Deere & Company (DE) 10-Q 2024 Q2 Quarterly report

0000315189us-gaap:FinancingReceivables30To59DaysPastDueMember2023-10-302024-04-28

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended April 28, 2024

or

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

For the transition period from ____ to ____

Commission file no: 1-4121

DEERE  &  COMPANY

(Exact name of registrant as specified in its charter)

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

One John Deere Place

Moline, Illinois 61265

(Address of principal executive offices)

Telephone Number: (309) 765-8000

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

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

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

Yes ☒ No ☐

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

Yes ☒ No ☐

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

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

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

At April 28, 2024, 275,570,318 shares of common stock, $1 par value, of the registrant were outstanding.

PART I. FINANCIAL INFORMATION

Item 1.FINANCIAL STATEMENTS

DEERE & COMPANY
STATEMENTS OF CONSOLIDATED INCOME
For the Three and Six Months Ended April 28, 2024 and April 30, 2023
(In millions of dollars and shares except per share amounts) Unaudited
	Three Months Ended				Six Months Ended
	2024		2023		2024		2023
Net Sales and Revenues
Net sales	$	13,610	$	16,079	$	24,097	$	27,481
Finance and interest income		1,387		1,079		2,746		2,073
Other income		238		229		577		484
Total		15,235		17,387		27,420		30,038
Costs and Expenses
Cost of sales		9,157		10,730		16,357		18,663
Research and development expenses		565		547		1,098		1,043
Selling, administrative and general expenses		1,265		1,330		2,330		2,283
Interest expense		836		569		1,638		1,049
Other operating expenses		295		363		664		660
Total		12,118		13,539		22,087		23,698
Income of Consolidated Group before Income Taxes		3,117		3,848		5,333		6,340
Provision for income taxes		751		991		1,220		1,528
Income of Consolidated Group		2,366		2,857		4,113		4,812
Equity in income of unconsolidated affiliates		2		2		3		3
Net Income		2,368		2,859		4,116		4,815
Less: Net loss attributable to noncontrolling interests		(2)		(1)		(5)		(4)
Net Income Attributable to Deere & Company	$	2,370	$	2,860	$	4,121	$	4,819
Per Share Data
Basic	$	8.56	$	9.69	$	14.80	$	16.26
Diluted		8.53		9.65		14.74		16.18
Dividends declared		1.47		1.25		2.94		2.45
Dividends paid		1.47		1.20		2.82		2.33
Average Shares Outstanding
Basic		276.8		295.1		278.4		296.3
Diluted		277.9		296.5		279.5		297.8

See Condensed Notes to Interim Consolidated Financial Statements.

2

DEERE & COMPANY
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME
For the Three and Six Months Ended April 28, 2024 and April 30, 2023
(In millions of dollars) Unaudited
	Three Months Ended				Six Months Ended
	2024		2023		2024		2023
Net Income	$	2,368	$	2,859	$	4,116	$	4,815
Other Comprehensive Income (Loss), Net of Income Taxes
Retirement benefits adjustment		(87)		(247)		(108)		(258)
Cumulative translation adjustment		(217)		100		57		781
Unrealized gain (loss) on derivatives		8		(18)		(7)		(31)
Unrealized gain (loss) on debt securities		(12)		(1)		1		26
Other Comprehensive Income (Loss), Net of Income Taxes		(308)		(166)		(57)		518
Comprehensive Income of Consolidated Group		2,060		2,693		4,059		5,333
Less: Comprehensive income (loss) attributable to noncontrolling interests		(3)		1		(4)		6
Comprehensive Income Attributable to Deere & Company	$	2,063	$	2,692	$	4,063	$	5,327

See Condensed Notes to Interim Consolidated Financial Statements.

3

DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions of dollars) Unaudited
	April 28		October 29		April 30
	2024		2023		2023
Assets
Cash and cash equivalents	$	5,553	$	7,458	$	5,267
Marketable securities		1,094		946		856
Trade accounts and notes receivable – net		8,880		7,739		9,971
Financing receivables – net		45,278		43,673		38,954
Financing receivables securitized – net		7,262		7,335		5,659
Other receivables		2,535		2,623		2,593
Equipment on operating leases – net		6,965		6,917		6,524
Inventories		8,443		8,160		9,713
Property and equipment – net		7,034		6,879		6,288
Goodwill		3,936		3,900		3,963
Other intangible assets – net		1,064		1,133		1,222
Retirement benefits		3,056		3,007		3,519
Deferred income taxes		1,936		1,814		1,308
Other assets		2,592		2,503		2,510
Total Assets	$	105,628	$	104,087	$	98,347
Liabilities and Stockholders’ Equity
Liabilities
Short-term borrowings	$	17,699	$	17,939	$	17,109
Short-term securitization borrowings		6,976		6,995		5,379
Accounts payable and accrued expenses		14,609		16,130		14,716
Deferred income taxes		491		520		511
Long-term borrowings		40,962		38,477		35,611
Retirement benefits and other liabilities		2,105		2,140		2,520
Total liabilities		82,842		82,201		75,846
Commitments and contingencies (Note 16)
Redeemable noncontrolling interest		98		97		102
Stockholders’ Equity
Common stock, $1 par value (issued shares at April 28, 2024 – 536,431,204)		5,391		5,303		5,227
Common stock in treasury		(33,764)		(31,335)		(26,630)
Retained earnings		54,228		50,931		46,336
Accumulated other comprehensive income (loss)		(3,171)		(3,114)		(2,538)
Total Deere & Company stockholders’ equity		22,684		21,785		22,395
Noncontrolling interests		4		4		4
Total stockholders’ equity		22,688		21,789		22,399
Total Liabilities and Stockholders’ Equity	$	105,628	$	104,087	$	98,347

See Condensed Notes to Interim Consolidated Financial Statements.

4

DEERE & COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Six Months Ended April 28, 2024 and April 30, 2023
(In millions of dollars) Unaudited
	2024		2023
Cash Flows from Operating Activities
Net income	$	4,116	$	4,815
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses		131		(89)
Provision for depreciation and amortization		1,045		995
Other non-cash adjustments (Note 21)				173
Share-based compensation expense		104		54
Credit for deferred income taxes		(120)		(377)
Changes in assets and liabilities:
Receivables related to sales		(2,469)		(4,407)
Inventories		(409)		(982)
Accounts payable and accrued expenses		(1,300)		(313)
Accrued income taxes payable/receivable		(29)		(96)
Retirement benefits		(208)		(68)
Other		83		148
Net cash provided by (used for) operating activities		944		(147)
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)		13,703		12,593
Proceeds from maturities and sales of marketable securities		200		98
Proceeds from sales of equipment on operating leases		1,011		993
Cost of receivables acquired (excluding receivables related to sales)		(14,091)		(13,451)
Purchases of marketable securities		(432)		(188)
Purchases of property and equipment		(719)		(584)
Cost of equipment on operating leases acquired		(1,369)		(1,229)
Collateral on derivatives – net		96		367
Other		(69)		(93)
Net cash used for investing activities		(1,670)		(1,494)
Cash Flows from Financing Activities
Net proceeds in short-term borrowings (original maturities three months or less)		58		3,992
Proceeds from borrowings issued (original maturities greater than three months)		10,189		4,868
Payments of borrowings (original maturities greater than three months)		(8,139)		(3,567)
Repurchases of common stock		(2,422)		(2,546)
Dividends paid		(796)		(697)
Other		(52)		(33)
Net cash provided by (used for) financing activities		(1,162)		2,017
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		(5)		70
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash		(1,893)		446
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		7,620		4,941
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	5,727	$	5,387
Components of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents	$	5,553	$	5,267
Restricted cash (Other assets)		174		120
Total Cash, Cash Equivalents, and Restricted Cash	$	5,727	$	5,387

See Condensed Notes to Interim Consolidated Financial Statements.

5

DEERE & COMPANY
STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY
For the Three and Six Months Ended April 28, 2024 and April 30, 2023
(In millions of dollars) Unaudited
			Total Stockholders’ Equity
			Deere & Company Stockholders
									Accumulated
	Total								Other				Redeemable
	Stockholders’		Common		Treasury		Retained		Comprehensive		Noncontrolling		Noncontrolling
	Equity		Stock		Stock		Earnings		Income (Loss)		Interests		Interest
Three Months Ended April 30, 2023
Balance January 29, 2023	$	21,336	$	5,191	$	(25,333)	$	43,846	$	(2,372)	$	4	$	100
Net income (loss)		2,861						2,860				1		(2)
Other comprehensive income (loss)		(166)								(166)				2
Repurchases of common stock		(1,301)				(1,301)
Treasury shares reissued		4				4
Dividends declared		(370)						(369)				(1)
Share based awards and other		35		36				(1)						2
Balance April 30, 2023	$	22,399	$	5,227	$	(26,630)	$	46,336	$	(2,538)	$	4	$	102
Six Months Ended April 30, 2023
Balance October 30, 2022	$	20,265	$	5,165	$	(24,094)	$	42,247	$	(3,056)	$	3	$	92
Net income (loss)		4,820						4,819				1		(5)
Other comprehensive income		518								518				10
Repurchases of common stock		(2,558)				(2,558)
Treasury shares reissued		22				22
Dividends declared		(726)						(725)				(1)
Share based awards and other		58		62				(5)				1		5
Balance April 30, 2023	$	22,399	$	5,227	$	(26,630)	$	46,336	$	(2,538)	$	4	$	102
Three Months Ended April 28, 2024
Balance January 28, 2024	$	22,079	$	5,335	$	(32,663)	$	52,266	$	(2,863)	$	4	$	100
Net income (loss)		2,371						2,370				1		(3)
Other comprehensive loss		(308)								(308)				(1)
Repurchases of common stock		(1,105)				(1,105)
Treasury shares reissued		4				4
Dividends declared		(407)						(406)				(1)
Share based awards and other		54		56				(2)						2
Balance April 28, 2024	$	22,688	$	5,391	$	(33,764)	$	54,228	$	(3,171)	$	4	$	98
Six Months Ended April 28, 2024
Balance October 29, 2023	$	21,789	$	5,303	$	(31,335)	$	50,931	$	(3,114)	$	4	$	97
Net income (loss)		4,122						4,121				1		(6)
Other comprehensive income (loss)		(57)								(57)				1
Repurchases of common stock		(2,445)				(2,445)
Treasury shares reissued		16				16
Dividends declared		(819)						(818)				(1)
Share based awards and other		82		88				(6)						6
Balance April 28, 2024	$	22,688	$	5,391	$	(33,764)	$	54,228	$	(3,171)	$	4	$	98

See Condensed Notes to Interim Consolidated Financial Statements.

6

Condensed Notes to Interim Consolidated Financial Statements (Unaudited)

(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 second quarter ends for fiscal year 2024 and 2023 were April 28, 2024 and April 30, 2023, respectively. Both second quarters contained 13 weeks, while both year-to-date periods contained 26 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.

(2)  Summary of Significant Accounting Policies and New Accounting PROnouncements

Quarterly Financial Statements

The interim consolidated financial statements of Deere & Company have been prepared by us, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been condensed or omitted as permitted by such rules and regulations. All normal recurring adjustments have been included. Management believes the disclosures are adequate to present fairly the financial position, results of operations, and cash flows at the dates and for the periods presented. It is suggested these interim consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto appearing in our latest Annual Report on Form 10-K. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year.

Use of Estimates in Financial Statements

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 Pronouncements

We closely monitor all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) and other authoritative guidance.

Accounting Pronouncements Adopted

We adopted the following standards in 2024, none of which had a material effect on our consolidated financial statements.

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 Pronouncements to be Adopted

In March 2024, the SEC adopted rules to enhance and standardize climate-related disclosures in annual reports and registration statements. The new rules will be effective for our annual reporting periods beginning in fiscal year 2026. In April 2024, the SEC stayed implementation of the climate-related disclosure requirements pending completion of legal challenges. We are monitoring these developments while assessing the effect of these rules on our related disclosures.

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.

7

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

(3)  Revenue Recognition

Our net sales and revenues by primary geographic market, major product line, and timing of revenue recognition follow:

	Three Months Ended April 28, 2024
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	3,881	$	1,842	$	2,500	$	996	$	9,219
Canada		600		167		242		175		1,184
Western Europe		659		688		470		40		1,857
Central Europe and CIS		275		80		91		8		454
Latin America		850		103		334		122		1,409
Asia, Africa, Oceania, and Middle East		414		373		271		54		1,112
Total	$	6,679	$	3,253	$	3,908	$	1,395	$	15,235
Major product lines:
Production agriculture	$	6,507							$	6,507
Small agriculture			$	2,098						2,098
Turf				1,017						1,017
Construction					$	1,736				1,736
Compact construction						695				695
Roadbuilding						1,080				1,080
Forestry						271				271
Financial products		39		32		17	$	1,395		1,483
Other		133		106		109				348
Total	$	6,679	$	3,253	$	3,908	$	1,395	$	15,235
Revenue recognized:
At a point in time	$	6,609	$	3,213	$	3,882	$	35	$	13,739
Over time		70		40		26		1,360		1,496
Total	$	6,679	$	3,253	$	3,908	$	1,395	$	15,235

8

	Six Months Ended April 28, 2024
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	6,602	$	3,187	$	4,596	$	1,965	$	16,350
Canada		986		285		452		347		2,070
Western Europe		1,162		1,205		831		80		3,278
Central Europe and CIS		454		153		185		16		808
Latin America		1,669		201		590		252		2,712
Asia, Africa, Oceania, and Middle East		849		714		529		110		2,202
Total	$	11,722	$	5,745	$	7,183	$	2,770	$	27,420
Major product lines:
Production agriculture	$	11,298							$	11,298
Small agriculture			$	3,816						3,816
Turf				1,666						1,666
Construction					$	3,220				3,220
Compact construction						1,321				1,321
Roadbuilding						1,843				1,843
Forestry						563				563
Financial products		99		58		35	$	2,770		2,962
Other		325		205		201				731
Total	$	11,722	$	5,745	$	7,183	$	2,770	$	27,420
Revenue recognized:
At a point in time	$	11,564	$	5,669	$	7,126	$	62	$	24,421
Over time		158		76		57		2,708		2,999
Total	$	11,722	$	5,745	$	7,183	$	2,770	$	27,420

	Three Months Ended April 30, 2023
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	4,058	$	2,241	$	2,561	$	766	$	9,626
Canada		546		189		302		153		1,190
Western Europe		758		888		492		31		2,169
Central Europe and CIS		393		212		90		8		703
Latin America		1,543		201		388		106		2,238
Asia, Africa, Oceania, and Middle East		614		469		335		43		1,461
Total	$	7,912	$	4,200	$	4,168	$	1,107	$	17,387
Major product lines:
Production agriculture	$	7,733							$	7,733
Small agriculture			$	2,952						2,952
Turf				1,099						1,099
Construction					$	1,813				1,813
Compact construction						663				663
Roadbuilding						1,134				1,134
Forestry						429				429
Financial products		29		20		12	$	1,107		1,168
Other		150		129		117				396
Total	$	7,912	$	4,200	$	4,168	$	1,107	$	17,387
Revenue recognized:
At a point in time	$	7,861	$	4,171	$	4,146	$	27	$	16,205
Over time		51		29		22		1,080		1,182
Total	$	7,912	$	4,200	$	4,168	$	1,107	$	17,387

9

	Six Months Ended April 30, 2023
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	6,686	$	3,906	$	4,461	$	1,479	$	16,532
Canada		906		335		577		303		2,121
Western Europe		1,259		1,452		857		60		3,628
Central Europe and CIS		595		335		165		20		1,115
Latin America		2,780		357		727		201		4,065
Asia, Africa, Oceania, and Middle East		989		869		635		84		2,577
Total	$	13,215	$	7,254	$	7,422	$	2,147	$	30,038
Major product lines:
Production agriculture	$	12,845							$	12,845
Small agriculture			$	5,146						5,146
Turf				1,818						1,818
Construction					$	3,295				3,295
Compact construction						1,136				1,136
Roadbuilding						1,952				1,952
Forestry						785				785
Financial products		60		38		25	$	2,147		2,270
Other		310		252		229				791
Total	$	13,215	$	7,254	$	7,422	$	2,147	$	30,038
Revenue recognized:
At a point in time	$	13,109	$	7,200	$	7,375	$	50	$	27,734
Over time		106		54		47		2,097		2,304
Total	$	13,215	$	7,254	$	7,422	$	2,147	$	30,038

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 $1,911, $1,697, and $1,622 at April 28, 2024, October 29, 2023, and April 30, 2023, respectively. The contract liability is reduced as the revenue is recognized. During the three months ended April 28, 2024 and April 30, 2023, $128 and $129, respectively, of revenue was recognized from deferred revenue that was recorded as a contract liability at the beginning of the respective fiscal year. During the six months ended April 28, 2024 and April 30, 2023, $358 and $343, 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 $1,633 at April 28, 2024. The estimated revenue to be recognized by fiscal year follows: remainder of 2024 – $297, 2025 – $438, 2026 – $352, 2027 – $224, 2028 – $137, 2029 – $97, and later years – $88. As permitted, we elected only to disclose remaining performance obligations with an original contract duration greater than one year. The contracts with an expected duration of one year or less are for sales to dealers and retail customers for equipment, service parts, repair services, and certain telematics services.

(4)  Other Comprehensive Income Items

The after-tax components of accumulated other comprehensive income (loss) follow:

	April 28		October 29		April 30
	2024		2023		2023
Retirement benefits adjustment	$	(953)	$	(845)	$	(647)
Cumulative translation adjustment		(2,094)		(2,151)		(1,813)
Unrealized gain (loss) on derivatives		(15)		(8)		(10)
Unrealized gain (loss) on debt securities		(109)		(110)		(68)
Total accumulated other comprehensive income (loss)	$	(3,171)	$	(3,114)	$	(2,538)

10

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 April 28, 2024	Amount		Credit		Amount
Cumulative translation adjustment	$	(217)			$	(217)
Unrealized gain (loss) on derivatives:
Unrealized hedging gain (loss)		26	$	(5)		21
Reclassification of realized (gain) loss to:
Interest rate contracts – Interest expense		(16)		3		(13)
Net unrealized gain (loss) on derivatives		10		(2)		8
Unrealized gain (loss) on debt securities:
Unrealized holding gain (loss)		(13)		1		(12)
Net unrealized gain (loss) on debt securities		(13)		1		(12)
Retirement benefits adjustment:
Net actuarial gain (loss)		(109)		26		(83)
Reclassification to Other operating expenses through amortization of:
Actuarial (gain) loss		(16)		5		(11)
Prior service (credit) cost		9		(3)		6
Settlements		1				1
Net unrealized gain (loss) on retirement benefits adjustment		(115)		28		(87)
Total other comprehensive income (loss)	$	(335)	$	27	$	(308)

	Before		Tax		After
	Tax		(Expense)		Tax
Six Months Ended April 28, 2024	Amount		Credit		Amount
Cumulative translation adjustment	$	56	$	1	$	57
Unrealized gain (loss) on derivatives:
Unrealized hedging gain (loss)		18		(3)		15
Reclassification of realized (gain) loss to:
Interest rate contracts – Interest expense		(27)		5		(22)
Net unrealized gain (loss) on derivatives		(9)		2		(7)
Unrealized gain (loss) on debt securities:
Unrealized holding gain (loss)		(12)		7		(5)
Reclassification of realized (gain) loss – Other income		8		(2)		6
Net unrealized gain (loss) on debt securities		(4)		5		1
Retirement benefits adjustment:
Net actuarial gain (loss)		(126)		30		(96)
Reclassification to Other operating expenses through amortization of:
Actuarial (gain) loss		(36)		10		(26)
Prior service (credit) cost		18		(5)		13
Settlements		1				1
Net unrealized gain (loss) on retirement benefits adjustment		(143)		35		(108)
Total other comprehensive income (loss)	$	(100)	$	43	$	(57)

11

	Before		Tax		After
	Tax		(Expense)		Tax
Three Months Ended April 30, 2023	Amount		Credit		Amount
Cumulative translation adjustment	$	100			$	100
Unrealized gain (loss) on derivatives:
Unrealized hedging gain (loss)		(4)	$	1		(3)
Reclassification of realized (gain) loss to:
Interest rate contracts – Interest expense		(19)		4		(15)
Net unrealized gain (loss) on derivatives		(23)		5		(18)
Unrealized gain (loss) on debt securities:
Unrealized holding gain (loss)		(2)		1		(1)
Net unrealized gain (loss) on debt securities		(2)		1		(1)
Retirement benefits adjustment:
Net actuarial gain (loss)		(349)		83		(266)
Reclassification to Other operating expenses through amortization of:
Actuarial (gain) loss		(20)		5		(15)
Prior service (credit) cost		10		(2)		8
Settlements		36		(10)		26
Net unrealized gain (loss) on retirement benefits adjustment		(323)		76		(247)
Total other comprehensive income (loss)	$	(248)	$	82	$	(166)

	Before		Tax		After
	Tax		(Expense)		Tax
Six Months Ended April 30, 2023	Amount		Credit		Amount
Cumulative translation adjustment	$	771	$	10	$	781
Unrealized gain (loss) on derivatives:
Unrealized hedging gain (loss)		(5)		1		(4)
Reclassification of realized (gain) loss to:
Interest rate contracts – Interest expense		(34)		7		(27)
Net unrealized gain (loss) on derivatives		(39)		8		(31)
Unrealized gain (loss) on debt securities:
Unrealized holding gain (loss)		33		(7)		26
Net unrealized gain (loss) on debt securities		33		(7)		26
Retirement benefits adjustment:
Net actuarial gain (loss)		(350)		83		(267)
Reclassification to Other operating expenses through amortization of:
Actuarial (gain) loss		(41)		10		(31)
Prior service (credit) cost		19		(5)		14
Settlements		36		(10)		26
Net unrealized gain (loss) on retirement benefits adjustment		(336)		78		(258)
Total other comprehensive income (loss)	$	429	$	89	$	518

(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				Six Months Ended
	April 28		April 30		April 28		April 30
	2024		2023		2024		2023
Net income attributable to Deere & Company	$	2,370	$	2,860	$	4,121	$	4,819
Average shares outstanding		276.8		295.1		278.4		296.3
Basic per share	$	8.56	$	9.69	$	14.80	$	16.26
Average shares outstanding		276.8		295.1		278.4		296.3
Effect of dilutive stock options and restricted stock awards		1.1		1.4		1.1		1.5
Total potential shares outstanding		277.9		296.5		279.5		297.8
Diluted per share	$	8.53	$	9.65	$	14.74	$	16.18
Shares excluded from EPS calculation, as antidilutive		.4		.2		.3		.1

12

(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				Six Months Ended
	April 28		April 30		April 28		April 30
	2024		2023		2024		2023
Pensions:
Service cost	$	57	$	64	$	115	$	124
Interest cost		138		134		274		267
Expected return on plan assets		(241)		(220)		(482)		(432)
Amortization of actuarial gain		(5)		(6)		(9)		(11)
Amortization of prior service cost		10		10		20		20
Settlements		1		36		1		36
Net (benefit) cost	$	(40)	$	18	$	(81)	$	4
OPEB:
Service cost	$	4	$	6	$	9	$	13
Interest cost		44		45		87		88
Expected return on plan assets		(27)		(29)		(54)		(58)
Amortization of actuarial gain		(11)		(14)		(27)		(30)
Amortization of prior service credit		(1)				(2)		(1)
Net cost	$	9	$	8	$	13	$	12

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 six months of 2024, we contributed and expect to contribute the following amounts to our pension and OPEB plans.

	Pensions		OPEB
Contributed	$	46	$	96
Expected contributions remainder of the year		39		44

13

(7)  Segment DATA

Information relating to operations by operating segment follows:

	Three Months Ended					Six Months Ended
	April 28		April 30		%	April 28		April 30		%
	2024		2023		Change	2024		2023		Change
Net sales and revenues:
Production & precision ag net sales	$	6,581	$	7,822	-16	$	11,430	$	13,021	-12
Small ag & turf net sales		3,185		4,145	-23		5,610		7,146	-21
Construction & forestry net sales		3,844		4,112	-7		7,057		7,314	-4
Financial services revenues		1,395		1,107	+26		2,770		2,147	+29
Other revenues		230		201	+14		553		410	+35
Total net sales and revenues	$	15,235	$	17,387	-12	$	27,420	$	30,038	-9
Operating profit:
Production & precision ag	$	1,650	$	2,170	-24	$	2,695	$	3,378	-20
Small ag & turf		571		849	-33		897		1,296	-31
Construction & forestry		668		838	-20		1,234		1,463	-16
Financial services		209		41	+410		466		279	+67
Total operating profit		3,098		3,898	-21		5,292		6,416	-18
Reconciling items		23		(47)			49		(69)
Income taxes		(751)		(991)	-24		(1,220)		(1,528)	-20
Net income attributable to Deere & Company	$	2,370	$	2,860	-17	$	4,121	$	4,819	-14
Intersegment sales and revenues:
Production & precision ag net sales	$	7	$	8	-13	$	14	$	12	+17
Small ag & turf net sales		1		4	-75		2		7	-71
Construction & forestry net sales
Financial services revenues		193		190	+2		370		395	-6

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:

	April 28		October 29		April 30
	2024		2023		2023
Production & precision ag	$	9,026	$	8,734	$	9,504
Small ag & turf		4,421		4,348		4,743
Construction & forestry		7,337		7,139		7,299
Financial services		73,834		70,732		65,233
Corporate		11,010		13,134		11,568
Total assets	$	105,628	$	104,087	$	98,347

(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.

14

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

	April 28, 2024
	2024		2023		2022		2021		2020		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf
Current	$	7,393	$	11,869	$	6,934	$	3,987	$	1,682	$	696	$	3,662	$	36,223
30-59 days past due		32		99		55		35		15		6		27		269
60-89 days past due		7		44		23		11		6		3		12		106
90+ days past due				3		1		3		5						12
Non-performing		3		83		90		63		31		35		70		375
Construction and forestry
Current		1,619		2,415		1,514		744		207		79		107		6,685
30-59 days past due		25		61		38		20		7		3		5		159
60-89 days past due		7		34		14		10		3		2		2		72
90+ days past due				4		9		1				1				15
Non-performing		5		100		85		47		17		8		2		264
Total retail customer receivables	$	9,091	$	14,712	$	8,763	$	4,921	$	1,973	$	833	$	3,887	$	44,180

	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

	April 30, 2023
	2023		2022		2021		2020		2019		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf
Current	$	6,718	$	10,947	$	6,435	$	3,155	$	1,305	$	619	$	3,621	$	32,800
30-59 days past due		10		55		55		31		18		9		16		194
60-89 days past due		2		15		24		19		4		2		8		74
90+ days past due				1		1										2
Non-performing		5		51		51		36		25		29		25		222
Construction and forestry
Current		1,442		2,434		1,490		557		169		56		106		6,254
30-59 days past due		7		35		29		25		21		10		4		131
60-89 days past due		1		8		16		12		14		12		2		65
90+ days past due				7		1		1		2						11
Non-performing		5		71		61		33		12		6		1		189
Total retail customer receivables	$	8,190	$	13,624	$	8,163	$	3,869	$	1,570	$	743	$	3,783	$	39,942

15

The credit quality analysis of wholesale receivables by year of origination was as follows:

	April 28, 2024
	2024		2023		2022		2021		2020		Prior Years		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current	$	441	$	322	$	50	$	2	$	2	$	2	$	6,565	$	7,384
30+ days past due
Non-performing												1				1
Construction and forestry
Current		49		15		4		19						1,118		1,205
30+ days past due
Non-performing
Total wholesale receivables	$	490	$	337	$	54	$	21	$	2	$	3	$	7,683	$	8,590

	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

	April 30, 2023
	2023		2022		2021		2020		2019		Prior Years		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current	$	265	$	198	$	36	$	15	$	2	$	1	$	3,653	$	4,170
30+ days past due
Non-performing										1						1
Construction and forestry
Current		10		6		24		1				1		638		680
30+ days past due
Non-performing
Total wholesale receivables	$	275	$	204	$	60	$	16	$	3	$	2	$	4,291	$	4,851

16

An analysis of the allowance for credit losses and investment in financing receivables follows:

	Retail Notes		Revolving
	& Financing		Charge		Wholesale
	Leases		Accounts		Receivables		Total
Three Months Ended April 28, 2024
Allowance:
Beginning of period balance	$	177	$	16	$	2	$	195
Provision		64		23				87
Write-offs		(36)		(23)				(59)
Recoveries		4		5				9
Translation adjustments		(2)						(2)
End of period balance	$	207	$	21	$	2	$	230
Six Months Ended April 28, 2024
Allowance:
Beginning of period balance	$	172	$	21	$	4	$	197
Provision		99		21				120
Write-offs		(68)		(34)				(102)
Recoveries		5		13				18
Translation adjustments		(1)				(2)		(3)
End of period balance	$	207	$	21	$	2	$	230
Financing receivables:
End of period balance	$	40,293	$	3,887	$	8,590	$	52,770

	Retail Notes		Revolving
	& Financing		Charge		Wholesale
	Leases		Accounts		Receivables		Total
Three Months Ended April 30, 2023
Allowance:
Beginning of period balance	$	140	$	16	$	4	$	160
Provision		30		8				38
Write-offs		(19)		(11)				(30)
Recoveries		6		6				12
End of period balance	$	157	$	19	$	4	$	180
Six Months Ended April 30, 2023
Allowance:
Beginning of period balance	$	299	$	22	$	4	$	325
Provision		45		4				49
Provision transferred to held for sale		(142)						(142)
Provision (credit) subtotal		(97)		4				(93)
Write-offs		(37)		(18)				(55)
Recoveries		10		11				21
Translation adjustments		(18)						(18)
End of period balance	$	157	$	19	$	4	$	180
Financing receivables:
End of period balance	$	36,159	$	3,783	$	4,851	$	44,793

The allowance for credit losses increased in the second quarter and first six months of 2024, primarily due to higher expected losses on the agricultural receivable portfolio as a result of elevated delinquencies and a decline in market conditions.

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). Excluding the portfolio in Russia, the allowance for credit losses increased in the second quarter and the first six months of 2023 primarily due to higher portfolio balances and higher expected losses on turf and construction financing receivables.

17

Write-offs by year of origination were as follows:

	Six Months Ended April 28, 2024
	2024		2023		2022		2021		2020		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf	$	1	$	9	$	10	$	5	$	6	$	2	$	30	$	63
Construction and forestry				12		13		5		3		2		4		39
Total retail customer receivables	$	1	$	21	$	23	$	10	$	9	$	4	$	34	$	102

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 second quarter and the six months ended April 28, 2024 were $36 and $53, respectively, of which $48 were current, $3 were 30-59 days past due, and $2 were non-performing. These modifications represented 0.07 and 0.10 percent of our financing receivable portfolio for the same periods, respectively.

Defaults and subsequent write-offs of loans modified in the prior twelve months were not significant during the second quarter and the first six months of 2024. In addition, at April 28, 2024, commitments to provide additional financing to these customers were not significant.

(9)  Securitization of Financing Receivables

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

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

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

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

As 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:

	April 28		October 29		April 30
	2024		2023		2023
Financing receivables securitized (retail notes)	$	7,289	$	7,357	$	5,674
Allowance for credit losses		(27)		(22)		(15)
Other assets (primarily restricted cash)		164		152		115
Total restricted securitized assets	$	7,426	$	7,487	$	5,774
Short-term securitization borrowings	$	6,976	$	6,995	$	5,379
Accrued interest on borrowings		12		13		8
Total liabilities related to restricted securitized assets	$	6,988	$	7,008	$	5,387

18

(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:

	April 28		October 29		April 30
	2024		2023		2023
Raw materials and supplies	$	3,851	$	4,080	$	4,647
Work-in-process		1,127		1,010		1,262
Finished goods and parts		5,979		5,435		6,435
Total FIFO value		10,957		10,525		12,344
Excess of FIFO over LIFO		2,514		2,365		2,631
Inventories	$	8,443	$	8,160	$	9,713

(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 &		Small Ag		Construction
	Precision Ag		& Turf		& Forestry		Total
Goodwill at October 30, 2022	$	646	$	318	$	2,723	$	3,687
Acquisition		41						41
Translation adjustments		18		8		209		235
Goodwill at April 30, 2023	$	705	$	326	$	2,932	$	3,963
Goodwill at October 29, 2023	$	702	$	363	$	2,835	$	3,900
Translation adjustments		1		1		34		36
Goodwill at April 28, 2024	$	703	$	364	$	2,869	$	3,936

The components of other intangible assets were as follows:

	April 28		October 29		April 30
	2024		2023		2023
Customer lists and relationships	$	505	$	501	$	525
Technology, patents, trademarks, and other		1,404		1,387		1,397
Total at cost		1,909		1,888		1,922
Less accumulated amortization:
Customer lists and relationships		213		195		193
Technology, patents, trademarks, and other		632		560		507
Total accumulated amortization		845		755		700
Other intangible assets – net	$	1,064	$	1,133	$	1,222

The amortization of other intangible assets in the second quarter and the first six months of 2024 was $41 and $83, and for the second quarter and the first six months of 2023 was $45 and $84, respectively. The estimated amortization expense for the next five years is as follows: remainder of 2024 – $89, 2025 – $144, 2026 – $120, 2027 – $119, 2028 – $86, and 2029 – $73.

(12)  Short-Term Borrowings

Short-term borrowings were as follows:

	April 28		October 29		April 30
	2024		2023		2023
Commercial paper	$	7,675	$	9,100	$	9,184
Notes payable to banks		434		483		284
Finance lease obligations due within one year		30		25		23
Long-term borrowings due within one year		9,560		8,331		7,618
Short-term borrowings	$	17,699	$	17,939	$	17,109

19

(13)  Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

	April 28		October 29		April 30
	2024		2023		2023
Accounts payable:
Trade payables	$	2,968	$	3,467	$	3,680
Dividends payable		409		388		371
Operating lease liabilities		270		281		294
Deposits withheld from dealers and merchants		159		163		157
Payables to unconsolidated affiliates		8		6		9
Other		184		153		131
Accrued expenses:
Employee benefits		1,550		2,152		1,475
Product warranties		1,566		1,610		1,562
Accrued taxes		1,453		1,558		1,691
Derivative liabilities		1,005		1,130		758
Dealer sales discounts		546		1,243		605
Extended warranty premium		1,110		1,021		949
Unearned revenue (contractual liability)		801		676		673
Unearned operating lease revenue		483		451		441
Accrued interest		513		434		354
Parts return liability		404		392		376
Other		1,180		1,005		1,190
Accounts payable and accrued expenses	$	14,609	$	16,130	$	14,716

Amounts are presented net of eliminations, which primarily consist of dealer sales incentives with a right of set-off against trade receivables of $2,650 at April 28, 2024, $2,228 at October 29, 2023, and $1,979 at April 30, 2023. Other eliminations were made for accrued taxes and other accrued expenses.

(14)  Long-Term Borrowings

Long-term borrowings consisted of:

	April 28		October 29		April 30
	2024		2023		2023
Underwritten term debt
U.S. dollar notes and debentures:
2.75% notes due 2025			$	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:
1.85% notes due 2028 (€600 principal)		644		634		662
2.20% notes due 2032 (€600 principal)		644		634		662
1.65% notes due 2039 (€650 principal)		697		687		717
Serial issuances
Medium-term notes		32,859		29,638		26,734
Other notes and finance lease obligations		1,708		1,769		1,707
Less debt issuance costs and debt discounts		(140)		(135)		(121)
Long-term borrowings	$	40,962	$	38,477	$	35,611

Medium-term notes due through 2034 are primarily offered by prospectus and issued at fixed and variable rates. The principal balances of the medium-term notes were $34,002, $30,902, and $27,428, at April 28, 2024, October 29, 2023, and April 30, 2023, respectively. All outstanding notes and debentures are senior unsecured borrowings and rank equally with each other.

20

(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				Six Months Ended
	April 28		April 30		April 28		April 30
	2024		2023		2024		2023
Sales-type and direct finance lease revenues	$	45	$	37	$	91	$	79
Operating lease revenues		343		321		682		642
Variable lease revenues		4		5		9		11
Total lease revenues	$	392	$	363	$	782	$	732

(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				Six Months Ended
	April 28		April 30		April 28		April 30
	2024		2023		2024		2023
Beginning of period balance	$	1,589	$	1,444	$	1,610	$	1,427
Warranty claims paid		(324)		(274)		(634)		(536)
New product warranty accruals		310		386		591		642
Foreign exchange		(9)		6		(1)		29
End of period balance	$	1,566	$	1,562	$	1,566	$	1,562

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 April 28, 2024, the notional value of these guarantees was $146. We may repossess the equipment collateralizing the receivables. At April 28, 2024, the accrued losses under these agreements were not material.

We also had other miscellaneous contingent liabilities and guarantees totaling approximately $140 at April 28, 2024. The accrued liability for these contingencies was $20 at April 28, 2024.

At April 28, 2024, we had commitments of approximately $560 for the construction and acquisition of property and equipment. Also, at April 28, 2024, we had restricted assets of $225, classified as “Other assets.”

We are subject to various unresolved legal actions. The accrued losses on these matters were not material at April 28, 2024. 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.

(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.

	April 28, 2024				October 29, 2023				April 30, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Financing receivables – net	$	45,278	$	44,741	$	43,673	$	42,777	$	38,954	$	38,337
Financing receivables securitized – net		7,262		7,063		7,335		7,056		5,659		5,494
Short-term securitization borrowings		6,976		6,935		6,995		6,921		5,379		5,271
Long-term borrowings due within one year		9,560		9,434		8,331		8,156		7,618		7,461
Long-term borrowings		40,882		40,059		38,428		36,873		35,571		34,802

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.

21

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.

	April 28		October 29		April 30
	2024		2023		2023
Level 1
Marketable securities:
International equity securities	$	3	$	3	$	2
International mutual funds securities				101		11
U.S. equity fund		101		86		92
U.S. fixed income fund		24		32		97
U.S. government debt securities		263		78		64
Total Level 1 marketable securities		391		300		266
Level 2
Marketable securities:
Corporate debt securities		213		244		213
International debt securities		148		1		1
Mortgage-backed securities		152		185		168
Municipal debt securities		67		75		70
U.S. government debt securities		123		141		138
Total Level 2 marketable securities		703		646		590
Other assets - Derivatives		191		292		367
Accounts payable and accrued expenses - Derivatives		1,005		1,130		758
Level 3
Accounts payable and accrued expenses - Deferred consideration		164		186		214

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

The contractual maturities of debt securities at April 28, 2024 follow:

	Amortized		Fair
	Cost		Value
Due in one year or less	$	17	$	17
Due after one through five years		293		254
Due after five through 10 years		421		386
Due after 10 years		192		157
Mortgage-backed securities		186		152
Debt securities	$	1,109	$	966

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

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

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

22

(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.”

	April 28, 2024						October 29, 2023						April 30, 2023
			Fair Value						Fair Value						Fair Value
	Notional		Assets		Liabilities		Notional		Assets		Liabilities		Notional		Assets		Liabilities
Cash flow hedges:
Interest rate contracts	$	2,700	$	34	$	1	$	1,500	$	45			$	2,250	$	55	$	6
Fair value hedges:
Interest rate contracts		13,664		8		884		12,691			$	970		10,943		49		605
Not designated as hedging instruments:
Interest rate contracts		12,869		112		71		13,853		169		98		11,956		171		91
Foreign exchange contracts		7,582		36		38		8,117		75		54		9,163		91		42
Cross-currency interest rate contracts		211		1		11		176		3		8		163		1		14

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
April 28, 2024
Short-term borrowings	$	286	$	(7)	$	2,565	$	16
Long-term borrowings		12,434		(879)		7,616		(264)
October 29, 2023
Short-term borrowings					$	1,814	$	15
Long-term borrowings	$	11,660	$	(976)		7,144		(288)
April 30, 2023
Short-term borrowings					$	1,213	$	14
Long-term borrowings	$	10,334	$	(562)		5,657		(132)

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				Six Months Ended
	April 28		April 30		April 28		April 30
	2024		2023		2024		2023
Fair Value Hedges
Interest rate contracts - Interest expense	$	(448)	$	(10)	$	(104)	$	229
Cash Flow Hedges
Recognized in OCI:
Interest rate contracts - OCI (pretax)	$	26	$	(4)	$	18	$	(5)
Reclassified from OCI:
Interest rate contracts - Interest expense		16		19		27		34
Not Designated as Hedges
Interest rate contracts - Net sales			$	1			$	(6)
Interest rate contracts - Interest expense	$	7		5	$	(2)		(3)
Foreign exchange contracts - Net sales		(2)		(2)		3		(1)
Foreign exchange contracts - Cost of sales		9		59		(21)		64
Foreign exchange contracts - Other operating expenses		46		127		(135)		(15)
Total not designated	$	60	$	190	$	(155)	$	39

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

23

features that were in a net liability position at April 28, 2024, October 29, 2023, and April 30, 2023, was $967, $1,076, and $716, respectively. In accordance with the limits established in these agreements, we posted $562, $659, and $308 of cash collateral at April 28, 2024, October 29, 2023, and April 30, 2023, respectively. In addition, we paid $8 of collateral that was outstanding at April 28, 2024, October 29, 2023, and April 30, 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 collateral follows:

	Gross Amounts		Netting
	Recognized		Arrangements		Collateral		Net Amount
April 28, 2024
Assets	$	191	$	(93)			$	98
Liabilities		1,005		(93)	$	(562)		350
October 29, 2023
Assets	$	292	$	(152)			$	140
Liabilities		1,130		(152)	$	(659)		319
April 30, 2023
Assets	$	367	$	(168)	$	(29)	$	170
Liabilities		758		(168)		(308)		282

(19)  Share-Based Awards

We are authorized to grant shares for stock options and restricted stock units. The outstanding shares authorized were 15.0 million at April 28, 2024. 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 April 28, 2024, options for 1.8 million shares were outstanding with a weighted-average exercise price of $220.99 per share.

During the six months ended April 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	367	$	376.98
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.

(20)  Disposition

In March 2023, we sold our financial services business in Russia to Insight Investment Group. The total proceeds, net of restricted cash sold, were $36. The operations were included in the financial services operating segment through the date of sale. At the disposal date, the total assets were $31, consisting primarily of financing receivables, the total liabilities were $5, and the cumulative translation loss was $10. We did not incur additional gains or losses upon disposition.

(21)  Special Item

In the second quarter of 2023, we corrected the accounting treatment for financing incentives offered to John Deere dealers, which impacted the timing of expense recognition and the presentation of incentive costs in the consolidated financial statements. The cumulative effect of this correction, $173 pretax ($135 after-tax), was recorded in the second quarter of 2023 in “Selling, administrative and general expenses” by financial services. Prior period results were not restated, as the adjustment was considered immaterial to our financial statements.

(22)  Subsequent Events

In May 2024, we entered into a retail note securitization transaction, resulting in $319 of secured borrowings.

On May 29, 2024, a quarterly dividend of $1.47 per share was declared at the Board of Directors meeting, payable on August 8, 2024, to stockholders of record on June 28, 2024.

24

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

RESULTS OF OPERATIONS

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

Overview

Organization

Deere & Company is a global leader in the production of agricultural, turf, construction, and forestry equipment and solutions. John Deere Financial provides financing for John Deere equipment, parts, services, and other input costs customers need to run their operations. Our operations are managed through the production and precision agriculture (PPA), small agriculture and turf (SAT), construction and forestry (CF), and financial services operating segments. References to “equipment operations” include PPA, SAT, and CF, while references to “agriculture and turf” include both PPA and SAT.

Smart Industrial Operating Model and Leap Ambitions

We announced the Smart Industrial Operating Model in 2020. This operating model is based on three focus areas:

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

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

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

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

Trends and Economic Conditions

Industry Sales Outlook for Fiscal Year 2024

Agriculture and Turf

Construction and Forestry

Company Trends

Customers seek to improve profitability, productivity, and sustainability through technology. Integration of technology into equipment is a persistent market trend. Our Smart Industrial Operating Model and Leap Ambitions are intended to capitalize on this market trend. These technologies are incorporated into products within each of our operating segments. We expect this trend to persist for the foreseeable future. Our progress is demonstrated, in part, by the growing use of the John Deere Operations Center (our digital operations management system) engaging more agricultural acres globally. Engaged acres give us a foundational understanding of customer utilization of John Deere technology. The investments in these technologies and establishing a Solutions as a Service business model may increase our operating costs and decrease operating margins during the transition period.

Company Outlook for 2024

Production volumes are expected to continue to decline during the remainder of 2024 due to demand shifts amid challenges in the global agricultural and turf sectors coupled with proactive production and inventory management while the construction industry remains relatively stable.

25

Agriculture and Turf Outlook for 2024

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

● Agricultural fundamentals across all our major markets are expected to moderate in 2024 due to rising global stocks, lower commodity prices, elevated interest rates, and weather volatility. In the U.S. and Canada, this is partially offset by resilient farm balance sheets.

● The U.S. equipment fleet age is elevated for both tractors and combines. However, increases in used inventory levels are impacting purchasing decisions.

● In Europe, the dairy and livestock sector is expected to improve due to stronger pricing amid lower feed costs while spring weather conditions have caused uncertainty about winter seeded crop yields. In addition, persistent, elevated input costs have decreased demand in Europe.

● Demand in Brazil is expected to be down due to strong global yields driving down commodity prices, adverse weather conditions, and high interest rates.

● Industry sales in Asia are forecasted to be down moderately due to commodity price changes, inventory reductions, and weather impacts.

● Due to macro-economic trends in U.S. consumer markets including lower levels of home sales, persistently higher interest rates, and inventory reductions, sales of compact utility tractors and riding lawn equipment continue to be lower.

Construction and Forestry Outlook for 2024

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

● Benefits from increasing U.S. infrastructure spending, elevated manufacturing investment levels, and improving single family housing starts are expected to partially offset declines in commercial real estate construction and softening rental demand.

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

Financial Services Outlook for 2024

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

Additional Trends

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

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

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

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

Rising interest rates have historically impacted our borrowings sooner than the benefit is realized from receivable and lease portfolios. As a result, our financial services operations experienced $35 (after-tax) less favorable financing spreads in 2024 compared to 2023. We expect to continue experiencing spread compression in 2024, but at a moderating pace relative to spread compression experienced in 2023.

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

26

Other Items of Concern and Uncertainties – Other items that could impact our results are:

● global and regional political conditions, including the ongoing war between Russia and Ukraine and the conflict in the Middle East,

● economic, tax, and trade policies,

● new or retaliatory tariffs,

● capital market disruptions,

● foreign currency and capital control policies,

● regulations and legislation regarding right to repair or right to modify,

● weather conditions,

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

● our ability to strengthen our digital capabilities, automation, autonomy, and alternative power technologies,

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

● delays or disruptions in our supply chain,

● significant fluctuations in foreign currency exchange rates,

● volatility in the prices of many commodities, and

● slower economic growth or recession.

Consolidated Results – 2024 Compared with 2023

	Three Months Ended					Six Months Ended
Deere & Company	April 28		April 30		%	April 28		April 30		%
(In millions of dollars, except per share amounts)	2024		2023		Change	2024		2023		Change
Net sales and revenues	$	15,235	$	17,387	-12	$	27,420	$	30,038	-9
Net income attributable to Deere & Company		2,370		2,860	-17		4,121		4,819	-14
Diluted earnings per share		8.53		9.65			14.74		16.18

Net sales and revenues decreased for both the quarter and year-to-date periods primarily due to lower sales volumes. Net income and diluted EPS decreased driven by lower sales. The discussion of net sales and operating profit is included in the Business Segment Results below.

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

	Three Months Ended					Six Months Ended
	April 28		April 30		%	April 28		April 30		%
Deere & Company	2024		2023		Change	2024		2023		Change
Cost of sales to net sales		67.3%		66.7%			67.9%		67.9%
(+) Price realization				Favorable					Favorable
(+) Inbound freight				Favorable					Favorable
(–) Overhead spending				Unfavorable					Unfavorable
Other income	$	238	$	229	+4	$	577	$	484	+19
Higher for the first six months due to investment income earned on international mutual funds securities.
Research and development expenses		565		547	+3		1,098		1,043	+5
Higher due to continued focus on developing and incorporating technology solutions.
Selling, administrative and general expenses		1,265		1,330	-5		2,330		2,283	+2
Lower in the second quarter as the prior period was impacted by the cumulative correction of the accounting treatment for financing incentives offered to John Deere dealers of $173 pretax ($135 after-tax). Excluding the impact of this item, selling, administrative and general expenses have increased for both periods mostly due to a higher provision for credit losses and higher employee pay driven by inflationary conditions and profit sharing incentives.
Interest expense		836		569	+47		1,638		1,049	+56
Increased for both periods primarily due to higher average borrowing rates and higher average borrowings.
Other operating expenses		295		363	-19		664		660	+1
Lower in the second quarter due to higher pension benefits (see Note 6) and lower foreign exchange losses.
Provision for income taxes		751		991	-24		1,220		1,528	-20
Decreased for both periods as a result of lower pretax income.

27

Business Segment Results – 2024 Compared with 2023

	Three Months Ended					Six Months Ended
	April 28		April 30		%	April 28		April 30		%
Production and Precision Agriculture	2024		2023		Change	2024		2023		Change
Net sales	$	6,581	$	7,822	-16	$	11,430	$	13,021	-12
Operating profit		1,650		2,170	-24		2,695		3,378	-20
Operating margin		25.1%		27.7%			23.6%		25.9%
Price realization					+2					+3
Currency translation impact on Net sales

Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes (primarily in Brazil, the U.S., and Europe), driven by softened demand. This was partially offset by price realization in the U.S. and Canada. Operating profit decreased primarily due to lower shipment volumes and higher production costs, partially offset by price realization.

Production & Precision Agriculture Operating Profit

Second Quarter 2024 Compared to Second Quarter 2023

Sales for the first six months decreased as a result of lower shipment volumes (primarily in Brazil, the U.S., and Europe), partially offset by price realization in the U.S. and Canada. Operating profit for the first six months decreased due to lower sales volume, higher selling, administrative, and general expenses and research and development expenses, partially offset by price realization.

Production & Precision Agriculture Operating Profit

First Six Months 2024 Compared to First Six Months 2023

28

	Three Months Ended					Six Months Ended
	April 28		April 30		%	April 28		April 30		%
Small Agriculture and Turf	2024		2023		Change	2024		2023		Change
Net sales	$	3,185	$	4,145	-23	$	5,610	$	7,146	-21
Operating profit		571		849	-33		897		1,296	-31
Operating margin		17.9%		20.5%			16.0%		18.1%
Price realization					+2					+2
Currency translation impact on Net sales

Small agriculture and turf sales decreased for the quarter due to lower shipment volumes (primarily in the U.S., Europe, and Mexico), partially offset by price realization in the U.S. Operating profit decreased due to lower shipment volumes, partially offset by price realization.

Small Agriculture & Turf Operating Profit

Second Quarter 2024 Compared to Second Quarter 2023

Sales for the first six months decreased as a result of lower shipment volumes (primarily in the U.S., Europe, and Mexico), partially offset by price realization. Operating profit for the first six months decreased primarily as a result of lower sales volumes, higher selling, administrative, and general expenses and research and development expenses, and higher warranty expenses. These items were partially offset by price realization, favorable mix, and lower production costs.

Small Agriculture & Turf Operating Profit

First Six Months 2024 Compared to First Six Months 2023

29

	Three Months Ended					Six Months Ended
	April 28		April 30		%	April 28		April 30		%
Construction and Forestry	2024		2023		Change	2024		2023		Change
Net sales	$	3,844	$	4,112	-7	$	7,057	$	7,314	-4
Operating profit		668		838	-20		1,234		1,463	-16
Operating margin		17.4%		20.4%			17.5%		20.0%
Price realization										+1
Currency translation impact on Net sales

Construction and forestry sales decreased for the quarter due to lower worldwide shipment volumes. Operating profit decreased due to lower sales volumes and increased selling, administrative, and general expenses and research and development expenses.

Construction & Forestry Operating Profit

Second Quarter 2024 Compared to Second Quarter 2023

The segment’s six-month sales decreased due to lower shipment volumes in all major regions outside the U.S., partially offset by price realization and the favorable impact of currency translation. The first six-month’s operating profit decreased due to lower sales volumes, higher selling, administrative, and general expenses and research and development expenses, increased production costs, and the unfavorable impact of currency translation. These factors were partially offset by price realization.

Construction & Forestry Operating Profit

First Six Months 2024 Compared to First Six Months 2023

30

	Three Months Ended					Six Months Ended
	April 28		April 30		%	April 28		April 30		%
Financial Services	2024		2023		Change	2024		2023		Change
Revenue (including intercompany)	$	1,588	$	1,297	+22	$	3,140	$	2,542	+24
Interest expense		780		540	+44		1,542		983	+57
Net income		162		28	+479		370		212	+75

The average balance of receivables and leases financed was 16 percent higher in the second quarter of 2024 and 18 percent higher in the first six months of 2024 compared with the same periods last year. Revenue also increased due to higher average financing rates in both periods. Interest expense increased compared to both prior periods as a result of higher average borrowings and higher average borrowing rates. Financial services net income in both periods increased due to income earned on higher average portfolio balances, partially offset by a higher provision for credit losses and less favorable financing spreads. The results of both periods were also affected by a correction of the accounting treatment for financing incentives offered to John Deere dealers. The cumulative effect of this correction, $173 pretax ($135 after-tax), was recorded in the second quarter of 2023.

Critical Accounting Estimates

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

Capital Resources and Liquidity – 2024 Compared with 2023

We have access to global markets at a reasonable cost. Sources of liquidity include:

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

● funds from operations,

● the issuance of commercial paper and term debt,

● the securitization of retail notes, and

● bank lines of credit.

We closely monitor our cash requirements. Based on the available sources of liquidity, we expect to meet our funding needs in the short term (next 12 months) and long term (beyond 12 months). We are forecasting lower operating cash flows in 2024 compared with 2023.

We operate in multiple industries, which have unique funding requirements. The equipment operations are capital intensive. Historically, these operations have been subject to seasonal variations in financing requirements for inventories and receivables from dealers.

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

Key metrics are provided in the following table:

	April 28		October 29		April 30
	2024		2023		2023
Cash, cash equivalents, and marketable securities	$	6,647	$	8,404	$	6,123
Trade accounts and notes receivable – net		8,880		7,739		9,971
Ratio to prior 12 month’s net sales		17%		14%		18%
Inventories		8,443		8,160		9,713
Ratio to prior 12 month’s cost of sales		24%		22%		25%
Unused credit lines		2,787		841		785
Financial Services:
Ratio of interest-bearing debt to stockholder’s equity		8.7 to 1		8.4 to 1		8.0 to 1

In the first half of 2024, we invested $177 in U.S. dollar denominated bonds issued by the central bank of Argentina. The bonds are recorded in “Marketable securities,” classified as “International debt securities.” These bonds can be held until maturity or sold in a secondary market outside of Argentina to settle intercompany debt (see Note 17).

The increase in unused credit lines in 2024 compared to both prior periods relates to a decrease in commercial paper outstanding.

31

We are forecasting lower operating cash flows in 2024 compared to 2023 driven by a decrease in net income adjusted for non-cash provisions and a reduction in accrued expenses.

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

Cash Flows

	Six Months Ended
	April 28, 2024		April 30, 2023
Net cash provided by (used for) operating activities	$	944	$	(147)
Net cash used for investing activities		(1,670)		(1,494)
Net cash provided by (used for) financing activities		(1,162)		2,017
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(5)		70
Net increase (decrease) in cash, cash equivalents, and restricted cash	$	(1,893)	$	446

Cash inflows from consolidated operating activities in the first six months of 2024 were $944. This resulted mainly from net income adjusted for non-cash provisions, partially offset by a working capital change. Included in the working capital change was a cash outflow of $1,300 from accounts payable and accrued expenses due to a higher profit sharing payout in the first quarter of 2024 based on strong fiscal year 2023 results, lower accrued expenses related to dealer sales discounts, and less trade payables consistent with our forecasted decrease in production. Cash outflows from investing activities were $1,670 in the first six months of this year. The primary drivers were purchases of property and equipment and growth in the retail customer receivable portfolio and equipment on operating leases. Cash outflows from financing activities were $1,162 in the first six months of 2024, as cash returned to shareholders was partially offset by higher external borrowings. Cash returned to shareholders was $3,218 in the first six months of 2024. Cash, cash equivalents, and restricted cash decreased $1,893 during the first six months of 2024.

Key Metrics and Balance Sheet Changes

Trade Accounts and Notes Receivable. Trade accounts and notes receivable arise from sales of goods to customers. Trade receivables increased $1,141 during the first six months of 2024, primarily due to a seasonal increase. These receivables decreased $1,091, compared to a year ago, due to lower sales volumes. The percentage of total worldwide trade receivables outstanding for periods exceeding 12 months was 2 percent at April 28, 2024, 1 percent at October 29, 2023, and 1 percent at April 30, 2023.

Financing Receivables and Equipment on Operating Leases. Financing receivables and equipment on operating leases consist of retail notes originated in connection with financing of new and used equipment, operating leases, revolving charge accounts, sales-type and direct financing leases, and wholesale notes. Financing receivables and equipment on operating leases increased $1,580 during the first six months of 2024 and increased $8,368 in the past 12 months due to higher dealer inventory levels and elevated sales of new and used retail inventory. Total acquisition volumes of financing receivables and equipment on operating leases were 16 percent higher in the first six months of 2024, compared with the same period last year, as volumes of wholesale notes, retail notes, financing leases, and operating leases were higher, while revolving charge accounts were flat compared to April 30, 2023.

Inventories. Inventories increased by $283 during the first six months of 2024, primarily due to a seasonal increase. Inventories decreased by $1,270 compared to a year ago due to lower forecasted shipment volumes. A majority of these inventories are valued on the last-in, first out (LIFO) method.

Property and Equipment. Property and equipment cash expenditures in the first six months of 2024 were $719 compared with $584 in the same period last year. Capital expenditures in 2024 are estimated to be approximately $1,900.

Accounts Payable and Accrued Expenses. Accounts payable and accrued expenses decreased by $1,521 in the first six months of 2024, primarily due to a decrease in accrued expenses associated with dealer sales discounts and employee benefits, and decreased accounts payable associated with trade payables. Accounts payable and accrued expenses decreased $107 compared to a year ago due to a decrease in accounts payable associated with trade payables, partially offset by an increase in accrued expenses associated with derivative liabilities, extended warranty liabilities, and accrued interest.

Borrowings. Total external borrowings increased by $2,226 in the first six months of 2024 and increased $7,538 compared to a year ago, generally corresponding with the level of the receivable and lease portfolios, as well as other working capital requirements.

32

John Deere Capital Corporation (Capital Corporation), a U.S. financial services subsidiary, has a revolving warehouse facility to utilize bank conduit facilities to securitize retail notes (see Note 9). The facility was renewed in November 2023 with an expiration in November 2024 and with an increase in the total capacity or “financing limit” from $1,500 to $2,000. At April 28, 2024, $1,434 of securitization borrowings were outstanding under the facility. At the end of the contractual revolving period, unless the banks and Capital Corporation agree to renew, Capital Corporation would liquidate the secured borrowings over time as payments on the retail notes are collected.

In the first six months of 2024, the financial services operations issued $1,880 and retired $1,900 of retail note securitization borrowings, which are presented in “Net proceeds in short-term borrowings (original maturities three months or less).”

Lines of Credit. We also have access to bank lines of credit with various banks throughout the world. Worldwide lines of credit totaled $10,934 at April 28, 2024, $2,787 of which were unused. For the purpose of computing unused credit lines, commercial paper and short-term bank borrowings were considered to constitute utilization. Included in the total credit lines at April 28, 2024 was a 364-day credit facility agreement of $5,000 expiring in the second quarter of 2025. In addition, total credit lines included long-term credit facility agreements of $2,750 expiring in the second quarter of 2028 and $2,750 expiring in the second quarter of 2029. These credit agreements require Capital Corporation and other parts of our business to maintain certain performance metrics and liquidity targets. All requirements in the credit agreements have been met during the periods included in the financial statements.

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

	Senior
	Long-Term	Short-Term	Outlook
Fitch Ratings	A+	F1	Stable
Moody’s Investors Service, Inc.	A1	Prime-1	Stable
Standard & Poor’s	A	A-1	Stable

FORWARD-LOOKING STATEMENTS

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

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

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

● political, economic, and social instability of the geographies in which we operate, including the ongoing war between Russia and Ukraine and the conflict in the Middle East;

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

● worldwide demand for food and different forms of renewable energy;

● the ability to execute business strategies, including our Smart Industrial Operating Model, Leap Ambitions, and mergers and acquisitions;

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

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

● the ability to integrate new technology, including automation and machine learning, and deliver precision technology and solutions to customers;

33

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

● the ability to adapt in highly competitive markets;

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

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

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

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

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

● delays or disruptions in our supply chain;

● the failure of our equipment to perform as expected, which could result in warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations;

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

● security breaches, cybersecurity attacks, technology failures, and other disruptions to John Deere information technology infrastructure and products;

● loss of or challenges to intellectual property rights;

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

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

● events that damage our reputation or brand;

● the agricultural business cycle, which can be unpredictable and is affected by factors such as world grain stocks, available farm acres, acreage planted, soil conditions, harvest yields, prices for commodities and livestock, input costs, and availability of transport for crops; and

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

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

SUPPLEMENTAL CONSOLIDATING DATA

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

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

34

DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA
STATEMENTS OF INCOME
For the Three Months Ended April 28, 2024 and April 30, 2023
Unaudited
	EQUIPMENT				FINANCIAL
	OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
	2024		2023		2024		2023		2024		2023		2024		2023
Net Sales and Revenues
Net sales	$	13,610	$	16,079									$	13,610	$	16,079
Finance and interest income		129		121	$	1,496	$	1,206	$	(238)	$	(248)		1,387		1,079	1 ​
Other income		198		185		92		91		(52)		(47)		238		229	2, 3​
Total		13,937		16,385		1,588		1,297		(290)		(295)		15,235		17,387
Costs and Expenses
Cost of sales		9,164		10,737						(7)		(7)		9,157		10,730	4 ​
Research and development expenses		565		547										565		547
Selling, administrative and general expenses		1,007		935		260		397		(2)		(2)		1,265		1,330	4 ​
Interest expense		114		103		780		540		(58)		(74)		836		569	1 ​
Interest compensation to Financial Services		180		174						(180)		(174)					1 ​
Other operating expenses		1		85		337		316		(43)		(38)		295		363	3, 5​
Total		11,031		12,581		1,377		1,253		(290)		(295)		12,118		13,539
Income before Income Taxes		2,906		3,804		211		44						3,117		3,848
Provision for income taxes		700		974		51		17						751		991
Income after Income Taxes		2,206		2,830		160		27						2,366		2,857
Equity in income of unconsolidated affiliates				1		2		1						2		2
Net Income		2,206		2,831		162		28						2,368		2,859
Less: Net loss attributable to noncontrolling interests		(2)		(1)										(2)		(1)
Net Income Attributable to Deere & Company	$	2,208	$	2,832	$	162	$	28					$	2,370	$	2,860

¹ Elimination of intercompany interest income and expense.

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

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

⁴ Elimination of intercompany service fees.

⁵ Elimination of financial services’ lease depreciation expense related to inventory transferred to equipment on operating leases.

35

DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENTS OF INCOME
For the Six Months Ended April 28, 2024 and April 30, 2023
Unaudited
	EQUIPMENT				FINANCIAL
	OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
	2024		2023		2024		2023		2024		2023		2024		2023
Net Sales and Revenues
Net sales	$	24,097	$	27,481									$	24,097	$	27,481
Finance and interest income		285		234	$	2,929	$	2,274	$	(468)	$	(435)		2,746		2,073	1 ​
Other income		487		417		211		268		(121)		(201)		577		484	2, 3​
Total		24,869		28,132		3,140		2,542		(589)		(636)		27,420		30,038
Costs and Expenses
Cost of sales		16,371		18,675						(14)		(12)		16,357		18,663	4 ​
Research and development expenses		1,098		1,043										1,098		1,043
Selling, administrative and general expenses		1,882		1,719		453		569		(5)		(5)		2,330		2,283	4 ​
Interest expense		223		204		1,542		983		(127)		(138)		1,638		1,049	1 ​
Interest compensation to Financial Services		341		297						(341)		(297)					1 ​
Other operating expenses		91		137		675		707		(102)		(184)		664		660	3, 5​
Total		20,006		22,075		2,670		2,259		(589)		(636)		22,087		23,698
Income before Income Taxes		4,863		6,057		470		283						5,333		6,340
Provision for income taxes		1,117		1,455		103		73						1,220		1,528
Income after Income Taxes		3,746		4,602		367		210						4,113		4,812
Equity in income of unconsolidated affiliates				1		3		2						3		3
Net Income		3,746		4,603		370		212						4,116		4,815
Less: Net loss attributable to noncontrolling interests		(5)		(4)										(5)		(4)
Net Income Attributable to Deere & Company	$	3,751	$	4,607	$	370	$	212					$	4,121	$	4,819

¹ Elimination of intercompany interest income and expense.

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

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

⁴ Elimination of intercompany service fees.

⁵ Elimination of financial services’ lease depreciation expense related to inventory transferred to equipment on operating leases.

36

DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEETS
Unaudited
	EQUIPMENT						FINANCIAL
	OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
	Apr 28		Oct 29		Apr 30		Apr 28		Oct 29		Apr 30		Apr 28		Oct 29		Apr 30		Apr 28		Oct 29		Apr 30
	2024		2023		2023		2024		2023		2023		2024		2023		2023		2024		2023		2023
Assets
Cash and cash equivalents	$	3,800	$	5,720	$	3,587	$	1,753	$	1,738	$	1,680							$	5,553	$	7,458	$	5,267
Marketable securities		148		104		14		946		842		842								1,094		946		856
Receivables from Financial Services		4,480		4,516		5,899							$	(4,480)	$	(4,516)	$	(5,899)							6 ​
Trade accounts and notes receivable – net		1,320		1,320		1,562		10,263		8,687		10,422		(2,703)		(2,268)		(2,013)		8,880		7,739		9,971	7 ​
Financing receivables – net		80		64		54		45,198		43,609		38,900								45,278		43,673		38,954
Financing receivables securitized – net						1		7,262		7,335		5,658								7,262		7,335		5,659
Other receivables		1,822		1,813		2,201		760		869		481		(47)		(59)		(89)		2,535		2,623		2,593	7 ​
Equipment on operating leases – net								6,965		6,917		6,524								6,965		6,917		6,524
Inventories		8,443		8,160		9,713														8,443		8,160		9,713
Property and equipment – net		6,999		6,843		6,254		35		36		34								7,034		6,879		6,288
Goodwill		3,936		3,900		3,963														3,936		3,900		3,963
Other intangible assets – net		1,064		1,133		1,222														1,064		1,133		1,222
Retirement benefits		2,980		2,936		3,450		77		72		69		(1)		(1)				3,056		3,007		3,519	8 ​
Deferred income taxes		2,210		2,133		1,355		71		68		59		(345)		(387)		(106)		1,936		1,814		1,308	9 ​
Other assets		2,105		1,948		1,961		504		559		564		(17)		(4)		(15)		2,592		2,503		2,510
Total Assets	$	39,387	$	40,590	$	41,236	$	73,834	$	70,732	$	65,233	$	(7,593)	$	(7,235)	$	(8,122)	$	105,628	$	104,087	$	98,347
Liabilities and Stockholders’ Equity
Liabilities
Short-term borrowings	$	1,055	$	1,230	$	1,755	$	16,644	$	16,709	$	15,354							$	17,699	$	17,939	$	17,109
Short-term securitization borrowings								6,976		6,995		5,379								6,976		6,995		5,379
Payables to Equipment Operations								4,480		4,516		5,899	$	(4,480)	$	(4,516)	$	(5,899)							6 ​
Accounts payable and accrued expenses		13,771		14,862		13,759		3,605		3,599		3,074		(2,767)		(2,331)		(2,117)		14,609		16,130		14,716	7 ​
Deferred income taxes		421		452		402		415		455		215		(345)		(387)		(106)		491		520		511	9 ​
Long-term borrowings		6,575		7,210		7,310		34,387		31,267		28,301								40,962		38,477		35,611
Retirement benefits and other liabilities		1,995		2,032		2,410		111		109		110		(1)		(1)				2,105		2,140		2,520	8 ​
Total liabilities		23,817		25,786		25,636		66,618		63,650		58,332		(7,593)		(7,235)		(8,122)		82,842		82,201		75,846
Commitments and contingencies (Note 16)
Redeemable noncontrolling interest		98		97		102														98		97		102
Stockholders’ Equity
Total Deere & Company stockholders’ equity		22,684		21,785		22,395		7,216		7,082		6,901		(7,216)		(7,082)		(6,901)		22,684		21,785		22,395	10 ​
Noncontrolling interests		4		4		4														4		4		4
Financial Services’ equity		(7,216)		(7,082)		(6,901)								7,216		7,082		6,901							10 ​
Adjusted total stockholders’ equity		15,472		14,707		15,498		7,216		7,082		6,901								22,688		21,789		22,399
Total Liabilities and Stockholders’ Equity	$	39,387	$	40,590	$	41,236	$	73,834	$	70,732	$	65,233	$	(7,593)	$	(7,235)	$	(8,122)	$	105,628	$	104,087	$	98,347

⁶ Elimination of receivables / payables between equipment operations and financial services.

⁷ Primarily reclassification of sales incentive accruals on receivables sold to financial services.

⁸ Reclassification of net pension assets / liabilities.

⁹ Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.

¹⁰ Elimination of financial services’ equity.

37

DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENTS OF CASH FLOWS
For the Six Months Ended April 28, 2024 and April 30, 2023
Unaudited
	EQUIPMENT				FINANCIAL
	OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
	2024		2023		2024		2023		2024		2023		2024		2023
Cash Flows from Operating Activities
Net income	$	3,746	$	4,603	$	370	$	212					$	4,116	$	4,815
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses		10		4		121		(93)						131		(89)
Provision for depreciation and amortization		608		565		509		500	$	(72)	$	(70)		1,045		995	11 ​
Other non-cash adjustments (Note 21)								173								173
Share-based compensation expense										104		54		104		54	12 ​
Distributed earnings of Financial Services		247		12						(247)		(12)					13 ​
Credit for deferred income taxes		(74)		(304)		(46)		(73)						(120)		(377)
Changes in assets and liabilities:
Receivables related to sales		(58)		(255)						(2,411)		(4,152)		(2,469)		(4,407)	14, 16​
Inventories		(300)		(910)						(109)		(72)		(409)		(982)	15 ​
Accounts payable and accrued expenses		(1,012)		161		147		243		(435)		(717)		(1,300)		(313)	16 ​
Accrued income taxes payable/receivable		(20)		(97)		(9)		1						(29)		(96)
Retirement benefits		(205)		(67)		(3)		(1)						(208)		(68)
Other		89		54		65		103		(71)		(9)		83		148	11, 12, 15​
Net cash provided by (used for) operating activities		3,031		3,766		1,154		1,065		(3,241)		(4,978)		944		(147)
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)						14,175		13,169		(472)		(576)		13,703		12,593	14 ​
Proceeds from maturities and sales of marketable securities		58		62		142		36						200		98
Proceeds from sales of equipment on operating leases						1,011		993						1,011		993
Cost of receivables acquired (excluding receivables related to sales)						(14,238)		(13,584)		147		133		(14,091)		(13,451)	14 ​
Purchases of marketable securities		(226)		(21)		(206)		(167)						(432)		(188)
Purchases of property and equipment		(718)		(583)		(1)		(1)						(719)		(584)
Cost of equipment on operating leases acquired						(1,516)		(1,327)		147		98		(1,369)		(1,229)	15 ​
Decrease (increase) in investment in Financial Services		10		(799)						(10)		799					17 ​
Increase in trade and wholesale receivables						(3,171)		(5,310)		3,171		5,310					14 ​
Collateral on derivatives – net						96		367						96		367
Other		(68)		(119)		(2)		25		1		1		(69)		(93)
Net cash used for investing activities		(944)		(1,460)		(3,710)		(5,799)		2,984		5,765		(1,670)		(1,494)
Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original maturities three months or less)		189		(225)		(131)		4,217						58		3,992
Change in intercompany receivables/payables		31		932		(31)		(932)
Proceeds from borrowings issued (original maturities greater than three months)		34		41		10,155		4,827						10,189		4,868
Payments of borrowings (original maturities greater than three months)		(1,012)		(47)		(7,127)		(3,520)						(8,139)		(3,567)
Repurchases of common stock		(2,422)		(2,546)										(2,422)		(2,546)
Capital investment from Equipment Operations						(10)		799		10		(799)					17 ​
Dividends paid		(796)		(697)		(247)		(12)		247		12		(796)		(697)	13 ​
Other		(27)		(5)		(25)		(28)						(52)		(33)
Net cash provided by (used for) financing activities		(4,003)		(2,547)		2,584		5,351		257		(787)		(1,162)		2,017
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash				62		(5)		8						(5)		70
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash		(1,916)		(179)		23		625						(1,893)		446
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		5,755		3,781		1,865		1,160						7,620		4,941
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	3,839	$	3,602	$	1,888	$	1,785					$	5,727	$	5,387
Components of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents	$	3,800	$	3,587	$	1,753	$	1,680					$	5,553	$	5,267
Restricted cash (Other assets)		39		15		135		105						174		120
Total Cash, Cash Equivalents, and Restricted Cash	$	3,839	$	3,602	$	1,888	$	1,785					$	5,727	$	5,387

¹¹ Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.

¹² Reclassification of share-based compensation expense.

¹³ Elimination of dividends from financial services to the equipment operations, which are included in the equipment operations’ operating activities.

¹⁴ Primarily reclassification of receivables related to the sale of equipment.

¹⁵ Reclassification of direct lease agreements with retail customers.

¹⁶ Reclassification of sales incentive accruals on receivables sold to financial services.

¹⁷ Elimination of change in investment from equipment operations to financial services.

38

Item 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

Item 4.CONTROLS AND PROCEDURES

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

PART II.  OTHER INFORMATION

Item 1.Legal Proceedings

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

Item 1A.Risk Factors

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

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

Issuer Purchases of Equity Securities

Purchases of our common stock during the second quarter of 2024 were as follows:

				Total Number of
				Shares Purchased as	Maximum Number of
	Total Number of			Part of Publicly	Shares that May Yet Be
	Shares			Announced Plans or	Purchased under the
	Purchased	Average Price		Programs (1)	Plans or Programs (1)
Period	(thousands)	Per Share		(thousands)	(millions)
Jan 29 to Feb 25	1,049	$	383.61	1,049	28.6
Feb 26 to Mar 24	1,330		374.48	1,330	27.3
Mar 25 to Apr 28	505		404.58	505	26.8
Total	2,884			2,884

(1) We have a share repurchase plan that was announced in December 2022 to purchase up to $18.0 billion of shares of our common stock. The maximum number of shares that may yet be purchased under this plan was 26.8 million based on the closing price of our common stock on the New York Stock Exchange as of the end of the second quarter of 2024 of $393.33 per share. At the end of the second quarter of 2024, $10.5 billion of common stock remained to be purchased under this plan.

39

Sales of Unregistered Securities

During the second quarter of 2024, we issued 4,500 deferred stock units under the Deere & Company Nonemployee Director Stock Ownership Plan (“NEDSOP”) to our non-employee directors for their service on our Board of Directors. The deferred stock units convert to shares of common stock on a one-for-one basis following a termination of service as described in the plan. Deferred stock units and shares of common stock issued under the NEDSOP are exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506 of the SEC’s Regulation D thereunder.

During the second quarter of 2024, we distributed 4,399 shares of common stock to a participant account under the 2012 and 2022 NEDSOP.

Item 3.Defaults Upon Senior Securities

None.

Item 4.Mine Safety Disclosures

Not applicable.

Item 5.Other Information

Director and Executive Officer Trading Arrangements

On February 26, 2024, Cory J. Reed, President, Worldwide Agriculture & Turf Division, Production and Precision Ag, Sales & Marketing Regions of the Americas and Australia adopted a trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. The plan covers the exercise of 13,370 employee stock options and the related sale of such shares. The plan expires on December 24, 2024.

On March 5, 2024, Rajesh Kalathur, President, John Deere Financial, and Chief Information Officer adopted a trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. The plan covers the exercise of 24,580 employee stock options and the related sale of such shares. The plan expires on August 29, 2025.

40

Item 6.Exhibits

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

3.1	Certificate of Incorporation (Exhibit 3.1 to Form 10-Q of registrant for the quarter ended July 28, 2019, Securities and Exchange Commission File Number 1-4121*)
3.2	Bylaws, as amended (Exhibit 3.2 to Form 10-Q of registrant for the quarter ended July 30, 2023, Securities and Exchange Commission File Number 1-4121*)
10.1	364-Day Credit Agreement, dated March 25, 2024, among the registrant, John Deere Capital Corporation, John Deere Bank S.A., various financial institutions, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A. and Citibank, N.A., as Co-Syndication Agents, and J.P. Morgan Securities LLC, as Sustainability Structuring Agent
10.2	2028 Credit Agreement, dated March 25, 2024, among the registrant, John Deere Capital Corporation, John Deere Bank S.A., various financial institutions, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A. and Citibank, N.A., as Co-Syndication Agents, and J.P. Morgan Securities LLC, as Sustainability Structuring Agent
10.3	2029 Credit Agreement, dated March 25, 2024, among the registrant, John Deere Capital Corporation, John Deere Bank S.A., various financial institutions, JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A. and Citibank, N.A., as Co-Syndication Agents, and J.P. Morgan Securities LLC, as Sustainability Structuring Agent
31.1	Rule 13a-14(a)/15d-14(a) Certification
31.2	Rule 13a-14(a)/15d-14(a) Certification
32	Section 1350 Certifications (furnished herewith)
101.INS	Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Incorporated by reference.

41

SIGNATURES

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

		DEERE & COMPANY
Date:	May 30, 2024	By:	/s/ Joshua A. Jepsen
			Joshua A. Jepsen Senior Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

42