Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Nov. 30, 2014 | |
Document and Entity Information | ||
Entity Registrant Name | DEERE JOHN CAPITAL CORP | |
Entity Central Index Key | 27673 | |
Document Type | 10-K | |
Document Period End Date | 31-Oct-14 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -21 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Public Float | $0 | |
Entity Common Stock, Shares Outstanding | 2,500 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | FY |
Statement_of_Consolidated_Inco
Statement of Consolidated Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Revenues | |||
Finance income earned on retail notes | $748.10 | $726.80 | $711 |
Revolving charge account income | 245.1 | 246 | 258 |
Finance income earned on wholesale receivables | 396.6 | 369.8 | 324.2 |
Lease revenues | 435.1 | 351.7 | 310.6 |
Operating loan income | 0.6 | 2 | 2.7 |
Other income - net | 70.3 | 71.2 | 68.1 |
Total revenues | 1,895.80 | 1,767.50 | 1,674.60 |
Expenses | |||
Interest expense | 281.1 | 352.2 | 455.6 |
Operating expenses: | |||
Administrative and operating expenses | 410.6 | 377.3 | 339.3 |
Fees paid to John Deere | 72.7 | 70.4 | 78.7 |
Provision (credit) for credit losses | 27.3 | 6.4 | -0.2 |
Depreciation of equipment on operating leases | 301.2 | 235.4 | 202.1 |
Total operating expenses | 811.8 | 689.5 | 619.9 |
Total expenses | 1,092.90 | 1,041.70 | 1,075.50 |
Income of consolidated group before income taxes | 802.9 | 725.8 | 599.1 |
Provision for income taxes | 260.6 | 258.4 | 217.8 |
Income of consolidated group | 542.3 | 467.4 | 381.3 |
Equity in income of unconsolidated affiliate | 1.9 | 1.1 | 1.4 |
Net income | 544.2 | 468.5 | 382.7 |
Net income attributable to the Company | $544.20 | $468.50 | $382.70 |
Statement_of_Consolidated_Comp
Statement of Consolidated Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Statement of Consolidated Comprehensive Income | |||
Net income | $544.20 | $468.50 | $382.70 |
Other comprehensive income (loss), net of income taxes | |||
Cumulative translation adjustment | -33.5 | 6.3 | -29.2 |
Unrealized gain (loss) on derivatives | 3.3 | 7.7 | -3.3 |
Other comprehensive income (loss), net of income taxes | -30.2 | 14 | -32.5 |
Comprehensive income of consolidated group | 514 | 482.5 | 350.2 |
Comprehensive income attributable to the Company | $514 | $482.50 | $350.20 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $1,059.40 | $379.50 |
Receivables: | ||
Total receivables | 30,505.90 | 28,833.30 |
Allowance for credit losses | -112.4 | -111.4 |
Total receivables - net | 30,393.50 | 28,721.90 |
Other receivables | 35.3 | 32.8 |
Receivables from John Deere | 186.5 | 176.6 |
Equipment on operating leases - net | 2,590.30 | 1,872.10 |
Investment in unconsolidated affiliate | 10.9 | 10.2 |
Deferred income taxes | 21.4 | 11.7 |
Other assets | 482.4 | 459.4 |
Total Assets | 34,779.70 | 31,664.20 |
Short-term borrowings: | ||
Commercial paper and other notes payable | 2,172.80 | 2,768.50 |
Securitization borrowings | 4,558.50 | 4,109.10 |
John Deere | 2,052.20 | 2,234.10 |
Current maturities of long-term borrowings | 3,899 | 3,602.20 |
Total short-term borrowings | 12,682.50 | 12,713.90 |
Other payables to John Deere | 52.2 | 85.9 |
Accounts payable and accrued expenses | 712.7 | 729.5 |
Deposits withheld from dealers and merchants | 167.4 | 173.8 |
Deferred income taxes | 303.5 | 334.9 |
Long-term borrowings | 17,056.30 | 14,195.10 |
Total liabilities | 30,974.60 | 28,233.10 |
Commitments and contingencies (Note 18) | ||
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 |
Retained earnings | 2,316.50 | 1,912.30 |
Accumulated other comprehensive income | 5.4 | 35.6 |
Total Company stockholder's equity | 3,804.70 | 3,430.70 |
Noncontrolling interests | 0.4 | 0.4 |
Total stockholder's equity | 3,805.10 | 3,431.10 |
Total Liabilities and Stockholder's Equity | 34,779.70 | 31,664.20 |
Retail notes | ||
Receivables: | ||
Total receivables | 14,845.40 | 14,079.30 |
Retail notes securitized | ||
Receivables: | ||
Total receivables | 4,615.90 | 4,167.20 |
Revolving charge accounts | ||
Receivables: | ||
Total receivables | 2,535.90 | 2,534.90 |
Wholesale receivables | ||
Receivables: | ||
Total receivables | 7,919.10 | 7,464.70 |
Financing leases | ||
Receivables: | ||
Total receivables | 589.6 | 555.3 |
Operating loans | ||
Receivables: | ||
Total receivables | $31.90 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) | Oct. 31, 2014 | Oct. 31, 2013 |
Consolidated Balance Sheet | ||
Common stock, issued shares | 2,500 | 2,500 |
Common stock, outstanding shares | 2,500 | 2,500 |
Statement_of_Consolidated_Cash
Statement of Consolidated Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Cash Flows from Operating Activities: | |||
Net income | $544.20 | $468.50 | $382.70 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision (credit) for credit losses | 27.3 | 6.4 | -0.2 |
Provision for depreciation and amortization | 312.3 | 245 | 218.7 |
Provision (credit) for deferred income taxes | -42.9 | 44.4 | 0.1 |
Undistributed earnings of unconsolidated affiliate | -1.7 | -0.9 | -1.3 |
Change in accounts payable and accrued expenses | 27.5 | 37.6 | -3.7 |
Change in accrued income taxes payable/receivable | 3.1 | -9 | 25.7 |
Other | 24 | 144.2 | -61 |
Net cash provided by operating activities | 893.8 | 936.2 | 561 |
Cash Flows from Investing Activities: | |||
Cost of receivables acquired (excluding wholesale) | -16,525 | -16,555.30 | -14,889.20 |
Collections of receivables (excluding wholesale) | 15,015.50 | 13,828.70 | 12,874.40 |
Increase in wholesale receivables - net | -576.7 | -948.8 | -1,339 |
Cost of equipment on operating leases acquired | -1,759.50 | -1,284.40 | -882.4 |
Proceeds from sales of equipment on operating leases | 731.6 | 619.8 | 496.7 |
Proceeds from sales of receivables | 0 | 0.7 | 34.5 |
Change in restricted cash | -27.3 | 5.1 | -5.6 |
Increase (decrease) in collateral on derivatives received - net | -2.4 | -34.1 | 11.9 |
Other | -24.3 | -7.3 | 41.3 |
Net cash used for investing activities | -3,168.10 | -4,375.60 | -3,657.40 |
Cash Flows from Financing Activities: | |||
Increase (decrease) in commercial paper and other notes payable - net | -491.1 | 1,798.70 | 272 |
Increase in securitization borrowings - net | 449.3 | 534.2 | 797.3 |
Increase (decrease) in payable to John Deere - net | -139.8 | 1,685.90 | -478.7 |
Proceeds from issuance of long-term borrowings | 6,888.40 | 3,165.90 | 7,233.70 |
Payments of long-term borrowings | -3,577 | -3,877.50 | -4,588.50 |
Dividends paid | -140 | -165 | |
Capital investment from John Deere | 50 | 160 | |
Debt issuance costs | -31 | -17.5 | -31.7 |
Net cash provided by financing activities | 2,958.80 | 3,174.70 | 3,364.10 |
Effect of exchange rate changes on cash and cash equivalents | -4.6 | 15.8 | -1.4 |
Net increase (decrease) in cash and cash equivalents | 679.9 | -248.9 | 266.3 |
Cash and cash equivalents at the beginning of year | 379.5 | 628.4 | 362.1 |
Cash and cash equivalents at the end of year | $1,059.40 | $379.50 | $628.40 |
Statement_of_Changes_in_Consol
Statement of Changes in Consolidated Stockholder's Equity (USD $) | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests |
In Millions, unless otherwise specified | |||||
Balance at Oct. 31, 2011 | $2,553.40 | $1,272.80 | $1,226.10 | $54.10 | $0.40 |
Increase (Decrease) in Stockholder's Equity | |||||
Net income | 382.7 | 382.7 | |||
Other comprehensive income (loss) | -32.5 | -32.5 | |||
Capital investment | 160 | 160 | |||
Balance at Oct. 31, 2012 | 3,063.60 | 1,432.80 | 1,608.80 | 21.6 | 0.4 |
Increase (Decrease) in Stockholder's Equity | |||||
Net income | 468.5 | 468.5 | |||
Other comprehensive income (loss) | 14 | 14 | |||
Dividends declared | -165 | -165 | |||
Capital investment | 50 | 50 | |||
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 | 544.2 | 544.2 | |||
Other comprehensive income (loss) | -30.2 | -30.2 | |||
Dividends declared | -140 | -140 | |||
Balance at Oct. 31, 2014 | $3,805.10 | $1,482.80 | $2,316.50 | $5.40 | $0.40 |
Organization_and_Consolidation
Organization and Consolidation | 12 Months Ended |
Oct. 31, 2014 | |
Organization and Consolidation | |
Organization and Consolidation | Note 1. Organization and Consolidation |
Corporate Organization | |
John Deere Capital Corporation and its subsidiaries (Capital Corporation), and its other consolidated entities are collectively called the Company. John Deere Financial Services, Inc. (JDFS), a wholly-owned finance holding subsidiary of Deere & Company, owns all of the outstanding common stock of John Deere Capital Corporation. The Company conducts business in Australia, New Zealand, the U.S., and in several countries in Africa, Asia, Europe and Latin America. Deere & Company and its wholly-owned subsidiaries are collectively called John Deere. | |
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.” | |
The Company bears substantially all of the credit risk (net of recovery from withholdings from certain John Deere dealers, and customer guarantees from certain John Deere dealers and John Deere Financial multi-use and PowerPlanâ merchants) associated with its holding of Receivables and Leases. A small portion of the Receivables and Leases held (less than 5 percent) is guaranteed by certain subsidiaries of Deere & Company. The Company also performs substantially all servicing and collection functions. Servicing and collection functions for a small portion of the Receivables and Leases held (less than 5 percent) are provided by John Deere. John Deere is reimbursed for staff and other administrative services at estimated cost, and for credit lines provided to the Company based on utilization of those lines. | |
Principles of Consolidation | |
The consolidated financial statements include the financial statements of John Deere Capital Corporation and its subsidiaries. The consolidated financial statements represent primarily the consolidation of all companies in which John Deere Capital Corporation has a controlling interest. Certain variable interest entities (VIEs) are consolidated since the Capital Corporation has both the power to direct the activities that most significantly impact the VIEs’ economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. The Capital Corporation records its investment in each unconsolidated affiliated company (generally 20 to 50 percent ownership) at its related equity in the net assets of such affiliate (see Note 23). | |
Variable Interest Entities | |
The Capital Corporation is the primary beneficiary of and consolidates certain VIEs that are special purpose entities (SPEs) related to the securitization of receivables. These restricted retail notes are included in the retail notes securitized shown in the table in Note 6. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2014 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies |
The following are significant accounting policies in addition to those included in other Notes to the Consolidated Financial Statements. | |
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. | |
Revenue Recognition | |
Financing revenue is recorded over the lives of the related receivables using the interest method. Deferred costs on the origination of receivables are recognized as a reduction in finance revenue over the expected lives of the receivables using the interest method. Income and deferred costs on the origination of operating leases are recognized on a straight-line basis over the scheduled lease terms in finance revenue. | |
Securitization of Receivables | |
Certain financing receivables are periodically transferred to SPEs in securitization transactions (see Note 6). These securitizations qualify as collateral for secured borrowings and no gains or losses are recognized at the time of securitization. The receivables remain on the balance sheet and are classified as “Retail notes securitized.” The Company recognizes finance income over the lives of these retail notes using the interest method. | |
Depreciation | |
Equipment on operating leases is depreciated over the terms of the leases using the straight-line method. | |
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. Cash collateral received or paid is not offset against the derivative fair values on the balance sheet. Each derivative is designated as a cash flow hedge, a fair value hedge, or remains undesignated. Changes in the fair value of derivatives that are designated and effective as cash flow hedges are recorded in other comprehensive income and reclassified to the income statement when the effects of the item being hedged are recognized in the income statement. Changes in the fair value of derivatives that are designated and effective as fair value hedges are recognized currently in net income. These changes are offset in net income to the extent the hedge was effective by fair value changes related to the risk being hedged on the hedged item. Changes in the fair value of undesignated hedges are recognized currently in the income statement. All ineffective changes in derivative fair values are recognized currently in net income. | |
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, the hedge accounting discussed above is discontinued (see Note 21). | |
Foreign Currency Translation | |
The functional currencies for most of the Company’s foreign operations are their respective local currencies. The assets and liabilities of these operations are translated into U.S. dollars at the end of the period exchange rates. The revenues and expenses are translated at weighted-average rates for the period. The gains or losses from these translations are recorded in other comprehensive income. Gains or losses from transactions denominated in a currency other than the functional currency of the subsidiary involved and foreign exchange forward contracts are included in net income. The pretax net losses for foreign exchange in 2014, 2013 and 2012 were $27.4 million, $22.9 million and $28.0 million, respectively. | |
New_Accounting_Standards
New Accounting Standards | 12 Months Ended |
Oct. 31, 2014 | |
New Accounting Standards | |
New Accounting Standards | Note 3. New Accounting Standards |
New Accounting Standards Adopted | |
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. | |
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends ASC 205, Presentation of Financial Statements, and ASC 360, Property, Plant and Equipment. This ASU defines a discontinued operation as a component or group of components that is disposed of or meets the criteria as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. This ASU requires additional disclosures about discontinued operations and new disclosures for components of an entity that are held for sale or disposed and are individually significant but do not qualify for presentation as a discontinued operation. Early adoption is permitted for items that have not been reported as disposals or as held for sale in previously issued financial statements. The Company early adopted this standard in the second quarter of 2014. The adoption had no effect on the Company’s consolidated financial statements. | |
New Accounting Standards to be Adopted | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The effective date will be the first quarter of fiscal year 2018 using one of two retrospective application methods. The Company has not determined the potential effects on the consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, which amends ASC 718, Compensation - Stock Compensation. This ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Therefore, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The total compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The effective date will be the first quarter of fiscal year 2017. The adoption will not have a material effect on the Company’s consolidated financial statements. | |
Receivables
Receivables | 12 Months Ended | |||||||||||||
Oct. 31, 2014 | ||||||||||||||
Receivables | ||||||||||||||
Receivables | Note 4. Receivables | |||||||||||||
Retail Notes Receivable | ||||||||||||||
The Company provides and administers financing for retail purchases of new equipment manufactured by John Deere’s agriculture and turf and construction and forestry operations and used equipment taken in trade for this equipment. The Company purchases retail installment sales and loan contracts (retail notes) from John Deere. These retail notes are acquired by John Deere through John Deere equipment retail dealers. The Company also purchases and finances a limited amount of retail notes unrelated to John Deere. | ||||||||||||||
Retail notes receivable by product category at October 31 were as follows (in millions of dollars): | ||||||||||||||
2014 | 2013 | |||||||||||||
Unrestricted | Securitized | Unrestricted | Securitized | |||||||||||
Agriculture and turf equipment — new | $ | 7,951.60 | $ | 1,606.00 | $ | 7,798.00 | $ | 1,466.40 | ||||||
Agriculture and turf equipment — used | 5,649.50 | 2,368.60 | 5,440.00 | 2,135.80 | ||||||||||
Construction and forestry equipment — new | 1,395.50 | 610.3 | 1,003.60 | 509.1 | ||||||||||
Construction and forestry equipment — used | 224.6 | 86.9 | 175.3 | 98.1 | ||||||||||
Total | 15,221.20 | 4,671.80 | 14,416.90 | 4,209.40 | ||||||||||
Unearned finance income | (375.8 | ) | (55.9 | ) | (337.6 | ) | (42.2 | ) | ||||||
Retail notes receivable | $ | 14,845.40 | $ | 4,615.90 | $ | 14,079.30 | $ | 4,167.20 | ||||||
Retail notes acquired by the Company during the years ended October 31, 2014, 2013 and 2012 had an average original term (based on dollar amounts) of 54 months for each period. Historically, because of prepayments, the average actual life of retail notes has been considerably shorter than the average original term. The average actual life for retail notes liquidated in 2014, 2013 and 2012 was 30 months, 29 months and 31 months, respectively. | ||||||||||||||
Gross retail note installments at October 31 were scheduled to be received as follows (in millions of dollars): | ||||||||||||||
2014 | 2013 | |||||||||||||
Unrestricted | Securitized | Unrestricted | Securitized | |||||||||||
Due in: | ||||||||||||||
0-12 months | $ | 4,716.10 | $ | 1,878.50 | $ | 4,457.70 | $ | 1,663.40 | ||||||
13-24 months | 3,753.80 | 1,330.70 | 3,507.40 | 1,176.60 | ||||||||||
25-36 months | 3,070.50 | 880.1 | 2,849.80 | 808.2 | ||||||||||
37-48 months | 2,215.70 | 456.7 | 2,088.20 | 421.9 | ||||||||||
49-60 months | 1,243.00 | 120 | 1,283.70 | 130.4 | ||||||||||
Over 60 months | 222.1 | 5.8 | 230.1 | 8.9 | ||||||||||
Total | $ | 15,221.20 | $ | 4,671.80 | $ | 14,416.90 | $ | 4,209.40 | ||||||
Company guidelines relating to down payment requirements and contract terms on retail notes are generally as follows: | ||||||||||||||
Down | Contract | |||||||||||||
Payment | Terms | |||||||||||||
Agriculture and turf equipment (new and used): | ||||||||||||||
Seasonal payments | 10% - 30% | 3-7 years | ||||||||||||
Monthly payments | 10% - 20% | 36-84 months | ||||||||||||
Construction and forestry equipment: | ||||||||||||||
New | 10% | 48-60 months | ||||||||||||
Used | 15% | 36-48 months | ||||||||||||
During 2014, 2013 and 2012, the Company received proceeds from sales of Receivables of none, $1 million and $35 million, respectively. The Company’s maximum exposure under all Receivable and Lease recourse provisions at October 31, 2014, 2013 and 2012 was not material. The Company does not record the recourse obligations as liabilities as they are contingent liabilities that are remote at this time. However, the probable loss on Receivables and Leases that have been sold was accrued at the time of sale, and any subsequent necessary adjustments are made as part of ongoing reviews. At October 31, 2014, 2013 and 2012, the balance of all Receivables and Leases administered, but not owned by the Company, was $2 million, $6 million and $16 million, respectively. | ||||||||||||||
Finance income is recognized over the lives of the retail notes using the interest method. During 2014, the average effective yield on retail notes held by the Company was approximately 4.0 percent, compared with 4.4 percent in 2013 and 5.0 percent in 2012. Finance income on variable-rate retail notes is adjusted monthly based on fluctuations in the base rate of a specified bank. Net costs incurred in the acquisition of retail notes are deferred and recognized over the expected lives of the retail notes using the interest method. | ||||||||||||||
A portion of the finance income earned by the Company arises from financing of retail sales of John Deere equipment on which finance charges are waived or reduced by John Deere for a period from the date of the retail sale to a specified subsequent date. The Company receives compensation from John Deere equal to competitive market interest rates for periods during which finance charges have been waived or reduced. The Company computes the compensation from John Deere for waived or reduced finance charges based on the Company’s estimated funding costs, administrative and operating expenses, credit losses, and required return on equity. The financing rate following the waiver or interest reduction period is not significantly different from the compensation rate from John Deere. The portions of the Company’s finance income earned that were received from John Deere on retail notes containing waiver of finance charges or reduced rates were 24 percent, 23 percent and 23 percent in 2014, 2013 and 2012, respectively. During 2014, 2013 and 2012, the finance income earned from John Deere on retail notes containing waiver of finance charges or reduced rates was $178 million, $167 million and $163 million, respectively. | ||||||||||||||
A deposit is withheld by the Company on certain John Deere agriculture and turf equipment retail notes originating from dealers. Any subsequent retail note losses are charged against the withheld deposits. At the end of each calendar quarter, the balance of each dealer’s withholding account in excess of a specified percent (ranging from one-half to three percent based on dealer qualifications) of the total balance outstanding on retail notes originating with that dealer is remitted to the dealer. To the extent that these deposits withheld from the dealer from whom the retail note was acquired cannot absorb a loss on a retail note, it is charged against the Company’s allowance for credit losses. There is generally no withholding of dealer deposits on John Deere construction and forestry equipment retail notes. | ||||||||||||||
The Company generally requires that theft and physical damage insurance be carried on all goods leased or securing retail notes and wholesale receivables. The customer may, at the customer’s own expense, have the Company or the seller of the goods purchase this insurance or obtain it from other sources. | ||||||||||||||
Revolving Charge Accounts Receivable | ||||||||||||||
Revolving charge account income is generated primarily by three revolving credit products: John Deere Financial multi-use, PowerPlanâ and the John Deere Financial Revolving Plan. John Deere Financial multi-use is primarily used by farmers and ranchers to finance day-to-day operating expenses, such as parts and services. Merchants, including agribusinesses and dealers, offer John Deere Financial multi-use as an alternative to carrying in-house accounts receivable, and can initially sell existing balances to the Company under a recourse arrangement. John Deere Financial multi-use income includes a discount paid by merchants for transaction processing and support and finance charges paid by customers on their outstanding account balances. PowerPlanâ is primarily used by construction companies to finance day-to-day operating expenses, such as parts and services, and is otherwise similar to John Deere Financial multi-use. John Deere construction and forestry dealers offer PowerPlanâ as an alternative to carrying in-house accounts receivable, and can initially sell existing balances to the Company under a recourse arrangement. PowerPlanâ income includes a discount paid by dealers for transaction processing and support and finance charges paid by customers on their outstanding account balances. The John Deere Financial Revolving Plan is used primarily by retail customers of John Deere dealers to finance turf and utility equipment. Income includes a discount paid by dealers on most transactions and finance charges paid by customers on their outstanding account balances. Revolving charge account income is also generated through waiver of finance charges or reduced rates from sponsoring merchants. | ||||||||||||||
During 2014, 2013 and 2012, the finance income earned from John Deere on revolving charge accounts containing waiver of finance charges or reduced rates was $11 million, $11 million and $10 million, respectively. Revolving charge accounts receivable at October 31, 2014 and 2013 totaled $2,536 million and $2,535 million, respectively. Generally, account holders may pay the account balance in full at any time, or make payments over a number of months according to a payment schedule. | ||||||||||||||
Wholesale Receivables | ||||||||||||||
The Company also finances wholesale inventories of John Deere agriculture and turf equipment and construction and forestry equipment owned by dealers of those products in the form of wholesale receivables. Wholesale finance income related to these notes is generally recognized monthly based on the daily balance of wholesale receivables outstanding and the applicable effective interest rate. Interest rates vary with a bank base rate, the type of equipment financed and the balance outstanding. Substantially all wholesale receivables are secured by equipment financed or other financial securities. The average actual life for wholesale receivables is less than 12 months. Wholesale receivables at October 31, 2014 and 2013 totaled $7,919 million and $7,465 million, respectively. | ||||||||||||||
The Company purchases certain wholesale trade receivables from John Deere. These trade receivables arise from John Deere’s sales of goods to independent dealers. Under the terms of the sales to dealers, interest is primarily charged to dealers on outstanding balances, from the earlier of the date when goods are sold to retail customers by the dealer or the expiration of certain interest-free periods granted at the time of the sale to the dealer, until payment is received by the Company. Dealers cannot cancel purchases after the equipment is shipped and are responsible for payment even if the equipment is not sold to retail customers. The interest-free periods are determined based on the type of equipment sold and the time of year of the sale. These periods range from one to twelve months for most equipment. Interest-free periods may not be extended. Interest charged may not be forgiven and the past due interest rates exceed market rates. The Company receives compensation from John Deere at approximate market interest rates for these interest-free periods. The Company computes the compensation from John Deere for interest-free periods based on the Company’s estimated funding costs, administrative and operating expenses, credit losses and required return on equity. During 2014, 2013 and 2012, the compensation earned from John Deere on wholesale receivables for waiver of finance charges or reduced rates was $203 million, $198 million and $200 million, respectively. | ||||||||||||||
Financing Leases | ||||||||||||||
The Company leases agriculture and turf equipment and construction and forestry equipment directly to retail customers. At the time of accepting a lease that qualifies as a financing lease, the Company records the gross amount of lease payments receivable, estimated residual value of the leased equipment and unearned finance income. The unearned finance income is equal to the excess of the gross lease receivable plus the estimated residual value over the cost of the equipment. The unearned finance income is recognized as revenue over the lease term using the interest method. Net costs incurred in the acquisition of financing leases are deferred and recognized over the expected lives of the financing leases using the interest method. | ||||||||||||||
Financing leases receivable by product category at October 31 were as follows (in millions of dollars): | ||||||||||||||
2014 | 2013 | |||||||||||||
Agriculture and turf equipment | $ | 387 | $ | 393.2 | ||||||||||
Construction and forestry equipment | 170.8 | 154.1 | ||||||||||||
Total | 557.8 | 547.3 | ||||||||||||
Estimated residual values | 92.2 | 72.2 | ||||||||||||
Unearned finance income | (60.4 | ) | (64.2 | ) | ||||||||||
Financing leases receivable | $ | 589.6 | $ | 555.3 | ||||||||||
Initial lease terms for financing leases generally range from 4 months to 60 months. Payments on financing leases receivable at October 31 were scheduled as follows (in millions of dollars): | ||||||||||||||
2014 | 2013 | |||||||||||||
Due in: | ||||||||||||||
0-12 months | $ | 231.5 | $ | 223.9 | ||||||||||
13-24 months | 145.4 | 149.7 | ||||||||||||
25-36 months | 98.2 | 92.2 | ||||||||||||
37-48 months | 55.4 | 52.5 | ||||||||||||
Over 48 months | 27.3 | 29 | ||||||||||||
Total | $ | 557.8 | $ | 547.3 | ||||||||||
Deposits withheld from John Deere dealers and related losses on financing leases are handled in a manner similar to the procedures for retail notes. As with retail notes, there are generally no deposits withheld from dealers on financing leases related to construction and forestry equipment. In addition, a lease payment discount program, allowing reduced payments over the term of the lease, is administered in a manner similar to finance waiver on retail notes. During 2014, 2013 and 2012, the finance income earned from John Deere on financing leases containing waiver of finance charges or reduced rates was $2 million, $3 million and $2 million, respectively. | ||||||||||||||
Equipment returned to the Company upon termination of leases and held for subsequent sale or lease is recorded at the lower of net book value or estimated fair value of the equipment less cost to sell and is not depreciated. | ||||||||||||||
Concentration of Credit Risk | ||||||||||||||
Receivables have significant concentrations of credit risk in the agriculture and turf and construction and forestry sectors as shown in the previous tables. On a geographic basis, there is not a disproportionate concentration of credit risk in any area. The Company generally secures its Receivables, other than certain revolving charge accounts, by retaining as collateral a security interest in the goods associated with those Receivables or with the use of other financial securities. | ||||||||||||||
Allowance_for_Credit_Losses_an
Allowance for Credit Losses and Credit Quality of Receivables | 12 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Allowance for Credit Losses and Credit Quality of Receivables | |||||||||||||||||
Allowance for Credit Losses and Credit Quality of Receivables | Note 5. Allowance for Credit Losses and Credit Quality of Receivables | ||||||||||||||||
Delinquencies | |||||||||||||||||
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 generally resumed when the receivable becomes contractually current and collections are reasonably assured. | |||||||||||||||||
An age analysis of past due Receivables that are still accruing interest and non-performing Receivables at October 31, 2014 was as follows (in millions of dollars): | |||||||||||||||||
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 | $ | 85 | $ | 30.8 | $ | 24 | $ | 139.8 | |||||||||
Construction and forestry equipment | 53.6 | 15.6 | 7 | 76.2 | |||||||||||||
Revolving charge accounts: | |||||||||||||||||
Agriculture and turf equipment | 11.3 | 3.7 | 0.9 | 15.9 | |||||||||||||
Construction and forestry equipment | 2.4 | 1.2 | 0.3 | 3.9 | |||||||||||||
Wholesale receivables: | |||||||||||||||||
Agriculture and turf equipment | 4.1 | 3.4 | 4.5 | 12 | |||||||||||||
Construction and forestry equipment | 0.2 | 1.5 | 1.7 | ||||||||||||||
Financing leases: | |||||||||||||||||
Agriculture and turf equipment | 7.5 | 5.1 | 0.6 | 13.2 | |||||||||||||
Construction and forestry equipment | 2.5 | 0.8 | 0.2 | 3.5 | |||||||||||||
Total Receivables | $ | 166.6 | $ | 60.6 | $ | 39 | $ | 266.2 | |||||||||
Total | Total Non- | Current | Total | ||||||||||||||
Past Due | Performing | Receivables | |||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | $ | 139.8 | $ | 41.8 | $ | 17,023.90 | $ | 17,205.50 | |||||||||
Construction and forestry equipment | 76.2 | 14.3 | 2,165.30 | 2,255.80 | |||||||||||||
Revolving charge accounts: | |||||||||||||||||
Agriculture and turf equipment | 15.9 | 1.1 | 2,437.00 | 2,454.00 | |||||||||||||
Construction and forestry equipment | 3.9 | 0.1 | 77.9 | 81.9 | |||||||||||||
Wholesale receivables: | |||||||||||||||||
Agriculture and turf equipment | 12 | 1.1 | 6,961.00 | 6,974.10 | |||||||||||||
Construction and forestry equipment | 1.7 | 943.3 | 945 | ||||||||||||||
Financing leases: | |||||||||||||||||
Agriculture and turf equipment | 13.2 | 11.5 | 396 | 420.7 | |||||||||||||
Construction and forestry equipment | 3.5 | 1.3 | 164.1 | 168.9 | |||||||||||||
Total Receivables | $ | 266.2 | $ | 71.2 | $ | 30,168.50 | $ | 30,505.90 | |||||||||
An age analysis of past due Receivables that are still accruing interest and non-performing Receivables at October 31, 2013 was as follows (in millions of dollars): | |||||||||||||||||
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 | |||||||||
Allowance for Credit Losses | |||||||||||||||||
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 | |||||||||||||||||
2014 | |||||||||||||||||
Allowance: | |||||||||||||||||
Beginning of year balance | $ | 50.7 | $ | 39.7 | $ | 6.4 | $ | 14.6 | $ | 111.4 | |||||||
Provision (credit) for credit losses | 13.2 | 10.5 | 9 | (5.4 | ) | 27.3 | |||||||||||
Write-offs | (12.7 | ) | (24.6 | ) | (7.7 | ) | (.7 | ) | (45.7 | ) | |||||||
Recoveries | 5.5 | 14.3 | 0.1 | 0.3 | 20.2 | ||||||||||||
Other changes (primarily translation adjustments) | (.6 | ) | (.2 | ) | (.8 | ) | |||||||||||
End of year balance | $ | 56.1 | $ | 39.9 | $ | 7.6 | $ | 8.8 | $ | 112.4 | |||||||
Balance individually evaluated * | $ | 1.7 | $ | 0.2 | $ | 0.1 | $ | 2 | |||||||||
Receivables: | |||||||||||||||||
End of year balance | $ | 19,461.30 | $ | 2,535.90 | $ | 7,919.10 | $ | 589.6 | $ | 30,505.90 | |||||||
Balance individually evaluated * | $ | 24.5 | $ | 0.2 | $ | 1.2 | $ | 25.9 | |||||||||
* Remainder is collectively evaluated. | |||||||||||||||||
2013 | |||||||||||||||||
Allowance: | |||||||||||||||||
Beginning of year balance | $ | 56.4 | $ | 40.2 | $ | 5.9 | $ | 11.5 | $ | 114 | |||||||
Provision (credit) for credit losses | (1.9 | ) | 4 | 0.1 | 4.2 | 6.4 | |||||||||||
Write-offs | (9.4 | ) | (19.8 | ) | (.3 | ) | (1.9 | ) | (31.4 | ) | |||||||
Recoveries | 5.9 | 15.3 | 0.2 | 1.1 | 22.5 | ||||||||||||
Other changes (primarily translation adjustments) | (.3 | ) | 0.5 | (.3 | ) | (.1 | ) | ||||||||||
End of year balance | $ | 50.7 | $ | 39.7 | $ | 6.4 | $ | 14.6 | $ | 111.4 | |||||||
Balance individually evaluated * | $ | 0.1 | $ | 3.7 | $ | 3.8 | |||||||||||
Receivables: | |||||||||||||||||
End of year balance | $ | 18,246.50 | $ | 2,534.90 | $ | 7,464.70 | $ | 587.2 | $ | 28,833.30 | |||||||
Balance individually evaluated * | $ | 21.3 | $ | 0.3 | $ | 0.1 | $ | 32.3 | $ | 54 | |||||||
* Remainder is collectively evaluated. | |||||||||||||||||
2012 | |||||||||||||||||
Allowance: | |||||||||||||||||
Beginning of year balance | $ | 67.8 | $ | 39.7 | $ | 6 | $ | 12.8 | $ | 126.3 | |||||||
Provision (credit) for credit losses | (10.4 | ) | 7.9 | 0.9 | 1.4 | (.2 | ) | ||||||||||
Write-offs | (7.4 | ) | (28.8 | ) | (1.0 | ) | (3.5 | ) | (40.7 | ) | |||||||
Recoveries | 6.8 | 21.4 | 0.1 | 0.8 | 29.1 | ||||||||||||
Other changes (primarily translation adjustments) | (.4 | ) | (.1 | ) | (.5 | ) | |||||||||||
End of year balance | $ | 56.4 | $ | 40.2 | $ | 5.9 | $ | 11.5 | $ | 114 | |||||||
Balance individually evaluated * | $ | 0.5 | $ | 0.1 | $ | 0.6 | |||||||||||
Receivables: | |||||||||||||||||
End of year balance | $ | 15,728.80 | $ | 2,427.70 | $ | 6,483.10 | $ | 564.7 | $ | 25,204.30 | |||||||
Balance individually evaluated * | $ | 10.6 | $ | 0.5 | $ | 0.2 | $ | 0.3 | $ | 11.6 | |||||||
* Remainder is collectively evaluated. | |||||||||||||||||
Investments in non-performing Receivables at October 31, 2014 and 2013 were $71 million and $60 million, respectively. These Receivables as a percentage of total Receivables outstanding were .23 percent and .21 percent at October 31, 2014 and 2013, respectively. Total Receivable amounts 30 days or more past due and still accruing finance income were $266 million at October 31, 2014, compared with $233 million at October 31, 2013. These past due amounts represented .87 percent and .81 percent of total Receivables outstanding at October 31, 2014 and 2013, respectively. The allowance for credit losses represented .37 percent and .39 percent of Receivables outstanding at October 31, 2014 and 2013, respectively. In addition, at October 31, 2014 and 2013, the Company had $167 million and $174 million, respectively, of deposits primarily withheld from John Deere dealers and merchants available for potential credit losses. | |||||||||||||||||
Impaired Receivables | |||||||||||||||||
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, which are impaired, are generally classified as non-performing. | |||||||||||||||||
An analysis of impaired Receivables at October 31, 2014 and 2013 was as follows (in millions of dollars): | |||||||||||||||||
Recorded | Unpaid | Specific | Average | ||||||||||||||
Investment | Principal | Allowance | Recorded | ||||||||||||||
Balance | Investment | ||||||||||||||||
2014 * | |||||||||||||||||
Receivables with specific allowance: | |||||||||||||||||
Retail notes | $ | 7 | $ | 6.9 | $ | 1.7 | $ | 8.4 | |||||||||
Revolving charge accounts | 0.2 | 0.2 | 0.2 | 0.2 | |||||||||||||
Wholesale receivables | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||||
Total with specific allowance | 7.3 | 7.2 | 2 | 8.7 | |||||||||||||
Receivables without specific allowance: | |||||||||||||||||
Retail notes | 5.9 | 5.7 | 6.1 | ||||||||||||||
Total without specific allowance | 5.9 | 5.7 | 6.1 | ||||||||||||||
Total | $ | 13.2 | $ | 12.9 | $ | 2 | $ | 14.8 | |||||||||
Agriculture and turf | $ | 11.7 | $ | 11.4 | $ | 2 | $ | 13 | |||||||||
Construction and forestry | 1.5 | 1.5 | 1.8 | ||||||||||||||
Total | $ | 13.2 | $ | 12.9 | $ | 2 | $ | 14.8 | |||||||||
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 | |||||||||
* 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 2014, 2013 and 2012, the Company identified 66, 92 and 138 Receivable contracts, primarily operating loans and retail notes, as troubled debt restructurings with aggregate balances of $3 million, $16 million and $5 million pre-modification and $2 million, $15 million and $4 million post-modification, respectively. During these same periods, there were no significant troubled debt restructurings that subsequently defaulted and were written off. At October 31, 2014, the Company had no commitments to lend additional funds to borrowers whose accounts were modified in troubled debt restructurings. | |||||||||||||||||
Write-offs | |||||||||||||||||
Total Receivable write-offs and recoveries, by product, and as a percentage of average balances held during the year, were as follows (in millions of dollars): | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||
Write-offs: | |||||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | $ | (6.1 | ) | (.04 | )% | $ | (4.3 | ) | (.03 | )% | $ | (3.4 | ) | (.03 | )% | ||
Construction and forestry equipment | (6.6 | ) | (.33 | ) | (5.1 | ) | (.33 | ) | (4.0 | ) | (.32 | ) | |||||
Total retail notes | (12.7 | ) | (.07 | ) | (9.4 | ) | (.06 | ) | (7.4 | ) | (.05 | ) | |||||
Revolving charge accounts | (24.6 | ) | (1.11 | ) | (19.8 | ) | (.89 | ) | (28.8 | ) | (1.29 | ) | |||||
Wholesale receivables | (7.7 | ) | (.09 | ) | (.3 | ) | (.00 | ) | (1.0 | ) | (.02 | ) | |||||
Financing leases | (.5 | ) | (.09 | ) | (1.8 | ) | (.34 | ) | (1.6 | ) | (.34 | ) | |||||
Operating loans | (.2 | ) | (1.45 | ) | (.1 | ) | (.25 | ) | (1.9 | ) | (3.12 | ) | |||||
Total write-offs | (45.7 | ) | (.16 | ) | (31.4 | ) | (.12 | ) | (40.7 | ) | (.18 | ) | |||||
Recoveries: | |||||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | 3.3 | 0.02 | 3.6 | 0.03 | 3.9 | 0.03 | |||||||||||
Construction and forestry equipment | 2.2 | 0.11 | 2.3 | 0.15 | 2.9 | 0.23 | |||||||||||
Total retail notes | 5.5 | 0.03 | 5.9 | 0.04 | 6.8 | 0.05 | |||||||||||
Revolving charge accounts | 14.3 | 0.65 | 15.3 | 0.69 | 21.4 | 0.96 | |||||||||||
Wholesale receivables | 0.1 | 0 | 0.2 | 0 | 0.1 | 0 | |||||||||||
Financing leases | 0.2 | 0.04 | 0.5 | 0.09 | 0.3 | 0.06 | |||||||||||
Operating loans | 0.1 | 0.73 | 0.6 | 1.5 | 0.5 | 0.82 | |||||||||||
Total recoveries | 20.2 | 0.07 | 22.5 | 0.09 | 29.1 | 0.13 | |||||||||||
Total net write-offs | $ | (25.5 | ) | (.09 | ) | $ | (8.9 | ) | (.03 | ) | $ | (11.6 | ) | (.05 | ) | ||
Securitization_of_Receivables
Securitization of Receivables | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Securitization of Receivables | ||||||||
Securitization of Receivables | Note 6. Securitization of Receivables | |||||||
The Company, as a part of its overall funding strategy, periodically transfers certain receivables (retail notes) into VIEs that are 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 consolidated balance sheet. The securitized retail notes are recorded as “Retail notes securitized” on the consolidated balance sheet. The total restricted assets on the consolidated 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 $3,011 million and $2,626 million at October 31, 2014 and 2013, respectively. The liabilities (securitization borrowings and accounts payable and accrued expenses) of these SPEs totaled $2,942 million and $2,547 million at October 31, 2014 and 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 $368 million and $353 million at October 31, 2014 and 2013, respectively. The liabilities (securitization borrowings and accounts payable and accrued expenses) were $351 million and $338 million at October 31, 2014 and 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 conduits) 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 $1,331 million and $1,274 million at October 31, 2014 and 2013, respectively. The liabilities (securitization borrowings and accounts payable and accrued expenses) related to these conduits were $1,267 million and $1,225 million at October 31, 2014 and 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 at October 31 was as follows (in millions of dollars): | ||||||||
2014 | ||||||||
Carrying value of liabilities | $ | 1,267.10 | ||||||
Maximum exposure to loss | 1,330.80 | |||||||
The total assets of unconsolidated VIEs related to securitizations were approximately $40 billion at October 31, 2014. | ||||||||
The components of consolidated restricted assets related to secured borrowings in securitization transactions at October 31 were as follows (in millions of dollars): | ||||||||
2014 | 2013 | |||||||
Retail notes securitized | $ | 4,615.90 | $ | 4,167.20 | ||||
Allowance for credit losses | (13.6 | ) | (14.1 | ) | ||||
Other assets | 107.6 | 100.2 | ||||||
Total restricted securitized assets | $ | 4,709.90 | $ | 4,253.30 | ||||
The components of consolidated secured borrowings and other liabilities related to securitizations at October 31 were as follows (in millions of dollars): | ||||||||
2014 | 2013 | |||||||
Securitization borrowings | $ | 4,558.50 | $ | 4,109.10 | ||||
Accounts payable and accrued expenses | 1.5 | 1.3 | ||||||
Total liabilities related to restricted securitized assets | $ | 4,560.00 | $ | 4,110.40 | ||||
The secured borrowings related to these restricted securitized 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 segregated collection account until immediately prior to the time payment is required to the secured creditors. At October 31, 2014, the maximum remaining term of all restricted securitized retail notes was approximately six years. | ||||||||
Equipment_on_Operating_Leases
Equipment on Operating Leases | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Equipment on Operating Leases | ||||||||
Equipment on Operating Leases | Note 7. Equipment on Operating Leases | |||||||
Operating leases arise primarily from the leasing of John Deere equipment to retail customers. Rental payments applicable to equipment on operating leases are recorded as income on a straight-line method over the lease terms. Operating lease assets are recorded at cost and depreciated to their estimated residual value generally on a straight-line method over the terms of the leases. Residual values represent estimates of the value of the leased assets at the end of the contract terms and are initially determined based upon appraisals and estimates. The Company evaluates the carrying value of its operating lease assets and tests for impairment when events or circumstances necessitate the evaluation. Generally, impairment is determined to exist if the undiscounted expected future cash flows from the operating leases are lower than the carrying value of the leased assets. During 2014, the Company recorded impairment losses on operating leases of $3 million. There were no significant impairment losses recorded during 2013 or 2012. Operating lease impairments are included in administrative and operating expenses on the statement of consolidated income. | ||||||||
The cost of equipment on operating leases by product category at October 31 was as follows (in millions of dollars): | ||||||||
2014 | 2013 | |||||||
Agriculture and turf equipment | $ | 2,229.90 | $ | 1,706.20 | ||||
Construction and forestry equipment | 819.6 | 542.1 | ||||||
Total | 3,049.50 | 2,248.30 | ||||||
Accumulated depreciation | (459.2 | ) | (376.2 | ) | ||||
Equipment on operating leases — net | $ | 2,590.30 | $ | 1,872.10 | ||||
Initial lease terms for equipment on operating leases generally range from 4 months to 60 months. Rental payments for equipment on operating leases at October 31 were scheduled as follows (in millions of dollars): | ||||||||
2014 | 2013 | |||||||
Due in: | ||||||||
0-12 months | $ | 372.7 | $ | 284 | ||||
13-24 months | 235.7 | 176.6 | ||||||
25-36 months | 115.3 | 86.1 | ||||||
37-48 months | 52.2 | 42.3 | ||||||
Over 48 months | 10.3 | 5.6 | ||||||
Total | $ | 786.2 | $ | 594.6 | ||||
Deposits withheld from John Deere dealers and related losses on operating leases are handled in a manner similar to the procedures for retail notes. There are no deposits withheld from dealers on operating leases related to construction and forestry equipment. In addition, a lease payment discount program, allowing reduced payments over the term of the lease, is administered in a manner similar to finance waivers on retail notes. During 2014, 2013 and 2012, the operating lease revenue earned from John Deere was $12 million, $8 million and $6 million, respectively. | ||||||||
Equipment returned to the Company upon termination of leases and held for subsequent sale or lease is recorded at the lower of net book value or estimated fair value of the equipment less cost to sell and is not depreciated. | ||||||||
Past due balances of operating leases represent the total balance held (net book value plus accrued lease payments) and still accruing finance income with any payment amounts 30 days or more past the contractual payment due date. These amounts were $44 million and $30 million at October 31, 2014 and 2013, respectively. | ||||||||
ShortTerm_Borrowings
Short-Term Borrowings | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Short-Term Borrowings | ||||||||
Short-Term Borrowings | Note 8. Short-Term Borrowings | |||||||
Short-term borrowings of the Company at October 31 consisted of the following (in millions of dollars): | ||||||||
2014 | 2013 | |||||||
Commercial paper and other notes payable | $ | 2,172.80 | $ | 2,768.50 | ||||
Securitization borrowings | 4,558.50 | 4,109.10 | ||||||
John Deere | 2,052.20 | 2,234.10 | ||||||
Current maturities of long-term borrowings | 3,899.00 | * | 3,602.20 | * | ||||
Total | $ | 12,682.50 | $ | 12,713.90 | ||||
* Includes unamortized fair value adjustments related to interest rate swaps. | ||||||||
Securitization borrowings are secured by retail notes securitized on the balance sheet (see Note 6). Although these securitization borrowings are classified as short-term since payment is required if the retail notes are liquidated early, the payment schedule for these borrowings of $4,559 million at October 31, 2014 based on the expected liquidations of the retail notes in millions of dollars is as follows: 2015 - $2,383, 2016 - $1,342, 2017 - $636, 2018 - $176, 2019 - $21 and 2020 - $1. The Company’s short-term debt also includes amounts borrowed from John Deere. The Company pays interest on a monthly basis to John Deere for these borrowings based on a market rate. The weighted-average interest rate on total short-term borrowings, excluding current maturities of long-term borrowings, at October 31, 2014 and 2013, was .6 percent. | ||||||||
Lines of credit available from U.S. and foreign banks were $6,027 million at October 31, 2014. Some of these credit lines are available to both the Capital Corporation and Deere & Company. At October 31, 2014, $3,367 million of these worldwide lines of credit were unused. For the purpose of computing unused credit lines, commercial paper and short-term bank borrowings, excluding secured borrowings and the current portion of long-term borrowings, of the Capital Corporation and John Deere were primarily considered to constitute utilization. Included in the above lines of credit were long-term credit facility agreements for $2,500 million, expiring in April 2018, and $2,500 million, expiring in April 2019. The agreements are mutually extendable and the annual facility fees are not significant. These credit agreements require the Capital Corporation to maintain its consolidated ratio of earnings to fixed charges at not less than 1.05 to 1 for each fiscal quarter and the ratio of senior debt, excluding securitization indebtedness, to capital base (total subordinated debt and stockholder’s equity excluding accumulated other comprehensive income (loss)) at not more than 11 to 1 at the end of any fiscal quarter. “Senior debt” consists of the Capital Corporation’s total interest-bearing obligations, excluding subordinated debt and certain securitization indebtedness, but including borrowings from John Deere. All of these requirements of the credit agreements have been met during the periods included in the consolidated financial statements. The facility fees on these lines of credit are divided between Deere & Company and the Capital Corporation based on the proportion of their respective forecasted liquidity requirements. | ||||||||
Deere & Company has an agreement with John Deere Capital Corporation pursuant to which it has agreed to continue to own, directly or through one or more wholly-owned subsidiaries, at least 51 percent of the voting shares of capital stock of John Deere Capital Corporation and to maintain the Capital Corporation’s consolidated tangible net worth at not less than $50 million. This agreement also obligates Deere & Company to make payments to the Capital Corporation such that its consolidated ratio of earnings to fixed charges is not less than 1.05 to 1 for each fiscal quarter. Deere & Company’s obligations to make payments to the Capital Corporation under the agreement are independent of whether the Capital Corporation is in default on its indebtedness, obligations or other liabilities. Further, Deere & Company’s obligations under the agreement are not measured by the amount of the Capital Corporation’s indebtedness, obligations or other liabilities. Deere & Company’s obligations to make payments under this agreement are expressly stated not to be a guaranty of any specific indebtedness, obligation or liability of the Capital Corporation and are enforceable only by or in the name of John Deere Capital Corporation. No payments were required under this agreement during the periods included in the consolidated financial statements. | ||||||||
LongTerm_Borrowings
Long-Term Borrowings | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Long-Term Borrowings | ||||||||
Long-Term Borrowings | Note 9. Long-Term Borrowings | |||||||
Long-term borrowings of the Company at October 31 consisted of the following (in millions of dollars): | ||||||||
2014 | 2013 | |||||||
Senior Debt: | ||||||||
Medium-term notes due 2015-2024 (principal $16,375 - 2014, $13,447 - 2013): | $ | 16,573.00 | * | $ | 13,693.40 | * | ||
Average interest rate of 1.1% - 2014 and 2013 | ||||||||
2.75% Senior notes due 2022 ($500 principal): | 498.1 | * | 491.1 | * | ||||
Swapped $500 to variable interest rate of .9% - 2014 and 2013 | ||||||||
Other notes | 0.2 | 25.1 | ||||||
Total senior debt | 17,071.30 | 14,209.60 | ||||||
Unamortized debt discount | (15.0 | ) | (14.5 | ) | ||||
Total ** | $ | 17,056.30 | $ | 14,195.10 | ||||
* Includes unamortized fair value adjustments related to interest rate swaps. | ||||||||
** All interest rates are as of year-end. | ||||||||
The approximate principal amounts of long-term borrowings maturing in each of the next five years, in millions of dollars, are as follows: 2015 - $3,899, 2016 - $4,496, 2017 - $3,650, 2018 - $2,678 and 2019 - $2,528. | ||||||||
Leases
Leases | 12 Months Ended |
Oct. 31, 2014 | |
Leases | |
Leases | Note 10. Leases |
Total rental expense for operating leases was $3 million, $2 million and $4 million for 2014, 2013 and 2012, respectively. At October 31, 2014, future minimum lease payments under operating leases amounted to $5 million as follows (in millions of dollars): 2015 - $2, 2016 - $1, 2017 - $1 and 2018 - $1. | |
Capital_Stock
Capital Stock | 12 Months Ended |
Oct. 31, 2014 | |
Capital Stock | |
Capital Stock | Note 11. Capital Stock |
All of John Deere Capital Corporation’s common stock is owned by JDFS, a wholly-owned finance holding subsidiary of Deere & Company. No shares of common stock of John Deere Capital Corporation were reserved for officers or employees or for options, warrants, conversions or other rights at October 31, 2014 or 2013. At October 31, 2014 and 2013, John Deere Capital Corporation had authorized, but not issued, 10,000 shares of $1 par value preferred stock. In addition, in 2013, Deere & Company increased its investment in JDFS by $50 million. In turn, JDFS increased its investment in the Capital Corporation by the same amount. | |
Dividends
Dividends | 12 Months Ended |
Oct. 31, 2014 | |
Dividends | |
Dividends | Note 12. Dividends |
In 2014 and 2013, the Capital Corporation declared and paid cash dividends of $140 million and $165 million, respectively, to JDFS. In each case, JDFS paid comparable dividends to Deere & Company. The Capital Corporation did not declare or pay cash dividends to JDFS in 2012. | |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefits | 12 Months Ended |
Oct. 31, 2014 | |
Pension and Other Postretirement Benefits | |
Pension and Other Postretirement Benefits | Note 13. Pension and Other Postretirement Benefits |
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 $6.4 million in 2014, $8.7 million in 2013 and $5.6 million in 2012. 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 $8.4 million in 2014, $11.5 million in 2013 and $7.9 million in 2012. Further disclosure for these plans is included in the notes to the Deere & Company 2014 Annual Report on Form 10-K. | |
Stock_Option_Awards
Stock Option Awards | 12 Months Ended |
Oct. 31, 2014 | |
Stock Option Awards | |
Stock Option Awards | Note 14. Stock Option Awards |
Certain employees of the Company participate in Deere & Company share-based compensation plans. During 2014, 2013 and 2012, the total share-based compensation expense was $5.3 million, $4.9 million and $5.0 million, respectively, with an income tax benefit recognized in net income of $2.0 million, $1.8 million and $1.8 million, respectively. Further disclosure for these plans is included in the notes to the Deere & Company 2014 Annual Report on Form 10-K. | |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||
Oct. 31, 2014 | ||||||||||||||
Income Taxes | ||||||||||||||
Income Taxes | Note 15. Income Taxes | |||||||||||||
The taxable income of the Company is included in the consolidated U.S. income tax return of Deere & Company. Provisions for income taxes are made generally as if John Deere Capital Corporation and each of its subsidiaries filed separate income tax returns. | ||||||||||||||
The provision for income taxes by taxing jurisdiction and by significant component consisted of the following (in millions of dollars): | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Current: | ||||||||||||||
U.S.: | ||||||||||||||
Federal | $ | 274.4 | $ | 174.6 | $ | 173.6 | ||||||||
State | 7.9 | 6.8 | 10.1 | |||||||||||
Foreign | 21.2 | 32.6 | 34 | |||||||||||
Total current | 303.5 | 214 | 217.7 | |||||||||||
Deferred: | ||||||||||||||
U.S.: | ||||||||||||||
Federal | (33.7 | ) | 42.4 | 4.4 | ||||||||||
State | 0.6 | 0.8 | 1.6 | |||||||||||
Foreign | (9.8 | ) | 1.2 | (5.9 | ) | |||||||||
Total deferred | (42.9 | ) | 44.4 | 0.1 | ||||||||||
Provision for income taxes | $ | 260.6 | $ | 258.4 | $ | 217.8 | ||||||||
A comparison of the statutory and effective income tax provision and reasons for related differences follows (in millions of dollars): | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
U.S. federal income tax provision at a statutory rate of 35 percent | $ | 281 | $ | 254 | $ | 209.7 | ||||||||
Increase (decrease) resulting from: | ||||||||||||||
Municipal lease income not taxable | (1.4 | ) | (1.4 | ) | (1.5 | ) | ||||||||
Tax rates on foreign earnings | (8.0 | ) | (7.2 | ) | (6.3 | ) | ||||||||
Foreign tax benefit | (23.1 | ) | ||||||||||||
State and local income taxes, net of federal income tax benefit | 5.5 | 4.9 | 7.6 | |||||||||||
Other — net | 6.6 | 8.1 | 8.3 | |||||||||||
Provision for income taxes | $ | 260.6 | $ | 258.4 | $ | 217.8 | ||||||||
At October 31, 2014, accumulated earnings in certain subsidiaries outside the U.S. totaled $303.6 million for which no provision for U.S. income taxes or foreign withholding taxes has been made, because it is expected that such earnings will be reinvested outside the U.S. indefinitely. Determination of the amount of unrecognized deferred tax liability on these unremitted earnings is not practicable. At October 31, 2014, the amount of cash and cash equivalents held by these foreign subsidiaries was $56.4 million. | ||||||||||||||
Deferred income taxes arise because there are certain items that are treated differently for financial accounting than for income tax reporting purposes. An analysis of deferred income tax assets and liabilities at October 31 was as follows (in millions of dollars): | ||||||||||||||
2014 | 2013 | |||||||||||||
Deferred | Deferred | Deferred | Deferred | |||||||||||
Tax | Tax | Tax | Tax | |||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||
Lease transactions | $ | 381.2 | $ | 406.2 | ||||||||||
Tax over book depreciation | 5 | 2.9 | ||||||||||||
Deferred retail note finance income | 4.1 | 3.9 | ||||||||||||
Allowance for credit losses | $ | 46 | $ | 43.1 | ||||||||||
Unrealized gain/loss on derivatives | 0.3 | 2 | ||||||||||||
Accrual for retirement and other benefits | 25.5 | 22.2 | ||||||||||||
Federal taxes on deferred state tax deductions | 13.6 | 12.6 | ||||||||||||
Tax loss and tax credit carryforwards | 5.3 | 5.4 | ||||||||||||
Miscellaneous accruals and other | 18.6 | 5.3 | ||||||||||||
Less valuation allowances | (1.1 | ) | (.8 | ) | ||||||||||
Deferred income tax assets and liabilities | $ | 108.2 | $ | 390.3 | $ | 89.8 | $ | 413 | ||||||
At October 31, 2014, certain tax loss and tax credit carryforwards of $5.3 million were available, with $4.4 million expiring from 2015 through 2034 and $.9 million with an indefinite carryforward period. | ||||||||||||||
A reconciliation of the total amounts of unrecognized tax benefits at October 31 was as follows (in millions of dollars): | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Beginning of year balance | $ | 33.6 | $ | 32.5 | $ | 30 | ||||||||
Increases to tax positions taken during the current year | 12.1 | 11.8 | 12 | |||||||||||
Increases to tax positions taken during prior years | 0.7 | 1.1 | 0.8 | |||||||||||
Decreases to tax positions taken during prior years | (7.0 | ) | (7.8 | ) | (6.6 | ) | ||||||||
Decreases due to lapse of statute of limitations | (3.2 | ) | (4.0 | ) | (3.6 | ) | ||||||||
Foreign exchange | (.1 | ) | ||||||||||||
End of year balance | $ | 36.2 | $ | 33.6 | $ | 32.5 | ||||||||
The amount of unrecognized tax benefits at October 31, 2014 that would affect the effective tax rate if the tax benefits were recognized was $20.2 million. The remaining liability was related to tax positions for which there are offsetting tax receivables, or the uncertainty was only related to timing. The Company expects that any reasonably possible change in the amounts of unrecognized tax benefits in the next twelve months would not be significant. | ||||||||||||||
The Company files its tax returns according to the tax laws of the jurisdictions in which it operates, which includes the U.S. federal jurisdiction, and various state and foreign jurisdictions. The Company is included in the consolidated U.S. income tax return and various state returns of Deere & Company. The U.S. Internal Revenue Service has completed the examination of Deere & Company’s federal income tax returns for periods prior to 2009. The years’ 2009 through 2012 federal income tax returns are currently under examination. Various state and foreign income tax returns also remain subject to examination by taxing authorities. | ||||||||||||||
The Company’s policy is to recognize interest related to income taxes in interest expense and other income, and recognize penalties in administrative and operating expenses. During 2014, 2013 and 2012, the total amount of expense from interest and penalties was $1.7 million, $.4 million and $.2 million and the interest income was not material for any of the periods. At October 31, 2014 and 2013, the liability for accrued interest and penalties totaled $14.4 million and $12.8 million, respectively. | ||||||||||||||
Other_Income_and_Administrativ
Other Income and Administrative and Operating Expenses | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
Other Income and Administrative and Operating Expenses | |||||||||||
Other Income and Administrative and Operating Expenses | Note 16. Other Income and Administrative and Operating Expenses | ||||||||||
The major components of other income and administrative and operating expenses were as follows (in millions of dollars): | |||||||||||
2014 | 2013 | 2012 | |||||||||
Other income - net | |||||||||||
Fees from John Deere | $ | 43.2 | $ | 45.5 | $ | 43 | |||||
Other | 27.1 | 25.7 | 25.1 | ||||||||
Total | $ | 70.3 | $ | 71.2 | $ | 68.1 | |||||
Administrative and operating expenses | |||||||||||
Compensation and benefits | $ | 261.2 | $ | 253.2 | $ | 209.6 | |||||
Other | 149.4 | 124.1 | 129.7 | ||||||||
Total | $ | 410.6 | $ | 377.3 | $ | 339.3 | |||||
Cash_Flow_Information
Cash Flow Information | 12 Months Ended |
Oct. 31, 2014 | |
Cash Flow Information | |
Cash Flow Information | Note 17. Cash Flow Information |
For purposes of the statement of consolidated cash flows, the Company considers investments with purchased maturities of three months or less to be cash equivalents. Substantially all of the Company’s short-term borrowings, excluding the securitization borrowings and current maturities of long-term borrowings, mature or may require payment within three months or less. | |
Cash payments by the Company for interest in 2014, 2013 and 2012 were $315 million, $364 million and $506 million, respectively. Cash payments for income taxes during these same periods were $301 million, $228 million and $204 million, respectively. | |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 31, 2014 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 18. Commitments and Contingencies |
At October 31, 2014, John Deere Financial Inc., the John Deere finance subsidiary in Canada, had $442 million of commercial paper, $469 million of medium-term notes outstanding, and a fair value liability of $8 million for derivatives, prior to considering applicable netting provisions, with a notional amount of $2,364 million that were guaranteed by John Deere Capital Corporation. The weighted average interest rate on the medium-term notes at October 31, 2014 was 4.8 percent with a maximum remaining maturity of approximately one year. | |
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 $1,565 million at October 31, 2014. The weighted average interest rate on the debt at October 31, 2014 was 2.3 percent with a maximum remaining maturity of approximately five 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 $8.0 billion at October 31, 2014. The amount of unused commitments to extend credit to customers was $27.2 billion at October 31, 2014. A significant portion of these commitments is not expected to be fully drawn upon; therefore, the total commitment amounts 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 October 31, 2014, the Company had restricted other assets of approximately $33 million. In addition, see Note 6 for 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 retail credit. The Company believes the reasonably possible range of losses for these unresolved legal actions in addition to the amounts accrued would not have a material effect on its consolidated financial statements. | |
Other_Comprehensive_Income_Ite
Other Comprehensive Income Items | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
Other Comprehensive Income Items | |||||||||||
Other Comprehensive Income Items | Note 19. Other Comprehensive Income Items | ||||||||||
The after-tax changes in accumulated other comprehensive income (loss) were as follows (in millions of dollars): | |||||||||||
2014 | 2013 | 2012 | |||||||||
Cumulative translation adjustment: | |||||||||||
Beginning of year balance | $ | 39.5 | $ | 33.2 | $ | 62.4 | |||||
Current period activity | (33.5 | ) | 6.3 | (29.2 | ) | ||||||
End of year balance | $ | 6 | $ | 39.5 | $ | 33.2 | |||||
Unrealized gain (loss) on derivatives: | |||||||||||
Beginning of year balance | $ | (3.9 | ) | $ | (11.6 | ) | $ | (8.3 | ) | ||
Current period activity | 3.3 | 7.7 | (3.3 | ) | |||||||
End of year balance | $ | (.6 | ) | $ | (3.9 | ) | $ | (11.6 | ) | ||
Following are amounts recorded in and reclassifications out of other comprehensive income (loss) and the income tax effects (in millions of dollars): | |||||||||||
Before | Tax | After | |||||||||
Tax | (Expense) | Tax | |||||||||
Amount | Credit | Amount | |||||||||
2014 | |||||||||||
Cumulative translation adjustment | $ | (33.5 | ) | $ | (33.5 | ) | |||||
Unrealized gain (loss) on derivatives: | |||||||||||
Unrealized hedging loss | (10.2 | ) | $ | 3.6 | (6.6 | ) | |||||
Reclassification of realized (gain) loss to: | |||||||||||
Interest rate contracts — Interest expense | 9.8 | (3.5 | ) | 6.3 | |||||||
Foreign exchange contracts — Administrative and operating expenses | 5.5 | (1.9 | ) | 3.6 | |||||||
Net unrealized gain on derivatives | 5.1 | (1.8 | ) | 3.3 | |||||||
Total other comprehensive income (loss) | $ | (28.4 | ) | $ | (1.8 | ) | $ | (30.2 | ) | ||
2013 | |||||||||||
Cumulative translation adjustment | $ | 6.3 | $ | 6.3 | |||||||
Unrealized gain (loss) on derivatives: | |||||||||||
Unrealized hedging gain | 33.3 | $ | (11.6 | ) | 21.7 | ||||||
Reclassification of realized (gain) loss to: | |||||||||||
Interest rate contracts — Interest expense | 17.8 | (6.2 | ) | 11.6 | |||||||
Foreign exchange contracts — Administrative and operating expenses | (39.3 | ) | 13.7 | (25.6 | ) | ||||||
Net unrealized gain on derivatives | 11.8 | (4.1 | ) | 7.7 | |||||||
Total other comprehensive income (loss) | $ | 18.1 | $ | (4.1 | ) | $ | 14 | ||||
2012 | |||||||||||
Cumulative translation adjustment | $ | (29.2 | ) | $ | (29.2 | ) | |||||
Unrealized gain (loss) on derivatives: | |||||||||||
Unrealized hedging loss | (60.5 | ) | $ | 21.4 | (39.1 | ) | |||||
Reclassification of realized (gain) loss to: | |||||||||||
Interest rate contracts — Interest expense | 13.1 | (4.6 | ) | 8.5 | |||||||
Foreign exchange contracts — Administrative and operating expenses | 42.3 | (15.0 | ) | 27.3 | |||||||
Net unrealized loss on derivatives | (5.1 | ) | 1.8 | (3.3 | ) | ||||||
Total other comprehensive income (loss) | $ | (34.3 | ) | $ | 1.8 | $ | (32.5 | ) | |||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Fair Value Measurements | Note 20. Fair Value Measurements | ||||||||||||||||
The fair values of financial instruments that do not approximate the carrying values at October 31 were as follows (in millions of dollars): | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value * | Value | Value * | ||||||||||||||
Receivables financed - net | $ | 25,791.20 | $ | 25,716.90 | $ | 24,568.80 | $ | 24,458.90 | |||||||||
Retail notes securitized - net | 4,602.30 | 4,573.40 | 4,153.10 | 4,124.40 | |||||||||||||
Securitization borrowings | 4,558.50 | 4,561.60 | 4,109.10 | 4,112.80 | |||||||||||||
Current maturities of long-term borrowings | 3,899.00 | 3,910.10 | 3,602.20 | 3,623.10 | |||||||||||||
Long-term borrowings | 17,056.30 | 17,212.90 | 14,195.10 | 14,331.30 | |||||||||||||
* 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 include adjustments related to fair value hedges. | |||||||||||||||||
Assets and liabilities measured at October 31 at fair value as Level 2 measurements on a recurring basis were as follows (in millions of dollars): | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Receivables from John Deere | |||||||||||||||||
Derivatives: | |||||||||||||||||
Interest rate contracts | $ | 183.7 | $ | 175.5 | |||||||||||||
Cross-currency interest rate contracts | 2.8 | 1.1 | |||||||||||||||
Other assets | |||||||||||||||||
Derivatives: | |||||||||||||||||
Interest rate contracts | 117.3 | 156.8 | |||||||||||||||
Foreign exchange contracts | 3.1 | 1 | |||||||||||||||
Cross-currency interest rate contracts | 0.1 | ||||||||||||||||
Total assets * | $ | 306.9 | $ | 334.5 | |||||||||||||
Other payables to John Deere | |||||||||||||||||
Derivatives: | |||||||||||||||||
Interest rate contracts | $ | 52.2 | $ | 84.8 | |||||||||||||
Cross-currency interest rate contracts | 1.1 | ||||||||||||||||
Accounts payable and accrued expenses | |||||||||||||||||
Derivatives: | |||||||||||||||||
Interest rate contracts | 23 | 29.9 | |||||||||||||||
Foreign exchange contracts | 8.6 | 15.8 | |||||||||||||||
Cross-currency interest rate contracts | 16 | ||||||||||||||||
Total liabilities | $ | 83.8 | $ | 147.6 | |||||||||||||
* Excluded from this table were 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 at October 31 were as follows (in millions of dollars): | |||||||||||||||||
Fair Value | (Gains) / Losses | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2012 | |||||||||||||
Receivables: | |||||||||||||||||
Retail notes | $ | 5.3 | $ | 1.7 | |||||||||||||
Revolving charge accounts | 0.2 | $ | 0.5 | ||||||||||||||
Wholesale receivables | 0.1 | ||||||||||||||||
Operating loans | $ | 14.3 | (3.7 | ) | $ | 3.7 | |||||||||||
Total Receivables | $ | 5.3 | $ | 14.3 | $ | (1.8 | ) | $ | 3.7 | $ | 0.6 | ||||||
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 | 12 Months Ended | |||||||||||||
Oct. 31, 2014 | ||||||||||||||
Derivative Instruments | ||||||||||||||
Derivative Instruments | Note 21. Derivative Instruments | |||||||||||||
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 October 31, 2014 and 2013 were $3,050 million and $3,100 million, respectively. The total notional amount of the cross-currency interest rate contracts was none and $746 million at October 31, 2014 and 2013, 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 years 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 October 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 $4 million after-tax. These contracts mature in up to 37 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 the receive-fixed/pay-variable interest rate contracts at October 31, 2014 and 2013 were $8,228 million and $6,864 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. The ineffective portions were a loss of $2.0 million and a gain of $.2 million during 2014 and 2013, respectively. The cash flows from these contracts were recorded in operating activities in the statement of consolidated cash flow. | ||||||||||||||
The gains (losses) on these contracts and the underlying borrowings recorded in interest expense were as follows (in millions of dollars): | ||||||||||||||
2014 | 2013 | |||||||||||||
Interest rate contracts * | $ | (12.8 | ) | $ | (237.5 | ) | ||||||||
Borrowings ** | 10.8 | 237.7 | ||||||||||||
* Includes changes in fair value of interest rate contracts excluding net accrued interest income of $161.0 million and $146.6 million during 2014 and 2013, respectively. | ||||||||||||||
** Includes adjustments for fair values of hedged borrowings excluding accrued interest expense of $248.0 million and $237.9 million during 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 the interest rate swaps at October 31, 2014 and 2013 were $3,076 million and $2,950 million, the foreign exchange contracts were $1,364 million and $1,339 million, and the cross-currency interest rate contracts were $98 million and $85 million, respectively. At October 31, 2014 and 2013, there were also $1,703 million and $1,641 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 at October 31 were as follows (in millions of dollars): | ||||||||||||||
2014 | 2013 | |||||||||||||
Receivables from John Deere | ||||||||||||||
Designated as hedging instruments: | ||||||||||||||
Interest rate contracts | $ | 148.1 | $ | 144.3 | ||||||||||
Not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 35.6 | 31.2 | ||||||||||||
Cross-currency interest rate contracts | 2.8 | 1.1 | ||||||||||||
Total not designated | 38.4 | 32.3 | ||||||||||||
Other Assets | ||||||||||||||
Designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 107.5 | 140.5 | ||||||||||||
Not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 9.8 | 16.3 | ||||||||||||
Foreign exchange contracts | 3.1 | 1 | ||||||||||||
Cross-currency interest rate contracts | 0.1 | |||||||||||||
Total not designated | 12.9 | 17.4 | ||||||||||||
Total derivatives | $ | 306.9 | $ | 334.5 | ||||||||||
Other Payables to John Deere | ||||||||||||||
Designated as hedging instruments: | ||||||||||||||
Interest rate contracts | $ | 35.3 | $ | 71 | ||||||||||
Cross-currency interest rate contracts | 0.4 | |||||||||||||
Total designated | 35.3 | 71.4 | ||||||||||||
Not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 16.9 | 13.8 | ||||||||||||
Cross-currency interest rate contracts | 0.7 | |||||||||||||
Total not designated | 16.9 | 14.5 | ||||||||||||
Accounts Payable and Accrued Expenses | ||||||||||||||
Designated as hedging instruments: | ||||||||||||||
Cross-currency interest rate contracts | 16 | |||||||||||||
Not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 23 | 29.9 | ||||||||||||
Foreign exchange contracts | 8.6 | 15.8 | ||||||||||||
Total not designated | 31.6 | 45.7 | ||||||||||||
Total derivatives | $ | 83.8 | $ | 147.6 | ||||||||||
The classifications 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): | ||||||||||||||
Expense or OCI | 2014 | 2013 | 2012 | |||||||||||
Classification | ||||||||||||||
Fair Value Hedges | ||||||||||||||
Interest rate contracts | Interest expense | $ | 148.2 | $ | (90.9 | ) | $ | 332.4 | ||||||
Cash Flow Hedges | ||||||||||||||
Recognized in OCI | ||||||||||||||
(Effective Portion): | ||||||||||||||
Interest rate contracts | OCI (pretax) * | (6.1 | ) | (14.6 | ) | (22.1 | ) | |||||||
Foreign exchange contracts | OCI (pretax) * | (4.1 | ) | 47.9 | (38.4 | ) | ||||||||
Reclassified from OCI | ||||||||||||||
(Effective Portion): | ||||||||||||||
Interest rate contracts | Interest expense * | (9.8 | ) | (17.8 | ) | (13.1 | ) | |||||||
Foreign exchange contracts | Administrative and operating expenses * | (5.5 | ) | 39.3 | (42.3 | ) | ||||||||
Recognized Directly in Income | ||||||||||||||
(Ineffective Portion) | ** | ** | ** | |||||||||||
Not Designated as Hedges | ||||||||||||||
Interest rate contracts | Interest expense * | $ | 5 | $ | (4.5 | ) | $ | (8.6 | ) | |||||
Foreign exchange contracts | Administrative and operating expenses * | 52.6 | 20.8 | 7.7 | ||||||||||
Total not designated | $ | 57.6 | $ | 16.3 | $ | (.9 | ) | |||||||
* Includes interest and foreign exchange gains (losses) from cross-currency interest rate contracts. | ||||||||||||||
** The amounts are 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 the Company recognized on these affiliate party transactions were gains of $146 million and $281 million during 2014 and 2012, respectively, and a loss of $100 million during 2013. | ||||||||||||||
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 unrelated external counterparties contain credit support provisions that may require the Company to post collateral based on the size of the net liability positions and credit ratings. At October 31, 2014 and 2013, there were no aggregate liability positions for derivatives with credit-risk-related contingent features. If the credit-risk-related contingent features were triggered, the Company would be required to post collateral up to 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, the credit default swap spread of the counterparty and 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 early termination. The maximum amount of loss that the Company would incur on derivatives transacted directly with unrelated external counterparties, if the counterparties to those derivative transactions fail to meet their obligations, not considering collateral received or netting arrangements, was the gross 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 at October 31, 2014 and 2013. | ||||||||||||||
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 $8 million and $17 million as of October 31, 2014 and 2013, respectively. | ||||||||||||||
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): | ||||||||||||||
2014 | ||||||||||||||
Derivatives: | Gross Amounts | Netting | Collateral | Net Amount | ||||||||||
Recognized | Arrangements | Received | ||||||||||||
Assets | ||||||||||||||
External | $ | 120.4 | $ | (24.3 | ) | $ | 96.1 | |||||||
John Deere | 186.5 | (50.4 | ) | 136.1 | ||||||||||
Liabilities | ||||||||||||||
External | 31.6 | (24.3 | ) | 7.3 | ||||||||||
John Deere | 52.2 | (50.4 | ) | 1.8 | ||||||||||
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 | ||||||||||
Geographic_Area_Information
Geographic Area Information | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
Geographic Area Information | |||||||||||
Geographic Area Information | Note 22. Geographic Area Information | ||||||||||
Based on the way the operations are managed and evaluated by management and materiality considerations, the Company is viewed as one operating segment. However, geographic area information for revenues, operating profit, which is income of consolidated group before income taxes plus equity in income of unconsolidated affiliate, and Receivables attributed to the U.S. and countries outside the U.S. is disclosed below. No individual foreign country’s revenues, operating profit or Receivables were material for disclosure purposes. | |||||||||||
Geographic area information as of and for the years ended October 31, 2014, 2013 and 2012 is presented below (in millions of dollars): | |||||||||||
2014 | 2013 | 2012 | |||||||||
Revenues: | |||||||||||
U.S. | $ | 1,646.00 | $ | 1,528.70 | $ | 1,445.60 | |||||
Outside the U.S. | 249.8 | 238.8 | 229 | ||||||||
Total | $ | 1,895.80 | $ | 1,767.50 | $ | 1,674.60 | |||||
Operating profit: | |||||||||||
U.S. | $ | 682.2 | $ | 605.7 | $ | 494.2 | |||||
Outside the U.S. | 122.6 | 121.2 | 106.3 | ||||||||
Total | $ | 804.8 | $ | 726.9 | $ | 600.5 | |||||
Receivables: | |||||||||||
U.S. | $ | 26,570.00 | $ | 24,895.10 | $ | 21,553.90 | |||||
Outside the U.S. | 3,935.90 | 3,938.20 | 3,650.40 | ||||||||
Total | $ | 30,505.90 | $ | 28,833.30 | $ | 25,204.30 | |||||
Unconsolidated_Affiliated_Comp
Unconsolidated Affiliated Company | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
Unconsolidated Affiliated Company | |||||||||||
Unconsolidated Affiliated Company | Note 23. Unconsolidated Affiliated Company | ||||||||||
The Capital Corporation’s investment in an unconsolidated affiliated company consists of a 50% ownership in John Deere Financial S.A.S., a joint venture in France that primarily offers lease financing to customers. The Capital Corporation does not control the joint venture and accounts for its investment in the joint venture on the equity basis. The Company’s share of the income or loss of this joint venture is reported in the consolidated income statement under “Equity in income of unconsolidated affiliate.” The investment in this joint venture is reported in the consolidated balance sheet under “Investment in unconsolidated affiliate.” | |||||||||||
Summarized financial information of the unconsolidated affiliated company was as follows (in millions of dollars): | |||||||||||
Year Ended October 31 | |||||||||||
2014 | 2013 | 2012 | |||||||||
Operations: | |||||||||||
Total revenue | $ | 13.7 | $ | 11.9 | $ | 11.2 | |||||
Net income | 3.8 | 2.2 | 2.8 | ||||||||
The Company’s equity in net income | 1.9 | 1.1 | 1.4 | ||||||||
October 31 | |||||||||||
2014 | 2013 | ||||||||||
Financial Position: | |||||||||||
Total assets | $ | 202.8 | $ | 189.2 | |||||||
Total external borrowings | 176.3 | 165.7 | |||||||||
Total net assets | 21.9 | 20.5 | |||||||||
The Company’s share of net assets | 10.9 | 10.2 | |||||||||
Supplemental_Information_Unaud
Supplemental Information (Unaudited) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Supplemental Information (Unaudited) | |||||||||||||||||
Supplemental Information (Unaudited) | Note 24. Supplemental Information (Unaudited) | ||||||||||||||||
Quarterly Information | |||||||||||||||||
The Company’s fiscal year ends in October and its interim periods (quarters) end in January, April and July. Supplemental quarterly information for the Company follows (in millions of dollars): | |||||||||||||||||
First | Second | Third | Fourth | Fiscal | |||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | |||||||||||||
2014:00:00 | |||||||||||||||||
Revenues | $ | 431.8 | $ | 454.5 | $ | 487.6 | $ | 521.9 | $ | 1,895.80 | |||||||
Interest expense | 74.1 | 63.4 | 69 | 74.6 | 281.1 | ||||||||||||
Operating expenses | 183.5 | 196.7 | 218.1 | 213.5 | 811.8 | ||||||||||||
Provision for income taxes | 38.5 | 70.6 | 71.6 | 79.9 | 260.6 | ||||||||||||
Equity in income of unconsolidated affiliate | 0.8 | 0.5 | 0.3 | 0.3 | 1.9 | ||||||||||||
Net income attributable to the Company | $ | 136.5 | $ | 124.3 | $ | 129.2 | $ | 154.2 | $ | 544.2 | |||||||
2013:00:00 | |||||||||||||||||
Revenues | $ | 408.1 | $ | 431.3 | $ | 451.7 | $ | 476.4 | $ | 1,767.50 | |||||||
Interest expense | 87.5 | 95.3 | 85 | 84.4 | 352.2 | ||||||||||||
Operating expenses | 165.7 | 166.9 | 170 | 186.9 | 689.5 | ||||||||||||
Provision for income taxes | 50.2 | 63.7 | 72.2 | 72.3 | 258.4 | ||||||||||||
Equity in income of unconsolidated affiliate | 0.3 | 0.5 | 0.2 | 0.1 | 1.1 | ||||||||||||
Net income attributable to the Company | $ | 105 | $ | 105.9 | $ | 124.7 | $ | 132.9 | $ | 468.5 | |||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Oct. 31, 2014 | |
Subsequent Events | |
Subsequent Events | Note 25. Subsequent Events |
In December 2014, the Capital Corporation paid a $100 million dividend to JDFS. JDFS in turn, paid a $100 million dividend to Deere & Company. | |
In December 2014, the Company issued Australian dollar denominated medium-term notes of $227 million due in December 2019. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2014 | |
Summary of Significant Accounting Policies | |
Consolidation, Policy | Principles of Consolidation |
The consolidated financial statements include the financial statements of John Deere Capital Corporation and its subsidiaries. The consolidated financial statements represent primarily the consolidation of all companies in which John Deere Capital Corporation has a controlling interest. Certain variable interest entities (VIEs) are consolidated since the Capital Corporation has both the power to direct the activities that most significantly impact the VIEs’ economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. The Capital Corporation records its investment in each unconsolidated affiliated company (generally 20 to 50 percent ownership) at its related equity in the net assets of such affiliate (see Note 23). | |
Use of Estimates in Financial Statements | 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. | |
Revenue Recognition | Revenue Recognition |
Financing revenue is recorded over the lives of the related receivables using the interest method. Deferred costs on the origination of receivables are recognized as a reduction in finance revenue over the expected lives of the receivables using the interest method. Income and deferred costs on the origination of operating leases are recognized on a straight-line basis over the scheduled lease terms in finance revenue. | |
Securitization of Receivables | Securitization of Receivables |
Certain financing receivables are periodically transferred to SPEs in securitization transactions (see Note 6). These securitizations qualify as collateral for secured borrowings and no gains or losses are recognized at the time of securitization. The receivables remain on the balance sheet and are classified as “Retail notes securitized.” The Company recognizes finance income over the lives of these retail notes using the interest method. | |
Depreciation | Depreciation |
Equipment on operating leases is depreciated over the terms of the leases using the straight-line method. | |
Derivative Financial Instruments | 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. Cash collateral received or paid is not offset against the derivative fair values on the balance sheet. Each derivative is designated as a cash flow hedge, a fair value hedge, or remains undesignated. Changes in the fair value of derivatives that are designated and effective as cash flow hedges are recorded in other comprehensive income and reclassified to the income statement when the effects of the item being hedged are recognized in the income statement. Changes in the fair value of derivatives that are designated and effective as fair value hedges are recognized currently in net income. These changes are offset in net income to the extent the hedge was effective by fair value changes related to the risk being hedged on the hedged item. Changes in the fair value of undesignated hedges are recognized currently in the income statement. All ineffective changes in derivative fair values are recognized currently in net income. | |
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, the hedge accounting discussed above is discontinued (see Note 21). | |
Foreign Currency Translation | Foreign Currency Translation |
The functional currencies for most of the Company’s foreign operations are their respective local currencies. The assets and liabilities of these operations are translated into U.S. dollars at the end of the period exchange rates. The revenues and expenses are translated at weighted-average rates for the period. The gains or losses from these translations are recorded in other comprehensive income. Gains or losses from transactions denominated in a currency other than the functional currency of the subsidiary involved and foreign exchange forward contracts are included in net income. The pretax net losses for foreign exchange in 2014, 2013 and 2012 were $27.4 million, $22.9 million and $28.0 million, respectively. | |
Receivables - Non-Performing, Policy | Delinquencies |
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 generally resumed when the receivable becomes contractually current and collections are reasonably assured. | |
Impaired Receivables | |
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, which are impaired, are generally classified as non-performing. | |
Receivables - Allowance for Credit Losses, Policy | Allowance for Credit Losses |
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. |
Unremitted Earnings in Foreign Investment, Policy | At October 31, 2014, accumulated earnings in certain subsidiaries outside the U.S. totaled $303.6 million for which no provision for U.S. income taxes or foreign withholding taxes has been made, because it is expected that such earnings will be reinvested outside the U.S. indefinitely. Determination of the amount of unrecognized deferred tax liability on these unremitted earnings is not practicable. At October 31, 2014, the amount of cash and cash equivalents held by these foreign subsidiaries was $56.4 million. |
Cash and Cash Equivalents, Policy | For purposes of the statement of consolidated cash flows, the Company considers investments with purchased maturities of three months or less to be cash equivalents. Substantially all of the Company’s short-term borrowings, excluding the securitization borrowings and current maturities of long-term borrowings, mature or may require payment within three months or less. |
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. |
Receivables_Tables
Receivables (Tables) | 12 Months Ended | |||||||||||||
Oct. 31, 2014 | ||||||||||||||
Retail notes | ||||||||||||||
Receivables | ||||||||||||||
Schedule of Receivables by Product Category | Retail notes receivable by product category at October 31 were as follows (in millions of dollars): | |||||||||||||
2014 | 2013 | |||||||||||||
Unrestricted | Securitized | Unrestricted | Securitized | |||||||||||
Agriculture and turf equipment — new | $ | 7,951.60 | $ | 1,606.00 | $ | 7,798.00 | $ | 1,466.40 | ||||||
Agriculture and turf equipment — used | 5,649.50 | 2,368.60 | 5,440.00 | 2,135.80 | ||||||||||
Construction and forestry equipment — new | 1,395.50 | 610.3 | 1,003.60 | 509.1 | ||||||||||
Construction and forestry equipment — used | 224.6 | 86.9 | 175.3 | 98.1 | ||||||||||
Total | 15,221.20 | 4,671.80 | 14,416.90 | 4,209.40 | ||||||||||
Unearned finance income | (375.8 | ) | (55.9 | ) | (337.6 | ) | (42.2 | ) | ||||||
Retail notes receivable | $ | 14,845.40 | $ | 4,615.90 | $ | 14,079.30 | $ | 4,167.20 | ||||||
Schedule of Receivable Installments | Gross retail note installments at October 31 were scheduled to be received as follows (in millions of dollars): | |||||||||||||
2014 | 2013 | |||||||||||||
Unrestricted | Securitized | Unrestricted | Securitized | |||||||||||
Due in: | ||||||||||||||
0-12 months | $ | 4,716.10 | $ | 1,878.50 | $ | 4,457.70 | $ | 1,663.40 | ||||||
13-24 months | 3,753.80 | 1,330.70 | 3,507.40 | 1,176.60 | ||||||||||
25-36 months | 3,070.50 | 880.1 | 2,849.80 | 808.2 | ||||||||||
37-48 months | 2,215.70 | 456.7 | 2,088.20 | 421.9 | ||||||||||
49-60 months | 1,243.00 | 120 | 1,283.70 | 130.4 | ||||||||||
Over 60 months | 222.1 | 5.8 | 230.1 | 8.9 | ||||||||||
Total | $ | 15,221.20 | $ | 4,671.80 | $ | 14,416.90 | $ | 4,209.40 | ||||||
Schedule of Guidelines Relating to Down Payment Requirements and Contract Terms | Company guidelines relating to down payment requirements and contract terms on retail notes are generally as follows: | |||||||||||||
Down | Contract | |||||||||||||
Payment | Terms | |||||||||||||
Agriculture and turf equipment (new and used): | ||||||||||||||
Seasonal payments | 10% - 30% | 3-7 years | ||||||||||||
Monthly payments | 10% - 20% | 36-84 months | ||||||||||||
Construction and forestry equipment: | ||||||||||||||
New | 10% | 48-60 months | ||||||||||||
Used | 15% | 36-48 months | ||||||||||||
Financing leases | ||||||||||||||
Receivables | ||||||||||||||
Schedule of Receivables by Product Category | Financing leases receivable by product category at October 31 were as follows (in millions of dollars): | |||||||||||||
2014 | 2013 | |||||||||||||
Agriculture and turf equipment | $ | 387 | $ | 393.2 | ||||||||||
Construction and forestry equipment | 170.8 | 154.1 | ||||||||||||
Total | 557.8 | 547.3 | ||||||||||||
Estimated residual values | 92.2 | 72.2 | ||||||||||||
Unearned finance income | (60.4 | ) | (64.2 | ) | ||||||||||
Financing leases receivable | $ | 589.6 | $ | 555.3 | ||||||||||
Schedule of Receivable Installments | Initial lease terms for financing leases generally range from 4 months to 60 months. Payments on financing leases receivable at October 31 were scheduled as follows (in millions of dollars): | |||||||||||||
2014 | 2013 | |||||||||||||
Due in: | ||||||||||||||
0-12 months | $ | 231.5 | $ | 223.9 | ||||||||||
13-24 months | 145.4 | 149.7 | ||||||||||||
25-36 months | 98.2 | 92.2 | ||||||||||||
37-48 months | 55.4 | 52.5 | ||||||||||||
Over 48 months | 27.3 | 29 | ||||||||||||
Total | $ | 557.8 | $ | 547.3 | ||||||||||
Allowance_for_Credit_Losses_an1
Allowance for Credit Losses and Credit Quality of Receivables (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Allowance for Credit Losses and Credit Quality of Receivables | |||||||||||||||||
Age Analysis of Past Due Receivables that are Still Accruing Interest and Non-performing Receivables | An age analysis of past due Receivables that are still accruing interest and non-performing Receivables at October 31, 2014 was as follows (in millions of dollars): | ||||||||||||||||
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 | $ | 85 | $ | 30.8 | $ | 24 | $ | 139.8 | |||||||||
Construction and forestry equipment | 53.6 | 15.6 | 7 | 76.2 | |||||||||||||
Revolving charge accounts: | |||||||||||||||||
Agriculture and turf equipment | 11.3 | 3.7 | 0.9 | 15.9 | |||||||||||||
Construction and forestry equipment | 2.4 | 1.2 | 0.3 | 3.9 | |||||||||||||
Wholesale receivables: | |||||||||||||||||
Agriculture and turf equipment | 4.1 | 3.4 | 4.5 | 12 | |||||||||||||
Construction and forestry equipment | 0.2 | 1.5 | 1.7 | ||||||||||||||
Financing leases: | |||||||||||||||||
Agriculture and turf equipment | 7.5 | 5.1 | 0.6 | 13.2 | |||||||||||||
Construction and forestry equipment | 2.5 | 0.8 | 0.2 | 3.5 | |||||||||||||
Total Receivables | $ | 166.6 | $ | 60.6 | $ | 39 | $ | 266.2 | |||||||||
Total | Total Non- | Current | Total | ||||||||||||||
Past Due | Performing | Receivables | |||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | $ | 139.8 | $ | 41.8 | $ | 17,023.90 | $ | 17,205.50 | |||||||||
Construction and forestry equipment | 76.2 | 14.3 | 2,165.30 | 2,255.80 | |||||||||||||
Revolving charge accounts: | |||||||||||||||||
Agriculture and turf equipment | 15.9 | 1.1 | 2,437.00 | 2,454.00 | |||||||||||||
Construction and forestry equipment | 3.9 | 0.1 | 77.9 | 81.9 | |||||||||||||
Wholesale receivables: | |||||||||||||||||
Agriculture and turf equipment | 12 | 1.1 | 6,961.00 | 6,974.10 | |||||||||||||
Construction and forestry equipment | 1.7 | 943.3 | 945 | ||||||||||||||
Financing leases: | |||||||||||||||||
Agriculture and turf equipment | 13.2 | 11.5 | 396 | 420.7 | |||||||||||||
Construction and forestry equipment | 3.5 | 1.3 | 164.1 | 168.9 | |||||||||||||
Total Receivables | $ | 266.2 | $ | 71.2 | $ | 30,168.50 | $ | 30,505.90 | |||||||||
An age analysis of past due Receivables that are still accruing interest and non-performing Receivables at October 31, 2013 was as follows (in millions of dollars): | |||||||||||||||||
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 | |||||||||
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 | |||||||||||||||||
2014 | |||||||||||||||||
Allowance: | |||||||||||||||||
Beginning of year balance | $ | 50.7 | $ | 39.7 | $ | 6.4 | $ | 14.6 | $ | 111.4 | |||||||
Provision (credit) for credit losses | 13.2 | 10.5 | 9 | (5.4 | ) | 27.3 | |||||||||||
Write-offs | (12.7 | ) | (24.6 | ) | (7.7 | ) | (.7 | ) | (45.7 | ) | |||||||
Recoveries | 5.5 | 14.3 | 0.1 | 0.3 | 20.2 | ||||||||||||
Other changes (primarily translation adjustments) | (.6 | ) | (.2 | ) | (.8 | ) | |||||||||||
End of year balance | $ | 56.1 | $ | 39.9 | $ | 7.6 | $ | 8.8 | $ | 112.4 | |||||||
Balance individually evaluated * | $ | 1.7 | $ | 0.2 | $ | 0.1 | $ | 2 | |||||||||
Receivables: | |||||||||||||||||
End of year balance | $ | 19,461.30 | $ | 2,535.90 | $ | 7,919.10 | $ | 589.6 | $ | 30,505.90 | |||||||
Balance individually evaluated * | $ | 24.5 | $ | 0.2 | $ | 1.2 | $ | 25.9 | |||||||||
* Remainder is collectively evaluated. | |||||||||||||||||
2013 | |||||||||||||||||
Allowance: | |||||||||||||||||
Beginning of year balance | $ | 56.4 | $ | 40.2 | $ | 5.9 | $ | 11.5 | $ | 114 | |||||||
Provision (credit) for credit losses | (1.9 | ) | 4 | 0.1 | 4.2 | 6.4 | |||||||||||
Write-offs | (9.4 | ) | (19.8 | ) | (.3 | ) | (1.9 | ) | (31.4 | ) | |||||||
Recoveries | 5.9 | 15.3 | 0.2 | 1.1 | 22.5 | ||||||||||||
Other changes (primarily translation adjustments) | (.3 | ) | 0.5 | (.3 | ) | (.1 | ) | ||||||||||
End of year balance | $ | 50.7 | $ | 39.7 | $ | 6.4 | $ | 14.6 | $ | 111.4 | |||||||
Balance individually evaluated * | $ | 0.1 | $ | 3.7 | $ | 3.8 | |||||||||||
Receivables: | |||||||||||||||||
End of year balance | $ | 18,246.50 | $ | 2,534.90 | $ | 7,464.70 | $ | 587.2 | $ | 28,833.30 | |||||||
Balance individually evaluated * | $ | 21.3 | $ | 0.3 | $ | 0.1 | $ | 32.3 | $ | 54 | |||||||
* Remainder is collectively evaluated. | |||||||||||||||||
2012 | |||||||||||||||||
Allowance: | |||||||||||||||||
Beginning of year balance | $ | 67.8 | $ | 39.7 | $ | 6 | $ | 12.8 | $ | 126.3 | |||||||
Provision (credit) for credit losses | (10.4 | ) | 7.9 | 0.9 | 1.4 | (.2 | ) | ||||||||||
Write-offs | (7.4 | ) | (28.8 | ) | (1.0 | ) | (3.5 | ) | (40.7 | ) | |||||||
Recoveries | 6.8 | 21.4 | 0.1 | 0.8 | 29.1 | ||||||||||||
Other changes (primarily translation adjustments) | (.4 | ) | (.1 | ) | (.5 | ) | |||||||||||
End of year balance | $ | 56.4 | $ | 40.2 | $ | 5.9 | $ | 11.5 | $ | 114 | |||||||
Balance individually evaluated * | $ | 0.5 | $ | 0.1 | $ | 0.6 | |||||||||||
Receivables: | |||||||||||||||||
End of year balance | $ | 15,728.80 | $ | 2,427.70 | $ | 6,483.10 | $ | 564.7 | $ | 25,204.30 | |||||||
Balance individually evaluated * | $ | 10.6 | $ | 0.5 | $ | 0.2 | $ | 0.3 | $ | 11.6 | |||||||
* Remainder is collectively evaluated. | |||||||||||||||||
Analysis of Impaired Receivables | An analysis of impaired Receivables at October 31, 2014 and 2013 was as follows (in millions of dollars): | ||||||||||||||||
Recorded | Unpaid | Specific | Average | ||||||||||||||
Investment | Principal | Allowance | Recorded | ||||||||||||||
Balance | Investment | ||||||||||||||||
2014 * | |||||||||||||||||
Receivables with specific allowance: | |||||||||||||||||
Retail notes | $ | 7 | $ | 6.9 | $ | 1.7 | $ | 8.4 | |||||||||
Revolving charge accounts | 0.2 | 0.2 | 0.2 | 0.2 | |||||||||||||
Wholesale receivables | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||||
Total with specific allowance | 7.3 | 7.2 | 2 | 8.7 | |||||||||||||
Receivables without specific allowance: | |||||||||||||||||
Retail notes | 5.9 | 5.7 | 6.1 | ||||||||||||||
Total without specific allowance | 5.9 | 5.7 | 6.1 | ||||||||||||||
Total | $ | 13.2 | $ | 12.9 | $ | 2 | $ | 14.8 | |||||||||
Agriculture and turf | $ | 11.7 | $ | 11.4 | $ | 2 | $ | 13 | |||||||||
Construction and forestry | 1.5 | 1.5 | 1.8 | ||||||||||||||
Total | $ | 13.2 | $ | 12.9 | $ | 2 | $ | 14.8 | |||||||||
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 | |||||||||
* Finance income recognized was not material. | |||||||||||||||||
Total Receivable Write-offs and Recoveries, by Product, and as a Percentage of Average Balances Held | Total Receivable write-offs and recoveries, by product, and as a percentage of average balances held during the year, were as follows (in millions of dollars): | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||
Write-offs: | |||||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | $ | (6.1 | ) | (.04 | )% | $ | (4.3 | ) | (.03 | )% | $ | (3.4 | ) | (.03 | )% | ||
Construction and forestry equipment | (6.6 | ) | (.33 | ) | (5.1 | ) | (.33 | ) | (4.0 | ) | (.32 | ) | |||||
Total retail notes | (12.7 | ) | (.07 | ) | (9.4 | ) | (.06 | ) | (7.4 | ) | (.05 | ) | |||||
Revolving charge accounts | (24.6 | ) | (1.11 | ) | (19.8 | ) | (.89 | ) | (28.8 | ) | (1.29 | ) | |||||
Wholesale receivables | (7.7 | ) | (.09 | ) | (.3 | ) | (.00 | ) | (1.0 | ) | (.02 | ) | |||||
Financing leases | (.5 | ) | (.09 | ) | (1.8 | ) | (.34 | ) | (1.6 | ) | (.34 | ) | |||||
Operating loans | (.2 | ) | (1.45 | ) | (.1 | ) | (.25 | ) | (1.9 | ) | (3.12 | ) | |||||
Total write-offs | (45.7 | ) | (.16 | ) | (31.4 | ) | (.12 | ) | (40.7 | ) | (.18 | ) | |||||
Recoveries: | |||||||||||||||||
Retail notes: | |||||||||||||||||
Agriculture and turf equipment | 3.3 | 0.02 | 3.6 | 0.03 | 3.9 | 0.03 | |||||||||||
Construction and forestry equipment | 2.2 | 0.11 | 2.3 | 0.15 | 2.9 | 0.23 | |||||||||||
Total retail notes | 5.5 | 0.03 | 5.9 | 0.04 | 6.8 | 0.05 | |||||||||||
Revolving charge accounts | 14.3 | 0.65 | 15.3 | 0.69 | 21.4 | 0.96 | |||||||||||
Wholesale receivables | 0.1 | 0 | 0.2 | 0 | 0.1 | 0 | |||||||||||
Financing leases | 0.2 | 0.04 | 0.5 | 0.09 | 0.3 | 0.06 | |||||||||||
Operating loans | 0.1 | 0.73 | 0.6 | 1.5 | 0.5 | 0.82 | |||||||||||
Total recoveries | 20.2 | 0.07 | 22.5 | 0.09 | 29.1 | 0.13 | |||||||||||
Total net write-offs | $ | (25.5 | ) | (.09 | ) | $ | (8.9 | ) | (.03 | ) | $ | (11.6 | ) | (.05 | ) | ||
Securitization_of_Receivables_
Securitization of Receivables (Tables) | 12 Months Ended | |||||||
Oct. 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 at October 31 was as follows (in millions of dollars): | |||||||
2014 | ||||||||
Carrying value of liabilities | $ | 1,267.10 | ||||||
Maximum exposure to loss | 1,330.80 | |||||||
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 at October 31 were as follows (in millions of dollars): | |||||||
2014 | 2013 | |||||||
Retail notes securitized | $ | 4,615.90 | $ | 4,167.20 | ||||
Allowance for credit losses | (13.6 | ) | (14.1 | ) | ||||
Other assets | 107.6 | 100.2 | ||||||
Total restricted securitized assets | $ | 4,709.90 | $ | 4,253.30 | ||||
The components of consolidated secured borrowings and other liabilities related to securitizations at October 31 were as follows (in millions of dollars): | ||||||||
2014 | 2013 | |||||||
Securitization borrowings | $ | 4,558.50 | $ | 4,109.10 | ||||
Accounts payable and accrued expenses | 1.5 | 1.3 | ||||||
Total liabilities related to restricted securitized assets | $ | 4,560.00 | $ | 4,110.40 | ||||
Equipment_on_Operating_Leases_
Equipment on Operating Leases (Tables) | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Equipment on Operating Leases | ||||||||
Schedule of Cost of Equipment on Operating Leases by Product Category | The cost of equipment on operating leases by product category at October 31 was as follows (in millions of dollars): | |||||||
2014 | 2013 | |||||||
Agriculture and turf equipment | $ | 2,229.90 | $ | 1,706.20 | ||||
Construction and forestry equipment | 819.6 | 542.1 | ||||||
Total | 3,049.50 | 2,248.30 | ||||||
Accumulated depreciation | (459.2 | ) | (376.2 | ) | ||||
Equipment on operating leases — net | $ | 2,590.30 | $ | 1,872.10 | ||||
Schedule of Rental Payments for Equipment on Operating Leases | Initial lease terms for equipment on operating leases generally range from 4 months to 60 months. Rental payments for equipment on operating leases at October 31 were scheduled as follows (in millions of dollars): | |||||||
2014 | 2013 | |||||||
Due in: | ||||||||
0-12 months | $ | 372.7 | $ | 284 | ||||
13-24 months | 235.7 | 176.6 | ||||||
25-36 months | 115.3 | 86.1 | ||||||
37-48 months | 52.2 | 42.3 | ||||||
Over 48 months | 10.3 | 5.6 | ||||||
Total | $ | 786.2 | $ | 594.6 | ||||
ShortTerm_Borrowings_Tables
Short-Term Borrowings (Tables) | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Short-Term Borrowings | ||||||||
Short-Term Borrowings | Short-term borrowings of the Company at October 31 consisted of the following (in millions of dollars): | |||||||
2014 | 2013 | |||||||
Commercial paper and other notes payable | $ | 2,172.80 | $ | 2,768.50 | ||||
Securitization borrowings | 4,558.50 | 4,109.10 | ||||||
John Deere | 2,052.20 | 2,234.10 | ||||||
Current maturities of long-term borrowings | 3,899.00 | * | 3,602.20 | * | ||||
Total | $ | 12,682.50 | $ | 12,713.90 | ||||
* Includes unamortized fair value adjustments related to interest rate swaps. | ||||||||
LongTerm_Borrowings_Tables
Long-Term Borrowings (Tables) | 12 Months Ended | |||||||
Oct. 31, 2014 | ||||||||
Long-Term Borrowings | ||||||||
Long-Term Borrowings | Long-term borrowings of the Company at October 31 consisted of the following (in millions of dollars): | |||||||
2014 | 2013 | |||||||
Senior Debt: | ||||||||
Medium-term notes due 2015-2024 (principal $16,375 - 2014, $13,447 - 2013): | $ | 16,573.00 | * | $ | 13,693.40 | * | ||
Average interest rate of 1.1% - 2014 and 2013 | ||||||||
2.75% Senior notes due 2022 ($500 principal): | 498.1 | * | 491.1 | * | ||||
Swapped $500 to variable interest rate of .9% - 2014 and 2013 | ||||||||
Other notes | 0.2 | 25.1 | ||||||
Total senior debt | 17,071.30 | 14,209.60 | ||||||
Unamortized debt discount | (15.0 | ) | (14.5 | ) | ||||
Total ** | $ | 17,056.30 | $ | 14,195.10 | ||||
* Includes unamortized fair value adjustments related to interest rate swaps. | ||||||||
** All interest rates are as of year-end. | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||
Oct. 31, 2014 | ||||||||||||||
Income Taxes | ||||||||||||||
Provision for Income Taxes by Taxing Jurisdiction and by Significant Component | The provision for income taxes by taxing jurisdiction and by significant component consisted of the following (in millions of dollars): | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Current: | ||||||||||||||
U.S.: | ||||||||||||||
Federal | $ | 274.4 | $ | 174.6 | $ | 173.6 | ||||||||
State | 7.9 | 6.8 | 10.1 | |||||||||||
Foreign | 21.2 | 32.6 | 34 | |||||||||||
Total current | 303.5 | 214 | 217.7 | |||||||||||
Deferred: | ||||||||||||||
U.S.: | ||||||||||||||
Federal | (33.7 | ) | 42.4 | 4.4 | ||||||||||
State | 0.6 | 0.8 | 1.6 | |||||||||||
Foreign | (9.8 | ) | 1.2 | (5.9 | ) | |||||||||
Total deferred | (42.9 | ) | 44.4 | 0.1 | ||||||||||
Provision for income taxes | $ | 260.6 | $ | 258.4 | $ | 217.8 | ||||||||
Comparison of Statutory and Effective Income Tax Provision | A comparison of the statutory and effective income tax provision and reasons for related differences follows (in millions of dollars): | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
U.S. federal income tax provision at a statutory rate of 35 percent | $ | 281 | $ | 254 | $ | 209.7 | ||||||||
Increase (decrease) resulting from: | ||||||||||||||
Municipal lease income not taxable | (1.4 | ) | (1.4 | ) | (1.5 | ) | ||||||||
Tax rates on foreign earnings | (8.0 | ) | (7.2 | ) | (6.3 | ) | ||||||||
Foreign tax benefit | (23.1 | ) | ||||||||||||
State and local income taxes, net of federal income tax benefit | 5.5 | 4.9 | 7.6 | |||||||||||
Other — net | 6.6 | 8.1 | 8.3 | |||||||||||
Provision for income taxes | $ | 260.6 | $ | 258.4 | $ | 217.8 | ||||||||
Analysis of Deferred Income Tax Assets and Liabilities | Deferred income taxes arise because there are certain items that are treated differently for financial accounting than for income tax reporting purposes. An analysis of deferred income tax assets and liabilities at October 31 was as follows (in millions of dollars): | |||||||||||||
2014 | 2013 | |||||||||||||
Deferred | Deferred | Deferred | Deferred | |||||||||||
Tax | Tax | Tax | Tax | |||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||
Lease transactions | $ | 381.2 | $ | 406.2 | ||||||||||
Tax over book depreciation | 5 | 2.9 | ||||||||||||
Deferred retail note finance income | 4.1 | 3.9 | ||||||||||||
Allowance for credit losses | $ | 46 | $ | 43.1 | ||||||||||
Unrealized gain/loss on derivatives | 0.3 | 2 | ||||||||||||
Accrual for retirement and other benefits | 25.5 | 22.2 | ||||||||||||
Federal taxes on deferred state tax deductions | 13.6 | 12.6 | ||||||||||||
Tax loss and tax credit carryforwards | 5.3 | 5.4 | ||||||||||||
Miscellaneous accruals and other | 18.6 | 5.3 | ||||||||||||
Less valuation allowances | (1.1 | ) | (.8 | ) | ||||||||||
Deferred income tax assets and liabilities | $ | 108.2 | $ | 390.3 | $ | 89.8 | $ | 413 | ||||||
Reconciliation of Total Amounts of Unrecognized Tax Benefits | A reconciliation of the total amounts of unrecognized tax benefits at October 31 was as follows (in millions of dollars): | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Beginning of year balance | $ | 33.6 | $ | 32.5 | $ | 30 | ||||||||
Increases to tax positions taken during the current year | 12.1 | 11.8 | 12 | |||||||||||
Increases to tax positions taken during prior years | 0.7 | 1.1 | 0.8 | |||||||||||
Decreases to tax positions taken during prior years | (7.0 | ) | (7.8 | ) | (6.6 | ) | ||||||||
Decreases due to lapse of statute of limitations | (3.2 | ) | (4.0 | ) | (3.6 | ) | ||||||||
Foreign exchange | (.1 | ) | ||||||||||||
End of year balance | $ | 36.2 | $ | 33.6 | $ | 32.5 | ||||||||
Other_Income_and_Administrativ1
Other Income and Administrative and Operating Expenses (Tables) | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
Other Income and Administrative and Operating Expenses | |||||||||||
Schedule of Major Components of Other Income and Administrative and Operating Expenses | The major components of other income and administrative and operating expenses were as follows (in millions of dollars): | ||||||||||
2014 | 2013 | 2012 | |||||||||
Other income - net | |||||||||||
Fees from John Deere | $ | 43.2 | $ | 45.5 | $ | 43 | |||||
Other | 27.1 | 25.7 | 25.1 | ||||||||
Total | $ | 70.3 | $ | 71.2 | $ | 68.1 | |||||
Administrative and operating expenses | |||||||||||
Compensation and benefits | $ | 261.2 | $ | 253.2 | $ | 209.6 | |||||
Other | 149.4 | 124.1 | 129.7 | ||||||||
Total | $ | 410.6 | $ | 377.3 | $ | 339.3 | |||||
Other_Comprehensive_Income_Ite1
Other Comprehensive Income Items (Tables) | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
Other Comprehensive Income Items | |||||||||||
Schedule of 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): | ||||||||||
2014 | 2013 | 2012 | |||||||||
Cumulative translation adjustment: | |||||||||||
Beginning of year balance | $ | 39.5 | $ | 33.2 | $ | 62.4 | |||||
Current period activity | (33.5 | ) | 6.3 | (29.2 | ) | ||||||
End of year balance | $ | 6 | $ | 39.5 | $ | 33.2 | |||||
Unrealized gain (loss) on derivatives: | |||||||||||
Beginning of year balance | $ | (3.9 | ) | $ | (11.6 | ) | $ | (8.3 | ) | ||
Current period activity | 3.3 | 7.7 | (3.3 | ) | |||||||
End of year balance | $ | (.6 | ) | $ | (3.9 | ) | $ | (11.6 | ) | ||
Schedule of Amounts Recorded in and Reclassifications out of Other Comprehensive Income (Loss) and the Income Tax Effects | Following are amounts recorded in and reclassifications out of other comprehensive income (loss) and the income tax effects (in millions of dollars): | ||||||||||
Before | Tax | After | |||||||||
Tax | (Expense) | Tax | |||||||||
Amount | Credit | Amount | |||||||||
2014 | |||||||||||
Cumulative translation adjustment | $ | (33.5 | ) | $ | (33.5 | ) | |||||
Unrealized gain (loss) on derivatives: | |||||||||||
Unrealized hedging loss | (10.2 | ) | $ | 3.6 | (6.6 | ) | |||||
Reclassification of realized (gain) loss to: | |||||||||||
Interest rate contracts — Interest expense | 9.8 | (3.5 | ) | 6.3 | |||||||
Foreign exchange contracts — Administrative and operating expenses | 5.5 | (1.9 | ) | 3.6 | |||||||
Net unrealized gain on derivatives | 5.1 | (1.8 | ) | 3.3 | |||||||
Total other comprehensive income (loss) | $ | (28.4 | ) | $ | (1.8 | ) | $ | (30.2 | ) | ||
2013 | |||||||||||
Cumulative translation adjustment | $ | 6.3 | $ | 6.3 | |||||||
Unrealized gain (loss) on derivatives: | |||||||||||
Unrealized hedging gain | 33.3 | $ | (11.6 | ) | 21.7 | ||||||
Reclassification of realized (gain) loss to: | |||||||||||
Interest rate contracts — Interest expense | 17.8 | (6.2 | ) | 11.6 | |||||||
Foreign exchange contracts — Administrative and operating expenses | (39.3 | ) | 13.7 | (25.6 | ) | ||||||
Net unrealized gain on derivatives | 11.8 | (4.1 | ) | 7.7 | |||||||
Total other comprehensive income (loss) | $ | 18.1 | $ | (4.1 | ) | $ | 14 | ||||
2012 | |||||||||||
Cumulative translation adjustment | $ | (29.2 | ) | $ | (29.2 | ) | |||||
Unrealized gain (loss) on derivatives: | |||||||||||
Unrealized hedging loss | (60.5 | ) | $ | 21.4 | (39.1 | ) | |||||
Reclassification of realized (gain) loss to: | |||||||||||
Interest rate contracts — Interest expense | 13.1 | (4.6 | ) | 8.5 | |||||||
Foreign exchange contracts — Administrative and operating expenses | 42.3 | (15.0 | ) | 27.3 | |||||||
Net unrealized loss on derivatives | (5.1 | ) | 1.8 | (3.3 | ) | ||||||
Total other comprehensive income (loss) | $ | (34.3 | ) | $ | 1.8 | $ | (32.5 | ) | |||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Fair Value of Financial Instruments | The fair values of financial instruments that do not approximate the carrying values at October 31 were as follows (in millions of dollars): | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Value | Value * | Value | Value * | ||||||||||||||
Receivables financed - net | $ | 25,791.20 | $ | 25,716.90 | $ | 24,568.80 | $ | 24,458.90 | |||||||||
Retail notes securitized - net | 4,602.30 | 4,573.40 | 4,153.10 | 4,124.40 | |||||||||||||
Securitization borrowings | 4,558.50 | 4,561.60 | 4,109.10 | 4,112.80 | |||||||||||||
Current maturities of long-term borrowings | 3,899.00 | 3,910.10 | 3,602.20 | 3,623.10 | |||||||||||||
Long-term borrowings | 17,056.30 | 17,212.90 | 14,195.10 | 14,331.30 | |||||||||||||
* 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 October 31 at fair value as Level 2 measurements on a recurring basis were as follows (in millions of dollars): | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Receivables from John Deere | |||||||||||||||||
Derivatives: | |||||||||||||||||
Interest rate contracts | $ | 183.7 | $ | 175.5 | |||||||||||||
Cross-currency interest rate contracts | 2.8 | 1.1 | |||||||||||||||
Other assets | |||||||||||||||||
Derivatives: | |||||||||||||||||
Interest rate contracts | 117.3 | 156.8 | |||||||||||||||
Foreign exchange contracts | 3.1 | 1 | |||||||||||||||
Cross-currency interest rate contracts | 0.1 | ||||||||||||||||
Total assets * | $ | 306.9 | $ | 334.5 | |||||||||||||
Other payables to John Deere | |||||||||||||||||
Derivatives: | |||||||||||||||||
Interest rate contracts | $ | 52.2 | $ | 84.8 | |||||||||||||
Cross-currency interest rate contracts | 1.1 | ||||||||||||||||
Accounts payable and accrued expenses | |||||||||||||||||
Derivatives: | |||||||||||||||||
Interest rate contracts | 23 | 29.9 | |||||||||||||||
Foreign exchange contracts | 8.6 | 15.8 | |||||||||||||||
Cross-currency interest rate contracts | 16 | ||||||||||||||||
Total liabilities | $ | 83.8 | $ | 147.6 | |||||||||||||
* Excluded from this table were 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 at October 31 were as follows (in millions of dollars): | ||||||||||||||||
Fair Value | (Gains) / Losses | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2012 | |||||||||||||
Receivables: | |||||||||||||||||
Retail notes | $ | 5.3 | $ | 1.7 | |||||||||||||
Revolving charge accounts | 0.2 | $ | 0.5 | ||||||||||||||
Wholesale receivables | 0.1 | ||||||||||||||||
Operating loans | $ | 14.3 | (3.7 | ) | $ | 3.7 | |||||||||||
Total Receivables | $ | 5.3 | $ | 14.3 | $ | (1.8 | ) | $ | 3.7 | $ | 0.6 | ||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||
Oct. 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): | |||||||||||||
2014 | 2013 | |||||||||||||
Interest rate contracts * | $ | (12.8 | ) | $ | (237.5 | ) | ||||||||
Borrowings ** | 10.8 | 237.7 | ||||||||||||
* Includes changes in fair value of interest rate contracts excluding net accrued interest income of $161.0 million and $146.6 million during 2014 and 2013, respectively. | ||||||||||||||
** Includes adjustments for fair values of hedged borrowings excluding accrued interest expense of $248.0 million and $237.9 million during 2014 and 2013, respectively. | ||||||||||||||
Fair Value of Derivative Instruments in Consolidated Balance Sheet | Fair values of derivative instruments in the consolidated balance sheet at October 31 were as follows (in millions of dollars): | |||||||||||||
2014 | 2013 | |||||||||||||
Receivables from John Deere | ||||||||||||||
Designated as hedging instruments: | ||||||||||||||
Interest rate contracts | $ | 148.1 | $ | 144.3 | ||||||||||
Not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 35.6 | 31.2 | ||||||||||||
Cross-currency interest rate contracts | 2.8 | 1.1 | ||||||||||||
Total not designated | 38.4 | 32.3 | ||||||||||||
Other Assets | ||||||||||||||
Designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 107.5 | 140.5 | ||||||||||||
Not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 9.8 | 16.3 | ||||||||||||
Foreign exchange contracts | 3.1 | 1 | ||||||||||||
Cross-currency interest rate contracts | 0.1 | |||||||||||||
Total not designated | 12.9 | 17.4 | ||||||||||||
Total derivatives | $ | 306.9 | $ | 334.5 | ||||||||||
Other Payables to John Deere | ||||||||||||||
Designated as hedging instruments: | ||||||||||||||
Interest rate contracts | $ | 35.3 | $ | 71 | ||||||||||
Cross-currency interest rate contracts | 0.4 | |||||||||||||
Total designated | 35.3 | 71.4 | ||||||||||||
Not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 16.9 | 13.8 | ||||||||||||
Cross-currency interest rate contracts | 0.7 | |||||||||||||
Total not designated | 16.9 | 14.5 | ||||||||||||
Accounts Payable and Accrued Expenses | ||||||||||||||
Designated as hedging instruments: | ||||||||||||||
Cross-currency interest rate contracts | 16 | |||||||||||||
Not designated as hedging instruments: | ||||||||||||||
Interest rate contracts | 23 | 29.9 | ||||||||||||
Foreign exchange contracts | 8.6 | 15.8 | ||||||||||||
Total not designated | 31.6 | 45.7 | ||||||||||||
Total derivatives | $ | 83.8 | $ | 147.6 | ||||||||||
Gains (Losses) Related to Derivative Instruments on Statement of Consolidated Income | The classifications 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): | |||||||||||||
Expense or OCI | 2014 | 2013 | 2012 | |||||||||||
Classification | ||||||||||||||
Fair Value Hedges | ||||||||||||||
Interest rate contracts | Interest expense | $ | 148.2 | $ | (90.9 | ) | $ | 332.4 | ||||||
Cash Flow Hedges | ||||||||||||||
Recognized in OCI | ||||||||||||||
(Effective Portion): | ||||||||||||||
Interest rate contracts | OCI (pretax) * | (6.1 | ) | (14.6 | ) | (22.1 | ) | |||||||
Foreign exchange contracts | OCI (pretax) * | (4.1 | ) | 47.9 | (38.4 | ) | ||||||||
Reclassified from OCI | ||||||||||||||
(Effective Portion): | ||||||||||||||
Interest rate contracts | Interest expense * | (9.8 | ) | (17.8 | ) | (13.1 | ) | |||||||
Foreign exchange contracts | Administrative and operating expenses * | (5.5 | ) | 39.3 | (42.3 | ) | ||||||||
Recognized Directly in Income | ||||||||||||||
(Ineffective Portion) | ** | ** | ** | |||||||||||
Not Designated as Hedges | ||||||||||||||
Interest rate contracts | Interest expense * | $ | 5 | $ | (4.5 | ) | $ | (8.6 | ) | |||||
Foreign exchange contracts | Administrative and operating expenses * | 52.6 | 20.8 | 7.7 | ||||||||||
Total not designated | $ | 57.6 | $ | 16.3 | $ | (.9 | ) | |||||||
* Includes interest and foreign exchange gains (losses) from cross-currency interest rate contracts. | ||||||||||||||
** The amounts are 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): | |||||||||||||
2014 | ||||||||||||||
Derivatives: | Gross Amounts | Netting | Collateral | Net Amount | ||||||||||
Recognized | Arrangements | Received | ||||||||||||
Assets | ||||||||||||||
External | $ | 120.4 | $ | (24.3 | ) | $ | 96.1 | |||||||
John Deere | 186.5 | (50.4 | ) | 136.1 | ||||||||||
Liabilities | ||||||||||||||
External | 31.6 | (24.3 | ) | 7.3 | ||||||||||
John Deere | 52.2 | (50.4 | ) | 1.8 | ||||||||||
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 | ||||||||||
Geographic_Area_Information_Ta
Geographic Area Information (Tables) | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
Geographic Area Information | |||||||||||
Schedule of Geographic Area Information | Geographic area information as of and for the years ended October 31, 2014, 2013 and 2012 is presented below (in millions of dollars): | ||||||||||
2014 | 2013 | 2012 | |||||||||
Revenues: | |||||||||||
U.S. | $ | 1,646.00 | $ | 1,528.70 | $ | 1,445.60 | |||||
Outside the U.S. | 249.8 | 238.8 | 229 | ||||||||
Total | $ | 1,895.80 | $ | 1,767.50 | $ | 1,674.60 | |||||
Operating profit: | |||||||||||
U.S. | $ | 682.2 | $ | 605.7 | $ | 494.2 | |||||
Outside the U.S. | 122.6 | 121.2 | 106.3 | ||||||||
Total | $ | 804.8 | $ | 726.9 | $ | 600.5 | |||||
Receivables: | |||||||||||
U.S. | $ | 26,570.00 | $ | 24,895.10 | $ | 21,553.90 | |||||
Outside the U.S. | 3,935.90 | 3,938.20 | 3,650.40 | ||||||||
Total | $ | 30,505.90 | $ | 28,833.30 | $ | 25,204.30 | |||||
Unconsolidated_Affiliated_Comp1
Unconsolidated Affiliated Company (Tables) | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
Unconsolidated Affiliated Company | |||||||||||
Unconsolidated Affiliated Company | Summarized financial information of the unconsolidated affiliated company was as follows (in millions of dollars): | ||||||||||
Year Ended October 31 | |||||||||||
2014 | 2013 | 2012 | |||||||||
Operations: | |||||||||||
Total revenue | $ | 13.7 | $ | 11.9 | $ | 11.2 | |||||
Net income | 3.8 | 2.2 | 2.8 | ||||||||
The Company’s equity in net income | 1.9 | 1.1 | 1.4 | ||||||||
October 31 | |||||||||||
2014 | 2013 | ||||||||||
Financial Position: | |||||||||||
Total assets | $ | 202.8 | $ | 189.2 | |||||||
Total external borrowings | 176.3 | 165.7 | |||||||||
Total net assets | 21.9 | 20.5 | |||||||||
The Company’s share of net assets | 10.9 | 10.2 | |||||||||
Supplemental_Information_Unaud1
Supplemental Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Supplemental Information (Unaudited) | |||||||||||||||||
Quarterly Financial Information | The Company’s fiscal year ends in October and its interim periods (quarters) end in January, April and July. Supplemental quarterly information for the Company follows (in millions of dollars): | ||||||||||||||||
First | Second | Third | Fourth | Fiscal | |||||||||||||
Quarter | Quarter | Quarter | Quarter | Year | |||||||||||||
2014:00:00 | |||||||||||||||||
Revenues | $ | 431.8 | $ | 454.5 | $ | 487.6 | $ | 521.9 | $ | 1,895.80 | |||||||
Interest expense | 74.1 | 63.4 | 69 | 74.6 | 281.1 | ||||||||||||
Operating expenses | 183.5 | 196.7 | 218.1 | 213.5 | 811.8 | ||||||||||||
Provision for income taxes | 38.5 | 70.6 | 71.6 | 79.9 | 260.6 | ||||||||||||
Equity in income of unconsolidated affiliate | 0.8 | 0.5 | 0.3 | 0.3 | 1.9 | ||||||||||||
Net income attributable to the Company | $ | 136.5 | $ | 124.3 | $ | 129.2 | $ | 154.2 | $ | 544.2 | |||||||
2013:00:00 | |||||||||||||||||
Revenues | $ | 408.1 | $ | 431.3 | $ | 451.7 | $ | 476.4 | $ | 1,767.50 | |||||||
Interest expense | 87.5 | 95.3 | 85 | 84.4 | 352.2 | ||||||||||||
Operating expenses | 165.7 | 166.9 | 170 | 186.9 | 689.5 | ||||||||||||
Provision for income taxes | 50.2 | 63.7 | 72.2 | 72.3 | 258.4 | ||||||||||||
Equity in income of unconsolidated affiliate | 0.3 | 0.5 | 0.2 | 0.1 | 1.1 | ||||||||||||
Net income attributable to the Company | $ | 105 | $ | 105.9 | $ | 124.7 | $ | 132.9 | $ | 468.5 | |||||||
Organization_and_Consolidation1
Organization and Consolidation (Details) | 12 Months Ended |
Oct. 31, 2014 | |
Maximum portion of receivables guaranteed by related parties | |
Maximum portion of receivables guaranteed by related parties (as a percent) | 5.00% |
Maximum portion of receivables serviced by related parties | |
Maximum portion of receivables serviced by related parties (as a percent) | 5.00% |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Summary of Significant Accounting Policies | |||
Pretax net losses for foreign exchange | $27.40 | $22.90 | $28 |
Receivables_Details
Receivables (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Receivables, by Product Category | |||
Total receivables | 30,505.90 | 28,833.30 | 25,204.30 |
Retail Notes Receivable | |||
Receivables, by Product Category | |||
Average original term of receivables | 54 months | 54 months | 54 months |
Average actual life of receivables | 30 months | 29 months | 31 months |
Retail Notes - Unrestricted | |||
Receivables, by Product Category | |||
Receivables, Gross | 15,221.20 | 14,416.90 | |
Unearned finance income | -375.8 | -337.6 | |
Total receivables | 14,845.40 | 14,079.30 | |
Retail Notes - Unrestricted | Agriculture and turf equipment - new | |||
Receivables, by Product Category | |||
Receivables, Gross | 7,951.60 | 7,798 | |
Retail Notes - Unrestricted | Agriculture and turf equipment - used | |||
Receivables, by Product Category | |||
Receivables, Gross | 5,649.50 | 5,440 | |
Retail Notes - Unrestricted | Construction and forestry equipment - new | |||
Receivables, by Product Category | |||
Receivables, Gross | 1,395.50 | 1,003.60 | |
Retail Notes - Unrestricted | Construction and forestry equipment - used | |||
Receivables, by Product Category | |||
Receivables, Gross | 224.6 | 175.3 | |
Retail Notes - Securitized | |||
Receivables, by Product Category | |||
Receivables, Gross | 4,671.80 | 4,209.40 | |
Unearned finance income | -55.9 | -42.2 | |
Total receivables | 4,615.90 | 4,167.20 | |
Retail Notes - Securitized | Agriculture and turf equipment - new | |||
Receivables, by Product Category | |||
Receivables, Gross | 1,606 | 1,466.40 | |
Retail Notes - Securitized | Agriculture and turf equipment - used | |||
Receivables, by Product Category | |||
Receivables, Gross | 2,368.60 | 2,135.80 | |
Retail Notes - Securitized | Construction and forestry equipment - new | |||
Receivables, by Product Category | |||
Receivables, Gross | 610.3 | 509.1 | |
Retail Notes - Securitized | Construction and forestry equipment - used | |||
Receivables, by Product Category | |||
Receivables, Gross | 86.9 | 98.1 |
Receivables_Details_2
Receivables (Details 2) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Retail Notes - Unrestricted | ||
Receivable Installments, Due in Months: | ||
Receivables, due in 0 - 12 months | $4,716.10 | $4,457.70 |
Receivables, due in 13 - 24 months | 3,753.80 | 3,507.40 |
Receivables, due in 25 - 36 months | 3,070.50 | 2,849.80 |
Receivables, due in 37 - 48 months | 2,215.70 | 2,088.20 |
Receivables, due in 49 - 60 months | 1,243 | 1,283.70 |
Receivables, Over 60 months | 222.1 | 230.1 |
Receivables, Gross | 15,221.20 | 14,416.90 |
Retail Notes - Securitized | ||
Receivable Installments, Due in Months: | ||
Receivables, due in 0 - 12 months | 1,878.50 | 1,663.40 |
Receivables, due in 13 - 24 months | 1,330.70 | 1,176.60 |
Receivables, due in 25 - 36 months | 880.1 | 808.2 |
Receivables, due in 37 - 48 months | 456.7 | 421.9 |
Receivables, due in 49 - 60 months | 120 | 130.4 |
Receivables, Over 60 months | 5.8 | 8.9 |
Receivables, Gross | $4,671.80 | $4,209.40 |
Receivables_Details_3
Receivables (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Receivables - Other Disclosures | |||
Proceeds from sales of Receivables | $0 | $0.70 | $34.50 |
Balances of Receivables and Leases administered, but not owned | 2 | 6 | 16 |
Total receivables | 30,505.90 | 28,833.30 | 25,204.30 |
Retail Notes Receivable | |||
Receivables - Other Disclosures | |||
Average effective yield on Retail Notes Receivable (as a percent) | 4.00% | 4.40% | 5.00% |
Retail Notes Receivable | John Deere | |||
Receivables - Other Disclosures | |||
Portion of finance income earned on retail notes receivable containing waiver of finance charges or reduced rates (as a percent) | 24.00% | 23.00% | 23.00% |
Finance income earned on Receivables and Leases containing waiver of finance charges or reduced rates | 178 | 167 | 163 |
Retail Notes Receivable | Agriculture and turf equipment | Minimum | |||
Receivables - Other Disclosures | |||
Percentage of balances outstanding used to determine excess withholdings to be remitted to dealers | 0.50% | ||
Retail Notes Receivable | Agriculture and turf equipment | Maximum | |||
Receivables - Other Disclosures | |||
Percentage of balances outstanding used to determine excess withholdings to be remitted to dealers | 3.00% | ||
Retail Notes Receivable | Agriculture and turf equipment (new and used): Seasonal payments | Minimum | |||
Guidelines Relating to Down Payment Requirements and Contract Terms on Retail Notes | |||
Down Payment (as a percent) | 10.00% | ||
Contract Terms | 3 years | ||
Retail Notes Receivable | Agriculture and turf equipment (new and used): Seasonal payments | Maximum | |||
Guidelines Relating to Down Payment Requirements and Contract Terms on Retail Notes | |||
Down Payment (as a percent) | 30.00% | ||
Contract Terms | 7 years | ||
Retail Notes Receivable | Agriculture and turf equipment (new and used): Monthly payments | Minimum | |||
Guidelines Relating to Down Payment Requirements and Contract Terms on Retail Notes | |||
Down Payment (as a percent) | 10.00% | ||
Contract Terms | 36 months | ||
Retail Notes Receivable | Agriculture and turf equipment (new and used): Monthly payments | Maximum | |||
Guidelines Relating to Down Payment Requirements and Contract Terms on Retail Notes | |||
Down Payment (as a percent) | 20.00% | ||
Contract Terms | 84 months | ||
Retail Notes Receivable | Construction and forestry equipment - new | |||
Guidelines Relating to Down Payment Requirements and Contract Terms on Retail Notes | |||
Down Payment (as a percent) | 10.00% | ||
Retail Notes Receivable | Construction and forestry equipment - new | Minimum | |||
Guidelines Relating to Down Payment Requirements and Contract Terms on Retail Notes | |||
Contract Terms | 48 months | ||
Retail Notes Receivable | Construction and forestry equipment - new | Maximum | |||
Guidelines Relating to Down Payment Requirements and Contract Terms on Retail Notes | |||
Contract Terms | 60 months | ||
Retail Notes Receivable | Construction and forestry equipment - used | |||
Guidelines Relating to Down Payment Requirements and Contract Terms on Retail Notes | |||
Down Payment (as a percent) | 15.00% | ||
Retail Notes Receivable | Construction and forestry equipment - used | Minimum | |||
Guidelines Relating to Down Payment Requirements and Contract Terms on Retail Notes | |||
Contract Terms | 36 months | ||
Retail Notes Receivable | Construction and forestry equipment - used | Maximum | |||
Guidelines Relating to Down Payment Requirements and Contract Terms on Retail Notes | |||
Contract Terms | 48 months | ||
Revolving Charge Accounts Receivable | |||
Receivables - Other Disclosures | |||
Total receivables | 2,535.90 | 2,534.90 | |
Revolving Charge Accounts Receivable | John Deere | |||
Receivables - Other Disclosures | |||
Finance income earned on Receivables and Leases containing waiver of finance charges or reduced rates | 11 | 11 | 10 |
Wholesale receivables | |||
Receivables - Other Disclosures | |||
Term that the average term for wholesale notes is less than | 12 months | ||
Total receivables | 7,919.10 | 7,464.70 | |
Wholesale receivables | John Deere | |||
Receivables - Other Disclosures | |||
Finance income earned on Receivables and Leases containing waiver of finance charges or reduced rates | $203 | $198 | $200 |
Wholesale receivables | Minimum | |||
Receivables - Other Disclosures | |||
Interest-free periods granted at the time of sale to dealer | 1 month | ||
Wholesale receivables | Maximum | |||
Receivables - Other Disclosures | |||
Interest-free periods granted at the time of sale to dealer | 12 months |
Receivables_Details_4
Receivables (Details 4) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
In Millions, unless otherwise specified | |||
Financing Leases Receivable | |||
Total Receivables | $30,505.90 | $28,833.30 | $25,204.30 |
Financing leases | |||
Financing Leases Receivable | |||
Receivables, Gross | 557.8 | 547.3 | |
Estimated residual values | 92.2 | 72.2 | |
Unearned finance income | -60.4 | -64.2 | |
Total Receivables | 589.6 | 555.3 | |
Financing leases | Agriculture and turf equipment | |||
Financing Leases Receivable | |||
Receivables, Gross | 387 | 393.2 | |
Financing leases | Construction and forestry equipment | |||
Financing Leases Receivable | |||
Receivables, Gross | $170.80 | $154.10 |
Receivables_Details_5
Receivables (Details 5) (Financing leases, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Gross Receivable Installments | |||
Receivables, due in 0 - 12 months | $231.50 | $223.90 | |
Receivables, due in 13 - 24 months | 145.4 | 149.7 | |
Receivables, due in 25 - 36 months | 98.2 | 92.2 | |
Receivables, due in 37 - 48 months | 55.4 | 52.5 | |
Receivables, Over 48 months | 27.3 | 29 | |
Receivables, Gross | 557.8 | 547.3 | |
John Deere | |||
Receivables - Other Disclosures | |||
Finance income earned on Receivables and Leases containing waiver of finance charges or reduced rates | $2 | $3 | $2 |
Minimum | |||
Financing Leases Receivable | |||
Initial lease terms of financing leases | 4 months | ||
Maximum | |||
Financing Leases Receivable | |||
Initial lease terms of financing leases | 60 months |
Allowance_for_Credit_Losses_an2
Allowance for Credit Losses and Credit Quality of Receivables (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Allowance for Credit Losses and Credit Quality of Receivables | |||
Minimum number of days for a receivable to be considered past due | 30 days | ||
Age Analysis of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | |||
30-59 Days Past Due | $166.60 | $145.90 | |
60-89 Days Past Due | 60.6 | 52.7 | |
90 Days or Greater Past Due | 39 | 34.6 | |
Total Past Due | 266.2 | 233.2 | |
Total Non-Performing | 71.2 | 60 | |
Current | 30,168.50 | 28,540.10 | |
Total Receivables | 30,505.90 | 28,833.30 | 25,204.30 |
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 | ||
Age Analysis of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | |||
Total Receivables | 19,461.30 | 18,246.50 | 15,728.80 |
Retail notes | Agriculture and turf equipment | |||
Age Analysis of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | |||
30-59 Days Past Due | 85 | 67.8 | |
60-89 Days Past Due | 30.8 | 23.3 | |
90 Days or Greater Past Due | 24 | 17.1 | |
Total Past Due | 139.8 | 108.2 | |
Total Non-Performing | 41.8 | 34.1 | |
Current | 17,023.90 | 16,359.30 | |
Total Receivables | 17,205.50 | 16,501.60 | |
Retail notes | Construction and forestry equipment | |||
Age Analysis of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | |||
30-59 Days Past Due | 53.6 | 38.4 | |
60-89 Days Past Due | 15.6 | 14.4 | |
90 Days or Greater Past Due | 7 | 8.6 | |
Total Past Due | 76.2 | 61.4 | |
Total Non-Performing | 14.3 | 11.4 | |
Current | 2,165.30 | 1,672.10 | |
Total Receivables | 2,255.80 | 1,744.90 | |
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 | ||
Age Analysis of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | |||
Total Receivables | 2,535.90 | 2,534.90 | 2,427.70 |
Revolving charge accounts | Agriculture and turf equipment | |||
Age Analysis of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | |||
30-59 Days Past Due | 11.3 | 14.6 | |
60-89 Days Past Due | 3.7 | 4.5 | |
90 Days or Greater Past Due | 0.9 | 2.2 | |
Total Past Due | 15.9 | 21.3 | |
Total Non-Performing | 1.1 | 0.9 | |
Current | 2,437 | 2,438 | |
Total Receivables | 2,454 | 2,460.20 | |
Revolving charge accounts | Construction and forestry equipment | |||
Age Analysis of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | |||
30-59 Days Past Due | 2.4 | 2.3 | |
60-89 Days Past Due | 1.2 | 1 | |
90 Days or Greater Past Due | 0.3 | 0.5 | |
Total Past Due | 3.9 | 3.8 | |
Total Non-Performing | 0.1 | ||
Current | 77.9 | 70.9 | |
Total Receivables | 81.9 | 74.7 | |
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 | ||
Age Analysis of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | |||
Total Receivables | 7,919.10 | 7,464.70 | 6,483.10 |
Wholesale receivables | Agriculture and turf equipment | |||
Age Analysis of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | |||
30-59 Days Past Due | 4.1 | 10 | |
60-89 Days Past Due | 3.4 | 4.9 | |
90 Days or Greater Past Due | 4.5 | 3 | |
Total Past Due | 12 | 17.9 | |
Total Non-Performing | 1.1 | 0.3 | |
Current | 6,961 | 6,541.10 | |
Total Receivables | 6,974.10 | 6,559.30 | |
Wholesale receivables | Construction and forestry equipment | |||
Age Analysis of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | |||
30-59 Days Past Due | 0.2 | 0.3 | |
60-89 Days Past Due | 0.1 | ||
90 Days or Greater Past Due | 1.5 | 0.9 | |
Total Past Due | 1.7 | 1.3 | |
Current | 943.3 | 904.1 | |
Total Receivables | 945 | 905.4 | |
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 | |||
Age Analysis of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | |||
30-59 Days Past Due | 7.5 | 10.2 | |
60-89 Days Past Due | 5.1 | 4 | |
90 Days or Greater Past Due | 0.6 | 2.3 | |
Total Past Due | 13.2 | 16.5 | |
Total Non-Performing | 11.5 | 11 | |
Current | 396 | 379 | |
Total Receivables | 420.7 | 406.5 | |
Financing leases | Construction and forestry equipment | |||
Age Analysis of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | |||
30-59 Days Past Due | 2.5 | 2.2 | |
60-89 Days Past Due | 0.8 | 0.5 | |
90 Days or Greater Past Due | 0.2 | ||
Total Past Due | 3.5 | 2.7 | |
Total Non-Performing | 1.3 | 2 | |
Current | 164.1 | 144.1 | |
Total Receivables | 168.9 | 148.8 | |
Operating loans | Agriculture and turf equipment | |||
Age Analysis of Past Due Receivables That Are Still Accruing Interest and Non-Performing Receivables | |||
30-59 Days Past Due | 0.1 | ||
Total Past Due | 0.1 | ||
Total Non-Performing | 0.3 | ||
Current | 31.5 | ||
Total Receivables | $31.90 |
Allowance_for_Credit_Losses_an3
Allowance for Credit Losses and Credit Quality of Receivables (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Allowance: | |||
Beginning of year balance | $111.40 | $114 | $126.30 |
Provision (credit) for credit losses | 27.3 | 6.4 | -0.2 |
Write-offs | -45.7 | -31.4 | -40.7 |
Recoveries | 20.2 | 22.5 | 29.1 |
Other changes (primarily translation adjustments) | -0.8 | -0.1 | -0.5 |
End of year balance | 112.4 | 111.4 | 114 |
Balance individually evaluated | 2 | 3.8 | 0.6 |
Receivables: | |||
End of year balance | 30,505.90 | 28,833.30 | 25,204.30 |
Balance individually evaluated | 25.9 | 54 | 11.6 |
Retail notes | |||
Allowance: | |||
Beginning of year balance | 50.7 | 56.4 | 67.8 |
Provision (credit) for credit losses | 13.2 | -1.9 | -10.4 |
Write-offs | -12.7 | -9.4 | -7.4 |
Recoveries | 5.5 | 5.9 | 6.8 |
Other changes (primarily translation adjustments) | -0.6 | -0.3 | -0.4 |
End of year balance | 56.1 | 50.7 | 56.4 |
Balance individually evaluated | 1.7 | ||
Receivables: | |||
End of year balance | 19,461.30 | 18,246.50 | 15,728.80 |
Balance individually evaluated | 24.5 | 21.3 | 10.6 |
Revolving charge accounts | |||
Allowance: | |||
Beginning of year balance | 39.7 | 40.2 | 39.7 |
Provision (credit) for credit losses | 10.5 | 4 | 7.9 |
Write-offs | -24.6 | -19.8 | -28.8 |
Recoveries | 14.3 | 15.3 | 21.4 |
End of year balance | 39.9 | 39.7 | 40.2 |
Balance individually evaluated | 0.2 | 0.5 | |
Receivables: | |||
End of year balance | 2,535.90 | 2,534.90 | 2,427.70 |
Balance individually evaluated | 0.2 | 0.3 | 0.5 |
Wholesale receivables | |||
Allowance: | |||
Beginning of year balance | 6.4 | 5.9 | 6 |
Provision (credit) for credit losses | 9 | 0.1 | 0.9 |
Write-offs | -7.7 | -0.3 | -1 |
Recoveries | 0.1 | 0.2 | 0.1 |
Other changes (primarily translation adjustments) | -0.2 | 0.5 | -0.1 |
End of year balance | 7.6 | 6.4 | 5.9 |
Balance individually evaluated | 0.1 | 0.1 | 0.1 |
Receivables: | |||
End of year balance | 7,919.10 | 7,464.70 | 6,483.10 |
Balance individually evaluated | 1.2 | 0.1 | 0.2 |
Other | |||
Allowance: | |||
Beginning of year balance | 14.6 | 11.5 | 12.8 |
Provision (credit) for credit losses | -5.4 | 4.2 | 1.4 |
Write-offs | -0.7 | -1.9 | -3.5 |
Recoveries | 0.3 | 1.1 | 0.8 |
Other changes (primarily translation adjustments) | -0.3 | ||
End of year balance | 8.8 | 14.6 | 11.5 |
Balance individually evaluated | 3.7 | ||
Receivables: | |||
End of year balance | 589.6 | 587.2 | 564.7 |
Balance individually evaluated | $32.30 | $0.30 |
Allowance_for_Credit_Losses_an4
Allowance for Credit Losses and Credit Quality of Receivables (Details 3) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Additional Receivable Disclosures | ||
Investment in non-performing Receivables | $71.20 | $60 |
Total non-performing Receivables as a percentage of Receivables outstanding | 0.23% | 0.21% |
Minimum number of days for a receivable to be considered past due | 30 days | |
Total Receivables 30 days or more past due and still accruing finance income | 266.2 | 233.2 |
Total past due amounts as a percentage of total Receivables outstanding | 0.87% | 0.81% |
Allowance for credit losses as a percentage of total Receivables outstanding | 0.37% | 0.39% |
Deposits primarily withheld from John Deere dealers and merchants available for certain potential credit losses | $167.40 | $173.80 |
Allowance_for_Credit_Losses_an5
Allowance for Credit Losses and Credit Quality of Receivables (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
item | item | item | |
Recorded Investment | |||
Receivables with specific allowance | $7.30 | $18.10 | |
Receivables without specific allowance | 5.9 | 7.2 | |
Total | 13.2 | 25.3 | |
Unpaid Principal Balance | |||
Receivables with specific allowance | 7.2 | 18 | |
Receivables without specific allowance | 5.7 | 7.1 | |
Total | 12.9 | 25.1 | |
Specific Allowance | 2 | 3.8 | |
Average Recorded Investment | |||
Receivables with specific allowance | 8.7 | 19 | |
Receivables without specific allowance | 6.1 | 8 | |
Total | 14.8 | 27 | |
Receivables Related to Troubled Debt Restructurings | |||
Receivable contracts in troubled debt restructuring, number | 66 | 92 | 138 |
Receivables in troubled debt restructurings, aggregate balances, pre-modification | 3 | 16 | 5 |
Receivables in troubled debt restructurings, aggregate balances, post-modification | 2 | 15 | 4 |
Agriculture and turf | |||
Recorded Investment | |||
Total | 11.7 | 23.2 | |
Unpaid Principal Balance | |||
Total | 11.4 | 23 | |
Specific Allowance | 2 | 3.8 | |
Average Recorded Investment | |||
Total | 13 | 24.6 | |
Construction and forestry | |||
Recorded Investment | |||
Total | 1.5 | 2.1 | |
Unpaid Principal Balance | |||
Total | 1.5 | 2.1 | |
Average Recorded Investment | |||
Total | 1.8 | 2.4 | |
Retail notes | |||
Recorded Investment | |||
Receivables with specific allowance | 7 | ||
Receivables without specific allowance | 5.9 | 7.2 | |
Unpaid Principal Balance | |||
Receivables with specific allowance | 6.9 | ||
Receivables without specific allowance | 5.7 | 7.1 | |
Specific Allowance | 1.7 | ||
Average Recorded Investment | |||
Receivables with specific allowance | 8.4 | ||
Receivables without specific allowance | 6.1 | 8 | |
Revolving charge accounts | |||
Recorded Investment | |||
Receivables with specific allowance | 0.2 | ||
Unpaid Principal Balance | |||
Receivables with specific allowance | 0.2 | ||
Specific Allowance | 0.2 | ||
Average Recorded Investment | |||
Receivables with specific allowance | 0.2 | ||
Wholesale receivables | |||
Recorded Investment | |||
Receivables with specific allowance | 0.1 | 0.1 | |
Unpaid Principal Balance | |||
Receivables with specific allowance | 0.1 | 0.1 | |
Specific Allowance | 0.1 | 0.1 | |
Average Recorded Investment | |||
Receivables with specific allowance | 0.1 | 0.2 | |
Operating loans | |||
Recorded Investment | |||
Receivables with specific allowance | 18 | ||
Unpaid Principal Balance | |||
Receivables with specific allowance | 17.9 | ||
Specific Allowance | 3.7 | ||
Average Recorded Investment | |||
Receivables with specific allowance | $18.80 |
Allowance_for_Credit_Losses_an6
Allowance for Credit Losses and Credit Quality of Receivables (Details 5) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Dollars | |||
Total write-offs | ($45.70) | ($31.40) | ($40.70) |
Total recoveries | 20.2 | 22.5 | 29.1 |
Total net write-offs | -25.5 | -8.9 | -11.6 |
Percent | |||
Total write-offs (as a percent) | -0.16% | -0.12% | -0.18% |
Total recoveries (as a percent) | 0.07% | 0.09% | 0.13% |
Total net write-offs (as a percent) | -0.09% | -0.03% | -0.05% |
Retail notes | |||
Dollars | |||
Total write-offs | -12.7 | -9.4 | -7.4 |
Total recoveries | 5.5 | 5.9 | 6.8 |
Percent | |||
Total write-offs (as a percent) | -0.07% | -0.06% | -0.05% |
Total recoveries (as a percent) | 0.03% | 0.04% | 0.05% |
Retail notes | Agriculture and turf equipment | |||
Dollars | |||
Total write-offs | -6.1 | -4.3 | -3.4 |
Total recoveries | 3.3 | 3.6 | 3.9 |
Percent | |||
Total write-offs (as a percent) | -0.04% | -0.03% | -0.03% |
Total recoveries (as a percent) | 0.02% | 0.03% | 0.03% |
Retail notes | Construction and forestry equipment | |||
Dollars | |||
Total write-offs | -6.6 | -5.1 | -4 |
Total recoveries | 2.2 | 2.3 | 2.9 |
Percent | |||
Total write-offs (as a percent) | -0.33% | -0.33% | -0.32% |
Total recoveries (as a percent) | 0.11% | 0.15% | 0.23% |
Revolving charge accounts | |||
Dollars | |||
Total write-offs | -24.6 | -19.8 | -28.8 |
Total recoveries | 14.3 | 15.3 | 21.4 |
Percent | |||
Total write-offs (as a percent) | -1.11% | -0.89% | -1.29% |
Total recoveries (as a percent) | 0.65% | 0.69% | 0.96% |
Wholesale receivables | |||
Dollars | |||
Total write-offs | -7.7 | -0.3 | -1 |
Total recoveries | 0.1 | 0.2 | 0.1 |
Percent | |||
Total write-offs (as a percent) | -0.09% | 0.00% | -0.02% |
Total recoveries (as a percent) | 0.00% | 0.00% | 0.00% |
Financing leases | |||
Dollars | |||
Total write-offs | -0.5 | -1.8 | -1.6 |
Total recoveries | 0.2 | 0.5 | 0.3 |
Percent | |||
Total write-offs (as a percent) | -0.09% | -0.34% | -0.34% |
Total recoveries (as a percent) | 0.04% | 0.09% | 0.06% |
Operating loans | |||
Dollars | |||
Total write-offs | -0.2 | -0.1 | -1.9 |
Total recoveries | $0.10 | $0.60 | $0.50 |
Percent | |||
Total write-offs (as a percent) | -1.45% | -0.25% | -3.12% |
Total recoveries (as a percent) | 0.73% | 1.50% | 0.82% |
Securitization_of_Receivables_1
Securitization of Receivables (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Securitization of Receivables | ||
Unconsolidated conduits, carrying value of liabilities | $1,267.10 | |
Unconsolidated conduits, maximum exposure to loss | 1,330.80 | |
Total assets | 34,779.70 | 31,664.20 |
Retail notes securitized | 4,615.90 | 4,167.20 |
Allowance for credit losses - securitization transactions | -13.6 | -14.1 |
Other assets - securitization transactions | 107.6 | 100.2 |
Total restricted securitized assets - securitization transactions | 4,709.90 | 4,253.30 |
Securitization borrowings | 4,558.50 | 4,109.10 |
Accounts payable and accrued expenses - securitization transactions | 1.5 | 1.3 |
Total liabilities related to restricted securitized assets - securitization transactions | 4,560 | 4,110.40 |
Maximum remaining term of all restricted receivables | 6 years | |
VIE-Primary Beneficiary | ||
Securitization of Receivables | ||
Total restricted securitized assets - securitization transactions | 3,011 | 2,626 |
Total liabilities related to restricted securitized assets - securitization transactions | 2,942 | 2,547 |
Non-VIE Banking Operation | ||
Securitization of Receivables | ||
Total restricted securitized assets - securitization transactions | 368 | 353 |
Total liabilities related to restricted securitized assets - securitization transactions | 351 | 338 |
VIE-Not Primary Beneficiary | ||
Securitization of Receivables | ||
Total assets | 40,000 | |
Total restricted securitized assets - securitization transactions | 1,331 | 1,274 |
Total liabilities related to restricted securitized assets - securitization transactions | $1,267 | $1,225 |
Equipment_on_Operating_Leases_1
Equipment on Operating Leases (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Equipment on Operating Leases | |||
Impairment losses on operating leases | $3 | $0 | $0 |
Equipment on Operating Leases | |||
Total | 3,049.50 | 2,248.30 | |
Accumulated depreciation | -459.2 | -376.2 | |
Equipment on operating leases - net | 2,590.30 | 1,872.10 | |
Due in: | |||
0-12 months | 372.7 | 284 | |
13-24 months | 235.7 | 176.6 | |
25-36 months | 115.3 | 86.1 | |
37-48 months | 52.2 | 42.3 | |
Over 48 months | 10.3 | 5.6 | |
Total | 786.2 | 594.6 | |
Minimum payment default period | 30 days | ||
Past due balances of operating leases | 44 | 30 | |
Operating Leases | John Deere | |||
Equipment on Operating Leases | |||
Finance income earned on Receivables and Leases containing waiver of finance charges or reduced rates | 12 | 8 | 6 |
Minimum | |||
Equipment on Operating Leases | |||
Initial lease terms, operating | 4 months | ||
Maximum | |||
Equipment on Operating Leases | |||
Initial lease terms, operating | 60 months | ||
Agriculture and turf equipment | |||
Equipment on Operating Leases | |||
Total | 2,229.90 | 1,706.20 | |
Construction and forestry | |||
Equipment on Operating Leases | |||
Total | $819.60 | $542.10 |
ShortTerm_Borrowings_Details
Short-Term Borrowings (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Short-Term Borrowings | ||
Commercial paper and other notes payable | $2,172.80 | $2,768.50 |
Securitization borrowings | 4,558.50 | 4,109.10 |
John Deere | 2,052.20 | 2,234.10 |
Current maturities of long-term borrowings | 3,899 | 3,602.20 |
Total short-term borrowings | 12,682.50 | 12,713.90 |
Payment Schedule for Securitization Borrowings Based on Expected Liquidation of Retail Notes | ||
Weighted-average interest rate on total short-term borrowings, excluding current maturities of long-term borrowings (as a percent) | 0.60% | 0.60% |
Securitization borrowings | ||
Payment Schedule for Securitization Borrowings Based on Expected Liquidation of Retail Notes | ||
Payment schedule for securitization borrowings based on expected liquidation of the retail notes, 2015 | 2,383 | |
Payment schedule for securitization borrowings based on expected liquidation of the retail notes, 2016 | 1,342 | |
Payment schedule for securitization borrowings based on expected liquidation of the retail notes, 2017 | 636 | |
Payment schedule for securitization borrowings based on expected liquidation of the retail notes, 2018 | 176 | |
Payment schedule for securitization borrowings based on expected liquidation of the retail notes, 2019 | 21 | |
Payment schedule for securitization borrowings based on expected liquidation of the retail notes, 2020 | $1 |
ShortTerm_Borrowings_Details_2
Short-Term Borrowings (Details 2) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Oct. 31, 2014 |
Line of Credit Facility | |
Lines of credit available from U.S. and foreign banks | $6,027 |
Lines of credit unused | 3,367 |
Consolidated ratio of earnings to fixed charges required by the credit agreements, minimum at the end of each fiscal quarter | 1.05 |
Ratio of senior debt, excluding securitization indebtedness, to capital base (total subordinated debt and stockholder's equity excluding accumulated other comprehensive income (loss)) required by the credit agreements, maximum at the end of any fiscal quarter | 11 |
Deere & Company | |
Agreement with Deere & Company | |
Minimum ownership percentage by Deere & Company in Capital Corporation capital stock | 51.00% |
Minimum consolidated tangible net worth of Capital Corporation to be maintained by Deere & Company | 50 |
Minimum ratio of earnings to fixed charges of Capital Corporation to be maintained by Deere & Company | 1.05 |
Line of Credit Facility Expiring April, 2018 | |
Line of Credit Facility | |
Lines of credit available from U.S. and foreign banks | 2,500 |
Line of Credit Facility Expiring April, 2019 | |
Line of Credit Facility | |
Lines of credit available from U.S. and foreign banks | $2,500 |
LongTerm_Borrowings_Details
Long-Term Borrowings (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Long-Term Borrowings | ||
Total senior debt | $17,071.30 | $14,209.60 |
Unamortized debt discount | -15 | -14.5 |
Total | 17,056.30 | 14,195.10 |
Principal Amounts of Long-Term Borrowings Maturing in Each of Next Five Years | ||
2015 | 3,899 | |
2016 | 4,496 | |
2017 | 3,650 | |
2018 | 2,678 | |
2019 | 2,528 | |
Medium-term notes due 2015-2024 | ||
Long-Term Borrowings | ||
Total senior debt | 16,573 | 13,693.40 |
Principal amount | 16,375 | 13,447 |
Average interest rates (as a percent) | 1.10% | 1.10% |
2.75% Senior notes due 2022 | ||
Long-Term Borrowings | ||
Total senior debt | 498.1 | 491.1 |
Debt instrument, stated interest rate (as a percent) | 2.75% | 2.75% |
Principal amount | 500 | 500 |
Portion of debt swapped to variable interest rates, amount | 500 | 500 |
Variable interest rates, debt swaps (as a percent) | 0.90% | 0.90% |
Other notes | ||
Long-Term Borrowings | ||
Total senior debt | $0.20 | $25.10 |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Leases | |||
Total rental expense for operating leases | $3 | $2 | $4 |
Operating Leases, Future Minimum Lease Payments | |||
Future minimum lease payments under operating leases | 5 | ||
2015 | 2 | ||
2016 | 1 | ||
2017 | 1 | ||
2018 | $1 |
Capital_Stock_Details
Capital Stock (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2014 |
Capital Stock | |||
Number of shares of preferred stock authorized, but not issued | 10,000 | 10,000 | |
Par value of preferred stock (in dollars per share) | $1 | $1 | |
Capital investment from JDFS | $50 | $160 |
Dividends_Details
Dividends (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Dividends | ||
Cash dividends declared and paid to JDFS | $140 | $165 |
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Pensions | |||
Defined Benefit Plan Disclosure | |||
Expenses related to defined benefit plans | $6.40 | $8.70 | $5.60 |
Health Care and Life Insurance | |||
Defined Benefit Plan Disclosure | |||
Expenses related to defined benefit plans | $8.40 | $11.50 | $7.90 |
Stock_Option_Awards_Details
Stock Option Awards (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Stock Option Awards | |||
Total share-based compensation expense | $5.30 | $4.90 | $5 |
Income tax benefit recognized in net income | $2 | $1.80 | $1.80 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Current: | |||||||||||
U.S. - Federal | $274.40 | $174.60 | $173.60 | ||||||||
U.S. - State | 7.9 | 6.8 | 10.1 | ||||||||
Foreign | 21.2 | 32.6 | 34 | ||||||||
Total current | 303.5 | 214 | 217.7 | ||||||||
Deferred: | |||||||||||
U.S. - Federal | -33.7 | 42.4 | 4.4 | ||||||||
U.S. - State | 0.6 | 0.8 | 1.6 | ||||||||
Foreign | -9.8 | 1.2 | -5.9 | ||||||||
Total deferred | -42.9 | 44.4 | 0.1 | ||||||||
Provision for income taxes | 79.9 | 71.6 | 70.6 | 38.5 | 72.3 | 72.2 | 63.7 | 50.2 | 260.6 | 258.4 | 217.8 |
Comparison of the Statutory and Effective Income Tax Provision | |||||||||||
U.S. federal income tax provision statutory rate (as a percent) | 35.00% | ||||||||||
U.S. federal income tax provision at a statutory rate of 35 percent | 281 | 254 | 209.7 | ||||||||
Increase (Decrease) Resulting from: | |||||||||||
Municipal lease income not taxable | -1.4 | -1.4 | -1.5 | ||||||||
Tax rates on foreign earnings | -8 | -7.2 | -6.3 | ||||||||
Foreign tax benefit | -23.1 | ||||||||||
State and local income taxes, net of federal income tax benefit | 5.5 | 4.9 | 7.6 | ||||||||
Other - net | 6.6 | 8.1 | 8.3 | ||||||||
Provision for income taxes | 79.9 | 71.6 | 70.6 | 38.5 | 72.3 | 72.2 | 63.7 | 50.2 | 260.6 | 258.4 | 217.8 |
Accumulated earnings of certain subsidiaries outside the U.S. for which no provision for U.S. income or foreign withholding taxes has been made | 303.6 | 303.6 | |||||||||
Determination of the amount of unrecognized deferred tax liability on unremitted earnings | 0 | 0 | |||||||||
Cash and cash equivalents held by foreign subsidiaries | $56.40 | $56.40 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred Tax Assets | ||
Allowance for credit losses | $46 | $43.10 |
Unrealized gain/loss on derivatives | 0.3 | 2 |
Accrual for retirement and other benefits | 25.5 | 22.2 |
Federal taxes on deferred state tax deductions | 13.6 | 12.6 |
Tax loss and tax credit carryforwards | 5.3 | 5.4 |
Miscellaneous accruals and other | 18.6 | 5.3 |
Less valuation allowances | -1.1 | -0.8 |
Deferred income tax assets | 108.2 | 89.8 |
Deferred Tax Liabilities | ||
Lease transactions | 381.2 | 406.2 |
Tax over book depreciation | 5 | 2.9 |
Deferred retail note finance income | 4.1 | 3.9 |
Deferred income tax liabilities | 390.3 | 413 |
Additional Deferred income Tax Information | ||
Tax loss and tax credit carryforwards, expiring from 2015 through 2034 | 4.4 | |
Tax loss and tax credit carryforwards with an indefinite carryforward period | $0.90 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Reconciliation of the Total Amounts of Unrecognized Tax Benefits | |||
Beginning of year balance | $33.60 | $32.50 | $30 |
Increases to tax positions taken during the current year | 12.1 | 11.8 | 12 |
Increases to tax positions taken during prior years | 0.7 | 1.1 | 0.8 |
Decreases to tax positions taken during prior years | -7 | -7.8 | -6.6 |
Decreases due to lapse of statute of limitations | -3.2 | -4 | -3.6 |
Foreign exchange | -0.1 | ||
End of year balance | 36.2 | 33.6 | 32.5 |
Unrecognized tax benefits affecting effective tax rate if recognized | 20.2 | ||
Total amount of expense from interest and penalties | 1.7 | 0.4 | 0.2 |
Accrued interest and penalties on income tax | $14.40 | $12.80 |
Other_Income_and_Administrativ2
Other Income and Administrative and Operating Expenses (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Other income - net | |||
Fees from John Deere | $43.20 | $45.50 | $43 |
Other | 27.1 | 25.7 | 25.1 |
Total | 70.3 | 71.2 | 68.1 |
Administrative and operating expenses | |||
Compensation and benefits | 261.2 | 253.2 | 209.6 |
Other | 149.4 | 124.1 | 129.7 |
Total | $410.60 | $377.30 | $339.30 |
Cash_Flow_Information_Details
Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Cash Flow Information | |||
Cash payments for interest | $315 | $364 | $506 |
Cash payments for income taxes | $301 | $228 | $204 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Oct. 31, 2014 |
John Deere Financial Inc. | Guarantees of debt and derivatives | Commercial paper | |
Guarantee Obligations | |
Guarantee obligations maximum exposure | $442 |
John Deere Financial Inc. | Guarantees of debt and derivatives | Medium-term notes | |
Guarantee Obligations | |
Guarantee obligations maximum exposure | 469 |
Weighted average interest rate (as a percent) | 4.80% |
Maximum remaining maturity | 1 year |
John Deere Financial Inc. | Guarantees of debt and derivatives | Derivative Instruments | |
Guarantee Obligations | |
Guarantee obligations maximum exposure | 8 |
Notional amount | 2,364 |
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 | $1,565 |
Weighted average interest rate (as a percent) | 2.30% |
Maximum remaining maturity | 5 years |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details 2) (USD $) | Oct. 31, 2014 |
Commitments | |
Restricted other assets | $33,000,000 |
John Deere dealers | |
Commitments | |
Unused commitments | 8,000,000,000 |
Customers | |
Commitments | |
Unused commitments | $27,200,000,000 |
Minimum percentage of unused commitments to extend credit to customers that relate to revolving charge accounts | 95.00% |
Other_Comprehensive_Income_Ite2
Other Comprehensive Income Items (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
After-tax changes in accumulated other comprehensive income (loss) | |||
Beginning of year balance | $35.60 | $21.60 | $54.10 |
Current period activity | -30.2 | 14 | -32.5 |
End of year balance | 5.4 | 35.6 | 21.6 |
Cumulative translation adjustment | |||
After-tax changes in accumulated other comprehensive income (loss) | |||
Beginning of year balance | 39.5 | 33.2 | 62.4 |
Current period activity | -33.5 | 6.3 | -29.2 |
End of year balance | 6 | 39.5 | 33.2 |
Unrealized gain (loss) on derivatives | |||
After-tax changes in accumulated other comprehensive income (loss) | |||
Beginning of year balance | -3.9 | -11.6 | -8.3 |
Current period activity | 3.3 | 7.7 | -3.3 |
End of year balance | ($0.60) | ($3.90) | ($11.60) |
Other_Comprehensive_Income_Ite3
Other Comprehensive Income Items (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Other comprehensive income (loss), before tax | |||
Cumulative translation adjustment, before tax | ($33.50) | $6.30 | ($29.20) |
Net unrealized gain (loss) on derivatives, before tax | |||
Unrealized hedging gain (loss), before tax | -10.2 | 33.3 | -60.5 |
Net unrealized gain (loss) on derivatives, before tax | 5.1 | 11.8 | -5.1 |
Total other comprehensive income (loss), before tax | -28.4 | 18.1 | -34.3 |
Net unrealized gain (loss) on derivatives, tax (expense) credit | |||
Unrealized hedging gain (loss), tax (expense) credit | -3.6 | -11.6 | 21.4 |
Net unrealized gain (loss) on derivatives, tax (expense) credit | -1.8 | -4.1 | 1.8 |
Total other comprehensive income (loss), tax (expense) credit | -1.8 | -4.1 | 1.8 |
Other comprehensive income (loss), after tax | |||
Cumulative translation adjustment, after tax | -33.5 | 6.3 | -29.2 |
Unrealized gain (loss) on derivatives, after tax | |||
Unrealized hedging gain (loss), after tax | -6.6 | 21.7 | -39.1 |
Net unrealized gain (loss) on derivatives, after tax | 3.3 | 7.7 | -3.3 |
Other comprehensive income (loss), net of income taxes | -30.2 | 14 | -32.5 |
Interest rate contracts | Interest expense | |||
Net unrealized gain (loss) on derivatives, before tax | |||
Reclassification of realized (gain) loss to, before tax | 9.8 | 17.8 | 13.1 |
Net unrealized gain (loss) on derivatives, tax (expense) credit | |||
Reclassification of realized (gain) loss to, tax expense (credit) | -3.5 | -6.2 | -4.6 |
Unrealized gain (loss) on derivatives, after tax | |||
Reclassification of realized (gain) loss to, after tax | 6.3 | 11.6 | 8.5 |
Foreign exchange contracts | Administrative and operating expenses | |||
Net unrealized gain (loss) on derivatives, before tax | |||
Reclassification of realized (gain) loss to, before tax | 5.5 | -39.3 | 42.3 |
Net unrealized gain (loss) on derivatives, tax (expense) credit | |||
Reclassification of realized (gain) loss to, tax expense (credit) | -1.9 | 13.7 | -15 |
Unrealized gain (loss) on derivatives, after tax | |||
Reclassification of realized (gain) loss to, after tax | $3.60 | ($25.60) | $27.30 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Values of Financial Instruments | ||
Securitization borrowings | $4,558.50 | $4,109.10 |
Current maturities of long-term borrowings | 3,899 | 3,602.20 |
Long-term borrowings | 17,056.30 | 14,195.10 |
Fair Value, Level 2 | ||
Fair Values of Financial Instruments | ||
Securitization borrowings | 4,561.60 | 4,112.80 |
Current maturities of long-term borrowings | 3,910.10 | 3,623.10 |
Long-term borrowings | 17,212.90 | 14,331.30 |
Fair Value, Level 3 | ||
Fair Values of Financial Instruments | ||
Receivables financed - net | 25,716.90 | 24,458.90 |
Retail notes securitized - net | 4,573.40 | 4,124.40 |
Carrying Value | ||
Fair Values of Financial Instruments | ||
Receivables financed - net | 25,791.20 | 24,568.80 |
Retail notes securitized - net | 4,602.30 | 4,153.10 |
Securitization borrowings | 4,558.50 | 4,109.10 |
Current maturities of long-term borrowings | 3,899 | 3,602.20 |
Long-term borrowings | $17,056.30 | $14,195.10 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | ||
Derivative assets | $306.90 | $334.50 |
Derivative liabilities | 83.8 | 147.6 |
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 | 306.9 | 334.5 |
Derivative liabilities | 83.8 | 147.6 |
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 | 183.7 | 175.5 |
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 | 117.3 | 156.8 |
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 | 52.2 | 84.8 |
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 | 23 | 29.9 |
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 | 3.1 | 1 |
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 | 8.6 | 15.8 |
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 | 2.8 | 1.1 |
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 | |
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 | |
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 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Assets and liabilities measured at fair value | |||
Total Receivables - net | $30,393.50 | $28,721.90 | |
Fair Value, Nonrecurring Measurements | Level 3 | |||
Assets and liabilities measured at fair value | |||
Total Receivables - net | 5.3 | 14.3 | |
(Gains) losses on fair value of receivables | -1.8 | 3.7 | 0.6 |
Fair Value, Nonrecurring Measurements | Level 3 | Retail notes | |||
Assets and liabilities measured at fair value | |||
Total Receivables - net | 5.3 | ||
(Gains) losses on fair value of receivables | 1.7 | ||
Fair Value, Nonrecurring Measurements | Level 3 | Revolving charge accounts | |||
Assets and liabilities measured at fair value | |||
(Gains) losses on fair value of receivables | 0.2 | 0.5 | |
Fair Value, Nonrecurring Measurements | Level 3 | Wholesale receivables | |||
Assets and liabilities measured at fair value | |||
(Gains) losses on fair value of receivables | 0.1 | ||
Fair Value, Nonrecurring Measurements | Level 3 | Operating loans | |||
Assets and liabilities measured at fair value | |||
Total Receivables - net | 14.3 | ||
(Gains) losses on fair value of receivables | ($3.70) | $3.70 |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Cash Flow Hedges | ||
Cash flow hedge gain (loss) recorded in OCI to be reclassified within twelve months | ($4) | |
Maximum maturity of cash flow hedge interest rate and cross-currency interest rate contracts | 37 months | |
Gains or losses reclassified from OCI to earnings | 0 | |
Interest rate contracts | Cash flow hedges | ||
Cash Flow Hedges | ||
Notional amounts | 3,050 | 3,100 |
Cross-Currency Interest Rate Contracts | Cash flow hedges | ||
Cash Flow Hedges | ||
Notional amounts | $0 | $746 |
Derivative_Instruments_Details1
Derivative Instruments (Details 2) (Interest Rate Contracts, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Gain (Loss) on Fair Value Hedges | ||
Gains (losses) on interest rate contracts | ($12.80) | ($237.50) |
Net accrued interest income on interest rate contracts | 161 | 146.6 |
Gains (losses) on borrowings | 10.8 | 237.7 |
Accrued interest expense on borrowings | 248 | 237.9 |
Fair Value Hedges | ||
Gains (losses) on ineffective portion of interest rate fair value hedge derivatives | -2 | 0.2 |
Fair Value Hedges | ||
Fair Value Hedges | ||
Notional amounts | $8,228 | $6,864 |
Derivative_Instruments_Details2
Derivative Instruments (Details 3) (Not Designated as Hedging Instruments, USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Interest rate contracts | ||
Derivatives Not Designated as Hedging Instruments | ||
Notional amounts | $3,076 | $2,950 |
Foreign Exchange Contracts | ||
Derivatives Not Designated as Hedging Instruments | ||
Notional amounts | 1,364 | 1,339 |
Cross-Currency Interest Rate Contracts | ||
Derivatives Not Designated as Hedging Instruments | ||
Notional amounts | 98 | 85 |
Interest Rate Caps- Purchased | ||
Derivatives Not Designated as Hedging Instruments | ||
Notional amounts | 1,703 | 1,641 |
Interest Rate Caps- Sold | ||
Derivatives Not Designated as Hedging Instruments | ||
Notional amounts | $1,703 | $1,641 |
Derivative_Instruments_Details3
Derivative Instruments (Details 4) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value of Derivative Instruments | ||
Total derivative assets | $306.90 | $334.50 |
Total derivative liabilities | 83.8 | 147.6 |
Designated as Hedging Instruments | Other Payables to John Deere | ||
Fair Value of Derivative Instruments | ||
Total derivative liabilities | 35.3 | 71.4 |
Designated as Hedging Instruments | Interest Rate Contracts | Receivables from John Deere | ||
Fair Value of Derivative Instruments | ||
Total derivative assets | 148.1 | 144.3 |
Designated as Hedging Instruments | Interest Rate Contracts | Other Assets | ||
Fair Value of Derivative Instruments | ||
Total derivative assets | 107.5 | 140.5 |
Designated as Hedging Instruments | Interest Rate Contracts | Other Payables to John Deere | ||
Fair Value of Derivative Instruments | ||
Total derivative liabilities | 35.3 | 71 |
Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Other Payables to John Deere | ||
Fair Value of Derivative Instruments | ||
Total derivative liabilities | 0.4 | |
Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Accounts Payable and Accrued Expenses | ||
Fair Value of Derivative Instruments | ||
Total derivative liabilities | 16 | |
Not Designated as Hedging Instruments | Receivables from John Deere | ||
Fair Value of Derivative Instruments | ||
Total derivative assets | 38.4 | 32.3 |
Not Designated as Hedging Instruments | Other Assets | ||
Fair Value of Derivative Instruments | ||
Total derivative assets | 12.9 | 17.4 |
Not Designated as Hedging Instruments | Other Payables to John Deere | ||
Fair Value of Derivative Instruments | ||
Total derivative liabilities | 16.9 | 14.5 |
Not Designated as Hedging Instruments | Accounts Payable and Accrued Expenses | ||
Fair Value of Derivative Instruments | ||
Total derivative liabilities | 31.6 | 45.7 |
Not Designated as Hedging Instruments | Interest Rate Contracts | Receivables from John Deere | ||
Fair Value of Derivative Instruments | ||
Total derivative assets | 35.6 | 31.2 |
Not Designated as Hedging Instruments | Interest Rate Contracts | Other Assets | ||
Fair Value of Derivative Instruments | ||
Total derivative assets | 9.8 | 16.3 |
Not Designated as Hedging Instruments | Interest Rate Contracts | Other Payables to John Deere | ||
Fair Value of Derivative Instruments | ||
Total derivative liabilities | 16.9 | 13.8 |
Not Designated as Hedging Instruments | Interest Rate Contracts | Accounts Payable and Accrued Expenses | ||
Fair Value of Derivative Instruments | ||
Total derivative liabilities | 23 | 29.9 |
Not Designated as Hedging Instruments | Foreign Exchange Contracts | Other Assets | ||
Fair Value of Derivative Instruments | ||
Total derivative assets | 3.1 | 1 |
Not Designated as Hedging Instruments | Foreign Exchange Contracts | Accounts Payable and Accrued Expenses | ||
Fair Value of Derivative Instruments | ||
Total derivative liabilities | 8.6 | 15.8 |
Not Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Receivables from John Deere | ||
Fair Value of Derivative Instruments | ||
Total derivative assets | 2.8 | 1.1 |
Not Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Other Assets | ||
Fair Value of Derivative Instruments | ||
Total derivative assets | 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 | $0.70 |
Derivative_Instruments_Details4
Derivative Instruments (Details 5) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Classification and gains (losses) including accrued interest expense related to derivative instruments | |||
Not designated as hedges, gains (losses) | $57.60 | $16.30 | ($0.90) |
John Deere | |||
Classification and gains (losses) including accrued interest expense related to derivative instruments | |||
Gain (loss) on derivatives transactions with affiliate party | 146 | -100 | 281 |
Interest rate contracts | Interest expense | |||
Classification and gains (losses) including accrued interest expense related to derivative instruments | |||
Fair value hedges, gains (losses) | 148.2 | -90.9 | 332.4 |
Not designated as hedges, gains (losses) | 5 | -4.5 | -8.6 |
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) | -9.8 | -17.8 | -13.1 |
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) | -6.1 | -14.6 | -22.1 |
Cash flow hedges, foreign exchange contracts, recognized in OCI, effective portion, gains (losses) | -4.1 | 47.9 | -38.4 |
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) | 52.6 | 20.8 | 7.7 |
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) | $39.30 | ($42.30) |
Derivative_Instruments_Details5
Derivative Instruments (Details 6) (Derivative Instruments, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Counterparty Risk and Collateral | ||
Aggregate liability positions for derivatives with credit-risk-related contingent features | $0 | $0 |
John Deere | ||
Counterparty Risk and Collateral | ||
Increase (decrease) in maximum loss if derivative counterparties fail to meet obligations - loss sharing agreement | $8 | $17 |
Derivative_Instruments_Details6
Derivative Instruments (Details 7) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative assets | ||
Gross Amounts Recognized | $306.90 | $334.50 |
Derivative liabilities | ||
Gross Amounts Recognized | 83.8 | 147.6 |
John Deere | ||
Derivative assets | ||
Gross Amounts Recognized | 186.5 | 176.6 |
Netting Arrangements | -50.4 | -82.9 |
Net Amount | 136.1 | 93.7 |
Derivative liabilities | ||
Gross Amounts Recognized | 52.2 | 85.9 |
Netting Arrangements | -50.4 | -82.9 |
Net Amount | 1.8 | 3 |
External | ||
Derivative assets | ||
Gross Amounts Recognized | 120.4 | 157.9 |
Netting Arrangements | -24.3 | -42.6 |
Collateral Received | -2.4 | |
Net Amount | 96.1 | 112.9 |
Derivative liabilities | ||
Gross Amounts Recognized | 31.6 | 61.7 |
Netting Arrangements | -24.3 | -42.6 |
Net Amount | $7.30 | $19.10 |
Geographic_Area_Information_De
Geographic Area Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
item | |||||||||||
Geographic Area Information | |||||||||||
Number of operating segments | 1 | ||||||||||
Geographic Area Information | |||||||||||
Revenues | $521.90 | $487.60 | $454.50 | $431.80 | $476.40 | $451.70 | $431.30 | $408.10 | $1,895.80 | $1,767.50 | $1,674.60 |
Operating profit (loss) | 804.8 | 726.9 | 600.5 | ||||||||
Receivables | 30,505.90 | 28,833.30 | 30,505.90 | 28,833.30 | 25,204.30 | ||||||
U.S. | |||||||||||
Geographic Area Information | |||||||||||
Revenues | 1,646 | 1,528.70 | 1,445.60 | ||||||||
Operating profit (loss) | 682.2 | 605.7 | 494.2 | ||||||||
Receivables | 26,570 | 24,895.10 | 26,570 | 24,895.10 | 21,553.90 | ||||||
Outside the U.S. | |||||||||||
Geographic Area Information | |||||||||||
Revenues | 249.8 | 238.8 | 229 | ||||||||
Operating profit (loss) | 122.6 | 121.2 | 106.3 | ||||||||
Receivables | $3,935.90 | $3,938.20 | $3,935.90 | $3,938.20 | $3,650.40 |
Unconsolidated_Affiliated_Comp2
Unconsolidated Affiliated Company (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Unconsolidated Affiliated Company | |||||||||||
Ownership percentage in equity method investee | 50.00% | 50.00% | |||||||||
Operations: | |||||||||||
Total revenue | $13.70 | $11.90 | $11.20 | ||||||||
Net income | 3.8 | 2.2 | 2.8 | ||||||||
The Company's equity in net income | 0.3 | 0.3 | 0.5 | 0.8 | 0.1 | 0.2 | 0.5 | 0.3 | 1.9 | 1.1 | 1.4 |
Financial Position: | |||||||||||
Total assets | 202.8 | 189.2 | 202.8 | 189.2 | |||||||
Total external borrowings | 176.3 | 165.7 | 176.3 | 165.7 | |||||||
Total net assets | 21.9 | 20.5 | 21.9 | 20.5 | |||||||
The Company's share of net assets | $10.90 | $10.20 | $10.90 | $10.20 |
Supplemental_Information_Unaud2
Supplemental Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Supplemental Information (Unaudited) | |||||||||||
Revenues | $521.90 | $487.60 | $454.50 | $431.80 | $476.40 | $451.70 | $431.30 | $408.10 | $1,895.80 | $1,767.50 | $1,674.60 |
Interest expense | 74.6 | 69 | 63.4 | 74.1 | 84.4 | 85 | 95.3 | 87.5 | 281.1 | 352.2 | 455.6 |
Operating expenses | 213.5 | 218.1 | 196.7 | 183.5 | 186.9 | 170 | 166.9 | 165.7 | 811.8 | 689.5 | 619.9 |
Provision for income taxes | 79.9 | 71.6 | 70.6 | 38.5 | 72.3 | 72.2 | 63.7 | 50.2 | 260.6 | 258.4 | 217.8 |
Equity in income of unconsolidated affiliate | 0.3 | 0.3 | 0.5 | 0.8 | 0.1 | 0.2 | 0.5 | 0.3 | 1.9 | 1.1 | 1.4 |
Net income attributable to the Company | $154.20 | $129.20 | $124.30 | $136.50 | $132.90 | $124.70 | $105.90 | $105 | $544.20 | $468.50 | $382.70 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 12 Months Ended | 1 Months Ended | |
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Dec. 31, 2014 |
Subsequent Event | |||
Cash dividends declared and paid to JDFS | $140 | $165 | |
Subsequent Event | |||
Subsequent Event | |||
Dividend from JDFS paid to Deere & Co. | 100 | ||
Subsequent Event | Australian dollar denominated medium-term notes due December 2019 | |||
Subsequent Event | |||
Principal amount of notes issued | 227 | ||
Subsequent Event | John Deere Financial Services, Inc. | |||
Subsequent Event | |||
Cash dividends declared and paid to JDFS | $100 |