What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-05-29 compared with 2025-02-27 · 176 added, 117 removed, 305 unchanged (49% of the section changed)

17 unchanged sentences

Engaged acres are an indicator we use to understand customer utilization of our technology.

We are investing in a Solutions as a Service business model to increase technology adoption and utilization by our customers.

Solutions as a Service products did not represent a significant percentage of our revenues.

We continue to invest in a Solutions as a Service business model to increase technology adoption and utilization by our customers.

Solutions as a Service products did not represent a significant percentage of our revenues in the periods presented.

Company Outlook for 2025

Sales volumes are expected to decline in 2025 compared to 2024 due to reduced demand.

We are uncertain of the impact potential import tariffs by the U.S.

and retaliatory actions taken by other countries could have on our outlook due to the rapidly evolving environment.

Agriculture and turf and construction equipment sales volumes during the remainder of 2025 are expected to continue to be lower than the prior year due to reduced demand.

Agriculture and Turf Outlook for 2025

● Demand in the U.S.

and Canada is expected to decline due to market uncertainty, high interest rates, and elevated used inventory levels, partially offset by the impact of U.S.

government subsidies on farm incomes.

● Demand for large agricultural equipment in the U.S.

and Canada is expected to decline due to high interest rates, elevated used inventory levels, and market uncertainty.

Stable crop prices and the impact of U.S.

government subsidies on farm incomes are expected to partially mitigate this decline.

● We expect small agricultural equipment sales to be down from 2024 levels in the U.S.

Strong profitability is anticipated to continue in the dairy and livestock segment as dairy and livestock prices remain elevated;

however, this is projected to be more than offset by restrained demand in the turf and compact utility tractor markets amid high interest rates.

● In Europe, the industry is forecasted to be down as farm fundamentals in the region have stabilized at reduced levels as commodity prices have steadied and stronger dairy margins are expected to partially offset continued market uncertainty.

Better wheat prices and lower input costs are expected to support increased farm incomes.

● Demand in South America is expected to be flat.

In Brazil, improving local commodity prices due to the appreciation of the U.S.

dollar against the Brazilian real coupled with strong regional yields and decreasing input costs will offer profitability tailwinds to farmers.

Argentina industry sales are forecasted to improve amidst currency stabilization and export tax reductions despite some recent dry weather conditions.

● Industry sales in Asia are forecasted to be down slightly.

Strong profitability is anticipated to continue in the small agricultural sector as dairy and livestock prices remain elevated and certain high value crops return to profitability;

however, this is projected to be more than offset by restrained demand in the turf and compact utility tractor markets amid economic uncertainty and high interest rates.

● Industry demand in Europe is forecasted to be down slightly.

Farm fundamentals are improving, given strong dairy and livestock margins.

Additionally, commodity prices and input costs have steadied along with an improving interest rate environment.

This is projected to be offset by below-average yields in key markets.

● Demand in South America is expected to be roughly flat.

In Brazil, profitability from recovered corn and soybean crop yields, as well as high margins in coffee production, are expected to have a positive impact on

However, record crop production is likely to reduce commodity prices, and high interest rates continue to temper demand for equipment.

● Industry sales in Asia are forecasted to be flat as the outlook for tractor sales in India improves.

Construction and Forestry Outlook for 2025

1 unchanged sentence

and Canada from 2024 levels.

The decline is due to further slowdowns in multi-family housing developments and the commercial real estate market and low levels of earthmoving rental purchases, partially offset by high levels of U.S.

government infrastructure spending and projected growth in single family housing starts.

High interest rates are also expected to further pressure equipment sales as market uncertainty persists.

● Global forestry markets are expected to be flat to down as global markets remain challenged.

● Global roadbuilding markets are forecasted to be generally flat with strong market demand.

The decline is due to projections for single-family housing starts to moderate given macro uncertainty and high mortgage rates, while rental sales continue to soften and elevated interest rates continue to reduce multi-family and commercial real estate markets.

These unfavorable factors are projected to be partially offset by high levels of U.S.

government infrastructure spending.

● Global forestry markets are expected to be flat to down as global market conditions remain challenged.

● Global roadbuilding markets are forecasted to be generally flat, supported by strong end-market demand worldwide, along with improving sentiment throughout Europe.

Financial Services Outlook for 2025

+ Prior and current period special items

+ Provision for credit losses

+ Selling, administrative and general expenses

(–) Financing spreads

5 unchanged sentences

lower sales volumes, higher sales incentives, and elevated receivable write-offs and expected credit losses.

Global Trade Policies.

In the second quarter of 2025, new tariffs were imposed in the U.S.

for imports from a broad range of countries.

Certain countries also implemented or proposed retaliatory tariffs on imports from the U.S.

Trade policies are rapidly evolving causing uncertainty in the agriculture and construction industries.

Trade policies impact us in various ways.

We are a net exporter of agriculture and turf equipment from the U.S.

Nearly 80% of our domestic sales are assembled in the U.S., with the remaining products imported primarily from Europe, Mexico, India, and Japan.

The current effective incremental tariffs have adversely affected the cost of components.

Uncertainties surrounding trade policies may also result in supply chain disruptions and could impact the availability of raw materials and components.

In addition, retaliatory tariffs by regions outside the U.S., currently in effect or adopted in the future, may impact the prices of our exported products and the profit realized from these exports.

The direct impact of incremental tariffs incurred by us was approximately $95 in the second quarter of 2025, excluding the impact of tariffs on our suppliers and market demand.

We are actively taking steps to limit potential impacts on our business.

Interest Rates.

While interest rates in the U.S.

began to decrease in the fourth quarter of 2024, they remain elevated.

Higher rates impact us in several ways, primarily affecting the demand for our products and financing spreads for the financial services operations.

decreased in the fourth quarter of 2024, they remain elevated.

High rates impact us in several ways, primarily affecting the demand for our products and financing spreads for the financial services operations.

The markets for our agriculture, turf, and construction products are negatively impacted by elevated interest rates and their effect on borrowing costs for our customers.

Foreign Exchange Rates.

During the first quarter of 2025, the U.S.

dollar strengthened against the primary currencies in which we conduct business overseas.

A stronger U.S.

dollar is expected to have an unfavorable impact on our fiscal year 2025 financial results.

We utilize foreign currency derivatives that are not designated to mitigate the impact of currency fluctuations on our cash flow, which resulted in favorable foreign exchange gains for the quarter.

These derivatives are limited in duration, leaving us exposed to the long-term impact of currency fluctuations on income.

Changes in the agricultural market business cycle, interest rates, and foreign exchange rates are driven by factors outside of our control, and as a result we cannot reasonably foresee when these conditions will fully subside.

Changes in the agricultural market business cycle, global trade policies, and interest rates are driven by factors outside of our control, and as a result we cannot reasonably foresee when these conditions will fully subside.

Legal Proceeding – On January 15, 2025, the Federal Trade Commission (FTC), along with the Attorneys General of the States of Illinois and Minnesota filed a lawsuit against us in the United States District Court for the Northern District of Illinois Western Division.

The Attorneys General of the States of Arizona, Michigan, and Wisconsin have since joined the lawsuit.

The lawsuit alleges monopolization and unfair competition in violation of federal and state antitrust laws.

The Attorneys General of the States of Arizona, Michigan, and Wisconsin joined the lawsuit.

The lawsuit alleges monopolization and unfair competition in violation of the federal and state antitrust laws.

Plaintiffs seek a permanent injunction and other equitable relief to allow owners of our equipment, as well as independent repair providers, access to our repair tools and any other repair resources available to authorized John Deere dealers.

1 unchanged sentence

Other Items of Concern and Uncertainties – Other items that could impact our results are:

● global and regional political conditions, including the ongoing war between Russia and Ukraine and the conflicts in the Middle East

● shifts in energy, economic, tax, trade policies, and positions on government subsidies of farming

● new or retaliatory tariffs

● global and regional political conditions, including the ongoing war between Russia and Ukraine, the conflict between India and Pakistan, and the conflicts in the Middle East

● shifts in energy, economic, tax and trade policies, and positions on government subsidies of farming

● capital market disruptions

11 unchanged sentences

Three Months Ended

Six Months Ended

Deere & Company

3 unchanged sentences

Diluted earnings per share

Net sales and revenues decreased for the quarter primarily due to lower sales volumes.

Net income and diluted EPS decreased driven by lower sales.

Net sales and revenues decreased for both the quarter and year-to-date periods primarily due to lower sales volumes.

Net income and diluted EPS decreased primarily due to lower sales volumes and the unfavorable effects of foreign currency exchange, partially offset by lower production costs and discrete tax items in the first quarter of 2025 (see Note 21).

The discussion of net sales and operating profit is included in the Business Segment Results below.

Net income was impacted by special items.

See Note 20 for additional details.

An explanation of the cost of sales to net sales ratio and other significant statement of consolidated income changes follows:

Three Months Ended

Six Months Ended

Deere & Company

2 unchanged sentences

+ Material costs

Increased mostly due to higher overhead costs from reduced volumes resulting in production inefficiencies, partially offset by lower material costs.

Lower due to reduced international mutual funds investment income and lower service revenues and miscellaneous income.

Increased due to higher overhead costs from production inefficiencies associated with lower volumes and higher tariffs, partially offset by reduced material costs, and lower employee profit-sharing incentives.

Lower for the first six months primarily due to reduced international mutual funds investment income.

Research and development expenses

Largely unchanged due to continued focus on developing and deploying technology solutions.

Largely unchanged due to continued focus on developing and incorporating technology solutions.

Selling, administrative and general expenses

Decreased mostly due to lower employee profit-sharing incentives and the favorable impact of reduced valuation allowance on "Assets held for sale" of Banco John Deere S.A.

(see Note 20), partially offset by a higher provision for credit losses.

Decreased for both periods mostly due to lower employee profit-sharing incentives, partially offset by a higher provision for credit losses.

Additionally, the first six months includes the favorable impact of a reduced valuation allowance on Banco John Deere S.A.

(BJD) assets (see Note 21).

Interest expense

Increased primarily due to higher average borrowing rates and higher average borrowings.

Decreased for both periods primarily due to lower average borrowings and lower average borrowing rates.

Other operating expenses

Decreased due to current period foreign exchange gains and prior period foreign exchange losses.

Decreased for the first six months due to lower foreign currency exchange losses in the first quarter and higher pension benefits for both periods (see Note 6).

Provision for income taxes

Decreased as a result of lower pretax income and the favorable impact of discrete tax adjustments (see Note 20).

Decreased for both periods as a result of lower pretax income.

Additionally, the six months ended was impacted by the favorable impact of discrete tax adjustments (see Note 21).

Business Segment Results – 2025 Compared with 2024

The equipment operations segment results were impacted by incremental tariffs in 2025.

The tariff costs were included in production costs and other items, and were offset by cost reductions in the same categories.

Three Months Ended

Six Months Ended

Production and Precision Agriculture

3 unchanged sentences

Currency translation impact on Net sales

Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes (primarily in the U.S., Canada, and Europe) driven by overall market uncertainty.

Operating profit decreased primarily due to lower shipment volumes, partially offset by lower selling, administrative and general expenses and research and development expenses driven by a decrease in employee profit-sharing incentives, decreased production costs from lower material costs, and price realization.

Production and precision agriculture sales decreased for the quarter as a result of lower U.S.

shipment volumes driven mainly by higher interest rates and used inventory levels.

Operating profit decreased primarily due to lower shipment volumes / sales mix and unfavorable effects of foreign currency exchange.

This was partially offset by decreased production costs from lower material costs and employee profit-sharing incentives, and price realization.

Production & Precision Agriculture Operating Profit

First Quarter 2025 Compared to First Quarter 2024

Second Quarter 2025 Compared to Second Quarter 2024

Sales for the first six months decreased as a result of lower shipment volumes (primarily in the U.S.

Operating profit for the first six months decreased due to lower shipment volumes / sales mix driven by higher interest rates and used inventory levels, partially offset by decreased production costs from lower material costs and employee profit-sharing incentives, and price realization.

Production & Precision Agriculture Operating Profit

First Six Months 2025 Compared to First Six Months 2024

Three Months Ended

Six Months Ended

Small Agriculture and Turf

3 unchanged sentences

Currency translation impact on Net sales

Small agriculture and turf sales decreased for the quarter due to lower shipment volumes (primarily in the U.S., Canada, and Europe) driven mainly by market uncertainty and high interest rates.

Operating profit decreased primarily as a result of lower shipment volumes partially offset by lower production costs, driven by a decrease in material costs and employee profit-sharing incentives.

Small agriculture and turf sales decreased for the quarter as a result of lower shipment volumes (primarily in the U.S., offset by India) driven mainly by economic uncertainties and higher interest rates, partially offset by price realization in the U.S.

Operating profit remained steady as favorable factors including lower production costs from lower material costs, lower warranty expenses, and price realization were offset by lower shipment volumes / sales mix.

Small Agriculture & Turf Operating Profit

First Quarter 2025 Compared to First Quarter 2024

Second Quarter 2025 Compared to Second Quarter 2024

Sales for the first six months decreased as a result of lower shipment volumes (primarily in the U.S.

and Europe) driven mainly by economic uncertainties and higher interest rates.

Operating profit for the first six months decreased primarily as a result of lower shipment volumes / sales mix, partially offset by decreased production costs driven by lower material costs, and price realization.

Small Agriculture & Turf Operating Profit

First Six Months 2025 Compared to First Six Months 2024

Three Months Ended

Six Months Ended

Construction and Forestry

3 unchanged sentences

Currency translation impact on Net sales

Construction and forestry sales were lower for the quarter due to decreased U.S.

shipment volumes, driven by planned underproduction efforts to reduce field inventory and competitive pressures.

Operating profit decreased primarily due to lower shipment volumes, unfavorable price realization, and higher selling, administrative and general expenses in part due to marketing events.

Construction and forestry sales decreased for the quarter due to lower shipment volumes (primarily in the U.S.

and Brazil) driven by economic uncertainties and elevated interest rates.

Operating profit decreased primarily due to lower shipment volumes / sales mix and unfavorable price realization due to pressures from the competitive environment.

Construction & Forestry Operating Profit

First Quarter 2025 Compared to First Quarter 2024

Second Quarter 2025 Compared to Second Quarter 2024

Sales for the first six months decreased due to lower worldwide shipment volumes due to planned underproduction in the first quarter, economic uncertainties, and higher interest rates.

Operating profit decreased primarily due to lower shipment volumes / sales mix and unfavorable price realization due to pressures from the competitive environment.

Construction & Forestry Operating Profit

First Six Months 2025 Compared to First Six Months 2024

Three Months Ended

Six Months Ended

Financial Services

1 unchanged sentence

Interest expense

The average balance of receivables and leases financed was 3% lower in the first three months of 2025, compared with the same period last year, primarily due to the reclassification of the assets of Banco John Deere S.A.

(BJD) to “Assets held for sale” (see Note 20).

Excluding the impact of this reclassification, revenue increased due to higher average portfolio balances and financing rates.

Net income for the quarter was affected by the decreased valuation allowance on BJD “Assets held for sale” (see Note 20).

Excluding the impact of this special item, net income decreased due to a higher provision for credit losses, partially offset by lower selling, administrative and general expenses.

The average balance of receivables and leases financed was 6% lower in the second quarter of 2025 and 4% lower in the first six months of 2025 compared with the same periods last year, primarily due to the deconsolidation of BJD in 2025 (see Note 20).

Excluding the impact of BJD, revenue was flat in the second quarter of 2025 and increased slightly in the first six months of 2025.

Financial services net income in the second quarter of 2025 was flat compared with the same period last year due to less favorable financing spreads and a higher provision for credit losses, offset by lower selling, administrative, and general expenses and a reduction in derivative valuation adjustments.

Excluding the impact of the BJD special item in 2025 (see Note 21), net income decreased in the first six months of 2025 due to a higher provision for credit losses and lower financing spreads, partially offset by lower selling, administrative, and general expenses and a reduction in derivative valuation adjustments.

Critical Accounting Estimates

11 unchanged sentences

Based on the available sources of liquidity, we expect to meet our funding needs in the short term (next 12 months) and long term (beyond 12 months).

We are forecasting lower operating cash flows from equipment operations in 2025 compared with 2024 driven by a decrease in net income adjusted for non-cash provisions and a lower reduction in inventories in 2025 compared with prior period.

We are forecasting lower operating cash flows from equipment operations in 2025 compared with 2024 driven by a decrease in net income adjusted for non-cash provisions.

We operate in multiple industries, which have unique funding requirements.

1 unchanged sentence

Historically, these operations have been subject to seasonal variations in financing requirements for inventories and receivables from dealers.

The financial services operations rely on their ability to raise substantial amounts of funds to finance their receivable and lease portfolios.

BJD assets and liabilities were reclassified to held for sale in the third quarter of 2024 and maintain that classification in the first quarter of 2025 (see Note 20);

they are not included within balances at year-end 2024 or at the end of the first quarter of 2025.

The financial services operations rely on their ability to raise substantial amounts of funds to finance their receivable and lease portfolio.

In the second quarter of 2025, the BJD business was deconsolidated (see Note 20).

BJD assets and liabilities were reclassified to held for sale in the third quarter of 2024 and maintained that classification until the deconsolidation;

they are not included within balances at year-end 2024.

Key metrics are provided in the following table:

6 unchanged sentences

Ratio of interest-bearing debt to stockholder’s equity

The increase in unused credit lines at January 26, 2025 compared to October 27, 2024 relates to a decrease in commercial paper outstanding.

The decrease in unused credit lines during the first six months of 2025 relates to an increase in commercial paper outstanding partially offset by an increase in bank lines of credit.

The increase in unused credit lines compared to a year ago was due to a decrease in commercial paper outstanding and an increase in bank lines of credit.

There have been no material changes to the contractual obligations and other cash requirements identified in our most recently filed Annual Report on Form 10-K.

Three Months Ended

Net cash used for operating activities

Net cash provided by investing activities

Six Months Ended

April 27, 2025

April 28, 2024

Net cash provided by operating activities

Net cash provided by (used for) investing activities

Net cash used for financing activities

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

Net decrease in cash, cash equivalents, and restricted cash

Cash outflows from consolidated operating activities in the first three months of 2025 were $1,132.

This resulted mainly from the payout of employee profit-sharing incentives, an increase in inventories, and a reduction in dealer sales incentive accruals, partially offset by net income adjusted for non-cash provisions.

Cash inflows from investing activities were $1,416 in the first three months of this year.

The primary drivers were collections of receivables

(excluding receivables related to sales) exceeding the cost of receivables acquired, partially offset by purchases of property and equipment and a change in collateral on derivatives – net.

Cash outflows from financing activities were $923 in the first three months of 2025 due to repurchases of common stock, dividends paid, and lower borrowings.

Cash returned to shareholders was $844 in the first three months of 2025.

Cash, cash equivalents, and restricted cash decreased $726 during the first three months of this year.

Net increase (decrease) in cash, cash equivalents, and restricted cash

Cash inflows from consolidated operating activities in the first six months of 2025 were $568.

This resulted mainly from net income adjusted for non-cash provisions, partially offset by an increase in receivables related to sales, an increase in inventories, employee profit-sharing incentives, an OPEB contribution, and a reduction in dealer sales incentive accruals.

Cash inflows from investing activities were $779 in the first six months of this year.

The primary drivers were collections of receivables (excluding receivables related to sales) exceeding the cost of receivables acquired, partially offset by purchases of property and equipment.

Cash outflows from financing activities were $821 in the first six months of 2025, as cash returned to shareholders was partially offset by higher external borrowings.

Cash returned to shareholders was $1,681 in the first six months of 2025.

Cash, cash equivalents, and restricted cash increased $546 during the first six months of 2025.

Key Metrics and Balance Sheet Changes

1 unchanged sentence

Trade accounts and notes receivable arise from sales of goods to customers.

Trade receivables decreased $395 during the first three months of 2025, and decreased $2,864 compared to a year ago, both due to lower sales.

The percentage of total worldwide trade receivables outstanding for periods exceeding 12 months was 6% at January 26, 2025, 6% at October 27, 2024, and 1% at January 28, 2024.

Trade receivables increased $1,422 during the first six months of 2025, primarily due to a seasonal increase.

These receivables decreased $2,132 compared to a year ago due to lower sales volumes.

The percentage of total worldwide trade receivables outstanding for periods exceeding 12 months was 7% at April 27, 2025, 6% at October 27, 2024, and 2% at April 28, 2024.

Financing Receivables and Equipment on Operating Leases.

Financing receivables and equipment on operating leases consist of retail notes originated in connection with financing of new and used equipment, operating leases, revolving charge accounts, sales-type and direct financing leases, and wholesale notes.

Financing receivables and equipment on operating leases decreased $3,673 during the first quarter of 2025, primarily due to seasonal payments and lower retail customer receivables and dealer inventories, and decreased $49 in the past 12 months due to reclassification of BJD financing receivables as “Assets held for sale.” Excluding this, financing receivables increased $2,622 due to increased dealer inventories and retail customer receivables.

Total acquisition volumes of financing receivables and equipment on operating leases were 22% lower in the first three months of 2025, compared with the same period last year, as volumes of wholesale notes, retail notes, and operating leases were lower, while revolving charge accounts were higher compared to the same period last year.

Inventories increased by $651 during the first three months, primarily due to a seasonal increase.

Inventories decreased $1,193 compared to a year ago due to lower forecasted demand and inventory management efforts.

Financing receivables and equipment on operating leases decreased $2,353 during the first six months of 2025, primarily due to lower retail customer receivables, seasonal payments, and a decline in wholesale notes.

Financing receivables and equipment on operating leases decreased $1,375 in the past 12 months due to the sale of 50% ownership in BJD and deconsolidation of related receivables in the second quarter of 2025 (see Note 20).

Excluding the related BJD receivables from April 28, 2024 balances, financing receivables and equipment on operating leases increased $1,589 due to higher retail customer receivables and wholesale notes.

Total acquisition volumes of financing receivables and equipment on operating leases were 17% lower in the first six months of 2025, compared with the same period last year excluding BJD receivables, as volumes of wholesale notes, retail notes, operating leases, and financing leases were lower, while revolving charge accounts were higher compared to the same period last year.

Inventories increased by $777 during the first six months of 2025 primarily due to a seasonal increase, and decreased by $573 compared to a year ago due to lower forecasted shipment volumes.

A majority of these inventories are valued on the last-in, first out (LIFO) method.

Property and Equipment.

Property and equipment cash expenditures in the first three months of 2025 were $352, compared with $362 in the same period last year.

Property and equipment cash expenditures in the first six months of 2025 were $555 compared with $719 in the same period last year.

Capital expenditures in 2025 are estimated to be approximately $1,430.

Accounts Payable and Accrued Expenses.

Accounts payable and accrued expenses decreased by $2,381 in the first three months of 2025, primarily due to a decrease in accrued expenses associated with employee benefits, dealer sales discounts, and taxes.

Accounts payable and accrued expenses decreased $1,199 compared to a year ago, due to a decrease in accounts payable associated with trade payables and a decrease in accrued expenses associated with employee benefits.

Total external borrowings decreased by $812 in the first three months of 2025 and increased $1,215 compared to a year ago, generally corresponding with the level of the receivable and lease portfolio, as well as other working capital requirements.

Accounts payable and accrued expenses decreased by $1,198 in the first six months of 2025, primarily due to a decrease in accrued expenses associated with employee benefits and dealer sales discounts.

Accounts payable and accrued expenses decreased $1,264 compared to a year ago due to a decrease in accrued expenses associated with derivative liabilities, employee benefits, and warranty liabilities, and a decrease in accounts payable associated with trade payables.

Total external borrowings increased by $1,128 in the first six months of 2025 and increased $684 compared to a year ago, which contributed to higher cash, cash equivalents, and restricted cash balances.

The change in borrowings compared to a year ago was also impacted by the sale of 50% ownership in BJD and deconsolidation of related borrowings in the second quarter of 2025 (see Note 20).

BJD borrowings at year-end were included in “Liabilities held for sale.”

John Deere Capital Corporation (Capital Corporation), a U.S.

financial services subsidiary, has a revolving warehouse facility to utilize bank conduit facilities to securitize retail notes (see Note 9).

The facility was renewed in November 2024 with an expiration in November 2025 and with an increase in the total capacity or “financing limit” from $2,000 to $2,500.

At January 26, 2025, $1,917 of securitization borrowings were outstanding under the facility.

The facility has an expiration in November 2025 and total capacity or “financing limit” of $2,500.

At April 27, 2025, $1,643 of securitization borrowings were outstanding under the facility.

At the end of the contractual revolving period, unless the banks and Capital Corporation agree to renew, Capital Corporation would liquidate the secured borrowings over time as payments on the retail notes are collected.

In the first three months of 2025, the financial services operations issued $725 and retired $1,145 of retail note securitization borrowings, which are presented in “Net proceeds (payments) in total short-term borrowings (original maturities three months or less).”

In the first six months of 2025, the financial services operations issued $1,480 and retired $2,351 of retail note securitization borrowings, which are presented in “Net proceeds (payments) in short-term borrowings (original maturities three months or less).”

Lines of Credit.

We also have access to bank lines of credit with various banks throughout the world.

Worldwide lines of credit totaled $11,061 at January 26, 2025, consisting primarily of:

● a 364-day credit facility agreement of $5,000 expiring in the second quarter of 2025

● a credit facility agreement of $2,750 expiring in the second quarter of 2028

● a credit facility agreement of $2,750 expiring in the second quarter of 2029

At January 26, 2025, $7,793 of these worldwide lines of credit were unused.

We have access to bank lines of credit with various banks throughout the world.

Worldwide lines of credit totaled $11.9 billion at April 27, 2025, consisting primarily of:

● a 364-day credit facility agreement of $5.0 billion expiring in the second quarter of 2026

● a credit facility agreement of $3.25 billion expiring in the second quarter of 2028

● a credit facility agreement of $3.25 billion expiring in the second quarter of 2030

At April 27, 2025, $4,866 of these worldwide lines of credit were unused.

For the purpose of computing unused credit lines, commercial paper and short-term bank borrowings were considered to constitute utilization.

12 unchanged sentences

FORWARD-LOOKING STATEMENTS

Certain statements contained herein, including in the sections entitled “Overview” and “Condensed Notes to Interim Consolidated Financial Statements” relating to future events, expectations, and trends constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially.

Certain statements contained herein, including in the section entitled “Overview,” “Trends and Economic Conditions,” and “Condensed Notes to Interim Consolidated Financial Statements” relating to future events, expectations, and trends constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially.

Some of these risks and uncertainties could affect all lines of our operations generally while others could more heavily affect a particular line of business.

3 unchanged sentences

Among these factors are risks related to:

● the agricultural business cycle, which can be unpredictable and is affected by factors such as world grain stocks, harvest yields, available farm acres, acreage planted, soil conditions, prices for commodities and livestock, input costs, availability of transport for crops as well as adverse macroeconomic conditions, including unemployment, inflation, interest rate volatility, changes in consumer practices due to slower economic growth, ability to export commodities, and regional or global liquidity constraints;

● government policies and actions in respect to global trade, tariffs and trade agreements, and energy, and the uncertainty of our ability to sell products domestically or internationally, continue production at certain international facilities, procure raw materials and components, accurately forecast demand and inventory, manage increased costs of production, absorb or pass on increased pricing, predict financial results, and remain competitive based on these actions and policies;

● government policies and actions with respect to the global trade environment including increased and proposed tariffs announced by the U.S.

government, any potential retaliatory trade regulations, tariffs and policies and the uncertainty of our ability to sell products domestically or internationally, continue production at certain international facilities, procure raw materials and components, accurately forecast demand and inventory, manage increased costs of production, absorb or pass on increased pricing, accurately predict financial results and industry trends, and remain competitive based on these trade actions, policies, and general economic uncertainty;

● the agricultural business cycle, which can be unpredictable and is affected by factors such as world grain stocks, harvest yields, available farm acres, acreage planted, soil conditions, prices for commodities and livestock, input costs, availability of transport for crops as well as adverse macroeconomic conditions, including unemployment, inflation, interest rate volatility, changes in consumer practices due to slower economic growth or a recession and regional or global liquidity constraints;

● higher interest rates and currency fluctuations which could adversely affect the U.S.

2 unchanged sentences

● housing starts and supply, real estate and housing prices, levels of public and non-residential construction, and infrastructure investment;

● political, economic, and social instability of the geographies in which we operate, including the ongoing war between Russia and Ukraine and the conflicts in the Middle East;

● political, economic, and social instability of the geographies in which we operate, including the ongoing war between Russia and Ukraine, the conflict between India and Pakistan, and the conflicts in the Middle East;

● worldwide demand for food and different forms of renewable energy impacting the price of farm commodities and consequently the demand for our equipment;

● investigations, claims, lawsuits, or other legal proceedings, including the recent lawsuit filed by the FTC and the Attorneys General of the States of Arizona, Illinois, Michigan, Minnesota, and Wisconsin alleging that we unlawfully withheld self-repair capabilities from farmers and independent repair providers;

● changes in climate patterns, unfavorable weather events, and natural disasters, including potential consequences from the recent California wildfires;

● availability and price of raw materials, components, and whole goods;

● investigations, claims, lawsuits, or other legal proceedings, including the lawsuit filed by the Federal Trade Commission (FTC) and the Attorneys General of the States of Arizona, Illinois, Michigan, Minnesota, and Wisconsin alleging that we unlawfully withheld self-repair capabilities from farmers and independent repair providers;

● delays or disruptions in our supply chain;

● suppliers’ and manufacturers’ business practices and compliance with applicable laws such as human rights, safety, environmental, and fair wages;

● changes in climate patterns, unfavorable weather events, and natural disasters;

● availability and price of raw materials, components, and whole goods;

● suppliers’ and manufacturers’ business practices and compliance with laws applicable to topics such as human rights, safety, environmental, and fair wages;

● loss of or challenges to intellectual property rights;

32 unchanged sentences

STATEMENTS OF INCOME

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

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

Net Sales and Revenues

8 unchanged sentences

Income before Income Taxes

Provision (credit) for income taxes

Provision for income taxes

Income after Income Taxes

Equity in income of unconsolidated affiliates

Net loss attributable to noncontrolling interests

Net Income Attributable to Deere & Company

1 Elimination of intercompany interest income and expense.

2 Elimination of equipment operations’ margin from inventory transferred to equipment on operating leases.

3 Elimination of income and expenses between equipment operations and financial services related to intercompany guarantees of investments in certain international markets.

4 Elimination of intercompany service revenues and fees.

5 Elimination of financial services’ lease depreciation expense related to inventory transferred to equipment on operating leases.

DEERE & COMPANY

SUPPLEMENTAL CONSOLIDATING DATA (Continued)

STATEMENTS OF INCOME

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

Net Sales and Revenues

Finance and interest income

Costs and Expenses

Cost of sales

Research and development expenses

Selling, administrative and general expenses

Interest expense

Interest compensation to Financial Services

Other operating expenses

Income before Income Taxes

Provision for income taxes

Income after Income Taxes

Equity in income (loss) of unconsolidated affiliates

48 unchanged sentences

STATEMENTS OF 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

Cash Flows from Operating Activities

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

Provision (credit) for credit losses

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

Provision for credit losses

Provision for depreciation and amortization

8 unchanged sentences

Retirement benefits

Net cash provided by (used for) operating activities

Net cash provided by operating activities

Cash Flows from Investing Activities

7 unchanged sentences

Decrease in investment in Financial Services

Decrease (increase) in trade and wholesale receivables

Increase in trade and wholesale receivables

Collections of receivables from unconsolidated affiliates

Collateral on derivatives – net

15 unchanged sentences

Cash and cash equivalents

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

Restricted cash (Other assets)

11 unchanged sentences

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 2. Management’s Discussion and Analysis