Document and Entity Information
Document and Entity Information | 3 Months Ended |
Jan. 28, 2024 shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Jan. 28, 2024 |
Entity File Number | 1-4121 |
Entity Registrant Name | DEERE & CO |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 36-2382580 |
Entity Address, Address Line One | One John Deere Place |
Entity Address, City or Town | Moline |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 61265 |
City Area Code | 309 |
Local Phone Number | 765-8000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 278,358,210 |
Current Fiscal Year End Date | --10-27 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q1 |
Entity Central Index Key | 0000315189 |
Amendment Flag | false |
Common Stock | |
Document Information [Line Items] | |
Title of 12(b) Security | Common stock, $1 par value |
Trading Symbol | DE |
Security Exchange Name | NYSE |
6.55% Debentures Due 2028 | |
Document Information [Line Items] | |
Title of 12(b) Security | 6.55% Debentures Due 2028 |
Trading Symbol | DE28 |
Security Exchange Name | NYSE |
STATEMENTS OF CONSOLIDATED INCO
STATEMENTS OF CONSOLIDATED INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Net Sales and Revenues | ||
Net sales and revenues | $ 12,185 | $ 12,652 |
Costs and Expenses | ||
Research and development expenses | 533 | 495 |
Selling, administrative and general expenses | 1,066 | 952 |
Interest expense | 802 | 479 |
Other operating expenses | 369 | 299 |
Total | 9,970 | 10,159 |
Income of Consolidated Group before Income Taxes | 2,215 | 2,493 |
Provision for income taxes | 469 | 537 |
Income of Consolidated Group | 1,746 | 1,956 |
Equity in income of unconsolidated affiliates | 2 | 1 |
Net Income | 1,748 | 1,957 |
Less: Net loss attributable to noncontrolling interests | (3) | (2) |
Net Income Attributable to Deere & Company | $ 1,751 | $ 1,959 |
Per Share Data | ||
Basic (in dollars per share) | $ 6.25 | $ 6.58 |
Diluted (in dollars per share) | 6.23 | 6.55 |
Dividends declared (in dollars per share) | 1.47 | 1.20 |
Dividends paid (in dollars per share) | $ 1.35 | $ 1.13 |
Average Shares Outstanding | ||
Basic (in shares) | 279.9 | 297.6 |
Diluted (in shares) | 281.1 | 299.1 |
Net Sales | ||
Net Sales and Revenues | ||
Net sales and revenues | $ 10,486 | $ 11,402 |
Cost of Sales | ||
Cost of sales | 7,200 | 7,934 |
Finance and Interest Income | ||
Net Sales and Revenues | ||
Net sales and revenues | 1,360 | 994 |
Other income | ||
Net Sales and Revenues | ||
Net sales and revenues | $ 339 | $ 256 |
STATEMENTS OF CONSOLIDATED COMP
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME | ||
Net Income | $ 1,748 | $ 1,957 |
Other Comprehensive Income (Loss), Net of Income Taxes | ||
Retirement benefits adjustment | (21) | (11) |
Cumulative translation adjustment | 274 | 681 |
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 | 1,999 | 2,641 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (2) | 6 |
Comprehensive Income Attributable to Deere & Company | $ 2,001 | $ 2,635 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
ASSETS | |||
Cash and cash equivalents | $ 5,137 | $ 7,458 | $ 3,976 |
Marketable securities | 1,136 | 946 | 852 |
Trade accounts and notes receivable - net | 7,795 | 7,739 | 7,609 |
Other receivables | 2,017 | 2,623 | 1,992 |
Equipment on operating leases - net | 6,751 | 6,917 | 6,502 |
Inventories | 8,937 | 8,160 | 10,056 |
Property and equipment - net | 6,914 | 6,879 | 6,212 |
Goodwill | 3,966 | 3,900 | 3,891 |
Other intangible assets - net | 1,112 | 1,133 | 1,255 |
Retirement benefits | 3,087 | 3,007 | 3,793 |
Deferred income taxes | 1,833 | 1,814 | 914 |
Other assets | 2,578 | 2,503 | 2,597 |
Total Assets | 101,371 | 104,087 | 91,620 |
LIABILITIES | |||
Short-term borrowings | 17,117 | 17,939 | 14,129 |
Short-term securitization borrowings | 6,116 | 6,995 | 4,864 |
Accounts payable and accrued expenses | 13,361 | 16,130 | 13,108 |
Deferred income taxes | 550 | 520 | 519 |
Long-term borrowings | 39,933 | 38,477 | 35,071 |
Retirement benefits and other liabilities | 2,115 | 2,140 | 2,493 |
Total liabilities | 79,192 | 82,201 | 70,184 |
Commitments and contingencies (Note 16) | |||
Redeemable noncontrolling interest | 100 | 97 | 100 |
STOCKHOLDERS' EQUITY | |||
Common stock, $1 par value (issued shares at January 28, 2024 - 536,431,204) | 5,335 | 5,303 | 5,191 |
Common stock in treasury | (32,663) | (31,335) | (25,333) |
Retained earnings | 52,266 | 50,931 | 43,846 |
Accumulated other comprehensive income (loss) | (2,863) | (3,114) | (2,372) |
Total Deere & Company stockholders' equity | 22,075 | 21,785 | 21,332 |
Noncontrolling interests | 4 | 4 | 4 |
Total stockholders' equity | 22,079 | 21,789 | 21,336 |
Total Liabilities and Stockholders' Equity | 101,371 | 104,087 | 91,620 |
Unrestricted | |||
ASSETS | |||
Financing receivables - net | 43,708 | 43,673 | 36,882 |
Securitized | |||
ASSETS | |||
Financing receivables - net | $ 6,400 | $ 7,335 | $ 5,089 |
Location of liability for pledged asset | Short-term securitization borrowings | Short-term securitization borrowings | Short-term securitization borrowings |
Other assets | $ 140 | $ 152 | $ 97 |
Total Assets | $ 6,540 | $ 7,487 | $ 5,186 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) | Jan. 28, 2024 $ / shares shares |
CONDENSED CONSOLIDATED BALANCE SHEETS | |
Common stock, par value (in dollars per share) | $ / shares | $ 1 |
Common stock, issued shares | shares | 536,431,204 |
STATEMENTS OF CONSOLIDATED CASH
STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Cash Flows from Operating Activities | ||
Net income | $ 1,748 | $ 1,957 |
Adjustments to reconcile net income to net cash used for operating activities: | ||
Provision (credit) for credit losses | 31 | (130) |
Provision for depreciation and amortization | 520 | 494 |
Share-based compensation expense | 46 | 23 |
Provision (credit) for deferred income taxes | 27 | (56) |
Changes in assets and liabilities: | ||
Receivables related to sales | (277) | (1,015) |
Inventories | (723) | (1,279) |
Accounts payable and accrued expenses | (2,327) | (1,577) |
Accrued income taxes payable/receivable | 183 | 199 |
Retirement benefits | (129) | (48) |
Other | (7) | 186 |
Net cash used for operating activities | (908) | (1,246) |
Cash Flows from Investing Activities | ||
Collections of receivables (excluding receivables related to sales) | 7,752 | 7,198 |
Proceeds from sales of equipment on operating leases | 506 | 497 |
Cost of receivables acquired (excluding receivables related to sales) | (6,447) | (6,322) |
Purchases of property and equipment | (362) | (315) |
Cost of equipment on operating leases acquired | (454) | (497) |
Collateral on derivatives - net | 310 | 345 |
Other | (88) | (146) |
Net cash provided by investing activities | 1,217 | 760 |
Cash Flows from Financing Activities | ||
Net proceeds (payments) in short-term borrowings (original maturities three months or less) | (2,951) | 697 |
Proceeds from borrowings issued (original maturities greater than three months) | 5,287 | 2,505 |
Payments of borrowings (original maturities greater than three months) | (3,237) | (1,925) |
Repurchases of common stock | (1,328) | (1,257) |
Dividends paid | (386) | (341) |
Other | (30) | (18) |
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, Cash Equivalents, and Restricted Cash at Beginning of Period | 7,620 | 4,941 |
Cash, Cash Equivalents, and Restricted Cash at End of Period | 5,300 | 4,178 |
Components of Cash, Cash Equivalents, and Restricted Cash | ||
Cash and cash equivalents | 5,137 | 3,976 |
Restricted cash (Other assets) | $ 163 | $ 202 |
Balance sheet location of restricted cash | Other assets | Other assets |
Total Cash, Cash Equivalents, and Restricted Cash | $ 5,300 | $ 4,178 |
STATEMENTS OF CHANGES IN CONSOL
STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Common Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total |
Balance at Oct. 30, 2022 | $ 5,165 | $ 42,247 | $ (3,056) | $ 3 | $ 20,265 | |
Balance at Oct. 30, 2022 | $ (24,094) | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 1,959 | 1 | 1,960 | |||
Other comprehensive income | 684 | 684 | ||||
Repurchases of common stock | (1,257) | (1,257) | ||||
Treasury shares reissued | 18 | 18 | ||||
Dividends declared | (356) | (356) | ||||
Share based awards and other | 26 | (4) | 22 | |||
Balance at Jan. 29, 2023 | 5,191 | 43,846 | (2,372) | 4 | 21,336 | |
Balance at Jan. 29, 2023 | (25,333) | (25,333) | ||||
Redeemable Noncontrolling Interest - Balance at Oct. 30, 2022 | 92 | |||||
Increase (Decrease) in Redeemable Noncontrolling Interest | ||||||
Net loss | (3) | |||||
Other comprehensive income | 8 | |||||
Other | 3 | |||||
Redeemable Noncontrolling Interest - Balance at Jan. 29, 2023 | 100 | |||||
Balance at Oct. 29, 2023 | 5,303 | 50,931 | (3,114) | 4 | 21,789 | |
Balance at Oct. 29, 2023 | (31,335) | (31,335) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 1,751 | 1 | 1,752 | |||
Other comprehensive income | 251 | 251 | ||||
Repurchases of common stock | (1,340) | (1,340) | ||||
Treasury shares reissued | 12 | 12 | ||||
Dividends declared | (411) | (411) | ||||
Share based awards and other | 32 | (5) | (1) | 26 | ||
Balance at Jan. 28, 2024 | $ 5,335 | $ 52,266 | $ (2,863) | $ 4 | 22,079 | |
Balance at Jan. 28, 2024 | $ (32,663) | (32,663) | ||||
Redeemable Noncontrolling Interest - Balance at Oct. 29, 2023 | 97 | |||||
Increase (Decrease) in Redeemable Noncontrolling Interest | ||||||
Net loss | (4) | |||||
Other comprehensive income | 1 | |||||
Other | 6 | |||||
Redeemable Noncontrolling Interest - Balance at Jan. 28, 2024 | $ 100 |
ORGANIZATION AND CONSOLIDATION
ORGANIZATION AND CONSOLIDATION | 3 Months Ended |
Jan. 28, 2024 | |
ORGANIZATION AND CONSOLIDATION | |
ORGANIZATION AND CONSOLIDATION | (1) Organization and Consolidation Deere & Company has been developing innovative solutions to help its customers become more profitable for more than 185 years. References to “Deere & Company,” “John Deere,” “we,” “us,” or “our” include our consolidated subsidiaries. We manage our business through the following operating segments: production and precision agriculture (PPA), small agriculture and turf (SAT), construction and forestry (CF), and financial services (FS). References to “agriculture and turf” include both PPA and SAT. We use a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period. The first quarter ends for fiscal year 2024 and 2023 were January 28, 2024 and January 29, 2023, respectively. Both periods contained 13 weeks. Unless otherwise stated, references to particular years, quarters, or months refer to our fiscal years generally ending in October and the associated periods in those fiscal years. All amounts are presented in millions of dollars, unless otherwise specified. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING STANDARDS | 3 Months Ended |
Jan. 28, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING STANDARDS | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING STANDARDS | (2) Summary of Significant Accounting Policies and New Accounting Standards Quarterly Financial Statements T Use of Estimates in Financial Statements Certain accounting policies require management to make estimates and assumptions in determining the amounts reflected in the financial statements and related disclosures. Actual results could differ from those estimates. New Accounting Standards We closely monitor all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) and other authoritative guidance. We adopted the following standards in 2024, none of which had a material effect on our consolidated financial statements. 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 Accounting Standards to be Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and cash taxes paid both in the U.S. and foreign jurisdictions. The effective date of the ASU is fiscal year 2026. We are assessing the effect of this update on our related disclosures. We will also adopt the following standards in future periods, none of which are expected to have a material effect on our consolidated financial statements. 2023-07 — Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures 2023-06 — Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative 2023-05 — Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement 2022-03 — Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Jan. 28, 2024 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | (3) Revenue Recognition Our net sales and revenues by primary geographic market, major product line, and timing of revenue recognition follow: Three Months Ended January 28, 2024 Production & Precision Ag Small Ag & Turf Construction & Forestry Financial Services Total Primary geographic markets: United States $ 2,721 $ 1,345 $ 2,095 $ 970 $ 7,131 Canada 386 118 210 172 886 Western Europe 503 517 361 40 1,421 Central Europe and CIS 179 73 94 8 354 Latin America 819 98 256 130 1,303 Asia, Africa, Oceania, and Middle East 435 341 258 56 1,090 Total $ 5,043 $ 2,492 $ 3,274 $ 1,376 $ 12,185 Major product lines: Production agriculture $ 4,791 $ 4,791 Small agriculture $ 1,718 1,718 Turf 649 649 Construction $ 1,483 1,483 Compact construction 626 626 Roadbuilding 763 763 Forestry 292 292 Financial products 60 26 18 $ 1,376 1,480 Other 192 99 92 383 Total $ 5,043 $ 2,492 $ 3,274 $ 1,376 $ 12,185 Revenue recognized: At a point in time $ 4,955 $ 2,456 $ 3,243 $ 28 $ 10,682 Over time 88 36 31 1,348 1,503 Total $ 5,043 $ 2,492 $ 3,274 $ 1,376 $ 12,185 Three Months Ended January 29, 2023 Production & Precision Ag Small Ag & Turf Construction & Forestry Financial Services Total Primary geographic markets: United States $ 2,628 $ 1,665 $ 1,901 $ 713 $ 6,907 Canada 360 146 275 150 931 Western Europe 501 564 365 29 1,459 Central Europe and CIS 202 123 75 12 412 Latin America 1,237 156 339 95 1,827 Asia, Africa, Oceania, and Middle East 375 400 300 41 1,116 Total $ 5,303 $ 3,054 $ 3,255 $ 1,040 $ 12,652 Major product lines: Production agriculture $ 5,112 $ 5,112 Small agriculture $ 2,194 2,194 Turf 719 719 Construction $ 1,483 1,483 Compact construction 473 473 Roadbuilding 818 818 Forestry 356 356 Financial products 31 18 13 $ 1,040 1,102 Other 160 123 112 395 Total $ 5,303 $ 3,054 $ 3,255 $ 1,040 $ 12,652 Revenue recognized: At a point in time $ 5,248 $ 3,029 $ 3,230 $ 23 $ 11,530 Over time 55 25 25 1,017 1,122 Total $ 5,303 $ 3,054 $ 3,255 $ 1,040 $ 12,652 We invoice in advance of recognizing the sale of certain products and the revenue for certain services. These relate to extended warranty premiums, advance payments for future equipment sales, and subscription and service revenue related to precision guidance, telematic services, and other information enabled solutions. These advanced customer payments are presented as deferred revenue, a contract liability, in “Accounts payable and accrued expenses.” The deferred revenue received, but not recognized in revenue, was $1,747, $1,697, and $1,502 at January 28, 2024, October 29, 2023, and January 29, 2023, respectively. The contract liability is reduced as the revenue is recognized. During the three months ended January 28, 2024 and January 29, 2023, $230 and $215, respectively, of revenue was recognized from deferred revenue that was recorded as a contract liability at the beginning of the respective fiscal year. The amount of unsatisfied performance obligations for contracts with an original duration greater than one year was $1,531 at January 28, 2024. The estimated revenue to be recognized by fiscal year follows: remainder of 2024 2025 2026 2027 2028 2029 later years |
OTHER COMPREHENSIVE INCOME ITEM
OTHER COMPREHENSIVE INCOME ITEMS | 3 Months Ended |
Jan. 28, 2024 | |
OTHER COMPREHENSIVE INCOME ITEMS | |
OTHER COMPREHENSIVE INCOME ITEMS | (4) Other Comprehensive Income Items The after-tax components of accumulated other comprehensive income (loss) follow: January 28 October 29 January 29 2024 2023 2023 Retirement benefits adjustment $ (866) $ (845) $ (400) Cumulative translation adjustment (1,877) (2,151) (1,913) Unrealized gain (loss) on derivatives (23) (8) 8 Unrealized loss on debt securities (97) (110) (67) Total accumulated other comprehensive income (loss) $ (2,863) $ (3,114) $ (2,372) The following tables reflect amounts recorded in other comprehensive income (loss), as well as reclassifications out of other comprehensive income (loss). Before Tax After Tax (Expense) Tax Three Months Ended January 28, 2024 Amount Credit Amount Cumulative translation adjustment $ 273 $ 1 $ 274 Unrealized gain (loss) on derivatives: Unrealized hedging gain (loss) (8) 2 (6) Reclassification of realized (gain) loss to: Interest rate contracts – Interest expense (11) 2 (9) Net unrealized gain (loss) on derivatives (19) 4 (15) Unrealized gain (loss) on debt securities: Unrealized holding gain (loss) 1 6 7 Reclassification of realized (gain) loss – Other income 8 (2) 6 Net unrealized gain (loss) on debt securities 9 4 13 Retirement benefits adjustment: Net actuarial gain (loss) (17) 4 (13) Reclassification to Other operating expenses through amortization of: Actuarial (gain) loss (20) 5 (15) Prior service (credit) cost 9 (2) 7 Net unrealized gain (loss) on retirement benefits adjustment (28) 7 (21) Total other comprehensive income (loss) $ 235 $ 16 $ 251 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 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Jan. 28, 2024 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | (5) Earnings Per Share A reconciliation of basic and diluted net income per share attributable to Deere & Company follows in millions, except per share amounts: Three Months Ended January 28 January 29 2024 2023 Net income attributable to Deere & Company $ 1,751 $ 1,959 Average shares outstanding 279.9 297.6 Basic per share $ 6.25 $ 6.58 Average shares outstanding 279.9 297.6 Effect of dilutive stock options and restricted stock awards 1.2 1.5 Total potential shares outstanding 281.1 299.1 Diluted per share $ 6.23 $ 6.55 Shares excluded from EPS calculation, as antidilutive .2 .1 |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS | 3 Months Ended |
Jan. 28, 2024 | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | (6) Pension and Other Postretirement Benefits We have several funded and unfunded defined benefit pension plans and other postretirement benefit (OPEB) plans. These plans cover U.S. employees and certain foreign employees. The components of net periodic pension and OPEB (benefit) cost consisted of the following: Three Months Ended January 28 January 29 2024 2023 Pensions Service cost $ 58 $ 60 Interest cost 136 133 Expected return on plan assets (241) (212) Amortization of actuarial gain (4) (5) Amortization of prior service cost 10 10 Net benefit $ (41) $ (14) OPEB Service cost $ 5 $ 7 Interest cost 43 43 Expected return on plan assets (27) (29) Amortization of actuarial gain (16) (16) Amortization of prior service credit (1) (1) Net cost $ 4 $ 4 The components of net periodic pension and OPEB (benefit) cost excluding the service cost component are included in the line item “Other operating expenses.” During the 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, we contributed $60 to a U.S. non-union Voluntary Employees’ Beneficiary Association trust, which is included in the OPEB contributed amount. The contribution will be used to fund salary postretirement health care benefits during the remainder of 2024. |
SEGMENT DATA
SEGMENT DATA | 3 Months Ended |
Jan. 28, 2024 | |
SEGMENT DATA | |
SEGMENT DATA | (7) Segment Data Information relating to operations by operating segment follows. 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 PPA, SAT, and CF is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit 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 operating assets were as follows: January 28 October 29 January 29 2024 2023 2023 Production & precision ag $ 9,059 $ 8,734 $ 9,393 Small ag & turf 4,426 4,348 4,893 Construction & forestry 7,371 7,139 7,232 Financial services 69,900 70,732 59,721 Corporate 10,615 13,134 10,381 Total assets $ 101,371 $ 104,087 $ 91,620 |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 3 Months Ended |
Jan. 28, 2024 | |
FINANCING RECEIVABLES | |
FINANCING RECEIVABLES | (8) Financing Receivables We monitor the credit quality of financing receivables based on delinquency 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. The credit quality analysis of retail notes, financing leases, and revolving charge accounts (collectively, retail customer receivables) by year of origination was as follows: January 28, 2024 2024 2023 2022 2021 2020 Prior Years Revolving Charge Accounts Total Retail customer receivables: Agriculture and turf Current $ 3,248 $ 13,626 $ 7,731 $ 4,577 $ 2,032 $ 931 $ 2,798 $ 34,943 30-59 days past due 5 122 66 47 22 11 71 344 60-89 days past due 1 50 26 15 7 5 16 120 90+ days past due 1 1 3 4 9 Non-performing 49 95 66 34 42 11 297 Construction and forestry Current 803 2,698 1,743 911 276 109 101 6,641 30-59 days past due 8 73 46 26 8 3 5 169 60-89 days past due 26 20 13 6 3 2 70 90+ days past due 2 1 1 4 Non-performing 1 67 86 48 20 9 2 233 Total retail customer receivables $ 4,066 $ 16,712 $ 9,816 $ 5,707 $ 2,409 $ 1,114 $ 3,006 $ 42,830 October 29, 2023 2023 2022 2021 2020 2019 Prior Years Revolving Charge Accounts Total Retail customer receivables: Agriculture and turf Current $ 15,191 $ 8,430 $ 5,120 $ 2,334 $ 853 $ 280 $ 4,526 $ 36,734 30-59 days past due 62 75 39 21 9 3 29 238 60-89 days past due 18 26 18 10 4 2 9 87 90+ days past due 2 1 3 3 9 Non-performing 30 78 62 33 22 22 8 255 Construction and forestry Current 2,927 1,961 1,084 353 84 29 119 6,557 30-59 days past due 49 34 27 9 4 4 127 60-89 days past due 19 14 12 5 2 2 54 90+ days past due 6 1 1 8 Non-performing 42 80 55 23 9 4 1 214 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 The credit quality analysis of wholesale receivables by year of origination was as follows: January 28, 2024 2024 2023 2022 2021 2020 Prior Years Revolving Total Wholesale receivables: Agriculture and turf Current $ 266 $ 463 $ 68 $ 6 $ 3 $ 1 $ 5,757 $ 6,564 30+ days past due 1 1 Non-performing 1 1 Construction and forestry Current 6 14 4 19 1 863 907 30+ days past due Non-performing Total wholesale receivables $ 272 $ 478 $ 72 $ 25 $ 3 $ 3 $ 6,620 $ 7,473 October 29, 2023 2023 2022 2021 2020 2019 Prior Years Revolving Total Wholesale receivables: Agriculture and turf Current $ 631 $ 93 $ 21 $ 4 $ 1 $ 160 $ 5,175 $ 6,085 30+ days past due Non-performing 1 1 Construction and forestry Current 23 5 20 76 712 836 30+ days past due Non-performing 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 An analysis of the allowance for credit losses and investment in financing receivables follows: Three Months Ended January 28, 2024 Retail Notes Revolving & Financing Charge Wholesale Leases Accounts Receivables Total Allowance: Beginning of period balance $ 172 $ 21 $ 4 $ 197 Provision (credit) 35 (2) 33 Write-offs (31) (11) (42) Recoveries 1 8 9 Translation adjustments (2) (2) End of period balance $ 177 $ 16 $ 2 $ 195 Financing receivables: End of period balance $ 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, 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.” The associated allowance for credit losses was reversed and a valuation allowance for the 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. The 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 prior twelve months were not significant during the three months ended January 28, 2024. In addition, at January 28, 2024, we had no commitments to provide additional financing to these customers. |
SECURITIZATION OF FINANCING REC
SECURITIZATION OF FINANCING RECEIVABLES | 3 Months Ended |
Jan. 28, 2024 | |
SECURITIZATION OF FINANCING RECEIVABLES | |
SECURITIZATION OF FINANCING RECEIVABLES | (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. 2. 3. As part of step 1, these receivables are legally isolated from the claims of our general creditors. This ensures cash receipts from the financing receivables are accessible to pay back securitization program investors. The structure of these transactions does not meet the accounting criteria for a sale of receivables. As a result, they are accounted for as a secured borrowing. The receivables and borrowings remain on our balance sheet and are separately reported as “Financing receivables securitized – net” and “Short-term securitization borrowings,” respectively. The components of securitization programs were as follows: January 28 October 29 January 29 2024 2023 2023 Financing receivables securitized (retail notes) $ 6,418 $ 7,357 $ 5,102 Allowance for credit losses (18) (22) (13) Other assets (primarily restricted cash) 140 152 97 Total restricted securitized assets $ 6,540 $ 7,487 $ 5,186 Short-term securitization borrowings $ 6,116 $ 6,995 $ 4,864 Accrued interest on borrowings 10 13 6 Total liabilities related to restricted securitized assets $ 6,126 $ 7,008 $ 4,870 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Jan. 28, 2024 | |
INVENTORIES | |
INVENTORIES | (10) Inventories A majority of inventories owned by us are valued at cost on the “last-in, first-out” (LIFO) basis. If all inventories had been valued on a “first-in, first-out” (FIFO) basis, the estimated inventories by major classification would have been as follows: 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 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS - NET | 3 Months Ended |
Jan. 28, 2024 | |
GOODWILL AND OTHER INTANGIBLE ASSETS - NET | |
GOODWILL AND OTHER INTANGIBLE ASSETS - NET | (11) Goodwill and Other Intangible Assets – Net The changes in amounts of goodwill by operating segments were as follows. There were no accumulated goodwill impairment 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: January 28 October 29 January 29 2024 2023 2023 Customer lists and relationships $ 509 $ 501 $ 522 Technology, patents, trademarks, and other 1,412 1,387 1,387 Total at cost 1,921 1,888 1,909 Less accumulated amortization: Customer lists and relationships 207 195 184 Technology, patents, trademarks, and other 602 560 470 Total accumulated amortization 809 755 654 Other intangible assets – net $ 1,112 $ 1,133 $ 1,255 The amortization of other intangible assets in the first quarter of 2024 and 2023 was $42 and $39, respectively. The estimated amortization expense for the next five years is as follows: remainder of 2024 – $131, 2025 – $144, 2026 – $121, 2027 – $119, 2028 – $87, and 2029 – $74. |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 3 Months Ended |
Jan. 28, 2024 | |
SHORT-TERM BORROWINGS | |
SHORT-TERM BORROWINGS | (12) Short-Term Borrowings Short-term borrowings were as follows: January 28 October 29 January 29 2024 2023 2023 Commercial paper $ 8,378 $ 9,100 $ 6,425 Notes payable to banks 310 483 303 Finance lease obligations due within one year 27 25 23 Long-term borrowings due within one year 8,402 8,331 7,378 Short-term borrowings $ 17,117 $ 17,939 $ 14,129 |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 3 Months Ended |
Jan. 28, 2024 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | (13) Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: January 28 October 29 January 29 2024 2023 2023 Accounts payable: Trade payables $ 3,184 $ 3,467 $ 3,616 Dividends payable 413 388 358 Operating lease liabilities 293 281 305 Deposits withheld from dealers and merchants 153 163 153 Payables to unconsolidated affiliates 6 6 10 Other 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 243 1,243 256 Extended warranty premium 1,047 1,021 901 Unearned revenue (contractual liability) 700 676 601 Unearned operating lease revenue 456 451 406 Accrued interest 502 434 371 Other 1,377 1,397 1,289 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 $2,410 at January 28, 2024, $2,228 at October 29, 2023, and $1,540 at January 29, 2023. Other eliminations were made for accrued taxes and other accrued expenses. |
LONG-TERM BORROWINGS
LONG-TERM BORROWINGS | 3 Months Ended |
Jan. 28, 2024 | |
LONG-TERM BORROWINGS | |
LONG-TERM BORROWINGS | (14) Long-Term Borrowings Long-term borrowings consisted of: January 28 October 29 January 29 2024 2023 2023 Underwritten term debt U.S. dollar notes and debentures: 2.75% notes due 2025 $ 700 $ 700 $ 700 6.55% debentures due 2028 200 200 200 5.375% notes due 2029 500 500 500 3.10% notes due 2030 700 700 700 8.10% debentures due 2030 250 250 250 7.125% notes due 2031 300 300 300 3.90% notes due 2042 1,250 1,250 1,250 2.875% notes due 2049 500 500 500 3.75% notes due 2050 850 850 850 Euro notes: 1.375% notes due 2024 (€800 principal) 871 1.85% notes due 2028 (€600 principal) 651 634 653 2.20% notes due 2032 (€600 principal) 651 634 653 1.65% notes due 2039 (€650 principal) 705 687 708 Serial issuances: Medium-term notes 31,001 29,638 25,618 Other notes and finance lease obligations 1,810 1,769 1,440 Less debt issuance costs and debt discounts (135) (135) (122) Long-term borrowings $ 39,933 $ 38,477 $ 35,071 Medium-term notes due through 2033 are primarily offered by prospectus and issued at fixed and variable rates. The principal balances of the medium-term notes 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. |
LEASES - LESSOR
LEASES - LESSOR | 3 Months Ended |
Jan. 28, 2024 | |
LEASES - LESSOR | |
LEASES - LESSOR | (15) Leases - Lessor We lease equipment manufactured or sold by us through John Deere Financial. Sales-type and direct financing leases are reported in “Financing receivables – net.” Operating leases are reported in “Equipment on operating leases – net.” Lease revenues earned by us follow: Three Months Ended January 28 January 29 2024 2023 Sales-type and direct finance lease revenues $ 47 $ 41 Operating lease revenues 339 321 Variable lease revenues 4 6 Total lease revenues $ 390 $ 368 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jan. 28, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | (16) Commitments and Contingencies A standard warranty is provided as assurance that the equipment will function as intended. The standard warranty period varies by product and region. At the time a sale is recognized, we record an estimate of future warranty costs based on historical claims rate experience and estimated population under warranty. The reconciliation of the changes in the warranty liability follows: Three Months Ended January 28 January 29 2024 2023 Beginning of period balance $ 1,610 $ 1,427 Warranty claims paid (309) (262) New product warranty accruals 281 256 Foreign exchange 7 23 End of period balance $ 1,589 $ 1,444 The costs for extended warranty programs are recognized as incurred. In certain international markets, we provide guarantees to banks for the retail financing of John Deere equipment. At January 28, 2024, the notional value of these guarantees was $166. We may repossess the equipment collateralizing the receivables. At 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 January 28, 2024, we had commitments of $597 for the construction and acquisition of property and equipment. Also, at January 28, 2024, we had restricted assets of $214, classified as “Other assets.” We are subject to various unresolved legal actions. The 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 our financial statements. The most prevalent legal claims relate to product liability (including asbestos-related liability), retail credit, employment, patent, trademark, and antitrust matters |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Jan. 28, 2024 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | (17) Fair Value Measurements The fair values of financial instruments that do not approximate the carrying values were as follows. Long-term borrowings exclude finance lease liabilities. January 28, 2024 October 29, 2023 January 29, 2023 Carrying Fair Carrying Fair Carrying Fair 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 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. Assets and liabilities measured at fair value on a recurring basis follow, excluding our cash equivalents, which were carried at a cost that approximates fair value and consisted of money market funds and time deposits. 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. The contractual maturities of debt securities at 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. Mortgage-backed securities contain prepayment provisions and are not categorized by contractual maturity. The following is a description of the valuation methodologies we use to measure certain financial instruments on the balance sheets at fair value: Marketable securities – Derivatives – Financing receivables – |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended |
Jan. 28, 2024 | |
DERIVATIVE INSTRUMENTS | |
DERIVATIVE INSTRUMENTS | (18) Derivative Instruments Fair values of our derivative instruments and the associated notional amounts were as follows. Assets are recorded in “Other assets,” while liabilities are recorded in “Accounts payable and accrued expenses.” 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 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: 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 our derivative agreements contain credit support provisions that may require 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 January 28, 2024, October 29, 2023, and January 29, 2023 was $691, $1,076, and $781, respectively. In accordance with the limits established in these agreements, we posted $368, $659, and $349 of cash collateral at 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 29, 2023, and January 29, 2023 to participate in an international futures market to hedge currency exposure, not included in the table below. Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities related to netting arrangements and any collateral received or paid follows: 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 |
SHARE-BASED AWARDS
SHARE-BASED AWARDS | 3 Months Ended |
Jan. 28, 2024 | |
SHARE-BASED AWARDS | |
SHARE-BASED AWARDS | (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: Grant Date Shares Fair Value Service-based 360 $ 377.04 Performance/service-based 52 360.53 Market/service-based 52 370.87 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. |
SPECIAL ITEMS
SPECIAL ITEMS | 3 Months Ended |
Jan. 28, 2024 | |
SPECIAL ITEMS | |
SPECIAL ITEMS | (20) S pecial 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jan. 28, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | ( 21) Subsequent Events In February 2024, we entered into a retail note securitization transaction, resulting in $529 of secured borrowings. On February 28, 2024, a quarterly dividend of $1.47 per share was declared at the Board of Directors meeting, payable on May 8, 2024, to stockholders of record on March 29, 2024. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING STANDARDS (Policies) | 3 Months Ended |
Jan. 28, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING STANDARDS | |
Fiscal Period, Policy | We use a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period. The first quarter ends for fiscal year 2024 and 2023 were January 28, 2024 and January 29, 2023, respectively. Both periods contained 13 weeks. Unless otherwise stated, references to particular years, quarters, or months refer to our fiscal years generally ending in October and the associated periods in those fiscal years. |
Use of Estimates in Financial Statements, Policy | Certain accounting policies require management to make estimates and assumptions in determining the amounts reflected in the financial statements and related disclosures. Actual results could differ from those estimates. |
New Accounting Standards, Policy | We closely monitor all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) and other authoritative guidance. We adopted the following standards in 2024, none of which had a material effect on our consolidated financial statements. 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 Accounting Standards to be Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and cash taxes paid both in the U.S. and foreign jurisdictions. The effective date of the ASU is fiscal year 2026. We are assessing the effect of this update on our related disclosures. We will also adopt the following standards in future periods, none of which are expected to have a material effect on our consolidated financial statements. 2023-07 — Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures 2023-06 — Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative 2023-05 — Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement 2022-03 — Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions |
Financing Receivables - Allowance for Credit Losses, Policy | We monitor the credit quality of financing receivables based on delinquency 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. |
Securitization of Financing Receivables, Policy | 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. 2. 3. As part of step 1, these receivables are legally isolated from the claims of our general creditors. This ensures cash receipts from the financing receivables are accessible to pay back securitization program investors. The structure of these transactions does not meet the accounting criteria for a sale of receivables. As a result, they are accounted for as a secured borrowing. The receivables and borrowings remain on our balance sheet and are separately reported as “Financing receivables securitized – net” and “Short-term securitization borrowings,” respectively. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
REVENUE RECOGNITION | |
Schedule of Revenue Recognition | Our net sales and revenues by primary geographic market, major product line, and timing of revenue recognition follow: Three Months Ended January 28, 2024 Production & Precision Ag Small Ag & Turf Construction & Forestry Financial Services Total Primary geographic markets: United States $ 2,721 $ 1,345 $ 2,095 $ 970 $ 7,131 Canada 386 118 210 172 886 Western Europe 503 517 361 40 1,421 Central Europe and CIS 179 73 94 8 354 Latin America 819 98 256 130 1,303 Asia, Africa, Oceania, and Middle East 435 341 258 56 1,090 Total $ 5,043 $ 2,492 $ 3,274 $ 1,376 $ 12,185 Major product lines: Production agriculture $ 4,791 $ 4,791 Small agriculture $ 1,718 1,718 Turf 649 649 Construction $ 1,483 1,483 Compact construction 626 626 Roadbuilding 763 763 Forestry 292 292 Financial products 60 26 18 $ 1,376 1,480 Other 192 99 92 383 Total $ 5,043 $ 2,492 $ 3,274 $ 1,376 $ 12,185 Revenue recognized: At a point in time $ 4,955 $ 2,456 $ 3,243 $ 28 $ 10,682 Over time 88 36 31 1,348 1,503 Total $ 5,043 $ 2,492 $ 3,274 $ 1,376 $ 12,185 Three Months Ended January 29, 2023 Production & Precision Ag Small Ag & Turf Construction & Forestry Financial Services Total Primary geographic markets: United States $ 2,628 $ 1,665 $ 1,901 $ 713 $ 6,907 Canada 360 146 275 150 931 Western Europe 501 564 365 29 1,459 Central Europe and CIS 202 123 75 12 412 Latin America 1,237 156 339 95 1,827 Asia, Africa, Oceania, and Middle East 375 400 300 41 1,116 Total $ 5,303 $ 3,054 $ 3,255 $ 1,040 $ 12,652 Major product lines: Production agriculture $ 5,112 $ 5,112 Small agriculture $ 2,194 2,194 Turf 719 719 Construction $ 1,483 1,483 Compact construction 473 473 Roadbuilding 818 818 Forestry 356 356 Financial products 31 18 13 $ 1,040 1,102 Other 160 123 112 395 Total $ 5,303 $ 3,054 $ 3,255 $ 1,040 $ 12,652 Revenue recognized: At a point in time $ 5,248 $ 3,029 $ 3,230 $ 23 $ 11,530 Over time 55 25 25 1,017 1,122 Total $ 5,303 $ 3,054 $ 3,255 $ 1,040 $ 12,652 |
OTHER COMPREHENSIVE INCOME IT_2
OTHER COMPREHENSIVE INCOME ITEMS (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
OTHER COMPREHENSIVE INCOME ITEMS | |
Schedule of After-Tax Components of Accumulated Other Comprehensive Income (Loss) | The after-tax components of accumulated other comprehensive income (loss) follow: January 28 October 29 January 29 2024 2023 2023 Retirement benefits adjustment $ (866) $ (845) $ (400) Cumulative translation adjustment (1,877) (2,151) (1,913) Unrealized gain (loss) on derivatives (23) (8) 8 Unrealized loss on debt securities (97) (110) (67) Total accumulated other comprehensive income (loss) $ (2,863) $ (3,114) $ (2,372) |
Schedule of Amounts Recorded in and Reclassifications out of Other Comprehensive Income (Loss) and the Income Tax Effects | The following tables reflect amounts recorded in other comprehensive income (loss), as well as reclassifications out of other comprehensive income (loss). Before Tax After Tax (Expense) Tax Three Months Ended January 28, 2024 Amount Credit Amount Cumulative translation adjustment $ 273 $ 1 $ 274 Unrealized gain (loss) on derivatives: Unrealized hedging gain (loss) (8) 2 (6) Reclassification of realized (gain) loss to: Interest rate contracts – Interest expense (11) 2 (9) Net unrealized gain (loss) on derivatives (19) 4 (15) Unrealized gain (loss) on debt securities: Unrealized holding gain (loss) 1 6 7 Reclassification of realized (gain) loss – Other income 8 (2) 6 Net unrealized gain (loss) on debt securities 9 4 13 Retirement benefits adjustment: Net actuarial gain (loss) (17) 4 (13) Reclassification to Other operating expenses through amortization of: Actuarial (gain) loss (20) 5 (15) Prior service (credit) cost 9 (2) 7 Net unrealized gain (loss) on retirement benefits adjustment (28) 7 (21) Total other comprehensive income (loss) $ 235 $ 16 $ 251 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 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
EARNINGS PER SHARE | |
Reconciliation of Basic and Diluted Net Income Per Share | A reconciliation of basic and diluted net income per share attributable to Deere & Company follows in millions, except per share amounts: Three Months Ended January 28 January 29 2024 2023 Net income attributable to Deere & Company $ 1,751 $ 1,959 Average shares outstanding 279.9 297.6 Basic per share $ 6.25 $ 6.58 Average shares outstanding 279.9 297.6 Effect of dilutive stock options and restricted stock awards 1.2 1.5 Total potential shares outstanding 281.1 299.1 Diluted per share $ 6.23 $ 6.55 Shares excluded from EPS calculation, as antidilutive .2 .1 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | |
Schedule of Components of Net Periodic Pension and OPEB (Benefit) Cost | The components of net periodic pension and OPEB (benefit) cost consisted of the following: Three Months Ended January 28 January 29 2024 2023 Pensions Service cost $ 58 $ 60 Interest cost 136 133 Expected return on plan assets (241) (212) Amortization of actuarial gain (4) (5) Amortization of prior service cost 10 10 Net benefit $ (41) $ (14) OPEB Service cost $ 5 $ 7 Interest cost 43 43 Expected return on plan assets (27) (29) Amortization of actuarial gain (16) (16) Amortization of prior service credit (1) (1) Net cost $ 4 $ 4 |
Schedule of Pension and OPEB Contributions and Expected Contributions | During the 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 |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
SEGMENT DATA | |
Schedule of Segment Reporting Information | Information relating to operations by operating segment follows. 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 PPA, SAT, and CF is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit 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 operating assets were as follows: January 28 October 29 January 29 2024 2023 2023 Production & precision ag $ 9,059 $ 8,734 $ 9,393 Small ag & turf 4,426 4,348 4,893 Construction & forestry 7,371 7,139 7,232 Financial services 69,900 70,732 59,721 Corporate 10,615 13,134 10,381 Total assets $ 101,371 $ 104,087 $ 91,620 |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
Financing Receivables | |
Analysis of the Allowance for Credit Losses and Investment in Financing Receivables | An analysis of the allowance for credit losses and investment in financing receivables follows: Three Months Ended January 28, 2024 Retail Notes Revolving & Financing Charge Wholesale Leases Accounts Receivables Total Allowance: Beginning of period balance $ 172 $ 21 $ 4 $ 197 Provision (credit) 35 (2) 33 Write-offs (31) (11) (42) Recoveries 1 8 9 Translation adjustments (2) (2) End of period balance $ 177 $ 16 $ 2 $ 195 Financing receivables: End of period balance $ 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, 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.” The associated allowance for credit losses was reversed and a valuation allowance for the 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 | 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 |
Retail Customer Receivables | |
Financing Receivables | |
Credit Quality Analysis | The credit quality analysis of retail notes, financing leases, and revolving charge accounts (collectively, retail customer receivables) by year of origination was as follows: January 28, 2024 2024 2023 2022 2021 2020 Prior Years Revolving Charge Accounts Total Retail customer receivables: Agriculture and turf Current $ 3,248 $ 13,626 $ 7,731 $ 4,577 $ 2,032 $ 931 $ 2,798 $ 34,943 30-59 days past due 5 122 66 47 22 11 71 344 60-89 days past due 1 50 26 15 7 5 16 120 90+ days past due 1 1 3 4 9 Non-performing 49 95 66 34 42 11 297 Construction and forestry Current 803 2,698 1,743 911 276 109 101 6,641 30-59 days past due 8 73 46 26 8 3 5 169 60-89 days past due 26 20 13 6 3 2 70 90+ days past due 2 1 1 4 Non-performing 1 67 86 48 20 9 2 233 Total retail customer receivables $ 4,066 $ 16,712 $ 9,816 $ 5,707 $ 2,409 $ 1,114 $ 3,006 $ 42,830 October 29, 2023 2023 2022 2021 2020 2019 Prior Years Revolving Charge Accounts Total Retail customer receivables: Agriculture and turf Current $ 15,191 $ 8,430 $ 5,120 $ 2,334 $ 853 $ 280 $ 4,526 $ 36,734 30-59 days past due 62 75 39 21 9 3 29 238 60-89 days past due 18 26 18 10 4 2 9 87 90+ days past due 2 1 3 3 9 Non-performing 30 78 62 33 22 22 8 255 Construction and forestry Current 2,927 1,961 1,084 353 84 29 119 6,557 30-59 days past due 49 34 27 9 4 4 127 60-89 days past due 19 14 12 5 2 2 54 90+ days past due 6 1 1 8 Non-performing 42 80 55 23 9 4 1 214 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 |
Wholesale Receivables | |
Financing Receivables | |
Credit Quality Analysis | The credit quality analysis of wholesale receivables by year of origination was as follows: January 28, 2024 2024 2023 2022 2021 2020 Prior Years Revolving Total Wholesale receivables: Agriculture and turf Current $ 266 $ 463 $ 68 $ 6 $ 3 $ 1 $ 5,757 $ 6,564 30+ days past due 1 1 Non-performing 1 1 Construction and forestry Current 6 14 4 19 1 863 907 30+ days past due Non-performing Total wholesale receivables $ 272 $ 478 $ 72 $ 25 $ 3 $ 3 $ 6,620 $ 7,473 October 29, 2023 2023 2022 2021 2020 2019 Prior Years Revolving Total Wholesale receivables: Agriculture and turf Current $ 631 $ 93 $ 21 $ 4 $ 1 $ 160 $ 5,175 $ 6,085 30+ days past due Non-performing 1 1 Construction and forestry Current 23 5 20 76 712 836 30+ days past due Non-performing 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 |
SECURITIZATION OF FINANCING R_2
SECURITIZATION OF FINANCING RECEIVABLES (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
SECURITIZATION OF FINANCING RECEIVABLES | |
Components of Consolidated Restricted Assets, Secured Borrowings and Other Liabilities Related to Securitization Transactions | The components of securitization programs were as follows: January 28 October 29 January 29 2024 2023 2023 Financing receivables securitized (retail notes) $ 6,418 $ 7,357 $ 5,102 Allowance for credit losses (18) (22) (13) Other assets (primarily restricted cash) 140 152 97 Total restricted securitized assets $ 6,540 $ 7,487 $ 5,186 Short-term securitization borrowings $ 6,116 $ 6,995 $ 4,864 Accrued interest on borrowings 10 13 6 Total liabilities related to restricted securitized assets $ 6,126 $ 7,008 $ 4,870 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
INVENTORIES | |
Major Classification of Inventories | If all inventories had been valued on a “first-in, first-out” (FIFO) basis, the estimated inventories by major classification would have been as follows: 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 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS - NET (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
GOODWILL AND OTHER INTANGIBLE ASSETS - NET | |
Changes in Goodwill by Operating Segments | The changes in amounts of goodwill by operating segments were as follows. There were no accumulated goodwill impairment 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 |
Components of Other Intangible Assets | The components of other intangible assets were as follows: January 28 October 29 January 29 2024 2023 2023 Customer lists and relationships $ 509 $ 501 $ 522 Technology, patents, trademarks, and other 1,412 1,387 1,387 Total at cost 1,921 1,888 1,909 Less accumulated amortization: Customer lists and relationships 207 195 184 Technology, patents, trademarks, and other 602 560 470 Total accumulated amortization 809 755 654 Other intangible assets – net $ 1,112 $ 1,133 $ 1,255 |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
SHORT-TERM BORROWINGS | |
Short-Term Borrowings | Short-term borrowings were as follows: January 28 October 29 January 29 2024 2023 2023 Commercial paper $ 8,378 $ 9,100 $ 6,425 Notes payable to banks 310 483 303 Finance lease obligations due within one year 27 25 23 Long-term borrowings due within one year 8,402 8,331 7,378 Short-term borrowings $ 17,117 $ 17,939 $ 14,129 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following: January 28 October 29 January 29 2024 2023 2023 Accounts payable: Trade payables $ 3,184 $ 3,467 $ 3,616 Dividends payable 413 388 358 Operating lease liabilities 293 281 305 Deposits withheld from dealers and merchants 153 163 153 Payables to unconsolidated affiliates 6 6 10 Other 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 243 1,243 256 Extended warranty premium 1,047 1,021 901 Unearned revenue (contractual liability) 700 676 601 Unearned operating lease revenue 456 451 406 Accrued interest 502 434 371 Other 1,377 1,397 1,289 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 $2,410 at January 28, 2024, $2,228 at October 29, 2023, and $1,540 at January 29, 2023. Other eliminations were made for accrued taxes and other accrued expenses. |
LONG-TERM BORROWINGS (Tables)
LONG-TERM BORROWINGS (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
LONG-TERM BORROWINGS | |
Long-Term Borrowings | Long-term borrowings consisted of: January 28 October 29 January 29 2024 2023 2023 Underwritten term debt U.S. dollar notes and debentures: 2.75% notes due 2025 $ 700 $ 700 $ 700 6.55% debentures due 2028 200 200 200 5.375% notes due 2029 500 500 500 3.10% notes due 2030 700 700 700 8.10% debentures due 2030 250 250 250 7.125% notes due 2031 300 300 300 3.90% notes due 2042 1,250 1,250 1,250 2.875% notes due 2049 500 500 500 3.75% notes due 2050 850 850 850 Euro notes: 1.375% notes due 2024 (€800 principal) 871 1.85% notes due 2028 (€600 principal) 651 634 653 2.20% notes due 2032 (€600 principal) 651 634 653 1.65% notes due 2039 (€650 principal) 705 687 708 Serial issuances: Medium-term notes 31,001 29,638 25,618 Other notes and finance lease obligations 1,810 1,769 1,440 Less debt issuance costs and debt discounts (135) (135) (122) Long-term borrowings $ 39,933 $ 38,477 $ 35,071 Medium-term notes due through 2033 are primarily offered by prospectus and issued at fixed and variable rates. The principal balances of the medium-term notes 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. |
LEASES - LESSOR (Tables)
LEASES - LESSOR (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
LEASES - LESSOR | |
Schedule of Lease Revenues Earned | Lease revenues earned by us follow: Three Months Ended January 28 January 29 2024 2023 Sales-type and direct finance lease revenues $ 47 $ 41 Operating lease revenues 339 321 Variable lease revenues 4 6 Total lease revenues $ 390 $ 368 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
Warranty Reconciliation | The reconciliation of the changes in the warranty liability follows: Three Months Ended January 28 January 29 2024 2023 Beginning of period balance $ 1,610 $ 1,427 Warranty claims paid (309) (262) New product warranty accruals 281 256 Foreign exchange 7 23 End of period balance $ 1,589 $ 1,444 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
FAIR VALUE MEASUREMENTS | |
Fair Values of Financial Instruments | The fair values of financial instruments that do not approximate the carrying values were as follows. Long-term borrowings exclude finance lease liabilities. January 28, 2024 October 29, 2023 January 29, 2023 Carrying Fair Carrying Fair Carrying Fair 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. |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis follow, excluding our cash equivalents, which were carried at a cost that approximates fair value and consisted of money market funds and time deposits. 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. |
Contractual Maturities of Debt Securities | The contractual maturities of debt securities at 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 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
DERIVATIVE INSTRUMENTS | |
Fair Values of Derivative Instruments in Consolidated Balance Sheets | Fair values of our derivative instruments and the associated notional amounts were as follows. Assets are recorded in “Other assets,” while liabilities are recorded in “Accounts payable and accrued expenses.” 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 |
Amounts Recorded in the Consolidated Balance Sheets Related to Borrowings Designated in Fair Value Hedging Relationships | The amounts recorded in the consolidated balance sheets related to borrowings designated in fair value hedging relationships were as follows. Fair value hedging adjustments are included in the carrying amount of the hedged item. Active Hedging Relationships Discontinued Hedging Relationships 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) |
Gains (Losses) Related to Derivative Instruments on Statements of Consolidated Income | The classification and gains (losses) including accrued interest expense related to derivative instruments on the statements of consolidated income consisted of the following: Three Months Ended January 28 January 29 2024 2023 Fair Value Hedges Interest rate contracts - Interest expense $ 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) |
Impact on Derivative Assets and Liabilities Related to Netting Arrangements and Collateral | Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities related to netting arrangements and any collateral received or paid follows: 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 |
SHARE-BASED AWARDS (Tables)
SHARE-BASED AWARDS (Tables) | 3 Months Ended |
Jan. 28, 2024 | |
SHARE-BASED AWARDS | |
Restricted Stock Units Granted and Weighted-Average Grant Date Fair Values | 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: Grant Date Shares Fair Value Service-based 360 $ 377.04 Performance/service-based 52 360.53 Market/service-based 52 370.87 |
ORGANIZATION AND CONSOLIDATION
ORGANIZATION AND CONSOLIDATION (Details) | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
ORGANIZATION AND CONSOLIDATION | ||
Fiscal period duration | 91 days | 91 days |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING STANDARDS (Details) | Jan. 28, 2024 |
ASU 2022-04 | |
New Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
ASU 2022-02 | |
New Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
ASU 2022-01 | |
New Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
ASU 2021-08 | |
New Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
ASU 2023-09 | |
New Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | false |
ASU 2023-07 | |
New Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | false |
ASU 2023-06 | |
New Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | false |
ASU 2023-05 | |
New Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | false |
ASU 2022-03 | |
New Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | false |
REVENUE RECOGNITION - Primary G
REVENUE RECOGNITION - Primary Geographic Market, Major Product Line, and Timing (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Revenue Recognition | ||
Net sales and revenues | $ 12,185 | $ 12,652 |
Revenue Recognized at a Point in Time | ||
Revenue Recognition | ||
Net sales and revenues | 10,682 | 11,530 |
Revenue Recognized Over Time | ||
Revenue Recognition | ||
Net sales and revenues | 1,503 | 1,122 |
Production Agriculture | ||
Revenue Recognition | ||
Net sales | 4,791 | 5,112 |
Small Agriculture | ||
Revenue Recognition | ||
Net sales | 1,718 | 2,194 |
Turf | ||
Revenue Recognition | ||
Net sales | 649 | 719 |
Construction | ||
Revenue Recognition | ||
Net sales | 1,483 | 1,483 |
Compact Construction | ||
Revenue Recognition | ||
Net sales | 626 | 473 |
Roadbuilding | ||
Revenue Recognition | ||
Net sales | 763 | 818 |
Forestry | ||
Revenue Recognition | ||
Net sales | 292 | 356 |
Financial Products | ||
Revenue Recognition | ||
Financial | 1,480 | 1,102 |
Other | ||
Revenue Recognition | ||
Other net sales and revenues | 383 | 395 |
United States | ||
Revenue Recognition | ||
Net sales and revenues | 7,131 | 6,907 |
Canada | ||
Revenue Recognition | ||
Net sales and revenues | 886 | 931 |
Western Europe | ||
Revenue Recognition | ||
Net sales and revenues | 1,421 | 1,459 |
Central Europe and CIS | ||
Revenue Recognition | ||
Net sales and revenues | 354 | 412 |
Latin America | ||
Revenue Recognition | ||
Net sales and revenues | 1,303 | 1,827 |
Asia, Africa, Oceania, and Middle East | ||
Revenue Recognition | ||
Net sales and revenues | 1,090 | 1,116 |
Production & Precision Ag (PPA) | ||
Revenue Recognition | ||
Net sales and revenues | 5,043 | 5,303 |
Production & Precision Ag (PPA) | Revenue Recognized at a Point in Time | ||
Revenue Recognition | ||
Net sales and revenues | 4,955 | 5,248 |
Production & Precision Ag (PPA) | Revenue Recognized Over Time | ||
Revenue Recognition | ||
Net sales and revenues | 88 | 55 |
Production & Precision Ag (PPA) | Production Agriculture | ||
Revenue Recognition | ||
Net sales | 4,791 | 5,112 |
Production & Precision Ag (PPA) | Financial Products | ||
Revenue Recognition | ||
Financial | 60 | 31 |
Production & Precision Ag (PPA) | Other | ||
Revenue Recognition | ||
Other net sales and revenues | 192 | 160 |
Production & Precision Ag (PPA) | United States | ||
Revenue Recognition | ||
Net sales and revenues | 2,721 | 2,628 |
Production & Precision Ag (PPA) | Canada | ||
Revenue Recognition | ||
Net sales and revenues | 386 | 360 |
Production & Precision Ag (PPA) | Western Europe | ||
Revenue Recognition | ||
Net sales and revenues | 503 | 501 |
Production & Precision Ag (PPA) | Central Europe and CIS | ||
Revenue Recognition | ||
Net sales and revenues | 179 | 202 |
Production & Precision Ag (PPA) | Latin America | ||
Revenue Recognition | ||
Net sales and revenues | 819 | 1,237 |
Production & Precision Ag (PPA) | Asia, Africa, Oceania, and Middle East | ||
Revenue Recognition | ||
Net sales and revenues | 435 | 375 |
Small Ag & Turf (SAT) | ||
Revenue Recognition | ||
Net sales and revenues | 2,492 | 3,054 |
Small Ag & Turf (SAT) | Revenue Recognized at a Point in Time | ||
Revenue Recognition | ||
Net sales and revenues | 2,456 | 3,029 |
Small Ag & Turf (SAT) | Revenue Recognized Over Time | ||
Revenue Recognition | ||
Net sales and revenues | 36 | 25 |
Small Ag & Turf (SAT) | Small Agriculture | ||
Revenue Recognition | ||
Net sales | 1,718 | 2,194 |
Small Ag & Turf (SAT) | Turf | ||
Revenue Recognition | ||
Net sales | 649 | 719 |
Small Ag & Turf (SAT) | Financial Products | ||
Revenue Recognition | ||
Financial | 26 | 18 |
Small Ag & Turf (SAT) | Other | ||
Revenue Recognition | ||
Other net sales and revenues | 99 | 123 |
Small Ag & Turf (SAT) | United States | ||
Revenue Recognition | ||
Net sales and revenues | 1,345 | 1,665 |
Small Ag & Turf (SAT) | Canada | ||
Revenue Recognition | ||
Net sales and revenues | 118 | 146 |
Small Ag & Turf (SAT) | Western Europe | ||
Revenue Recognition | ||
Net sales and revenues | 517 | 564 |
Small Ag & Turf (SAT) | Central Europe and CIS | ||
Revenue Recognition | ||
Net sales and revenues | 73 | 123 |
Small Ag & Turf (SAT) | Latin America | ||
Revenue Recognition | ||
Net sales and revenues | 98 | 156 |
Small Ag & Turf (SAT) | Asia, Africa, Oceania, and Middle East | ||
Revenue Recognition | ||
Net sales and revenues | 341 | 400 |
Construction & Forestry (CF) | ||
Revenue Recognition | ||
Net sales and revenues | 3,274 | 3,255 |
Construction & Forestry (CF) | Revenue Recognized at a Point in Time | ||
Revenue Recognition | ||
Net sales and revenues | 3,243 | 3,230 |
Construction & Forestry (CF) | Revenue Recognized Over Time | ||
Revenue Recognition | ||
Net sales and revenues | 31 | 25 |
Construction & Forestry (CF) | Construction | ||
Revenue Recognition | ||
Net sales | 1,483 | 1,483 |
Construction & Forestry (CF) | Compact Construction | ||
Revenue Recognition | ||
Net sales | 626 | 473 |
Construction & Forestry (CF) | Roadbuilding | ||
Revenue Recognition | ||
Net sales | 763 | 818 |
Construction & Forestry (CF) | Forestry | ||
Revenue Recognition | ||
Net sales | 292 | 356 |
Construction & Forestry (CF) | Financial Products | ||
Revenue Recognition | ||
Financial | 18 | 13 |
Construction & Forestry (CF) | Other | ||
Revenue Recognition | ||
Other net sales and revenues | 92 | 112 |
Construction & Forestry (CF) | United States | ||
Revenue Recognition | ||
Net sales and revenues | 2,095 | 1,901 |
Construction & Forestry (CF) | Canada | ||
Revenue Recognition | ||
Net sales and revenues | 210 | 275 |
Construction & Forestry (CF) | Western Europe | ||
Revenue Recognition | ||
Net sales and revenues | 361 | 365 |
Construction & Forestry (CF) | Central Europe and CIS | ||
Revenue Recognition | ||
Net sales and revenues | 94 | 75 |
Construction & Forestry (CF) | Latin America | ||
Revenue Recognition | ||
Net sales and revenues | 256 | 339 |
Construction & Forestry (CF) | Asia, Africa, Oceania, and Middle East | ||
Revenue Recognition | ||
Net sales and revenues | 258 | 300 |
Financial Services (FS) | ||
Revenue Recognition | ||
Financial | 1,376 | 1,040 |
Financial Services (FS) | Revenue Recognized at a Point in Time | ||
Revenue Recognition | ||
Financial | 28 | 23 |
Financial Services (FS) | Revenue Recognized Over Time | ||
Revenue Recognition | ||
Financial | 1,348 | 1,017 |
Financial Services (FS) | Financial Products | ||
Revenue Recognition | ||
Financial | 1,376 | 1,040 |
Financial Services (FS) | United States | ||
Revenue Recognition | ||
Financial | 970 | 713 |
Financial Services (FS) | Canada | ||
Revenue Recognition | ||
Financial | 172 | 150 |
Financial Services (FS) | Western Europe | ||
Revenue Recognition | ||
Financial | 40 | 29 |
Financial Services (FS) | Central Europe and CIS | ||
Revenue Recognition | ||
Financial | 8 | 12 |
Financial Services (FS) | Latin America | ||
Revenue Recognition | ||
Financial | 130 | 95 |
Financial Services (FS) | Asia, Africa, Oceania, and Middle East | ||
Revenue Recognition | ||
Financial | $ 56 | $ 41 |
REVENUE RECOGNITION - Deferred
REVENUE RECOGNITION - Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 28, 2024 | Jan. 29, 2023 | Oct. 29, 2023 | |
Deferred Revenue | |||
Deferred revenue received | $ 1,747 | $ 1,502 | $ 1,697 |
Revenue recognized from deferred revenue | $ 230 | $ 215 |
REVENUE RECOGNITION - Unsatisfi
REVENUE RECOGNITION - Unsatisfied Performance Obligations (Details) $ in Millions | Jan. 28, 2024 USD ($) |
Unsatisfied performance obligations | |
Unsatisfied performance obligations for contracts with an original duration greater than one year | $ 1,531 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-29 | |
Unsatisfied performance obligations | |
Unsatisfied performance obligations for contracts with an original duration greater than one year | $ 373 |
Period estimated revenue to be recognized | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-28 | |
Unsatisfied performance obligations | |
Unsatisfied performance obligations for contracts with an original duration greater than one year | $ 409 |
Period estimated revenue to be recognized | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-11-03 | |
Unsatisfied performance obligations | |
Unsatisfied performance obligations for contracts with an original duration greater than one year | $ 304 |
Period estimated revenue to be recognized | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-11-02 | |
Unsatisfied performance obligations | |
Unsatisfied performance obligations for contracts with an original duration greater than one year | $ 179 |
Period estimated revenue to be recognized | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-11-01 | |
Unsatisfied performance obligations | |
Unsatisfied performance obligations for contracts with an original duration greater than one year | $ 108 |
Period estimated revenue to be recognized | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-10-30 | |
Unsatisfied performance obligations | |
Unsatisfied performance obligations for contracts with an original duration greater than one year | $ 74 |
Period estimated revenue to be recognized | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-10-29 | |
Unsatisfied performance obligations | |
Unsatisfied performance obligations for contracts with an original duration greater than one year | $ 84 |
Period estimated revenue to be recognized | 24 months |
OTHER COMPREHENSIVE INCOME IT_3
OTHER COMPREHENSIVE INCOME ITEMS - After-Tax Components (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | $ 22,075 | $ 21,785 | $ 21,332 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | (2,863) | (3,114) | (2,372) |
Retirement Benefits Adjustment | |||
Accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | (866) | (845) | (400) |
Cumulative Translation Adjustment | |||
Accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | (1,877) | (2,151) | (1,913) |
Unrealized Gain (Loss) on Derivatives | |||
Accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | (23) | (8) | 8 |
Unrealized Gain (Loss) on Debt Securities | |||
Accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | $ (97) | $ (110) | $ (67) |
OTHER COMPREHENSIVE INCOME IT_4
OTHER COMPREHENSIVE INCOME ITEMS - Amounts Recorded in and Reclassifications out of (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Other Comprehensive Income (Loss), Before Tax | ||
Interest expense | $ (802) | $ (479) |
Other operating expenses | (369) | (299) |
Total other comprehensive income (loss), before tax | 235 | 674 |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||
Total other comprehensive income (loss), tax (expense) credit | 16 | 10 |
Other Comprehensive Income (Loss), After Tax | ||
Other comprehensive income (loss), net of income taxes | 251 | 684 |
Cumulative Translation Adjustment | ||
Other Comprehensive Income (Loss), Before Tax | ||
Total other comprehensive income (loss), before tax | 273 | 669 |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||
Total other comprehensive income (loss), tax (expense) credit | 1 | 12 |
Other Comprehensive Income (Loss), After Tax | ||
Other comprehensive income (loss), net of income taxes | 274 | 681 |
Unrealized Gain (Loss) on Derivatives | ||
Other Comprehensive Income (Loss), Before Tax | ||
Other comprehensive income (loss) before reclassification, before tax | (8) | (1) |
Total other comprehensive income (loss), before tax | (19) | (16) |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||
Other comprehensive income (loss) before reclassification, tax (expense) credit | 2 | |
Total other comprehensive income (loss), tax (expense) credit | 4 | 3 |
Other Comprehensive Income (Loss), After Tax | ||
Other comprehensive income (loss) before reclassification, after tax | (6) | (1) |
Other comprehensive income (loss), net of income taxes | (15) | (13) |
Unrealized Gain (Loss) on Derivatives | Interest Rate Contracts (Swaps) | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||
Other Comprehensive Income (Loss), Before Tax | ||
Interest expense | (11) | (15) |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||
Reclassification from accumulated other comprehensive income, tax (expense) credit | 2 | 3 |
Other Comprehensive Income (Loss), After Tax | ||
Reclassification from accumulated other comprehensive income, after tax | (9) | (12) |
Unrealized Gain (Loss) on Debt Securities | ||
Other Comprehensive Income (Loss), Before Tax | ||
Other comprehensive income (loss) before reclassification, before tax | 1 | 34 |
Total other comprehensive income (loss), before tax | 9 | 34 |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||
Other comprehensive income (loss) before reclassification, tax (expense) credit | 6 | (7) |
Total other comprehensive income (loss), tax (expense) credit | 4 | (7) |
Other Comprehensive Income (Loss), After Tax | ||
Other comprehensive income (loss) before reclassification, after tax | 7 | 27 |
Other comprehensive income (loss), net of income taxes | 13 | 27 |
Unrealized Gain (Loss) on Debt Securities | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||
Other Comprehensive Income (Loss), Before Tax | ||
Other income | 8 | |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||
Reclassification from accumulated other comprehensive income, tax (expense) credit | (2) | |
Other Comprehensive Income (Loss), After Tax | ||
Reclassification from accumulated other comprehensive income, after tax | 6 | |
Retirement Benefits Adjustment | ||
Other Comprehensive Income (Loss), Before Tax | ||
Other comprehensive income (loss) before reclassification, before tax | (17) | (1) |
Total other comprehensive income (loss), before tax | (28) | (13) |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||
Other comprehensive income (loss) before reclassification, tax (expense) credit | 4 | |
Total other comprehensive income (loss), tax (expense) credit | 7 | 2 |
Other Comprehensive Income (Loss), After Tax | ||
Other comprehensive income (loss) before reclassification, after tax | (13) | (1) |
Other comprehensive income (loss), net of income taxes | (21) | (11) |
Actuarial (Gain) Loss | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||
Other Comprehensive Income (Loss), Before Tax | ||
Other operating expenses | (20) | (21) |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||
Reclassification from accumulated other comprehensive income, tax (expense) credit | 5 | 5 |
Other Comprehensive Income (Loss), After Tax | ||
Reclassification from accumulated other comprehensive income, after tax | (15) | (16) |
Prior Service (Credit) Cost | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||
Other Comprehensive Income (Loss), Before Tax | ||
Other operating expenses | 9 | 9 |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||
Reclassification from accumulated other comprehensive income, tax (expense) credit | (2) | (3) |
Other Comprehensive Income (Loss), After Tax | ||
Reclassification from accumulated other comprehensive income, after tax | $ 7 | $ 6 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
EARNINGS PER SHARE | ||
Net income attributable to Deere & Company | $ 1,751 | $ 1,959 |
Average shares outstanding | 279.9 | 297.6 |
Basic (in dollars per share) | $ 6.25 | $ 6.58 |
Diluted Earnings Per Share | ||
Average shares outstanding | 279.9 | 297.6 |
Effect of dilutive stock options and restricted stock awards (in shares) | 1.2 | 1.5 |
Total potential shares outstanding | 281.1 | 299.1 |
Diluted (in dollars per share) | $ 6.23 | $ 6.55 |
Shares excluded from EPS calculation, as antidilutive | 0.2 | 0.1 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Components of Net Periodic (Benefit) Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Pensions | ||
Net Periodic (Benefit) Cost | ||
Service cost | $ 58 | $ 60 |
Interest cost | $ 136 | $ 133 |
Location of interest cost | Other operating expenses | Other operating expenses |
Expected return on plan assets | $ (241) | $ (212) |
Location of expected return on plan assets | Other operating expenses | Other operating expenses |
Amortization of actuarial gain | $ (4) | $ (5) |
Location of amortization of actuarial gain | Other operating expenses | Other operating expenses |
Amortization of prior service (credit) cost | $ 10 | $ 10 |
Location of amortization of prior service (credit) cost | Other operating expenses | Other operating expenses |
Net (benefit) cost | $ (41) | $ (14) |
OPEB | ||
Net Periodic (Benefit) Cost | ||
Service cost | 5 | 7 |
Interest cost | $ 43 | $ 43 |
Location of interest cost | Other operating expenses | Other operating expenses |
Expected return on plan assets | $ (27) | $ (29) |
Location of expected return on plan assets | Other operating expenses | Other operating expenses |
Amortization of actuarial gain | $ (16) | $ (16) |
Location of amortization of actuarial gain | Other operating expenses | Other operating expenses |
Amortization of prior service (credit) cost | $ (1) | $ (1) |
Location of amortization of prior service (credit) cost | Other operating expenses | Other operating expenses |
Net (benefit) cost | $ 4 | $ 4 |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT BENEFITS - Employer Contributions (Details) $ in Millions | 3 Months Ended |
Jan. 28, 2024 USD ($) | |
Pensions | |
Employer Contributions | |
Contributed | $ 24 |
Expected contributions remainder of the year | 61 |
OPEB | |
Employer Contributions | |
Contributed | 106 |
Expected contributions remainder of the year | 34 |
OPEB | United States | |
Employer Contributions | |
Employer voluntary contribution | $ 60 |
SEGMENT DATA (Details)
SEGMENT DATA (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 28, 2024 | Jan. 29, 2023 | Oct. 29, 2023 | |
Net Sales and Revenues | |||
Net sales and revenues | $ 12,185 | $ 12,652 | |
% Change - Net sales and revenues | (4.00%) | ||
Operating Profit | |||
Net income attributable to Deere & Company | $ 1,751 | 1,959 | |
% Change - Net income attributable to Deere & Company | (11.00%) | ||
Identifiable Assets | |||
Total Assets | $ 101,371 | 91,620 | $ 104,087 |
Operating Segments (Other) | |||
Reconciling items | 26 | (22) | |
Income taxes | $ (469) | (537) | |
% Change - Income taxes | (13.00%) | ||
Operating Segment | |||
Operating Profit | |||
Total operating profit | $ 2,194 | 2,518 | |
% Change - Operating profit | (13.00%) | ||
Corporate | |||
Identifiable Assets | |||
Total Assets | $ 10,615 | 10,381 | 13,134 |
Other Revenues | |||
Net Sales and Revenues | |||
Other revenues | $ 323 | 210 | |
% Change - Other revenues | 54% | ||
Production & Precision Ag (PPA) | |||
Net Sales and Revenues | |||
Net sales and revenues | $ 5,043 | 5,303 | |
Production & Precision Ag (PPA) | Operating Segment | |||
Net Sales and Revenues | |||
Intersegment sales and revenues | $ 8 | 5 | |
% Change - Intersegment sales and revenues | 60% | ||
Operating Profit | |||
Total operating profit | $ 1,045 | 1,208 | |
% Change - Operating profit | (13.00%) | ||
Identifiable Assets | |||
Total Assets | $ 9,059 | 9,393 | 8,734 |
Small Ag & Turf (SAT) | |||
Net Sales and Revenues | |||
Net sales and revenues | 2,492 | 3,054 | |
Small Ag & Turf (SAT) | Operating Segment | |||
Net Sales and Revenues | |||
Intersegment sales and revenues | $ 1 | 3 | |
% Change - Intersegment sales and revenues | (67.00%) | ||
Operating Profit | |||
Total operating profit | $ 326 | 447 | |
% Change - Operating profit | (27.00%) | ||
Identifiable Assets | |||
Total Assets | $ 4,426 | 4,893 | 4,348 |
Construction & Forestry (CF) | |||
Net Sales and Revenues | |||
Net sales and revenues | 3,274 | 3,255 | |
Construction & Forestry (CF) | Operating Segment | |||
Operating Profit | |||
Total operating profit | $ 566 | 625 | |
% Change - Operating profit | (9.00%) | ||
Identifiable Assets | |||
Total Assets | $ 7,371 | 7,232 | 7,139 |
Financial Services (FS) | |||
Net Sales and Revenues | |||
Financial revenues | 1,376 | 1,040 | |
Financial Services (FS) | Operating Segment | |||
Net Sales and Revenues | |||
Financial revenues | $ 1,376 | 1,040 | |
% Change - Financial revenues | 32% | ||
Intersegment sales and revenues | $ 176 | 204 | |
% Change - Intersegment sales and revenues | (14.00%) | ||
Operating Profit | |||
Total operating profit | $ 257 | 238 | |
% Change - Operating profit | 8% | ||
Identifiable Assets | |||
Total Assets | $ 69,900 | 59,721 | $ 70,732 |
Net Sales | |||
Net Sales and Revenues | |||
Net sales and revenues | 10,486 | 11,402 | |
Net Sales | Production & Precision Ag (PPA) | Operating Segment | |||
Net Sales and Revenues | |||
Net sales | $ 4,849 | 5,198 | |
% Change - Net sales | (7.00%) | ||
Net Sales | Small Ag & Turf (SAT) | Operating Segment | |||
Net Sales and Revenues | |||
Net sales | $ 2,425 | 3,001 | |
% Change - Net sales | (19.00%) | ||
Net Sales | Construction & Forestry (CF) | Operating Segment | |||
Net Sales and Revenues | |||
Net sales | $ 3,212 | $ 3,203 |
FINANCING RECEIVABLES - Delinqu
FINANCING RECEIVABLES - Delinquency Status (Details) | 3 Months Ended |
Jan. 28, 2024 | |
FINANCING RECEIVABLES | |
Financing Receivable, Practical Expedient, Accrued Interest Exclusion [true false] | false |
Threshold for past due balances | 30 days |
Generally the threshold for a financing receivable to be considered non-performing | 90 days |
Generally the threshold when a receivable is delinquent and the estimated uncollectible amount is written off | 120 days |
FINANCING RECEIVABLES - Retail
FINANCING RECEIVABLES - Retail Notes, Financing Leases, and Revolving Charge Accounts Credit Quality Analysis (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Credit Quality Analysis | |||
Total retail customer receivables | $ 50,303 | $ 42,131 | |
Retail Customer Receivables | |||
Credit Quality Analysis | |||
2024 and 2023, respectively | 4,066 | $ 18,340 | 3,618 |
2023 and 2022, respectively | 16,712 | 10,705 | 15,296 |
2022 and 2021, respectively | 9,816 | 6,421 | 9,147 |
2021 and 2020, respectively | 5,707 | 2,791 | 4,547 |
2020 and 2019, respectively | 2,409 | 987 | 1,912 |
Prior years | 1,114 | 341 | 1,080 |
Revolving charge accounts | 3,006 | 4,698 | 2,902 |
Total retail customer receivables | 42,830 | 44,283 | 38,502 |
Retail Customer Receivables | Agriculture and Turf | 30-59 Days Past Due | |||
Credit Quality Analysis | |||
2024 and 2023, respectively | 5 | 62 | 2 |
2023 and 2022, respectively | 122 | 75 | 39 |
2022 and 2021, respectively | 66 | 39 | 39 |
2021 and 2020, respectively | 47 | 21 | 54 |
2020 and 2019, respectively | 22 | 9 | 13 |
Prior years | 11 | 3 | 44 |
Revolving charge accounts | 71 | 29 | 28 |
Total retail customer receivables | 344 | 238 | 219 |
Retail Customer Receivables | Agriculture and Turf | 60-89 Days Past Due | |||
Credit Quality Analysis | |||
2024 and 2023, respectively | 1 | 18 | 1 |
2023 and 2022, respectively | 50 | 26 | 15 |
2022 and 2021, respectively | 26 | 18 | 14 |
2021 and 2020, respectively | 15 | 10 | 20 |
2020 and 2019, respectively | 7 | 4 | 5 |
Prior years | 5 | 2 | 15 |
Revolving charge accounts | 16 | 9 | 6 |
Total retail customer receivables | 120 | 87 | 76 |
Retail Customer Receivables | Agriculture and Turf | 90 Days or Greater Past Due | |||
Credit Quality Analysis | |||
2024 and 2023, respectively | 2 | ||
2023 and 2022, respectively | 1 | 1 | 1 |
2022 and 2021, respectively | 1 | 3 | |
2021 and 2020, respectively | 3 | 3 | 3 |
2020 and 2019, respectively | 4 | 1 | |
Total retail customer receivables | 9 | 9 | 5 |
Retail Customer Receivables | Agriculture and Turf | Current | |||
Credit Quality Analysis | |||
2024 and 2023, respectively | 3,248 | 15,191 | 2,939 |
2023 and 2022, respectively | 13,626 | 8,430 | 12,435 |
2022 and 2021, respectively | 7,731 | 5,120 | 7,228 |
2021 and 2020, respectively | 4,577 | 2,334 | 3,660 |
2020 and 2019, respectively | 2,032 | 853 | 1,600 |
Prior years | 931 | 280 | 823 |
Revolving charge accounts | 2,798 | 4,526 | 2,753 |
Total retail customer receivables | 34,943 | 36,734 | 31,438 |
Retail Customer Receivables | Agriculture and Turf | Non-performing | |||
Credit Quality Analysis | |||
2024 and 2023, respectively | 30 | ||
2023 and 2022, respectively | 49 | 78 | 40 |
2022 and 2021, respectively | 95 | 62 | 58 |
2021 and 2020, respectively | 66 | 33 | 41 |
2020 and 2019, respectively | 34 | 22 | 27 |
Prior years | 42 | 22 | 34 |
Revolving charge accounts | 11 | 8 | 8 |
Total retail customer receivables | 297 | 255 | 208 |
Retail Customer Receivables | Construction and Forestry | 30-59 Days Past Due | |||
Credit Quality Analysis | |||
2024 and 2023, respectively | 8 | 49 | 2 |
2023 and 2022, respectively | 73 | 34 | 18 |
2022 and 2021, respectively | 46 | 27 | 29 |
2021 and 2020, respectively | 26 | 9 | 36 |
2020 and 2019, respectively | 8 | 4 | 16 |
Prior years | 3 | 52 | |
Revolving charge accounts | 5 | 4 | 5 |
Total retail customer receivables | 169 | 127 | 158 |
Retail Customer Receivables | Construction and Forestry | 60-89 Days Past Due | |||
Credit Quality Analysis | |||
2024 and 2023, respectively | 19 | ||
2023 and 2022, respectively | 26 | 14 | 9 |
2022 and 2021, respectively | 20 | 12 | 17 |
2021 and 2020, respectively | 13 | 5 | 18 |
2020 and 2019, respectively | 6 | 2 | 8 |
Prior years | 3 | 24 | |
Revolving charge accounts | 2 | 2 | 2 |
Total retail customer receivables | 70 | 54 | 78 |
Retail Customer Receivables | Construction and Forestry | 90 Days or Greater Past Due | |||
Credit Quality Analysis | |||
2023 and 2022, respectively | 6 | 1 | |
2022 and 2021, respectively | 2 | 1 | 2 |
2021 and 2020, respectively | 1 | 1 | |
2020 and 2019, respectively | 2 | ||
Prior years | 1 | 1 | 1 |
Total retail customer receivables | 4 | 8 | 7 |
Retail Customer Receivables | Construction and Forestry | Current | |||
Credit Quality Analysis | |||
2024 and 2023, respectively | 803 | 2,927 | 674 |
2023 and 2022, respectively | 2,698 | 1,961 | 2,692 |
2022 and 2021, respectively | 1,743 | 1,084 | 1,702 |
2021 and 2020, respectively | 911 | 353 | 684 |
2020 and 2019, respectively | 276 | 84 | 224 |
Prior years | 109 | 29 | 80 |
Revolving charge accounts | 101 | 119 | 99 |
Total retail customer receivables | 6,641 | 6,557 | 6,155 |
Retail Customer Receivables | Construction and Forestry | Non-performing | |||
Credit Quality Analysis | |||
2024 and 2023, respectively | 1 | 42 | |
2023 and 2022, respectively | 67 | 80 | 46 |
2022 and 2021, respectively | 86 | 55 | 58 |
2021 and 2020, respectively | 48 | 23 | 30 |
2020 and 2019, respectively | 20 | 9 | 16 |
Prior years | 9 | 4 | 7 |
Revolving charge accounts | 2 | 1 | 1 |
Total retail customer receivables | $ 233 | $ 214 | $ 158 |
FINANCING RECEIVABLES - Wholesa
FINANCING RECEIVABLES - Wholesale Receivables Credit Quality Analysis (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Credit Quality Analysis | |||
Total wholesale receivables | $ 50,303 | $ 42,131 | |
Wholesale Receivables | |||
Credit Quality Analysis | |||
2024 and 2023, respectively | 272 | $ 654 | 122 |
2023 and 2022, respectively | 478 | 98 | 292 |
2022 and 2021, respectively | 72 | 41 | 72 |
2021 and 2020, respectively | 25 | 4 | 24 |
2020 and 2019, respectively | 3 | 2 | 4 |
Prior years | 3 | 236 | 2 |
Revolving | 6,620 | 5,887 | 3,113 |
Total wholesale receivables | 7,473 | 6,922 | 3,629 |
Wholesale Receivables | Agriculture and Turf | 30+ days past due | |||
Credit Quality Analysis | |||
2023 and 2022, respectively | 1 | ||
Total wholesale receivables | 1 | ||
Wholesale Receivables | Agriculture and Turf | Current | |||
Credit Quality Analysis | |||
2024 and 2023, respectively | 266 | 631 | 115 |
2023 and 2022, respectively | 463 | 93 | 285 |
2022 and 2021, respectively | 68 | 21 | 48 |
2021 and 2020, respectively | 6 | 4 | 21 |
2020 and 2019, respectively | 3 | 1 | 4 |
Prior years | 1 | 160 | 1 |
Revolving | 5,757 | 5,175 | 2,654 |
Total wholesale receivables | 6,564 | 6,085 | 3,128 |
Wholesale Receivables | Agriculture and Turf | Non-performing | |||
Credit Quality Analysis | |||
2021 and 2020, respectively | 1 | ||
2020 and 2019, respectively | 1 | ||
Prior years | 1 | ||
Total wholesale receivables | 1 | 1 | 1 |
Wholesale Receivables | Construction and Forestry | Current | |||
Credit Quality Analysis | |||
2024 and 2023, respectively | 6 | 23 | 7 |
2023 and 2022, respectively | 14 | 5 | 7 |
2022 and 2021, respectively | 4 | 20 | 24 |
2021 and 2020, respectively | 19 | 2 | |
Prior years | 1 | 76 | 1 |
Revolving | 863 | 712 | 459 |
Total wholesale receivables | $ 907 | $ 836 | $ 500 |
FINANCING RECEIVABLES - Allowan
FINANCING RECEIVABLES - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 28, 2024 | Jan. 29, 2023 | Oct. 29, 2023 | |
Allowance: | |||
Beginning of period balance | $ 197 | $ 325 | |
Provision (credit) | 11 | ||
Provision (credit) subtotal | 33 | (131) | |
Write-offs | (42) | (25) | |
Recoveries | 9 | 10 | |
Translation adjustments | (2) | (19) | |
End of period balance | 195 | 160 | |
Financing receivables: | |||
End of period balance | 50,303 | 42,131 | |
Russia | |||
Allowance: | |||
Provision transferred to held for sale | (142) | ||
Retail Customer Receivables | |||
Allowance: | |||
Write-offs | (42) | ||
Financing receivables: | |||
End of period balance | 42,830 | 38,502 | $ 44,283 |
Retail Notes & Financing Leases | |||
Allowance: | |||
Beginning of period balance | 172 | 299 | |
Provision (credit) | 15 | ||
Provision (credit) subtotal | 35 | (127) | |
Write-offs | (31) | (18) | |
Recoveries | 1 | 4 | |
Translation adjustments | (18) | ||
End of period balance | 177 | 140 | |
Financing receivables: | |||
End of period balance | 39,824 | 35,600 | |
Retail Notes & Financing Leases | Russia | |||
Allowance: | |||
Provision transferred to held for sale | (142) | ||
Revolving Charge Accounts | |||
Allowance: | |||
Beginning of period balance | 21 | 22 | |
Provision (credit) | (4) | ||
Provision (credit) subtotal | (2) | (4) | |
Write-offs | (11) | (7) | |
Recoveries | 8 | 5 | |
End of period balance | 16 | 16 | |
Financing receivables: | |||
End of period balance | 3,006 | 2,902 | |
Wholesale Receivables | |||
Allowance: | |||
Beginning of period balance | 4 | 4 | |
Recoveries | 1 | ||
Translation adjustments | (2) | (1) | |
End of period balance | 2 | 4 | |
Financing receivables: | |||
End of period balance | $ 7,473 | $ 3,629 | $ 6,922 |
FINANCING RECEIVABLES - Write-o
FINANCING RECEIVABLES - Write-offs by Year of Origination (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Write-offs by Year of Origination | ||
Total | $ 42 | $ 25 |
Retail Customer Receivables | ||
Write-offs by Year of Origination | ||
2023 | 8 | |
2022 | 11 | |
2021 | 5 | |
2020 | 5 | |
Prior Years | 2 | |
Revolving Charge Accounts | 11 | |
Total | 42 | |
Retail Customer Receivables | Agriculture and Turf | ||
Write-offs by Year of Origination | ||
2023 | 2 | |
2022 | 4 | |
2021 | 3 | |
2020 | 4 | |
Prior Years | 1 | |
Revolving Charge Accounts | 9 | |
Total | 23 | |
Retail Customer Receivables | Construction and Forestry | ||
Write-offs by Year of Origination | ||
2023 | 6 | |
2022 | 7 | |
2021 | 2 | |
2020 | 1 | |
Prior Years | 1 | |
Revolving Charge Accounts | 2 | |
Total | $ 19 |
FINANCING RECEIVABLES - Modific
FINANCING RECEIVABLES - Modifications (Details) $ in Millions | 3 Months Ended |
Jan. 28, 2024 USD ($) | |
Modifications | |
Amortized cost of modified loans | $ 17 |
Modifications (as a percent) | 0.03% |
Commitments to provide additional financing to customers whose accounts were modified | $ 0 |
Current | |
Modifications | |
Amortized cost of modified loans | 16 |
Non-performing | |
Modifications | |
Amortized cost of modified loans | $ 1 |
SECURITIZATION OF FINANCING R_3
SECURITIZATION OF FINANCING RECEIVABLES (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Securitization of Financing Receivables | |||
Other assets | $ 2,578 | $ 2,503 | $ 2,597 |
Total Assets | 101,371 | 104,087 | 91,620 |
Short-term securitization borrowings | 6,116 | 6,995 | 4,864 |
Accrued interest on borrowings - securitization transactions | 10 | 13 | 6 |
Total liabilities related to restricted securitized assets | 6,126 | 7,008 | 4,870 |
Securitized | |||
Securitization of Financing Receivables | |||
Financing receivables securitized (retail notes) | 6,418 | 7,357 | 5,102 |
Allowance for credit losses | (18) | (22) | (13) |
Other assets | 140 | 152 | 97 |
Total Assets | $ 6,540 | $ 7,487 | $ 5,186 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
INVENTORIES | |||
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 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - NET - Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Changes in Amounts of Goodwill | ||
Goodwill - net, beginning balance | $ 3,900 | $ 3,687 |
Translation adjustments | 66 | 204 |
Goodwill - net, ending balance | 3,966 | 3,891 |
Production & Precision Ag (PPA) | ||
Changes in Amounts of Goodwill | ||
Goodwill - net, beginning balance | 702 | 646 |
Translation adjustments | 4 | 15 |
Goodwill - net, ending balance | 706 | 661 |
Small Ag & Turf (SAT) | ||
Changes in Amounts of Goodwill | ||
Goodwill - net, beginning balance | 363 | 318 |
Translation adjustments | 2 | 7 |
Goodwill - net, ending balance | 365 | 325 |
Construction & Forestry (CF) | ||
Changes in Amounts of Goodwill | ||
Goodwill - net, beginning balance | 2,835 | 2,723 |
Translation adjustments | 60 | 182 |
Goodwill - net, ending balance | $ 2,895 | $ 2,905 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - NET - Intangible Assets (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Amortized intangible assets: | |||
Total at cost | $ 1,921 | $ 1,888 | $ 1,909 |
Total accumulated amortization | 809 | 755 | 654 |
Other intangible assets - net | 1,112 | 1,133 | 1,255 |
Customer Lists and Relationships | |||
Amortized intangible assets: | |||
Total at cost | 509 | 501 | 522 |
Total accumulated amortization | 207 | 195 | 184 |
Technology, Patents, Trademarks and Other | |||
Amortized intangible assets: | |||
Total at cost | 1,412 | 1,387 | 1,387 |
Total accumulated amortization | $ 602 | $ 560 | $ 470 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - NET - Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Amortized Intangible Assets: | ||
Amortization expense of other intangible assets | $ 42 | $ 39 |
Amortization expense of other intangible assets - remainder of 2024 | 131 | |
Amortization expense of other intangible assets - 2025 | 144 | |
Amortization expense of other intangible assets - 2026 | 121 | |
Amortization expense of other intangible assets - 2027 | 119 | |
Amortization expense of other intangible assets - 2028 | 87 | |
Amortization expense of other intangible assets - 2029 | $ 74 |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Short-term borrowings | |||
Short-term borrowings | $ 17,117 | $ 17,939 | $ 14,129 |
Commercial Paper | |||
Short-term borrowings | |||
Short-term borrowings | 8,378 | 9,100 | 6,425 |
Notes Payable to Banks | |||
Short-term borrowings | |||
Short-term borrowings | 310 | 483 | 303 |
Finance Lease Obligations Due Within One Year | |||
Short-term borrowings | |||
Short-term borrowings | 27 | 25 | 23 |
Long-term Borrowings Due Within One Year | |||
Short-term borrowings | |||
Short-term borrowings | $ 8,402 | $ 8,331 | $ 7,378 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 | Oct. 30, 2022 |
Accounts payable: | ||||
Dividends payable | $ 413 | $ 388 | $ 358 | |
Operating lease liabilities | $ 293 | $ 281 | $ 305 | |
Location of operating lease, liability | Accounts payable and accrued expenses | Accounts payable and accrued expenses | Accounts payable and accrued expenses | |
Deposits withheld from dealers and merchants | $ 153 | $ 163 | $ 153 | |
Other | 183 | 153 | 156 | |
Accrued expenses: | ||||
Employee benefits | 1,107 | 2,152 | 1,015 | |
Product warranties | 1,589 | 1,610 | 1,444 | $ 1,427 |
Accrued taxes | 1,364 | 1,558 | 1,336 | |
Derivative liabilities | 744 | 1,130 | 891 | |
Dealer sales discounts | 243 | 1,243 | 256 | |
Extended warranty premium | 1,047 | 1,021 | 901 | |
Unearned revenue (contractual liability) | 700 | 676 | 601 | |
Unearned operating lease revenue | 456 | 451 | 406 | |
Accrued interest | 502 | 434 | 371 | |
Other | 1,377 | 1,397 | 1,289 | |
Accounts payable and accrued expenses | 13,361 | 16,130 | 13,108 | |
Eliminations | Trade Accounts and Notes Receivable | ||||
Accrued expenses: | ||||
Dealer sales incentive accruals with a right of set-off against trade receivables | 2,410 | 2,228 | 1,540 | |
Nonrelated Party | ||||
Accounts payable: | ||||
Trade payables | 3,184 | 3,467 | 3,616 | |
Related Party | ||||
Accounts payable: | ||||
Trade payables | $ 6 | $ 6 | $ 10 |
LONG-TERM BORROWINGS (Details)
LONG-TERM BORROWINGS (Details) € in Millions, $ in Millions | Jan. 28, 2024 USD ($) | Jan. 28, 2024 EUR (€) | Oct. 29, 2023 USD ($) | Oct. 29, 2023 EUR (€) | Jan. 29, 2023 USD ($) | Jan. 29, 2023 EUR (€) |
Long-term borrowings | ||||||
Less: debt issuance costs and debt discounts | $ (135) | $ (135) | $ (122) | |||
Total long-term borrowings | 39,933 | 38,477 | 35,071 | |||
2.75% Notes Due 2025 | ||||||
Long-term borrowings | ||||||
Long-term borrowings, gross | $ 700 | $ 700 | $ 700 | |||
Debt instrument, stated interest rate | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% |
6.55% Debentures Due 2028 | ||||||
Long-term borrowings | ||||||
Long-term borrowings, gross | $ 200 | $ 200 | $ 200 | |||
Debt instrument, stated interest rate | 6.55% | 6.55% | 6.55% | 6.55% | 6.55% | 6.55% |
5.375% Notes Due 2029 | ||||||
Long-term borrowings | ||||||
Long-term borrowings, gross | $ 500 | $ 500 | $ 500 | |||
Debt instrument, stated interest rate | 5.375% | 5.375% | 5.375% | 5.375% | 5.375% | 5.375% |
3.10% Notes Due 2030 | ||||||
Long-term borrowings | ||||||
Long-term borrowings, gross | $ 700 | $ 700 | $ 700 | |||
Debt instrument, stated interest rate | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% |
8.10% Debentures Due 2030 | ||||||
Long-term borrowings | ||||||
Long-term borrowings, gross | $ 250 | $ 250 | $ 250 | |||
Debt instrument, stated interest rate | 8.10% | 8.10% | 8.10% | 8.10% | 8.10% | 8.10% |
7.125% Notes Due 2031 | ||||||
Long-term borrowings | ||||||
Long-term borrowings, gross | $ 300 | $ 300 | $ 300 | |||
Debt instrument, stated interest rate | 7.125% | 7.125% | 7.125% | 7.125% | 7.125% | 7.125% |
3.90% Notes Due 2042 | ||||||
Long-term borrowings | ||||||
Long-term borrowings, gross | $ 1,250 | $ 1,250 | $ 1,250 | |||
Debt instrument, stated interest rate | 3.90% | 3.90% | 3.90% | 3.90% | 3.90% | 3.90% |
2.875% Notes Due 2049 | ||||||
Long-term borrowings | ||||||
Long-term borrowings, gross | $ 500 | $ 500 | $ 500 | |||
Debt instrument, stated interest rate | 2.875% | 2.875% | 2.875% | 2.875% | 2.875% | 2.875% |
3.75% Notes Due 2050 | ||||||
Long-term borrowings | ||||||
Long-term borrowings, gross | $ 850 | $ 850 | $ 850 | |||
Debt instrument, stated interest rate | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% |
1.375% Notes Due 2024 | ||||||
Long-term borrowings | ||||||
Long-term borrowings, gross | $ 871 | |||||
Debt instrument, stated interest rate | 1.375% | 1.375% | ||||
Principal amount | € | € 800 | |||||
1.85% Notes Due 2028 | ||||||
Long-term borrowings | ||||||
Long-term borrowings, gross | $ 651 | $ 634 | $ 653 | |||
Debt instrument, stated interest rate | 1.85% | 1.85% | 1.85% | 1.85% | 1.85% | 1.85% |
Principal amount | € | € 600 | € 600 | € 600 | |||
2.20% Notes Due 2032 | ||||||
Long-term borrowings | ||||||
Long-term borrowings, gross | $ 651 | $ 634 | $ 653 | |||
Debt instrument, stated interest rate | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% |
Principal amount | € | € 600 | € 600 | € 600 | |||
1.65% Notes Due 2039 | ||||||
Long-term borrowings | ||||||
Long-term borrowings, gross | $ 705 | $ 687 | $ 708 | |||
Debt instrument, stated interest rate | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% |
Principal amount | € | € 650 | € 650 | € 650 | |||
Medium-term Notes | ||||||
Long-term borrowings | ||||||
Long-term borrowings, gross | $ 31,001 | $ 29,638 | $ 25,618 | |||
Principal amount | 31,808 | 30,902 | 26,367 | |||
Other Notes and Finance Lease Obligations | ||||||
Long-term borrowings | ||||||
Long-term borrowings, gross | $ 1,810 | $ 1,769 | $ 1,440 |
LEASES - LESSOR - Lease Revenue
LEASES - LESSOR - Lease Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
LEASES - LESSOR | ||
Sales-type and direct finance lease revenues | $ 47 | $ 41 |
Operating lease revenues | 339 | 321 |
Variable lease revenues | 4 | 6 |
Total lease revenues | $ 390 | $ 368 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Warranty (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Warranty Liability Reconciliation | ||
Beginning of period balance | $ 1,610 | $ 1,427 |
Warranty claims paid | (309) | (262) |
New product warranty accruals | 281 | 256 |
Foreign exchange | 7 | 23 |
End of period balance | $ 1,589 | $ 1,444 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Other (Details) $ in Millions | 3 Months Ended |
Jan. 28, 2024 USD ($) | |
Long Term Purchase Commitments | |
Commitments for the construction and acquisition of property and equipment | $ 597 |
Restricted Assets and Other Contingent Liabilities | |
Other restricted assets | 214 |
Miscellaneous contingent liabilities and guarantees | 115 |
Guarantees, Third-party Receivables | |
Guarantee Obligations | |
Guarantee obligations maximum exposure | $ 166 |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Instruments (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Fair Values of Financial Instruments | |||
Short-term securitization borrowings | $ 6,116 | $ 6,995 | $ 4,864 |
Unrestricted | |||
Fair Values of Financial Instruments | |||
Financing receivables - net | 43,708 | 43,673 | 36,882 |
Securitized | |||
Fair Values of Financial Instruments | |||
Financing receivables - net | $ 6,400 | $ 7,335 | $ 5,089 |
Location of liability for pledged asset | Short-term securitization borrowings | Short-term securitization borrowings | Short-term securitization borrowings |
Level 2 | |||
Fair Values of Financial Instruments | |||
Short-term securitization borrowings | $ 6,104 | $ 6,921 | $ 4,785 |
Long-term borrowings due within one year | 8,283 | 8,156 | 7,220 |
Long-term borrowings | 39,321 | 36,873 | 34,149 |
Level 3 | Unrestricted | |||
Fair Values of Financial Instruments | |||
Financing receivables - net | 43,236 | 42,777 | 35,894 |
Level 3 | Securitized | |||
Fair Values of Financial Instruments | |||
Financing receivables - net | $ 6,225 | $ 7,056 | $ 4,869 |
Location of liability for pledged asset | Short-term securitization borrowings | Short-term securitization borrowings | Short-term securitization borrowings |
Carrying Value | |||
Fair Values of Financial Instruments | |||
Short-term securitization borrowings | $ 6,116 | $ 6,995 | $ 4,864 |
Long-term borrowings due within one year | 8,402 | 8,331 | 7,378 |
Long-term borrowings | 39,878 | 38,428 | 35,035 |
Carrying Value | Unrestricted | |||
Fair Values of Financial Instruments | |||
Financing receivables - net | 43,708 | 43,673 | 36,882 |
Carrying Value | Securitized | |||
Fair Values of Financial Instruments | |||
Financing receivables - net | $ 6,400 | $ 7,335 | $ 5,089 |
Location of liability for pledged asset | Short-term securitization borrowings | Short-term securitization borrowings | Short-term securitization borrowings |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liaibilities - Recurring (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | $ 1,136 | $ 946 | $ 852 |
Derivative assets | 253 | 292 | 360 |
Derivative liabilities | 744 | 1,130 | 891 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 475 | 300 | 270 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | International Equity Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 5 | 3 | 2 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | International Mutual Funds Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 57 | 101 | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | U.S. Equity Funds | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 105 | 86 | 86 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | U.S. Fixed Income Fund | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 34 | 32 | 118 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | U.S. Government Debt Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 274 | 78 | 64 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 661 | 646 | 582 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Other Assets Member | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Derivative assets | 253 | 292 | 360 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Accounts Payable and Accrued Expenses | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Derivative liabilities | 744 | 1,130 | 891 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Corporate Debt Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 220 | 244 | 209 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | International Debt Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 87 | 1 | 18 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Mortgage-backed Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 161 | 185 | 157 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Municipal Debt Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 69 | 75 | 71 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | U.S. Government Debt Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 124 | 141 | 127 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 3 | Accounts Payable and Accrued Expenses | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Deferred consideration | $ 176 | $ 186 | $ 225 |
FAIR VALUE MEASUREMENTS - Contr
FAIR VALUE MEASUREMENTS - Contractual Maturities of Debt Securities (Details) $ in Millions | Jan. 28, 2024 USD ($) |
Contractual Maturities of Debt Securities, Amortized Cost | |
Amortized cost, due in one year or less | $ 22 |
Amortized cost, due after one through five years | 242 |
Amortized cost, due after five through 10 years | 421 |
Amortized cost, due after 10 years | 192 |
Amortized cost, mortgage-backed securities | 189 |
Amortized cost, debt securities | 1,066 |
Contractual Maturities of Debt Securities, Fair Value | |
Fair value, due in one year or less | 21 |
Fair value, due after one through five years | 194 |
Fair value, due after five through 10 years | 398 |
Fair value, due after 10 years | 161 |
Fair value, mortgage-backed securities | 161 |
Fair value, debt securities | $ 935 |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Values (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Fair Values of Derivative Instruments | |||
Derivative assets | $ 253 | $ 292 | $ 360 |
Derivative liabilities | 744 | 1,130 | 891 |
Designated as Hedging Instruments | Cash Flow Hedges Member | Interest Rate Contracts (Swaps) | |||
Fair Values of Derivative Instruments | |||
Notional | 2,200 | 1,500 | 1,950 |
Designated as Hedging Instruments | Cash Flow Hedges Member | Interest Rate Contracts (Swaps) | Other Assets Member | |||
Fair Values of Derivative Instruments | |||
Derivative assets | 27 | 45 | 69 |
Designated as Hedging Instruments | Cash Flow Hedges Member | Interest Rate Contracts (Swaps) | Accounts Payable and Accrued Expenses | |||
Fair Values of Derivative Instruments | |||
Derivative liabilities | 4 | ||
Designated as Hedging Instruments | Fair Value Hedges Member | Interest Rate Contracts (Swaps) | |||
Fair Values of Derivative Instruments | |||
Notional | 12,633 | 12,691 | 10,802 |
Designated as Hedging Instruments | Fair Value Hedges Member | Interest Rate Contracts (Swaps) | Other Assets Member | |||
Fair Values of Derivative Instruments | |||
Derivative assets | 58 | 21 | |
Designated as Hedging Instruments | Fair Value Hedges Member | Interest Rate Contracts (Swaps) | Accounts Payable and Accrued Expenses | |||
Fair Values of Derivative Instruments | |||
Derivative liabilities | 592 | 970 | 678 |
Not Designated as Hedging Instruments | Interest Rate Contracts (Swaps) | |||
Fair Values of Derivative Instruments | |||
Notional | 14,200 | 13,853 | 11,147 |
Not Designated as Hedging Instruments | Interest Rate Contracts (Swaps) | Other Assets Member | |||
Fair Values of Derivative Instruments | |||
Derivative assets | 129 | 169 | 188 |
Not Designated as Hedging Instruments | Interest Rate Contracts (Swaps) | Accounts Payable and Accrued Expenses | |||
Fair Values of Derivative Instruments | |||
Derivative liabilities | 82 | 98 | 97 |
Not Designated as Hedging Instruments | Foreign Exchange Contracts | |||
Fair Values of Derivative Instruments | |||
Notional | 7,856 | 8,117 | 9,304 |
Not Designated as Hedging Instruments | Foreign Exchange Contracts | Other Assets Member | |||
Fair Values of Derivative Instruments | |||
Derivative assets | 39 | 75 | 71 |
Not Designated as Hedging Instruments | Foreign Exchange Contracts | Accounts Payable and Accrued Expenses | |||
Fair Values of Derivative Instruments | |||
Derivative liabilities | 53 | 54 | 110 |
Not Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | |||
Fair Values of Derivative Instruments | |||
Notional | 189 | 176 | 234 |
Not Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Other Assets Member | |||
Fair Values of Derivative Instruments | |||
Derivative assets | 3 | 11 | |
Not Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Accounts Payable and Accrued Expenses | |||
Fair Values of Derivative Instruments | |||
Derivative liabilities | $ 13 | $ 8 | $ 6 |
DERIVATIVE INSTRUMENTS - Fair_2
DERIVATIVE INSTRUMENTS - Fair Value Hedges (Details) - Fair Value Hedges Member - Interest Rate Contracts (Swaps) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Active Hedging Relationships | |||
Carrying Amount of Hedged Item | $ 11,660 | $ 10,088 | |
Location of hedged item | Long-term borrowings | Long-term borrowings | |
Short-term Borrowings | |||
Active Hedging Relationships | |||
Carrying Amount of Hedged Item | $ 288 | ||
Cumulative Fair Value Hedging Amount | (9) | ||
Discontinued Hedging Relationships | |||
Carrying Amount of Formerly Hedged Item | 1,960 | $ 1,814 | $ 1,915 |
Cumulative Fair Value Hedging Amount - Discontinued | 10 | 15 | 15 |
Long-term Borrowings | |||
Active Hedging Relationships | |||
Carrying Amount of Hedged Item | 11,745 | ||
Cumulative Fair Value Hedging Amount | (537) | (976) | (666) |
Discontinued Hedging Relationships | |||
Carrying Amount of Formerly Hedged Item | 7,711 | 7,144 | 5,506 |
Cumulative Fair Value Hedging Amount - Discontinued | $ (270) | $ (288) | $ (83) |
DERIVATIVE INSTRUMENTS - Gains
DERIVATIVE INSTRUMENTS - Gains (Losses) on Statements of Consolidated Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||
Not designated as hedges, gains (losses) | $ (215) | $ (151) |
Interest Rate Contracts (Swaps) | ||
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||
Cash flow hedges, recognized in OCI | (8) | (1) |
Interest Rate Contracts (Swaps) | Net Sales Related to Derivative Instruments | ||
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||
Not designated as hedges, gains (losses) | (7) | |
Interest Rate Contracts (Swaps) | Interest Expense Member | ||
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||
Fair value hedges, gains (losses) | 344 | 239 |
Cash flow hedges, reclassified from OCI | 11 | 15 |
Not designated as hedges, gains (losses) | (9) | (8) |
Foreign Exchange Contracts | Net Sales Related to Derivative Instruments | ||
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||
Not designated as hedges, gains (losses) | 5 | 1 |
Foreign Exchange Contracts | Cost of Sales | ||
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||
Not designated as hedges, gains (losses) | (30) | 5 |
Foreign Exchange Contracts | Other Operating Expense | ||
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||
Not designated as hedges, gains (losses) | $ (181) | $ (142) |
DERIVATIVE INSTRUMENTS - Counte
DERIVATIVE INSTRUMENTS - Counterparty Risk and Collateral (Details) - USD ($) $ in Millions | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Derivative instruments | |||
Fair value of derivatives with credit-risk-related contingent features in a liability position | $ 691 | $ 1,076 | $ 781 |
Cash collateral posted | 368 | 659 | 349 |
Derivative Assets | |||
Gross amounts recognized | 253 | 292 | 360 |
Netting arrangements | (112) | (152) | (162) |
Collateral received | (19) | (47) | |
Net amount | 122 | 140 | 151 |
Derivative Liabilities | |||
Gross amounts recognized | 744 | 1,130 | 891 |
Netting arrangements | (112) | (152) | (162) |
Collateral paid | (368) | (659) | (349) |
Net amount | 264 | 319 | 380 |
International Futures Market | |||
Derivative instruments | |||
Collateral paid to participate in an international futures market | $ 8 | $ 8 | $ 8 |
SHARE-BASED AWARDS - Stock Opti
SHARE-BASED AWARDS - Stock Options (Details) - $ / shares shares in Thousands | 1 Months Ended | 3 Months Ended |
Dec. 24, 2023 | Jan. 28, 2024 | |
Share-based Awards, Aggregate Disclosures | ||
Number of additional shares authorized for grant related to stock options and restricted stock units | 15,000 | |
Employee Stock Option [Member] | ||
Share-based Awards, Aggregate Disclosures | ||
Options granted (in shares) | 216 | |
Options granted, exercise price (in dollars per share) | $ 377.01 | |
Options granted, fair value (in dollars per share) | $ 98.04 | |
Options outstanding (in shares) | 1,900 | |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 214.88 | |
Fair value assumptions method used | lattice model |
SHARE-BASED AWARDS - Restricted
SHARE-BASED AWARDS - Restricted Stock Units Granted and Weighted-Average Grant Date Fair Values (Details) shares in Thousands | 3 Months Ended |
Jan. 28, 2024 $ / shares shares | |
Restricted Stock Units Service Based [Member] | |
Share-based Awards, Aggregate Disclosures | |
Restricted stock units granted (in shares) | shares | 360 |
Restricted stock units granted, weighted-average fair value (in dollars per unit) | $ / shares | $ 377.04 |
Restricted Stock Units Performance Service Based [Member] | |
Share-based Awards, Aggregate Disclosures | |
Restricted stock units granted (in shares) | shares | 52 |
Restricted stock units granted, weighted-average fair value (in dollars per unit) | $ / shares | $ 360.53 |
Restricted Stock Units Market Service Based [Member] | |
Share-based Awards, Aggregate Disclosures | |
Restricted stock units granted (in shares) | shares | 52 |
Restricted stock units granted, weighted-average fair value (in dollars per unit) | $ / shares | $ 370.87 |
Vesting period under share-based incentive plans | 3 years |
Fair value assumptions method used | Monte Carlo model |
Restricted Stock Units Market Service Based [Member] | Minimum | |
Share-based Awards, Aggregate Disclosures | |
Percent of common stock that may be awarded based on metric | 0% |
Restricted Stock Units Market Service Based [Member] | Maximum | |
Share-based Awards, Aggregate Disclosures | |
Percent of common stock that may be awarded based on metric | 200% |
SPECIAL ITEMS (Details)
SPECIAL ITEMS (Details) - Sale of Financial Services Business in Russia - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Financial Services (FS) $ in Millions | 1 Months Ended |
Mar. 26, 2023 USD ($) | |
Disposition | |
Total proceeds, net of restricted cash sold | $ 36 |
Total assets | 31 |
Total liabilities | 5 |
Cumulative translation loss | $ 10 |
SUBSEQUENT EVENTS - Securitizat
SUBSEQUENT EVENTS - Securitization Borrowings (Details) - USD ($) $ in Millions | Feb. 25, 2024 | Jan. 28, 2024 | Oct. 29, 2023 | Jan. 29, 2023 |
Subsequent Events | ||||
Securitization borrowings | $ 6,116 | $ 6,995 | $ 4,864 | |
Subsequent Events | Short-term Securitization Borrowings | ||||
Subsequent Events | ||||
Securitization borrowings | $ 529 |
SUBSEQUENT EVENTS - Quarterly D
SUBSEQUENT EVENTS - Quarterly Dividend (Details) - $ / shares | 3 Months Ended | ||
Feb. 28, 2024 | Jan. 28, 2024 | Jan. 29, 2023 | |
Subsequent Events | |||
Quarterly dividend declared (in dollars per share) | $ 1.47 | $ 1.20 | |
Subsequent Events | |||
Subsequent Events | |||
Quarterly dividend declared (in dollars per share) | $ 1.47 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Jan. 28, 2024 | Jan. 29, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 1,751 | $ 1,959 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jan. 28, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |