DEERE & CO 10-Q

Item 1. Financial Statements ​ ​ ​ ​ ​ ​ ​ ​ DEERE & COMPANY ​ ​ ​ ​ ​ ​ ​ STATEMENTS OF CONSOLIDATED INCOME ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended February 1, 2026 and January 26, 2025 ​ ​ ​ ​ ​ ​ ​ (In millions of dollars and shares except per share amounts) Unaudited ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Net Sales and Revenues ​ ​ ​ ​ ​ ​ ​ Net sales $ 8,001 ​ $ 6,809 ​ Finance and interest income ​ ​ 1,343 ​ 1,453 ​ Other income ​ ​ 267 ​ 246 ​ Total ​ ​ 9,611 ​ 8,508 ​ ​ ​ ​ ​ ​ ​ ​ ​ Costs and Expenses ​ ​ ​ ​ ​ ​ ​ Cost of sales ​ ​ 6,280 ​ 5,037 ​ Research and development expenses ​ ​ 554 ​ 526 ​ Selling, administrative and general expenses ​ ​ 972 ​ 972 ​ Interest expense ​ ​ 719 ​ 829 ​ Other operating expenses ​ ​ 250 ​ 249 ​ Total ​ ​ 8,775 ​ 7,613 ​ ​ ​ ​ ​ ​ ​ ​ ​ Income of Consolidated Group before Income Taxes ​ ​ 836 ​ 895 ​ Provision for income taxes ​ ​ 196 ​ 27 ​ ​ ​ ​ ​ ​ ​ ​ ​ Income of Consolidated Group ​ ​ 640 ​ 868 ​ Equity in income (loss) of unconsolidated affiliates ​ ​ 15 ​ ( 1 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Income ​ ​ 655 ​ 867 ​ Less: Net loss attributable to noncontrolling interests ​ ​ ( 1 ) ​ ( 2 ) ​ Net Income Attributable to Deere & Company $ 656 ​ $ 869 ​ ​ ​ ​ ​ ​ ​ ​ ​ Per Share Data ​ ​ ​ ​ ​ ​ ​ Basic $ 2.43 ​ $ 3.20 ​ Diluted ​ 2.42 ​ ​ 3.19 ​ Dividends declared ​ ​ 1.62 ​ ​ 1.62 ​ Dividends paid ​ ​ 1.62 ​ ​ 1.47 ​ ​ ​ ​ ​ ​ ​ ​ ​ Average Shares Outstanding ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ 270.3 ​ 271.6 ​ Diluted ​ ​ 270.9 ​ 272.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ See Condensed Notes to Interim Consolidated Financial Statements. ​ ​ 2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DEERE & COMPANY ​ ​ ​ ​ ​ ​ ​ STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended February 1, 2026 and January 26, 2025 ​ ​ ​ ​ ​ ​ ​ (In millions of dollars) Unaudited ​ ​ ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Net Income $ 655 ​ $ 867 ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Comprehensive Income (Loss), Net of Income Taxes ​ ​ ​ ​ ​ ​ ​ Retirement benefits adjustment ​ ​ ( 1 ) ​ 3 ​ Cumulative translation adjustment ​ ​ 374 ​ ( 451 ) ​ Unrealized loss on derivatives ​ ​ ( 5 ) ​ ( 1 ) ​ Unrealized gain (loss) on debt securities ​ ​ 2 ​ ( 15 ) ​ Other Comprehensive Income (Loss), Net of Income Taxes ​ ​ 370 ​ ( 464 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive Income ​ ​ 1,025 ​ 403 ​ Less: Comprehensive income (loss) attributable to noncontrolling interests ​ ​ 2 ​ ( 5 ) ​ Comprehensive Income Attributable to Deere & Company $ 1,023 ​ $ 408 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ See Condensed Notes to Interim Consolidated Financial Statements. ​ ​ 3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DEERE & COMPANY ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATED BALANCE SHEETS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions of dollars) Unaudited ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1 ​ ​ ​ November 2 ​ ​ ​ January 26 ​ ​ 2026 ​ 2025 ​ 2025 Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents $ 6,798 ​ $ 8,276 ​ $ 6,601 ​ Marketable securities ​ ​ 1,398 ​ 1,411 ​ 1,214 ​ Trade accounts and notes receivable – net ​ ​ 5,993 ​ 5,317 ​ 4,931 ​ Financing receivables – net ​ ​ 42,113 ​ 44,575 ​ 41,396 ​ Financing receivables securitized – net ​ ​ 6,479 ​ 6,831 ​ 8,257 ​ Other receivables ​ ​ 2,411 ​ 2,403 ​ 2,979 ​ Equipment on operating leases – net ​ ​ 7,512 ​ 7,600 ​ 7,157 ​ Inventories ​ ​ 8,286 ​ 7,406 ​ 7,744 ​ Property and equipment – net ​ ​ 8,084 ​ 8,079 ​ 7,425 ​ Goodwill ​ ​ 4,280 ​ 4,188 ​ 3,872 ​ Other intangible assets – net ​ ​ 880 ​ 892 ​ 937 ​ Retirement benefits ​ ​ 3,378 ​ 3,273 ​ 3,018 ​ Deferred income taxes ​ ​ 2,268 ​ 2,284 ​ 1,852 ​ Other assets ​ ​ 3,556 ​ 3,461 ​ 2,807 ​ Assets held for sale ​ ​ ​ ​ ​ ​ ​ 2,929 ​ Total Assets $ 103,436 ​ $ 105,996 ​ $ 103,119 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders’ Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term borrowings ​ $ 14,392 ​ $ 13,796 ​ $ 12,811 ​ Short-term securitization borrowings ​ ​ 6,283 ​ 6,596 ​ 8,014 ​ Accounts payable and accrued expenses ​ ​ 12,533 ​ 13,909 ​ 12,162 ​ Deferred income taxes ​ ​ 434 ​ 434 ​ 448 ​ Long-term borrowings ​ ​ 41,804 ​ 43,544 ​ 43,556 ​ Retirement benefits and other liabilities ​ ​ 1,633 ​ 1,710 ​ 1,734 ​ Liabilities held for sale ​ ​ ​ ​ ​ ​ ​ 1,830 ​ Total liabilities ​ ​ 77,079 ​ 79,989 ​ 80,555 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commitments and contingencies (Note 17) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Redeemable noncontrolling interest ​ ​ 50 ​ ​ 51 ​ ​ 78 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders’ Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock, $ 1 par value (issued shares at February 1, 2026 – 536,431,204 ) ​ ​ 5,715 ​ 5,668 ​ 5,526 ​ Common stock in treasury ​ ​ ( 36,645 ) ​ ( 36,362 ) ​ ( 35,709 ) ​ Retained earnings ​ ​ 59,895 ​ 59,676 ​ 56,829 ​ Accumulated other comprehensive income (loss) ​ ​ ( 2,665 ) ​ ( 3,032 ) ​ ( 4,167 ) ​ Total Deere & Company stockholders’ equity ​ ​ 26,300 ​ 25,950 ​ 22,479 ​ Noncontrolling interests ​ ​ 7 ​ 6 ​ 7 ​ Total stockholders’ equity ​ ​ 26,307 ​ 25,956 ​ 22,486 ​ Total Liabilities and Stockholders’ Equity ​ $ 103,436 ​ $ 105,996 ​ $ 103,119 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ See Condensed Notes to Interim Consolidated Financial Statements. ​ 4 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DEERE & COMPANY ​ ​ ​ ​ ​ ​ ​ STATEMENTS OF CONSOLIDATED CASH FLOWS ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended February 1, 2026 and January 26, 2025 ​ ​ ​ ​ ​ ​ ​ (In millions of dollars) Unaudited ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Cash Flows from Operating Activities ​ ​ ​ ​ ​ ​ ​ Net income $ 655 ​ $ 867 ​ Adjustments to reconcile net income to net cash used for operating activities: ​ ​ ​ ​ ​ ​ ​ Provision for credit losses ​ ​ 36 ​ 69 ​ Depreciation and amortization ​ ​ 590 ​ 549 ​ Impairments and other adjustments ​ ​ ​ ​ ( 32 ) ​ Share-based compensation expense ​ ​ 41 ​ 28 ​ Provision for deferred income taxes ​ ​ 18 ​ 208 ​ Changes in assets and liabilities: ​ ​ ​ ​ ​ ​ ​ Receivables related to sales ​ ​ 350 ​ 1,063 ​ Inventories ​ ​ ( 746 ) ​ ( 795 ) ​ Accounts payable and accrued expenses ​ ​ ( 1,486 ) ​ ( 1,845 ) ​ Accrued income taxes payable/receivable ​ ​ ( 88 ) ​ ( 540 ) ​ Retirement benefits ​ ​ ( 194 ) ​ ( 688 ) ​ Other ​ ​ ( 66 ) ​ ( 16 ) ​ Net cash used for operating activities ​ ​ ( 890 ) ​ ( 1,132 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Investing Activities ​ ​ ​ ​ ​ ​ ​ Collections of receivables (excluding receivables related to sales) ​ ​ 8,098 ​ 8,137 ​ Proceeds from maturities and sales of marketable securities ​ ​ 144 ​ 61 ​ Proceeds from sales of equipment on operating leases ​ ​ 377 ​ 433 ​ Cost of receivables acquired (excluding receivables related to sales) ​ ​ ( 6,023 ) ​ ( 6,045 ) ​ Purchases of marketable securities ​ ​ ( 129 ) ​ ( 141 ) ​ Purchases of property and equipment ​ ​ ( 256 ) ​ ( 352 ) ​ Cost of equipment on operating leases acquired ​ ​ ( 432 ) ​ ( 439 ) ​ Collections of receivables from unconsolidated affiliates ​ ​ 105 ​ ​ ​ Collateral on derivatives – net ​ ​ ( 11 ) ​ ​ ( 191 ) ​ Other ​ ​ ( 51 ) ​ ( 47 ) ​ Net cash provided by investing activities ​ ​ 1,822 ​ 1,416 ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Financing Activities ​ ​ ​ ​ ​ ​ ​ Net proceeds (payments) in short-term borrowings (original maturities three months or less) ​ ​ 848 ​ ( 1,484 ) ​ Proceeds from borrowings issued (original maturities greater than three months) ​ ​ 780 ​ 3,168 ​ Payments of borrowings (original maturities greater than three months) ​ ​ ( 3,360 ) ​ ( 1,753 ) ​ Repurchases of common stock ​ ​ ( 302 ) ​ ( 441 ) ​ Dividends paid ​ ​ ( 441 ) ​ ( 403 ) ​ Other ​ ​ ( 15 ) ​ ( 10 ) ​ Net cash used for financing activities ​ ​ ( 2,490 ) ​ ( 923 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash ​ ​ 98 ​ ( 87 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Decrease in Cash, Cash Equivalents, and Restricted Cash ​ ​ ( 1,460 ) ​ ​ ( 726 ) ​ Cash, Cash Equivalents, and Restricted Cash at Beginning of Period ​ ​ 8,533 ​ 7,633 ​ Cash, Cash Equivalents, and Restricted Cash at End of Period ​ $ 7,073 ​ $ 6,907 ​ ​ ​ ​ ​ ​ ​ ​ ​ Components of Cash, Cash Equivalents, and Restricted Cash ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 6,798 ​ $ 6,601 ​ Cash, cash equivalents, and restricted cash (Assets held for sale) ​ ​ ​ ​ ​ 116 ​ Restricted cash (Other assets) ​ ​ 275 ​ ​ 190 ​ Total Cash, Cash Equivalents, and Restricted Cash ​ $ 7,073 ​ $ 6,907 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ See Condensed Notes to Interim Consolidated Financial Statements. ​ ​ 5 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DEERE & COMPANY ​ STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY ​ For the Three Months Ended February 1, 2026 and January 26, 2025 ​ (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 ​ Balance October 27, 2024 ​ $ 22,843 ​ $ 5,489 ​ $ ( 35,349 ) ​ $ 56,402 ​ $ ( 3,706 ) ​ $ 7 ​ ​ $ 82 ​ Net income (loss) ​ 869 ​ ​ ​ ​ ​ ​ ​ ​ 869 ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 2 ) ​ Other comprehensive loss ​ ( 461 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 461 ) ​ ​ ​ ​ ​ ​ ( 3 ) ​ Repurchases of common stock ​ ( 384 ) ​ ​ ​ ​ ​ ( 384 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Treasury shares reissued ​ 24 ​ ​ ​ ​ ​ 24 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends declared ​ ( 441 ) ​ ​ ​ ​ ​ ​ ​ ​ ( 441 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Share based awards and other ​ 36 ​ ​ 37 ​ ​ ​ ​ ​ ( 1 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ Balance January 26, 2025 ​ $ 22,486 ​ $ 5,526 ​ $ ( 35,709 ) ​ $ 56,829 ​ $ ( 4,167 ) ​ $ 7 ​ ​ $ 78 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance November 2, 2025 ​ $ 25,956 ​ $ 5,668 ​ $ ( 36,362 ) ​ $ 59,676 ​ $ ( 3,032 ) ​ $ 6 ​ ​ $ 51 ​ Net income (loss) ​ ​ 656 ​ ​ ​ ​ ​ ​ ​ ​ 656 ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 1 ) ​ Other comprehensive income ​ ​ 367 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 367 ​ ​ ​ ​ ​ ​ 3 ​ Repurchases of common stock ​ ​ ( 303 ) ​ ​ ( 4 ) ​ ​ ( 299 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Treasury shares reissued ​ ​ 16 ​ ​ ​ ​ ​ 16 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends declared ​ ​ ( 439 ) ​ ​ ​ ​ ​ ​ ​ ​ ( 439 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Share based awards and other ​ ​ 54 ​ ​ 51 ​ ​ ​ ​ ​ 2 ​ ​ ​ ​ ​ 1 ​ ​ ​ ( 3 ) ​ Balance February 1, 2026 ​ $ 26,307 ​ $ 5,715 ​ $ ( 36,645 ) ​ $ 59,895 ​ $ ( 2,665 ) ​ $ 7 ​ ​ $ 50 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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,” “Deere,” “we,” “us,” or “our” include our consolidated subsidiaries, unless otherwise stated. We manage our business through the following operating segments: 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 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 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. (BJD), an equity method investment that finances retail and wholesale loans for agricultural, construction, and forestry equipment in Brazil. This investment was established in February 2025 through the sale of 50 % ownership of a former subsidiary (see Note 21). 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 (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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1 ​ November 2 ​ ​ ​ 2026 ​ 2025 ​ Receivables from unconsolidated affiliates – "Other receivables" ​ $ 306 ​ $ 394 ​ Investments in unconsolidated affiliates – "Other assets" ​ ​ 389 ​ ​ 405 ​ Carrying value of assets related to VIE ​ ​ 695 ​ ​ 799 ​ Guarantees ​ ​ 164 ​ ​ 157 ​ Maximum exposure to loss ​ $ 859 ​ $ 956 ​ 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 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). 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. Accounting Pronouncements to be Adopted We closely monitor all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) and other authoritative guidance. 7 ​ 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 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): Disaggregation of Income Statement Expenses, which expands disclosures about specific expense categories presented on the face of the income statement. In January 2025, the FASB issued ASU 2025-01 , Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40), which clarifies the effective date of ASU 2024-03. The ASU will be effective for us beginning with our annual reporting for fiscal year 2028 and interim periods thereafter. We are assessing the effect of ASU 2024-03 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 ASU will be effective for us beginning with our annual reporting for fiscal year 2026. 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. ​ ​ No. 2025-12 — Codification Improvements ​ No. 2025-11 — Interim Reporting (Topic 270): Narrow-Scope Improvements ​ No. 2025-09 — Derivatives and Hedging (Topic 815): Hedge Accounting Improvements ​ No. 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 ​ No. 2025-05 — Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets ​ No. 2024-04 — Debt – Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments ​ No. 2023-06 — Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative ​ ​ 8 ​ (3)    Revenue Recognition Our net sales and revenues by primary geographic market, major product line, and timing of revenue recognition follow: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended February 1, 2026 ​ PPA ​ SAT ​ CF ​ FS ​ Total ​ Primary geographic markets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 1,226 ​ $ 1,106 ​ $ 1,577 ​ $ 1,051 ​ $ 4,960 ​ Canada ​ ​ 398 ​ ​ 101 ​ ​ 136 ​ 191 ​ 826 ​ Western Europe ​ ​ 464 ​ ​ 486 ​ ​ 426 ​ 54 ​ 1,430 ​ Central Europe and CIS ​ ​ 172 ​ ​ 60 ​ ​ 76 ​ 2 ​ 310 ​ Latin America ​ ​ 684 ​ ​ 95 ​ ​ 231 ​ 32 ​ 1,042 ​ Asia, Africa, Oceania, and Middle East ​ ​ 325 ​ ​ 376 ​ ​ 288 ​ ​ 54 ​ ​ 1,043 ​ Total ​ $ 3,269 ​ $ 2,224 ​ $ 2,734 ​ $ 1,384 ​ $ 9,611 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Major product lines: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production agriculture ​ $ 3,093 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 3,093 ​ Small agriculture ​ ​ ​ ​ $ 1,527 ​ ​ ​ ​ ​ ​ 1,527 ​ Turf ​ ​ ​ ​ ​ 576 ​ ​ ​ ​ ​ ​ 576 ​ Construction ​ ​ ​ ​ ​ ​ ​ $ 1,111 ​ ​ ​ 1,111 ​ Compact construction ​ ​ ​ ​ ​ ​ ​ ​ 468 ​ ​ ​ ​ ​ 468 ​ Roadbuilding ​ ​ ​ ​ ​ ​ ​ ​ 772 ​ ​ ​ 772 ​ Forestry ​ ​ ​ ​ ​ ​ ​ ​ 269 ​ ​ ​ 269 ​ Financial products ​ ​ 57 ​ ​ 27 ​ ​ 18 ​ $ 1,384 ​ 1,486 ​ Other ​ ​ 119 ​ ​ 94 ​ ​ 96 ​ ​ ​ 309 ​ Total ​ $ 3,269 ​ $ 2,224 ​ $ 2,734 ​ $ 1,384 ​ $ 9,611 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue recognized: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At a point in time ​ $ 3,164 ​ $ 2,174 ​ $ 2,695 ​ $ 33 ​ $ 8,066 ​ Over time ​ ​ 105 ​ ​ 50 ​ ​ 39 ​ ​ 1,351 ​ ​ 1,545 ​ Total ​ $ 3,269 ​ $ 2,224 ​ $ 2,734 ​ $ 1,384 ​ $ 9,611 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended January 26, 2025 ​ PPA ​ SAT ​ CF ​ FS ​ Total ​ Primary geographic markets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 1,555 ​ $ 949 ​ $ 1,113 ​ $ 1,085 ​ $ 4,702 ​ Canada ​ ​ 354 ​ ​ 79 ​ ​ 101 ​ 187 ​ 721 ​ Western Europe ​ ​ 277 ​ ​ 352 ​ ​ 344 ​ 43 ​ 1,016 ​ Central Europe and CIS ​ ​ 67 ​ ​ 39 ​ ​ 71 ​ 4 ​ 181 ​ Latin America ​ ​ 715 ​ ​ 80 ​ ​ 205 ​ 96 ​ 1,096 ​ Asia, Africa, Oceania, and Middle East ​ ​ 205 ​ ​ 308 ​ ​ 224 ​ ​ 55 ​ ​ 792 ​ Total ​ $ 3,173 ​ $ 1,807 ​ $ 2,058 ​ $ 1,470 ​ $ 8,508 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Major product lines: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production agriculture ​ $ 3,002 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 3,002 ​ Small agriculture ​ ​ ​ ​ $ 1,234 ​ ​ ​ ​ ​ ​ 1,234 ​ Turf ​ ​ ​ ​ ​ 463 ​ ​ ​ ​ ​ ​ 463 ​ Construction ​ ​ ​ ​ ​ ​ ​ $ 770 ​ ​ ​ 770 ​ Compact construction ​ ​ ​ ​ ​ ​ ​ ​ 361 ​ ​ ​ ​ ​ 361 ​ Roadbuilding ​ ​ ​ ​ ​ ​ ​ ​ 596 ​ ​ ​ 596 ​ Forestry ​ ​ ​ ​ ​ ​ ​ ​ 226 ​ ​ ​ 226 ​ Financial products ​ ​ 55 ​ ​ 33 ​ ​ 21 ​ $ 1,470 ​ 1,579 ​ Other ​ ​ 116 ​ ​ 77 ​ ​ 84 ​ ​ ​ 277 ​ Total ​ $ 3,173 ​ $ 1,807 ​ $ 2,058 ​ $ 1,470 ​ $ 8,508 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue recognized: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At a point in time ​ $ 3,086 ​ $ 1,760 ​ $ 2,028 ​ $ 29 ​ $ 6,903 ​ Over time ​ ​ 87 ​ ​ 47 ​ ​ 30 ​ ​ 1,441 ​ ​ 1,605 ​ Total ​ $ 3,173 ​ $ 1,807 ​ $ 2,058 ​ $ 1,470 ​ $ 8,508 ​ ​ 9 ​ We invoice in advance of recognizing the revenue of certain products and 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 $ 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 $ 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: remainder of 2026 – $ 465 , 2027 – $ 529 , 2028 – $ 351 , 2029 – $ 213 , 2030 – $ 127 , 2031 – $ 77 , and later years – $ 49 . 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1 ​ November 2 ​ January 26 ​ ​ ​ 2026 ​ 2025 ​ 2025 ​ Retirement benefits adjustment ​ $ ( 1,183 ) ​ $ ( 1,182 ) ​ $ ( 1,271 ) ​ Cumulative translation adjustment ​ ​ ( 1,382 ) ​ ​ ( 1,753 ) ​ ​ ( 2,734 ) ​ Unrealized loss on derivatives ​ ​ ( 59 ) ​ ​ ( 54 ) ​ ​ ( 73 ) ​ Unrealized loss on debt securities ​ ​ ( 41 ) ​ ​ ( 43 ) ​ ​ ( 89 ) ​ Accumulated other comprehensive income (loss) ​ $ ( 2,665 ) ​ $ ( 3,032 ) ​ $ ( 4,167 ) ​ ​ 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 February 1, 2026 ​ Amount ​ Credit ​ Amount Cumulative translation adjustment $ 371 ​ ​ ​ ​ $ 371 ​ Unrealized gain (loss) on derivatives: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized hedging gain (loss) ​ ​ ( 2 ) ​ ​ ​ ​ ​ ( 2 ) ​ Reclassification of realized (gain) loss to Interest expense ​ ​ ( 4 ) ​ $ 1 ​ ​ ( 3 ) ​ Net unrealized gain (loss) on derivatives ​ ​ ( 6 ) ​ ​ 1 ​ ​ ( 5 ) ​ Unrealized gain (loss) on debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gain (loss) ​ ​ 4 ​ ​ ( 2 ) ​ ​ 2 ​ Net unrealized gain (loss) on debt securities ​ ​ 4 ​ ​ ( 2 ) ​ ​ 2 ​ Retirement benefits adjustment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reclassification to Other operating expenses through amortization of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actuarial (gain) loss ​ ​ ( 12 ) ​ ​ 3 ​ ​ ( 9 ) ​ Prior service (credit) cost ​ ​ 10 ​ ​ ( 2 ) ​ ​ 8 ​ Net unrealized gain (loss) on retirement benefits adjustment ​ ​ ( 2 ) ​ ​ 1 ​ ​ ( 1 ) ​ Total other comprehensive income (loss) $ 367 ​ ​ ​ ​ $ 367 ​ ​ ​ 10 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Before ​ ​ ​ Tax ​ ​ ​ After ​ ​ Tax ​ (Expense) ​ Tax Three Months Ended January 26, 2025 ​ Amount ​ Credit ​ Amount Cumulative translation adjustment ​ $ ( 449 ) ​ $ 1 ​ $ ( 448 ) ​ Unrealized gain (loss) on derivatives: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized hedging gain (loss) ​ ​ 7 ​ ​ ( 2 ) ​ ​ 5 ​ Reclassification of realized (gain) loss to Interest expense ​ ​ ( 8 ) ​ ​ 2 ​ ​ ( 6 ) ​ Net unrealized gain (loss) on derivatives ​ ​ ( 1 ) ​ ​ ​ ​ ​ ( 1 ) ​ Unrealized gain (loss) on debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gain (loss) ​ ​ ( 19 ) ​ ​ 4 ​ ​ ( 15 ) ​ Net unrealized gain (loss) on debt securities ​ ​ ( 19 ) ​ ​ 4 ​ ​ ( 15 ) ​ Retirement benefits adjustment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net actuarial gain (loss) ​ ​ 6 ​ ​ ( 1 ) ​ ​ 5 ​ Reclassification to Other operating expenses through amortization of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actuarial (gain) loss ​ ​ ( 11 ) ​ ​ 3 ​ ​ ( 8 ) ​ Prior service (credit) cost ​ ​ 9 ​ ​ ( 3 ) ​ ​ 6 ​ Net unrealized gain (loss) on retirement benefits adjustment ​ ​ 4 ​ ​ ( 1 ) ​ ​ 3 ​ Total other comprehensive income (loss) ​ $ ( 465 ) ​ $ 4 ​ $ ( 461 ) ​ ​ ​ ​ ​ (5)    EARNINGS Per Share A reconciliation of basic and diluted earnings per share attributable to Deere & Company follows in millions, except per share amounts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ February 1 ​ January 26 ​ ​ ​ 2026 ​ 2025 ​ Net income attributable to Deere & Company ​ ​ ​ $ 656 ​ ​ ​ $ 869 ​ Average shares outstanding ​ ​ 270.3 ​ 271.6 ​ Basic earnings per share ​ $ 2.43 ​ $ 3.20 ​ ​ ​ ​ ​ ​ ​ ​ ​ Average shares outstanding ​ ​ 270.3 ​ 271.6 ​ Effect of dilutive stock options and unvested restricted stock units ​ ​ .6 ​ .7 ​ Total potential shares outstanding ​ ​ 270.9 ​ 272.3 ​ Diluted earnings per share ​ $ 2.42 ​ $ 3.19 ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares excluded as antidilutive ​ ​ .2 ​ ​ .3 ​ ​ (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 excluding the service cost component are included in the line item “Other operating expenses.” 11 ​ The components of net periodic pension and OPEB (benefit) cost consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ February 1 ​ January 26 ​ ​ 2026 ​ 2025 Pensions: ​ ​ ​ ​ ​ ​ ​ Service cost ​ $ 59 ​ ​ ​ $ 65 ​ Interest cost ​ ​ 125 ​ 128 ​ Expected return on plan assets ​ ​ ( 249 ) ​ ( 254 ) ​ Amortization of actuarial gain ​ ​ ( 2 ) ​ ( 1 ) ​ Amortization of prior service cost ​ ​ 10 ​ 10 ​ Net benefit ​ $ ( 57 ) ​ $ ( 52 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ OPEB: ​ ​ ​ ​ ​ ​ ​ Service cost ​ $ 4 ​ $ 5 ​ Interest cost ​ ​ 37 ​ 40 ​ Expected return on plan assets ​ ​ ( 41 ) ​ ( 28 ) ​ Amortization of actuarial gain ​ ​ ( 10 ) ​ ( 10 ) ​ Amortization of prior service credit ​ ​ ​ ​ ( 1 ) ​ Net (benefit) cost ​ $ ( 10 ) ​ $ 6 ​ ​ During the first three months of 2026, we contributed and expect to contribute the following amounts to our pension and OPEB plans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pensions ​ OPEB ​ Contributed ​ $ 30 ​ $ 110 ​ Expected contributions remainder of the year ​ ​ 70 ​ 40 ​ ​ ​ (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 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 12 ​ 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 PPA SAT CF FS Total External net sales ​ $ 3,163 ​ $ 2,168 ​ $ 2,670 ​ ​ ​ ​ $ 8,001 ​ External finance and interest income ​ ​ 12 ​ ​ 10 ​ ​ 5 ​ $ 1,260 ​ ​ 1,287 ​ External other income ​ 57 ​ 36 ​ 48 ​ 124 ​ 265 ​ Intersegment income ​ 54 ​ ​ 9 ​ ​ 8 ​ 104 ​ 175 ​ Total segment net sales and revenues ​ 3,286 ​ 2,223 ​ 2,731 ​ 1,488 ​ 9,728 ​ Cost of sales ​ ​ ( 2,476 ) ​ ​ ( 1,633 ) ​ ​ ( 2,182 ) ​ ​ ​ ​ ​ ( 6,291 ) ​ Interest expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 664 ) ​ ​ ( 664 ) ​ Other segment items* ​ ​ ( 671 ) ​ ​ ( 394 ) ​ ​ ( 412 ) ​ ​ ( 523 ) ​ ​ ( 2,000 ) ​ Segment operating profit ​ $ 139 ​ $ 196 ​ $ 137 ​ $ 301 ​ $ 773 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended January 26, 2025 PPA ​ SAT ​ CF ​ FS ​ Total ​ External net sales ​ $ 3,067 ​ $ 1,748 ​ $ 1,994 ​ ​ ​ ​ $ 6,809 ​ External finance and interest income ​ ​ 9 ​ ​ 9 ​ ​ 2 ​ $ 1,363 ​ ​ 1,383 ​ External other income ​ 56 ​ 33 ​ 45 ​ 107 ​ 241 ​ Intersegment income ​ 57 ​ ​ 5 ​ ​ 2 ​ 103 ​ 167 ​ Total segment net sales and revenues ​ 3,189 ​ 1,795 ​ 2,043 ​ 1,573 ​ 8,600 ​ Cost of sales ​ ​ ( 2,164 ) ​ ​ ( 1,297 ) ​ ​ ( 1,584 ) ​ ​ ​ ​ ​ ( 5,045 ) ​ Interest expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 766 ) ​ ​ ( 766 ) ​ Other segment items* ​ ​ ( 687 ) ​ ​ ( 374 ) ​ ​ ( 394 ) ​ ​ ( 541 ) ​ ​ ( 1,996 ) ​ Segment operating profit ​ $ 338 ​ $ 124 ​ $ 65 ​ $ 266 ​ $ 793 ​ * Other segment items for PPA, SAT, and CF include selling, administrative and general expenses; advertising; engineering; 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 ​ ​ February 1 ​ January 26 ​ ​ ​ 2026 ​ 2025 ​ Reconciliation of net sales and revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment net sales and revenues ​ $ 9,728 ​ $ 8,600 ​ External other income* ​ ​ 58 ​ ​ 75 ​ Elimination of intersegment revenues ​ ( 175 ) ​ ( 167 ) ​ Net sales and revenues ​ $ 9,611 ​ $ 8,508 ​ ​ ​ ​ ​ ​ ​ ​ ​ Reconciliation of net income ​ ​ ​ ​ Segment operating profit ​ $ 773 ​ $ 793 ​ Interest income – excluding FS ​ ​ 93 ​ ​ 90 ​ Interest expense – excluding FS ​ ( 93 ) ​ ( 84 ) ​ Pension and OPEB benefit, excluding service cost component ​ 130 ​ 116 ​ Corporate other – net** ​ ( 52 ) ​ ( 21 ) ​ Income taxes ​ ( 196 ) ​ ​ ( 27 ) ​ Net income ​ $ 655 ​ $ 867 ​ * 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. 13 ​ Additional operating segment information was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ February 1 ​ January 26 ​ ​ ​ 2026 ​ 2025 Depreciation* and amortization expense ​ PPA ​ $ 171 ​ $ 166 ​ SAT ​ ​ 75 ​ ​ 65 ​ CF ​ 96 ​ 88 ​ FS ​ 274 ​ 265 ​ Intersegment ​ ​ ( 26 ) ​ ​ ( 35 ) ​ Total ​ $ 590 ​ $ 549 ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital additions ​ PPA ​ $ 74 ​ $ 87 ​ SAT ​ ​ 32 ​ ​ 35 ​ CF ​ 48 ​ 78 ​ FS ​ ​ ​ ​ ​ Total ​ $ 154 ​ $ 200 ​ * Depreciation includes depreciation for equipment on operating leases. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1 ​ November 2 ​ January 26 ​ ​ ​ 2026 ​ 2025 ​ 2025 ​ Total Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PPA ​ $ 9,123 ​ $ 8,787 ​ $ 8,773 ​ SAT ​ ​ 4,335 ​ ​ 3,987 ​ ​ 4,179 ​ CF ​ 8,043 ​ 7,792 ​ 7,237 ​ FS ​ 67,904 ​ 70,021 ​ 69,686 ​ Corporate* ​ 14,031 ​ 15,409 ​ 13,244 ​ Total Assets ​ $ 103,436 ​ $ 105,996 ​ $ 103,119 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity investment in unconsolidated affiliates ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PPA ​ $ 10 ​ $ 11 ​ $ 12 ​ SAT ​ ​ 38 ​ ​ 37 ​ ​ 59 ​ CF ​ ​ ​ ​ ​ ​ ​ FS ​ 450 ​ 462 ​ 48 ​ Total ​ $ 498 ​ $ 510 ​ $ 119 ​ * 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 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. 14 ​ 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1, 2026 ​ ​ ​ 2026 ​ 2025 ​ 2024 ​ 2023 ​ 2022 ​ Prior Years ​ Revolving Charge Accounts ​ Total ​ Retail customer receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 2,265 ​ $ 11,250 ​ $ 7,550 ​ $ 4,637 ​ $ 2,574 ​ $ 1,218 ​ $ 3,210 ​ $ 32,704 ​ 30-59 days past due ​ ​ 6 ​ ​ 117 ​ ​ 89 ​ ​ 57 ​ ​ 30 ​ ​ 15 ​ ​ 100 ​ ​ 414 ​ 60-89 days past due ​ ​ ​ ​ ​ 44 ​ ​ 38 ​ ​ 25 ​ ​ 14 ​ ​ 6 ​ ​ 12 ​ ​ 139 ​ 90+ days past due ​ ​ ​ ​ ​ 2 ​ ​ 2 ​ ​ 1 ​ ​ 1 ​ ​ 2 ​ ​ ​ ​ ​ 8 ​ Non-performing ​ ​ ​ ​ ​ 52 ​ ​ 141 ​ ​ 102 ​ ​ 63 ​ ​ 46 ​ ​ 12 ​ ​ 416 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 953 ​ ​ 2,915 ​ ​ 1,793 ​ ​ 865 ​ ​ 362 ​ ​ 92 ​ ​ 108 ​ ​ 7,088 ​ 30-59 days past due ​ ​ 7 ​ ​ 68 ​ ​ 52 ​ ​ 33 ​ ​ 11 ​ ​ 5 ​ ​ 5 ​ ​ 181 ​ 60-89 days past due ​ ​ ​ ​ ​ 23 ​ ​ 27 ​ ​ 14 ​ ​ 4 ​ ​ 2 ​ ​ 2 ​ ​ 72 ​ 90+ days past due ​ ​ ​ ​ ​ 1 ​ ​ 7 ​ ​ 2 ​ ​ 3 ​ ​ ​ ​ ​ ​ ​ ​ 13 ​ Non-performing ​ ​ ​ ​ ​ 48 ​ ​ 90 ​ ​ 71 ​ ​ 33 ​ ​ 23 ​ ​ 1 ​ ​ 266 ​ Total retail customer receivables ​ $ 3,231 ​ $ 14,520 ​ $ 9,789 ​ $ 5,807 ​ $ 3,095 ​ $ 1,409 ​ $ 3,450 ​ $ 41,301 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Write-offs for the three months ended February 1, 2026: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agriculture and turf ​ ​ ​ ​ $ 4 ​ $ 7 ​ $ 6 ​ $ 3 ​ $ 2 ​ $ 9 ​ $ 31 ​ Construction and forestry ​ ​ ​ ​ ​ 8 ​ ​ 7 ​ ​ 7 ​ ​ 2 ​ ​ 1 ​ ​ 1 ​ ​ 26 ​ Total ​ ​ ​ ​ $ 12 ​ $ 14 ​ $ 13 ​ $ 5 ​ $ 3 ​ $ 10 ​ $ 57 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ November 2, 2025 ​ ​ ​ 2025 ​ 2024 ​ 2023 ​ 2022 ​ 2021 ​ Prior Years ​ Revolving Charge Accounts ​ Total ​ Retail customer receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 12,380 ​ $ 8,389 ​ $ 5,228 ​ $ 3,003 ​ $ 1,310 ​ $ 281 ​ $ 4,608 ​ $ 35,199 ​ 30-59 days past due ​ ​ 36 ​ ​ 73 ​ ​ 59 ​ ​ 38 ​ ​ 15 ​ ​ 7 ​ ​ 37 ​ ​ 265 ​ 60-89 days past due ​ ​ 14 ​ ​ 37 ​ ​ 28 ​ ​ 13 ​ ​ 8 ​ ​ 2 ​ ​ 10 ​ ​ 112 ​ 90+ days past due ​ ​ 1 ​ ​ 2 ​ ​ ​ ​ ​ 1 ​ ​ 2 ​ ​ ​ ​ ​ ​ ​ ​ 6 ​ Non-performing ​ ​ 41 ​ ​ 109 ​ ​ 98 ​ ​ 57 ​ ​ 30 ​ ​ 17 ​ ​ 14 ​ ​ 366 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 3,175 ​ ​ 2,038 ​ ​ 1,034 ​ ​ 463 ​ ​ 130 ​ ​ 12 ​ ​ 124 ​ ​ 6,976 ​ 30-59 days past due ​ ​ 42 ​ ​ 47 ​ ​ 31 ​ ​ 12 ​ ​ 4 ​ ​ 1 ​ ​ 5 ​ ​ 142 ​ 60-89 days past due ​ ​ 21 ​ ​ 17 ​ ​ 12 ​ ​ 8 ​ ​ 1 ​ ​ 1 ​ ​ 2 ​ ​ 62 ​ 90+ days past due ​ ​ 1 ​ ​ 6 ​ ​ 3 ​ ​ 2 ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ 13 ​ Non-performing ​ ​ 31 ​ ​ 94 ​ ​ 78 ​ ​ 38 ​ ​ 19 ​ ​ 7 ​ ​ 1 ​ ​ 268 ​ Total retail customer receivables ​ $ 15,742 ​ $ 10,812 ​ $ 6,571 ​ $ 3,635 ​ $ 1,519 ​ $ 329 ​ $ 4,801 ​ $ 43,409 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Write-offs for the twelve months ended November 2, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agriculture and turf ​ $ 6 ​ $ 32 ​ $ 34 ​ $ 21 ​ $ 9 ​ $ 7 ​ $ 102 ​ $ 211 ​ Construction and forestry ​ ​ 9 ​ ​ 38 ​ ​ 29 ​ ​ 12 ​ ​ 3 ​ ​ 3 ​ ​ 7 ​ ​ 101 ​ Total ​ $ 15 ​ $ 70 ​ $ 63 ​ $ 33 ​ $ 12 ​ $ 10 ​ $ 109 ​ $ 312 ​ ​ 15 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 26, 2025 ​ ​ ​ 2025 ​ 2024 ​ 2023 ​ 2022 ​ 2021 ​ Prior Years ​ Revolving Charge Accounts ​ Total ​ Retail customer receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 2,421 ​ $ 12,687 ​ $ 7,437 ​ $ 4,560 ​ $ 2,387 ​ $ 903 ​ $ 3,027 ​ $ 33,422 ​ 30-59 days past due ​ ​ 8 ​ ​ 113 ​ ​ 94 ​ ​ 51 ​ ​ 27 ​ ​ 12 ​ ​ 128 ​ ​ 433 ​ 60-89 days past due ​ ​ 1 ​ ​ 44 ​ ​ 38 ​ ​ 21 ​ ​ 10 ​ ​ 5 ​ ​ 24 ​ ​ 143 ​ 90+ days past due ​ ​ ​ ​ ​ 2 ​ ​ 1 ​ ​ ​ ​ ​ 4 ​ ​ ​ ​ ​ ​ ​ ​ 7 ​ Non-performing ​ ​ ​ ​ ​ 44 ​ ​ 120 ​ ​ 81 ​ ​ 49 ​ ​ 33 ​ ​ 15 ​ ​ 342 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 883 ​ ​ 2,834 ​ ​ 1,614 ​ ​ 880 ​ ​ 349 ​ ​ 73 ​ ​ 99 ​ ​ 6,732 ​ 30-59 days past due ​ ​ 7 ​ ​ 72 ​ ​ 45 ​ ​ 29 ​ ​ 11 ​ ​ 3 ​ ​ 5 ​ ​ 172 ​ 60-89 days past due ​ ​ ​ ​ ​ 30 ​ ​ 21 ​ ​ 11 ​ ​ 4 ​ ​ 1 ​ ​ 3 ​ ​ 70 ​ 90+ days past due ​ ​ ​ ​ ​ 4 ​ ​ 2 ​ ​ 3 ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ 10 ​ Non-performing ​ ​ ​ ​ ​ 66 ​ ​ 100 ​ ​ 56 ​ ​ 33 ​ ​ 15 ​ ​ 1 ​ ​ 271 ​ Total retail customer receivables ​ $ 3,320 ​ $ 15,896 ​ $ 9,472 ​ $ 5,692 ​ $ 2,874 ​ $ 1,046 ​ $ 3,302 ​ $ 41,602 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Write-offs for the three months ended January 26, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agriculture and turf ​ ​ ​ ​ $ 5 ​ $ 9 ​ $ 6 ​ $ 2 ​ $ 3 ​ $ 10 ​ $ 35 ​ Construction and forestry ​ ​ ​ ​ ​ 9 ​ ​ 8 ​ ​ 4 ​ ​ 1 ​ ​ 1 ​ ​ 3 ​ ​ 26 ​ Total ​ ​ ​ ​ $ 14 ​ $ 17 ​ $ 10 ​ $ 3 ​ $ 4 ​ $ 13 ​ $ 61 ​ ​ The credit quality and aging analysis of wholesale receivables was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1 ​ ​ ​ November 2 ​ ​ ​ January 26 ​ ​ 2026 ​ 2025 ​ 2025 ​ Wholesale receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 6,128 ​ $ 6,731 ​ $ 7,098 ​ 30+ days past due ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ Non-performing ​ ​ 3 ​ ​ ​ ​ ​ 1 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 1,407 ​ 1,524 ​ 1,200 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ Non-performing ​ ​ 6 ​ ​ ​ ​ ​ Total wholesale receivables $ 7,545 ​ $ 8,255 ​ $ 8,299 ​ ​ An analysis of the allowance for credit losses and investment in financing receivables follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended February 1, 2026 ​ ​ ​ Retail Notes ​ Revolving ​ ​ ​ ​ ​ ​ ​ ​ ​ & Financing ​ Charge ​ Wholesale ​ ​ ​ ​ ​ ​ Leases ​ Accounts ​ Receivables ​ Total ​ Allowance: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning of period balance $ 249 $ 7 ​ $ 2 ​ $ 258 ​ Provision (credit) ​ ​ 38 ​ ​ ( 1 ) ​ ​ ​ ​ ​ 37 ​ Write-offs ​ ​ ( 47 ) ​ ​ ( 10 ) ​ ​ ​ ​ ​ ( 57 ) ​ Recoveries ​ ​ 4 ​ ​ 11 ​ ​ ​ ​ ​ 15 ​ Translation adjustments ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ End of period balance $ 245 $ 7 ​ $ 2 ​ $ 254 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financing receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ End of period balance $ 37,851 $ 3,450 ​ $ 7,545 ​ $ 48,846 ​ ​ 16 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended January 26, 2025 ​ ​ Retail Notes ​ Revolving ​ ​ ​ ​ ​ ​ ​ ​ & Financing ​ Charge ​ Wholesale ​ ​ ​ ​ ​ Leases ​ Accounts ​ Receivables ​ Total ​ Allowance: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning of period balance ​ $ 219 $ 8 ​ $ 2 ​ $ 229 ​ Provision ​ 68 ​ ​ 2 ​ ​ ​ ​ 70 ​ Write-offs ​ ( 48 ) ​ ​ ( 13 ) ​ ​ ​ ​ ( 61 ) ​ Recoveries ​ 2 ​ ​ 9 ​ ​ ​ ​ 11 ​ Translation adjustments ​ ( 1 ) ​ ​ ​ ​ ​ ​ ​ ( 1 ) ​ End of period balance ​ $ 240 ​ $ 6 ​ $ 2 ​ $ 248 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financing receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ End of period balance ​ $ 38,300 $ 3,302 ​ $ 8,299 ​ $ 49,901 ​ ​ 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 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. 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. Therefore, additional adjustments to the allowance are generally not recorded upon modification of a loan. The ending amortized cost of financing receivables modified with borrowers experiencing financial difficulty was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ February 1 ​ January 26 ​ ​ ​ 2026 ​ 2025 ​ Modified financing receivables ​ $ 64 ​ $ 28 ​ Percent of financing receivables portfolio ​ ​ 0.13 % ​ ​ 0.06 % ​ ​ 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 ​ ​ ​ February 1 ​ January 26 ​ ​ ​ 2026 ​ 2025 ​ Payment deferral ​ 7 ​ 8 ​ Term extension ​ 12 ​ 12 ​ Combination modifications ​ ​ ​ ​ ​ Payment deferral ​ 10 ​ 4 ​ Term extension ​ 20 ​ 6 ​ ​ 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 February 1, 2026, and January 26, 2025, were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1 ​ ​ ​ January 26 ​ ​ 2026 ​ 2025 ​ Current $ 169 ​ $ 74 ​ 30-59 days past due ​ ​ 13 ​ ​ 7 ​ 60-89 days past due ​ ​ 8 ​ ​ 4 ​ 90+ days past due ​ ​ ​ ​ ​ 3 ​ Non-performing ​ ​ 18 ​ ​ 13 ​ Total $ 208 ​ $ 101 ​ ​ 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. 17 ​ (10)    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 secured borrowings. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1 ​ ​ ​ November 2 ​ ​ ​ January 26 ​ ​ 2026 ​ 2025 ​ 2025 Financing receivables securitized (retail notes) $ 6,518 ​ $ 6,872 ​ $ 8,307 ​ Allowance for credit losses ​ ​ ( 39 ) ​ ( 41 ) ​ ( 50 ) ​ Other assets (primarily restricted cash) ​ ​ 168 ​ 171 ​ 182 ​ Total restricted securitized assets $ 6,647 ​ $ 7,002 ​ $ 8,439 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term securitization borrowings ​ $ 6,283 ​ $ 6,596 ​ $ 8,014 ​ Accrued interest on borrowings ​ ​ 13 ​ ​ 15 ​ 11 ​ Total liabilities related to restricted securitized assets ​ $ 6,296 ​ $ 6,611 ​ $ 8,025 ​ ​ ​ (11)    Inventories A majority of inventories owned by us are valued at cost on the “last-in, first-out” (LIFO) basis. If all inventories valued on a LIFO basis had been valued on a “first-in, first-out” (FIFO) basis, the estimated inventories by major classification would have been as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1 ​ ​ ​ November 2 ​ ​ ​ January 26 ​ ​ 2026 ​ 2025 ​ 2025 Raw materials and supplies $ 3,738 ​ $ 3,402 ​ $ 3,549 ​ Work-in-process ​ ​ 1,106 ​ 956 ​ 1,046 ​ Finished goods and parts ​ ​ 6,351 ​ 5,769 ​ 6,055 ​ Total FIFO value ​ ​ 11,195 ​ 10,127 ​ 10,650 ​ Excess of FIFO over LIFO ​ ​ 2,909 ​ 2,721 ​ 2,906 ​ Inventories $ 8,286 ​ $ 7,406 ​ $ 7,744 ​ ​ (12)    Goodwill and Other Intangible Assets – Net The changes in amounts of goodwill by operating segments were as follows. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PPA ​ SAT ​ CF ​ Total Goodwill at October 27, 2024 ​ $ 701 ​ $ 365 ​ $ 2,893 ​ $ 3,959 ​ Translation adjustments ​ ( 11 ) ​ ​ ( 4 ) ​ ​ ( 72 ) ​ ( 87 ) ​ Goodwill at January 26, 2025 ​ $ 690 ​ $ 361 ​ $ 2,821 ​ $ 3,872 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill at November 2, 2025 ​ $ 744 ​ $ 393 ​ $ 3,051 ​ $ 4,188 ​ Translation adjustments ​ ​ 6 ​ ​ 3 ​ ​ 83 ​ ​ 92 ​ Goodwill at February 1, 2026 ​ $ 750 ​ $ 396 ​ $ 3,134 ​ $ 4,280 ​ ​ 18 ​ The components of other intangible assets were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1 ​ ​ ​ November 2 ​ ​ ​ January 26 ​ ​ 2026 ​ 2025 ​ 2025 Customer lists and relationships $ 491 ​ $ 482 ​ $ 490 ​ Technology, patents, trademarks, and other ​ ​ 1,554 ​ 1,518 ​ 1,392 ​ Total at cost ​ ​ 2,045 ​ 2,000 ​ 1,882 ​ Less accumulated amortization: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer lists and relationships ​ ​ ( 272 ) ​ ​ ( 260 ) ​ ​ ( 229 ) ​ Technology, patents, trademarks, and other ​ ​ ( 893 ) ​ ​ ( 848 ) ​ ​ ( 716 ) ​ Total accumulated amortization ​ ​ ( 1,165 ) ​ ​ ( 1,108 ) ​ ​ ( 945 ) ​ Other intangible assets – net $ 880 ​ $ 892 ​ $ 937 ​ ​ 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: remainder of 2026 – $ 109 , 2027 – $ 136 , 2028 – $ 99 , 2029 – $ 82 , 2030 – $ 74 , and 2031 – $ 72 . ​ (13)    Short-Term Borrowings Short-term borrowings were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1 ​ ​ ​ November 2 ​ ​ ​ January 26 ​ ​ ​ 2026 ​ 2025 ​ 2025 ​ Commercial paper ​ $ 4,327 ​ $ 4,218 ​ $ 2,699 ​ Notes payable to banks ​ ​ 685 ​ ​ 651 ​ ​ 561 ​ Finance lease obligations due within one year ​ ​ 38 ​ ​ 39 ​ ​ 34 ​ Long-term borrowings due within one year ​ 9,342 ​ 8,888 ​ 9,517 ​ Short-term borrowings ​ $ 14,392 ​ $ 13,796 ​ $ 12,811 ​ ​ ​ (14)   Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1 ​ November 2 ​ January 26 ​ ​ 2026 ​ 2025 ​ 2025 ​ Accounts payable: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trade payables ​ $ 2,987 ​ $ 2,985 ​ $ 2,393 ​ Dividends payable ​ 441 ​ 443 ​ 443 ​ Operating lease liabilities ​ ​ 320 ​ ​ 314 ​ ​ 274 ​ Deposits withheld from dealers and merchants ​ ​ 138 ​ ​ 143 ​ ​ 136 ​ Payables to unconsolidated affiliates ​ ​ 17 ​ ​ 10 ​ ​ 8 ​ Other ​ 230 ​ 191 ​ 207 ​ Accrued expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee benefits ​ 530 ​ 1,577 ​ 786 ​ Product warranties ​ 1,311 ​ 1,259 ​ 1,360 ​ Accrued taxes ​ ​ 1,001 ​ ​ 1,155 ​ ​ 1,111 ​ Extended warranty premium ​ ​ 1,199 ​ ​ 1,202 ​ ​ 1,173 ​ Dealer sales incentives ​ 318 ​ 828 ​ 246 ​ Unearned revenue (contractual liability) ​ 922 ​ 837 ​ 854 ​ Unearned operating lease revenue ​ ​ 519 ​ ​ 534 ​ ​ 474 ​ Accrued interest ​ ​ 500 ​ ​ 524 ​ ​ 487 ​ Derivative liabilities ​ ​ 593 ​ ​ 389 ​ ​ 750 ​ Parts return liability ​ ​ 449 ​ ​ 445 ​ ​ 418 ​ Other ​ 1,058 ​ 1,073 ​ 1,042 ​ Accounts payable and accrued expenses $ 12,533 $ 13,909 ​ $ 12,162 ​ ​ 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. ​ 19 ​ (15)    Long-Term Borrowings Long-term borrowings were as follows in millions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1 ​ November 2 ​ January 26 ​ ​ 2026 ​ 2025 ​ 2025 ​ Underwritten term debt ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. dollar notes and debentures: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ 4.15 % notes due 2030* ​ ​ 500 ​ ​ 498 ​ ​ ​ 7.125 % notes due 2031 ​ 300 ​ 300 ​ 300 ​ 5.45 % notes due 2035 ​ 1,250 ​ 1,250 ​ 1,250 ​ 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 ​ 5.70 % notes due 2055 ​ ​ 750 ​ ​ 750 ​ ​ 750 ​ Euro notes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1.85 % notes due 2028 (€ 600 principal) ​ ​ 718 ​ ​ 694 ​ ​ 625 ​ 2.20 % notes due 2032 (€ 600 principal) ​ ​ 718 ​ ​ 694 ​ ​ 625 ​ 1.65 % notes due 2039 (€ 650 principal) ​ ​ 778 ​ ​ 752 ​ ​ 677 ​ Serial issuances: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Medium-term notes* ​ 32,168 ​ ​ 34,041 ​ ​ 34,974 ​ Other notes and finance lease obligations ​ 519 ​ 470 ​ 272 ​ Less: debt issuance costs and debt discounts ​ ​ ( 147 ) ​ ​ ( 155 ) ​ ​ ( 167 ) ​ Long-term borrowings $ 41,804 ​ $ 43,544 ​ $ 43,556 ​ ​ * 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. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1 ​ ​ ​ November 2 ​ ​ ​ January 26 ​ ​ ​ 2026 ​ 2025 ​ 2025 ​ 4.15 % notes due 2030 ​ $ 500 ​ $ 500 ​ ​ ​ ​ Medium-term notes ​ ​ 32,359 ​ ​ 34,241 ​ $ 35,770 ​ ​ ​ ​ ​ (16)    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 ​ ​ ​ February 1 ​ January 26 ​ ​ ​ 2026 ​ 2025 ​ Sales-type and direct finance lease revenues ​ $ 45 ​ $ 47 ​ Operating lease revenues ​ ​ 373 ​ ​ 362 ​ Variable lease revenues ​ ​ 6 ​ ​ 4 ​ Total lease revenues ​ $ 424 ​ $ 413 ​ ​ 20 ​ (17)    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 ​ ​ ​ February 1 ​ January 26 ​ ​ ​ 2026 ​ 2025 ​ Beginning of period balance ​ ​ ​ $ 1,259 ​ ​ ​ $ 1,426 ​ Warranty claims paid ​ ​ ( 299 ) ​ ( 310 ) ​ New product warranty accruals ​ ​ 342 ​ 256 ​ Foreign exchange ​ ​ 9 ​ ( 12 ) ​ End of period balance ​ $ 1,311 ​ $ 1,360 ​ ​ 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. As of February 1, 2026, the notional value of these guarantees was $ 141 . We may repossess the equipment collateralizing the receivables. 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 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 The fair values of financial instruments that do not approximate the carrying values are presented in the table below. Long-term borrowings exclude finance lease liabilities. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1, 2026 ​ November 2, 2025 ​ January 26, 2025 ​ ​ Carrying Value ​ Fair Value ​ Carrying Value ​ Fair Value ​ Carrying Value ​ Fair Value Financing receivables – net ​ $ 42,113 ​ $ 42,266 ​ $ 44,575 ​ $ 44,779 ​ $ 41,396 ​ $ 41,311 ​ Financing receivables securitized – net ​ ​ 6,479 ​ ​ 6,494 ​ ​ 6,831 ​ ​ 6,855 ​ ​ 8,257 ​ ​ 8,174 ​ Receivables from unconsolidated affiliates ​ ​ 306 ​ ​ 306 ​ ​ 392 ​ 400 ​ ​ ​ ​ ​ ​ ​ Short-term securitization borrowings ​ ​ 6,283 ​ ​ 6,322 ​ ​ 6,596 ​ ​ 6,631 ​ ​ 8,014 ​ ​ 8,036 ​ Long-term borrowings due within one year ​ ​ 9,342 ​ ​ 9,390 ​ ​ 8,888 ​ 8,911 ​ ​ 9,517 ​ ​ 9,468 ​ Long-term borrowings ​ ​ 41,730 ​ ​ 41,721 ​ ​ 43,471 ​ 43,527 ​ ​ 43,483 ​ ​ 43,172 ​ 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 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. 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 21 ​ rates. 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, 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1 ​ ​ ​ November 2 ​ ​ ​ January 26 ​ ​ 2026 ​ 2025 ​ 2025 Level 1: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Marketable securities ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government debt securities ​ $ 264 ​ $ 196 ​ $ 301 ​ Total Level 1 marketable securities ​ ​ 264 ​ ​ 196 ​ ​ 301 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 2: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Marketable securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ International fixed income fund ​ ​ 7 ​ 7 ​ ​ ​ Corporate debt securities ​ ​ 510 ​ 510 ​ 419 ​ International debt securities ​ ​ 162 ​ ​ 174 ​ ​ 132 ​ Mortgage-backed securities ​ ​ 228 ​ 234 ​ 174 ​ Municipal debt securities ​ ​ 110 ​ 113 ​ 80 ​ U.S. government debt securities ​ ​ 117 ​ ​ 117 ​ ​ 108 ​ Total Level 2 marketable securities ​ ​ 1,134 ​ 1,155 ​ 913 ​ Other assets – Derivatives ​ 347 ​ ​ 393 ​ ​ 216 ​ Accounts payable and accrued expenses – Derivatives ​ ​ 593 ​ ​ 389 ​ ​ 750 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 3: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable and accrued expenses – Deferred consideration ​ 107 ​ ​ 113 ​ ​ 138 ​ ​ The mortgage-backed securities are primarily issued by U.S. government sponsored enterprises. The contractual maturities of available-for-sale debt securities at February 1, 2026, follow: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ Fair ​ ​ ​ Cost ​ Value ​ Due in one year or less $ 62 ​ $ 64 ​ Due after one through five years ​ ​ 373 ​ ​ 371 ​ Due after five through 10 years ​ ​ 551 ​ ​ 542 ​ Due after 10 years ​ ​ 207 ​ ​ 186 ​ Mortgage-backed securities ​ ​ 249 ​ ​ 228 ​ Debt securities $ 1,442 $ 1,391 ​ ​ 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. Fair value, nonrecurring Level 3 measurements from impairments and other adjustments were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ (Gains) Losses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ February 1 ​ November 2 ​ January 26 ​ February 1 ​ January 26 ​ ​ ​ 2026 ​ 2025 ​ 2025 ​ 2026 ​ 2025 2 Property and equipment – net 1 ​ ​ ​ ​ $ 1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other intangible assets – net 1 ​ ​ ​ ​ ​ 3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other assets ​ ​ ​ ​ ​ 8 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets held for sale ​ ​ ​ ​ ​ ​ ​ $ 2,929 ​ ​ ​ ​ $ ( 32 ) ​ ​ 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 22 ​ 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. 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. Deferred consideration – The total purchase price consideration for three former Deere-Hitachi joint venture factories acquired in 2022 included supply agreement price increases beyond inflation adjustments. This deferred consideration will be paid as we purchase Deere-branded excavators, components, and service parts from Hitachi under the agreement with a duration that ranges from 5 to 30 years after the acquisition date. The deferred consideration balance is reduced as purchases are made and valued on a discounted cash flow approach using market rates. 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. 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 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 Fair values of our derivative instruments and the associated notional amounts are presented below. Assets are recorded in “Other assets,” while liabilities are recorded in “Accounts payable and accrued expenses.” ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 1, 2026 ​ November 2, 2025 ​ January 26, 2025 ​ ​ ​ ​ Fair Value ​ ​ ​ Fair Value ​ ​ ​ Fair Value ​ ​ Notional ​ Assets ​ Liabilities ​ Notional ​ Assets ​ Liabilities ​ Notional ​ Assets ​ Liabilities Cash flow hedges: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts $ 3,875 ​ ​ ​ ​ $ 27 $ 2,675 ​ ​ ​ ​ $ 21 $ 3,275 ​ $ 1 ​ $ 31 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value hedges: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ ​ 10,659 ​ $ 130 ​ ​ 203 ​ ​ 11,465 ​ $ 160 ​ ​ 228 ​ ​ 15,256 ​ ​ 32 ​ ​ 602 ​ Cross-currency interest rate contracts ​ ​ 2,058 ​ ​ 132 ​ ​ 13 ​ ​ 2,058 ​ ​ 91 ​ ​ 11 ​ ​ 975 ​ ​ ​ ​ ​ 2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net investment hedges: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cross-currency interest rate contracts ​ ​ 1,131 ​ ​ ​ ​ ​ 35 ​ ​ 1,131 ​ ​ ​ ​ ​ 9 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Not designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ ​ 13,918 ​ ​ 78 ​ ​ 71 ​ ​ 14,084 ​ ​ 94 ​ ​ 81 ​ ​ 13,082 ​ ​ 88 ​ ​ 72 ​ Foreign exchange contracts ​ ​ 7,984 ​ ​ 7 ​ ​ 232 ​ ​ 7,372 ​ ​ 46 ​ ​ 33 ​ ​ 7,408 ​ ​ 81 ​ ​ 43 ​ Cross-currency interest rate contracts ​ ​ 133 ​ ​ ​ ​ ​ 12 ​ ​ 132 ​ ​ 2 ​ ​ 6 ​ ​ 164 ​ ​ 14 ​ ​ ​ ​ ​ 23 ​ 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 ​ ​ ​ of Hedged Items ​ Hedging Amounts ​ February 1, 2026 ​ ​ ​ ​ ​ ​ Short-term borrowings ​ $ 3,018 ​ $ ( 26 ) ​ Long-term borrowings ​ ​ 24,231 ​ ​ ( 211 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ November 2, 2025 ​ ​ ​ ​ ​ ​ ​ Short-term borrowings ​ $ 2,998 ​ $ ( 30 ) ​ Long-term borrowings ​ ​ 25,013 ​ ​ ( 203 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ January 26, 2025 ​ ​ ​ ​ ​ ​ ​ Short-term borrowings ​ $ 2,110 ​ $ ( 14 ) ​ Long-term borrowings ​ ​ 24,438 ​ ​ ( 796 ) ​ ​ 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 ​ ​ February 1 ​ January 26 ​ ​ 2026 ​ 2025 Fair value hedges: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts – Interest expense $ ( 58 ) ​ $ ( 343 ) ​ ​ ​ ​ ​ ​ ​ ​ Cash flow hedges: ​ ​ ​ ​ ​ ​ ​ Recognized in OCI: ​ ​ ​ ​ ​ ​ ​ Interest rate contracts – OCI (pretax) $ ( 2 ) ​ $ 7 ​ Reclassified from OCI: ​ ​ ​ ​ ​ ​ ​ Interest rate contracts – Interest expense ​ 4 ​ 8 ​ ​ ​ ​ ​ ​ ​ ​ Net investment hedges: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts – Interest expense $ 4 ​ ​ ​ ​ Recognized in OCI: ​ ​ ​ ​ ​ ​ Interest rate contracts – OCI (pretax) ​ ( 30 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Not designated as hedges: ​ ​ ​ ​ ​ ​ ​ Interest rate contracts – Interest expense $ ( 4 ) ​ $ ( 4 ) ​ Foreign exchange contracts – Net sales ​ ​ 5 ​ ​ ( 7 ) ​ Foreign exchange contracts – Cost of sales ​ ( 67 ) ​ 35 ​ Foreign exchange contracts – Other operating expenses ​ ( 279 ) ​ 208 ​ Total not designated ​ $ ( 345 ) ​ $ 232 ​ ​ 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 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. 24 ​ 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 February 1, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets $ 347 $ ( 170 ) ​ ​ $ 177 ​ Liabilities ​ ​ 593 ​ ​ ( 170 ) ​ $ ( 75 ) ​ ​ 348 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ November 2, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Assets ​ $ 393 $ ( 202 ) ​ ​ $ 191 ​ Liabilities ​ ​ 389 ​ ( 202 ) ​ $ ( 64 ) ​ ​ 123 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 26, 2025 ​ ​ ​ ​ ​ ​ ​ ​ Assets ​ $ 216 $ ( 62 ) ​ ​ ​ $ 154 ​ Liabilities ​ 750 ​ ​ ( 62 ) ​ $ ( 437 ) ​ 251 ​ ​ ​ ​ ​ ​ (20)    Share-Based AWARDS We are authorized to grant shares for equity incentive awards. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Grant-Date ​ ​ ​ Shares ​ Fair Value (per share) ​ Service-based ​ 296 ​ $ 469.03 ​ Performance/service-based ​ 39 ​ ​ 450.48 ​ Market/service-based (fair value determined using a Monte Carlo model ) ​ 39 ​ ​ 555.14 ​ ​ ​ ​ (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. 25 ​ 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 ​ $ 115 ​ Trade accounts and notes receivable – net ​ ​ 105 ​ Financing receivables – net ​ ​ 2,719 ​ Deferred income taxes ​ ​ 34 ​ Other miscellaneous assets* ​ ​ 21 ​ Valuation allowance ​ ​ ( 65 ) ​ Assets held for sale ​ $ 2,929 ​ ​ ​ ​ ​ ​ Short-term borrowings ​ $ 487 ​ Accounts payable and accrued expenses ​ ​ 124 ​ Long-term borrowings ​ ​ 1,218 ​ Retirement benefits and other liabilities ​ ​ 1 ​ Liabilities held for sale ​ $ 1,830 ​ ​ ​ ​ ​ ​ Total intercompany payables ​ $ 627 ​ * 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. ​ ​ ​ 26 ​