What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-08-28 compared with 2025-05-29 · 123 added, 111 removed, 370 unchanged (39% of the section changed)

17 unchanged sentences

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

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

We remain focused on 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

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 and construction equipment sales volumes for fiscal 2025 are expected to be lower than the prior year due to reduced demand.

Agriculture and Turf Outlook for 2025

● 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.

and Canada is expected to decline due to high interest rates, elevated used inventory levels in late model-year machines, trade uncertainty, and the persistence of lower commodity prices.

Constrained global grain and oilseed stocks, stable customer balance sheets supported by strong farm land values, the impact of U.S.

government subsidies on farm incomes, and projected strong crop yields 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 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.

Solid profitability is anticipated to continue in the small agricultural sector 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 economic uncertainty and elevated interest rates.

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

Farm fundamentals are improving, supported by strong dairy margins, coupled with an improving interest rate environment.

● 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.

In Brazil, record crop yields, improved corn and soybean profitability, and continued expansion of crop production acreage are expected to have a positive impact

However, high interest rates and greater trade policy uncertainty with the U.S.

continue to temper demand for equipment.

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

Construction and Forestry Outlook for 2025

● Construction equipment industry sales are forecasted to be down in the U.S.

● Construction industry sales for earthmoving equipment are forecasted to be down and compact construction equipment sales are expected to be flat to down in the U.S.

and Canada from 2024 levels.

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.

The decline is due to trade uncertainty and higher interest rates.

Projections for single-family housing starts are slowing, while rental sales along with multi-family and commercial real estate markets continue to soften.

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

1 unchanged sentence

● 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.

● Global roadbuilding markets are forecasted to be generally flat, supported by growth in Europe and a slight recovery in China, offset by slightly lower demand in North America compared to 2024.

Financial Services Outlook for 2025

9 unchanged sentences

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.

During 2025, new tariffs were imposed in the U.S.

for imports from a broad range of countries and materials.

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

and barriers to trade.

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

2 unchanged sentences

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.

During 2025, incremental import tariffs have adversely affected the cost of our products and components and may continue to do so.

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.

The direct impact of incremental tariffs incurred by us in the first nine months of 2025 was approximately $300, excluding the impact of tariffs on our suppliers and market demand.

On August 18, 2025, the scope of steel and aluminum derivative duties was expanded to include additional Harmonized Tariff Schedule codes.

The updated tariff coverage is expected to further increase the cost of our products and components.

We are actively taking steps to mitigate, to the extent possible, potential impacts on our business.

Interest Rates.

While interest rates in the U.S.

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.

Interest rates in the U.S.

and Brazil have remained elevated in 2025.

Higher rates and volatility in 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.

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.

Tax Legislation – In July, the U.S.

government enacted new tax legislation as part of the One Big Beautiful Bill Act of 2025.

The legislation has multiple effective dates, beginning in 2025 and continuing through 2027.

It did not have a material impact on our financial statements and is not expected to affect the current fiscal year materially.

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.

4 unchanged sentences

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, the conflict between India and Pakistan, and the conflicts in the Middle East

● 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 and trade policies, and positions on government subsidies of farming

12 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Deere & Company

4 unchanged sentences

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).

Net income and diluted EPS decreased in the third quarter primarily due to lower sales volumes, higher tariffs, and unfavorable price realization.

Results for the first nine months were also affected by lower production costs, driven by reduced material costs, and favorable discrete tax items (see Note 21).

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

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

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

Three Months Ended

Six Months Ended

Nine Months Ended

Deere & Company

Cost of sales to net sales

(–) Overhead costs

(–) Lower volumes

+ Material costs

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.

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

Lower for both periods primarily due to a decrease in revenues from certain licenses and credit enhancement recoveries in the prior period.

Additionally, the first nine months were impacted by reduced investment income.

Research and development expenses

1 unchanged sentence

Selling, administrative and general expenses

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).

Decreased for both periods due to lower employee profit-sharing incentives and the favorable impact from Banco John Deere S.A.

(BJD) deconsolidation (see Note 21).

Additionally, the quarter had lower provision for credit losses.

Interest expense

1 unchanged sentence

Other operating expenses

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).

Increased for the three months ended due to higher depreciation of equipment on operating leases.

Decreased for the first nine months due to lower foreign currency exchange losses and higher pension benefits (see Note 6).

Provision for income taxes

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).

Additionally, the nine 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.

The cost of additional tariffs was included in the “Production costs” and “Other” categories below.

Three Months Ended

Six Months Ended

Nine Months Ended

Production and Precision Agriculture

4 unchanged sentences

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.

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

Increased shipment volumes in Brazil and Europe partially offset this decrease.

Price realization was unfavorable for the quarter due to incremental incentive programs deployed to address used inventory levels in North America.

Operating profit decreased primarily due to lower shipment volumes / sales mix.

Production & Precision Agriculture Operating Profit

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.

Third Quarter 2025 Compared to Third Quarter 2024

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

and Europe) driven by higher interest rates and used inventory levels.

Operating profit for the first nine months decreased due to lower shipment volumes / sales mix.

Production & Precision Agriculture Operating Profit

First Six Months 2025 Compared to First Six Months 2024

First Nine Months 2025 Compared to First Nine Months 2024

Three Months Ended

Six Months Ended

Nine Months Ended

Small Agriculture and Turf

3 unchanged sentences

Currency translation impact on Net sales

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

Operating profit decreased due to higher tariffs, partially offset by favorable factors including reductions in warranty expenses and lower production costs from lower material costs.

Small Agriculture & Turf Operating Profit

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.

Third Quarter 2025 Compared to Third Quarter 2024

Sales for the first nine months decreased as a result of lower shipment volumes (primarily in the U.S.) driven mainly by economic uncertainties and higher interest rates.

Operating profit for the first nine 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

First Nine Months 2025 Compared to First Nine Months 2024

Three Months Ended

Six Months Ended

Nine Months Ended

Construction and Forestry

3 unchanged sentences

Currency translation impact on Net sales

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 and forestry sales decreased for the quarter due to unfavorable price realization in the U.S.

due to incremental incentive programs deployed to address pressures from the competitive environment.

Operating profit decreased primarily due to unfavorable price realization and higher tariffs.

These factors were partially offset by favorable product mix.

Construction & Forestry Operating Profit

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.

Third Quarter 2025 Compared to Third Quarter 2024

Sales for the first nine months decreased due to lower shipment volumes (primarily in the U.S.) and unfavorable price realization in the U.S.

due to pressures from the competitive environment.

Operating profit decreased primarily due to lower shipment volumes / sales mix and unfavorable price realization.

Construction & Forestry Operating Profit

First Six Months 2025 Compared to First Six Months 2024

First Nine Months 2025 Compared to First Nine Months 2024

Three Months Ended

Six Months Ended

Nine Months Ended

Financial Services

1 unchanged sentence

Interest expense

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.

The average balance of receivables and leases financed was 6% lower in the third quarter of 2025 and 5% lower in the first nine months of 2025 compared with the same periods last year, primarily due to the deconsolidation of BJD.

Revenue decreased for both periods as a result of a lower average portfolio.

Financial services net income for the quarter was higher due to a lower provision for credit losses and prior year special items (see Note 21).

Net income for the nine month period was higher due to benefits from special items (see Note 21) and lower selling, administrative, and general expenses, partially offset by lower financing spreads and a higher provision for credit losses.

Critical Accounting Estimates

18 unchanged sentences

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.

they are not included within balances of any of the periods presented.

Key metrics are provided in the following table:

6 unchanged sentences

Ratio of interest-bearing debt to stockholder’s equity

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.

The decrease in unused credit lines during the first nine 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 an increase in bank lines of credit and a small decrease in commercial paper outstanding.

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.

Six Months Ended

April 27, 2025

April 28, 2024

Nine Months Ended

July 27, 2025

July 28, 2024

Net cash provided by operating activities

Net cash provided by (used for) investing activities

Net cash used for investing activities

Net cash used for financing activities

1 unchanged sentence

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.

Cash inflows from consolidated operating activities in the first nine months of 2025 were $3,464.

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

Cash outflows from investing activities were $801 in the first nine months of this year.

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

Cash outflows from financing activities were $1,557 in the first nine months of 2025, as cash returned to shareholders was partially offset by higher external borrowings.

Cash returned to shareholders was $2,418 in the first nine months of 2025.

Cash, cash equivalents, and restricted cash increased $1,214 during the first nine 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 increased $1,422 during the first six months of 2025, primarily due to a seasonal increase.

Trade receivables increased $777 during the first nine months of 2025, primarily due to a seasonal increase.

These receivables decreased $1,366 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.

The percentage of total worldwide trade receivables outstanding for periods exceeding 12 months was 3% at July 27, 2025, 6% at October 27, 2024, and 3% at July 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 $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.

Financing receivables and equipment on operating leases decreased $1,093 during the first nine months of 2025 and increased $102 in the past 12 months.

The decrease during the first nine months of 2025 was due to lower retail customer receivables.

Total acquisition volumes of financing receivables and equipment on operating leases were 15% lower in the first nine months of 2025, compared with the same period last year excluding BJD receivables, as volumes of wholesale notes, retail notes, financing leases, and operating leases were lower, while revolving charge accounts were slightly higher compared to the same period last year.

Inventories increased by $620 during the first nine months of 2025 primarily due to a seasonal increase, and increased by $17 compared to a year ago.

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

Property and Equipment.

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

Property and equipment cash expenditures in the first nine months of 2025 were $852 compared with $1,043 in the same period last year.

Capital expenditures in 2025 are estimated to be approximately $1,450.

Accounts Payable and Accrued Expenses.

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.”

Accounts payable and accrued expenses decreased by $961 in the first nine 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 $815 compared to a year ago due to a decrease in accrued expenses associated with employee benefits, warranty liabilities, and dealer sales discounts.

Total external borrowings increased by $1,453 in the first nine months of 2025 and increased $791 compared to a year ago, which contributed to higher cash and cash equivalents.

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

1 unchanged sentence

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 July 27, 2025, $1,783 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 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).”

In the first nine months of 2025, the financial services operations issued $2,618 and retired $3,441 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 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:

Worldwide lines of credit totaled $12.2 billion at July 27, 2025, consisting primarily of:

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

1 unchanged sentence

● 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.

At July 27, 2025, $6,150 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.

19 unchanged sentences

● 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;

government and retaliatory trade regulations;

● 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 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;

3 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, the conflict between India and Pakistan, 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 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;

8 unchanged sentences

● accurately forecasting customer demand for products and services, and adequately managing inventory;

● dealer practices and their ability to manage inventory and distribution of our products, and to provide support and service for precision technology solutions;

● dealer practices and their ability to manage new and used inventory, distribute our products, and to provide support and service for precision technology solutions;

● the ability to realize anticipated benefits of acquisitions and joint ventures, including challenges with successfully integrating operations and internal control processes;

7 unchanged sentences

● changes to existing laws and regulations, including the implementation of new, more stringent laws, as well as compliance with a variety of U.S., foreign, and international laws, regulations, and policies relating to, but not limited to the following:

advertising, anti-bribery and anti-corruption, anti-money laundering, antitrust, consumer finance, cybersecurity, data privacy, encryption, environmental (including climate change and engine emissions), farming, health and safety, foreign exchange controls and cash repatriation restrictions, foreign ownership and investment, human rights, import / export and trade, tariffs, labor and employment, product liability, telematics, and telecommunications;

● governmental and other actions designed to address climate change in connection with a transition to a lower-carbon economy;

● warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations as a result of the deficient operation of our products.

● warranty claims, post-sales repairs or recalls, product liability litigation, and regulatory investigations because of the deficient operation of our products.

Further information concerning us and our businesses, including factors that could materially affect our financial results, is included in our other filings with the SEC (including, but not limited to, the factors discussed in Item 1A.

15 unchanged sentences

STATEMENTS OF INCOME

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

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

Net Sales and Revenues

10 unchanged sentences

Income after Income Taxes

Equity in income of unconsolidated affiliates

Equity in income (loss) of unconsolidated affiliates

Net loss attributable to noncontrolling interests

8 unchanged sentences

STATEMENTS OF INCOME

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

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

Net Sales and Revenues

60 unchanged sentences

STATEMENTS OF 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

Cash Flows from Operating Activities

17 unchanged sentences

Cost of receivables acquired (excluding receivables related to sales)

Acquisitions of businesses, net of cash acquired

Purchases of marketable securities

5 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

13 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