- Quarterly results underscore sound execution in the face of
challenging market conditions.
- Global agricultural and turf demand further softens while the
construction industry remains stable.
- Full-year net income forecast updated to approximately
$7.0 billion.
MOLINE,
Ill., May 16, 2024 /PRNewswire/ -- Deere &
Company (NYSE: DE) reported net income of $2.370 billion for the second quarter ended
April 28, 2024, or $8.53 per share, compared with net income of
$2.860 billion, or $9.65 per share, for the quarter ended
April 30, 2023. For the first six
months of the year, net income attributable to Deere & Company
was $4.121 billion, or $14.74 per share, compared with $4.819 billion, or $16.18 per share, for the same period last
year.
Worldwide net sales and revenues decreased 12 percent, to
$15.235 billion, for the second
quarter of 2024 and decreased 9 percent, to $27.420 billion, for six months. Net sales were
$13.610 billion for the quarter and
$24.097 billion for six months,
compared with $16.079 billion and
$27.481 billion last year.
"John Deere's second-quarter results were noteworthy in light of
continued changes across the global agricultural sector," stated
John C. May, chairman and chief
executive officer. "Thanks to the dedication and hard work of our
team, we continue to demonstrate structurally higher performance
levels across business cycles and are benefitting from stability in
construction end markets amid declining agricultural and turf
demand."
Company Outlook & Summary
Net income attributable to Deere & Company for fiscal 2024
is forecasted to be approximately $7.0 billion.
"We are proactively managing our production and inventory levels
to adapt to demand changes and position the business for the
future," May explained. "Despite market conditions, we are
committed to our strategy and are actively investing in and
deploying innovative technologies, products, and solutions to
ensure our customers' success."
|
Deere &
Company
|
|
Second
Quarter
|
|
Year to Date
|
|
|
$ in millions,
except per share amounts
|
|
2024
|
|
2023
|
|
% Change
|
|
2024
|
|
2023
|
|
% Change
|
|
|
Net sales and
revenues
|
|
$
|
15,235
|
|
$
|
17,387
|
|
-12 %
|
|
$
|
27,420
|
|
$
|
30,038
|
|
-9 %
|
|
|
Net income
|
|
$
|
2,370
|
|
$
|
2,860
|
|
-17 %
|
|
$
|
4,121
|
|
$
|
4,819
|
|
-14 %
|
|
|
Fully diluted
EPS
|
|
$
|
8.53
|
|
$
|
9.65
|
|
|
|
$
|
14.74
|
|
$
|
16.18
|
|
|
|
Prior period results were affected by a special item. See Note 1
of the financial statements for further details.
|
Production &
Precision Agriculture
|
|
Second
Quarter
|
|
|
$ in
millions
|
|
2024
|
|
2023
|
|
% Change
|
|
|
Net sales
|
|
$
|
6,581
|
|
$
|
7,822
|
|
-16 %
|
|
|
Operating
profit
|
|
$
|
1,650
|
|
$
|
2,170
|
|
-24 %
|
|
|
Operating
margin
|
|
|
25.1 %
|
|
|
27.7 %
|
|
|
|
Production and precision agriculture sales decreased for the
quarter as a result of lower shipment volumes, partially offset by
price realization. Operating profit decreased due to lower shipment
volumes and higher production costs, partially offset by price
realization.
|
Small Agriculture
& Turf
|
|
Second
Quarter
|
|
|
$ in
millions
|
|
2024
|
|
2023
|
|
% Change
|
|
|
Net sales
|
|
$
|
3,185
|
|
$
|
4,145
|
|
-23 %
|
|
|
Operating
profit
|
|
$
|
571
|
|
$
|
849
|
|
-33 %
|
|
|
Operating
margin
|
|
|
17.9 %
|
|
|
20.5 %
|
|
|
|
Small agriculture and turf sales decreased for the quarter as a
result of lower shipment volumes, partially offset by price
realization. Operating profit decreased due to lower shipment
volumes, partially offset by price realization.
|
Construction &
Forestry
|
|
Second
Quarter
|
|
|
$ in
millions
|
|
2024
|
|
2023
|
|
% Change
|
|
|
Net sales
|
|
$
|
3,844
|
|
$
|
4,112
|
|
-7 %
|
|
|
Operating
profit
|
|
$
|
668
|
|
$
|
838
|
|
-20 %
|
|
|
Operating
margin
|
|
|
17.4 %
|
|
|
20.4 %
|
|
|
|
Construction and forestry sales decreased for the quarter due to
lower shipment volumes. Operating profit decreased due to lower
shipment volumes and higher SA&G and R&D expenses.
|
Financial
Services
|
|
Second
Quarter
|
|
|
$ in
millions
|
|
2024
|
|
2023
|
|
% Change
|
|
|
Net income
|
|
$
|
162
|
|
$
|
28
|
|
479 %
|
|
Financial services net income for the quarter increased due to
income earned on higher average portfolio balances, partially
offset by a higher provision for credit losses and less-favorable
financing spreads. The results of the prior period were also
affected by a correction of the accounting treatment for financing
incentives offered to John Deere dealers. The cumulative effect of
this correction, $173 million pretax
($135 million after-tax), was
recorded in the second quarter of 2023.
|
Industry Outlook for
Fiscal 2024
|
|
|
|
|
|
|
|
|
Agriculture &
Turf
|
|
|
|
|
|
|
|
|
U.S. &
Canada:
|
|
|
|
|
|
|
|
|
Large Ag
|
|
|
|
|
|
Down ~ 15%
|
|
|
Small Ag &
Turf
|
|
|
|
|
|
Down ~ 10%
|
|
|
Europe
|
|
|
|
|
|
Down ~ 15%
|
|
|
South America (Tractors
& Combines)
|
|
|
|
|
|
Down 15 to
20%
|
|
|
Asia
|
|
|
|
|
|
Down
moderately
|
|
|
|
|
|
|
|
|
|
|
Construction &
Forestry
|
|
|
|
|
|
|
|
|
U.S. &
Canada:
|
|
|
|
|
|
|
|
|
Construction
Equipment
|
|
|
|
|
|
Flat to Down
5%
|
|
|
Compact Construction
Equipment
|
|
|
|
|
|
Flat
|
|
|
Global
Forestry
|
|
|
|
|
|
Down ~ 10%
|
|
|
Global
Roadbuilding
|
|
|
|
|
|
Flat to Down
5%
|
|
|
Deere Segment
Outlook for Fiscal 2024
|
|
|
|
Currency
|
|
Price
|
|
|
$ in
millions
|
|
Net Sales
|
|
Translation
|
|
Realization
|
|
|
Production &
Precision Ag
|
|
Down 20% to
25%
|
|
~ Flat
|
|
+1.5 %
|
|
|
Small Ag &
Turf
|
|
Down 20% to
25%
|
|
~ Flat
|
|
+1.5 %
|
|
|
Construction &
Forestry
|
|
Down 5% to
10%
|
|
~ Flat
|
|
+1.5 %
|
|
|
|
|
|
|
|
|
|
|
Financial
Services
|
|
Net Income
|
|
~$ 770
|
|
|
|
Financial Services. Fiscal-year 2024 net income
attributable to Deere & Company for the financial services
operations is forecasted to be approximately $770 million. Results are expected to be higher
than fiscal year 2023 due to income earned on a higher average
portfolio, partially offset by a higher provision for credit losses
and less-favorable financing spreads. A correction of the
accounting treatment for financing incentives offered to John Deere
dealers impacted 2023 financial results. The cumulative effect of
this correction, $173 million pretax
($135 million after-tax), was
recorded in the second quarter of 2023.
FORWARD-LOOKING STATEMENTS
Certain statements contained herein, including in the section
entitled "Company Outlook & Summary," "Industry Outlook," and
"Deere Segment Outlook," 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 the
company's 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, the company expressly disclaims any obligation to
update or revise its 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:
- changes in and compliance with U.S., foreign and international
laws, regulations, and policies relating to trade, economic
sanctions, data privacy, spending, taxing, banking, monetary,
environmental (including climate change and engine emissions), and
farming policies;
- political, economic, and social instability of the geographies
in which the company operates, including the ongoing war between
Russia and Ukraine and the conflict in the Middle East;
- adverse macroeconomic conditions, including unemployment,
inflation, rising interest rates, changes in consumer practices due
to slower economic growth, and regional or global liquidity
constraints;
- worldwide demand for food and different forms of renewable
energy;
- the ability to execute business strategies, including the
company's Smart Industrial Operating Model, Leap Ambitions, and
mergers and acquisitions;
- the ability to understand and meet customers' changing
expectations and demand for John Deere products and solutions;
- accurately forecasting customer demand for products and
services and adequately managing inventory;
- the ability to integrate new technology, including automation
and machine learning, and deliver precision technology and
solutions to customers;
- changes to governmental communications channels (radio
frequency technology);
- the ability to adapt in highly competitive markets;
- dealer practices and their ability to manage distribution of
John Deere products and support and service precision technology
solutions;
- changes in climate patterns, unfavorable weather events, and
natural disasters;
- governmental and other actions designed to address climate
change in connection with a transition to a lower-carbon
economy;
- higher interest rates and currency fluctuations which could
adversely affect the U.S. dollar, customer confidence, access to
capital, and demand for John Deere products and solutions;
- availability and price of raw materials, components, and whole
goods;
- delays or disruptions in the company's supply chain;
- our equipment fails to perform as expected, which could result
in warranty claims, post-sales repairs or recalls, product
liability litigation, and regulatory investigations;
- the ability to attract, develop, engage, and retain qualified
personnel;
- security breaches, cybersecurity attacks, technology failures,
and other disruptions to John Deere information technology
infrastructure and products;
- loss of or challenges to intellectual property rights;
- legislation introduced or enacted that could affect the
company's business model and intellectual property, such as right
to repair or right to modify legislation;
- investigations, claims, lawsuits, or other legal
proceedings;
- events that damage the company's reputation or brand;
- the agricultural business cycle, which can be unpredictable and
is affected by factors such as world grain stocks, available farm
acres, acreage planted, soil conditions, harvest yields, prices for
commodities and livestock, input costs, and availability of
transport for crops; and
- housing starts and supply, real estate and housing prices,
levels of public and non-residential construction, and
infrastructure investment.
Further information concerning the company and its businesses,
including factors that could materially affect the financial
results, is included in the company's filings with the SEC
(including, but not limited to, the factors discussed in Item 1A.
"Risk Factors" of the company's most recent Annual Report on Form
10-K and subsequent Quarterly Reports on Form 10-Q). There also may
be other factors that the company cannot anticipate or that are not
described herein because the company does not currently perceive
them to be material.
|
DEERE &
COMPANY
SECOND QUARTER 2024
PRESS RELEASE
(In millions of
dollars) Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
April 28
|
|
April 30
|
|
%
|
|
April 28
|
|
April 30
|
|
%
|
|
|
|
2024
|
|
2023
|
|
Change
|
|
2024
|
|
2023
|
|
Change
|
|
|
Net sales and
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production &
precision ag net sales
|
|
$
|
6,581
|
|
$
|
7,822
|
|
-16
|
|
$
|
11,430
|
|
$
|
13,021
|
|
-12
|
|
|
Small ag & turf net
sales
|
|
|
3,185
|
|
|
4,145
|
|
-23
|
|
|
5,610
|
|
|
7,146
|
|
-21
|
|
|
Construction &
forestry net sales
|
|
|
3,844
|
|
|
4,112
|
|
-7
|
|
|
7,057
|
|
|
7,314
|
|
-4
|
|
|
Financial services
revenues
|
|
|
1,395
|
|
|
1,107
|
|
+26
|
|
|
2,770
|
|
|
2,147
|
|
+29
|
|
|
Other
revenues
|
|
|
230
|
|
|
201
|
|
+14
|
|
|
553
|
|
|
410
|
|
+35
|
|
|
Total net sales and
revenues
|
|
$
|
15,235
|
|
$
|
17,387
|
|
-12
|
|
$
|
27,420
|
|
$
|
30,038
|
|
-9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit:
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production &
precision ag
|
|
$
|
1,650
|
|
$
|
2,170
|
|
-24
|
|
$
|
2,695
|
|
$
|
3,378
|
|
-20
|
|
|
Small ag &
turf
|
|
|
571
|
|
|
849
|
|
-33
|
|
|
897
|
|
|
1,296
|
|
-31
|
|
|
Construction &
forestry
|
|
|
668
|
|
|
838
|
|
-20
|
|
|
1,234
|
|
|
1,463
|
|
-16
|
|
|
Financial
services
|
|
|
209
|
|
|
41
|
|
+410
|
|
|
466
|
|
|
279
|
|
+67
|
|
|
Total operating
profit
|
|
|
3,098
|
|
|
3,898
|
|
-21
|
|
|
5,292
|
|
|
6,416
|
|
-18
|
|
|
Reconciling items
**
|
|
|
23
|
|
|
(47)
|
|
|
|
|
49
|
|
|
(69)
|
|
|
|
|
Income taxes
|
|
|
(751)
|
|
|
(991)
|
|
-24
|
|
|
(1,220)
|
|
|
(1,528)
|
|
-20
|
|
|
Net income
attributable to Deere & Company
|
|
$
|
2,370
|
|
$
|
2,860
|
|
-17
|
|
$
|
4,121
|
|
$
|
4,819
|
|
-14
|
|
|
|
|
*
|
Operating profit is
income from continuing operations before corporate expenses,
certain external interest expenses, certain foreign exchange gains
and losses, and income taxes. Operating profit for financial
services includes the effect of interest expense and foreign
exchange gains or losses.
|
|
**
|
Reconciling items are
primarily corporate expenses, certain interest income and expenses,
certain foreign exchange gains and losses, pension and
postretirement benefit costs excluding the service cost component,
equity in income of unconsolidated affiliates, and net income
attributable to noncontrolling interests.
|
|
DEERE &
COMPANY
STATEMENTS OF
CONSOLIDATED INCOME
For the Three and Six
Months Ended April 28, 2024 and April 30, 2023
(In millions of dollars
and shares except per share amounts) Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
Net Sales and
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
13,610
|
|
$
|
16,079
|
|
$
|
24,097
|
|
$
|
27,481
|
|
|
Finance and interest
income
|
|
|
1,387
|
|
|
1,079
|
|
|
2,746
|
|
|
2,073
|
|
|
Other income
|
|
|
238
|
|
|
229
|
|
|
577
|
|
|
484
|
|
|
Total
|
|
|
15,235
|
|
|
17,387
|
|
|
27,420
|
|
|
30,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
9,157
|
|
|
10,730
|
|
|
16,357
|
|
|
18,663
|
|
|
Research and
development expenses
|
|
|
565
|
|
|
547
|
|
|
1,098
|
|
|
1,043
|
|
|
Selling, administrative
and general expenses
|
|
|
1,265
|
|
|
1,330
|
|
|
2,330
|
|
|
2,283
|
|
|
Interest
expense
|
|
|
836
|
|
|
569
|
|
|
1,638
|
|
|
1,049
|
|
|
Other operating
expenses
|
|
|
295
|
|
|
363
|
|
|
664
|
|
|
660
|
|
|
Total
|
|
|
12,118
|
|
|
13,539
|
|
|
22,087
|
|
|
23,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income of
Consolidated Group before Income Taxes
|
|
|
3,117
|
|
|
3,848
|
|
|
5,333
|
|
|
6,340
|
|
|
Provision for income
taxes
|
|
|
751
|
|
|
991
|
|
|
1,220
|
|
|
1,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income of
Consolidated Group
|
|
|
2,366
|
|
|
2,857
|
|
|
4,113
|
|
|
4,812
|
|
|
Equity in income of
unconsolidated affiliates
|
|
|
2
|
|
|
2
|
|
|
3
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
2,368
|
|
|
2,859
|
|
|
4,116
|
|
|
4,815
|
|
|
Less: Net loss
attributable to noncontrolling interests
|
|
|
(2)
|
|
|
(1)
|
|
|
(5)
|
|
|
(4)
|
|
|
Net Income
Attributable to Deere & Company
|
|
$
|
2,370
|
|
$
|
2,860
|
|
$
|
4,121
|
|
$
|
4,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
8.56
|
|
$
|
9.69
|
|
$
|
14.80
|
|
$
|
16.26
|
|
|
Diluted
|
|
|
8.53
|
|
|
9.65
|
|
|
14.74
|
|
|
16.18
|
|
|
Dividends
declared
|
|
|
1.47
|
|
|
1.25
|
|
|
2.94
|
|
|
2.45
|
|
|
Dividends
paid
|
|
|
1.47
|
|
|
1.20
|
|
|
2.82
|
|
|
2.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
276.8
|
|
|
295.1
|
|
|
278.4
|
|
|
296.3
|
|
|
Diluted
|
|
|
277.9
|
|
|
296.5
|
|
|
279.5
|
|
|
297.8
|
|
|
|
See Condensed Notes to
Interim Consolidated Financial Statements.
|
|
DEERE &
COMPANY
CONDENSED CONSOLIDATED
BALANCE SHEETS
(In millions of
dollars) Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
April 28
|
|
October 29
|
|
April 30
|
|
|
2024
|
|
2023
|
|
2023
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
5,553
|
|
$
|
7,458
|
|
$
|
5,267
|
|
Marketable
securities
|
|
|
1,094
|
|
|
946
|
|
|
856
|
|
Trade accounts and
notes receivable – net
|
|
|
8,880
|
|
|
7,739
|
|
|
9,971
|
|
Financing receivables –
net
|
|
|
45,278
|
|
|
43,673
|
|
|
38,954
|
|
Financing receivables
securitized – net
|
|
|
7,262
|
|
|
7,335
|
|
|
5,659
|
|
Other
receivables
|
|
|
2,535
|
|
|
2,623
|
|
|
2,593
|
|
Equipment on operating
leases – net
|
|
|
6,965
|
|
|
6,917
|
|
|
6,524
|
|
Inventories
|
|
|
8,443
|
|
|
8,160
|
|
|
9,713
|
|
Property and equipment
– net
|
|
|
7,034
|
|
|
6,879
|
|
|
6,288
|
|
Goodwill
|
|
|
3,936
|
|
|
3,900
|
|
|
3,963
|
|
Other intangible assets
– net
|
|
|
1,064
|
|
|
1,133
|
|
|
1,222
|
|
Retirement
benefits
|
|
|
3,056
|
|
|
3,007
|
|
|
3,519
|
|
Deferred income
taxes
|
|
|
1,936
|
|
|
1,814
|
|
|
1,308
|
|
Other assets
|
|
|
2,592
|
|
|
2,503
|
|
|
2,510
|
|
Total
Assets
|
|
$
|
105,628
|
|
$
|
104,087
|
|
$
|
98,347
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
17,699
|
|
$
|
17,939
|
|
$
|
17,109
|
|
Short-term
securitization borrowings
|
|
|
6,976
|
|
|
6,995
|
|
|
5,379
|
|
Accounts payable and
accrued expenses
|
|
|
14,609
|
|
|
16,130
|
|
|
14,716
|
|
Deferred income
taxes
|
|
|
491
|
|
|
520
|
|
|
511
|
|
Long-term
borrowings
|
|
|
40,962
|
|
|
38,477
|
|
|
35,611
|
|
Retirement benefits and
other liabilities
|
|
|
2,105
|
|
|
2,140
|
|
|
2,520
|
|
Total
liabilities
|
|
|
82,842
|
|
|
82,201
|
|
|
75,846
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
|
98
|
|
|
97
|
|
|
102
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
Total Deere &
Company stockholders' equity
|
|
|
22,684
|
|
|
21,785
|
|
|
22,395
|
|
Noncontrolling
interests
|
|
|
4
|
|
|
4
|
|
|
4
|
|
Total stockholders'
equity
|
|
|
22,688
|
|
|
21,789
|
|
|
22,399
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
105,628
|
|
$
|
104,087
|
|
$
|
98,347
|
|
|
See Condensed Notes to
Interim Consolidated Financial Statements.
|
|
DEERE &
COMPANY
STATEMENTS OF
CONSOLIDATED CASH FLOWS
For the Six Months
Ended April 28, 2024 and April 30, 2023
(In millions of
dollars) Unaudited
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
|
|
Net income
|
|
$
|
4,116
|
|
$
|
4,815
|
|
Adjustments to
reconcile net income to net cash provided by (used for) operating
activities:
|
|
|
|
|
|
|
|
Provision (credit) for
credit losses
|
|
|
131
|
|
|
(89)
|
|
Provision for
depreciation and amortization
|
|
|
1,045
|
|
|
995
|
|
Other non-cash
adjustments (Note 1)
|
|
|
|
|
|
173
|
|
Share-based
compensation expense
|
|
|
104
|
|
|
54
|
|
Credit for deferred
income taxes
|
|
|
(120)
|
|
|
(377)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Receivables related to
sales
|
|
|
(2,469)
|
|
|
(4,407)
|
|
Inventories
|
|
|
(409)
|
|
|
(982)
|
|
Accounts payable and
accrued expenses
|
|
|
(1,300)
|
|
|
(313)
|
|
Accrued income taxes
payable/receivable
|
|
|
(29)
|
|
|
(96)
|
|
Retirement
benefits
|
|
|
(208)
|
|
|
(68)
|
|
Other
|
|
|
83
|
|
|
148
|
|
Net cash provided by
(used for) operating activities
|
|
|
944
|
|
|
(147)
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
|
|
Collections of
receivables (excluding receivables related to sales)
|
|
|
13,703
|
|
|
12,593
|
|
Proceeds from
maturities and sales of marketable securities
|
|
|
200
|
|
|
98
|
|
Proceeds from sales of
equipment on operating leases
|
|
|
1,011
|
|
|
993
|
|
Cost of receivables
acquired (excluding receivables related to sales)
|
|
|
(14,091)
|
|
|
(13,451)
|
|
Purchases of marketable
securities
|
|
|
(432)
|
|
|
(188)
|
|
Purchases of property
and equipment
|
|
|
(719)
|
|
|
(584)
|
|
Cost of equipment on
operating leases acquired
|
|
|
(1,369)
|
|
|
(1,229)
|
|
Collateral on
derivatives – net
|
|
|
96
|
|
|
367
|
|
Other
|
|
|
(69)
|
|
|
(93)
|
|
Net cash used for
investing activities
|
|
|
(1,670)
|
|
|
(1,494)
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
|
|
Net proceeds in
short-term borrowings (original maturities three months or
less)
|
|
|
58
|
|
|
3,992
|
|
Proceeds from
borrowings issued (original maturities greater than three
months)
|
|
|
10,189
|
|
|
4,868
|
|
Payments of borrowings
(original maturities greater than three months)
|
|
|
(8,139)
|
|
|
(3,567)
|
|
Repurchases of common
stock
|
|
|
(2,422)
|
|
|
(2,546)
|
|
Dividends
paid
|
|
|
(796)
|
|
|
(697)
|
|
Other
|
|
|
(52)
|
|
|
(33)
|
|
Net cash provided by
(used for) financing activities
|
|
|
(1,162)
|
|
|
2,017
|
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash, Cash Equivalents, and Restricted
Cash
|
|
|
(5)
|
|
|
70
|
|
|
|
|
|
|
|
|
Net Increase
(Decrease) in Cash, Cash Equivalents, and Restricted
Cash
|
|
|
(1,893)
|
|
|
446
|
|
Cash, Cash
Equivalents, and Restricted Cash at Beginning of
Period
|
|
|
7,620
|
|
|
4,941
|
|
Cash, Cash
Equivalents, and Restricted Cash at End of Period
|
|
$
|
5,727
|
|
$
|
5,387
|
|
|
See Condensed Notes to
Interim Consolidated Financial Statements.
|
|
|
|
DEERE &
COMPANY
|
|
Condensed Notes to
Interim Consolidated Financial Statements
|
|
(In millions of
dollars) Unaudited
|
|
|
|
(1)
|
In the second quarter
of 2023, the company corrected the accounting treatment for
financing incentives offered to John Deere dealers, which impacted
the timing of expense recognition and the presentation of incentive
costs in the consolidated financial statements. The cumulative
effect of this correction, $173 million pretax ($135 million
after-tax), was recorded in the second quarter of 2023 in "Selling,
administrative and general expenses" by financial
services.
|
|
|
|
(2)
|
The consolidated
financial statements represent the consolidation of all Deere &
Company's subsidiaries. The supplemental consolidating data is
presented for informational purposes. Transactions between the
equipment operations and financial services have been eliminated to
arrive at the consolidated financial statements. In the
supplemental consolidating data in Note 3 to the financial
statements, the "Equipment Operations" represents the enterprise
without "Financial Services", which include the company's
production and precision agriculture operations, small agriculture
and turf operations, and construction and forestry operations, and
other corporate assets, liabilities, revenues, and expenses not
reflected within "Financial Services."
|
|
DEERE &
COMPANY
(3) SUPPLEMENTAL
CONSOLIDATING DATA
STATEMENTS OF
INCOME
For the Three Months
Ended April 28, 2024 and April 30, 2023
(In millions of
dollars) Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUIPMENT
|
|
FINANCIAL
|
|
|
|
|
|
|
|
|
OPERATIONS
|
|
SERVICES
|
|
ELIMINATIONS
|
|
CONSOLIDATED
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
Net Sales and
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
13,610
|
|
$
|
16,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
13,610
|
|
$
|
16,079
|
|
|
|
Finance and interest
income
|
|
|
129
|
|
|
121
|
|
$
|
1,496
|
|
$
|
1,206
|
|
$
|
(238)
|
|
$
|
(248)
|
|
|
1,387
|
|
|
1,079
|
1
|
|
|
Other income
|
|
|
198
|
|
|
185
|
|
|
92
|
|
|
91
|
|
|
(52)
|
|
|
(47)
|
|
|
238
|
|
|
229
|
2,
3
|
|
|
Total
|
|
|
13,937
|
|
|
16,385
|
|
|
1,588
|
|
|
1,297
|
|
|
(290)
|
|
|
(295)
|
|
|
15,235
|
|
|
17,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
9,164
|
|
|
10,737
|
|
|
|
|
|
|
|
|
(7)
|
|
|
(7)
|
|
|
9,157
|
|
|
10,730
|
4
|
|
|
Research and
development expenses
|
|
|
565
|
|
|
547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
565
|
|
|
547
|
|
|
|
Selling, administrative
and general expenses
|
|
|
1,007
|
|
|
935
|
|
|
260
|
|
|
397
|
|
|
(2)
|
|
|
(2)
|
|
|
1,265
|
|
|
1,330
|
4
|
|
|
Interest
expense
|
|
|
114
|
|
|
103
|
|
|
780
|
|
|
540
|
|
|
(58)
|
|
|
(74)
|
|
|
836
|
|
|
569
|
1
|
|
|
Interest compensation
to Financial Services
|
|
|
180
|
|
|
174
|
|
|
|
|
|
|
|
|
(180)
|
|
|
(174)
|
|
|
|
|
|
|
1
|
|
|
Other operating
expenses
|
|
|
1
|
|
|
85
|
|
|
337
|
|
|
316
|
|
|
(43)
|
|
|
(38)
|
|
|
295
|
|
|
363
|
3,
5
|
|
|
Total
|
|
|
11,031
|
|
|
12,581
|
|
|
1,377
|
|
|
1,253
|
|
|
(290)
|
|
|
(295)
|
|
|
12,118
|
|
|
13,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before Income
Taxes
|
|
|
2,906
|
|
|
3,804
|
|
|
211
|
|
|
44
|
|
|
|
|
|
|
|
|
3,117
|
|
|
3,848
|
|
|
|
Provision for income
taxes
|
|
|
700
|
|
|
974
|
|
|
51
|
|
|
17
|
|
|
|
|
|
|
|
|
751
|
|
|
991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income after Income
Taxes
|
|
|
2,206
|
|
|
2,830
|
|
|
160
|
|
|
27
|
|
|
|
|
|
|
|
|
2,366
|
|
|
2,857
|
|
|
|
Equity in income of
unconsolidated affiliates
|
|
|
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
|
|
|
|
|
|
2
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
2,206
|
|
|
2,831
|
|
|
162
|
|
|
28
|
|
|
|
|
|
|
|
|
2,368
|
|
|
2,859
|
|
|
|
Less: Net loss
attributable to noncontrolling interests
|
|
|
(2)
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
(1)
|
|
|
|
Net Income
Attributable to Deere & Company
|
|
$
|
2,208
|
|
$
|
2,832
|
|
$
|
162
|
|
$
|
28
|
|
|
|
|
|
|
|
$
|
2,370
|
|
$
|
2,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 expense between Equipment Operations and Financial Services
related to intercompany guarantees of investments in certain
international markets and intercompany service revenues and
expenses.
|
|
4
|
Elimination of
intercompany service fees.
|
|
5
|
Elimination of
Financial Services' lease depreciation expense related to inventory
transferred to equipment on operating leases.
|
|
DEERE &
COMPANY
SUPPLEMENTAL
CONSOLIDATING DATA (Continued)
STATEMENTS OF
INCOME
For the Six Months
Ended April 28, 2024 and April 30, 2023
(In millions of
dollars) Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUIPMENT
|
|
FINANCIAL
|
|
|
|
|
|
|
|
|
OPERATIONS
|
|
SERVICES
|
|
ELIMINATIONS
|
|
CONSOLIDATED
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
Net Sales and
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
24,097
|
|
$
|
27,481
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
24,097
|
|
$
|
27,481
|
|
|
|
Finance and interest
income
|
|
|
285
|
|
|
234
|
|
$
|
2,929
|
|
$
|
2,274
|
|
$
|
(468)
|
|
$
|
(435)
|
|
|
2,746
|
|
|
2,073
|
1
|
|
|
Other income
|
|
|
487
|
|
|
417
|
|
|
211
|
|
|
268
|
|
|
(121)
|
|
|
(201)
|
|
|
577
|
|
|
484
|
2,
3
|
|
|
Total
|
|
|
24,869
|
|
|
28,132
|
|
|
3,140
|
|
|
2,542
|
|
|
(589)
|
|
|
(636)
|
|
|
27,420
|
|
|
30,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
16,371
|
|
|
18,675
|
|
|
|
|
|
|
|
|
(14)
|
|
|
(12)
|
|
|
16,357
|
|
|
18,663
|
4
|
|
|
Research and
development expenses
|
|
|
1,098
|
|
|
1,043
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,098
|
|
|
1,043
|
|
|
|
Selling, administrative
and general expenses
|
|
|
1,882
|
|
|
1,719
|
|
|
453
|
|
|
569
|
|
|
(5)
|
|
|
(5)
|
|
|
2,330
|
|
|
2,283
|
4
|
|
|
Interest
expense
|
|
|
223
|
|
|
204
|
|
|
1,542
|
|
|
983
|
|
|
(127)
|
|
|
(138)
|
|
|
1,638
|
|
|
1,049
|
1
|
|
|
Interest compensation
to Financial Services
|
|
|
341
|
|
|
297
|
|
|
|
|
|
|
|
|
(341)
|
|
|
(297)
|
|
|
|
|
|
|
1
|
|
|
Other operating
expenses
|
|
|
91
|
|
|
137
|
|
|
675
|
|
|
707
|
|
|
(102)
|
|
|
(184)
|
|
|
664
|
|
|
660
|
3,
5
|
|
|
Total
|
|
|
20,006
|
|
|
22,075
|
|
|
2,670
|
|
|
2,259
|
|
|
(589)
|
|
|
(636)
|
|
|
22,087
|
|
|
23,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before Income
Taxes
|
|
|
4,863
|
|
|
6,057
|
|
|
470
|
|
|
283
|
|
|
|
|
|
|
|
|
5,333
|
|
|
6,340
|
|
|
|
Provision for income
taxes
|
|
|
1,117
|
|
|
1,455
|
|
|
103
|
|
|
73
|
|
|
|
|
|
|
|
|
1,220
|
|
|
1,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income after Income
Taxes
|
|
|
3,746
|
|
|
4,602
|
|
|
367
|
|
|
210
|
|
|
|
|
|
|
|
|
4,113
|
|
|
4,812
|
|
|
|
Equity in income of
unconsolidated affiliates
|
|
|
|
|
|
1
|
|
|
3
|
|
|
2
|
|
|
|
|
|
|
|
|
3
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
3,746
|
|
|
4,603
|
|
|
370
|
|
|
212
|
|
|
|
|
|
|
|
|
4,116
|
|
|
4,815
|
|
|
|
Less: Net loss
attributable to noncontrolling interests
|
|
|
(5)
|
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
|
|
(4)
|
|
|
|
Net Income
Attributable to Deere & Company
|
|
$
|
3,751
|
|
$
|
4,607
|
|
$
|
370
|
|
$
|
212
|
|
|
|
|
|
|
|
$
|
4,121
|
|
$
|
4,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 expense between Equipment Operations and Financial Services
related to intercompany guarantees of investments in certain
international markets and intercompany service revenues and
expenses.
|
|
4
|
Elimination of
intercompany service fees.
|
|
5
|
Elimination of
Financial Services' lease depreciation expense related to inventory
transferred to equipment on operating leases.
|
|
DEERE &
COMPANY
SUPPLEMENTAL
CONSOLIDATING DATA (Continued)
CONDENSED BALANCE
SHEETS
(In millions of
dollars) Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUIPMENT
|
|
FINANCIAL
|
|
|
|
|
|
|
|
|
OPERATIONS
|
|
SERVICES
|
|
ELIMINATIONS
|
|
CONSOLIDATED
|
|
|
|
|
Apr 28
|
|
Oct 29
|
|
Apr 30
|
|
Apr 28
|
|
Oct 29
|
|
Apr 30
|
|
Apr 28
|
|
Oct 29
|
|
Apr 30
|
|
Apr 28
|
|
Oct 29
|
|
Apr 30
|
|
|
|
|
2024
|
|
2023
|
|
2023
|
|
2024
|
|
2023
|
|
2023
|
|
2024
|
|
2023
|
|
2023
|
|
2024
|
|
2023
|
|
2023
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
3,800
|
|
$
|
5,720
|
|
$
|
3,587
|
|
$
|
1,753
|
|
$
|
1,738
|
|
$
|
1,680
|
|
|
|
|
|
|
|
|
|
|
$
|
5,553
|
|
$
|
7,458
|
|
$
|
5,267
|
|
|
|
Marketable
securities
|
|
|
148
|
|
|
104
|
|
|
14
|
|
|
946
|
|
|
842
|
|
|
842
|
|
|
|
|
|
|
|
|
|
|
|
1,094
|
|
|
946
|
|
|
856
|
|
|
|
Receivables from
Financial Services
|
|
|
4,480
|
|
|
4,516
|
|
|
5,899
|
|
|
|
|
|
|
|
|
|
|
$
|
(4,480)
|
|
$
|
(4,516)
|
|
$
|
(5,899)
|
|
|
|
|
|
|
|
|
|
6
|
|
|
Trade accounts and
notes receivable – net
|
|
|
1,320
|
|
|
1,320
|
|
|
1,562
|
|
|
10,263
|
|
|
8,687
|
|
|
10,422
|
|
|
(2,703)
|
|
|
(2,268)
|
|
|
(2,013)
|
|
|
8,880
|
|
|
7,739
|
|
|
9,971
|
7
|
|
|
Financing receivables –
net
|
|
|
80
|
|
|
64
|
|
|
54
|
|
|
45,198
|
|
|
43,609
|
|
|
38,900
|
|
|
|
|
|
|
|
|
|
|
|
45,278
|
|
|
43,673
|
|
|
38,954
|
|
|
|
Financing receivables
securitized – net
|
|
|
|
|
|
|
|
|
1
|
|
|
7,262
|
|
|
7,335
|
|
|
5,658
|
|
|
|
|
|
|
|
|
|
|
|
7,262
|
|
|
7,335
|
|
|
5,659
|
|
|
|
Other
receivables
|
|
|
1,822
|
|
|
1,813
|
|
|
2,201
|
|
|
760
|
|
|
869
|
|
|
481
|
|
|
(47)
|
|
|
(59)
|
|
|
(89)
|
|
|
2,535
|
|
|
2,623
|
|
|
2,593
|
7
|
|
|
Equipment on operating
leases – net
|
|
|
|
|
|
|
|
|
|
|
|
6,965
|
|
|
6,917
|
|
|
6,524
|
|
|
|
|
|
|
|
|
|
|
|
6,965
|
|
|
6,917
|
|
|
6,524
|
|
|
|
Inventories
|
|
|
8,443
|
|
|
8,160
|
|
|
9,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,443
|
|
|
8,160
|
|
|
9,713
|
|
|
|
Property and equipment
– net
|
|
|
6,999
|
|
|
6,843
|
|
|
6,254
|
|
|
35
|
|
|
36
|
|
|
34
|
|
|
|
|
|
|
|
|
|
|
|
7,034
|
|
|
6,879
|
|
|
6,288
|
|
|
|
Goodwill
|
|
|
3,936
|
|
|
3,900
|
|
|
3,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,936
|
|
|
3,900
|
|
|
3,963
|
|
|
|
Other intangible assets
– net
|
|
|
1,064
|
|
|
1,133
|
|
|
1,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,064
|
|
|
1,133
|
|
|
1,222
|
|
|
|
Retirement
benefits
|
|
|
2,980
|
|
|
2,936
|
|
|
3,450
|
|
|
77
|
|
|
72
|
|
|
69
|
|
|
(1)
|
|
|
(1)
|
|
|
|
|
|
3,056
|
|
|
3,007
|
|
|
3,519
|
8
|
|
|
Deferred income
taxes
|
|
|
2,210
|
|
|
2,133
|
|
|
1,355
|
|
|
71
|
|
|
68
|
|
|
59
|
|
|
(345)
|
|
|
(387)
|
|
|
(106)
|
|
|
1,936
|
|
|
1,814
|
|
|
1,308
|
9
|
|
|
Other assets
|
|
|
2,105
|
|
|
1,948
|
|
|
1,961
|
|
|
504
|
|
|
559
|
|
|
564
|
|
|
(17)
|
|
|
(4)
|
|
|
(15)
|
|
|
2,592
|
|
|
2,503
|
|
|
2,510
|
|
|
|
Total
Assets
|
|
$
|
39,387
|
|
$
|
40,590
|
|
$
|
41,236
|
|
$
|
73,834
|
|
$
|
70,732
|
|
$
|
65,233
|
|
$
|
(7,593)
|
|
$
|
(7,235)
|
|
$
|
(8,122)
|
|
$
|
105,628
|
|
$
|
104,087
|
|
$
|
98,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
1,055
|
|
$
|
1,230
|
|
$
|
1,755
|
|
$
|
16,644
|
|
$
|
16,709
|
|
$
|
15,354
|
|
|
|
|
|
|
|
|
|
|
$
|
17,699
|
|
$
|
17,939
|
|
$
|
17,109
|
|
|
|
Short-term
securitization borrowings
|
|
|
|
|
|
|
|
|
|
|
|
6,976
|
|
|
6,995
|
|
|
5,379
|
|
|
|
|
|
|
|
|
|
|
|
6,976
|
|
|
6,995
|
|
|
5,379
|
|
|
|
Payables to Equipment
Operations
|
|
|
|
|
|
|
|
|
|
|
|
4,480
|
|
|
4,516
|
|
|
5,899
|
|
$
|
(4,480)
|
|
$
|
(4,516)
|
|
$
|
(5,899)
|
|
|
|
|
|
|
|
|
|
6
|
|
|
Accounts payable and
accrued expenses
|
|
|
13,771
|
|
|
14,862
|
|
|
13,759
|
|
|
3,605
|
|
|
3,599
|
|
|
3,074
|
|
|
(2,767)
|
|
|
(2,331)
|
|
|
(2,117)
|
|
|
14,609
|
|
|
16,130
|
|
|
14,716
|
7
|
|
|
Deferred income
taxes
|
|
|
421
|
|
|
452
|
|
|
402
|
|
|
415
|
|
|
455
|
|
|
215
|
|
|
(345)
|
|
|
(387)
|
|
|
(106)
|
|
|
491
|
|
|
520
|
|
|
511
|
9
|
|
|
Long-term
borrowings
|
|
|
6,575
|
|
|
7,210
|
|
|
7,310
|
|
|
34,387
|
|
|
31,267
|
|
|
28,301
|
|
|
|
|
|
|
|
|
|
|
|
40,962
|
|
|
38,477
|
|
|
35,611
|
|
|
|
Retirement benefits and
other liabilities
|
|
|
1,995
|
|
|
2,032
|
|
|
2,410
|
|
|
111
|
|
|
109
|
|
|
110
|
|
|
(1)
|
|
|
(1)
|
|
|
|
|
|
2,105
|
|
|
2,140
|
|
|
2,520
|
8
|
|
|
Total
liabilities
|
|
|
23,817
|
|
|
25,786
|
|
|
25,636
|
|
|
66,618
|
|
|
63,650
|
|
|
58,332
|
|
|
(7,593)
|
|
|
(7,235)
|
|
|
(8,122)
|
|
|
82,842
|
|
|
82,201
|
|
|
75,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
|
98
|
|
|
97
|
|
|
102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
98
|
|
|
97
|
|
|
102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Deere &
Company stockholders' equity
|
|
|
22,684
|
|
|
21,785
|
|
|
22,395
|
|
|
7,216
|
|
|
7,082
|
|
|
6,901
|
|
|
(7,216)
|
|
|
(7,082)
|
|
|
(6,901)
|
|
|
22,684
|
|
|
21,785
|
|
|
22,395
|
10
|
|
|
Noncontrolling
interests
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
|
Financial Services
equity
|
|
|
(7,216)
|
|
|
(7,082)
|
|
|
(6,901)
|
|
|
|
|
|
|
|
|
|
|
|
7,216
|
|
|
7,082
|
|
|
6,901
|
|
|
|
|
|
|
|
|
|
10
|
|
|
Adjusted total
stockholders' equity
|
|
|
15,472
|
|
|
14,707
|
|
|
15,498
|
|
|
7,216
|
|
|
7,082
|
|
|
6,901
|
|
|
|
|
|
|
|
|
|
|
|
22,688
|
|
|
21,789
|
|
|
22,399
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
39,387
|
|
$
|
40,590
|
|
$
|
41,236
|
|
$
|
73,834
|
|
$
|
70,732
|
|
$
|
65,233
|
|
$
|
(7,593)
|
|
$
|
(7,235)
|
|
$
|
(8,122)
|
|
$
|
105,628
|
|
$
|
104,087
|
|
$
|
98,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
DEERE &
COMPANY
SUPPLEMENTAL
CONSOLIDATING DATA (Continued)
STATEMENTS OF CASH
FLOWS
For the Six Months
Ended April 28, 2024 and April 30, 2023
(In millions of
dollars) Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUIPMENT
|
|
FINANCIAL
|
|
|
|
|
|
|
|
|
OPERATIONS
|
|
SERVICES
|
|
ELIMINATIONS
|
|
CONSOLIDATED
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
3,746
|
|
$
|
4,603
|
|
$
|
370
|
|
$
|
212
|
|
|
|
|
|
|
|
$
|
4,116
|
|
$
|
4,815
|
|
|
|
Adjustments to
reconcile net income to net cash provided by (used for) operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (credit) for
credit losses
|
|
|
10
|
|
|
4
|
|
|
121
|
|
|
(93)
|
|
|
|
|
|
|
|
|
131
|
|
|
(89)
|
|
|
|
Provision for
depreciation and amortization
|
|
|
608
|
|
|
565
|
|
|
509
|
|
|
500
|
|
$
|
(72)
|
|
$
|
(70)
|
|
|
1,045
|
|
|
995
|
11
|
|
|
Other non-cash
adjustments (Note 1)
|
|
|
|
|
|
|
|
|
|
|
|
173
|
|
|
|
|
|
|
|
|
|
|
|
173
|
|
|
|
Share-based
compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
104
|
|
|
54
|
|
|
104
|
|
|
54
|
12
|
|
|
Distributed earnings
of Financial Services
|
|
|
247
|
|
|
12
|
|
|
|
|
|
|
|
|
(247)
|
|
|
(12)
|
|
|
|
|
|
|
13
|
|
|
Credit for deferred
income taxes
|
|
|
(74)
|
|
|
(304)
|
|
|
(46)
|
|
|
(73)
|
|
|
|
|
|
|
|
|
(120)
|
|
|
(377)
|
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables related to
sales
|
|
|
(58)
|
|
|
(255)
|
|
|
|
|
|
|
|
|
(2,411)
|
|
|
(4,152)
|
|
|
(2,469)
|
|
|
(4,407)
|
14,
16
|
|
|
Inventories
|
|
|
(300)
|
|
|
(910)
|
|
|
|
|
|
|
|
|
(109)
|
|
|
(72)
|
|
|
(409)
|
|
|
(982)
|
15
|
|
|
Accounts payable and
accrued expenses
|
|
|
(1,012)
|
|
|
161
|
|
|
147
|
|
|
243
|
|
|
(435)
|
|
|
(717)
|
|
|
(1,300)
|
|
|
(313)
|
16
|
|
|
Accrued income taxes
payable/receivable
|
|
|
(20)
|
|
|
(97)
|
|
|
(9)
|
|
|
1
|
|
|
|
|
|
|
|
|
(29)
|
|
|
(96)
|
|
|
|
Retirement
benefits
|
|
|
(205)
|
|
|
(67)
|
|
|
(3)
|
|
|
(1)
|
|
|
|
|
|
|
|
|
(208)
|
|
|
(68)
|
|
|
|
Other
|
|
|
89
|
|
|
54
|
|
|
65
|
|
|
103
|
|
|
(71)
|
|
|
(9)
|
|
|
83
|
|
|
148
|
11, 12,
15
|
|
|
Net cash provided by
(used for) operating activities
|
|
|
3,031
|
|
|
3,766
|
|
|
1,154
|
|
|
1,065
|
|
|
(3,241)
|
|
|
(4,978)
|
|
|
944
|
|
|
(147)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collections of
receivables (excluding receivables related
to sales)
|
|
|
|
|
|
|
|
|
14,175
|
|
|
13,169
|
|
|
(472)
|
|
|
(576)
|
|
|
13,703
|
|
|
12,593
|
14
|
|
|
Proceeds from
maturities and sales of marketable securities
|
|
|
58
|
|
|
62
|
|
|
142
|
|
|
36
|
|
|
|
|
|
|
|
|
200
|
|
|
98
|
|
|
|
Proceeds from sales of
equipment on operating leases
|
|
|
|
|
|
|
|
|
1,011
|
|
|
993
|
|
|
|
|
|
|
|
|
1,011
|
|
|
993
|
|
|
|
Cost of receivables
acquired (excluding receivables related to sales)
|
|
|
|
|
|
|
|
|
(14,238)
|
|
|
(13,584)
|
|
|
147
|
|
|
133
|
|
|
(14,091)
|
|
|
(13,451)
|
14
|
|
|
Purchases of marketable
securities
|
|
|
(226)
|
|
|
(21)
|
|
|
(206)
|
|
|
(167)
|
|
|
|
|
|
|
|
|
(432)
|
|
|
(188)
|
|
|
|
Purchases of property
and equipment
|
|
|
(718)
|
|
|
(583)
|
|
|
(1)
|
|
|
(1)
|
|
|
|
|
|
|
|
|
(719)
|
|
|
(584)
|
|
|
|
Cost of equipment on
operating leases acquired
|
|
|
|
|
|
|
|
|
(1,516)
|
|
|
(1,327)
|
|
|
147
|
|
|
98
|
|
|
(1,369)
|
|
|
(1,229)
|
15
|
|
|
Decrease (increase) in
investment in Financial Services
|
|
|
10
|
|
|
(799)
|
|
|
|
|
|
|
|
|
(10)
|
|
|
799
|
|
|
|
|
|
|
17
|
|
|
Increase in trade and
wholesale receivables
|
|
|
|
|
|
|
|
|
(3,171)
|
|
|
(5,310)
|
|
|
3,171
|
|
|
5,310
|
|
|
|
|
|
|
14
|
|
|
Collateral on
derivatives – net
|
|
|
|
|
|
|
|
|
96
|
|
|
367
|
|
|
|
|
|
|
|
|
96
|
|
|
367
|
|
|
|
Other
|
|
|
(68)
|
|
|
(119)
|
|
|
(2)
|
|
|
25
|
|
|
1
|
|
|
1
|
|
|
(69)
|
|
|
(93)
|
|
|
|
Net cash used for
investing activities
|
|
|
(944)
|
|
|
(1,460)
|
|
|
(3,710)
|
|
|
(5,799)
|
|
|
2,984
|
|
|
5,765
|
|
|
(1,670)
|
|
|
(1,494)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net proceeds (payments)
in short-term borrowings (original maturities three months or
less)
|
|
|
189
|
|
|
(225)
|
|
|
(131)
|
|
|
4,217
|
|
|
|
|
|
|
|
|
58
|
|
|
3,992
|
|
|
|
Change in intercompany
receivables/payables
|
|
|
31
|
|
|
932
|
|
|
(31)
|
|
|
(932)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
borrowings issued (original maturities greater than three
months)
|
|
|
34
|
|
|
41
|
|
|
10,155
|
|
|
4,827
|
|
|
|
|
|
|
|
|
10,189
|
|
|
4,868
|
|
|
|
Payments of borrowings
(original maturities greater than three months)
|
|
|
(1,012)
|
|
|
(47)
|
|
|
(7,127)
|
|
|
(3,520)
|
|
|
|
|
|
|
|
|
(8,139)
|
|
|
(3,567)
|
|
|
|
Repurchases of common
stock
|
|
|
(2,422)
|
|
|
(2,546)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,422)
|
|
|
(2,546)
|
|
|
|
Capital Investment from
Equipment Operations
|
|
|
|
|
|
|
|
|
(10)
|
|
|
799
|
|
|
10
|
|
|
(799)
|
|
|
|
|
|
|
17
|
|
|
Dividends
paid
|
|
|
(796)
|
|
|
(697)
|
|
|
(247)
|
|
|
(12)
|
|
|
247
|
|
|
12
|
|
|
(796)
|
|
|
(697)
|
13
|
|
|
Other
|
|
|
(27)
|
|
|
(5)
|
|
|
(25)
|
|
|
(28)
|
|
|
|
|
|
|
|
|
(52)
|
|
|
(33)
|
|
|
|
Net cash provided by
(used for) financing activities
|
|
|
(4,003)
|
|
|
(2,547)
|
|
|
2,584
|
|
|
5,351
|
|
|
257
|
|
|
(787)
|
|
|
(1,162)
|
|
|
2,017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash, Cash Equivalents, and Restricted
Cash
|
|
|
|
|
|
62
|
|
|
(5)
|
|
|
8
|
|
|
|
|
|
|
|
|
(5)
|
|
|
70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase
(Decrease) in Cash, Cash Equivalents, and
Restricted Cash
|
|
|
(1,916)
|
|
|
(179)
|
|
|
23
|
|
|
625
|
|
|
|
|
|
|
|
|
(1,893)
|
|
|
446
|
|
|
|
Cash, Cash
Equivalents, and Restricted Cash at
Beginning of Period
|
|
|
5,755
|
|
|
3,781
|
|
|
1,865
|
|
|
1,160
|
|
|
|
|
|
|
|
|
7,620
|
|
|
4,941
|
|
|
|
Cash, Cash
Equivalents, and Restricted Cash at
End of Period
|
|
$
|
3,839
|
|
$
|
3,602
|
|
$
|
1,888
|
|
$
|
1,785
|
|
|
|
|
|
|
|
$
|
5,727
|
|
$
|
5,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
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SOURCE John Deere Company