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Item 1. Financial Statements

2026-02-26 compared with 2025-08-28 · 284 added, 348 removed, 578 unchanged (52% of the section changed)

2 unchanged sentences

STATEMENTS OF CONSOLIDATED INCOME

For the Three and Nine Months Ended July 27, 2025 and July 28, 2024

For the Three Months Ended February 1, 2026 and January 26, 2025

(In millions of dollars and shares except per share amounts) Unaudited

Three Months Ended

Nine Months Ended

Net Sales and Revenues

9 unchanged sentences

Income of Consolidated Group

Equity in income of unconsolidated affiliates

Equity in income (loss) of unconsolidated affiliates

Net loss attributable to noncontrolling interests

7 unchanged sentences

STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME

For the Three and Nine Months Ended July 27, 2025 and July 28, 2024

For the Three Months Ended February 1, 2026 and January 26, 2025

(In millions of dollars) Unaudited

Three Months Ended

Nine Months Ended

Other Comprehensive Income (Loss), Net of Income Taxes

1 unchanged sentence

Cumulative translation adjustment

Unrealized gain (loss) on derivatives

Unrealized gain on debt securities

Unrealized loss on derivatives

Unrealized gain (loss) on debt securities

Other Comprehensive Income (Loss), Net of Income Taxes

Comprehensive Income

Comprehensive loss attributable to noncontrolling interests

Comprehensive income (loss) attributable to noncontrolling interests

Comprehensive Income Attributable to Deere & Company

27 unchanged sentences

Stockholders’ Equity

Common stock, $ 1 par value (issued shares at July 27, 2025 – 536,431,204 )

Common stock, $ 1 par value (issued shares at February 1, 2026 – 536,431,204 )

Common stock in treasury

8 unchanged sentences

STATEMENTS OF CONSOLIDATED CASH FLOWS

For the Nine Months Ended July 27, 2025 and July 28, 2024

For the Three Months Ended February 1, 2026 and January 26, 2025

(In millions of dollars) Unaudited

Cash Flows from Operating Activities

Adjustments to reconcile net income to net cash provided by operating activities:

Adjustments to reconcile net income to net cash used for operating activities:

Provision for credit losses

Provision for depreciation and amortization

Depreciation and amortization

Impairments and other adjustments

Share-based compensation expense

Credit for deferred income taxes

Provision for deferred income taxes

Changes in assets and liabilities:

3 unchanged sentences

Retirement benefits

Net cash provided by operating activities

Net cash used for operating activities

Cash Flows from Investing Activities

3 unchanged sentences

Cost of receivables acquired (excluding receivables related to sales)

Acquisitions of businesses, net of cash acquired

Purchases of marketable securities

3 unchanged sentences

Collateral on derivatives – net

Net cash used for investing activities

Net cash provided by investing activities

Cash Flows from Financing Activities

Net payments in short-term borrowings (original maturities three months or less)

Net proceeds (payments) in short-term borrowings (original maturities three months or less)

Proceeds from borrowings issued (original maturities greater than three months)

4 unchanged sentences

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash

Net Decrease in Cash, Cash Equivalents, and Restricted Cash

Cash, Cash Equivalents, and Restricted Cash at Beginning of Period

8 unchanged sentences

STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY

For the Three and Nine Months Ended July 27, 2025 and July 28, 2024

For the Three Months Ended February 1, 2026 and January 26, 2025

(In millions of dollars) Unaudited

6 unchanged sentences

Income (Loss)

Three Months Ended July 28, 2024

Balance April 28, 2024

Net income (loss)

Other comprehensive loss

Repurchases of common stock

Treasury shares reissued

Dividends declared

Noncontrolling interest redemption (Note 21)

Share based awards and other

Balance July 28, 2024

Nine Months Ended July 28, 2024

Balance October 27, 2024

Net income (loss)

Other comprehensive income (loss)

Repurchases of common stock

Treasury shares reissued

Dividends declared

Noncontrolling interest redemption (Note 21)

Share based awards and other

Balance July 28, 2024

Three Months Ended July 27, 2025

Balance April 27, 2025

Net income (loss)

Other comprehensive income

Other comprehensive loss

Repurchases of common stock

2 unchanged sentences

Share based awards and other

Balance July 27, 2025

Nine Months Ended July 27, 2025

Balance October 27, 2024

Balance January 26, 2025

Balance November 2, 2025

Net income (loss)

4 unchanged sentences

Share based awards and other

Balance July 27, 2025

Balance February 1, 2026

See Condensed Notes to Interim Consolidated Financial Statements.

2 unchanged sentences

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.

References to “Deere & Company,” “John Deere,” “Deere,” “we,” “us,” or “our” include our consolidated subsidiaries, unless otherwise stated.

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 (John Deere Financial or FS).

References to “agriculture and turf” include both PPA and SAT.

Production & Precision Agriculture (PPA), Small Agriculture & Turf (SAT), Construction & Forestry (CF), and Financial Services (John Deere Financial or FS).

References to “equipment operations” include PPA, SAT, and CF, while 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 third quarter ends for fiscal years 2025 and 2024 were July 27, 2025 and July 28, 2024, respectively.

Both quarters contained 13 weeks, while both year-to-date periods contained 39 weeks.

Fiscal year 2025 will contain 53 weeks, with the additional week occurring in the fourth quarter.

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.

The first quarter ends for fiscal years 2026 and 2025 were February 1, 2026, and January 26, 2025, respectively.

Both periods contained 13 weeks.

Fiscal year 2025 contained 53 weeks, with the additional week occurring in the fourth quarter.

Unless otherwise stated, references to particular years, quarters, or months refer to our fiscal years generally ending near the end of October and the associated periods in those fiscal years.

All amounts are presented in millions of U.S.

dollars, unless otherwise specified.

Certain prior period amounts have been reclassified to conform to current period presentation.

Variable Interest Entity

Variable Interest Entities

We consolidate certain variable interest entities (VIEs) related to retail note securitizations (see Note 10).

We have a 50 % ownership interest in Banco John Deere S.A.

1 unchanged sentence

This investment was established in February 2025 through the sale of 50 % ownership of a former subsidiary (see Note 21).

BJD is a variable interest entity (VIE) as we provide funding and are exposed to losses that are disproportionate to our voting rights.

BJD is a VIE as we provide funding and are exposed to losses that are disproportionate to our voting rights.

However, we are not the primary beneficiary of the VIE because the power over significant activities, including the strategic plan, budget, credit policies, and funding guidelines, is shared among equity holders through an equally represented board of directors.

Financial results of BJD are reported in “Equity in income of unconsolidated affiliates.” The related investment in unconsolidated affiliates is included in “Other assets” on the condensed consolidated balance sheets, while short-term and long-term funding is recorded in receivables from unconsolidated affiliates and included in “Other receivables.”

Our carrying value of receivables from and investments in BJD and maximum exposure to loss at July 27, 2025 follows:

Financial results of BJD are reported in “Equity in income (loss) of unconsolidated affiliates.” The related investment in unconsolidated affiliates is included in “Other assets” on the condensed consolidated balance sheets, while short-term and long-term funding is recorded in receivables from unconsolidated affiliates and included in “Other receivables.”

Our carrying value of receivables from and investments in BJD and maximum exposure to loss were as follows:

Receivables from unconsolidated affiliates – "Other receivables"

2 unchanged sentences

Maximum exposure to loss

Guarantees primarily include BJD debt related to government funding that existed prior to the deconsolidation of BJD, and no contractual liability is recorded by us on our condensed consolidated balance sheets.

The maximum exposure to loss is not an indication of our expected loss exposure.

Guarantees primarily include BJD debt related to government funding that existed prior to the deconsolidation of BJD.

We did not record a contractual liability related to these guarantees on our condensed consolidated balance sheets.

(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.

T he 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).

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Actual results could differ from those estimates.

New Accounting Pronouncements Adopted

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

We adopted the following standards in 2025, none of which had a material effect on our consolidated financial statements.

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

Accounting Pronouncements to be Adopted

In July 2025, the FASB issued ASU 2025-05 , Financial Instruments – Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient for estimating expected credit losses on short-term receivables from sales transactions.

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

In December 2025, the FASB issued ASU 2025-10 , Government Grants (Topic 832):

Accounting for Government Grants Received by Business Entities, which provides updated guidance on how to recognize, measure, and present government grants.

The ASU will be effective for us beginning with our interim reporting for fiscal year 2030, with early adoption permitted.

We are assessing the effect of this update on our financial results.

We are assessing the effect of this update on our consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06 , Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software, which provides updated guidance for the capitalization of internal-use software.

The ASU will be effective for us beginning with our interim reporting for fiscal year 2029, with early adoption permitted.

We are assessing the effect of this update on our consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03 , Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40):

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We are assessing the effect of this update on our related disclosures.

The adoption will not have a material impact on our consolidated financial statements.

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.

All other accounting standards issued but not yet adopted were not applicable to us.

2025-12 — Codification Improvements

2025-11 — Interim Reporting (Topic 270):

Narrow-Scope Improvements

2025-09 — Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements

2025-07 — Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606):

Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract

2025-05 — Financial Instruments – Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets

2024-04 — Debt – Debt with Conversion and Other Options (Subtopic 470-20):

Induced Conversions of Convertible Debt Instruments

2023-07 — Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures

2023-06 — Disclosure Improvements:

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

Three Months Ended July 27, 2025

Primary geographic markets:

United States

Western Europe

Central Europe and CIS

Latin America

Asia, Africa, Oceania, and Middle East

Major product lines:

Production agriculture

Small agriculture

Compact construction

Financial products

Revenue recognized:

At a point in time

Nine Months Ended July 27, 2025

Primary geographic markets:

United States

Western Europe

Central Europe and CIS

Latin America

Asia, Africa, Oceania, and Middle East

Major product lines:

Production agriculture

Small agriculture

Compact construction

Financial products

Revenue recognized:

At a point in time

Three Months Ended July 28, 2024

Three Months Ended February 1, 2026

Primary geographic markets:

United States

4 unchanged sentences

Major product lines:

Production agriculture

3 unchanged sentences

Revenue recognized:

At a point in time

Nine Months Ended July 28, 2024

Three Months Ended January 26, 2025

Primary geographic markets:

United States

4 unchanged sentences

Major product lines:

Production agriculture

3 unchanged sentences

Revenue recognized:

At a point in time

1 unchanged sentence

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 $ 2,100 , $ 1,923 , and $ 1,895 at July 27, 2025, October 27, 2024, and July 28, 2024, respectively.

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 $ 2,121 , $ 2,039 , and $ 2,027 at February 1, 2026, November 2, 2025, and January 26, 2025, respectively.

The contract liability is reduced as the revenue is recognized.

Revenue recognized from deferred revenue that was recorded as a contract liability at the beginning of the fiscal year was $ 125 and $ 126 during the three months and $ 498 and $ 484 during the nine months ended July 27, 2025 and July 28, 2024, respectively.

The amount of unsatisfied performance obligations for contracts with an original duration greater than one year was $ 1,823 at July 27, 2025.

Revenue recognized from deferred revenue that was recorded as a contract liability at the beginning of the fiscal year was $ 265 and $ 197 during the three months ended February 1, 2026, and January 26, 2025, respectively.

The amount of unsatisfied performance obligations for contracts with an original duration greater than one year was $ 1,811 at February 1, 2026.

The estimated revenue to be recognized by fiscal year follows:

6 unchanged sentences

Cumulative translation adjustment

Unrealized gain (loss) on derivatives

Unrealized gain (loss) on debt securities

Unrealized loss on derivatives

Unrealized loss on debt securities

Accumulated other comprehensive income (loss)

The following tables reflect amounts recorded in other comprehensive income (loss), as well as reclassifications out of other comprehensive income (loss).

Three Months Ended July 27, 2025

Cumulative translation adjustment

Unrealized gain (loss) on interest rate derivatives:

Unrealized hedging gain (loss)

Reclassification of realized (gain) loss to Interest expense

Net unrealized gain (loss) on derivatives

Unrealized gain (loss) on debt securities:

Unrealized holding gain (loss)

Reclassification of realized (gain) loss to Other income

Net unrealized gain (loss) on debt securities

Retirement benefits adjustment:

Net actuarial gain (loss)

Reclassification to Other operating expenses through amortization of:

Actuarial (gain) loss

Prior service (credit) cost

Settlements/curtailment

Net unrealized gain (loss) on retirement benefits adjustment

Total other comprehensive income (loss)

Nine Months Ended July 27, 2025

Cumulative translation adjustment

Unrealized gain (loss) on interest rate derivatives:

Unrealized hedging gain (loss)

Reclassification of realized (gain) loss to Interest expense

Net unrealized gain (loss) on derivatives

Unrealized gain (loss) on debt securities:

Unrealized holding gain (loss)

Reclassification of realized (gain) loss to Other income

Net unrealized gain (loss) on debt securities

Retirement benefits adjustment:

Net actuarial gain (loss)

Reclassification to Other operating expenses through amortization of:

Actuarial (gain) loss

Prior service (credit) cost

Settlements/curtailment

Net unrealized gain (loss) on retirement benefits adjustment

Total other comprehensive income (loss)

Three Months Ended July 28, 2024

Three Months Ended February 1, 2026

Cumulative translation adjustment

Unrealized gain (loss) on interest rate derivatives:

Unrealized gain (loss) on derivatives:

Unrealized hedging gain (loss)

5 unchanged sentences

Retirement benefits adjustment:

Net actuarial gain (loss)

Reclassification to Other operating expenses through amortization of:

3 unchanged sentences

Total other comprehensive income (loss)

Nine Months Ended July 28, 2024

Three Months Ended January 26, 2025

Cumulative translation adjustment

Unrealized gain (loss) on interest rate derivatives:

Unrealized gain (loss) on derivatives:

Unrealized hedging gain (loss)

3 unchanged sentences

Unrealized holding gain (loss)

Reclassification of realized (gain) loss to Other income

Net unrealized gain (loss) on debt securities

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(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:

A reconciliation of basic and diluted earnings per share attributable to Deere & Company follows in millions, except per share amounts:

Three Months Ended

Nine Months Ended

Net income attributable to Deere & Company

Average shares outstanding

Basic per share

Basic earnings per share

Average shares outstanding

1 unchanged sentence

Total potential shares outstanding

Diluted per share

Shares excluded from EPS calculation, as antidilutive

Diluted earnings per share

Shares excluded as antidilutive

(6) Pension and Other Postretirement Benefits

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employees and certain foreign employees.

The components of net periodic pension and OPEB (benefit) cost excluding the service cost component are included in the line item “Other operating expenses.”

The components of net periodic pension and OPEB (benefit) cost consisted of the following:

Three Months Ended

Nine Months Ended

Interest cost

2 unchanged sentences

Amortization of prior service cost

Settlements/curtailment

Interest cost

2 unchanged sentences

Amortization of prior service credit

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 nine months of 2025, we contributed and expect to contribute the following amounts to our pension and OPEB plans:

Net (benefit) cost

During the first three months of 2026, we contributed and expect to contribute the following amounts to our pension and OPEB plans:

Expected contributions remainder of the year

(7) INCOME TAXES

The effective tax rate for the three months ended February 1, 2026, and January 26, 2025, was 23.4 % and 3.0 %, respectively.

The effective tax rate in the first quarter of 2025 was impacted by favorable net discrete tax items (see Note 21).

(8) SEGMENT DATA

Information relating to operations by operating segment follows:

Our operations are organized and reported in four business segments:

Production & Precision Agriculture, Small Agriculture & Turf, Construction & Forestry, and Financial Services.

This presentation is consistent with how the chief operating decision maker, our Chief Executive Officer (CEO), who also serves as the Chairman of the Board, assesses the performance of the segments and makes decisions regarding resource allocations.

Each segment has a group president responsible for managing financial performance and executing strategic initiatives.

● Production & Precision Agriculture – PPA segment defines, develops, and delivers global equipment and technology solutions to unlock customer value for production-scale growers of large grains, small grains, cotton, and sugarcane.

● Small Agriculture & Turf – SAT segment defines, develops, and delivers global equipment and technology solutions to unlock customer value for dairy and livestock producers, high-value and small acreage crop producers, and turf and utility customers.

● Construction & Forestry – CF segment defines, develops, and delivers a broad range of machines and technology solutions organized along the earthmoving, forestry, and roadbuilding production systems.

The products and services produced by the segments above are primarily marketed through independent retail dealer networks and major retail outlets.

For roadbuilding products in certain markets outside the U.S.

and Canada, the products are sold through company-owned sales and service subsidiaries.

● Financial Services – FS segment finances sales and leases by John Deere dealers of new and used production and precision agriculture equipment, small agriculture and turf equipment, and construction and forestry equipment.

In addition, the FS segment provides wholesale financing to dealers of the foregoing equipment, finances retail revolving charge accounts, and offers extended equipment warranties.

The CEO evaluates the performance of the business segments based on operating profit, which for FS includes interest income and interest expense, and on identifiable segment operating assets.

Segment operating profit and operating assets are measured using accounting policies consistent with those applied in the consolidated financial statements.

Because of integrated manufacturing operations and common administrative and marketing support, a substantial number of allocations must be

made to determine operating segment data.

Intersegment transactions are primarily made between the FS segment and PPA, SAT, and CF segments, and are recognized at current market prices.

Total identifiable assets assigned to the equipment operations operating segments are those the segments actively manage, consisting of trade receivables, inventories, property and equipment, intangible assets, and certain other assets.

Corporate assets are managed on a consolidated basis, including cash and cash equivalents, retirement benefit net assets, goodwill, and deferred income tax assets.

Financial Services assets include cash and cash equivalents, retirement benefits, and deferred income tax assets that are managed by the segment.

Information relating to operations by operating segment was as follows:

Three Months Ended February 1, 2026

External net sales

External finance and interest income

External other income

Intersegment income

Total segment net sales and revenues

Cost of sales

Interest expense

Other segment items*

Segment operating profit

Three Months Ended January 26, 2025

External net sales

External finance and interest income

External other income

Intersegment income

Total segment net sales and revenues

Cost of sales

Interest expense

Other segment items*

Segment operating profit

* Other segment items for PPA, SAT, and CF include selling, administrative and general expenses;

research and development;

equity in income (loss) of unconsolidated affiliates;

and other miscellaneous operating expenses.

Financial Services other segment items include selling, administrative and general expenses;

foreign exchange gains and losses;

equity in income (loss) of unconsolidated affiliates;

and other miscellaneous operating expenses.

A reconciliation of segment net sales and revenues and segment net income to consolidated net sales and revenues and consolidated net income follows:

Three Months Ended

Nine Months Ended

Reconciliation of net sales and revenues

Segment net sales and revenues

External other income*

Elimination of intersegment revenues

Net sales and revenues

PPA net sales

SAT net sales

Other revenues

Total net sales and revenues

Operating profit

Total operating profit

Reconciling items

Net income attributable to Deere & Company

Intersegment sales and revenues:

PPA net sales

SAT net sales

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, and net income attributable to noncontrolling interests.

Identifiable operating assets were as follows:

Reconciliation of net income

Segment operating profit

Interest income – excluding FS

Interest expense – excluding FS

Pension and OPEB benefit, excluding service cost component

Corporate other – net**

* External other income includes corporate investment income, corporate interest income, and other miscellaneous revenue items that are included in “Finance and interest income” and “Other income” on the statements of consolidated income.

** Corporate other – net includes certain foreign exchange gains and losses, certain investment income, and certain corporate administrative and general expenses.

Additional operating segment information was as follows:

Three Months Ended

Depreciation* and amortization expense

Capital additions

* Depreciation includes depreciation for equipment on operating leases.

Equity investment in unconsolidated affiliates

* Corporate assets are managed on a consolidated basis, including cash and cash equivalents, retirement benefit net assets, goodwill, and deferred income tax assets.

(9) Financing Receivables

6 unchanged sentences

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

July 27, 2025

February 1, 2026

Revolving Charge Accounts

11 unchanged sentences

Total retail customer receivables

Write-offs for the nine months ended July 27, 2025:

Write-offs for the three months ended February 1, 2026:

Agriculture and turf

Construction and forestry

October 27, 2024

November 2, 2025

Revolving Charge Accounts

11 unchanged sentences

Total retail customer receivables

Write-offs for the twelve months ended October 27, 2024:

Write-offs for the twelve months ended November 2, 2025:

Agriculture and turf

Construction and forestry

July 28, 2024

January 26, 2025

Revolving Charge Accounts

11 unchanged sentences

Total retail customer receivables

Write-offs for the nine months ended July 28, 2024:

Write-offs for the three months ended January 26, 2025:

Agriculture and turf

10 unchanged sentences

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

Three Months Ended July 27, 2025

Beginning of period balance

End of period balance

Nine Months Ended July 27, 2025

Three Months Ended February 1, 2026

Beginning of period balance

Provision (credit)

Translation adjustments

End of period balance

1 unchanged sentence

End of period balance

Three Months Ended July 28, 2024

Beginning of period balance

Provision reversal for assets held for sale

Provision subtotal

Translation adjustments

End of period balance

Nine Months Ended July 28, 2024

Three Months Ended January 26, 2025

Beginning of period balance

Provision reversal for assets held for sale

Provision subtotal

Translation adjustments

2 unchanged sentences

End of period balance

The allowance for credit losses remained relatively flat in the third quarter of 2025 and increased in the first nine months of 2025, primarily due to higher expected losses on agriculture and turf customer accounts as a result of elevated delinquencies and a decline in market conditions.

In the third quarter of 2024, the financial services business in Brazil met the held for sale criteria.

The receivables in Brazil were reclassified to “Assets held for sale.” The associated allowance for credit losses was reversed and a valuation allowance for the assets held for sale was recorded (see Note 21).

These operations were deconsolidated in the second quarter of 2025 (see Note 20).

The allowance for credit losses on retail notes and financing lease receivables decreased in the first quarter of 2026, primarily due to a decline in the balance of financing receivables.

Modifications

1 unchanged sentence

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 with the exception of modifications related to bankruptcy proceedings.

Finance charges continue to accrue during the deferral or extension period except for modifications related to bankruptcy proceedings.

Our allowance for credit losses incorporates historical loss information, including the effects of loan modifications with customers.

2 unchanged sentences

Three Months Ended

Nine Months Ended

Modified financing receivables

Percentage of financing receivables portfolio

For the nine months ended July 27, 2025, the financial effects of payment deferrals with borrowers experiencing financial difficulty resulted in a weighted average payment deferral of 7 months to the modified contracts.

Term extensions provided to borrowers experiencing financial difficulty added a weighted average of 11 months to the modified contracts.

Additionally, modifications with a combination of both payment deferrals and term extensions resulted in a weighted average payment deferral of 5 months and a weighted average term extension of 8 months .

Percent of financing receivables portfolio

Modifications offered include payment deferrals, term extensions, or a combination thereof.

The weighted-average effects for contract modifications were as follows in months:

Three Months Ended

Payment deferral

Term extension

Combination modifications

Payment deferral

Term extension

We continue to monitor the performance of financing receivables that are modified with borrowers experiencing financial difficulty.

The ending amortized cost and performance of financing receivables modified during the prior twelve months ended July 27, 2025 and July 28, 2024 were as follows:

The ending amortized cost and performance of financing receivables modified during the prior twelve months ended February 1, 2026, and January 26, 2025, were as follows:

30-59 days past due

2 unchanged sentences

Non-performing

* In accordance with the adoption date of the accounting modification guidance, this period includes receivables modified during the prior nine months.

Defaults and subsequent write-offs of loans modified in the prior twelve months were not significant during the three months and the nine months ended July 27, 2025.

In addition, at July 27, 2025, commitments to provide additional financing to these customers were not significant.

Defaults and subsequent write-offs of loans modified in the prior twelve months were not significant during the three months ended February 1, 2026, and January 26, 2025.

At February 1, 2026, commitments to provide additional financing to these customers were not significant.

(10) Securitization of Financing Receivables

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The receivables and borrowings remain on our balance sheet and are separately reported as “Financing receivables securitized – net” and “Short-term securitization borrowings,” respectively.

SPEs are consolidated as VIEs when we have the power to direct the activities that most significantly impact the SPEs’ economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the SPEs.

The components of securitization programs were as follows:

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Translation adjustments

Goodwill at July 28, 2024

Goodwill at October 27, 2024

Acquisitions (Note 20)

Goodwill at January 26, 2025

Goodwill at November 2, 2025

Translation adjustments

Goodwill at July 27, 2025

Goodwill at February 1, 2026

The components of other intangible assets were as follows:

7 unchanged sentences

Other intangible assets – net

The amortization of other intangible assets in the third quarter and the first nine months of 2025 was $ 31 and $ 110 , and for the third quarter and the first nine months of 2024 was $ 41 and $ 124 , respectively.

The amortization expense of other intangible assets in the first quarter of 2026 and 2025 was $ 34 and $ 41 , respectively.

The estimated amortization expense for the next five years is as follows:

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Employee benefits

Accrued taxes

Product warranties

Dealer sales discounts

Accrued taxes

Extended warranty premium

Derivative liabilities

Dealer sales incentives

Unearned revenue (contractual liability)

1 unchanged sentence

Accrued interest

Derivative liabilities

Parts return liability

Accounts payable and accrued expenses

Amounts are presented net of eliminations, which primarily consist of dealer sales incentives with a right of set-off against trade receivables of $ 2,268 at July 27, 2025, $ 2,121 at October 27, 2024, and $ 2,535 at July 28, 2024.

Amounts are presented net of eliminations, which primarily consist of dealer sales incentives with a right of set-off against trade receivables of $ 1,898 at February 1, 2026, $ 1,892 at November 2, 2025, and $ 1,901 at January 26, 2025.

Other eliminations were made for accrued taxes and other accrued expenses.

(15) Long-Term Borrowings

Long-term borrowings consisted of:

Long-term borrowings were as follows in millions:

Underwritten term debt

dollar notes and debentures:

9 unchanged sentences

3.75 % notes due 2050

5.70 % notes due 2055

1.85 % notes due 2028 (€ 600 principal)

4 unchanged sentences

Other notes and finance lease obligations

Less debt issuance costs and debt discounts

debt issuance costs and debt discounts

Long-term borrowings

* Includes fair value hedge adjustments related to derivatives.

The 4.15 % notes due 2030 listed above were issued on October 9, 2025, by Deere Funding Canada Corporation (DFCC), an indirect wholly-owned subsidiary.

These notes are fully and unconditionally guaranteed on a senior unsecured basis by Deere & Company and, therefore, rank equally with all our outstanding notes and debentures.

DFCC financial results were not material to our condensed consolidated financial statements or results of operations, and as a result, we have elected to exclude summarized financial information.

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 $ 35,699 , $ 37,141 , and $ 36,716 , at July 27, 2025, October 27, 2024, and July 28, 2024, respectively.

All outstanding notes and debentures are senior unsecured borrowings and rank equally with each other.

The principal balances of the 4.15 % notes due 2030 and medium-term notes were as follows:

4.15 % notes due 2030

Medium-term notes

(16) Leases – Lessor

3 unchanged sentences

Three Months Ended

Nine Months Ended

Sales-type and direct finance lease revenues

8 unchanged sentences

Three Months Ended

Nine Months Ended

Beginning of period balance

5 unchanged sentences

In certain international markets, we provide guarantees to banks for the retail financing of John Deere equipment.

As of July 27, 2025, the notional value of these guarantees was $ 130 .

As of February 1, 2026, the notional value of these guarantees was $ 141 .

We may repossess the equipment collateralizing the receivables.

At July 27, 2025, the accrued losses under these agreements were not material.

We also had guarantees to a VIE (see Note 1) totaling $ 153 as of July 27, 2025.

We also had other miscellaneous contingent liabilities and guarantees totaling approximately $ 125 at July 27, 2025.

The accrued liability for these contingencies was $ 25 at July 27, 2025.

At July 27, 2025, we had commitments of approximately $ 630 for the construction and acquisition of property and equipment.

Also, at July 27, 2025, we had restricted assets of $ 331 , classified as “Other assets,” which includes restricted cash primarily related to securitization of financing receivables (see Note 9) and cash that is legally restricted as to withdrawal or usage.

At February 1, 2026, the accrued losses under these guarantees were not material.

We also had guarantees to a VIE (see Note 1) totaling $ 164 at February 1, 2026.

We also had other miscellaneous contingent liabilities and guarantees totaling approximately $ 105 at February 1, 2026.

The accrued liability for these contingencies was $ 25 at February 1, 2026.

At February 1, 2026, we had commitments of approximately $ 430 for the construction and acquisition of property and equipment.

Also, at February 1, 2026, we had restricted assets of $ 342 , classified as “Other assets,” which includes restricted cash primarily related to securitization of financing receivables (see Note 10) and cash that is legally restricted as to withdrawal or usage.

We are subject to various unresolved legal actions.

The accrued losses on these matters were not material at July 27, 2025.

We believe the reasonably possible range of losses, if any, for these unresolved legal actions would not have a material effect on our consolidated financial statements.

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

The total accrued losses on unresolved legal matters were approximately $ 175 at February 1, 2026.

The accrual includes estimated total accrued losses on unresolved legal matters in connection with a consolidated multidistrict class action antitrust lawsuit, which was recorded in the fourth quarter of 2025.

The accrual is based on management’s best estimate of probable losses as the outcome of litigation is inherently uncertain.

We believe the reasonably possible range of losses in excess of the recorded accruals for these unresolved legal actions would not have a material effect on our consolidated financial statements.

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

(18) Fair Value Measurements

1 unchanged sentence

Long-term borrowings exclude finance lease liabilities.

July 27, 2025

October 27, 2024

July 28, 2024

February 1, 2026

November 2, 2025

January 26, 2025

Financing receivables – net

4 unchanged sentences

Long-term borrowings

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

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

Fair values of the financing receivables and receivables from unconsolidated affiliates 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 or at current market interest rates.

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

In May 2025 and May 2024, we acquired held-to-maturity marketable securities that mature in less than one year.

The carrying value of the held-to-maturity marketable securities was $ 62 and $ 12 as of July 27, 2025 and July 28, 2024 , respectively, which approximated fair values.

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.

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

At November 2, 2025, we also had $ 60 marketable securities classified as held-to-maturity Level 2 international corporate debt securities that matured in the first quarter of 2026.

We record held-to-maturity marketable securities at amortized cost , which approximates fair value.

Certain long-term borrowings have been swapped to current variable interest rates.

The carrying values of these long-term borrowings include adjustments related to fair value hedges.

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.

Assets and liabilities measured at fair value on a recurring basis, excluding our cash equivalents, which were carried at a cost that approximates fair value and consist of money market funds and time deposits, and excluding our held-to-maturity debt securities, are as follows:

Marketable securities

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government sponsored enterprises.

The contractual maturities of available-for-sale debt securities at July 27, 2025 follow:

The contractual maturities of available-for-sale debt securities at February 1, 2026, follow:

Due in one year or less

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Fair value, nonrecurring Level 3 measurements from impairments and other adjustments were as follows:

Losses (Gains)

(Gains) Losses

Three Months Ended

Nine Months Ended

Property and equipment – net 1

1 unchanged sentence

Assets held for sale

1 R elated to assessments of our external overseas battery operations performed in the third quarter of 2025.

2 The gain on “Assets held for sale” recorded in the first quarter of 2025 represents a reversal of prior period valuation allowance loss, not in excess of cumulative valuation allowance recorded on “Assets held for sale.”

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.

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).

4 unchanged sentences

Property and equipment – net – The valuations were based on the cost approach.

The inputs include reproduction cost estimates adjusted for physical deterioration and functional obsolescence (see Note 21).

Other intangible assets – net – The impairment of customer relationships and tradename of our external overseas battery operations was measured using an income approach (see Note 21).

The inputs include reproduction cost estimates adjusted for physical deterioration and functional obsolescence.

Other intangible assets – net – The impairment of customer relationships and trade name of our external overseas battery operations was measured using an income approach.

Other assets (Investments in unconsolidated affiliates) – Other than temporary impairments of investments are measured as the difference between the implied fair value and the carrying value of the investments.

The estimated fair value for privately held entities is determined by an income approach (discounted cash flows), which includes inputs such as interest rates and margins.

Assets held for sale – The disposal group was measured at the lower of the carrying amount or fair value less cost to sell.

Assets held for sale – The disposal group was measured at the lower of the carrying amount or fair value less costs to sell.

Fair value was based on the probable sale price.

The inputs included estimates of the final sale price (see Note 21).

The gain recorded in 2025 represents a reversal of the prior period valuation allowance, not in excess of the cumulative valuation allowance recorded on “Assets held for sale.”

(19) Derivative Instruments

1 unchanged sentence

Assets are recorded in “Other assets,” while liabilities are recorded in “Accounts payable and accrued expenses.”

July 27, 2025

October 27, 2024

July 28, 2024

February 1, 2026

November 2, 2025

January 26, 2025

Cash flow hedges:

9 unchanged sentences

Cross-currency interest rate contracts

The amounts recorded in the consolidated balance sheets related to borrowings designated in fair value hedging relationships are presented in the table below.

Fair value hedging adjustments are included in the carrying amount of the hedged item.

The carrying amount of the hedged item and formerly hedged item includes long-term borrowings of $ 598 at October 27, 2024 and July 28, 2024, that were in active hedging relationships and also had discontinued hedging relationships.

Active Hedging Relationships

Discontinued Hedging Relationships

The amounts recorded in the condensed consolidated balance sheets related to borrowings and fair value hedges are presented in the table below.

Fair value hedging adjustments are included in the carrying amount of hedged items.

Carrying Amount

Cumulative Fair Value

Carrying Amount of

Cumulative Fair Value

of Hedged Item

Hedging Amount

Formerly Hedged Item

Hedging Amount

July 27, 2025

of Hedged Items

Hedging Amounts

February 1, 2026

Short-term borrowings

Long-term borrowings

October 27, 2024

November 2, 2025

Short-term borrowings

Long-term borrowings

July 28, 2024

January 26, 2025

Short-term borrowings

Long-term borrowings

The table above includes carrying amounts of short-term borrowings of $ 2,548 , $ 2,544 , and $ 2,110 and of long-term borrowings of $ 11,952 , $ 11,963 , and $ 8,923 at February 1, 2026, November 2, 2025, and January 26, 2025, respectively, for hedged items that are in discontinued hedge relationships.

Also included are cumulative fair value hedging amounts on discontinued hedge relationships of short-term borrowings of $( 26 ), $( 30 ), and $( 14 ) and of long-term borrowings of $( 171 ), $( 185 ), and $( 179 ) at February 1, 2026, November 2, 2025, and January 26, 2025, respectively.

At January 26, 2025, long-term borrowings with a carrying amount of $ 598 were in both active and discontinued hedging relationships as a result of hedging activities associated with reference rate reform.

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

Nine Months Ended

Fair value hedges:

15 unchanged sentences

Total not designated

In April 2025, we entered into a cross-currency interest rate swap as a designated net investment hedge to reduce the foreign currency exposure from investments in foreign subsidiaries.

Changes in fair value of the derivative attributable to changes in the spot rate are recorded in “Cumulative translation adjustment” within “Other comprehensive income” (OCI) to offset changes in the value of the net investments being hedged.

Effectiveness is assessed using the spot method.

The periodic cash settlement of the pay-fixed rate, receive-fixed rate cross-currency swap is recorded in “Interest expense.”

Certain of our derivative agreements contain credit support provisions that may require us to post collateral based on the size of the net liability positions and credit ratings.

The aggregate fair value of all derivatives with credit-risk-related contingent features that were in a net liability position at July 27, 2025, October 27, 2024, and July 28, 2024, was $ 465 , $ 562 , and $ 566 , respectively.

In accordance with the limits established in these agreements, we posted $ 122 , $ 245 , and $ 269 of cash collateral at July 27, 2025, October 27, 2024, and July 28, 2024, respectively.

In addition, we paid $ 8 of collateral that was outstanding at July 27, 2025, October 27, 2024, and July 28, 2024 to participate in an international futures market to hedge currency exposure, not included in the table below.

The aggregate fair value of all derivatives with credit-risk-related contingent features that were in a net liability position at February 1, 2026, November 2, 2025, and January 26, 2025, was $ 361 , $ 356 , and $ 707 , respectively.

In accordance with the limits established in these agreements, we posted $ 74 , $ 62 , and $ 436 of cash collateral at February 1, 2026, November 2, 2025, and January 26, 2025, respectively.

In addition, we paid $ 8 of collateral that was outstanding at February 1, 2026, November 2, 2025, and January 26, 2025, to participate in an international futures market to hedge currency exposure, not included in the following table.

Derivatives are recorded without offsetting for netting arrangements or collateral.

1 unchanged sentence

Gross Amounts

July 27, 2025

October 27, 2024

July 28, 2024

February 1, 2026

November 2, 2025

January 26, 2025

(20) Share-Based AWARDS

We are authorized to grant shares for equity incentive awards.

The outstanding shares authorized were 13.7 million at July 27, 2025.

During the nine months ended July 27, 2025, we granted stock options to employees for the purchase of 169 thousand shares of common stock at a weighted-average exercise price of $ 448.18 per share and a weighted-average binomial lattice model fair value of $ 116.35 per share at the grant date.

At July 27, 2025, options for 1.1 million shares were outstanding with a weighted-average exercise price of $ 317.80 per share.

During the nine months ended July 27, 2025, 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:

The outstanding shares authorized were 12.6 million at February 1, 2026.

In December 2025, we granted stock options to employees for the purchase of 161 thousand shares of common stock at an exercise price of $ 468.90 per share and a binomial lattice model fair value of $ 125.96 per share at the grant date.

At February 1, 2026, options for 1.1 million shares were outstanding with a weighted-average exercise price of $ 353.91 per share.

During the three months ended February 1, 2026, 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:

Service-based

1 unchanged sentence

Market/service-based (fair value determined using a Monte Carlo model )

(20) AcQUISITIONs AND Disposition

In 2025, we acquired businesses to advance the capabilities of our existing technology offerings, providing customers with a more comprehensive set of tools to generate and use data to make decisions that improve profitability, efficiency, and sustainability.

The combined cost of these acquisitions was $ 89 , net of cash acquired.

The businesses were assigned to the PPA and CF segments.

Most of the purchase price for these acquisitions was allocated to goodwill and intangible assets.

In February 2025, we completed a transaction with Banco Bradesco S.A.

(Bradesco), for Bradesco to invest and become a 50 % owner of our wholly-owned subsidiary in Brazil, BJD.

Bradesco contributed capital directly to BJD.

The transaction resulted in the deconsolidation of BJD in the second quarter of 2025.

BJD finances retail and wholesale loans for agricultural, construction, and forestry equipment and was included in our financial services segment.

BJD was a part of our Brazil operations which is considered an integrated single foreign entity.

We retained a 50 % equity interest in BJD, which was valued at the deconsolidation date at $ 362 based on the completed transaction with Bradesco and its amount of contributed capital.

We are accounting for our investment in BJD using the equity method of accounting and results of its operations are reported in “Equity in income of unconsolidated affiliates.” The related investment in unconsolidated affiliates and receivables from unconsolidated affiliates are reported in “Other assets” and “Other receivables,” respectively, on the condensed consolidated balance sheets.

The major classes of the total assets and liabilities of BJD at the time of deconsolidation were as follows:

(21) Special Items

Discrete Tax Items

In the first quarter of 2025, we recorded favorable net discrete tax items primarily due to tax benefits of $ 110 related to the realization of foreign net operating losses from the consolidation of certain subsidiaries and $ 53 from an adjustment to an uncertain tax position of a foreign subsidiary.

Banco John Deere S.A.

In 2024, we entered into an agreement with a Brazilian bank, Banco Bradesco S.A.

(Bradesco), for Bradesco to invest and become 50 % owner of our wholly-owned subsidiary in Brazil, BJD.

BJD is included in our financial services segment and finances retail and wholesale loans for agricultural, construction, and forestry equipment.

In February 2025, Bradesco contributed capital equal to our equity investment in BJD.

We retained a 50 % equity interest in BJD and are reporting the results as an equity investment in unconsolidated affiliates.

The BJD business was reclassified as held for sale in 2024.

At January 26, 2025, the valuation allowance on “Assets held for sale” decreased to $ 65 , resulting in a pretax and after-tax gain (reversal of previous losses) of $ 32 recorded in “Selling, administrative and general expenses” in the three months ended January 26, 2025 and presented in “Impairments and other adjustments” in the statements of consolidated cash flows.

The major classes of the total consolidated assets and liabilities of BJD that were classified as held for sale and liabilities of BJD to other intercompany parties were as follows:

January 26, 2025

Cash and cash equivalents

4 unchanged sentences

Valuation allowance

Assets held for sale

Short-term borrowings

2 unchanged sentences

Retirement benefits and other liabilities

Total liabilities

Liabilities held for sale

Total intercompany payables

At the time of deconsolidation in February 2025, the additional gain or loss was not significant.

BJD was reclassified as held for sale in the third quarter of 2024.

Statements of Consolidated Cash Flows – Our noncash transactions as a result of BJD deconsolidation in February 2025 include the following items:

derecognition of the above total assets (excluding cash and cash equivalents) and total liabilities, and the recognition of the investment in unconsolidated affiliates and receivables from unconsolidated affiliates (BJD intercompany payables above).

The decrease in cash and cash equivalents resulting from deconsolidation of BJD was recorded in investing activities – “Other” in the statements of consolidated cash flows.

(21) Special ItemS

In the third quarter of 2025, we recorded a non-cash charge of $ 61 pretax ($ 49 after-tax), primarily related to the trade name and customer relationship assets of our external overseas battery operations.

Of this amount, $ 53 was recorded in “Selling, administrative and general expenses” and $ 8 in “Cost of sales.” The impairment resulted from slowing external demand for batteries, which indicated that it is probable future cash flows would not cover the carrying value of the assets (see Note 17).

Discrete Tax Items

Banco John Deere S.A.

In February 2025, we completed the transaction with Bradesco (see Note 20) for the sale of 50 % ownership in BJD.

BJD was included in our financial services segment and was reclassified as held for sale in the third quarter of 2024.

In the first quarter of 2025, a pretax and after-tax gain (reversal of previous losses) of $ 32 was recorded in “Selling, administrative and general expenses” and presented in “Impairments and other adjustments” in the statements of consolidated income and consolidated cash flows, respectively.

Employee-Separation Programs

In the third quarter of 2024, we implemented employee-separation programs for our salaried workforce in several geographic areas, including the United States, Europe, Asia, and Latin America.

The programs’ main purpose was to help meet our strategic priorities while reducing overlap and redundancy in roles and responsibilities.

The programs were largely involuntary in nature with the expense recorded when management committed to a plan, the plan was communicated to the employees, and the employees were not required to provide service beyond the legal notification period.

For the limited voluntary employee-separation programs, the expense was recorded in the period in which the employee irrevocably accepted a separation offer.

The programs’ total pretax expenses recorded in the third quarter of 2024 were $ 124 .

Payments made during the third quarter of 2024 with respect to these program expenses totaled $ 30 .

The expenses for the three months and nine months ended July 28, 2024 were recorded as follows:

Employee-Separation Programs:

Cost of sales

Research and development expenses

Selling, administrative and general expenses

Total operating profit decrease

Non-operating profit expenses*

* Relates primarily to corporate expenses.

Banco John Deere S.A.

In the third quarter of 2024, we reclassified the BJD business as held for sale, including a reversal of $ 38 in allowance for credit losses, and the establishment of a $ 53 valuation allowance on the assets held for sale presented in “Impairments and other adjustments” in the statements of consolidated cash flows.

The net impact of these entries was a pretax and after-tax loss of $ 15 recorded in “ Selling, administrative and general expenses .”

Redeemable Noncontrolling Interest

In the third quarter of 2024, we exercised our right to purchase the remaining 20 percent interest in SurePoint Ag Systems, Inc.

The arrangement was accounted for as an equity transaction with no gain or loss recorded in the statements of consolidated income.

Summary of 2025 and 2024 Special Items

The following table summarizes the operating profit impact of the special items recorded for the three months and nine months ended July 27, 2025 and July 28, 2024.

Three Months Ended

Nine Months Ended

2025 Expense (benefit):

BJD measurement

Total expense (benefit)

2024 Expense:

Employee-separation programs

BJD measurement

Total expense

Period over period change

(22) Subsequent Event

On August 27, 2025 , a quarterly dividend of $ 1.62 per share was declared at the Board of Directors meeting, payable on November 10, 2025 , to stockholders of record on September 30, 2025 .

* Includes $ 1 restricted cash balance.

( 22) Subsequent Events

On February 25, 2026 , a quarterly dividend of $ 1.62 per share was declared at the Board of Directors meeting, payable on May 8, 2026 , to stockholders of record on March 31, 2026 .

On February 18, 2026, we acquired Tenna LLC (Tenna), a U.S.

construction technology company that offers mixed-fleet equipment operations and asset tracking solutions.

The purchase price, net of cash acquired, was $ 440 .

Tenna will be included in the CF operating segment.

Due to the recent closing of the acquisition, the formal process necessary to allocate the purchase price to the acquired assets and liabilities has not been completed.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements