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Item 1. Financial Statements

2024-08-29 compared with 2024-05-30 · 174 added, 99 removed, 741 unchanged (27% of the section changed)

2 unchanged sentences

STATEMENTS OF CONSOLIDATED INCOME

For the Three and Six Months Ended April 28, 2024 and April 30, 2023

For the Three and Nine Months Ended July 28, 2024 and July 30, 2023

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

Three Months Ended

Six Months Ended

Nine Months Ended

Net Sales and Revenues

19 unchanged sentences

STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME

For the Three and Six Months Ended April 28, 2024 and April 30, 2023

For the Three and Nine Months Ended July 28, 2024 and July 30, 2023

(In millions of dollars) Unaudited

Three Months Ended

Six Months Ended

Nine Months Ended

Other Comprehensive Income (Loss), Net of Income Taxes

22 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 April 28, 2024 – 536,431,204 )

Common stock, $ 1 par value (issued shares at July 28, 2024 – 536,431,204 )

Common stock in treasury

8 unchanged sentences

STATEMENTS OF CONSOLIDATED CASH FLOWS

For the Six Months Ended April 28, 2024 and April 30, 2023

For the Nine Months Ended July 28, 2024 and July 30, 2023

(In millions of dollars) Unaudited

Cash Flows from Operating Activities

Adjustments to reconcile net income to net cash provided by (used for) operating activities:

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

Provision (credit) for credit losses

Provision for depreciation and amortization

Other non-cash adjustments (Note 21)

Impairments and other adjustments

Share-based compensation expense

5 unchanged sentences

Retirement benefits

Net cash provided by (used for) operating activities

Net cash provided by operating activities

Cash Flows from Investing Activities

9 unchanged sentences

Cash Flows from Financing Activities

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

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

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

9 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 and Six Months Ended April 28, 2024 and April 30, 2023

For the Three and Nine Months Ended July 28, 2024 and July 30, 2023

(In millions of dollars) Unaudited

6 unchanged sentences

Income (Loss)

Three Months Ended April 30, 2023

Balance January 29, 2023

Three Months Ended July 30, 2023

Balance April 30, 2023

Net income (loss)

Other comprehensive income (loss)

Other comprehensive income

Repurchases of common stock

2 unchanged sentences

Share based awards and other

Balance April 30, 2023

Six Months Ended April 30, 2023

Balance July 30, 2023

Nine Months Ended July 30, 2023

Balance October 30, 2022

5 unchanged sentences

Share based awards and other

Balance July 30, 2023

Three Months Ended July 28, 2024

Balance April 28, 2024

Three Months Ended April 28, 2024

Balance January 28, 2024

Net income (loss)

3 unchanged sentences

Dividends declared

Noncontrolling interest redemption (Note 21)

Share based awards and other

Balance April 28, 2024

Six Months Ended April 28, 2024

Balance July 28, 2024

Nine Months Ended July 28, 2024

Balance October 29, 2023

4 unchanged sentences

Dividends declared

Noncontrolling interest redemption (Note 21)

Share based awards and other

Balance April 28, 2024

Balance July 28, 2024

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 second quarter ends for fiscal year 2024 and 2023 were April 28, 2024 and April 30, 2023, respectively.

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

The third quarter ends for fiscal year 2024 and 2023 were July 28, 2024 and July 30, 2023, respectively.

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

26 unchanged sentences

Accounting Pronouncements to be Adopted

In March 2024, the SEC adopted rules to enhance and standardize climate-related disclosures in annual reports and registration statements.

The new rules will be effective for our annual reporting periods beginning in fiscal year 2026.

In April 2024, the SEC stayed implementation of the climate-related disclosure requirements pending completion of legal challenges.

We are monitoring these developments while assessing the effect of these rules on our related disclosures.

In December 2023, the FASB issued ASU 2023-09 , Income Taxes (Topic 740):

Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and cash taxes paid both in the U.S.

Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and cash income taxes paid both in the U.S.

and foreign jurisdictions.

12 unchanged sentences

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

Three Months Ended April 28, 2024

Three Months Ended July 28, 2024

Production & Precision Ag

13 unchanged sentences

At a point in time

Six Months Ended April 28, 2024

Nine Months Ended July 28, 2024

Production & Precision Ag

13 unchanged sentences

At a point in time

Three Months Ended April 30, 2023

Three Months Ended July 30, 2023

Production & Precision Ag

13 unchanged sentences

At a point in time

Six Months Ended April 30, 2023

Nine Months Ended July 30, 2023

Production & Precision Ag

15 unchanged sentences

These relate to extended warranty premiums, advance payments for future equipment sales, and subscription and service revenue related to precision guidance, telematic services, and other information enabled solutions.

These advanced customer payments are presented as deferred revenue, a contract liability, in “Accounts payable and accrued expenses.” The deferred revenue received, but not recognized in revenue, was $ 1,911 , $ 1,697 , and $ 1,622 at April 28, 2024, October 29, 2023, and April 30, 2023, respectively.

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 $ 1,895 , $ 1,697 , and $ 1,753 at July 28, 2024, October 29, 2023, and July 30, 2023, respectively.

The contract liability is reduced as the revenue is recognized.

During the three months ended April 28, 2024 and April 30, 2023, $ 128 and $ 129 , respectively, of revenue was recognized from deferred revenue that was recorded as a contract liability at the beginning of the respective fiscal year.

During the six months ended April 28, 2024 and April 30, 2023, $ 358 and $ 343 , respectively, of revenue was recognized from deferred revenue that was recorded as a contract liability at the beginning of the respective fiscal year.

The amount of unsatisfied performance obligations for contracts with an original duration greater than one year was $ 1,633 at April 28, 2024.

During the three months ended July 28, 2024 and July 30, 2023, $ 126 and $ 96 , respectively, of revenue was recognized from deferred revenue that was recorded as a contract liability at the beginning of the respective fiscal year.

During the nine months ended July 28, 2024 and July 30, 2023, $ 484 and $ 440 , 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 $ 1,677 at July 28, 2024.

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 April 28, 2024

Three Months Ended July 28, 2024

Cumulative translation adjustment

14 unchanged sentences

Total other comprehensive income (loss)

Six Months Ended April 28, 2024

Nine Months Ended July 28, 2024

Cumulative translation adjustment

15 unchanged sentences

Total other comprehensive income (loss)

Three Months Ended April 30, 2023

Three Months Ended July 30, 2023

Cumulative translation adjustment

14 unchanged sentences

Total other comprehensive income (loss)

Six Months Ended April 30, 2023

Nine Months Ended July 30, 2023

Cumulative translation adjustment

17 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Net income attributable to Deere & Company

12 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Interest cost

2 unchanged sentences

Amortization of prior service cost

Net (benefit) cost

Interest cost

3 unchanged sentences

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

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

During the first nine months of 2024, we contributed and expect to contribute the following amounts to our pension and OPEB plans:

Expected contributions remainder of the year

2 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Net sales and revenues:

20 unchanged sentences

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.

Reconciling items to net income are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and OPEB benefit (cost) amounts excluding the service cost component, and net income attributable to noncontrolling interests.

Identifiable operating assets were as follows:

12 unchanged sentences

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

April 28, 2024

July 28, 2024

Revolving Charge Accounts

25 unchanged sentences

Total retail customer receivables

April 30, 2023

July 30, 2023

Revolving Charge Accounts

12 unchanged sentences

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

April 28, 2024

July 28, 2024

Wholesale receivables:

15 unchanged sentences

Total wholesale receivables

April 30, 2023

July 30, 2023

Wholesale receivables:

7 unchanged sentences

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

Three Months Ended April 28, 2024

Three Months Ended July 28, 2024

Beginning of period balance

Provision reversal for assets held for sale

Provision subtotal

Translation adjustments

End of period balance

Six Months Ended April 28, 2024

Nine Months Ended July 28, 2024

Beginning of period balance

Provision reversal for assets held for sale

Provision subtotal

Translation adjustments

2 unchanged sentences

End of period balance

Three Months Ended April 30, 2023

Three Months Ended July 30, 2023

Beginning of period balance

Translation adjustments

End of period balance

Six Months Ended April 30, 2023

Nine Months Ended July 30, 2023

Beginning of period balance

Provision transferred to held for sale

Provision reversal for assets held for sale

Provision (credit) subtotal

3 unchanged sentences

End of period balance

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

In the first quarter of 2023, we determined that the financial services business in Russia met the held for sale criteria.

The financing receivables in Russia were reclassified to “Other assets.” The associated allowance for credit losses was reversed and a valuation allowance for the assets held for sale was recorded.

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

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

Excluding the business in Brazil, the allowance for credit losses on retail notes and financing lease receivables increased in the third quarter and first nine months of 2024,

primarily due to higher expected losses as a result of elevated delinquencies and a decline in market conditions.

This increase was partially offset by a decrease in the allowance on revolving charge accounts, driven by write-offs of seasonal financing program accounts and recoveries expected on those accounts in the future.

In the first quarter of 2023, the financial services business in Russia met the held for sale criteria.

The allowance for credit losses for the financing receivables in Russia was reversed and a valuation allowance for the assets held for sale was recorded.

These operations were sold in the second quarter of 2023 (see Note 20).

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

Write-offs by year of origination were as follows:

Six Months Ended April 28, 2024

Nine Months Ended July 28, 2024

Revolving Charge Accounts

7 unchanged sentences

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

Finance charges continue to accrue during the deferral or extension period.

Finance charges continue to accrue during the deferral or extension period with the exception of modifications related to bankruptcy proceedings.

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

Therefore, additional adjustments to the allowance are generally not recorded upon modification of a loan.

The ending amortized cost of modified loans with borrowers experiencing financial difficulty during the second quarter and the six months ended April 28, 2024 were $ 36 and $ 53 , respectively, of which $ 48 were current, $ 3 were 30-59 days past due, and $ 2 were non-performing.

The ending amortized cost of modified loans with borrowers experiencing financial difficulty during the third quarter and the nine months ended July 28, 2024 were $ 23 and $ 67 , respectively, of which $ 56 were current, $ 4 were 30-59 days past due, $ 3 were 60-89 days past due, $ 1 were 90 days or greater past due, and $ 3 were non-performing.

These modifications represented 0.04 and 0.13 percent of our financing receivable portfolio for the same periods, respectively.

Defaults and subsequent write-offs of loans modified in the prior twelve months were not significant during the second quarter and the first six months of 2024.

In addition, at April 28, 2024, commitments to provide additional financing to these customers were not significant.

Defaults and subsequent write-offs of loans modified in the prior twelve months were not significant during the third quarter or the first nine months of 2024.

In addition, at July 28, 2024, commitments to provide additional financing to these customers were not significant.

(9) Securitization of Financing Receivables

31 unchanged sentences

Translation adjustments

Goodwill at April 30, 2023

Goodwill at July 30, 2023

Goodwill at October 29, 2023

Translation adjustments

Goodwill at April 28, 2024

Goodwill at July 28, 2024

The components of other intangible assets were as follows:

7 unchanged sentences

Other intangible assets – net

The amortization of other intangible assets in the second quarter and the first six months of 2024 was $ 41 and $ 83 , and for the second quarter and the first six months of 2023 was $ 45 and $ 84 , respectively.

The amortization of other intangible assets in the third quarter and the first nine months of 2024 was $ 41 and $ 124 , and for the third quarter and the first nine months of 2023 was $ 42 and $ 126 , respectively.

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

27 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 $ 2,650 at April 28, 2024, $ 2,228 at October 29, 2023, and $ 1,979 at April 30, 2023.

Amounts are presented net of eliminations, which primarily consist of dealer sales incentives with a right of set-off against trade receivables of $ 2,535 at July 28, 2024, $ 2,228 at October 29, 2023, and $ 2,240 at July 30, 2023.

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

21 unchanged sentences

Medium-term notes due through 2034 are primarily offered by prospectus and issued at fixed and variable rates.

The principal balances of the medium-term notes were $ 34,002 , $ 30,902 , and $ 27,428 , at April 28, 2024, October 29, 2023, and April 30, 2023, respectively.

The principal balances of the medium-term notes were $ 36,716 , $ 30,902 , and $ 30,348 , at July 28, 2024, October 29, 2023, and July 30, 2023, respectively.

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

4 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Sales-type and direct finance lease revenues

8 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Beginning of period balance

5 unchanged sentences

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

At April 28, 2024, the notional value of these guarantees was $ 146 .

At July 28, 2024, the notional value of these guarantees was $ 151 .

We may repossess the equipment collateralizing the receivables.

At April 28, 2024, the accrued losses under these agreements were not material.

We also had other miscellaneous contingent liabilities and guarantees totaling approximately $ 140 at April 28, 2024.

The accrued liability for these contingencies was $ 20 at April 28, 2024.

At April 28, 2024, we had commitments of approximately $ 560 for the construction and acquisition of property and equipment.

Also, at April 28, 2024, we had restricted assets of $ 225 , classified as “Other assets.”

At July 28, 2024, the accrued losses under these agreements were not material.

We also had other miscellaneous contingent liabilities and guarantees totaling approximately $ 130 at July 28, 2024.

The accrued liability for these contingencies was $ 20 at July 28, 2024.

At July 28, 2024, we had commitments of approximately $ 585 for the construction and acquisition of property and equipment.

Also, at July 28, 2024, we had restricted assets of $ 234 , classified as “Other assets.”

We are subject to various unresolved legal actions.

The accrued losses on these matters were not material at April 28, 2024.

The accrued losses on these matters were not material at July 28, 2024.

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

3 unchanged sentences

Long-term borrowings exclude finance lease liabilities.

April 28, 2024

July 28, 2024

October 29, 2023

April 30, 2023

July 30, 2023

Financing receivables – net

6 unchanged sentences

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

In May 2024, we acquired a held-to-maturity marketable security that matures in less than one year.

The carrying value of the held-to-maturity marketable security was $ 12 as of July 28, 2024, which approximated its fair value .

Fair values of long-term borrowings and short-term securitization borrowings were based on current market quotes for identical or similar borrowings and credit risk, or on the discounted values of their related cash flows at current market interest rates.

18 unchanged sentences

government-sponsored enterprises.

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

The contractual maturities of available-for-sale debt securities at July 28, 2024 follow:

Due in one year or less

6 unchanged sentences

Mortgage-backed securities contain prepayment provisions and are not categorized by contractual maturity.

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

Three Months Ended

Nine Months Ended

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:

4 unchanged sentences

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).

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

Fair value was based on the probable sale price.

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

(18) Derivative Instruments

1 unchanged sentence

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

April 28, 2024

July 28, 2024

October 29, 2023

April 30, 2023

July 30, 2023

Cash flow hedges:

2 unchanged sentences

Interest rate contracts

Cross-currency interest rate contracts

Not designated as hedging instruments:

14 unchanged sentences

Hedging Amount

April 28, 2024

July 28, 2024

Short-term borrowings

3 unchanged sentences

Long-term borrowings

April 30, 2023

July 30, 2023

Short-term borrowings

2 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Fair Value Hedges

12 unchanged sentences

Total not designated

* Includes interest and foreign exchange gains (losses) from cross-currency interest rate contracts.

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 April 28, 2024, October 29, 2023, and April 30, 2023, was $ 967 , $ 1,076 , and $ 716 , respectively.

In accordance with the limits established in these agreements, we posted $ 562 , $ 659 , and $ 308 of cash collateral at April 28, 2024, October 29, 2023, and April 30, 2023, respectively.

In addition, we paid $ 8 of collateral that was outstanding at April 28, 2024, October 29, 2023, and April 30, 2023 to participate in an international futures market to hedge currency exposure, not included in the table below.

The aggregate fair value of all derivatives with credit-risk-related contingent features that were in a net liability position at July 28, 2024, October 29, 2023, and July 30, 2023, was $ 566 , $ 1,076 , and $ 865 , respectively.

In accordance with the limits established in these agreements, we posted $ 269 , $ 659 , and $ 435 of cash collateral at July 28, 2024, October 29, 2023, and July 30, 2023, respectively.

In addition, we paid $ 8 of collateral that was outstanding at July 28, 2024, October 29, 2023, and July 30, 2023 to participate in an international futures market to hedge currency exposure, not included in the table below.

Derivatives are recorded without offsetting for netting arrangements or collateral.

1 unchanged sentence

Gross Amounts

April 28, 2024

July 28, 2024

October 29, 2023

April 30, 2023

July 30, 2023

(19) Share-Based Awards

We are authorized to grant shares for stock options and restricted stock units.

The outstanding shares authorized were 15.0 million at April 28, 2024.

The outstanding shares authorized were 14.9 million at July 28, 2024.

In December 2023, we granted stock options to employees for the purchase of 216 thousand shares of common stock at an exercise price of $ 377.01 per share and a binomial lattice model fair value of $ 98.04 per share at the grant date.

At April 28, 2024, options for 1.8 million shares were outstanding with a weighted-average exercise price of $ 220.99 per share.

During the six months ended April 28, 2024, the restricted stock units (RSUs) granted in thousands of shares and the weighted-average grant date fair values, using the closing price of our common stock on the grant date, in dollars follow:

At July 28, 2024, options for 1.7 million shares were outstanding with a weighted-average exercise price of $ 228.10 per share.

During the nine months ended July 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:

Service-based

11 unchanged sentences

We did not incur additional gains or losses upon disposition.

(21) Special Item

(21) Special ItemS

Employee-Separation Programs

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

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

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

The programs’ total pretax expenses are estimated to be approximately $ 150 , with $ 124 recorded in the third quarter of 2024.

The remaining expenses are expected to be recorded primarily in 2025.

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

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

Employee-Separation Programs:

Cost of sales

Research and development expenses

Selling, administrative and general expenses

Total operating profit decrease

Non-operating profit expenses*

* Relates primarily to corporate expenses.

Banco John Deere S.A.

In the third quarter of 2024, our board of directors authorized the sale of 50 percent ownership in our wholly owned subsidiary, Banco John Deere S.A.

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

The transaction will reduce our incremental risk as we continue to grow in the Brazilian market.

As a result, we reclassified the BJD business as held for sale, including a reversal of $ 38 in allowance for credit losses, and the establishment of a $ 53 valuation allowance on the assets held for sale.

The net impact of these entries was a pretax and after-tax loss of $ 15 recorded in “ Selling, administrative and general expenses .” We do not expect a significant gain or loss upon deconsolidation of BJD in 2025.

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:

Cash and cash equivalents

Trade accounts and notes receivable – net

Financing receivables – net

Deferred income taxes

Other miscellaneous assets*

Valuation allowance

Total assets held for sale

Short-term borrowings

Accounts payable and accrued expenses

Long-term borrowings

Retirement benefits and other liabilities

Total liabilities held for sale

Total intercompany payables

* Includes $ 1 restricted cash balance.

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

(Bradesco), for Bradesco to invest and become 50 percent owner of BJD.

On the transaction date, which is expected to occur in the second quarter of 2025, subject to usual and customary regulatory approval, Bradesco will contribute capital equal to our equity investment in BJD.

We will retain a 50 percent equity interest in BJD and report the results of the joint venture as an equity investment in unconsolidated affiliates.

Redeemable Noncontrolling Interest

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

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

Brazil Tax Ruling

In the third quarter of 2023, the Brazil Superior Court of Justice published a favorable tax ruling regarding taxability of local incentives, which allowed us to record a $ 243 reduction in the provision for income taxes and $ 47 of interest income.

Financial Services Financing Incentives Correction

In the second quarter of 2023, we corrected the accounting treatment for financing incentives offered to John Deere dealers, which impacted the timing of expense recognition and the presentation of incentive costs in the consolidated financial statements.

1 unchanged sentence

Prior period results were not restated, as the adjustment was considered immaterial to our financial statements.

Summary of 2024 and 2023 Special Items

The following table summarizes the operating profit impact of the special items recorded for the three months and nine months ended July 28, 2024 and July 30, 2023.

Three Months Ended

Nine Months Ended

2024 Expense:

Employee-separation programs

BJD remeasurement

Total 2024 expense

2023 Expense:

Financing incentives correction

Period over period change

(22) Subsequent EventS

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

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

In August 2024, we entered into an agreement with a Brazilian bank, Banco Bradesco S.A., to invest and become 50 percent owner of Banco John Deere S.A.

(see Note 21).

On August 28, 2024 , a quarterly dividend of $ 1.47 per share was declared at the Board of Directors meeting, payable on November 8, 2024 , to stockholders of record on September 30, 2024 .

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