DEERE & CO 10-Q

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS All amounts are presented in millions of dollars unless otherwise specified. Overview Organization Deere & Company is a global leader in the production of agricultural, turf, construction, and forestry equipment and solutions. John Deere Financial provides financing for John Deere equipment, parts, services, and other input costs customers need to run their operations. Our operations are managed through the production and precision agriculture (PPA), small agriculture and turf (SAT), construction and forestry (CF), and financial services operating segments. References to “equipment operations” include PPA, SAT, and CF, while references to “agriculture and turf” include both PPA and SAT. Trends and Economic Conditions Industry Sales Outlook for Fiscal Year 2025 Agriculture and Turf Construction and Forestry Company Trends Customers seek to improve profitability, productivity, and sustainability through integrating technology into their operations. Deeper integration of technology into equipment is a persistent market trend. These technologies are incorporated into products within each of our operating segments. We expect this trend to persist for the foreseeable future. Our Smart Industrial Operating Model and Leap Ambitions are intended to capitalize on this market trend. Engaged acres are an indicator we use to understand customer utilization of our technology. 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 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 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. and Canada. 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, record crop yields, improved corn and soybean profitability, and continued expansion of crop production acreage are expected to have a positive impact 30 ​ on sales. 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 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 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. 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 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 ​ ​ ​ ​ ​ ​ ​ ​ Net Income ​ Up ​ + Prior and current period special items ​ Favorable ​ + Selling, administrative and general expenses ​ Favorable ​ (–) Financing spreads ​ Unfavorable ​ Additional Trends Agricultural Market Business Cycle. The agricultural market is affected by various factors including commodity prices, acreage planted, crop yields, government policies, and uncertainty in macroeconomic trends. These factors affect farmers’ income and sentiment which may result in lower demand for equipment. In 2025, we expect to continue experiencing the following effects due to unfavorable market conditions: lower sales volumes, higher sales incentives, and elevated receivable write-offs and expected credit losses. Global Trade Policies. 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. 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. 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 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. 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. 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. At this stage, we are unable to estimate the potential impact on our business. 31 ​ 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 and trade policies, and positions on government subsidies of farming ● capital market disruptions ● foreign currency and capital control policies ● right to repair regulations and legislation ● weather conditions ● marketplace adoption and monetization of technologies we have invested in ● our ability to strengthen our digital capabilities, automation, autonomy, and alternative power technologies ● changes in demand and pricing for new and used equipment ● delays or disruptions in our supply chain ● significant fluctuations in foreign currency exchange rates ● volatility in the prices of many commodities ● slower economic growth Consolidated Results – 2025 Compared with 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ Deere & Company ​ July 27 ​ July 28 ​ % ​ July 27 ​ July 28 ​ % ​ (In millions of dollars, except per share amounts) ​ 2025 ​ 2024 ​ Change ​ 2025 ​ 2024 ​ Change ​ Net sales and revenues ​ $ 12,018 ​ $ 13,152 ​ -9 ​ $ 33,290 ​ $ 40,572 ​ -18 ​ Net income attributable to Deere & Company ​ ​ 1,289 ​ ​ 1,734 ​ -26 ​ ​ 3,962 ​ ​ 5,855 ​ -32 ​ Diluted earnings per share ​ ​ 4.75 ​ ​ 6.29 ​ ​ ​ ​ 14.57 ​ ​ 21.04 ​ ​ ​ ​ 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 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 statements of consolidated income changes follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ July 27 ​ July 28 ​ % ​ July 27 ​ July 28 ​ % ​ Deere & Company ​ 2025 ​ 2024 ​ Change ​ 2025 ​ 2024 ​ Change ​ Cost of sales to net sales ​ ​ 73.1% ​ ​ 68.9% ​ ​ ​ ​ 71.3% ​ ​ 68.2% ​ ​ ​ (–) Tariffs ​ ​ ​ ​ ​ Unfavorable ​ ​ ​ ​ ​ Unfavorable ​ (–) Lower volumes ​ ​ ​ ​ ​ Unfavorable ​ ​ ​ ​ ​ Unfavorable ​ + Material costs ​ ​ ​ ​ ​ Favorable ​ ​ ​ ​ ​ Favorable ​ 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income ​ $ 235 ​ $ 304 ​ -23 ​ $ 719 ​ $ 881 ​ -18 ​ 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 ​ ​ 556 ​ ​ 567 ​ -2 ​ ​ 1,631 ​ ​ 1,664 ​ -2 ​ Largely unchanged due to continued focus on developing and incorporating technology solutions. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling, administrative and general expenses ​ ​ 1,217 ​ ​ 1,278 ​ -5 ​ ​ 3,387 ​ ​ 3,608 ​ -6 ​ 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 ​ ​ 794 ​ ​ 840 ​ -5 ​ ​ 2,408 ​ ​ 2,478 ​ -3 ​ Decreased for both periods primarily due to lower average borrowings and lower average borrowing rates. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other operating expenses ​ ​ 281 ​ ​ 264 ​ +6 ​ ​ 817 ​ ​ 930 ​ -12 ​ 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 ​ ​ 339 ​ ​ 625 ​ -46 ​ ​ 905 ​ ​ 1,845 ​ -51 ​ Decreased for both periods as a result of lower pretax income. Additionally, the nine months ended was impacted by the favorable impact of discrete tax adjustments (see Note 21). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 32 ​ Business Segment Results – 2025 Compared with 2024 The equipment operations segment results were impacted by incremental tariffs in 2025. The cost of additional tariffs was included in the “Production costs” and “Other” categories below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ July 27 ​ July 28 ​ % ​ July 27 ​ July 28 ​ % ​ Production and Precision Agriculture ​ 2025 ​ 2024 ​ Change ​ 2025 ​ 2024 ​ Change ​ Net sales ​ $ 4,273 ​ $ 5,099 ​ -16 ​ $ 12,571 ​ $ 16,529 ​ -24 ​ Operating profit ​ ​ 580 ​ ​ 1,162 ​ -50 ​ ​ 2,066 ​ ​ 3,857 ​ -46 ​ Operating margin ​ ​ 13.6% ​ ​ 22.8% ​ ​ ​ ​ 16.4% ​ ​ 23.3% ​ ​ ​ Price realization ​ ​ ​ ​ ​ ​ ​ -1 ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency translation impact on Net sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ -1 ​ ​ Production and precision agriculture sales decreased for the quarter as a result of lower U.S. 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 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 Nine Months 2025 Compared to First Nine Months 2024 33 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ July 27 ​ July 28 ​ % ​ July 27 ​ July 28 ​ % ​ Small Agriculture and Turf ​ 2025 ​ 2024 ​ Change ​ 2025 ​ 2024 ​ Change ​ Net sales ​ $ 3,025 ​ $ 3,053 ​ -1 ​ $ 7,767 ​ $ 8,663 ​ -10 ​ Operating profit ​ ​ 485 ​ ​ 496 ​ -2 ​ ​ 1,182 ​ ​ 1,393 ​ -15 ​ Operating margin ​ ​ 16.0% ​ ​ 16.2% ​ ​ ​ ​ 15.2% ​ ​ 16.1% ​ ​ ​ Price realization ​ ​ ​ ​ ​ ​ ​ +1 ​ ​ ​ ​ ​ ​ ​ +1 ​ Currency translation impact on Net sales ​ ​ ​ ​ ​ ​ ​ +1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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. and Canada. 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 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 Nine Months 2025 Compared to First Nine Months 2024 34 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ July 27 ​ July 28 ​ % ​ July 27 ​ July 28 ​ % ​ Construction and Forestry ​ 2025 ​ 2024 ​ Change ​ 2025 ​ 2024 ​ Change ​ Net sales ​ $ 3,059 ​ $ 3,235 ​ -5 ​ $ 8,000 ​ $ 10,292 ​ -22 ​ Operating profit ​ ​ 237 ​ ​ 448 ​ -47 ​ ​ 681 ​ ​ 1,682 ​ -60 ​ Operating margin ​ ​ 7.7% ​ ​ 13.8% ​ ​ ​ ​ 8.5% ​ ​ 16.3% ​ ​ ​ Price realization ​ ​ ​ ​ ​ ​ ​ -5 ​ ​ ​ ​ ​ ​ ​ -2 ​ Currency translation impact on Net sales ​ ​ ​ ​ ​ ​ ​ +1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 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 Nine Months 2025 Compared to First Nine Months 2024 35 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ July 27 ​ July 28 ​ % ​ July 27 ​ July 28 ​ % ​ Financial Services ​ 2025 ​ 2024 ​ Change ​ 2025 ​ 2024 ​ Change ​ Revenue (including intercompany) ​ $ 1,544 ​ $ 1,667 ​ -7 ​ $ 4,618 ​ $ 4,807 ​ -4 ​ Interest expense ​ ​ 720 ​ ​ 812 ​ -11 ​ ​ 2,206 ​ ​ 2,354 ​ -6 ​ Net income ​ ​ 205 ​ ​ 153 ​ +34 ​ ​ 597 ​ ​ 523 ​ +14 ​ ​ 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 See our critical accounting estimates discussed in the Management’s Discussion and Analysis of the most recently filed Annual Report on Form 10-K. There have been no material changes to these policies. Capital Resources and Liquidity – 2025 Compared with 2024 We have access to global markets at a reasonable cost. Sources of liquidity include: ● cash, cash equivalents, and marketable securities on hand ● funds from operations ● the issuance of commercial paper and term debt ● the securitization of retail notes ● bank lines of credit We closely monitor our cash requirements. 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. We operate in multiple industries, which have unique funding requirements. The equipment operations are capital intensive. 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 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 of any of the periods presented. Key metrics are provided in the following table: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ July 27 ​ October 27 ​ July 28 ​ ​ ​ 2025 ​ 2024 ​ 2024 ​ Cash, cash equivalents, and marketable securities ​ $ 9,987 ​ $ 8,478 ​ $ 8,144 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Trade accounts and notes receivable – net ​ ​ 6,103 ​ ​ 5,326 ​ ​ 7,469 ​ Ratio to prior 12 month’s net sales ​ ​ 16% ​ ​ 12% ​ ​ 15% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inventories ​ ​ 7,713 ​ ​ 7,093 ​ ​ 7,696 ​ Ratio to prior 12 month’s cost of sales ​ ​ 29% ​ ​ 23% ​ ​ 23% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unused credit lines ​ ​ 6,150 ​ ​ 6,474 ​ ​ 4,917 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial Services: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ratio of interest-bearing debt to stockholder’s equity ​ ​ 8.6 to 1 ​ ​ 8.1 to 1 ​ ​ 8.5 to 1 ​ ​ 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. 36 ​ 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. Cash Flows ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ ​ July 27, 2025 ​ July 28, 2024 ​ Net cash provided by operating activities ​ $ 3,464 ​ $ 4,139 ​ Net cash used for investing activities ​ ​ (801) ​ ​ (3,671) ​ Net cash used for financing activities ​ ​ (1,557) ​ ​ (789) ​ Effect of exchange rate changes on cash, cash equivalents, and restricted cash ​ ​ 108 ​ ​ (6) ​ Net increase (decrease) in cash, cash equivalents, and restricted cash ​ $ 1,214 ​ $ (327) ​ ​ 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 Trade Accounts and Notes Receivable. Trade accounts and notes receivable arise from sales of goods to customers. 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 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 $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. 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 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 $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. Borrowings. 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. financial services subsidiary, has a revolving warehouse facility to utilize bank conduit facilities to securitize retail notes (see Note 9). The facility has an expiration in November 2025 and total capacity or “financing limit” of $2,500. 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. 37 ​ 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 $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 ● 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 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. These credit agreements require Capital Corporation and other parts of our business to maintain certain performance metrics and liquidity targets. All requirements in the credit agreements have been met during the periods included in the financial statements. Debt Ratings. To access public debt capital markets, we rely on credit rating agencies to assign short-term and long-term credit ratings to our debt securities as an indicator of credit quality for fixed income investors. A security rating is not a recommendation by the rating agency to buy, sell, or hold our securities. A credit rating agency may change or withdraw ratings based on its assessment of our current and future ability to meet interest and principal repayment obligations. Each agency’s rating should be evaluated independently of any other rating. Lower credit ratings generally result in higher borrowing costs, including costs of derivative transactions, reduced access to debt capital markets, and may adversely impact our liquidity. The senior long-term and short-term debt ratings and outlook currently assigned to unsecured company securities by the rating agencies engaged by us are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Senior ​ ​ ​ ​ Long-Term ​ Short-Term ​ Outlook Fitch Ratings ​ A+ ​ F1 ​ Stable ​ Moody’s Investors Service, Inc. A1 Prime-1 Stable ​ Standard & Poor’s A A-1 Stable ​ ​ FORWARD-LOOKING STATEMENTS 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. Forward-looking statements are based on currently available information and current assumptions, expectations, and projections about future events and should not be relied upon. Except as required by law, we expressly disclaim any obligation to update or revise our forward-looking statements. Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-looking statements. Among these factors are risks related to: ● government policies and actions with respect to the global trade environment including increased and proposed tariffs announced by the U.S. 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; ● higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for our products and solutions; ● our ability to adapt in highly competitive markets, including understanding and meeting customers’ changing expectations for products and solutions, including delivery and utilization of precision technology; ● housing starts and supply, real estate and housing prices, levels of public and non-residential construction, and infrastructure investment; 38 ​ ● 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; ● 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; ● 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; ● rationalization, restructuring, relocation, expansion, and/or reconfiguration of manufacturing and warehouse facilities; ● the ability to execute business strategies, including our Smart Industrial Operating Model and Leap Ambitions; ● accurately forecasting customer demand for products and services, and adequately managing inventory; ● 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; ● negative claims or publicity that damage our reputation or brand; ● the ability to attract, develop, engage, and retain qualified employees; ● the impact of workforce reductions on company culture, employee retention and morale, and institutional knowledge; ● labor relations and contracts, including work stoppages and other disruptions; ● security breaches, cybersecurity attacks, technology failures, and other disruptions to our information technology infrastructure and products; ● leveraging artificial intelligence and machine learning within our business processes; ● changes to governmental communications channels (radio frequency technology); ● 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, tax, telematics, and telecommunications; ● governmental and other actions designed to address climate change in connection with a transition to a lower-carbon economy; and ● 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. “Risk Factors” of our most recent Annual Report on Form 10-K and this Quarterly Report on Form 10-Q). There also may be other factors that we cannot anticipate or that are not described herein because we do not currently perceive them to be material. 39 ​ SUPPLEMENTAL CONSOLIDATING DATA The supplemental consolidating data presented on the subsequent pages is presented for informational purposes. Equipment operations represent the enterprise without financial services. Equipment operations include production and precision agriculture operations, small agriculture and turf operations, construction and forestry operations, and other corporate assets, liabilities, revenues, and expenses not reflected within financial services. Transactions between the equipment operations and financial services have been eliminated to arrive at the consolidated financial statements. Equipment operations and financial services participate in different industries. Equipment operations primarily generate earnings and cash flows by manufacturing and selling equipment, service parts, and technology solutions to dealers and retail customers. Financial services finance sales and leases by dealers of new and used equipment that is largely manufactured by equipment operations. Those earnings and cash flows generally are the difference between the finance income received from customer payments less interest expense, and depreciation on equipment subject to an operating lease. The two businesses are capitalized differently and have separate performance metrics. The supplemental consolidating data is also used by management due to these differences. ​ 40 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DEERE & COMPANY ​ ​ SUPPLEMENTAL CONSOLIDATING DATA ​ ​ STATEMENTS OF INCOME ​ ​ For the Three Months Ended July 27, 2025 and July 28, 2024 ​ ​ Unaudited ​ ​ ​ ​ EQUIPMENT ​ FINANCIAL ​ ​ ​ ​ ​ ​ ​ ​ OPERATIONS ​ SERVICES ​ ELIMINATIONS ​ CONSOLIDATED ​ ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ Net Sales and Revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales ​ $ 10,357 ​ $ 11,387 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 10,357 ​ $ 11,387 ​ ​ Finance and interest income ​ ​ 133 ​ 155 ​ $ 1,433 ​ $ 1,537 ​ $ (140) ​ $ (231) ​ ​ 1,426 ​ ​ 1,461 1 ​ ​ Other income ​ ​ 190 ​ 246 ​ ​ 111 ​ 130 ​ ​ (66) ​ (72) ​ ​ 235 ​ 304 2, 3, 4 ​ ​ Total ​ ​ 10,680 ​ 11,788 ​ ​ 1,544 ​ 1,667 ​ ​ (206) ​ (303) ​ ​ 12,018 ​ 13,152 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Costs and Expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cost of sales ​ ​ 7,578 ​ 7,855 ​ ​ ​ ​ ​ ​ ​ ​ (8) ​ (7) ​ ​ 7,570 ​ ​ 7,848 4 ​ ​ Research and development expenses ​ ​ 556 ​ 567 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 556 ​ ​ 567 ​ ​ Selling, administrative and general expenses ​ ​ 999 ​ 962 ​ ​ 220 ​ 318 ​ ​ (2) ​ (2) ​ ​ 1,217 ​ 1,278 4 ​ ​ Interest expense ​ ​ 102 ​ 91 ​ ​ 720 ​ 812 ​ ​ (28) ​ (63) ​ ​ 794 ​ 840 1 ​ ​ Interest compensation to Financial Services ​ ​ 112 ​ 168 ​ ​ ​ ​ ​ ​ ​ ​ (112) ​ (168) ​ ​ ​ ​ ​ ​ 1 ​ ​ Other operating expenses ​ ​ (8) ​ (16) ​ ​ 345 ​ 343 ​ ​ (56) ​ (63) ​ ​ 281 ​ 264 3, 4, 5 ​ ​ Total ​ ​ 9,339 ​ 9,627 ​ ​ 1,285 ​ 1,473 ​ ​ (206) ​ (303) ​ ​ 10,418 ​ 10,797 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before Income Taxes ​ ​ 1,341 ​ 2,161 ​ ​ 259 ​ 194 ​ ​ ​ ​ ​ ​ ​ 1,600 ​ 2,355 ​ ​ Provision for income taxes ​ ​ 274 ​ 583 ​ ​ 65 ​ 42 ​ ​ ​ ​ ​ ​ ​ 339 ​ 625 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income after Income Taxes ​ ​ 1,067 ​ 1,578 ​ ​ 194 ​ 152 ​ ​ ​ ​ ​ ​ ​ 1,261 ​ 1,730 ​ ​ Equity in income (loss) of unconsolidated affiliates ​ ​ (1) ​ ​ ​ ​ 11 ​ 1 ​ ​ ​ ​ ​ ​ ​ ​ 10 ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Income ​ ​ 1,066 ​ 1,578 ​ ​ 205 ​ 153 ​ ​ ​ ​ ​ ​ ​ 1,271 ​ 1,731 ​ ​ Less: Net loss attributable to noncontrolling interests ​ ​ (18) ​ (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (18) ​ ​ (3) ​ ​ Net Income Attributable to Deere & Company ​ $ 1,084 ​ $ 1,581 ​ $ 205 ​ $ 153 ​ ​ ​ ​ ​ ​ ​ $ 1,289 ​ $ 1,734 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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. ​ ​ 41 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DEERE & COMPANY ​ ​ SUPPLEMENTAL CONSOLIDATING DATA (Continued) ​ ​ STATEMENTS OF INCOME ​ ​ For the Nine Months Ended July 27, 2025 and July 28, 2024 ​ ​ Unaudited ​ ​ ​ ​ EQUIPMENT ​ FINANCIAL ​ ​ ​ ​ ​ ​ ​ ​ OPERATIONS ​ SERVICES ​ ELIMINATIONS ​ CONSOLIDATED ​ ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ Net Sales and Revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales ​ $ 28,338 ​ $ 35,484 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 28,338 ​ $ 35,484 ​ ​ Finance and interest income ​ ​ 351 ​ 441 ​ $ 4,268 ​ $ 4,466 ​ $ (386) ​ $ (700) ​ ​ 4,233 ​ ​ 4,207 1 ​ ​ Other income ​ ​ 580 ​ 732 ​ ​ 350 ​ 341 ​ ​ (211) ​ (192) ​ ​ 719 ​ 881 2, 3, 4 ​ ​ Total ​ ​ 29,269 ​ 36,657 ​ ​ 4,618 ​ 4,807 ​ ​ (597) ​ (892) ​ ​ 33,290 ​ 40,572 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Costs and Expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cost of sales ​ ​ 20,239 ​ 24,226 ​ ​ ​ ​ ​ ​ ​ ​ (24) ​ (21) ​ ​ 20,215 ​ ​ 24,205 4 ​ ​ Research and development expenses ​ ​ 1,631 ​ 1,664 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,631 ​ ​ 1,664 ​ ​ Selling, administrative and general expenses ​ ​ 2,761 ​ 2,844 ​ ​ 632 ​ 771 ​ ​ (6) ​ (7) ​ ​ 3,387 ​ 3,608 4 ​ ​ Interest expense ​ ​ 282 ​ 314 ​ ​ 2,206 ​ 2,354 ​ ​ (80) ​ (190) ​ ​ 2,408 ​ 2,478 1 ​ ​ Interest compensation to Financial Services ​ ​ 306 ​ 510 ​ ​ ​ ​ ​ ​ ​ ​ (306) ​ (510) ​ ​ ​ ​ ​ ​ 1 ​ ​ Other operating expenses ​ ​ (47) ​ 76 ​ ​ 1,045 ​ 1,018 ​ ​ (181) ​ (164) ​ ​ 817 ​ 930 3, 4, 5 ​ ​ Total ​ ​ 25,172 ​ 29,634 ​ ​ 3,883 ​ 4,143 ​ ​ (597) ​ (892) ​ ​ 28,458 ​ 32,885 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before Income Taxes ​ ​ 4,097 ​ 7,023 ​ ​ 735 ​ 664 ​ ​ ​ ​ ​ ​ ​ 4,832 ​ 7,687 ​ ​ Provision for income taxes ​ ​ 752 ​ 1,700 ​ ​ 153 ​ 145 ​ ​ ​ ​ ​ ​ ​ 905 ​ 1,845 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income after Income Taxes ​ ​ 3,345 ​ 5,323 ​ ​ 582 ​ 519 ​ ​ ​ ​ ​ ​ ​ 3,927 ​ 5,842 ​ ​ Equity in income (loss) of unconsolidated affiliates ​ ​ (4) ​ ​ ​ ​ 15 ​ 4 ​ ​ ​ ​ ​ ​ ​ ​ 11 ​ ​ 4 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Income ​ ​ 3,341 ​ 5,323 ​ ​ 597 ​ 523 ​ ​ ​ ​ ​ ​ ​ 3,938 ​ 5,846 ​ ​ Less: Net loss attributable to noncontrolling interests ​ ​ (24) ​ (9) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (24) ​ ​ (9) ​ ​ Net Income Attributable to Deere & Company ​ $ 3,365 ​ $ 5,332 ​ $ 597 ​ $ 523 ​ ​ ​ ​ ​ ​ ​ $ 3,962 ​ $ 5,855 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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. ​ ​ 42 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DEERE & COMPANY ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL CONSOLIDATING DATA (Continued) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED BALANCE SHEETS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unaudited ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ EQUIPMENT ​ FINANCIAL ​ ​ ​ ​ ​ ​ ​ ​ OPERATIONS ​ SERVICES ​ ELIMINATIONS ​ CONSOLIDATED ​ ​ ​ ​ July 27 ​ Oct 27 ​ July 28 ​ July 27 ​ Oct 27 ​ July 28 ​ July 27 ​ Oct 27 ​ July 28 ​ July 27 ​ Oct 27 ​ July 28 ​ ​ ​ ​ 2025 ​ 2024 ​ 2024 ​ 2025 ​ 2024 ​ 2024 ​ 2025 ​ 2024 ​ 2024 ​ 2025 ​ 2024 ​ 2024 ​ ​ Assets ​ ​ Cash and cash equivalents ​ $ 6,641 ​ $ 5,615 ​ $ 5,385 ​ $ 1,939 ​ $ 1,709 ​ $ 1,619 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 8,580 ​ $ 7,324 ​ $ 7,004 ​ ​ Marketable securities ​ ​ 240 ​ 125 ​ 155 ​ ​ 1,167 ​ 1,029 ​ 985 ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,407 ​ 1,154 ​ 1,140 ​ ​ Receivables from Financial Services ​ ​ 3,649 ​ 3,043 ​ 3,951 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ (3,649) ​ $ (3,043) ​ $ (3,951) ​ ​ ​ ​ ​ ​ ​ ​ ​ 6 ​ ​ Trade accounts and notes receivable – net ​ ​ 1,335 ​ 1,257 ​ 1,150 ​ ​ 7,064 ​ 6,225 ​ 8,890 ​ ​ (2,296) ​ (2,156) ​ (2,571) ​ ​ 6,103 ​ 5,326 ​ 7,469 7 ​ ​ Financing receivables – net ​ ​ 84 ​ 78 ​ 82 ​ ​ 43,846 ​ 44,231 ​ 43,814 ​ ​ ​ ​ ​ ​ ​ ​ ​ 43,930 ​ 44,309 ​ 43,896 ​ ​ Financing receivables securitized – net ​ ​ 1 ​ ​ 2 ​ ​ 2 ​ ​ 7,947 ​ 8,721 ​ 8,272 ​ ​ ​ ​ ​ ​ ​ ​ ​ 7,948 ​ 8,723 ​ 8,274 ​ ​ Other receivables ​ ​ 2,013 ​ 2,193 ​ 1,821 ​ ​ 867 ​ 427 ​ 494 ​ ​ (54) ​ (75) ​ (45) ​ ​ 2,826 ​ 2,545 ​ 2,270 7 ​ ​ Equipment on operating leases – net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 7,512 ​ 7,451 ​ 7,118 ​ ​ ​ ​ ​ ​ ​ ​ ​ 7,512 ​ 7,451 ​ 7,118 ​ ​ Inventories ​ ​ 7,713 ​ 7,093 ​ 7,696 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 7,713 ​ ​ 7,093 ​ ​ 7,696 ​ ​ Property and equipment – net ​ ​ 7,680 ​ 7,546 ​ 7,058 ​ ​ 33 ​ 34 ​ 34 ​ ​ ​ ​ ​ ​ ​ ​ ​ 7,713 ​ 7,580 ​ 7,092 ​ ​ Goodwill ​ ​ 4,209 ​ 3,959 ​ 3,960 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 4,209 ​ ​ 3,959 ​ ​ 3,960 ​ ​ Other intangible assets – net ​ ​ 926 ​ 999 ​ 1,030 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 926 ​ 999 ​ 1,030 ​ ​ Retirement benefits ​ ​ 3,092 ​ 2,839 ​ 3,047 ​ ​ 92 ​ 83 ​ 80 ​ ​ (2) ​ (1) ​ (1) ​ ​ 3,182 ​ 2,921 ​ 3,126 8 ​ ​ Deferred income taxes ​ ​ 2,471 ​ 2,262 ​ 2,192 ​ ​ 44 ​ 43 ​ 35 ​ ​ (306) ​ (219) ​ (329) ​ ​ 2,209 ​ 2,086 ​ 1,898 9 ​ ​ Other assets ​ ​ 2,357 ​ 2,194 ​ 2,236 ​ ​ 1,211 ​ 715 ​ 675 ​ ​ (9) ​ (3) ​ (8) ​ ​ 3,559 ​ 2,906 ​ 2,903 ​ ​ Assets held for sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2,944 ​ ​ 2,965 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2,944 ​ ​ 2,965 ​ ​ Total Assets ​ $ 42,411 ​ $ 39,205 ​ $ 39,765 ​ $ 71,722 ​ $ 73,612 ​ $ 74,981 ​ $ (6,316) ​ $ (5,497) ​ $ (6,905) ​ $ 107,817 ​ $ 107,320 ​ $ 107,841 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders’ Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term borrowings ​ $ 461 ​ $ 911 ​ $ 983 ​ $ 14,146 ​ $ 12,622 ​ $ 14,311 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 14,607 ​ $ 13,533 ​ $ 15,294 ​ ​ Short-term securitization borrowings ​ ​ ​ ​ ​ 2 ​ ​ 1 ​ ​ 7,610 ​ 8,429 ​ 7,868 ​ ​ ​ ​ ​ ​ ​ ​ ​ 7,610 ​ 8,431 ​ 7,869 ​ ​ Payables to Equipment Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ 3,649 ​ 3,043 ​ 3,951 ​ $ (3,649) ​ $ (3,043) ​ $ (3,951) ​ ​ ​ ​ ​ ​ ​ 6 ​ ​ Accounts payable and accrued expenses ​ ​ 12,795 ​ 13,534 ​ 13,880 ​ ​ 3,146 ​ 3,243 ​ 3,141 ​ ​ (2,359) ​ (2,234) ​ (2,624) ​ ​ 13,582 ​ 14,543 ​ 14,397 7 ​ ​ Deferred income taxes ​ ​ 393 ​ 434 ​ 420 ​ ​ 402 ​ 263 ​ 390 ​ ​ (306) ​ (219) ​ (329) ​ ​ 489 ​ 478 ​ 481 9 ​ ​ Long-term borrowings ​ ​ 8,789 ​ 6,603 ​ 6,592 ​ ​ 35,640 ​ 36,626 ​ 36,100 ​ ​ ​ ​ ​ ​ ​ ​ ​ 44,429 ​ 43,229 ​ 42,692 ​ ​ Retirement benefits and other liabilities ​ ​ 1,767 ​ 2,250 ​ 2,048 ​ ​ 71 ​ 105 ​ 109 ​ ​ (2) ​ (1) ​ (1) ​ ​ 1,836 ​ 2,354 ​ 2,156 8 ​ ​ Liabilities held for sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,827 ​ ​ 1,803 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,827 ​ ​ 1,803 ​ ​ Total liabilities ​ ​ 24,205 ​ ​ 23,734 ​ ​ 23,924 ​ ​ 64,664 ​ ​ 66,158 ​ ​ 67,673 ​ ​ (6,316) ​ ​ (5,497) ​ ​ (6,905) ​ ​ 82,553 ​ ​ 84,395 ​ ​ 84,692 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commitments and contingencies (Note 16) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Redeemable noncontrolling interest ​ ​ 84 ​ ​ 82 ​ ​ 84 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 84 ​ ​ 82 ​ ​ 84 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders’ Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Deere & Company stockholders’ equity ​ ​ 25,175 ​ 22,836 ​ 23,062 ​ ​ 7,058 ​ ​ 7,454 ​ ​ 7,308 ​ ​ (7,058) ​ ​ (7,454) ​ ​ (7,308) ​ ​ 25,175 ​ ​ 22,836 ​ ​ 23,062 10 ​ ​ Noncontrolling interests ​ ​ 5 ​ 7 ​ 3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 5 ​ ​ 7 ​ ​ 3 ​ ​ Financial Services’ equity ​ ​ (7,058) ​ (7,454) ​ (7,308) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 7,058 ​ ​ 7,454 ​ ​ 7,308 ​ ​ ​ ​ ​ ​ ​ ​ ​ 10 ​ ​ Adjusted total stockholders’ equity ​ ​ 18,122 ​ 15,389 ​ 15,757 ​ ​ 7,058 ​ 7,454 ​ 7,308 ​ ​ ​ ​ ​ ​ ​ ​ ​ 25,180 ​ 22,843 ​ 23,065 ​ ​ Total Liabilities and Stockholders’ Equity ​ $ 42,411 ​ $ 39,205 ​ $ 39,765 ​ $ 71,722 ​ $ 73,612 ​ $ 74,981 ​ $ (6,316) ​ $ (5,497) ​ $ (6,905) ​ $ 107,817 ​ $ 107,320 ​ $ 107,841 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 6 Elimination of receivables / payables between equipment operations and financial services. 7 Primarily reclassification of sales incentive accruals on receivables sold to financial services. 8 Reclassification of net pension assets / liabilities. 9 Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions. 10 Elimination of financial services’ equity. ​ ​ 43 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DEERE & COMPANY ​ ​ SUPPLEMENTAL CONSOLIDATING DATA (Continued) ​ ​ STATEMENTS OF CASH FLOWS ​ ​ For the Nine Months Ended July 27, 2025 and July 28, 2024 ​ ​ Unaudited ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ EQUIPMENT ​ FINANCIAL ​ ​ ​ ​ ​ ​ ​ ​ OPERATIONS ​ SERVICES ​ ELIMINATIONS ​ CONSOLIDATED ​ ​ ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ ​ Cash Flows from Operating Activities ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 3,341 ​ $ 5,323 ​ $ 597 ​ $ 523 ​ ​ ​ ​ ​ ​ ​ $ 3,938 ​ $ 5,846 ​ ​ Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Provision for credit losses ​ 18 ​ 10 ​ 240 ​ 212 ​ ​ ​ ​ ​ 258 ​ 222 ​ ​ Provision for depreciation and amortization ​ 965 ​ 932 ​ 804 ​ 773 ​ $ (101) ​ $ (107) ​ 1,668 ​ 1,598 11 ​ ​ Impairments and other adjustments ​ ​ 61 ​ ​ ​ (32) ​ 53 ​ ​ ​ ​ ​ 29 ​ 53 ​ ​ Share-based compensation expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 104 ​ ​ 159 ​ ​ 104 ​ ​ 159 12 ​ ​ Distributed earnings of Financial Services ​ 1,066 ​ 250 ​ ​ ​ ​ ​ (1,066) ​ (250) ​ ​ ​ ​ 13 ​ ​ Provision (credit) for deferred income taxes ​ (242) ​ (49) ​ 140 ​ (76) ​ ​ ​ ​ ​ (102) ​ (125) ​ ​ Changes in assets and liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Receivables related to sales ​ (66) ​ 106 ​ ​ ​ ​ ​ ​ ​ ​ (428) ​ ​ (2,552) ​ ​ (494) ​ ​ (2,446) 14, 16 ​ ​ Inventories ​ (423) ​ 391 ​ ​ ​ ​ ​ ​ ​ ​ (103) ​ ​ (157) ​ ​ (526) ​ ​ 234 15 ​ ​ Accounts payable and accrued expenses ​ (646) ​ (924) ​ 69 ​ 212 ​ (140) ​ (303) ​ (717) ​ (1,015) 16 ​ ​ Accrued income taxes payable/receivable ​ (89) ​ 13 ​ (58) ​ 18 ​ ​ ​ ​ ​ (147) ​ 31 ​ ​ Retirement benefits ​ (770) ​ (241) ​ (43) ​ (5) ​ ​ ​ ​ ​ (813) ​ (246) ​ ​ Other ​ 123 ​ (109) ​ 182 ​ 44 ​ (39) ​ (107) ​ 266 ​ (172) 11, 12, 15 ​ ​ Net cash provided by operating activities ​ 3,338 ​ 5,702 ​ 1,899 ​ 1,754 ​ (1,773) ​ (3,317) ​ 3,464 ​ 4,139 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Investing Activities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Collections of receivables (excluding receivables related to sales) ​ ​ ​ ​ ​ ​ ​ 20,178 ​ 19,826 ​ (466) ​ (683) ​ 19,712 ​ 19,143 14 ​ ​ Proceeds from maturities and sales of marketable securities ​ 27 ​ 56 ​ 332 ​ 277 ​ ​ ​ ​ ​ 359 ​ 333 ​ ​ Proceeds from sales of equipment on operating leases ​ ​ ​ ​ ​ ​ ​ 1,408 ​ 1,451 ​ ​ ​ ​ ​ 1,408 ​ 1,451 ​ ​ Cost of receivables acquired (excluding receivables related to sales) ​ ​ ​ ​ ​ ​ ​ (19,189) ​ (21,395) ​ 227 ​ 282 ​ (18,962) ​ (21,113) 14 ​ ​ Acquisitions of businesses, net of cash acquired ​ ​ (89) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (89) ​ ​ ​ ​ Purchases of marketable securities ​ ​ (133) ​ (220) ​ (465) ​ (352) ​ ​ ​ ​ ​ (598) ​ (572) ​ ​ Purchases of property and equipment ​ (851) ​ (1,041) ​ (1) ​ (2) ​ ​ ​ ​ ​ (852) ​ (1,043) ​ ​ Cost of equipment on operating leases acquired ​ ​ ​ ​ ​ ​ ​ (2,148) ​ (2,377) ​ 139 ​ 212 ​ (2,009) ​ (2,165) 15 ​ ​ Decrease in investment in Financial Services ​ ​ ​ ​ ​ 11 ​ ​ ​ ​ ​ ​ ​ (11) ​ ​ ​ ​ 17 ​ ​ Increase in trade and wholesale receivables ​ ​ ​ ​ ​ ​ ​ (807) ​ (3,255) ​ 807 ​ 3,255 ​ ​ ​ ​ 14 ​ ​ Collections of receivables from unconsolidated affiliates ​ ​ 189 ​ ​ ​ ​ 145 ​ ​ ​ ​ ​ ​ ​ 334 ​ ​ ​ ​ Collateral on derivatives – net ​ ​ 4 ​ ​ ​ ​ ​ 123 ​ ​ 390 ​ ​ ​ ​ ​ ​ ​ ​ 127 ​ ​ 390 ​ ​ Other ​ (75) ​ (88) ​ (156) ​ (8) ​ ​ ​ 1 ​ (231) ​ (95) ​ ​ Net cash used for investing activities ​ (928) ​ (1,282) ​ (580) ​ (5,445) ​ 707 ​ 3,056 ​ (801) ​ (3,671) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Financing Activities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net proceeds (payments) in short-term borrowings (original maturities three months or less) ​ 294 ​ 81 ​ (2,354) ​ (1,073) ​ ​ ​ ​ ​ (2,060) ​ (992) ​ ​ Change in intercompany receivables/payables ​ (660) ​ 558 ​ 660 ​ (558) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proceeds from borrowings issued (original maturities greater than three months) ​ 2,188 ​ 115 ​ 8,519 ​ 15,397 ​ ​ ​ ​ ​ 10,707 ​ 15,512 ​ ​ Payments of borrowings (original maturities greater than three months) ​ (863) ​ (1,061) ​ (6,880) ​ (9,731) ​ ​ ​ ​ ​ (7,743) ​ (10,792) ​ ​ Repurchases of common stock ​ (1,136) ​ (3,227) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1,136) ​ ​ (3,227) ​ ​ Capital returned to Equipment Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (11) ​ ​ ​ ​ ​ 11 ​ ​ ​ ​ ​ ​ 17 ​ ​ Dividends paid ​ (1,282) ​ (1,202) ​ (1,066) ​ ​ (250) ​ 1,066 ​ ​ 250 ​ (1,282) ​ ​ (1,202) 13 ​ ​ Other ​ (25) ​ (37) ​ (18) ​ (51) ​ ​ ​ ​ ​ (43) ​ (88) ​ ​ Net cash provided by (used for) financing activities ​ (1,484) ​ (4,773) ​ (1,139) ​ 3,723 ​ 1,066 ​ 261 ​ (1,557) ​ (789) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash ​ 96 ​ 12 ​ 12 ​ (18) ​ ​ ​ ​ ​ 108 ​ (6) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash ​ 1,022 ​ (341) ​ 192 ​ 14 ​ ​ ​ ​ ​ 1,214 ​ (327) ​ ​ Cash, Cash Equivalents, and Restricted Cash at Beginning of Period ​ 5,643 ​ 5,755 ​ 1,990 ​ 1,865 ​ ​ ​ ​ ​ 7,633 ​ 7,620 ​ ​ Cash, Cash Equivalents, and Restricted Cash at End of Period ​ $ 6,665 ​ $ 5,414 ​ $ 2,182 ​ $ 1,879 ​ ​ ​ ​ ​ ​ ​ $ 8,847 ​ $ 7,293 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Components of Cash, Cash Equivalents, and Restricted Cash ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 6,641 ​ $ 5,385 ​ $ 1,939 ​ $ 1,619 ​ ​ ​ ​ ​ ​ ​ $ 8,580 ​ $ 7,004 ​ ​ Cash, cash equivalents, and restricted cash (Assets held for sale) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 108 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 108 ​ ​ Restricted cash (Other assets) ​ ​ 24 ​ ​ 29 ​ ​ 243 ​ ​ 152 ​ ​ ​ ​ ​ ​ ​ ​ 267 ​ ​ 181 ​ ​ Total Cash, Cash Equivalents, and Restricted Cash ​ $ 6,665 ​ $ 5,414 ​ $ 2,182 ​ $ 1,879 ​ ​ ​ ​ ​ ​ ​ $ 8,847 ​ $ 7,293 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 11 Elimination of depreciation on leases related to inventory transferred to equipment on operating leases. 12 Reclassification of share-based compensation expense. 13 Elimination of dividends from financial services to the equipment operations, which are included in the equipment operations’ operating activities. 14 Primarily reclassification of receivables related to the sale of equipment. 15 Reclassification of direct lease agreements with retail customers. 16 Reclassification of sales incentive accruals on receivables sold to financial services. 17 Elimination of change in investment from equipment operations to financial services . ​ ​ 44 ​ Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK See our most recently filed Annual Report on Form 10-K (Part II, Item 7A). There have been no material changes in this information.