[10-Q] Deere & Company Quarterly Earnings Report
Deere & Company reported operating and market updates for fiscal 2025, describing pressures on demand, liquidity measures, and legal risks. The company expects lower demand for large agricultural equipment in the U.S. and Canada due to high interest rates, elevated used inventory and lower commodity prices, while small-agriculture sales and some regions may be flat to slightly up. Construction and forestry equipment demand is forecasted to be down or flat amid higher rates and softer real estate markets.
The filing discloses financial positions and liquidity tools including commercial paper, term debt, securitization of retail notes, a 364-day $5.0 billion credit facility, and $3.25 billion facilities expiring in 2028 and 2030. The company declared a quarterly dividend of $1.62 per share. It also disclosed an antitrust lawsuit filed by the FTC and several state attorneys general alleging unfair competition regarding repair access, and stated it cannot estimate the potential impact.
Deere & Company ha fornito aggiornamenti operativi e di mercato per l'esercizio 2025, descrivendo pressioni sulla domanda, misure di liquidit脿 e rischi legali. L'azienda prevede una domanda ridotta per i grandi macchinari agricoli negli Stati Uniti e in Canada a causa dei tassi d'interesse elevati, dell'aumento dell'inventario di usato e dei prezzi pi霉 bassi delle materie prime; le vendite nel segmento della piccola agricoltura e in alcune aree geografiche potrebbero invece risultare stabili o in lieve aumento. La domanda di macchinari per edilizia e silvicoltura 猫 prevista in calo o stabile per via dei tassi pi霉 alti e di mercati immobiliari pi霉 deboli.
Il documento rivela la posizione finanziaria e gli strumenti di liquidit脿, tra cui commercial paper, debito a termine, cartolarizzazione di finanziamenti al dettaglio, una linea di credito a 364 giorni da 5,0 miliardi di dollari e linee da 3,25 miliardi con scadenze nel 2028 e nel 2030. L'azienda ha dichiarato un dividendo trimestrale di 1,62 $ per azione. Ha inoltre reso noto un procedimento antitrust avviato dalla FTC e da diversi procuratori generali statali che accusa pratiche anticoncorrenziali sull'accesso alle riparazioni, e ha affermato di non poter stimare l'impatto potenziale.
Deere & Company inform贸 actualizaciones operativas y de mercado para el a帽o fiscal 2025, describiendo presiones sobre la demanda, medidas de liquidez y riesgos legales. La empresa espera una menor demanda de equipos agr铆colas grandes en Estados Unidos y Canad谩 debido a las altas tasas de inter茅s, el incremento del inventario de usados y la ca铆da de los precios de las materias primas; las ventas de agricultura a peque帽a escala y en algunas regiones podr铆an mantenerse estables o aumentar ligeramente. Se pronostica que la demanda de equipos de construcci贸n y forestales estar谩 en descenso o estable, por las tasas m谩s altas y mercados inmobiliarios m谩s d茅biles.
El informe revela posiciones financieras y herramientas de liquidez, incluidos papeles comerciales, deuda a plazo, titulizaci贸n de cr茅ditos minoristas, una l铆nea de cr茅dito a 364 d铆as por 5.000 millones de d贸lares y facilidades por 3.250 millones con vencimientos en 2028 y 2030. La compa帽铆a declar贸 un dividendo trimestral de 1,62 $ por acci贸n. Tambi茅n divulg贸 una demanda antimonopolio presentada por la FTC y varios fiscales generales estatales que alega competencia desleal respecto al acceso a reparaciones, y se帽al贸 que no puede estimar el impacto potencial.
Deere & Company電� 2025 須岅硠鞐半弰鞐� 雽�頃� 鞖挫榿 氚� 鞁滌灔 鞐呺嵃鞚错姼毳� 氚滍憸頃橂┌ 靾橃殧 鞎曤牓, 鞙犽彊靹� 臁办箻 氚� 氩曥爜 鞙勴棙鞚� 靹る獏頄堨姷雼堧嫟. 須岇偓電� 雴掛潃 旮堧Μ, 欷戧碃 鞛碃 歃濌皜 氚� 鞗愳瀽鞛� 臧�瓴� 頃橂澖鞙茧 鞚疙暣 氙戈淡瓿� 旌愲倶雼れ棎靹� 雽�順� 雴嶊赴瓿� 靾橃殧臧� 臧愳唽頃� 瓴冹溂搿� 鞓堨儊頃橂┌, 靻岅窚氇� 雴嶌梾 韺愲Г鞕� 鞚茧秬 歆�鞐潃 鞙犾霅橁卑雮� 靻岉彮 歃濌皜頃� 靾� 鞛堧嫟瓿� 氪れ姷雼堧嫟. 瓯挫劋 氚� 鞛勳梾 鞛ル箘 靾橃殧電� 旮堧Μ 靸侅姽瓿� 攵�霃欖偘 鞁滌灔 鞎届劯搿� 臧愳唽頃橁卑雮� 氤错暕靹鸽ゼ 氤挫澕 瓴冹溂搿� 鞓堨儊霅╇媹雼�.
瓿奠嫓鞐愲姅 靸侅梾鞏挫潓, 旮绊暅攵� 毂勲, 靻岆Г毂勱秾 鞙犽彊頇�, 364鞚� 50鞏� 雼煬 鞁犾毄頃滊弰 氚� 2028雲勱臣 2030雲勳棎 毵岅赴鞚� 32.5鞏� 雼煬 鞁滌劋 霌� 鞛 靸來儨鞕� 鞙犽彊靹� 靾橂嫧鞚� 韽暔霅橃柎 鞛堨姷雼堧嫟. 須岇偓電� 攵勱赴 氚半嫻旮堨溂搿� 欤茧嫻 1.62雼煬毳� 靹犾柛頄堨姷雼堧嫟. 霕愴暅 靾橂Μ 鞝戧芳靹� 甏�霠� 攵堦车鞝� 瓴届焷鞚� 欤检灔頃橂姅 FTC鞕� 鞐煬 欤� 瓴�彀办礉鞛レ澊 鞝滉赴頃� 霃呾爯旮堨 靻岇啞鞚� 瓿店皽頄堨溂氅� 鞛犾灛鞝� 鞓來枼鞚� 於旍爼頃� 靾� 鞐嗠嫟瓿� 氚濏様鞀惦媹雼�.
Deere & Company a publi茅 des mises 脿 jour op茅rationnelles et de march茅 pour l'exercice 2025, d茅crivant des tensions sur la demande, des mesures de liquidit茅 et des risques juridiques. La soci茅t茅 pr茅voit une baisse de la demande pour les gros 茅quipements agricoles aux 脡tats-Unis et au Canada en raison des taux d'int茅r锚t 茅lev茅s, de l'augmentation des stocks d'occasion et de la baisse des prix des mati猫res premi猫res ; les ventes dans le petit secteur agricole et dans certaines r茅gions pourraient toutefois 锚tre stables ou l茅g猫rement en hausse. La demande pour les 茅quipements de construction et forestiers devrait 锚tre en baisse ou stable, en raison de taux plus 茅lev茅s et de march茅s immobiliers plus faibles.
Le d茅p么t divulgue la situation financi猫re et les instruments de liquidit茅, notamment les billets de tr茅sorerie, la dette 脿 terme, la titrisation des cr茅ances de d茅tail, une facilit茅 de cr茅dit 脿 364 jours de 5,0 milliards de dollars et des facilit茅s de 3,25 milliards arrivant 脿 茅ch茅ance en 2028 et 2030. La soci茅t茅 a d茅clar茅 un dividende trimestriel de 1,62 $ par action. Elle a 茅galement divulgu茅 un proc猫s antitrust intent茅 par la FTC et plusieurs procureurs g茅n茅raux d'脡tat all茅guant une concurrence d茅loyale concernant l'acc猫s aux r茅parations, et a indiqu茅 qu'elle ne peut estimer l'impact potentiel.
Deere & Company meldete Betriebs- und Marktaktualisierungen f眉r das Gesch盲ftsjahr 2025 und beschrieb dabei Nachfragedruck, Liquidit盲tsma脽nahmen und rechtliche Risiken. Das Unternehmen erwartet aufgrund hoher Zinss盲tze, erh枚hter Gebrauchtbest盲nde und niedrigerer Rohstoffpreise eine geringere Nachfrage nach gro脽en Landmaschinen in den USA und Kanada, w盲hrend Verk盲ufe im Kleinlandbau und in einigen Regionen stabil bis leicht steigend ausfallen k枚nnten. Die Nachfrage nach Bau- und Forstmaschinen wird angesichts h枚herer Zinsen und schw盲cherer Immobilienm盲rkte voraussichtlich r眉ckl盲ufig oder stabil sein.
Die Einreichung legt die finanzielle Lage und Liquidit盲tsinstrumente offen, darunter Commercial Paper, Termingeldverbindlichkeiten, Verbriefung von Einzelhandelsforderungen, eine 364-Tage-Kreditlinie 眉ber 5,0 Milliarden US-Dollar sowie Kreditfazilit盲ten 眉ber 3,25 Milliarden US-Dollar mit F盲lligkeiten 2028 und 2030. Das Unternehmen erkl盲rte eine Quartalsdividende von 1,62 $ je Aktie. Au脽erdem wurde eine von der FTC und mehreren Generalstaatsanw盲lten eingereichte Kartellklage wegen angeblich unlauterer Wettbewerbspraktiken in Bezug auf Reparaturzugang offengelegt; Auswirkungen lassen sich derzeit nicht beziffern.
- Declared quarterly dividend of $1.62 per share
- Maintains sizable committed liquidity: a 364-day $5.0 billion facility and two $3.25 billion facilities (2028 and 2030 expirations) plus commercial paper and securitizations
- Restricted assets of $331 million classified as Other assets, including securitization-related cash
- FTC and multiple state attorneys general filed an antitrust lawsuit alleging monopolization and unfair competition related to repair access; company cannot estimate impact
- Company expects lower sales volumes and higher incentives in 2025, plus elevated receivable write-offs and expected credit losses
- Impairment recorded related to batteries due to slowing external demand, indicating potential asset write-downs
Insights
TL;DR: Deere signals weaker equipment demand and elevated credit risk but retains sizable liquidity facilities and pays a $1.62 quarterly dividend.
Deere outlines a cautious revenue outlook driven by lower large-equipment demand in North America and mixed regional trends. Management anticipates lower sales volumes, higher sales incentives, and elevated receivable write-offs and credit losses, which could pressure margins and working capital. Liquidity appears supported by multiple credit facilities totaling at least $11.5 billion capacity (including a $5.0 billion 364-day facility and two $3.25 billion facilities) plus securitizations and commercial paper, which mitigates near-term funding risk. The dividend declaration signals continued capital return to shareholders despite operational headwinds.
TL;DR: The FTC and multiple states filed an antitrust suit alleging Deere restricted repair access; potential business impact is currently unknown.
The filing discloses a significant legal development: a lawsuit alleging monopolization and unfair competition to prevent independent repairs and access to repair tools. Plaintiffs seek injunctive and equitable relief. Management explicitly states it cannot estimate potential impact, signaling material legal uncertainty. If plaintiffs prevail or remedies are imposed, dealer/service economics, product support practices, and revenue streams tied to authorized service could be affected. This is a material governance and operational risk to monitor as litigation progresses.
Deere & Company ha fornito aggiornamenti operativi e di mercato per l'esercizio 2025, descrivendo pressioni sulla domanda, misure di liquidit脿 e rischi legali. L'azienda prevede una domanda ridotta per i grandi macchinari agricoli negli Stati Uniti e in Canada a causa dei tassi d'interesse elevati, dell'aumento dell'inventario di usato e dei prezzi pi霉 bassi delle materie prime; le vendite nel segmento della piccola agricoltura e in alcune aree geografiche potrebbero invece risultare stabili o in lieve aumento. La domanda di macchinari per edilizia e silvicoltura 猫 prevista in calo o stabile per via dei tassi pi霉 alti e di mercati immobiliari pi霉 deboli.
Il documento rivela la posizione finanziaria e gli strumenti di liquidit脿, tra cui commercial paper, debito a termine, cartolarizzazione di finanziamenti al dettaglio, una linea di credito a 364 giorni da 5,0 miliardi di dollari e linee da 3,25 miliardi con scadenze nel 2028 e nel 2030. L'azienda ha dichiarato un dividendo trimestrale di 1,62 $ per azione. Ha inoltre reso noto un procedimento antitrust avviato dalla FTC e da diversi procuratori generali statali che accusa pratiche anticoncorrenziali sull'accesso alle riparazioni, e ha affermato di non poter stimare l'impatto potenziale.
Deere & Company inform贸 actualizaciones operativas y de mercado para el a帽o fiscal 2025, describiendo presiones sobre la demanda, medidas de liquidez y riesgos legales. La empresa espera una menor demanda de equipos agr铆colas grandes en Estados Unidos y Canad谩 debido a las altas tasas de inter茅s, el incremento del inventario de usados y la ca铆da de los precios de las materias primas; las ventas de agricultura a peque帽a escala y en algunas regiones podr铆an mantenerse estables o aumentar ligeramente. Se pronostica que la demanda de equipos de construcci贸n y forestales estar谩 en descenso o estable, por las tasas m谩s altas y mercados inmobiliarios m谩s d茅biles.
El informe revela posiciones financieras y herramientas de liquidez, incluidos papeles comerciales, deuda a plazo, titulizaci贸n de cr茅ditos minoristas, una l铆nea de cr茅dito a 364 d铆as por 5.000 millones de d贸lares y facilidades por 3.250 millones con vencimientos en 2028 y 2030. La compa帽铆a declar贸 un dividendo trimestral de 1,62 $ por acci贸n. Tambi茅n divulg贸 una demanda antimonopolio presentada por la FTC y varios fiscales generales estatales que alega competencia desleal respecto al acceso a reparaciones, y se帽al贸 que no puede estimar el impacto potencial.
Deere & Company電� 2025 須岅硠鞐半弰鞐� 雽�頃� 鞖挫榿 氚� 鞁滌灔 鞐呺嵃鞚错姼毳� 氚滍憸頃橂┌ 靾橃殧 鞎曤牓, 鞙犽彊靹� 臁办箻 氚� 氩曥爜 鞙勴棙鞚� 靹る獏頄堨姷雼堧嫟. 須岇偓電� 雴掛潃 旮堧Μ, 欷戧碃 鞛碃 歃濌皜 氚� 鞗愳瀽鞛� 臧�瓴� 頃橂澖鞙茧 鞚疙暣 氙戈淡瓿� 旌愲倶雼れ棎靹� 雽�順� 雴嶊赴瓿� 靾橃殧臧� 臧愳唽頃� 瓴冹溂搿� 鞓堨儊頃橂┌, 靻岅窚氇� 雴嶌梾 韺愲Г鞕� 鞚茧秬 歆�鞐潃 鞙犾霅橁卑雮� 靻岉彮 歃濌皜頃� 靾� 鞛堧嫟瓿� 氪れ姷雼堧嫟. 瓯挫劋 氚� 鞛勳梾 鞛ル箘 靾橃殧電� 旮堧Μ 靸侅姽瓿� 攵�霃欖偘 鞁滌灔 鞎届劯搿� 臧愳唽頃橁卑雮� 氤错暕靹鸽ゼ 氤挫澕 瓴冹溂搿� 鞓堨儊霅╇媹雼�.
瓿奠嫓鞐愲姅 靸侅梾鞏挫潓, 旮绊暅攵� 毂勲, 靻岆Г毂勱秾 鞙犽彊頇�, 364鞚� 50鞏� 雼煬 鞁犾毄頃滊弰 氚� 2028雲勱臣 2030雲勳棎 毵岅赴鞚� 32.5鞏� 雼煬 鞁滌劋 霌� 鞛 靸來儨鞕� 鞙犽彊靹� 靾橂嫧鞚� 韽暔霅橃柎 鞛堨姷雼堧嫟. 須岇偓電� 攵勱赴 氚半嫻旮堨溂搿� 欤茧嫻 1.62雼煬毳� 靹犾柛頄堨姷雼堧嫟. 霕愴暅 靾橂Μ 鞝戧芳靹� 甏�霠� 攵堦车鞝� 瓴届焷鞚� 欤检灔頃橂姅 FTC鞕� 鞐煬 欤� 瓴�彀办礉鞛レ澊 鞝滉赴頃� 霃呾爯旮堨 靻岇啞鞚� 瓿店皽頄堨溂氅� 鞛犾灛鞝� 鞓來枼鞚� 於旍爼頃� 靾� 鞐嗠嫟瓿� 氚濏様鞀惦媹雼�.
Deere & Company a publi茅 des mises 脿 jour op茅rationnelles et de march茅 pour l'exercice 2025, d茅crivant des tensions sur la demande, des mesures de liquidit茅 et des risques juridiques. La soci茅t茅 pr茅voit une baisse de la demande pour les gros 茅quipements agricoles aux 脡tats-Unis et au Canada en raison des taux d'int茅r锚t 茅lev茅s, de l'augmentation des stocks d'occasion et de la baisse des prix des mati猫res premi猫res ; les ventes dans le petit secteur agricole et dans certaines r茅gions pourraient toutefois 锚tre stables ou l茅g猫rement en hausse. La demande pour les 茅quipements de construction et forestiers devrait 锚tre en baisse ou stable, en raison de taux plus 茅lev茅s et de march茅s immobiliers plus faibles.
Le d茅p么t divulgue la situation financi猫re et les instruments de liquidit茅, notamment les billets de tr茅sorerie, la dette 脿 terme, la titrisation des cr茅ances de d茅tail, une facilit茅 de cr茅dit 脿 364 jours de 5,0 milliards de dollars et des facilit茅s de 3,25 milliards arrivant 脿 茅ch茅ance en 2028 et 2030. La soci茅t茅 a d茅clar茅 un dividende trimestriel de 1,62 $ par action. Elle a 茅galement divulgu茅 un proc猫s antitrust intent茅 par la FTC et plusieurs procureurs g茅n茅raux d'脡tat all茅guant une concurrence d茅loyale concernant l'acc猫s aux r茅parations, et a indiqu茅 qu'elle ne peut estimer l'impact potentiel.
Deere & Company meldete Betriebs- und Marktaktualisierungen f眉r das Gesch盲ftsjahr 2025 und beschrieb dabei Nachfragedruck, Liquidit盲tsma脽nahmen und rechtliche Risiken. Das Unternehmen erwartet aufgrund hoher Zinss盲tze, erh枚hter Gebrauchtbest盲nde und niedrigerer Rohstoffpreise eine geringere Nachfrage nach gro脽en Landmaschinen in den USA und Kanada, w盲hrend Verk盲ufe im Kleinlandbau und in einigen Regionen stabil bis leicht steigend ausfallen k枚nnten. Die Nachfrage nach Bau- und Forstmaschinen wird angesichts h枚herer Zinsen und schw盲cherer Immobilienm盲rkte voraussichtlich r眉ckl盲ufig oder stabil sein.
Die Einreichung legt die finanzielle Lage und Liquidit盲tsinstrumente offen, darunter Commercial Paper, Termingeldverbindlichkeiten, Verbriefung von Einzelhandelsforderungen, eine 364-Tage-Kreditlinie 眉ber 5,0 Milliarden US-Dollar sowie Kreditfazilit盲ten 眉ber 3,25 Milliarden US-Dollar mit F盲lligkeiten 2028 und 2030. Das Unternehmen erkl盲rte eine Quartalsdividende von 1,62 $ je Aktie. Au脽erdem wurde eine von der FTC und mehreren Generalstaatsanw盲lten eingereichte Kartellklage wegen angeblich unlauterer Wettbewerbspraktiken in Bezug auf Reparaturzugang offengelegt; Auswirkungen lassen sich derzeit nicht beziffern.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
(Mark One)
For the quarterly period ended
or
For the transition period from ____ to ____
Commission File Number:
(Exact name of registrant as specified in its charter)
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(Address of principal executive offices, zip code)
Registrant’s Telephone Number, including area code: (
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbols | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☒ | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | |
Emerging growth company | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
At July 27, 2025,
PART I. FINANCIAL INFORMATION
Item 1.FINANCIAL STATEMENTS
DEERE & COMPANY | |||||||||||||
STATEMENTS OF CONSOLIDATED INCOME | |||||||||||||
For the Three and Nine Months Ended July 27, 2025 and July 28, 2024 | |||||||||||||
(In millions of dollars and shares except per share amounts) Unaudited | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
| 2025 |
| 2024 |
| 2025 |
| 2024 |
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Net Sales and Revenues | |||||||||||||
Net sales |
| $ | $ |
| $ | $ | |||||||
Finance and interest income |
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Other income |
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Total |
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Costs and Expenses | |||||||||||||
Cost of sales |
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Research and development expenses |
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Selling, administrative and general expenses |
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Interest expense |
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Other operating expenses |
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Total |
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Income of Consolidated Group before Income Taxes |
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Provision for income taxes |
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Income of Consolidated Group |
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Equity in income of unconsolidated affiliates |
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Net Income |
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Less: Net loss attributable to noncontrolling interests | ( |
| ( | ( |
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Net Income Attributable to Deere & Company |
| $ | $ |
| $ | $ | |||||||
Per Share Data | |||||||||||||
Basic |
| $ | $ |
| $ | $ | |||||||
Diluted |
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Dividends declared | |||||||||||||
Dividends paid | |||||||||||||
Average Shares Outstanding | |||||||||||||
Basic |
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Diluted |
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See Condensed Notes to Interim Consolidated Financial Statements.
2
DEERE & COMPANY | |||||||||||||
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME | |||||||||||||
For the Three and Nine Months Ended July 27, 2025 and July 28, 2024 | |||||||||||||
(In millions of dollars) Unaudited | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
| 2025 |
| 2024 |
| 2025 |
| 2024 |
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Net Income |
| $ | $ |
| $ | $ | |||||||
Other Comprehensive Income (Loss), Net of Income Taxes | |||||||||||||
Retirement benefits adjustment | ( |
| ( | ( |
| ( | |||||||
Cumulative translation adjustment |
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Unrealized gain (loss) on derivatives |
| ( | ( |
| ( | ||||||||
Unrealized gain on debt securities |
|
| |||||||||||
Other Comprehensive Income (Loss), Net of Income Taxes |
| ( |
| ( | |||||||||
Comprehensive Income |
|
| |||||||||||
Less: Comprehensive loss attributable to noncontrolling interests | ( |
| ( | ( |
| ( | |||||||
Comprehensive Income Attributable to Deere & Company |
| $ | $ |
| $ | $ | |||||||
See Condensed Notes to Interim Consolidated Financial Statements.
3
DEERE & COMPANY | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(In millions of dollars) Unaudited | ||||||||||
| July 27 |
| October 27 |
| July 28 |
| ||||
2025 | 2024 | 2024 |
| |||||||
Assets | ||||||||||
Cash and cash equivalents |
| $ | $ | $ | ||||||
Marketable securities |
|
| ||||||||
Trade accounts and notes receivable – net |
|
| ||||||||
Financing receivables – net |
|
| ||||||||
|
| |||||||||
Other receivables |
|
| ||||||||
Equipment on operating leases – net |
|
| ||||||||
Inventories |
|
| ||||||||
Property and equipment – net |
|
| ||||||||
Goodwill |
|
| ||||||||
Other intangible assets – net |
|
| ||||||||
Retirement benefits |
|
| ||||||||
Deferred income taxes |
|
| ||||||||
Other assets |
|
| ||||||||
Assets held for sale |
|
| ||||||||
Total Assets |
| $ | $ | $ | ||||||
Liabilities and Stockholders’ Equity | ||||||||||
Liabilities | ||||||||||
Short-term borrowings | $ | $ | $ | |||||||
Short-term securitization borrowings |
|
| ||||||||
Accounts payable and accrued expenses |
|
| ||||||||
Deferred income taxes |
|
| ||||||||
Long-term borrowings |
|
| ||||||||
Retirement benefits and other liabilities |
|
| ||||||||
Liabilities held for sale |
|
| ||||||||
Total liabilities |
|
| ||||||||
Commitments and contingencies (Note 16) | ||||||||||
Redeemable noncontrolling interest | ||||||||||
Stockholders’ Equity | ||||||||||
Common stock, $ |
|
| ||||||||
Common stock in treasury | ( |
| ( |
| ( | |||||
Retained earnings |
|
| ||||||||
Accumulated other comprehensive income (loss) | ( |
| ( |
| ( | |||||
Total Deere & Company stockholders’ equity |
|
| ||||||||
Noncontrolling interests |
|
| ||||||||
Total stockholders’ equity |
|
| ||||||||
Total Liabilities and Stockholders’ Equity | $ | $ | $ | |||||||
See Condensed Notes to Interim Consolidated Financial Statements.
4
DEERE & COMPANY | |||||||
STATEMENTS OF CONSOLIDATED CASH FLOWS | |||||||
For the Nine Months Ended July 27, 2025 and July 28, 2024 | |||||||
(In millions of dollars) Unaudited | |||||||
| 2025 |
| 2024 |
| |||
Cash Flows from Operating Activities |
|
| |||||
Net income |
| $ | $ | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for credit losses |
| ||||||
Provision for depreciation and amortization |
| ||||||
Impairments and other adjustments |
| ||||||
Share-based compensation expense |
| ||||||
Credit for deferred income taxes | ( |
| ( | ||||
Changes in assets and liabilities: | |||||||
Receivables related to sales | ( |
| ( | ||||
Inventories | ( |
| |||||
Accounts payable and accrued expenses | ( |
| ( | ||||
Accrued income taxes payable/receivable | ( |
| |||||
Retirement benefits | ( |
| ( | ||||
Other |
| ( | |||||
Net cash provided by operating activities |
| ||||||
Cash Flows from Investing Activities | |||||||
Collections of receivables (excluding receivables related to sales) |
| ||||||
Proceeds from maturities and sales of marketable securities |
| ||||||
Proceeds from sales of equipment on operating leases |
| ||||||
Cost of receivables acquired (excluding receivables related to sales) | ( |
| ( | ||||
Acquisitions of businesses, net of cash acquired | ( |
|
| ||||
Purchases of marketable securities | ( |
| ( | ||||
Purchases of property and equipment | ( |
| ( | ||||
Cost of equipment on operating leases acquired | ( |
| ( | ||||
Collections of receivables from unconsolidated affiliates |
|
| |||||
Collateral on derivatives – net | |||||||
Other | ( |
| ( | ||||
Net cash used for investing activities | ( |
| ( | ||||
Cash Flows from Financing Activities | |||||||
Net payments in short-term borrowings (original maturities three months or less) | ( |
| ( | ||||
Proceeds from borrowings issued (original maturities greater than three months) |
| ||||||
Payments of borrowings (original maturities greater than three months) | ( |
| ( | ||||
Repurchases of common stock | ( |
| ( | ||||
Dividends paid | ( |
| ( | ||||
Other | ( |
| ( | ||||
Net cash used for financing activities | ( |
| ( | ||||
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash |
| ( | |||||
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | ( | ||||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period |
| ||||||
Cash, Cash Equivalents, and Restricted Cash at End of Period | $ | $ | |||||
Components of Cash, Cash Equivalents, and Restricted Cash | |||||||
Cash and cash equivalents | $ | $ | |||||
Cash, cash equivalents, and restricted cash (Assets held for sale) | |||||||
Total Cash, Cash Equivalents, and Restricted Cash | $ | $ | |||||
See Condensed Notes to Interim Consolidated Financial Statements.
5
DEERE & COMPANY | |||||||||||||||||||||||
STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||
For the Three and Nine Months Ended July 27, 2025 and July 28, 2024 | |||||||||||||||||||||||
(In millions of dollars) Unaudited | |||||||||||||||||||||||
Total Stockholders’ Equity | |||||||||||||||||||||||
Deere & Company Stockholders |
| ||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||
Total | Other | Redeemable | |||||||||||||||||||||
Stockholders’ | Common | Treasury | Retained | Comprehensive | Noncontrolling | Noncontrolling | |||||||||||||||||
| Equity |
| Stock |
| Stock |
| Earnings |
| Income (Loss) |
| Interests |
|
| Interest | |||||||||
Three Months Ended July 28, 2024 | |||||||||||||||||||||||
Balance April 28, 2024 |
| $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||
Net income (loss) |
|
| ( | ||||||||||||||||||||
Other comprehensive loss |
| ( | ( |
|
| ||||||||||||||||||
Repurchases of common stock |
| ( | ( | ||||||||||||||||||||
Treasury shares reissued |
| ||||||||||||||||||||||
Dividends declared |
| ( | ( | ( |
| ||||||||||||||||||
Noncontrolling interest redemption (Note 21) | ( | ||||||||||||||||||||||
Share based awards and other |
|
|
| ( | |||||||||||||||||||
Balance July 28, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||
Nine Months Ended July 28, 2024 |
|
| |||||||||||||||||||||
Balance October 29, 2023 |
| $ | $ | $ | ( | $ | $ | ( | $ | $ |
| ||||||||||||
Net income (loss) |
| ( | |||||||||||||||||||||
Other comprehensive income (loss) |
| ( | ( |
| |||||||||||||||||||
Repurchases of common stock |
| ( | ( | ||||||||||||||||||||
Treasury shares reissued |
| ||||||||||||||||||||||
Dividends declared |
| ( | ( | ( |
| ||||||||||||||||||
Noncontrolling interest redemption (Note 21) | ( | ||||||||||||||||||||||
Share based awards and other |
| ( |
| ||||||||||||||||||||
Balance July 28, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||
|
| ||||||||||||||||||||||
Three Months Ended July 27, 2025 | |||||||||||||||||||||||
Balance April 27, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||
Net income (loss) | ( | ||||||||||||||||||||||
Other comprehensive income |
| ||||||||||||||||||||||
Repurchases of common stock | ( | ( | |||||||||||||||||||||
Treasury shares reissued | |||||||||||||||||||||||
Dividends declared | ( | ( |
|
| |||||||||||||||||||
Share based awards and other | ( | ( | |||||||||||||||||||||
Balance July 27, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||
Nine Months Ended July 27, 2025 | |||||||||||||||||||||||
Balance October 27, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||
Net income (loss) | ( | ||||||||||||||||||||||
Other comprehensive income |
| ||||||||||||||||||||||
Repurchases of common stock | ( | ( | |||||||||||||||||||||
Treasury shares reissued | |||||||||||||||||||||||
Dividends declared | ( | ( |
|
| |||||||||||||||||||
Share based awards and other | ( | ( | |||||||||||||||||||||
Balance July 27, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||
See Condensed Notes to Interim Consolidated Financial Statements.
6
Condensed Notes to Interim Consolidated Financial Statements (Unaudited)
(1) Organization and Consolidation
Deere & Company has been developing innovative solutions to help its customers become more profitable for more than 185 years. References to “Deere & Company,” “John Deere,” “we,” “us,” or “our” include our consolidated subsidiaries. We manage our business through the following operating segments: production and precision agriculture (PPA), small agriculture and turf (SAT), construction and forestry (CF), and financial services (John Deere Financial or FS). References to “agriculture and turf” include both PPA and SAT.
We use a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period. The third quarter ends for fiscal years 2025 and 2024 were July 27, 2025 and July 28, 2024, respectively. Both quarters contained
All amounts are presented in millions of dollars unless otherwise specified. Certain prior period amounts have been reclassified to conform to current period presentation.
Variable Interest Entity
We have a
Financial results of BJD are reported in “Equity in income of unconsolidated affiliates.” The related investment in unconsolidated affiliates is included in “Other assets” on the condensed consolidated balance sheets, while short-term and long-term funding is recorded in receivables from unconsolidated affiliates and included in “Other receivables.”
Our carrying value of receivables from and investments in BJD and maximum exposure to loss at July 27, 2025 follows:
July 27 | ||||
2025 | ||||
Receivables from unconsolidated affiliates – "Other receivables" | $ | |||
Investments in unconsolidated affiliates – "Other assets" | ||||
Carrying value of assets related to VIE | ||||
Guarantees | ||||
Maximum exposure to loss | $ | |||
Guarantees primarily include BJD debt related to government funding that existed prior to the deconsolidation of BJD, and no contractual liability is recorded by us on our condensed consolidated balance sheets. The maximum exposure to loss is not an indication of our expected loss exposure.
(2) Summary of Significant Accounting Policies and New Accounting PROnouncements
Quarterly Financial Statements
The interim consolidated financial statements of Deere & Company have been prepared by us, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been condensed or omitted as permitted by such rules and regulations. All normal recurring adjustments have been included. Management believes the disclosures are adequate to present fairly the financial position, results of operations, and cash flows at the dates and for the periods presented. It is suggested these interim consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto appearing in our latest Annual Report on Form 10-K. Results for interim periods are not necessarily indicative of those to be expected for the fiscal year.
Use of Estimates in Financial Statements
Certain accounting policies require management to make estimates and assumptions in determining the amounts reflected in the financial statements and related disclosures. Actual results could differ from those estimates.
7
New Accounting Pronouncements Adopted
We closely monitor all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) and other authoritative guidance. We adopted the following standards in 2025, none of which had a material effect on our consolidated financial statements.
No. | |
No. |
Accounting Pronouncements to be Adopted
In July 2025, the FASB issued ASU
In November 2024, the FASB issued ASU
In December 2023, the FASB issued
We will also adopt the following standards in future periods, none of which are expected to have a material effect on our consolidated financial statements.
No. | |
No. | |
No. |
8
(3) Revenue Recognition
Our net sales and revenues by primary geographic market, major product line, and timing of revenue recognition follow:
Three Months Ended July 27, 2025 | ||||||||||||||||
| PPA |
| SAT |
| CF |
| FS |
| Total | |||||||
Primary geographic markets: |
|
| ||||||||||||||
United States | $ | $ | $ | $ | $ | |||||||||||
Canada |
|
| ||||||||||||||
Western Europe |
|
| ||||||||||||||
Central Europe and CIS |
|
| ||||||||||||||
Latin America |
|
| ||||||||||||||
Asia, Africa, Oceania, and Middle East | ||||||||||||||||
Total | $ | $ | $ | $ | $ | |||||||||||
Major product lines: |
|
| ||||||||||||||
Production agriculture | $ |
|
|
| $ | |||||||||||
Small agriculture |
| $ |
|
|
|
| ||||||||||
Turf |
|
|
|
|
| |||||||||||
Construction |
|
| $ |
|
|
| ||||||||||
Compact construction |
|
|
| |||||||||||||
Roadbuilding |
|
|
|
|
| |||||||||||
Forestry |
|
|
|
|
| |||||||||||
Financial products | $ |
| ||||||||||||||
Other |
|
|
| |||||||||||||
Total | $ | $ | $ | $ | $ | |||||||||||
Revenue recognized: |
|
| ||||||||||||||
At a point in time | $ | $ | $ | $ | $ | |||||||||||
Over time | ||||||||||||||||
Total | $ | $ | $ | $ | $ | |||||||||||
| Nine Months Ended July 27, 2025 | |||||||||||||||
PPA |
| SAT |
| CF |
| FS |
| Total | ||||||||
Primary geographic markets: | ||||||||||||||||
United States | $ | $ | $ | $ | $ | |||||||||||
Canada |
|
| ||||||||||||||
Western Europe |
|
| ||||||||||||||
Central Europe and CIS |
|
| ||||||||||||||
Latin America |
|
| ||||||||||||||
Asia, Africa, Oceania, and Middle East | ||||||||||||||||
Total | $ | $ | $ | $ | $ | |||||||||||
Major product lines: |
|
| ||||||||||||||
Production agriculture | $ |
|
|
| $ | |||||||||||
Small agriculture |
| $ |
|
|
|
| ||||||||||
Turf |
|
|
|
|
| |||||||||||
Construction |
|
| $ |
|
|
| ||||||||||
Compact construction |
|
|
| |||||||||||||
Roadbuilding |
|
|
|
|
| |||||||||||
Forestry |
|
|
|
| ||||||||||||
Financial products | $ |
| ||||||||||||||
Other |
|
|
| |||||||||||||
Total | $ | $ | $ | $ | $ | |||||||||||
Revenue recognized: |
|
| ||||||||||||||
At a point in time | $ | $ | $ | $ | $ | |||||||||||
Over time | ||||||||||||||||
Total | $ | $ | $ | $ | $ | |||||||||||
9
Three Months Ended July 28, 2024 | ||||||||||||||||
| PPA |
| SAT |
| CF |
| FS |
| Total | |||||||
Primary geographic markets: |
|
| ||||||||||||||
United States | $ | $ | $ | $ | $ | |||||||||||
Canada |
|
| ||||||||||||||
Western Europe |
| |||||||||||||||
Central Europe and CIS |
| |||||||||||||||
Latin America |
| |||||||||||||||
Asia, Africa, Oceania, and Middle East | ||||||||||||||||
Total | $ | $ | $ | $ | $ | |||||||||||
Major product lines: |
|
| ||||||||||||||
Production agriculture | $ |
|
| $ | ||||||||||||
Small agriculture | $ |
|
|
|
| |||||||||||
Turf |
|
|
|
| ||||||||||||
Construction |
| $ |
|
|
| |||||||||||
Compact construction |
|
| ||||||||||||||
Roadbuilding |
|
|
|
| ||||||||||||
Forestry |
|
|
|
| ||||||||||||
Financial products | $ |
| ||||||||||||||
Other |
|
|
| |||||||||||||
Total | $ | $ | $ | $ | $ | |||||||||||
Revenue recognized: |
|
| ||||||||||||||
At a point in time | $ | $ | $ | $ | $ | |||||||||||
Over time | ||||||||||||||||
Total | $ | $ | $ | $ | $ | |||||||||||
Nine Months Ended July 28, 2024 | ||||||||||||||||
| PPA |
| SAT |
| CF |
| FS |
| Total | |||||||
Primary geographic markets: | ||||||||||||||||
United States | $ | $ | $ | $ | $ | |||||||||||
Canada |
| |||||||||||||||
Western Europe |
| |||||||||||||||
Central Europe and CIS |
| |||||||||||||||
Latin America |
| |||||||||||||||
Asia, Africa, Oceania, and Middle East | ||||||||||||||||
Total | $ | $ | $ | $ | $ | |||||||||||
Major product lines: |
|
| ||||||||||||||
Production agriculture | $ |
|
|
| $ | |||||||||||
Small agriculture |
| $ |
|
|
| |||||||||||
Turf |
|
|
|
| ||||||||||||
Construction |
|
| $ |
|
| |||||||||||
Compact construction |
|
|
| |||||||||||||
Roadbuilding |
|
|
|
| ||||||||||||
Forestry |
|
|
|
| ||||||||||||
Financial products | $ |
| ||||||||||||||
Other |
|
| ||||||||||||||
Total | $ | $ | $ | $ | $ | |||||||||||
Revenue recognized: |
|
| ||||||||||||||
At a point in time | $ | $ | $ | $ | $ | |||||||||||
Over time | ||||||||||||||||
Total | $ | $ | $ | $ | $ | |||||||||||
10
We invoice in advance of recognizing the revenue of certain products and services. These relate to extended warranty premiums, advance payments for future equipment sales, and subscription and service revenue related to precision guidance, telematic services, and other information-enabled solutions. These advanced customer payments are presented as deferred revenue, a contract liability, in “Accounts payable and accrued expenses.” The deferred revenue received, but not recognized in revenue was $
The amount of unsatisfied performance obligations for contracts with an original duration greater than one year was $
(4) Other Comprehensive Income Items
The after-tax components of accumulated other comprehensive income (loss) follow:
July 27 | October 27 | July 28 | ||||||||
2025 | 2024 | 2024 | ||||||||
Retirement benefits adjustment | $ | ( | $ | ( | $ | ( | ||||
Cumulative translation adjustment | ( | ( | ( | |||||||
Unrealized gain (loss) on derivatives | ( | ( | ( | |||||||
Unrealized gain (loss) on debt securities | ( | ( | ( | |||||||
Accumulated other comprehensive income (loss) | $ | ( | $ | ( | $ | ( | ||||
The following tables reflect amounts recorded in other comprehensive income (loss), as well as reclassifications out of other comprehensive income (loss).
| Before |
| Tax |
| After |
| ||||
Tax | (Expense) | Tax |
| |||||||
Three Months Ended July 27, 2025 | Amount | Credit | Amount |
| ||||||
Cumulative translation adjustment |
| $ |
| $ | ( |
| $ | |||
Unrealized gain (loss) on interest rate derivatives: | ||||||||||
Unrealized hedging gain (loss) | ( | |||||||||
Reclassification of realized (gain) loss to Interest expense | ( | |||||||||
Net unrealized gain (loss) on derivatives | ( | |||||||||
Unrealized gain (loss) on debt securities: | ||||||||||
Unrealized holding gain (loss) | ( | |||||||||
Reclassification of realized (gain) loss to Other income | ( |
| ||||||||
Net unrealized gain (loss) on debt securities | ( | |||||||||
Retirement benefits adjustment: | ||||||||||
Net actuarial gain (loss) | ( | ( | ||||||||
Reclassification to Other operating expenses through amortization of: | ||||||||||
Actuarial (gain) loss | ( | ( | ||||||||
Prior service (credit) cost | ( | |||||||||
Settlements/curtailment | ( | |||||||||
Net unrealized gain (loss) on retirement benefits adjustment | ( | ( | ||||||||
Total other comprehensive income (loss) |
| $ | $ | $ | ||||||
11
| Before |
| Tax |
| After |
| ||||
Tax | (Expense) | Tax |
| |||||||
Nine Months Ended July 27, 2025 | Amount | Credit | Amount |
| ||||||
Cumulative translation adjustment |
| $ |
| $ | ( |
| $ | |||
Unrealized gain (loss) on interest rate derivatives: | ||||||||||
Unrealized hedging gain (loss) |
| |||||||||
Reclassification of realized (gain) loss to Interest expense | ( | ( | ||||||||
Net unrealized gain (loss) on derivatives | ( | ( | ||||||||
Unrealized gain (loss) on debt securities: | ||||||||||
Unrealized holding gain (loss) | ( | |||||||||
Reclassification of realized (gain) loss to Other income | ( | |||||||||
Net unrealized gain (loss) on debt securities | ( | |||||||||
Retirement benefits adjustment: | ||||||||||
Net actuarial gain (loss) | ( | ( | ||||||||
Reclassification to Other operating expenses through amortization of: | ||||||||||
Actuarial (gain) loss | ( | ( | ||||||||
Prior service (credit) cost | ( | |||||||||
Settlements/curtailment | ( | |||||||||
Net unrealized gain (loss) on retirement benefits adjustment | ( | ( | ||||||||
Total other comprehensive income (loss) |
| $ | $ | ( | $ | |||||
| Before |
| Tax |
| After |
| ||||
Tax | (Expense) | Tax |
| |||||||
Three Months Ended July 28, 2024 | Amount | Credit | Amount |
| ||||||
Cumulative translation adjustment |
| $ | ( |
|
|
| $ | ( | ||
Unrealized gain (loss) on interest rate derivatives: | ||||||||||
Unrealized hedging gain (loss) | ( | $ | ( | |||||||
Reclassification of realized (gain) loss to Interest expense | ( | ( | ||||||||
Net unrealized gain (loss) on derivatives | ( | ( | ||||||||
Unrealized gain (loss) on debt securities: | ||||||||||
Unrealized holding gain (loss) | ( | |||||||||
Net unrealized gain (loss) on debt securities | ( | |||||||||
Retirement benefits adjustment: | ||||||||||
Net actuarial gain (loss) | ( | ( | ||||||||
Reclassification to Other operating expenses through amortization of: |
| |||||||||
Actuarial (gain) loss | ( | ( | ||||||||
Prior service (credit) cost | ( | |||||||||
Settlements | ( |
| ||||||||
Net unrealized gain (loss) on retirement benefits adjustment | ( | ( | ||||||||
Total other comprehensive income (loss) |
| $ | ( | $ | $ | ( | ||||
12
| Before |
| Tax |
| After |
| ||||
Tax | (Expense) | Tax |
| |||||||
Nine Months Ended July 28, 2024 | Amount | Credit | Amount |
| ||||||
Cumulative translation adjustment |
| $ | ( |
| $ |
| $ | ( | ||
Unrealized gain (loss) on interest rate derivatives: | ||||||||||
Unrealized hedging gain (loss) |
| |||||||||
Reclassification of realized (gain) loss to Interest expense | ( | ( | ||||||||
Net unrealized gain (loss) on derivatives | ( | ( | ||||||||
Unrealized gain (loss) on debt securities: | ||||||||||
Unrealized holding gain (loss) | ||||||||||
Reclassification of realized (gain) loss to Other income | ( | |||||||||
Net unrealized gain (loss) on debt securities | ( | |||||||||
Retirement benefits adjustment: | ||||||||||
Net actuarial gain (loss) | ( | ( | ||||||||
Reclassification to Other operating expenses through amortization of: |
| |||||||||
Actuarial (gain) loss | ( | ( | ||||||||
Prior service (credit) cost | ( | |||||||||
Settlements | ( | |||||||||
Net unrealized gain (loss) on retirement benefits adjustment | ( | ( | ||||||||
Total other comprehensive income (loss) |
| $ | ( | $ | $ | ( | ||||
(5) Earnings Per Share
A reconciliation of basic and diluted net income per share attributable to Deere & Company follows in millions, except per share amounts:
| Three Months Ended | Nine Months Ended |
| ||||||||||
July 27 | July 28 | July 27 | July 28 |
| |||||||||
2025 | 2024 | 2025 | 2024 |
| |||||||||
Net income attributable to Deere & Company |
| $ |
| $ |
| $ |
| $ | |||||
Average shares outstanding |
|
| |||||||||||
Basic per share | $ | $ | $ | $ | |||||||||
Average shares outstanding |
|
| |||||||||||
Effect of dilutive stock options and unvested restricted stock units |
|
| |||||||||||
Total potential shares outstanding |
|
| |||||||||||
Diluted per share | $ | $ | $ | $ | |||||||||
Shares excluded from EPS calculation, as antidilutive | |||||||||||||
13
(6) Pension and Other Postretirement Benefits
We have several funded and unfunded defined benefit pension plans and other postretirement benefit (OPEB) plans. These plans cover U.S. employees and certain foreign employees.
Three Months Ended | Nine Months Ended |
| |||||||||||
July 27 | July 28 | July 27 | July 28 |
| |||||||||
2025 | 2024 | 2025 | 2024 |
| |||||||||
Pensions: | |||||||||||||
Service cost |
| $ |
| $ |
| $ |
| $ | |||||
|
| ||||||||||||
( |
| ( | ( |
| ( | ||||||||
( |
| ( | ( |
| ( | ||||||||
|
| ||||||||||||
|
| ||||||||||||
Net benefit | $ | ( | $ | ( | $ | ( | $ | ( | |||||
OPEB: | |||||||||||||
Service cost |
| $ |
| $ |
| $ |
| $ | |||||
|
| ||||||||||||
( |
| ( | ( |
| ( | ||||||||
( |
| ( | ( |
| ( | ||||||||
( |
| ( | ( |
| ( | ||||||||
Net cost | $ | $ | $ | $ | |||||||||
The components of net periodic pension and OPEB (benefit) cost excluding the service cost component are included in the line item “Other operating expenses.”
During the first nine months of 2025, we contributed and expect to contribute the following amounts to our pension and OPEB plans:
Pensions | OPEB | ||||||
Contributed |
| $ |
| $ |
| ||
Expected contributions remainder of the year |
| ||||||
14
(7) Segment DATA
Information relating to operations by operating segment follows:
Three Months Ended | Nine Months Ended |
| |||||||||||||||
| July 27 | July 28 | % | July 27 | July 28 | % |
| ||||||||||
2025 | 2024 | Change | 2025 | 2024 | Change |
| |||||||||||
Net sales and revenues |
|
|
|
|
|
|
|
|
|
|
| ||||||
PPA net sales |
| $ | $ | - |
| $ | $ | - | |||||||||
SAT net sales | - | - | |||||||||||||||
CF net sales |
| - |
| - | |||||||||||||
FS revenues |
| - |
|
| |||||||||||||
Other revenues |
| - |
| - | |||||||||||||
Total net sales and revenues |
| $ | $ | - |
| $ | $ | - | |||||||||
Operating profit | |||||||||||||||||
PPA |
| $ | $ | - |
| $ | $ | - | |||||||||
SAT | - | - | |||||||||||||||
CF |
| - |
| - | |||||||||||||
FS |
| + |
| + | |||||||||||||
Total operating profit |
| - |
| - | |||||||||||||
Reconciling items |
| - |
| + | |||||||||||||
Income taxes | ( |
| ( | - | ( |
| ( | - | |||||||||
Net income attributable to Deere & Company |
| $ | $ | - |
| $ | $ | - | |||||||||
Intersegment sales and revenues: | |||||||||||||||||
PPA net sales |
|
| $ |
|
| $ | |||||||||||
SAT net sales |
|
|
| ||||||||||||||
CF net sales |
|
|
|
|
| ||||||||||||
FS revenues | $ |
| - | $ |
| - | |||||||||||
Operating profit for PPA, SAT, and CF is income from continuing operations before corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit of financial services includes the effect of interest expense and foreign exchange gains and losses. Reconciling items to net income are primarily corporate expenses, certain interest income and expenses, certain foreign exchange gains and losses, pension and OPEB benefit (cost) amounts excluding the service cost component, and net income attributable to noncontrolling interests.
Identifiable operating assets were as follows:
| July 27 |
| October 27 | July 28 |
| |||||
2025 | 2024 | 2024 |
| |||||||
PPA |
| $ | $ | $ | ||||||
SAT | ||||||||||
CF |
|
| ||||||||
FS |
|
| ||||||||
Corporate |
|
| ||||||||
Total assets |
| $ | $ | $ | ||||||
(8)
We monitor the credit quality of financing receivables based on delinquency status, defined as follows:
| ● | Past due balances represent any payments |
| ● | Non-performing financing receivables represent receivables for which we have stopped accruing finance income. This generally occurs when receivables are |
| ● | Write-offs generally occur when receivables are |
15
The credit quality and aging analysis of retail notes, financing leases, and revolving charge accounts (collectively, retail customer receivables) by year of origination was as follows:
July 27, 2025 | |||||||||||||||||||||||||
2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving Charge Accounts | Total | ||||||||||||||||||
Retail customer receivables: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Agriculture and turf | |||||||||||||||||||||||||
Current | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||
30-59 days past due | |||||||||||||||||||||||||
60-89 days past due | |||||||||||||||||||||||||
90+ days past due |
|
|
| ||||||||||||||||||||||
Non-performing | |||||||||||||||||||||||||
Construction and forestry | |||||||||||||||||||||||||
Current | |||||||||||||||||||||||||
30-59 days past due | |||||||||||||||||||||||||
60-89 days past due | |||||||||||||||||||||||||
90+ days past due |
|
|
|
| |||||||||||||||||||||
Non-performing | |||||||||||||||||||||||||
Total retail customer receivables | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Write-offs for the nine months ended July 27, 2025: | |||||||||||||||||||||||||
Agriculture and turf | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Construction and forestry | |||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||
October 27, 2024 | |||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Charge Accounts | Total | ||||||||||||||||||
Retail customer receivables: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Agriculture and turf | |||||||||||||||||||||||||
Current | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||
30-59 days past due | |||||||||||||||||||||||||
60-89 days past due | |||||||||||||||||||||||||
90+ days past due |
|
|
| ||||||||||||||||||||||
Non-performing | |||||||||||||||||||||||||
Construction and forestry | |||||||||||||||||||||||||
Current | |||||||||||||||||||||||||
30-59 days past due | |||||||||||||||||||||||||
60-89 days past due |
| ||||||||||||||||||||||||
90+ days past due |
|
|
| ||||||||||||||||||||||
Non-performing | |||||||||||||||||||||||||
Total retail customer receivables | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Write-offs for the twelve months ended October 27, 2024: | |||||||||||||||||||||||||
Agriculture and turf | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Construction and forestry | |||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||
16
July 28, 2024 | |||||||||||||||||||||||||
2024 | 2023 | 2022 | 2021 | 2020 | Prior | Revolving Charge Accounts | Total | ||||||||||||||||||
Retail customer receivables: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Agriculture and turf | |||||||||||||||||||||||||
Current | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||
30-59 days past due | |||||||||||||||||||||||||
60-89 days past due | |||||||||||||||||||||||||
90+ days past due |
|
|
| ||||||||||||||||||||||
Non-performing | |||||||||||||||||||||||||
Construction and forestry | |||||||||||||||||||||||||
Current | |||||||||||||||||||||||||
30-59 days past due | |||||||||||||||||||||||||
60-89 days past due | |||||||||||||||||||||||||
90+ days past due |
|
| |||||||||||||||||||||||
Non-performing | |||||||||||||||||||||||||
Total retail customer receivables | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Write-offs for the nine months ended July 28, 2024: | |||||||||||||||||||||||||
Agriculture and turf | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Construction and forestry | |||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||
The credit quality and aging analysis of wholesale receivables was as follows:
July 27 |
| October 27 |
| July 28 |
| |||||
2025 | 2024 | 2024 | ||||||||
Wholesale receivables: |
|
|
| |||||||
Agriculture and turf | ||||||||||
Current | $ | $ | $ | |||||||
30+ days past due |
|
| ||||||||
Non-performing | ||||||||||
Construction and forestry | ||||||||||
Current |
|
| ||||||||
30+ days past due |
|
|
|
| ||||||
Non-performing |
|
|
|
|
| |||||
Total wholesale receivables |
| $ | $ | $ | ||||||
17
An analysis of the allowance for credit losses and investment in financing receivables follows:
Retail Notes | Revolving | ||||||||||||
& Financing | Charge | Wholesale | |||||||||||
Leases | Accounts | Receivables | Total | ||||||||||
Three Months Ended July 27, 2025 | |||||||||||||
Allowance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period balance |
| $ |
| $ | $ | $ | |||||||
Provision |
| ||||||||||||
Write-offs | ( | ( |
| ( | |||||||||
Recoveries |
| ||||||||||||
End of period balance |
| $ |
| $ | $ | $ | |||||||
Nine Months Ended July 27, 2025 | |||||||||||||
Allowance: |
| ||||||||||||
Beginning of period balance |
| $ |
| $ | $ | $ | |||||||
Provision |
| ||||||||||||
Write-offs | ( | ( |
| ( | |||||||||
Recoveries |
| ||||||||||||
End of period balance |
| $ |
| $ | $ | $ | |||||||
Financing receivables: | |||||||||||||
End of period balance |
| $ |
| $ | $ | $ | |||||||
Retail Notes | Revolving |
| |||||||||||
& Financing | Charge | Wholesale |
| ||||||||||
Leases | Accounts | Receivables | Total | ||||||||||
Three Months Ended July 28, 2024 | |||||||||||||
Allowance: |
|
|
|
|
|
|
|
|
|
|
|
| |
Beginning of period balance | $ |
| $ | $ | $ | ||||||||
Provision |
|
| |||||||||||
Provision reversal for assets held for sale | ( |
|
| ( | |||||||||
Provision subtotal | | |
| ||||||||||
Write-offs |
| ( | ( |
| ( | ||||||||
Recoveries |
|
| |||||||||||
Translation adjustments |
| ( |
|
| ( | ||||||||
End of period balance | $ | | $ | | $ | | $ | | |||||
Nine Months Ended July 28, 2024 | |||||||||||||
Allowance: |
|
|
|
|
|
|
|
|
|
| |||
Beginning of period balance | $ |
| $ | $ | $ | ||||||||
Provision |
| | |
| |||||||||
Provision reversal for assets held for sale | ( |
|
| ( | |||||||||
Provision subtotal | | |
| ||||||||||
Write-offs |
| ( | ( |
| ( | ||||||||
Recoveries |
| | |
| |||||||||
Translation adjustments | ( |
| ( | ( | |||||||||
End of period balance | $ | $ | $ | $ | |||||||||
Financing receivables: | |||||||||||||
End of period balance | $ | |
| $ | | $ | | $ | |||||
The allowance for credit losses remained relatively flat in the third quarter of 2025 and increased in the first nine months of 2025, primarily due to higher expected losses on agriculture and turf customer accounts as a result of elevated delinquencies and a decline in market conditions.
In the third quarter of 2024, the financial services business in Brazil met the held for sale criteria. The receivables in Brazil were reclassified to “Assets held for sale.” The associated allowance for credit losses was reversed and a valuation allowance for the assets held for sale was recorded (see Note 21). These operations were deconsolidated in the second quarter of 2025 (see Note 20).
18
Modifications
We occasionally grant contractual modifications to customers experiencing financial difficulties. Before offering a modification, we evaluate the ability of the customer to meet the modified payment terms. Modifications offered include payment deferrals, term extensions, or a combination thereof. Finance charges continue to accrue during the deferral or extension period with the exception of modifications related to bankruptcy proceedings. Our allowance for credit losses incorporates historical loss information, including the effects of loan modifications with customers. Therefore, additional adjustments to the allowance are generally not recorded upon modification of a loan.
The ending amortized cost of financing receivables modified with borrowers experiencing financial difficulty was as follows:
Three Months Ended | Nine Months Ended | ||||||||||||
| July 27 |
| July 28 |
| July 27 |
| July 28 |
| |||||
2025 | 2024 | 2025 | 2024 |
| |||||||||
Modified financing receivables |
| $ |
| $ |
| $ |
| $ | |||||
Percentage of financing receivables portfolio |
|
|
| ||||||||||
For the nine months ended July 27, 2025, the financial effects of payment deferrals with borrowers experiencing financial difficulty resulted in a weighted average payment deferral of
We continue to monitor the performance of financing receivables that are modified with borrowers experiencing financial difficulty.
July 27 |
| July 28 |
| ||||
2025 | 2024* | ||||||
Current |
| $ | $ | ||||
30-59 days past due | |||||||
60-89 days past due | |||||||
90+ days past due | |||||||
Non-performing | |||||||
Total |
| $ | $ | ||||
* In accordance with the adoption date of the accounting modification guidance, this period includes receivables modified during the prior nine months.
Defaults and subsequent write-offs of loans modified in the prior twelve months were not significant during the three months and the nine months ended July 27, 2025. In addition, at July 27, 2025, commitments to provide additional financing to these customers were not significant.
(9) Securitization of Financing Receivables
Our funding strategy includes receivable securitizations, which allows us to receive cash for financing receivables immediately. While these securitization programs are administered in various forms, they are accomplished in the following basic steps:
| 1. | We transfer financing receivables into a bankruptcy-remote special purpose entity (SPE). |
| 2. | The SPE issues debt to investors. The debt is secured by the financing receivables. |
| 3. | Investors are paid back based on cash receipts from the financing receivables. |
As part of step 1, these receivables are legally isolated from the claims of our general creditors. This ensures cash receipts from the financing receivables are accessible to pay back securitization program investors. The structure of these transactions does not meet the accounting criteria for a sale of receivables. As a result, they are accounted for as secured borrowings. The receivables and borrowings remain on our balance sheet and are separately reported as “Financing receivables securitized – net” and “Short-term securitization borrowings,” respectively.
19
The components of securitization programs were as follows:
| July 27 |
| October 27 |
| July 28 |
| ||||
2025 | 2024 | 2024 |
| |||||||
Financing receivables securitized (retail notes) |
| $ | $ | $ | ||||||
Allowance for credit losses | ( |
| ( |
| ( | |||||
Other assets (primarily restricted cash) |
|
| ||||||||
Total restricted securitized assets |
| $ | $ | $ | ||||||
Short-term securitization borrowings | $ | $ | $ | |||||||
Accrued interest on borrowings |
| |||||||||
Total liabilities related to restricted securitized assets | $ | $ | $ | |||||||
(10) Inventories
| July 27 |
| October 27 |
| July 28 |
| ||||
2025 | 2024 | 2024 |
| |||||||
Raw materials and supplies |
| $ | $ | $ | ||||||
Work-in-process |
|
| ||||||||
Finished goods and parts |
|
| ||||||||
Total FIFO value |
|
| ||||||||
Excess of FIFO over LIFO |
|
| ||||||||
Inventories |
| $ | $ | $ | ||||||
(11) Goodwill and Other Intangible Assets – Net
The changes in amounts of goodwill by operating segments were as follows:
PPA | SAT | CF | Total |
| |||||||||
Goodwill at October 29, 2023 |
| $ | $ | $ | $ | ||||||||
Translation adjustments |
| ( | |||||||||||
Goodwill at July 28, 2024 | $ | $ | $ | $ | |||||||||
Goodwill at October 27, 2024 | $ | $ | $ | $ | |||||||||
Acquisitions (Note 20) |
| ||||||||||||
Translation adjustments | |||||||||||||
Goodwill at July 27, 2025 | $ | $ | $ | $ | |||||||||
The components of other intangible assets were as follows:
| July 27 |
| October 27 |
| July 28 |
| ||||
2025 | 2024 | 2024 |
| |||||||
Customer lists and relationships | $ | $ | $ | |||||||
Technology, patents, trademarks, and other |
|
| ||||||||
Total at cost |
|
| ||||||||
Less accumulated amortization: |
|
| ||||||||
Customer lists and relationships | ( | ( | ( | |||||||
Technology, patents, trademarks, and other | ( | ( | ( | |||||||
Total accumulated amortization | ( | ( | ( | |||||||
Other intangible assets – net | $ | $ | $ | |||||||
The amortization of other intangible assets in the third quarter and the first nine months of 2025 was $
20
(12) Short-Term Borrowings
Short-term borrowings were as follows:
July 27 | October 27 | July 28 | ||||||||
| 2025 |
| 2024 |
| 2024 | |||||
Commercial paper | $ | $ | $ | |||||||
Notes payable to banks | ||||||||||
Finance lease obligations due within one year | ||||||||||
Long-term borrowings due within one year |
|
|
| |||||||
Short-term borrowings | $ | $ | $ | |||||||
(13) Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses consisted of the following:
| July 27 |
| October 27 |
| July 28 |
| ||||
2025 | 2024 | 2024 | ||||||||
Accounts payable: |
|
|
|
|
|
|
|
|
| |
Trade payables | $ |
| $ |
| $ | |||||
Dividends payable |
|
|
| |||||||
Deposits withheld from dealers and merchants | ||||||||||
Payables to unconsolidated affiliates | ||||||||||
Other |
|
|
| |||||||
Accrued expenses: | ||||||||||
Employee benefits |
|
|
| |||||||
Accrued taxes |
|
|
| |||||||
Product warranties | ||||||||||
Dealer sales discounts | ||||||||||
Extended warranty premium |
|
|
| |||||||
Derivative liabilities | ||||||||||
Unearned revenue (contractual liability) |
|
|
| |||||||
Unearned operating lease revenue | ||||||||||
Accrued interest | ||||||||||
Parts return liability | ||||||||||
Other |
|
|
| |||||||
Accounts payable and accrued expenses |
| $ |
| $ | $ | |||||
Amounts are presented net of eliminations, which primarily consist of dealer sales incentives with a right of set-off against trade receivables of $
21
(14) Long-Term Borrowings
Long-term borrowings consisted of:
July 27 | October 27 | July 28 | ||||||||
| 2025 |
| 2024 |
| 2024 | |||||
Underwritten term debt |
|
|
|
|
|
|
|
|
| |
U.S. dollar notes and debentures: | ||||||||||
$ | $ | $ | ||||||||
|
|
| ||||||||
|
|
| ||||||||
|
|
| ||||||||
|
|
| ||||||||
|
|
| ||||||||
Euro notes: | ||||||||||
Serial issuances | ||||||||||
Medium-term notes |
| |||||||||
Other notes and finance lease obligations |
|
|
| |||||||
Less debt issuance costs and debt discounts | ( | ( | ( | |||||||
Long-term borrowings |
| $ | $ | $ | ||||||
Medium-term notes due through 2034 are primarily offered by prospectus and issued at fixed and variable rates. The principal balances of the medium-term notes were $
(15) Leases – Lessor
We lease equipment manufactured or sold by us through John Deere Financial. Sales-type and direct financing leases are reported in “Financing receivables – net.” Operating leases are reported in “Equipment on operating leases – net.”
Lease revenues earned by us follow:
Three Months Ended | Nine Months Ended | ||||||||||||
July 27 | July 28 | July 27 | July 28 | ||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||
Sales-type and direct finance lease revenues | $ | $ | $ | $ | |||||||||
Operating lease revenues | |||||||||||||
Variable lease revenues | |||||||||||||
Total lease revenues | $ | $ | $ | $ | |||||||||
(16) Commitments and Contingencies
A standard warranty is provided as assurance that the equipment will function as intended. The standard warranty period varies by product and region. At the time a sale is recognized, we record an estimate of future warranty costs based on historical claims rate experience and estimated population under warranty.
The reconciliation of the changes in the warranty liability follows:
Three Months Ended | Nine Months Ended |
| |||||||||||
July 27 | July 28 | July 27 | July 28 |
| |||||||||
2025 | 2024 | 2025 | 2024 |
| |||||||||
Beginning of period balance |
| $ |
| $ |
| $ |
| $ | |||||
Warranty claims paid | ( |
| ( | ( |
| ( | |||||||
New product warranty accruals |
|
| |||||||||||
Foreign exchange |
| ( |
| ( | |||||||||
End of period balance | $ | $ | $ | $ | |||||||||
The costs for extended warranty programs are recognized as incurred.
22
In certain international markets, we provide guarantees to banks for the retail financing of John Deere equipment. As of July 27, 2025, the notional value of these guarantees was $
We also had other miscellaneous contingent liabilities and guarantees totaling approximately $
At July 27, 2025, we had commitments of approximately $
We are subject to various unresolved legal actions. The accrued losses on these matters were not material at July 27, 2025. We believe the reasonably possible range of losses, if any, for these unresolved legal actions would not have a material effect on our consolidated financial statements. The most prevalent legal claims relate to product liability (including asbestos-related liability), antitrust matters (including class action litigation), employment, patent, and trademark.
(17) FAIR VALUE MEASUREMENTS
The fair values of financial instruments that do not approximate the carrying values are presented in the table below. Long-term borrowings exclude finance lease liabilities.
July 27, 2025 | October 27, 2024 | July 28, 2024 |
| ||||||||||||||||
Carrying | Fair | Carrying | Fair | Carrying | Fair |
| |||||||||||||
Financing receivables – net |
| $ |
| $ |
| $ |
| $ |
| $ |
| $ | |||||||
Financing receivables securitized – net | |||||||||||||||||||
Receivables from unconsolidated affiliates | |||||||||||||||||||
Short-term securitization borrowings | |||||||||||||||||||
Long-term borrowings due within one year |
| ||||||||||||||||||
Long-term borrowings |
| ||||||||||||||||||
Fair value measurements above were Level 3 for receivables and Level 2 for all borrowings.
Fair values of the financing receivables and receivables from unconsolidated affiliates that were issued long-term were based on the discounted values of their related cash flows at interest rates currently being offered by us for similar financing receivables or at current market interest rates. The fair values of the remaining receivables approximated the carrying amounts. In May 2025 and May 2024, we acquired held-to-maturity marketable securities that mature in less than one year. The carrying value of the held-to-maturity marketable securities was $
Fair values of long-term borrowings and short-term securitization borrowings were based on current market quotes for identical or similar borrowings and credit risk, or on the discounted values of their related cash flows at current market interest rates. Certain long-term borrowings have been swapped to current variable interest rates. The carrying values of these long-term borrowings include adjustments related to fair value hedges.
23
Assets and liabilities measured at fair value on a recurring basis follow, excluding our cash equivalents, which were carried at a cost that approximates fair value and consisted of money market funds and time deposits.
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Marketable securities: | ||||||||||
International fixed income fund | ||||||||||
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Accounts payable and accrued expenses – Deferred consideration | ||||||||||
The mortgage-backed securities are primarily issued by U.S. government-sponsored enterprises.
The contractual maturities of available-for-sale debt securities at July 27, 2025 follow:
| Amortized |
| Fair |
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Cost | Value |
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Due in one year or less |
| $ | $ | ||||
Due after one through five years | |||||||
Due after five through 10 years | |||||||
Due after 10 years | |||||||
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Debt securities |
| $ |
| $ | |||
Actual maturities may differ from contractual maturities because some securities may be called or prepaid. Mortgage-backed securities contain prepayment provisions and are not categorized by contractual maturity.
Fair value, nonrecurring Level 3 measurements from impairments and other adjustments were as follows:
Fair Value | Losses (Gains) | |||||||||||||||||||||
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July 27 | October 27 | July 28 | July 27 | July 28 | July 27 | July 28 | ||||||||||||||||
| 2025 |
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| 2024 |
| 2025 |
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| 2025* |
| 2024 |
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Property and equipment – net | $ | | | $ | | |||||||||||||||||
Other intangible assets – net | | | | |||||||||||||||||||
Other assets | $ | | ||||||||||||||||||||
Assets held for sale | | $ | | $ | | ( | $ | | ||||||||||||||
* The gain on “Assets held for sale” recorded in the first quarter of 2025 represents a reversal of prior period valuation allowance loss, not in excess of cumulative valuation allowance recorded on “Assets held for sale.”
The following is a description of the valuation methodologies we use to measure certain financial instruments on the balance sheets at fair value:
Marketable securities – The portfolio of investments is valued on a market approach (matrix pricing model) in which all significant inputs are observable or can be derived from or corroborated by observable market data such as interest rates, yield curves, volatilities, credit risk, and prepayment speeds. Funds are valued using the fund’s net asset value, based on the fair value of the underlying securities. International debt securities are valued using quoted prices for identical assets in inactive markets.
24
Derivatives – Our derivative financial instruments consist of interest rate contracts (swaps), foreign currency exchange contracts (futures, forwards, and swaps), and cross-currency interest rate contracts (swaps). The portfolio is valued based on an income approach (discounted cash flow) using market observable inputs, including swap curves and both forward and spot exchange rates for currencies.
Deferred consideration – The total purchase price consideration for three former Deere-Hitachi joint venture factories acquired in 2022 included supply agreement price increases beyond inflation adjustments. This deferred consideration will be paid as we purchase Deere-branded excavators, components, and service parts from Hitachi under the agreement with a duration that ranges from to
Property and equipment – net – The valuations were based on the cost approach. The inputs include reproduction cost estimates adjusted for physical deterioration and functional obsolescence (see Note 21).
Other intangible assets – net – The impairment of customer relationships and tradename of our external overseas battery operations was measured using an income approach (see Note 21).
Other assets (Investments in unconsolidated affiliates) – Other than temporary impairments of investments are measured as the difference between the implied fair value and the carrying value of the investments. The estimated fair value for privately held entities is determined by an income approach (discounted cash flows), which includes inputs such as interest rates and margins.
Assets held for sale – The disposal group was measured at the lower of the carrying amount or fair value less cost to sell. Fair value was based on the probable sale price. The inputs included estimates of the final sale price (see Note 21).
(18) Derivative Instruments
Fair values of our derivative instruments and the associated notional amounts are presented below. Assets are recorded in “Other assets,” while liabilities are recorded in “Accounts payable and accrued expenses.”
July 27, 2025 | October 27, 2024 | July 28, 2024 |
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Cash flow hedges: |
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25
The amounts recorded in the consolidated balance sheets related to borrowings designated in fair value hedging relationships are presented in the table below. Fair value hedging adjustments are included in the carrying amount of the hedged item. The carrying amount of the hedged item and formerly hedged item includes long-term borrowings of $
Active Hedging Relationships | Discontinued Hedging Relationships | ||||||||||||
Carrying Amount | Cumulative Fair Value | Carrying Amount of | Cumulative Fair Value | ||||||||||
of Hedged Item | Hedging Amount | Formerly Hedged Item | Hedging Amount | ||||||||||
July 27, 2025 | |||||||||||||
Short-term borrowings | $ | $ | ( | $ | $ | ( | |||||||
Long-term borrowings | ( | ( | |||||||||||
October 27, 2024 | |||||||||||||
Short-term borrowings | $ | $ | ( | $ | $ | ||||||||
Long-term borrowings | ( | ( | |||||||||||
July 28, 2024 | |||||||||||||
Short-term borrowings | $ | $ | ( | $ | $ | ||||||||
Long-term borrowings | ( | ( | |||||||||||
The classification and gains (losses), including accrued interest expense, related to derivative instruments on the statements of consolidated income consisted of the following:
Three Months Ended | Nine Months Ended |
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Interest rate contracts – OCI (pretax) | ( | ||||||||||||
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Interest rate contracts – Interest expense | ( |
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Interest rate contracts – OCI (pretax) | ( | ( | |||||||||||
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Foreign exchange contracts – Net sales | ( | ( |
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Foreign exchange contracts – Cost of sales | ( |
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Foreign exchange contracts – Other operating expenses | ( |
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In April 2025, we entered into a cross-currency interest rate swap as a designated net investment hedge to reduce the foreign currency exposure from investments in foreign subsidiaries. Changes in fair value of the derivative attributable to changes in the spot rate are recorded in “Cumulative translation adjustment” within “Other comprehensive income” (OCI) to offset changes in the value of the net investments being hedged. Effectiveness is assessed using the spot method. The periodic cash settlement of the pay-fixed rate, receive-fixed rate cross-currency swap is recorded in “Interest expense.”
Certain of our derivative agreements contain credit support provisions that may require us to post collateral based on the size of the net liability positions and credit ratings. The aggregate fair value of all derivatives with credit-risk-related contingent features that were in a net liability position at July 27, 2025, October 27, 2024, and July 28, 2024, was $
26
Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities related to netting arrangements and collateral follows:
Gross Amounts | Netting |
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| Arrangements |
| Collateral |
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July 27, 2025 |
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(19) Share-Based Awards
We are authorized to grant shares for equity incentive awards. The outstanding shares authorized were
During the nine months ended July 27, 2025, the restricted stock units (RSUs) granted in thousands of shares and the weighted-average grant date fair values, using the closing price of our common stock on the grant date in dollars, follow:
Grant-Date | ||||||
Fair Value | ||||||
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(20) AcQUISITIONs AND Disposition
Acquisitions
In 2025, we acquired businesses to advance the capabilities of our existing technology offerings, providing customers with a more comprehensive set of tools to generate and use data to make decisions that improve profitability, efficiency, and sustainability. The combined cost of these acquisitions was $
Disposition
In February 2025, we completed a transaction with Banco Bradesco S.A. (Bradesco), for Bradesco to invest and become a
We retained a
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The major classes of the total assets and liabilities of BJD at the time of deconsolidation were as follows:
February | ||||
2025 | ||||
Cash and cash equivalents | $ | |||
Trade accounts and notes receivable – net | ||||
Financing receivables – net | ||||
Deferred income taxes | ||||
Other miscellaneous assets | ||||
Valuation allowance | ( | |||
Total assets | $ | |||
Short-term borrowings | $ | |||
Accounts payable and accrued expenses | ||||
Long-term borrowings | ||||
Retirement benefits and other liabilities | ||||
Total liabilities | $ | |||
Total intercompany payables | $ | |||
At the time of deconsolidation in February 2025, the additional gain or loss was not significant. BJD was reclassified as held for sale in the third quarter of 2024.
Statements of Consolidated Cash Flows – Our noncash transactions as a result of BJD deconsolidation in February 2025 include the following items: derecognition of the above total assets (excluding cash and cash equivalents) and total liabilities, and the recognition of the investment in unconsolidated affiliates and receivables from unconsolidated affiliates (BJD intercompany payables above). The decrease in cash and cash equivalents resulting from deconsolidation of BJD was recorded in investing activities – “Other” in the statements of consolidated cash flows.
(21) Special ItemS
2025
Impairment
In the third quarter of 2025, we recorded a non-cash charge of $
Discrete Tax Items
In the first quarter of 2025, we recorded favorable net discrete tax items primarily due to tax benefits of $
Banco John Deere S.A.
In February 2025, we completed the transaction with Bradesco (see Note 20) for the sale of
2024
Employee-Separation Programs
In the third quarter of 2024, we implemented employee-separation programs for our salaried workforce in several geographic areas, including the United States, Europe, Asia, and Latin America. The programs’ main purpose was to help meet our strategic priorities while reducing overlap and redundancy in roles and responsibilities. The programs were largely involuntary in nature with the expense recorded when management committed to a plan, the plan was communicated to the employees, and the employees were not required to provide service beyond the legal notification period. For the limited voluntary employee-separation programs, the expense was recorded in the period in which the employee irrevocably accepted a separation offer.
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The programs’ total pretax expenses recorded in the third quarter of 2024 were $
PPA |
| SAT |
| CF |
| FS |
| Total | ||||||||
Employee-Separation Programs: |
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Cost of sales | $ | $ | $ | $ | ||||||||||||
Research and development expenses | ||||||||||||||||
Selling, administrative and general expenses | $ | |||||||||||||||
Total operating profit decrease | $ | $ | $ | $ | ||||||||||||
Non-operating profit expenses* | ||||||||||||||||
Total | $ | |||||||||||||||
* Relates primarily to corporate expenses.
Banco John Deere S.A.
In the third quarter of 2024, we reclassified the BJD business as held for sale, including a reversal of $
Redeemable Noncontrolling Interest
In the third quarter of 2024, we exercised our right to purchase the remaining
Summary of 2025 and 2024 Special Items
The following table summarizes the operating profit impact of the special items recorded for the three months and nine months ended July 27, 2025 and July 28, 2024.
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BJD measurement | |||||||||||||||||||||||||||||||
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Period over period change | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||
(22) Subsequent Event
On
29
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.
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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.
Item 4.CONTROLS AND PROCEDURES
Our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act)) were effective as of July 27, 2025, based on the evaluation of these controls and procedures required by Rule 13a-15(b) or 15d-15(b) of the Exchange Act. During the third quarter of 2025, there were no changes that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.
PART II. OTHER INFORMATION
Item 1.Legal Proceedings
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 then joined the lawsuit. The lawsuit alleges monopolization and unfair competition in violation of 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. On March 17, 2025, we filed a motion to dismiss the lawsuit, the FTC filed a response on April 28, 2025, and we filed a reply on May 28, 2025. A hearing was held on the motion to dismiss and the court denied the motion. We are in preliminary discussions with the FTC with respect to a potential resolution. At this stage we are unable to predict the outcome or impact of this matter on our business.
In addition to the above, the most prevalent legal claims relate to product liability (including asbestos-related liability), employment, patent, trademark, and antitrust matters (including class action litigation).
Item 1A.Risk Factors
There have been no material changes to the risk factors set forth in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended October 27, 2024, except as set forth below:
Legal proceedings, disputes and government inquiries and investigations could harm our business, financial condition, reputation, and brand.
We routinely are a party to claims and legal actions and the subject of government inquiries and investigations, the most prevalent of which relate to product liability (including asbestos-related liability), antitrust matters (including class action litigation), employment, patent, and trademark. For example, we were recently the subject of a previously disclosed Federal Trade Commission (FTC) investigation into our information security practices and statements, which was closed by the FTC without action. The defense of lawsuits and government inquiries and investigations has resulted and may result in expenditures of significant financial resources and the diversion of management’s time and attention away from business operations. Adverse decisions in one or more of these claims, actions, inquiries, or investigations could require us to pay substantial damages or fines, undertake service actions, initiate recall campaigns, or take other costly actions. It is therefore possible that legal judgments or investigations could give rise to expenses that are not covered, or not fully covered, by our insurance programs and could affect our financial position and results.
We are currently subject to a consolidated multidistrict class action lawsuit in the Northern District of Illinois alleging that we have engaged in attempted monopolization, exclusionary conduct, and restraint of the market for repair services for John Deere brand agricultural equipment by limiting repair resources only to our authorized technicians or independent authorized John Deere dealers. In addition, the FTC, along with the Attorneys General of the States of Arizona, Illinois, Michigan, Minnesota, and Wisconsin, filed a lawsuit against us in the United States District Court for the Northern District of Illinois Western Division alleging similar claims. We are currently unable to predict the outcome of these matters.
45
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities
Purchases of our common stock during the third quarter of 2025 were as follows:
|
| Total Number of |
|
|
| ||||||
Shares Purchased as | Maximum Number of |
|
| ||||||||
Total Number of | Part of Publicly | Shares that May Yet Be |
|
| |||||||
Shares | Announced Plans or | Purchased under the |
|
| |||||||
Purchased (2) | Average Price | Programs (1) | Plans or Programs (1) |
|
| ||||||
Period | (thousands) | Per Share | (thousands) | (millions) |
|
| |||||
Apr 28 to May 25 |
|
|
|
| 15.9 | ||||||
May 26 to Jun 22 | 272 | $ | 519.79 | 271 | 15.6 | ||||||
Jun 23 to Jul 27 | 310 | 514.24 | 310 | 15.3 | |||||||
Total | 582 | 581 | |||||||||
| (1) | We have a share repurchase plan that was announced in December 2022 to purchase up to $18.0 billion of shares of our common stock. The maximum number of shares that may yet be purchased under this plan was 15.3 million based on the closing price of our common stock on the New York Stock Exchange as of the end of the third quarter of 2025 of $517.38 per share. At the end of the third quarter of 2025, $7.9 billion of common stock remained to be purchased under this plan. |
| (2) | In the third quarter of 2025, one thousand shares of common stock were acquired from plan participants at the weighted-average market price of $485.89 per share to pay payroll taxes on the vesting of restricted stock awards. |
Item 3.Defaults Upon Senior Securities
None.
Item 4.Mine Safety Disclosures
Not applicable.
Item 5.Other Information
Director and Executive Officer Trading Arrangements
On
On
46
Item 6.Exhibits
Certain instruments relating to long-term borrowings constituting less than 10% of the registrant’s total assets are not filed as exhibits herewith pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K. The registrant will furnish copies of such instruments to the Commission upon request of the Commission.
3.1 | Certificate of Incorporation (Exhibit 3.1 to Form 10-Q of registrant for the quarter ended July 28, 2019, Securities and Exchange Commission File Number 1-4121*) |
3.2 | Bylaws, as amended (Exhibit 3.2 to Form 10-Q of registrant for the quarter ended July 30, 2023, Securities and Exchange Commission File Number 1-4121*) |
31.1 | Rule 13a-14(a)/15d-14(a) Certification |
31.2 | Rule 13a-14(a)/15d-14(a) Certification |
32 | Section 1350 Certifications (furnished herewith) |
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) |
101.SCH | Inline XBRL Taxonomy Extension Schema Document |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* Incorporated by reference.
47
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
DEERE & COMPANY | ||||
Date: | August 28, 2025 | By: | /s/ Joshua A. Jepsen | |
Joshua A. Jepsen (Principal Financial Officer and Principal Accounting Officer) | ||||
48
Source:
FAQ
What is Deere's outlook for agricultural equipment demand in 2025 (DE)?
How much is Deere's declared quarterly dividend and will it be paid?
What legal risks did Deere disclose in the 10-Q (DE)?
What liquidity facilities and funding sources does Deere have?
Did Deere report any impairments or asset issues?
