What changed in this filing

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Item 1. Financial Statements

2025-05-29 compared with 2025-02-27 · 239 added, 112 removed, 624 unchanged (36% of the section changed)

2 unchanged sentences

STATEMENTS OF CONSOLIDATED INCOME

For the Three Months Ended January 26, 2025 and January 28, 2024

For the Three and Six Months Ended April 27, 2025 and April 28, 2024

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

Three Months Ended

Six Months Ended

Net Sales and Revenues

9 unchanged sentences

Income of Consolidated Group

Equity in income (loss) of unconsolidated affiliates

Equity in income of unconsolidated affiliates

Net loss attributable to noncontrolling interests

7 unchanged sentences

STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME

For the Three Months Ended January 26, 2025 and January 28, 2024

For the Three and Six Months Ended April 27, 2025 and April 28, 2024

(In millions of dollars) Unaudited

Three Months Ended

Six Months Ended

Other Comprehensive Income (Loss), Net of Income Taxes

1 unchanged sentence

Cumulative translation adjustment

Unrealized loss on derivatives

Unrealized gain (loss) on derivatives

Unrealized gain (loss) on debt securities

Other Comprehensive Income (Loss), Net of Income Taxes

Comprehensive Income of Consolidated Group

Comprehensive loss attributable to noncontrolling interests

Comprehensive Income

Comprehensive income (loss) attributable to noncontrolling interests

Comprehensive Income Attributable to Deere & Company

27 unchanged sentences

Stockholders’ Equity

Common stock, $ 1 par value (issued shares at January 26, 2025 – 536,431,204 )

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

Common stock in treasury

8 unchanged sentences

STATEMENTS OF CONSOLIDATED CASH FLOWS

For the Three Months Ended January 26, 2025 and January 28, 2024

For the Six Months Ended April 27, 2025 and April 28, 2024

(In millions of dollars) Unaudited

Cash Flows from Operating Activities

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

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

Provision for credit losses

2 unchanged sentences

Share-based compensation expense

Provision for deferred income taxes

Provision (credit) for deferred income taxes

Changes in assets and liabilities:

3 unchanged sentences

Retirement benefits

Net cash used for operating activities

Net cash provided by operating activities

Cash Flows from Investing Activities

6 unchanged sentences

Cost of equipment on operating leases acquired

Collections of receivables from unconsolidated affiliates

Collateral on derivatives – net

Net cash provided by investing activities

Net cash provided by (used for) investing activities

Cash Flows from Financing Activities

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

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

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

4 unchanged sentences

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

Net Decrease in Cash, Cash Equivalents, and Restricted Cash

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

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

2 unchanged sentences

Cash and cash equivalents

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

Restricted cash (Other assets)

3 unchanged sentences

STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY

For the Three Months Ended January 26, 2025 and January 28, 2024

For the Three and Six Months Ended April 27, 2025 and April 28, 2024

(In millions of dollars) Unaudited

6 unchanged sentences

Income (Loss)

Three Months Ended April 28, 2024

Balance January 28, 2024

Net income (loss)

Other comprehensive loss

Repurchases of common stock

Treasury shares reissued

Dividends declared

Share based awards and other

Balance April 28, 2024

Six Months Ended April 28, 2024

Balance October 29, 2023

Net income (loss)

Other comprehensive income

Other comprehensive income (loss)

Repurchases of common stock

2 unchanged sentences

Share based awards and other

Balance April 28, 2024

Three Months Ended April 27, 2025

Balance January 26, 2025

Net income (loss)

Other comprehensive income

Repurchases of common stock

Treasury shares reissued

Dividends declared

Share based awards and other

Balance April 27, 2025

Six Months Ended April 27, 2025

Balance October 27, 2024

Net income (loss)

Other comprehensive loss

Other comprehensive income

Repurchases of common stock

2 unchanged sentences

Share based awards and other

Balance January 26, 2025

Balance April 27, 2025

See Condensed Notes to Interim Consolidated Financial Statements.

7 unchanged sentences

We use a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period.

The first quarter ends for fiscal year 2025 and 2024 were January 26, 2025 and January 28, 2024, respectively.

Both periods contained 13 weeks.

The second quarter ends for fiscal years 2025 and 2024 were April 27, 2025 and April 28, 2024, respectively.

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

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

2 unchanged sentences

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

Variable Interest Entity

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

(BJD), an equity method investment that finances retail and wholesale loans for agricultural, construction, and forestry equipment in Brazil.

This investment was established in February 2025 through the sale of 50 % ownership of a former subsidiary (see Note 20).

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

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

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

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

Receivables from unconsolidated affiliates – "Other receivables"

Investments in unconsolidated affiliates – "Other assets"

Carrying value of assets related to VIE

Maximum exposure to loss

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

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

(2) Summary of Significant Accounting Policies and New Accounting PROnouncements

Quarterly Financial Statements

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

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

Securities and Exchange Commission (SEC).

35 unchanged sentences

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

Three Months Ended January 26, 2025

Three Months Ended April 27, 2025

Primary geographic markets:

11 unchanged sentences

At a point in time

Three Months Ended January 28, 2024

Six Months Ended April 27, 2025

Primary geographic markets:

11 unchanged sentences

At a point in time

Three Months Ended April 28, 2024

Primary geographic markets:

United States

Western Europe

Central Europe and CIS

Latin America

Asia, Africa, Oceania, and Middle East

Major product lines:

Production agriculture

Small agriculture

Compact construction

Financial products

Revenue recognized:

At a point in time

Six Months Ended April 28, 2024

Primary geographic markets:

United States

Western Europe

Central Europe and CIS

Latin America

Asia, Africa, Oceania, and Middle East

Major product lines:

Production agriculture

Small agriculture

Compact construction

Financial products

Revenue recognized:

At a point in time

We invoice in advance of recognizing the revenue of certain products and services.

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

These advanced customer payments are presented as deferred revenue, a contract liability, in “Accounts payable and accrued expenses.” The deferred revenue received, but not recognized in revenue, was $ 2,027 , $ 1,923 , and $ 1,747 at January 26, 2025, October 27, 2024, and January 28, 2024, respectively.

These advanced customer payments are presented as deferred revenue, a contract liability, in “Accounts payable and accrued expenses.” The deferred revenue received, but not recognized in revenue was $ 2,089 , $ 1,923 , and $ 1,911 at April 27, 2025, October 27, 2024, and April 28, 2024, respectively.

The contract liability is reduced as the revenue is recognized.

Revenue recognized from deferred revenue that was recorded as a contract liability at the beginning of the fiscal year was $ 197 and $ 230 during the three months ended January 26, 2025 and January 28, 2024, respectively.

The amount of unsatisfied performance obligations for contracts with an original duration greater than one year was $ 1,734 at January 26, 2025.

Revenue recognized from deferred revenue that was recorded as a contract liability at the beginning of the fiscal year was $ 176 and $ 128 during the three months and $ 373 and $ 358 during the six months ended April 27, 2025 and April 28, 2024, respectively.

The amount of unsatisfied performance obligations for contracts with an original duration greater than one year was $ 1,774 at April 27, 2025.

The estimated revenue to be recognized by fiscal year follows:

6 unchanged sentences

Cumulative translation adjustment

Unrealized loss on derivatives

Unrealized loss on debt securities

Unrealized gain (loss) on derivatives

Unrealized gain (loss) on debt securities

Accumulated other comprehensive income (loss)

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

Three Months Ended January 26, 2025

Three Months Ended April 27, 2025

Cumulative translation adjustment

1 unchanged sentence

Unrealized hedging gain (loss)

Net unrealized gain (loss) on derivatives

Unrealized gain (loss) on debt securities:

Unrealized holding gain (loss)

Reclassification of realized (gain) loss to Other income

Net unrealized gain (loss) on debt securities

Retirement benefits adjustment:

Net actuarial gain (loss)

Reclassification to Other operating expenses through amortization of:

Actuarial (gain) loss

Prior service (credit) cost

Net unrealized gain (loss) on retirement benefits adjustment

Total other comprehensive income (loss)

Six Months Ended April 27, 2025

Cumulative translation adjustment

Unrealized gain (loss) on interest rate derivatives:

Unrealized hedging gain (loss)

Reclassification of realized (gain) loss to Interest expense

2 unchanged sentences

Unrealized holding gain (loss)

Reclassification of realized (gain) loss to Other income

Net unrealized gain (loss) on debt securities

6 unchanged sentences

Total other comprehensive income (loss)

Three Months Ended January 28, 2024

Three Months Ended April 28, 2024

Cumulative translation adjustment

5 unchanged sentences

Unrealized holding gain (loss)

Net unrealized gain (loss) on debt securities

Retirement benefits adjustment:

Net actuarial gain (loss)

Reclassification to Other operating expenses through amortization of:

Actuarial (gain) loss

Prior service (credit) cost

Net unrealized gain (loss) on retirement benefits adjustment

Total other comprehensive income (loss)

Six Months Ended April 28, 2024

Cumulative translation adjustment

Unrealized gain (loss) on interest rate derivatives:

Unrealized hedging gain (loss)

Reclassification of realized (gain) loss to Interest expense

Net unrealized gain (loss) on derivatives

Unrealized gain (loss) on debt securities:

Unrealized holding gain (loss)

Reclassification of realized (gain) loss to Other income

10 unchanged sentences

Three Months Ended

Six Months Ended

Net income attributable to Deere & Company

12 unchanged sentences

Three Months Ended

Six Months Ended

Interest cost

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

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

Expected contributions remainder of the year

In the first quarter of 2025, a committee of our Board of Directors approved and a $ 520 voluntary contribution was made to a U.S.

This contribution increased plan assets.

(7) Segment DATA

1 unchanged sentence

Three Months Ended

Six Months Ended

Net sales and revenues

22 unchanged sentences

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

January 26, 2025

April 27, 2025

Revolving Charge Accounts

11 unchanged sentences

Total retail customer receivables

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

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

Agriculture and turf

17 unchanged sentences

Construction and forestry

January 28, 2024

April 28, 2024

Revolving Charge Accounts

11 unchanged sentences

Total retail customer receivables

Write-offs for the three months ended January 28, 2024:

Write-offs for the six months ended April 28, 2024:

Agriculture and turf

10 unchanged sentences

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

Three Months Ended January 26, 2025

Three Months Ended April 27, 2025

Beginning of period balance

1 unchanged sentence

End of period balance

Six Months Ended April 27, 2025

Beginning of period balance

End of period balance

Financing receivables:

End of period balance

Three Months Ended January 28, 2024

Three Months Ended April 28, 2024

Beginning of period balance

Provision (credit)

Translation adjustments

End of period balance

Six Months Ended April 28, 2024

Beginning of period balance

Translation adjustments

End of period balance

Financing receivables:

End of period balance

The allowance for credit losses on retail notes and financing lease receivables increased in the first quarter of 2025, primarily due to higher expected losses as a result of elevated delinquencies and market conditions.

During 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 20).

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

Modifications

5 unchanged sentences

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

The ending amortized cost of financing receivables modified with borrowers experiencing financial difficulty during the first quarter ended January 26, 2025 and January 28, 2024 were $ 28 and $ 17 , respectively.

These modifications represented 0.06 % and 0.03 % of our financing receivable portfolio for the same periods, respectively.

The ending amortized cost of financing receivables modified with borrowers experiencing financial difficulty were as follows:

Three Months Ended

Six Months Ended

Modified financing receivables

Percentage of financing receivables portfolio

The financial effects of payment deferrals with borrowers experiencing financial difficulty resulted in a weighted average payment deferral of 8 months to the modified contracts.

2 unchanged sentences

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

The ending amortized cost and performance of financing receivables modified during the prior twelve months ended January 26, 2025 and January 28, 2024 were as follows:

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

30-59 days past due

2 unchanged sentences

Non-performing

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

Defaults and subsequent write-offs of financing receivables modified in the prior twelve months were not significant during the three months ended January 26, 2025 and January 28, 2024.

In addition, at January 26, 2025, commitments to provide additional financing to these customers were not significant.

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

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

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

(9) Securitization of Financing Receivables

31 unchanged sentences

Translation adjustments

Goodwill at January 28, 2024

Goodwill at April 28, 2024

Goodwill at October 27, 2024

Translation adjustments

Goodwill at January 26, 2025

Translation adjustments and other

Goodwill at April 27, 2025

The components of other intangible assets were as follows:

7 unchanged sentences

Other intangible assets – net

The amortization of other intangible assets in the first quarter of 2025 and 2024 was $ 41 and $ 42 , respectively.

The amortization of other intangible assets in the second quarter and the first six months of 2025 was $ 37 and $ 78 , and for the second quarter and the first six months of 2024 was $ 41 and $ 83 , 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 $ 1,901 at January 26, 2025, $ 2,121 at October 27, 2024, and $ 2,410 at January 28, 2024.

Amounts are presented net of eliminations, which primarily consist of dealer sales incentives with a right of set-off against trade receivables of $ 2,059 at April 27, 2025, $ 2,121 at October 27, 2024, and $ 2,650 at April 28, 2024.

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

3 unchanged sentences

dollar notes and debentures:

2.75 % notes due 2025

6.55 % debentures due 2028

17 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 $ 35,770 , $ 37,141 , and $ 31,808 at January 26, 2025, October 27, 2024, and January 28, 2024, respectively.

The principal balances of the medium-term notes were $ 34,241 , $ 37,141 , and $ 34,002 , at April 27, 2025, October 27, 2024, and April 28, 2024, 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

Sales-type and direct finance lease revenues

8 unchanged sentences

Three Months Ended

Six Months Ended

Beginning of period balance

5 unchanged sentences

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

As of January 26, 2025, the notional value of these guarantees was $ 128 .

As of April 27, 2025, the notional value of these guarantees was $ 123 .

We may repossess the equipment collateralizing the receivables.

At January 26, 2025, the accrued losses under these guarantees were not material.

We also had other miscellaneous contingent liabilities totaling approximately $ 115 at January 26, 2025.

The accrued liability for these contingencies was $ 25 at January 26, 2025.

At January 26, 2025, we had commitments of approximately $ 490 for the construction and acquisition of property and equipment.

Also at January 26, 2025, we had restricted assets of $ 259 , classified as “Other assets.”

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

We also had guarantees to a VIE (see Note 1) totaling $ 156 as of April 27, 2025.

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

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

At April 27, 2025, we had commitments of approximately $ 505 for the construction and acquisition of property and equipment.

Also, at April 27, 2025, we had restricted assets of $ 250 , classified as “Other assets.”

We are subject to various unresolved legal actions.

The accrued losses on these matters were not material at January 26, 2025.

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

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

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

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

(17) FAIR VALUE MEASUREMENTS

1 unchanged sentence

Long-term borrowings exclude finance lease liabilities.

January 26, 2025

April 27, 2025

October 27, 2024

January 28, 2024

April 28, 2024

Financing receivables – net

Financing receivables securitized – net

Receivables from unconsolidated affiliates

Short-term securitization borrowings

1 unchanged sentence

Long-term borrowings

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

Fair values of the financing receivables and receivables from unconsolidated affiliates that were issued long-term were based on the discounted values of their related cash flows at interest rates currently being offered by us for similar financing receivables or at current market interest rates.

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

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.

2 unchanged sentences

International equity securities

International mutual funds securities

fixed income fund

2 unchanged sentences

Marketable securities:

International fixed income fund

Corporate debt securities

9 unchanged sentences

government-sponsored enterprises.

The contractual maturities of available-for-sale debt securities at January 26, 2025 follow:

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

Due in one year or less

7 unchanged sentences

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

(Gains) Losses

Losses (Gains)

Three Months Ended

Six Months Ended

Assets held for sale

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

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

The following is a description of the valuation methodologies we use to measure certain financial instruments on the balance sheets at fair value:

5 unchanged sentences

Deferred consideration – The total purchase price consideration for three former Deere-Hitachi joint venture factories acquired in 2022 included supply agreement price increases beyond inflation adjustments.

This deferred consideration will be paid as we purchase Deere-branded excavators, components, and service parts from Hitachi under the agreement with a duration that ranges from 5 to 30 years .

This deferred consideration will be paid as we purchase Deere-branded excavators, components, and service parts from Hitachi under the agreement with a duration that ranges from 5 to 30 years after the acquisition date.

The deferred consideration balance is reduced as purchases are made and valued on a discounted cash flow approach using market rates.

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

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

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

3 unchanged sentences

(18) Derivative Instruments

Fair values of our derivative instruments and the associated notional amounts were as follows.

Fair values of our derivative instruments and the associated notional amounts are presented below.

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

January 26, 2025

April 27, 2025

October 27, 2024

January 28, 2024

April 28, 2024

Cash flow hedges:

3 unchanged sentences

Cross-currency interest rate contracts

Net investment hedges:

Cross-currency interest rate contracts

Not designated as hedging instruments:

2 unchanged sentences

Cross-currency interest rate contracts

The amounts recorded in the consolidated balance sheets related to borrowings designated in fair value hedging relationships were as follows.

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

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

The carrying amount of the hedged item and formerly hedged item includes long-term borrowings of $ 399 , $ 598 , and $ 598 at April 27, 2025, October 27, 2024, and April 28, 2024, respectively, that are in active hedging relationships and also had discontinued hedging relationships.

Active Hedging Relationships

8 unchanged sentences

Hedging Amount

January 26, 2025

April 27, 2025

Short-term borrowings

3 unchanged sentences

Long-term borrowings

January 28, 2024

April 28, 2024

Short-term borrowings

2 unchanged sentences

Three Months Ended

Six Months Ended

Fair value hedges:

5 unchanged sentences

Interest rate contracts – Interest expense

Net investment hedges:

Interest rate contracts – Interest expense

Recognized in OCI:

Interest rate contracts – OCI (pretax)

Not designated as hedges:

4 unchanged sentences

Total not designated

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

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

Effectiveness is assessed using the spot method.

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

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

The aggregate fair value of all derivatives with credit-risk-related contingent features that were in a net liability position at January 26, 2025, October 27, 2024, and January 28, 2024 was $ 707 , $ 562 , and $ 691 , respectively.

In accordance with the limits established in these agreements, we posted $ 436 , $ 245 , and $ 368 of cash collateral at January 26, 2025, October 27, 2024, and January 28, 2024, respectively.

In addition, we paid $ 8 of collateral that was outstanding at January 26, 2025, October 27, 2024, and January 28, 2024 to participate in an international futures market to hedge currency exposure, not included in the following table.

The aggregate fair value of all derivatives with credit-risk-related contingent features that were in a net liability position at April 27, 2025, October 27, 2024, and April 28, 2024, was $ 507 , $ 562 , and $ 967 , respectively.

In accordance with the limits established in these agreements, we posted $ 221 , $ 245 , and $ 562 of cash collateral at April 27, 2025, October 27, 2024, and April 28, 2024, respectively.

In addition, we paid $ 8 of collateral that was outstanding at April 27, 2025, October 27, 2024, and April 28, 2024 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

January 26, 2025

April 27, 2025

October 27, 2024

January 28, 2024

April 28, 2024

(19) Share-Based Awards

We are authorized to grant shares for equity incentive awards.

The outstanding shares authorized were 13.7 million at January 26, 2025.

In December 2024, we granted stock options to employees for the purchase of 168 thousand shares of common stock at an exercise price of $ 448.03 per share and a binomial lattice model fair value of $ 116.27 per share at the grant date.

At January 26, 2025, options for 1.4 million shares were outstanding with a weighted-average exercise price of $ 291.97 per share.

During the three months ended January 26, 2025, the restricted stock units (RSUs) granted in thousands of shares and the weighted-average grant date fair values, using the closing price of our common stock on the grant date, in dollars follow:

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

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

At April 27, 2025, options for 1.2 million shares were outstanding with a weighted-average exercise price of $ 309.62 per share.

During the six months ended April 27, 2025, the restricted stock units (RSUs) granted in thousands of shares and the weighted-average grant date fair values, using the closing price of our common stock on the grant date in dollars, follow:

Service-based

1 unchanged sentence

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

(20) Special Items

Discrete Tax Items

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

Banco John Deere S.A.

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

(Bradesco), for Bradesco to invest and become 50 % owner of our wholly-owned subsidiary in Brazil, Banco John Deere S.A.

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

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

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

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

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

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

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

January 26, 2025

(20) Disposition

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

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

Bradesco contributed capital directly to BJD.

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

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

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

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

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

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

Cash and cash equivalents

4 unchanged sentences

Valuation allowance

Assets held for sale

Short-term borrowings

2 unchanged sentences

Retirement benefits and other liabilities

Liabilities held for sale

Total liabilities

Total intercompany payables

* Includes $ 1 restricted cash balance.

( 21) Subsequent Events

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

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

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

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

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

(21) Special ItemS

Discrete Tax Items

Banco John Deere S.A.

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

Bradesco contributed capital equal to our equity investment in BJD.

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

On February 26, 2025 , a quarterly dividend of $ 1.62 per share was declared at the Board of Directors meeting, payable on May 8, 2025 , to stockholders of record on March 31, 2025 .

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

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

(22) Subsequent EventS

In May 2025, we entered into a retail note securitization transaction, resulting in $ 369 of secured borrowings.

On May 28, 2025 , a quarterly dividend of $ 1.62 per share was declared at the Board of Directors meeting, payable on August 8, 2025 , to stockholders of record on June 30, 2025 .

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