Accounting for Leases as a Lessor (Tables)

6 Months Ended

Apr. 30, 2026

Schedule of Components of Financing Receivables

The components of financing receivables were as follows:


	As of
	April 30, 2026		October 31, 2025
	In millions
Minimum lease payments receivable	$	9,897	$	10,310
Unguaranteed residual value	719		694
Unearned income	(1,191)		(1,264)
Financing receivables, gross	9,425		9,740
Allowance for credit losses	(210)		(198)
Financing receivables, net	9,215		9,542
Less: current portion	(3,694)		(3,826)
Amounts due after one year, net	$	5,521	$	5,716

Schedule of Credit Risk Profile of Gross Financing Receivables

The credit risk profile of gross financing receivables, based on internal risk ratings as of April 30, 2026, presented on amortized cost basis by year of origination was as follows:


	As of April 30, 2026
	Risk Rating
	Low		Moderate		High
Fiscal Year	In millions
2026	$	829	$	538	$	10
2025	2,183		1,046		28
2024	1,728		795		31
2023	853		475		43
2022 and prior	454		334		78
Total	$	6,047	$	3,188	$	190

The credit risk profile of gross financing receivables, based on internal risk ratings as of October 31, 2025, presented on amortized cost basis by year of origination was as follows:


	As of October 31, 2025
	Risk Rating
	Low		Moderate		High
Fiscal Year	In millions
2025	$	2,245	$	1,016	$	17
2024	2,160		942		36
2023	1,189		645		47
2022	579		347		26
2021 and prior	213		206		72
Total	$	6,386	$	3,156	$	198

Schedule of Allowance for Doubtful Accounts for Financing Receivables

The allowance for credit losses for financing receivables as of April 30, 2026 and October 31, 2025 and the respective changes for the six and twelve months then ended were as follows:


	As of
	April 30, 2026		October 31, 2025
	In millions
Balance at beginning of period	$	198	$	194

Provision for credit losses	14		77
Adjustment to the existing allowance	8		(1)
Deductions	(10)		(72)
Balance at end of period	$	210	$	198

Schedule of the Aging and Non-accrual Status of Gross Financing Receivables

The following table summarizes the aging and non-accrual status of gross financing receivables:


	As of
	April 30, 2026		October 31, 2025
	In millions
Billed:(1)
Current 1-30 days	$	368	$	349
Past due 31-60 days	17		26
Past due 61-90 days	19		13
Past due > 90 days	70		70
Unbilled sales-type and direct-financing lease receivables	8,951		9,282
Total gross financing receivables	$	9,425	$	9,740
Gross financing receivables on non-accrual status(2)	$	120	$	168
Gross financing receivables 90 days past due and still accruing interest(2)	$	90	$	114

(1)Includes billed operating lease receivables and billed sales-type and direct-financing lease receivables.

(2)Includes billed operating lease receivables and billed and unbilled sales-type and direct-financing lease receivables.

Schedule of Lessor Lease Activity

The following table presents amounts included in the Condensed Consolidated Statements of Earnings related to lessor activity:


		For the three months ended April 30,				For the six months ended April 30,
		2026		2025		2026		2025
	Location	In millions

Interest income from sales-type leases and direct financing leases	Financing Income	$	193	$	188	$	388	$	374
Lease income from operating leases	Services	500		539		1,008		1,086
Total lease income		$	693	$	727	$	1,396	$	1,460

Schedule of Variable Interest Entities

The assets in the table below include those that can be used to settle the obligations of the VIE. Additionally, general creditors of the Company do not have recourse to the assets of the VIE.


	As of
	April 30, 2026		October 31, 2025
Assets held by VIE:	In millions
Other current assets	$	52	$	73
Financing receivables
Short-term	678		885
Long-term	928		1,283
Property, plant and equipment, net	504		775
Liabilities held by VIE:
Notes payable and short-term borrowings, net of unamortized debt issuance costs	933		1,159
Long-term debt, net of unamortized debt issuance costs	$	861	$	1,287

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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