What changed in this filing

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Item 1. Financial Statements

2025-08-28 compared with 2025-05-29 · 163 added, 100 removed, 763 unchanged (26% of the section changed)

2 unchanged sentences

STATEMENTS OF CONSOLIDATED INCOME

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

For the Three and Nine Months Ended July 27, 2025 and July 28, 2024

(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 27, 2025 and April 28, 2024

For the Three and Nine Months Ended July 27, 2025 and July 28, 2024

(In millions of dollars) Unaudited

Three Months Ended

Six Months Ended

Nine Months Ended

Other Comprehensive Income (Loss), Net of Income Taxes

2 unchanged sentences

Unrealized gain (loss) on derivatives

Unrealized gain (loss) on debt securities

Unrealized gain on debt securities

Other Comprehensive Income (Loss), Net of Income Taxes

Comprehensive Income

Comprehensive income (loss) attributable to noncontrolling interests

Comprehensive loss attributable to noncontrolling interests

Comprehensive Income Attributable to Deere & Company

27 unchanged sentences

Stockholders’ Equity

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

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

Common stock in treasury

8 unchanged sentences

STATEMENTS OF CONSOLIDATED CASH FLOWS

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

For the Nine Months Ended July 27, 2025 and July 28, 2024

(In millions of dollars) Unaudited

5 unchanged sentences

Share-based compensation expense

Provision (credit) for deferred income taxes

Credit for deferred income taxes

Changes in assets and liabilities:

9 unchanged sentences

Cost of receivables acquired (excluding receivables related to sales)

Acquisitions of businesses, net of cash acquired

Purchases of marketable securities

3 unchanged sentences

Collateral on derivatives – net

Net cash provided by (used for) investing activities

Net cash used for investing activities

Cash Flows from Financing Activities

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

Net 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 27, 2025 and April 28, 2024

For the Three and Nine Months Ended July 27, 2025 and July 28, 2024

(In millions of dollars) Unaudited

6 unchanged sentences

Income (Loss)

Three Months Ended April 28, 2024

Balance January 28, 2024

Three Months Ended July 28, 2024

Balance April 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 July 28, 2024

Three Months Ended July 27, 2025

Balance April 27, 2025

Three Months Ended April 27, 2025

Balance January 26, 2025

Net income (loss)

4 unchanged sentences

Share based awards and other

Balance April 27, 2025

Six Months Ended April 27, 2025

Balance July 27, 2025

Nine Months Ended July 27, 2025

Balance October 27, 2024

5 unchanged sentences

Share based awards and other

Balance April 27, 2025

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

The third quarter ends for fiscal years 2025 and 2024 were July 27, 2025 and July 28, 2024, respectively.

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

10 unchanged sentences

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:

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

Receivables from unconsolidated affiliates – "Other receivables"

25 unchanged sentences

Accounting Pronouncements to be Adopted

In July 2025, the FASB issued ASU 2025-05 , Financial Instruments – Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient for estimating expected credit losses on short-term receivables from sales transactions.

The ASU will be effective for us beginning with our interim reporting for fiscal year 2027, with early adoption permitted.

We are assessing the effect of this update on our financial results.

In November 2024, the FASB issued ASU 2024-03 , Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40):

17 unchanged sentences

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

Three Months Ended April 27, 2025

Three Months Ended July 27, 2025

Primary geographic markets:

11 unchanged sentences

At a point in time

Six Months Ended April 27, 2025

Nine Months Ended July 27, 2025

Primary geographic markets:

11 unchanged sentences

At a point in time

Three Months Ended April 28, 2024

Three Months Ended July 28, 2024

Primary geographic markets:

11 unchanged sentences

At a point in time

Six Months Ended April 28, 2024

Nine Months Ended July 28, 2024

Primary geographic markets:

13 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 $ 2,089 , $ 1,923 , and $ 1,911 at April 27, 2025, October 27, 2024, and April 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 $ 2,100 , $ 1,923 , and $ 1,895 at July 27, 2025, October 27, 2024, and July 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 $ 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.

Revenue recognized from deferred revenue that was recorded as a contract liability at the beginning of the fiscal year was $ 125 and $ 126 during the three months and $ 498 and $ 484 during the nine months ended July 27, 2025 and July 28, 2024, respectively.

The amount of unsatisfied performance obligations for contracts with an original duration greater than one year was $ 1,823 at July 27, 2025.

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 27, 2025

Three Months Ended July 27, 2025

Cumulative translation adjustment

1 unchanged sentence

Unrealized hedging gain (loss)

Reclassification of realized (gain) loss to Interest expense

Net unrealized gain (loss) on derivatives

8 unchanged sentences

Prior service (credit) cost

Settlements/curtailment

Net unrealized gain (loss) on retirement benefits adjustment

Total other comprehensive income (loss)

Six Months Ended April 27, 2025

Nine Months Ended July 27, 2025

Cumulative translation adjustment

12 unchanged sentences

Prior service (credit) cost

Settlements/curtailment

Net unrealized gain (loss) on retirement benefits adjustment

Total other comprehensive income (loss)

Three Months Ended April 28, 2024

Three Months Ended July 28, 2024

Cumulative translation adjustment

13 unchanged sentences

Total other comprehensive income (loss)

Six Months Ended April 28, 2024

Nine Months Ended July 28, 2024

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

Settlements/curtailment

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

During the first nine months of 2025, 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

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:

April 27, 2025

July 27, 2025

Revolving Charge Accounts

11 unchanged sentences

Total retail customer receivables

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

Write-offs for the nine months ended July 27, 2025:

Agriculture and turf

17 unchanged sentences

Construction and forestry

April 28, 2024

July 28, 2024

Revolving Charge Accounts

11 unchanged sentences

Total retail customer receivables

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

Write-offs for the nine months ended July 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 April 27, 2025

Three Months Ended July 27, 2025

Beginning of period balance

Translation adjustments

End of period balance

Six Months Ended April 27, 2025

Nine Months Ended July 27, 2025

Beginning of period balance

2 unchanged sentences

End of period balance

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

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.

The allowance for credit losses remained relatively flat in the third quarter of 2025 and increased in the first nine 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.

In the third quarter of 2024, 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).

These operations were deconsolidated in the second quarter of 2025 (see Note 20).

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 were as follows:

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

Three Months Ended

Six Months Ended

Nine 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.

For the nine months ended July 27, 2025, the financial effects of payment deferrals with borrowers experiencing financial difficulty resulted in a weighted average payment deferral of 7 months to the modified contracts.

Term extensions provided to borrowers experiencing financial difficulty added a weighted average of 11 months to the modified contracts.

1 unchanged sentence

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 April 27, 2025 and April 28, 2024 were as follows:

The ending amortized cost and performance of financing receivables modified during the prior twelve months ended July 27, 2025 and July 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 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.

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

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

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

(9) Securitization of Financing Receivables

8 unchanged sentences

The structure of these transactions does not meet the accounting criteria for a sale of receivables.

As a result, they are accounted for as a secured borrowing.

As a result, they are accounted for as secured borrowings.

The receivables and borrowings remain on our balance sheet and are separately reported as “Financing receivables securitized – net” and “Short-term securitization borrowings,” respectively.

17 unchanged sentences

The changes in amounts of goodwill by operating segments were as follows:

There were no accumulated goodwill impairment losses.

Goodwill at October 29, 2023

Translation adjustments

Goodwill at April 28, 2024

Goodwill at July 28, 2024

Goodwill at October 27, 2024

Translation adjustments and other

Goodwill at April 27, 2025

Acquisitions (Note 20)

Translation adjustments

Goodwill at July 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 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 amortization of other intangible assets in the third quarter and the first nine months of 2025 was $ 31 and $ 110 , and for the third quarter and the first nine months of 2024 was $ 41 and $ 124 , 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 $ 2,059 at April 27, 2025, $ 2,121 at October 27, 2024, and $ 2,650 at April 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 $ 2,268 at July 27, 2025, $ 2,121 at October 27, 2024, and $ 2,535 at July 28, 2024.

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

22 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 $ 34,241 , $ 37,141 , and $ 34,002 , at April 27, 2025, October 27, 2024, and April 28, 2024, respectively.

The principal balances of the medium-term notes were $ 35,699 , $ 37,141 , and $ 36,716 , at July 27, 2025, October 27, 2024, and July 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

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.

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

As of July 27, 2025, the notional value of these guarantees was $ 130 .

We may repossess the equipment collateralizing the receivables.

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.”

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

We also had guarantees to a VIE (see Note 1) totaling $ 153 as of July 27, 2025.

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

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

At July 27, 2025, we had commitments of approximately $ 630 for the construction and acquisition of property and equipment.

Also, at July 27, 2025, we had restricted assets of $ 331 , classified as “Other assets,” which includes restricted cash primarily related to securitization of financing receivables (see Note 9) and cash that is legally restricted as to withdrawal or usage.

We are subject to various unresolved legal actions.

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

We believe the reasonably possible range of losses, if any, 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), antitrust matters (including class action litigation), employment, patent, and trademark.

(17) FAIR VALUE MEASUREMENTS

The fair values of financial instruments that do not approximate the carrying values were as follows.

The fair values of financial instruments that do not approximate the carrying values are presented in the table below.

Long-term borrowings exclude finance lease liabilities.

April 27, 2025

July 27, 2025

October 27, 2024

April 28, 2024

July 28, 2024

Financing receivables – net

7 unchanged sentences

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

In May 2025 and May 2024, we acquired held-to-maturity marketable securities that mature in less than one year.

The carrying value of the held-to-maturity marketable securities was $ 62 and $ 12 as of July 27, 2025 and July 28, 2024 , respectively, which approximated fair values.

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.

Certain long-term borrowings have been swapped to current variable interest rates.

The carrying values of these long-term borrowings include adjustments related to fair value hedges.

Assets and liabilities measured at fair value on a recurring basis follow, excluding our cash equivalents, which were carried at a cost that approximates fair value and consisted of money market funds and time deposits.

Marketable securities:

International equity securities

fixed income fund

government debt securities

13 unchanged sentences

government-sponsored enterprises.

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

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

Due in one year or less

9 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Property and equipment – net

Other intangible assets – net

Assets held for sale

9 unchanged sentences

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

Property and equipment – net – The valuations were based on the cost approach.

The inputs include reproduction cost estimates adjusted for physical deterioration and functional obsolescence (see Note 21).

Other intangible assets – net – The impairment of customer relationships and tradename of our external overseas battery operations was measured using an income approach (see Note 21).

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.

6 unchanged sentences

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

April 27, 2025

July 27, 2025

October 27, 2024

April 28, 2024

July 28, 2024

Cash flow hedges:

11 unchanged sentences

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.

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

Active Hedging Relationships

8 unchanged sentences

Hedging Amount

April 27, 2025

July 27, 2025

Short-term borrowings

3 unchanged sentences

Long-term borrowings

April 28, 2024

July 28, 2024

Short-term borrowings

2 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Fair value hedges:

20 unchanged sentences

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

The aggregate fair value of all derivatives with credit-risk-related contingent features that were in a net liability position at 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.

The aggregate fair value of all derivatives with credit-risk-related contingent features that were in a net liability position at July 27, 2025, October 27, 2024, and July 28, 2024, was $ 465 , $ 562 , and $ 566 , respectively.

In accordance with the limits established in these agreements, we posted $ 122 , $ 245 , and $ 269 of cash collateral at July 27, 2025, October 27, 2024, and July 28, 2024, respectively.

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

April 27, 2025

July 27, 2025

October 27, 2024

April 28, 2024

July 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 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:

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

During the nine months ended July 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 July 27, 2025, options for 1.1 million shares were outstanding with a weighted-average exercise price of $ 317.80 per share.

During the nine months ended July 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) Disposition

(20) AcQUISITIONs AND Disposition

In 2025, we acquired businesses to advance the capabilities of our existing technology offerings, providing customers with a more comprehensive set of tools to generate and use data to make decisions that improve profitability, efficiency, and sustainability.

The combined cost of these acquisitions was $ 89 , net of cash acquired.

The businesses were assigned to the PPA and CF segments.

Most of the purchase price for these acquisitions was allocated to goodwill and intangible assets.

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

25 unchanged sentences

(21) Special ItemS

In the third quarter of 2025, we recorded a non-cash charge of $ 61 pretax ($ 49 after-tax), primarily related to the trade name and customer relationship assets of our external overseas battery operations.

Of this amount, $ 53 was recorded in “Selling, administrative and general expenses” and $ 8 in “Cost of sales.” The impairment resulted from slowing external demand for batteries, which indicated that it is probable future cash flows would not cover the carrying value of the assets (see Note 17).

Discrete Tax Items

4 unchanged sentences

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 .

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.

For the limited voluntary employee-separation programs, the expense was recorded in the period in which the employee irrevocably accepted a separation offer.

The programs’ total pretax expenses recorded in the third quarter of 2024 were $ 124 .

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, 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 presented in “Impairments and other adjustments” in the statements of consolidated cash flows.

The net impact of these entries was a pretax and after-tax loss of $ 15 recorded in “ Selling, administrative and general expenses .”

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.

Summary of 2025 and 2024 Special Items

The following table summarizes the operating profit impact of the special items recorded for the three months and nine months ended July 27, 2025 and July 28, 2024.

Three Months Ended

Nine Months Ended

2025 Expense (benefit):

BJD measurement

Total expense (benefit)

2024 Expense:

Employee-separation programs

BJD measurement

Total expense

Period over period change

(22) Subsequent Event

On August 27, 2025 , a quarterly dividend of $ 1.62 per share was declared at the Board of Directors meeting, payable on November 10, 2025 , to stockholders of record on September 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