UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January ~~29,~~28, ~~2023~~2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission file no: 1-6458

JOHN DEERE CAPITAL CORPORATION

(Exact name of registrant as specified in its charter)



Delaware (State of Incorporation)		36-2386361 (IRS Employer Identification No.)

P.O. Box 5328 Madison, Wisconsin 53705-0328 (Address of principal executive offices)
Telephone Number: (800) 438-7394

Securities Registered Pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
2.00% Senior Notes Due 2031	JDCC 31	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

At February ~~23, 2023~~29, 2024, 2,500 shares of common stock, without par value, of the registrant were outstanding, all of which were owned by John Deere Financial Services, Inc., a wholly-owned subsidiary of Deere & Company.

The registrant meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with certain reduced disclosures as permitted by those instructions.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

John Deere Capital Corporation and Subsidiaries

Statements of Consolidated Income

(Unaudited)

(in millions)


	Three Months Ended				Three Months Ended
	January 29		January 30		January 28		January 29
	2023		2022		2024		2023
Revenues
Finance income earned on retail notes	$	315.9	$	240.0	$	452.3	$	330.0
Lease revenues		240.7		241.5		264.8		242.5
Revolving charge account income		82.9		66.5		105.2		82.9
Finance income earned on wholesale receivables		151.5		59.9		271.1		151.5
Other income		29.6		35.0		67.1		29.6
Total revenues		820.6		642.9		1,160.5		836.5
Expenses
Interest expense		301.0		99.5		571.4		301.0
Operating expenses:
Depreciation of equipment on operating leases		164.5		168.8		167.2		164.5
Administrative and operating expenses		108.5		96.4		132.2		136.7
Fees and interest paid to John Deere		57.6		39.7		57.1		57.6
Provision (credit) for credit losses		3.5		(1.2)
Provision for credit losses						21.0		3.5
Total operating expenses		334.1		303.7		377.5		362.3
Total expenses		635.1		403.2		948.9		663.3
Income of consolidated group before income taxes		185.5		239.7
Income of Consolidated Group before Income Taxes						211.6		173.2
Provision for income taxes		39.6		52.0		38.9		36.8
Income of consolidated group		145.9		187.7
Income of Consolidated Group						172.7		136.4
Equity in income of unconsolidated affiliate		1.0		1.9		1.3		1.0
Net income		146.9		189.6
Net Income						174.0		137.4
Less: Net loss attributable to noncontrolling interests		(.2)				(.5)		(.2)
Net income attributable to the Company	$	147.1	$	189.6
Net Income Attributable to the Company					$	174.5	$	137.6

See Condensed Notes to Interim Consolidated Financial Statements.

John Deere Capital Corporation and Subsidiaries

Statements of Consolidated Comprehensive Income

(Unaudited)

(in millions)


	Three Months Ended				Three Months Ended
	January 29		January 30		January 28		January 29
	2023		2022		2024		2023

Net income	$	146.9	$	189.6
Net Income					$	174.0	$	137.4

Other comprehensive income (loss), net of income taxes
Other Comprehensive Income (Loss), Net of Income Taxes
Cumulative translation adjustment		66.2		(36.4)		26.8		66.2
Unrealized gain (loss) on derivatives		(14.3)		13.0
Unrealized gain (loss) on debt securities		.4		(.2)
Other comprehensive income (loss), net of income taxes		52.3		(23.6)
Unrealized loss on derivatives						(15.6)		(14.3)
Unrealized gain on debt securities						.6		.4
Other Comprehensive Income (Loss), Net of Income Taxes						11.8		52.3

Comprehensive income of consolidated group		199.2		166.0
Comprehensive Income of Consolidated Group						185.8		189.7
Less: Comprehensive loss attributable to noncontrolling interests		(.2)				(.5)		(.2)
Comprehensive income attributable to the Company	$	199.4	$	166.0
Comprehensive Income Attributable to the Company					$	186.3	$	189.9

See Condensed Notes to Interim Consolidated Financial Statements.

John Deere Capital Corporation and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(in millions)


	January 29		October 30		January 30		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Assets
Cash and cash equivalents	$	1,055.0	$	661.8	$	664.5	$	1,520.1	$	1,487.5	$	1,055.0
Marketable securities		1.8		1.1		1.8		2.3		1.4		1.8
Receivables:
Retail notes		23,937.2		22,860.3		22,336.1		25,716.4		24,641.1		23,875.5
Retail notes securitized		5,101.4		5,951.6		3,517.9		6,417.7		7,356.8		5,101.4
Revolving charge accounts		2,834.0		4,165.8		2,684.8		2,925.5		4,594.4		2,834.0
Wholesale receivables		9,752.1		8,404.5		6,312.0		14,542.8		13,330.1		9,752.1
Financing leases		1,030.8		1,120.7		878.4		1,251.0		1,421.8		1,030.8
Total receivables		42,655.5		42,502.9		35,729.2		50,853.4		51,344.2		42,593.8
Allowance for credit losses		(121.7)		(128.4)		(121.4)		(139.6)		(146.4)		(121.7)
Total receivables – net		42,533.8		42,374.5		35,607.8		50,713.8		51,197.8		42,472.1
Other receivables		108.2		91.4		91.5		163.1		162.0		108.2
Receivables from John Deere		171.2		214.8		156.8		146.6		144.4		171.2
Equipment on operating leases – net		4,693.4		4,853.5		4,745.6		4,933.4		5,051.5		4,693.4
Notes receivable from John Deere		494.4		370.7		371.7		663.7		650.7		494.4
Investment in unconsolidated affiliate		25.8		22.6		22.7		29.6		27.6		25.8
Deferred income taxes		24.4		23.3		30.4		24.1		24.6		26.9
Other assets		298.4		314.3		334.4		387.6		367.5		298.4
Total Assets	$	49,406.4	$	48,928.0	$	42,027.2	$	58,584.3	$	59,115.0	$	49,347.2

Liabilities and Stockholder’s Equity
Short-term external borrowings:
Commercial paper and other notes payable	$	3,637.8	$	2,402.3	$	568.6	$	6,416.4	$	6,836.1	$	3,637.8
Securitization borrowings		4,863.9		5,710.9		3,473.8		6,116.1		6,995.2		4,863.9
Current maturities of long-term external borrowings		6,080.1		5,989.6		6,104.0		5,705.1		6,059.9		6,080.1
Total short-term external borrowings		14,581.8		14,102.8		10,146.4		18,237.6		19,891.2		14,581.8
Notes payable to John Deere		4,416.2		5,225.5		5,306.4		3,512.5		3,184.0		4,416.2
Other payables to John Deere		664.2		1,024.2		186.3		596.7		974.9		664.2
Accounts payable and accrued expenses		893.4		866.1		782.8		1,082.5		1,128.3		996.4
Deposits held from dealers and merchants		127.8		137.3		126.1		129.3		138.4		127.8
Deferred income taxes		225.5		239.4		260.5		431.9		456.3		192.2
Long-term external borrowings		23,493.4		22,527.8		20,566.5		28,720.4		27,439.3		23,493.4
Total liabilities		44,402.3		44,123.1		37,375.0		52,710.9		53,212.4		44,472.0
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.)		1,482.8		1,482.8		1,482.8		2,292.8		2,292.8		1,482.8
Retained earnings		3,572.4		3,425.3		3,240.6		3,672.7		3,713.2		3,443.5
Accumulated other comprehensive loss		(52.4)		(104.7)		(73.0)		(92.6)		(104.4)		(52.4)
Total Company stockholder’s equity		5,002.8		4,803.4		4,650.4		5,872.9		5,901.6		4,873.9
Noncontrolling interests		1.3		1.5		1.8		.5		1.0		1.3
Total stockholder’s equity		5,004.1		4,804.9		4,652.2		5,873.4		5,902.6		4,875.2
Total Liabilities and Stockholder’s Equity	$	49,406.4	$	48,928.0	$	42,027.2	$	58,584.3	$	59,115.0	$	49,347.2

See Condensed Notes to Interim Consolidated Financial Statements.

John Deere Capital Corporation and Subsidiaries

Statements of Consolidated Cash Flows

(Unaudited)

(in millions)


	Three Months Ended				Three Months Ended
	January 29		January 30		January 28		January 29
	2023		2022		2024		2023
Cash Flows from Operating Activities:
Net income	$	146.9	$	189.6	$	174.0	$	137.4
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision (credit) for credit losses		3.5		(1.2)
Provision for credit losses						21.0		3.5
Provision for depreciation and amortization		170.1		175.1		173.0		170.1
Credit for deferred income taxes		(11.3)		(5.8)		(20.1)		(14.0)
Change in accounts payable and accrued expenses		29.1		(72.6)		(45.3)		40.9
Change in accrued income taxes payable/receivable		10.0		11.7		35.6		10.0
Other		(9.6)		(28.1)		71.4		(9.2)
Net cash provided by operating activities		338.7		268.7		409.6		338.7

Cash Flows from Investing Activities:
Cost of receivables acquired (excluding wholesale)		(5,686.3)		(5,197.5)		(5,863.0)		(5,686.3)
Collections of receivables (excluding wholesale)		6,902.4		6,294.1		7,447.7		6,902.4
Increase in wholesale receivables – net		(1,148.5)		(457.9)		(1,100.8)		(1,148.5)
Cost of equipment on operating leases acquired		(375.3)		(317.4)		(361.4)		(375.3)
Proceeds from sales of equipment on operating leases		386.2		362.0		319.2		386.2
Cost of notes receivable acquired from John Deere		(120.8)		(107.1)		(8.3)		(120.8)
Collections of notes receivable from John Deere		2.2		106.3		4.4		2.2
Other		(12.9)		(6.5)		(8.4)		(12.9)
Net cash provided by (used for) investing activities		(53.0)		676.0		429.4		(53.0)

Cash Flows from Financing Activities:
Increase (decrease) in commercial paper and other notes payable – net		1,223.2		(110.3)
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		(849.3)		(1,122.6)		(881.5)		(849.3)
Decrease in short-term borrowings with John Deere – net		(964.7)		(181.0)
Proceeds from issuance of long-term external borrowings		2,298.9		1,799.3
Payments of long-term external borrowings		(1,618.5)		(1,302.4)
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				(40.0)		(215.0)
Debt issuance costs		(8.6)		(6.1)		(8.1)		(8.6)
Net cash provided by (used for) financing activities		81.0		(963.1)		(810.6)		81.0

Effect of exchange rate changes on cash, cash equivalents, and restricted cash		13.1		(5.2)
Net increase (decrease) in cash, cash equivalents, and restricted cash		379.8		(23.6)
Cash, cash equivalents, and restricted cash at beginning of period		766.1		772.8
Cash, cash equivalents, and restricted cash at end of period	$	1,145.9	$	749.2
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:
Components of Cash, Cash Equivalents, and Restricted Cash:
Cash and cash equivalents	$	1,055.0	$	664.5	$	1,520.1	$	1,055.0
Restricted cash*		90.9		84.7		122.7		90.9
Total cash, cash equivalents, and restricted cash	$	1,145.9	$	749.2
Total Cash, Cash Equivalents, and Restricted Cash					$	1,642.8	$	1,145.9

* Restricted cash is reported in other assets on the consolidated balance sheets and primarily relates to the securitization of receivables (see Note 5).

See Condensed Notes to Interim Consolidated Financial Statements.

John Deere Capital Corporation and Subsidiaries

Statements of Changes in Consolidated Stockholder’s Equity

For the Three Months Ended January ~~29, 2023~~28, 2024 and January ~~30, 2022~~29, 2023

(Unaudited)

(in millions)


			Company Stockholder										Company Stockholder
							Accumulated										Accumulated
	Total						Other		Non-		Total						Other
	Stockholder’s		Common		Retained		Comprehensive		Controlling		Stockholder’s		Common		Retained		Comprehensive		Noncontrolling
	Equity		Stock		Earnings		Income (Loss)		Interests		Equity		Stock		Earnings		Income (Loss)		Interests

Balance October 31, 2021	$	4,526.2	$	1,482.8	$	3,091.0	$	(49.4)	$	1.8
Net income		189.6				189.6
Other comprehensive loss		(23.6)						(23.6)
Dividends declared		(40.0)				(40.0)
Balance January 30, 2022	$	4,652.2	$	1,482.8	$	3,240.6	$	(73.0)	$	1.8

Balance October 30, 2022	$	4,804.9	$	1,482.8	$	3,425.3	$	(104.7)	$	1.5	$	4,685.5	$	1,482.8	$	3,305.9	$	(104.7)	$	1.5
Net income (loss)		146.9				147.1				(.2)		137.4				137.6				(.2)
Other comprehensive income		52.3						52.3				52.3						52.3
Balance January 29, 2023	$	5,004.1	$	1,482.8	$	3,572.4	$	(52.4)	$	1.3	$	4,875.2	$	1,482.8	$	3,443.5	$	(52.4)	$	1.3

Balance October 29, 2023											$	5,902.6	$	2,292.8	$	3,713.2	$	(104.4)	$	1.0
Net income (loss)												174.0				174.5				(.5)
Other comprehensive income												11.8						11.8
Dividends declared												(215.0)				(215.0)
Balance January 28, 2024											$	5,873.4	$	2,292.8	$	3,672.7	$	(92.6)	$	.5

See Condensed Notes to Interim Consolidated Financial Statements.

John Deere Capital Corporation and Subsidiaries

Condensed Notes to Interim Consolidated Financial Statements

(Unaudited)

(1) Organization and Consolidation

References to John Deere Capital Corporation (Capital Corporation) ~~and its subsidiaries are collectively called the Company.~~, “the Company,” “we,” “us,” or “our” include our consolidated subsidiaries. John Deere Financial Services, Inc. ~~(JDFS)~~, a wholly-owned finance holding subsidiary of Deere & Company, owns all of the outstanding common stock of Capital Corporation. ~~The Company provides~~We provide and ~~administers~~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. ~~The Company~~We generally ~~purchases~~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. ~~The Company~~We also ~~purchases~~purchase and ~~finances~~finance a limited amount of non-John Deere retail notes. In addition, ~~the Company finances~~we finance and ~~services~~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). ~~The Company~~We also ~~provides~~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, ~~the Company leases~~we lease John Deere equipment and a limited amount of non-John Deere equipment to retail customers (financing and operating leases). ~~The Company~~We also ~~offers~~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.” ~~The Company generally secures its~~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.

~~The Company uses~~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 ~~2023~~2024 and ~~2022~~2023 were January ~~29, 2023~~28, 2024 and January ~~30, 2022,~~29, 2023, respectively. Both periods contained 13 weeks. Unless otherwise stated, references to particular years, quarters, or months refer to ~~the Company’s~~our fiscal years generally ending in October and the associated periods in those fiscal years.

~~The Company is~~We are the primary beneficiary of and ~~consolidates~~consolidate certain variable interest entities ~~(VIEs)~~ 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.

(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

~~The Company has~~We have prepared ~~its~~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 ~~the Company’s~~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

~~The preparation of financial statements in conformity with~~Certain accounting ~~principles generally accepted in the U.S. requires~~policies require management to make estimates and assumptions ~~that affect~~in determining the ~~reported~~ amounts reflected in the financial statements and related disclosures. Actual results could differ from those estimates.

New Accounting Standards

~~The Company~~We closely ~~monitors~~monitor all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) and other authoritative guidance. ~~ASUs adopted in 2023 did not have a material impact on the Company’s financial statements.~~

Accounting Standards Adopted

In ~~March 2022,~~ the ~~FASB issued~~first quarter of 2024, we adopted ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage ~~Disclosures, which will be effective in the first quarter of fiscal year 2024.~~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. ~~ASU No. 2022-02 and other ASUs~~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~~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 ~~being evaluated and at this point are not~~ expected to have a material ~~impact~~effect on ~~the Company’s~~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

~~(3) Other Comprehensive Income Items~~

~~The after-tax components of accumulated other comprehensive income (loss) were as follows (in millions of dollars):~~

January 29

October 30

January 30

2023

2022

2022
Cumulative translation adjustment

$
(102.8)

$
(169.0)

$
(90.9)
Unrealized gain on derivatives

52.5

66.8

19.8
Unrealized loss on debt securities

(2.1)

(2.5)

(1.9)
Total accumulated other comprehensive income (loss)

$
(52.4)

$
(104.7)

$
(73.0)

~~Amounts~~(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 ~~and~~other comprehensive income (loss), as well as reclassifications out of other comprehensive income (loss)~~, and the income tax effects, were as follows (in millions of dollars):~~.


	Before		Tax		After		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
	Tax		(Expense)		Tax
Three Months Ended January 29, 2023	Amount		Credit		Amount
Cumulative translation adjustment	$	66.2			$	66.2	$	66.2			$	66.2
Unrealized gain (loss) on derivatives:
Unrealized hedging gain (loss)		(1.9)	$	.4		(1.5)		(1.9)	$	.4		(1.5)
Reclassification of realized (gain) loss to:
Interest rate contracts – Interest expense		(16.3)		3.5		(12.8)		(16.3)		3.5		(12.8)
Net unrealized gain (loss) on derivatives		(18.2)		3.9		(14.3)		(18.2)		3.9		(14.3)
Unrealized gain (loss) on debt securities:
Unrealized holding gain (loss)		.7		(.3)		.4		.7		(.3)		.4
Total other comprehensive income (loss)	$	48.7	$	3.6	$	52.3	$	48.7	$	3.6	$	52.3

Three Months Ended January 30, 2022
Cumulative translation adjustment	$	(36.4)			$	(36.4)
Unrealized gain (loss) on derivatives:
Unrealized hedging gain (loss)		15.4	$	(3.3)		12.1
Reclassification of realized (gain) loss to:
Interest rate contracts – Interest expense		1.1		(.2)		.9
Net unrealized gain (loss) on derivatives		16.5		(3.5)		13.0
Unrealized gain (loss) on debt securities:
Unrealized holding gain (loss)		(.3)		.1		(.2)
Total other comprehensive income (loss)	$	(20.2)	$	(3.4)	$	(23.6)

(4) Receivables

Credit Quality

~~The Company monitors~~We monitor the credit quality of Receivables based on delinquency status. Past due balances of Receivables still accruing finance income represent the total balance held (principal plus accrued interest) with any payment amounts 30 days or more past the contractual payment due date. Non-performing Receivables represent receivables for which the Company has ceased accruing finance income. Generally, when Customer Receivables are 90 days delinquent, accrual of finance income and lease revenue is suspended, and accrued finance income and lease revenue previously recognized is reversed. Generally, when a wholesale receivable becomes 60 days delinquent, the Company determines whether the accrual of finance income on interest-bearing wholesale receivables should be suspended and whether accrued finance income previously recognized should be reversed. During the first three months of 2023 and 2022, $2.8 million and $3.8 million, respectively, of accrued finance income and lease revenue was reversed on non-performing Receivables. Finance income and lease revenue for non-performing Receivables is 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. During the first quarter of both 2023 and 2022, $3.1 million of finance income and lease revenue was recognized from cash payments on non-performing Receivables.status, defined as follows:

Receivable balances are written off to the allowance for credit losses when, in the judgment of management, they are considered uncollectible. Generally, when retail notes and financing lease accounts are 120 days delinquent, the collateral is repossessed or the account is designated for litigation, and the estimated uncollectible amount from the customer is written off to the allowance for credit losses. Revolving charge accounts are generally deemed to be uncollectible and written off to the allowance for credit losses when delinquency reaches 120 days. Generally, when a wholesale account becomes 60 days delinquent, the Company determines whether the collateral should be repossessed or the account designated for litigation, and the estimated uncollectible amount is written off to the allowance for credit losses.

●

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 (in millions of dollars):~~follows:


	January 29, 2023																January 28, 2024
	2023		2022		2021		2020		2019		Prior Years		Revolving Charge Accounts		Total		2024		2023		2022		2021		2020		Prior Years		Revolving Charge Accounts		Total
Customer Receivables:
Agriculture and turf
Current	$	2,458.1	$	10,776.6	$	6,318.7	$	3,112.2	$	1,292.6	$	566.4	$	2,686.3	$	27,210.9	$	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		1.7		29.4		29.2		48.2		10.4		42.8		27.2		188.9		4.5		105.0		58.5		40.8		18.8		10.0		69.7		307.3
60-89 days past due		1.3		12.2		10.5		18.0		3.7		14.1		5.9		65.7		.5		45.9		19.3		12.7		6.1		4.3		15.8		104.6
90+ days past due				1.2		.2		2.9		1.0		.2				5.5				1.1		.5		3.0		4.4		.3				9.3
Non-performing		.3		35.1		43.3		29.1		15.0		19.6		7.8		150.2		.3		39.1		78.6		48.7		26.9		24.8		10.4		228.8
Construction and forestry
Current		553.7		2,156.3		1,339.0		538.4		177.7		68.5		99.0		4,932.6		677.8		2,156.0		1,400.8		716.3		216.8		94.0		101.2		5,362.9
30-59 days past due		1.5		9.9		23.6		34.3		15.7		52.1		4.6		141.7		7.2		64.9		35.5		24.1		7.8		3.3		5.3		148.1
60-89 days past due		.4		4.3		15.7		17.7		6.4		23.0		2.0		69.5		.4		24.2		19.2		11.7		5.7		2.8		2.2		66.2
90+ days past due				.1		.2		.4		.2						.9						.2						.2				.4
Non-performing				38.9		51.8		26.1		13.0		6.5		1.2		137.5				55.3		74.8		44.6		17.9		7.5		1.6		201.7
Total Customer Receivables	$	3,017.0	$	13,064.0	$	7,832.2	$	3,827.3	$	1,535.7	$	793.2	$	2,834.0	$	32,903.4
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 30, 2022

2022

2021

2020

2019

2018

Prior Years

Revolving Charge Accounts

Total
Customer Receivables:

Agriculture and turf

Current

$
11,764.5

$
6,958.0

$
3,488.7

$
1,519.7

$
582.8

$
153.2

$
4,022.7

$
28,489.6
30-59 days past due

40.1

55.8

31.4

15.0

6.4

2.7

18.4

169.8
60-89 days past due

11.8

19.5

10.8

4.4

2.0

1.1

4.5

54.1
90+ days past due

.4

.2

.2

.8
Non-performing

24.7

38.4

29.2

13.7

11.2

10.2

7.8

135.2
Construction and forestry

Current

2,373.7

1,526.3

658.1

230.7

57.2

10.5

107.7

4,964.2
30-59 days past due

44.5

40.6

20.7

7.6

1.8

.6

3.1

118.9
60-89 days past due

18.1

11.4

6.0

3.0

.7

.1

1.0

40.3
90+ days past due

.3

1.3

1.4

3.0
Non-performing

19.3

51.2

27.6

15.4

5.5

2.9

.6

122.5
Total Customer Receivables

$
14,297.4

$
8,702.7

$
4,272.7

$
1,810.9

$
667.6

$
181.3

$
4,165.8

$
34,098.4


	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 30, 2022																January 29, 2023
	2022		2021		2020		2019		2018		Prior Years		Revolving Charge Accounts		Total		2023		2022		2021		2020		2019		Prior Years		Revolving Charge Accounts		Total
Customer Receivables:
Agriculture and turf
Current	$	2,181.1	$	10,156.1	$	5,099.4	$	2,469.2	$	1,175.8	$	539.0	$	2,565.0	$	24,185.6	$	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		4.4		67.7		39.7		23.8		12.6		5.7		23.5		177.4		1.7		29.4		29.2		48.2		10.4		42.8		27.2		188.9
60-89 days past due		.2		17.5		13.3		7.6		4.2		2.2		4.7		49.7		1.3		12.2		10.5		18.0		3.7		14.1		5.9		65.7
90+ days past due				1.5				.1		.1		.1				1.8				1.2		.2		2.9		1.0		.2				5.5
Non-performing		.4		27.9		45.0		26.0		22.1		20.0		5.9		147.3		.3		35.1		43.3		29.1		15.0		19.6		7.8		150.2
Construction and forestry
Current		625.7		2,131.1		1,050.4		471.3		159.0		39.5		80.8		4,557.8		553.7		2,156.3		1,339.0		538.4		177.7		68.5		99.0		4,932.6
30-59 days past due		7.4		58.5		32.1		18.0		5.5		1.6		2.6		125.7		1.5		9.9		23.6		34.3		15.7		52.1		4.6		141.7
60-89 days past due				20.5		15.1		6.5		1.9		.7		1.1		45.8		.4		4.3		15.7		17.7		6.4		23.0		2.0		69.5
90+ days past due				1.0		1.8		2.0								4.8				.1		.2		.4		.2						.9
Non-performing		.4		26.4		44.7		30.2		12.1		6.3		1.2		121.3				38.9		51.8		26.1		13.0		6.5		1.2		137.5
Total Customer Receivables	$	2,819.6	$	12,508.2	$	6,341.5	$	3,054.7	$	1,393.3	$	615.1	$	2,684.8	$	29,417.2
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 (in millions of dollars):~~follows:


	January 29, 2023																January 28, 2024
	2023		2022		2021		2020		2019		Prior Years		Revolving		Total		2024		2023		2022		2021		2020		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	$	199.8	$	450.3	$	67.6	$	4.8	$	2.6	$	1.3	$	10,198.5	$	10,924.9
30+ days past due				.3										9.2		9.5				.6										61.3		61.9
Non-performing														5.9		5.9														5.8		5.8
Construction and forestry
Current		5.8		3.8		23.7		1.0		.3		.1		1,875.8		1,910.5		5.6		10.7		2.2		19.3		.1		.1		3,495.5		3,533.5
30+ days past due														7.7		7.7														16.7		16.7
Non-performing
Total wholesale receivables	$	120.4	$	287.3	$	69.4	$	21.2	$	4.0	$	1.3	$	9,248.5	$	9,752.1
Total																	$	205.4	$	461.6	$	69.8	$	24.1	$	2.7	$	1.4	$	13,777.8	$	14,542.8

October 30, 2022

2022

2021

2020

2019

2018

Prior Years

Revolving

Total
Wholesale receivables:
















Agriculture and turf

Current

$
381.3

$
62.7

$
25.0

$
3.8

$
.3

$
1.1

$
6,238.1

$
6,712.3
30+ days past due

.1

8.3

8.4
Non-performing

5.5

5.5
Construction and forestry

Current

4.8

28.2

1.4

.4

.1

1,633.8

1,668.7
30+ days past due

9.6

9.6
Non-performing

Total wholesale receivables

$
386.1

$
91.0

$
26.4

$
4.2

$
.4

$
1.1

$
7,895.3

$
8,404.5


	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 30, 2022																January 29, 2023
	2022		2021		2020		2019		2018		Prior Years		Revolving		Total		2023		2022		2021		2020		2019		Prior Years		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current	$	101.1	$	237.1	$	54.2	$	11.3	$	6.5	$	2.1	$	4,510.5	$	4,922.8	$	114.6	$	283.2	$	45.7	$	20.2	$	3.7	$	1.2	$	7,349.9	$	7,818.5
30+ days past due														12.6		12.6				.3										9.2		9.5
Non-performing														6.3		6.3														5.9		5.9
Construction and forestry
Current		3.5		35.7		2.3		2.7		.2				1,324.9		1,369.3		5.8		3.8		23.7		1.0		.3		.1		1,875.8		1,910.5
30+ days past due														1.0		1.0														7.7		7.7
Non-performing
Total wholesale receivables	$	104.6	$	272.8	$	56.5	$	14.0	$	6.7	$	2.1	$	5,855.3	$	6,312.0
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 ~~the Company’s~~our Receivable portfolio. The Company measures expected credit losses on a collective basis when similar risk characteristics exist. Risk characteristics considered by the Company include product category, market, geography, credit risk, and remaining duration. Receivables that do not share risk characteristics with other receivables in the portfolio are evaluated on an individual basis. 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 on the statements of consolidated income~~“Other income” when the dealer’s ~~withholding~~deposit account is charged. During the three months ended January ~~29, 2023~~28, 2024 and January ~~30, 2022,~~29, 2023, recoveries from freestanding credit enhancements recorded in other income were ~~$2.0 million~~$7.3 and ~~$1.1 million,~~$2.0, respectively.

An analysis of the allowance for credit losses and investment in Receivables ~~during 2023~~ was as ~~follows (in millions of dollars):~~follows:

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

$
30,069.4

$
2,834.0

$
9,752.1

$
42,655.5


	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

*Excludes provision for credit losses on unfunded commitments of $.9 million. The estimated credit losses related to unfunded commitments are recorded in accounts payable and accrued expenses on the consolidated balance sheets.

The allowance for credit losses decreased $6.7 million in the first three months of 2023, primarily driven by a lower allowance on revolving charge accounts, which continue to benefit from strong fundamentals within the

	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

~~agricultural market.~~

* 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 ~~on retail notes and financing leases was relatively flat during~~decreased slightly in the first ~~quarter~~three months of ~~2023, as~~2024, primarily due to a seasonal decline in the ~~impacts of favorable agricultural conditions were offset by higher expected losses on turf customer accounts. The Company continues~~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.

~~An analysis~~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, $.1 was 30-59 days past due, and ~~investment~~$.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 ~~Receivables~~the prior twelve months were not significant during ~~2022 was as follows (in millions of dollars):~~

Three Months Ended

January 30, 2022

Retail Notes

Revolving

& Financing

Charge

Wholesale

Total

Leases

Accounts

Receivables

Receivables

Allowance:

Beginning of period balance

$
96.5

$
20.8

$
11.7

$
129.0

Provision (credit) for credit losses*

7.9

(9.4)

.1

(1.4)

Write-offs

(12.5)

(4.0)

(16.5)

Recoveries

2.9

7.8

10.7

Translation adjustments

(.1)

(.3)

(.4)

End of period balance

$
94.7

$
15.2

$
11.5

$
121.4

Receivables:

End of period balance

$
26,732.4

$
2,684.8

$
6,312.0

$
35,729.2

*~~Excludes provision for credit losses on unfunded~~the three months ended January 28, 2024. In addition, at January 28, 2024, we had no commitments ~~of $.2 million. The estimated credit losses related~~ to ~~unfunded commitments are recorded in accounts payable and accrued expenses on the consolidated balance sheets.~~provide additional financing to these customers.

Troubled Debt Restructuring

APrior to adopting ASU 2022-02, modifications of loans to borrowers experiencing financial difficulty were considered troubled debt ~~restructuring is a significant~~restructurings when the modification ~~of debt~~resulted in ~~which a creditor grants~~ a concession itwe would not otherwise ~~consider to a debtor that is experiencing financial difficulties. These modifications may include a reduction of~~consider. During the ~~stated interest rate, an extension of the maturity date, a reduction of the face amount or maturity amount of the debt, or a reduction of accrued interest. The following table includes~~three months ended January 29, 2023, we identified 36 Receivable contracts, ~~identified~~primarily retail notes, as troubled debt restructurings ~~which were primarily retail notes (in millions~~with aggregate balances of ~~dollars):~~

Three Months Ended

January 29

January 30

2023

2022

Number of receivable contracts

36

87

Pre-modification balance

$
1.0

$
3.1

Post-modification balance

1.0

2.2

$1.0 pre-modification and $1.0 post-modification. During ~~the~~this same ~~periods as the table above,~~period, there were no significant troubled debt restructurings that subsequently defaulted and were written off. ~~At January 29, 2023, the Company had no commitments to provide additional financing to customers whose accounts were modified in troubled debt restructurings.~~

~~(5) Securitization of Receivables~~

As a part of its overall funding strategy, the Company periodically transfers certain Receivables (retail notes) into VIEs that are SPEs, or non-VIE banking operations, as part of its asset-backed securities programs (securitizations). The structure of these transactions is such that the transfer of the retail notes does not meet the accounting criteria for sales of receivables, and is, therefore, accounted for as a secured borrowing. SPEs utilized in securitizations of retail notes differ from other entities included in the Company’s consolidated statements

~~because~~(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 ~~assets they hold~~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. Use~~isolated from the claims of our general creditors. This ensures cash receipts from the ~~assets held by~~retail notes are accessible to pay back securitization program investors. The structure of these transactions does not meet the ~~SPEs or the non-VIEs is restricted by terms~~accounting criteria for a sale of ~~the documents governing the securitization transactions.~~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 ~~consolidated restricted assets, secured borrowings, and other liabilities related to secured borrowings in~~the securitization ~~transactions~~programs were as ~~follows (in millions of dollars):~~follows:


	January 29			October 30		January 30		January 28		October 29		January 29
	2023			2022		2022		2024		2023		2023
Retail notes securitized	$	5,101.4		$	5,951.6	$	3,517.9	$	6,417.7	$	7,356.8	$	5,101.4
Allowance for credit losses		(12.5)	��		(15.7)		(10.1)		(17.8)		(21.4)		(12.5)
Other assets (primarily restricted cash)		97.2			155.2		100.3		139.9		152.0		97.2
Total restricted securitized assets	$	5,186.1		$	6,091.1	$	3,608.1	$	6,539.8	$	7,487.4	$	5,186.1

Securitization borrowings	$	4,863.9		$	5,710.9	$	3,473.8	$	6,116.1	$	6,995.2	$	4,863.9
Accrued interest on borrowings		5.9			6.1		1.2		10.0		12.6		5.9
Total liabilities related to restricted securitized assets	$	4,869.8		$	5,717.0	$	3,475.0	$	6,126.1	$	7,007.8	$	4,869.8

(6) Leases

~~The Company 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 on the consolidated balance sheets. Operating~~“Financing leases” and operating leases are reported in ~~equipment~~“Equipment on operating leases – ~~net on the consolidated balance sheets.~~net.”

Lease revenues earned by ~~the Company~~us were as ~~follows (in millions of dollars):~~follows:


	Three Months Ended				Three Months Ended
	January 29		January 30		January 28		January 29
	2023		2022		2024		2023
Sales-type and direct financing lease revenues	$	18.8	$	13.0	$	27.0	$	18.8
Operating lease revenues		217.1		223.1		234.2		218.9
Variable lease revenues		5.6		6.2		4.0		5.6
Total lease revenues	$	241.5	$	242.3	$	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 on the statements of consolidated income~~“Other income” and were $.4 and $.8 ~~million in~~for the first quarter of ~~both~~2024 and 2023, ~~and 2022.~~respectively.

The cost of equipment on operating leases by market was as ~~follows (in millions of dollars):~~follows:


	January 29		October 30		January 30		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Agriculture and turf	$	4,893.6	$	5,017.3	$	4,903.2	$	5,198.3	$	5,265.2	$	4,893.6
Construction and forestry		1,084.9		1,138.0		1,244.3		1,005.7		1,042.4		1,084.9
Total		5,978.5		6,155.3		6,147.5		6,204.0		6,307.6		5,978.5
Accumulated depreciation		(1,285.1)		(1,301.8)		(1,401.9)		(1,270.6)		(1,256.1)		(1,285.1)
Equipment on operating leases - net	$	4,693.4	$	4,853.5	$	4,745.6
Equipment on operating leases – net							$	4,933.4	$	5,051.5	$	4,693.4

Total operating lease residual values at January 29, 2023, October 30, 2022, and January 30, 2022 were $3,257.1 million, $3,366.7 million, and $3,409.5 million, respectively. Certain operating leases are subject to residual value guarantees. The total residual value guarantees were $467.1 million, $440.7 million, and $319.9 million at January 29, 2023, October 30, 2022, and January 30, 2022, respectively. The increase in residual value guarantees is primarily due to guarantees provided by John Deere dealers, which generally provide a first-loss residual value guarantee on operating lease originations effective after January 2020.

~~The Company discusses~~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. ~~Equipment~~We remarket equipment returned to ~~the Company~~us upon termination of ~~leases is remarketed by the Company.~~leases. The matured operating lease inventory balances at January 28, 2024, October 29, 2023, ~~October 30, 2022,~~ and January ~~30, 2022~~29, 2023 were ~~$11.8 million, $10.8 million,~~$19.7, $16.2, and ~~$18.8 million,~~$11.8, respectively. Matured operating lease inventory is reported in ~~other assets on the consolidated balance sheets.~~“Other assets.”

(7) Notes Receivable from and Payable to John Deere

~~The Company provides~~We provide loans to ~~and holds other receivables~~Banco John Deere S.A.(BJD), a John Deere finance subsidiary in Brazil, which are reported in “Notes receivable from ~~affiliated companies.~~ 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~~“Other income” and was ~~$6.9 million~~$11.5 for the first three months of ~~2023,~~2024, compared with ~~$5.4 million~~$6.9 for the same period last year.

~~The Company had notes receivable from John Deere with the following affiliated companies as follows (in millions of dollars):~~

January 29

October 30

January 30

2023

2022

2022

Limited Liability Company John Deere Financial

$
196.9

Banco John Deere S.A.

$
494.4

$
370.0

174.8

John Deere Agricultural Holdings, Inc.

.7

Total Notes Receivable from John Deere

$
494.4

$
370.7

$
371.7

~~The Company~~We also ~~obtains~~obtain funding from affiliated ~~companies. At January 29, 2023, October 30, 2022, and January 30, 2022, the Company had~~companies which resulted in notes payable to John Deere ~~of $4,416.2 million, $5,225.5 million and $5,306.4 million, respectively.~~ 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 ~~29, 2023, $544.6 million~~28, 2024, $542.3 of the intercompany borrowings were long-term loans without a due on demand call option, which mature in ~~2024. The Company pays~~2025. We pay interest to John Deere for these borrowings based on competitive market rates. Interest expense paid to John Deere ~~which is recorded in fees~~was $43.8 and ~~interest paid to John Deere, was~~ $40.0 ~~million and $16.4 million~~ for the three months ended January 28, 2024 and January 29, 2023 respectively, which is recorded in “Fees and ~~January 30, 2022 respectively.~~interest paid to John Deere.”

(8) Long-Term External Borrowings

Long-term external borrowings ~~of the Company at January 29, 2023, October 30, 2022, and January 30, 2022~~ consisted of the ~~following (in millions of dollars):~~following:


	January 29		October 30		January 30		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Senior Debt:
Medium-term notes	$	23,564.2	$	22,595.4	$	20,614.7	$	28,805.4	$	27,522.8	$	23,564.2
Other notes		.5		2.5		8.4						.5
Total senior debt		23,564.7		22,597.9		20,623.1		28,805.4		27,522.8		23,564.7
Unamortized debt discount and debt issuance costs		(71.3)		(70.1)		(56.6)		(85.0)		(83.5)		(71.3)
Total	$	23,493.4	$	22,527.8	$	20,566.5	$	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 ~~million, $23,564.6 million,~~at January 28, 2024, October 29, 2023, and ~~$20,541.0 million at~~ January 29, 2023, ~~October 30, 2022, and January 30, 2022,~~ respectively, and have ~~serial~~ maturity dates through ~~2032.~~2033. All outstanding medium-term notes and other notes in the table above are senior unsecured borrowings and generally rank equally with each other.

(9) Commitments and Contingencies

~~At January 29, 2023,~~We provide guarantees related to certain financial instruments issued by John Deere Financial Inc., ~~the~~a John Deere finance subsidiary in ~~Canada, had $2,101.8 million of medium-term notes outstanding, and a fair value liability of $118.7 million for derivatives outstanding, prior to considering applicable netting provisions, with~~Canada. At January 28, 2024, the following notional amounts ~~of $2,702.3 million that~~ were guaranteed by ~~Capital Corporation.~~ 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 ~~29, 2023~~28, 2024 was ~~2.0~~3.1 percent with a maximum remaining maturity of ~~six~~five years.

Capital Corporation has a variable interest in John Deere Canada Funding Inc. (JDCFI), a wholly-owned subsidiary of John Deere Financial Inc., which was created as a VIE to issue debt in public markets to fund the operations of affiliated companies in Canada. Capital Corporation has a variable interest in JDCFI because it provides guarantees for all debt issued by JDCFI, however it does not consolidate JDCFI because it does notWe have the power to direct the activities that most significantly impact JDCFI’s economic performance. Capital Corporation has no carrying value of assets or liabilities related to JDCFI. Its maximum exposure to loss is the amount of the debt issued by JDCFI and guaranteed by Capital Corporation, which was $150.1 million at January 29, 2023. The interest rate on the debt at January 29, 2023 was 3.0 percent with a remaining maturity less than one year. No additional support beyond what was previously contractually required has been provided to JDCFI during the reporting periods.

~~The Company has~~ commitments to extend credit to customers and John Deere dealers through lines of credit and other pre-approved credit arrangements. ~~The Company applies~~We apply the same credit policies and approval process for these commitments to extend credit as ~~it does~~we do for ~~its Receivables.~~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. ~~At January 29, 2023, the amount of unused commitments to extend credit to customers and John Deere dealers was $33.3 billion and $7.7 billion, respectively.~~ A significant portion of these commitments is not expected to be fully drawn upon; therefore, the total commitment amounts likely do not represent a future cash requirement. The ~~Company generally has the right to unconditionally cancel, alter, or amend the terms of these~~unused commitments at ~~any time. Over 95 percent of the unused commitments to extend credit to customers relate to revolving charge accounts. The Company has~~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 ~~$2.9 million~~$2.6 on unfunded commitments that are not unconditionally cancellable at January ~~29, 2023,~~28, 2024, which is recorded in ~~accounts~~“Accounts payable and accrued ~~expenses on the consolidated balance sheets.~~expenses.”

At January ~~29, 2023, the Company~~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 ~~29, 2023.~~28, 2024.

~~The Company is~~We are subject to various unresolved legal actions which arise in the normal course of ~~its~~our business, the most prevalent of which relate to retail credit matters. ~~The Company believes~~We believe the reasonably possible range of losses for these unresolved legal actions would not have a material effect on ~~its~~our consolidated financial statements.

(10) Fair Value Measurements

The fair values of financial instruments that do not approximate the carrying values were as ~~follows (in millions of dollars):~~follows:


	January 29, 2023				October 30, 2022				January 30, 2022				January 28, 2024				October 29, 2023				January 29, 2023
	Carrying		Fair		Carrying		Fair		Carrying		Fair		Carrying		Fair		Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value		Value		Value		Value		Value		Value		Value		Value		Value
Receivables financed – net	$	37,444.9	$	36,668.3	$	36,438.6	$	35,562.4	$	32,100.0	$	32,055.4	$	44,313.9	$	43,978.1	$	43,862.4	$	43,168.7	$	37,383.2	$	36,668.3
Retail notes securitized – net		5,088.9		4,868.9		5,935.9		5,696.3		3,507.8		3,521.4		6,399.9		6,224.9		7,335.4		7,055.8		5,088.9		4,868.9
Securitization borrowings		4,863.9		4,784.8		5,710.9		5,576.6		3,473.8		3,459.3		6,116.1		6,103.8		6,995.2		6,921.1		4,863.9		4,784.8
Current maturities of long- term external borrowings		6,080.1		5,957.2		5,989.6		5,887.7		6,104.0		6,110.6
Current maturities of long-term external borrowings														5,705.1		5,610.7		6,059.9		5,953.0		6,080.1		5,957.2
Long-term external borrowings		23,493.4		23,126.2		22,527.8		21,792.7		20,566.5		20,629.5		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 ~~the Company~~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 (in millions of dollars):~~follows:


	January 29		October 30		January 30		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Marketable securities
International debt securities	$	1.8	$	1.1	$	1.8	$	2.3	$	1.4	$	1.8
Receivables from John Deere
Derivatives		171.2		214.8		156.8		146.6		144.4		171.2
Other assets
Derivatives		1.2		1.3		27.3		22.2		11.3		1.2
Total assets	$	174.2	$	217.2	$	185.9	$	171.1	$	157.1	$	174.2

Other payables to John Deere
Derivatives	$	664.2	$	1,024.2	$	186.3	$	596.7	$	974.9	$	664.2
Accounts payable and accrued expenses
Derivatives		29.1		14.1		1.4		4.3		.5		29.1
Total liabilities	$	693.3	$	1,038.3	$	187.7	$	601.0	$	975.4	$	693.3

All fair value measurements in the table above were Level 2. Excluded from the table above were ~~the Company’s~~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 ~~eight~~seven years. At January ~~29, 2023,~~28, 2024, the amortized cost basis and fair value of these available-for-sale debt securities were ~~$5.0 million~~$5.1 and ~~$1.8 million,~~$2.3, respectively. Unrealized losses at January ~~29, 2023~~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, ~~October 30, 2022,~~ and January ~~30, 2022.~~29, 2023.

The following is a description of the valuation methodologies ~~the Company uses~~we use to measure certain balance sheet items at fair value:

Marketable securities – The international debt securities are valued using quoted prices for identical assets in inactive markets.

Derivatives – ~~The Company’s~~Our derivative financial instruments consist of interest rate contracts (swaps and caps), foreign currency exchange contracts ~~(futures, forwards,~~(forwards and swaps), and cross-currency interest rate contracts (swaps). The portfolio is valued based on an income approach (discounted cash flow) using market observable inputs, including swap curves and both forward and spot exchange rates for currencies.

Receivables – Specific reserve impairments are based on the fair value of the collateral, which is measured using a market approach (appraisal values or realizable values).

(11) Derivative Instruments

~~The Company’s policy is to execute~~Our outstanding derivative transactions ~~to manage exposures arising~~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 ~~normal course of business and not for the purpose of creating speculative positions or trading. The Company manages the relationship~~terms of the ~~types~~transaction between John Deere and ~~amounts~~us are identical to the terms of the transaction between John Deere and its ~~funding sources to its Receivable~~unrelated external counterparty. Derivative asset and Lease portfolios in an effort to diminish risk due to interest rate and foreign currency fluctuations, while responding to favorable financing opportunities. The Company also has foreign currency exposures at some of its foreign and domestic operations related to financing in currencies other than the functional currencies.

All derivatives are recorded at fair value on the consolidated balance sheets. Cash collateral received or paid is not offset against the derivative fair values on the consolidated balance sheets. The cash flows from the derivative contractsliability positions for transactions with John Deere are recorded in operating activities in the statements of consolidated cash flows. Each derivative is designated as a cash flow hedge, a fair value hedge, or remains undesignated. All designated hedges are formally documented as“Receivables from John Deere” and “Other payables to ~~the relationship~~John Deere,” respectively. Derivative asset and liability positions for transactions with the hedged item as well as the risk-management strategy. Both at inception and on an ongoing basis the hedging instrument is assessed as to its effectiveness. If and when a derivative is determined not to be highly effective as a hedge, the underlying hedged transaction is no longer likely to occur, the hedge designation is removed, or the derivative is terminated, hedge accounting is discontinued.

~~Cash Flow Hedges~~

Certain interest rate contracts (swaps) were designated as hedges of future cash flows from borrowings. The total notional amounts of the receive-variable/pay-fixed interest rate contracts at January 29, 2023, October 30, 2022, and January 30, 2022 were $1,950.0 million, $1,950.0 million, and $2,700.0 million, respectively. Fair value gains or losses on cash flow hedgesunrelated external counterparty banks are recorded in ~~other comprehensive income (OCI)~~“Other assets” and subsequently reclassified into interest expense in the same periods during which the hedged transactions impact earnings. These amounts offset the effects of interest rate changes on the related borrowings.

The amount of gain recorded in OCI at January 29, 2023 that is expected to be reclassified to interest expense in the next twelve months if interest rates remain unchanged is $41.0 million after-tax. No gains or losses were reclassified from OCI to earnings based on the probability that the original forecasted transaction would not occur.

~~Fair Value Hedges~~

Certain interest rate contracts (swaps) were designated as fair value hedges of borrowings. The total notional amounts of the receive-fixed/pay-variable interest rate contracts at January 29, 2023, October 30, 2022,“Accounts payable and ~~January 30, 2022 were $10,126.7 million, $9,448.9 million, and $7,600.8 million,~~accrued expenses,” respectively. ~~The fair value gains or losses on these contracts were generally offset by fair value gains or losses on the hedged items (fixed-rate borrowings) with both items recorded in interest expense.~~

The amounts recorded in the consolidated balance sheets related to borrowings designated in fair value hedging relationships were as follows (in millions of dollars). Fair value hedging adjustments are included in the carrying amount of the hedged item.

Active Hedging Relationships

Discontinued Hedging Relationships

Carrying

Cumulative

Carrying Amount

Cumulative

Amount of

Fair Value

of Formerly

Fair Value

January 29, 2023

Hedged Item

Hedging Adjustment

Hedged Item

Hedging Adjustment

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)

October 30, 2022

Current maturities of long-term external borrowings

$
2,514.9

$
15.5

Long-term external borrowings

$
8,453.6

$
(950.1)

5,519.6

(19.1)

January 30, 2022

Current maturities of long-term external borrowings

$
177.4

$
1.7

$
2,356.9

$
8.1

Long-term external borrowings

7,283.2

(107.6)

5,447.0

181.3

~~Derivatives Not Designated as Hedging Instruments~~

The Company has certain interest rate contracts (swaps and caps), foreign currency exchange contracts (futures, forwards, and swaps), and cross-currency interest rate contracts (swaps), which were not formally designated as hedges. These derivatives were held as economic hedges for underlying interest rate or foreign currency exposures for certain borrowings. The total notional amounts of the interest rate swaps at January 29, 2023, October 30, 2022, and January 30, 2022 were $4,847.8 million, $3,931.3 million, and $2,798.0 million, the foreign currency exchange contracts were $1,297.8 million, $1,069.0 million, and $967.9 million, and the cross-currency interest rate contracts were $119.3 million, $134.2 million, and $302.9 million, respectively. To facilitate borrowings through securitization of retail notes, interest rate caps were sold with notional amounts of $788.8 million, $1,020.3 million, and $1,469.4 million at January 29, 2023, October 30, 2022, and January 30, 2022, respectively. Interest rate caps were also purchased with notional amounts of $788.8 million, $1,020.3 million, and $1,469.4 million at the same dates, respectively. The fair value gains or losses from derivatives not designated as hedging instruments were recorded in the statements of consolidated income, generally offsetting over time the exposure on the hedged item.

1917

~~Fair~~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 (in millions~~follows. Fair value hedging adjustments are included in the carrying amount of ~~dollars):~~the hedged item.

January 29

October 30

January 30

2023

2022

2022

Receivables from John Deere

Designated as hedging instruments:

Interest rate contracts

$
90.0

$
87.5

$
102.7

Not designated as hedging instruments:

Interest rate contracts

80.9

124.5

30.6

Cross-currency interest rate contracts

.3

2.8

23.5

Total not designated

81.2

127.3

54.1

Other Assets

Not designated as hedging instruments:

Foreign currency exchange contracts

1.2

1.3

27.3

Total derivative assets

$
172.4

$
216.1

$
184.1

Other Payables to John Deere

Designated as hedging instruments:

Interest rate contracts

$
629.0

$
947.9

$
164.1

Not designated as hedging instruments:

Interest rate contracts

28.7

74.2

21.9

Cross-currency interest rate contracts

6.5

2.1

.3

Total not designated

35.2

76.3

22.2

Accounts Payable and Accrued Expenses

Not designated as hedging instruments:

Foreign currency exchange contracts

29.1

14.1

1.4

Total derivative liabilities

$
693.3

$
1,038.3

$
187.7


	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)

2018

The classification and gains (losses), including accrued interest expense related to derivative instruments on the statements of consolidated income consisted of the ~~following (in millions of dollars):~~following:


	Three Months Ended				Three Months Ended
	January 29		January 30		January 28		January 29
	2023		2022		2024		2023
Fair Value Hedges
Interest rate contracts - Interest expense	$	235.3	$	(139.5)	$	335.7	$	235.3

Cash Flow Hedges
Recognized in OCI:
Interest rate contracts - OCI (pretax)	$	(1.9)	$	15.4	$	(7.8)	$	(1.9)

Reclassified from OCI:
Interest rate contracts - Interest expense		16.3		(1.1)		11.9		16.3

Not Designated as Hedges
Interest rate contracts - Interest expense *	$	(1.9)	$	(3.3)	$	(5.7)	$	(1.9)
Foreign currency exchange contracts - Administrative and operating expenses *		(135.1)		67.8		(103.2)		(135.1)
Total not designated	$	(137.0)	$	64.5	$	(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 ~~the Company~~we incurred on derivatives transacted with John Deere. The amounts ~~the Company~~we recognized on these ~~affiliate~~affiliated party transactions for the three months ended January 28, 2024 and January 29, 2023 were gains of $331.4 and ~~January 30, 2022 were a gain of~~ $242.5, ~~million and a loss of $122.6 million,~~ respectively.

~~Counterparty Risk and Collateral~~

Derivative instruments are subject to significant concentrations of credit risk to the banking sector. The Company manages individual unrelated external counterparty exposure by setting limits that consider the credit rating of the unrelated external counterparty, the credit default swap spread of the counterparty, and other financial commitments and exposures between the Company and the unrelated external counterparty banks. All interest rate derivatives are transacted under International Swaps and Derivatives Association (ISDA) documentation. Each master agreement permits the net settlement of amounts owed in the event of default or termination. None of ~~the Company’s~~our derivative agreements contain credit-risk-related contingent features.

The Company’s outstanding derivatives transactions are with both unrelated external counterparties and with John Deere. For derivatives transactions with John Deere, the Company utilizes 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 the Company. Except for collateral provisions, the terms of the transaction between the Company and John Deere are identical to the terms of the transaction between John Deere and its unrelated external counterparty.

~~The Company has ISDA agreements with John Deere that permit the net settlement of amounts owed between counterparties in the event of early termination. In addition, the Company has~~ We have a loss sharing agreement with John Deere in which ~~the Company has~~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 ~~exposures of the Company.~~our exposures. The loss sharing agreement did not increase the maximum amount of loss that ~~the Company~~we would incur, after considering collateral received and netting arrangements, as of January 28, 2024, October 29, 2023, ~~October 30, 2022,~~ and January ~~30, 2022.~~29, 2023.

2119

Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities for external derivatives and those with John Deere related to netting arrangements and any collateral received or paid were as ~~follows (in millions of dollars):~~follows:

January 29, 2023

Derivatives:

Gross Amounts
Recognized

Netting
Arrangements

Collateral

Net
Amount

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


	January 28, 2024
	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
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 30, 2022

Derivatives:

Gross Amounts
Recognized

Netting
Arrangements

Collateral

Net
Amount

Assets












External

$
1.3

$
(1.1)

$
.2

John Deere

214.8

(128.3)

86.5

Liabilities

External

14.1

(1.1)

13.0

John Deere

1,024.2

(128.3)

895.9


	October 29, 2023
	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
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 30, 2022









Derivatives:

Gross Amounts
Recognized

Netting
Arrangements

Collateral

Net
Amount

Assets

External

$
27.3

$
(1.4)

$
25.9

John Deere

156.8

(130.9)

25.9

Liabilities

External

1.4

(1.4)

John Deere

186.3

(130.9)

55.4


	January 29, 2023
	Gross Amounts Recognized		Netting Arrangements		Collateral	Net Amount
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

(12) ~~Subsequent Events~~Immaterial Restatement of Prior Period Financial Statements

~~On February 13,~~In the second quarter of 2023, we corrected the accounting treatment for financing incentives offered to John Deere ~~& Company increased its investment~~dealers, which impacted the timing of expense recognition and the presentation of incentive costs in ~~JDFS by $240.0 million. JDFS,~~the consolidated financial statements. Refer to Note 1 and Note 2 for additional information. While the prior period amounts have been restated, as set forth below for comparability, the impact of the correction in ~~turn, increased its investment~~periods prior to the second quarter ended April 30, 2023 was not material to our consolidated financial statements in ~~Capital Corporation by~~any of the ~~same amount.~~impacted periods.

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

(13)Subsequent Event

In February ~~2023, the Company~~2024, we entered into ~~two~~a retail note securitization ~~transactions. The first~~ transaction that resulted in ~~$306.6 million~~$529.3 of secured borrowings. ~~The second transaction will result in $982.6 million of secured borrowings and is expected to settle in March 2023.~~

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Results of Operations

All amounts are presented in millions of dollars unless otherwise specified.

Overview

Organization

~~The Company primarily generates revenues and cash by financing~~We provide financial solutions that enable John Deere ~~dealers’ sales~~customers and dealers to advance their lives and livelihoods. Through our offering of retail notes, leases, ofand revolving charge accounts, customers are able to finance new and used ~~production~~John Deere equipment, as well as parts, services, and ~~precision agriculture, small agriculture and turf, and construction and forestry equipment. In addition, the Company~~other input costs needed to run their operations. We also ~~provides~~provide wholesale financing to ~~dealers of the foregoing equipment and finances retail revolving charge accounts.~~John Deere dealers.

Smart Industrial Operating Model and Leap Ambitions

John ~~Deere’s~~Deere announced the Smart Industrial Operating Model in 2020. This operating model is ~~focused~~based on ~~making significant investments~~three focus areas:

(a)Production systems: A strategic alignment of products and solutions around John Deere customers’ operations.

(b)Technology stack: Investments in ~~strengthening its~~technology, as well as research and development, that deliver intelligent solutions to John Deere customers through digital capabilities, ~~in digital,~~ automation, autonomy, and alternative ~~propulsion~~power technologies. ~~These technologies are intended~~

(c)Lifecycle solutions: The integration of John Deere’s aftermarket and support capabilities to ~~increase worksite efficiency, improve yields, lower input costs,~~more effectively manage customer equipment, service, and ~~ease labor constraints.~~ technology needs across the full lifetime of a John Deere product.

John Deere’s Leap Ambitions were launched in 2022. These ambitions are ~~goals~~ designed to boost economic value and sustainability for John Deere’s customers. The ambitions align across the production systems of John Deere customers, seeking to optimize their operations to deliver better outcomes with fewer resources. As an enabling business, ~~the Company is~~we are fully integrated with John Deere’s Smart Industrial ~~operating model~~Operating Model and isare focused on providing financial solutions to help John Deere achieve its Leap Ambitions. ~~John Deere and the Company anticipate opportunities in this area, as John Deere, the Company, and their customers have a vested interest in sustainable practices.~~

In ~~February 2023,~~January 2024, John Deere released its ~~2022 Sustainability~~2023 Business Impact Report, available at JohnDeere.com/sustainability. This report identifies important progress on John Deere’s Leap Ambitions in fiscal year ~~2022.~~2023. The information in John Deere’s ~~2022 Sustainability~~2023 Business Impact Report is not incorporated by reference into, and does not form a part of, this Quarterly Report on Form 10-Q.

Trends and Economic Conditions

~~The Company’s~~Our volume of Receivables and Leases is largely dependent upon the level of retail sales and leases of John Deere products. The level of John Deere retail sales and leases is responsive to a variety of economic, financial, climatic, legislative, and other factors that influence supply and demand for its products.

Industry ~~Trends~~Sales Outlook for Fiscal Year ~~2023~~2024

~~Industry sales of large agricultural machinery in the U.S.~~Agriculture and ~~Canada for 2023 are forecasted to increase 5 to 10 percent compared to 2022. Industry sales of small agricultural~~Turf

Construction and turf equipment in the U.S. and Canada are expected to be down about 5 percent in 2023. Industry sales of agricultural machinery in Europe are forecasted to be flat to up 5 percent, while South American industry sales of tractors and combines are expected to be flat to up 5 percent in 2023. Asia industry sales are forecasted to be down moderately in 2023. On an industry basis, North American construction equipment and compact construction equipment sales are both expected to be flat to up 5 percent in 2023. Global forestry and global roadbuilding industry sales are each expected to be flat.Forestry

John Deere Trends

~~Customers’ demand for integration of technology into equipment is a market trend underlying John Deere’s Smart Industrial operating model and Leap Ambitions framework.~~ Customers ~~have sought~~seek to improve profitability, productivity, and sustainability through technology. Integration of technology into equipment is a persistent market trend. John Deere’s ~~approach~~Smart Industrial Operating Model and Leap Ambitions are intended to ~~technology involves hardware and software, guidance, connectivity and digital solutions, automation and machine intelligence, autonomy, and alternative propulsion technologies. This technology is~~capitalize on this market trend. The technologies that are the focus of John Deere’s operating model are incorporated into products within each of John Deere’s operating segments. ~~Customers continue to adopt technology integrated in the John Deere portfolio of “smart” machines, systems, and solutions. The Company expects~~We expect this trend to persist for the foreseeable future.

~~Demand~~Agriculture and Turf Outlook for John Deere’s equipment remains strong, as order books are full through a majority of 2023. Agricultural fundamentals are expected to remain solid into 2023, and retail demand will comprise most of 20232024

●	John Deere expects large and small agricultural equipment sales to be down from 2023 levels in North America, Europe, and South America.

●	Sales of compact utility tractors continue to be lower as the industry works to bring down inventory levels while demand for turf products has stabilized.

●	John Deere continues to produce at levels in line with retail demand in North America. To manage inventory in Europe and Brazil, John Deere is producing at levels below retail demand.

●	Agricultural fundamentals are expected to moderate in 2024 due to lower commodity prices and elevated interest rates, offset by resilient farm balance sheets, and lower input costs.

●	The U.S. equipment fleet age is above 20-year averages for both tractors and combines.

●	The dairy and livestock sector continues to benefit from elevated cattle and hay prices.

●	Commodity markets remain disrupted in Central and Eastern Europe due to the Russia/Ukraine war. Western Europe equipment demand is moderately impacted by uncertainty related to current cash crop receipts, agriculture policy changes, and high interest rates.

~~sales. The North American retail customer fleet age of combines~~Construction and large tractors remains above average, and dealer inventories are historically low due to the manufacturing and supply chain constraints over the past few years. John Deere expects the replenishment of dealer stock inventory to occur in 2024. Crop prices remain favorable to John Deere customers in part due to low stock-to-use ratiosForestry Outlook for key grains. John Deere expects to sell more large agricultural equipment in 2023 than 2022 in North America, Europe, and South America. Demand for small agricultural equipment remains stable, while turf and utility equipment product sales are expected to be lower due to the overall U.S. economic conditions. Construction equipment markets are forecasted to be steady. Rental fleets replenishment, the energy industry, and U.S. infrastructure spend are expected to offset moderation in residential home construction. Roadbuilding demand remains strongest in the U.S., largely offset by softening demand in Europe and parts of Asia.2024

John Deere experienced supply chain disruptions in 2022, which continued into 2023. Supply chain disruptions impacted many aspects of John Deere’s business, including parts availability, increased production costs, and higher inventory levels. Past due deliveries from suppliers were at elevated levels during 2022. Although past due deliveries remain elevated, John Deere experienced improvement during the first quarter of 2023. The reduction in supply chain disruptions contributed to higher levels of production. John Deere implemented mitigation efforts to minimize the impact of supply chain disruptions on its ability to meet customer demand. While supply chain disruptions are expected to persist into 2023, John Deere is working diligently to secure the parts and components that customers need to deliver essential food and infrastructure more profitably and sustainably. Although John Deere experienced some improvement in this area during the first quarter of 2023, concerns remain, and this issue could impact John Deere’s ability to meet customer demand in the remainder of 2023.

●	Construction equipment industry sales are forecasted to be down from 2023 levels.

●	Benefits from increasing U.S. infrastructure spending, elevated manufacturing investment levels, and improving single family housing starts are expected to partially offset moderation in office and retail construction.

●	Roadbuilding demand remains strong in the U.S., largely offset by softening demand in Europe.

Company Trends

~~Net~~Our net income for ~~the Company in~~ fiscal ~~2023~~year 2024 is expected to be ~~lower~~higher than fiscal ~~2022~~year 2023 primarily due to ~~less favorable financing spreads, higher selling, administrative, and general expenses, and lower gains on operating lease dispositions. These factors are expected to be partially offset by~~ income earned on a higher average portfolio ~~driven~~and lower dealer financing incentives, partially offset by ~~strong demand of John Deere’s products in 2023, which is favorably impacting forecasted~~less favorable financing ~~volumes.~~spreads and a higher provision for credit losses.

Central bank policy interest rates increased in ~~the first quarter of~~ 2023 and ~~are projected to continue to increase during 2023, but at a moderating pace compared to 2022.~~have remained elevated. Most of ~~the Company’s Customer Receivables~~our receivables and leases with retail customers are fixed rate, while ~~its~~our wholesale receivables generally ~~earn a floating~~are variable rate. ~~The Company has both~~This Receivable and Lease portfolio is financed with fixed and ~~floating~~variable rate borrowings. ~~The Company manages the risk of~~We manage our exposure to interest rate fluctuations by ~~balancing~~matching the ~~types and amounts~~interest rate characteristics of ~~its~~our portfolio with our funding ~~sources to its Receivable and Lease portfolios. Accordingly, the Company enters~~sources. We also enter into interest rate swap agreements to ~~manage its~~match our interest rate exposure. ~~Historically, rising~~

Rising interest rates ~~impact the Company’s~~have historically impacted our borrowings sooner than the benefit is realized from ~~the~~our Receivable and Lease portfolio. As a result, ~~the Company’s~~we experienced $19.5 (after-tax) less favorable financing ~~spread was unfavorably impacted by $50.0 million (after-tax)~~spreads in the first ~~quarter~~three months of ~~2023~~2024 compared to ~~2022. The Company expects~~2023. We expect to continue experiencing spread compression in 2024, but at a moderating pace relative to ~~persist during~~spread compression experienced in 2023.

Inflation was a pervasive feature throughout 2022, and the Company expects inflation to continue in 2023. The Company’s estimation of credit losses may be negatively impacted in the event customers’ operations are negatively impacted due to inflation or rising interest rates. As part of the process to establish the allowance for credit losses, the Company continues to monitor the economy, including potential impacts of inflation and rising interest rates, among other factors, and qualitative adjustments to the allowance are incorporated as necessary. As of January 29, 2023, impacts of inflation and interest rates did not have a material impact on the Company’s allowance.

As the Company’s volume of Receivables and Leases is largely dependent upon the level of retail sales and leases of John Deere products, supply chain disruptions could impact the Company’s future volumes. Despite supply chain challenges, the Company’s volumes are forecast to grow in 2023, driven by strong demand for John Deere equipment.

~~Supply chain disruptions, inflationary pressures, and rising~~Higher interest rates are driven by factors outside of ~~the Company’s~~our control, and as a result ~~the Company~~we cannot reasonably foresee when these conditions will subside.

Other Items of Concern and Uncertainties

Other items that could impact our results are:

●	global and regional political conditions, including the ongoing war between Russia and Ukraine and the war between Israel and Hamas,

●	economic, tax, and trade policies,

●	new or retaliatory tariffs,

●	capital market disruptions,

●	foreign currency and capital control policies,

●	regulations and legislation regarding right to repair,

●	weather conditions,

●	marketplace adoption and monetization of technologies we have invested in,

●	John Deere’s and our ability to strengthen our digital capabilities, automation, autonomy, and alternative power technologies,

●	changes in demand and pricing for new and used equipment,

●	significant fluctuations in foreign currency exchange rates,

●	volatility in the prices of many commodities, and

●	slower economic growth or recession.

~~For~~Financing Incentives

In the second quarter of 2023, we corrected the accounting treatment for financing incentives offered to John Deere dealers. Refer to Note 1, Note 2, and Note 12 of the interim consolidated financial statements for additional ~~information regarding~~information. While prior period amounts have been restated for comparability, the impact of ~~supply chain disruptions, including mitigation efforts~~the correction in periods prior to ~~minimize~~ the impact of potential supply chain disruptions on John Deere’s ability to meet customer demand, as well as inflationary pressures, refer to Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations —Trends and Economic Conditions” included in Deere & Company’s Quarterly Report on Form 10-Q for thesecond quarter ended ~~January 29, 2023.~~

~~Items~~April 30, 2023 was not material to our consolidated financial statements in any of ~~Concern and Uncertainties~~

Other items of concern include global and regional political conditions, economic and trade policies, imposition of new or retaliatory tariffs against certain countries or covering certain products, post-pandemic effects, capital market disruptions, changes in demand and pricing for new and used equipment, significant fluctuations in foreign currency exchange rates, and volatility in the prices of many commodities. These items could impact the Company’s results. John Deere and the Company are making investments in technology and in strengthening capabilities in digital, automation, autonomy, and alternative propulsion technologies. As with most technology investments, marketplace adoption and monetization of these features holds an elevated level of uncertainty.impacted periods.

~~2023~~2024 Compared with ~~2022~~2023

The total revenues and net income attributable to the Company were as ~~follows (in millions of dollars):~~follows:


	Three Months Ended				Three Months Ended
	January 29		January 30		January 28		January 29
	2023		2022		2024		2023
Total revenues	$	820.6	$	642.9	$	1,160.5	$	836.5
Net income attributable to the Company		147.1		189.6		174.5		137.6

Total revenues increased for the first quarter of ~~2023~~2024 primarily due to a ~~16%~~19 percent increase in average portfolio balances ~~in addition to~~and higher average financing ~~rates compared to the same period last year.~~rates. Net income for the ~~first~~ quarter was ~~lower compared to~~higher than the same period in ~~2022~~2023 primarily due to ~~less favorable financing spreads, higher selling, administrative, and general expenses, and lower gains on operating lease dispositions, partially offset by~~ income earned on higher average portfolio ~~balances.~~balances and lower dealer financing incentives, partially offset by less-favorable financing spreads and a higher provision for credit losses.

Revenues

Finance income, lease revenues, and other income earned by ~~the Company~~us were as ~~follows (in millions of dollars):~~follows:


	Three Months Ended					Three Months Ended
	January 29		January 30		%	January 28		January 29		%
	2023		2022		Change	2024		2023		Change
Finance income earned on:
Retail notes	$	315.9	$	240.0	32	$	452.3	$	330.0	37
Revolving charge accounts		82.9		66.5	25		105.2		82.9	27
Wholesale receivables		151.5		59.9	153		271.1		151.5	79
Lease revenues		240.7		241.5			264.8		242.5	9
Other income		29.6		35.0	(15)		67.1		29.6	127

~~Finance income earned on retail notes, revolving charge accounts, and wholesale receivables increased during the first quarter of 2023 compared to 2022, due to higher~~Higher average ~~financing rates~~portfolio balances and higher average finance rates drove increased revenues across all products. The change was most pronounced within wholesale receivables, due to a 58 percent increase in average portfolio balances. ~~Lease revenues were about the same for each period.~~

Other income ~~decreased~~increased in the first quarter of 2024 compared to 2023 due to lower gains on operating lease dispositions. While demand for used equipment remains strong, lease gains declined in the first quarter as end-of-lease book values are now more closely aligned with equipment sale proceeds. This decrease was partially offset by higher interest earned on ~~the Company’s~~our cash and cash ~~equivalents.~~equivalents and intercompany receivables from John Deere. Furthermore, we received an international support payment from John Deere in 2024 as a result of foreign exchange losses in Argentina due to currency devaluation.

Revenues earned from John Deere totaled ~~$208.2 million~~$278.4 for the first quarter of ~~2023,~~2024, compared with ~~$138.7 million~~$208.2 for the same period last year. The increase was primarily due to increased compensation paid by John Deere on wholesale receivables and retail notes, driven by a higher interest rate environment, in addition to higher average portfolio balances. The international support payment from John Deere noted above also contributed to the increase. Revenues earned from John Deere are included in each of the revenue amounts discussed above.

Expenses

Expenses incurred by ~~the Company~~us were as ~~follows (in millions of dollars):~~follows:


	Three Months Ended					Three Months Ended
	January 29		January 30		%	January 28		January 29		%
	2023		2022		Change	2024		2023		Change
Interest expense	$	301.0	$	99.5	203	$	571.4	$	301.0	90
Depreciation of equipment on operating leases		164.5		168.8	(3)		167.2		164.5	2
Administrative and operating expenses		108.5		96.4	13		132.2		136.7	(3)
Fees and interest paid to John Deere		57.6		39.7	45		57.1		57.6	(1)
Provision (credit) for credit losses		3.5		(1.2)
Provision for credit losses							21.0		3.5	500
Provision for income taxes		39.6		52.0	(24)		38.9		36.8	6

The increase in interest expense for the first quarter of ~~2023~~2024 was primarily due to higher average borrowing rates and higher average ~~borrowings.~~

~~Depreciation of equipment on operating leases for the first quarter of 2023 decreased slightly due~~borrowings to ~~lower average balances of equipment on operating leases.~~fund a larger portfolio.

Administrative and operating expenses decreased in the first quarter of 2024 compared to 2023 due to lower dealer financing incentive program costs, partially offset by higher foreign exchange losses in Argentina.

The provision for credit losses increased in the first quarter ~~of 2023~~2024 compared ~~to 2022 due to higher dealer incentive program costs and higher employment costs, including incentive compensation.~~

~~Fees and interest paid to John Deere increased in 2023 primarily due to higher interest on intercompany borrowings from John Deere driven by higher average borrowing rates.~~

~~The provision (credit) for credit losses increased slightly in the first quarter of 2023 compared to~~with the same period last year primarily due to higher net ~~recoveries~~write-offs on ~~revolving charge accounts in the prior year period, which did not recur this year.~~construction and forestry retail notes. The annualized provision ~~(credit)~~ for credit losses, as a percentage of the average balance of total Receivables, was ~~.03~~.17 percent for the first quarter of ~~2023,~~2024, compared with ~~(.01)~~.03 percent for the same period last year.

The provision for income taxes ~~decreased~~increased during the first quarter of ~~2023~~2024 primarily due to ~~lower~~higher pretax income, ~~in the current quarter.~~partially offset by favorable discrete tax items.

Receivables and Leases

Receivable and Lease (excluding wholesale) volumes were as ~~follows (in millions of dollars):~~follows:


	Three Months Ended							Three Months Ended
	January 29		January 30		$		%	January 28		January 29		$		%
	2023		2022		Change		Change	2024		2023		Change		Change
Retail notes:
Agriculture and turf	$	2,684.5	$	2,319.9	$	364.6	16	$	2,833.1	$	2,684.5	$	148.6	6
Construction and forestry		630.6		674.5		(43.9)	(7)		753.6		630.6		123.0	20
Total retail notes		3,315.1		2,994.4		320.7	11		3,586.7		3,315.1		271.6	8
Revolving charge accounts		2,212.7		2,088.5		124.2	6		2,075.6		2,212.7		(137.1)	(6)
Financing leases		128.5		100.2		28.3	28		185.3		128.5		56.8	44
Equipment on operating leases		377.2		307.5		69.7	23		360.2		377.2		(17.0)	(5)
Total Receivables and Leases (excluding wholesale)	$	6,033.5	$	5,490.6	$	542.9	10	$	6,207.8	$	6,033.5	$	174.3	3

~~Total Receivables~~Receivable and ~~Leases owned~~Lease portfolio balances were as ~~follows (in millions of dollars):~~follows:


	January 29		October 30		January 30		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Retail notes:
Agriculture and turf	$	24,049.9	$	23,857.8	$	21,253.9	$	26,678.4	$	26,708.3	$	23,988.2
Construction and forestry		4,988.7		4,954.1		4,600.1		5,455.7		5,289.6		4,988.7
Total retail notes		29,038.6		28,811.9		25,854.0		32,134.1		31,997.9		28,976.9
Revolving charge accounts		2,834.0		4,165.8		2,684.8		2,925.5		4,594.4		2,834.0
Wholesale receivables		9,752.1		8,404.5		6,312.0		14,542.8		13,330.1		9,752.1
Financing leases		1,030.8		1,120.7		878.4		1,251.0		1,421.8		1,030.8
Equipment on operating leases		4,693.4		4,853.5		4,745.6		4,933.4		5,051.5		4,693.4
Total Receivables and Leases	$	47,348.9	$	47,356.4	$	40,474.8	$	55,786.8	$	56,395.7	$	47,287.2

Customer Receivables decreased ~~$1,195.0 million~~$1,703.5 during the first three months of ~~2023 mostly~~2024 due to a seasonal decrease in revolving charge account receivables. Customer Receivables increased ~~$3,486.2 million~~$3,468.9 compared to one year ago due to strong John Deere retail sales. Wholesale receivables increased ~~$1,347.6 million~~$1,212.7 in the first three months of ~~2023~~2024 and ~~$3,440.1 million~~$4,790.7 compared to one year ago due to higher ~~shipment volumes of John Deere equipment.~~dealer inventory levels.

Total Receivables 30 days or more past due, non-performing Receivables, and the allowance for credit losses were as follows ~~(in millions of dollars and as~~(as a percentage of the Receivables balance):


	January 29			October 30			January 30
	2023			2022			2022			January 28, 2024			October 29, 2023			January 29, 2023
	Dollars		Percent	Dollars		Percent	Dollars		Percent	Dollars		Percent	Dollars		Percent	Dollars		Percent
Receivables 30 days or more past due	$	489.4	1.15	$	404.9	.95	$	418.8	1.17	$	714.5	1.41	$	514.1	1.00	$	489.4	1.15
Non-performing Receivables		293.6	.69		263.2	.62		274.9	.77		436.3	.86		383.1	.75		293.6	.69
Allowance for credit losses		121.7	.29		128.4	.30		121.4	.34		139.6	.27		146.4	.29		121.7	.29

We monitor the credit quality of Receivables based on delinquency status. Receivables 30 days or more past due continue to accrue finance income. ~~The Company ceases to accrue~~We stop accruing finance income once Receivables are considered ~~non-performing.~~non-performing, which generally occurs once Receivables are 90 days past due. An allowance for credit losses is recorded for the estimated credit losses expected over the life of the Receivable portfolio. ~~The Company measures~~We measure expected credit losses on a collective basis when similar risk characteristics exist. Risk characteristics ~~considered by the Company~~ include product category, market, geography, credit risk, and remaining ~~duration.~~balance. Receivables that do not share risk characteristics with other receivables in the portfolio are evaluated on an individual basis. Non-performing Receivables are included in the estimate of expected credit losses. While ~~the Company believes its~~we believe our allowance is sufficient to provide for losses over the life of ~~its~~our existing Receivable portfolio, different assumptions or changes in economic conditions would result in changes to the allowance for credit losses and the provision for credit losses. See Note 4 for additional information related to the allowance for credit losses.

Deposits held from dealers and merchants amounted to $129.3 at January 28, 2024, compared with $138.4 at October 29, 2023 and $127.8 ~~million~~ at January 29, ~~2023, compared with $137.3 million at October 30, 2022 and $126.1 million at January 30, 2022.~~2023. These balances primarily represent the aggregate dealer retail note and lease ~~withholding accounts~~deposits from individual John Deere dealers to which losses from retail notes and leases originating from the respective dealers can be charged. Recoveries from dealer deposits are recognized in ~~other income~~“Other income” when the dealer’s ~~withholding~~deposit account is charged. Recoveries from dealer deposits and other freestanding credit enhancements recorded in other income were ~~$2.0 million~~$7.3 in the first quarter of ~~2023,~~2024, compared with ~~$1.1 million~~$2.0 for the same period last year.

Write-offs and recoveries of Receivables, by product, and as an annualized percentage of average balances held during the period, were as ~~follows (in millions of dollars):~~follows:


	Three Months Ended						Three Months Ended
	January 29, 2023			January 30, 2022			January 28, 2024			January 29, 2023
	Dollars		Percent	Dollars		Percent	Dollars		Percent	Dollars		Percent
Write-offs:
Retail notes and financing leases:
Agriculture and turf	$	(7.1)	(.11)	$	(6.1)	(.11)	$	(10.4)	(.15)	$	(7.1)	(.11)
Construction and forestry		(3.1)	(.24)		(6.4)	(.54)		(13.9)	(.99)		(3.1)	(.24)
Total retail notes and financing leases		(10.2)	(.14)		(12.5)	(.19)		(24.3)	(.29)		(10.2)	(.14)
Revolving charge accounts		(7.5)	(.91)		(4.0)	(.53)		(10.7)	(1.19)		(7.5)	(.91)
Wholesale receivables		(.1)									(.1)
Total write-offs		(17.8)	(.17)		(16.5)	(.19)		(35.0)	(.28)		(17.8)	(.17)
Recoveries:
Retail notes and financing leases:
Agriculture and turf		1.6	.03		2.0	.04		1.3	.02		1.6	.03
Construction and forestry		.8	.06		.9	.08		.4	.03		.8	.06
Total retail notes and financing leases		2.4	.03		2.9	.04		1.7	.02		2.4	.03
Revolving charge accounts		5.3	.64		7.8	1.04		7.6	.85		5.3	.64
Wholesale receivables		.6	.03								.6	.03
Total recoveries		8.3	.08		10.7	.12		9.3	.08		8.3	.08
Total net write-offs	$	(9.5)	(.09)	$	(5.8)	(.07)	$	(25.7)	(.20)	$	(9.5)	(.09)

Critical Accounting Estimates

See ~~the Company’s~~our critical accounting estimates discussed in ~~Management’s~~“Management’s Discussion and Analysis of Financial Condition and Results of ~~Operations~~Operations” of ~~the Company’s most~~our recently filed Annual Report on Form 10-K. There have been no material changes to these estimates.

Capital Resources and Liquidity – 2024 Compared with 2023

~~For additional information~~We rely on ~~the Company’s dependence on, and relationship with, Deere & Company, see the Company’s most recently filed Annual Report on Form 10-K.~~

~~Sources of Liquidity, Key Metrics and Balance Sheet Data~~

~~The Company relies on its~~our ability to raise substantial amounts of funds to finance ~~its~~our Receivable and Lease portfolios. ~~The Company has~~We have access to ~~most~~ global capital markets at a reasonable ~~cost. The Company’s~~cost and our ability to meet ~~its~~our debt obligations is supported in several ways. ~~The assets~~Sources of the Company are self-liquidating in nature. A solid equity position is available to absorb unusual losses on these assets, and all commercial paper is backed by unsecured, committed borrowing lines from various banks. Liquidity is also provided by the Company’s ability to securitize its retail notes and through the issuance of term debt in both public and private markets. Additionally, liquidity ~~may be provided through loans from John Deere. The Company~~include:

●	cash and cash equivalents,

●	the issuance of commercial paper and term debt,

●	the securitization of retail notes,

●	intercompany loans from John Deere,

●	our Receivable and Lease portfolio, which is self-liquidating in nature, and

●	bank lines of credit.

We closely ~~monitors its~~monitor our liquidity sources against the cash requirements and ~~expects~~expect to have sufficient sources of global funding and liquidity to meet ~~its~~our funding needs in the short-term (next 12 months) and long-term (beyond 12 months).

Key metrics and certain balance sheet data are provided in the following ~~table, in millions of dollars:~~table:


	January 29		October 30		January 30		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Cash, cash equivalents, and marketable securities	$	1,056.8	$	662.9	$	666.3	$	1,522.4	$	1,488.9	$	1,056.8
Receivables and Leases – net		47,227.2		47,228.0		40,353.4		55,647.2		56,249.3		47,165.5
Interest-bearing debt		42,491.4		41,856.1		36,019.3		50,470.5		50,514.5		42,491.4
Unused credit lines		1,580.5		3,283.9		5,865.2		1,576.6		841.2		1,580.5
Ratio of interest-bearing debt to stockholder’s equity		8.5 to 1		8.7 to 1		7.7 to 1		8.6 to 1		8.6 to 1		8.5 to 1

The ~~reduction~~increase in unused credit lines at January 28, 2024 compared to ~~both prior periods~~October 28, 2023 relates to ~~an increase~~a decrease in commercial paper outstanding, by both ~~the Company~~us and John ~~Deere, due to changes in Receivables and funding mix.~~Deere.

There have been no material changes to the contractual obligations and other cash requirements identified in ~~the Company’s~~our most recently ~~issued~~filed Annual Report on Form 10-K.

Cash Flows


	Three Months Ended				Three Months Ended
	January 29		January 30		January 28		January 29
(In millions of dollars)	2023		2022
					2024		2023
Net cash provided by operating activities	$	338.7	$	268.7	$	409.6	$	338.7
Net cash provided by (used for) investing activities		(53.0)		676.0		429.4		(53.0)
Net cash provided by (used for) financing activities		81.0		(963.1)		(810.6)		81.0
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		13.1		(5.2)		1.5		13.1
Net increase (decrease) in cash, cash equivalents, and restricted cash	$	379.8	$	(23.6)
Net increase in cash, cash equivalents, and restricted cash					$	29.9	$	379.8

Net cash ~~was used for~~provided by investing activities increased during the first three months of ~~2023~~2024, primarily due to ~~growth in wholesale receivables and notes receivable from John Deere, partially offset by~~ a seasonal decrease in revolving charge account receivables, partially offset by an increase in wholesale receivables. ~~Net cash used by investing activities was funded primarily through external borrowings and~~The aggregate net cash provided by operating and investing activities ~~partially offset by a reduction~~was used primarily to decrease external borrowings, resulting in ~~borrowings from John Deere.~~cash outflows for financing activities.

Borrowings

Total borrowings ~~increased $635.3 million~~decreased $44.0 in the first three months of ~~2023~~2024 and increased ~~$6,472.1 million~~$7,979.1 compared to a year ago, generally corresponding with the level of the Receivable and Lease ~~portfolios, as well as the level of cash and cash equivalents.~~portfolios. During the first three months of ~~2023, the Company~~2024, we issued ~~$2,298.9 million~~$2,147.3 and retired ~~$1,618.5 million~~$1,713.4 of long-term external borrowings, which primarily consisted of medium-term notes. During the first three months of ~~2023, the Company~~2024, we also retired ~~$849.3 million~~$881.5 of retail note securitization borrowings and maintained an average commercial paper balance of ~~$3,331.5 million. The Company’s~~$6,707.4. Our funding profile may be altered to reflect such factors as relative costs of funding sources, assets available for securitizations, and capital market accessibility.

~~The Company has~~We have a revolving warehouse facility to utilize bank conduit facilities to securitize retail notes (see Note 5). The facility was renewed in November ~~2022~~2023 with an expiration in November ~~2023~~2024 and ~~increased~~with an increase in the total capacity or “financing limit” from ~~$1,000.0 million~~$1,500.0 to ~~$1,500.0 million.~~$2,000.0. At January ~~29, 2023, $786.0 million~~28, 2024, $1,117.6 of securitization borrowings were outstanding under the facility. At the end of the contractual revolving period, unless ~~the banks~~we and the ~~Company~~banks agree to renew, ~~the Company~~we would liquidate the secured borrowings over time as payments on the retail notes are collected.

Lines of Credit

~~The Company has~~We have access to bank lines of credit with various banks throughout the world. Some of the lines are available to both ~~the Company~~us and Deere & Company.

Worldwide lines of credit ~~totaled $8,029.0 million~~were $10,080.0 at January 28, 2024, consisting primarily of:

●	a 364-day credit facility agreement of $5.0 billion, expiring in the second quarter of 2024,

●	a credit facility agreement of $2.5 billion, expiring in the second quarter of 2027, and

●	a credit facility agreement of $2.5 billion, expiring in the second quarter of 2028.

29 ~~2023, $1,580.5 million~~

At January 28, 2024, $1,576.6 of ~~which~~these worldwide lines of credit were unused. For the purpose of computing the unused credit lines, commercial paper and short-term bank borrowings of ~~the Company~~us and John Deere, ~~excluding secured borrowings and the current portion of long-term external borrowings,~~ were considered to constitute utilization. Included in the total credit lines at January 29, 2023 was a 364-day credit facility agreement of $3,000.0 million, expiring in the second quarter of 2023. In addition, total credit lines included long-term credit facility agreements of $2,500.0 million, expiring in the second quarter of 2026, and $2,500.0 million, expiring in the second quarter of 2027.

The ~~Company expects to extend the terms of these credit facilities. These~~ credit agreements governing these lines of credit require ~~the Company~~us to maintain ~~its~~a consolidated ratio of earnings to fixed charges at not less than 1.05 to 1 for ~~each~~any four consecutive fiscal ~~quarter~~quarterly periods and ~~its~~our ratio of senior debt, excluding securitization indebtedness, to capital base (total subordinated debt and stockholder’s equity excluding accumulated other comprehensive income (loss)) at not more than 11 to 1 at the end of any fiscal quarter. All of these credit agreement requirements have been met during the periods included in the consolidated financial statements. The agreements are mutually extendable, and the annual facility fees are not significant.

Debt Ratings

~~The Company’s~~Our ability to obtain funding is affected by ~~its~~our debt ratings, which are closely related to the outlook for and the financial condition of John Deere, and the nature and availability of support facilities, such as ~~the Company’s~~our lines of credit and the support agreement from Deere & Company.

To access public debt capital markets, ~~the Company relies~~we rely on credit rating agencies to assign short-term and long-term credit ratings to ~~the Company’s~~our debt securities as an indicator of credit quality for fixed income investors. A security rating is not a recommendation by the rating agency to buy, sell, or ~~hold the Company’s securities.~~hold. A credit rating agency may change or withdraw ratings based on its assessment of ~~the Company’s~~our current and future ability to meet interest and principal repayment obligations. Each agency’s rating should be evaluated independently of any other rating. Lower credit ratings generally result in higher borrowing costs, including costs of derivative transactions, ~~and~~ reduced access to debt capital ~~markets.~~markets, and may adversely impact our liquidity.

The senior long-term and short-term debt ratings and outlook currently assigned to our unsecured ~~Company~~ debt securities by the rating agencies engaged by ~~the Company~~us are the same as those for John ~~Deere. Those ratings~~Deere and are as follows:


	Senior Long-Term	Short-Term	Outlook
Fitch Ratings	A+	F1	Stable
Moody’s Investors Service, Inc.	A2A1	Prime-1	~~Positive~~	Stable
Standard & Poor’s	A	A-1	Stable

Forward-Looking Statements

Certain statements contained herein, including in the section entitled “Overview” relating to future events, expectations, and trends constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially.

Forward-looking statements are based on currently available information and current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, ~~the Company~~we expressly ~~disclaims~~disclaim any obligation to update or revise ~~its~~our forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to:

●	changes and compliance with U.S., foreign and international laws, regulations, and policies relating to trade, economic sanctions, data privacy, spending, taxing, banking, monetary, environmental (including climate change and engine emission), and farming policies;

●	~~volume~~volumes of Receivables and Leases being dependent upon the level of retail sales and leases of John Deere products;

●

changes in U.S. and international laws, regulations and policies relating to trade, spending, taxing, banking, monetary, environmental (including climate change and engine emission), and farming policies;

●

political, economic, and social instability of the geographies in which we and John Deere ~~and the Company operate;~~

●

~~wars and other conflicts,~~operate, including the ~~current conflict~~ongoing war between Russia and Ukraine and ~~natural disasters;~~the war between Israel and Hamas;

●

adverse macroeconomic conditions, including unemployment, inflation, rising interest rates, changes in consumer practices due to slower economic growth, and regional or ~~possible recession, and~~global liquidity constraints;

●

~~growth~~worldwide demand for food and ~~sustainability~~different forms of ~~non-food uses for crops (including ethanol and biodiesel production);~~renewable energy;

●

John Deere’s and ~~the Company’s~~our ability to execute business strategies, including John Deere’s Smart Industrial ~~operating model~~Operating Model and Leap Ambitions;

●

John Deere’s and ~~the Company’s~~our ability to understand and meet ~~their~~ customers’ changing expectations and demand for John Deere products and ~~the Company’s~~solutions, including our financing solutions;

●

John Deere’s and ~~the Company’s~~our ability to adapt in highly competitive markets;

●

John ~~Deere’s dealer~~Deere dealers’ practices and their ability to manage distribution of John Deere products and support and service precision technology solutions;

●

changes in climate patterns, ~~and~~ unfavorable weather ~~events;~~events, and natural disasters;

●	governmental and other actions designed to address climate change in connection with a transition to a lower-carbon economy;

●	higher interest rates and currency fluctuations, which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for John Deere’s and ~~the Company’s products;~~our products and solutions;

●

~~changes~~a decrease in the ~~Company’s credit ratings and failure to comply with financial covenants in credit agreements could impact access to funding;~~value of used equipment or higher than estimated returns of equipment on operating leases;

●

availability and price of raw materials, components, and whole goods;

●

delays or disruptions in John Deere’s supply chain;

●	John Deere’s equipment fails to perform as expected, which could result in warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations;

●	the ability to attract, develop, engage, and retain qualified personnel;

●

security breaches, cybersecurity attacks, technology failures, and other disruptions to ~~the~~John Deere information technology infrastructure and products of John Deere, or ~~the Company and its products;~~us;

●

~~compliance with evolving U.S. and foreign laws, including economic sanctions, data privacy, environmental, anti-money laundering, and consumer finance laws and regulations;~~loss of or challenges to intellectual property rights;

●

legislation introduced or enacted that could affect John Deere’s business model and intellectual property, such as ~~so-called~~ right to repair ~~or right to modify~~ legislation;

●

investigations, claims, lawsuits, or other legal proceedings;

●

events that damage John Deere’s or ~~the Company’s~~our reputation or brand;

●

world grain stocks, available farm acres, soil conditions, harvest yields, prices for commodities and livestock, input costs, ~~(e.g., fertilizer),~~ and availability of transport for crops; and

●

housing starts and supply, real estate and housing prices, levels of public and non-residential construction, and infrastructure investment.

Further information concerning ~~the Company and its~~our business, including factors that could materially affect ~~the Company’s~~our financial results, is included in ~~the Company’s~~our other filings with the SEC (including, but not limited to, the factors discussed in Item 1A. “Risk Factors” of ~~the Company’s~~our most recent Annual Report on Form ~~10-K)~~10-K and this Quarterly Report on Form 10-Q). There also may be other factors that we cannot anticipate or that are not described herein because we do not currently perceive them to be material.

~~The Company’s~~31

Our business is closely related to John Deere’s business. Further information, including factors that could materially affect ~~the Company’s~~our financial results and John Deere’s financial results, is included in the most recent Deere & Company Annual Report on Form 10-K and ~~subsequent~~ Quarterly ~~Reports~~Report on Form 10-Q (including, but not limited to, the factors discussed in Item 1A., “Risk Factors” of the most recent Annual Report on Form 10-K and ~~subsequent~~ Quarterly ~~Reports~~Report on Form 10-Q) and other Deere & Company filings with the SEC.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Omitted pursuant to General Instruction H.

Item 4. Controls and Procedures.

~~The Company’s~~Our principal executive officer and ~~its~~ principal financial officer have concluded that ~~the Company’s~~our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act)) were effective as of January ~~29, 2023,~~28, 2024, based on the evaluation of these controls and procedures required by Rule 13a-15(b) or 15d-15(b) of the Exchange Act. During the first quarter, there were no changes that have materially affected or are reasonably likely to materially affect ~~the Company’s~~our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

Item 1A. Risk Factors.

See ~~the Company’s~~our most recently filed Annual Report on Form 10-K (Part I, Item 1A). There ~~has~~have been no material ~~change~~changes in this information. The risks described in the Annual Report on Form 10-K, and the “Forward-Looking Statements” in this report, are not the only risks ~~faced by the Company.~~we face. Additional risks and uncertainties may also materially affect ~~the Company’s~~our business, financial condition, or operating results. One should not consider the risk factors to be a complete discussion of risks, uncertainties, and assumptions.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Omitted pursuant to General Instruction H.

Item 3. Defaults Upon Senior Securities.

Omitted pursuant to General Instruction H.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

Item 6. Exhibits.

Certain instruments relating to long-term debt, constituting less than 10 percent of the registrant’s total assets, are not filed as exhibits herewith pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K. The registrant will ~~file~~furnish copies of such instruments to the SEC upon request of the SEC.

3.1	Certificate of Incorporation, as amended (Exhibit 3.1 to Form 10-K of the registrant for the year ended October 31, 1999, Securities and Exchange Commission file number 1-6458*)

3.2	Bylaws, as amended (Exhibit 3.2 to Form 10-K of the registrant for the year ended October 31, 1999, Securities and Exchange Commission file number 1-6458*)

31.1	Rule 13a-14(a)/15d-14(a) Certification

31.2	Rule 13a-14(a)/15d-14(a) Certification

32	Section 1350 Certifications (furnished herewith)

101.INS	Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)

101.SCH	Inline XBRL Taxonomy Extension Schema Document

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document

104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Incorporated by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.




		JOHN DEERE CAPITAL CORPORATION




Date:	February ~~23, 2023~~29, 2024	By:	/s/ Joshua A. Jepsen

			Joshua A. Jepsen
			Senior Vice President ~~and~~ (Principal Financial Officer and Principal Accounting ~~Officer~~Officer)