DEERE & CO 10-Q

ITEM 1. FINANCIAL STATEMENTS ​ ​ ​ ​ ​ ​ ​ DEERE & COMPANY ​ ​ ​ ​ ​ ​ ​ STATEMENTS OF CONSOLIDATED INCOME ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended January 28, 2024 and January 29, 2023 ​ ​ ​ ​ ​ ​ ​ (In millions of dollars and shares except per share amounts) Unaudited ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 Net Sales and Revenues ​ ​ ​ ​ ​ ​ ​ Net sales $ 10,486 ​ $ 11,402 ​ Finance and interest income ​ ​ 1,360 ​ 994 ​ Other income ​ ​ 339 ​ 256 ​ Total ​ ​ 12,185 ​ 12,652 ​ ​ ​ ​ ​ ​ ​ ​ ​ Costs and Expenses ​ ​ ​ ​ ​ ​ ​ Cost of sales ​ ​ 7,200 ​ 7,934 ​ Research and development expenses ​ ​ 533 ​ 495 ​ Selling, administrative and general expenses ​ ​ 1,066 ​ 952 ​ Interest expense ​ ​ 802 ​ 479 ​ Other operating expenses ​ ​ 369 ​ 299 ​ Total ​ ​ 9,970 ​ 10,159 ​ ​ ​ ​ ​ ​ ​ ​ ​ Income of Consolidated Group before Income Taxes ​ ​ 2,215 ​ 2,493 ​ Provision for income taxes ​ ​ 469 ​ 537 ​ ​ ​ ​ ​ ​ ​ ​ ​ Income of Consolidated Group ​ ​ 1,746 ​ 1,956 ​ Equity in income of unconsolidated affiliates ​ ​ 2 ​ 1 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Income ​ ​ 1,748 ​ 1,957 ​ Less: Net loss attributable to noncontrolling interests ​ ​ ( 3 ) ​ ( 2 ) ​ Net Income Attributable to Deere & Company $ 1,751 ​ $ 1,959 ​ ​ ​ ​ ​ ​ ​ ​ ​ Per Share Data ​ ​ ​ ​ ​ ​ ​ Basic $ 6.25 ​ $ 6.58 ​ Diluted ​ 6.23 ​ ​ 6.55 ​ Dividends declared ​ ​ 1.47 ​ ​ 1.20 ​ Dividends paid ​ ​ 1.35 ​ ​ 1.13 ​ ​ ​ ​ ​ ​ ​ ​ ​ Average Shares Outstanding ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ 279.9 ​ 297.6 ​ Diluted ​ ​ 281.1 ​ 299.1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ See Condensed Notes to Interim Consolidated Financial Statements. ​ ​ 2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DEERE & COMPANY ​ ​ ​ ​ ​ ​ ​ STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended January 28, 2024 and January 29, 2023 ​ ​ ​ ​ ​ ​ ​ (In millions of dollars) Unaudited ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 ​ ​ ​ ​ ​ ​ ​ Net Income $ 1,748 ​ $ 1,957 ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Comprehensive Income (Loss), Net of Income Taxes ​ ​ ​ ​ ​ ​ ​ Retirement benefits adjustment ​ ​ ( 21 ) ​ ( 11 ) ​ Cumulative translation adjustment ​ ​ 274 ​ 681 ​ Unrealized loss on derivatives ​ ​ ( 15 ) ​ ( 13 ) ​ Unrealized gain on debt securities ​ ​ 13 ​ 27 ​ Other Comprehensive Income, Net of Income Taxes ​ ​ 251 ​ 684 ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive Income of Consolidated Group ​ ​ 1,999 ​ 2,641 ​ Less: Comprehensive income (loss) attributable to noncontrolling interests ​ ​ ( 2 ) ​ 6 ​ Comprehensive Income Attributable to Deere & Company $ 2,001 ​ $ 2,635 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ See Condensed Notes to Interim Consolidated Financial Statements. ​ ​ 3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DEERE & COMPANY ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATED BALANCE SHEETS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions of dollars) Unaudited ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 28 October 29 January 29 ​ ​ 2024 ​ 2023 ​ 2023 Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents $ 5,137 ​ $ 7,458 ​ $ 3,976 ​ Marketable securities ​ ​ 1,136 ​ 946 ​ 852 ​ Trade accounts and notes receivable – net ​ ​ 7,795 ​ 7,739 ​ 7,609 ​ Financing receivables – net ​ ​ 43,708 ​ 43,673 ​ 36,882 ​ Financing receivables securitized – net ​ ​ 6,400 ​ 7,335 ​ 5,089 ​ Other receivables ​ ​ 2,017 ​ 2,623 ​ 1,992 ​ Equipment on operating leases – net ​ ​ 6,751 ​ 6,917 ​ 6,502 ​ Inventories ​ ​ 8,937 ​ 8,160 ​ 10,056 ​ Property and equipment – net ​ ​ 6,914 ​ 6,879 ​ 6,212 ​ Goodwill ​ ​ 3,966 ​ 3,900 ​ 3,891 ​ Other intangible assets – net ​ ​ 1,112 ​ 1,133 ​ 1,255 ​ Retirement benefits ​ ​ 3,087 ​ 3,007 ​ 3,793 ​ Deferred income taxes ​ ​ 1,833 ​ 1,814 ​ 914 ​ Other assets ​ ​ 2,578 ​ 2,503 ​ 2,597 ​ Total Assets $ 101,371 ​ $ 104,087 ​ $ 91,620 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders’ Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term borrowings ​ $ 17,117 ​ $ 17,939 ​ $ 14,129 ​ Short-term securitization borrowings ​ ​ 6,116 ​ 6,995 ​ 4,864 ​ Accounts payable and accrued expenses ​ ​ 13,361 ​ 16,130 ​ 13,108 ​ Deferred income taxes ​ ​ 550 ​ 520 ​ 519 ​ Long-term borrowings ​ ​ 39,933 ​ 38,477 ​ 35,071 ​ Retirement benefits and other liabilities ​ ​ 2,115 ​ 2,140 ​ 2,493 ​ Total liabilities ​ ​ 79,192 ​ 82,201 ​ 70,184 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commitments and contingencies (Note 16) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Redeemable noncontrolling interest ​ ​ 100 ​ ​ 97 ​ ​ 100 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders’ Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock, $ 1 par value (issued shares at January 28, 2024 – 536,431,204 ) ​ ​ 5,335 ​ 5,303 ​ 5,191 ​ Common stock in treasury ​ ​ ( 32,663 ) ​ ( 31,335 ) ​ ( 25,333 ) ​ Retained earnings ​ ​ 52,266 ​ 50,931 ​ 43,846 ​ Accumulated other comprehensive income (loss) ​ ​ ( 2,863 ) ​ ( 3,114 ) ​ ( 2,372 ) ​ Total Deere & Company stockholders’ equity ​ ​ 22,075 ​ 21,785 ​ 21,332 ​ Noncontrolling interests ​ ​ 4 ​ 4 ​ 4 ​ Total stockholders’ equity ​ ​ 22,079 ​ 21,789 ​ 21,336 ​ Total Liabilities and Stockholders’ Equity ​ $ 101,371 ​ $ 104,087 ​ $ 91,620 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ See Condensed Notes to Interim Consolidated Financial Statements. ​ 4 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DEERE & COMPANY ​ ​ ​ ​ ​ ​ ​ STATEMENTS OF CONSOLIDATED CASH FLOWS ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended January 28, 2024 and January 29, 2023 ​ ​ ​ ​ ​ ​ ​ (In millions of dollars) Unaudited ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 Cash Flows from Operating Activities ​ ​ ​ ​ ​ ​ ​ Net income $ 1,748 ​ $ 1,957 ​ Adjustments to reconcile net income to net cash used for operating activities: ​ ​ ​ ​ ​ ​ ​ Provision (credit) for credit losses ​ ​ 31 ​ ( 130 ) ​ Provision for depreciation and amortization ​ ​ 520 ​ 494 ​ Share-based compensation expense ​ ​ 46 ​ 23 ​ Provision (credit) for deferred income taxes ​ ​ 27 ​ ( 56 ) ​ Changes in assets and liabilities: ​ ​ ​ ​ ​ ​ ​ Receivables related to sales ​ ​ ( 277 ) ​ ( 1,015 ) ​ Inventories ​ ​ ( 723 ) ​ ( 1,279 ) ​ Accounts payable and accrued expenses ​ ​ ( 2,327 ) ​ ( 1,577 ) ​ Accrued income taxes payable/receivable ​ ​ 183 ​ 199 ​ Retirement benefits ​ ​ ( 129 ) ​ ( 48 ) ​ Other ​ ​ ( 7 ) ​ 186 ​ Net cash used for operating activities ​ ​ ( 908 ) ​ ( 1,246 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Investing Activities ​ ​ ​ ​ ​ ​ ​ Collections of receivables (excluding receivables related to sales) ​ ​ 7,752 ​ 7,198 ​ Proceeds from sales of equipment on operating leases ​ ​ 506 ​ 497 ​ Cost of receivables acquired (excluding receivables related to sales) ​ ​ ( 6,447 ) ​ ( 6,322 ) ​ Purchases of property and equipment ​ ​ ( 362 ) ​ ( 315 ) ​ Cost of equipment on operating leases acquired ​ ​ ( 454 ) ​ ( 497 ) ​ Collateral on derivatives – net ​ ​ 310 ​ ​ 345 ​ Other ​ ​ ( 88 ) ​ ( 146 ) ​ Net cash provided by investing activities ​ ​ 1,217 ​ 760 ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Financing Activities ​ ​ ​ ​ ​ ​ ​ Net proceeds (payments) in short-term borrowings (original maturities three months or less) ​ ​ ( 2,951 ) ​ 697 ​ Proceeds from borrowings issued (original maturities greater than three months) ​ ​ 5,287 ​ 2,505 ​ Payments of borrowings (original maturities greater than three months) ​ ​ ( 3,237 ) ​ ( 1,925 ) ​ Repurchases of common stock ​ ​ ( 1,328 ) ​ ( 1,257 ) ​ Dividends paid ​ ​ ( 386 ) ​ ( 341 ) ​ Other ​ ​ ( 30 ) ​ ( 18 ) ​ Net cash used for financing activities ​ ​ ( 2,645 ) ​ ( 339 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash ​ ​ 16 ​ 62 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Decrease in Cash, Cash Equivalents, and Restricted Cash ​ ​ ( 2,320 ) ​ ​ ( 763 ) ​ Cash, Cash Equivalents, and Restricted Cash at Beginning of Period ​ ​ 7,620 ​ 4,941 ​ Cash, Cash Equivalents, and Restricted Cash at End of Period ​ $ 5,300 ​ $ 4,178 ​ ​ ​ ​ ​ ​ ​ ​ ​ Components of Cash, Cash Equivalents, and Restricted Cash ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 5,137 ​ $ 3,976 ​ Restricted cash (Other assets) ​ ​ 163 ​ ​ 202 ​ Total Cash, Cash Equivalents, and Restricted Cash ​ $ 5,300 ​ $ 4,178 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ See Condensed Notes to Interim Consolidated Financial Statements. ​ ​ 5 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DEERE & COMPANY ​ STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY ​ For the Three Months Ended January 28, 2024 and January 29, 2023 ​ (In millions of dollars) Unaudited ​ ​ ​ ​ ​ ​ Total Stockholders’ Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deere & Company Stockholders ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ Other ​ ​ ​ ​ Redeemable ​ ​ ​ Stockholders’ ​ Common ​ Treasury ​ Retained ​ Comprehensive ​ Noncontrolling ​ ​ Noncontrolling ​ ​ Equity Stock Stock Earnings Income (Loss) Interests Interest ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance October 30, 2022 ​ $ 20,265 ​ $ 5,165 ​ $ ( 24,094 ) ​ $ 42,247 ​ $ ( 3,056 ) ​ $ 3 ​ ​ $ 92 Net income (loss) ​ 1,960 ​ ​ ​ ​ ​ ​ ​ ​ 1,959 ​ ​ ​ ​ ​ 1 ​ ​ ​ ( 3 ) ​ Other comprehensive income ​ 684 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 684 ​ ​ ​ ​ ​ ​ 8 ​ Repurchases of common stock ​ ( 1,257 ) ​ ​ ​ ​ ​ ( 1,257 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Treasury shares reissued ​ 18 ​ ​ ​ ​ ​ 18 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends declared ​ ( 356 ) ​ ​ ​ ​ ​ ​ ​ ​ ( 356 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Share based awards and other ​ 22 ​ ​ 26 ​ ​ ​ ​ ​ ( 4 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ 3 ​ Balance January 29, 2023 ​ $ 21,336 ​ $ 5,191 ​ $ ( 25,333 ) ​ $ 43,846 ​ $ ( 2,372 ) ​ $ 4 ​ ​ $ 100 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance October 29, 2023 ​ $ 21,789 ​ $ 5,303 ​ $ ( 31,335 ) ​ $ 50,931 ​ $ ( 3,114 ) ​ $ 4 ​ ​ $ 97 ​ Net income (loss) ​ ​ 1,752 ​ ​ ​ ​ ​ ​ ​ ​ 1,751 ​ ​ ​ ​ ​ 1 ​ ​ ​ ( 4 ) ​ Other comprehensive income ​ ​ 251 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 251 ​ ​ ​ ​ ​ ​ 1 ​ Repurchases of common stock ​ ​ ( 1,340 ) ​ ​ ​ ​ ​ ( 1,340 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Treasury shares reissued ​ ​ 12 ​ ​ ​ ​ ​ 12 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends declared ​ ​ ( 411 ) ​ ​ ​ ​ ​ ​ ​ ​ ( 411 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Share based awards and other ​ ​ 26 ​ ​ 32 ​ ​ ​ ​ ​ ( 5 ) ​ ​ ​ ​ ​ ( 1 ) ​ ​ ​ 6 ​ Balance January 28, 2024 ​ $ 22,079 ​ $ 5,335 ​ $ ( 32,663 ) ​ $ 52,266 ​ $ ( 2,863 ) ​ $ 4 ​ ​ $ 100 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ See Condensed Notes to Interim Consolidated Financial Statements. ​ ​ ​ ​ ​ ​ 6 ​ Condensed Notes to Interim Consolidated Financial Statements (Unaudited) (1)    Organization and Consolidation Deere & Company has been developing innovative solutions to help its customers become more profitable for more than 185 years. References to “Deere & Company,” “John Deere,” “we,” “us,” or “our” include our consolidated subsidiaries. We manage our business through the following operating segments: production and precision agriculture (PPA), small agriculture and turf (SAT), construction and forestry (CF), and financial services (FS). References to “agriculture and turf” include both PPA and SAT. We use a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period. The first quarter ends for fiscal year 2024 and 2023 were January 28, 2024 and January 29, 2023, respectively. Both periods contained 13 weeks. Unless otherwise stated, references to particular years, quarters, or months refer to our fiscal years generally ending in October and the associated periods in those fiscal years. All amounts are presented in millions of dollars, unless otherwise specified. ​ ​ (2)    Summary of Significant Accounting Policies and New Accounting Standards 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. New Accounting Standards We closely monitor all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) and other authoritative guidance. We adopted the following standards in 2024, none of which had a material effect on our consolidated financial statements. ​ ​ Accounting Standards Adopted ​ 2022-04 — Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations ​ 2022-02 — Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures ​ 2022-01 — Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method ​ 2021-08 — Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ​ Accounting Standards to be Adopted In December 2023, the FASB issued ASU 2023-09 , Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and cash taxes paid both in the U.S. and foreign jurisdictions. The effective date of the ASU is fiscal year 2026. We are assessing the effect of this update on our related disclosures. We will also adopt the following standards in future periods, none of which are expected to have a material effect on our consolidated financial statements. ​ ​ 2023-07 — Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ​ 2023-06 — Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative ​ 2023-05 — Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement ​ 2022-03 — Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ​ ​ 7 ​ (3)    Revenue Recognition Our net sales and revenues by primary geographic market, major product line, and timing of revenue recognition follow: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended January 28, 2024 ​ ​ ​ Production & Precision Ag ​ Small Ag & Turf ​ Construction & Forestry ​ Financial Services ​ Total ​ Primary geographic markets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 2,721 ​ $ 1,345 ​ $ 2,095 ​ $ 970 ​ $ 7,131 ​ Canada ​ ​ 386 ​ ​ 118 ​ ​ 210 ​ 172 ​ 886 ​ Western Europe ​ ​ 503 ​ ​ 517 ​ ​ 361 ​ 40 ​ 1,421 ​ Central Europe and CIS ​ ​ 179 ​ ​ 73 ​ ​ 94 ​ 8 ​ 354 ​ Latin America ​ ​ 819 ​ ​ 98 ​ ​ 256 ​ 130 ​ 1,303 ​ Asia, Africa, Oceania, and Middle East ​ ​ 435 ​ ​ 341 ​ ​ 258 ​ ​ 56 ​ ​ 1,090 ​ Total ​ $ 5,043 ​ $ 2,492 ​ $ 3,274 ​ $ 1,376 ​ $ 12,185 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Major product lines: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production agriculture ​ $ 4,791 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 4,791 ​ Small agriculture ​ ​ ​ ​ $ 1,718 ​ ​ ​ ​ ​ ​ 1,718 ​ Turf ​ ​ ​ ​ ​ 649 ​ ​ ​ ​ ​ ​ 649 ​ Construction ​ ​ ​ ​ ​ ​ ​ $ 1,483 ​ ​ ​ 1,483 ​ Compact construction ​ ​ ​ ​ ​ ​ ​ ​ 626 ​ ​ ​ ​ ​ 626 ​ Roadbuilding ​ ​ ​ ​ ​ ​ ​ ​ 763 ​ ​ ​ 763 ​ Forestry ​ ​ ​ ​ ​ ​ ​ ​ 292 ​ ​ ​ 292 ​ Financial products ​ ​ 60 ​ ​ 26 ​ ​ 18 ​ $ 1,376 ​ 1,480 ​ Other ​ ​ 192 ​ ​ 99 ​ ​ 92 ​ ​ ​ 383 ​ Total ​ $ 5,043 ​ $ 2,492 ​ $ 3,274 ​ $ 1,376 ​ $ 12,185 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue recognized: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At a point in time ​ $ 4,955 ​ $ 2,456 ​ $ 3,243 ​ $ 28 ​ $ 10,682 ​ Over time ​ ​ 88 ​ ​ 36 ​ ​ 31 ​ ​ 1,348 ​ ​ 1,503 ​ Total ​ $ 5,043 ​ $ 2,492 ​ $ 3,274 ​ $ 1,376 ​ $ 12,185 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended January 29, 2023 ​ ​ ​ Production & Precision Ag ​ Small Ag & Turf ​ Construction & Forestry ​ Financial Services ​ Total ​ Primary geographic markets: ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 2,628 ​ $ 1,665 ​ $ 1,901 ​ $ 713 ​ $ 6,907 ​ Canada ​ ​ 360 ​ ​ 146 ​ ​ 275 ​ 150 ​ 931 ​ Western Europe ​ ​ 501 ​ ​ 564 ​ ​ 365 ​ 29 ​ 1,459 ​ Central Europe and CIS ​ ​ 202 ​ ​ 123 ​ ​ 75 ​ 12 ​ 412 ​ Latin America ​ ​ 1,237 ​ ​ 156 ​ ​ 339 ​ 95 ​ 1,827 ​ Asia, Africa, Oceania, and Middle East ​ ​ 375 ​ ​ 400 ​ ​ 300 ​ ​ 41 ​ ​ 1,116 ​ Total ​ $ 5,303 ​ $ 3,054 ​ $ 3,255 ​ $ 1,040 ​ $ 12,652 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Major product lines: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production agriculture ​ $ 5,112 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 5,112 ​ Small agriculture ​ ​ ​ ​ $ 2,194 ​ ​ ​ ​ ​ ​ 2,194 ​ Turf ​ ​ ​ ​ ​ 719 ​ ​ ​ ​ ​ ​ 719 ​ Construction ​ ​ ​ ​ ​ ​ ​ $ 1,483 ​ ​ ​ 1,483 ​ Compact construction ​ ​ ​ ​ ​ ​ ​ ​ 473 ​ ​ ​ ​ ​ 473 ​ Roadbuilding ​ ​ ​ ​ ​ ​ ​ ​ 818 ​ ​ ​ 818 ​ Forestry ​ ​ ​ ​ ​ ​ ​ ​ 356 ​ ​ ​ 356 ​ Financial products ​ ​ 31 ​ ​ 18 ​ ​ 13 ​ $ 1,040 ​ 1,102 ​ Other ​ ​ 160 ​ ​ 123 ​ ​ 112 ​ ​ ​ 395 ​ Total ​ $ 5,303 ​ $ 3,054 ​ $ 3,255 ​ $ 1,040 ​ $ 12,652 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue recognized: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At a point in time ​ $ 5,248 ​ $ 3,029 ​ $ 3,230 ​ $ 23 ​ $ 11,530 ​ Over time ​ ​ 55 ​ ​ 25 ​ ​ 25 ​ ​ 1,017 ​ ​ 1,122 ​ Total ​ $ 5,303 ​ $ 3,054 ​ $ 3,255 ​ $ 1,040 ​ $ 12,652 ​ ​ 8 ​ We invoice in advance of recognizing the sale of certain products and the revenue for certain services. These relate to extended warranty premiums, advance payments for future equipment sales, and subscription and service revenue related to precision guidance, telematic services, and other information enabled solutions. These advanced customer payments are presented as deferred revenue, a contract liability, in “Accounts payable and accrued expenses.” The deferred revenue received, but not recognized in revenue, was $ 1,747 , $ 1,697 , and $ 1,502 at January 28, 2024, October 29, 2023, and January 29, 2023, respectively. The contract liability is reduced as the revenue is recognized. During the three months ended January 28, 2024 and January 29, 2023, $ 230 and $ 215 , respectively, of revenue was recognized from deferred revenue that was recorded as a contract liability at the beginning of the respective fiscal year. The amount of unsatisfied performance obligations for contracts with an original duration greater than one year was $ 1,531 at January 28, 2024. The estimated revenue to be recognized by fiscal year follows: remainder of 2024 – $ 373 , 2025 – $ 409 , 2026 – $ 304 , 2027 – $ 179 , 2028 – $ 108 , 2029 – $ 74 , and later years – $ 84 . 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 28 ​ October 29 ​ January 29 ​ ​ ​ 2024 ​ 2023 ​ 2023 ​ Retirement benefits adjustment ​ $ ( 866 ) ​ $ ( 845 ) ​ $ ( 400 ) ​ Cumulative translation adjustment ​ ​ ( 1,877 ) ​ ​ ( 2,151 ) ​ ​ ( 1,913 ) ​ Unrealized gain (loss) on derivatives ​ ​ ( 23 ) ​ ​ ( 8 ) ​ ​ 8 ​ Unrealized loss on debt securities ​ ​ ( 97 ) ​ ​ ( 110 ) ​ ​ ( 67 ) ​ Total accumulated other comprehensive income (loss) ​ $ ( 2,863 ) ​ $ ( 3,114 ) ​ $ ( 2,372 ) ​ ​ The following tables reflect amounts recorded in other comprehensive income (loss), as well as reclassifications out of other comprehensive income (loss). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Before Tax After ​ ​ Tax ​ (Expense) ​ Tax Three Months Ended January 28, 2024 ​ Amount ​ Credit ​ Amount Cumulative translation adjustment $ 273 ​ $ 1 ​ $ 274 ​ Unrealized gain (loss) on derivatives: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized hedging gain (loss) ​ ​ ( 8 ) ​ ​ 2 ​ ​ ( 6 ) ​ Reclassification of realized (gain) loss to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts – Interest expense ​ ​ ( 11 ) ​ ​ 2 ​ ​ ( 9 ) ​ Net unrealized gain (loss) on derivatives ​ ​ ( 19 ) ​ ​ 4 ​ ​ ( 15 ) ​ Unrealized gain (loss) on debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gain (loss) ​ ​ 1 ​ ​ 6 ​ ​ 7 ​ Reclassification of realized (gain) loss – Other income ​ ​ 8 ​ ​ ( 2 ) ​ ​ 6 ​ Net unrealized gain (loss) on debt securities ​ ​ 9 ​ ​ 4 ​ ​ 13 ​ Retirement benefits adjustment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net actuarial gain (loss) ​ ​ ( 17 ) ​ ​ 4 ​ ​ ( 13 ) ​ Reclassification to Other operating expenses through amortization of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actuarial (gain) loss ​ ​ ( 20 ) ​ ​ 5 ​ ​ ( 15 ) ​ Prior service (credit) cost ​ ​ 9 ​ ​ ( 2 ) ​ ​ 7 ​ Net unrealized gain (loss) on retirement benefits adjustment ​ ​ ( 28 ) ​ ​ 7 ​ ​ ( 21 ) ​ Total other comprehensive income (loss) $ 235 ​ $ 16 ​ $ 251 ​ ​ 9 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Before Tax After ​ ​ Tax ​ (Expense) ​ Tax Three Months Ended January 29, 2023 ​ Amount ​ Credit ​ Amount Cumulative translation adjustment $ 669 ​ $ 12 ​ $ 681 ​ Unrealized gain (loss) on derivatives: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized hedging gain (loss) ​ ​ ( 1 ) ​ ​ ​ ​ ​ ( 1 ) ​ Reclassification of realized (gain) loss to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts – Interest expense ​ ​ ( 15 ) ​ ​ 3 ​ ​ ( 12 ) ​ Net unrealized gain (loss) on derivatives ​ ​ ( 16 ) ​ ​ 3 ​ ​ ( 13 ) ​ Unrealized gain (loss) on debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gain (loss) ​ ​ 34 ​ ​ ( 7 ) ​ ​ 27 ​ Net unrealized gain (loss) on debt securities ​ ​ 34 ​ ​ ( 7 ) ​ ​ 27 ​ Retirement benefits adjustment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net actuarial gain (loss) ​ ​ ( 1 ) ​ ​ ​ ​ ​ ( 1 ) ​ Reclassification to Other operating expenses through amortization of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actuarial (gain) loss ​ ​ ( 21 ) ​ ​ 5 ​ ​ ( 16 ) ​ Prior service (credit) cost ​ ​ 9 ​ ​ ( 3 ) ​ ​ 6 ​ Net unrealized gain (loss) on retirement benefits adjustment ​ ​ ( 13 ) ​ ​ 2 ​ ​ ( 11 ) ​ Total other comprehensive income (loss) $ 674 ​ $ 10 ​ $ 684 ​ ​ ​ ​ ​ (5)    Earnings Per Share A reconciliation of basic and diluted net income per share attributable to Deere & Company follows in millions, except per share amounts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ January 28 ​ January 29 ​ ​ ​ 2024 ​ 2023 ​ Net income attributable to Deere & Company $ 1,751 $ 1,959 ​ Average shares outstanding ​ ​ 279.9 ​ 297.6 ​ Basic per share ​ $ 6.25 ​ $ 6.58 ​ ​ ​ ​ ​ ​ ​ ​ ​ Average shares outstanding ​ ​ 279.9 ​ 297.6 ​ Effect of dilutive stock options and restricted stock awards ​ ​ 1.2 ​ 1.5 ​ Total potential shares outstanding ​ ​ 281.1 ​ 299.1 ​ Diluted per share ​ $ 6.23 ​ $ 6.55 ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares excluded from EPS calculation, as antidilutive ​ ​ .2 ​ ​ .1 ​ ​ 10 ​ (6)    Pension and Other Postretirement Benefits We have several funded and unfunded defined benefit pension plans and other postretirement benefit (OPEB) plans. These plans cover U.S. employees and certain foreign employees. The components of net periodic pension and OPEB (benefit) cost consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ January 28 ​ January 29 ​ ​ 2024 ​ 2023 Pensions ​ ​ ​ ​ ​ ​ ​ Service cost $ 58 $ 60 ​ Interest cost ​ ​ 136 ​ 133 ​ Expected return on plan assets ​ ​ ( 241 ) ​ ( 212 ) ​ Amortization of actuarial gain ​ ​ ( 4 ) ​ ( 5 ) ​ Amortization of prior service cost ​ ​ 10 ​ 10 ​ Net benefit ​ $ ( 41 ) ​ $ ( 14 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ OPEB ​ ​ ​ ​ ​ ​ ​ Service cost ​ $ 5 ​ $ 7 ​ Interest cost ​ ​ 43 ​ 43 ​ Expected return on plan assets ​ ​ ( 27 ) ​ ( 29 ) ​ Amortization of actuarial gain ​ ​ ( 16 ) ​ ( 16 ) ​ Amortization of prior service credit ​ ​ ( 1 ) ​ ( 1 ) ​ Net cost ​ $ 4 ​ $ 4 ​ ​ The components of net periodic pension and OPEB (benefit) cost excluding the service cost component are included in the line item “Other operating expenses.” During the first three months of 2024, we contributed and expect to contribute the following amounts to our pension and OPEB plans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pensions ​ OPEB ​ Contributed $ 24 $ 106 Expected contributions remainder of the year ​ ​ 61 ​ 34 ​ ​ In December 2023, we contributed $ 60 to a U.S. non-union Voluntary Employees’ Beneficiary Association trust, which is included in the OPEB contributed amount. The contribution will be used to fund salary postretirement health care benefits during the remainder of 2024. ​ 11 ​ (7)    Segment Data Information relating to operations by operating segment follows. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ January 28 ​ January 29 ​ % ​ 2024 2023 Change Net sales and revenues: ​ ​ ​ Production & precision ag net sales $ 4,849 ​ $ 5,198 ​ - 7 ​ Small ag & turf net sales ​ ​ 2,425 ​ ​ 3,001 ​ - 19 ​ Construction & forestry net sales ​ ​ 3,212 ​ 3,203 ​ ​ ​ Financial services revenues ​ ​ 1,376 ​ 1,040 ​ + 32 ​ Other revenues ​ ​ 323 ​ 210 ​ + 54 ​ Total net sales and revenues $ 12,185 ​ $ 12,652 ​ - 4 ​ Operating profit: ​ ​ ​ ​ ​ ​ ​ ​ ​ Production & precision ag $ 1,045 ​ $ 1,208 ​ - 13 ​ Small ag & turf ​ ​ 326 ​ ​ 447 ​ - 27 ​ Construction & forestry ​ ​ 566 ​ 625 ​ - 9 ​ Financial services ​ ​ 257 ​ 238 ​ + 8 ​ Total operating profit ​ ​ 2,194 ​ 2,518 ​ - 13 ​ Reconciling items ​ ​ 26 ​ ( 22 ) ​ ​ ​ Income taxes ​ ​ ( 469 ) ​ ( 537 ) ​ - 13 ​ Net income attributable to Deere & Company $ 1,751 ​ $ 1,959 ​ - 11 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intersegment sales and revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ Production & precision ag net sales $ 8 ​ $ 5 ​ + 60 ​ Small ag & turf net sales ​ ​ 1 ​ ​ 3 ​ - 67 ​ Construction & forestry net sales ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial services revenues ​ ​ 176 ​ 204 ​ - 14 ​ Operating profit for PPA, SAT, and CF is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit of financial services includes the effect of interest expense and foreign exchange gains and losses. Reconciling items to net income are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and OPEB benefit (cost) amounts excluding the service cost component, equity in income of unconsolidated affiliates, and net income attributable to noncontrolling interests. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Identifiable operating assets were as follows: ​ ​ ​ ​ ​ January 28 October 29 January 29 ​ ​ 2024 ​ 2023 ​ 2023 ​ Production & precision ag $ 9,059 ​ $ 8,734 ​ $ 9,393 ​ Small ag & turf ​ ​ 4,426 ​ ​ 4,348 ​ ​ 4,893 ​ Construction & forestry ​ ​ 7,371 ​ 7,139 ​ 7,232 ​ Financial services ​ ​ 69,900 ​ 70,732 ​ 59,721 ​ Corporate ​ ​ 10,615 ​ 13,134 ​ 10,381 ​ Total assets $ 101,371 ​ $ 104,087 ​ $ 91,620 ​ ​ (8)    Financing Receivables We monitor the credit quality of financing receivables based on delinquency status, defined as follows: ● Past due balances represent any payments 30 days or more past the due date. ● Non-performing financing receivables represent receivables for which we have stopped accruing finance income. This generally occurs when receivables are 90 days delinquent. ● Write-offs generally occur when receivables are 120 days delinquent. In these situations, the estimated uncollectible amount is written off to the allowance for credit losses. Any expected recovery is presented as non-performing. 12 ​ The credit quality analysis of retail notes, financing leases, and revolving charge accounts (collectively, retail customer receivables) by year of origination was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 28, 2024 ​ ​ ​ 2024 ​ 2023 ​ 2022 ​ 2021 ​ 2020 ​ Prior Years ​ Revolving Charge Accounts ​ Total ​ Retail customer receivables: Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 3,248 ​ $ 13,626 ​ $ 7,731 ​ $ 4,577 ​ $ 2,032 ​ $ 931 ​ $ 2,798 ​ $ 34,943 ​ 30-59 days past due ​ ​ 5 ​ ​ 122 ​ ​ 66 ​ ​ 47 ​ ​ 22 ​ ​ 11 ​ ​ 71 ​ ​ 344 ​ 60-89 days past due ​ ​ 1 ​ ​ 50 ​ ​ 26 ​ ​ 15 ​ ​ 7 ​ ​ 5 ​ ​ 16 ​ ​ 120 ​ 90+ days past due ​ ​ ​ ​ ​ 1 ​ ​ 1 ​ ​ 3 ​ ​ 4 ​ ​ ​ ​ ​ ​ ​ ​ 9 ​ Non-performing ​ ​ ​ ​ ​ 49 ​ ​ 95 ​ ​ 66 ​ ​ 34 ​ ​ 42 ​ ​ 11 ​ ​ 297 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 803 ​ ​ 2,698 ​ ​ 1,743 ​ ​ 911 ​ ​ 276 ​ ​ 109 ​ ​ 101 ​ ​ 6,641 ​ 30-59 days past due ​ ​ 8 ​ ​ 73 ​ ​ 46 ​ ​ 26 ​ ​ 8 ​ ​ 3 ​ ​ 5 ​ ​ 169 ​ 60-89 days past due ​ ​ ​ ​ ​ 26 ​ ​ 20 ​ ​ 13 ​ ​ 6 ​ ​ 3 ​ ​ 2 ​ ​ 70 ​ 90+ days past due ​ ​ ​ ​ ​ ​ ​ ​ 2 ​ ​ 1 ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ 4 ​ Non-performing ​ ​ 1 ​ ​ 67 ​ ​ 86 ​ ​ 48 ​ ​ 20 ​ ​ 9 ​ ​ 2 ​ ​ 233 ​ Total retail customer receivables ​ $ 4,066 ​ $ 16,712 ​ $ 9,816 ​ $ 5,707 ​ $ 2,409 ​ $ 1,114 ​ $ 3,006 ​ $ 42,830 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 29, 2023 ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ 2020 ​ 2019 ​ Prior Years ​ Revolving Charge Accounts ​ Total ​ Retail customer receivables: ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 15,191 ​ $ 8,430 ​ $ 5,120 ​ $ 2,334 ​ $ 853 ​ $ 280 ​ $ 4,526 ​ $ 36,734 ​ 30-59 days past due ​ ​ 62 ​ ​ 75 ​ ​ 39 ​ ​ 21 ​ ​ 9 ​ ​ 3 ​ ​ 29 ​ ​ 238 ​ 60-89 days past due ​ ​ 18 ​ ​ 26 ​ ​ 18 ​ ​ 10 ​ ​ 4 ​ ​ 2 ​ ​ 9 ​ ​ 87 ​ 90+ days past due ​ ​ 2 ​ ​ 1 ​ ​ 3 ​ ​ 3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 9 ​ Non-performing ​ ​ 30 ​ ​ 78 ​ ​ 62 ​ ​ 33 ​ ​ 22 ​ ​ 22 ​ ​ 8 ​ ​ 255 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 2,927 ​ ​ 1,961 ​ ​ 1,084 ​ ​ 353 ​ ​ 84 ​ ​ 29 ​ ​ 119 ​ ​ 6,557 ​ 30-59 days past due ​ ​ 49 ​ ​ 34 ​ ​ 27 ​ ​ 9 ​ ​ 4 ​ ​ ​ ​ ​ 4 ​ ​ 127 ​ 60-89 days past due ​ ​ 19 ​ ​ 14 ​ ​ 12 ​ ​ 5 ​ ​ 2 ​ ​ ​ ​ ​ 2 ​ ​ 54 ​ 90+ days past due ​ ​ ​ ​ ​ 6 ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ 8 ​ Non-performing ​ ​ 42 ​ ​ 80 ​ ​ 55 ​ ​ 23 ​ ​ 9 ​ ​ 4 ​ ​ 1 ​ ​ 214 ​ Total retail customer receivables ​ $ 18,340 ​ $ 10,705 ​ $ 6,421 ​ $ 2,791 ​ $ 987 ​ $ 341 ​ $ 4,698 ​ $ 44,283 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 29, 2023 ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ 2020 ​ 2019 ​ Prior Years ​ Revolving Charge Accounts ​ Total ​ Retail customer receivables: Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 2,939 ​ $ 12,435 ​ $ 7,228 ​ $ 3,660 ​ $ 1,600 ​ $ 823 ​ $ 2,753 ​ $ 31,438 ​ 30-59 days past due ​ ​ 2 ​ ​ 39 ​ ​ 39 ​ ​ 54 ​ ​ 13 ​ ​ 44 ​ ​ 28 ​ ​ 219 ​ 60-89 days past due ​ ​ 1 ​ ​ 15 ​ ​ 14 ​ ​ 20 ​ ​ 5 ​ ​ 15 ​ ​ 6 ​ ​ 76 ​ 90+ days past due ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ 3 ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ ​ 5 ​ Non-performing ​ ​ ​ ​ ​ 40 ​ ​ 58 ​ ​ 41 ​ ​ 27 ​ ​ 34 ​ ​ 8 ​ ​ 208 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 674 ​ ​ 2,692 ​ ​ 1,702 ​ ​ 684 ​ ​ 224 ​ ​ 80 ​ ​ 99 ​ ​ 6,155 ​ 30-59 days past due ​ ​ 2 ​ ​ 18 ​ ​ 29 ​ ​ 36 ​ ​ 16 ​ ​ 52 ​ ​ 5 ​ ​ 158 ​ 60-89 days past due ​ ​ ​ ​ ​ 9 ​ ​ 17 ​ ​ 18 ​ ​ 8 ​ ​ 24 ​ ​ 2 ​ ​ 78 ​ 90+ days past due ​ ​ ​ ​ ​ 1 ​ ​ 2 ​ ​ 1 ​ ​ 2 ​ ​ 1 ​ ​ ​ ​ ​ 7 ​ Non-performing ​ ​ ​ ​ ​ 46 ​ ​ 58 ​ ​ 30 ​ ​ 16 ​ ​ 7 ​ ​ 1 ​ ​ 158 ​ Total retail customer receivables ​ $ 3,618 ​ $ 15,296 ​ $ 9,147 ​ $ 4,547 ​ $ 1,912 ​ $ 1,080 ​ $ 2,902 ​ $ 38,502 ​ ​ 13 ​ The credit quality analysis of wholesale receivables by year of origination was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 28, 2024 ​ ​ ​ 2024 ​ 2023 ​ 2022 ​ 2021 ​ 2020 ​ Prior Years ​ Revolving ​ Total ​ Wholesale receivables: ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 266 ​ $ 463 ​ $ 68 ​ $ 6 ​ $ 3 ​ $ 1 ​ $ 5,757 ​ $ 6,564 ​ 30+ days past due ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ 1 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 6 ​ ​ 14 ​ ​ 4 ​ ​ 19 ​ ​ ​ ​ ​ 1 ​ ​ 863 ​ ​ 907 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total wholesale receivables ​ $ 272 ​ $ 478 ​ $ 72 ​ $ 25 ​ $ 3 ​ $ 3 ​ $ 6,620 ​ $ 7,473 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 29, 2023 ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ 2020 ​ 2019 ​ Prior Years ​ Revolving ​ Total ​ Wholesale receivables: ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 631 ​ $ 93 ​ $ 21 ​ $ 4 ​ $ 1 ​ $ 160 ​ $ 5,175 ​ $ 6,085 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 23 ​ ​ 5 ​ ​ 20 ​ ​ ​ ​ ​ ​ ​ ​ 76 ​ ​ 712 ​ ​ 836 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total wholesale receivables ​ $ 654 ​ $ 98 ​ $ 41 ​ $ 4 ​ $ 2 ​ $ 236 ​ $ 5,887 ​ $ 6,922 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 29, 2023 ​ ​ ​ 2023 ​ 2022 ​ 2021 ​ 2020 ​ 2019 ​ Prior Years ​ Revolving ​ Total ​ Wholesale receivables: ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 115 ​ $ 285 ​ $ 48 ​ $ 21 ​ $ 4 ​ $ 1 ​ $ 2,654 ​ $ 3,128 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 7 ​ ​ 7 ​ ​ 24 ​ ​ 2 ​ ​ ​ ​ ​ 1 ​ ​ 459 ​ ​ 500 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total wholesale receivables ​ $ 122 ​ $ 292 ​ $ 72 ​ $ 24 ​ $ 4 ​ $ 2 ​ $ 3,113 ​ $ 3,629 ​ ​ ​ 14 ​ An analysis of the allowance for credit losses and investment in financing receivables follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended January 28, 2024 ​ ​ ​ Retail Notes ​ Revolving ​ ​ ​ ​ ​ ​ ​ ​ ​ & Financing ​ Charge ​ Wholesale ​ ​ ​ ​ ​ ​ Leases ​ Accounts ​ Receivables ​ Total ​ Allowance: ​ ​ Beginning of period balance $ 172 $ 21 ​ $ 4 ​ $ 197 ​ Provision (credit) ​ ​ 35 ​ ​ ( 2 ) ​ ​ ​ ​ ​ 33 ​ Write-offs ​ ​ ( 31 ) ​ ​ ( 11 ) ​ ​ ​ ​ ​ ( 42 ) ​ Recoveries ​ ​ 1 ​ ​ 8 ​ ​ ​ ​ ​ 9 ​ Translation adjustments ​ ​ ​ ​ ​ ​ ​ ​ ( 2 ) ​ ​ ( 2 ) ​ End of period balance $ 177 $ 16 ​ $ 2 ​ $ 195 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financing receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ End of period balance $ 39,824 $ 3,006 ​ $ 7,473 ​ $ 50,303 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended January 29, 2023 ​ ​ Retail Notes ​ Revolving ​ ​ ​ ​ ​ ​ ​ ​ & Financing ​ Charge ​ Wholesale ​ ​ ​ ​ ​ Leases ​ Accounts ​ Receivables ​ Total ​ Allowance: ​ ​ ​ ​ ​ Beginning of period balance ​ $ 299 $ 22 ​ $ 4 ​ $ 325 ​ Provision (credit) ​ 15 ​ ​ ( 4 ) ​ ​ ​ ​ 11 ​ Provision transferred to held for sale ​ ​ ( 142 ) ​ ​ ​ ​ ​ ​ ​ ​ ( 142 ) ​ Provision (credit) ​ ​ ( 127 ) ​ ​ ( 4 ) ​ ​ ​ ​ ​ ( 131 ) ​ Write-offs ​ ( 18 ) ​ ​ ( 7 ) ​ ​ ​ ​ ( 25 ) ​ Recoveries ​ 4 ​ ​ 5 ​ ​ 1 ​ 10 ​ Translation adjustments ​ ( 18 ) ​ ​ ​ ​ ​ ( 1 ) ​ ( 19 ) ​ End of period balance ​ $ 140 ​ $ 16 ​ $ 4 ​ $ 160 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financing receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ End of period balance ​ $ 35,600 $ 2,902 ​ $ 3,629 ​ $ 42,131 ​ The allowance for credit losses remained generally flat in the first quarter of 2024. In the first quarter of 2023, we determined that the financial services business in Russia met the held for sale criteria. The financing receivables in Russia were reclassified to “Other assets.” The associated allowance for credit losses was reversed and a valuation allowance for the assets held for sale was recorded. These operations were sold in the second quarter of 2023 (see Note 20). Write-offs by year of origination were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended January 28, 2024 ​ ​ ​ 2024 ​ 2023 ​ 2022 ​ 2021 ​ 2020 ​ Prior Years ​ Revolving Charge Accounts ​ Total ​ Retail customer receivables: ​ Agriculture and turf ​ ​ ​ ​ $ 2 ​ $ 4 ​ $ 3 ​ $ 4 ​ $ 1 ​ $ 9 ​ $ 23 ​ Construction and forestry ​ ​ ​ ​ ​ 6 ​ ​ 7 ​ ​ 2 ​ ​ 1 ​ ​ 1 ​ ​ 2 ​ ​ 19 ​ Total retail customer receivables ​ ​ ​ ​ $ 8 ​ $ 11 ​ $ 5 ​ $ 5 ​ $ 2 ​ $ 11 ​ $ 42 ​ ​ Modifications We occasionally grant contractual modifications to customers experiencing financial difficulties. Before offering a modification, we evaluate the ability of the customer to meet the modified payment terms. Modifications offered include payment deferrals, term extensions, or a combination thereof. Finance charges continue to accrue during the deferral or extension period. Our allowance for credit losses incorporates historical loss information, including the effects of loan modifications with customers. Therefore, additional adjustments to the allowance are generally not recorded upon modification of a loan. 15 ​ The ending amortized cost of modified loans with borrowers experiencing financial difficulty during the three months ended January 28, 2024 were $ 17 , of which $ 16 were current and $ 1 were non-performing. These modifications represented 0.03 percent of our financing receivable portfolio at January 28, 2024. Defaults and subsequent write-offs of loans modified in the prior twelve months were not significant during the three months ended January 28, 2024. In addition, at January 28, 2024, we had no commitments to provide additional financing to these customers. (9)    Securitization of Financing Receivables Our funding strategy includes receivable securitizations, which allows us to receive cash for financing receivables immediately. While these securitization programs are administered in various forms, they are accomplished in the following basic steps: 1. We transfer financing receivables into a bankruptcy-remote special purpose entity (SPE). 2. The SPE issues debt to investors. The debt is secured by the financing receivables. 3. Investors are paid back based on cash receipts from the financing receivables. As part of step 1, these receivables are legally isolated from the claims of our general creditors. This ensures cash receipts from the financing receivables are accessible to pay back securitization program investors. The structure of these transactions does not meet the accounting criteria for a sale of receivables. As a result, they are accounted for as a secured borrowing. The receivables and borrowings remain on our balance sheet and are separately reported as “Financing receivables securitized – net” and “Short-term securitization borrowings,” respectively. The components of securitization programs were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 28 October 29 January 29 ​ ​ 2024 ​ 2023 ​ 2023 Financing receivables securitized (retail notes) $ 6,418 ​ $ 7,357 ​ $ 5,102 ​ Allowance for credit losses ​ ​ ( 18 ) ​ ( 22 ) ​ ( 13 ) ​ Other assets (primarily restricted cash) ​ ​ 140 ​ 152 ​ 97 ​ Total restricted securitized assets $ 6,540 ​ $ 7,487 ​ $ 5,186 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term securitization borrowings ​ $ 6,116 ​ $ 6,995 ​ $ 4,864 ​ Accrued interest on borrowings ​ ​ 10 ​ ​ 13 ​ 6 ​ Total liabilities related to restricted securitized assets ​ $ 6,126 ​ $ 7,008 ​ $ 4,870 ​ ​ ​ (10)    Inventories A majority of inventories owned by us are valued at cost on the “last-in, first-out” (LIFO) basis. If all inventories had been valued on a “first-in, first-out” (FIFO) basis, the estimated inventories by major classification would have been as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 28 October 29 January 29 ​ ​ 2024 ​ 2023 ​ 2023 Raw materials and supplies $ 4,117 ​ $ 4,080 ​ $ 4,975 ​ Work-in-process ​ ​ 1,223 ​ 1,010 ​ 1,478 ​ Finished goods and parts ​ ​ 6,146 ​ 5,435 ​ 6,347 ​ Total FIFO value ​ ​ 11,486 ​ 10,525 ​ 12,800 ​ Excess of FIFO over LIFO ​ ​ 2,549 ​ 2,365 ​ 2,744 ​ Inventories $ 8,937 ​ $ 8,160 ​ $ 10,056 ​ ​ 16 ​ (11)    Goodwill and Other Intangible Assets – Net The changes in amounts of goodwill by operating segments were as follows. There were no accumulated goodwill impairment losses. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production & Precision Ag ​ Small Ag & Turf ​ Construction & Forestry ​ Total Goodwill at October 30, 2022 ​ $ 646 ​ $ 318 ​ $ 2,723 ​ $ 3,687 ​ Translation adjustments ​ 15 ​ ​ 7 ​ ​ 182 ​ 204 ​ Goodwill at January 29, 2023 ​ $ 661 ​ $ 325 ​ $ 2,905 ​ $ 3,891 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill at October 29, 2023 ​ $ 702 ​ $ 363 ​ $ 2,835 ​ $ 3,900 ​ Translation adjustments ​ ​ 4 ​ ​ 2 ​ ​ 60 ​ ​ 66 ​ Goodwill at January 28, 2024 ​ $ 706 ​ $ 365 ​ $ 2,895 ​ $ 3,966 ​ ​ The components of other intangible assets were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 28 October 29 January 29 ​ ​ 2024 ​ 2023 ​ 2023 Customer lists and relationships $ 509 ​ $ 501 ​ $ 522 ​ Technology, patents, trademarks, and other ​ ​ 1,412 ​ 1,387 ​ 1,387 ​ Total at cost ​ ​ 1,921 ​ 1,888 ​ 1,909 ​ Less accumulated amortization: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer lists and relationships ​ ​ 207 ​ ​ 195 ​ ​ 184 ​ Technology, patents, trademarks, and other ​ ​ 602 ​ ​ 560 ​ ​ 470 ​ Total accumulated amortization ​ ​ 809 ​ ​ 755 ​ ​ 654 ​ Other intangible assets – net $ 1,112 ​ $ 1,133 ​ $ 1,255 ​ ​ The amortization of other intangible assets in the first quarter of 2024 and 2023 was $ 42 and $ 39 , respectively. The estimated amortization expense for the next five years is as follows: remainder of 2024 – $ 131 , 2025 – $ 144 , 2026 – $ 121 , 2027 – $ 119 , 2028 – $ 87 , and 2029 – $ 74 . ​ (12)    Short-Term Borrowings Short-term borrowings were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 28 October 29 January 29 ​ ​ 2024 ​ 2023 ​ 2023 ​ Commercial paper ​ $ 8,378 ​ $ 9,100 ​ $ 6,425 ​ Notes payable to banks ​ ​ 310 ​ ​ 483 ​ ​ 303 ​ Finance lease obligations due within one year ​ ​ 27 ​ ​ 25 ​ ​ 23 ​ Long-term borrowings due within one year ​ 8,402 ​ 8,331 ​ 7,378 ​ Short-term borrowings ​ $ 17,117 ​ $ 17,939 ​ $ 14,129 ​ ​ ​ ​ 17 ​ (13)  Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 28 October 29 January 29 ​ 2024 2023 ​ 2023 ​ Accounts payable: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trade payables $ 3,184 $ 3,467 ​ $ 3,616 ​ Dividends payable ​ 413 ​ 388 ​ 358 ​ Operating lease liabilities ​ ​ 293 ​ ​ 281 ​ ​ 305 ​ Deposits withheld from dealers and merchants ​ ​ 153 ​ ​ 163 ​ ​ 153 ​ Payables to unconsolidated affiliates ​ ​ 6 ​ ​ 6 ​ ​ 10 ​ Other ​ 183 ​ 153 ​ 156 ​ Accrued expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee benefits ​ 1,107 ​ 2,152 ​ 1,015 ​ Product warranties ​ 1,589 ​ 1,610 ​ 1,444 ​ Accrued taxes ​ ​ 1,364 ​ ​ 1,558 ​ ​ 1,336 ​ Derivative liabilities ​ ​ 744 ​ ​ 1,130 ​ ​ 891 ​ Dealer sales discounts ​ 243 ​ 1,243 ​ 256 ​ Extended warranty premium ​ ​ 1,047 ​ ​ 1,021 ​ ​ 901 ​ Unearned revenue (contractual liability) ​ 700 ​ 676 ​ 601 ​ Unearned operating lease revenue ​ ​ 456 ​ ​ 451 ​ ​ 406 ​ Accrued interest ​ ​ 502 ​ ​ 434 ​ ​ 371 ​ Other ​ 1,377 ​ 1,397 ​ 1,289 ​ Accounts payable and accrued expenses $ 13,361 $ 16,130 ​ $ 13,108 ​ ​ Amounts are presented net of eliminations, which primarily consist of dealer sales incentives with a right of set-off against trade receivables of $ 2,410 at January 28, 2024, $ 2,228 at October 29, 2023, and $ 1,540 at January 29, 2023. Other eliminations were made for accrued taxes and other accrued expenses. ​ (14)    Long-Term Borrowings Long-term borrowings consisted of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 28 October 29 January 29 ​ ​ 2024 ​ 2023 ​ 2023 ​ Underwritten term debt ​ ​ ​ ​ ​ ​ ​ U.S. dollar notes and debentures: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2.75 % notes due 2025 ​ $ 700 ​ $ 700 ​ $ 700 ​ 6.55 % debentures due 2028 ​ 200 ​ 200 ​ 200 ​ 5.375 % notes due 2029 ​ 500 ​ 500 ​ 500 ​ 3.10 % notes due 2030 ​ 700 ​ 700 ​ ​ 700 ​ 8.10 % debentures due 2030 ​ ​ 250 ​ ​ 250 ​ 250 ​ 7.125 % notes due 2031 ​ 300 ​ 300 ​ 300 ​ 3.90 % notes due 2042 ​ 1,250 ​ 1,250 ​ 1,250 ​ 2.875 % notes due 2049 ​ ​ 500 ​ ​ 500 ​ ​ 500 ​ 3.75 % notes due 2050 ​ ​ 850 ​ ​ 850 ​ ​ 850 ​ Euro notes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1.375 % notes due 2024 (€ 800 principal) ​ ​ ​ ​ ​ ​ ​ ​ 871 ​ 1.85 % notes due 2028 (€ 600 principal) ​ ​ 651 ​ ​ 634 ​ ​ 653 ​ 2.20 % notes due 2032 (€ 600 principal) ​ ​ 651 ​ ​ 634 ​ ​ 653 ​ 1.65 % notes due 2039 (€ 650 principal) ​ ​ 705 ​ ​ 687 ​ ​ 708 ​ Serial issuances: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Medium-term notes ​ 31,001 ​ ​ 29,638 ​ ​ 25,618 ​ Other notes and finance lease obligations ​ 1,810 ​ 1,769 ​ 1,440 ​ Less debt issuance costs and debt discounts ​ ​ ( 135 ) ​ ​ ( 135 ) ​ ​ ( 122 ) ​ Long-term borrowings $ 39,933 ​ $ 38,477 ​ $ 35,071 ​ ​ Medium-term notes due through 2033 are primarily offered by prospectus and issued at fixed and variable rates. The principal balances of the medium-term notes were $ 31,808 , $ 30,902 , and $ 26,367 at January 28, 2024, October 29, 2023, and January 29, 2023, respectively. All outstanding notes and debentures are senior unsecured borrowings and rank equally with each other. 18 ​ ​ (15)    Leases - Lessor We lease equipment manufactured or sold by us through John Deere Financial. Sales-type and direct financing leases are reported in “Financing receivables – net.” Operating leases are reported in “Equipment on operating leases – net.” Lease revenues earned by us follow: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ January 28 ​ January 29 ​ ​ ​ 2024 ​ 2023 ​ Sales-type and direct finance lease revenues ​ $ 47 ​ $ 41 ​ Operating lease revenues ​ ​ 339 ​ ​ 321 ​ Variable lease revenues ​ ​ 4 ​ ​ 6 ​ Total lease revenues ​ $ 390 ​ $ 368 ​ ​ (16)    Commitments and Contingencies A standard warranty is provided as assurance that the equipment will function as intended. The standard warranty period varies by product and region. At the time a sale is recognized, we record an estimate of future warranty costs based on historical claims rate experience and estimated population under warranty. The reconciliation of the changes in the warranty liability follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ January 28 ​ January 29 ​ ​ ​ 2024 ​ 2023 ​ Beginning of period balance $ 1,610 $ 1,427 ​ Warranty claims paid ​ ​ ( 309 ) ​ ( 262 ) ​ New product warranty accruals ​ ​ 281 ​ 256 ​ Foreign exchange ​ ​ 7 ​ 23 ​ End of period balance ​ $ 1,589 ​ $ 1,444 ​ ​ The costs for extended warranty programs are recognized as incurred. In certain international markets, we provide guarantees to banks for the retail financing of John Deere equipment. At January 28, 2024, the notional value of these guarantees was $ 166 . We may repossess the equipment collateralizing the receivables. At January 28, 2024, the accrued losses under these agreements were not material. We also had other miscellaneous contingent liabilities and guarantees totaling approximately $ 115 at January 28, 2024. The accrued liability for these contingencies was not material at January 28, 2024. At January 28, 2024, we had commitments of $ 597 for the construction and acquisition of property and equipment. Also, at January 28, 2024, we had restricted assets of $ 214 , classified as “Other assets.” We are subject to various unresolved legal actions. The accrued losses on these matters are not material. We believe the reasonably possible range of losses for these unresolved legal actions would not have a material effect on our financial statements. The most prevalent legal claims relate to product liability (including asbestos-related liability), retail credit, employment, patent, trademark, and antitrust matters . 19 ​ (17)    Fair Value Measurements The fair values of financial instruments that do not approximate the carrying values were as follows. Long-term borrowings exclude finance lease liabilities. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 28, 2024 ​ October 29, 2023 ​ January 29, 2023 ​ ​ Carrying Value ​ Fair Value ​ Carrying Value ​ Fair Value ​ Carrying Value ​ Fair Value Financing receivables – net ​ $ 43,708 ​ $ 43,236 ​ $ 43,673 ​ $ 42,777 ​ $ 36,882 ​ $ 35,894 ​ Financing receivables securitized – net ​ ​ 6,400 ​ ​ 6,225 ​ ​ 7,335 ​ ​ 7,056 ​ ​ 5,089 ​ ​ 4,869 ​ Short-term securitization borrowings ​ ​ 6,116 ​ ​ 6,104 ​ ​ 6,995 ​ ​ 6,921 ​ ​ 4,864 ​ ​ 4,785 ​ Long-term borrowings due within one year ​ ​ 8,402 ​ ​ 8,283 ​ ​ 8,331 ​ 8,156 ​ ​ 7,378 ​ ​ 7,220 ​ Long-term borrowings ​ ​ 39,878 ​ ​ 39,321 ​ ​ 38,428 ​ 36,873 ​ ​ 35,035 ​ ​ 34,149 ​ Fair value measurements above were Level 3 for all financing receivables and Level 2 for all borrowings. Fair values of the financing receivables that were issued long-term were based on the discounted values of their related cash flows at interest rates currently being offered by us for similar financing receivables. The fair values of the remaining financing receivables approximated the carrying amounts. Fair values of long-term borrowings and short-term securitization borrowings were based on current market quotes for identical or similar borrowings and credit risk, or on the discounted values of their related cash flows at current market interest rates. Assets and liabilities measured at fair value on a recurring basis follow, excluding our cash equivalents, which were carried at a cost that approximates fair value and consisted of money market funds and time deposits. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 28 October 29 January 29 ​ ​ 2024 ​ 2023 ​ 2023 Level 1: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Marketable securities ​ ​ ​ ​ ​ ​ ​ ​ ​ International equity securities ​ $ 5 ​ $ 3 ​ $ 2 ​ International mutual funds securities ​ ​ 57 ​ ​ 101 ​ ​ ​ ​ U.S. equity fund ​ ​ 105 ​ ​ 86 ​ ​ 86 ​ U.S. fixed income fund ​ ​ 34 ​ 32 ​ 118 ​ U.S. government debt securities ​ ​ 274 ​ 78 ​ 64 ​ Total Level 1 marketable securities ​ ​ 475 ​ ​ 300 ​ ​ 270 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 2: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Marketable securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate debt securities ​ ​ 220 ​ 244 ​ 209 ​ International debt securities ​ ​ 87 ​ ​ 1 ​ ​ 18 ​ Mortgage-backed securities ​ ​ 161 ​ 185 ​ 157 ​ Municipal debt securities ​ ​ 69 ​ 75 ​ 71 ​ U.S. government debt securities ​ ​ 124 ​ ​ 141 ​ ​ 127 ​ Total Level 2 marketable securities ​ ​ 661 ​ 646 ​ 582 ​ Other assets – Derivatives ​ 253 ​ ​ 292 ​ ​ 360 ​ Accounts payable and accrued expenses – Derivatives ​ ​ 744 ​ ​ 1,130 ​ ​ 891 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 3: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable and accrued expenses – Deferred consideration ​ 176 ​ ​ 186 ​ ​ 225 ​ ​ The mortgage-backed securities are primarily issued by U.S. government sponsored enterprises. 20 ​ The contractual maturities of debt securities at January 28, 2024 follow: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ Fair ​ ​ ​ Cost ​ Value ​ Due in one year or less $ 22 ​ $ 21 ​ Due after one through five years ​ ​ 242 ​ ​ 194 ​ Due after five through 10 years ​ ​ 421 ​ ​ 398 ​ Due after 10 years ​ ​ 192 ​ ​ 161 ​ Mortgage-backed securities ​ ​ 189 ​ ​ 161 ​ Debt securities $ 1,066 $ 935 ​ ​ Actual maturities may differ from contractual maturities because some securities may be called or prepaid. Mortgage-backed securities contain prepayment provisions and are not categorized by contractual maturity. The following is a description of the valuation methodologies we use to measure certain financial instruments on the balance sheets at fair value: Marketable securities – The portfolio of investments is valued on a market approach (matrix pricing model) in which all significant inputs are observable or can be derived from or corroborated by observable market data such as interest rates, yield curves, volatilities, credit risk, and prepayment speeds. Funds are valued using the fund’s net asset value, based on the fair value of the underlying securities. International debt securities are valued using quoted prices for identical assets in inactive markets. Derivatives – Our derivative financial instruments consist of interest rate contracts (swaps), foreign currency exchange contracts (futures, forwards, and swaps), and cross-currency interest rate contracts (swaps). The portfolio is valued based on an income approach (discounted cash flow) using market observable inputs, including swap curves and both forward and spot exchange rates for currencies. Financing receivables – Specific reserve impairments are based on the fair value of the collateral, which is measured using a market approach (appraisal values or realizable values). (18)    Derivative Instruments Fair values of our derivative instruments and the associated notional amounts were as follows. Assets are recorded in “Other assets,” while liabilities are recorded in “Accounts payable and accrued expenses.” ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 28, 2024 ​ October 29, 2023 ​ January 29, 2023 ​ ​ ​ ​ Fair Value ​ ​ ​ Fair Value ​ ​ ​ Fair Value ​ ​ Notional ​ Assets ​ Liabilities ​ Notional ​ Assets ​ Liabilities ​ Notional ​ Assets ​ Liabilities Cash flow hedges: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts $ 2,200 ​ $ 27 ​ $ 4 $ 1,500 ​ $ 45 ​ ​ ​ $ 1,950 ​ $ 69 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value hedges: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ ​ 12,633 ​ ​ 58 ​ ​ 592 ​ ​ 12,691 ​ ​ ​ ​ $ 970 ​ ​ 10,802 ​ ​ 21 ​ $ 678 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Not designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ ​ 14,200 ​ ​ 129 ​ ​ 82 ​ ​ 13,853 ​ ​ 169 ​ ​ 98 ​ ​ 11,147 ​ ​ 188 ​ ​ 97 ​ Foreign exchange contracts ​ ​ 7,856 ​ ​ 39 ​ ​ 53 ​ ​ 8,117 ​ 75 ​ 54 ​ ​ 9,304 ​ 71 ​ 110 ​ Cross-currency interest rate contracts ​ ​ 189 ​ ​ ​ ​ ​ 13 ​ ​ 176 ​ 3 ​ 8 ​ ​ 234 ​ 11 ​ 6 ​ ​ 21 ​ The amounts recorded in the consolidated balance sheets related to borrowings designated in fair value hedging relationships were as follows. Fair value hedging adjustments are included in the carrying amount of the hedged item. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Active Hedging Relationships ​ Discontinued Hedging Relationships ​ ​ ​ Carrying Amount ​ Cumulative Fair Value ​ Carrying Amount of ​ Cumulative Fair Value ​ ​ ​ of Hedged Item ​ Hedging Amount ​ Formerly Hedged Item ​ Hedging Amount ​ January 28, 2024 ​ ​ ​ ​ ​ ​ ​ ​ Short-term borrowings ​ $ 288 ​ $ ( 9 ) ​ $ 1,960 ​ $ 10 ​ Long-term borrowings ​ ​ 11,745 ​ ​ ( 537 ) ​ ​ 7,711 ​ ​ ( 270 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 29, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term borrowings ​ ​ ​ ​ ​ ​ ​ $ 1,814 ​ $ 15 ​ Long-term borrowings ​ $ 11,660 ​ $ ( 976 ) ​ ​ 7,144 ​ ​ ( 288 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 29, 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term borrowings ​ ​ ​ ​ ​ ​ ​ $ 1,915 ​ $ 15 ​ Long-term borrowings ​ $ 10,088 ​ $ ( 666 ) ​ ​ 5,506 ​ ​ ( 83 ) ​ ​ The classification and gains (losses) including accrued interest expense related to derivative instruments on the statements of consolidated income consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ January 28 ​ January 29 ​ ​ 2024 ​ 2023 Fair Value Hedges ​ ​ Interest rate contracts - Interest expense $ 344 ​ $ 239 ​ ​ ​ ​ ​ ​ ​ ​ Cash Flow Hedges ​ ​ ​ ​ ​ ​ ​ Recognized in OCI: ​ ​ ​ ​ ​ ​ ​ Interest rate contracts - OCI (pretax) $ ( 8 ) ​ $ ( 1 ) ​ ​ ​ ​ ​ ​ ​ ​ Reclassified from OCI: ​ ​ ​ ​ ​ ​ ​ Interest rate contracts - Interest expense ​ 11 ​ 15 ​ ​ ​ ​ ​ ​ ​ ​ Not Designated as Hedges ​ ​ ​ ​ ​ ​ ​ Interest rate contracts - Net sales ​ ​ ​ ​ $ ( 7 ) ​ Interest rate contracts - Interest expense $ ( 9 ) ​ ​ ( 8 ) ​ Foreign exchange contracts - Net sales ​ ​ 5 ​ ​ 1 ​ Foreign exchange contracts - Cost of sales ​ ( 30 ) ​ 5 ​ Foreign exchange contracts - Other operating expenses ​ ( 181 ) ​ ( 142 ) ​ Total not designated ​ $ ( 215 ) ​ $ ( 151 ) ​ ​ Certain of our derivative agreements contain credit support provisions that may require us to post collateral based on the size of the net liability positions and credit ratings. The aggregate fair value of all derivatives with credit-risk-related contingent features that were in a net liability position at January 28, 2024, October 29, 2023, and January 29, 2023 was $ 691 , $ 1,076 , and $ 781 , respectively. In accordance with the limits established in these agreements, we posted $ 368 , $ 659 , and $ 349 of cash collateral at January 28, 2024, October 29, 2023, and January 29, 2023, respectively. In addition, we paid $ 8 of collateral that was outstanding at January 28, 2024, October 29, 2023, and January 29, 2023 to participate in an international futures market to hedge currency exposure, not included in the table below. 22 ​ Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities related to netting arrangements and any collateral received or paid follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts ​ Netting ​ ​ ​ ​ ​ January 28, 2024 Recognized Arrangements Collateral Net Amount Assets $ 253 $ ( 112 ) $ ( 19 ) $ 122 ​ Liabilities ​ ​ 744 ​ ​ ( 112 ) ​ ​ ( 368 ) ​ ​ 264 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts ​ Netting ​ ​ ​ ​ ​ ​ October 29, 2023 Recognized Arrangements Collateral Net Amount Assets ​ $ 292 $ ( 152 ) ​ ​ $ 140 ​ Liabilities ​ ​ 1,130 ​ ( 152 ) ​ $ ( 659 ) ​ ​ 319 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts ​ Netting ​ ​ ​ ​ ​ ​ January 29, 2023 ​ Recognized Arrangements Collateral Net Amount Assets ​ $ 360 $ ( 162 ) $ ( 47 ) ​ $ 151 ​ Liabilities ​ 891 ​ ​ ( 162 ) ​ ​ ( 349 ) ​ 380 ​ ​ ​ ​ ​ ​ (19)    Share-Based Awards At January 28, 2024, we were authorized to grant an additional 15.0 million shares related to stock options and restricted stock units. In December 2023, we granted stock options to employees for the purchase of 216 thousand shares of common stock at an exercise price of $ 377.01 per share and a binomial lattice model fair value of $ 98.04 per share at the grant date. At January 28, 2024, options for 1.9 million shares were outstanding with a weighted-average exercise price of $ 214.88 per share. During the three months ended January 28, 2024, the restricted stock units (RSUs) granted in thousands of shares and the weighted-average grant date fair values, using the closing price of our common stock on the grant date, in dollars follow: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Grant Date ​ ​ ​ Shares ​ Fair Value ​ Service-based 360 $ 377.04 Performance/service-based ​ 52 ​ ​ 360.53 ​ Market/service-based ​ 52 ​ ​ 370.87 ​ ​ In December 2023, we granted market/service-based RSUs. The vesting period for the market/service-based RSUs is three years and dividend equivalents are not earned during the vesting period. The market/service-based RSUs are subject to a market related metric based on total shareholder return, compared to a benchmark group of companies, and award common stock in a range of zero to 200 percent for each unit granted based on the level of the metric achieved. The fair value of the market/service based RSUs was determined using a Monte Carlo model . ​ (20)   S pecial Item In January 2023, we reached an agreement to sell our financial services business in Russia (registered in Russia as a leasing company). We reversed the allowance for credit losses and recorded a valuation allowance on the assets held for sale in “Selling, administrative and general expenses.” In March 2023, we sold our financial services business in Russia to Insight Investment Group. The total proceeds, net of restricted cash sold, were $ 36 . The operations were included in the financial services operating segment through the date of sale. At the disposal date, the total assets were $ 31 , consisting primarily of financing receivables, the total liabilities were $ 5 , and the cumulative translation loss was $ 10 . We did not incur additional gains or losses upon disposition. ( 21)    Subsequent Events In February 2024, we entered into a retail note securitization transaction, resulting in $ 529 of secured borrowings. On February 28, 2024, a quarterly dividend of $ 1.47 per share was declared at the Board of Directors meeting, payable on May 8, 2024, to stockholders of record on March 29, 2024. ​ ​ ​ ​ ​ 23 ​