UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January ~~29,~~28, ~~2023~~2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission file no: 1-4121

DEERE & COMPANY

(Exact name of registrant as specified in its charter)


Delaware (State of incorporation)		36-2382580 (IRS employer identification no.)

One John Deere Place

Moline, Illinois 61265

(Address of principal executive offices)

Telephone Number: (309) 765-8000

Securities Registered Pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
Common stock, $1 par value	DE	New York Stock Exchange
6.55% Debentures Due 2028	DE28	New York Stock Exchange

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.

Yes ☒ No ☐

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).

Yes ☒ No ☐

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.


Large accelerated filer	☒	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 ☐ No ☒

At January ~~29, 2023, 296,322,273~~28, 2024, 278,358,210 shares of common stock, $1 par value, of the registrant were outstanding.

PART I. FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS
DEERE & COMPANY
STATEMENTS OF CONSOLIDATED INCOME
For the Three Months Ended January 29, 2023 and January 30, 2022
For the Three Months Ended January 28, 2024 and January 29, 2023
(In millions of dollars and shares except per share amounts) Unaudited
	2023		2022		2024		2023
Net Sales and Revenues
Net sales	$	11,402	$	8,531	$	10,486	$	11,402
Finance and interest income		994		800		1,360		994
Other income		256		238		339		256
Total		12,652		9,569		12,185		12,652

Costs and Expenses
Cost of sales		7,934		6,695		7,200		7,934
Research and development expenses		495		402		533		495
Selling, administrative and general expenses		952		781		1,066		952
Interest expense		479		229		802		479
Other operating expenses		299		311		369		299
Total		10,159		8,418		9,970		10,159

Income of Consolidated Group before Income Taxes		2,493		1,151		2,215		2,493
Provision for income taxes		537		250		469		537

Income of Consolidated Group		1,956		901		1,746		1,956
Equity in income of unconsolidated affiliates		1		3		2		1

Net Income		1,957		904		1,748		1,957
Less: Net income (loss) attributable to noncontrolling interests		(2)		1
Less: Net loss attributable to noncontrolling interests						(3)		(2)
Net Income Attributable to Deere & Company	$	1,959	$	903	$	1,751	$	1,959

Per Share Data
Basic	$	6.58	$	2.94	$	6.25	$	6.58
Diluted		6.55		2.92		6.23		6.55
Dividends declared		1.20		1.05		1.47		1.20
Dividends paid		1.13		1.05		1.35		1.13

Average Shares Outstanding
Basic		297.6		307.4		279.9		297.6
Diluted		299.1		309.4		281.1		299.1

See Condensed Notes to Interim Consolidated Financial Statements.


DEERE & COMPANY
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME
For the Three Months Ended January 29, 2023 and January 30, 2022
For the Three Months Ended January 28, 2024 and January 29, 2023
(In millions of dollars) Unaudited
	2023		2022		2024		2023

Net Income	$	1,957	$	904	$	1,748	$	1,957

Other Comprehensive Income (Loss), Net of Income Taxes
Retirement benefits adjustment		(11)		(345)		(21)		(11)
Cumulative translation adjustment		681		(267)		274		681
Unrealized gain (loss) on derivatives		(13)		14
Unrealized gain (loss) on debt securities		27		(15)
Other Comprehensive Income (Loss), Net of Income Taxes		684		(613)
Unrealized loss on derivatives						(15)		(13)
Unrealized gain on debt securities						13		27
Other Comprehensive Income, Net of Income Taxes						251		684

Comprehensive Income of Consolidated Group		2,641		291		1,999		2,641
Less: Comprehensive income attributable to noncontrolling interests		6		1
Less: Comprehensive income (loss) attributable to noncontrolling interests						(2)		6
Comprehensive Income Attributable to Deere & Company	$	2,635	$	290	$	2,001	$	2,635

See Condensed Notes to Interim Consolidated Financial Statements.


DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions of dollars) Unaudited
	January 29		October 30		January 30		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Assets
Cash and cash equivalents	$	3,976	$	4,774	$	4,472	$	5,137	$	7,458	$	3,976
Marketable securities		852		734		735		1,136		946		852
Trade accounts and notes receivable – net		7,609		6,410		4,855		7,795		7,739		7,609
Financing receivables – net		36,882		36,634		33,191		43,708		43,673		36,882
Financing receivables securitized – net		5,089		5,936		3,516		6,400		7,335		5,089
Other receivables		1,992		2,492		1,936		2,017		2,623		1,992
Equipment on operating leases – net		6,502		6,623		6,624		6,751		6,917		6,502
Inventories		10,056		8,495		7,935		8,937		8,160		10,056
Property and equipment – net		6,212		6,056		5,665		6,914		6,879		6,212
Goodwill		3,891		3,687		3,192		3,966		3,900		3,891
Other intangible assets – net		1,255		1,218		1,209		1,112		1,133		1,255
Retirement benefits		3,793		3,730		3,158		3,087		3,007		3,793
Deferred income taxes		914		824		923		1,833		1,814		914
Other assets		2,597		2,417		2,203		2,578		2,503		2,597
Total Assets	$	91,620	$	90,030	$	79,614	$	101,371	$	104,087	$	91,620

Liabilities and Stockholders’ Equity

Liabilities
Short-term borrowings	$	14,129	$	12,592	$	10,990	$	17,117	$	17,939	$	14,129
Short-term securitization borrowings		4,864		5,711		3,482		6,116		6,995		4,864
Accounts payable and accrued expenses		13,108		14,822		10,651		13,361		16,130		13,108
Deferred income taxes		519		495		556		550		520		519
Long-term borrowings		35,071		33,596		32,838		39,933		38,477		35,071
Retirement benefits and other liabilities		2,493		2,457		3,289		2,115		2,140		2,493
Total liabilities		70,184		69,673		61,806		79,192		82,201		70,184

Commitments and contingencies (Note 16)
Redeemable noncontrolling interest		100		92				100		97		100

Stockholders’ Equity
Common stock, $1 par value (issued shares at January 29, 2023 – 536,431,204)		5,191		5,165		5,066
Common stock, $1 par value (issued shares at January 28, 2024 – 536,431,204)								5,335		5,303		5,191
Common stock in treasury		(25,333)		(24,094)		(21,139)		(32,663)		(31,335)		(25,333)
Retained earnings		43,846		42,247		37,029		52,266		50,931		43,846
Accumulated other comprehensive income (loss)		(2,372)		(3,056)		(3,152)		(2,863)		(3,114)		(2,372)
Total Deere & Company stockholders’ equity		21,332		20,262		17,804		22,075		21,785		21,332
Noncontrolling interests		4		3		4		4		4		4
Total stockholders’ equity		21,336		20,265		17,808		22,079		21,789		21,336
Total Liabilities and Stockholders’ Equity	$	91,620	$	90,030	$	79,614	$	101,371	$	104,087	$	91,620

See Condensed Notes to Interim Consolidated Financial Statements.


DEERE & COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Three Months Ended January 29, 2023 and January 30, 2022
For the Three Months Ended January 28, 2024 and January 29, 2023
(In millions of dollars) Unaudited
	2023		2022		2024		2023
Cash Flows from Operating Activities
Net income	$	1,957	$	904	$	1,748	$	1,957
Adjustments to reconcile net income to net cash used for operating activities:
Provision (credit) for credit losses		(130)				31		(130)
Provision for depreciation and amortization		494		486		520		494
Share-based compensation expense		23		18		46		23
Provision (credit) for deferred income taxes		(56)		210		27		(56)
Changes in assets and liabilities:
Trade, notes, and financing receivables related to sales		(1,015)		(106)
Receivables related to sales						(277)		(1,015)
Inventories		(1,279)		(1,297)		(723)		(1,279)
Accounts payable and accrued expenses		(1,577)		(1,554)		(2,327)		(1,577)
Accrued income taxes payable/receivable		199		(184)		183		199
Retirement benefits		(48)		(1,010)		(129)		(48)
Other		186		(20)		(7)		186
Net cash used for operating activities		(1,246)		(2,553)		(908)		(1,246)

Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)		7,198		6,435		7,752		7,198
Proceeds from sales of equipment on operating leases		497		479		506		497
Cost of receivables acquired (excluding receivables related to sales)		(6,322)		(5,603)		(6,447)		(6,322)
Acquisitions of businesses, net of cash acquired				(24)
Purchases of property and equipment		(315)		(193)		(362)		(315)
Cost of equipment on operating leases acquired		(497)		(391)		(454)		(497)
Collateral on derivatives - net		345		(13)
Collateral on derivatives – net						310		345
Other		(146)		(42)		(88)		(146)
Net cash provided by investing activities		760		648		1,217		760

Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings		697		(1,018)
Proceeds from long-term borrowings		2,505		2,353
Payments of long-term borrowings		(1,925)		(1,940)
Proceeds from issuance of common stock		21		11
Net proceeds (payments) in short-term borrowings (original maturities three months or less)						(2,951)		697
Proceeds from borrowings issued (original maturities greater than three months)						5,287		2,505
Payments of borrowings (original maturities greater than three months)						(3,237)		(1,925)
Repurchases of common stock		(1,257)		(623)		(1,328)		(1,257)
Dividends paid		(341)		(327)		(386)		(341)
Other		(39)		(33)		(30)		(18)
Net cash used for financing activities		(339)		(1,577)		(2,645)		(339)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash		62		(74)		16		62

Net Decrease in Cash, Cash Equivalents, and Restricted Cash		(763)		(3,556)		(2,320)		(763)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		4,941		8,125		7,620		4,941
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	4,178	$	4,569	$	5,300	$	4,178

Components of cash, cash equivalents, and restricted cash
Components of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents	$	3,976	$	4,472	$	5,137	$	3,976
Restricted cash (Other assets)		202		97		163		202
Total cash, cash equivalents, and restricted cash	$	4,178	$	4,569
Total Cash, Cash Equivalents, and Restricted Cash					$	5,300	$	4,178

See Condensed Notes to Interim Consolidated Financial Statements.

DEERE & COMPANY

STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY

For the Three Months Ended January 29, 2023 and January 30, 2022

(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

Balance October 31, 2021

$
18,434

$
5,054

$
(20,533)

$
36,449

$
(2,539)

$
3

Net income

904

903

1

Other comprehensive loss

(613)

(613)

Repurchases of common stock

(623)

(623)

Treasury shares reissued

17

17

Dividends declared

(323)

(323)

Share based awards and other

12

12

Balance January 30, 2022

$
17,808

$
5,066

$
(21,139)

$
37,029

$
(3,152)

$
4

Balance October 30, 2022

$
20,265

$
5,165

$
(24,094)

$
42,247

$
(3,056)

$
3

$
92

Net income (loss)

1,960

1,959

1

(3)

Other comprehensive income

684

684

8

Repurchases of common stock

(1,257)

(1,257)

Treasury shares reissued

18

18

Dividends declared

(356)

(356)

Share based awards and other

22

26

(4)

3

Balance January 29, 2023

$
21,336

$
5,191

$
(25,333)

$
43,846

$
(2,372)

$
4

$
100


DEERE & COMPANY
STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS’ EQUITY
For the Three Months Ended January 28, 2024 and January 29, 2023
(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

Balance October 30, 2022	$	20,265	$	5,165	$	(24,094)	$	42,247	$	(3,056)	$	3	$	92
Net income (loss)		1,960						1,959				1		(3)
Other comprehensive income		684								684				8
Repurchases of common stock		(1,257)				(1,257)
Treasury shares reissued		18				18
Dividends declared		(356)						(356)
Share based awards and other		22		26				(4)						3
Balance January 29, 2023	$	21,336	$	5,191	$	(25,333)	$	43,846	$	(2,372)	$	4	$	100


Balance October 29, 2023	$	21,789	$	5,303	$	(31,335)	$	50,931	$	(3,114)	$	4	$	97
Net income (loss)		1,752						1,751				1		(4)
Other comprehensive income		251								251				1
Repurchases of common stock		(1,340)				(1,340)
Treasury shares reissued		12				12
Dividends declared		(411)						(411)
Share based awards and other		26		32				(5)				(1)		6
Balance January 28, 2024	$	22,079	$	5,335	$	(32,663)	$	52,266	$	(2,863)	$	4	$	100

See Condensed Notes to Interim Consolidated Financial Statements.

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~~“Deere & Company, ~~John~~” “John Deere, ~~Deere,~~” “we,” “us,” or ~~the Company~~“our” include ~~its~~our consolidated ~~subsidiaries and consolidated variable interest entities (VIEs). The Company is managed~~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 (FS). References to ~~“equipment operations” include production and precision agriculture, small agriculture and turf, and construction and forestry, while references to~~ “agriculture and turf” include both ~~production~~PPA and ~~precision agriculture and small agriculture and turf.~~SAT.

~~The Company uses~~We use a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period. The first quarter ends for fiscal year ~~2023~~2024 and ~~2022~~2023 were January ~~29, 2023~~28, 2024 and January ~~30, 2022,~~29, 2023, respectively. Both periods contained 13 weeks. Unless otherwise stated, references to particular years, quarters, or months refer to ~~the Company’s~~our fiscal years generally ending in October and the associated periods in those fiscal years.

All amounts are presented in millions of dollars, unless otherwise specified.

(2) Summary of Significant Accounting Policies and New Accounting Standards

Quarterly Financial Statements

The interim consolidated financial statements of Deere & Company have been prepared by ~~the Company,~~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 ~~the Company’s~~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

~~The preparation of financial statements in conformity with~~Certain accounting ~~principles generally accepted in the U.S. requires~~policies require management to make estimates and assumptions ~~that affect~~in determining the ~~reported~~ amounts reflected in the financial statements and related disclosures. Actual results could differ from those estimates.

New Accounting Standards

~~The Company~~We closely ~~monitors~~monitor all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) and other authoritative guidance. ~~ASUs~~We adopted the following standards in ~~2023 did not have~~2024, none of which had a material ~~impact~~effect on ~~the Company’s~~our consolidated financial statements. ~~ASUs~~


Accounting Standards Adopted
2022-04 — Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations
2022-02 — Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures
2022-01 — Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method
2021-08 — Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

Accounting Standards to be ~~adopted~~Adopted

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and cash taxes paid both in the U.S. and foreign jurisdictions. The effective date of the ASU is fiscal year 2026. We are assessing the effect of this update on our related disclosures.

We will also adopt the following standards in future periods, none of which are ~~being evaluated and at this point are not~~ expected to have a material ~~impact~~effect on ~~the Company’s~~our consolidated financial statements.


2023-07 — Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures
2023-06 — Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative
2023-05 — Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement
2022-03 — Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions

(3) Revenue Recognition

~~The Company’s~~Our net sales and revenues by primary geographic market, major product line, and timing of revenue recognition ~~in millions of dollars~~ follow:


	Three Months Ended January 29, 2023										Three Months Ended January 28, 2024
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total		Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	2,628	$	1,665	$	1,901	$	713	$	6,907	$	2,721	$	1,345	$	2,095	$	970	$	7,131
Canada		360		146		275		150		931		386		118		210		172		886
Western Europe		501		564		365		29		1,459		503		517		361		40		1,421
Central Europe and CIS		202		123		75		12		412		179		73		94		8		354
Latin America		1,237		156		339		95		1,827		819		98		256		130		1,303
Asia, Africa, Oceania, and Middle East		375		400		300		41		1,116		435		341		258		56		1,090
Total	$	5,303	$	3,054	$	3,255	$	1,040	$	12,652	$	5,043	$	2,492	$	3,274	$	1,376	$	12,185

Major product lines:
Production agriculture	$	5,112							$	5,112	$	4,791							$	4,791
Small agriculture			$	2,194						2,194			$	1,718						1,718
Turf				719						719				649						649
Construction					$	1,483				1,483					$	1,483				1,483
Compact construction						473				473						626				626
Roadbuilding						818				818						763				763
Forestry						356				356						292				292
Financial products		31		18		13	$	1,040		1,102		60		26		18	$	1,376		1,480
Other		160		123		112				395		192		99		92				383
Total	$	5,303	$	3,054	$	3,255	$	1,040	$	12,652	$	5,043	$	2,492	$	3,274	$	1,376	$	12,185

Revenue recognized:
At a point in time	$	5,248	$	3,029	$	3,230	$	23	$	11,530	$	4,955	$	2,456	$	3,243	$	28	$	10,682
Over time		55		25		25		1,017		1,122		88		36		31		1,348		1,503
Total	$	5,303	$	3,054	$	3,255	$	1,040	$	12,652	$	5,043	$	2,492	$	3,274	$	1,376	$	12,185

Three Months Ended January 30, 2022

Production & Precision Ag

Small Ag & Turf

Construction & Forestry

Financial Services

Total

Primary geographic markets:





United States

$
1,608

$
1,438

$
1,260

$
573

$
4,879

Canada

139

122

332

152

745

Western Europe

467

532

358

26

1,383

Central Europe and CIS

202

126

195

11

534

Latin America

776

104

228

68

1,176

Asia, Africa, Oceania, and Middle East

241

352

219

40

852

Total

$
3,433

$
2,674

$
2,592

$
870

$
9,569

Major product lines:





Production agriculture

$
3,283

$
3,283

Small agriculture

$
1,932

1,932

Turf

627

627

Construction

$
1,175

1,175

Compact construction

321

321

Roadbuilding

692

692

Forestry

305

305

Financial products

12

11

5

$
870

898

Other

138

104

94

336

Total

$
3,433

$
2,674

$
2,592

$
870

$
9,569

Revenue recognized:





At a point in time

$
3,396

$
2,654

$
2,570

$
24

$
8,644

Over time

37

20

22

846

925

Total

$
3,433

$
2,674

$
2,592

$
870

$
9,569


	Three Months Ended January 29, 2023
	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Financial Services		Total
Primary geographic markets:
United States	$	2,628	$	1,665	$	1,901	$	713	$	6,907
Canada		360		146		275		150		931
Western Europe		501		564		365		29		1,459
Central Europe and CIS		202		123		75		12		412
Latin America		1,237		156		339		95		1,827
Asia, Africa, Oceania, and Middle East		375		400		300		41		1,116
Total	$	5,303	$	3,054	$	3,255	$	1,040	$	12,652

Major product lines:
Production agriculture	$	5,112							$	5,112
Small agriculture			$	2,194						2,194
Turf				719						719
Construction					$	1,483				1,483
Compact construction						473				473
Roadbuilding						818				818
Forestry						356				356
Financial products		31		18		13	$	1,040		1,102
Other		160		123		112				395
Total	$	5,303	$	3,054	$	3,255	$	1,040	$	12,652

Revenue recognized:
At a point in time	$	5,248	$	3,029	$	3,230	$	23	$	11,530
Over time		55		25		25		1,017		1,122
Total	$	5,303	$	3,054	$	3,255	$	1,040	$	12,652

~~The Company invoices~~We invoice in advance of recognizing the sale of certain products and the revenue for certain 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 ~~telematic services.~~other information enabled solutions. These advanced customer payments are presented as deferred revenue, a contract liability, in “Accounts payable and accrued ~~expenses” in the consolidated balance sheets.~~expenses.” The deferred revenue received, but not recognized in revenue, ~~including extended warranty premiums also shown in Note 16,~~ was ~~$1,502 million, $1,423 million,~~$1,747, $1,697, and ~~$1,348 million~~$1,502 at January 28, 2024, October 29, 2023, ~~October 30, 2022,~~ and January ~~30, 2022,~~29, 2023, respectively. The contract liability is reduced as the revenue is recognized. During the three months ended January 28, 2024 and January 29, 2023, $230 and ~~January 30, 2022,~~ $215, ~~million and $265 million,~~ respectively, of revenue was recognized from deferred revenue that was recorded as a contract liability at the beginning of the respective fiscal year.

The amount of unsatisfied performance obligations for contracts with an original duration greater than one year ~~is $1,282 million~~was $1,531 at January ~~29, 2023.~~28, 2024. The estimated revenue to be recognized by fiscal year ~~in millions of dollars~~ follows: remainder of ~~2023~~2024 ~~- $278,~~ ~~2024~~ ~~- $332,~~– $373, 2025 ~~- $260,~~– $409, 2026 ~~- $168,~~– $304, 2027 ~~- $100,~~– $179, 2028 ~~- $61,~~– $108, 2029 – $74, and later years ~~- $83.~~– $84. As permitted, ~~the Company~~we elected only to disclose remaining performance obligations with an original contract duration greater than one year. The contracts with an expected duration of one year or less are for sales ofto dealers and retail customers for equipment, service parts, repair services, and certain telematics services.

(4) Other Comprehensive Income Items

The after-tax components of accumulated other comprehensive income (loss) ~~in millions of dollars~~ follow:


	January 29		October 30		January 30		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Retirement benefits adjustment	$	(400)	$	(389)	$	(1,379)	$	(866)	$	(845)	$	(400)
Cumulative translation adjustment		(1,913)		(2,594)		(1,745)		(1,877)		(2,151)		(1,913)
Unrealized gain (loss) on derivatives		8		21		(28)		(23)		(8)		8
Unrealized loss on debt securities		(67)		(94)				(97)		(110)		(67)
Total accumulated other comprehensive income (loss)	$	(2,372)	$	(3,056)	$	(3,152)	$	(2,863)	$	(3,114)	$	(2,372)

~~Following are~~The following tables reflect amounts recorded in ~~and~~other comprehensive income (loss), as well as reclassifications out of other comprehensive income (loss), and the income tax effects, in millions of dollars. Retirement benefits adjustment reclassifications for actuarial (gain) loss, prior service (credit) cost, and settlements are included in net periodic pension and other postretirement benefit costs (see Note 6).


	Before		Tax		After		Before		Tax		After
	Tax		(Expense)		Tax		Tax		(Expense)		Tax
Three Months Ended January 29, 2023	Amount		Credit		Amount
Three Months Ended January 28, 2024							Amount		Credit		Amount
Cumulative translation adjustment	$	669	$	12	$	681	$	273	$	1	$	274
Unrealized gain (loss) on derivatives:
Unrealized hedging gain (loss)		(1)				(1)		(8)		2		(6)
Reclassification of realized (gain) loss to:
Interest rate contracts – Interest expense		(15)		3		(12)		(11)		2		(9)
Net unrealized gain (loss) on derivatives		(16)		3		(13)		(19)		4		(15)
Unrealized gain (loss) on debt securities:
Unrealized holding gain (loss)		34		(7)		27		1		6		7
Reclassification of realized (gain) loss – Other income								8		(2)		6
Net unrealized gain (loss) on debt securities		34		(7)		27		9		4		13
Retirement benefits adjustment:
Net actuarial gain (loss)		(1)				(1)		(17)		4		(13)
Reclassification to other operating expenses through amortization of:
Reclassification to Other operating expenses through amortization of:
Actuarial (gain) loss		(21)		5		(16)		(20)		5		(15)
Prior service (credit) cost		9		(3)		6		9		(2)		7
Net unrealized gain (loss) on retirement benefits adjustment		(13)		2		(11)		(28)		7		(21)
Total other comprehensive income (loss)	$	674	$	10	$	684	$	235	$	16	$	251

Before

Tax

After

Tax

(Expense)

Tax

Three Months Ended January 30, 2022

Amount

Credit

Amount

Cumulative translation adjustment

$
(264)

$
(3)

$
(267)

Unrealized gain (loss) on derivatives:

Unrealized hedging gain (loss)

15

(3)

12

Reclassification of realized (gain) loss to:

Interest rate contracts – Interest expense

2

2

Net unrealized gain (loss) on derivatives

17

(3)

14

Unrealized gain (loss) on debt securities:

Unrealized holding gain (loss)

(19)

4

(15)

Net unrealized gain (loss) on debt securities

(19)

4

(15)

Retirement benefits adjustment:

Net actuarial gain (loss) and prior service credit (cost)

(500)

120

(380)

Reclassification to other operating expenses through amortization of:

Actuarial (gain) loss

40

(10)

30

Prior service (credit) cost

6

(2)

4

Settlements

1

1

Net unrealized gain (loss) on retirement benefits adjustment

(453)

108

(345)

Total other comprehensive income (loss)

$
(719)

$
106

$
(613)


	Before		Tax		After
	Tax		(Expense)		Tax
Three Months Ended January 29, 2023	Amount		Credit		Amount
Cumulative translation adjustment	$	669	$	12	$	681
Unrealized gain (loss) on derivatives:
Unrealized hedging gain (loss)		(1)				(1)
Reclassification of realized (gain) loss to:
Interest rate contracts – Interest expense		(15)		3		(12)
Net unrealized gain (loss) on derivatives		(16)		3		(13)
Unrealized gain (loss) on debt securities:
Unrealized holding gain (loss)		34		(7)		27
Net unrealized gain (loss) on debt securities		34		(7)		27
Retirement benefits adjustment:
Net actuarial gain (loss)		(1)				(1)
Reclassification to Other operating expenses through amortization of:
Actuarial (gain) loss		(21)		5		(16)
Prior service (credit) cost		9		(3)		6
Net unrealized gain (loss) on retirement benefits adjustment		(13)		2		(11)
Total other comprehensive income (loss)	$	674	$	10	$	684

(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				Three Months Ended
	January 29		January 30		January 28		January 29
	2023		2022		2024		2023
Net income attributable to Deere & Company	$	1,959	$	903	$	1,751	$	1,959
Average shares outstanding		297.6		307.4		279.9		297.6
Basic per share	$	6.58	$	2.94	$	6.25	$	6.58

Average shares outstanding		297.6		307.4		279.9		297.6
Effect of dilutive share-based compensation		1.5		2.0
Effect of dilutive stock options and restricted stock awards						1.2		1.5
Total potential shares outstanding		299.1		309.4		281.1		299.1
Diluted per share	$	6.55	$	2.92	$	6.23	$	6.55

Shares excluded from EPS calculation, as antidilutive		.1		.1		.2		.1

(6) Pension and Other Postretirement Benefits

~~The Company has~~We have several funded and unfunded defined benefit pension plans and other postretirement benefit (OPEB) plans. These plans ~~primarily health care and life insurance plans, covering its~~cover U.S. employees and ~~employees in~~ certain foreign ~~countries.~~employees. The components of net periodic pension and OPEB (benefit) cost consisted of the ~~following in millions of dollars:~~following:


	Three Months Ended				Three Months Ended
	January 29		January 30		January 28		January 29
	2023		2022		2024		2023
Pension
Pensions
Service cost	$	60	$	85	$	58	$	60
Interest cost		133		77		136		133
Expected return on plan assets		(212)		(182)		(241)		(212)
Amortization of actuarial (gain) loss		(5)		39
Amortization of actuarial gain						(4)		(5)
Amortization of prior service cost		10		7		10		10
Settlements				1
Net (benefit) cost	$	(14)	$	27
Net benefit					$	(41)	$	(14)

OPEB
Service cost	$	7	$	12	$	5	$	7
Interest cost		43		26		43		43
Expected return on plan assets		(29)		(28)		(27)		(29)
Amortization of actuarial (gain) loss		(16)		1
Amortization of actuarial gain						(16)		(16)
Amortization of prior service credit		(1)		(1)		(1)		(1)
Net cost	$	4	$	10	$	4	$	4

~~The reduction in the 2023 pension net (benefit) cost is due to increases in the expected long-term return rates on plan assets and increases in discount rates.~~ The components of net periodic pension and OPEB (benefit) cost excluding the service cost component are included in the line item “Other operating ~~expenses”~~expenses.”

During the first three months of 2024, we contributed and expect to contribute the following amounts to our pension and OPEB plans:


	Pensions		OPEB
Contributed	$	24	$	106
Expected contributions remainder of the year		61		34

In December 2023, we contributed $60 to a U.S. non-union Voluntary Employees’ Beneficiary Association trust, which is included in the ~~statements~~OPEB contributed amount. The contribution will be used to fund salary postretirement health care benefits during the remainder of ~~consolidated income.~~2024.

(7) Segment ~~Reporting~~Data

~~Worldwide Net sales and revenues,~~Information relating to operations by operating ~~profit, and identifiable assets by~~ segment ~~were as follows in millions of dollars.~~follows.


	Three Months Ended					Three Months Ended
	January 29		January 30		%	January 28		January 29		%
	2023		2022		Change	2024		2023		Change
Net sales and revenues:
Production & precision ag net sales	$	5,198	$	3,356	+55	$	4,849	$	5,198	-7
Small ag & turf net sales		3,001		2,631	+14		2,425		3,001	-19
Construction & forestry net sales		3,203		2,544	+26		3,212		3,203
Financial services revenues		1,040		870	+20		1,376		1,040	+32
Other revenues		210		168	+25		323		210	+54
Total net sales and revenues	$	12,652	$	9,569	+32	$	12,185	$	12,652	-4
Operating profit:
Production & precision ag	$	1,208	$	296	+308	$	1,045	$	1,208	-13
Small ag & turf		447		371	+20		326		447	-27
Construction & forestry		625		272	+130		566		625	-9
Financial services		238		296	-20		257		238	+8
Total operating profit		2,518		1,235	+104		2,194		2,518	-13
Reconciling items		(22)		(82)	-73		26		(22)
Income taxes		(537)		(250)	+115		(469)		(537)	-13
Net income attributable to Deere & Company	$	1,959	$	903	+117	$	1,751	$	1,959	-11

Intersegment sales and revenues:
Production & precision ag net sales	$	5	$	4	+25	$	8	$	5	+60
Small ag & turf net sales		3		2	+50		1		3	-67
Construction & forestry net sales
Financial services revenues		204		46	+343		176		204	-14

Operating profit for ~~production~~PPA, SAT, and ~~precision ag, small ag and turf, and construction and forestry~~CF is income from continuing operations before ~~reconciling items~~corporate expenses, certain external interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit of ~~the~~ financial services ~~segment~~ includes the effect of interest expense and foreign exchange gains and losses. Reconciling items to net income are primarily corporate expenses, certain ~~external~~ interest income and expenses, certain foreign exchange gains and losses, pension and OPEB benefit (cost) amounts excluding the service cost component, equity in income of unconsolidated affiliates, and net income attributable to noncontrolling interests.


Identifiable operating assets were as follows:
							January 28		October 29		January 29
	January 29		October 30		January 30		2024		2023		2023
	2023		2022		2022
Identifiable assets:
Production & precision ag	$	9,393	$	8,414	$	7,683	$	9,059	$	8,734	$	9,393
Small ag & turf		4,893		4,451		4,260		4,426		4,348		4,893
Construction & forestry		7,232		6,754		6,358		7,371		7,139		7,232
Financial services		59,721		58,864		50,499		69,900		70,732		59,721
Corporate		10,381		11,547		10,814		10,615		13,134		10,381
Total assets	$	91,620	$	90,030	$	79,614	$	101,371	$	104,087	$	91,620

(8) Financing Receivables

~~The Company monitors~~We monitor the credit quality of financing receivables based on delinquency status. Past due balances of financing receivables still accruing finance income represent the total balance held (principal plus accrued interest) with any payment amounts 30 days or more past the contractual payment due date. Non-performing financing receivables represent receivables for which the Company has ceased accruing finance income. The Company ceases accruing finance income when these receivables are generally 90 days delinquent. Generally, when receivables are 120 days delinquent the estimated uncollectible amount from the customer is written off to the allowance for credit losses. Finance income for non-performing receivables is recognized on a cash basis. Accrual of finance income is generally resumed when the receivable becomes contractually current and collections are reasonably assured.status, defined as follows:

●

Past due balances represent any payments 30 days or more past the due date.

●

Non-performing financing receivables represent receivables for which we have stopped accruing finance income. This generally occurs when receivables are 90 days delinquent.

●

Write-offs generally occur when receivables are 120 days delinquent. In these situations, the estimated uncollectible amount is written off to the allowance for credit losses. Any expected recovery is presented as non-performing.

The credit quality analysis of retail notes, financing leases, and revolving charge accounts (collectively, retail customer receivables) by year of origination was as ~~follows in millions of dollars:~~follows:


	January 29, 2023																January 28, 2024
	2023		2022		2021		2020		2019		Prior Years		Revolving Charge Accounts		Total		2024		2023		2022		2021		2020		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf
Current	$	2,939	$	12,435	$	7,228	$	3,660	$	1,600	$	823	$	2,753	$	31,438	$	3,248	$	13,626	$	7,731	$	4,577	$	2,032	$	931	$	2,798	$	34,943
30-59 days past due		2		39		39		54		13		44		28		219		5		122		66		47		22		11		71		344
60-89 days past due		1		15		14		20		5		15		6		76		1		50		26		15		7		5		16		120
90+ days past due				1				3		1						5				1		1		3		4						9
Non-performing				40		58		41		27		34		8		208				49		95		66		34		42		11		297
Construction and forestry
Current		674		2,692		1,702		684		224		80		99		6,155		803		2,698		1,743		911		276		109		101		6,641
30-59 days past due		2		18		29		36		16		52		5		158		8		73		46		26		8		3		5		169
60-89 days past due				9		17		18		8		24		2		78				26		20		13		6		3		2		70
90+ days past due				1		2		1		2		1				7						2		1				1				4
Non-performing				46		58		30		16		7		1		158		1		67		86		48		20		9		2		233
Total retail customer receivables	$	3,618	$	15,296	$	9,147	$	4,547	$	1,912	$	1,080	$	2,902	$	38,502	$	4,066	$	16,712	$	9,816	$	5,707	$	2,409	$	1,114	$	3,006	$	42,830

October 30, 2022

2022

2021

2020

2019

2018

Prior Years

Revolving Charge Accounts

Total

Retail customer receivables:


















Agriculture and turf

Current

$
13,500

$
7,984

$
4,091

$
1,875

$
785

$
200

$
4,111

$
32,546

30-59 days past due

46

63

36

17

7

3

19

191

60-89 days past due

14

25

13

6

2

1

5

66

90+ days past due

1

1

Non-performing

27

60

44

28

18

19

8

204

Construction and forestry

Current

2,964

1,974

842

292

73

12

108

6,265

30-59 days past due

53

52

23

9

2

1

3

143

60-89 days past due

19

16

7

3

1

1

47

90+ days past due

1

4

1

3

1

10

Non-performing

25

61

34

19

7

3

149

Total retail customer receivables

$
16,650

$
10,239

$
5,091

$
2,252

$
895

$
240

$
4,255

$
39,622


	January 30, 2022																October 29, 2023
	2022		2021		2020		2019		2018		Prior Years		Revolving Charge Accounts		Total		2023		2022		2021		2020		2019		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf
Current	$	2,492	$	11,580	$	5,988	$	3,038	$	1,440	$	761	$	2,634	$	27,933	$	15,191	$	8,430	$	5,120	$	2,334	$	853	$	280	$	4,526	$	36,734
30-59 days past due		5		82		52		30		15		6		25		215		62		75		39		21		9		3		29		238
60-89 days past due		1		23		18		10		5		3		5		65		18		26		18		10		4		2		9		87
90+ days past due				1												1		2		1		3		3								9
Non-performing		1		33		58		52		31		36		6		217		30		78		62		33		22		22		8		255
Construction and forestry
Current		764		2,795		1,376		615		204		49		81		5,884		2,927		1,961		1,084		353		84		29		119		6,557
30-59 days past due		8		68		35		21		6		2		3		143		49		34		27		9		4				4		127
60-89 days past due				30		17		7		3		1		1		59		19		14		12		5		2				2		54
90+ days past due				2		3		3		1		8				17				6		1						1				8
Non-performing				33		48		37		14		7		1		140		42		80		55		23		9		4		1		214
Total retail customer receivables	$	3,271	$	14,647	$	7,595	$	3,813	$	1,719	$	873	$	2,756	$	34,674	$	18,340	$	10,705	$	6,421	$	2,791	$	987	$	341	$	4,698	$	44,283


	January 29, 2023
	2023		2022		2021		2020		2019		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf
Current	$	2,939	$	12,435	$	7,228	$	3,660	$	1,600	$	823	$	2,753	$	31,438
30-59 days past due		2		39		39		54		13		44		28		219
60-89 days past due		1		15		14		20		5		15		6		76
90+ days past due				1				3		1						5
Non-performing				40		58		41		27		34		8		208
Construction and forestry
Current		674		2,692		1,702		684		224		80		99		6,155
30-59 days past due		2		18		29		36		16		52		5		158
60-89 days past due				9		17		18		8		24		2		78
90+ days past due				1		2		1		2		1				7
Non-performing				46		58		30		16		7		1		158
Total retail customer receivables	$	3,618	$	15,296	$	9,147	$	4,547	$	1,912	$	1,080	$	2,902	$	38,502

The credit quality analysis of wholesale receivables by year of origination was as ~~follows in millions of dollars:~~follows:


	January 29, 2023																January 28, 2024
	2023		2022		2021		2020		2019		Prior Years		Revolving		Total		2024		2023		2022		2021		2020		Prior Years		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current	$	115	$	285	$	48	$	21	$	4	$	1	$	2,654	$	3,128	$	266	$	463	$	68	$	6	$	3	$	1	$	5,757	$	6,564
30+ days past due																				1												1
Non-performing								1								1												1				1
Construction and forestry
Current		7		7		24		2				1		459		500		6		14		4		19				1		863		907
30+ days past due
Non-performing
Total wholesale receivables	$	122	$	292	$	72	$	24	$	4	$	2	$	3,113	$	3,629	$	272	$	478	$	72	$	25	$	3	$	3	$	6,620	$	7,473

October 30, 2022

2022

2021

2020

2019

2018

Prior Years

Revolving

Total

Wholesale receivables:






















Agriculture and turf

Current

$
387

$
64

$
27

$
4

$
2

$
2,371

$
2,855

30+ days past due

Non-performing

1

1

Construction and forestry

Current

7

29

2

1

1

377

417

30+ days past due

Non-performing

Total wholesale receivables

$
394

$
93

$
29

$
6

$
3

$
2,748

$
3,273


	January 30, 2022																October 29, 2023
	2022		2021		2020		2019		2018		Prior Years		Revolving		Total		2023		2022		2021		2020		2019		Prior Years		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current	$	101	$	244	$	56	$	11	$	7	$	2	$	1,426	$	1,847	$	631	$	93	$	21	$	4	$	1	$	160	$	5,175	$	6,085
30+ days past due
Non-performing								7								7										1						1
Construction and forestry
Current		5		38		4		3				1		285		336		23		5		20						76		712		836
30+ days past due												1				1
Non-performing
Total wholesale receivables	$	106	$	282	$	60	$	21	$	7	$	4	$	1,711	$	2,191	$	654	$	98	$	41	$	4	$	2	$	236	$	5,887	$	6,922


	January 29, 2023
	2023		2022		2021		2020		2019		Prior Years		Revolving		Total
Wholesale receivables:
Agriculture and turf
Current	$	115	$	285	$	48	$	21	$	4	$	1	$	2,654	$	3,128
30+ days past due
Non-performing								1								1
Construction and forestry
Current		7		7		24		2				1		459		500
30+ days past due
Non-performing
Total wholesale receivables	$	122	$	292	$	72	$	24	$	4	$	2	$	3,113	$	3,629

An analysis of the allowance for credit losses and investment in financing receivables ~~in millions of dollars during the periods~~ follows:

Three Months Ended January 29, 2023

Retail Notes

Revolving

& Financing

Charge

Wholesale

Leases

Accounts

Receivables

Total

Allowance:











Beginning of period balance

$
299

$
22

$
4

$
325

Provision (credit)

15

(4)

11

Provision transferred to held for sale

(142)

(142)

Provision (credit) subtotal

(127)

(4)

(131)

Write-offs

(18)

(7)

(25)

Recoveries

4

5

1

10

Translation adjustments

(18)

(1)

(19)

End of period balance

$
140

$
16

$
4

$
160

Financing receivables:

End of period balance

$
35,600

$
2,902

$
3,629

$
42,131


	Three Months Ended January 30, 2022								Three Months Ended January 28, 2024
	Retail Notes		Revolving						Retail Notes		Revolving
	& Financing		Charge		Wholesale				& Financing		Charge		Wholesale
	Leases		Accounts		Receivables		Total		Leases		Accounts		Receivables		Total
Allowance:
Beginning of period balance	$	138	$	21	$	7	$	166	$	172	$	21	$	4	$	197
Provision (credit)		13		(9)		(2)		2		35		(2)				33
Write-offs		(17)		(5)				(22)		(31)		(11)				(42)
Recoveries		4		8				12		1		8				9
Translation adjustments														(2)		(2)
End of period balance	$	138	$	15	$	5	$	158	$	177	$	16	$	2	$	195

Financing receivables:
End of period balance	$	31,918	$	2,756	$	2,191	$	36,865	$	39,824	$	3,006	$	7,473	$	50,303


	Three Months Ended January 29, 2023
	Retail Notes		Revolving
	& Financing		Charge		Wholesale
	Leases		Accounts		Receivables		Total
Allowance:
Beginning of period balance	$	299	$	22	$	4	$	325
Provision (credit)		15		(4)				11
Provision transferred to held for sale		(142)						(142)
Provision (credit)		(127)		(4)				(131)
Write-offs		(18)		(7)				(25)
Recoveries		4		5		1		10
Translation adjustments		(18)				(1)		(19)
End of period balance	$	140	$	16	$	4	$	160

Financing receivables:
End of period balance	$	35,600	$	2,902	$	3,629	$	42,131

The allowance for credit losses remained generally flat in the first quarter of 2024. In the first quarter of 2023, ~~the Company~~we determined that the financial services business in Russia met the held for sale criteria. The financing receivables in Russia were reclassified to “Other ~~assets” and the~~assets.” The associated allowance for credit losses was reversed and a valuation allowance for the assets held for sale was recorded. These operations were sold in the second quarter of 2023 (see Note 20). ~~Excluding~~

Write-offs by year of origination were as follows:


	Three Months Ended January 28, 2024
	2024	2023		2022		2021		2020		Prior Years		Revolving Charge Accounts		Total
Retail customer receivables:
Agriculture and turf		$	2	$	4	$	3	$	4	$	1	$	9	$	23
Construction and forestry			6		7		2		1		1		2		19
Total retail customer receivables		$	8	$	11	$	5	$	5	$	2	$	11	$	42

Modifications

We occasionally grant contractual modifications to customers experiencing financial difficulties. Before offering a modification, we evaluate the ~~portfolio in Russia,~~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. Our allowance for credit losses ~~decreased~~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 modified loans with borrowers experiencing financial difficulty during the ~~first quarter~~three months ended January 28, 2024 were $17, of ~~2023, as~~which $16 were current and $1 were non-performing. These modifications represented 0.03 percent of our financing receivable portfolio at January 28, 2024.

Defaults and subsequent write-offs of loans modified in the prior twelve months were not significant during the three months ended January 28, 2024. In addition, at January 28, 2024, we had no commitments to provide additional financing ~~receivables continue~~ to ~~benefit from strong fundamentals within the agricultural market.~~these customers.

(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 a part of ~~its overall funding strategy,~~step 1, these receivables are legally isolated from the ~~Company periodically transfers certain~~claims of our general creditors. This ensures cash receipts from the financing receivables ~~(retail notes) into VIEs that~~ are ~~special purpose entities (SPEs), or non-VIE banking operations, as part of its asset-backed securities programs (securitizations).~~accessible to pay back securitization program investors. The structure of these transactions ~~is such that the transfer of the retail notes~~ does not meet the accounting criteria for ~~sales~~a sale of ~~receivables, and is, therefore,~~receivables. As a result, they are accounted for as a secured borrowing. ~~SPEs utilized in securitizations of retail notes differ from other entities included in the Company’s consolidated statements because the assets they hold~~The receivables and borrowings remain on our balance sheet and are ~~legally isolated. Use of the assets held by the SPEs or the non-VIEs is restricted by terms of the documents governing the~~separately reported as “Financing receivables securitized – net” and “Short-term securitization ~~transactions.~~borrowings,” respectively.

The components of ~~consolidated restricted assets, secured borrowings, and other liabilities related to secured borrowings in~~ securitization ~~transactions~~programs were as ~~follows in millions of dollars:~~follows:


	January 29		October 30		January 30		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Financing receivables securitized (retail notes)	$	5,102	$	5,952	$	3,526	$	6,418	$	7,357	$	5,102
Allowance for credit losses		(13)		(16)		(10)		(18)		(22)		(13)
Other assets (primarily restricted cash)		97		155		100		140		152		97
Total restricted securitized assets	$	5,186	$	6,091	$	3,616	$	6,540	$	7,487	$	5,186

Short-term securitization borrowings	$	4,864	$	5,711	$	3,482	$	6,116	$	6,995	$	4,864
Accrued interest on borrowings		6		6		1		10		13		6
Total liabilities related to restricted securitized assets	$	4,870	$	5,717	$	3,483	$	6,126	$	7,008	$	4,870

(10) Inventories

A majority of ~~inventory~~inventories owned by ~~Deere & Company and its U.S. equipment subsidiaries~~us are valued at cost on the “last-in, first-out” (LIFO) basis. If all ~~of the Company’s~~ inventories had been valued on a “first-in, first-out” (FIFO) basis, the estimated inventories by major classification ~~in millions of dollars~~ would have been as follows:


	January 29		October 30		January 30		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Raw materials and supplies	$	4,975	$	4,442	$	4,034	$	4,117	$	4,080	$	4,975
Work-in-process		1,478		1,190		1,460		1,223		1,010		1,478
Finished goods and parts		6,347		5,363		4,790		6,146		5,435		6,347
Total FIFO value		12,800		10,995		10,284		11,486		10,525		12,800
Less adjustment to LIFO value		2,744		2,500		2,349
Excess of FIFO over LIFO								2,549		2,365		2,744
Inventories	$	10,056	$	8,495	$	7,935	$	8,937	$	8,160	$	10,056

~~(11)~~~~Goodwill and Other Intangible Assets-Net~~

~~The changes in amounts of goodwill by operating segment were as follows in millions of dollars:~~

Production & Precision Ag

Small Ag & Turf

Construction & Forestry

Total

Goodwill at October 31, 2021

$
542

$
265

$
2,484

$
3,291

Acquisition

7

7

4

18

Translation adjustments

(5)

(2)

(110)

(117)

Goodwill at January 30, 2022

$
544

$
270

$
2,378

$
3,192

Goodwill at October 30, 2022

$
646

$
318

$
2,723

$
3,687

Translation adjustments

15

7

182

204

Goodwill at January 29, 2023

$
661

$
325

$
2,905

$
3,891

~~There were no accumulated goodwill impairment losses in the reported periods.~~

(11)Goodwill and Other Intangible Assets – Net

The changes in amounts of goodwill by operating segments were as follows. There were no accumulated goodwill impairment losses.


	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Total
Goodwill at October 30, 2022	$	646	$	318	$	2,723	$	3,687
Translation adjustments		15		7		182		204
Goodwill at January 29, 2023	$	661	$	325	$	2,905	$	3,891

Goodwill at October 29, 2023	$	702	$	363	$	2,835	$	3,900
Translation adjustments		4		2		60		66
Goodwill at January 28, 2024	$	706	$	365	$	2,895	$	3,966

The components of other intangible assets were as ~~follows in millions of dollars:~~follows:


	January 29		October 30		January 30		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Amortized intangible assets:
Customer lists and relationships	$	522	$	493	$	526	$	509	$	501	$	522
Technology, patents, trademarks, and other		1,387		1,301		1,066		1,412		1,387		1,387
Total at cost		1,909		1,794		1,592		1,921		1,888		1,909
Less accumulated amortization:
Customer lists and relationships		184		166		156		207		195		184
Technology, patents, trademarks, and other		470		410		350		602		560		470
Total accumulated amortization		654		576		506		809		755		654
Amortized intangible assets		1,255		1,218		1,086
Unamortized intangible assets:
In-process research and development						123
Other intangible assets – net	$	1,255	$	1,218	$	1,209	$	1,112	$	1,133	$	1,255

In September 2017, the Company acquired Blue River Technology’s in-process research and development related to machine learning technology to optimize the use of farm inputs. Those research and development activities were completed, and the Company started amortizing the acquired technology in the second quarter of 2022.

The amortization of other intangible assets in the first quarter of 2024 and 2023 was $42 and ~~2022 was~~ $39, ~~million and $28 million,~~ respectively. The estimated amortization expense for the next five years is as ~~follows in millions of dollars:~~follows: remainder of ~~2023 – $132,~~ 2024 – ~~$167,~~$131, 2025 – ~~$139,~~$144, 2026 – ~~$119,~~$121, 2027 – ~~$118, and~~$119, 2028 – ~~$86.~~$87, and 2029 – $74.

(12) Short-Term Borrowings

Short-term borrowings were as ~~follows in millions of dollars:~~follows:


	January 29		October 30		January 30		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Commercial paper	$	6,425	$	4,703	$	2,135	$	8,378	$	9,100	$	6,425
Notes payable to banks		303		402		519		310		483		303
Finance lease obligations due within one year		23		21		23		27		25		23
Long-term borrowings due within one year		7,378		7,466		8,313		8,402		8,331		7,378
Short-term borrowings	$	14,129	$	12,592	$	10,990	$	17,117	$	17,939	$	14,129

(13)Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses ~~were as follows in millions~~consisted of ~~dollars:~~the following:


	January 29		October 30		January 30		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Accounts payable:
Trade payables	$	3,616	$	3,894	$	3,035	$	3,184	$	3,467	$	3,616
Payables to unconsolidated affiliates		10		11		172
Dividends payable		358		343		325		413		388		358
Operating lease liabilities		305		302		267		293		281		305
Deposits withheld from dealers and merchants		153		163		148		153		163		153
Payables to unconsolidated affiliates								6		6		10
Other		156		214		160		183		153		156
Accrued expenses:
Employee benefits								1,107		2,152		1,015
Product warranties								1,589		1,610		1,444
Accrued taxes								1,364		1,558		1,336
Derivative liabilities								744		1,130		891
Dealer sales discounts		256		1,044		182		243		1,243		256
Product warranties		1,444		1,427		1,283
Employee benefits		1,015		1,528		765
Accrued taxes		1,336		1,255		974
Extended warranty premium								1,047		1,021		901
Unearned revenue (contractual liability)								700		676		601
Unearned operating lease revenue		406		399		385		456		451		406
Unearned revenue (contractual liability)		601		557		567
Extended warranty premium		901		866		781
Accrued interest		371		288		280		502		434		371
Derivative liabilities		891		1,231		276
Other		1,289		1,300		1,051		1,377		1,397		1,289
Total accounts payable and accrued expenses	$	13,108	$	14,822	$	10,651
Accounts payable and accrued expenses							$	13,361	$	16,130	$	13,108

Amounts are presented net of eliminations, which primarily consist of dealer sales incentives with a right of set-off against trade receivables of $2,410 at January 28, 2024, $2,228 at October 29, 2023, and $1,540 ~~million~~ at January 29, ~~2023, $1,280 million at October 30, 2022, and $983 million at January 30, 2022.~~2023. Other eliminations were made for accrued taxes and other accrued expenses.

(14) Long-Term Borrowings

Long-term borrowings ~~were as follows in millions of dollars:~~consisted of:


	January 29		October 30		January 30		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Underwritten term debt
U.S. dollar notes and debentures:
2.75% notes due 2025	$	700	$	700	$	700	$	700	$	700	$	700
6.55% debentures due 2028		200		200		200		200		200		200
5.375% notes due 2029		500		500		500		500		500		500
3.10% notes due 2030		700		700		700		700		700		700
8.10% debentures due 2030		250		250		250		250		250		250
7.125% notes due 2031		300		300		300		300		300		300
3.90% notes due 2042		1,250		1,250		1,250		1,250		1,250		1,250
2.875% notes due 2049		500		500		500		500		500		500
3.75% notes due 2050		850		850		850		850		850		850
Euro notes:
.5% notes due 2023 (€500 principal)						557
1.375% notes due 2024 (€800 principal)		871		797		891						871
1.85% notes due 2028 (€600 principal)		653		598		669		651		634		653
2.20% notes due 2032 (€600 principal)		653		598		669		651		634		653
1.65% notes due 2039 (€650 principal)		708		648		724		705		687		708
Serial issuances:
Medium-term notes: (principal as of: January 29, 2023 - $26,367, October 30, 2022 - $25,629, January 30, 2022 - $22,896)		25,618		24,604		22,947
Medium-term notes								31,001		29,638		25,618
Other notes and finance lease obligations		1,440		1,223		1,246		1,810		1,769		1,440
Less debt issuance costs and debt discounts		(122)		(122)		(115)		(135)		(135)		(122)
Long-term borrowings	$	35,071	$	33,596	$	32,838	$	39,933	$	38,477	$	35,071

Medium-term notes ~~serially~~ due through ~~2032~~2033 are primarily offered by prospectus and issued at fixed and variable rates. ~~These~~The principal balances of the medium-term notes ~~are presented in the table above with fair value adjustments related to interest rate swaps.~~were $31,808, $30,902, and $26,367 at January 28, 2024, October 29, 2023, and January 29, 2023, respectively. All outstanding notes and debentures are senior unsecured borrowings and rank equally with each other.

(15) Leases - Lessor

~~The Company leases~~We lease equipment manufactured or sold by ~~the Company and a limited amount of non-John~~us through John Deere ~~equipment to retail customers through sales-type, direct financing, and operating leases.~~Financial. Sales-type and direct financing leases are reported in ~~Financing~~“Financing receivables – ~~net on the consolidated balance sheets, while operating~~net.” Operating leases are reported in ~~Equipment~~“Equipment on operating leases – net.”

Lease revenues earned by ~~the Company were as follows in millions of dollars:~~us follow:


					Three Months Ended
	Three Months Ended				January 28		January 29
	January 29, 2023		January 30, 2022		2024		2023
Sales-type and direct finance lease revenues	$	41	$	39	$	47	$	41
Operating lease revenues		321		336		339		321
Variable lease revenues		6		7		4		6
Total lease revenues	$	368	$	382	$	390	$	368

(16) Commitments and Contingencies

A standard warranty is provided as assurance that the equipment will function as intended. The ~~Company determines its total~~standard warranty ~~liability~~period varies by ~~applying~~product and region. At the time a sale is recognized, we record an estimate of future warranty costs based on historical claims rate experience ~~to the~~and estimated ~~amount of equipment that has been sold and is still~~population under ~~warranty based on dealer inventories and retail sales. The historical claims rate is determined by a review of five-year claims costs and current quality developments.~~warranty.

The premiums for extended warranties are recognized in Other income in the statements of consolidated income in proportion to the costs expected to be incurred over the contract period. The unamortized extended warranty premiums (deferred revenue) included in the following table totaled $901 million and $781 million at January 29, 2023 and January 30, 2022, respectively.

A reconciliation of the changes in the warranty liability ~~and unearned premiums in millions of dollars~~ follows:


	Three Months Ended				Three Months Ended
	January 29		January 30		January 28		January 29
	2023		2022		2024		2023
Beginning of period balance	$	2,293	$	2,086	$	1,610	$	1,427
Payments		(263)		(193)
Amortization of premiums received		(83)		(66)
Accruals for warranties		255		181
Premiums received		106		83
Warranty claims paid						(309)		(262)
New product warranty accruals						281		256
Foreign exchange		37		(27)		7		23
End of period balance	$	2,345	$	2,064	$	1,589	$	1,444

~~At January 29, 2023, the Company had $235 million of~~The costs for extended warranty programs are recognized as incurred.

In certain international markets, we provide guarantees ~~issued~~ to banks ~~outside the U.S. and Canada related to third-party receivables~~ for the retail financing of John Deere equipment. ~~The Company~~At January 28, 2024, the notional value of these guarantees was $166. We may ~~recover a portion of any required payments incurred under these agreements from repossession of~~repossess the equipment collateralizing the receivables. At January ~~29, 2023,~~28, 2024, the accrued losses under these agreements were not material. ~~The maximum remaining term of the receivables guaranteed~~

We also had other miscellaneous contingent liabilities and guarantees totaling approximately $115 at January ~~29, 2023~~28, 2024. The accrued liability for these contingencies was ~~about seven years.~~not material at January 28, 2024.

At January ~~29, 2023, the Company~~28, 2024, we had commitments of ~~$467 million~~$597 for the construction and acquisition of property and equipment. Also, at January ~~29, 2023, the Company~~28, 2024, we had restricted assets of ~~$269 million,~~$214, classified as “Other assets.”

The Company also had other miscellaneous contingent liabilities and guarantees totaling approximately $90 million at January 29, 2023. The accrued liability for these contingencies was not material at January 29, 2023.

~~The Company is~~We are subject to various unresolved legal actions which arise in the normal course of its business, the most prevalent of which relate to product liability (including asbestos-related liability), retail credit, employment, patent, trademark, and antitrust matters.actions. The ~~Company believes~~accrued losses on these matters are not material. We believe the reasonably possible range of losses for these unresolved legal actions would not have a material effect on ~~its consolidated~~our financial ~~statements~~statements. The most prevalent legal claims relate to product liability (including asbestos-related liability), retail credit, employment, patent, trademark, and antitrust matters.

(17) Fair Value Measurements

The fair values of financial instruments that do not approximate the carrying values were as ~~follows in millions of dollars.~~follows. Long-term borrowings exclude finance lease liabilities.


	January 29, 2023				October 30, 2022				January 30, 2022				January 28, 2024				October 29, 2023				January 29, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Financing receivables – net	$	36,882	$	35,894	$	36,634	$	35,526	$	33,191	$	33,033	$	43,708	$	43,236	$	43,673	$	42,777	$	36,882	$	35,894
Financing receivables securitized – net		5,089		4,869		5,936		5,698		3,516		3,530		6,400		6,225		7,335		7,056		5,089		4,869
Short-term securitization borrowings		4,864		4,785		5,711		5,577		3,482		3,468		6,116		6,104		6,995		6,921		4,864		4,785
Long-term borrowings due within one year		7,378		7,220		7,466		7,322		8,313		8,322		8,402		8,283		8,331		8,156		7,378		7,220
Long-term borrowings		35,035		34,149		33,566		31,852		32,806		33,843		39,878		39,321		38,428		36,873		35,035		34,149

Fair value measurements above were Level 3 for all financing receivables and Level 2 for all borrowings.

Fair values of the financing receivables that were issued long-term were based on the discounted values of their related cash flows at interest rates currently being offered by ~~the Company~~us for similar financing receivables. The fair values of the remaining financing receivables approximated the carrying amounts.

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 included adjustments related to fair value hedges.~~

Assets and liabilities measured at fair value on a recurring basis ~~in millions of dollars~~ follow, excluding ~~the Company’s~~our cash equivalents, which were carried at a cost that approximates fair value and consisted of money market funds and time deposits.


	January 29		October 30		January 30		January 28		October 29		January 29
	2023		2022		2022		2024		2023		2023
Level 1:
Marketable securities
International equity securities	$	2	$	3	$	2	$	5	$	3	$	2
International mutual funds securities								57		101
U.S. equity fund		86		70		72		105		86		86
U.S. fixed income fund		118						34		32		118
U.S. government debt securities		64		62		63		274		78		64
Total Level 1 marketable securities		270		135		137		475		300		270

Level 2:
Marketable securities
U.S. government debt securities		127		121		138
Municipal debt securities		71		63		74
Corporate debt securities		209		200		229		220		244		209
International debt securities		18		60		2		87		1		18
Mortgage-backed securities		157		155		155		161		185		157
Municipal debt securities								69		75		71
U.S. government debt securities								124		141		127
Total Level 2 marketable securities		582		599		598		661		646		582
Other assets – Derivatives		360		373		299		253		292		360
Accounts payable and accrued expenses – Derivatives		891		1,231		276		744		1,130		891

Level 3:
Accounts payable and accrued expenses – Deferred consideration		225		236				176		186		225

The mortgage-backed securities are primarily issued by U.S. government sponsored enterprises.

The contractual maturities of debt securities at January ~~29, 2023 in millions of dollars are shown below.~~ 28, 2024 follow:


	Amortized		Fair
	Cost		Value
Due in one year or less	$	22	$	21
Due after one through five years		242		194
Due after five through 10 years		421		398
Due after 10 years		192		161
Mortgage-backed securities		189		161
Debt securities	$	1,066	$	935

Actual maturities may differ from contractual maturities because some securities may be called or prepaid. ~~Because of the potential for~~Mortgage-backed securities contain prepayment ~~on mortgage-backed securities, they~~provisions and are not categorized by contractual maturity.

Amortized

Fair

Cost

Value

Due in one year or less

$
35

$
35

Due after one through five years

111

105

Due after five through 10 years

197

176

Due after 10 years

204

173

Mortgage-backed securities

182

157

Debt securities

$
729

$
646

~~Fair value, nonrecurring Level 3 measurements from impairments, excluding financing receivables with specific allowances which were not significant, were as follows in millions of dollars.~~

Fair Value

Losses

Three Months Ended

January 29

October 30

January 30

January 29

January 30


2023

2022

2022

2023

2022

Inventories

$
19

Property and equipment – net

15

The following is a description of the valuation methodologies ~~the Company uses~~we use to measure certain financial instruments on the balance ~~sheet~~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 ~~closing~~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 ~~the active market in which the investment trades.~~inactive markets.

Derivatives – ~~The Company’s~~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.

Financing receivables – Specific reserve impairments are based on the fair value of the collateral, which is measured using a market approach (appraisal values or realizable values).

~~Inventories – The impairment was based on net realizable value.~~

~~Property and equipment - net – The valuations were based on cost and market approaches. The inputs include replacement cost estimates adjusted for physical deterioration and economic obsolescence.~~

(18) Derivative Instruments

~~The Company’s policy is to execute~~Fair values of our derivative ~~transactions to manage exposures arising in~~instruments and the ~~normal course of business and not for the purpose of creating speculative positions or trading. The financial services operations manage the relationship of the types and~~associated notional amounts of their funding sources to their receivable and lease portfolio in an effort to diminish risk due to interest rate and foreign currency fluctuations, while responding to favorable financing opportunities. The Company also has foreign currency exposures at some of its foreign and domestic operations related to buying, selling, and financing in currencies other than the functional currencies. In addition, the Company has interest rate and foreign currency exposure at certain equipment operations units for sales incentive programs.

~~All derivatives~~were as follows. Assets are recorded ~~at fair value on the balance sheets. Cash collateral received or paid is not offset against the derivative fair values on the balance sheet. The cash flows from the derivative contracts were~~in “Other assets,” while liabilities are recorded in operating activities in the statements of consolidated cash flows. Each derivative is designated as a cash flow hedge, a fair value hedge, or remains undesignated. All designated hedges are formally documented as to the relationship with the hedged item as well as the risk-management strategy. Both at“Accounts payable and accrued expenses.”


	January 28, 2024						October 29, 2023						January 29, 2023
			Fair Value						Fair Value						Fair Value
	Notional		Assets		Liabilities		Notional		Assets		Liabilities		Notional		Assets		Liabilities
Cash flow hedges:
Interest rate contracts	$	2,200	$	27	$	4	$	1,500	$	45			$	1,950	$	69

Fair value hedges:
Interest rate contracts		12,633		58		592		12,691			$	970		10,802		21	$	678

Not designated as hedging instruments:
Interest rate contracts		14,200		129		82		13,853		169		98		11,147		188		97
Foreign exchange contracts		7,856		39		53		8,117		75		54		9,304		71		110
Cross-currency interest rate contracts		189				13		176		3		8		234		11		6

inception and on an ongoing basis the hedging instrument is assessed as to its effectiveness. If and when a derivative is determined not to be highly effective as a hedge, the underlying hedged transaction is no longer likely to occur, the hedge designation is removed, or the derivative is terminated, hedge accounting is discontinued.

~~Cash Flow Hedges~~

Certain interest rate contracts (swaps) were designated as hedges of future cash flows from borrowings. The total notional amounts of the receive-variable/pay-fixed interest rate contracts at January 29, 2023, October 30, 2022, and January 30, 2022 were $1,950 million, $1,950 million, and $2,700 million, respectively. Fair value gains or losses on cash flow hedges were recorded in other comprehensive income (OCI) and are subsequently reclassified into interest expense in the same periods during which the hedged transactions impact earnings. These amounts offset the effects of interest rate changes on the related borrowings.

The amount of gain recorded in OCI at January 29, 2023 that is expected to be reclassified to interest expense in the next twelve months if interest rates remain unchanged is $38 million after-tax. No gains or losses were reclassified from OCI to earnings based on the probability that the original forecasted transaction would not occur.

~~Fair Value Hedges~~

Certain interest rate contracts (swaps) were designated as fair value hedges of borrowings. The total notional amounts of the receive-fixed/pay-variable interest rate contracts at January 29, 2023, October 30, 2022, and January 30, 2022 were $10,802 million, $10,112 million, and $8,307 million, respectively. The fair value gains or losses on these contracts were generally offset by fair value gains or losses on the hedged items (fixed-rate borrowings) with both items recorded in interest expense.

The amounts recorded in the consolidated balance sheet related to borrowings designated in fair value hedging relationships were as follows in millions of dollars. Fair value hedging adjustments are included in the carrying amount of the hedged item.

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

January 29, 2023

Short-term borrowings

$
1,915

$
15

Long-term borrowings

$
10,088

$
(666)

5,506

(83)

October 30, 2022

Short-term borrowings

$
2,515

$
15

Long-term borrowings

$
9,060

$
(1,006)

5,520

(19)

January 30, 2022

Short-term borrowings

$
177

$
2

$
2,357

$
8

Long-term borrowings

7,966

(130)

5,447

181

~~Derivatives not designated as hedging instruments~~

The Company has certain interest rate contracts (swaps), foreign currency exchange contracts (futures, forwards, and swaps), and cross-currency interest rate contracts (swaps), which were not formally designated as hedges. These derivatives were held as economic hedges for underlying interest rate or foreign currency exposures for certain borrowings, purchases or sales of inventory, and sales incentive programs. The total notional amounts of these interest rate swaps at January 29, 2023, October 30, 2022, and January 30, 2022 were $11,147 million, $10,568 million, and $10,210 million, the foreign exchange contracts were $9,304 million, $8,185 million, and $7,864 million, and the cross-currency interest rate contracts were $234 million, $260 million, and $303 million, respectively. The fair value gains or losses from derivatives not designated as hedging instruments were recorded in the statements of consolidated income, generally offsetting over time the exposure on the hedged item.

~~Fair values of derivative instruments~~The amounts recorded in the ~~condensed~~ consolidated balance sheets related to borrowings designated in ~~millions~~fair value hedging relationships were as follows. Fair value hedging adjustments are included in the carrying amount of ~~dollars follow:~~the hedged item.

January 29

October 30

January 30

Other Assets

2023

2022

2022

Designated as hedging instruments:

Interest rate contracts

$
90

$
87

$
102

Not designated as hedging instruments:

Interest rate contracts

188

212

82

Foreign exchange contracts

71

66

91

Cross-currency interest rate contracts

11

8

24

Total not designated

270

286

197

Total derivative assets

$
360

$
373

$
299

Accounts Payable and Accrued Expenses

Designated as hedging instruments:

Interest rate contracts

$
678

$
1,004

$
185

Not designated as hedging instruments:

Interest rate contracts

97

107

27

Foreign exchange contracts

110

118

64

Cross-currency interest rate contracts

6

2

Total not designated

213

227

91

Total derivative liabilities

$
891

$
1,231

$
276


	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
January 28, 2024
Short-term borrowings	$	288	$	(9)	$	1,960	$	10
Long-term borrowings		11,745		(537)		7,711		(270)

October 29, 2023
Short-term borrowings					$	1,814	$	15
Long-term borrowings	$	11,660	$	(976)		7,144		(288)

January 29, 2023
Short-term borrowings					$	1,915	$	15
Long-term borrowings	$	10,088	$	(666)		5,506		(83)

The classification and gains (losses) including accrued interest expense related to derivative instruments on the statements of consolidated income consisted of the ~~following in millions of dollars:~~following:


	Three Months Ended
	January 28		January 29
	2024		2023
Fair Value Hedges
Interest rate contracts - Interest expense	$	344	$	239

Cash Flow Hedges
Recognized in OCI:
Interest rate contracts - OCI (pretax)	$	(8)	$	(1)

Reclassified from OCI:
Interest rate contracts - Interest expense		11		15

Not Designated as Hedges
Interest rate contracts - Net sales			$	(7)
Interest rate contracts - Interest expense	$	(9)		(8)
Foreign exchange contracts - Net sales		5		1
Foreign exchange contracts - Cost of sales		(30)		5
Foreign exchange contracts - Other operating expenses		(181)		(142)
Total not designated	$	(215)	$	(151)

Three Months Ended

January 29

January 30

2023

2022

Fair Value Hedges





Interest rate contracts - Interest expense

$
239

$
(141)

Cash Flow Hedges

Recognized in OCI:

Interest rate contracts - OCI (pretax)

$
(1)

$
15

Reclassified from OCI:

Interest rate contracts - Interest expense

15

(2)

Not Designated as Hedges

Interest rate contracts - Net sales

$
(7)

$
13

Interest rate contracts - Interest expense *

(8)

(1)

Foreign exchange contracts - Net sales

1

Foreign exchange contracts - Cost of sales

5

(1)

Foreign exchange contracts - Other operating expenses *

(142)

147

Total not designated

$
(151)

$
158

*~~Includes interest~~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 ~~foreign exchange gains (losses) from cross-currency interest rate contracts.~~credit ratings. The aggregate fair value of all derivatives with credit-risk-related contingent features that were in a net liability position at January 28, 2024, October 29, 2023, and January 29, 2023 was $691, $1,076, and $781, respectively. In accordance with the limits established in these agreements, we posted $368, $659, and $349 of cash collateral at January 28, 2024, October 29, 2023, and January 29, 2023, respectively. In addition, we paid $8 of collateral that was outstanding at January 28, 2024, October 29, 2023, and January 29, 2023 to participate in an international futures market to hedge currency exposure, not included in the table below.

2322

~~Counterparty Risk and Collateral~~

Derivative instruments are subject to significant concentrations of credit risk to the banking sector. The Company manages individual counterparty exposure by setting limits that consider the credit rating of the counterparty, the credit default swap spread of the counterparty, and other financial commitments and exposures between the Company and the counterparty banks. All interest rate derivatives are transacted under International Swaps and Derivatives Association (ISDA) documentation. Some of these agreements include credit support provisions. Each master agreement permits the net settlement of amounts owed in the event of default or termination.

Certain of the Company’s derivative agreements contain credit support provisions that may require the Company 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 January 29, 2023, October 30, 2022, and January 30, 2022 was $781 million, $1,113 million, and $213 million, respectively. In accordance with the limits established in these agreements, the Company posted $349 million, $701 million, and $18 million of cash collateral at January 29, 2023, October 30, 2022, and January 30, 2022, respectively. In addition, the Company paid $8 million of collateral that was outstanding at January 29, 2023, October 30, 2022, and January 30, 2022 to participate in an international futures market to hedge currency exposure, not included in the table below.

Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities related to netting arrangements and any collateral received or paid ~~in millions of dollars~~ follows:


									Gross Amounts		Netting
January 28, 2024									Recognized		Arrangements		Collateral		Net Amount
Assets									$	253	$	(112)	$	(19)	$	122
Liabilities										744		(112)		(368)		264

									Gross Amounts		Netting
October 29, 2023									Recognized		Arrangements		Collateral		Net Amount
Assets									$	292	$	(152)			$	140
Liabilities										1,130		(152)	$	(659)		319

	Gross Amounts		Netting						Gross Amounts		Netting
January 29, 2023	Recognized		Arrangements		Collateral		Net Amount		Recognized		Arrangements		Collateral		Net Amount
Assets	$	360	$	(162)	$	(47)	$	151	$	360	$	(162)	$	(47)	$	151
Liabilities		891		(162)		(349)		380		891		(162)		(349)		380

October 30, 2022
Assets	$	373	$	(179)	$	(54)	$	140
Liabilities		1,231		(179)		(701)		351

January 30, 2022
Assets	$	299	$	(91)			$	208
Liabilities		276		(91)	$	(19)		166

(19) ~~Stock Option and Restricted Stock Unit~~Share-Based Awards

At January 28, 2024, we were authorized to grant an additional 15.0 million shares related to stock options and restricted stock units. In December ~~2022, the Company~~2023, we granted stock options to employees for the purchase of ~~161~~216 thousand shares of common stock at an exercise price of ~~$438.44~~$377.01 per share and a binomial lattice model fair value of ~~$136.46~~$98.04 per share at the grant date. At January ~~29, 2023,~~28, 2024, options for ~~2.0~~1.9 million shares were outstanding with a weighted-average exercise price of ~~$178.86~~$214.88 per share. ~~The Company also granted 112 thousand of service-based~~

During the three months ended January 28, 2024, the restricted stock units (RSUs) granted in thousands of shares and ~~41 thousand~~the weighted-average grant date fair values, using the closing price of ~~performance/service-based restricted~~our common stock ~~units to employees in the first three months of 2023. The weighted-average fair value of the service-based restricted stock units at~~on the grant date, ~~was $434.02 per~~in dollars follow:

In December 2023, we granted market/service-based RSUs. The vesting period for the market/service-based RSUs is three years and dividend equivalents are not earned during the vesting period. The market/service-based RSUs are subject to a market related metric based on total shareholder return, compared to a benchmark group of companies, and award common stock in a range of zero to 200 percent for each unit granted based on the ~~market price~~level of ~~a share of underlying common stock.~~the metric achieved. The fair value of the ~~performance/service-based restricted stock units at the grant date~~market/service based RSUs was ~~$424.93 per unit based on the market price of~~determined using a ~~share of underlying common stock excluding dividends. At January 29, 2023, the Company was authorized to grant awards for an additional 16.6 million shares under the equity incentive plans.~~Monte Carlo model.

(20) Special ~~Items~~Item

In the first quarter of 2022, Net sales from the Company’s Russian operations represented 2 percent of Deere’s consolidated Net sales. Sales in the region were impacted as the Company suspended shipments of machines and service parts to Russia beginning in February 2022. As of January 29, 2023 and October 30, 2022, the Company’s net exposure in Russia / Ukraine was approximately $229 million and $266 million, respectively.

In January 2023, ~~the Company~~we reached an agreement to sell ~~its~~our financial services business in Russia (registered in Russia as a leasing company). The completion of the transaction is expected in the second quarter of 2023. The assets and liabilities were classified as “Other assets” and “Accounts payable and accrued expenses”, respectively, which include $100 million of ~~restricted cash. In the first quarter of 2023, the Company~~We reversed the allowance for credit losses and recorded a valuation allowance on the assets held for sale in “Selling, administrative and general expenses.” In March 2023, we sold our financial services business in Russia to Insight Investment Group. The ~~Company does~~total proceeds, net of restricted cash sold, were $36. The operations were included in the financial services operating segment through the date of sale. At the disposal date, the total assets were $31, consisting primarily of financing receivables, the total liabilities were $5, and the cumulative translation loss was $10. We did not ~~expect a significant gain~~incur additional gains or ~~loss~~losses upon disposition.

On November 17, 2021, employees represented by the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) approved a new collective bargaining agreement. The agreement, which has a term of six years, covers the wages, hours, benefits, and other terms and conditions of employment for the Company’s UAW-represented employees at 14 U.S. facilities. The labor agreement included a lump sum ratification bonus payment of $8,500 per eligible employee, totaling $90 million, and an immediate wage increase of 10 percent plus further wage increases over the term of the contract. The lump sum payment was expensed in the first quarter of 2022.

~~The following table summarizes the operating profit impact, in millions of dollars, of the special items recorded for the three months ended January 30, 2022:~~

Production &
Precision Ag

Small Ag
& Turf

Construction
& Forestry

Total

UAW ratification bonus – Cost of sales

$
53

$
9

$
28

$
90

(21) Subsequent Events

In February ~~2023, the Company~~2024, we entered into ~~two~~a retail note securitization ~~transactions. The first~~ transaction, ~~resulted~~resulting in ~~$307 million~~$529 of secured borrowings. ~~The second transaction will result in $983 million of secured borrowings and is expected to settle in March 2023.~~

On February ~~22, 2023, the Company’s Board of Directors declared~~28, 2024, a quarterly dividend of ~~$1.25~~$1.47 per share was declared at the Board of Directors meeting, payable on May 8, ~~2023,~~2024, to stockholders of record on March ~~31, 2023.~~

29, 2024.

2523

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

~~Overview~~All amounts are presented in millions of dollars unless otherwise specified.

~~Organization~~OVERVIEW

~~The~~Organization

Deere & Company ~~generates net sales from~~is a global leader in the ~~sale~~production of agricultural, turf, construction, and forestry equipment toand solutions. John Deere ~~dealers~~Financial provides financing for John Deere equipment, parts, services, and distributors. The Company manufactures and distributes a full line of agricultural equipment; a variety of commercial and consumer equipment; and a broad range of equipment for construction, roadbuilding, and forestry. Theseother input costs customers need to run their operations. Our operations ~~(collectively known as the “equipment operations”)~~ are managed through the production and precision agriculture (PPA), small agriculture and turf ~~and~~(SAT), construction and forestry (CF), and financial services operating segments. ~~The Company’s financial services segment provides credit services, which finance sales~~References to “equipment operations” include PPA, SAT, and ~~leases of equipment by John Deere dealers. In addition, the financial services segment provides wholesale financing~~CF, while references to ~~dealers of the foregoing equipment, finances retail revolving charge accounts,~~“agriculture and ~~offers extended equipment warranties.~~turf” include both PPA and SAT.

Smart Industrial Operating Model and Leap Ambitions

~~The Company’s~~We announced the Smart Industrial Operating Model in 2020. This operating model is ~~focused~~based on making significant investments, strengthening the Company’s capabilities in digital, automation, autonomy, and alternative propulsion technologies. These technologies are intended to increase worksite efficiency, improve yields, lower input costs, and ease labor constraints. The Company’sthree focus areas:

(a)	Production systems: A strategic alignment of products and solutions around our customers’ operations.

(b)	Technology stack: Investments in technology, as well as research and development, that deliver intelligent solutions to our customers through digital capabilities, automation, autonomy, and alternative power technologies.

(c)	Lifecycle solutions: The integration of our aftermarket and support capabilities to more effectively manage customer equipment, service, and technology needs across the full lifetime of a John Deere product.

Our Leap Ambitions were launched in 2022. These ambitions are ~~goals~~ designed to boost economic value and sustainability for ~~the Company’s~~our customers. The ~~Company anticipates opportunities in this area, as the Company and its customers have a vested interest in sustainable practices.~~ambitions align across our customers’ production systems seeking to optimize their operations to deliver better outcomes with fewer resources.

In ~~February~~January 2024, we released our 2023 ~~the Company released its 2022 Sustainability~~Business Impact Report, available at JohnDeere.com/sustainability. This report identifies important progress on ~~the Company’s~~our Leap Ambitions in fiscal year ~~2022.~~2023. The information in our ~~2022 Sustainability~~2023 Business Impact Report is not incorporated by reference into, and does not form a part of, this Quarterly Report on Form 10-Q.

Trends and Economic Conditions

Industry ~~Trends~~Sales Outlook for Fiscal Year ~~2023~~ ~~– Industry sales of large agricultural machinery in the U.S.~~2024

Agriculture and Canada for 2023 are forecasted to increase 5 to 10 percent compared to 2022. Industry sales of small agricultural and turf equipment in the U.S. and Canada are expected to be down about 5 percent in 2023. Industry sales of agricultural machinery in Europe are forecasted to be flat to up 5 percent, while South American industry sales of tractors and combines are expected to be flat to up 5 percent in 2023. Asia industry sales are forecasted to be down moderately in 2023. On an industry basis, North American construction equipment and compact construction equipment sales are both expected to be flat to up 5 percent in 2023. Global forestry and global roadbuilding industry sales are each expected to be flat.Turf

Construction and Forestry

Company Trends – ~~Customers’ demand for integration of technology into equipment is a market trend underlying the Company’s Smart Industrial operating model and Leap Ambitions framework.~~ Customers ~~have sought~~seek to improve profitability, productivity, and sustainability through technology. ~~The Company’s approach~~Integration of technology into equipment is a persistent market trend. Our Smart Industrial Operating Model and Leap Ambitions are intended to ~~technology involves hardware and software, guidance, connectivity and digital solutions, automation and machine intelligence, autonomy, and alternative propulsion technologies. This technology is~~capitalize on this market trend. These technologies are incorporated into products within each of ~~the Company’s~~our operating segments.

~~Customers continue to adopt technology integrated in the John Deere portfolio of “smart” machines, systems, and solutions. The Company expects~~ We expect this trend to persist for the foreseeable future.

~~Demand~~ The investments in these technologies and in establishing a Solutions as a Service business model might increase our operating costs and may decrease operating margins during the transition period. In the first quarter of 2024, we announced an agreement with SpaceX to expand machine connectivity for the Company’s equipment remains strong, as order books are full through a majority of 2023. Agricultural fundamentals are expected to remain solid into 2023, and retail demand will comprise most of 2023 sales. The North American retail customer fleet age of combines and large tractors remains above average, and dealer inventories are historically low due to the manufacturing and supply chain constraints over the past few years. The Company expects the replenishment of dealer stock inventory to occur in 2024. Crop prices remain favorable to our customers in part due to low stock-to-use ratios for key grains. The Company expects to sell more large agricultural equipment in 2023 than 2022 in North America, Europe, and South America. Demand for small agricultural equipment remains stable, while turf and utility equipment product sales are expected to be lower due to the overall U.S. economic conditions. Construction equipment markets are forecasted to be steady. Rental fleets replenishment, the energy industry, and U.S. infrastructure spend are expected to offset moderation in residentialrural areas through satellite communication.

2624

~~home construction. Roadbuilding demand remains strongest in the U.S., largely offset by softening demand in Europe and parts of Asia. Net income~~Company Outlook for the Company’s financial services operations is expected to be lower than fiscal year 2022 due to less-favorable financing spreads as a result of heightened interest rates, higher selling, administrative and general expenses, and lower gains on operating-lease dispositions, partially offset by higher average portfolio balances.

~~Additional Trends~~ – The Company experienced supply chain disruptions and inflationary pressures in 2022. These trends continued into 2023. While these are two distinct issues and discussed separately below, their impact may be intertwined.

Supply chain disruptions impacted many aspects of the business, including parts availability, increased production costs, and higher inventory levels. Past due deliveries from suppliers were at elevated levels during 2022. Although past due deliveries remain elevated, the Company experienced improvement during the first quarter of 2023. The reduction in supply chain disruptions contributed to higher levels of production. The Company implemented the following mitigation efforts to minimize the impact of supply chain disruptions on its ability to meet customer demand:2024

•~~Worked with the supply base to obtain allocations and improve on-time deliveries of parts.~~

•~~Multi-sourced some parts and materials.~~

•~~Provided resources to suppliers to address constraints.~~

•~~Entered into long-term contracts for some critical components.~~

•~~Utilized alternative freight carriers to expedite delivery.~~

~~While supply chain disruptions~~Production volumes are expected to ~~persist into~~decline in 2024 as demand moderates to more normal levels.

Agriculture and Turf Outlook for 2024

●	We expect large and small agricultural equipment sales to be down from 2023 levels in North America, Europe, and South America.

●	Sales of compact utility tractors continue to be lower as the industry works to bring down inventory levels, while demand for turf products has stabilized.

●	We continue to produce at levels in line with retail demand in North America. To manage inventory in Europe and Brazil, we are producing at levels below retail demand.

●	Agricultural fundamentals are expected to moderate in 2024 due to lower commodity prices and elevated interest rates, offset by resilient farm balance sheets and lower input costs.

●	The U.S. equipment fleet age is above 20-year averages for both tractors and combines.

●	The dairy and livestock sector continues to benefit from elevated cattle and hay prices.

●	Commodity markets remain disrupted in Central and Eastern Europe due to the Russia/Ukraine war. Western Europe equipment demand is moderately impacted by uncertainty related to current cash crop receipts, agriculture policy changes, and high interest rates.

●	Demand in Brazil is expected to moderate due to adverse weather conditions and high interest rates.

●	Industry sales in Asia are forecasted to be down moderately.

Construction and Forestry Outlook for 2024

●	Construction equipment industry sales are forecasted to be down from 2023 levels.

●	Benefits from increasing U.S. infrastructure spending, elevated manufacturing investment levels, and improving single family housing starts are expected to partially offset moderation in office and retail construction.

●	Roadbuilding demand remains strong in the U.S., largely offset by softening demand in Europe.

Financial Services Outlook for 2024


Net Income				Up moderately
+ Nonrecurring prior period special items				Favorable
+ Higher average portfolio				Favorable
(-) Financing spreads				Unfavorable
(-) Provision for credit losses				Unfavorable

Additional Trends

Agricultural Market Business Cycle. The agricultural market is affected by various factors including commodity prices, acreage planted, crop yields, and government policies. These factors affect farmers’ income and may result in lower demand for equipment. We may experience any of the ~~Company~~following effects during unfavorable market conditions: lower net sales, higher sales discounts, higher receivable write-offs, or losses on equipment on operating leases. A potential benefit is ~~working diligently to secure the parts and components~~ that customers ~~need~~may invest in integrated technology solutions and precision agriculture to ~~deliver essential food~~lower input costs and infrastructure more profitably and sustainably. Although the Company experienced some improvement in this area during the first quarter of 2023, concerns remain and this issue could impact our ability to meet customer demand in the remainder of 2023.improve margins.

Inflation has continued to be a pervasive feature in 2023, increasing the cost of purchased components, energy, salaries, and wages. Higher costs due to general business inflation were offset by price realization, which mitigated the impact of inflation on the Company’s operating results. The Company expects inflation to continue in 2023 resulting in higher costs. If customers are unwilling to accept increases in cost of John Deere products, or the Company is otherwise unable to offset increases in production costs, inflation could have an adverse effect on the Company’s operations and financial condition.

Interest Rates.Central bank policy interest rates increased in ~~the first quarter of~~ 2023 and ~~are projected~~have remained elevated. Increased rates impacted us in several ways, primarily affecting the financing spreads for the financial services operations and demand for our products.

The market for our products is negatively impacted by higher interest rates. We expect higher borrowing costs for our customers to ~~continue to increase during 2023 but at a moderating pace compared to 2022.~~ primarily affect discretionary and residential product sales in 2024.

Most retail customer receivables are fixed ~~rate, while wholesale~~rate. Wholesale financing receivables generally are ~~floating~~variable rate. ~~The Company has both~~Both types of receivables are financed with fixed and floating rate borrowings. ~~The Company manages the risk of~~We manage our exposure to interest rate fluctuations by ~~balancing the types and amounts of its~~matching our receivables with our funding ~~sources to its financing receivable and equipment on operating lease portfolios. Accordingly, the Company enters~~sources. We also enter into interest rate swap agreements to ~~manage its~~match our interest rate exposure. ~~Historically, rising~~

Rising interest rates ~~impact the Company’s~~have historically impacted our borrowings sooner than the benefit is realized from ~~the financing~~ receivable and ~~equipment on operating~~ lease portfolios. As a result, ~~the Company’s~~our financial services operations experienced ~~$53 million~~$27 (after-tax) of less favorable financing spreads in ~~the first quarter of 2023~~2024 compared to ~~2022. The Company expects~~2023. We expect to continue experiencing spread compression in 2024, but at a moderating pace relative to ~~persist during~~spread compression experienced in 2023.

~~Supply chain disruptions, inflationary pressures, and rising~~Higher interest rates are driven by factors outside of ~~the Company’s~~our control, and as a result ~~the Company~~we cannot reasonably foresee when ~~these conditions~~this condition will subside.

~~Items of Concern and Uncertainties~~ – Other items of concern include global and regional political conditions, economic and trade policies, imposition of new or retaliatory tariffs against certain countries or covering certain products, post-pandemic effects, capital market disruptions, changes in demand and pricing for new and used equipment, significant fluctuations in foreign currency exchange rates, and volatility in the prices of many commodities. These items could impact the Company’s results. The Company is making investments in technology and in strengthening its capabilities in digital, automation, autonomy, and alternative propulsion technologies. As with most technology investments, marketplace adoption and monetization of these features holds an elevated level of uncertainty.

2725

Other Items of Concern and Uncertainties –~~2023~~ Other items that could impact our results are:

●	global and regional political conditions, including the ongoing war between Russia and Ukraine and the war between Israel and Hamas,

●	economic, tax, and trade policies,

●	new or retaliatory tariffs,

●	capital market disruptions,

●	foreign currency and capital control policies,

●	regulations and legislation regarding right to repair,

●	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,

●	significant fluctuations in foreign currency exchange rates,

●	volatility in the prices of many commodities, and

●	slower economic growth or recession.

consolidated results – 2024 Compared with ~~2022~~2023


	Three Months Ended				Three Months Ended
Deere & Company	January 29		January 30		January 28		January 29
(In millions of dollars, except per share amounts)	2023		2022		2024		2023
Net sales and revenues	$	12,652	$	9,569	$	12,185	$	12,652
Net income attributable to Deere & Company		1,959		903		1,751		1,959
Diluted earnings per share		6.55		2.92		6.23		6.55

Net sales and revenues decreased for the quarter primarily due to lower sales volumes. Net income ~~in the first quarter of 2022 was impacted~~and diluted EPS decreased driven by ~~special items. See Note 20 for additional details.~~lower sales. The discussion of net sales and operating profit is included in the Business Segment Results below.

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


							Three Months Ended
	Three Months Ended						January 28		January 29
Deere & Company	January 29		January 30				2024		2023		% Change
(In millions of dollars)	2023		2022		% Change
Cost of sales to net sales		69.6%		78.5%				68.7%		69.6%
(+) Price realization											Favorable

Other income	$	256	$	238	+8		$	339	$	256	+32
Higher due to investment income earned on international mutual funds securities.						Higher due to investment income earned on international mutual funds securities.

Research and development expenses		495		402	+23			533		495	+8
Higher due to continued focus on developing and incorporating technology solutions.						Higher due to continued focus on developing and incorporating technology solutions.

Selling, administrative and general expenses		952		781	+22			1,066		952	+12
Increased mostly due to higher employee pay driven by inflationary conditions and profit-sharing incentives.						Increased mostly due to higher employee pay driven by inflationary conditions and profit-sharing incentives.

Interest expense								802		479	+67
Increased primarily due to higher average borrowing rates and higher average borrowings.						Increased primarily due to higher average borrowing rates and higher average borrowings.

Other operating expenses		299		311	-4			369		299	+23
Increased due to higher foreign exchange losses.						Increased due to higher foreign exchange losses.

Provision for income taxes		537		250	+115			469		537	-13
Decreased as a result of lower pretax income.						Decreased as a result of lower pretax income.

~~The cost~~

Business Segment Results – 2024 compared with 2023


	Three Months Ended
	January 28		January 29
Production and Precision Agriculture	2024		2023		% Change
Net sales	$	4,849	$	5,198	-7
Operating profit		1,045		1,208	-13
Operating margin		21.6%		23.2%
Price realization					+4
Currency translation impact on Net sales					+1

Production and precision agriculture sales decreased for the quarter as a result of ~~sales ratio decreased due to price realization,~~lower shipment volumes (primarily in Brazil, the U.S., Canada, and Europe), driven by moderating agriculture fundamentals. This was partially offset by ~~higher production costs. Inefficiencies~~price realization in the U.S., Canada, and Europe due to ~~the delayed ratification of the UAW labor agreement and contract-ratification bonus costs affected the prior period cost of sales ratio (see Note 20). Research and development expenses were higher~~inflation. Operating profit decreased primarily due to ~~continued focus on developing~~lower shipment volumes and ~~incorporating technology solutions. Selling,~~increased selling, administrative and general expenses ~~increased mostly~~and research and development expenses, partially offset by price realization.

Production & Precision Agriculture Operating Profit

First Quarter 2024 Compared to First Quarter 2023


	Three Months Ended
	January 28		January 29
Small Agriculture and Turf	2024		2023		% Change
Net sales	$	2,425	$	3,001	-19
Operating profit		326		447	-27
Operating margin		13.4%		14.9%
Price realization					+3
Currency translation impact on Net sales					+1

Small agriculture and turf sales decreased for the quarter due to ~~higher employee pay~~lower shipment volumes (primarily in the U.S., Canada, Europe, and Mexico) driven by ~~inflationary conditions~~moderating market demand. This was partially offset by price realization in the U.S., Canada, and ~~profit-sharing incentives. The provision for income taxes was higher~~Europe due to inflation. Operating profit decreased primarily as a result of ~~higher pretax income.~~lower shipment volumes and increased selling, administrative and general expenses and research and development expenses. These items were partially offset by price realization and lower production costs, driven by a decrease in material and freight costs.

Small Agriculture & Turf Operating Profit

First Quarter 2024 Compared to First Quarter 2023


	Three Months Ended
	January 28		January 29
Construction and Forestry	2024		2023		% Change
Net sales	$	3,212	$	3,203
Operating profit		566		625	-9
Operating margin		17.6%		19.5%
Price realization					+3
Currency translation impact on Net sales					+1

~~Business Segment Results~~

~~For~~Construction and forestry sales were flat for the ~~equipment operations,~~quarter, with positive price realization in the U.S. and Canada offset by lower shipment volumes. Operating profit decreased primarily due to higher production costs, ~~were mostly due to elevated cost of purchased components, energy, salaries, and wages.~~

Three Months Ended

Production and Precision Agriculture

January 29

January 30

(In millions of dollars)

2023

2022

% Change

Net sales

$
5,198

$
3,356

+55

Operating profit

1,208

296

+308

Operating margin

23.2%

8.8%

Price realization

+22

Currency translation

-1

~~Production and precision agriculture sales increased for the quarter as a result of higher~~lower shipment volumes, ~~(primarily in~~ the ~~U.S., Canada,~~unfavorable effects of foreign currency exchange, and Latin America) and price realization in most end markets. Operating profit improved primarily due to price realization and improved shipment volume / mix as a result of improved supply chain conditions. These items were partially offset by higher ~~production costs and increased~~ selling, administrative and general expenses and research and development expenses. ~~The UAW contract-ratification bonus costs affected the prior period.~~

Three Months Ended

Small Agriculture and Turf

January 29

January 30

(In millions of dollars)

2023

2022

% Change

Net sales

$
3,001

$
2,631

+14

Operating profit

447

371

+20

Operating margin

14.9%

14.1%

Price realization

+11

Currency translation

-4

Small agriculture and turf sales increased for the quarter due to price realization in most end markets and higher shipment volumes (primarily in the U.S., Canada, India, and Mexico), partially offset by the negative effects of foreign currency translation mostly due to a stronger U.S. dollar. Operating profit improved primarily as a result of price realization and improved shipment volumes due to improved supply chain conditions. These items were partially offset by ~~higher production costs, increased selling, administrative~~price realization and ~~general expenses and research and development expenses, and the unfavorable effects of foreign currency exchange.~~a favorable sales mix.

Construction & Forestry Operating Profit

First Quarter 2024 Compared to First Quarter 2023

Three Months Ended

Construction and Forestry

January 29

January 30

(In millions of dollars)

2023

2022

% Change

Net sales

$
3,203

$
2,544

+26

Operating profit

625

272

+130

Operating margin

19.5%

10.7%

Price realization

+13

Currency translation

-3

Construction and forestry sales moved higher for the quarter primarily due to higher shipment volumes (primarily in the U.S. and Brazil) and price realization, partially offset by the negative effects of foreign currency translation from a stronger U.S. dollar. Operating profit improved due to price realization and improved shipment volumes as a result of improved supply chain conditions, partially offset by higher production costs. The UAW contract-ratification bonus costs affected the prior period.


						Three Months Ended
	Three Months Ended					January 28		January 29
Financial Services	January 29		January 30			2024		2023		% Change
(In millions of dollars)	2023		2022		% Change
Revenue (including intercompany)	$	1,244	$	916	+36	$	1,552	$	1,244	+25
Interest expense		442		158	+180		762		442	+72
Net income		185		231	-20		207		185	+12

The average balance of receivables and leases financed was 1519 percent higher in the first three months of ~~2023,~~2024, compared with the same period last year. Revenue also increased due to higher average financing rates. Interest expense increased in the first quarter of ~~2023~~2024 as a result of higher average borrowing rates and higher average borrowings. Net income for the quarter ~~decreased~~increased mainly due to income earned on higher average portfolio balances, partially offset by less favorable financing spreads as a result of ~~heightened~~higher interest ~~rates, higher selling, administrative and general expenses, and lower gains on operating lease dispositions, partially offset by income earned on higher average portfolio balances.~~rates.

Critical Accounting Estimates

See ~~the Company’s~~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 – 2024 compared with 2023

~~Sources of Liquidity, Key Metrics and Balance Sheet Data~~

~~The Company has~~We have access to ~~most~~ global markets at a reasonable cost. Sources of liquidity ~~for~~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, and

●	bank lines of credit.

We closely monitor our cash requirements. Based on the Company include cash and cash equivalents, marketable securities, funds from operations, the issuance of commercial paper and term debt, the securitization of retail notes (both public and private markets), and bank lines of credit. The Company closely monitors its liquidity sources against the cash requirements and expects to have sufficientavailable sources of ~~global funding and~~ liquidity, we expect to meet ~~its~~our funding needs in the short term (next 12 months) and long term (beyond 12 months). ~~The Company operates~~We are forecasting lower operating cash flows in 2024 compared with 2023.

We operate in multiple industries, which have ~~different~~unique funding requirements. The ~~production and precision agriculture, small agriculture and turf, and construction and forestry segments~~equipment operations are capital ~~intensive and are typically~~intensive. Historically, these operations have been subject to seasonal variations in financing requirements for inventories and ~~certain~~ receivables from dealers. However, the patterns of seasonality in inventory have been affected by increases in production rates and supply chain disruptions experienced during fiscal year 2022, which continue to impact inventory levels during 2023.

The financial services operations rely on their ability to raise substantial amounts of funds to finance their receivable and lease portfolios.

Key metrics are provided in the following ~~table,~~table:


	January 28		October 29		January 29
	2024		2023		2023
Cash, cash equivalents, and marketable securities	$	6,273	$	8,404	$	4,828

Trade accounts and notes receivable – net		7,795		7,739		7,609
Ratio to prior 12 month’s net sales		14%		14%		15%

Inventories		8,937		8,160		10,056
Ratio to prior 12 month’s cost of sales		24%		22%		27%

Unused credit lines		1,577		841		1,581

Financial Services:
Ratio of interest-bearing debt to stockholder’s equity		8.3 to 1		8.4 to 1		8.2 to 1

In the first quarter, we invested $128 in ~~millions~~U.S. dollar denominated bonds issued by the central bank of ~~dollars:~~Argentina. The bonds are recorded in “Marketable securities,” classified as “International debt securities.” These bonds can be held until maturity or sold in a secondary market outside of Argentina to settle intercompany debt (see note 17).

January 29

October 30

January 30

2023

2022

2022

Cash, cash equivalents, and marketable securities

$
4,828

$
5,508

$
5,207

Trade accounts and notes receivable – net

7,609

6,410

4,855

Ratio to prior 12 month’s net sales

15%

13%

12%

Inventories

10,056

8,495

7,935

Ratio to prior 12 month’s cost of sales

27%

24%

26%

Unused credit lines

1,581

3,284

5,865

Financial Services:

Ratio of interest-bearing debt to stockholder’s equity

8.2 to 1

8.5 to 1

7.4 to 1

The ~~reduction~~increase in unused credit lines ~~in 2023~~at January 28, 2024 compared to ~~both prior periods~~October 29, 2023 relates to ~~an increase~~a decrease in commercial paper outstanding ~~to support working capital requirements. The Company forecasts higher~~generally corresponding with the level of receivable and lease portfolios. We forecast lower operating cash flows in ~~2023~~2024 driven by ~~an increase~~a decrease in net income adjusted for non-cash provisions and ~~a favorable~~an unfavorable change in working capital.

There have been no material changes to the contractual obligations and other cash requirements identified in ~~the Company’s~~our most recently ~~issued~~filed Annual Report on Form 10-K.

Cash Flows

Three Months Ended

(In millions of dollars)

January 29, 2023

January 30, 2022

Net cash used for operating activities

$
(1,246)

$
(2,553)

Net cash provided by investing activities

760

648

Net cash used for financing activities

(339)

(1,577)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

62

(74)

Net decrease in cash, cash equivalents, and restricted cash

$
(763)

$
(3,556)


	Three Months Ended
	January 28		January 29
	2024		2023
Net cash used for operating activities	$	(908)	$	(1,246)
Net cash provided by investing activities		1,217		760
Net cash used for financing activities		(2,645)		(339)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		16		62
Net decrease in cash, cash equivalents, and restricted cash	$	(2,320)	$	(763)

Cash outflows from consolidated operating activities in the first three months of ~~2023~~2024 were ~~$1,246 million.~~$908. This resulted mainly from a working capital change, partially offset by net income adjusted for non-cash provisions. Cash inflows from investing activities were ~~$760 million~~$1,217 in the first three months of this year. The primary drivers were collections of receivables (excluding receivables related to sales) exceeding the cost of receivables acquired and a change in collateral on derivatives – net, partially offset by purchases of property and equipment. Cash outflows from financing activities were ~~$339 million~~$2,645 in the first three months of ~~2023.~~2024. The increase in cash used for financing activities was due primarily to net payments of borrowings. Cash returned to shareholders was $1,714 in the first three months of 2024. Cash, cash equivalents, and restricted cash decreased ~~by $763 million~~$2,320 during the first three months of this year.

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 by ~~$1,199 million~~$56 during the first three months of ~~2023,~~2024, mostly due to a seasonal increase. These receivables increased ~~$2,754 million,~~$186, compared to a year ago, due to higher ~~shipment volumes.~~dealer inventory levels. The

percentage of total worldwide trade receivables outstanding for periods exceeding 12 months was 1 percent at each of January 28, 2024, October 29, 2023, ~~October 30, 2022,~~ and January ~~30, 2022.~~29, 2023.

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 ~~by $720 million~~$1,066 during the first quarter of ~~2023,~~2024, primarily due to seasonal payments, and increased ~~by $5,142 million~~$8,386 in the past 12 months, due to strong retail sales. Total acquisition volumes of financing receivables and equipment on operating leases were 3116 percent higher in the first three months of ~~2023,~~2024, compared with the same period last year, as volumes of wholesale notes, ~~operating leases,~~ retail notes, and financing leases were higher, while revolving charge accounts ~~were higher, while finance~~and operating leases were lower compared to ~~January 30, 2022.~~the same period last year.

Inventories – Inventories increased by ~~$1,561 million~~$777 during the first three months, primarily due to a seasonal increase. Inventories ~~increased $2,121 million,~~decreased $1,119, compared to a year ago, due to ~~higher~~lower forecasted shipment ~~volumes and supply chain disruptions, partially offset by the effect of foreign currency translation.~~volumes. A majority of these inventories are valued on the last-in, first-out (LIFO) method.

Property and Equipment – Property and equipment cash expenditures in the first three months of ~~2023~~2024 were ~~$315 million,~~$362, compared with ~~$193 million~~$315 in the same period last year. Capital expenditures in ~~2023~~2024 are estimated to be approximately ~~$1,400 million.~~$1,900.

Accounts Payable and Accrued Expenses – ~~Decreased~~Accounts payable and accrued expenses decreased by ~~$1,714 million~~$2,769 in the first three months of ~~2023,~~2024, primarily due to a decrease in accrued expenses associated with employee benefits, dealer sales discounts, ~~employee benefits,~~ and derivative liabilities. Accounts payable and accrued expenses increased ~~$2,457 million~~$253 compared to a year ago, due to an increase in accrued expenses associated with ~~derivative liabilities,~~extended warranty premium, product warranties, and accrued ~~taxes, and employee benefits, and an increase~~interest, partially offset by a decrease in accounts payable associated with trade payables.

Borrowings – Total external borrowings ~~increased~~decreased by ~~$2,165 million~~$245 in the first three months of ~~2023~~2024 and increased ~~$6,754 million~~$9,102 compared to a year ago, generally corresponding with the level of the receivable and the lease portfolio, as well as other working capital requirements.

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 was renewed in November ~~2022~~2023 with an expiration in November ~~2023~~2024 and ~~increased~~with an increase in the total capacity or “financing limit” from ~~$1,000 million~~$1,500 to ~~$1,500 million.~~$2,000. At January ~~29, 2023, $786 million~~28, 2024, $1,118 of securitization borrowings were outstanding under the facility. At the end of the contractual revolving period, unless the banks and Capital Corporation agree to renew, Capital Corporation would liquidate the secured borrowings over time as payments on the retail notes are collected.

In the first three months of ~~2023,~~2024, the financial services operations retired ~~$849 million~~$881 of retail note securitization borrowings, which are presented in ~~“Increase (decrease)~~“Net proceeds (payments) in total short-term ~~borrowings.~~borrowings (original maturities three months or less).”

Lines of Credit – ~~The Company~~We also ~~has~~have access to bank lines of credit with various banks throughout the world. Worldwide lines of credit totaled ~~$8,327 million~~$10,310 at January ~~29, 2023, $1,581 million~~28, 2024, $1,577 of which were unused. For the purpose of computing unused credit lines, commercial paper, and short-term bank borrowings ~~excluding secured borrowings and the current portion of long-term borrowings,~~ were considered to constitute utilization. Included in the total credit lines at January ~~29, 2023~~28, 2024 was a 364-day credit facility agreement of ~~$3,000 million,~~$5,000, expiring in the second quarter of ~~2023.~~2024. In addition, total credit lines included long-term credit facility agreements of $2,500, ~~million,~~ expiring in the second quarter of ~~2026,~~2027, and $2,500, ~~million,~~ expiring in the second quarter of ~~2027.~~2028. These credit agreements require Capital Corporation and other parts of ~~the Company~~our business to maintain certain performance metrics and liquidity targets. ~~The Company expects~~We expect to extend the terms of these credit facilities. All ~~of these~~ requirements ofin the credit agreements have been met during the periods included in the financial statements.

Debt Ratings – To access public debt capital markets, ~~the Company relies~~we rely on credit rating agencies to assign short-term and long-term credit ratings to ~~the Company’s~~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 ~~Company~~our securities. A credit rating agency may change or withdraw ratings based on its assessment of ~~the Company’s~~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, and reduced access to debt capital markets. The senior long-term and short-term debt ratings and

outlook currently assigned to unsecured ~~Company~~company securities by the rating agencies engaged by ~~the Company~~us are as follows:


	Senior
	Long-Term	Short-Term	Outlook
Fitch Ratings	A+	F1	Stable
Moody’s Investors Service, Inc.	A2A1	Prime-1	~~Positive~~Stable
Standard & Poor’s	A	A-1	Stable

~~Forward-Looking Statements~~FORWARD-LOOKING STATEMENTS

Certain statements contained herein, including in the section entitled “Overview” relating to future events, expectations, and trends constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties could affect all lines of ~~the Company’s~~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, ~~the Company~~we expressly ~~disclaims~~disclaim any obligation to update or revise ~~its~~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:

●	changes inand compliance with U.S., foreign, and international laws, regulations, and policies relating to trade, economic sanctions, data privacy, spending, taxing, banking, monetary, environmental (including climate change and engine emission), and farming policies;

●	political, economic, and social instability of the geographies in which ~~the Company operates;~~

●	~~wars and other conflicts,~~we operate, including the ~~current conflict~~ongoing war between Russia and Ukraine and ~~natural disasters;~~the war between Israel and Hamas;

●	adverse macroeconomic conditions, including unemployment, inflation, rising interest rates, changes in consumer practices due to slower economic growth, and regional or ~~possible recession, and~~global liquidity constraints;

●	~~growth~~worldwide demand for food and ~~sustainability~~different forms of ~~non-food uses for crops (including ethanol and biodiesel production);~~renewable energy;

●	the ~~Company’s~~ ability to execute business strategies, including ~~the Company’s~~our Smart Industrial ~~operating model,~~Operating Model, Leap Ambitions, and mergers and acquisitions;

●	the ability to understand and meet ~~its~~ customers’ changing expectations and demand for John Deere ~~products;~~products and solutions;

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

●	the ability to integrate new technology, including automation and machine learning, and deliver precision technology, alternative power technologies, and solutions to customers, including through our Solutions as a Service business model;

●	changes to governmental communications channels (radio frequency technology);

●	~~gaps or limitations in rural broadband coverage, capacity, and speed needed to support technology solutions;~~

●	the ~~Company’s~~ ability to adapt in highly competitive markets;

●	dealer practices and their ability to manage distribution of John Deere products and support and service precision technology solutions;

●	changes in climate patterns, ~~and~~ unfavorable weather ~~events;~~events, and natural disasters;

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

●	higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer confidence, access to capital, and demand for ~~our products;~~

●	~~changes in the Company’s credit ratings,~~John Deere products and ~~failure to comply with financial covenants in credit agreements could impact access to funding;~~solutions;

●	availability and price of raw materials, components, and whole goods;

●	delays or disruptions in ~~the Company’s~~our supply chain;

●	~~labor relations~~our equipment fails to perform as expected, which could result in warranty claims, post-sales repairs or recalls, product liability litigation, and ~~contracts, including work stoppages and other disruptions;~~regulatory investigations;

●	the ability to attract, develop, engage, and retain qualified personnel;

●	security breaches, cybersecurity attacks, technology failures, and other disruptions to ~~the~~John Deere information technology infrastructure ~~of the Company~~ and ~~its~~ products;

●	loss of or challenges to intellectual property rights;

●	~~compliance with evolving U.S. and foreign laws, including economic sanctions, data privacy, and environmental laws and regulations;~~

●	legislation introduced or enacted that could affect ~~the Company’s~~our business model and intellectual property, such as ~~so-called~~ right to repair ~~or right to modify~~ legislation;

●	investigations, claims, lawsuits, or other legal proceedings;

●	events that damage ~~the Company’s~~our reputation or brand;

●	world grain stocks, available farm acres, soil conditions, harvest yields, prices for commodities and livestock, input costs, ~~(e.g., fertilizer),~~ and availability of transport for crops; and

●	housing starts and supply, real estate and housing prices, levels of public and non-residential construction, and infrastructure investment.

Further information concerning ~~the Company~~us and ~~its~~our businesses, including factors that could materially affect ~~the Company’s~~our financial results, is included in ~~the Company’s~~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)~~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.

~~Supplemental Consolidating Information~~SUPPLEMENTAL CONSOLIDATING DATA

The supplemental consolidating data presented on the subsequent pages is presented for informational purposes. ~~The equipment~~Equipment operations represents the enterprise without financial services. ~~The equipment~~Equipment operations includes ~~the Company’s~~ 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.

~~The equipment~~Equipment operations and financial services participate in different industries. ~~The equipment~~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 finances sales and leases by dealers of new and used equipment that is largely manufactured by ~~the Company.~~us. 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.

3533


DEERE & COMPANY	DEERE & COMPANY																		DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA	SUPPLEMENTAL CONSOLIDATING DATA																		SUPPLEMENTAL CONSOLIDATING DATA
STATEMENTS OF INCOME	STATEMENTS OF INCOME																		STATEMENTS OF INCOME
For the Three Months Ended January 29, 2023 and January 30, 2022
(In millions of dollars) Unaudited
For the Three Months Ended January 28, 2024 and January 29, 2023																			For the Three Months Ended January 28, 2024 and January 29, 2023
Unaudited																			Unaudited
		EQUIPMENT				FINANCIAL														EQUIPMENT				FINANCIAL
		OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED						OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
		2023		2022		2023		2022		2023		2022		2023		2022				2024		2023		2024		2023		2024		2023		2024		2023
Net Sales and Revenues
Net sales		$	11,402	$	8,531									$	11,402	$	8,531			$	10,486	$	11,402									$	10,486	$	11,402
Finance and interest income			114		34	$	1,067	$	829	$	(187)	$	(63)		994		800	¹			157		114	$	1,433	$	1,067	$	(230)	$	(187)		1,360		994	¹
Other income			234		217		177		87		(155)		(66)		256		238	^{2, 3}			289		234		119		177		(69)		(155)		339		256	^{2, 3}
Total			11,750		8,782		1,244		916		(342)		(129)		12,652		9,569				10,932		11,750		1,552		1,244		(299)		(342)		12,185		12,652

Costs and Expenses
Cost of sales			7,940		6,696						(6)		(1)		7,934		6,695	⁴			7,207		7,940						(7)		(6)		7,200		7,934	⁴
Research and development expenses			495		402										495		402				533		495										533		495
Selling, administrative and general expenses			783		657		172		126		(3)		(2)		952		781	⁴			876		783		192		172		(2)		(3)		1,066		952	⁴
Interest expense			101		90		442		158		(64)		(19)		479		229	⁵			108		101		762		442		(68)		(64)		802		479	¹
Interest compensation to Financial Services			123		44						(123)		(44)					⁵			162		123						(162)		(123)					¹
Other operating expenses			53		39		392		335		(146)		(63)		299		311	^{6, 7}			90		53		339		392		(60)		(146)		369		299	^{3, 5}
Total			9,495		7,928		1,006		619		(342)		(129)		10,159		8,418				8,976		9,495		1,293		1,006		(299)		(342)		9,970		10,159

Income before Income Taxes			2,255		854		238		297						2,493		1,151				1,956		2,255		259		238						2,215		2,493
Provision for income taxes			483		182		54		68						537		250				416		483		53		54						469		537

Income after Income Taxes			1,772		672		184		229						1,956		901				1,540		1,772		206		184						1,746		1,956
Equity in income of unconsolidated affiliates					1		1		2						1		3				1				1		1						2		1

Net Income			1,772		673		185		231						1,957		904				1,541		1,772		207		185						1,748		1,957
Less: Net income (loss) attributable to noncontrolling interests			(2)		1										(2)		1
Less: Net loss attributable to noncontrolling interests																					(3)		(2)										(3)		(2)
Net Income Attributable to Deere & Company		$	1,774	$	672	$	185	$	231					$	1,959	$	903			$	1,544	$	1,774	$	207	$	185					$	1,751	$	1,959

¹ Elimination of ~~financial services’~~intercompany interest income ~~earned from equipment operations.~~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’ income~~services related to intercompany guarantees of investments in certain international markets and intercompany service ~~revenue.~~revenues and expenses.

⁴ Elimination of intercompany service fees.

⁵ ~~Elimination of equipment operations’ interest expense to financial services.~~

⁶ Elimination of financial services’ lease depreciation expense related to inventory transferred to equipment on operating leases.

⁷ ~~Elimination of equipment operations’ expense related to intercompany guarantees of investments in certain international markets and intercompany service expenses.~~

3634


DEERE & COMPANY	DEERE & COMPANY																										DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)	SUPPLEMENTAL CONSOLIDATING DATA (Continued)																										SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEETS	CONDENSED BALANCE SHEETS																										CONDENSED BALANCE SHEETS
(In millions of dollars) Unaudited
Unaudited																											Unaudited
		EQUIPMENT						FINANCIAL																				EQUIPMENT						FINANCIAL
		OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED								OPERATIONS						SERVICES						ELIMINATIONS						CONSOLIDATED
		Jan 29		Oct 30		Jan 30		Jan 29		Oct 30		Jan 30		Jan 29		Oct 30		Jan 30		Jan 29		Oct 30		Jan 30				Jan 28		Oct 29		Jan 29		Jan 28		Oct 29		Jan 29		Jan 28		Oct 29		Jan 29		Jan 28		Oct 29		Jan 29
		2023		2022		2022		2023		2022		2022		2023		2022		2022		2023		2022		2022				2024		2023		2023		2024		2023		2023		2024		2023		2023		2024		2023		2023
Assets
Cash and cash equivalents		$	2,665	$	3,767	$	3,596	$	1,311	$	1,007	$	876							$	3,976	$	4,774	$	4,472			$	3,467	$	5,720	$	2,665	$	1,670	$	1,738	$	1,311							$	5,137	$	7,458	$	3,976
Marketable securities			18		61		2		834		673		733								852		734		735				147		104		18		989		842		834								1,136		946		852
Receivables from Financial Services			5,348		6,569		5,307							$	(5,348)	$	(6,569)	$	(5,307)							⁸			4,296		4,516		5,348							$	(4,296)	$	(4,516)	$	(5,348)							⁶
Trade accounts and notes receivable – net			1,342		1,273		996		7,827		6,434		4,843		(1,560)		(1,297)		(984)		7,609		6,410		4,855	⁹			1,093		1,320		1,342		9,167		8,687		7,827		(2,465)		(2,268)		(1,560)		7,795		7,739		7,609	⁷
Financing receivables – net			51		47		56		36,831		36,587		33,135								36,882		36,634		33,191				72		64		51		43,636		43,609		36,831								43,708		43,673		36,882
Financing receivables securitized – net							9		5,089		5,936		3,507								5,089		5,936		3,516										6,400		7,335		5,089								6,400		7,335		5,089
Other receivables			1,583		1,670		1,818		489		832		153		(80)		(10)		(35)		1,992		2,492		1,936	⁹			1,515		1,813		1,583		559		869		489		(57)		(59)		(80)		2,017		2,623		1,992	⁷
Equipment on operating leases – net									6,502		6,623		6,624								6,502		6,623		6,624										6,751		6,917		6,502								6,751		6,917		6,502
Inventories			10,056		8,495		7,935														10,056		8,495		7,935				8,937		8,160		10,056														8,937		8,160		10,056
Property and equipment – net			6,178		6,021		5,629		34		35		36								6,212		6,056		5,665				6,879		6,843		6,178		35		36		34								6,914		6,879		6,212
Goodwill			3,891		3,687		3,192														3,891		3,687		3,192				3,966		3,900		3,891														3,966		3,900		3,891
Other intangible assets – net			1,255		1,218		1,209														1,255		1,218		1,209				1,112		1,133		1,255														1,112		1,133		1,255
Retirement benefits			3,728		3,666		3,095		67		66		65		(2)		(2)		(2)		3,793		3,730		3,158	¹⁰			3,013		2,936		3,728		75		72		67		(1)		(1)		(2)		3,087		3,007		3,793	⁸
Deferred income taxes			1,015		940		1,095		53		45		50		(154)		(161)		(222)		914		824		923	¹¹			2,133		2,133		1,015		72		68		53		(372)		(387)		(154)		1,833		1,814		914	⁹
Other assets			1,936		1,794		1,730		684		626		477		(23)		(3)		(4)		2,597		2,417		2,203	⁹			2,058		1,948		1,936		546		559		684		(26)		(4)		(23)		2,578		2,503		2,597
Total Assets		$	39,066	$	39,208	$	35,669	$	59,721	$	58,864	$	50,499	$	(7,167)	$	(8,042)	$	(6,554)	$	91,620	$	90,030	$	79,614			$	38,688	$	40,590	$	39,066	$	69,900	$	70,732	$	59,721	$	(7,217)	$	(7,235)	$	(7,167)	$	101,371	$	104,087	$	91,620

Liabilities and Stockholders’ Equity

Liabilities
Short-term borrowings		$	969	$	1,040	$	1,516	$	13,160	$	11,552	$	9,474							$	14,129	$	12,592	$	10,990			$	1,203	$	1,230	$	969	$	15,914	$	16,709	$	13,160							$	17,117	$	17,939	$	14,129
Short-term securitization borrowings							8		4,864		5,711		3,474								4,864		5,711		3,482										6,116		6,995		4,864								6,116		6,995		4,864
Payables to Equipment Operations									5,348		6,569		5,307	$	(5,348)	$	(6,569)	$	(5,307)							⁸									4,296		4,516		5,348	$	(4,296)	$	(4,516)	$	(5,348)							⁶
Accounts payable and accrued expenses			11,819		12,962		9,704		2,952		3,170		1,970		(1,663)		(1,310)		(1,023)		13,108		14,822		10,651	⁹			12,677		14,862		11,819		3,232		3,599		2,952		(2,548)		(2,331)		(1,663)		13,361		16,130		13,108	⁷
Deferred income taxes			404		380		425		269		276		353		(154)		(161)		(222)		519		495		556	¹¹			478		452		404		444		455		269		(372)		(387)		(154)		550		520		519	⁹
Long-term borrowings			8,155		7,917		8,760		26,916		25,679		24,078								35,071		33,596		32,838				7,270		7,210		8,155		32,663		31,267		26,916								39,933		38,477		35,071
Retirement benefits and other liabilities			2,384		2,351		3,182		111		108		109		(2)		(2)		(2)		2,493		2,457		3,289	¹⁰			2,006		2,032		2,384		110		109		111		(1)		(1)		(2)		2,115		2,140		2,493	⁸
Total liabilities			23,731		24,650		23,595		53,620		53,065		44,765		(7,167)		(8,042)		(6,554)		70,184		69,673		61,806				23,634		25,786		23,731		62,775		63,650		53,620		(7,217)		(7,235)		(7,167)		79,192		82,201		70,184

Commitments and contingencies (Note 16)
Redeemable noncontrolling interest			100		92																100		92						100		97		100														100		97		100

Stockholders’ Equity
Total Deere & Company stockholders’ equity			21,332		20,262		17,804		6,101		5,799		5,734		(6,101)		(5,799)		(5,734)		21,332		20,262		17,804	¹²			22,075		21,785		21,332		7,125		7,082		6,101		(7,125)		(7,082)		(6,101)		22,075		21,785		21,332	¹⁰
Noncontrolling interests			4		3		4														4		3		4				4		4		4														4		4		4
Financial Services’ equity			(6,101)		(5,799)		(5,734)								6,101		5,799		5,734							¹²			(7,125)		(7,082)		(6,101)								7,125		7,082		6,101							¹⁰
Adjusted total stockholders’ equity			15,235		14,466		12,074		6,101		5,799		5,734								21,336		20,265		17,808				14,954		14,707		15,235		7,125		7,082		6,101								22,079		21,789		21,336
Total Liabilities and Stockholders’ Equity		$	39,066	$	39,208	$	35,669	$	59,721	$	58,864	$	50,499	$	(7,167)	$	(8,042)	$	(6,554)	$	91,620	$	90,030	$	79,614			$	38,688	$	40,590	$	39,066	$	69,900	$	70,732	$	59,721	$	(7,217)	$	(7,235)	$	(7,167)	$	101,371	$	104,087	$	91,620

⁸⁶ Elimination of receivables / payables between equipment operations and financial services.

⁹⁷ Primarily reclassification of sales incentive accruals on receivables sold to financial services.

¹⁰⁸ Reclassification of net pension assets / liabilities.

¹¹⁹ Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.

¹²¹⁰ Elimination of financial services’ equity.

3735


DEERE & COMPANY	DEERE & COMPANY																		DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)	SUPPLEMENTAL CONSOLIDATING DATA (Continued)																		SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENTS OF CASH FLOWS	STATEMENTS OF CASH FLOWS																		STATEMENTS OF CASH FLOWS
For the Three Months Ended January 29, 2023 and January 30, 2022
(In millions of dollars) Unaudited
For the Three Months Ended January 28, 2024 and January 29, 2023																			For the Three Months Ended January 28, 2024 and January 29, 2023
Unaudited																			Unaudited
		EQUIPMENT				FINANCIAL														EQUIPMENT				FINANCIAL
		OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED						OPERATIONS				SERVICES				ELIMINATIONS				CONSOLIDATED
		2023		2022		2023		2022		2023		2022		2023		2022				2024		2023		2024		2023		2024		2023		2024		2023
Cash Flows from Operating Activities
Net income		$	1,772	$	673	$	185	$	231					$	1,957	$	904			$	1,541	$	1,772	$	207	$	185					$	1,748	$	1,957
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision (credit) for credit losses			1		(2)		(131)		2						(130)						(2)		1		33		(131)						31		(130)
Provision for depreciation and amortization			279		257		252		266	$	(37)	$	(37)		494		486	¹³			302		279		254		252	$	(36)	$	(37)		520		494	¹¹
Share-based compensation expense											23		18		23		18	¹⁴											46		23		46		23	¹²
Distributed earnings of Financial Services			3		42						(3)		(42)					¹⁵			233		3						(233)		(3)					¹³
Provision (credit) for deferred income taxes			(39)		223		(17)		(13)						(56)		210				48		(39)		(21)		(17)						27		(56)
Changes in assets and liabilities:
Trade, notes, and financing receivables related to sales			(23)		158						(992)		(264)		(1,015)		(106)	^{16, 18, 19}
Receivables related to sales																					209		(23)						(486)		(992)		(277)		(1,015)	^{14, 16}
Inventories			(1,254)		(1,277)						(25)		(20)		(1,279)		(1,297)	¹⁷			(687)		(1,254)						(36)		(25)		(723)		(1,279)	¹⁵
Accounts payable and accrued expenses			(1,458)		(1,346)		145		(66)		(264)		(142)		(1,577)		(1,554)	¹⁸			(2,155)		(1,458)		25		145		(197)		(264)		(2,327)		(1,577)	¹⁶
Accrued income taxes payable/receivable			192		(192)		7		8						199		(184)				165		192		18		7						183		199
Retirement benefits			(49)		(1,012)		1		2						(48)		(1,010)				(127)		(49)		(2)		1						(129)		(48)
Other			17		(12)		163		(19)		6		11		186		(20)	^{13, 14, 17}			(46)		17		61		163		(22)		6		(7)		186	^{11, 12, 15}
Net cash provided by (used for) operating activities			(559)		(2,488)		605		411		(1,292)		(476)		(1,246)		(2,553)				(519)		(559)		575		605		(964)		(1,292)		(908)		(1,246)

Cash Flows from Investing Activities
Collections of receivables (excluding receivables related to sales)							7,495		6,845		(297)		(410)		7,198		6,435	¹⁶							8,007		7,495		(255)		(297)		7,752		7,198	¹⁴
Proceeds from sales of equipment on operating leases							497		479						497		479								506		497						506		497
Cost of receivables acquired (excluding receivables related to sales)							(6,375)		(5,719)		53		116		(6,322)		(5,603)	¹⁶							(6,513)		(6,375)		66		53		(6,447)		(6,322)	¹⁴
Acquisitions of businesses, net of cash acquired					(24)												(24)
Purchases of property and equipment			(315)		(193)										(315)		(193)				(362)		(315)										(362)		(315)
Cost of equipment on operating leases acquired							(531)		(419)		34		28		(497)		(391)	¹⁷							(503)		(531)		49		34		(454)		(497)	¹⁵
Decrease in investment in Financial Services																					10								(10)							¹⁷
Increase in trade and wholesale receivables							(1,499)		(684)		1,499		684					¹⁶							(871)		(1,499)		871		1,499					¹⁴
Collateral on derivatives – net					4		345		(17)						345		(13)								310		345						310		345
Other			(9)		(22)		(137)		(36)				16		(146)		(42)	¹⁹			10		(9)		(98)		(137)						(88)		(146)
Net cash provided by (used for) investing activities			(324)		(235)		(205)		449		1,289		434		760		648				(342)		(324)		838		(205)		721		1,289		1,217		760

Cash Flows from Financing Activities
Increase (decrease) in total short-term borrowings			(136)		123		833		(1,141)						697		(1,018)
Net proceeds (payments) in short-term borrowings (original maturities three months or less)																					78		(136)		(3,029)		833						(2,951)		697
Change in intercompany receivables/payables			1,469		150		(1,469)		(150)												288		1,469		(288)		(1,469)
Proceeds from long-term borrowings			1		18		2,504		2,335						2,505		2,353
Payments of long-term borrowings					(124)		(1,925)		(1,816)						(1,925)		(1,940)
Proceeds from issuance of common stock			21		11										21		11
Proceeds from borrowings issued (original maturities greater than three months)																					11		1		5,276		2,504						5,287		2,505
Payments of borrowings (original maturities greater than three months)																					(40)				(3,197)		(1,925)						(3,237)		(1,925)
Repurchases of common stock			(1,257)		(623)										(1,257)		(623)				(1,328)		(1,257)										(1,328)		(1,257)
Capital investment from Equipment Operations																									(10)				10							¹⁷
Dividends paid			(341)		(327)		(3)		(42)		3		42		(341)		(327)	¹⁵			(386)		(341)		(233)		(3)		233		3		(386)		(341)	¹³
Other			(27)		(22)		(12)		(11)						(39)		(33)				(22)		(6)		(8)		(12)						(30)		(18)
Net cash used for financing activities			(270)		(794)		(72)		(825)		3		42		(339)		(1,577)				(1,399)		(270)		(1,489)		(72)		243		3		(2,645)		(339)

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash			48		(75)		14		1						62		(74)				11		48		5		14						16		62

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash			(1,105)		(3,592)		342		36						(763)		(3,556)				(2,249)		(1,105)		(71)		342						(2,320)		(763)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period			3,781		7,200		1,160		925						4,941		8,125				5,755		3,781		1,865		1,160						7,620		4,941
Cash, Cash Equivalents, and Restricted Cash at End of Period		$	2,676	$	3,608	$	1,502	$	961					$	4,178	$	4,569			$	3,506	$	2,676	$	1,794	$	1,502					$	5,300	$	4,178

Components of cash, cash equivalents, and restricted cash
Components of Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents		$	2,665	$	3,596	$	1,311	$	876					$	3,976	$	4,472			$	3,467	$	2,665	$	1,670	$	1,311					$	5,137	$	3,976
Restricted cash (Other assets)			11		12		191		85						202		97				39		11		124		191						163		202
Total cash, cash equivalents, and restricted cash		$	2,676	$	3,608	$	1,502	$	961					$	4,178	$	4,569
Total Cash, Cash Equivalents, and Restricted Cash																				$	3,506	$	2,676	$	1,794	$	1,502					$	5,300	$	4,178

¹³¹¹ Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.

¹⁴¹² Reclassification of share-based compensation expense.

¹⁵¹³ Elimination of dividends from financial services to the equipment operations, which are included in the equipment operations’ operating activities.

¹⁶¹⁴ Primarily reclassification of receivables related to the sale of equipment.

¹⁷¹⁵ Reclassification of direct lease agreements with retail customers.

¹⁸¹⁶ Reclassification of sales incentive accruals on receivables sold to financial services.

¹⁹¹⁷ Elimination ~~and reclassification~~ of ~~the effects of~~change in investment from equipment operations to financial ~~services partial financing of the construction and forestry retail locations sales and subsequent collection of those amounts.~~services.

3836

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

See ~~the Company’s~~our most recently filed Annual Report on Form 10-K (Part II, Item 7A). There ~~has~~have been no material ~~change~~changes in this information.

Item 4. CONTROLS AND PROCEDURES

~~The Company’s~~Our principal executive officer and ~~its~~ principal financial officer have concluded that ~~the Company’s~~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 January ~~29, 2023,~~28, 2024, 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 first quarter of ~~2023,~~2024, there were no changes that have materially affected or are reasonably likely to materially affect ~~the Company’s~~our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

~~The Company is~~We are subject to various unresolved legal actions which arise in the normal course of ~~its~~our business, the most prevalent of which relate to product liability (including asbestos-related liability), retail credit, employment, patent, trademark, and antitrust matters. ~~The Company believes~~We believe the reasonably possible range of losses for these unresolved legal actions would not have a material effect on ~~its~~our consolidated financial statements.

Item 1A. Risk Factors

See ~~the Company’s~~our most recently filed Annual Report on Form 10-K (Part I, Item 1A). There ~~has~~have been no material ~~change~~changes in this information. The risks described in the Annual Report on Form 10-K, and the “Forward-Looking Statements” in this report, are not the only risks ~~faced by the Company.~~we face. Additional risks and uncertainties may also materially affect ~~the Company’s~~our business, financial condition, or operating results. One should not consider the risk factors to be a complete discussion of risks, uncertainties, and assumptions.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

~~The Company’s purchases~~Issuer Purchases of ~~its~~Equity Securities

Purchases of our common stock during the first quarter of ~~2023~~2024 were as follows:


				Total Number of					Total Number of
				Shares Purchased as	Maximum Number of				Shares Purchased as	Maximum Number of
	Total Number of			Part of Publicly	Shares that May Yet Be	Total Number of			Part of Publicly	Shares that May Yet Be
	Shares			Announced Plans or	Purchased under the	Shares			Announced Plans or	Purchased under the
	Purchased (2)	Average Price		Programs (1)	Plans or Programs (1)	Purchased (2)	Average Price		Programs (1)	Plans or Programs (1)
Period	(thousands)	Per Share		(thousands)	(millions)	(thousands)	Per Share		(thousands)	(millions)
Oct 31 to Nov 27	569	$	402.45	569	47.8
Nov 28 to Dec 25	1,831		436.23	1,774	46.0
Dec 26 to Jan 29	538		427.11	538	45.4
Oct 30 to Nov 26						1,178	$	377.57	1,178	31.8
Nov 27 to Dec 24						1,296		372.25	1,259	30.7
Dec 25 to Jan 28						1,050		393.54	1,050	29.6
Total	2,938			2,881		3,524			3,487

(1)

~~The Company has~~We have a share repurchase plan that was announced in December ~~2019~~2022 to purchase up to ~~$8,000 million~~$18.0 billion of shares of ~~the Company’s~~our common stock. The maximum number of shares that may yet be purchased under ~~the December 2019~~this plan was ~~2.4~~29.6 million ~~shares~~ based on the closing price of our common stock on the New York Stock Exchange as of the end of the first quarter ~~2023 closing share price~~ of ~~$418.18~~2024 of $393.62 per share. At the end of the first quarter of ~~2023, $995 million~~2024, $11.7 billion of common stock remains to be purchased under ~~the December 2019~~this plan. In December 2022, the Board of Directors authorized the repurchase of up to $18,000 million of additional common stock. Based on the first quarter 2023 closing share price, the maximum number of shares that may be repurchased under the December 2022 plan was 43.0 million shares.

(2)

In the first quarter of ~~2023, 57~~2024, 37 thousand shares were acquired from plan participants at a weighted-average market price of $365.60 per share to pay payroll taxes on ~~certain~~the vesting of restricted stock awards. ~~The shares were valued at a weighted-average market price of $434.88.~~

3937

Sales of Unregistered Securities

During the first quarter of 2024, we distributed 1,333 deferred stock awards to a participant account under the 2012 Deere & Company Nonemployee Director Stock Ownership Plan. The deferred stock awards converted to shares of common stock on a one-for-one basis. Deferred stock units and shares of common stock issued under the 2012 Deere & Company Nonemployee Director Stock Ownership Plan are exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506 of the SEC’s Regulation D thereunder.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

~~Not applicable.~~Director and Executive Officer Trading Arrangements

None.

Item 6. Exhibits

Certain instruments relating to long-term borrowings constituting less than 10 percent 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 ~~file~~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 ~~3.1~~3.2 to Form ~~8-K~~10-Q of registrant ~~filed on December 3, 2020,~~for the quarter ended July 30, 2023, Securities and Exchange Commission File Number 1-4121*)

~~10.1~~		~~John Deere ERISA Supplementary Pension Benefit Plan, as amended October 31, 2022~~

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.

4038

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:	February ~~23, 2023~~29, 2024	By:	/s/ Joshua A. Jepsen
			Joshua A. Jepsen Senior Vice President and Chief Financial Officer
			(Principal Financial Officer and Principal Accounting Officer)

4139


	Fair Value				Losses
					Three Months Ended
	January 29	October 30		January 30	January 29	January 30
	2023	2022		2022	2023	2022
Inventories		$	19
Property and equipment – net			15


	Production & Precision Ag		Small Ag & Turf		Construction & Forestry		Total
UAW ratification bonus – Cost of sales	$	53	$	9	$	28	$	90

Grant Date

Fair Value

Service-based

Performance/service-based

Market/service-based