Before

Tax

After

Tax

(Expense)

Tax

Nine Months Ended July 30, 2023

Amount

Credit

Amount

Cumulative translation adjustment

$
914

$
11

$
925

Unrealized gain (loss) on derivatives:

Unrealized hedging gain (loss)

19

(4)

15

Reclassification of realized (gain) loss to:

Interest rate contracts – Interest expense

(52)

11

(41)

Net unrealized gain (loss) on derivatives

(33)

7

(26)

Unrealized gain (loss) on debt securities:

Unrealized holding gain (loss)

17

(4)

13

Net unrealized gain (loss) on debt securities

17

(4)

13

Retirement benefits adjustment:

Net actuarial gain (loss)

(351)

83

(268)

Reclassification of amortized amounts:

Actuarial (gain) loss – Other operating expenses

(61)

15

(46)

Prior service (credit) cost – Other operating expenses

28

(7)

21

Settlements – Other operating expenses

36

(10)

26

Net unrealized gain (loss) on retirement benefits adjustment

(348)

81

(267)

Total other comprehensive income (loss)

$
550

$
95

$
645

Before

Tax

After

Tax

(Expense)

Tax

Three Months Ended July 31, 2022

Amount

Credit

Amount

Cumulative translation adjustment

$
(267)

$
(2)

$
(269)

Unrealized gain (loss) on derivatives:

Unrealized hedging gain (loss)

1

1

Reclassification of realized (gain) loss to:

Interest rate contracts – Interest expense

(3)

1

(2)

Net unrealized gain (loss) on derivatives

(2)

1

(1)

Unrealized gain (loss) on debt securities:

Unrealized holding gain (loss)

6

(1)

5

Reclassification of realized (gain) loss – Other income

1

1

Net unrealized gain (loss) on debt securities

7

(1)

6

Retirement benefits adjustment:

Net actuarial gain (loss)

34

(9)

25

Reclassification of amortized amounts:

Actuarial (gain) loss – Other operating expenses

27

(7)

20

Prior service (credit) cost – Other operating expenses

8

(2)

6

Settlements/curtailment – Other operating expenses

36

(8)

28

Net unrealized gain (loss) on retirement benefits adjustment

105

(26)

79

Total other comprehensive income (loss)

$
(157)

$
(28)

$
(185)


	Before		Tax		After
	Tax		(Expense)		Tax
Three Months Ended January 29, 2023	Amount		Credit		Amount
Cumulative translation adjustment	$	669	$	12	$	681
Unrealized gain (loss) on derivatives:
Unrealized hedging gain (loss)		(1)				(1)
Reclassification of realized (gain) loss to:
Interest rate contracts – Interest expense		(15)		3		(12)
Net unrealized gain (loss) on derivatives		(16)		3		(13)
Unrealized gain (loss) on debt securities:
Unrealized holding gain (loss)		34		(7)		27
Net unrealized gain (loss) on debt securities		34		(7)		27
Retirement benefits adjustment:
Net actuarial gain (loss)		(1)				(1)
Reclassification to Other operating expenses through amortization of:
Actuarial (gain) loss		(21)		5		(16)
Prior service (credit) cost		9		(3)		6
Net unrealized gain (loss) on retirement benefits adjustment		(13)		2		(11)
Total other comprehensive income (loss)	$	674	$	10	$	684

Before

Tax

After

Tax

(Expense)

Tax

Nine Months Ended July 31, 2022

Amount

Credit

Amount

Cumulative translation adjustment

$
(774)

$
(10)

$
(784)

Unrealized gain (loss) on derivatives:

Unrealized hedging gain (loss)

52

(11)

41

Net unrealized gain (loss) on derivatives

52

(11)

41

Unrealized gain (loss) on debt securities:

Unrealized holding gain (loss)

(74)

16

(58)

Reclassification of realized (gain) loss – Other income

1

1

Net unrealized gain (loss) on debt securities

(73)

16

(57)

Retirement benefits adjustment:

Net actuarial gain (loss) and prior service credit (cost)

(338)

81

(257)

Reclassification of amortized amounts:

Actuarial (gain) loss – Other operating expenses

94

(24)

70

Prior service (credit) cost – Other operating expenses

22

(6)

16

Settlements/curtailment – Other operating expenses

44

(10)

34

Net unrealized gain (loss) on retirement benefits adjustment

(178)

41

(137)

Total other comprehensive income (loss)

$
(973)

$
36

$
(937)

(5) Earnings Per Share

A reconciliation of basic and diluted net income per share attributable to Deere & Company follows in millions, ~~(except~~except per share ~~amounts):~~amounts:


	Three Months Ended				Nine Months Ended				Three Months Ended
	July 30		July 31		July 30		July 31		January 28		January 29
	2023		2022		2023		2022		2024		2023
Net income attributable to Deere & Company	$	2,978	$	1,884	$	7,797	$	4,885	$	1,751	$	1,959
Average shares outstanding		290.8		304.1		294.4		305.8		279.9		297.6
Basic per share	$	10.24	$	6.20	$	26.48	$	15.97	$	6.25	$	6.58

Average shares outstanding		290.8		304.1		294.4		305.8		279.9		297.6
Effect of dilutive share-based compensation		1.3		1.6		1.5		1.9
Effect of dilutive stock options and restricted stock awards										1.2		1.5
Total potential shares outstanding		292.1		305.7		295.9		307.7		281.1		299.1
Diluted per share	$	10.20	$	6.16	$	26.35	$	15.88	$	6.23	$	6.55

Shares excluded from EPS calculation, as antidilutive		.2		.2		.1		.2		.2		.1

1210

(6) Pension and Other Postretirement ~~Employee~~ Benefits

~~The Company has~~We have several funded and unfunded defined benefit pension plans and other postretirement ~~employee~~ benefit (OPEB) plans. These plans ~~primarily health care and life insurance plans, covering its~~cover U.S. employees and ~~employees in~~ certain foreign ~~countries.~~employees. The components of net periodic pension and OPEB (benefit) cost consisted of the ~~following in millions of dollars:~~following:


	Three Months Ended				Nine Months Ended				Three Months Ended
	July 30		July 31		July 30		July 31		January 28		January 29
	2023		2022		2023		2022		2024		2023
Pension
Pensions
Service cost	$	62	$	86	$	186	$	265	$	58	$	60
Interest cost		133		85		400		242		136		133
Expected return on plan assets		(223)		(182)		(655)		(544)		(241)		(212)
Amortization of actuarial (gain) loss		(5)		31		(16)		107
Amortization of actuarial gain										(4)		(5)
Amortization of prior service cost		10		9		30		25		10		10
Settlements/curtailment				36		36		44
Net (benefit) cost	$	(23)	$	65	$	(19)	$	139
Net benefit									$	(41)	$	(14)

OPEB
Service cost	$	7	$	11	$	20	$	34	$	5	$	7
Interest cost		44		25		132		74		43		43
Expected return on plan assets		(29)		(28)		(87)		(83)		(27)		(29)
Amortization of actuarial gain		(15)		(4)		(45)		(13)		(16)		(16)
Amortization of prior service credit		(1)		(1)		(2)		(3)		(1)		(1)
Net cost	$	6	$	3	$	18	$	9	$	4	$	4

~~The reduction in the 2023 pension net cost is due to increases in the expected long-term return rates on plan assets and increases in discount rates.~~ The components of net periodic pension and OPEB (benefit) cost excluding the service cost component are included in the line item “Other operating ~~expenses” in the statements of consolidated income.~~expenses.”

During the ~~second quarter~~first three months of 2024, we contributed and expect to contribute the following amounts to our pension and OPEB plans:


	Pensions		OPEB
Contributed	$	24	$	106
Expected contributions remainder of the year		61		34

In December 2023, ~~the Canada pension plan paid~~we contributed $60 to a premium to an insurance company to irrevocably transfer the benefit obligations and administration for the majority of its retired participants. The transaction did not impact the benefits to be received by the retired participants. In connection with the transaction, the Company recognized a one-time, non-cash, pre-tax pension settlement charge of $36 millionU.S. non-union Voluntary Employees’ Beneficiary Association trust, which is included in the ~~second quarter~~OPEB contributed amount. The contribution will be used to fund salary postretirement health care benefits during the remainder of ~~2023~~ ~~related to the accelerated recognition of actuarial losses included within “Accumulated other comprehensive income (loss)” in the statements of changes in consolidated stockholders’ equity.~~

2024.

1311

(7) Segment ~~Reporting~~Data

~~Worldwide net sales and revenues,~~Information relating to operations by operating ~~profit, and identifiable assets by~~ segment ~~were as follows in millions of dollars:~~follows.

Three Months Ended

Nine Months Ended

July 30

July 31

%

July 30

July 31

%

  2023

  2022

Change

   2023

   2022

Change

Net sales and revenues:














Production & precision ag net sales

$
6,806

$
6,096

+12

$
19,826

$
14,568

+36

Small ag & turf net sales

3,739

3,635

+3

10,886

9,836

+11

Construction & forestry net sales

3,739

3,269

+14

11,053

9,161

+21

Financial services revenues

1,228

903

+36

3,375

2,637

+28

Other revenues

289

199

+45

699

839

-17

Total net sales and revenues

$
15,801

$
14,102

+12

$
45,839

$
37,041

+24

Operating profit:

Production & precision ag

$
1,782

$
1,293

+38

$
5,160

$
2,646

+95

Small ag & turf

732

552

+33

2,028

1,443

+41

Construction & forestry

716

514

+39

2,179

1,599

+36

Financial services

286

287

565

864

-35

Total operating profit

3,516

2,646

+33

9,932

6,552

+52

Reconciling items

98

(108)

29

(303)

Income taxes

(636)

(654)

-3

(2,164)

(1,364)

+59

Net income attributable to Deere & Company

$
2,978

$
1,884

+58

$
7,797

$
4,885

+60

Intersegment sales and revenues:

Production & precision ag net sales

$
9

$
5

+80

$
21

$
15

+40

Small ag & turf net sales

2

2

10

8

+25

Construction & forestry net sales

Financial services revenues

217

81

+168

612

214

+186


	Three Months Ended
	January 28		January 29		%
	2024		2023		Change
Net sales and revenues:
Production & precision ag net sales	$	4,849	$	5,198	-7
Small ag & turf net sales		2,425		3,001	-19
Construction & forestry net sales		3,212		3,203
Financial services revenues		1,376		1,040	+32
Other revenues		323		210	+54
Total net sales and revenues	$	12,185	$	12,652	-4
Operating profit:
Production & precision ag	$	1,045	$	1,208	-13
Small ag & turf		326		447	-27
Construction & forestry		566		625	-9
Financial services		257		238	+8
Total operating profit		2,194		2,518	-13
Reconciling items		26		(22)
Income taxes		(469)		(537)	-13
Net income attributable to Deere & Company	$	1,751	$	1,959	-11

Intersegment sales and revenues:
Production & precision ag net sales	$	8	$	5	+60
Small ag & turf net sales		1		3	-67
Construction & forestry net sales
Financial services revenues		176		204	-14

Operating profit for ~~production~~PPA, SAT, and ~~precision ag, small ag and turf, and construction and forestry~~CF is income from continuing operations before ~~reconciling items~~corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit ~~for~~of financial services includes the effect of interest expense and foreign exchange gains and losses. Reconciling items to net income are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and OPEB benefit (cost) amounts excluding the service cost component, equity in income of unconsolidated affiliates, and net income attributable to noncontrolling interests.


Identifiable assets were as follows in millions of dollars:
Identifiable operating assets were as follows:
	July 30		October 30		July 31		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Production & precision ag	$	9,523	$	8,414	$	8,728	$	9,059	$	8,734	$	9,393
Small ag & turf		4,482		4,451		4,361		4,426		4,348		4,893
Construction & forestry		7,415		6,754		6,824		7,371		7,139		7,232
Financial services		68,850		58,864		56,008		69,900		70,732		59,721
Corporate		13,127		11,547		10,896		10,615		13,134		10,381
Total assets	$	103,397	$	90,030	$	86,817	$	101,371	$	104,087	$	91,620

(8) Financing Receivables

~~The Company monitors~~We monitor the credit quality of financing receivables based on delinquency status. Past due balances of financing receivables still accruing finance income represent the total balance held (principal plus accrued interest) with any payment amounts 30 days or more past the contractual payment due date. Non-performing financing receivables represent receivables for which the Company has ceased accruing finance income. The Company ceases accruing finance income when these receivables are generally 90 days delinquent. Generally, when receivables are 120 days delinquent the estimated uncollectible amount from the customer is written off to the allowance for credit losses. Finance income for non-performing receivables is recognized on a cash basis. Accrual of finance income is generally resumed when the receivable becomes contractually current and collection is reasonably assured.status, defined as follows:

●

Past due balances represent any payments 30 days or more past the due date.

●

Non-performing financing receivables represent receivables for which we have stopped accruing finance income. This generally occurs when receivables are 90 days delinquent.

●

Write-offs generally occur when receivables are 120 days delinquent. In these situations, the estimated uncollectible amount is written off to the allowance for credit losses. Any expected recovery is presented as non-performing.

1412

The credit quality analysis of retail notes, financing leases, and revolving charge accounts (collectively, retail customer receivables) by year of origination was as ~~follows in millions of dollars:~~follows:


	July 30, 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
Retail customer receivables:
Agriculture and turf
Current	$	10,554	$	9,701	$	5,792	$	2,779	$	1,080	$	402	$	4,388	$	34,696	$	3,248	$	13,626	$	7,731	$	4,577	$	2,032	$	931	$	2,798	$	34,943
30-59 days past due		59		85		53		26		13		4		21		261		5		122		66		47		22		11		71		344
60-89 days past due		19		30		17		10		5		1		7		89		1		50		26		15		7		5		16		120
90+ days past due				1												1				1		1		3		4						9
Non-performing		19		80		71		36		24		27		8		265				49		95		66		34		42		11		297
Construction and forestry
Current		2,167		2,200		1,284		449		124		39		114		6,377		803		2,698		1,743		911		276		109		101		6,641
30-59 days past due		39		46		38		13		5		2		4		147		8		73		46		26		8		3		5		169
60-89 days past due		12		23		16		8		2		1		1		63				26		20		13		6		3		2		70
90+ days past due				2		1		1								4						2		1				1				4
Non-performing		20		83		61		26		11		5		1		207		1		67		86		48		20		9		2		233
Total	$	12,889	$	12,251	$	7,333	$	3,348	$	1,264	$	481	$	4,544	$	42,110
Total retail customer receivables																	$	4,066	$	16,712	$	9,816	$	5,707	$	2,409	$	1,114	$	3,006	$	42,830

October 30, 2022

2022

2021

2020

2019

2018

Prior
Years

Revolving Charge Accounts

Total

Retail customer receivables:
























Agriculture and turf

Current

$
13,500

$
7,984

$
4,091

$
1,875

$
785

$
200

$
4,111

$
32,546

30-59 days past due

46

63

36

17

7

3

19

191

60-89 days past due

14

25

13

6

2

1

5

66

90+ days past due

1

1

Non-performing

27

60

44

28

18

19

8

204

Construction and forestry

Current

2,964

1,974

842

292

73

12

108

6,265

30-59 days past due

53

52

23

9

2

1

3

143

60-89 days past due

19

16

7

3

1

1

47

90+ days past due

1

4

1

3

1

10

Non-performing

25

61

34

19

7

3

149

Total

$
16,650

$
10,239

$
5,091

$
2,252

$
895

$
240

$
4,255

$
39,622


	July 31, 2022																October 29, 2023
	2022		2021		2020		2019		2018		Prior Years		Revolving Charge Accounts		Total		2023		2022		2021		2020		2019		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf
Current	$	9,161	$	9,169	$	4,713	$	2,234	$	935	$	378	$	3,962	$	30,552	$	15,191	$	8,430	$	5,120	$	2,334	$	853	$	280	$	4,526	$	36,734
30-59 days past due		40		70		38		23		8		4		18		201		62		75		39		21		9		3		29		238
60-89 days past due		15		24		15		7		3		1		5		70		18		26		18		10		4		2		9		87
90+ days past due																		2		1		3		3								9
Non-performing		17		62		48		37		19		27		7		217		30		78		62		33		22		22		8		255
Construction and forestry
Current		2,336		2,249		1,004		382		106		20		102		6,199		2,927		1,961		1,084		353		84		29		119		6,557
30-59 days past due		47		54		26		12		4		1		3		147		49		34		27		9		4				4		127
60-89 days past due		14		14		12		4		1				1		46		19		14		12		5		2				2		54
90+ days past due				11		3		1				3				18				6		1						1				8
Non-performing		13		63		49		25		9		4		1		164		42		80		55		23		9		4		1		214
Total	$	11,643	$	11,716	$	5,908	$	2,725	$	1,085	$	438	$	4,099	$	37,614
Total retail customer receivables																	$	18,340	$	10,705	$	6,421	$	2,791	$	987	$	341	$	4,698	$	44,283


	January 29, 2023
	2023		2022		2021		2020		2019		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf
Current	$	2,939	$	12,435	$	7,228	$	3,660	$	1,600	$	823	$	2,753	$	31,438
30-59 days past due		2		39		39		54		13		44		28		219
60-89 days past due		1		15		14		20		5		15		6		76
90+ days past due				1				3		1						5
Non-performing				40		58		41		27		34		8		208
Construction and forestry
Current		674		2,692		1,702		684		224		80		99		6,155
30-59 days past due		2		18		29		36		16		52		5		158
60-89 days past due				9		17		18		8		24		2		78
90+ days past due				1		2		1		2		1				7
Non-performing				46		58		30		16		7		1		158
Total retail customer receivables	$	3,618	$	15,296	$	9,147	$	4,547	$	1,912	$	1,080	$	2,902	$	38,502

1513

The credit quality analysis of wholesale receivables by year of origination was as ~~follows in millions of dollars:~~follows:


	July 30, 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	$	449	$	139	$	28	$	7	$	1	$	1	$	4,940	$	5,565	$	266	$	463	$	68	$	6	$	3	$	1	$	5,757	$	6,564
30+ days past due																				1												1
Non-performing										1						1												1				1
Construction and forestry
Current		20		6		23		1				1		752		803		6		14		4		19				1		863		907
30+ days past due
Non-performing
Total	$	469	$	145	$	51	$	8	$	2	$	2	$	5,692	$	6,369
Total wholesale receivables																	$	272	$	478	$	72	$	25	$	3	$	3	$	6,620	$	7,473

October 30, 2022

2022

2021

2020

2019

2018

Prior
Years

Revolving

Total

Wholesale receivables:
























Agriculture and turf

Current

$
387

$
64

$
27

$
4

$
2

$
2,371

$
2,855

30+ days past due

Non-performing

1

1

Construction and forestry

Current

7

29

2

1

1

377

417

30+ days past due

Non-performing

Total

$
394

$
93

$
29

$
6

$
3

$
2,748

$
3,273


	July 31, 2022																October 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	$	289	$	99	$	34	$	6	$	1	$	1	$	2,022	$	2,452	$	631	$	93	$	21	$	4	$	1	$	160	$	5,175	$	6,085
30+ days past due
Non-performing								1								1										1						1
Construction and forestry
Current		11		32		3		1				1		283		331		23		5		20						76		712		836
30+ days past due												1				1
Non-performing
Total	$	300	$	131	$	37	$	8	$	1	$	3	$	2,305	$	2,785
Total wholesale receivables																	$	654	$	98	$	41	$	4	$	2	$	236	$	5,887	$	6,922


	January 29, 2023
	2023		2022		2021		2020		2019		Prior Years		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current	$	115	$	285	$	48	$	21	$	4	$	1	$	2,654	$	3,128
30+ days past due
Non-performing								1								1
Construction and forestry
Current		7		7		24		2				1		459		500
30+ days past due
Non-performing
Total wholesale receivables	$	122	$	292	$	72	$	24	$	4	$	2	$	3,113	$	3,629

1614

An analysis of the allowance for credit losses and investment in financing receivables ~~in millions of dollars during the periods~~ follows:

Retail Notes

Revolving

& Financing

Charge

Wholesale

Leases

Accounts

Receivables

Total

Three Months Ended July 30, 2023

Allowance:











Beginning of period balance

$
157

$
19

$
4

$
180

Provision

14

11

25

Write-offs

(23)

(18)

(41)

Recoveries

5

6

11

Translation adjustments

1

1

End of period balance

$
154

$
18

$
4

$
176

Nine Months Ended July 30, 2023

Allowance:


Beginning of period balance

$
299

$
22

$
4

$
325

Provision

59

15

1

75

Provision transferred to held for sale

(142)

(142)

Provision (credit) subtotal

(83)

15

1

(67)

Write-offs

(60)

(36)

(96)

Recoveries

15

17

32

Translation adjustments

(17)

(1)

(18)

End of period balance

$
154

$
18

$
4

$
176

Financing receivables:

End of period balance

$
37,566

$
4,544

$
6,369

$
48,479


	Retail Notes		Revolving						Three Months Ended January 28, 2024
	& Financing		Charge		Wholesale				Retail Notes		Revolving
	Leases		Accounts		Receivables		Total		& Financing		Charge		Wholesale
Three Months Ended July 31, 2022
									Leases		Accounts		Receivables		Total
Allowance:
Beginning of period balance	$	168	$	17	$	5	$	190	$	172	$	21	$	4	$	197
Provision (credit)		14		3		(1)		16		35		(2)				33
Write-offs		(12)		(10)				(22)		(31)		(11)				(42)
Recoveries		8		7				15		1		8				9
Translation adjustments		3						3						(2)		(2)
End of period balance	$	181	$	17	$	4	$	202	$	177	$	16	$	2	$	195

Nine Months Ended July 31, 2022
Allowance:
Beginning of period balance	$	138	$	21	$	7	$	166
Provision (credit)		66		(4)		(3)		59
Write-offs		(47)		(22)				(69)
Recoveries		17		22				39
Translation adjustments		7						7
End of period balance	$	181	$	17	$	4	$	202
Financing receivables:
End of period balance	$	33,515	$	4,099	$	2,785	$	40,399	$	39,824	$	3,006	$	7,473	$	50,303


	Three Months Ended January 29, 2023
	Retail Notes		Revolving
	& Financing		Charge		Wholesale
	Leases		Accounts		Receivables		Total
Allowance:
Beginning of period balance	$	299	$	22	$	4	$	325
Provision (credit)		15		(4)				11
Provision transferred to held for sale		(142)						(142)
Provision (credit)		(127)		(4)				(131)
Write-offs		(18)		(7)				(25)
Recoveries		4		5		1		10
Translation adjustments		(18)				(1)		(19)
End of period balance	$	140	$	16	$	4	$	160

Financing receivables:
End of period balance	$	35,600	$	2,902	$	3,629	$	42,131

The allowance for credit losses remained generally flat in the first quarter of 2024. In the first quarter of 2023, ~~the Company~~we determined that the financial services business in Russia met the held for sale criteria. The financing receivables in Russia were reclassified to “Other ~~assets” and the~~assets.” The associated allowance for credit losses was reversed inand a valuation allowance for the ~~first quarter of 2023.~~assets held for sale was recorded. These operations were sold in the second quarter of 2023 (see Note 20).

Write-offs by year of origination were as follows:


	Three Months Ended January 28, 2024
	2024	2023		2022		2021		2020		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf		$	2	$	4	$	3	$	4	$	1	$	9	$	23
Construction and forestry			6		7		2		1		1		2		19
Total retail customer receivables		$	8	$	11	$	5	$	5	$	2	$	11	$	42

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.

1715

The ~~allowance for credit losses decreased slightly~~ending amortized cost of modified loans with borrowers experiencing financial difficulty during the three months ended January 28, 2024 were $17, of which $16 were current and $1 were non-performing. These modifications represented 0.03 percent of our financing receivable portfolio at January 28, 2024.

Defaults and subsequent write-offs of loans modified in the ~~third quarter of 2023 as strong fundamentals within~~prior twelve months were not significant during the ~~agriculture market continued~~three months ended January 28, 2024. In addition, at January 28, 2024, we had no commitments to benefit the portfolio. Excluding the portfolio in Russia, the allowance for the first nine months of 2023 increased slightly as higher portfolio balances and higher expected losses on turf and construction customer accounts offset the favorable benefits in the agricultural customer accounts. The Company continuesprovide additional financing 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.

these customers.

(9) Securitization of Financing Receivables

Our funding strategy includes receivable securitizations, which allows us to receive cash for financing receivables immediately. While these securitization programs are administered in various forms, they are accomplished in the following basic steps:

1.We transfer financing receivables into a bankruptcy-remote special purpose entity (SPE).

2.The SPE issues debt to investors. The debt is secured by the financing receivables.

3.Investors are paid back based on cash receipts from the financing receivables.

As a part of ~~its overall funding strategy,~~step 1, these receivables are legally isolated from the ~~Company periodically transfers certain~~claims of our general creditors. This ensures cash receipts from the financing receivables ~~(retail notes) into VIEs that~~ are ~~special purpose entities (SPEs), or non-VIE banking operations, as part of its asset-backed securities programs (securitizations).~~accessible to pay back securitization program investors. The structure of these transactions ~~is such that the transfer of the retail notes~~ does not meet the accounting criteria for ~~sales~~a sale of ~~receivables, and is, therefore,~~receivables. As a result, they are accounted for as a secured borrowing. ~~SPEs utilized in securitizations of retail notes differ from other entities included in the Company’s consolidated statements because the assets they hold~~The receivables and borrowings remain on our balance sheet and are ~~legally isolated. Use of the assets held by the SPEs or the non-VIEs is restricted by terms of the documents governing the~~separately reported as “Financing receivables securitized – net” and “Short-term securitization ~~transactions.~~borrowings,” respectively.

The components of ~~consolidated restricted assets, secured borrowings, and other liabilities related to secured borrowings in~~ securitization ~~transactions~~programs were as ~~follows in millions of dollars:~~follows:


	July 30		October 30		July 31		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Financing receivables securitized (retail notes)	$	7,019	$	5,952	$	5,156	$	6,418	$	7,357	$	5,102
Allowance for credit losses		(18)		(16)		(15)		(18)		(22)		(13)
Other assets (primarily restricted cash)		153		155		136		140		152		97
Total restricted securitized assets	$	7,154	$	6,091	$	5,277	$	6,540	$	7,487	$	5,186

Short-term securitization borrowings	$	6,608	$	5,711	$	4,920	$	6,116	$	6,995	$	4,864
Accrued interest on borrowings		15		6		4		10		13		6
Total liabilities related to restricted securitized assets	$	6,623	$	5,717	$	4,924	$	6,126	$	7,008	$	4,870

(10) Inventories

A majority of ~~inventory~~inventories owned by ~~Deere & Company and its U.S. equipment subsidiaries~~us are valued at cost on the “last-in, first-out” (LIFO) basis. If all ~~of the Company’s~~ inventories had been valued on a “first-in, first-out” (FIFO) basis, the estimated inventories by major classification ~~in millions of dollars~~ would have been as follows:

July 30

October 30

July 31

2023

2022

2022

Raw materials and supplies

$
4,492

$
4,442

$
4,508

Work-in-process

1,307

1,190

1,621

Finished goods and parts

6,164

5,363

5,434

Total FIFO value

11,963

10,995

11,563

Less adjustment to LIFO value

2,613

2,500

2,442

Inventories

$
9,350

$
8,495

$
9,121


	January 28		October 29		January 29
	2024		2023		2023
Raw materials and supplies	$	4,117	$	4,080	$	4,975
Work-in-process		1,223		1,010		1,478
Finished goods and parts		6,146		5,435		6,347
Total FIFO value		11,486		10,525		12,800
Excess of FIFO over LIFO		2,549		2,365		2,744
Inventories	$	8,937	$	8,160	$	10,056

1816

(11) Goodwill and Other Intangible Assets – Net

The changes in amounts of goodwill by operating segments were as ~~follows in millions of dollars:~~

Production &

Small Ag

Construction


Precision Ag

& Turf

& Forestry

Total

Goodwill at October 31, 2021

$
542

$
265

$
2,484

$
3,291

Acquisitions

132

69

597

798

Translation adjustments

(23)

(11)

(301)

(335)

Goodwill at July 31, 2022

$
651

$
323

$
2,780

$
3,754

Goodwill at October 30, 2022

$
646

$
318

$
2,723

$
3,687

Acquisitions

41

39

80

Translation adjustments

23

8

196

227

Goodwill at July 30, 2023

$
710

$
365

$
2,919

$
3,994

follows. There were no accumulated goodwill impairment ~~losses in the reported periods.~~losses.


	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Total
Goodwill at October 30, 2022	$	646	$	318	$	2,723	$	3,687
Translation adjustments		15		7		182		204
Goodwill at January 29, 2023	$	661	$	325	$	2,905	$	3,891

Goodwill at October 29, 2023	$	702	$	363	$	2,835	$	3,900
Translation adjustments		4		2		60		66
Goodwill at January 28, 2024	$	706	$	365	$	2,895	$	3,966

The components of other intangible assets were as ~~follows in millions of dollars:~~follows:


	July 30		October 30		July 31		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Amortized intangible assets:
Customer lists and relationships	$	524	$	493	$	507	$	509	$	501	$	522
Technology, patents, trademarks, and other		1,415		1,301		1,320		1,412		1,387		1,387
Total at cost		1,939		1,794		1,827		1,921		1,888		1,909
Less accumulated amortization:
Customer lists and relationships		201		166		162		207		195		184
Technology, patents, trademarks, and other		539		410		384		602		560		470
Total accumulated amortization		740		576		546		809		755		654
Other intangible assets – net	$	1,199	$	1,218	$	1,281	$	1,112	$	1,133	$	1,255

The amortization of other intangible assets in the ~~third~~first quarter of 2024 and ~~the first nine months of~~ 2023 was $42 ~~million~~ and ~~$126 million, and for the third quarter and the first nine months of 2022 was $42 million and $104 million,~~$39, respectively. The estimated amortization expense for the next five years is as ~~follows in millions of dollars:~~follows: remainder of ~~2023 – $57,~~ 2024 – ~~$179,~~$131, 2025 – ~~$147,~~$144, 2026 – ~~$122,~~$121, 2027 – ~~$120, and~~$119, 2028 – ~~$88.~~$87, and 2029 – $74.

(12)Short-Term Borrowings

Short-term borrowings were as ~~follows in millions of dollars:~~follows:


	July 30		October 30		July 31		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Commercial paper	$	9,003	$	4,703	$	6,035	$	8,378	$	9,100	$	6,425
Notes payable to banks		352		402		427		310		483		303
Finance lease obligations due within one year		23		21		21		27		25		23
Long-term borrowings due within one year		7,765		7,466		7,693		8,402		8,331		7,378
Short-term borrowings	$	17,143	$	12,592	$	14,176	$	17,117	$	17,939	$	14,129

1917

(13)Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses ~~were as follows in millions~~consisted of ~~dollars:~~the following:


	July 30		October 30		July 31		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Accounts payable:
Trade payables	$	3,308	$	3,894	$	3,577	$	3,184	$	3,467	$	3,616
Payables to unconsolidated affiliates		4		11		5
Dividends payable		365		343		347		413		388		358
Operating lease liabilities		308		302		251		293		281		305
Deposits withheld from dealers and merchants		158		163		154		153		163		153
Payables to unconsolidated affiliates								6		6		10
Other		173		214		162		183		153		156
Accrued expenses:
Employee benefits								1,107		2,152		1,015
Product warranties								1,589		1,610		1,444
Accrued taxes								1,364		1,558		1,336
Derivative liabilities								744		1,130		891
Dealer sales discounts		902		1,044		586		243		1,243		256
Product warranties		1,619		1,427		1,398
Employee benefits		1,808		1,528		1,280
Accrued taxes		1,595		1,255		1,171
Extended warranty premium								1,047		1,021		901
Unearned revenue (contractual liability)								700		676		601
Unearned operating lease revenue		428		399		378		456		451		406
Unearned revenue (contractual liability)		754		557		586
Extended warranty premium		999		866		839
Accrued interest		402		288		260		502		434		371
Derivative liabilities		948		1,231		667
Other		1,569		1,300		1,325		1,377		1,397		1,289
Total accounts payable and accrued expenses	$	15,340	$	14,822	$	12,986
Accounts payable and accrued expenses							$	13,361	$	16,130	$	13,108

Amounts are presented net of eliminations, which primarily consist of dealer sales incentives with a right of set-off against trade receivables of ~~$2,240 million~~$2,410 at ~~July 30, 2023, $1,280 million~~January 28, 2024, $2,228 at October ~~30, 2022,~~29, 2023, and ~~$1,370 million~~$1,540 at ~~July 31, 2022.~~January 29, 2023. Other eliminations were made for accrued taxes and other accrued expenses.

(14)Long-Term Borrowings

Long-term borrowings ~~were as follows in millions of dollars:~~consisted of:


	July 30		October 30		July 31		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Underwritten term debt
U.S. dollar notes and debentures:
2.75% notes due 2025	$	700	$	700	$	700	$	700	$	700	$	700
6.55% debentures due 2028		200		200		200		200		200		200
5.375% notes due 2029		500		500		500		500		500		500
3.10% notes due 2030		700		700		700		700		700		700
8.10% debentures due 2030		250		250		250		250		250		250
7.125% notes due 2031		300		300		300		300		300		300
3.90% notes due 2042		1,250		1,250		1,250		1,250		1,250		1,250
2.875% notes due 2049		500		500		500		500		500		500
3.75% notes due 2050		850		850		850		850		850		850
Euro notes:
.5% notes due 2023 (€500 principal)						510
1.375% notes due 2024 (€800 principal)				797		816						871
1.85% notes due 2028 (€600 principal)		659		598		612		651		634		653
2.20% notes due 2032 (€600 principal)		659		598		612		651		634		653
1.65% notes due 2039 (€650 principal)		713		648		663		705		687		708
Serial issuances
Medium-term notes: (principal as of: July 30, 2023 - $30,348, October 30, 2022 - $25,629, July 31, 2022 - $22,983)		29,355		24,604		22,593
Serial issuances:
Medium-term notes								31,001		29,638		25,618
Other notes and finance lease obligations		1,605		1,223		1,191		1,810		1,769		1,440
Less debt issuance costs and debt discounts		(129)		(122)		(115)		(135)		(135)		(122)
Long-term borrowings	$	38,112	$	33,596	$	32,132	$	39,933	$	38,477	$	35,071

Medium-term notes ~~serially~~ due through ~~2032~~2033 are primarily offered by prospectus and issued at fixed and variable rates. ~~These~~The principal balances of the medium-term notes ~~are presented in the table above with fair value adjustments related to interest rate swaps.~~were $31,808, $30,902, and $26,367 at January 28, 2024, October 29, 2023, and January 29, 2023, respectively. All outstanding notes and debentures are senior unsecured borrowings and rank equally with each other.

2018

(15)Leases - Lessor

~~The Company leases~~We lease equipment manufactured or sold by ~~the Company and a limited amount of non-John~~us through John Deere ~~equipment to retail customers through sales-type, direct financing, and operating leases.~~Financial. Sales-type and direct financing leases are reported in ~~Financing~~“Financing receivables – ~~net on the consolidated balance sheets, while operating~~net.” Operating leases are reported in ~~Equipment~~“Equipment on operating leases – net.”

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


	Three Months Ended				Nine Months Ended				Three Months Ended
	July 30		July 31		July 30		July 31		January 28		January 29
	2023		2022		2023		2022		2024		2023
Sales-type and direct finance lease revenues	$	41	$	39	$	120	$	113	$	47	$	41
Operating lease revenues		332		326		974		991		339		321
Variable lease revenues				6		11		20		4		6
Total lease revenues	$	373	$	371	$	1,105	$	1,124	$	390	$	368

(16)Commitments and Contingencies

A standard warranty is provided as assurance that the equipment will function as intended. The ~~Company determines its total~~standard warranty ~~liability~~period varies by ~~applying~~product and region. At the time a sale is recognized, we record an estimate of future warranty costs based on historical claims rate experience ~~to the~~and estimated ~~amount of equipment that has been sold and is still~~population under ~~warranty based on dealer inventories and retail sales. The historical claims rate is determined by a review of five-year claims costs and current quality developments.~~warranty.

The premiums for extended warranties are recognized in other income in the statements of consolidated income in proportion to the costs expected to be incurred over the contract period. The unamortized extended warranty premiums (deferred revenue) included in the following table totaled $999 million and $839 million at July 30, 2023 and July 31, 2022, respectively.

A reconciliation of the changes in the warranty liability ~~and unearned premiums was as follows in millions of dollars:~~follows:


	Three Months Ended				Nine Months Ended				Three Months Ended
	July 30		July 31		July 30		July 31		January 28		January 29
	2023		2022		2023		2022		2024		2023
Beginning of period balance	$	2,511	$	2,095	$	2,293	$	2,086	$	1,610	$	1,427
Payments		(314)		(240)		(851)		(657)
Amortization of premiums received		(75)		(70)		(221)		(200)
Accruals for warranties		363		358		1,010		762
Premiums received		123		103		338		277
Warranty claims paid										(309)		(262)
New product warranty accruals										281		256
Foreign exchange		10		(10)		49		(32)		7		23
End of period balance	$	2,618	$	2,236	$	2,618	$	2,236	$	1,589	$	1,444

~~At July 30, 2023, the Company had $201 million of~~The costs for extended warranty programs are recognized as incurred.

In certain international markets, we provide guarantees ~~issued~~ to banks ~~outside the U.S. and Canada related to third-party receivables~~ for the retail financing of John Deere equipment. ~~The Company~~At January 28, 2024, the notional value of these guarantees was $166. We may ~~recover a portion of any required payments incurred under these agreements from repossession of~~repossess the equipment collateralizing the receivables. At ~~July 30, 2023,~~January 28, 2024, the accrued losses under these agreements were not material.

We also had other miscellaneous contingent liabilities and guarantees totaling approximately $115 at January 28, 2024. The accrued liability for these contingencies was not material at January 28, 2024.

At ~~July 30, 2023, the Company~~January 28, 2024, we had commitments of ~~$649 million~~$597 for the construction and acquisition of property and equipment. Also, at ~~July 30, 2023, the Company~~January 28, 2024, we had restricted assets of ~~$270 million,~~$214, classified as ~~Other~~“Other assets.”

The Company also had other miscellaneous contingent liabilities and guarantees totaling approximately $115 million at July 30, 2023. The accrued liability for these contingencies was not material at July 30, 2023.

~~The Company is~~We are subject to various unresolved legal actions which arise in the normal course of its business, the most prevalent of which relate to product liability (including asbestos-related liability), retail credit, employment, patent, trademark, and antitrust matters.actions. The ~~Company believes~~accrued losses on these matters are not material. We believe the reasonably possible range of losses for these unresolved legal actions would not have a material effect on ~~its consolidated~~our financial statements.

The most prevalent legal claims relate to product liability (including asbestos-related liability), retail credit, employment, patent, trademark, and antitrust matters.

2119

(17) Fair Value Measurements

The fair values of financial instruments that do not approximate the carrying values were as ~~follows in millions of dollars.~~follows. Long-term borrowings exclude finance lease liabilities.

July 30, 2023

October 30, 2022

July 31, 2022

Carrying
Value

Fair
Value

Carrying
Value

Fair
Value

Carrying
Value

Fair
Value

Financing receivables – net

$
41,302

$
40,675

$
36,634

$
35,526

$
35,056

$
34,158

Financing receivables securitized – net

7,001

6,818

5,936

5,698

5,141

4,990

Short-term securitization borrowings

6,608

6,538

5,711

5,577

4,920

4,862

Long-term borrowings due within one year

7,765

7,568

7,466

7,322

7,693

7,608

Long-term borrowings

38,064

37,121

33,566

31,852

32,101

31,741


	January 28, 2024				October 29, 2023				January 29, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Financing receivables – net	$	43,708	$	43,236	$	43,673	$	42,777	$	36,882	$	35,894
Financing receivables securitized – net		6,400		6,225		7,335		7,056		5,089		4,869
Short-term securitization borrowings		6,116		6,104		6,995		6,921		4,864		4,785
Long-term borrowings due within one year		8,402		8,283		8,331		8,156		7,378		7,220
Long-term borrowings		39,878		39,321		38,428		36,873		35,035		34,149

Fair value measurements above were Level 3 for all financing receivables and Level 2 for all borrowings.

Fair values of the financing 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 financing receivables. The fair values of the remaining financing receivables approximated the carrying amounts.

Fair values of long-term borrowings and short-term securitization borrowings were based on current market quotes for identical or similar borrowings and credit risk, or on the discounted values of their related cash flows at current market interest rates. ~~Certain long-term borrowings have been swapped to current variable interest rates. The carrying values of these long-term borrowings included adjustments related to fair value hedges.~~

Assets and liabilities measured at fair value on a recurring basis ~~in millions of dollars follow. The Company’s~~follow, excluding our cash equivalents, which were carried at a cost that approximates fair value and consisted of money market funds and time ~~deposits, are excluded as these assets were carried at cost that approximates fair value.~~deposits.

July 30

October 30

July 31

2023

2022

2022

Level 1:

Marketable securities

International equity securities

$
3

$
3

$
2

U.S. equity fund

101

70

75

U.S. fixed income fund

85

U.S. government debt securities

63

62

63

Total Level 1 marketable securities

252

135

140

Level 2:

Marketable securities

U.S. government debt securities

134

121

134

Municipal debt securities

69

63

70

Corporate debt securities

221

200

213

International debt securities

2

60

1

Mortgage-backed securities

163

155

161

Total Level 2 marketable securities

589

599

579

Other assets - Derivatives

324

373

280

Accounts payable and accrued expenses - Derivatives

948

1,231

667

Level 3:

Accounts payable and accrued expenses - Deferred consideration

202

236

252


	January 28		October 29		January 29
	2024		2023		2023
Level 1:
Marketable securities
International equity securities	$	5	$	3	$	2
International mutual funds securities		57		101
U.S. equity fund		105		86		86
U.S. fixed income fund		34		32		118
U.S. government debt securities		274		78		64
Total Level 1 marketable securities		475		300		270

Level 2:
Marketable securities
Corporate debt securities		220		244		209
International debt securities		87		1		18
Mortgage-backed securities		161		185		157
Municipal debt securities		69		75		71
U.S. government debt securities		124		141		127
Total Level 2 marketable securities		661		646		582
Other assets – Derivatives		253		292		360
Accounts payable and accrued expenses – Derivatives		744		1,130		891

Level 3:
Accounts payable and accrued expenses – Deferred consideration		176		186		225

The mortgage-backed securities are primarily issued by U.S. government sponsored enterprises.

2220

The contractual maturities of debt securities at ~~July 30, 2023 in millions of dollars are shown below.~~ January 28, 2024 follow:


	Amortized		Fair
	Cost		Value
Due in one year or less	$	22	$	21
Due after one through five years		242		194
Due after five through 10 years		421		398
Due after 10 years		192		161
Mortgage-backed securities		189		161
Debt securities	$	1,066	$	935

Actual maturities may differ from contractual maturities because some securities may be called or prepaid. ~~Unrealized losses were not recognized in income due to the ability~~Mortgage-backed securities contain prepayment provisions and ~~intent to hold to maturity. Because of the potential for prepayment on mortgage-backed securities, they~~ are not categorized by contractual maturity.

Amortized

Fair

Cost

Value

Due in one year or less

$
25

$
24

Due after one through five years

130

121

Due after five through 10 years

193

170

Due after 10 years

211

174

Mortgage-backed securities

194

163

Debt securities

$
753

$
652

Fair value, nonrecurring Level 3 measurements from impairments, excluding financing receivables with specific allowances which were not significant, were as follows in millions of dollars. Inventories and property and equipment – net fair values for October 30, 2022 represent the fair value assessment at July 31, 2022.

Fair Value

Losses

Three Months Ended

Nine Months Ended

July 30

October 30

July 31

July 30

July 31

July 30

July 31


2023

2022

2022

2023

2022

2023

2022

Inventories

$
19

$
13

$
4

$
12

Property and equipment – net

15

41

Other intangible assets – net

28

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

Marketable securities – The portfolio of investments is valued on a market approach (matrix pricing model) in which all significant inputs are observable or can be derived from or corroborated by observable market data such as interest rates, yield curves, volatilities, credit risk, and prepayment speeds. Funds are valued using ~~closing~~the fund’s net asset value, based on the fair value of the underlying securities. International debt securities are valued using quoted prices for identical assets in ~~the active market in which the investment trades.~~inactive markets.

Derivatives – ~~The Company’s~~Our derivative financial instruments consist of interest rate contracts (swaps), foreign currency exchange contracts (futures, 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.

Financing 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).

~~Inventories – The impairment was based on net realizable value.~~

~~Property and equipment - net – The valuations were based on cost and market approaches. The inputs include replacement cost estimates adjusted for physical deterioration and economic obsolescence.~~

~~Other intangible assets - net – The Company considered external valuations based on the Company’s probability weighted cash flow analysis.~~

(18) Derivative Instruments

~~The fair value~~Fair values of ~~the Company’s~~our derivative instruments and the associated notional amounts were as ~~follows in millions of dollars.~~follows. Assets are recorded in “Other ~~assets” on the consolidated balance sheets,~~assets,” while liabilities are recorded in “Accounts payable and accrued expenses.”

July 30, 2023

October 30, 2022

July 31, 2022

Fair Value

Fair Value

Fair Value

Notional

Assets

Liabilities

Notional

Assets

Liabilities

Notional

Assets

Liabilities

Cash flow hedges:





















Interest rate contracts

$
1,500

$
48

$
3

$
1,950

$
87

$
2,350

$
59

$
1

Fair value hedges:

Interest rate contracts

12,160

4

729

10,112

$
1,004

8,303

23

433

Not designated as hedging instruments:

Interest rate contracts

13,233

221

109

10,568

212

107

9,880

163

79

Foreign exchange contracts

8,630

51

82

8,185

66

118

7,457

30

149

Cross-currency interest rate contracts

155

25

260

8

2

276

5

5

The amounts recorded in the consolidated balance sheet 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 Amount

Cumulative Fair Value

Carrying Amount of

Cumulative Fair Value

of Hedged Item

Hedging Amount

Formerly Hedged Item

Hedging Amount

July 30, 2023

Short-term borrowings

$
2,324

$
25

Long-term borrowings

$
11,379

$
(728)

6,319

(265)

October 30, 2022

Short-term borrowings

$
2,515

$
15

Long-term borrowings

$
9,060

$
(1,006)

5,520

(19)

July 31, 2022

Short-term borrowings

$
2,605

$
5

Long-term borrowings

$
7,835

$
(430)

5,728

39


	January 28, 2024						October 29, 2023						January 29, 2023
			Fair Value						Fair Value						Fair Value
	Notional		Assets		Liabilities		Notional		Assets		Liabilities		Notional		Assets		Liabilities
Cash flow hedges:
Interest rate contracts	$	2,200	$	27	$	4	$	1,500	$	45			$	1,950	$	69

Fair value hedges:
Interest rate contracts		12,633		58		592		12,691			$	970		10,802		21	$	678

Not designated as hedging instruments:
Interest rate contracts		14,200		129		82		13,853		169		98		11,147		188		97
Foreign exchange contracts		7,856		39		53		8,117		75		54		9,304		71		110
Cross-currency interest rate contracts		189				13		176		3		8		234		11		6

2421

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


	Active Hedging Relationships				Discontinued Hedging Relationships
	Carrying Amount		Cumulative Fair Value		Carrying Amount of		Cumulative Fair Value
	of Hedged Item		Hedging Amount		Formerly Hedged Item		Hedging Amount
January 28, 2024
Short-term borrowings	$	288	$	(9)	$	1,960	$	10
Long-term borrowings		11,745		(537)		7,711		(270)

October 29, 2023
Short-term borrowings					$	1,814	$	15
Long-term borrowings	$	11,660	$	(976)		7,144		(288)

January 29, 2023
Short-term borrowings					$	1,915	$	15
Long-term borrowings	$	10,088	$	(666)		5,506		(83)

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

Nine Months Ended

July 30

July 31

July 30

July 31

2023

2022

2023

2022

Fair Value Hedges:







Interest rate contracts - Interest expense

$
(375)

$
149

$
(146)

$
(507)

Cash Flow Hedges:

Recognized in OCI

Interest rate contracts - OCI (pretax)

$
24

$
1

$
19

$
52

Reclassified from OCI

Interest rate contracts - Interest expense

18

3

52

Not Designated as Hedges:

Interest rate contracts - Net sales

$
6

$
44

Interest rate contracts - Interest expense *

48

$
(18)

$
45

41

Foreign exchange contracts - Net sales

3

(1)

2

(2)

Foreign exchange contracts - Cost of sales

(78)

(29)

(14)

(109)

Foreign exchange contracts - Other operating expenses *

(142)

(20)

(157)

153

Total not designated

$
(163)

$
(68)

$
(124)

$
127

*~~Includes interest and foreign exchange gains (losses) from cross-currency interest rate contracts.~~


	Three Months Ended
	January 28		January 29
	2024		2023
Fair Value Hedges
Interest rate contracts - Interest expense	$	344	$	239

Cash Flow Hedges
Recognized in OCI:
Interest rate contracts - OCI (pretax)	$	(8)	$	(1)

Reclassified from OCI:
Interest rate contracts - Interest expense		11		15

Not Designated as Hedges
Interest rate contracts - Net sales			$	(7)
Interest rate contracts - Interest expense	$	(9)		(8)
Foreign exchange contracts - Net sales		5		1
Foreign exchange contracts - Cost of sales		(30)		5
Foreign exchange contracts - Other operating expenses		(181)		(142)
Total not designated	$	(215)	$	(151)

Certain of ~~the Company’s~~our derivative agreements contain credit support provisions that may require ~~the Company~~us to post collateral based on the size of the net liability positions and credit ratings. The aggregate fair value of all derivatives with credit-risk-related contingent features that were in a net liability position at ~~July 30,~~January 28, 2024, October 29, 2023, ~~October 30, 2022,~~ and ~~July 31, 2022,~~January 29, 2023 was ~~$865 million, $1,113 million,~~$691, $1,076, and ~~$518 million,~~$781, respectively. In accordance with the limits established in these agreements, ~~the Company~~we posted ~~$435 million, $701 million,~~$368, $659, and ~~$238 million~~$349 of cash collateral at ~~July 30,~~January 28, 2024, October 29, 2023, and January 29, 2023, respectively. In addition, we paid $8 of collateral that was outstanding at January 28, 2024, October ~~30, 2022,~~29, 2023, and ~~July 31, 2022, respectively.~~

~~Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities related~~January 29, 2023 to ~~netting arrangements and any collateral received or paid~~participate in ~~millions of dollars follows:~~

Gross Amounts

Netting

July 30, 2023

Recognized

Arrangements

Collateral

Net Amount

Assets

$
324

$
(160)

$
(28)

$
136

Liabilities

948

(160)

(435)

353

Gross Amounts

Netting

October 30, 2022

Recognized

Arrangements

Collateral

Net Amount

Assets

$
373

$
(179)

$
(54)

$
140

Liabilities

1,231

(179)

(701)

351

Gross Amounts

Netting




July 31, 2022

Recognized

Arrangements

Collateral

Net Amount

Assets

$
280

$
(125)

$
(40)

$
115

Liabilities

667

(125)

(238)

304

~~(19)~~~~Stock Option and Restricted Stock Unit Awards~~

~~In December 2022, the Company granted stock options~~an international futures market to employees for the purchase of 161 thousand shares of common stock at an exercise price of $438.44 per share and a binomial lattice model fair value of $136.46 per share at the grant date. At July 30, 2023, options for 1.8 million shares were outstanding with a weighted-average exercise price of $187.53 per share. The Company also granted 125 thousand of service-based restricted stock units and 41 thousand of performance/service-based restricted stock units to employeeshedge currency exposure, not included in the first nine months of 2023. The weighted-average fair value of the service-based restricted stock units at the grant date was $428.49 per unit based on the market price of a share of underlying common stock. The fair value of the performance/service-based restricted stock units at the grant date was $424.93 per unit based on the market price of a share of underlying common stock excluding dividends. At July 30, 2023, the Company was authorized to grant awards for an additional 16.6 million shares under the equity incentive plans.

table below.

~~(20) Disposition~~

On March 7, 2023, the Company sold its financial services business in Russia (registered in Russia as a leasing company) to Insight Investment Group. The total proceeds, net of restricted cash sold, were $36 million. The operations were included in the Company’s financial services operating segment through the date of sale. At the disposal date, the total assets were $31 million, consisting primarily of financing receivables, the total liabilities were $5 million, and the cumulative translation loss was $10 million. The Company did not incur additional gains or losses upon disposition. At January 29, 2023, the assets and liabilities were classified as “~~Other assets~~” and “Accounts payable and accrued expenses”, respectively, which included $100 million of restricted cash. In the first quarter of 2023, the Company reversed the allowance for credit losses and recorded a valuation allowance on the assets held for sale in “Selling, administrative and general expenses.”

~~(21)~~ S~~pecial Items~~

~~2023~~

~~Brazil Tax Ruling~~

In the third quarter of 2023, the Brazil Superior Court of Justice published a favorable tax ruling regarding taxability of local incentives, which allowed the Company to record a $243 million reduction in the provision for income taxes and $47 million of interest income.

~~Financial Services Financing Incentives Correction~~

~~In the second quarter of 2023, the Company 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. The cumulative effect of this correction, $173 million pretax ($135 million after-tax), was recorded in the second quarter of 2023. Prior period results for Deere & Company were not restated, as the adjustment is considered immaterial to the Company’s financial statements.

~~2022~~

~~Impact of Events in Russia / Ukraine~~

In the second quarter of 2022, the Company suspended shipments of machines and service parts to Russia. The suspension of shipments to Russia reduced actual and forecasted revenue for the region, which made it probable future cash flows will not cover the carrying value of certain assets. The accounting consequences in 2022 were impairments of most long-lived assets, an increase in reserves of certain financial assets, and an accrual for various contractual uncertainties. In addition, the Company initiated a voluntary separation program for employees in Russia in the third quarter of 2022.

~~Gain on Previously Held Equity Investment~~

In the second quarter of 2022, the Company acquired full ownership of three former Deere-Hitachi joint venture factories and began new license and supply agreements with Hitachi Construction Machinery Co., Ltd. The fair value of the previous equity investment resulted in a non-cash gain of $326 million (pretax and ~~after-tax~~).

~~UAW Collective Bargaining Agreement~~

In the first quarter of 2022, employees represented by the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) approved a new collective bargaining agreement. The labor agreement included a lump sum ratification bonus payment of $8,500 per eligible employee, totaling $90 million, and an immediate wage increase of 10 percent plus further wage increases over the term of the contract. The lump sum payment was expensed in the first quarter of 2022.

2622

Derivatives are recorded without offsetting for netting arrangements or collateral. The ~~following table summarizes~~impact on the ~~operating profit impact, in millions of dollars, of the special items recorded for the three months~~derivative assets and ~~nine months ended July 30, 2023~~liabilities related to netting arrangements and ~~July 31, 2022:~~any collateral received or paid follows:

Three Months

Nine Months

PPA

SAT

CF

FS

Total

PPA

SAT

CF

FS

Total

2023 Expense:

Financing incentive – SA&G expense

$
173

$
173

2022 Expense (benefit):

Gain on remeasurement of equity investment – Other income

$
(326)

(326)

Total Russia/Ukraine events expense (benefit)

$
(1)

$
1

$
7

$
7

$
45

$
1

48

33

127

UAW ratification bonus – Cost of sales

53

9

28

90

Total 2022 expense (benefit)

(1)

1

7

7

98

10

(250)

33

(109)

Period over period change

$
1

$
(1)

$
(7)

$
(7)

$
(98)

$
(10)

$
250

$
140

$
282


	Gross Amounts		Netting
January 28, 2024	Recognized		Arrangements		Collateral		Net Amount
Assets	$	253	$	(112)	$	(19)	$	122
Liabilities		744		(112)		(368)		264

	Gross Amounts		Netting
October 29, 2023	Recognized		Arrangements		Collateral		Net Amount
Assets	$	292	$	(152)			$	140
Liabilities		1,130		(152)	$	(659)		319

	Gross Amounts		Netting
January 29, 2023	Recognized		Arrangements		Collateral		Net Amount
Assets	$	360	$	(162)	$	(47)	$	151
Liabilities		891		(162)		(349)		380

~~(22)~~(19)Share-Based Awards

At January 28, 2024, we were authorized to grant an additional 15.0 million shares related to stock options and restricted stock units. In December 2023, we granted stock options to employees for the purchase of 216 thousand shares of common stock at an exercise price of $377.01 per share and a binomial lattice model fair value of $98.04 per share at the grant date. At January 28, 2024, options for 1.9 million shares were outstanding with a weighted-average exercise price of $214.88 per share.

During the three months ended January 28, 2024, the restricted stock units (RSUs) granted in thousands of shares and the weighted-average grant date fair values, using the closing price of our common stock on the grant date, in dollars follow:

In December 2023, we granted market/service-based RSUs. The vesting period for the market/service-based RSUs is three years and dividend equivalents are not earned during the vesting period. The market/service-based RSUs are subject to a market related metric based on total shareholder return, compared to a benchmark group of companies, and award common stock in a range of zero to 200 percent for each unit granted based on the level of the metric achieved. The fair value of the market/service based RSUs was determined using a Monte Carlo model.

(20) Special Item

In January 2023, we reached an agreement to sell our financial services business in Russia (registered in Russia as a leasing company). We reversed the allowance for credit losses and recorded a valuation allowance on the assets held for sale in “Selling, administrative and general expenses.” In March 2023, we sold our financial services business in Russia to Insight Investment Group. The total proceeds, net of restricted cash sold, were $36. The operations were included in the financial services operating segment through the date of sale. At the disposal date, the total assets were $31, consisting primarily of financing receivables, the total liabilities were $5, and the cumulative translation loss was $10. We did not incur additional gains or losses upon disposition.

(21) Subsequent ~~Event~~Events

In February 2024, we entered into a retail note securitization transaction, resulting in $529 of secured borrowings.

On ~~August 30, 2023, the Company’s Board of Directors declared~~February 28, 2024, a quarterly dividend of ~~$1.35~~$1.47 per share was declared at the Board of Directors meeting, payable on ~~November~~May 8, ~~2023,~~2024, to stockholders of record on ~~September~~March 29, ~~2023.~~2024.

2723

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

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

~~Organization~~OVERVIEW

~~The~~Organization

Deere & Company ~~generates net sales from~~is a global leader in the ~~sale~~production of agricultural, turf, construction, and forestry equipment toand solutions. John Deere ~~dealers~~Financial provides financing for John Deere equipment, parts, services, and distributors. The Company manufactures and distributes a full line of agricultural equipment; a variety of commercial and consumer equipment; and a broad range of equipment for construction, roadbuilding, and forestry. Theseother input costs customers need to run their operations. Our operations ~~(collectively known as the “equipment operations”)~~ are managed through the production and precision agriculture (PPA), small agriculture and turf ~~and~~(SAT), construction and forestry (CF), and financial services operating segments. ~~The Company’s financial services segment provides credit services, which finance sales~~References to “equipment operations” include PPA, SAT, and ~~leases of equipment by John Deere dealers. In addition, the financial services segment provides wholesale financing~~CF, while references to ~~dealers of the foregoing equipment, finances retail revolving charge accounts,~~“agriculture and ~~offers extended equipment warranties.~~turf” include both PPA and SAT.

Smart Industrial Operating Model and Leap Ambitions

~~The Company’s~~We announced the Smart Industrial Operating Model in 2020. This operating model is ~~focused~~based on making significant investments, strengthening the Company’s capabilities in digitalization, automation, autonomy, and alternative propulsion technologies. These technologies are intended to increase worksite efficiency, improve yields, lower input costs, and ease labor constraints. The Company’sthree focus areas:

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

(b)	Technology stack: Investments in technology, as well as research and development, that deliver intelligent solutions to our customers through digital capabilities, automation, autonomy, and alternative power technologies.

(c)	Lifecycle solutions: The integration of our aftermarket and support capabilities to more effectively manage customer equipment, service, and technology needs across the full lifetime of a John Deere product.

Our Leap Ambitions were launched in 2022. These ambitions are ~~goals~~ designed to boost economic value and sustainability for ~~the Company’s~~our customers. The ~~Company anticipates opportunities~~ambitions align across our customers’ production systems seeking to optimize their operations to deliver better outcomes with fewer resources.

In January 2024, we released our 2023 Business Impact Report, available at JohnDeere.com/sustainability. This report identifies important progress on our Leap Ambitions in fiscal year 2023. The information in our 2023 Business Impact Report is not incorporated by reference into, and does not form a part of, this ~~area, as the Company and its customers have a vested interest in sustainable practices.~~Quarterly Report on Form 10-Q.

Trends and Economic Conditions

Industry ~~Trends~~Sales Outlook for Fiscal Year ~~2023~~ ~~– Industry sales of large agricultural machinery in the U.S.~~2024

Agriculture and Canada for 2023 are forecasted to increase approximately 10 percent compared to 2022. Industry sales of small agricultural and turf equipment in the U.S. and Canada are expected to be down 5 to 10 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 down 5 percent in 2023. Asia industry sales of agricultural machinery are forecasted to be down moderately in 2023 as volumes in India remain subdued. On an industry basis, U.S. and Canada construction, U.S. and Canada compact construction, and global roadbuilding equipment sales are expected to be flat to up 5 percent in 2023. Global forestry industry sales are expected to be flat to down 5 percent.Turf

Construction and Forestry

Company Trends – ~~Customers’ demand for integration of technology into equipment is a market trend underlying the Company’s Smart Industrial operating model and Leap Ambitions.~~ Customers ~~have sought~~seek to improve profitability, productivity, and sustainability through technology. ~~The Company’s approach~~Integration of technology into equipment is a persistent market trend. Our Smart Industrial Operating Model and Leap Ambitions are intended to technology involves hardware and software; guidance, connectivity and digital solutions; automation and machine intelligence; machine autonomy; and alternative propulsion technologies. This technology iscapitalize on this market trend. These technologies are incorporated into products within each of ~~the Company’s~~our 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~~ The investments in these technologies and in establishing a Solutions as a Service business model might increase our operating costs and may decrease operating margins during the transition period. In the first quarter of 2024, we announced an agreement with SpaceX to expand machine connectivity for the Company’s equipment remains strong, as order books are full throughout 2023. Agricultural fundamentals are expected to remain solid through 2023 with farm net income in the U.S. and Canada expected to be near historical highs. Crop prices remain favorable to our customers in part due to weather conditions putting downward pressure on yields. The Company expects sales volume of large agricultural equipment to be greater in 2023 than 2022 in North America. Sales volume for small agriculture and turf equipment is expected to be lower compared to 2022 due to less demand for consumer-oriented products, partially offset by stronger demand for mid-sized equipment. Construction equipment markets are forecasted to be steady. Strong U.S. infrastructure spending, industrial construction, rental inventory restocking, and housing stabilization are expected to more than offset moderation in office and commercial real estate construction. Roadbuilding demand remains strongest in the U.S. and emerging markets in South America and India, largely offsetting flat fundamentals in Europe. Net income for the Company’s financial services operations is expected to be lower than fiscal year 2022 due to less-favorable financing spreads, a correction of the accounting treatment for financing incentives offered to John Deere dealers recorded in the second quarter of 2023, a higher provision for credit losses, higher selling, administrative andrural areas through satellite communication.

~~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.~~

~~Additional Trends~~ – The Company has experienced supply chain improvements over 2022 beginning in the second quarter of 2023. The reduction in supply chain disruptions contributed to higher levels of production compared to 2022. As a result, the production schedules in 2023 are more aligned with the customers’ seasonal use of the Company’s products, marking a return to historical seasonal production patterns. Additionally, supply chain improvements have contributed to meaningful reductions in production costs including premium freight and material costs. Supply chain disruptions impacted many aspects of the business in 2022, including receiving past due deliveries from suppliers, parts availability, increased production costs, and higher inventory levels.

Central bank policy interest rates increased in the first nine months of 2023. Most retail receivables are fixed rate, while wholesale financing receivables are variable rate. The Company has both fixed and variable rate borrowings. The Company manages the risk of interest rate fluctuations by balancing the types and amounts of its funding sources to its financing receivable and equipment on operating lease portfolios. Accordingly, the Company enters into interest rate swap agreements to manage its interest rate exposure. Historically, rising interest rates impact the Company’s borrowings sooner than the benefit is realized from the financing receivable and equipment on operating lease portfolios. As a result, the Company’s financial services operations experienced $133 million (after-tax) of less favorable financing spreads in the first nine months of 2023 compared to 2022. The Company expects spread compression to persist for the remainder of 2023.

Remaining supply chain disruptions and rising interest rates are driven by factors outside of the Company’s control, and as a result, the Company cannot reasonably foresee when these conditions will subside.

~~Other Items 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, 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. The Company is making investments in technology and in strengthening its capabilities in digitalization, automation, autonomy, and alternative propulsion technologies. As with most technology investments, marketplace adoption, monetization, and regulation of these features holds an elevated level of uncertainty.

2924

Company Outlook for 2024

Production volumes are expected to decline in 2024 as demand moderates to more normal levels.

Agriculture and Turf Outlook for 2024

●	We expect 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.

●	We continue to produce at levels in line with retail demand in North America. To manage inventory in Europe and Brazil, we are 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.

●	Demand in Brazil is expected to moderate due to adverse weather conditions and high interest rates.

●	Industry sales in Asia are forecasted to be down moderately.

Construction and Forestry Outlook for 2024

●	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.

Financial Services Outlook for 2024


Net Income				Up moderately
+ Nonrecurring prior period special items				Favorable
+ Higher average portfolio				Favorable
(-) Financing spreads				Unfavorable
(-) Provision for credit losses				Unfavorable

Additional Trends

Agricultural Market Business Cycle. The agricultural market is affected by various factors including commodity prices, acreage planted, crop yields, and government policies. These factors affect farmers’ income and may result in lower demand for equipment. We may experience any of the following effects during unfavorable market conditions: lower net sales, higher sales discounts, higher receivable write-offs, or losses on equipment on operating leases. A potential benefit is that customers may invest in integrated technology solutions and precision agriculture to lower input costs and improve margins.

Interest Rates. Central bank policy interest rates increased in 2023 and have remained elevated. Increased rates impacted us in several ways, primarily affecting the financing spreads for the financial services operations and demand for our products.

The market for our products is negatively impacted by higher interest rates. We expect higher borrowing costs for our customers to primarily affect discretionary and residential product sales in 2024.

Most retail customer receivables are fixed rate. Wholesale financing receivables generally are variable rate. Both types of receivables are financed with fixed and floating rate borrowings. We manage our exposure to interest rate fluctuations by matching our receivables with our funding sources. We also enter into interest rate swap agreements to match our interest rate exposure.

Rising interest rates have historically impacted our borrowings sooner than the benefit is realized from receivable and lease portfolios. As a result, our financial services operations experienced $27 (after-tax) less favorable financing spreads in 2024 compared to 2023. We expect to continue experiencing spread compression in 2024, but at a moderating pace relative to spread compression experienced in 2023.

Higher interest rates are driven by factors outside of our control, and as a result we cannot reasonably foresee when this condition 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,

●	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.

consolidated results – 2024 Compared with ~~2022~~2023


	Three Months Ended					Nine Months Ended					Three Months Ended
Deere & Company	July 30		July 31		%	July 30		July 31		%	January 28		January 29
(In millions of dollars, except per share amounts)	2023		2022		Change	2023		2022		Change	2024		2023
Net sales and revenues	$	15,801	$	14,102	+12	$	45,839	$	37,041	+24	$	12,185	$	12,652
Net income attributable to Deere & Company		2,978		1,884	+58		7,797		4,885	+60		1,751		1,959
Diluted earnings per share		10.20		6.16			26.35		15.88			6.23		6.55

Net sales and revenues ~~increased~~decreased for ~~both~~ the quarter ~~and year-to-date periods~~ primarily due to ~~price realization. See~~lower sales volumes. Net income and diluted EPS decreased driven by lower sales. The discussion of net sales and operating profit is included in the Business Segment Results ~~for additional details. Net income in each of the periods presented were impacted by special items. See Note 21 for additional details on special items.~~below.

An explanation of the cost of sales to net sales ratio and other significant statement of consolidated income changes ~~follows:~~follow:


	Three Months Ended
	January 28		January 29
Deere & Company	2024		2023		% Change
Cost of sales to net sales		68.7%		69.6%
(+) Price realization					Favorable

Other income	$	339	$	256	+32
Higher due to investment income earned on international mutual funds securities.

Research and development expenses		533		495	+8
Higher due to continued focus on developing and incorporating technology solutions.

Selling, administrative and general expenses		1,066		952	+12
Increased mostly due to higher employee pay driven by inflationary conditions and profit-sharing incentives.

Interest expense		802		479	+67
Increased primarily due to higher average borrowing rates and higher average borrowings.

Other operating expenses		369		299	+23
Increased due to higher foreign exchange losses.

Provision for income taxes		469		537	-13
Decreased as a result of lower pretax income.

Three Months Ended

Nine Months Ended

Deere & Company

July 30

July 31

%

July 30

July 31

%

(In millions of dollars)

2023

2022

Change

2023

2022

Change

Cost of sales to net sales

67.4%

73.2%

67.7%

74.9%

Other income

$
264

$
256

+3

$
748

$
1,035

-28

Research and development expenses

528

481

+10

1,571

1,336

+18

Selling, administrative and general expenses

1,110

959

+16

3,392

2,672

+27

Other operating expenses

310

316

-2

971

954

+2

Provision for income taxes

636

654

-3

2,164

1,364

+59

The cost of sales ratio improved in the third quarter and the first nine months of fiscal 2023 due to price realization, partially offset by higher production costs. Other income decreased year-to-date due to a non-cash gain on the remeasurement of the previously held equity investment in the Deere-Hitachi joint venture recorded in 2022. Research and development expenses were higher due to continued focus on developing and incorporating technology solutions. Selling, administrative and general expenses increased mostly due to higher employee pay driven by inflationary conditions and profit-sharing incentives. Additionally, the nine-month period was impacted by a cumulative correction of the accounting treatment for financing incentives offered to John Deere dealers and higher commissions paid to dealers. The provision for income taxes was lower in the third quarter of 2023 due to a favorable income tax ruling in Brazil, partially offset by the effect of higher pretax income. The provision for income taxes was higher in the first nine months as a result of higher pretax income and the prior period’s exclusion of the Deere-Hitachi joint-venture remeasurement gain from tax-effected income, which were partially offset by the favorable income tax ruling in Brazil.

~~Business Segment Results~~

~~For the equipment operations, higher production costs were mostly due to elevated cost of purchased components, energy, salaries, and wages.~~

3026

Business Segment Results – 2024 compared with 2023

Three Months Ended

Nine Months Ended

Production and Precision Agriculture

July 30

July 31

%

July 30

July 31

%

(In millions of dollars)

2023

2022

Change

2023

2022

Change

Net sales

$
6,806

$
6,096

+12

$
19,826

$
14,568

+36

Operating profit

1,782

1,293

+38

5,160

2,646

+95

Operating margin

26.2%

21.2%

26.0%

18.2%

Price realization

+12

+17

Currency translation impact on Net sales

+1

-1


	Three Months Ended
	January 28		January 29
Production and Precision Agriculture	2024		2023		% Change
Net sales	$	4,849	$	5,198	-7
Operating profit		1,045		1,208	-13
Operating margin		21.6%		23.2%
Price realization					+4
Currency translation impact on Net sales					+1

Production and precision agriculture sales ~~increased~~decreased for the quarter as a result of price realization in most end markets. Operating profit rose due to price realization and improved shipment volumes / sales mix. These items were partially offset by higher production costs, increased selling, administrative and general expenses and research and development expenses, and the unfavorable effects of foreign currency exchange.

Sales for the first nine months increased as a result of higher shipment volumes (primarily in the U.S., Canada, Europe, and Brazil) and price realization. Operating profit for the first nine months increased primarily from price realization and higher sales volume. Partially offsetting these factors were higher production costs, higher selling, administrative, and general expenses and research and development expenses, and the unfavorable effects of foreign currency exchange mostly due to a stronger U.S. dollar.

Three Months Ended

Nine Months Ended

Small Agriculture and Turf

July 30

July 31

%

July 30

July 31

%

(In millions of dollars)

2023

2022

Change

2023

2022

Change

Net sales

$
3,739

$
3,635

+3

$
10,886

$
9,836

+11

Operating profit

732

552

+33

2,028

1,443

+41

Operating margin

19.6%

15.2%

18.6%

14.7%

Price realization

+9

+11

Currency translation impact on Net sales

-2

~~Small agriculture and turf sales increased for the quarter due to price realization in most end markets, partially offset by~~ lower shipment volumes (primarily in Brazil, the U.S.~~). Operating profit improved due to price realization,~~, Canada, and Europe), driven by moderating agriculture fundamentals. This was partially offset by ~~higher production costs,~~price realization in the U.S., Canada, and Europe due to inflation. Operating profit decreased primarily due to lower shipment volumes and increased selling, administrative and general expenses and research and development ~~expenses.~~expenses, partially offset by price realization.

Production & Precision Agriculture Operating Profit

~~Sales~~First Quarter 2024 Compared to First Quarter 2023


	Three Months Ended
	January 28		January 29
Small Agriculture and Turf	2024		2023		% Change
Net sales	$	2,425	$	3,001	-19
Operating profit		326		447	-27
Operating margin		13.4%		14.9%
Price realization					+3
Currency translation impact on Net sales					+1

Small agriculture and turf sales decreased for the ~~first nine months increased mainly as a result of price realization and higher~~quarter due to lower shipment volumes (primarily in the U.S., Canada, Europe, and Mexico), driven by moderating market demand. This was partially offset by price realization in the ~~unfavorable impact of currency translation.~~U.S., Canada, and Europe due to inflation. Operating profit ~~for the first nine months improved~~decreased primarily as a result of ~~price realization~~lower shipment volumes and ~~improved sales volumes / mix.~~increased selling, administrative and general expenses and research and development expenses. These items were partially offset by price realization and lower production costs, driven by a decrease in material and freight costs.

Small Agriculture & Turf Operating Profit

First Quarter 2024 Compared to First Quarter 2023


	Three Months Ended
	January 28		January 29
Construction and Forestry	2024		2023		% Change
Net sales	$	3,212	$	3,203
Operating profit		566		625	-9
Operating margin		17.6%		19.5%
Price realization					+3
Currency translation impact on Net sales					+1

Construction and forestry sales were flat for the quarter, with positive price realization in the U.S. and Canada offset by lower shipment volumes. Operating profit decreased primarily due to higher production costs, lower shipment volumes, the unfavorable effects of foreign currency exchange, and higher selling, administrative and general expenses and research and development ~~expenses, and the unfavorable effects of foreign currency exchange mostly due to a stronger U.S. dollar.~~

Three Months Ended

Nine Months Ended

Construction and Forestry

July 30

July 31

%

July 30

July 31

%

(In millions of dollars)

2023

2022

Change

2023

2022

Change

Net sales

$
3,739

$
3,269

+14

$
11,053

$
9,161

+21

Operating profit

716

514

+39

2,179

1,599

+36

Operating margin

19.1%

15.7%

19.7%

17.5%

Price realization

+10

+12

Currency translation impact on Net sales

-1

Construction and forestry sales moved higher for the quarter primarily due to price realization and higher shipment volumes (primarily in the U.S.). Operating profit rose primarily due to price realization and improved sales volumes.expenses. These items were partially offset by ~~increased selling, administrative, and general expenses and research and development expenses, higher production costs, and the unfavorable impact of foreign currency exchange.~~

~~The segment’s nine-month sales increased due to~~ price realization and ~~higher shipment volumes (primarily in the U.S.) partially offset by the unfavorable impact of currency translation. The first nine-month’s operating profit moved higher due~~a favorable sales mix.

Construction & Forestry Operating Profit

First Quarter 2024 Compared to price realization and higher sales volumes, partially offset by higher production costs. Prior period results benefitted from the non-cash gain on the remeasurement of the previously held equity investment in the Deere-Hitachi joint venture.First Quarter 2023

Three Months Ended

Nine Months Ended

Financial Services

July 30

July 31

%

July 30

July 31

%

(In millions of dollars)

2023

2022

Change

2023

2022

Change

Revenue (including intercompany)

$
1,445

$
984

+47

$
3,987

$
2,851

+40

Interest expense

622

223

+179

1,604

493

+225

Net income

216

209

+3

429

649

-34


	Three Months Ended
	January 28		January 29
Financial Services	2024		2023		% Change
Revenue (including intercompany)	$	1,552	$	1,244	+25
Interest expense		762		442	+72
Net income		207		185	+12

The average balance of receivables and leases financed was ~~22 percent higher in the third quarter of 2023, and 18~~19 percent higher in the first ~~nine~~three months of ~~2023~~2024, compared with the same ~~periods~~period last year. Revenue also increased due to higher average financing ~~rates in both periods.~~rates. Interest expense increased ~~compared to both prior periods~~in the first quarter of 2024 as a result of higher average borrowing rates and higher average borrowings. ~~Financial services net~~Net income infor the ~~third~~ quarter ~~of 2023~~ increased mainly due to income earned on higher average portfolio balances, partially offset by less favorable financing spreads as a result of ~~income earned on a~~ higher average portfolio, partially offset by less-favorable financing spreads. Net income for the first nine months of 2023 decreased primarily due to a cumulative correction of the accounting treatment for financing incentives offered to John Deere dealers recorded in the second quarter, less-favorable financing spreads, and a higher provision for credit losses. These items were partially offset by income earned on a higher average portfolio. The accounting correction is unrelated to current market conditions or the credit quality of the financial services portfolio, which remains strong. The allowance for credit losses, excluding the portfolio in Russia, was .36 percent of financing receivables as of July 30, 2023, compared with .40 percent as of July 31, 2022.interest rates.

Critical Accounting Estimates

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

CAPITAL RESOURCES AND LIQUIDITY – 2024 compared with 2023

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

~~The Company has~~We have access to ~~most~~ global ~~capital~~ markets at a reasonable cost. Sources of liquidity ~~for~~include:

●	cash, cash equivalents, and marketable securities on hand,

●	funds from operations,

●	the issuance of commercial paper and term debt,

●	the securitization of retail notes, and

●	bank lines of credit.

We closely monitor our cash requirements. Based on the Company include cash and cash equivalents, marketable securities, funds from operations, the issuance of commercial paper and term debt, the securitization of retail notes (both public and private markets), and bank lines of credit. The Company closely monitors its liquidity sources against the cash requirements and expects to have sufficientavailable sources of ~~global funding and~~ liquidity, we expect to meet ~~its~~our funding needs in the short term (next 12 months) and long term (beyond 12 months). ~~The Company operates~~We are forecasting lower operating cash flows in 2024 compared with 2023.

We operate in multiple industries, which have ~~different~~unique funding requirements. The ~~production and precision agriculture, small agriculture and turf, and construction and forestry segments~~equipment operations are capital ~~intensive and are typically~~intensive. Historically, these operations have been subject to seasonal variations in financing requirements for inventories and ~~certain~~ receivables from dealers.

The financial services operations rely on their ability to raise substantial amounts of funds to finance their receivable and lease portfolios.

Key metrics are provided in the following ~~table,~~table:


	January 28		October 29		January 29
	2024		2023		2023
Cash, cash equivalents, and marketable securities	$	6,273	$	8,404	$	4,828

Trade accounts and notes receivable – net		7,795		7,739		7,609
Ratio to prior 12 month’s net sales		14%		14%		15%

Inventories		8,937		8,160		10,056
Ratio to prior 12 month’s cost of sales		24%		22%		27%

Unused credit lines		1,577		841		1,581

Financial Services:
Ratio of interest-bearing debt to stockholder’s equity		8.3 to 1		8.4 to 1		8.2 to 1

In the first quarter, we invested $128 in ~~millions~~U.S. dollar denominated bonds issued by the central bank of ~~dollars:~~Argentina. The bonds are recorded in “Marketable securities,” classified as “International debt securities.” These bonds can be held until maturity or sold in a secondary market outside of Argentina to settle intercompany debt (see note 17).

July 30

October 30

July 31

2023

2022

2022

Cash, cash equivalents, and marketable securities

$
7,417

$
5,508

$
5,078

Trade accounts and notes receivable – net

9,297

6,410

6,696

Ratio to prior 12 month’s net sales

17%

13%

15%

Inventories

9,350

8,495

9,121

Ratio to prior 12 month’s cost of sales

24%

24%

28%

Unused credit lines

950

3,284

1,957

Financial Services:

Ratio of interest-bearing debt to stockholder’s equity

8.1 to 1

8.5 to 1

8.2 to 1

The ~~reduction~~increase in unused credit lines ~~in 2023~~at January 28, 2024 compared to ~~both prior periods~~October 29, 2023 relates to ~~an increase~~a decrease in commercial paper outstanding ~~due to growth in financing receivables~~generally corresponding with the level of receivable and ~~funding mix. The Company forecasts higher~~lease portfolios. We forecast lower operating cash flows in ~~2023~~2024 driven by ~~an increase~~a decrease in net income adjusted for non-cash provisions and ~~a favorable~~an unfavorable change in working capital.

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~~ ~~(in millions of dollars)~~

Nine Months Ended

July 30, 2023

July 31, 2022

Net cash provided by operating activities

$
2,896

$
418

Net cash used for investing activities

(4,563)

(4,430)

Net cash provided by financing activities

3,379

515

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

125

(143)

Net increase (decrease) in cash, cash equivalents, and restricted cash

$
1,837

$
(3,640)

Cash Flows


	Three Months Ended
	January 28		January 29
	2024		2023
Net cash used for operating activities	$	(908)	$	(1,246)
Net cash provided by investing activities		1,217		760
Net cash used for financing activities		(2,645)		(339)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		16		62
Net decrease in cash, cash equivalents, and restricted cash	$	(2,320)	$	(763)

Cash ~~inflows~~outflows from consolidated operating activities in the first ~~nine~~three months of ~~2023~~2024 were ~~$2,896 million.~~$908. This resulted mainly from a working capital change, partially offset by net income adjusted for non-cash ~~provisions, partially offset by a working capital change and change in accrued income taxes payable.~~provisions. Cash ~~outflows~~inflows from investing activities were ~~$4,563 million~~$1,217 in the first ~~nine~~three months of ~~2023.~~this year. The primary drivers were ~~growth~~collections of receivables (excluding receivables related to sales) exceeding the cost of receivables acquired and a change in ~~the retail customer receivable portfolio and~~collateral on derivatives – net, partially offset by purchases of property and equipment. Cash ~~inflows~~outflows from financing activities were ~~$3,379 million~~$2,645 in the first ~~nine~~three months of ~~2023, as higher external borrowings~~2024. The increase in cash used for financing activities was due primarily to ~~support working capital requirements and financing receivable growth were offset by repurchases~~net payments of ~~common stock and dividends paid.~~borrowings. Cash returned to shareholders was $1,714 in the first three months of 2024. Cash, cash equivalents, and restricted cash ~~increased $1,837 million~~decreased $2,320 during the first ~~nine~~three months of ~~2023.~~this year.

Key Metrics and Balance Sheet Changes

Trade Accounts and Notes ~~Receivable.~~Receivable – Trade accounts and notes receivable arise from sales of goods to customers. Trade receivables increased ~~$2,887 million~~by $56 during the first ~~nine~~three months of ~~2023, primarily~~2024, mostly due to a seasonal ~~increase and higher sales volumes, as well as the effect of foreign currency translation.~~increase. These receivables increased ~~$2,601 million,~~$186, compared to a year ago, ~~primarily~~ due to higher ~~sales volumes.~~dealer inventory levels. The percentage of total worldwide trade receivables outstanding for periods exceeding 12 months was 1 percent at each of ~~July 30,~~January 28, 2024, October 29, 2023, ~~October 30, 2022,~~ and ~~July 31, 2022.~~January 29, 2023.

Financing Receivables and Equipment on Operating Leases. – Financing receivables and equipment on operating leases consist of retail notes originated in connection with financing of new and used equipment, operating leases, revolving charge accounts, sales-type and direct financing leases, and wholesale notes. Financing receivables and equipment on operating leases ~~increased $5,819 million~~decreased $1,066 during the first ~~nine months~~quarter of ~~2023~~2024, primarily due to seasonal payments, and increased ~~$8,261 million~~$8,386 in the past 12 months, due to strong retail sales. Total acquisition volumes of financing receivables and equipment on operating leases were 3216 percent higher in the first ~~nine~~three months of ~~2023,~~2024, compared with the same period last year, as volumes of wholesale notes, retail notes, and financing leases were higher, while revolving charge accounts and operating leases ~~and finance leases~~ were ~~higher~~lower compared to ~~July 31, 2022.~~the same period last year.

Inventories. – Inventories increased by ~~$855 million~~$777 during the first ~~nine~~three months, ~~of 2023 and increased by $229 million~~primarily due to a seasonal increase. Inventories decreased $1,119, compared to a year ~~ago. The increases were~~ago, due to ~~higher~~lower forecasted ~~sales~~shipment volumes. ~~The effect of foreign currency translation also increased inventories during the first nine months of 2023.~~ A majority of these inventories are valued on the last-in, ~~first out~~first-out (LIFO) method.

Property and Equipment. – Property and equipment cash expenditures in the first ~~nine~~three months of ~~2023~~2024 were ~~$887 million,~~$362, compared with ~~$596 million~~$315 in the same period last year. Capital expenditures in ~~2023~~2024 are estimated to be approximately ~~$1,650 million.~~$1,900.

Accounts Payable and Accrued Expenses. – Accounts payable and accrued expenses decreased by $2,769 in the first three months of 2024, primarily due to a decrease in accrued expenses associated with employee benefits, dealer sales discounts, and derivative liabilities. Accounts payable and accrued expenses increased ~~by $518 million in the first nine months of 2023. Accounts payable and accrued expenses increased $2,354 million~~$253 compared to a year ago, due to an increase in accrued expenses associated with ~~employee benefits,~~extended warranty premium, product warranties, and accrued ~~taxes, dealer sales discounts, and derivative liabilities.~~interest, partially offset by a decrease in accounts payable associated with trade payables.

Borrowings. – Total external borrowings ~~have changed~~decreased by $245 in the first three months of 2024 and increased $9,102 compared to a year ago, generally corresponding with the level of the receivable and the lease portfolio, as well as other working capital requirements.

John Deere Capital Corporation (Capital Corporation), a U.S. financial services subsidiary, has a revolving warehouse facility to utilize bank conduit facilities to securitize retail notes (see Note 9). 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 million~~$1,500 to ~~$1,500 million.~~$2,000. At ~~July 30, 2023, $1,415 million~~January 28, 2024, $1,118 of securitization borrowings were outstanding under the facility. At the end of the contractual revolving period, unless the banks and Capital Corporation agree to renew, Capital Corporation would liquidate the secured borrowings over time as payments on the retail notes are collected.

In the first ~~nine~~three months of ~~2023,~~2024, the financial services operations ~~issued $3,207 million and~~ retired ~~$2,309 million~~$881 of retail note securitization borrowings, which are presented in ~~“Increase (decrease)~~“Net proceeds (payments) in total short-term ~~borrowings.~~borrowings (original maturities three months or less).”

Lines of Credit~~. The Company~~ – We also ~~has~~have access to bank lines of credit with various banks throughout the world. Worldwide lines of credit totaled ~~$10,352 million~~$10,310 at ~~July 30, 2023, $950 million~~January 28, 2024, $1,577 of which were unused. For the purpose of computing unused credit lines, commercial paper, and short-term bank borrowings ~~excluding secured borrowings and the current portion of long-term borrowings,~~ were considered to constitute utilization. Included in the total credit lines at ~~July 30, 2023~~January 28, 2024 was a 364-day credit facility agreement of $5,000, ~~million~~ expiring in the second quarter of 2024. In addition, total credit lines included long-term credit facility agreements of $2,500, ~~million~~ expiring in the second quarter of 2027, and $2,500, ~~million~~ expiring in the second quarter of 2028. These credit agreements require Capital Corporation and other parts of ~~the Company~~our business to maintain certain performance metrics and liquidity targets. We expect to extend the terms of these credit facilities. All requirements in the credit agreements have been met during the periods included in the financial statements.

Debt Ratings. – 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 ~~Company~~our securities. 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, and may adversely impact the Company’s liquidity.~~markets. The senior long-term and short-term debt ratings and outlook currently assigned to unsecured ~~Company~~company securities by the rating agencies engaged by ~~the Company~~us 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~~FORWARD-LOOKING STATEMENTS

Certain statements contained herein, including in the section entitled ~~“Overview,”~~“Overview” relating to future events, expectations, and trends constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of ~~1995.~~1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of ~~the Company’s~~our operations generally while others could more heavily affect a particular line of business.

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 ~~and changes in~~ 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;

●	political, economic, and social instability of the geographies in which ~~the Company operates;~~

●	~~wars and other conflicts,~~we operate, including the ongoing war between Russia and ~~Ukraine;~~Ukraine and the war between Israel and Hamas;

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

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

●	the ability to understand and meet customers’ changing expectations and demand for John Deere products and solutions;

●	accurately forecasting customer demand for products and services and adequately managing inventory;

●	the ability to integrate new technology, including automation and machine learning, and deliver precision technology, alternative power technologies, and solutions to customers, including through our Solutions as a Service business model;

●	changes to governmental communications channels (radio frequency technology);

●	~~gaps or limitations in rural broadband coverage, capacity, and speed needed to support technology solutions;~~

●	the ~~Company’s~~ ability to adapt in highly competitive markets;

●	dealer practices and their ability to manage distribution of John Deere products and support and service precision technology solutions;

●	changes in climate patterns, unfavorable weather 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 ~~our~~John Deere products and solutions;

●	~~changes in the Company’s credit ratings and any failure to comply with financial covenants in credit agreements could impact access to funding;~~

●	availability and price of raw materials, components, and whole ~~goods, and used equipment;~~goods;

●	delays or disruptions in ~~the Company’s~~our supply chain;

●	our 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 ~~of the Company~~ and ~~its~~ products;

●	loss of or challenges to intellectual property rights;

●	legislation introduced or enacted that could affect our business model and intellectual property, such as right to repair legislation;

●	investigations, claims, lawsuits, or other legal proceedings;

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

●	world grain stocks, available farm acres, soil conditions, harvest yields, prices for commodities and livestock, input costs, 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~~us and ~~its~~our businesses, 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 our most recent Annual Report on Form 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.

~~Supplemental Consolidating Information~~SUPPLEMENTAL CONSOLIDATING DATA

The supplemental consolidating data presented on the subsequent pages is presented for informational purposes. ~~The equipment~~Equipment operations represents the enterprise without financial services. ~~The equipment~~Equipment operations includes ~~the Company’s~~ production and precision agriculture operations, small agriculture and turf operations, construction and forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within financial services. Transactions between the equipment operations and financial services have been eliminated to arrive at the consolidated financial statements.

~~The equipment~~Equipment operations and financial services participate in different industries. ~~The equipment~~Equipment operations primarily generate earnings and cash flows by manufacturing and selling equipment, service parts, and technology solutions to dealers and retail customers. Financial services finances sales and leases by dealers of new and used equipment that is largely manufactured by ~~the Company.~~us. Those earnings and cash flows generally are the difference between the finance income received from customer payments less interest expense, and depreciation on equipment subject to an operating lease. The two businesses are capitalized differently and have separate performance metrics. The supplemental consolidating data is also used by management due to these ~~differences~~.

differences.

3733


DEERE & COMPANY	DEERE & COMPANY																		DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA	SUPPLEMENTAL CONSOLIDATING DATA																		SUPPLEMENTAL CONSOLIDATING DATA
STATEMENTS OF INCOME	STATEMENTS OF INCOME																		STATEMENTS OF INCOME
For the Three Months Ended July 30, 2023 and July 31, 2022
(In millions of dollars) Unaudited
For the Three Months Ended January 28, 2024 and January 29, 2023																			For the Three Months Ended January 28, 2024 and January 29, 2023
Unaudited																			Unaudited
		EQUIPMENT				FINANCIAL														EQUIPMENT				FINANCIAL
		OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED						OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
		2023		2022		2023		2022		2023		2022		2023		2022				2024		2023		2024		2023		2024		2023		2024		2023
Net Sales and Revenues
Net sales		$	14,284	$	13,000									$	14,284	$	13,000			$	10,486	$	11,402									$	10,486	$	11,402
Finance and interest income			210		60	$	1,335	$	905	$	(292)	$	(119)		1,253		846	¹			157		114	$	1,433	$	1,067	$	(230)	$	(187)		1,360		994	¹
Other income			222		228		110		79		(68)		(51)		264		256	^{2, 3}			289		234		119		177		(69)		(155)		339		256	^{2, 3}
Total			14,716		13,288		1,445		984		(360)		(170)		15,801		14,102				10,932		11,750		1,552		1,244		(299)		(342)		12,185		12,652

Costs and Expenses
Cost of sales			9,630		9,512						(6)		(1)		9,624		9,511	⁴			7,207		7,940						(7)		(6)		7,200		7,934	⁴
Research and development expenses			528		481										528		481				533		495										533		495
Selling, administrative and general expenses			913		805		199		156		(2)		(2)		1,110		959	⁴			876		783		192		172		(2)		(3)		1,066		952	⁴
Interest expense			94		109		622		223		(93)		(36)		623		296	⁵			108		101		762		442		(68)		(64)		802		479	¹
Interest compensation to Financial Services			199		83						(199)		(83)					⁵			162		123						(162)		(123)					¹
Other operating expenses			34		47		336		317		(60)		(48)		310		316	^{6, 7}			90		53		339		392		(60)		(146)		369		299	^{3, 5}
Total			11,398		11,037		1,157		696		(360)		(170)		12,195		11,563				8,976		9,495		1,293		1,006		(299)		(342)		9,970		10,159

Income before Income Taxes			3,318		2,251		288		288						3,606		2,539				1,956		2,255		259		238						2,215		2,493
Provision for income taxes			564		574		72		80						636		654				416		483		53		54						469		537

Income after Income Taxes			2,754		1,677		216		208						2,970		1,885				1,540		1,772		206		184						1,746		1,956
Equity in income (loss) of unconsolidated affiliates			2		(1)				1						2
Equity in income of unconsolidated affiliates																					1				1		1						2		1

Net Income			2,756		1,676		216		209						2,972		1,885				1,541		1,772		207		185						1,748		1,957
Less: Net income (loss) attributable to noncontrolling interests			(6)		1										(6)		1
Less: Net loss attributable to noncontrolling interests																					(3)		(2)										(3)		(2)
Net Income Attributable to Deere & Company		$	2,762	$	1,675	$	216	$	209					$	2,978	$	1,884			$	1,544	$	1,774	$	207	$	185					$	1,751	$	1,959

¹ Elimination of ~~financial services’~~intercompany interest income ~~earned from equipment operations.~~and expense.

² Elimination of equipment operations’ margin from inventory transferred to equipment on operating leases.

³ Elimination of income and expenses between equipment operations and financial ~~services’ income~~services related to intercompany guarantees of investments in certain international markets and intercompany service ~~revenue.~~revenues and expenses.

⁴ Elimination of intercompany service fees.

⁵ ~~Elimination of equipment operations’ interest expense to financial services.~~

⁶ Elimination of financial services’ lease depreciation expense related to inventory transferred to equipment on operating leases.

⁷ ~~Elimination of equipment operations’ expense related to intercompany guarantees of investments in certain international markets and intercompany service expenses.~~

3834

DEERE & COMPANY

SUPPLEMENTAL CONSOLIDATING DATA (Continued)

STATEMENTS OF INCOME

For the Nine Months Ended July 30, 2023 and July 31, 2022

(In millions of dollars) Unaudited

EQUIPMENT

FINANCIAL

OPERATIONS

SERVICES

ELIMINATIONS

CONSOLIDATED

2023

2022

2023

2022

2023

2022

2023

2022

Net Sales and Revenues

















Net sales

$
41,765

$
33,565

$
41,765

$
33,565

Finance and interest income

444

131

$
3,609

$
2,580

$
(727)

$
(270)

3,326

2,441
¹

Other income

639

1,028

378

271

(269)

(264)

748

1,035
^{2, 3}

Total

42,848

34,724

3,987

2,851

(996)

(534)

45,839

37,041

Costs and Expenses

Cost of sales

28,306

25,126

(18)

(2)

28,288

25,124
⁴

Research and development expenses

1,571

1,336

1,571

1,336

Selling, administrative and general expenses

2,630

2,215

769

463

(7)

(6)

3,392

2,672
⁴

Interest expense

298

297

1,604

493

(231)

(77)

1,671

713
⁵

Interest compensation to Financial Services

496

189

(496)

(189)

⁵

Other operating expenses

172

186

1,043

1,028

(244)

(260)

971

954
^{6, 7}

Total

33,473

29,349

3,416

1,984

(996)

(534)

35,893

30,799

Income before Income Taxes

9,375

5,375

571

867

9,946

6,242

Provision for income taxes

2,020

1,142

144

222

2,164

1,364

Income after Income Taxes

7,355

4,233

427

645

7,782

4,878

Equity in income of unconsolidated affiliates

3

4

2

4

5

8

Net Income

7,358

4,237

429

649

7,787

4,886

Less: Net income (loss) attributable to noncontrolling interests

(10)

1

(10)

1

Net Income Attributable to Deere & Company

$
7,368

$
4,236

$
429

$
649

$
7,797

$
4,885

¹ ~~Elimination of financial services’ interest income earned from equipment operations.~~

² ~~Elimination of equipment operations’ margin from inventory transferred to equipment on operating leases.~~

³ ~~Elimination of financial services’ income related to intercompany guarantees of investments in certain international markets and intercompany service revenue.~~

⁴ ~~Elimination of intercompany service fees.~~

⁵ ~~Elimination of equipment operations’ interest expense to financial services.~~

⁶ ~~Elimination of financial services’ lease depreciation expense related to inventory transferred to equipment on operating leases.~~

⁷ ~~Elimination of equipment operations’ expense related to intercompany guarantees of investments in certain international markets and intercompany service expenses.~~


DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEETS
Unaudited
	EQUIPMENT						FINANCIAL
	OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
	Jan 28		Oct 29		Jan 29		Jan 28		Oct 29		Jan 29		Jan 28		Oct 29		Jan 29		Jan 28		Oct 29		Jan 29
	2024		2023		2023		2024		2023		2023		2024		2023		2023		2024		2023		2023
Assets
Cash and cash equivalents	$	3,467	$	5,720	$	2,665	$	1,670	$	1,738	$	1,311							$	5,137	$	7,458	$	3,976
Marketable securities		147		104		18		989		842		834								1,136		946		852
Receivables from Financial Services		4,296		4,516		5,348							$	(4,296)	$	(4,516)	$	(5,348)							⁶
Trade accounts and notes receivable – net		1,093		1,320		1,342		9,167		8,687		7,827		(2,465)		(2,268)		(1,560)		7,795		7,739		7,609	⁷
Financing receivables – net		72		64		51		43,636		43,609		36,831								43,708		43,673		36,882
Financing receivables securitized – net								6,400		7,335		5,089								6,400		7,335		5,089
Other receivables		1,515		1,813		1,583		559		869		489		(57)		(59)		(80)		2,017		2,623		1,992	⁷
Equipment on operating leases – net								6,751		6,917		6,502								6,751		6,917		6,502
Inventories		8,937		8,160		10,056														8,937		8,160		10,056
Property and equipment – net		6,879		6,843		6,178		35		36		34								6,914		6,879		6,212
Goodwill		3,966		3,900		3,891														3,966		3,900		3,891
Other intangible assets – net		1,112		1,133		1,255														1,112		1,133		1,255
Retirement benefits		3,013		2,936		3,728		75		72		67		(1)		(1)		(2)		3,087		3,007		3,793	⁸
Deferred income taxes		2,133		2,133		1,015		72		68		53		(372)		(387)		(154)		1,833		1,814		914	⁹
Other assets		2,058		1,948		1,936		546		559		684		(26)		(4)		(23)		2,578		2,503		2,597
Total Assets	$	38,688	$	40,590	$	39,066	$	69,900	$	70,732	$	59,721	$	(7,217)	$	(7,235)	$	(7,167)	$	101,371	$	104,087	$	91,620

Liabilities and Stockholders’ Equity

Liabilities
Short-term borrowings	$	1,203	$	1,230	$	969	$	15,914	$	16,709	$	13,160							$	17,117	$	17,939	$	14,129
Short-term securitization borrowings								6,116		6,995		4,864								6,116		6,995		4,864
Payables to Equipment Operations								4,296		4,516		5,348	$	(4,296)	$	(4,516)	$	(5,348)							⁶
Accounts payable and accrued expenses		12,677		14,862		11,819		3,232		3,599		2,952		(2,548)		(2,331)		(1,663)		13,361		16,130		13,108	⁷
Deferred income taxes		478		452		404		444		455		269		(372)		(387)		(154)		550		520		519	⁹
Long-term borrowings		7,270		7,210		8,155		32,663		31,267		26,916								39,933		38,477		35,071
Retirement benefits and other liabilities		2,006		2,032		2,384		110		109		111		(1)		(1)		(2)		2,115		2,140		2,493	⁸
Total liabilities		23,634		25,786		23,731		62,775		63,650		53,620		(7,217)		(7,235)		(7,167)		79,192		82,201		70,184

Commitments and contingencies (Note 16)
Redeemable noncontrolling interest		100		97		100														100		97		100

Stockholders’ Equity
Total Deere & Company stockholders’ equity		22,075		21,785		21,332		7,125		7,082		6,101		(7,125)		(7,082)		(6,101)		22,075		21,785		21,332	¹⁰
Noncontrolling interests		4		4		4														4		4		4
Financial Services’ equity		(7,125)		(7,082)		(6,101)								7,125		7,082		6,101							¹⁰
Adjusted total stockholders’ equity		14,954		14,707		15,235		7,125		7,082		6,101								22,079		21,789		21,336
Total Liabilities and Stockholders’ Equity	$	38,688	$	40,590	$	39,066	$	69,900	$	70,732	$	59,721	$	(7,217)	$	(7,235)	$	(7,167)	$	101,371	$	104,087	$	91,620

DEERE & COMPANY

SUPPLEMENTAL CONSOLIDATING DATA (Continued)

CONDENSED BALANCE SHEETS

(In millions of dollars) Unaudited

EQUIPMENT

FINANCIAL

OPERATIONS

SERVICES

ELIMINATIONS

CONSOLIDATED

Jul 30

Oct 30

Jul 31

Jul 30

Oct 30

Jul 31

Jul 30

Oct 30

Jul 31

Jul 30

Oct 30

Jul 31

2023

2022

2022

2023

2022

2022

2023

2022

2022

2023

2022

2022

Assets



































Cash and cash equivalents

$
4,858

$
3,767

$
3,540

$
1,718

$
1,007

$
819

$
6,576

$
4,774

$
4,359

Marketable securities

3

61

2

838

673

717

841

734

719

Receivables from Financial Services

5,312

6,569

5,055

$
(5,312)

$
(6,569)

$
(5,055)

⁸

Trade accounts and notes receivable – net

1,589

1,273

1,342

9,991

6,434

6,738

(2,283)

(1,297)

(1,384)

9,297

6,410

6,696
⁹

Financing receivables – net

60

47

45

41,242

36,587

35,011

41,302

36,634

35,056

Financing receivables securitized – net

2

7,001

5,936

5,139

7,001

5,936

5,141

Other receivables

2,599

1,670

1,676

599

832

371

(80)

(10)

(48)

3,118

2,492

1,999
⁹

Equipment on operating leases – net

6,709

6,623

6,554

6,709

6,623

6,554

Inventories

9,350

8,495

9,121

9,350

8,495

9,121

Property and equipment – net

6,385

6,021

5,630

33

35

36

6,418

6,056

5,666

Goodwill

3,994

3,687

3,754

3,994

3,687

3,754

Other intangible assets – net

1,199

1,218

1,281

1,199

1,218

1,281

Retirement benefits

3,503

3,666

3,062

71

66

65

(1)

(2)

(2)

3,573

3,730

3,125
¹⁰

Deferred income taxes

1,393

940

1,248

65

45

48

(98)

(161)

(186)

1,360

824

1,110
¹¹

Other assets

2,083

1,794

1,727

583

626

510

(7)

(3)

(1)

2,659

2,417

2,236
⁹

Total Assets

$
42,328

$
39,208

$
37,485

$
68,850

$
58,864

$
56,008

$
(7,781)

$
(8,042)

$
(6,676)

$
103,397

$
90,030

$
86,817

Liabilities and Stockholders’ Equity

Liabilities

Short-term borrowings

$
1,773

$
1,040

$
471

$
15,370

$
11,552

$
13,705

$
17,143

$
12,592

$
14,176

Short-term securitization borrowings

2

6,608

5,711

4,918

6,608

5,711

4,920

Payables to Equipment Operations

5,312

6,569

5,055

$
(5,312)

$
(6,569)

$
(5,055)

⁸

Accounts payable and accrued expenses

14,403

12,962

11,925

3,307

3,170

2,494

(2,370)

(1,310)

(1,433)

15,340

14,822

12,986
⁹

Deferred income taxes

420

380

436

184

276

311

(98)

(161)

(186)

506

495

561
¹¹

Long-term borrowings

7,299

7,917

8,481

30,813

25,679

23,651

38,112

33,596

32,132

Retirement benefits and other liabilities

2,423

2,351

2,799

114

108

114

(1)

(2)

(2)

2,536

2,457

2,911
¹⁰

Total liabilities

26,318

24,650

24,114

61,708

53,065

50,248

(7,781)

(8,042)

(6,676)

80,245

69,673

67,686

Commitments and contingencies (Note 16)

Redeemable noncontrolling interest

101

92

95

101

92

95

Stockholders’ Equity

Total Deere & Company stockholders’ equity

23,048

20,262

19,033

7,142

5,799

5,760

(7,142)

(5,799)

(5,760)

23,048

20,262

19,033
¹²

Noncontrolling interests

3

3

3

3

3

3

Financial Services’ equity

(7,142)

(5,799)

(5,760)

7,142

5,799

5,760

¹²

Adjusted total stockholders’ equity

15,909

14,466

13,276

7,142

5,799

5,760

23,051

20,265

19,036

Total Liabilities and Stockholders’ Equity

$
42,328

$
39,208

$
37,485

$
68,850

$
58,864

$
56,008

$
(7,781)

$
(8,042)

$
(6,676)

$
103,397

$
90,030

$
86,817

⁸⁶ Elimination of receivables / payables between equipment operations and financial services.

⁹⁷ Primarily reclassification of sales incentive accruals on receivables sold to financial services.

¹⁰⁸ Reclassification of net pension assets / liabilities.

¹¹⁹ Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.

¹²¹⁰ Elimination of financial services’ equity.

4035


DEERE & COMPANY	DEERE & COMPANY																		DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)	SUPPLEMENTAL CONSOLIDATING DATA (Continued)																		SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENTS OF CASH FLOWS	STATEMENTS OF CASH FLOWS																		STATEMENTS OF CASH FLOWS
For the Nine Months Ended July 30, 2023 and July 31, 2022
(In millions of dollars) Unaudited
For the Three Months Ended January 28, 2024 and January 29, 2023																			For the Three Months Ended January 28, 2024 and January 29, 2023
Unaudited																			Unaudited
		EQUIPMENT				FINANCIAL														EQUIPMENT				FINANCIAL
		OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED						OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
		2023		2022		2023		2022		2023		2022		2023		2022				2024		2023		2024		2023		2024		2023		2024		2023
Cash Flows from Operating Activities
Net income		$	7,358	$	4,237	$	429	$	649					$	7,787	$	4,886			$	1,541	$	1,772	$	207	$	185					$	1,748	$	1,957
Adjustments to reconcile net income to net cash provided by operating activities:
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses			3				(67)		62						(64)		62				(2)		1		33		(131)						31		(130)
Provision for depreciation and amortization			872		806		757		790	$	(102)	$	(153)		1,527		1,443	¹³			302		279		254		252	$	(36)	$	(37)		520		494	¹¹
Impairments and other adjustments					81		173								173		81
Share-based compensation expense											112		64		112		64	¹⁴											46		23		46		23	¹²
Gain on remeasurement of previously held equity investment					(326)												(326)
Distributed earnings of Financial Services			31		368						(31)		(368)					¹⁵			233		3						(233)		(3)					¹³
Provision (credit) for deferred income taxes			(322)		44		(107)		(50)						(429)		(6)				48		(39)		(21)		(17)						27		(56)
Changes in assets and liabilities:
Receivables related to sales			(293)		(215)						(4,766)		(2,142)		(5,059)		(2,357)	^{16, 18, 19}			209		(23)						(486)		(992)		(277)		(1,015)	^{14, 16}
Inventories			(534)		(2,415)						(129)		(111)		(663)		(2,526)	¹⁷			(687)		(1,254)						(36)		(25)		(723)		(1,279)	¹⁵
Accounts payable and accrued expenses			730		491		303		36		(986)		(542)		47		(15)	¹⁸			(2,155)		(1,458)		25		145		(197)		(264)		(2,327)		(1,577)	¹⁶
Accrued income taxes payable/receivable			(619)		52		24		30						(595)		82				165		192		18		7						183		199
Retirement benefits			(115)		(1,020)		(1)		6						(116)		(1,014)				(127)		(49)		(2)		1						(129)		(48)
Other			247		103		(15)		(108)		(56)		49		176		44	^{13, 14, 17}			(46)		17		61		163		(22)		6		(7)		186	^{11, 12, 15}
Net cash provided by operating activities			7,358		2,206		1,496		1,415		(5,958)		(3,203)		2,896		418
Net cash provided by (used for) operating activities																					(519)		(559)		575		605		(964)		(1,292)		(908)		(1,246)

Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)							18,440		16,927		(848)		(1,153)		17,592		15,774	¹⁶							8,007		7,495		(255)		(297)		7,752		7,198	¹⁴
Proceeds from sales of equipment on operating leases							1,445		1,501						1,445		1,501								506		497						506		497
Cost of receivables acquired (excluding receivables related to sales)							(21,043)		(19,069)		329		491		(20,714)		(18,578)	¹⁶							(6,513)		(6,375)		66		53		(6,447)		(6,322)	¹⁴
Acquisitions of businesses, net of cash acquired			(82)		(488)										(82)		(488)
Purchases of property and equipment			(885)		(595)		(2)		(1)						(887)		(596)				(362)		(315)										(362)		(315)
Cost of equipment on operating leases acquired							(2,143)		(1,868)		175		151		(1,968)		(1,717)	¹⁷							(503)		(531)		49		34		(454)		(497)	¹⁵
Increase in investment in Financial Services			(811)								811							²⁰
Decrease in investment in Financial Services																					10								(10)							¹⁷
Increase in trade and wholesale receivables							(6,270)		(3,318)		6,270		3,318					¹⁶							(871)		(1,499)		871		1,499					¹⁴
Collateral on derivatives – net					5		240		(198)						240		(193)								310		345						310		345
Other			(79)		(87)		(111)		(74)		1		28		(189)		(133)	¹⁹			10		(9)		(98)		(137)						(88)		(146)
Net cash used for investing activities			(1,857)		(1,165)		(9,444)		(6,100)		6,738		2,835		(4,563)		(4,430)
Net cash provided by (used for) investing activities																					(342)		(324)		838		(205)		721		1,289		1,217		760

Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings			(152)		58		5,192		4,209						5,040		4,267
Net proceeds (payments) in short-term borrowings (original maturities three months or less)																					78		(136)		(3,029)		833						(2,951)		697
Change in intercompany receivables/payables			1,476		70		(1,476)		(70)												288		1,469		(288)		(1,469)
Proceeds from long-term borrowings			60		137		9,912		6,144						9,972		6,281
Payments of long-term borrowings			(116)		(1,372)		(5,746)		(5,206)						(5,862)		(6,578)
Proceeds from borrowings issued (original maturities greater than three months)																					11		1		5,276		2,504						5,287		2,505
Payments of borrowings (original maturities greater than three months)																					(40)				(3,197)		(1,925)						(3,237)		(1,925)
Repurchases of common stock			(4,663)		(2,477)										(4,663)		(2,477)				(1,328)		(1,257)										(1,328)		(1,257)
Capital investment from Equipment Operations							811				(811)							²⁰							(10)				10							¹⁷
Dividends paid			(1,065)		(971)		(31)		(368)		31		368		(1,065)		(971)	¹⁵			(386)		(341)		(233)		(3)		233		3		(386)		(341)	¹³
Other			4		16		(47)		(23)						(43)		(7)				(22)		(6)		(8)		(12)						(30)		(18)
Net cash provided by (used for) financing activities			(4,456)		(4,539)		8,615		4,686		(780)		368		3,379		515
Net cash used for financing activities																					(1,399)		(270)		(1,489)		(72)		243		3		(2,645)		(339)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash			108		(148)		17		5						125		(143)				11		48		5		14						16		62

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash			1,153		(3,646)		684		6						1,837		(3,640)				(2,249)		(1,105)		(71)		342						(2,320)		(763)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period			3,781		7,200		1,160		925						4,941		8,125				5,755		3,781		1,865		1,160						7,620		4,941
Cash, Cash Equivalents, and Restricted Cash at End of Period		$	4,934	$	3,554	$	1,844	$	931					$	6,778	$	4,485			$	3,506	$	2,676	$	1,794	$	1,502					$	5,300	$	4,178

Components of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents		$	4,858	$	3,540	$	1,718	$	819					$	6,576	$	4,359			$	3,467	$	2,665	$	1,670	$	1,311					$	5,137	$	3,976
Restricted cash (Other assets)			76		14		126		112						202		126				39		11		124		191						163		202
Total Cash, Cash Equivalents, and Restricted Cash		$	4,934	$	3,554	$	1,844	$	931					$	6,778	$	4,485			$	3,506	$	2,676	$	1,794	$	1,502					$	5,300	$	4,178

¹³¹¹ Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.

¹⁴¹² Reclassification of share-based compensation expense.

¹⁵¹³ Elimination of dividends from financial services to the equipment operations, which are included in the equipment operations’ operating activities.

¹⁶¹⁴ Primarily reclassification of receivables related to the sale of equipment.

¹⁷¹⁵ Reclassification of direct lease agreements with retail customers.

¹⁸¹⁶ Reclassification of sales incentive accruals on receivables sold to financial services.

¹⁹~~Elimination and reclassification of the effects of financial services partial financing of the construction and forestry retail locations sales and subsequent collection of those amounts.~~

²⁰¹⁷ Elimination of change in investment from equipment operations to financial services.

4136

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

See ~~the Company’s~~our most recently filed Annual Report on Form 10-K (Part II, Item 7A). There ~~has~~have been no material ~~change~~changes in this information.

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 ~~July 30, 2023,~~January 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 ~~third~~first quarter of ~~2023,~~2024, 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

~~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 product liability (including asbestos-related liability), retail credit, employment, patent, trademark, and antitrust 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.

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

Issuer Purchases of Equity Securities

~~The Company’s purchases~~Purchases of ~~its~~our common stock during the ~~third~~first quarter of ~~2023~~2024 were as follows:


				Total Number of					Total Number of
				Shares Purchased as	Maximum Number of				Shares Purchased as	Maximum Number of
	Total Number of			Part of Publicly	Shares that May Yet Be	Total Number of			Part of Publicly	Shares that May Yet Be
	Shares			Announced Plans or	Purchased under the	Shares			Announced Plans or	Purchased under the
	Purchased	Average Price		Programs (1)	Plans or Programs (1)	Purchased (2)	Average Price		Programs (1)	Plans or Programs (1)
Period	(thousands)	Per Share		(thousands)	(millions)	(thousands)	Per Share		(thousands)	(millions)
May 1 to May 28	1,581	$	375.70	1,581	40.0
May 29 to Jun 25	1,525		385.90	1,525	38.6
Jun 26 to Jul 30	2,285		418.54	2,285	36.4
Oct 30 to Nov 26						1,178	$	377.57	1,178	31.8
Nov 27 to Dec 24						1,296		372.25	1,259	30.7
Dec 25 to Jan 28						1,050		393.54	1,050	29.6
Total	5,391			5,391		3,524			3,487

(1)

~~The Company has~~We have a share repurchase plan that was announced in December 2022 to ~~repurchase~~purchase up to ~~$18,000 million~~$18.0 billion of shares of ~~the Company’s~~our common stock. The maximum number of shares that may yet be ~~repurchased~~purchased under this plan was ~~36.4~~29.6 million ~~shares~~ based on the closing price of our common stock on the New York Stock Exchange as of the end of the ~~third~~first quarter ~~2023 closing share price~~ of ~~$427.11~~2024 of $393.62 per share. At the end of the ~~third~~first quarter of ~~2023, $15,556 million~~2024, $11.7 billion of common stock remains to be ~~repurchased~~purchased under this plan.

(2)

In the first quarter of 2024, 37 thousand shares were acquired from plan participants at a weighted-average market price of $365.60 per share to pay payroll taxes on the vesting of restricted stock awards.

Sales of Unregistered Securities

During the first quarter of 2024, we distributed 1,333 deferred stock awards to a participant account under the 2012 Deere & Company Nonemployee Director Stock Ownership Plan. The deferred stock awards converted to shares of common stock on a one-for-one basis. Deferred stock units and shares of common stock issued under the 2012 Deere & Company Nonemployee Director Stock Ownership Plan are exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506 of the SEC’s Regulation D thereunder.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

~~Amendment to Bylaws~~

On August 30, 2023, the Board of Directors of the Company adopted amendments to the Company’s bylaws (as amended, the “Amended Bylaws”), effective as of such date. The amendments set forth in the Amended Bylaws, among other things, (1) revise the procedures and disclosure requirements for the nomination of directors and the submission of proposals for consideration at annual meetings of the stockholders of the Company, including, among other things, adding a requirement that a stockholder seeking to nominate director(s) at an annual meeting deliver to the Company reasonable evidence that it has complied with the requirements of Rule 14a-19 of the Exchange Act within eight business days of the meeting; (2) revise the majority voting provision to clarify when an election of directors will be deemed contested; (3) allow for the establishment of rules, regulations, or procedures of a meeting of the Company’s stockholders by the Board of Directors and/or the presiding person of a meeting and clarify the power of the chair of a stockholder meeting to adjourn any meeting of stockholders; (4) adopt gender-neutral terms when referring to particular positions, offices, or title holders; and (5) make certain administrative, modernizing, clarifying, and conforming changes, including making updates to reflect recent amendments to the General Corporation Law of the State of Delaware.

~~The foregoing description of the Amended Bylaws is qualified in its entirety by reference to the Bylaws, as amended, a copy of which is filed as~~ ~~Exhibit 3.2~~ ~~hereto and is incorporated herein by reference.~~

~~Amended & Restated Change in Control Severance Program~~

On August 29, 2023, the Compensation Committee of the Board of Directors (the “Committee”) of the Company adopted amendments to the Company’s Amended and Restated Change in Control Severance Program (the “Program”). The amendments to the Program, among other things, reduced the multiplier applicable to cash severance payments in the event of a change in control and a qualifying termination for the Chief Executive Officer of the Company from 3.0x to 2.99x base salary. The multiplier for the Tier 1 and Tier 2 Participants, as those terms are defined in the Program, were unchanged and remain at 2.0x and 1.5x, respectively. The amendments to the Program result from the Committee’s periodic review of the Company’s executive compensation program, which includes consideration of shareholder feedback.

~~The foregoing description of the amendments to the Program is qualified in its entirety by reference to the Amended & Restated Change in Control Severance Program, a copy of which is filed as~~ ~~Exhibit 10.1~~ ~~hereto and is incorporated herein by reference.~~

Director and Executive Officer Trading Arrangements

On June 2, 2023, Ryan D. Campbell, President, Worldwide Construction & Forestry and Power Systems adopted a trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c). The plan covers the exercise of 6,073 employee stock options and the related sale of such shares. The plan expires on May 31, 2024.None.

Item 6. Exhibits

Certain instruments relating to long-term borrowings 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 furnish copies of such instruments to the Commission upon request of the Commission.



3.1		Certificate of Incorporation (Exhibit 3.1 to Form 10-Q of registrant for the quarter ended July 28, 2019, Securities and Exchange Commission File Number 1-4121*)

3.2		Bylaws, as amended ~~August~~(Exhibit 3.2 to Form 10-Q of registrant for the quarter ended July 30, 2023,

~~10.1~~	~~Amended & Restated Change in Control Severance Program of Deere & Company, effective August 29, 2023~~ Securities and Exchange Commission File Number 1-4121*)

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.

4438

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.


		DEERE & COMPANY


Date:	~~August 31, 2023~~February 29, 2024	By:	/s/ Joshua A. Jepsen
			Joshua A. Jepsen Senior Vice President and Chief Financial Officer
			(Principal Financial Officer and Principal Accounting Officer)

4539


Title of each class	Trading symbol	Name of each exchange on which registered
Common stock, $1 par value	DE	New York Stock Exchange
6.55% Debentures Due 2028	DE28	New York Stock Exchange


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


DEERE & COMPANY
STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY
For the Three and Nine Months Ended July 30, 2023 and July 31, 2022
(In millions of dollars) Unaudited
			Total Stockholders’ Equity
			Deere & Company Stockholders
									Accumulated
	Total								Other				Redeemable
	Stockholders’		Common		Treasury		Retained		Comprehensive		Noncontrolling		Noncontrolling
	Equity		Stock		Stock		Earnings		Income (Loss)		Interests		Interest

Three Months Ended July 31, 2022
Balance May 1, 2022	$	18,907	$	5,117	$	(21,727)	$	38,805	$	(3,291)	$	3	$	99
Net income		1,884						1,884						1
Other comprehensive loss		(185)								(185)				(4)
Repurchases of common stock		(1,251)				(1,251)
Treasury shares reissued		2				2
Dividends declared		(343)						(343)
Share based awards and other		22		22										(1)
Balance July 31, 2022	$	19,036	$	5,139	$	(22,976)	$	40,346	$	(3,476)	$	3	$	95

Nine Months Ended July 31, 2022
Balance October 31, 2021	$	18,434	$	5,054	$	(20,533)	$	36,449	$	(2,539)	$	3
Acquisitions													$	105
Net income (loss)		4,887						4,885				2		(1)
Other comprehensive loss		(937)								(937)				(9)
Repurchases of common stock		(2,477)				(2,477)
Treasury shares reissued		34				34
Dividends declared		(990)						(988)				(2)
Share based awards and other		85		85
Balance July 31, 2022	$	19,036	$	5,139	$	(22,976)	$	40,346	$	(3,476)	$	3	$	95

Three Months Ended July 30, 2023
Balance April 30, 2023	$	22,399	$	5,227	$	(26,630)	$	46,336	$	(2,538)	$	4	$	102
Net income (loss)		2,978						2,978						(6)
Other comprehensive income		127								127				1
Repurchases of common stock		(2,139)				(2,139)
Treasury shares reissued		9				9
Dividends declared		(364)						(362)				(2)
Share based awards and other		41		45				(5)				1		4
Balance July 30, 2023	$	23,051	$	5,272	$	(28,760)	$	48,947	$	(2,411)	$	3	$	101

Nine Months Ended July 30, 2023
Balance October 30, 2022	$	20,265	$	5,165	$	(24,094)	$	42,247	$	(3,056)	$	3	$	92
Net income (loss)		7,799						7,797				2		(12)
Other comprehensive income		645								645				12
Repurchases of common stock		(4,696)				(4,696)
Treasury shares reissued		30				30
Dividends declared		(1,091)						(1,088)				(3)
Share based awards and other		99		107				(9)				1		9
Balance July 30, 2023	$	23,051	$	5,272	$	(28,760)	$	48,947	$	(2,411)	$	3	$	101


Accounting Standards Adopted
2022-04 — Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations
2022-02 — Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures
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


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
2022-03 — Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions


Delaware (State of incorporation)		36-2382580 (IRS employer identification no.)


ITEM 1. FINANCIAL STATEMENTS	ITEM 1. FINANCIAL STATEMENTS
DEERE & COMPANY	DEERE & COMPANY
STATEMENTS OF CONSOLIDATED INCOME	STATEMENTS OF CONSOLIDATED INCOME
For the Three and Nine Months Ended July 30, 2023 and July 31, 2022
For the Three Months Ended January 28, 2024 and January 29, 2023
(In millions of dollars and shares except per share amounts) Unaudited	(In millions of dollars and shares except per share amounts) Unaudited
		Three Months Ended				Nine Months Ended
		2023		2022		2023		2022		2024		2023
Net Sales and Revenues
Net sales		$	14,284	$	13,000	$	41,765	$	33,565	$	10,486	$	11,402
Finance and interest income			1,253		846		3,326		2,441		1,360		994
Other income			264		256		748		1,035		339		256
Total			15,801		14,102		45,839		37,041		12,185		12,652

Costs and Expenses
Cost of sales			9,624		9,511		28,288		25,124		7,200		7,934
Research and development expenses			528		481		1,571		1,336		533		495
Selling, administrative and general expenses			1,110		959		3,392		2,672		1,066		952
Interest expense			623		296		1,671		713		802		479
Other operating expenses			310		316		971		954		369		299
Total			12,195		11,563		35,893		30,799		9,970		10,159

Income of Consolidated Group before Income Taxes			3,606		2,539		9,946		6,242		2,215		2,493
Provision for income taxes			636		654		2,164		1,364		469		537

Income of Consolidated Group			2,970		1,885		7,782		4,878		1,746		1,956
Equity in income of unconsolidated affiliates			2				5		8		2		1

Net Income			2,972		1,885		7,787		4,886		1,748		1,957
Less: Net income (loss) attributable to noncontrolling interests			(6)		1		(10)		1
Less: Net loss attributable to noncontrolling interests											(3)		(2)
Net Income Attributable to Deere & Company		$	2,978	$	1,884	$	7,797	$	4,885	$	1,751	$	1,959

Per Share Data
Basic		$	10.24	$	6.20	$	26.48	$	15.97	$	6.25	$	6.58
Diluted			10.20		6.16		26.35		15.88		6.23		6.55
Dividends declared			1.25		1.13		3.70		3.23		1.47		1.20
Dividends paid			1.25		1.05		3.58		3.15		1.35		1.13

Average Shares Outstanding
Basic			290.8		304.1		294.4		305.8		279.9		297.6
Diluted			292.1		305.7		295.9		307.7		281.1		299.1


DEERE & COMPANY	DEERE & COMPANY
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME	STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME
For the Three and Nine Months Ended July 30, 2023 and July 31, 2022
For the Three Months Ended January 28, 2024 and January 29, 2023
(In millions of dollars) Unaudited	(In millions of dollars) Unaudited
		Three Months Ended				Nine Months Ended
		2023		2022		2023		2022		2024		2023

Net Income		$	2,972	$	1,885	$	7,787	$	4,886	$	1,748	$	1,957

Other Comprehensive Income (Loss), Net of Income Taxes
Retirement benefits adjustment			(9)		79		(267)		(137)		(21)		(11)
Cumulative translation adjustment			144		(269)		925		(784)		274		681
Unrealized gain (loss) on derivatives			5		(1)		(26)		41
Unrealized gain (loss) on debt securities			(13)		6		13		(57)
Other Comprehensive Income (Loss), Net of Income Taxes			127		(185)		645		(937)
Unrealized loss on derivatives											(15)		(13)
Unrealized gain on debt securities											13		27
Other Comprehensive Income, Net of Income Taxes											251		684

Comprehensive Income of Consolidated Group			3,099		1,700		8,432		3,949		1,999		2,641
Less: Comprehensive income (loss) attributable to noncontrolling interests			(5)		(3)		2		(8)		(2)		6
Comprehensive Income Attributable to Deere & Company		$	3,104	$	1,703	$	8,430	$	3,957	$	2,001	$	2,635


DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions of dollars) Unaudited
	July 30		October 30		July 31		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Assets
Cash and cash equivalents	$	6,576	$	4,774	$	4,359	$	5,137	$	7,458	$	3,976
Marketable securities		841		734		719		1,136		946		852
Trade accounts and notes receivable – net		9,297		6,410		6,696		7,795		7,739		7,609
Financing receivables – net		41,302		36,634		35,056		43,708		43,673		36,882
Financing receivables securitized – net		7,001		5,936		5,141		6,400		7,335		5,089
Other receivables		3,118		2,492		1,999		2,017		2,623		1,992
Equipment on operating leases – net		6,709		6,623		6,554		6,751		6,917		6,502
Inventories		9,350		8,495		9,121		8,937		8,160		10,056
Property and equipment – net		6,418		6,056		5,666		6,914		6,879		6,212
Goodwill		3,994		3,687		3,754		3,966		3,900		3,891
Other intangible assets – net		1,199		1,218		1,281		1,112		1,133		1,255
Retirement benefits		3,573		3,730		3,125		3,087		3,007		3,793
Deferred income taxes		1,360		824		1,110		1,833		1,814		914
Other assets		2,659		2,417		2,236		2,578		2,503		2,597
Total Assets	$	103,397	$	90,030	$	86,817	$	101,371	$	104,087	$	91,620

Liabilities and Stockholders’ Equity

Liabilities
Short-term borrowings	$	17,143	$	12,592	$	14,176	$	17,117	$	17,939	$	14,129
Short-term securitization borrowings		6,608		5,711		4,920		6,116		6,995		4,864
Accounts payable and accrued expenses		15,340		14,822		12,986		13,361		16,130		13,108
Deferred income taxes		506		495		561		550		520		519
Long-term borrowings		38,112		33,596		32,132		39,933		38,477		35,071
Retirement benefits and other liabilities		2,536		2,457		2,911		2,115		2,140		2,493
Total liabilities		80,245		69,673		67,686		79,192		82,201		70,184

Commitments and contingencies (Note 16)
Redeemable noncontrolling interest		101		92		95		100		97		100

Stockholders’ Equity
Common stock, $1 par value (issued shares at July 30, 2023 – 536,431,204)		5,272		5,165		5,139
Common stock, $1 par value (issued shares at January 28, 2024 – 536,431,204)								5,335		5,303		5,191
Common stock in treasury		(28,760)		(24,094)		(22,976)		(32,663)		(31,335)		(25,333)
Retained earnings		48,947		42,247		40,346		52,266		50,931		43,846
Accumulated other comprehensive income (loss)		(2,411)		(3,056)		(3,476)		(2,863)		(3,114)		(2,372)
Total Deere & Company stockholders’ equity		23,048		20,262		19,033		22,075		21,785		21,332
Noncontrolling interests		3		3		3		4		4		4
Total stockholders’ equity		23,051		20,265		19,036		22,079		21,789		21,336
Total Liabilities and Stockholders’ Equity	$	103,397	$	90,030	$	86,817	$	101,371	$	104,087	$	91,620


DEERE & COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Nine Months Ended July 30, 2023 and July 31, 2022
(In millions of dollars) Unaudited
	2023		2022
Cash Flows from Operating Activities
Net income	$	7,787	$	4,886
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (credit) for credit losses		(64)		62
Provision for depreciation and amortization		1,527		1,443
Impairments and other adjustments		173		81
Share-based compensation expense		112		64
Gain on remeasurement of previously held equity investment				(326)
Credit for deferred income taxes		(429)		(6)
Changes in assets and liabilities:
Receivables related to sales		(5,059)		(2,357)
Inventories		(663)		(2,526)
Accounts payable and accrued expenses		47		(15)
Accrued income taxes payable/receivable		(595)		82
Retirement benefits		(116)		(1,014)
Other		176		44
Net cash provided by operating activities		2,896		418

Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)		17,592		15,774
Proceeds from sales of equipment on operating leases		1,445		1,501
Cost of receivables acquired (excluding receivables related to sales)		(20,714)		(18,578)
Acquisitions of businesses, net of cash acquired		(82)		(488)
Purchases of property and equipment		(887)		(596)
Cost of equipment on operating leases acquired		(1,968)		(1,717)
Collateral on derivatives - net		240		(193)
Other		(189)		(133)
Net cash used for investing activities		(4,563)		(4,430)

Cash Flows from Financing Activities
Increase in total short-term borrowings		5,040		4,267
Proceeds from long-term borrowings		9,972		6,281
Payments of long-term borrowings		(5,862)		(6,578)
Repurchases of common stock		(4,663)		(2,477)
Dividends paid		(1,065)		(971)
Other		(43)		(7)
Net cash provided by financing activities		3,379		515

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		125		(143)

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash		1,837		(3,640)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		4,941		8,125
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	6,778	$	4,485

Components of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents	$	6,576	$	4,359
Restricted cash (Other assets)		202		126
Total Cash, Cash Equivalents, and Restricted Cash	$	6,778	$	4,485


	Three Months Ended July 30, 2023										Three Months Ended January 28, 2024
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total		Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	3,394	$	2,098	$	2,346	$	860	$	8,698	$	2,721	$	1,345	$	2,095	$	970	$	7,131
Canada		397		179		288		165		1,029		386		118		210		172		886
Western Europe		833		802		421		35		2,091		503		517		361		40		1,421
Central Europe and CIS		302		85		98		6		491		179		73		94		8		354
Latin America		1,326		220		371		117		2,034		819		98		256		130		1,303
Asia, Africa, Oceania, and Middle East		720		422		271		45		1,458		435		341		258		56		1,090
Total	$	6,972	$	3,806	$	3,795	$	1,228	$	15,801	$	5,043	$	2,492	$	3,274	$	1,376	$	12,185

Major product lines:
Production agriculture	$	6,721							$	6,721	$	4,791							$	4,791
Small agriculture			$	2,688						2,688			$	1,718						1,718
Turf				964						964				649						649
Construction					$	1,745				1,745					$	1,483				1,483
Compact construction						614				614						626				626
Roadbuilding						987				987						763				763
Forestry						334				334						292				292
Financial products		89		28		15	$	1,228		1,360		60		26		18	$	1,376		1,480
Other		162		126		100				388		192		99		92				383
Total	$	6,972	$	3,806	$	3,795	$	1,228	$	15,801	$	5,043	$	2,492	$	3,274	$	1,376	$	12,185

Revenue recognized:
At a point in time	$	6,857	$	3,769	$	3,767	$	30	$	14,423	$	4,955	$	2,456	$	3,243	$	28	$	10,682
Over time		115		37		28		1,198		1,378		88		36		31		1,348		1,503
Total	$	6,972	$	3,806	$	3,795	$	1,228	$	15,801	$	5,043	$	2,492	$	3,274	$	1,376	$	12,185


	Nine Months Ended July 30, 2023
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	10,079	$	6,005	$	6,807	$	2,339	$	25,230
Canada		1,303		514		865		468		3,150
Western Europe		2,092		2,254		1,278		95		5,719
Central Europe and CIS		897		420		263		26		1,606
Latin America		4,106		577		1,098		318		6,099
Asia, Africa, Oceania, and Middle East		1,709		1,291		906		129		4,035
Total	$	20,186	$	11,061	$	11,217	$	3,375	$	45,839

Major product lines:
Production agriculture	$	19,565							$	19,565
Small agriculture			$	7,835						7,835
Turf				2,782						2,782
Construction					$	5,040				5,040
Compact construction						1,750				1,750
Roadbuilding						2,939				2,939
Forestry						1,119				1,119
Financial products		149		66		40	$	3,375		3,630
Other		472		378		329				1,179
Total	$	20,186	$	11,061	$	11,217	$	3,375	$	45,839

Revenue recognized:
At a point in time	$	19,965	$	10,970	$	11,142	$	80	$	42,157
Over time		221		91		75		3,295		3,682
Total	$	20,186	$	11,061	$	11,217	$	3,375	$	45,839


	October 30, 2022
	2022		2021		2020		2019		2018		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf
Current	$	13,500	$	7,984	$	4,091	$	1,875	$	785	$	200	$	4,111	$	32,546
30-59 days past due		46		63		36		17		7		3		19		191
60-89 days past due		14		25		13		6		2		1		5		66
90+ days past due		1														1
Non-performing		27		60		44		28		18		19		8		204
Construction and forestry
Current		2,964		1,974		842		292		73		12		108		6,265
30-59 days past due		53		52		23		9		2		1		3		143
60-89 days past due		19		16		7		3		1				1		47
90+ days past due		1		4		1		3				1				10
Non-performing		25		61		34		19		7		3				149
Total	$	16,650	$	10,239	$	5,091	$	2,252	$	895	$	240	$	4,255	$	39,622


	Production &		Small Ag		Construction
	Precision Ag		& Turf		& Forestry		Total
Goodwill at October 31, 2021	$	542	$	265	$	2,484	$	3,291
Acquisitions		132		69		597		798
Translation adjustments		(23)		(11)		(301)		(335)
Goodwill at July 31, 2022	$	651	$	323	$	2,780	$	3,754

Goodwill at October 30, 2022	$	646	$	318	$	2,723	$	3,687
Acquisitions		41		39				80
Translation adjustments		23		8		196		227
Goodwill at July 30, 2023	$	710	$	365	$	2,919	$	3,994


	Fair Value					Losses
						Three Months Ended			Nine Months Ended
	July 30	October 30		July 31		July 30	July 31		July 30	July 31
	2023	2022		2022		2023	2022		2023	2022
Inventories		$	19	$	13		$	4		$	12
Property and equipment – net			15								41
Other intangible assets – net											28


	Three Months									Nine Months
	PPA		SAT	CF		FS		Total		PPA		SAT		CF		FS		Total
2023 Expense:
Financing incentive – SA&G expense																$	173	$	173

2022 Expense (benefit):
Gain on remeasurement of equity investment – Other income														$	(326)				(326)
Total Russia/Ukraine events expense (benefit)	$	(1)		$	1	$	7	$	7	$	45	$	1		48		33		127
UAW ratification bonus – Cost of sales											53		9		28				90
Total 2022 expense (benefit)		(1)			1		7		7		98		10		(250)		33		(109)

Period over period change	$	1		$	(1)	$	(7)	$	(7)	$	(98)	$	(10)	$	250	$	140	$	282

Grant Date

Fair Value

Service-based

Performance/service-based

Market/service-based