John Deere 2013 Annual Report Download - page 43

previous table. On a geographic basis, there is not a dispropor-
tionate concentration of credit risk in any area.
Financing Receivables
Financing receivables at October 31 consisted of the following
in millions of dollars:
2013 2012
________________ ________________
Unrestricted/Securitized Unrestricted/Securitized
Retail notes:
Equipment:
Agriculture and turf .......... $ 16,209 $ 3,602 $ 14,144 $ 3,126
Construction and
forestry ........................ 1,449 607 1,091 553
Total ................................ 17,658 4,209 15,235 3,679
Wholesale notes ....................... 4,802 3,888
Revolving charge accounts ........ 2,593 2,488
Financing leases
(direct and sales-type) .......... 1,513 1,411
Operating loans ........................ 32 42
Total financing receivables .... 26,598 4,209 23,064 3,679
Less:
Unearned finance income:
Equipment notes .............. 665 42 619 44
Financing leases .............. 141 126
Total ............................ 806 42 745 44
Allowance for credit losses ... 159 14 160 17
Financing
receivables – net............... $ 25,633 $ 4,153 $ 22,159 $ 3,618
The residual values for investments in financing leases at
October 31, 2013 and 2012 totaled $94 million and $79 million,
respectively.
Financing receivables have significant concentrations of
credit risk in the agriculture and turf sector and construction and
forestry sector as shown in the previous table. On a geographic
basis, there is not a disproportionate concentration of credit risk
in any area. The company retains as collateral a security interest
in the equipment associated with retail notes, wholesale notes
and financing leases.
Financing receivables at October 31 related to the
company’s sales of equipment that were included in the table
above consisted of the following in millions of dollars:
2013 2012
Unrestricted Unrestricted
Retail notes*:
Equipment:
Agriculture and turf ...................... $ 2,042 $ 1,810
Construction and forestry ............. 364 313
Total ........................................ 2,406 2,123
Wholesale notes ................................... 4,802 3,888
Sales-type leases ................................. 826 836
Total ............................................ $ 8,034 $ 6,847
* These retail notes generally arise from sales of equipment by company-owned
dealers or through direct sales.
(continued)
2013 2012
Unrestricted Unrestricted
Less:
Unearned finance income:
Equipment notes .......................... $ 191 $ 191
Sales-type leases ......................... 58 61
Total ........................................ 249 252
Financing receivables
related to the company’s
sales of equipment ....................... $ 7,785 $ 6,595
Financing receivable installments, including unearned
finance income, at October 31 are scheduled as follows in
millions of dollars:
2013 2012
________________ _________________
Unrestricted/Securitized Unrestricted/Securitized
Due in months:
0 – 12 ............................. $ 13,343 $ 1,663 $ 11,486 $ 1,437
13 – 24 ............................. 4,879 1,177 4,257 1,004
25 – 36 ............................. 3,750 808 3,232 712
37 – 48 ............................. 2,620 422 2,278 399
49 – 60 ............................. 1,610 130 1,356 120
Thereafter .......................... 396 9 455 7
Total ..................................... $ 26,598 $ 4,209 $ 23,064 $ 3,679
The maximum terms for retail notes are generally seven
years for agriculture and turf equipment and five years for
construction and forestry equipment. The maximum term for
financing leases is generally five years, while the average term
for wholesale notes is less than twelve months.
At October 31, 2013 and 2012, the unpaid balances of
receivables administered but not owned were $82 million
and $120 million, respectively. At October 31, 2013 and 2012,
worldwide financing receivables administered, which include
financing receivables administered but not owned, totaled
$29,868 million and $25,897 million, respectively.
Past due balances of financing receivables still accruing
finance income represent the total balance held (principal plus
accrued interest) with any payment amounts 30 days or more
past the contractual payment due date. Non-performing
financing receivables represent loans for which the company has
ceased accruing finance income. These receivables are generally
120 days delinquent and the estimated uncollectible amount,
after charging the dealer’s withholding account, has been
written off to the allowance for credit losses. Finance income
for non-performing receivables is recognized on a cash basis.
Accrual of finance income is resumed when the receivable
becomes contractually current and collections are reasonably
assured.
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