What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-05-28 compared with 2026-02-26 · 334 added, 110 removed, 752 unchanged (37% of the section changed)

2 unchanged sentences

STATEMENTS OF CONSOLIDATED INCOME

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

For the Three and Six Months Ended May 3, 2026 and April 27, 2025

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

Three Months Ended

Six Months Ended

Net Sales and Revenues

19 unchanged sentences

STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME

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

For the Three and Six Months Ended May 3, 2026 and April 27, 2025

(In millions of dollars) Unaudited

Three Months Ended

Six Months Ended

Other Comprehensive Income (Loss), Net of Income Taxes

1 unchanged sentence

Cumulative translation adjustment

Unrealized loss on derivatives

Unrealized gain (loss) on derivatives

Unrealized gain (loss) on debt securities

18 unchanged sentences

Deferred income taxes

Assets held for sale

Liabilities and Stockholders’ Equity

5 unchanged sentences

Retirement benefits and other liabilities

Liabilities held for sale

Total liabilities

2 unchanged sentences

Stockholders’ Equity

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

Common stock, $ 1 par value (issued shares at May 3, 2026 – 536,431,204 )

Common stock in treasury

8 unchanged sentences

STATEMENTS OF CONSOLIDATED CASH FLOWS

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

For the Six Months Ended May 3, 2026 and April 27, 2025

(In millions of dollars) Unaudited

Cash Flows from Operating Activities

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

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

Provision for credit losses

2 unchanged sentences

Share-based compensation expense

Provision for deferred income taxes

Provision (credit) for deferred income taxes

Changes in assets and liabilities:

3 unchanged sentences

Retirement benefits

Net cash used for operating activities

Net cash provided by operating activities

Cash Flows from Investing Activities

3 unchanged sentences

Cost of receivables acquired (excluding receivables related to sales)

Acquisition of business, net of cash acquired

Purchases of marketable securities

5 unchanged sentences

Cash Flows from Financing Activities

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

Net proceeds 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 Decrease in Cash, Cash Equivalents, and Restricted Cash

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

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

2 unchanged sentences

Cash and cash equivalents

Cash, cash equivalents, and restricted cash (Assets held for sale)

Restricted cash (Other assets)

3 unchanged sentences

STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY

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

For the Three and Six Months Ended May 3, 2026 and April 27, 2025

(In millions of dollars) Unaudited

6 unchanged sentences

Income (Loss)

Three Months Ended April 27, 2025

Balance January 26, 2025

Net income (loss)

Other comprehensive income

Repurchases of common stock

Treasury shares reissued

Dividends declared

Share based awards and other

Balance April 27, 2025

Six Months Ended April 27, 2025

Balance October 27, 2024

Net income (loss)

Other comprehensive income

Repurchases of common stock

Treasury shares reissued

Dividends declared

Share based awards and other

Balance April 27, 2025

Three Months Ended May 3, 2026

Balance February 1, 2026

Net income (loss)

Other comprehensive loss

3 unchanged sentences

Share based awards and other

Balance January 26, 2025

Balance May 3, 2026

Six Months Ended May 3, 2026

Balance November 2, 2025

5 unchanged sentences

Share based awards and other

Balance February 1, 2026

Balance May 3, 2026

See Condensed Notes to Interim Consolidated Financial Statements.

7 unchanged sentences

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.

The second quarter ends for fiscal years 2026 and 2025 were May 3, 2026, and April 27, 2025, respectively.

Both quarters contained 13 weeks, while both year-to-date periods contained 26 weeks.

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

20 unchanged sentences

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.

The interim consolidated financial statements of Deere & Company have been prepared by us, without audit, pursuant to the rules and regulations of the U.S.

Securities and Exchange Commission (SEC).

29 unchanged sentences

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.

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, including note disclosures to consolidated financial statements.

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

2026-02 — Environmental Credits and Environmental Credit Obligations (Topic 818)

2025-12 — Codification Improvements

13 unchanged sentences

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

Three Months Ended February 1, 2026

Three Months Ended May 3, 2026

Primary geographic markets:

1 unchanged sentence

United States

14 unchanged sentences

At a point in time

Three Months Ended January 26, 2025

Six Months Ended May 3, 2026

Primary geographic markets:

1 unchanged sentence

United States

14 unchanged sentences

At a point in time

Three Months Ended April 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

Six Months Ended April 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

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.

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 $ 2,155 , $ 2,039 , and $ 2,089 at May 3, 2026, November 2, 2025, and April 27, 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.

Revenue recognized from deferred revenue that was recorded as a contract liability at the beginning of the fiscal year was $ 163 and $ 176 during the three months and $ 428 and $ 373 during the six months ended May 3, 2026, and April 27, 2025, respectively.

The amount of unsatisfied performance obligations for contracts with an original duration greater than one year was $ 1,855 at May 3, 2026.

The estimated revenue to be recognized by fiscal year follows:

10 unchanged sentences

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

Three Months Ended February 1, 2026

Three Months Ended May 3, 2026

Cumulative translation adjustment:

Unrealized translation gain (loss)

Reclassification of realized (gain) loss to Other income

Net unrealized translation gain (loss)

Unrealized gain (loss) on derivatives:

6 unchanged sentences

Retirement benefits adjustment:

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

Reclassification to Other operating expenses through amortization of:

3 unchanged sentences

Total other comprehensive income (loss)

Three Months Ended January 26, 2025

Six Months Ended May 3, 2026

Cumulative translation adjustment:

Unrealized translation gain (loss)

Reclassification of realized (gain) loss to Other income

Net unrealized translation gain (loss)

Unrealized gain (loss) on derivatives:

6 unchanged sentences

Retirement benefits adjustment:

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

Reclassification to Other operating expenses through amortization of:

Actuarial (gain) loss

Prior service (credit) cost

Net unrealized gain (loss) on retirement benefits adjustment

Total other comprehensive income (loss)

Three Months Ended April 27, 2025

Cumulative translation adjustment

Unrealized gain (loss) on derivatives:

Unrealized hedging gain (loss)

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)

4 unchanged sentences

Total other comprehensive income (loss)

Six Months Ended April 27, 2025

Cumulative translation adjustment

Unrealized gain (loss) on 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

Net unrealized gain (loss) on retirement benefits adjustment

Total other comprehensive income (loss)

(5) Earnings Per Share

1 unchanged sentence

Three Months Ended

Six Months Ended

Net income attributable to Deere & Company

13 unchanged sentences

Three Months Ended

Six Months Ended

Interest cost

7 unchanged sentences

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:

During the first six 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).

The effective tax rate was 22.6 % and 23.1 % for the second quarter of 2026 and 2025, respectively, and 22.8 % and 17.5 % for the six months ended May 3, 2026, and April 27, 2025, respectively.

The effective tax rate in the six months ended April 27, 2025 was impacted by favorable net discrete tax items (see Note 22).

(8) Segment DATA

13 unchanged sentences

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.

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.

Total identifiable assets assigned to the equipment operations operating segments consist of assets actively managed by those segments, including trade receivables, inventories, property and equipment, other 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.

1 unchanged sentence

Information relating to operations by operating segment was as follows:

Three Months Ended February 1, 2026

Three Months Ended May 3, 2026

External net sales

7 unchanged sentences

Segment operating profit

Three Months Ended January 26, 2025

Six Months Ended May 3, 2026

External net sales

7 unchanged sentences

Segment operating profit

Three Months Ended April 27, 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

Six Months Ended April 27, 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;

6 unchanged sentences

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:

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

Three Months Ended

Six Months Ended

Reconciliation of net sales and revenues

Segment net sales and revenues

12 unchanged sentences

Three Months Ended

Six Months Ended

Depreciation* and amortization expense

14 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:

February 1, 2026

Revolving Charge Accounts

Retail customer receivables:

Agriculture and turf

9 unchanged sentences

Total retail customer receivables

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

Write-offs for the six months ended May 3, 2026:

Agriculture and turf

3 unchanged sentences

Retail customer receivables:

Agriculture and turf

12 unchanged sentences

Construction and forestry

January 26, 2025

April 27, 2025

Revolving Charge Accounts

Retail customer receivables:

Agriculture and turf

9 unchanged sentences

Total retail customer receivables

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

Write-offs for the six months ended April 27, 2025:

Agriculture and turf

10 unchanged sentences

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

Three Months Ended February 1, 2026

Three Months Ended May 3, 2026

Beginning of period balance

Provision (credit)

Translation adjustments

End of period balance

Six Months Ended May 3, 2026

Beginning of period balance

End of period balance

Financing receivables:

End of period balance

Three Months Ended January 26, 2025

Three Months Ended April 27, 2025

Beginning of period balance

1 unchanged sentence

End of period balance

Six Months Ended April 27, 2025

Beginning of period balance

End of period balance

Financing receivables:

End of period balance

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.

The allowance for credit losses on retail notes and financing lease receivables increased slightly in the second quarter and first six months of 2026, primarily due to higher expected losses on construction retail accounts.

Modifications

6 unchanged sentences

Three Months Ended

Six Months Ended

Modified financing receivables

2 unchanged sentences

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

Three Months Ended

Six Months Ended

Payment deferral

4 unchanged sentences

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:

The ending amortized cost and performance of financing receivables modified during the prior twelve months ended May 3, 2026, and April 27, 2025, were as follows:

30-59 days past due

2 unchanged sentences

Non-performing

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.

Defaults and subsequent write-offs of loans modified in the prior twelve months were not significant during the three months and the six months ended May 3, 2026.

In addition, at May 3, 2026, commitments to provide additional financing to these customers were not significant.

(10) Securitization of Financing Receivables

31 unchanged sentences

Translation adjustments

Goodwill at January 26, 2025

Goodwill at April 27, 2025

Goodwill at November 2, 2025

Acquisition (Note 21)

Translation adjustments

Goodwill at February 1, 2026

Goodwill at May 3, 2026

The components of other intangible assets were as follows:

7 unchanged sentences

Other intangible assets – net

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

The amortization expense of other intangible assets in the second quarter and the first six months of 2026 was $ 36 and $ 70 , respectively, and for the second quarter and the first six months of 2025 was $ 37 and $ 78 , respectively.

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

10 unchanged sentences

Accounts payable:

Trade payables

15 unchanged sentences

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 $ 1,898 at February 1, 2026, $ 1,892 at November 2, 2025, and $ 1,901 at January 26, 2025.

Amounts are presented net of eliminations, which primarily consist of dealer sales incentives with a right of set-off against trade receivables of $ 2,012 at May 3, 2026, $ 1,892 at November 2, 2025, and $ 2,059 at April 27, 2025.

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

39 unchanged sentences

Three Months Ended

Six Months Ended

Sales-type and direct finance lease revenues

8 unchanged sentences

Three Months Ended

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

As of May 3, 2026, the notional value of these guarantees was $ 137 .

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.

At May 3, 2026, the accrued losses under these guarantees were not material.

We also had guarantees to a VIE (see Note 1) totaling $ 172 at May 3, 2026.

We also had other miscellaneous contingent liabilities and guarantees totaling approximately $ 150 at May 3, 2026.

The accrued liability for these contingencies was $ 40 at May 3, 2026.

At May 3, 2026, we had commitments of approximately $ 525 for the construction and acquisition of property and equipment.

Also, at May 3, 2026, we had restricted assets of $ 297 , 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.

The total accrued losses on unresolved legal matters were approximately $ 175 at May 3, 2026.

The accrual includes losses associated with a settlement agreement in a consolidated multidistrict class action antitrust lawsuit, which was recorded in the fourth quarter of 2025.

The accrual for all other matters 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.

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

(18) FAIR VALUE MEASUREMENTS

1 unchanged sentence

Long-term borrowings exclude finance lease liabilities.

February 1, 2026

November 2, 2025

January 26, 2025

April 27, 2025

Financing receivables – net

7 unchanged sentences

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.

At May 3, 2026 , and November 2, 2025 , we had $ 42 and $ 60 , respectively, marketable securities classified as held-to-maturity Level 2 international corporate debt securities.

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

2 unchanged sentences

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:

Marketable securities

14 unchanged sentences

government sponsored enterprises.

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

The contractual maturities of available-for-sale debt securities at May 3, 2026, follow:

Due in one year or less

7 unchanged sentences

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

(Gains) Losses

Losses (Gains)

Three Months Ended

Six 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.”

1 Related 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 the 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:

9 unchanged sentences

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 intangible assets – net – The impairment of customer relationships and tradename 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.

7 unchanged sentences

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

April 27, 2025

Cash flow hedges:

Interest rate contracts

14 unchanged sentences

Hedging Amounts

February 1, 2026

Short-term borrowings

3 unchanged sentences

Long-term borrowings

January 26, 2025

April 27, 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 table above includes carrying amounts of short-term borrowings of $ 3,534 , $ 2,544 , and $ 1,212 and of long-term borrowings of $ 11,704 , $ 11,963 , and $ 10,533 at May 3, 2026, November 2, 2025, and April 27, 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 ($ 39 ), ($ 30 ), and ($ 12 ) and of long-term borrowings of ($ 120 ), ($ 185 ), and ($ 141 ) at May 3, 2026, November 2, 2025, and April 27, 2025, respectively.

At April 27, 2025, long-term borrowings with a carrying amount of $ 399 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

Six Months Ended

Fair value hedges:

Interest rate contracts – Interest expense

15 unchanged sentences

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.

The aggregate fair value of all derivatives with credit-risk-related contingent features that were in a net liability position at May 3, 2026, November 2, 2025, and April 27, 2025, was $ 362 , $ 356 , and $ 507 , respectively.

In accordance with the limits established in these agreements, we posted $ 73 , $ 62 , and $ 221 of cash collateral at May 3, 2026, November 2, 2025, and April 27, 2025, respectively.

In addition, we paid $ 8 of collateral that was outstanding at May 3, 2026, November 2, 2025, and April 27, 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

February 1, 2026

November 2, 2025

January 26, 2025

April 27, 2025

(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.

The remaining shares authorized for future issuance were 12.2 million at May 3, 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:

At May 3, 2026, options for 1.0 million shares were outstanding with a weighted-average exercise price of $ 363.65 per share.

During the six months ended May 3, 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)

(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

In March 2026, we granted performance/service-based awards to certain of our senior officers, which vest subject to the satisfaction of pre-established annual Shareholder Value Added targets during a five -fiscal year period beginning on November 3, 2025 and ending on October 27, 2030.

Each fiscal year, a payout percentage ranging from zero to 175 % will be calculated and the five annual payout percentages will be averaged at the end of the performance period and used to calculate the number of common stock shares to be received.

The awards include dividend equivalent payments.

(21) AcQUISITION AND Disposition

In February 2026, we acquired Tenna LLC (Tenna) to expand our technology solutions in the construction market.

Tenna is a U.S.

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

The purchase price, net of cash acquired of $ 1 , was $ 439 .

The fair values assigned to the assets and liabilities of the acquired entity, which are based on information as of the acquisition date and available at May 3, 2026, follow:

Trade accounts and notes receivable

Other intangible assets

Other miscellaneous assets

Accounts payable and accrued expenses

Total liabilities

The identifiable intangible assets were related to customer relationships, technology, and trade name with a weighted average amortization period of 10 years .

The goodwill is deductible for income tax purposes.

Tenna was assigned to the CF segment.

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:

Cash and cash equivalents

4 unchanged sentences

Valuation allowance

Assets held for sale

Short-term borrowings

2 unchanged sentences

Retirement benefits and other liabilities

Liabilities held for sale

Total liabilities

Total intercompany payables

* Includes $ 1 restricted cash balance.

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 the BJD deconsolidation in February 2025 include the derecognition of total assets (excluding cash and cash equivalents) of $ 2,897 and total liabilities of $ 1,861 , and the recognition of the investments in unconsolidated affiliates of $ 362 and receivables from unconsolidated affiliates (BJD intercompany payables) of $ 781 .

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

(22) Special ItemS

Discrete Tax Items

Banco John Deere S.A.

In 2024, we entered into an agreement with Bradesco, for Bradesco to invest and become 50 % owner of our wholly-owned subsidiary in Brazil, BJD.

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

At January 26, 2025, the valuation allowance on “Assets held for sale” decreased, resulting in a pretax and after-tax gain (reversal of previous losses not in excess of cumulative valuation allowance recorded on “Assets held for sale”) 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.

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.

(23) 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.

In May 2026, we entered into a retail note securitization transaction, resulting in $ 303 of secured borrowings.

On May 27, 2026 , a quarterly dividend of $ 1.62 per share was declared at the Board of Directors meeting, payable on August 10, 2026 , to stockholders of record on June 30, 2026 .

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