 169.3 | (105.9 | ) | 63.4 | ||||||||||
Liabilities | ||||||||||||||
External | 35.5 | (29.5 | ) | 6 | ||||||||||
John Deere | 108.5 | (105.9 | ) | 2.6 | ||||||||||
October 31, 2013 | ||||||||||||||
Derivatives: | Gross Amounts | Netting | Collateral | Net Amount | ||||||||||
Recognized | Arrangements | Received | ||||||||||||
Assets | ||||||||||||||
External | $ | 157.9 | $ | (42.6 | ) | $ | (2.4 | ) | $ | 112.9 | ||||
John Deere | 176.6 | (82.9 | ) | 93.7 | ||||||||||
Liabilities | ||||||||||||||
External | 61.7 | (42.6 | ) | 19.1 | ||||||||||
John Deere | 85.9 | (82.9 | ) | 3 | ||||||||||
January 31, 2013 | ||||||||||||||
Derivatives: | Gross Amounts | Netting | Collateral | Net Amount | ||||||||||
Recognized | Arrangements | Received | ||||||||||||
Assets | ||||||||||||||
External | $ | 212.6 | $ | (58.3 | ) | $ | (21.5 | ) | $ | 132.8 | ||||
John Deere | 327.4 | (27.3 | ) | 300.1 | ||||||||||
Liabilities | ||||||||||||||
External | 82.4 | (58.3 | ) | 24.1 | ||||||||||
John Deere | 31.8 | (27.3 | ) | 4.5 | ||||||||||
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefits | 3 Months Ended |
Jan. 31, 2014 | |
Pension and Other Postretirement Benefits | ' |
Pension and Other Postretirement Benefits | ' |
(10) The Company is a participating employer in certain Deere & Company sponsored defined benefit pension plans for employees in the U.S. and certain defined benefit pension plans outside the U.S. These pension plans provide for benefits that are based primarily on years of service and employee compensation. Pension expense is actuarially determined based on the Company’s employees included in the plan. The Company’s pension expense amounted to $1.5 million and $2.0 million for the first three months of 2014 and 2013, respectively. The accumulated benefit obligation and plan net assets for the employees of the Company are not determined separately from Deere & Company. The Company generally provides defined benefit health care and life insurance plans for retired employees in the U.S. as a participating employer in Deere & Company’s sponsored plans. Health care and life insurance benefits expense is actuarially determined based on the Company’s employees included in the plans and amounted to $2.2 million and $2.7 million for the first three months of 2014 and 2013, respectively. Further disclosure for these plans is included in Deere & Company’s Form 10-Q for the quarter ended January 31, 2014. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jan. 31, 2014 | |
Summary of Significant Accounting Policies | ' |
Use of Estimates in Financial Statements | ' |
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Actual results could differ from those estimates. | |
Receivables - Non-Performing, Policy | ' |
Past due balances of Receivables still accruing finance income represent the total balance held (principal plus accrued interest) with any payment amounts 30 days or more past the contractual payment due date. | |
The Company monitors the credit quality of Receivables as either performing or non-performing monthly. Non-performing Receivables represent loans for which the Company has ceased accruing finance income. Generally, when retail notes are approximately 120 days delinquent, accrual of finance income is suspended, the collateral is repossessed or the account is designated for litigation and the estimated uncollectible amount, after charging the dealer’s withholding account, if any, is written off to the allowance for credit losses. Revolving charge accounts are generally deemed to be uncollectible and written off to the allowance for credit losses when delinquency reaches 120 days. Generally, when a wholesale receivable becomes 60 days delinquent, the Company determines whether the accrual of finance income on interest-bearing wholesale receivables should be suspended, the collateral should be repossessed or the account should be designated for litigation and the estimated uncollectible amount written off to the allowance for credit losses. Generally, when a financing lease account becomes 120 days delinquent, the accrual of lease revenue is suspended, the equipment is repossessed or the account is designated for litigation, and the estimated uncollectible amount, after charging the dealer’s withholding account, if any, is written off to the allowance for credit losses. Finance income for non-performing Receivables is recognized on a cash basis. Accrual of finance income is resumed when the receivable becomes contractually current and collections are reasonably assured. | |
Receivables are considered impaired when it is probable the Company will be unable to collect all amounts due according to the contractual terms. Receivables reviewed for impairment generally include those that are either past due, or have provided bankruptcy notification, or require significant collection efforts. Receivables that are impaired are generally classified as non-performing. | |
Receivables - Allowance for Credit Losses, Policy | ' |
Allowances for credit losses on Receivables are maintained in amounts considered to be appropriate in relation to the Receivables outstanding based on historical loss experience by product category, portfolio duration, delinquency trends, economic conditions and credit risk quality. | |
Troubled Debt Restructuring, Policy | ' |
A troubled debt restructuring is generally the modification of debt in which a creditor grants a concession it would not otherwise consider to a debtor that is experiencing financial difficulties. These modifications may include a reduction of the stated interest rate, an extension of the maturity dates, a reduction of the face amount or maturity amount of the debt, or a reduction of accrued interest. | |
Fair Value of Financial Instruments, Policy | ' |
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various methods including market and income approaches. The Company utilizes valuation models and techniques that maximize the use of observable inputs. The models are industry-standard models that consider various assumptions including time values and yield curves as well as other economic measures. These valuation techniques are consistently applied. | |
Derivative Financial Instruments | ' |
It is the Company’s policy that derivative transactions are executed only to manage exposures arising in the normal course of business and not for the purpose of creating speculative positions or trading. The Company manages the relationship of the types and amounts of its funding sources to its receivable and lease portfolio in an effort to diminish risk due to interest rate and foreign currency fluctuations, while responding to favorable financing opportunities. The Company also has foreign currency exposures at some of its foreign and domestic operations related to financing in currencies other than the functional currencies. | |
All derivatives are recorded at fair value on the balance sheet. Each derivative is designated as a cash flow hedge, a fair value hedge, or remains undesignated. All designated hedges are formally documented as to the relationship with the hedged item as well as the risk-management strategy. Both at inception and on an ongoing basis the hedging instrument is assessed as to its effectiveness. If and when a derivative is determined not to be highly effective as a hedge, or the underlying hedged transaction is no longer likely to occur, or the hedge designation is removed, or the derivative is terminated, hedge accounting is discontinued. Any past or future changes in the derivative’s fair value, which will not be effective as an offset to the income effects of the item being hedged, are recognized currently in the income statement. |
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||||
Jan. 31, 2014 | |||||||||||
Other Comprehensive Income Items | ' | ||||||||||
After-tax changes in accumulated other comprehensive income (loss) | ' | ||||||||||
The after-tax changes in accumulated other comprehensive income (loss) were as follows (in millions of dollars): | |||||||||||
Cumulative | Unrealized | Total | |||||||||
Translation | Gain (Loss) | Accumulated | |||||||||
Adjustment | on | Other | |||||||||
Derivatives | Comprehensive | ||||||||||
Income | |||||||||||
Balance October 31, 2013 | $ | 39.5 | $ | -3.9 | $ | 35.6 | |||||
Other comprehensive income (loss) items before reclassification | -9.1 | -3.8 | -12.9 | ||||||||
Amounts reclassified from accumulated other comprehensive income | 5.9 | 5.9 | |||||||||
Net current period other comprehensive income (loss) | -9.1 | 2.1 | -7 | ||||||||
Balance January 31, 2014 | $ | 30.4 | $ | -1.8 | $ | 28.6 | |||||
Reclassifications of gains (losses) out of accumulated other comprehensive income | ' | ||||||||||
The details about reclassifications of gains (losses) out of accumulated other comprehensive income were as follows (in millions of dollars): | |||||||||||
Three Months Ended | |||||||||||
January 31, 2014 | |||||||||||
Loss on derivatives | |||||||||||
Interest rate contracts – Interest expense | $ | -3.6 | |||||||||
Foreign exchange contracts – Administrative and operating expenses | -5.5 | ||||||||||
Total | -9.1 | ||||||||||
Tax credit | 3.2 | ||||||||||
Total after-tax reclassifications for the period | $ | -5.9 | |||||||||
Items included in other comprehensive income (loss) and the related tax effects | ' | ||||||||||
The items included in other comprehensive income (loss) and the related tax effects were as follows (in millions of dollars): | |||||||||||
Three Months Ended January 31, 2014 | Before Tax | Tax Expense | After Tax | ||||||||
Amount | Amount | ||||||||||
Cumulative translation adjustment | $ | -9.1 | $ | -9.1 | |||||||
Net unrealized gain on derivatives | 3.2 | $ | -1.1 | 2.1 | |||||||
Total other comprehensive loss | $ | -5.9 | $ | -1.1 | $ | -7 | |||||
Three Months Ended January 31, 2013 | Before Tax | Tax Expense | After Tax | ||||||||
Amount | Amount | ||||||||||
Cumulative translation adjustment | $ | 5.9 | $ | 5.9 | |||||||
Net unrealized gain on derivatives | 3.9 | $ | -1.4 | 2.5 | |||||||
Total other comprehensive income | $ | 9.8 | $ | -1.4 | $ | 8.4 | |||||
Receivables_Tables
Receivables (Tables) | 3 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Receivables | ' | ||||||||||||||||
Aging of past due Receivables that are still accruing interest and non-performing Receivables | ' | ||||||||||||||||
An aging of past due Receivables that are still accruing interest and non-performing Receivables was as follows (in millions of dollars): | |||||||||||||||||
January 31, 2014 | |||||||||||||||||
30-59 Days | 60-89 Days | 90 Days or | Total | ||||||||||||||
Past Due | Past Due | Greater | Past Due | ||||||||||||||
Past Due | |||||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | $ | 93.3 | $ | 33.3 | $ | 21.8 | $ | 148.4 | |||||||||
Construction and forestry equipment | 50.2 | 19.4 | 9.9 | 79.5 | |||||||||||||
Revolving charge accounts: | |||||||||||||||||
Agriculture and turf equipment | 19.9 | 5 | 1.7 | 26.6 | |||||||||||||
Construction and forestry equipment | 4 | 1.3 | 0.5 | 5.8 | |||||||||||||
Wholesale receivables: | |||||||||||||||||
Agriculture and turf equipment | 11.1 | 5.2 | 6.3 | 22.6 | |||||||||||||
Construction and forestry equipment | 0.2 | 0.2 | 0.2 | 0.6 | |||||||||||||
Financing leases: | |||||||||||||||||
Agriculture and turf equipment | 4.4 | 3.9 | 1.4 | 9.7 | |||||||||||||
Construction and forestry equipment | 2.9 | 0.4 | 0.4 | 3.7 | |||||||||||||
Operating loans: | |||||||||||||||||
Agriculture and turf equipment | |||||||||||||||||
Total Receivables | $ | 186 | $ | 68.7 | $ | 42.2 | $ | 296.9 | |||||||||
Total | Total Non- | Current | Total | ||||||||||||||
Past Due | Performing | Receivables | |||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | $ | 148.4 | $ | 42 | $ | 16,251.10 | $ | 16,441.50 | |||||||||
Construction and forestry equipment | 79.5 | 14.1 | 1,787.20 | 1,880.80 | |||||||||||||
Revolving charge accounts: | |||||||||||||||||
Agriculture and turf equipment | 26.6 | 1 | 1,665.00 | 1,692.60 | |||||||||||||
Construction and forestry equipment | 5.8 | 0.1 | 61.5 | 67.4 | |||||||||||||
Wholesale receivables: | |||||||||||||||||
Agriculture and turf equipment | 22.6 | 0.5 | 6,795.40 | 6,818.50 | |||||||||||||
Construction and forestry equipment | 0.6 | 819.2 | 819.8 | ||||||||||||||
Financing leases: | |||||||||||||||||
Agriculture and turf equipment | 9.7 | 11.4 | 353.2 | 374.3 | |||||||||||||
Construction and forestry equipment | 3.7 | 0.9 | 151 | 155.6 | |||||||||||||
Operating loans: | |||||||||||||||||
Agriculture and turf equipment | 25.3 | 25.3 | |||||||||||||||
Total Receivables | $ | 296.9 | $ | 70 | $ | 27,908.90 | $ | 28,275.80 | |||||||||
October 31, 2013 | |||||||||||||||||
30-59 Days | 60-89 Days | 90 Days or | Total | ||||||||||||||
Past Due | Past Due | Greater | Past Due | ||||||||||||||
Past Due | |||||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | $ | 67.8 | $ | 23.3 | $ | 17.1 | $ | 108.2 | |||||||||
Construction and forestry equipment | 38.4 | 14.4 | 8.6 | 61.4 | |||||||||||||
Revolving charge accounts: | |||||||||||||||||
Agriculture and turf equipment | 14.6 | 4.5 | 2.2 | 21.3 | |||||||||||||
Construction and forestry equipment | 2.3 | 1 | 0.5 | 3.8 | |||||||||||||
Wholesale receivables: | |||||||||||||||||
Agriculture and turf equipment | 10 | 4.9 | 3 | 17.9 | |||||||||||||
Construction and forestry equipment | 0.3 | 0.1 | 0.9 | 1.3 | |||||||||||||
Financing leases: | |||||||||||||||||
Agriculture and turf equipment | 10.2 | 4 | 2.3 | 16.5 | |||||||||||||
Construction and forestry equipment | 2.2 | 0.5 | 2.7 | ||||||||||||||
Operating loans: | |||||||||||||||||
Agriculture and turf equipment | 0.1 | 0.1 | |||||||||||||||
Total Receivables | $ | 145.9 | $ | 52.7 | $ | 34.6 | $ | 233.2 | |||||||||
Total | Total Non- | Current | Total | ||||||||||||||
Past Due | Performing | Receivables | |||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | $ | 108.2 | $ | 34.1 | $ | 16,359.30 | $ | 16,501.60 | |||||||||
Construction and forestry equipment | 61.4 | 11.4 | 1,672.10 | 1,744.90 | |||||||||||||
Revolving charge accounts: | |||||||||||||||||
Agriculture and turf equipment | 21.3 | 0.9 | 2,438.00 | 2,460.20 | |||||||||||||
Construction and forestry equipment | 3.8 | 70.9 | 74.7 | ||||||||||||||
Wholesale receivables: | |||||||||||||||||
Agriculture and turf equipment | 17.9 | 0.3 | 6,541.10 | 6,559.30 | |||||||||||||
Construction and forestry equipment | 1.3 | 904.1 | 905.4 | ||||||||||||||
Financing leases: | |||||||||||||||||
Agriculture and turf equipment | 16.5 | 11 | 379 | 406.5 | |||||||||||||
Construction and forestry equipment | 2.7 | 2 | 144.1 | 148.8 | |||||||||||||
Operating loans: | |||||||||||||||||
Agriculture and turf equipment | 0.1 | 0.3 | 31.5 | 31.9 | |||||||||||||
Total Receivables | $ | 233.2 | $ | 60 | $ | 28,540.10 | $ | 28,833.30 | |||||||||
January 31, 2013 | |||||||||||||||||
30-59 Days | 60-89 Days | 90 Days or | Total | ||||||||||||||
Past Due | Past Due | Greater | Past Due | ||||||||||||||
Past Due | |||||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | $ | 71.1 | $ | 20.4 | $ | 14.2 | $ | 105.7 | |||||||||
Construction and forestry equipment | 39.8 | 16.7 | 8.1 | 64.6 | |||||||||||||
Revolving charge accounts: | |||||||||||||||||
Agriculture and turf equipment | 14.8 | 4.4 | 1.6 | 20.8 | |||||||||||||
Construction and forestry equipment | 2.1 | 0.8 | 0.6 | 3.5 | |||||||||||||
Wholesale receivables: | |||||||||||||||||
Agriculture and turf equipment | 2.6 | 2 | 5.1 | 9.7 | |||||||||||||
Construction and forestry equipment | 5.5 | 0.1 | 5.6 | ||||||||||||||
Financing leases: | |||||||||||||||||
Agriculture and turf equipment | 6.3 | 2 | 0.6 | 8.9 | |||||||||||||
Construction and forestry equipment | 2 | 0.4 | 0.1 | 2.5 | |||||||||||||
Operating loans: | |||||||||||||||||
Agriculture and turf equipment | 0.1 | 0.1 | |||||||||||||||
Total Receivables | $ | 144.2 | $ | 46.8 | $ | 30.4 | $ | 221.4 | |||||||||
Total | Total Non- | Current | Total | ||||||||||||||
Past Due | Performing | Receivables | |||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | $ | 105.7 | $ | 37 | $ | 14,235.40 | $ | 14,378.10 | |||||||||
Construction and forestry equipment | 64.6 | 13.3 | 1,400.80 | 1,478.70 | |||||||||||||
Revolving charge accounts: | |||||||||||||||||
Agriculture and turf equipment | 20.8 | 0.7 | 1,674.30 | 1,695.80 | |||||||||||||
Construction and forestry equipment | 3.5 | 56 | 59.5 | ||||||||||||||
Wholesale receivables: | |||||||||||||||||
Agriculture and turf equipment | 9.7 | 0.4 | 5,956.60 | 5,966.70 | |||||||||||||
Construction and forestry equipment | 5.6 | 919.1 | 924.7 | ||||||||||||||
Financing leases: | |||||||||||||||||
Agriculture and turf equipment | 8.9 | 9.1 | 354.4 | 372.4 | |||||||||||||
Construction and forestry equipment | 2.5 | 1 | 141.5 | 145 | |||||||||||||
Operating loans: | |||||||||||||||||
Agriculture and turf equipment | 0.1 | 0.1 | 40.6 | 40.8 | |||||||||||||
Total Receivables | $ | 221.4 | $ | 61.6 | $ | 24,778.70 | $ | 25,061.70 | |||||||||
Analysis of the Allowance for Credit Losses and Investment in Receivables | ' | ||||||||||||||||
An analysis of the allowance for credit losses and investment in Receivables was as follows (in millions of dollars): | |||||||||||||||||
Retail | Revolving | Wholesale | Other | Total | |||||||||||||
Notes | Charge | Receivables | Receivables | ||||||||||||||
Accounts | |||||||||||||||||
January 31, 2014 | |||||||||||||||||
Allowance: | |||||||||||||||||
Beginning of period balance | $ | 50.7 | $ | 39.7 | $ | 6.4 | $ | 14.6 | $ | 111.4 | |||||||
Provision for credit losses | 1 | 1.1 | 0.2 | 2.3 | |||||||||||||
Write-offs | (2.3 | ) | (4.5 | ) | (.3 | ) | (7.1 | ) | |||||||||
Recoveries | 1.4 | 3.4 | 4.8 | ||||||||||||||
Other changes (primarily translation adjustments) | (.4 | ) | (.4 | ) | |||||||||||||
End of period balance | $ | 50.4 | $ | 39.7 | $ | 6.4 | $ | 14.5 | $ | 111 | |||||||
Balance individually evaluated * | $ | 0.1 | $ | 3.7 | $ | 3.8 | |||||||||||
Receivables: | |||||||||||||||||
End of period balance | $ | 18,322.30 | $ | 1,760.00 | $ | 7,638.30 | $ | 555.2 | $ | 28,275.80 | |||||||
Balance individually evaluated * | $ | 14 | $ | 0.2 | $ | 0.3 | $ | 25.5 | $ | 40 | |||||||
January 31, 2013 | |||||||||||||||||
Allowance: | |||||||||||||||||
Beginning of period balance | $ | 56.4 | $ | 40.2 | $ | 5.9 | $ | 11.5 | $ | 114 | |||||||
Provision (credit) for credit losses | 1 | (.2 | ) | 0.1 | (.2 | ) | 0.7 | ||||||||||
Write-offs | (2.9 | ) | (4.2 | ) | (.4 | ) | (7.5 | ) | |||||||||
Recoveries | 1.9 | 4 | 0.2 | 6.1 | |||||||||||||
Other changes (primarily translation adjustments) | 0.1 | (.1 | ) | 0.1 | 0.1 | ||||||||||||
End of period balance | $ | 56.5 | $ | 39.7 | $ | 6.1 | $ | 11.1 | $ | 113.4 | |||||||
Balance individually evaluated * | $ | 0.1 | $ | 0.1 | |||||||||||||
Receivables: | |||||||||||||||||
End of period balance | $ | 15,856.80 | $ | 1,755.30 | $ | 6,891.40 | $ | 558.2 | $ | 25,061.70 | |||||||
Balance individually evaluated * | $ | 11.1 | $ | 0.6 | $ | 0.2 | $ | 11.9 | |||||||||
* Remainder is collectively evaluated. | |||||||||||||||||
Analysis of Impaired Receivables | ' | ||||||||||||||||
An analysis of impaired Receivables was as follows (in millions of dollars): | |||||||||||||||||
Recorded | Unpaid | Specific | Average | ||||||||||||||
Investment | Principal | Allowance | Recorded | ||||||||||||||
Balance | Investment | ||||||||||||||||
January 31, 2014 * | |||||||||||||||||
Receivables with specific allowance: | |||||||||||||||||
Wholesale receivables | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.1 | |||||||||
Operating loans | 17.7 | 17.7 | 3.7 | 18 | |||||||||||||
Total with specific allowance | 17.8 | 17.8 | 3.8 | 18.1 | |||||||||||||
Receivables without specific allowance: | |||||||||||||||||
Retail notes | 6.5 | 6.3 | 6.9 | ||||||||||||||
Total without specific allowance | 6.5 | 6.3 | 6.9 | ||||||||||||||
Total | $ | 24.3 | $ | 24.1 | $ | 3.8 | $ | 25 | |||||||||
Agriculture and turf | $ | 22.4 | $ | 22.2 | $ | 3.8 | $ | 23 | |||||||||
Construction and forestry | 1.9 | 1.9 | 2 | ||||||||||||||
Total | $ | 24.3 | $ | 24.1 | $ | 3.8 | $ | 25 | |||||||||
October 31, 2013 * | |||||||||||||||||
Receivables with specific allowance: | |||||||||||||||||
Wholesale receivables | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.2 | |||||||||
Operating loans | 18 | 17.9 | 3.7 | 18.8 | |||||||||||||
Total with specific allowance | 18.1 | 18 | 3.8 | 19 | |||||||||||||
Receivables without specific allowance: | |||||||||||||||||
Retail notes | 7.2 | 7.1 | 8 | ||||||||||||||
Total without specific allowance | 7.2 | 7.1 | 8 | ||||||||||||||
Total | $ | 25.3 | $ | 25.1 | $ | 3.8 | $ | 27 | |||||||||
Agriculture and turf | $ | 23.2 | $ | 23 | $ | 3.8 | $ | 24.6 | |||||||||
Construction and forestry | 2.1 | 2.1 | 2.4 | ||||||||||||||
Total | $ | 25.3 | $ | 25.1 | $ | 3.8 | $ | 27 | |||||||||
January 31, 2013 * | |||||||||||||||||
Receivables with specific allowance: | |||||||||||||||||
Wholesale receivables | $ | 0.2 | $ | 0.2 | $ | 0.1 | $ | 0.2 | |||||||||
Total with specific allowance | 0.2 | 0.2 | 0.1 | 0.2 | |||||||||||||
Receivables without specific allowance: | |||||||||||||||||
Retail notes | 8.5 | 8.3 | 8.5 | ||||||||||||||
Total without specific allowance | 8.5 | 8.3 | 8.5 | ||||||||||||||
Total | $ | 8.7 | $ | 8.5 | $ | 0.1 | $ | 8.7 | |||||||||
Agriculture and turf | $ | 6.1 | $ | 5.9 | $ | 0.1 | $ | 6.1 | |||||||||
Construction and forestry | 2.6 | 2.6 | 2.6 | ||||||||||||||
Total | $ | 8.7 | $ | 8.5 | $ | 0.1 | $ | 8.7 | |||||||||
* Finance income recognized was not material. | |||||||||||||||||
Securitization_of_Receivables_
Securitization of Receivables (Tables) | 3 Months Ended | ||||||||||
Jan. 31, 2014 | |||||||||||
Securitization of Receivables | ' | ||||||||||
Unconsolidated Conduits, Carrying Amount of Liabilities Compared to Maximum Exposure to Loss | ' | ||||||||||
The Company’s carrying amount of the liabilities to the unconsolidated conduits, compared to the maximum exposure to loss related to these conduits, which would only be incurred in the event of a complete loss on the restricted assets was as follows (in millions of dollars): | |||||||||||
January 31 | |||||||||||
2014 | |||||||||||
Carrying value of liabilities | $ | 1,044 | |||||||||
Maximum exposure to loss | 1,069 | ||||||||||
Components of Consolidated Restricted Assets, Secured Borrowings and Other Liabilities Related to Securitization Transactions | ' | ||||||||||
The components of consolidated restricted assets related to secured borrowings in securitization transactions were as follows (in millions of dollars): | |||||||||||
January 31 | October 31 | January 31 | |||||||||
2014 | 2013 | 2013 | |||||||||
Retail notes securitized | $ | 3,502.10 | $ | 4,167.20 | $ | 3,047.00 | |||||
Allowance for credit losses | (11.2 | ) | (14.1 | ) | (14.1 | ) | |||||
Other assets | 97.2 | 100.2 | 82.8 | ||||||||
Total restricted securitized assets | $ | 3,588.10 | $ | 4,253.30 | $ | 3,115.70 | |||||
The components of consolidated secured borrowings and other liabilities related to securitizations were as follows (in millions of dollars): | |||||||||||
January 31 | October 31 | January 31 | |||||||||
2014 | 2013 | 2013 | |||||||||
Securitization borrowings | $ | 3,490.80 | $ | 4,109.10 | $ | 3,043.90 | |||||
Accounts payable and accrued expenses | 0.8 | 1.3 | 0.8 | ||||||||
Total liabilities related to restricted securitized assets | $ | 3,491.60 | $ | 4,110.40 | $ | 3,044.70 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||
Jan. 31, 2014 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
The fair values of financial instruments that do not approximate the carrying values were as follows (in millions of dollars): | ||||||||||||||
January 31, 2014 | October 31, 2013 | January 31, 2013 | ||||||||||||
Carrying | Fair | Carrying | Fair | Carrying | Fair | |||||||||
Value | Value * | Value | Value * | Value | Value * | |||||||||
Receivables financed – net | $ 24,674 | $ 24,557 | $ 24,569 | $ 24,459 | $ 21,915 | $ 21,900 | ||||||||
Retail notes securitized – net | 3,491 | 3,463 | 4,153 | 4,124 | 3,033 | 3,032 | ||||||||
Securitization borrowings | 3,491 | 3,492 | 4,109 | 4,113 | 3,044 | 3,050 | ||||||||
Current maturities of long-term borrowings | 3,903 | 3,912 | 3,602 | 3,623 | 3,616 | 3,690 | ||||||||
Long-term borrowings | 14,685 | 14,852 | 14,195 | 14,331 | 14,370 | 14,518 | ||||||||
* Fair value measurements above were Level 3 for all Receivables and Level 2 for all borrowings. | ||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | |||||||||||||
Assets and liabilities measured at fair value as Level 2 measurements on a recurring basis were as follows (in millions of dollars): | ||||||||||||||
January 31 | October 31 | January 31 | ||||||||||||
2014 | 2013 | 2013 | ||||||||||||
Receivables from John Deere | ||||||||||||||
Derivatives: | ||||||||||||||
Interest rate contracts | $ | 165.1 | $ | 175.5 | $ | 322.2 | ||||||||
Cross-currency interest rate contracts | 4.2 | 1.1 | 5.2 | |||||||||||
Other assets | ||||||||||||||
Derivatives: | ||||||||||||||
Interest rate contracts | 147.3 | 156.8 | 206.4 | |||||||||||
Foreign exchange contracts | 13 | 1 | 6.2 | |||||||||||
Cross-currency interest rate contracts | 0.1 | 0.1 | ||||||||||||
Total assets * | $ | 329.7 | $ | 334.5 | $ | 540 | ||||||||
Other payables to John Deere | ||||||||||||||
Derivatives: | ||||||||||||||
Interest rate contracts | $ | 108.5 | $ | 84.8 | $ | 29.6 | ||||||||
Cross-currency interest rate contracts | 1.1 | 2.2 | ||||||||||||
Accounts payable and accrued expenses | ||||||||||||||
Derivatives: | ||||||||||||||
Interest rate contracts | 29.3 | 29.9 | 40.9 | |||||||||||
Foreign exchange contracts | 6.2 | 15.8 | 11.2 | |||||||||||
Cross-currency interest rate contracts | 16 | 30.3 | ||||||||||||
Total liabilities | $ | 144 | $ | 147.6 | $ | 114.2 | ||||||||
* Excluded from this table are the Company’s cash equivalents, which were carried at cost that approximates fair value. The cash equivalents consist primarily of money market funds that were Level 1 measurements. | ||||||||||||||
Fair Value, Nonrecurring, Level 3 Measurements from Impairments | ' | |||||||||||||
Fair value, nonrecurring, Level 3 measurements from impairments were as follows (in millions of dollars): | ||||||||||||||
Fair Value * | ||||||||||||||
January 31 | October 31 | January 31 | ||||||||||||
2014 | 2013 | 2013 | ||||||||||||
Receivables: | ||||||||||||||
Wholesale receivables | $ | 0.1 | ||||||||||||
Operating loans | $ | 14 | $ | 14.3 | ||||||||||
Total Receivables | $ | 14 | $ | 14.3 | $ | 0.1 | ||||||||
* There were no losses recorded for the three months ended January 31, 2014 or 2013. | ||||||||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | |||||||||||||
Jan. 31, 2014 | ||||||||||||||
Derivative Instruments | ' | |||||||||||||
Fair Value Hedge Interest Rate Contracts and Underlying Borrowings | ' | |||||||||||||
The gains (losses) on these contracts and the underlying borrowings recorded in interest expense were as follows (in millions of dollars): | ||||||||||||||
Three Months Ended | ||||||||||||||
January 31 | ||||||||||||||
2014 | 2013 | |||||||||||||
Interest rate contracts * | $ | -70.6 | $ | -70.9 | ||||||||||
Borrowings ** | 68.7 | 73.1 | ||||||||||||
* Includes changes in fair value of interest rate contracts excluding net accrued interest income of $34.7 million and $36.2 million during the first three months of 2014 and 2013, respectively. | ||||||||||||||
** Includes adjustments for fair values of hedged borrowings excluding accrued interest expense of $54.5 million and $61.3 million during the first three months of 2014 and 2013, respectively. | ||||||||||||||
Fair Value of Derivative Instruments in Consolidated Balance Sheet | ' | |||||||||||||
Fair values of derivative instruments in the consolidated balance sheet were as follows (in millions of dollars): | ||||||||||||||
January 31 | October 31 | January 31 | ||||||||||||
2014 | 2013 | 2013 | ||||||||||||
Receivables from John Deere | ||||||||||||||
Designated as hedging instruments: | ||||||||||||||
Interest rate contracts | $ | 130.4 | $ | 144.3 | $ | 280.5 | ||||||||
Cross-currency interest rate contracts | 4.8 | |||||||||||||
Total designated | 130.4 | 144.3 | 285.3 | |||||||||||
Not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 34.7 | 31.2 | 41.7 | |||||||||||
Cross-currency interest rate contracts | 4.2 | 1.1 | 0.4 | |||||||||||
Total not designated | 38.9 | 32.3 | 42.1 | |||||||||||
Other Assets | ||||||||||||||
Designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 140.1 | 140.5 | 185.5 | |||||||||||
Not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 7.2 | 16.3 | 20.9 | |||||||||||
Foreign exchange contracts | 13 | 1 | 6.2 | |||||||||||
Cross-currency interest rate contracts | 0.1 | 0.1 | ||||||||||||
Total not designated | 20.3 | 17.4 | 27.1 | |||||||||||
Total derivatives | $ | 329.7 | $ | 334.5 | $ | 540 | ||||||||
Other Payables to John Deere | ||||||||||||||
Designated as hedging instruments: | ||||||||||||||
Interest rate contracts | $ | 94.6 | $ | 71 | $ | 18 | ||||||||
Cross-currency interest rate contracts | 0.4 | 0.6 | ||||||||||||
Total designated | 94.6 | 71.4 | 18.6 | |||||||||||
Not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 13.9 | 13.8 | 11.6 | |||||||||||
Cross-currency interest rate contracts | 0.7 | 1.6 | ||||||||||||
Total not designated | 13.9 | 14.5 | 13.2 | |||||||||||
Accounts Payable and Accrued Expenses | ||||||||||||||
Designated as hedging instruments: | ||||||||||||||
Cross-currency interest rate contracts | 16 | 30.2 | ||||||||||||
Not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 29.3 | 29.9 | 40.9 | |||||||||||
Foreign exchange contracts | 6.2 | 15.8 | 11.2 | |||||||||||
Cross-currency interest rate contracts | 0.1 | |||||||||||||
Total not designated | 35.5 | 45.7 | 52.2 | |||||||||||
Total derivatives | $ | 144 | $ | 147.6 | $ | 114.2 | ||||||||
Gains (Losses) Related to Derivative Instruments on Statement of Consolidated Income | ' | |||||||||||||
The classification and gains (losses), including accrued interest expense related to derivative instruments on the statement of consolidated income consisted of the following (in millions of dollars): | ||||||||||||||
Three Months Ended | ||||||||||||||
Expense or OCI | January 31 | |||||||||||||
Classification | 2014 | 2013 | ||||||||||||
Fair Value Hedges: | ||||||||||||||
Interest rate contracts | Interest expense | $ | -35.9 | $ | -34.7 | |||||||||
Cash Flow Hedges: | ||||||||||||||
Recognized in OCI | ||||||||||||||
(Effective Portion): | ||||||||||||||
Interest rate contracts | OCI (pretax) * | -1.8 | -2.8 | |||||||||||
Foreign exchange contracts | OCI (pretax) * | -4.1 | 21.4 | |||||||||||
Reclassified from OCI | ||||||||||||||
(Effective Portion): | ||||||||||||||
Interest rate contracts | Interest expense * | -3.6 | -4.4 | |||||||||||
Foreign exchange contracts | Administrative and operating expenses * | -5.5 | 19.1 | |||||||||||
Recognized Directly in Income | ||||||||||||||
(Ineffective Portion) | ** | ** | ||||||||||||
Not Designated as Hedges: | ||||||||||||||
Interest rate contracts | Interest expense * | $ | 2.7 | $ | 0.6 | |||||||||
Foreign exchange contracts | Administrative and operating expenses * | 53.5 | -24.7 | |||||||||||
Total not designated | $ | 56.2 | $ | -24.1 | ||||||||||
* Includes interest and foreign exchange gains (losses) from cross-currency interest rate contracts. | ||||||||||||||
** The amount is not significant. | ||||||||||||||
Impact on Derivative Assets and Liabilities for External Derivatives and those with John Deere Related to Netting Arrangements and Collateral | ' | |||||||||||||
Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities for external derivatives and those with John Deere related to netting arrangements and any collateral received or paid were as follows (in millions of dollars): | ||||||||||||||
January 31, 2014 | ||||||||||||||
Derivatives: | Gross Amounts | Netting | Collateral | Net Amount | ||||||||||
Recognized | Arrangements | Received | ||||||||||||
Assets | ||||||||||||||
External | $ | 160.4 | $ | (29.5 | ) | $ | (2.4 | ) | $ | 128.5 | ||||
John Deere | 169.3 | (105.9 | ) | 63.4 | ||||||||||
Liabilities | ||||||||||||||
External | 35.5 | (29.5 | ) | 6 | ||||||||||
John Deere | 108.5 | (105.9 | ) | 2.6 | ||||||||||
October 31, 2013 | ||||||||||||||
Derivatives: | Gross Amounts | Netting | Collateral | Net Amount | ||||||||||
Recognized | Arrangements | Received | ||||||||||||
Assets | ||||||||||||||
External | $ | 157.9 | $ | (42.6 | ) | $ | (2.4 | ) | $ | 112.9 | ||||
John Deere | 176.6 | (82.9 | ) | 93.7 | ||||||||||
Liabilities | ||||||||||||||
External | 61.7 | (42.6 | ) | 19.1 | ||||||||||
John Deere | 85.9 | (82.9 | ) | 3 | ||||||||||
January 31, 2013 | ||||||||||||||
Derivatives: | Gross Amounts | Netting | Collateral | Net Amount | ||||||||||
Recognized | Arrangements | Received | ||||||||||||
Assets | ||||||||||||||
External | $ | 212.6 | $ | (58.3 | ) | $ | (21.5 | ) | $ | 132.8 | ||||
John Deere | 327.4 | (27.3 | ) | 300.1 | ||||||||||
Liabilities | ||||||||||||||
External | 82.4 | (58.3 | ) | 24.1 | ||||||||||
John Deere | 31.8 | (27.3 | ) | 4.5 | ||||||||||
Other_Comprehensive_Income_Det
Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
After-tax changes in accumulated other comprehensive income | ' | ' |
Balance at the beginning of the period | $35.60 | ' |
Net current period other comprehensive income (loss) | -7 | 8.4 |
Balance at the end of the period | 28.6 | 30 |
Cumulative Translation Adjustment | ' | ' |
After-tax changes in accumulated other comprehensive income | ' | ' |
Balance at the beginning of the period | 39.5 | ' |
Other comprehensive income (loss) items before reclassification | -9.1 | ' |
Net current period other comprehensive income (loss) | -9.1 | ' |
Balance at the end of the period | 30.4 | ' |
Unrealized Gain (Loss) on Derivatives | ' | ' |
After-tax changes in accumulated other comprehensive income | ' | ' |
Balance at the beginning of the period | -3.9 | ' |
Other comprehensive income (loss) items before reclassification | -3.8 | ' |
Amounts reclassified from accumulated other comprehensive income | 5.9 | ' |
Net current period other comprehensive income (loss) | 2.1 | ' |
Balance at the end of the period | -1.8 | ' |
Total Accumulated Other Comprehensive Income | ' | ' |
After-tax changes in accumulated other comprehensive income | ' | ' |
Balance at the beginning of the period | 35.6 | ' |
Other comprehensive income (loss) items before reclassification | -12.9 | ' |
Amounts reclassified from accumulated other comprehensive income | 5.9 | ' |
Net current period other comprehensive income (loss) | -7 | 8.4 |
Balance at the end of the period | $28.60 | ' |
Other_Comprehensive_Income_Det1
Other Comprehensive Income (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Reclassifications of gains (losses) out of accumulated other comprehensive income | ' | ' |
Interest expense | ($74.10) | ($87.50) |
Administrative and operating expenses | -95.2 | -88.1 |
Reclassifications of gains (losses) out of accumulated other comprehensive income before taxes | 174.2 | 154.9 |
Tax credit | -38.5 | -50.2 |
Reclassifications of gains (losses) out of accumulated other comprehensive income after taxes | 136.5 | 105 |
Loss on derivatives | Reclassifications of gains (losses) out of accumulated other comprehensive income | ' | ' |
Reclassifications of gains (losses) out of accumulated other comprehensive income | ' | ' |
Reclassifications of gains (losses) out of accumulated other comprehensive income before taxes | -9.1 | ' |
Tax credit | 3.2 | ' |
Reclassifications of gains (losses) out of accumulated other comprehensive income after taxes | -5.9 | ' |
Loss on derivatives | Interest rate contracts | Reclassifications of gains (losses) out of accumulated other comprehensive income | ' | ' |
Reclassifications of gains (losses) out of accumulated other comprehensive income | ' | ' |
Interest expense | -3.6 | ' |
Loss on derivatives | Foreign exchange contracts | Reclassifications of gains (losses) out of accumulated other comprehensive income | ' | ' |
Reclassifications of gains (losses) out of accumulated other comprehensive income | ' | ' |
Administrative and operating expenses | ($5.50) | ' |
Other_Comprehensive_Income_Det2
Other Comprehensive Income (Details 3) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Other Comprehensive Income (Loss), Before Tax | ' | ' |
Cumulative translation adjustment | ($9.10) | $5.90 |
Net unrealized gain on derivatives | 3.2 | 3.9 |
Total other comprehensive income (loss) | -5.9 | 9.8 |
Other Comprehensive Income (Loss), Tax Expense | ' | ' |
Net unrealized gain on derivatives | -1.1 | -1.4 |
Total other comprehensive income (loss) | -1.1 | -1.4 |
Other Comprehensive Income (Loss), After Tax | ' | ' |
Cumulative translation adjustment | -9.1 | 5.9 |
Net unrealized gain on derivatives | 2.1 | 2.5 |
Other comprehensive income (loss), net of income taxes | ($7) | $8.40 |
Receivables_Details
Receivables (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2013 |
Receivables | ' | ' | ' |
Minimum number of days for a receivable to be considered past due | '30 days | ' | ' |
Aging of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | ' | ' | ' |
30-59 Days Past Due | $186 | $145.90 | $144.20 |
60-89 Days Past Due | 68.7 | 52.7 | 46.8 |
90 Days or Greater Past Due | 42.2 | 34.6 | 30.4 |
Total Past Due | 296.9 | 233.2 | 221.4 |
Total Non-Performing | 70 | 60 | 61.6 |
Current | 27,908.90 | 28,540.10 | 24,778.70 |
Total Receivables | 28,275.80 | 28,833.30 | 25,061.70 |
Retail notes | ' | ' | ' |
Receivable, Past Due | ' | ' | ' |
Generally the approximate number of days before a receivable is considered to be non-performing, accrual of finance income is suspended and the estimated uncollectible amount is written off | '120 days | ' | ' |
Aging of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | ' | ' | ' |
Total Receivables | 18,322.30 | ' | 15,856.80 |
Retail notes | Agriculture and turf equipment | ' | ' | ' |
Aging of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | ' | ' | ' |
30-59 Days Past Due | 93.3 | 67.8 | 71.1 |
60-89 Days Past Due | 33.3 | 23.3 | 20.4 |
90 Days or Greater Past Due | 21.8 | 17.1 | 14.2 |
Total Past Due | 148.4 | 108.2 | 105.7 |
Total Non-Performing | 42 | 34.1 | 37 |
Current | 16,251.10 | 16,359.30 | 14,235.40 |
Total Receivables | 16,441.50 | 16,501.60 | 14,378.10 |
Retail notes | Construction and forestry equipment | ' | ' | ' |
Aging of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | ' | ' | ' |
30-59 Days Past Due | 50.2 | 38.4 | 39.8 |
60-89 Days Past Due | 19.4 | 14.4 | 16.7 |
90 Days or Greater Past Due | 9.9 | 8.6 | 8.1 |
Total Past Due | 79.5 | 61.4 | 64.6 |
Total Non-Performing | 14.1 | 11.4 | 13.3 |
Current | 1,787.20 | 1,672.10 | 1,400.80 |
Total Receivables | 1,880.80 | 1,744.90 | 1,478.70 |
Revolving charge accounts | ' | ' | ' |
Receivable, Past Due | ' | ' | ' |
Generally the approximate number of days before a receivable is considered to be non-performing, accrual of finance income is suspended and the estimated uncollectible amount is written off | '120 days | ' | ' |
Aging of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | ' | ' | ' |
Total Receivables | 1,760 | ' | 1,755.30 |
Revolving charge accounts | Agriculture and turf equipment | ' | ' | ' |
Aging of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | ' | ' | ' |
30-59 Days Past Due | 19.9 | 14.6 | 14.8 |
60-89 Days Past Due | 5 | 4.5 | 4.4 |
90 Days or Greater Past Due | 1.7 | 2.2 | 1.6 |
Total Past Due | 26.6 | 21.3 | 20.8 |
Total Non-Performing | 1 | 0.9 | 0.7 |
Current | 1,665 | 2,438 | 1,674.30 |
Total Receivables | 1,692.60 | 2,460.20 | 1,695.80 |
Revolving charge accounts | Construction and forestry equipment | ' | ' | ' |
Aging of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | ' | ' | ' |
30-59 Days Past Due | 4 | 2.3 | 2.1 |
60-89 Days Past Due | 1.3 | 1 | 0.8 |
90 Days or Greater Past Due | 0.5 | 0.5 | 0.6 |
Total Past Due | 5.8 | 3.8 | 3.5 |
Total Non-Performing | 0.1 | ' | ' |
Current | 61.5 | 70.9 | 56 |
Total Receivables | 67.4 | 74.7 | 59.5 |
Wholesale receivables | ' | ' | ' |
Receivable, Past Due | ' | ' | ' |
Generally the approximate number of days before a receivable is considered to be non-performing, accrual of finance income is suspended and the estimated uncollectible amount is written off | '60 days | ' | ' |
Aging of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | ' | ' | ' |
Total Receivables | 7,638.30 | ' | 6,891.40 |
Wholesale receivables | Agriculture and turf equipment | ' | ' | ' |
Aging of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | ' | ' | ' |
30-59 Days Past Due | 11.1 | 10 | 2.6 |
60-89 Days Past Due | 5.2 | 4.9 | 2 |
90 Days or Greater Past Due | 6.3 | 3 | 5.1 |
Total Past Due | 22.6 | 17.9 | 9.7 |
Total Non-Performing | 0.5 | 0.3 | 0.4 |
Current | 6,795.40 | 6,541.10 | 5,956.60 |
Total Receivables | 6,818.50 | 6,559.30 | 5,966.70 |
Wholesale receivables | Construction and forestry equipment | ' | ' | ' |
Aging of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | ' | ' | ' |
30-59 Days Past Due | 0.2 | 0.3 | 5.5 |
60-89 Days Past Due | 0.2 | 0.1 | ' |
90 Days or Greater Past Due | 0.2 | 0.9 | 0.1 |
Total Past Due | 0.6 | 1.3 | 5.6 |
Current | 819.2 | 904.1 | 919.1 |
Total Receivables | 819.8 | 905.4 | 924.7 |
Financing leases | ' | ' | ' |
Receivable, Past Due | ' | ' | ' |
Generally the approximate number of days before a receivable is considered to be non-performing, accrual of finance income is suspended and the estimated uncollectible amount is written off | '120 days | ' | ' |
Financing leases | Agriculture and turf equipment | ' | ' | ' |
Aging of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | ' | ' | ' |
30-59 Days Past Due | 4.4 | 10.2 | 6.3 |
60-89 Days Past Due | 3.9 | 4 | 2 |
90 Days or Greater Past Due | 1.4 | 2.3 | 0.6 |
Total Past Due | 9.7 | 16.5 | 8.9 |
Total Non-Performing | 11.4 | 11 | 9.1 |
Current | 353.2 | 379 | 354.4 |
Total Receivables | 374.3 | 406.5 | 372.4 |
Financing leases | Construction and forestry equipment | ' | ' | ' |
Aging of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | ' | ' | ' |
30-59 Days Past Due | 2.9 | 2.2 | 2 |
60-89 Days Past Due | 0.4 | 0.5 | 0.4 |
90 Days or Greater Past Due | 0.4 | ' | 0.1 |
Total Past Due | 3.7 | 2.7 | 2.5 |
Total Non-Performing | 0.9 | 2 | 1 |
Current | 151 | 144.1 | 141.5 |
Total Receivables | 155.6 | 148.8 | 145 |
Operating loans | Agriculture and turf equipment | ' | ' | ' |
Aging of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | ' | ' | ' |
30-59 Days Past Due | ' | 0.1 | ' |
60-89 Days Past Due | ' | ' | 0.1 |
Total Past Due | ' | 0.1 | 0.1 |
Total Non-Performing | ' | 0.3 | 0.1 |
Current | 25.3 | 31.5 | 40.6 |
Total Receivables | $25.30 | $31.90 | $40.80 |
Receivables_Details_2
Receivables (Details 2) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2013 |
Allowance: | ' | ' | ' |
Beginning of period balance | $111.40 | $114 | ' |
Provision (credit) for credit losses | 2.3 | 0.7 | ' |
Write-offs | -7.1 | -7.5 | ' |
Recoveries | 4.8 | 6.1 | ' |
Other changes (primarily translation adjustments) | -0.4 | 0.1 | ' |
End of period balance | 111 | 113.4 | ' |
Balance individually evaluated | 3.8 | 0.1 | ' |
Receivables: | ' | ' | ' |
End of period balance | 28,275.80 | 25,061.70 | 28,833.30 |
Balance individually evaluated | 40 | 11.9 | ' |
Retail notes | ' | ' | ' |
Allowance: | ' | ' | ' |
Beginning of period balance | 50.7 | 56.4 | ' |
Provision (credit) for credit losses | 1 | 1 | ' |
Write-offs | -2.3 | -2.9 | ' |
Recoveries | 1.4 | 1.9 | ' |
Other changes (primarily translation adjustments) | -0.4 | 0.1 | ' |
End of period balance | 50.4 | 56.5 | ' |
Receivables: | ' | ' | ' |
End of period balance | 18,322.30 | 15,856.80 | ' |
Balance individually evaluated | 14 | 11.1 | ' |
Revolving charge accounts | ' | ' | ' |
Allowance: | ' | ' | ' |
Beginning of period balance | 39.7 | 40.2 | ' |
Provision (credit) for credit losses | 1.1 | -0.2 | ' |
Write-offs | -4.5 | -4.2 | ' |
Recoveries | 3.4 | 4 | ' |
Other changes (primarily translation adjustments) | ' | -0.1 | ' |
End of period balance | 39.7 | 39.7 | ' |
Receivables: | ' | ' | ' |
End of period balance | 1,760 | 1,755.30 | ' |
Balance individually evaluated | 0.2 | 0.6 | ' |
Wholesale receivables | ' | ' | ' |
Allowance: | ' | ' | ' |
Beginning of period balance | ' | 5.9 | 6.4 |
Provision (credit) for credit losses | ' | 0.1 | ' |
Other changes (primarily translation adjustments) | ' | 0.1 | ' |
End of period balance | 6.4 | 6.1 | 6.4 |
Balance individually evaluated | 0.1 | 0.1 | ' |
Receivables: | ' | ' | ' |
End of period balance | 7,638.30 | 6,891.40 | ' |
Balance individually evaluated | 0.3 | 0.2 | ' |
Other | ' | ' | ' |
Allowance: | ' | ' | ' |
Beginning of period balance | 14.6 | 11.5 | ' |
Provision (credit) for credit losses | 0.2 | -0.2 | ' |
Write-offs | -0.3 | -0.4 | ' |
Recoveries | ' | 0.2 | ' |
End of period balance | 14.5 | 11.1 | ' |
Balance individually evaluated | 3.7 | ' | ' |
Receivables: | ' | ' | ' |
End of period balance | 555.2 | 558.2 | ' |
Balance individually evaluated | $25.50 | ' | ' |
Receivables_Details_3
Receivables (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2013 |
Recorded Investment | ' | ' | ' |
Receivables with specific allowance | $17.80 | $0.20 | $18.10 |
Receivables without specific allowance | 6.5 | 8.5 | 7.2 |
Total | 24.3 | 8.7 | 25.3 |
Unpaid Principal Balance | ' | ' | ' |
Receivables with specific allowance | 17.8 | 0.2 | 18 |
Receivables without specific allowance | 6.3 | 8.3 | 7.1 |
Total | 24.1 | 8.5 | 25.1 |
Specific Allowance | 3.8 | 0.1 | 3.8 |
Average Recorded Investment | ' | ' | ' |
Receivables with specific allowance | 18.1 | 0.2 | 19 |
Receivables without specific allowance | 6.9 | 8.5 | 8 |
Total | 25 | 8.7 | 27 |
Agriculture and turf | ' | ' | ' |
Recorded Investment | ' | ' | ' |
Total | 22.4 | 6.1 | 23.2 |
Unpaid Principal Balance | ' | ' | ' |
Total | 22.2 | 5.9 | 23 |
Specific Allowance | 3.8 | 0.1 | 3.8 |
Average Recorded Investment | ' | ' | ' |
Total | 23 | 6.1 | 24.6 |
Construction and forestry | ' | ' | ' |
Recorded Investment | ' | ' | ' |
Total | 1.9 | 2.6 | 2.1 |
Unpaid Principal Balance | ' | ' | ' |
Total | 1.9 | 2.6 | 2.1 |
Average Recorded Investment | ' | ' | ' |
Total | 2 | 2.6 | 2.4 |
Retail notes | ' | ' | ' |
Recorded Investment | ' | ' | ' |
Receivables without specific allowance | 6.5 | 8.5 | 7.2 |
Unpaid Principal Balance | ' | ' | ' |
Receivables without specific allowance | 6.3 | 8.3 | 7.1 |
Average Recorded Investment | ' | ' | ' |
Receivables without specific allowance | 6.9 | 8.5 | 8 |
Wholesale receivables | ' | ' | ' |
Recorded Investment | ' | ' | ' |
Receivables with specific allowance | 0.1 | 0.2 | 0.1 |
Unpaid Principal Balance | ' | ' | ' |
Receivables with specific allowance | 0.1 | 0.2 | 0.1 |
Specific Allowance | 0.1 | 0.1 | 0.1 |
Average Recorded Investment | ' | ' | ' |
Receivables with specific allowance | 0.1 | 0.2 | 0.2 |
Operating loans | ' | ' | ' |
Recorded Investment | ' | ' | ' |
Receivables with specific allowance | 17.7 | ' | 18 |
Unpaid Principal Balance | ' | ' | ' |
Receivables with specific allowance | 17.7 | ' | 17.9 |
Specific Allowance | 3.7 | ' | 3.7 |
Average Recorded Investment | ' | ' | ' |
Receivables with specific allowance | $18 | ' | $18.80 |
Receivables_Details_4
Receivables (Details 4) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
item | item | |
Receivables Related to Troubled Debt Restructurings | ' | ' |
Receivable contracts in troubled debt restructuring, number | 6 | 26 |
Receivables in troubled debt restructurings, aggregate balances, pre-modification | $0.20 | $1.30 |
Receivables in troubled debt restructurings, aggregate balances, post-modification | $0.20 | $1.10 |
Securitization_of_Receivables_1
Securitization of Receivables (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2013 |
Securitization of Receivables | ' | ' | ' |
Unconsolidated conduits, carrying value of liabilities | $1,044 | ' | ' |
Unconsolidated conduits, maximum exposure to loss | 1,069 | ' | ' |
Total assets | 31,122 | 31,664.20 | 27,609.40 |
Retail notes securitized | 3,502.10 | 4,167.20 | 3,047 |
Allowance for credit losses - securitization transactions | -11.2 | -14.1 | -14.1 |
Other assets - securitization transactions | 97.2 | 100.2 | 82.8 |
Total restricted securitized assets - securitization transactions | 3,588.10 | 4,253.30 | 3,115.70 |
Securitization borrowings | 3,490.80 | 4,109.10 | 3,043.90 |
Accounts payable and accrued expenses | 0.8 | 1.3 | 0.8 |
Total liabilities related to restricted securitized assets - securitization transactions | 3,491.60 | 4,110.40 | 3,044.70 |
Maximum remaining term of all restricted receivables | '6 years | ' | ' |
VIE-Primary Beneficiary | ' | ' | ' |
Securitization of Receivables | ' | ' | ' |
Total restricted securitized assets - securitization transactions | 2,223 | 2,626 | 1,970 |
Total liabilities related to restricted securitized assets - securitization transactions | 2,159 | 2,547 | 1,915 |
Non-VIE Banking Operation | ' | ' | ' |
Securitization of Receivables | ' | ' | ' |
Total restricted securitized assets - securitization transactions | 296 | 353 | 248 |
Total liabilities related to restricted securitized assets - securitization transactions | 289 | 338 | 245 |
VIE-Not Primary Beneficiary | ' | ' | ' |
Securitization of Receivables | ' | ' | ' |
Total assets | 43,000 | ' | ' |
Total restricted securitized assets - securitization transactions | 1,069 | 1,274 | 898 |
Total liabilities related to restricted securitized assets - securitization transactions | $1,044 | $1,225 | $885 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2014 |
John Deere Financial Inc. | Guarantees of debt and derivatives | Commercial paper | ' |
Guarantee Obligations | ' |
Guarantee obligations maximum exposure | $119 |
John Deere Financial Inc. | Guarantees of debt and derivatives | Medium-term notes | ' |
Guarantee Obligations | ' |
Guarantee obligations maximum exposure | 788 |
Weighted average interest rate (as a percent) | 4.00% |
Maximum remaining maturity | '2 years |
John Deere Financial Inc. | Guarantees of debt and derivatives | Derivative Instruments | ' |
Guarantee Obligations | ' |
Guarantee obligations maximum exposure | 6 |
Notional amount | 1,279 |
John Deere Canada Funding Inc. (JDCFI) | VIE-Not Primary Beneficiary | ' |
Guarantee Obligations | ' |
Carrying value of assets or liabilities related to JDCFI | 0 |
John Deere Canada Funding Inc. (JDCFI) | VIE-Not Primary Beneficiary | Guarantees of debt and derivatives | ' |
Guarantee Obligations | ' |
Guarantee obligations maximum exposure | $1,306 |
Weighted average interest rate (as a percent) | 2.30% |
Maximum remaining maturity | '4 years |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details 2) (USD $) | Jan. 31, 2014 |
Commitments | ' |
Restricted other assets | $44,000,000 |
John Deere dealers | ' |
Commitments | ' |
Unused commitments | 7,400,000,000 |
Customers | ' |
Commitments | ' |
Unused commitments | $29,600,000,000 |
Minimum percentage of unused commitments to extend credit to customers that relate to revolving charge accounts | 95.00% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Taxes | ' | ' |
Unrecognized tax benefits | $25.90 | $33.60 |
Unrecognized tax benefits affecting effective tax rate if recognized | $14.30 | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2013 |
In Millions, unless otherwise specified | |||
Fair Values of Financial Instruments | ' | ' | ' |
Securitization borrowings | $3,490.80 | $4,109.10 | $3,043.90 |
Current maturities of long-term borrowings | 3,903.10 | 3,602.20 | 3,615.60 |
Long-term borrowings | 14,685.30 | 14,195.10 | 14,370.10 |
Fair Value, Level 2 | ' | ' | ' |
Fair Values of Financial Instruments | ' | ' | ' |
Securitization borrowings | 3,492 | 4,113 | 3,050 |
Current maturities of long-term borrowings | 3,912 | 3,623 | 3,690 |
Long-term borrowings | 14,852 | 14,331 | 14,518 |
Fair Value, Level 3 | ' | ' | ' |
Fair Values of Financial Instruments | ' | ' | ' |
Receivables financed - net | 24,557 | 24,459 | 21,900 |
Retail notes securitized - net | 3,463 | 4,124 | 3,032 |
Carrying Value | ' | ' | ' |
Fair Values of Financial Instruments | ' | ' | ' |
Receivables financed - net | 24,674 | 24,569 | 21,915 |
Retail notes securitized - net | 3,491 | 4,153 | 3,033 |
Securitization borrowings | 3,491 | 4,109 | 3,044 |
Current maturities of long-term borrowings | 3,903 | 3,602 | 3,616 |
Long-term borrowings | $14,685 | $14,195 | $14,370 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2013 |
In Millions, unless otherwise specified | |||
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | ' | ' | ' |
Derivative assets | $329.70 | $334.50 | $540 |
Derivative liabilities | 144 | 147.6 | 114.2 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | ' | ' | ' |
Derivative assets | 329.7 | 334.5 | 540 |
Derivative liabilities | 144 | 147.6 | 114.2 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Interest rate contracts | Receivables from John Deere | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | ' | ' | ' |
Derivative assets | 165.1 | 175.5 | 322.2 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Interest rate contracts | Other assets | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | ' | ' | ' |
Derivative assets | 147.3 | 156.8 | 206.4 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Interest rate contracts | Other payables to John Deere | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | ' | ' | ' |
Derivative liabilities | 108.5 | 84.8 | 29.6 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Interest rate contracts | Accounts payable and accrued expenses | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | ' | ' | ' |
Derivative liabilities | 29.3 | 29.9 | 40.9 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Foreign exchange contracts | Other assets | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | ' | ' | ' |
Derivative assets | 13 | 1 | 6.2 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Foreign exchange contracts | Accounts payable and accrued expenses | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | ' | ' | ' |
Derivative liabilities | 6.2 | 15.8 | 11.2 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Cross-currency interest rate contracts | Receivables from John Deere | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | ' | ' | ' |
Derivative assets | 4.2 | 1.1 | 5.2 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Cross-currency interest rate contracts | Other assets | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | ' | ' | ' |
Derivative assets | 0.1 | 0.1 | ' |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Cross-currency interest rate contracts | Other payables to John Deere | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | ' | ' | ' |
Derivative liabilities | ' | 1.1 | 2.2 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Cross-currency interest rate contracts | Accounts payable and accrued expenses | ' | ' | ' |
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | ' | ' | ' |
Derivative liabilities | ' | $16 | $30.30 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2013 |
Assets and liabilities measured at fair value | ' | ' | ' |
Total Receivables | $28,164.80 | $24,948.30 | $28,721.90 |
Fair Value, Nonrecurring Measurements | Level 3 | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Total Receivables | 14 | 0.1 | 14.3 |
Loss on fair value of receivables | 0 | 0 | ' |
Fair Value, Nonrecurring Measurements | Level 3 | Wholesale receivables | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Total Receivables | ' | 0.1 | ' |
Fair Value, Nonrecurring Measurements | Level 3 | Operating loans | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Total Receivables | $14 | ' | $14.30 |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | 3 Months Ended | ||||||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2013 |
Interest rate contracts | Interest rate contracts | Interest rate contracts | Cross-Currency Interest Rate Contracts | Cross-Currency Interest Rate Contracts | Cross-Currency Interest Rate Contracts | ||
Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | ||
Cash Flow Hedges | ' | ' | ' | ' | ' | ' | ' |
Notional amounts | ' | $3,600 | $3,100 | $3,100 | $0 | $746 | $853 |
Cash flow hedge gain (loss) recorded in OCI to be reclassified within twelve months | -2 | ' | ' | ' | ' | ' | ' |
Maximum maturity of cash flow hedge interest rate and cross-currency interest rate contracts | '22 months | ' | ' | ' | ' | ' | ' |
Gains or losses reclassified from OCI to earnings | $0 | ' | ' | ' | ' | ' | ' |
Derivative_Instruments_Details1
Derivative Instruments (Details 2) (Interest Rate Contracts, USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2013 |
Fair value hedges | Fair value hedges | Fair value hedges | |||
Gain (Loss) on Fair Value Hedges | ' | ' | ' | ' | ' |
Gains (losses) on interest rate contracts | ($70.60) | ($70.90) | ' | ' | ' |
Net accrued interest income on interest rate contracts | 34.7 | 36.2 | ' | ' | ' |
Gains (losses) on borrowings | 68.7 | 73.1 | ' | ' | ' |
Accrued interest expense on borrowings | 54.5 | 61.3 | ' | ' | ' |
Fair Value Hedges | ' | ' | ' | ' | ' |
Notional amounts | ' | ' | 7,611 | 6,864 | 8,451 |
Gain (Loss) on ineffective portion of interest rate fair value hedge derivatives | ($2) | $2 | ' | ' | ' |
Derivative_Instruments_Details2
Derivative Instruments (Details 3) (Not Designated as Hedging Instruments, USD $) | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2013 |
In Millions, unless otherwise specified | |||
Interest rate contracts | ' | ' | ' |
Derivatives Not Designated as Hedging Instruments | ' | ' | ' |
Notional amounts | $3,118 | $2,950 | $2,265 |
Foreign Exchange Contracts | ' | ' | ' |
Derivatives Not Designated as Hedging Instruments | ' | ' | ' |
Notional amounts | 1,555 | 1,339 | 1,615 |
Cross-Currency Interest Rate Contracts | ' | ' | ' |
Derivatives Not Designated as Hedging Instruments | ' | ' | ' |
Notional amounts | 86 | 85 | 82 |
Interest Rate Caps- Purchased | ' | ' | ' |
Derivatives Not Designated as Hedging Instruments | ' | ' | ' |
Notional amounts | 1,458 | 1,641 | 1,263 |
Interest Rate Caps- Sold | ' | ' | ' |
Derivatives Not Designated as Hedging Instruments | ' | ' | ' |
Notional amounts | $1,458 | $1,641 | $1,263 |
Derivative_Instruments_Details3
Derivative Instruments (Details 4) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2013 |
In Millions, unless otherwise specified | |||
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative assets | $329.70 | $334.50 | $540 |
Total derivative liabilities | 144 | 147.6 | 114.2 |
Designated as Hedging Instruments | Receivables from John Deere | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative assets | 130.4 | 144.3 | 285.3 |
Designated as Hedging Instruments | Other Payables to John Deere | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative liabilities | 94.6 | 71.4 | 18.6 |
Designated as Hedging Instruments | Interest Rate Contracts | Receivables from John Deere | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative assets | 130.4 | 144.3 | 280.5 |
Designated as Hedging Instruments | Interest Rate Contracts | Other Assets | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative assets | 140.1 | 140.5 | 185.5 |
Designated as Hedging Instruments | Interest Rate Contracts | Other Payables to John Deere | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative liabilities | 94.6 | 71 | 18 |
Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Receivables from John Deere | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative assets | ' | ' | 4.8 |
Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Other Payables to John Deere | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative liabilities | ' | 0.4 | 0.6 |
Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Accounts Payable and Accrued Expenses | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative liabilities | ' | 16 | 30.2 |
Not Designated as Hedging Instruments | Receivables from John Deere | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative assets | 38.9 | 32.3 | 42.1 |
Not Designated as Hedging Instruments | Other Assets | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative assets | 20.3 | 17.4 | 27.1 |
Not Designated as Hedging Instruments | Other Payables to John Deere | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative liabilities | 13.9 | 14.5 | 13.2 |
Not Designated as Hedging Instruments | Accounts Payable and Accrued Expenses | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative liabilities | 35.5 | 45.7 | 52.2 |
Not Designated as Hedging Instruments | Interest Rate Contracts | Receivables from John Deere | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative assets | 34.7 | 31.2 | 41.7 |
Not Designated as Hedging Instruments | Interest Rate Contracts | Other Assets | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative assets | 7.2 | 16.3 | 20.9 |
Not Designated as Hedging Instruments | Interest Rate Contracts | Other Payables to John Deere | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative liabilities | 13.9 | 13.8 | 11.6 |
Not Designated as Hedging Instruments | Interest Rate Contracts | Accounts Payable and Accrued Expenses | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative liabilities | 29.3 | 29.9 | 40.9 |
Not Designated as Hedging Instruments | Foreign Exchange Contracts | Other Assets | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative assets | 13 | 1 | 6.2 |
Not Designated as Hedging Instruments | Foreign Exchange Contracts | Accounts Payable and Accrued Expenses | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative liabilities | 6.2 | 15.8 | 11.2 |
Not Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Receivables from John Deere | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative assets | 4.2 | 1.1 | 0.4 |
Not Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Other Assets | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative assets | 0.1 | 0.1 | ' |
Not Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Other Payables to John Deere | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative liabilities | ' | 0.7 | 1.6 |
Not Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Accounts Payable and Accrued Expenses | ' | ' | ' |
Fair Value of Derivative Instruments | ' | ' | ' |
Total derivative liabilities | ' | ' | $0.10 |
Derivative_Instruments_Details4
Derivative Instruments (Details 5) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Classification and gains (losses) including accrued interest expense related to derivative instruments | ' | ' |
Not designated as hedges, gains (losses) | $56.20 | ($24.10) |
John Deere | ' | ' |
Classification and gains (losses) including accrued interest expense related to derivative instruments | ' | ' |
Gain (loss) on derivatives transactions with affiliate party | -31 | -41 |
Interest rate contracts | Interest expense | ' | ' |
Classification and gains (losses) including accrued interest expense related to derivative instruments | ' | ' |
Fair value hedges, gains (losses) | -35.9 | -34.7 |
Not designated as hedges, gains (losses) | 2.7 | 0.6 |
Interest rate contracts | Interest expense | Cash flow hedges | ' | ' |
Classification and gains (losses) including accrued interest expense related to derivative instruments | ' | ' |
Cash flow hedges, reclassified from OCI, effective portion, gains (losses) | -3.6 | -4.4 |
Interest rate contracts | OCI (pretax) | ' | ' |
Classification and gains (losses) including accrued interest expense related to derivative instruments | ' | ' |
Cash flow hedges, interest rate contracts, recognized in OCI, effective portion, gains (losses) | -1.8 | -2.8 |
Foreign exchange contracts | OCI (pretax) | ' | ' |
Classification and gains (losses) including accrued interest expense related to derivative instruments | ' | ' |
Cash flow hedges, foreign exchange contracts, recognized in OCI, effective portion, gains (losses) | -4.1 | 21.4 |
Foreign exchange contracts | Administrative and operating expenses | ' | ' |
Classification and gains (losses) including accrued interest expense related to derivative instruments | ' | ' |
Not designated as hedges, gains (losses) | 53.5 | -24.7 |
Foreign exchange contracts | Administrative and operating expenses | Cash flow hedges | ' | ' |
Classification and gains (losses) including accrued interest expense related to derivative instruments | ' | ' |
Cash flow hedges, reclassified from OCI, effective portion, gains (losses) | ($5.50) | $19.10 |
Derivative_Instruments_Details5
Derivative Instruments (Details 6) (Derivative Instruments, USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2013 |
Counterparty Risk and Collateral | ' | ' | ' |
Aggregate liability positions for derivatives with credit-risk-related contingent features | $0 | $0 | $0 |
John Deere | ' | ' | ' |
Counterparty Risk and Collateral | ' | ' | ' |
Increase (decrease) in maximum loss if derivative counterparties fail to meet obligations - loss sharing agreement | $36 | ($2) | $17 |
Derivative_Instruments_Details6
Derivative Instruments (Details 7) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2013 |
In Millions, unless otherwise specified | |||
Derivative assets | ' | ' | ' |
Gross Amounts Recognized | $329.70 | $334.50 | $540 |
Derivative liabilities | ' | ' | ' |
Gross Amounts Recognized | 144 | 147.6 | 114.2 |
John Deere | ' | ' | ' |
Derivative assets | ' | ' | ' |
Gross Amounts Recognized | 169.3 | 176.6 | 327.4 |
Netting Arrangements | -105.9 | -82.9 | -27.3 |
Net Amount | 63.4 | 93.7 | 300.1 |
Derivative liabilities | ' | ' | ' |
Gross Amounts Recognized | 108.5 | 85.9 | 31.8 |
Netting Arrangements | -105.9 | -82.9 | -27.3 |
Net Amount | 2.6 | 3 | 4.5 |
External | ' | ' | ' |
Derivative assets | ' | ' | ' |
Gross Amounts Recognized | 160.4 | 157.9 | 212.6 |
Netting Arrangements | -29.5 | -42.6 | -58.3 |
Collateral Received | -2.4 | -2.4 | -21.5 |
Net Amount | 128.5 | 112.9 | 132.8 |
Derivative liabilities | ' | ' | ' |
Gross Amounts Recognized | 35.5 | 61.7 | 82.4 |
Netting Arrangements | -29.5 | -42.6 | -58.3 |
Net Amount | $6 | $19.10 | $24.10 |
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefits (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Pensions | ' | ' |
Defined Benefit Plan Disclosure | ' | ' |
Expenses related to defined benefit plans | $1.50 | $2 |
Health Care and Life Insurance | ' | ' |
Defined Benefit Plan Disclosure | ' | ' |
Expenses related to defined benefit plans | $2.20 | $2.70 |