Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 28, 2024 | Feb. 29, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jan. 28, 2024 | |
Entity File Number | 1-6458 | |
Entity Registrant Name | DEERE JOHN CAPITAL CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-2386361 | |
Entity Address, Address Line One | P.O. Box 5328 | |
Entity Address, City or Town | Madison | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53705-0328 | |
City Area Code | 800 | |
Local Phone Number | 438-7394 | |
Title of 12(b) Security | 2.00% Senior Notes Due 2031 | |
Trading Symbol | JDCC 31 | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,500 | |
Current Fiscal Year End Date | --10-27 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000027673 | |
Amendment Flag | false |
Statements of Consolidated Inco
Statements of Consolidated Income - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Revenues | ||
Finance income earned on retail notes | $ 452.3 | $ 330 |
Lease revenues | 264.8 | 242.5 |
Revolving charge account income | 105.2 | 82.9 |
Finance income earned on wholesale receivables | 271.1 | 151.5 |
Other income | 67.1 | 29.6 |
Total revenues | 1,160.5 | 836.5 |
Expenses | ||
Interest expense | 571.4 | 301 |
Operating expenses: | ||
Depreciation of equipment on operating leases | 167.2 | 164.5 |
Administrative and operating expenses | 132.2 | 136.7 |
Provision for credit losses | 21 | 3.5 |
Total operating expenses | 377.5 | 362.3 |
Total expenses | 948.9 | 663.3 |
Income of Consolidated Group before Income Taxes | 211.6 | 173.2 |
Provision for income taxes | 38.9 | 36.8 |
Income of Consolidated Group | 172.7 | 136.4 |
Equity in income of unconsolidated affiliate | 1.3 | 1 |
Net Income | 174 | 137.4 |
Less: Net income (loss) attributable to noncontrolling interests | (0.5) | (0.2) |
Net Income Attributable to the Company | 174.5 | 137.6 |
Related Party | ||
Expenses | ||
Interest expense | 43.8 | 40 |
Operating expenses: | ||
Fees and interest paid to John Deere | $ 57.1 | $ 57.6 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Statements of Consolidated Comprehensive Income | ||
Net Income | $ 174 | $ 137.4 |
Other Comprehensive Income (Loss), Net of Income Taxes | ||
Cumulative translation adjustment | 26.8 | 66.2 |
Unrealized loss on derivatives | (15.6) | (14.3) |
Unrealized gain on debt securities | 0.6 | 0.4 |
Other Comprehensive Income (Loss), Net of Income Taxes | 11.8 | 52.3 |
Comprehensive Income of Consolidated Group | 185.8 | 189.7 |
Less: Comprehensive loss attributable to noncontrolling interests | (0.5) | (0.2) |
Comprehensive Income Attributable to the Company | $ 186.3 | $ 189.9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Assets | |||
Cash and cash equivalents | $ 1,520.1 | $ 1,487.5 | $ 1,055 |
Marketable securities | 2.3 | 1.4 | 1.8 |
Receivables: | |||
Total receivables | 50,853.4 | 51,344.2 | 42,593.8 |
Allowance for credit losses | (139.6) | (146.4) | (121.7) |
Total receivables - net | 50,713.8 | 51,197.8 | 42,472.1 |
Equipment on operating leases - net | 4,933.4 | 5,051.5 | 4,693.4 |
Investment in unconsolidated affiliate | 29.6 | 27.6 | 25.8 |
Deferred income taxes | 24.1 | 24.6 | 26.9 |
Other assets | 387.6 | 367.5 | 298.4 |
Total Assets | 58,584.3 | 59,115 | 49,347.2 |
Liabilities: | |||
Commercial paper and other notes payable | 6,416.4 | 6,836.1 | 3,637.8 |
Securitization borrowings | 6,116.1 | 6,995.2 | 4,863.9 |
Current maturities of long-term external borrowings | 5,705.1 | 6,059.9 | 6,080.1 |
Total short-term external borrowings | 18,237.6 | 19,891.2 | 14,581.8 |
Deposits held from dealers and merchants | 129.3 | 138.4 | 127.8 |
Deferred income taxes | 431.9 | 456.3 | 192.2 |
Long-term external borrowings | 28,720.4 | 27,439.3 | 23,493.4 |
Total liabilities | 52,710.9 | 53,212.4 | 44,472 |
Commitments and contingencies (Note 9) | |||
Stockholder's equity: | |||
Common stock, without par value (issued and outstanding - 2,500 shares owned by John Deere Financial Services, Inc.) | 2,292.8 | 2,292.8 | 1,482.8 |
Retained earnings | 3,672.7 | 3,713.2 | 3,443.5 |
Accumulated other comprehensive loss | (92.6) | (104.4) | (52.4) |
Total Company stockholder's equity | 5,872.9 | 5,901.6 | 4,873.9 |
Noncontrolling interests | 0.5 | 1 | 1.3 |
Total stockholder's equity | 5,873.4 | 5,902.6 | 4,875.2 |
Total Liabilities and Stockholder's Equity | 58,584.3 | 59,115 | 49,347.2 |
Nonrelated Party | |||
Receivables: | |||
Other receivables | 163.1 | 162 | 108.2 |
Liabilities: | |||
Accounts payable and accrued expenses | 1,082.5 | 1,128.3 | 996.4 |
Related Party | |||
Receivables: | |||
Other receivables | 146.6 | 144.4 | 171.2 |
Notes receivable from John Deere | 663.7 | 650.7 | 494.4 |
Liabilities: | |||
Notes payable to John Deere | 3,512.5 | 3,184 | 4,416.2 |
Accounts payable and accrued expenses | 596.7 | 974.9 | 664.2 |
Securitized | |||
Receivables: | |||
Other assets | 139.9 | 152 | 97.2 |
Retail notes | Unrestricted | |||
Receivables: | |||
Total receivables | 25,716.4 | 24,641.1 | 23,875.5 |
Retail notes | Securitized | |||
Receivables: | |||
Total receivables | $ 6,417.7 | $ 7,356.8 | $ 5,101.4 |
Location of liability for pledged asset | Securitization borrowings | Securitization borrowings | Securitization borrowings |
Revolving charge accounts | |||
Receivables: | |||
Total receivables | $ 2,925.5 | $ 4,594.4 | $ 2,834 |
Allowance for credit losses | (15.3) | (20.4) | (16) |
Wholesale Receivables | |||
Receivables: | |||
Total receivables | 14,542.8 | 13,330.1 | 9,752.1 |
Allowance for credit losses | (9.2) | (11.1) | (10.9) |
Financing Leases | |||
Receivables: | |||
Total receivables | $ 1,251 | $ 1,421.8 | $ 1,030.8 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Consolidated Balance Sheets | |||
Common stock, issued shares | 2,500 | 2,500 | 2,500 |
Common stock, outstanding shares | 2,500 | 2,500 | 2,500 |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 174 | $ 137.4 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 21 | 3.5 |
Provision for depreciation and amortization | 173 | 170.1 |
Credit for deferred income taxes | (20.1) | (14) |
Change in accounts payable and accrued expenses | (45.3) | 40.9 |
Change in accrued income taxes payable/receivable | 35.6 | 10 |
Other | 71.4 | (9.2) |
Net cash provided by operating activities | 409.6 | 338.7 |
Cash Flows from Investing Activities: | ||
Cost of receivables acquired (excluding wholesale) | (5,863) | (5,686.3) |
Collections of receivables (excluding wholesale) | 7,447.7 | 6,902.4 |
Increase in wholesale receivables - net | (1,100.8) | (1,148.5) |
Cost of equipment on operating leases acquired | (361.4) | (375.3) |
Proceeds from sales of equipment on operating leases | 319.2 | 386.2 |
Cost of notes receivable acquired from John Deere | (8.3) | (120.8) |
Collections of notes receivable from John Deere | 4.4 | 2.2 |
Other | (8.4) | (12.9) |
Net cash provided by (used for) investing activities | 429.4 | (53) |
Cash Flows from Financing Activities: | ||
Increase (decrease) in commercial paper and other notes payable - net (original maturities of three months or less) | (1,688.2) | 1,223.2 |
Decrease in securitization borrowings - net | (881.5) | (849.3) |
Increase (decrease) in short-term borrowings with John Deere - net | 311.2 | (964.7) |
Proceeds from external borrowings issued (original maturities greater than three months) | 4,831.4 | 2,298.9 |
Payments of external borrowings (original maturities greater than three months) | (3,160.4) | (1,618.5) |
Dividends paid | (215) | |
Debt issuance costs | (8.1) | (8.6) |
Net cash provided by (used for) financing activities | (810.6) | 81 |
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash | 1.5 | 13.1 |
Net Increase in Cash, Cash Equivalents, and Restricted Cash | 29.9 | 379.8 |
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 1,612.9 | 766.1 |
Cash, Cash Equivalents, and Restricted Cash at End of Period | 1,642.8 | 1,145.9 |
Components of Cash, Cash Equivalents, and Restricted Cash: | ||
Cash and cash equivalents | 1,520.1 | 1,055 |
Restricted cash | $ 122.7 | $ 90.9 |
Balance sheet location of restricted cash | Other assets | Other assets |
Total Cash, Cash Equivalents, and Restricted Cash | $ 1,642.8 | $ 1,145.9 |
Statements of Changes in Consol
Statements of Changes in Consolidated Stockholder's Equity - USD ($) $ in Millions | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total |
Balance at Oct. 30, 2022 | $ 1,482.8 | $ 3,305.9 | $ (104.7) | $ 1.5 | $ 4,685.5 |
Increase (Decrease) in Stockholder's Equity | |||||
Net income (loss) | 137.6 | (0.2) | 137.4 | ||
Other comprehensive income | 52.3 | 52.3 | |||
Balance at Jan. 29, 2023 | 1,482.8 | 3,443.5 | (52.4) | 1.3 | 4,875.2 |
Balance at Oct. 29, 2023 | 2,292.8 | 3,713.2 | (104.4) | 1 | 5,902.6 |
Increase (Decrease) in Stockholder's Equity | |||||
Net income (loss) | 174.5 | (0.5) | 174 | ||
Other comprehensive income | 11.8 | 11.8 | |||
Dividends declared | (215) | (215) | |||
Balance at Jan. 28, 2024 | $ 2,292.8 | $ 3,672.7 | $ (92.6) | $ 0.5 | $ 5,873.4 |
Organization and Consolidation
Organization and Consolidation | 3 Months Ended |
Jan. 28, 2024 | |
Organization and Consolidation | |
Organization and Consolidation | (1) Organization and Consolidation References to John Deere Capital Corporation (Capital Corporation), “the Company,” “we,” “us,” or “our” include our consolidated subsidiaries. John Deere Financial Services, Inc., a wholly-owned finance holding subsidiary of Deere & Company, owns all of the outstanding common stock of Capital Corporation. We provide and administer financing for retail purchases of new equipment manufactured by Deere & Company’s production and precision agriculture operations, small agriculture and turf operations, and construction and forestry operations and used equipment taken in trade for this equipment. References to “agriculture and turf” include both production and precision agriculture and small agriculture and turf. We generally purchase retail installment sales and loan contracts (retail notes) from Deere & Company and its wholly-owned subsidiaries (collectively called John Deere). John Deere generally acquires these retail notes through independent John Deere retail dealers. We also purchase and finance a limited amount of non-John Deere retail notes. In addition, we finance and service revolving charge accounts, in most cases acquired from and offered through merchants and dealers in the agriculture and turf and construction and forestry markets (revolving charge accounts). We also provide wholesale financing to dealers of John Deere agriculture and turf equipment and construction and forestry equipment, primarily to finance inventories of equipment for those dealers (wholesale receivables). Further, we lease John Deere equipment and a limited amount of non-John Deere equipment to retail customers (financing and operating leases). We also offer credit enhanced international export financing to select customers and dealers, which primarily involves John Deere products. Retail notes, revolving charge accounts, and financing leases are collectively called “Customer Receivables.” Customer Receivables and wholesale receivables are collectively called “Receivables.” Receivables and equipment on operating leases are collectively called “Receivables and Leases.” We secure our Receivables, other than certain revolving charge accounts, by retaining as collateral security in the goods associated with those Receivables or with the use of other collateral. We use a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period. The first quarter ends for fiscal years 2024 and 2023 were January 28, 2024 and January 29, 2023, respectively. Both periods contained 13 weeks. Unless otherwise stated, references to particular years, quarters, or months refer to our fiscal years generally ending in October and the associated periods in those fiscal years. We are the primary beneficiary of and consolidate certain variable interest entities that are special purpose entities (SPEs) related to the securitization of receivables. See Note 5 for more information on these SPEs. Presentation of Amounts All amounts are presented in millions of dollars, unless otherwise specified. Immaterial Restatement of Prior Period Financial Statements In the second quarter of 2023, we corrected the accounting treatment for financing incentives offered to John Deere dealers, which impacted the timing of expense recognition and the presentation of incentive costs in the consolidated financial statements. Refer to Note 2 for further information regarding the new and previous accounting treatment. The impact of the correction in periods prior to the second quarter ended April 30, 2023 was not material to the consolidated financial statements in any of the impacted periods; however, the aggregate impact of correcting prior periods within the second quarter ended April 30, 2023 would have been material to our 2023 consolidated financial results. Consequently, we made these immaterial corrections in the comparative prior periods. Refer to Note 12 for quantification of the prior period restatement impacts. Additionally, comparative prior period amounts in the applicable notes to the consolidated financial statements have been restated. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and New Accounting Standards | 3 Months Ended |
Jan. 28, 2024 | |
Summary of Significant Accounting Policies and New Accounting Standards | |
Summary of Significant Accounting Policies and New Accounting Standards | (2) Summary of Significant Accounting Policies and New Accounting Standards Financing Incentives In the second quarter of 2023, we corrected our accounting policy for financing incentives offered to John Deere dealers, as described below. We provide incentive funds to John Deere dealers that meet certain performance metrics, which include minimum finance volume and finance market share with us over a defined period. At the end of the qualification period, dealers are granted incentive funds, which can be used for certain predefined uses, including interest rate reductions on future loan and lease originations. In addition, certain dealers may elect to receive cash for a portion of their earned funds. We accrue for the incentive costs over the qualification period, which are reported as “Administrative and operating expenses” in the consolidated income statements and “Accounts payable and accrued expenses” in the consolidated balance sheets. The accrued liability is released as dealers utilize the funds. Under the previous accounting treatment, we amortized the non-cash portion of the incentive program costs as a reduction to finance income or lease revenue after the dealers designated the use of the incentive award. There was no change to the accounting treatment for the cash portion of the incentive program costs, which continues to be accrued over the qualification period. Quarterly Financial Statements We have prepared our interim consolidated financial statements, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been condensed or omitted as permitted by such rules and regulations. All normal recurring adjustments have been included. Management believes the disclosures are adequate to present fairly the financial position, results of operations, and cash flows at the dates and for the periods presented. It is suggested these interim consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto appearing in our latest Annual Report on Form 10-K. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year. Use of Estimates in Financial Statements Certain accounting policies require management to make estimates and assumptions in determining the amounts reflected in the financial statements and related disclosures. Actual results could differ from those estimates. New Accounting Standards We closely monitor all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) and other authoritative guidance. Accounting Standards Adopted In the first quarter of 2024, we adopted ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The ASU eliminates the accounting guidance for troubled debt restructurings, enhances disclosures for certain receivable modifications related to borrowers experiencing financial difficulty, and requires disclosure of current period gross write-offs by year of origination. The adoption did not have a material effect on our consolidated financial statements. We also adopted the following standards in 2024, none of which had a material effect on our consolidated financial statements. 2022-01 — Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method 2021-08 — Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Accounting Standards to be Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and cash taxes paid both in the U.S. and foreign jurisdictions. The effective date of the ASU is fiscal year 2026. We are assessing the effect of this update on our related disclosures. We will also adopt the following standards in future periods, none of which are expected to have a material effect on our consolidated financial statements. 2023-07 — Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures 2023-06 — Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative 2023-05 — Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement |
Other Comprehensive Income Item
Other Comprehensive Income Items | 3 Months Ended |
Jan. 28, 2024 | |
Other Comprehensive Income Items | |
Other Comprehensive Income Items | (3) Other Comprehensive Income Items The after-tax components of accumulated other comprehensive income (loss) were as follows: January 28 October 29 January 29 2024 2023 2023 Cumulative translation adjustment $ (110.0) $ (136.8) $ (102.8) Unrealized gain on derivatives 19.2 34.8 52.5 Unrealized loss on debt securities (1.8) (2.4) (2.1) Total accumulated other comprehensive income (loss) $ (92.6) $ (104.4) $ (52.4) The following tables reflect amounts recorded in other comprehensive income (loss), as well as reclassifications out of other comprehensive income (loss). Before Tax After Tax (Expense) Tax Amount Credit Amount Three Months Ended January 28, 2024 Cumulative translation adjustment $ 26.8 $ 26.8 Unrealized gain (loss) on derivatives: Unrealized hedging gain (loss) (7.8) $ 1.6 (6.2) Reclassification of realized (gain) loss to: Interest rate contracts – Interest expense (11.9) 2.5 (9.4) Net unrealized gain (loss) on derivatives (19.7) 4.1 (15.6) Unrealized gain (loss) on debt securities: Unrealized holding gain (loss) .8 (.2) .6 Total other comprehensive income (loss) $ 7.9 $ 3.9 $ 11.8 Three Months Ended January 29, 2023 Cumulative translation adjustment $ 66.2 $ 66.2 Unrealized gain (loss) on derivatives: Unrealized hedging gain (loss) (1.9) $ .4 (1.5) Reclassification of realized (gain) loss to: Interest rate contracts – Interest expense (16.3) 3.5 (12.8) Net unrealized gain (loss) on derivatives (18.2) 3.9 (14.3) Unrealized gain (loss) on debt securities: Unrealized holding gain (loss) .7 (.3) .4 Total other comprehensive income (loss) $ 48.7 $ 3.6 $ 52.3 |
Receivables
Receivables | 3 Months Ended |
Jan. 28, 2024 | |
Receivables | |
Receivables | (4) Receivables Credit Quality We monitor the credit quality of Receivables based on delinquency status, defined as follows: ● Past due balances represent Receivables still accruing finance income with any payments 30 days or more past the contractual payment due date. ● Non-performing Receivables represent Receivables for which we have stopped accruing finance income, which generally occurs when Customer Receivables are 90 days delinquent and when interest-bearing wholesale receivables become 60 days delinquent. Accrued finance income and lease revenue previously recognized on non-performing Receivables is reversed and subsequently recognized on a cash basis. Accrual of finance income and lease revenue is resumed when the receivable becomes contractually current, and collections are reasonably assured. Accrued finance income and lease revenue reversed on non-performing Receivables, and finance income and lease revenue recognized from cash payments on non-performing Receivables were as follows : Three Months Ended January 28 January 29 2024 2023 Accrued finance income and lease revenue reversed $ 6.7 $ 2.8 Finance income and lease revenue recognized on cash payments 5.9 3.1 Total Receivable balances represent principal plus accrued interest. Receivable balances are written off to the allowance for credit losses when, in the judgment of management, they are considered uncollectible. Write-offs generally occur when Customer Receivables are 120 days delinquent, and on a case-by-case basis when wholesale receivables are 60 days delinquent. In these situations, we repossess available collateral or designate the account for litigation, and the estimated uncollectible amount is written off to the allowance for credit losses. The credit quality analysis of Customer Receivables by year of origination was as follows: January 28, 2024 2024 2023 2022 2021 2020 Prior Years Revolving Charge Accounts Total Customer Receivables: Agriculture and turf Current $ 2,740.5 $ 11,557.0 $ 6,550.6 $ 3,954.2 $ 1,692.4 $ 667.3 $ 2,719.3 $ 29,881.3 30-59 days past due 4.5 105.0 58.5 40.8 18.8 10.0 69.7 307.3 60-89 days past due .5 45.9 19.3 12.7 6.1 4.3 15.8 104.6 90+ days past due 1.1 .5 3.0 4.4 .3 9.3 Non-performing .3 39.1 78.6 48.7 26.9 24.8 10.4 228.8 Construction and forestry Current 677.8 2,156.0 1,400.8 716.3 216.8 94.0 101.2 5,362.9 30-59 days past due 7.2 64.9 35.5 24.1 7.8 3.3 5.3 148.1 60-89 days past due .4 24.2 19.2 11.7 5.7 2.8 2.2 66.2 90+ days past due .2 .2 .4 Non-performing 55.3 74.8 44.6 17.9 7.5 1.6 201.7 Total $ 3,431.2 $ 14,048.5 $ 8,238.0 $ 4,856.1 $ 1,996.8 $ 814.5 2,925.5 $ 36,310.6 October 29, 2023 2023 2022 2021 2020 2019 Prior Years Revolving Charge Accounts Total Customer Receivables: Agriculture and turf Current $ 12,998.3 $ 7,208.2 $ 4,459.1 $ 1,970.4 $ 666.3 $ 179.3 $ 4,424.8 $ 31,906.4 30-59 days past due 46.8 66.6 34.6 18.7 8.2 2.9 28.1 205.9 60-89 days past due 15.8 22.0 14.8 7.8 3.3 1.3 8.6 73.6 90+ days past due 1.4 .8 2.7 2.9 .1 .1 8.0 Non-performing 25.9 63.7 44.5 25.0 12.9 12.0 7.2 191.2 Construction and forestry Current 2,343.4 1,586.2 859.0 279.2 65.3 27.3 118.6 5,279.0 30-59 days past due 44.4 28.1 24.8 8.6 3.4 .4 4.1 113.8 60-89 days past due 17.8 11.4 11.8 4.5 1.0 .2 1.8 48.5 90+ days past due .1 1.2 .1 .1 1.5 Non-performing 34.1 67.5 51.2 20.7 7.5 4.0 1.2 186.2 Total $ 15,528.0 $ 9,055.7 $ 5,502.6 $ 2,337.9 $ 768.0 $ 227.5 $ 4,594.4 $ 38,014.1 January 29, 2023 2023 2022 2021 2020 2019 Prior Years Revolving Charge Accounts Total Customer Receivables: Agriculture and turf Current $ 2,452.2 $ 10,749.5 $ 6,302.5 $ 3,104.4 $ 1,289.3 $ 565.0 $ 2,686.3 $ 27,149.2 30-59 days past due 1.7 29.4 29.2 48.2 10.4 42.8 27.2 188.9 60-89 days past due 1.3 12.2 10.5 18.0 3.7 14.1 5.9 65.7 90+ days past due 1.2 .2 2.9 1.0 .2 5.5 Non-performing .3 35.1 43.3 29.1 15.0 19.6 7.8 150.2 Construction and forestry Current 553.7 2,156.3 1,339.0 538.4 177.7 68.5 99.0 4,932.6 30-59 days past due 1.5 9.9 23.6 34.3 15.7 52.1 4.6 141.7 60-89 days past due .4 4.3 15.7 17.7 6.4 23.0 2.0 69.5 90+ days past due .1 .2 .4 .2 .9 Non-performing 38.9 51.8 26.1 13.0 6.5 1.2 137.5 Total $ 3,011.1 $ 13,036.9 $ 7,816.0 $ 3,819.5 $ 1,532.4 $ 791.8 $ 2,834.0 $ 32,841.7 The credit quality analysis of wholesale receivables by year of origination was as follows: January 28, 2024 2024 2023 2022 2021 2020 Prior Years Revolving Total Wholesale receivables: Agriculture and turf Current $ 199.8 $ 450.3 $ 67.6 $ 4.8 $ 2.6 $ 1.3 $ 10,198.5 $ 10,924.9 30+ days past due .6 61.3 61.9 Non-performing 5.8 5.8 Construction and forestry Current 5.6 10.7 2.2 19.3 .1 .1 3,495.5 3,533.5 30+ days past due 16.7 16.7 Non-performing Total $ 205.4 $ 461.6 $ 69.8 $ 24.1 $ 2.7 $ 1.4 $ 13,777.8 $ 14,542.8 October 29, 2023 2023 2022 2021 2020 2019 Prior Years Revolving Total Wholesale receivables: Agriculture and turf Current $ 609.5 $ 92.6 $ 20.0 $ 3.9 $ .7 $ 159.9 $ 9,270.1 $ 10,156.7 30+ days past due 45.8 45.8 Non-performing 5.7 5.7 Construction and forestry Current 19.4 2.5 19.9 .2 .1 75.2 2,987.6 3,104.9 30+ days past due 17.0 17.0 Non-performing Total $ 628.9 $ 95.1 $ 39.9 $ 4.1 $ .8 $ 235.1 $ 12,326.2 $ 13,330.1 January 29, 2023 2023 2022 2021 2020 2019 Prior Years Revolving Total Wholesale receivables: Agriculture and turf Current $ 114.6 $ 283.2 $ 45.7 $ 20.2 $ 3.7 $ 1.2 $ 7,349.9 $ 7,818.5 30+ days past due .3 9.2 9.5 Non-performing 5.9 5.9 Construction and forestry Current 5.8 3.8 23.7 1.0 .3 .1 1,875.8 1,910.5 30+ days past due 7.7 7.7 Non-performing Total $ 120.4 $ 287.3 $ 69.4 $ 21.2 $ 4.0 $ 1.3 $ 9,248.5 $ 9,752.1 Allowance for Credit Losses The allowance for credit losses is an estimate of the credit losses expected over the life of our Receivable portfolio. Non-performing Receivables are included in the estimate of expected credit losses. The allowance is measured on a collective basis for receivables with similar risk characteristics. Receivables that do not share risk characteristics are evaluated on an individual basis. Risk characteristics include: ● product category, ● market, ● geography, ● credit risk, and ● remaining balance. Recoveries from freestanding credit enhancements, such as dealer deposits, and certain credit insurance contracts are not included in the estimate of expected credit losses. Recoveries from dealer deposits are recognized in “Other income” when the dealer’s deposit account is charged. During the three months ended January 28, 2024 and January 29, 2023, recoveries from freestanding credit enhancements recorded in other income were $7.3 and $2.0, respectively. An analysis of the allowance for credit losses and investment in Receivables was as follows: Three Months Ended January 28, 2024 Retail Notes Revolving & Financing Charge Wholesale Total Leases Accounts Receivables Receivables Allowance: Beginning of period balance $ 114.9 $ 20.4 $ 11.1 $ 146.4 Provision (credit) for credit losses* 22.8 (2.0) (.4) 20.4 Write-offs (24.3) (10.7) (35.0) Recoveries 1.7 7.6 9.3 Translation adjustments (1.5) (1.5) End of period balance $ 115.1 $ 15.3 $ 9.2 $ 139.6 Receivables: End of period balance $ 33,385.1 $ 2,925.5 $ 14,542.8 $ 50,853.4 Three Months Ended January 29, 2023 Retail Notes Revolving & Financing Charge Wholesale Total Leases Accounts Receivables Receivables Allowance: Beginning of period balance $ 95.4 $ 21.9 $ 11.1 $ 128.4 Provision (credit) for credit losses* 6.8 (3.7) (.5) 2.6 Write-offs (10.2) (7.5) (.1) (17.8) Recoveries 2.4 5.3 .6 8.3 Translation adjustments .4 (.2) .2 End of period balance $ 94.8 $ 16.0 $ 10.9 $ 121.7 Receivables: End of period balance $ 30,007.7 $ 2,834.0 $ 9,752.1 $ 42,593.8 * Excludes provision for credit losses on unfunded commitments of $.6 and $.9 for the three months ended January 28, 2024 and January 29, 2023, respectively. The estimated credit losses related to unfunded commitments are recorded in “Accounts payable and accrued expenses.” The allowance for credit losses decreased slightly in the first three months of 2024, primarily due to a seasonal decline in the revolving charge account portfolio. We continue to monitor the economy as part of the allowance setting process, including potential impacts of inflation and interest rates, among other factors, and qualitative adjustments to the allowance are incorporated as necessary. Write-offs by year of origination were as follows: Three Months Ended January 28, 2024 2024 2023 2022 2021 2020 Prior Years Revolving Total Customer Receivables: Agriculture and turf $ 1.5 $ 2.9 $ 1.8 $ 3.6 $ .6 $ 8.8 $ 19.2 Construction and forestry $ .2 5.5 4.5 2.2 .8 .7 1.9 15.8 Total $ .2 $ 7.0 $ 7.4 $ 4.0 $ 4.4 $ 1.3 $ 10.7 $ 35.0 Modifications We occasionally grant contractual modifications to customers experiencing financial difficulties. Before offering a modification, we evaluate the ability of the customer to meet the modified payment terms. Modifications offered include payment deferrals, term extensions, or a combination thereof. Finance charges continue to accrue during the deferral or extension period. Our allowance for credit losses incorporates historical loss information, including the effects of loan modifications with customers. Therefore, additional adjustments to the allowance are generally not recorded upon modification of a loan. The ending amortized cost of loans modified with borrowers experiencing financial difficulty during the three months ended January 28, 2024 was $9.3, of which $8.6 was current, $.1 was 30-59 days past due, and $.6 was non-performing. These modifications represented .02 percent of our Receivable portfolio at January 28, 2024. Defaults and subsequent write-offs of loans modified in the prior twelve months were not significant during the three months ended January 28, 2024. In addition, at January 28, 2024, we had no commitments to provide additional financing to these customers. Troubled Debt Restructuring Prior to adopting ASU 2022-02, modifications of loans to borrowers experiencing financial difficulty were considered troubled debt restructurings when the modification resulted in a concession we would not otherwise consider. During the three months ended January 29, 2023, we identified 36 Receivable contracts, primarily retail notes, as troubled debt restructurings with aggregate balances of $1.0 pre-modification and $1.0 post-modification. During this same period, there were no significant troubled debt restructurings that subsequently defaulted and were written off. |
Securitization of Receivables
Securitization of Receivables | 3 Months Ended |
Jan. 28, 2024 | |
Securitization of Receivables | |
Securitization of Receivables | (5) Securitization of Receivables Our funding strategy includes retail note securitizations. While these securitization programs are administered in various forms, they are accomplished in the following basic steps: 1. We transfer retail notes into a bankruptcy-remote SPE. 2. The SPE issues debt to investors. The debt is secured by the retail notes. 3. Investors are paid back based on cash receipts from the retail notes. As part of step 1, these retail notes are legally isolated from the claims of our general creditors. This ensures cash receipts from the retail notes are accessible to pay back securitization program investors. The structure of these transactions does not meet the accounting criteria for a sale of receivables. As a result, they are accounted for as a secured borrowing. The receivables and borrowings remain on our balance sheet and are separately reported as “Retail notes securitized” and “Securitization borrowings,” respectively. The components of the securitization programs were as follows: January 28 October 29 January 29 2024 2023 2023 Retail notes securitized $ 6,417.7 $ 7,356.8 $ 5,101.4 Allowance for credit losses (17.8) (21.4) (12.5) Other assets (primarily restricted cash) 139.9 152.0 97.2 Total restricted securitized assets $ 6,539.8 $ 7,487.4 $ 5,186.1 Securitization borrowings $ 6,116.1 $ 6,995.2 $ 4,863.9 Accrued interest on borrowings 10.0 12.6 5.9 Total liabilities related to restricted securitized assets $ 6,126.1 $ 7,007.8 $ 4,869.8 |
Leases
Leases | 3 Months Ended |
Jan. 28, 2024 | |
Leases | |
Leases | (6) Leases We lease John Deere equipment and a limited amount of non-John Deere equipment to retail customers through sales-type, direct financing, and operating leases. Sales-type and direct financing leases are reported in “Financing leases” and operating leases are reported in “Equipment on operating leases – net.” Lease revenues earned by us were as follows: Three Months Ended January 28 January 29 2024 2023 Sales-type and direct financing lease revenues $ 27.0 $ 18.8 Operating lease revenues 234.2 218.9 Variable lease revenues 4.0 5.6 Total lease revenues $ 265.2 $ 243.3 Variable lease revenues reported above primarily relate to separately invoiced property taxes on leased equipment in certain markets, late fees, and excess use and damage fees. Excess use and damage fees are reported in “Other income” and were $.4 and $.8 for the first quarter of 2024 and 2023, respectively. The cost of equipment on operating leases by market was as follows: January 28 October 29 January 29 2024 2023 2023 Agriculture and turf $ 5,198.3 $ 5,265.2 $ 4,893.6 Construction and forestry 1,005.7 1,042.4 1,084.9 Total 6,204.0 6,307.6 5,978.5 Accumulated depreciation (1,270.6) (1,256.1) (1,285.1) Equipment on operating leases – net $ 4,933.4 $ 5,051.5 $ 4,693.4 Total operating lease residual values at January 28, 2024, October 29, 2023, and January 29, 2023 were $3,483.7, $3,538.3, and $3,257.1, respectively. John Deere dealers generally provide a first-loss residual value guarantee on operating lease originations. Total residual value guarantees were $580.4, $566.9, and $467.1 at January 28, 2024, October 29, 2023, and January 29, 2023, respectively. We discuss with lessees and dealers options to purchase the equipment or extend the lease prior to operating lease maturity. We remarket equipment returned to us upon termination of leases. The matured operating lease inventory balances at January 28, 2024, October 29, 2023, and January 29, 2023 were $19.7, $16.2, and $11.8, respectively. Matured operating lease inventory is reported in “Other assets.” |
Notes Receivable from and Payab
Notes Receivable from and Payable to John Deere | 3 Months Ended |
Jan. 28, 2024 | |
Notes Receivable from and Payable to John Deere | |
Notes Receivable from and Payable to John Deere | (7) Notes Receivable from and Payable to John Deere We provide loans to Banco John Deere S.A.(BJD), a John Deere finance subsidiary in Brazil, which are reported in “Notes receivable from John Deere.” Balances due from BJD were as follows: January 28 October 29 January 29 2024 2023 2023 Notes receivable from John Deere $ 663.7 $ 650.7 $ 494.4 The loan agreements mature over the next seven years and charge interest at competitive market rates. Interest earned from John Deere is recorded in “Other income” and was $11.5 for the first three months of 2024, compared with $6.9 for the same period last year. We also obtain funding from affiliated companies which resulted in notes payable to John Deere as follows: January 28 October 29 January 29 2024 2023 2023 Notes payable to John Deere $ 3,512.5 $ 3,184.0 $ 4,416.2 The intercompany borrowings are primarily short-term in nature or contain a due on demand call option. At January 28, 2024, $542.3 of the intercompany borrowings were long-term loans without a due on demand call option, which mature in 2025. We pay interest to John Deere for these borrowings based on competitive market rates. Interest expense paid to John Deere was $43.8 and $40.0 for the three months ended January 28, 2024 and January 29, 2023 respectively, which is recorded in “Fees and interest paid to John Deere.” |
Long-Term External Borrowings
Long-Term External Borrowings | 3 Months Ended |
Jan. 28, 2024 | |
Long-Term External Borrowings | |
Long-Term External Borrowings | (8) Long-Term External Borrowings Long-term external borrowings consisted of the following: January 28 October 29 January 29 2024 2023 2023 Senior Debt: Medium-term notes $ 28,805.4 $ 27,522.8 $ 23,564.2 Other notes .5 Total senior debt 28,805.4 27,522.8 23,564.7 Unamortized debt discount and debt issuance costs (85.0) (83.5) (71.3) Total $ 28,720.4 $ 27,439.3 $ 23,493.4 Medium-term notes are primarily offered by prospectus and issued at fixed and variable rates. The medium-term notes in the table above include unamortized fair value adjustments related to interest rate swaps. The principal balances of the medium-term notes were $29,581.7, $28,733.5, and $24,265.7 at January 28, 2024, October 29, 2023, and January 29, 2023, respectively, and have maturity dates through 2033. All outstanding medium-term notes and other notes in the table above are senior unsecured borrowings and generally rank equally with each other. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jan. 28, 2024 | |
Commitments and Contingencies | |
Commitments and Contingencies | (9) Commitments and Contingencies We provide guarantees related to certain financial instruments issued by John Deere Financial Inc., a John Deere finance subsidiary in Canada. At January 28, 2024, the following notional amounts were guaranteed by us: ● Medium-term notes: $3,228.2 ● Commercial paper: $1,975.9 ● Derivatives: $4,606.7 , with a fair value liability of $113.2 The weighted-average interest rate on the medium-term notes at January 28, 2024 was 3.1 percent with a maximum remaining maturity of five years. We have commitments to extend credit to customers and John Deere dealers through lines of credit and other pre-approved credit arrangements. We apply the same credit policies and approval process for these commitments to extend credit as we do for our Receivables and Leases, and generally have the right to unconditionally cancel, alter, or amend the terms at any time. Collateral is not required for these commitments, but if credit is extended, collateral may be required upon funding. A significant portion of these commitments is not expected to be fully drawn upon; therefore, the total commitment amounts likely do not represent a future cash requirement. The unused commitments at January 28, 2024 were as follows: ● John Deere dealers: $7,903.6 ● Customers: $33,653.8 , primarily related to revolving charge accounts We have a reserve for credit losses of $2.6 on unfunded commitments that are not unconditionally cancellable at January 28, 2024, which is recorded in “Accounts payable and accrued expenses.” At January 28, 2024, we had restricted other assets associated with borrowings related to securitizations (see Note 5). Excluding the securitization programs, the remaining balance of restricted other assets was not material as of January 28, 2024. We are subject to various unresolved legal actions which arise in the normal course of our business, the most prevalent of which relate to retail credit matters. We believe the reasonably possible range of losses for these unresolved legal actions would not have a material effect on our consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jan. 28, 2024 | |
Fair Value Measurements | |
Fair Value Measurements | (10) Fair Value Measurements The fair values of financial instruments that do not approximate the carrying values were as follows: January 28, 2024 October 29, 2023 January 29, 2023 Carrying Fair Carrying Fair Carrying Fair Value Value Value Value Value Value Receivables financed – net $ 44,313.9 $ 43,978.1 $ 43,862.4 $ 43,168.7 $ 37,383.2 $ 36,668.3 Retail notes securitized – net 6,399.9 6,224.9 7,335.4 7,055.8 5,088.9 4,868.9 Securitization borrowings 6,116.1 6,103.8 6,995.2 6,921.1 4,863.9 4,784.8 Current maturities of long-term 5,705.1 5,610.7 6,059.9 5,953.0 6,080.1 5,957.2 Long-term external borrowings 28,720.4 28,775.5 27,439.3 27,057.7 23,493.4 23,126.2 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 us for similar Receivables. The fair values of the remaining Receivables approximated the carrying amounts. Fair values of long-term external borrowings and 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 external borrowings have been swapped to current variable interest rates. The carrying values of these long-term external borrowings include adjustments related to fair value hedges. Assets and liabilities measured at fair value on a recurring basis were as follows: January 28 October 29 January 29 2024 2023 2023 Marketable securities International debt securities $ 2.3 $ 1.4 $ 1.8 Receivables from John Deere Derivatives 146.6 144.4 171.2 Other assets Derivatives 22.2 11.3 1.2 Total assets $ 171.1 $ 157.1 $ 174.2 Other payables to John Deere Derivatives $ 596.7 $ 974.9 $ 664.2 Accounts payable and accrued expenses Derivatives 4.3 .5 29.1 Total liabilities $ 601.0 $ 975.4 $ 693.3 All fair value measurements in the table above were Level 2. Excluded from the table above were our cash equivalents, which were carried at cost that approximates fair value. The cash equivalents consist primarily of time deposits and money market funds. The international debt securities mature over the next seven years. At January 28, 2024, the amortized cost basis and fair value of these available-for-sale debt securities were $5.1 and $2.3, respectively. Unrealized losses at January 28, 2024 were not recognized in income due to the ability and intent to hold to maturity. There were no assets or liabilities measured at fair value on a nonrecurring basis, other than Receivables with specific allowances which were not material, during each of the periods ended January 28, 2024, October 29, 2023, and January 29, 2023. The following is a description of the valuation methodologies we use to measure certain balance sheet items at fair value: Marketable securities Derivatives – Receivables – |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Jan. 28, 2024 | |
Derivative Instruments | |
Derivative Instruments | (11) Derivative Instruments Our outstanding derivative transactions are with both unrelated external counterparties and with John Deere. For derivative transactions with John Deere, we utilize a centralized hedging structure in which John Deere enters into a derivative transaction with an unrelated external counterparty and simultaneously enters into a derivative transaction with us. Except for collateral provisions, the terms of the transaction between John Deere and us are identical to the terms of the transaction between John Deere and its unrelated external counterparty. Derivative asset and liability positions for transactions with John Deere are recorded in “Receivables from John Deere” and “Other payables to John Deere,” respectively. Derivative asset and liability positions for transactions with unrelated external counterparty banks are recorded in “Other assets” and “Accounts payable and accrued expenses,” respectively. The fair values of our derivative instruments and the associated notional amounts were as follows: January 28, 2024 October 29, 2023 January 29, 2023 Fair Value Fair Value Fair Value Notional Asset Liability Notional Asset Liability Notional Asset Liability Cash flow hedges: Interest rate contracts - swaps $ 2,200.0 $ 27.4 $ 4.4 $ 1,500.0 $ 44.7 $ 1,950.0 $ 69.2 Fair value hedges: Interest rate contracts - swaps 11,779.6 52.1 547.3 11,859.4 $ 915.7 10,126.7 20.8 $ 629.0 Not designated as hedging instruments: Interest rate contracts - swaps 7,784.7 53.8 18.3 8,010.9 72.2 27.4 4,847.8 76.2 24.0 Foreign currency exchange contracts 1,814.8 22.2 4.3 1,546.5 11.3 .5 1,297.8 1.2 29.1 Cross-currency interest rate contracts 188.6 13.4 175.8 3.2 7.5 119.3 .3 6.5 Interest rate caps - sold 1,199.5 13.3 1,336.0 24.3 788.8 4.7 Interest rate caps - purchased 1,199.5 13.3 1,336.0 24.3 788.8 4.7 The amount of gain recorded in other comprehensive income (OCI) related to cash flow hedges at January 28, 2024 that is expected to be reclassified to interest expense in the next twelve months if interest rates remain unchanged is $26.2 after-tax. No gains or losses were reclassified from OCI to earnings based on the probability that the original forecasted transaction would not occur. The amounts recorded in the consolidated balance sheets related to borrowings designated in fair value hedging relationships were as follows. Fair value hedging adjustments are included in the carrying amount of the hedged item. Active Hedging Relationships Discontinued Hedging Relationships Cumulative Carrying Cumulative Carrying Fair Value Amount of Fair Value Amount of Hedging Formerly Hedging January 28, 2024 Hedged Item Adjustment Hedged Item Adjustment Current maturities of long-term external borrowings $ 1,959.5 $ 10.4 Long-term external borrowings $ 11,220.3 $ (506.6) 7,710.9 (269.7) October 29, 2023 Current maturities of long-term external borrowings $ 1,814.0 $ 14.9 Long-term external borrowings $ 10,883.7 $ (922.6) 7,144.1 (288.1) January 29, 2023 Current maturities of long-term external borrowings $ 1,914.8 $ 15.3 Long-term external borrowings $ 9,461.7 $ (618.6) 5,505.8 (82.9) The classification and gains (losses), including accrued interest expense related to derivative instruments on the statements of consolidated income consisted of the following: Three Months Ended January 28 January 29 2024 2023 Fair Value Hedges Interest rate contracts - Interest expense $ 335.7 $ 235.3 Cash Flow Hedges Recognized in OCI: Interest rate contracts - OCI (pretax) $ (7.8) $ (1.9) Reclassified from OCI: Interest rate contracts - Interest expense 11.9 16.3 Not Designated as Hedges Interest rate contracts - Interest expense * $ (5.7) $ (1.9) Foreign currency exchange contracts - Administrative and operating expenses * (103.2) (135.1) Total not designated $ (108.9) $ (137.0) * Includes interest and foreign currency exchange gains (losses) from cross-currency interest rate contracts. Included in the table above are interest expense and administrative and operating expense amounts we incurred on derivatives transacted with John Deere. The amounts we recognized on these affiliated party transactions for the three months ended January 28, 2024 and January 29, 2023 were gains of $331.4 and $242.5, respectively. None of our derivative agreements contain credit-risk-related contingent features. We have a loss sharing agreement with John Deere in which we have 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 our exposures. The loss sharing agreement did not increase the maximum amount of loss that we would incur, after considering collateral received and netting arrangements, as of January 28, 2024, October 29, 2023, and January 29, 2023. 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: January 28, 2024 Gross Amounts Netting Collateral Net Derivatives: Assets External $ 22.2 $ (3.0) $ 19.2 John Deere 146.6 (101.6) 45.0 Liabilities External 4.3 (3.0) 1.3 John Deere 596.7 (101.6) 495.1 October 29, 2023 Gross Amounts Netting Collateral Net Derivatives: Assets External $ 11.3 $ (.1) $ 11.2 John Deere 144.4 (107.0) 37.4 Liabilities External .5 (.1) .4 John Deere 974.9 (107.0) 867.9 January 29, 2023 Gross Amounts Netting Collateral Net Derivatives: Assets External $ 1.2 $ 1.2 John Deere 171.2 $ (129.1) 42.1 Liabilities External 29.1 29.1 John Deere 664.2 (129.1) 535.1 |
Immaterial Restatement of Prior
Immaterial Restatement of Prior Period Financial Statements | 3 Months Ended |
Jan. 28, 2024 | |
Immaterial Restatement of Prior Period Financial Statements | |
Immaterial Restatement of Prior Period Financial Statements | (12) Immaterial Restatement of Prior Period Financial Statements In the second quarter of 2023, we corrected the accounting treatment for financing incentives The prior period impacts to our statement of consolidated income and the related impacts to the statement of consolidated comprehensive income were as follows: Three Months Ended January 29, 2023 Previously As Reported Adjustment Adjusted Revenues Finance income earned on retail notes $ 315.9 $ 14.1 $ 330.0 Lease revenues 240.7 1.8 242.5 Total revenues 820.6 15.9 836.5 Expenses Administrative and operating expenses 108.5 28.2 136.7 Total operating expenses 334.1 28.2 362.3 Total expenses 635.1 28.2 663.3 Income of Consolidated Group before Income Taxes 185.5 (12.3) 173.2 Provision for income taxes 39.6 (2.8) 36.8 Income of Consolidated Group 145.9 (9.5) 136.4 Net Income 146.9 (9.5) 137.4 Net Income Attributable to the Company $ 147.1 $ (9.5) $ 137.6 The prior period impacts to our consolidated balance sheet and the related components of stockholder’s equity were as follows: January 29, 2023 Previously As Reported Adjustment Adjusted Assets Receivables: Retail notes $ 23,937.2 $ (61.7) $ 23,875.5 Total receivables 42,655.5 (61.7) 42,593.8 Total receivables – net 42,533.8 (61.7) 42,472.1 Deferred income taxes 24.4 2.5 26.9 Total Assets $ 49,406.4 $ (59.2) $ 49,347.2 Liabilities and Stockholder’s Equity Accounts payable and accrued expenses $ 893.4 $ 103.0 $ 996.4 Deferred income taxes 225.5 (33.3) 192.2 Total liabilities 44,402.3 69.7 44,472.0 Stockholder’s equity: Retained earnings 3,572.4 (128.9) 3,443.5 Total Company stockholder’s equity 5,002.8 (128.9) 4,873.9 Total stockholder’s equity 5,004.1 (128.9) 4,875.2 Total Liabilities and Stockholder’s Equity $ 49,406.4 $ (59.2) $ 49,347.2 The prior period impacts to our statement of consolidated cash flows were as follows: Three Months Ended January 29, 2023 Previously As Reported Adjustment Adjusted Cash Flows from Operating Activities: Net income $ 146.9 $ (9.5) $ 137.4 Adjustments to reconcile net income to net cash provided by operating activities: Credit for deferred income taxes (11.3) (2.7) (14.0) Change in accounts payable and accrued expenses 29.1 11.8 40.9 Other (9.6) .4 (9.2) Net cash provided by operating activities $ 338.7 $ $ 338.7 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Jan. 28, 2024 | |
Subsequent Event | |
Subsequent Event | (13) In February 2024, we entered into a retail note securitization transaction that resulted in $529.3 of secured borrowings. |
Organization and Consolidation
Organization and Consolidation (Policies) | 3 Months Ended |
Jan. 28, 2024 | |
Organization and Consolidation | |
Fiscal Year, Policy | We use a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period. The first quarter ends for fiscal years 2024 and 2023 were January 28, 2024 and January 29, 2023, respectively. Both periods contained 13 weeks. Unless otherwise stated, references to particular years, quarters, or months refer to our fiscal years generally ending in October and the associated periods in those fiscal years. |
Financing Incentives, Policy | We provide incentive funds to John Deere dealers that meet certain performance metrics, which include minimum finance volume and finance market share with us over a defined period. At the end of the qualification period, dealers are granted incentive funds, which can be used for certain predefined uses, including interest rate reductions on future loan and lease originations. In addition, certain dealers may elect to receive cash for a portion of their earned funds. We accrue for the incentive costs over the qualification period, which are reported as “Administrative and operating expenses” in the consolidated income statements and “Accounts payable and accrued expenses” in the consolidated balance sheets. The accrued liability is released as dealers utilize the funds. |
Use of Estimates in Financial Statements, Policy | Certain accounting policies require management to make estimates and assumptions in determining the amounts reflected in the financial statements and related disclosures. Actual results could differ from those estimates. |
New Accounting Standards, Policy | We closely monitor all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) and other authoritative guidance. Accounting Standards Adopted In the first quarter of 2024, we adopted ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The ASU eliminates the accounting guidance for troubled debt restructurings, enhances disclosures for certain receivable modifications related to borrowers experiencing financial difficulty, and requires disclosure of current period gross write-offs by year of origination. The adoption did not have a material effect on our consolidated financial statements. We also adopted the following standards in 2024, none of which had a material effect on our consolidated financial statements. 2022-01 — Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method 2021-08 — Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Accounting Standards to be Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and cash taxes paid both in the U.S. and foreign jurisdictions. The effective date of the ASU is fiscal year 2026. We are assessing the effect of this update on our related disclosures. We will also adopt the following standards in future periods, none of which are expected to have a material effect on our consolidated financial statements. 2023-07 — Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures 2023-06 — Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative 2023-05 — Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement |
Allowance for Credit Losses, Policy | The allowance for credit losses is an estimate of the credit losses expected over the life of our Receivable portfolio. Non-performing Receivables are included in the estimate of expected credit losses. The allowance is measured on a collective basis for receivables with similar risk characteristics. Receivables that do not share risk characteristics are evaluated on an individual basis. Risk characteristics include: ● product category, ● market, ● geography, ● credit risk, and ● remaining balance. Recoveries from freestanding credit enhancements, such as dealer deposits, and certain credit insurance contracts are not included in the estimate of expected credit losses. Recoveries from dealer deposits are recognized in “Other income” when the dealer’s deposit account is charged. During the three months ended January 28, 2024 and January 29, 2023, recoveries from freestanding credit enhancements recorded in other income were $7.3 and $2.0, respectively. |
Securitization of Receivables, Policy | Our funding strategy includes retail note securitizations. While these securitization programs are administered in various forms, they are accomplished in the following basic steps: 1. We transfer retail notes into a bankruptcy-remote SPE. 2. The SPE issues debt to investors. The debt is secured by the retail notes. 3. Investors are paid back based on cash receipts from the retail notes. As part of step 1, these retail notes are legally isolated from the claims of our general creditors. This ensures cash receipts from the retail notes are accessible to pay back securitization program investors. The structure of these transactions does not meet the accounting criteria for a sale of receivables. As a result, they are accounted for as a secured borrowing. The receivables and borrowings remain on our balance sheet and are separately reported as “Retail notes securitized” and “Securitization borrowings,” respectively. |
Other Comprehensive Income It_2
Other Comprehensive Income Items (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
Other Comprehensive Income Items | |
Schedule of After-Tax Changes in Accumulated Other Comprehensive Income (Loss) | The after-tax components of accumulated other comprehensive income (loss) were as follows: January 28 October 29 January 29 2024 2023 2023 Cumulative translation adjustment $ (110.0) $ (136.8) $ (102.8) Unrealized gain on derivatives 19.2 34.8 52.5 Unrealized loss on debt securities (1.8) (2.4) (2.1) Total accumulated other comprehensive income (loss) $ (92.6) $ (104.4) $ (52.4) |
Schedule of Amounts Recorded in and Reclassifications out of Other Comprehensive Income (Loss) and the Income Tax Effects | The following tables reflect amounts recorded in other comprehensive income (loss), as well as reclassifications out of other comprehensive income (loss). Before Tax After Tax (Expense) Tax Amount Credit Amount Three Months Ended January 28, 2024 Cumulative translation adjustment $ 26.8 $ 26.8 Unrealized gain (loss) on derivatives: Unrealized hedging gain (loss) (7.8) $ 1.6 (6.2) Reclassification of realized (gain) loss to: Interest rate contracts – Interest expense (11.9) 2.5 (9.4) Net unrealized gain (loss) on derivatives (19.7) 4.1 (15.6) Unrealized gain (loss) on debt securities: Unrealized holding gain (loss) .8 (.2) .6 Total other comprehensive income (loss) $ 7.9 $ 3.9 $ 11.8 Three Months Ended January 29, 2023 Cumulative translation adjustment $ 66.2 $ 66.2 Unrealized gain (loss) on derivatives: Unrealized hedging gain (loss) (1.9) $ .4 (1.5) Reclassification of realized (gain) loss to: Interest rate contracts – Interest expense (16.3) 3.5 (12.8) Net unrealized gain (loss) on derivatives (18.2) 3.9 (14.3) Unrealized gain (loss) on debt securities: Unrealized holding gain (loss) .7 (.3) .4 Total other comprehensive income (loss) $ 48.7 $ 3.6 $ 52.3 |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
Receivables | |
Accrued finance income and lease revenue reversed on non-performing Receivables, and finance income and lease revenue recognized from cash payments on non-performing Receivables | Accrued finance income and lease revenue reversed on non-performing Receivables, and finance income and lease revenue recognized from cash payments on non-performing Receivables were as follows : Three Months Ended January 28 January 29 2024 2023 Accrued finance income and lease revenue reversed $ 6.7 $ 2.8 Finance income and lease revenue recognized on cash payments 5.9 3.1 |
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: Three Months Ended January 28, 2024 Retail Notes Revolving & Financing Charge Wholesale Total Leases Accounts Receivables Receivables Allowance: Beginning of period balance $ 114.9 $ 20.4 $ 11.1 $ 146.4 Provision (credit) for credit losses* 22.8 (2.0) (.4) 20.4 Write-offs (24.3) (10.7) (35.0) Recoveries 1.7 7.6 9.3 Translation adjustments (1.5) (1.5) End of period balance $ 115.1 $ 15.3 $ 9.2 $ 139.6 Receivables: End of period balance $ 33,385.1 $ 2,925.5 $ 14,542.8 $ 50,853.4 Three Months Ended January 29, 2023 Retail Notes Revolving & Financing Charge Wholesale Total Leases Accounts Receivables Receivables Allowance: Beginning of period balance $ 95.4 $ 21.9 $ 11.1 $ 128.4 Provision (credit) for credit losses* 6.8 (3.7) (.5) 2.6 Write-offs (10.2) (7.5) (.1) (17.8) Recoveries 2.4 5.3 .6 8.3 Translation adjustments .4 (.2) .2 End of period balance $ 94.8 $ 16.0 $ 10.9 $ 121.7 Receivables: End of period balance $ 30,007.7 $ 2,834.0 $ 9,752.1 $ 42,593.8 * Excludes provision for credit losses on unfunded commitments of $.6 and $.9 for the three months ended January 28, 2024 and January 29, 2023, respectively. The estimated credit losses related to unfunded commitments are recorded in “Accounts payable and accrued expenses.” |
Write-offs by Year of Origination | Write-offs by year of origination were as follows: Three Months Ended January 28, 2024 2024 2023 2022 2021 2020 Prior Years Revolving Total Customer Receivables: Agriculture and turf $ 1.5 $ 2.9 $ 1.8 $ 3.6 $ .6 $ 8.8 $ 19.2 Construction and forestry $ .2 5.5 4.5 2.2 .8 .7 1.9 15.8 Total $ .2 $ 7.0 $ 7.4 $ 4.0 $ 4.4 $ 1.3 $ 10.7 $ 35.0 |
Customer Receivables | |
Receivables | |
Credit Quality Analysis | The credit quality analysis of Customer Receivables by year of origination was as follows: January 28, 2024 2024 2023 2022 2021 2020 Prior Years Revolving Charge Accounts Total Customer Receivables: Agriculture and turf Current $ 2,740.5 $ 11,557.0 $ 6,550.6 $ 3,954.2 $ 1,692.4 $ 667.3 $ 2,719.3 $ 29,881.3 30-59 days past due 4.5 105.0 58.5 40.8 18.8 10.0 69.7 307.3 60-89 days past due .5 45.9 19.3 12.7 6.1 4.3 15.8 104.6 90+ days past due 1.1 .5 3.0 4.4 .3 9.3 Non-performing .3 39.1 78.6 48.7 26.9 24.8 10.4 228.8 Construction and forestry Current 677.8 2,156.0 1,400.8 716.3 216.8 94.0 101.2 5,362.9 30-59 days past due 7.2 64.9 35.5 24.1 7.8 3.3 5.3 148.1 60-89 days past due .4 24.2 19.2 11.7 5.7 2.8 2.2 66.2 90+ days past due .2 .2 .4 Non-performing 55.3 74.8 44.6 17.9 7.5 1.6 201.7 Total $ 3,431.2 $ 14,048.5 $ 8,238.0 $ 4,856.1 $ 1,996.8 $ 814.5 2,925.5 $ 36,310.6 October 29, 2023 2023 2022 2021 2020 2019 Prior Years Revolving Charge Accounts Total Customer Receivables: Agriculture and turf Current $ 12,998.3 $ 7,208.2 $ 4,459.1 $ 1,970.4 $ 666.3 $ 179.3 $ 4,424.8 $ 31,906.4 30-59 days past due 46.8 66.6 34.6 18.7 8.2 2.9 28.1 205.9 60-89 days past due 15.8 22.0 14.8 7.8 3.3 1.3 8.6 73.6 90+ days past due 1.4 .8 2.7 2.9 .1 .1 8.0 Non-performing 25.9 63.7 44.5 25.0 12.9 12.0 7.2 191.2 Construction and forestry Current 2,343.4 1,586.2 859.0 279.2 65.3 27.3 118.6 5,279.0 30-59 days past due 44.4 28.1 24.8 8.6 3.4 .4 4.1 113.8 60-89 days past due 17.8 11.4 11.8 4.5 1.0 .2 1.8 48.5 90+ days past due .1 1.2 .1 .1 1.5 Non-performing 34.1 67.5 51.2 20.7 7.5 4.0 1.2 186.2 Total $ 15,528.0 $ 9,055.7 $ 5,502.6 $ 2,337.9 $ 768.0 $ 227.5 $ 4,594.4 $ 38,014.1 January 29, 2023 2023 2022 2021 2020 2019 Prior Years Revolving Charge Accounts Total Customer Receivables: Agriculture and turf Current $ 2,452.2 $ 10,749.5 $ 6,302.5 $ 3,104.4 $ 1,289.3 $ 565.0 $ 2,686.3 $ 27,149.2 30-59 days past due 1.7 29.4 29.2 48.2 10.4 42.8 27.2 188.9 60-89 days past due 1.3 12.2 10.5 18.0 3.7 14.1 5.9 65.7 90+ days past due 1.2 .2 2.9 1.0 .2 5.5 Non-performing .3 35.1 43.3 29.1 15.0 19.6 7.8 150.2 Construction and forestry Current 553.7 2,156.3 1,339.0 538.4 177.7 68.5 99.0 4,932.6 30-59 days past due 1.5 9.9 23.6 34.3 15.7 52.1 4.6 141.7 60-89 days past due .4 4.3 15.7 17.7 6.4 23.0 2.0 69.5 90+ days past due .1 .2 .4 .2 .9 Non-performing 38.9 51.8 26.1 13.0 6.5 1.2 137.5 Total $ 3,011.1 $ 13,036.9 $ 7,816.0 $ 3,819.5 $ 1,532.4 $ 791.8 $ 2,834.0 $ 32,841.7 |
Wholesale Receivables | |
Receivables | |
Credit Quality Analysis | The credit quality analysis of wholesale receivables by year of origination was as follows: January 28, 2024 2024 2023 2022 2021 2020 Prior Years Revolving Total Wholesale receivables: Agriculture and turf Current $ 199.8 $ 450.3 $ 67.6 $ 4.8 $ 2.6 $ 1.3 $ 10,198.5 $ 10,924.9 30+ days past due .6 61.3 61.9 Non-performing 5.8 5.8 Construction and forestry Current 5.6 10.7 2.2 19.3 .1 .1 3,495.5 3,533.5 30+ days past due 16.7 16.7 Non-performing Total $ 205.4 $ 461.6 $ 69.8 $ 24.1 $ 2.7 $ 1.4 $ 13,777.8 $ 14,542.8 October 29, 2023 2023 2022 2021 2020 2019 Prior Years Revolving Total Wholesale receivables: Agriculture and turf Current $ 609.5 $ 92.6 $ 20.0 $ 3.9 $ .7 $ 159.9 $ 9,270.1 $ 10,156.7 30+ days past due 45.8 45.8 Non-performing 5.7 5.7 Construction and forestry Current 19.4 2.5 19.9 .2 .1 75.2 2,987.6 3,104.9 30+ days past due 17.0 17.0 Non-performing Total $ 628.9 $ 95.1 $ 39.9 $ 4.1 $ .8 $ 235.1 $ 12,326.2 $ 13,330.1 January 29, 2023 2023 2022 2021 2020 2019 Prior Years Revolving Total Wholesale receivables: Agriculture and turf Current $ 114.6 $ 283.2 $ 45.7 $ 20.2 $ 3.7 $ 1.2 $ 7,349.9 $ 7,818.5 30+ days past due .3 9.2 9.5 Non-performing 5.9 5.9 Construction and forestry Current 5.8 3.8 23.7 1.0 .3 .1 1,875.8 1,910.5 30+ days past due 7.7 7.7 Non-performing Total $ 120.4 $ 287.3 $ 69.4 $ 21.2 $ 4.0 $ 1.3 $ 9,248.5 $ 9,752.1 |
Securitization of Receivables (
Securitization of Receivables (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
Securitization of Receivables | |
Components of Consolidated Restricted Assets, Secured Borrowings and Other Liabilities Related to Securitization Transactions | The components of the securitization programs were as follows: January 28 October 29 January 29 2024 2023 2023 Retail notes securitized $ 6,417.7 $ 7,356.8 $ 5,101.4 Allowance for credit losses (17.8) (21.4) (12.5) Other assets (primarily restricted cash) 139.9 152.0 97.2 Total restricted securitized assets $ 6,539.8 $ 7,487.4 $ 5,186.1 Securitization borrowings $ 6,116.1 $ 6,995.2 $ 4,863.9 Accrued interest on borrowings 10.0 12.6 5.9 Total liabilities related to restricted securitized assets $ 6,126.1 $ 7,007.8 $ 4,869.8 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
Leases | |
Schedule of Lease Revenues Earned | Lease revenues earned by us were as follows: Three Months Ended January 28 January 29 2024 2023 Sales-type and direct financing lease revenues $ 27.0 $ 18.8 Operating lease revenues 234.2 218.9 Variable lease revenues 4.0 5.6 Total lease revenues $ 265.2 $ 243.3 Variable lease revenues reported above primarily relate to separately invoiced property taxes on leased equipment in certain markets, late fees, and excess use and damage fees. Excess use and damage fees are reported in “Other income” and were $.4 and $.8 for the first quarter of 2024 and 2023, respectively. |
Schedule of Cost of Equipment on Operating Leases by Market | The cost of equipment on operating leases by market was as follows: January 28 October 29 January 29 2024 2023 2023 Agriculture and turf $ 5,198.3 $ 5,265.2 $ 4,893.6 Construction and forestry 1,005.7 1,042.4 1,084.9 Total 6,204.0 6,307.6 5,978.5 Accumulated depreciation (1,270.6) (1,256.1) (1,285.1) Equipment on operating leases – net $ 4,933.4 $ 5,051.5 $ 4,693.4 |
Notes Receivable from and Pay_2
Notes Receivable from and Payable to John Deere (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
Notes Receivable from and Payable to John Deere | |
Notes Receivable from and Payable to John Deere | We provide loans to Banco John Deere S.A.(BJD), a John Deere finance subsidiary in Brazil, which are reported in “Notes receivable from John Deere.” Balances due from BJD were as follows: January 28 October 29 January 29 2024 2023 2023 Notes receivable from John Deere $ 663.7 $ 650.7 $ 494.4 We also obtain funding from affiliated companies which resulted in notes payable to John Deere as follows: January 28 October 29 January 29 2024 2023 2023 Notes payable to John Deere $ 3,512.5 $ 3,184.0 $ 4,416.2 |
Long-Term External Borrowings (
Long-Term External Borrowings (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
Long-Term External Borrowings | |
Long-Term Borrowings | Long-term external borrowings consisted of the following: January 28 October 29 January 29 2024 2023 2023 Senior Debt: Medium-term notes $ 28,805.4 $ 27,522.8 $ 23,564.2 Other notes .5 Total senior debt 28,805.4 27,522.8 23,564.7 Unamortized debt discount and debt issuance costs (85.0) (83.5) (71.3) Total $ 28,720.4 $ 27,439.3 $ 23,493.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
Fair Value Measurements | |
Fair Values of Financial Instruments | The fair values of financial instruments that do not approximate the carrying values were as follows: January 28, 2024 October 29, 2023 January 29, 2023 Carrying Fair Carrying Fair Carrying Fair Value Value Value Value Value Value Receivables financed – net $ 44,313.9 $ 43,978.1 $ 43,862.4 $ 43,168.7 $ 37,383.2 $ 36,668.3 Retail notes securitized – net 6,399.9 6,224.9 7,335.4 7,055.8 5,088.9 4,868.9 Securitization borrowings 6,116.1 6,103.8 6,995.2 6,921.1 4,863.9 4,784.8 Current maturities of long-term 5,705.1 5,610.7 6,059.9 5,953.0 6,080.1 5,957.2 Long-term external borrowings 28,720.4 28,775.5 27,439.3 27,057.7 23,493.4 23,126.2 Fair value measurements above were Level 3 for all Receivables and Level 2 for all borrowings. |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis were as follows: January 28 October 29 January 29 2024 2023 2023 Marketable securities International debt securities $ 2.3 $ 1.4 $ 1.8 Receivables from John Deere Derivatives 146.6 144.4 171.2 Other assets Derivatives 22.2 11.3 1.2 Total assets $ 171.1 $ 157.1 $ 174.2 Other payables to John Deere Derivatives $ 596.7 $ 974.9 $ 664.2 Accounts payable and accrued expenses Derivatives 4.3 .5 29.1 Total liabilities $ 601.0 $ 975.4 $ 693.3 All fair value measurements in the table above were Level 2. Excluded from the table above were our cash equivalents, which were carried at cost that approximates fair value. The cash equivalents consist primarily of time deposits and money market funds. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
Derivative Instruments | |
Fair Values of Derivative Instruments in Consolidated Balance Sheets | The fair values of our derivative instruments and the associated notional amounts were as follows: January 28, 2024 October 29, 2023 January 29, 2023 Fair Value Fair Value Fair Value Notional Asset Liability Notional Asset Liability Notional Asset Liability Cash flow hedges: Interest rate contracts - swaps $ 2,200.0 $ 27.4 $ 4.4 $ 1,500.0 $ 44.7 $ 1,950.0 $ 69.2 Fair value hedges: Interest rate contracts - swaps 11,779.6 52.1 547.3 11,859.4 $ 915.7 10,126.7 20.8 $ 629.0 Not designated as hedging instruments: Interest rate contracts - swaps 7,784.7 53.8 18.3 8,010.9 72.2 27.4 4,847.8 76.2 24.0 Foreign currency exchange contracts 1,814.8 22.2 4.3 1,546.5 11.3 .5 1,297.8 1.2 29.1 Cross-currency interest rate contracts 188.6 13.4 175.8 3.2 7.5 119.3 .3 6.5 Interest rate caps - sold 1,199.5 13.3 1,336.0 24.3 788.8 4.7 Interest rate caps - purchased 1,199.5 13.3 1,336.0 24.3 788.8 4.7 |
Amounts Recorded in the Consolidated Balance Sheets Related to Borrowings Designated in Fair Value Hedging Relationships | The amounts recorded in the consolidated balance sheets related to borrowings designated in fair value hedging relationships were as follows. Fair value hedging adjustments are included in the carrying amount of the hedged item. Active Hedging Relationships Discontinued Hedging Relationships Cumulative Carrying Cumulative Carrying Fair Value Amount of Fair Value Amount of Hedging Formerly Hedging January 28, 2024 Hedged Item Adjustment Hedged Item Adjustment Current maturities of long-term external borrowings $ 1,959.5 $ 10.4 Long-term external borrowings $ 11,220.3 $ (506.6) 7,710.9 (269.7) October 29, 2023 Current maturities of long-term external borrowings $ 1,814.0 $ 14.9 Long-term external borrowings $ 10,883.7 $ (922.6) 7,144.1 (288.1) January 29, 2023 Current maturities of long-term external borrowings $ 1,914.8 $ 15.3 Long-term external borrowings $ 9,461.7 $ (618.6) 5,505.8 (82.9) |
Gains (Losses) Related to Derivative Instruments on Statements of Consolidated Income | The classification and gains (losses), including accrued interest expense related to derivative instruments on the statements of consolidated income consisted of the following: Three Months Ended January 28 January 29 2024 2023 Fair Value Hedges Interest rate contracts - Interest expense $ 335.7 $ 235.3 Cash Flow Hedges Recognized in OCI: Interest rate contracts - OCI (pretax) $ (7.8) $ (1.9) Reclassified from OCI: Interest rate contracts - Interest expense 11.9 16.3 Not Designated as Hedges Interest rate contracts - Interest expense * $ (5.7) $ (1.9) Foreign currency exchange contracts - Administrative and operating expenses * (103.2) (135.1) Total not designated $ (108.9) $ (137.0) * Includes interest and foreign currency exchange gains (losses) from cross-currency interest rate contracts. |
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: January 28, 2024 Gross Amounts Netting Collateral Net Derivatives: Assets External $ 22.2 $ (3.0) $ 19.2 John Deere 146.6 (101.6) 45.0 Liabilities External 4.3 (3.0) 1.3 John Deere 596.7 (101.6) 495.1 October 29, 2023 Gross Amounts Netting Collateral Net Derivatives: Assets External $ 11.3 $ (.1) $ 11.2 John Deere 144.4 (107.0) 37.4 Liabilities External .5 (.1) .4 John Deere 974.9 (107.0) 867.9 January 29, 2023 Gross Amounts Netting Collateral Net Derivatives: Assets External $ 1.2 $ 1.2 John Deere 171.2 $ (129.1) 42.1 Liabilities External 29.1 29.1 John Deere 664.2 (129.1) 535.1 |
Immaterial Restatement of Pri_2
Immaterial Restatement of Prior Period Financial Statements (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
Immaterial Restatement of Prior Period Financial Statements | |
Prior Period Impacts to the Company's Financial Statements | The prior period impacts to our statement of consolidated income and the related impacts to the statement of consolidated comprehensive income were as follows: Three Months Ended January 29, 2023 Previously As Reported Adjustment Adjusted Revenues Finance income earned on retail notes $ 315.9 $ 14.1 $ 330.0 Lease revenues 240.7 1.8 242.5 Total revenues 820.6 15.9 836.5 Expenses Administrative and operating expenses 108.5 28.2 136.7 Total operating expenses 334.1 28.2 362.3 Total expenses 635.1 28.2 663.3 Income of Consolidated Group before Income Taxes 185.5 (12.3) 173.2 Provision for income taxes 39.6 (2.8) 36.8 Income of Consolidated Group 145.9 (9.5) 136.4 Net Income 146.9 (9.5) 137.4 Net Income Attributable to the Company $ 147.1 $ (9.5) $ 137.6 The prior period impacts to our consolidated balance sheet and the related components of stockholder’s equity were as follows: January 29, 2023 Previously As Reported Adjustment Adjusted Assets Receivables: Retail notes $ 23,937.2 $ (61.7) $ 23,875.5 Total receivables 42,655.5 (61.7) 42,593.8 Total receivables – net 42,533.8 (61.7) 42,472.1 Deferred income taxes 24.4 2.5 26.9 Total Assets $ 49,406.4 $ (59.2) $ 49,347.2 Liabilities and Stockholder’s Equity Accounts payable and accrued expenses $ 893.4 $ 103.0 $ 996.4 Deferred income taxes 225.5 (33.3) 192.2 Total liabilities 44,402.3 69.7 44,472.0 Stockholder’s equity: Retained earnings 3,572.4 (128.9) 3,443.5 Total Company stockholder’s equity 5,002.8 (128.9) 4,873.9 Total stockholder’s equity 5,004.1 (128.9) 4,875.2 Total Liabilities and Stockholder’s Equity $ 49,406.4 $ (59.2) $ 49,347.2 The prior period impacts to our statement of consolidated cash flows were as follows: Three Months Ended January 29, 2023 Previously As Reported Adjustment Adjusted Cash Flows from Operating Activities: Net income $ 146.9 $ (9.5) $ 137.4 Adjustments to reconcile net income to net cash provided by operating activities: Credit for deferred income taxes (11.3) (2.7) (14.0) Change in accounts payable and accrued expenses 29.1 11.8 40.9 Other (9.6) .4 (9.2) Net cash provided by operating activities $ 338.7 $ $ 338.7 |
Organization and Consolidatio_2
Organization and Consolidation (Details) | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Fiscal Year | ||
Fiscal period duration | 91 days | 91 days |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and New Accounting Standards (Details) | Jan. 28, 2024 |
ASU 2022-02 | |
New Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
ASU 2022-01 | |
New Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
ASU 2021-08 | |
New Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
ASU 2023-09 | |
New Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | false |
ASU 2023-07 | |
New Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | false |
ASU 2023-06 | |
New Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | false |
ASU 2023-05 | |
New Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | false |
Other Comprehensive Income It_3
Other Comprehensive Income Items - After-Tax Components (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
After-tax components of accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | $ 5,872.9 | $ 5,901.6 | $ 4,873.9 |
Accumulated Other Comprehensive Income (Loss) | |||
After-tax components of accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | (92.6) | (104.4) | (52.4) |
Cumulative Translation Adjustment | |||
After-tax components of accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | (110) | (136.8) | (102.8) |
Unrealized Gain (Loss) on Derivatives | |||
After-tax components of accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | 19.2 | 34.8 | 52.5 |
Unrealized Gain (Loss) on Debt Securities | |||
After-tax components of accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | $ (1.8) | $ (2.4) | $ (2.1) |
Other Comprehensive Income It_4
Other Comprehensive Income Items - Amounts Recorded in and Reclassifications out of (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Other comprehensive income (loss), before tax | ||
Interest expense | $ (571.4) | $ (301) |
Total other comprehensive income (loss), before tax | 7.9 | 48.7 |
Other comprehensive income (loss), tax (expense) credit | ||
Total other comprehensive income (loss), tax (expense) credit | 3.9 | 3.6 |
Other comprehensive income (loss), after tax | ||
Other comprehensive income (loss), net of income taxes | 11.8 | 52.3 |
Cumulative Translation Adjustment | ||
Other comprehensive income (loss), before tax | ||
Total other comprehensive income (loss), before tax | 26.8 | 66.2 |
Other comprehensive income (loss), after tax | ||
Other comprehensive income (loss), net of income taxes | 26.8 | 66.2 |
Unrealized Gain (Loss) on Derivatives | ||
Other comprehensive income (loss), before tax | ||
Other comprehensive income (loss) before reclassification, before tax | (7.8) | (1.9) |
Total other comprehensive income (loss), before tax | (19.7) | (18.2) |
Other comprehensive income (loss), tax (expense) credit | ||
Other comprehensive income (loss) before reclassification, tax (expense) credit | 1.6 | 0.4 |
Total other comprehensive income (loss), tax (expense) credit | 4.1 | 3.9 |
Other comprehensive income (loss), after tax | ||
Other comprehensive income (loss) before reclassification, after tax | (6.2) | (1.5) |
Other comprehensive income (loss), net of income taxes | (15.6) | (14.3) |
Unrealized Gain (Loss) on Derivatives | Interest Rate Contracts (Swaps) | Reclassifications of gains (losses) out of accumulated other comprehensive income | ||
Other comprehensive income (loss), before tax | ||
Interest expense | (11.9) | (16.3) |
Other comprehensive income (loss), tax (expense) credit | ||
Reclassification of realized (gain) loss, tax expense (credit) | 2.5 | 3.5 |
Other comprehensive income (loss), after tax | ||
Reclassification of realized (gain) loss, after tax | (9.4) | (12.8) |
Unrealized Gain (Loss) on Debt Securities | ||
Other comprehensive income (loss), before tax | ||
Total other comprehensive income (loss), before tax | 0.8 | 0.7 |
Other comprehensive income (loss), tax (expense) credit | ||
Total other comprehensive income (loss), tax (expense) credit | (0.2) | (0.3) |
Other comprehensive income (loss), after tax | ||
Other comprehensive income (loss), net of income taxes | $ 0.6 | $ 0.4 |
Receivables - Delinquency Statu
Receivables - Delinquency Status (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Receivable, Past Due | ||
Financing Receivable, Practical Expedient, Accrued Interest Exclusion [true false] | false | |
Threshold for past due balances | 30 days | |
Non-performing | ||
Receivable, Past Due | ||
Accrued finance income and lease revenue reversed | $ 6.7 | $ 2.8 |
Finance income and lease revenue recognized on cash payments | $ 5.9 | $ 3.1 |
Customer Receivables | ||
Receivable, Past Due | ||
Generally the threshold for a financing receivable to be considered non-performing | 90 days | |
Generally the threshold when a receivable is delinquent and the estimated uncollectible amount is written off | 120 days | |
Wholesale Receivables | ||
Receivable, Past Due | ||
Generally the threshold for a financing receivable to be considered non-performing | 60 days | |
Generally the threshold when a receivable is delinquent and the estimated uncollectible amount is written off | 60 days |
Receivables - Customer Receivab
Receivables - Customer Receivables Credit Quality Analysis (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Allowance for Credit Losses and Credit Quality of Receivables | |||
Total | $ 50,853.4 | $ 51,344.2 | $ 42,593.8 |
Customer Receivables | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
2024 and 2023, respectively | 3,431.2 | 15,528 | 3,011.1 |
2023 and 2022, respectively | 14,048.5 | 9,055.7 | 13,036.9 |
2022 and 2021, respectively | 8,238 | 5,502.6 | 7,816 |
2021 and 2020, respectively | 4,856.1 | 2,337.9 | 3,819.5 |
2020 and 2019, respectively | 1,996.8 | 768 | 1,532.4 |
Prior years | 814.5 | 227.5 | 791.8 |
Revolving | 2,925.5 | 4,594.4 | 2,834 |
Total | 36,310.6 | 38,014.1 | 32,841.7 |
Customer Receivables | Agriculture and turf | 30-59 Days Past Due | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
2024 and 2023, respectively | 4.5 | 46.8 | 1.7 |
2023 and 2022, respectively | 105 | 66.6 | 29.4 |
2022 and 2021, respectively | 58.5 | 34.6 | 29.2 |
2021 and 2020, respectively | 40.8 | 18.7 | 48.2 |
2020 and 2019, respectively | 18.8 | 8.2 | 10.4 |
Prior years | 10 | 2.9 | 42.8 |
Revolving | 69.7 | 28.1 | 27.2 |
Total | 307.3 | 205.9 | 188.9 |
Customer Receivables | Agriculture and turf | 60-89 Days Past Due | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
2024 and 2023, respectively | 0.5 | 15.8 | 1.3 |
2023 and 2022, respectively | 45.9 | 22 | 12.2 |
2022 and 2021, respectively | 19.3 | 14.8 | 10.5 |
2021 and 2020, respectively | 12.7 | 7.8 | 18 |
2020 and 2019, respectively | 6.1 | 3.3 | 3.7 |
Prior years | 4.3 | 1.3 | 14.1 |
Revolving | 15.8 | 8.6 | 5.9 |
Total | 104.6 | 73.6 | 65.7 |
Customer Receivables | Agriculture and turf | 90 Days or Greater Past Due | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
2024 and 2023, respectively | 1.4 | ||
2023 and 2022, respectively | 1.1 | 0.8 | 1.2 |
2022 and 2021, respectively | 0.5 | 2.7 | 0.2 |
2021 and 2020, respectively | 3 | 2.9 | 2.9 |
2020 and 2019, respectively | 4.4 | 0.1 | 1 |
Prior years | 0.3 | 0.1 | 0.2 |
Total | 9.3 | 8 | 5.5 |
Customer Receivables | Agriculture and turf | Current | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
2024 and 2023, respectively | 2,740.5 | 12,998.3 | 2,452.2 |
2023 and 2022, respectively | 11,557 | 7,208.2 | 10,749.5 |
2022 and 2021, respectively | 6,550.6 | 4,459.1 | 6,302.5 |
2021 and 2020, respectively | 3,954.2 | 1,970.4 | 3,104.4 |
2020 and 2019, respectively | 1,692.4 | 666.3 | 1,289.3 |
Prior years | 667.3 | 179.3 | 565 |
Revolving | 2,719.3 | 4,424.8 | 2,686.3 |
Total | 29,881.3 | 31,906.4 | 27,149.2 |
Customer Receivables | Agriculture and turf | Non-performing | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
2024 and 2023, respectively | 0.3 | 25.9 | 0.3 |
2023 and 2022, respectively | 39.1 | 63.7 | 35.1 |
2022 and 2021, respectively | 78.6 | 44.5 | 43.3 |
2021 and 2020, respectively | 48.7 | 25 | 29.1 |
2020 and 2019, respectively | 26.9 | 12.9 | 15 |
Prior years | 24.8 | 12 | 19.6 |
Revolving | 10.4 | 7.2 | 7.8 |
Total | 228.8 | 191.2 | 150.2 |
Customer Receivables | Construction and forestry | 30-59 Days Past Due | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
2024 and 2023, respectively | 7.2 | 44.4 | 1.5 |
2023 and 2022, respectively | 64.9 | 28.1 | 9.9 |
2022 and 2021, respectively | 35.5 | 24.8 | 23.6 |
2021 and 2020, respectively | 24.1 | 8.6 | 34.3 |
2020 and 2019, respectively | 7.8 | 3.4 | 15.7 |
Prior years | 3.3 | 0.4 | 52.1 |
Revolving | 5.3 | 4.1 | 4.6 |
Total | 148.1 | 113.8 | 141.7 |
Customer Receivables | Construction and forestry | 60-89 Days Past Due | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
2024 and 2023, respectively | 0.4 | 17.8 | 0.4 |
2023 and 2022, respectively | 24.2 | 11.4 | 4.3 |
2022 and 2021, respectively | 19.2 | 11.8 | 15.7 |
2021 and 2020, respectively | 11.7 | 4.5 | 17.7 |
2020 and 2019, respectively | 5.7 | 1 | 6.4 |
Prior years | 2.8 | 0.2 | 23 |
Revolving | 2.2 | 1.8 | 2 |
Total | 66.2 | 48.5 | 69.5 |
Customer Receivables | Construction and forestry | 90 Days or Greater Past Due | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
2024 and 2023, respectively | 0.1 | ||
2023 and 2022, respectively | 1.2 | 0.1 | |
2022 and 2021, respectively | 0.2 | 0.1 | 0.2 |
2021 and 2020, respectively | 0.1 | 0.4 | |
2020 and 2019, respectively | 0.2 | ||
Prior years | 0.2 | ||
Total | 0.4 | 1.5 | 0.9 |
Customer Receivables | Construction and forestry | Current | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
2024 and 2023, respectively | 677.8 | 2,343.4 | 553.7 |
2023 and 2022, respectively | 2,156 | 1,586.2 | 2,156.3 |
2022 and 2021, respectively | 1,400.8 | 859 | 1,339 |
2021 and 2020, respectively | 716.3 | 279.2 | 538.4 |
2020 and 2019, respectively | 216.8 | 65.3 | 177.7 |
Prior years | 94 | 27.3 | 68.5 |
Revolving | 101.2 | 118.6 | 99 |
Total | 5,362.9 | 5,279 | 4,932.6 |
Customer Receivables | Construction and forestry | Non-performing | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
2024 and 2023, respectively | 34.1 | ||
2023 and 2022, respectively | 55.3 | 67.5 | 38.9 |
2022 and 2021, respectively | 74.8 | 51.2 | 51.8 |
2021 and 2020, respectively | 44.6 | 20.7 | 26.1 |
2020 and 2019, respectively | 17.9 | 7.5 | 13 |
Prior years | 7.5 | 4 | 6.5 |
Revolving | 1.6 | 1.2 | 1.2 |
Total | $ 201.7 | $ 186.2 | $ 137.5 |
Receivables - Wholesale Receiva
Receivables - Wholesale Receivables Credit Quality Analysis (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Allowance for Credit Losses and Credit Quality of Receivables | |||
Total | $ 50,853.4 | $ 51,344.2 | $ 42,593.8 |
Wholesale Receivables | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
2024 and 2023, respectively | 205.4 | 628.9 | 120.4 |
2023 and 2022, respectively | 461.6 | 95.1 | 287.3 |
2022 and 2021, respectively | 69.8 | 39.9 | 69.4 |
2021 and 2020, respectively | 24.1 | 4.1 | 21.2 |
2020 and 2019, respectively | 2.7 | 0.8 | 4 |
Prior years | 1.4 | 235.1 | 1.3 |
Revolving | 13,777.8 | 12,326.2 | 9,248.5 |
Total | 14,542.8 | 13,330.1 | 9,752.1 |
Wholesale Receivables | Agriculture and turf | 30+ days past due | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
2023 and 2022, respectively | 0.6 | 0.3 | |
Revolving | 61.3 | 45.8 | 9.2 |
Total | 61.9 | 45.8 | 9.5 |
Wholesale Receivables | Agriculture and turf | Current | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
2024 and 2023, respectively | 199.8 | 609.5 | 114.6 |
2023 and 2022, respectively | 450.3 | 92.6 | 283.2 |
2022 and 2021, respectively | 67.6 | 20 | 45.7 |
2021 and 2020, respectively | 4.8 | 3.9 | 20.2 |
2020 and 2019, respectively | 2.6 | 0.7 | 3.7 |
Prior years | 1.3 | 159.9 | 1.2 |
Revolving | 10,198.5 | 9,270.1 | 7,349.9 |
Total | 10,924.9 | 10,156.7 | 7,818.5 |
Wholesale Receivables | Agriculture and turf | Non-performing | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
Revolving | 5.8 | 5.7 | 5.9 |
Total | 5.8 | 5.7 | 5.9 |
Wholesale Receivables | Construction and forestry | 30+ days past due | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
Revolving | 16.7 | 17 | 7.7 |
Total | 16.7 | 17 | 7.7 |
Wholesale Receivables | Construction and forestry | Current | |||
Allowance for Credit Losses and Credit Quality of Receivables | |||
2024 and 2023, respectively | 5.6 | 19.4 | 5.8 |
2023 and 2022, respectively | 10.7 | 2.5 | 3.8 |
2022 and 2021, respectively | 2.2 | 19.9 | 23.7 |
2021 and 2020, respectively | 19.3 | 0.2 | 1 |
2020 and 2019, respectively | 0.1 | 0.1 | 0.3 |
Prior years | 0.1 | 75.2 | 0.1 |
Revolving | 3,495.5 | 2,987.6 | 1,875.8 |
Total | $ 3,533.5 | $ 3,104.9 | $ 1,910.5 |
Receivables - Allowance for Cre
Receivables - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 28, 2024 | Jan. 29, 2023 | Oct. 29, 2023 | |
Receivable, Allowance for Credit Losses | |||
Freestanding credit enhancement recoveries | $ 7.3 | $ 2 | |
Allowance: | |||
Beginning of period balance | 146.4 | 128.4 | |
Provision (credit) for credit losses | 20.4 | 2.6 | |
Write-offs | (35) | (17.8) | |
Recoveries | 9.3 | 8.3 | |
Translation adjustments | (1.5) | 0.2 | |
End of period balance | 139.6 | 121.7 | |
Receivables: | |||
End of period balance | 50,853.4 | 42,593.8 | $ 51,344.2 |
Unfunded Commitments | |||
Allowance: | |||
Provision (credit) for credit losses | 0.6 | 0.9 | |
Customer Receivables | |||
Allowance: | |||
Write-offs | (35) | ||
Receivables: | |||
End of period balance | 36,310.6 | 32,841.7 | 38,014.1 |
Retail Notes & Financing Leases | |||
Allowance: | |||
Beginning of period balance | 114.9 | 95.4 | |
Provision (credit) for credit losses | 22.8 | 6.8 | |
Write-offs | (24.3) | (10.2) | |
Recoveries | 1.7 | 2.4 | |
Translation adjustments | 0.4 | ||
End of period balance | 115.1 | 94.8 | |
Receivables: | |||
End of period balance | 33,385.1 | 30,007.7 | |
Revolving charge accounts | |||
Allowance: | |||
Beginning of period balance | 20.4 | 21.9 | |
Provision (credit) for credit losses | (2) | (3.7) | |
Write-offs | (10.7) | (7.5) | |
Recoveries | 7.6 | 5.3 | |
End of period balance | 15.3 | 16 | |
Receivables: | |||
End of period balance | 2,925.5 | 2,834 | 4,594.4 |
Wholesale Receivables | |||
Allowance: | |||
Beginning of period balance | 11.1 | 11.1 | |
Provision (credit) for credit losses | (0.4) | (0.5) | |
Write-offs | (0.1) | ||
Recoveries | 0.6 | ||
Translation adjustments | (1.5) | (0.2) | |
End of period balance | 9.2 | 10.9 | |
Receivables: | |||
End of period balance | $ 14,542.8 | $ 9,752.1 | $ 13,330.1 |
Receivables - Write-offs by Yea
Receivables - Write-offs by Year of Origination (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Write-offs by Year of Origination | ||
Total | $ 35 | $ 17.8 |
Customer Receivables | ||
Write-offs by Year of Origination | ||
2024 | 0.2 | |
2023 | 7 | |
2022 | 7.4 | |
2021 | 4 | |
2020 | 4.4 | |
Prior Years | 1.3 | |
Revolving Charge Accounts | 10.7 | |
Total | 35 | |
Customer Receivables | Agriculture and turf | ||
Write-offs by Year of Origination | ||
2023 | 1.5 | |
2022 | 2.9 | |
2021 | 1.8 | |
2020 | 3.6 | |
Prior Years | 0.6 | |
Revolving Charge Accounts | 8.8 | |
Total | 19.2 | |
Customer Receivables | Construction and forestry | ||
Write-offs by Year of Origination | ||
2024 | 0.2 | |
2023 | 5.5 | |
2022 | 4.5 | |
2021 | 2.2 | |
2020 | 0.8 | |
Prior Years | 0.7 | |
Revolving Charge Accounts | 1.9 | |
Total | $ 15.8 | |
Wholesale Receivables | ||
Write-offs by Year of Origination | ||
Total | $ 0.1 |
Receivables - Modifications (De
Receivables - Modifications (Details) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 USD ($) | Jan. 29, 2023 USD ($) item | |
Modifications | ||
Amortized cost of modified loans | $ 9.3 | $ 1 |
Modifications (as a percent) | 0.02% | |
Commitments to provide additional financing to customers whose accounts were modified | $ 0 | |
Number of Receivable contracts | item | 36 | |
Pre-modification balance | $ 1 | |
Receivable contracts in troubled debt restructuring, subsequently defaulted | $ 0 | |
30-59 Days Past Due | ||
Modifications | ||
Amortized cost of modified loans | 0.1 | |
Current | ||
Modifications | ||
Amortized cost of modified loans | 8.6 | |
Non-performing | ||
Modifications | ||
Amortized cost of modified loans | $ 0.6 |
Securitization of Receivables_2
Securitization of Receivables (Details) - USD ($) $ in Millions | Feb. 25, 2024 | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Securitization of Receivables | ||||
Total receivables | $ 50,853.4 | $ 51,344.2 | $ 42,593.8 | |
Other assets | 387.6 | 367.5 | 298.4 | |
Securitization borrowings | 6,116.1 | 6,995.2 | 4,863.9 | |
Accrued interest on borrowings - securitization transactions | 10 | 12.6 | 5.9 | |
Total liabilities related to restricted securitized assets | 6,126.1 | 7,007.8 | 4,869.8 | |
Securitized | ||||
Securitization of Receivables | ||||
Other assets | 139.9 | 152 | 97.2 | |
Total Assets | 6,539.8 | 7,487.4 | 5,186.1 | |
Retail notes | Securitized | ||||
Securitization of Receivables | ||||
Total receivables | $ 6,417.7 | $ 7,356.8 | $ 5,101.4 | |
Location of liability for pledged asset | Securitization borrowings | Securitization borrowings | Securitization borrowings | |
Allowance for credit losses | $ (17.8) | $ (21.4) | $ (12.5) | |
Subsequent Event | Short-term Securitization Borrowings | ||||
Securitization of Receivables | ||||
Securitization borrowings | $ 529.3 |
Leases - Lease Revenues (Detail
Leases - Lease Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Lessor | ||
Sales-type and direct finance lease revenues | $ 27 | $ 18.8 |
Operating lease revenues | 234.2 | 218.9 |
Variable lease revenues | 4 | 5.6 |
Total lease revenues | 265.2 | 243.3 |
Excess use and damage fees | 0.4 | 0.8 |
Receivables - Other Disclosures | ||
Revenues | $ 1,160.5 | $ 836.5 |
Leases - Cost of Equipment on O
Leases - Cost of Equipment on Operating Leases (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Cost of Equipment on Operating Leases | |||
Equipment on operating leases - gross | $ 6,204 | $ 6,307.6 | $ 5,978.5 |
Accumulated depreciation | (1,270.6) | (1,256.1) | (1,285.1) |
Equipment on operating leases - net | 4,933.4 | 5,051.5 | 4,693.4 |
Operating lease residual value | 3,483.7 | 3,538.3 | 3,257.1 |
Operating lease residual value guarantees | 580.4 | 566.9 | 467.1 |
Matured operating lease inventory | 19.7 | 16.2 | 11.8 |
Agriculture and turf equipment | |||
Cost of Equipment on Operating Leases | |||
Equipment on operating leases - gross | 5,198.3 | 5,265.2 | 4,893.6 |
Construction and forestry | |||
Cost of Equipment on Operating Leases | |||
Equipment on operating leases - gross | $ 1,005.7 | $ 1,042.4 | $ 1,084.9 |
Notes Receivable from and Pay_3
Notes Receivable from and Payable to John Deere (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 28, 2024 | Jan. 29, 2023 | Oct. 29, 2023 | |
Notes Receivable from and Payable to John Deere | |||
Interest expense | $ 571.4 | $ 301 | |
Related Party | |||
Notes Receivable from and Payable to John Deere | |||
Interest earned | $ 11.5 | $ 6.9 | |
Interest Income, Operating, Related Party, Type [Extensible Enumeration] | John Deere | John Deere | |
Notes payable to John Deere | $ 3,512.5 | $ 4,416.2 | $ 3,184 |
Long-term intercompany loans | 542.3 | ||
Interest expense | $ 43.8 | $ 40 | |
Interest Expense, Related Party, Name [Extensible Enumeration] | John Deere | John Deere | |
Related Party | John Deere | |||
Notes Receivable from and Payable to John Deere | |||
Notes receivable from John Deere | $ 663.7 | $ 494.4 | $ 650.7 |
Maximum remaining term for related party notes receivable | 7 years |
Long-Term External Borrowings_2
Long-Term External Borrowings (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Long-Term Borrowings | |||
Total senior debt | $ 28,805.4 | $ 27,522.8 | $ 23,564.7 |
Unamortized debt discount and debt issuance costs | (85) | (83.5) | (71.3) |
Total | 28,720.4 | 27,439.3 | 23,493.4 |
Medium-term notes | |||
Long-Term Borrowings | |||
Total senior debt | 28,805.4 | 27,522.8 | 23,564.2 |
Medium-term notes Principal | $ 29,581.7 | $ 28,733.5 | 24,265.7 |
Other notes | |||
Long-Term Borrowings | |||
Total senior debt | $ 0.5 |
Commitments and Contingencies -
Commitments and Contingencies - Guarantees (Details) - John Deere Financial Inc. - Guarantees of debt and derivatives $ in Millions | 3 Months Ended |
Jan. 28, 2024 USD ($) | |
Medium-term notes. | |
Guarantee Obligations | |
Guarantee obligations maximum exposure | $ 3,228.2 |
Weighted average interest rate (as a percent) | 3.10% |
Maximum remaining maturity | 5 years |
Commercial paper | |
Guarantee Obligations | |
Guarantee obligations maximum exposure | $ 1,975.9 |
Derivative Instruments | |
Guarantee Obligations | |
Guarantee obligations maximum exposure | 4,606.7 |
Notional amount | $ 113.2 |
Commitments and Contingencies_2
Commitments and Contingencies - Commitments (Details) $ in Millions | Jan. 28, 2024 USD ($) |
Unfunded Commitments | |
Commitments | |
Reserve for credit losses on unfunded commitments | $ 2.6 |
Wholesale Receivables | |
Commitments | |
Unused commitments | 7,903.6 |
Customer Receivables | |
Commitments | |
Unused commitments | $ 33,653.8 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Fair Values of Financial Instruments | |||
Receivables financed - net | $ 50,713.8 | $ 51,197.8 | $ 42,472.1 |
Securitization borrowings | 6,116.1 | 6,995.2 | 4,863.9 |
Current maturities of long-term external borrowings | 5,705.1 | 6,059.9 | 6,080.1 |
Long-term external borrowings | 28,720.4 | 27,439.3 | 23,493.4 |
Level 3 | Unrestricted | |||
Fair Values of Financial Instruments | |||
Receivables financed - net | 43,978.1 | 43,168.7 | 36,668.3 |
Level 3 | Securitized | |||
Fair Values of Financial Instruments | |||
Receivables financed - net | $ 6,224.9 | $ 7,055.8 | $ 4,868.9 |
Location of liability for pledged asset | Securitization borrowings | Securitization borrowings | Securitization borrowings |
Level 2 | |||
Fair Values of Financial Instruments | |||
Securitization borrowings | $ 6,103.8 | $ 6,921.1 | $ 4,784.8 |
Current maturities of long-term external borrowings | 5,610.7 | 5,953 | 5,957.2 |
Long-term external borrowings | 28,775.5 | 27,057.7 | 23,126.2 |
Carrying Value | |||
Fair Values of Financial Instruments | |||
Securitization borrowings | 6,116.1 | 6,995.2 | 4,863.9 |
Current maturities of long-term external borrowings | 5,705.1 | 6,059.9 | 6,080.1 |
Long-term external borrowings | 28,720.4 | 27,439.3 | 23,493.4 |
Carrying Value | Unrestricted | |||
Fair Values of Financial Instruments | |||
Receivables financed - net | 44,313.9 | 43,862.4 | 37,383.2 |
Carrying Value | Securitized | |||
Fair Values of Financial Instruments | |||
Receivables financed - net | $ 6,399.9 | $ 7,335.4 | $ 5,088.9 |
Location of liability for pledged asset | Securitization borrowings | Securitization borrowings | Securitization borrowings |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities - Recurring (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | |||
Marketable securities | $ 2.3 | $ 1.4 | $ 1.8 |
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 | |||
Total assets | 171.1 | 157.1 | 174.2 |
Total liabilities | 601 | 975.4 | 693.3 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Marketable Securities | |||
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | |||
Marketable securities | $ 2.3 | $ 1.4 | $ 1.8 |
Investment, Type [Extensible Enumeration] | jdcc:ForeignDebtSecuritiesMember | jdcc:ForeignDebtSecuritiesMember | jdcc:ForeignDebtSecuritiesMember |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Receivables from John Deere | |||
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | |||
Derivative assets | $ 146.6 | $ 144.4 | $ 171.2 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Other Assets | |||
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | |||
Derivative assets | 22.2 | 11.3 | 1.2 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Other payables to John Deere | |||
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | |||
Derivative liabilities | 596.7 | 974.9 | 664.2 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Accounts payable and accrued expenses | |||
Assets and Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | |||
Derivative liabilities | $ 4.3 | $ 0.5 | $ 29.1 |
Fair Value Measurements - Contr
Fair Value Measurements - Contractual Maturities of Debt Securities (Details) $ in Millions | Jan. 28, 2024 USD ($) |
Contractual Maturities of Debt Securities, Amortized Cost | |
Amortized cost basis | $ 5.1 |
Contractual Maturities of Debt Securities, Fair Value | |
Fair value | $ 2.3 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Designated as Hedging Instruments | Cash flow hedges | Interest Rate Contracts (Swaps) | |||
Fair Values of Derivative Instruments | |||
Notional amounts | $ 2,200 | $ 1,500 | $ 1,950 |
Derivative assets | 27.4 | 44.7 | 69.2 |
Derivative liabilities | 4.4 | ||
Designated as Hedging Instruments | Fair Value Hedges | Interest Rate Contracts (Swaps) | |||
Fair Values of Derivative Instruments | |||
Notional amounts | 11,779.6 | 11,859.4 | 10,126.7 |
Derivative assets | 52.1 | 20.8 | |
Derivative liabilities | 547.3 | 915.7 | 629 |
Not Designated as Hedging Instruments | Interest Rate Contracts (Swaps) | |||
Fair Values of Derivative Instruments | |||
Notional amounts | 7,784.7 | 8,010.9 | 4,847.8 |
Derivative assets | 53.8 | 72.2 | 76.2 |
Derivative liabilities | 18.3 | 27.4 | 24 |
Not Designated as Hedging Instruments | Foreign currency exchange contracts | |||
Fair Values of Derivative Instruments | |||
Notional amounts | 1,814.8 | 1,546.5 | 1,297.8 |
Derivative assets | 22.2 | 11.3 | 1.2 |
Derivative liabilities | 4.3 | 0.5 | 29.1 |
Not Designated as Hedging Instruments | Cross-currency interest rate contracts | |||
Fair Values of Derivative Instruments | |||
Notional amounts | 188.6 | 175.8 | 119.3 |
Derivative assets | 3.2 | 0.3 | |
Derivative liabilities | 13.4 | 7.5 | 6.5 |
Not Designated as Hedging Instruments | Interest rate caps | Sold | |||
Fair Values of Derivative Instruments | |||
Notional amounts | 1,199.5 | 1,336 | 788.8 |
Derivative liabilities | 13.3 | 24.3 | 4.7 |
Not Designated as Hedging Instruments | Interest rate caps | Purchased | |||
Fair Values of Derivative Instruments | |||
Notional amounts | 1,199.5 | 1,336 | 788.8 |
Derivative assets | $ 13.3 | $ 24.3 | $ 4.7 |
Derivative Instruments - Cash F
Derivative Instruments - Cash Flow Hedges (Details) $ in Millions | 3 Months Ended |
Jan. 28, 2024 USD ($) | |
Cash Flow Hedges | |
Cash flow hedge gain (loss) recorded in OCI to be reclassified within twelve months | $ 26.2 |
Gains or losses reclassified from OCI to earnings | $ 0 |
Derivative Instruments - Fair_2
Derivative Instruments - Fair Value Hedges (Details) - Interest Rate Contracts (Swaps) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Active Hedging Relationships | |||
Carrying Amount of Hedged Item | $ 11,220.3 | $ 10,883.7 | $ 9,461.7 |
Hedged Liability, Statement of Financial Position [Extensible Enumeration] | Long-Term Debt and Finance Leases, Excluding Current Maturities | Long-Term Debt and Finance Leases, Excluding Current Maturities | Long-Term Debt and Finance Leases, Excluding Current Maturities |
Current Maturities of Long-term External Borrowings | |||
Discontinued Hedging Relationships | |||
Carrying Amount of Formerly Hedged Item | $ 1,959.5 | $ 1,814 | $ 1,914.8 |
Cumulative Fair Value Hedging Adjustment - Discontinued | 10.4 | 14.9 | 15.3 |
Long-term External Borrowings | |||
Active Hedging Relationships | |||
Cumulative Fair Value Hedging Adjustment | (506.6) | (922.6) | (618.6) |
Discontinued Hedging Relationships | |||
Carrying Amount of Formerly Hedged Item | 7,710.9 | 7,144.1 | 5,505.8 |
Cumulative Fair Value Hedging Adjustment - Discontinued | $ (269.7) | $ (288.1) | $ (82.9) |
Derivative Instruments - Gains
Derivative Instruments - Gains (Losses) on Statements of Consolidated Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||
Not designated as hedges, gains (losses) | $ (108.9) | $ (137) |
Related Party | John Deere | ||
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||
Gain (loss) on derivative transactions with affiliate party | $ 331.4 | $ 242.5 |
Location of gain (loss) on derivative transactions with affiliate party | Interest expense, Administrative and operating expenses | Interest expense, Administrative and operating expenses |
Interest Rate Contracts (Swaps) | ||
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||
Cash flow hedges, recognized in OCI | $ (7.8) | $ (1.9) |
Interest Rate Contracts (Swaps) | Interest expense | ||
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||
Fair value hedges, gains (losses) | 335.7 | 235.3 |
Cash flow hedges, reclassified from OCI | 11.9 | 16.3 |
Not designated as hedges, gains (losses) | (5.7) | (1.9) |
Foreign currency exchange contracts | Administrative and operating expenses | ||
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||
Not designated as hedges, gains (losses) | $ (103.2) | $ (135.1) |
Derivative Instruments - Counte
Derivative Instruments - Counterparty Risk and Collateral (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
External | |||
Derivative assets | |||
Gross Amounts Recognized | $ 22.2 | $ 11.3 | $ 1.2 |
Netting Arrangements | (3) | (0.1) | |
Net Amount | 19.2 | 11.2 | 1.2 |
Derivative liabilities | |||
Gross Amounts Recognized | 4.3 | 0.5 | 29.1 |
Netting Arrangements | (3) | (0.1) | |
Net Amount | 1.3 | 0.4 | 29.1 |
John Deere | Related Party | |||
Derivative assets | |||
Gross Amounts Recognized | 146.6 | 144.4 | 171.2 |
Netting Arrangements | (101.6) | (107) | (129.1) |
Net Amount | 45 | 37.4 | 42.1 |
Derivative liabilities | |||
Gross Amounts Recognized | 596.7 | 974.9 | 664.2 |
Netting Arrangements | (101.6) | (107) | (129.1) |
Net Amount | 495.1 | 867.9 | 535.1 |
Derivative Instruments | John Deere | Related Party | |||
Counterparty Risk and Collateral | |||
Increase in maximum loss if derivative counterparties fail to meet obligations - loss sharing agreement | $ 0 | $ 0 | $ 0 |
Immaterial Restatement of Pri_3
Immaterial Restatement of Prior Period Financial Statements - Consolidated Income and the Related Impacts to the Statements of Consolidated Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 30, 2023 | Jan. 28, 2024 | Jan. 29, 2023 | |
Revenues | |||
Finance income earned on retail notes | $ 452.3 | $ 330 | |
Lease revenues | 264.8 | 242.5 | |
Total revenues | 1,160.5 | 836.5 | |
Expenses | |||
Administrative and operating expenses | 132.2 | 136.7 | |
Total operating expenses | 377.5 | 362.3 | |
Total expenses | 948.9 | 663.3 | |
Income of Consolidated Group before Income Taxes | 211.6 | 173.2 | |
Provision for income taxes | 38.9 | 36.8 | |
Income of Consolidated Group | 172.7 | 136.4 | |
Net Income | 174 | 137.4 | |
Net Income Attributable to the Company | $ 174.5 | 137.6 | |
Previously Reported | |||
Revenues | |||
Finance income earned on retail notes | 315.9 | ||
Lease revenues | 240.7 | ||
Total revenues | 820.6 | ||
Expenses | |||
Administrative and operating expenses | 108.5 | ||
Total operating expenses | 334.1 | ||
Total expenses | 635.1 | ||
Income of Consolidated Group before Income Taxes | 185.5 | ||
Provision for income taxes | 39.6 | ||
Income of Consolidated Group | 145.9 | ||
Net Income | 146.9 | ||
Net Income Attributable to the Company | 147.1 | ||
Adjustment | |||
Immaterial Restatement of Prior Period Financial Statements | |||
Error Correction, Previously Immaterial [true false] | true | ||
Type of error correction | jdcc:CorrectionOfTimingOfExpenseAndClassificationForFinancingIncentivesProgramToDealersMember | ||
Revenues | |||
Finance income earned on retail notes | 14.1 | ||
Lease revenues | 1.8 | ||
Total revenues | 15.9 | ||
Expenses | |||
Administrative and operating expenses | 28.2 | ||
Total operating expenses | 28.2 | ||
Total expenses | 28.2 | ||
Income of Consolidated Group before Income Taxes | (12.3) | ||
Provision for income taxes | (2.8) | ||
Income of Consolidated Group | (9.5) | ||
Net Income | (9.5) | ||
Net Income Attributable to the Company | $ (9.5) |
Immaterial Restatement of Pri_4
Immaterial Restatement of Prior Period Financial Statements - Consolidated Balance Sheets and the Related Components of Stockholders' Equity (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 | Oct. 30, 2022 |
Receivables: | ||||
Total receivables | $ 50,853.4 | $ 51,344.2 | $ 42,593.8 | |
Total receivables - net | 50,713.8 | 51,197.8 | 42,472.1 | |
Deferred income taxes | 24.1 | 24.6 | 26.9 | |
Total assets | 58,584.3 | 59,115 | 49,347.2 | |
Liabilities and Stockholder's Equity | ||||
Deferred income taxes | 431.9 | 456.3 | 192.2 | |
Total liabilities | 52,710.9 | 53,212.4 | 44,472 | |
Stockholder's equity: | ||||
Retained earnings | 3,672.7 | 3,713.2 | 3,443.5 | |
Total Company stockholder's equity | 5,872.9 | 5,901.6 | 4,873.9 | |
Total stockholder's equity | 5,873.4 | 5,902.6 | 4,875.2 | $ 4,685.5 |
Total Liabilities and Stockholder's Equity | 58,584.3 | 59,115 | 49,347.2 | |
Retail notes | Unrestricted | ||||
Receivables: | ||||
Total receivables | 25,716.4 | 24,641.1 | 23,875.5 | |
Nonrelated Party | ||||
Liabilities and Stockholder's Equity | ||||
Accounts payable and accrued expenses | $ 1,082.5 | $ 1,128.3 | 996.4 | |
Previously Reported | ||||
Receivables: | ||||
Total receivables | 42,655.5 | |||
Total receivables - net | 42,533.8 | |||
Deferred income taxes | 24.4 | |||
Total assets | 49,406.4 | |||
Liabilities and Stockholder's Equity | ||||
Deferred income taxes | 225.5 | |||
Total liabilities | 44,402.3 | |||
Stockholder's equity: | ||||
Retained earnings | 3,572.4 | |||
Total Company stockholder's equity | 5,002.8 | |||
Total stockholder's equity | 5,004.1 | |||
Total Liabilities and Stockholder's Equity | 49,406.4 | |||
Previously Reported | Retail notes | Unrestricted | ||||
Receivables: | ||||
Total receivables | 23,937.2 | |||
Previously Reported | Nonrelated Party | ||||
Liabilities and Stockholder's Equity | ||||
Accounts payable and accrued expenses | 893.4 | |||
Adjustment | ||||
Receivables: | ||||
Total receivables | (61.7) | |||
Total receivables - net | (61.7) | |||
Deferred income taxes | 2.5 | |||
Total assets | (59.2) | |||
Liabilities and Stockholder's Equity | ||||
Deferred income taxes | (33.3) | |||
Total liabilities | 69.7 | |||
Stockholder's equity: | ||||
Retained earnings | (128.9) | |||
Total Company stockholder's equity | (128.9) | |||
Total stockholder's equity | (128.9) | |||
Total Liabilities and Stockholder's Equity | (59.2) | |||
Adjustment | Retail notes | Unrestricted | ||||
Receivables: | ||||
Total receivables | (61.7) | |||
Adjustment | Nonrelated Party | ||||
Liabilities and Stockholder's Equity | ||||
Accounts payable and accrued expenses | $ 103 |
Immaterial Restatement of Pri_5
Immaterial Restatement of Prior Period Financial Statements - Consolidated Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 174 | $ 137.4 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Credit for deferred income taxes | (20.1) | (14) |
Change in accounts payable and accrued expenses | (45.3) | 40.9 |
Other | 71.4 | (9.2) |
Net cash provided by operating activities | $ 409.6 | 338.7 |
Previously Reported | ||
Cash Flows from Operating Activities: | ||
Net Income | 146.9 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Credit for deferred income taxes | (11.3) | |
Change in accounts payable and accrued expenses | 29.1 | |
Other | (9.6) | |
Net cash provided by operating activities | 338.7 | |
Adjustment | ||
Cash Flows from Operating Activities: | ||
Net Income | (9.5) | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Credit for deferred income taxes | (2.7) | |
Change in accounts payable and accrued expenses | 11.8 | |
Other | $ 0.4 |
Subsequent Events - Securitizat
Subsequent Events - Securitization Borrowings (Details) - USD ($) $ in Millions | Feb. 25, 2024 | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Subsequent Events | ||||
Securitization borrowings | $ 6,116.1 | $ 6,995.2 | $ 4,863.9 | |
Subsequent Event | Short-term Securitization Borrowings | ||||
Subsequent Events | ||||
Securitization borrowings | $ 529.3 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 174.5 | $ 137.6 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jan. 28, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |