Document and Entity Information
Document and Entity Information | 6 Months Ended |
May 01, 2022shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | May 1, 2022 |
Entity File Number | 1-4121 |
Entity Registrant Name | DEERE & CO |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 36-2382580 |
Entity Address, Address Line One | One John Deere Place |
Entity Address, City or Town | Moline |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 61265 |
City Area Code | 309 |
Local Phone Number | 765-8000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 305,635,672 |
Current Fiscal Year End Date | --10-30 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Entity Central Index Key | 0000315189 |
Amendment Flag | false |
Common Stock | |
Document Information [Line Items] | |
Title of 12(b) Security | Common stock, $1 par value |
Trading Symbol | DE |
Security Exchange Name | NYSE |
6.55% Debentures Due 2028 | |
Document Information [Line Items] | |
Title of 12(b) Security | 6.55% Debentures Due 2028 |
Trading Symbol | DE28 |
Security Exchange Name | NYSE |
STATEMENTS OF CONSOLIDATED INCO
STATEMENTS OF CONSOLIDATED INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | |
Net Sales and Revenues | ||||
Net sales and revenues | $ 13,370 | $ 12,058 | $ 22,939 | $ 21,170 |
Costs and Expenses | ||||
Research and development expenses | 453 | 377 | 855 | 743 |
Selling, administrative and general expenses | 932 | 838 | 1,713 | 1,607 |
Interest expense | 187 | 268 | 417 | 538 |
Other operating expenses | 328 | 335 | 638 | 708 |
Total | 10,818 | 9,746 | 19,236 | 17,330 |
Income of Consolidated Group before Income Taxes | 2,552 | 2,312 | 3,703 | 3,840 |
Provision for income taxes | 461 | 530 | 710 | 838 |
Income of Consolidated Group | 2,091 | 1,782 | 2,993 | 3,002 |
Equity in income of unconsolidated affiliates | 6 | 8 | 8 | 12 |
Net Income | 2,097 | 1,790 | 3,001 | 3,014 |
Less: Net income (loss) attributable to noncontrolling interests | (1) | 1 | ||
Net Income Attributable to Deere & Company | $ 2,098 | $ 1,790 | $ 3,001 | $ 3,013 |
Per Share Data | ||||
Basic (in dollars per share) | $ 6.85 | $ 5.72 | $ 9.78 | $ 9.62 |
Diluted (in dollars per share) | 6.81 | 5.68 | 9.72 | 9.55 |
Dividends declared (in dollars per share) | 1.05 | 0.90 | 2.10 | 1.66 |
Dividends paid (in dollars per share) | $ 1.05 | $ 0.76 | $ 2.10 | $ 1.52 |
Average Shares Outstanding | ||||
Basic (in shares) | 306.2 | 312.8 | 306.8 | 313.1 |
Diluted (in shares) | 308.1 | 315.2 | 308.8 | 315.6 |
Net Sales | ||||
Net Sales and Revenues | ||||
Net sales and revenues | $ 12,034 | $ 10,998 | $ 20,565 | $ 19,049 |
Costs and Expenses | ||||
Costs and expenses | 8,918 | 7,928 | 15,613 | 13,734 |
Finance and Interest Income | ||||
Net Sales and Revenues | ||||
Net sales and revenues | 796 | 809 | 1,595 | 1,644 |
Other | ||||
Net Sales and Revenues | ||||
Net sales and revenues | $ 540 | $ 251 | $ 779 | $ 477 |
STATEMENTS OF CONSOLIDATED COMP
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | |
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME | ||||
Net Income | $ 2,097 | $ 1,790 | $ 3,001 | $ 3,014 |
Other Comprehensive Income (Loss), Net of Income Taxes | ||||
Retirement benefits adjustment | 129 | 91 | (216) | 154 |
Cumulative translation adjustment | (248) | 37 | (515) | 433 |
Unrealized gain on derivatives | 28 | 3 | 42 | 7 |
Unrealized loss on debt securities | (48) | (13) | (63) | (15) |
Other Comprehensive Income (Loss), Net of Income Taxes | (139) | 118 | (752) | 579 |
Comprehensive Income of Consolidated Group | 1,958 | 1,908 | 2,249 | 3,593 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (5) | (4) | 1 | |
Comprehensive Income Attributable to Deere & Company | $ 1,963 | $ 1,908 | $ 2,253 | $ 3,592 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | May 01, 2022 | Oct. 31, 2021 | May 02, 2021 |
Assets | |||
Cash and cash equivalents | $ 3,878 | $ 8,017 | $ 7,182 |
Marketable securities | 682 | 728 | 668 |
Trade accounts and notes receivable - net | 6,258 | 4,208 | 6,158 |
Financing receivables - net | 34,085 | 33,799 | 30,994 |
Financing receivables securitized - net | 4,073 | 4,659 | 4,107 |
Other receivables | 2,306 | 1,765 | 1,504 |
Equipment on operating leases - net | 6,465 | 6,988 | 7,108 |
Inventories | 9,030 | 6,781 | 6,042 |
Property and equipment - net | 5,715 | 5,820 | 5,704 |
Goodwill | 3,812 | 3,291 | 3,190 |
Other intangible assets - net | 1,352 | 1,275 | 1,310 |
Retirement benefits | 3,059 | 3,601 | 951 |
Deferred income taxes | 1,104 | 1,037 | 1,724 |
Other assets | 2,280 | 2,145 | 2,337 |
Total Assets | 84,099 | 84,114 | 78,979 |
Liabilities | |||
Short-term borrowings | 12,413 | 10,919 | 9,911 |
Short-term securitization borrowings | 4,006 | 4,605 | 4,106 |
Accounts payable and accrued expenses | 12,679 | 12,348 | 10,682 |
Deferred income taxes | 584 | 576 | 533 |
Long-term borrowings | 32,447 | 32,888 | 33,346 |
Retirement benefits and other liabilities | 2,964 | 4,344 | 5,305 |
Total liabilities | 65,093 | 65,680 | 63,883 |
Commitments and contingencies (Note 15) | |||
Redeemable noncontrolling interest (Note 19) | 99 | ||
Stockholders' Equity | |||
Common stock, $1 par value (issued shares at May 1, 2022 - 536,431,204) | 5,117 | 5,054 | 4,999 |
Common stock in treasury | (21,727) | (20,533) | (19,052) |
Retained earnings | 38,805 | 36,449 | 34,105 |
Accumulated other comprehensive income (loss) | (3,291) | (2,539) | (4,960) |
Total Deere & Company stockholders' equity | 18,904 | 18,431 | 15,092 |
Noncontrolling interests | 3 | 3 | 4 |
Total stockholders' equity | 18,907 | 18,434 | 15,096 |
Total Liabilities and Stockholders' Equity | $ 84,099 | $ 84,114 | $ 78,979 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) | May 01, 2022$ / sharesshares |
CONDENSED CONSOLIDATED BALANCE SHEETS | |
Common stock, par value (in dollars per share) | $ / shares | $ 1 |
Common stock, issued shares | shares | 536,431,204 |
STATEMENTS OF CONSOLIDATED CASH
STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
May 01, 2022 | May 02, 2021 | |
Cash Flows from Operating Activities | ||
Net income | $ 3,001 | $ 3,014 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||
Provision (credit) for credit losses | 45 | (24) |
Provision for depreciation and amortization | 933 | 1,054 |
Impairment charges | 77 | 50 |
Share-based compensation expense | 44 | 45 |
Gain on remeasurement of previously held equity investment | (326) | |
Undistributed earnings of unconsolidated affiliates | (2) | 11 |
Provision (credit) for deferred income taxes | 37 | (213) |
Changes in assets and liabilities: | ||
Trade, notes, and financing receivables related to sales | (1,535) | (1,124) |
Inventories | (2,265) | (1,193) |
Accounts payable and accrued expenses | (443) | 318 |
Accrued income taxes payable/receivable | (139) | 54 |
Retirement benefits | (1,020) | (5) |
Other | (169) | (201) |
Net cash provided by (used for) operating activities | (1,762) | 1,786 |
Cash Flows from Investing Activities | ||
Collections of receivables (excluding receivables related to sales) | 11,190 | 10,367 |
Proceeds from sales of equipment on operating leases | 1,035 | 1,011 |
Cost of receivables acquired (excluding receivables related to sales) | (11,971) | (11,359) |
Acquisitions of businesses, net of cash acquired | (473) | (19) |
Purchases of property and equipment | (346) | (320) |
Cost of equipment on operating leases acquired | (1,004) | (764) |
Collateral on derivatives - net | (248) | (255) |
Other | (71) | (48) |
Net cash used for investing activities | (1,888) | (1,387) |
Cash Flows from Financing Activities | ||
Increase in total short-term borrowings | 812 | 212 |
Proceeds from long-term borrowings | 4,298 | 3,967 |
Payments of long-term borrowings | (3,625) | (3,157) |
Proceeds from issuance of common stock | 50 | 116 |
Repurchases of common stock | (1,226) | (1,044) |
Dividends paid | (649) | (480) |
Other | (46) | (55) |
Net cash used for financing activities | (386) | (441) |
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash | (110) | 151 |
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | (4,146) | 109 |
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 8,125 | 7,172 |
Cash, Cash Equivalents, and Restricted Cash at End of Period | 3,979 | 7,281 |
Components of cash, cash equivalents, and restricted cash | ||
Cash and cash equivalents | 3,878 | 7,182 |
Restricted cash (Other assets) | $ 101 | $ 99 |
Restricted Cash and Cash Equivalents, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Total cash, cash equivalents, and restricted cash | $ 3,979 | $ 7,281 |
STATEMENTS OF CHANGES IN CONSOL
STATEMENTS OF CHANGES IN CONSOLIDATED STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Common Stock | Treasury Stock | Retained EarningsCumulative Effect from Adoption | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Cumulative Effect from Adoption | Total |
Balance (ASU 2016-13) at Nov. 01, 2020 | $ (35) | $ (35) | ||||||
Balance at Nov. 01, 2020 | $ 4,895 | $ (18,065) | $ 31,646 | $ (5,539) | $ 7 | $ 12,944 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 3,013 | 1 | 3,014 | |||||
Other comprehensive income (loss) | 579 | 579 | ||||||
Repurchases of common stock | (1,044) | (1,044) | ||||||
Treasury shares reissued | 57 | 57 | ||||||
Dividends declared | (520) | (520) | ||||||
Stock options and other | 104 | 1 | (4) | 101 | ||||
Balance at May. 02, 2021 | 4,999 | (19,052) | 34,105 | (4,960) | 4 | 15,096 | ||
Balance at Jan. 31, 2021 | 4,942 | (18,377) | 32,596 | (5,078) | 3 | 14,086 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 1,790 | 1,790 | ||||||
Other comprehensive income (loss) | 118 | 118 | ||||||
Repurchases of common stock | (692) | (692) | ||||||
Treasury shares reissued | 17 | 17 | ||||||
Dividends declared | (282) | (282) | ||||||
Stock options and other | 57 | 1 | 1 | 59 | ||||
Balance at May. 02, 2021 | 4,999 | (19,052) | 34,105 | (4,960) | 4 | 15,096 | ||
Balance at Oct. 31, 2021 | 5,054 | (20,533) | 36,449 | (2,539) | 3 | 18,434 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 3,001 | 1 | 3,002 | |||||
Other comprehensive income (loss) | (752) | (752) | ||||||
Repurchases of common stock | (1,226) | (1,226) | ||||||
Treasury shares reissued | 32 | 32 | ||||||
Dividends declared | (645) | (1) | (646) | |||||
Stock options and other | 63 | 63 | ||||||
Balance at May. 01, 2022 | 5,117 | (21,727) | 38,805 | (3,291) | 3 | 18,907 | ||
Increase (Decrease) in Redeemable Noncontrolling Interest | ||||||||
Acquisitions (See Note 19) | 105 | |||||||
Net loss | (1) | |||||||
Other comprehensive loss | (4) | |||||||
Other | (1) | |||||||
Redeemable Noncontrolling Interest - Balance at May. 01, 2022 | 99 | |||||||
Balance at Jan. 30, 2022 | 5,066 | (21,139) | 37,029 | (3,152) | 4 | 17,808 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 2,098 | 2,098 | ||||||
Other comprehensive income (loss) | (139) | (139) | ||||||
Repurchases of common stock | (603) | (603) | ||||||
Treasury shares reissued | 15 | 15 | ||||||
Dividends declared | (322) | (1) | (323) | |||||
Stock options and other | 51 | 51 | ||||||
Balance at May. 01, 2022 | $ 5,117 | $ (21,727) | $ 38,805 | $ (3,291) | $ 3 | 18,907 | ||
Increase (Decrease) in Redeemable Noncontrolling Interest | ||||||||
Acquisitions (See Note 19) | 105 | |||||||
Net loss | (1) | |||||||
Other comprehensive loss | (4) | |||||||
Other | (1) | |||||||
Redeemable Noncontrolling Interest - Balance at May. 01, 2022 | $ 99 |
ORGANIZATION AND CONSOLIDATION
ORGANIZATION AND CONSOLIDATION | 6 Months Ended |
May 01, 2022 | |
ORGANIZATION AND CONSOLIDATION | |
ORGANIZATION AND CONSOLIDATION | (1)    Organization and Consolidation The information in the notes and related commentary are presented in a format which includes data grouped as follows: Consolidated Equipment Operations Financial Services – The Company uses a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period. The second quarter ends for fiscal year 2022 and 2021 were May 1, 2022 and May 2, 2021, respectively. Both second quarters contained 13 weeks, while both year-to-date periods contained 26 weeks. Unless otherwise stated, references to particular years or quarters refer to the Company’s fiscal years generally ending in October and the associated periods in those fiscal years. Prior to fiscal year 2021, the operating results of the Wirtgen Group (Wirtgen) were incorporated into the Company’s consolidated financial statements using a one-month lag period. The reporting lag was eliminated resulting in one additional month of Wirtgen activity in both the first quarter and the year-to-date period of 2021. The effect was an increase to Net sales of $270 million, which the Company considers immaterial to construction and forestry’s annual net sales. As a result of recent acquisitions (see Note 19), the Company updated the presentation on the consolidated balance sheet to remove the following lines: Receivables from unconsolidated affiliates, Investments in unconsolidated affiliates, and Payables to unconsolidated affiliates. These balances are now immaterial to the Company’s consolidated balance sheet and have been reclassified into Other receivables, Other assets, and Accounts payable and accrued expenses, respectively. The Company consolidates certain variable interest entities (VIEs) related to retail note securitizations (see Note 9). ​ |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING STANDARDS | 6 Months Ended |
May 01, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING STANDARDS | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING STANDARDS | (2)    Summary of Significant Accounting Policies and New Accounting Standards Quarterly Financial Statements T Use of Estimates in Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Actual results could differ from those estimates. Revenue Recognition Prior to fiscal year 2022, certain goods were shipped to Canadian dealers on a consignment basis under which the risk and rewards of ownership were not transferred to the dealer at the time the goods were delivered. Accordingly, sales were not recorded until a retail customer purchased the goods. The dealer contract in Canada was changed for goods delivered after November 1, 2021, resulting in transfer of control and revenue recognition upon delivery. For certain goods delivered to Canadian dealers prior to November 1, 2021, the dealer consignment terms already in place remain in effect. As of May 1, 2022 and October 31, 2021, the remaining consigned inventory was $46 million and $150 million, respectively. New Accounting Standards The Company closely monitors all Accounting Standard Updates (ASUs) issued by the Financial Accounting Standards Board and other authoritative guidance. ASUs adopted in 2022 did not have a material impact on the Company’s financial statements, and ASUs to be adopted in future periods are being evaluated and at this point are not expected to have a material impact on the Company’s financial statements |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
May 01, 2022 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | (3)  Revenue Recognition The Company’s net sales and revenues by primary geographic market, major product line, and timing of revenue recognition in millions of dollars follow: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended May 1, 2022 ​ ​ Production & Precision Ag Small Ag & Turf Construction Financial Total ​ Primary geographic markets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 2,434 ​ $ 2,103 ​ $ 2,108 ​ $ 569 ​ $ 7,214 ​ Canada ​ ​ 309 ​ ​ 161 ​ ​ 355 ​ 149 ​ 974 ​ Western Europe ​ ​ 536 ​ ​ 658 ​ ​ 464 ​ 25 ​ 1,683 ​ Central Europe and CIS ​ ​ 404 ​ ​ 151 ​ ​ 146 ​ 11 ​ 712 ​ Latin America ​ ​ 1,126 ​ ​ 134 ​ ​ 333 ​ 73 ​ 1,666 ​ Asia, Africa, Australia, New Zealand, and Middle East ​ ​ 367 ​ ​ 399 ​ ​ 318 ​ ​ 37 ​ ​ 1,121 ​ Total ​ $ 5,176 ​ $ 3,606 ​ $ 3,724 ​ $ 864 ​ $ 13,370 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Major product lines: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production agriculture ​ $ 5,032 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 5,032 ​ Small agriculture ​ ​ ​ ​ $ 2,668 ​ ​ ​ ​ ​ ​ 2,668 ​ Turf ​ ​ ​ ​ ​ 817 ​ ​ ​ ​ ​ ​ 817 ​ Construction ​ ​ ​ ​ ​ ​ ​ $ 1,516 ​ ​ ​ 1,516 ​ Compact construction ​ ​ ​ ​ ​ ​ ​ ​ 427 ​ ​ ​ ​ ​ 427 ​ Roadbuilding ​ ​ ​ ​ ​ ​ ​ ​ 1,017 ​ ​ ​ 1,017 ​ Forestry ​ ​ ​ ​ ​ ​ ​ ​ 325 ​ ​ ​ 325 ​ Financial products ​ ​ 10 ​ ​ 9 ​ ​ 6 ​ $ 864 ​ 889 ​ Other ​ ​ 134 ​ ​ 112 ​ ​ 433 ​ ​ ​ 679 ​ Total ​ $ 5,176 ​ $ 3,606 ​ $ 3,724 ​ $ 864 ​ $ 13,370 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue recognized: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At a point in time ​ $ 5,144 ​ $ 3,593 ​ $ 3,707 ​ $ 26 ​ $ 12,470 ​ Over time ​ ​ 32 ​ ​ 13 ​ ​ 17 ​ ​ 838 ​ ​ 900 ​ Total ​ $ 5,176 ​ $ 3,606 ​ $ 3,724 ​ $ 864 ​ $ 13,370 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended May 1, 2022 ​ ​ ​ Production & Precision Ag Small Ag & Turf Construction Financial Total ​ Primary geographic markets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 4,042 ​ $ 3,541 ​ $ 3,368 ​ $ 1,142 ​ $ 12,093 ​ Canada ​ ​ 448 ​ ​ 283 ​ ​ 687 ​ 301 ​ 1,719 ​ Western Europe ​ ​ 1,003 ​ ​ 1,190 ​ ​ 822 ​ 51 ​ 3,066 ​ Central Europe and CIS ​ ​ 606 ​ ​ 277 ​ ​ 341 ​ 22 ​ 1,246 ​ Latin America ​ ​ 1,902 ​ ​ 238 ​ ​ 561 ​ 141 ​ 2,842 ​ Asia, Africa, Australia, New Zealand, and Middle East ​ ​ 608 ​ ​ 751 ​ ​ 537 ​ ​ 77 ​ ​ 1,973 ​ Total ​ $ 8,609 ​ $ 6,280 ​ $ 6,316 ​ $ 1,734 ​ $ 22,939 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Major product lines: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production agriculture ​ $ 8,315 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 8,315 ​ Small agriculture ​ ​ ​ ​ $ 4,600 ​ ​ ​ ​ ​ ​ 4,600 ​ Turf ​ ​ ​ ​ ​ 1,444 ​ ​ ​ ​ ​ ​ 1,444 ​ Construction ​ ​ ​ ​ ​ ​ ​ $ 2,691 ​ ​ ​ 2,691 ​ Compact construction ​ ​ ​ ​ ​ ​ ​ ​ 748 ​ ​ ​ ​ ​ 748 ​ Roadbuilding ​ ​ ​ ​ ​ ​ ​ ​ 1,709 ​ ​ ​ 1,709 ​ Forestry ​ ​ ​ ​ ​ ​ ​ ​ 630 ​ ​ ​ ​ 630 ​ Financial products ​ ​ 22 ​ ​ 20 ​ ​ 11 ​ $ 1,734 ​ 1,787 ​ Other ​ ​ 272 ​ ​ 216 ​ ​ 527 ​ ​ ​ 1,015 ​ Total ​ $ 8,609 ​ $ 6,280 ​ $ 6,316 ​ $ 1,734 ​ $ 22,939 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue recognized: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At a point in time ​ $ 8,540 ​ $ 6,247 ​ $ 6,277 ​ $ 50 ​ $ 21,114 ​ Over time ​ ​ 69 ​ ​ 33 ​ ​ 39 ​ ​ 1,684 ​ ​ 1,825 ​ Total ​ $ 8,609 ​ $ 6,280 ​ $ 6,316 ​ $ 1,734 ​ $ 22,939 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended May 2, 2021 ​ ​ Production & Precision Ag Small Ag & Turf Construction Financial Total ​ Primary geographic markets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 2,211 ​ $ 1,838 ​ $ 1,481 ​ $ 608 ​ $ 6,138 ​ Canada ​ ​ 252 ​ ​ 144 ​ ​ 320 ​ 153 ​ 869 ​ Western Europe ​ ​ 589 ​ ​ 738 ​ ​ 514 ​ ​ 26 ​ 1,867 ​ Central Europe and CIS ​ ​ 531 ​ ​ 160 ​ ​ 209 ​ ​ 9 ​ 909 ​ Latin America ​ ​ 700 ​ ​ 103 ​ ​ 220 ​ ​ 60 ​ 1,083 ​ Asia, Africa, Australia, New Zealand, and Middle East ​ ​ 319 ​ ​ 444 ​ ​ 393 ​ ​ 36 ​ ​ 1,192 ​ Total ​ $ 4,602 ​ $ 3,427 ​ $ 3,137 ​ $ 892 ​ $ 12,058 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Major product lines: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production agriculture ​ $ 4,466 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 4,466 ​ Small agriculture ​ ​ ​ ​ $ 2,417 ​ ​ ​ ​ ​ ​ 2,417 ​ Turf ​ ​ ​ ​ ​ 898 ​ ​ ​ ​ ​ ​ 898 ​ Construction ​ ​ ​ ​ ​ ​ ​ $ 1,232 ​ ​ ​ 1,232 ​ Compact construction ​ ​ ​ ​ ​ ​ ​ ​ 396 ​ ​ ​ ​ ​ 396 ​ Roadbuilding ​ ​ ​ ​ ​ ​ ​ ​ 1,066 ​ ​ ​ 1,066 ​ Forestry ​ ​ ​ ​ ​ ​ ​ ​ 343 ​ ​ ​ 343 ​ Financial products ​ ​ 12 ​ ​ 10 ​ ​ 5 ​ $ 892 ​ 919 ​ Other ​ ​ 124 ​ ​ 102 ​ ​ 95 ​ ​ ​ 321 ​ Total ​ $ 4,602 ​ $ 3,427 ​ $ 3,137 ​ $ 892 ​ $ 12,058 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue recognized: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At a point in time ​ $ 4,562 ​ $ 3,412 ​ $ 3,114 ​ $ 26 ​ $ 11,114 ​ Over time ​ ​ 40 ​ ​ 15 ​ ​ 23 ​ ​ 866 ​ ​ 944 ​ Total ​ $ 4,602 ​ $ 3,427 ​ $ 3,137 ​ $ 892 ​ $ 12,058 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended May 2, 2021 ​ ​ Production & Precision Ag Small Ag & Turf Construction Financial Total ​ Primary geographic markets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 3,820 ​ $ 3,261 ​ $ 2,683 ​ $ 1,206 ​ $ 10,970 ​ Canada ​ ​ 364 ​ ​ 223 ​ ​ 508 ​ ​ 307 ​ 1,402 ​ Western Europe ​ ​ 1,038 ​ ​ 1,224 ​ ​ 953 ​ ​ 50 ​ 3,265 ​ Central Europe and CIS ​ ​ 692 ​ ​ 244 ​ ​ 387 ​ ​ 18 ​ 1,341 ​ Latin America ​ ​ 1,213 ​ ​ 180 ​ ​ 390 ​ ​ 119 ​ 1,902 ​ Asia, Africa, Australia, New Zealand, and Middle East ​ ​ 623 ​ ​ 845 ​ ​ 746 ​ ​ 76 ​ ​ 2,290 ​ Total ​ $ 7,750 ​ $ 5,977 ​ $ 5,667 ​ $ 1,776 ​ $ 21,170 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Major product lines: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production agriculture ​ $ 7,478 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 7,478 ​ Small agriculture ​ ​ ​ ​ $ 4,228 ​ ​ ​ ​ ​ ​ ​ 4,228 ​ Turf ​ ​ ​ ​ ​ 1,549 ​ ​ ​ ​ ​ ​ ​ 1,549 ​ Construction ​ ​ ​ ​ ​ ​ ​ $ 2,119 ​ ​ ​ ​ 2,119 ​ Compact construction ​ ​ ​ ​ ​ ​ ​ ​ 742 ​ ​ ​ ​ ​ 742 ​ Roadbuilding ​ ​ ​ ​ ​ ​ ​ ​ 1,976 ​ ​ ​ ​ 1,976 ​ Forestry ​ ​ ​ ​ ​ ​ ​ ​ 633 ​ ​ ​ ​ 633 ​ Financial products ​ ​ 28 ​ ​ 20 ​ ​ 12 ​ $ 1,776 ​ 1,836 ​ Other ​ ​ 244 ​ ​ 180 ​ ​ 185 ​ ​ ​ ​ 609 ​ Total ​ $ 7,750 ​ $ 5,977 ​ $ 5,667 ​ $ 1,776 ​ $ 21,170 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue recognized: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At a point in time ​ $ 7,668 ​ $ 5,946 ​ $ 5,614 ​ $ 50 ​ $ 19,278 ​ Over time ​ ​ 82 ​ ​ 31 ​ ​ 53 ​ ​ 1,726 ​ ​ 1,892 ​ Total ​ $ 7,750 ​ $ 5,977 ​ $ 5,667 ​ $ 1,776 ​ $ 21,170 ​ ​ The Company invoices in advance of recognizing the sale of certain products and the revenue for certain services. These items are primarily for premiums for extended warranties, advance payments for future equipment sales, and subscription and service revenue related to precision guidance and telematic services. These advanced customer payments are presented as deferred revenue, a contract liability, in Accounts payable and accrued expenses in the consolidated balance sheets. The deferred revenue received, but not recognized in revenue, including extended warranty premiums also shown in Note 15, was $1,423 million, $1,344 million, and $1,249 million at May 1, 2022, October 31, 2021, and May 2, 2021, respectively. The contract liability is reduced as the revenue is recognized. During the three months ended May 1, 2022 and May 2, 2021, $130 million and $111 million, respectively, of revenue was recognized from deferred revenue that was recorded as a contract liability at the beginning of the respective fiscal year. During the six months ended May 1, 2022 and May 2, 2021, $395 million and $335 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 $1,116 million at May 1, 2022. The estimated revenue to be recognized by fiscal year follows in millions of dollars: remainder of 2022 - $173, 2023 - $311, 2024 - $260, 2025 - $168, 2026 - $87, 2027 - $52 and later years - $65. As permitted, the Company 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 generally for sales of equipment, service parts, repair services, and certain telematics services. |
OTHER COMPREHENSIVE INCOME ITEM
OTHER COMPREHENSIVE INCOME ITEMS | 6 Months Ended |
May 01, 2022 | |
OTHER COMPREHENSIVE INCOME ITEMS | |
OTHER COMPREHENSIVE INCOME ITEMS | (4)   Other Comprehensive Income Items The after-tax components of accumulated other comprehensive income (loss) in millions of dollars follow: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 ​ October 31 ​ May 2 ​ ​ ​ 2022 ​ 2021 ​ 2021 ​ Retirement benefits adjustment ​ $ (1,250) ​ $ (1,034) ​ $ (3,764) ​ Cumulative translation adjustment ​ ​ (1,993) ​ ​ (1,478) ​ ​ (1,163) ​ Unrealized loss on derivatives ​ ​ ​ ​ ​ (42) ​ ​ (51) ​ Unrealized gain (loss) on debt securities ​ ​ (48) ​ ​ 15 ​ ​ 18 ​ Total accumulated other comprehensive income (loss) ​ $ (3,291) ​ $ (2,539) ​ $ (4,960) ​ ​ Following are amounts recorded in and 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 ​ ​ Tax ​ (Expense) ​ Tax Three Months Ended May 1, 2022 ​ Amount ​ Credit ​ Amount Cumulative translation adjustment ​ $ (243) ​ $ (5) ​ $ (248) ​ Unrealized gain (loss) on derivatives: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized hedging gain (loss) ​ ​ 35 ​ ​ (7) ​ ​ 28 ​ Reclassification of realized (gain) loss to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts – Interest expense ​ ​ 1 ​ ​ (1) ​ ​ ​ ​ Net unrealized gain (loss) on derivatives ​ ​ 36 ​ ​ (8) ​ ​ 28 ​ Unrealized gain (loss) on debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gain (loss) ​ ​ (61) ​ ​ 13 ​ ​ (48) ​ Net unrealized gain (loss) on debt securities ​ ​ (61) ​ ​ 13 ​ ​ (48) ​ Retirement benefits adjustment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net actuarial gain (loss) ​ ​ 128 ​ ​ (30) ​ ​ 98 ​ Reclassification to Other operating expenses through amortization of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actuarial (gain) loss ​ ​ 27 ​ ​ (7) ​ ​ 20 ​ Prior service (credit) cost ​ ​ 8 ​ ​ (2) ​ ​ 6 ​ Settlements ​ ​ 7 ​ ​ (2) ​ ​ 5 ​ Net unrealized gain (loss) on retirement benefits adjustment ​ ​ 170 ​ ​ (41) ​ ​ 129 ​ Total other comprehensive income (loss) $ (98) ​ $ (41) ​ $ (139) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Before Tax After ​ ​ Tax ​ (Expense) ​ Tax Six Months Ended May 1, 2022 ​ Amount ​ Credit ​ Amount Cumulative translation adjustment $ (507) ​ $ (8) ​ $ (515) ​ Unrealized gain (loss) on derivatives: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized hedging gain (loss) ​ ​ 50 ​ ​ (10) ​ ​ 40 ​ Reclassification of realized (gain) loss to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts – Interest expense ​ ​ 3 ​ ​ (1) ​ ​ 2 ​ Net unrealized gain (loss) on derivatives ​ ​ 53 ​ ​ (11) ​ ​ 42 ​ Unrealized gain (loss) on debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gain (loss) ​ ​ (80) ​ ​ 17 ​ ​ (63) ​ Net unrealized gain (loss) on debt securities ​ ​ (80) ​ ​ 17 ​ ​ (63) ​ Retirement benefits adjustment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net actuarial gain (loss) ​ ​ (372) ​ ​ 90 ​ ​ (282) ​ Reclassification to Other operating expenses through amortization of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actuarial (gain) loss ​ ​ 67 ​ ​ (17) ​ ​ 50 ​ Prior service (credit) cost ​ ​ 14 ​ ​ (4) ​ ​ 10 ​ Settlements ​ ​ 8 ​ ​ (2) ​ ​ 6 ​ Net unrealized gain (loss) on retirement benefits adjustment ​ ​ (283) ​ ​ 67 ​ ​ (216) ​ Total other comprehensive income (loss) $ (817) ​ $ 65 ​ $ (752) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Before Tax After ​ ​ Tax ​ (Expense) ​ Tax Three Months Ended May 2, 2021 ​ Amount ​ Credit ​ Amount Cumulative translation adjustment $ 37 ​ ​ ​ ​ $ 37 ​ Unrealized gain (loss) on derivatives: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reclassification of realized (gain) loss to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts – Interest expense ​ ​ 4 ​ $ (1) ​ ​ 3 ​ Net unrealized gain (loss) on derivatives ​ ​ 4 ​ ​ (1) ​ ​ 3 ​ Unrealized gain (loss) on debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gain (loss) ​ ​ (14) ​ ​ 1 ​ ​ (13) ​ Net unrealized gain (loss) on debt securities ​ ​ (14) ​ ​ 1 ​ ​ (13) ​ Retirement benefits adjustment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net actuarial gain (loss) ​ ​ 41 ​ ​ (9) ​ ​ 32 ​ Reclassification to Other operating expenses through amortization of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actuarial (gain) loss ​ ​ 72 ​ ​ (19) ​ ​ 53 ​ Prior service (credit) cost ​ ​ 2 ​ ​ ​ ​ ​ 2 ​ Settlements ​ ​ 5 ​ ​ (1) ​ ​ 4 ​ Net unrealized gain (loss) on retirement benefits adjustment ​ ​ 120 ​ ​ (29) ​ ​ 91 ​ Total other comprehensive income (loss) $ 147 ​ $ (29) ​ $ 118 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Before Tax After ​ ​ Tax ​ (Expense) ​ Tax Six Months Ended May 2, 2021 ​ Amount ​ Credit ​ Amount Cumulative translation adjustment $ 431 $ 2 ​ $ 433 ​ Unrealized gain (loss) on derivatives: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reclassification of realized (gain) loss to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts – Interest expense ​ ​ 9 ​ ​ (2) ​ ​ 7 ​ Net unrealized gain (loss) on derivatives ​ ​ 9 ​ ​ (2) ​ ​ 7 ​ Unrealized gain (loss) on debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gain (loss) ​ ​ (17) ​ ​ 2 ​ ​ (15) ​ Net unrealized gain (loss) on debt securities ​ ​ (17) ​ ​ 2 ​ ​ (15) ​ Retirement benefits adjustment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net actuarial gain (loss) ​ ​ 40 ​ ​ (9) ​ ​ 31 ​ Reclassification to Other operating expenses through amortization of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actuarial (gain) loss ​ ​ 142 ​ ​ (36) ​ ​ 106 ​ Prior service (credit) cost ​ ​ 4 ​ ​ (1) ​ ​ 3 ​ Settlements ​ ​ 18 ​ ​ (4) ​ ​ 14 ​ Net unrealized gain (loss) on retirement benefits adjustment ​ ​ 204 ​ ​ (50) ​ ​ 154 ​ Total other comprehensive income (loss) $ 627 ​ $ (48) ​ $ 579 ​ ​ |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
May 01, 2022 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | (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 ​ Six Months Ended ​ ​ May 1 ​ May 2 ​ May 1 ​ May 2 ​ ​ 2022 ​ 2021 ​ 2022 ​ 2021 Net income attributable to Deere & Company $ 2,098 $ 1,790 $ 3,001 $ 3,013 ​ Average shares outstanding ​ ​ 306.2 ​ 312.8 ​ ​ 306.8 ​ 313.1 ​ Basic per share ​ $ 6.85 ​ $ 5.72 ​ $ 9.78 ​ $ 9.62 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average shares outstanding ​ ​ 306.2 ​ 312.8 ​ ​ 306.8 ​ 313.1 ​ Effect of dilutive share-based compensation ​ ​ 1.9 ​ 2.4 ​ ​ 2.0 ​ 2.5 ​ Total potential shares outstanding ​ ​ 308.1 ​ 315.2 ​ ​ 308.8 ​ 315.6 ​ Diluted per share ​ $ 6.81 ​ $ 5.68 ​ $ 9.72 ​ $ 9.55 ​ ​ During the second quarter and first six months of 2022, .2 million shares and .1 million shares, respectively, were excluded from the computation because the incremental shares would have been antidilutive. During the second quarter and first six months of 2021, no shares were antidilutive. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS | 6 Months Ended |
May 01, 2022 | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | (6)   Pension and Other Postretirement Benefits The Company has several defined benefit pension plans and postretirement benefit (OPEB) plans, primarily health care and life insurance plans, covering its U.S. employees and employees in certain foreign countries. The components of net periodic pension cost consisted of the following in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ May 1 ​ May 2 ​ May 1 ​ May 2 ​ ​ 2022 ​ 2021 ​ 2022 ​ 2021 Service cost $ 94 $ 83 $ 179 $ 168 ​ Interest cost ​ ​ 80 ​ 69 ​ ​ 157 ​ 138 ​ Expected return on plan assets ​ ​ (180) ​ (200) ​ ​ (362) ​ (400) ​ Amortization of actuarial loss ​ ​ 37 ​ 65 ​ ​ 76 ​ 128 ​ Amortization of prior service cost ​ ​ 9 ​ 3 ​ ​ 16 ​ 6 ​ Settlements ​ ​ 7 ​ 5 ​ ​ 8 ​ 18 ​ Net cost ​ $ 47 ​ $ 25 ​ $ 74 ​ $ 58 ​ The components of net periodic OPEB (benefit) cost consisted of the following in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ May 1 ​ May 2 ​ May 1 ​ May 2 ​ ​ 2022 ​ 2021 ​ 2022 ​ 2021 Service cost $ 11 $ 12 $ 23 $ 24 ​ Interest cost ​ ​ 23 ​ 25 ​ ​ 49 ​ 51 ​ Expected return on plan assets ​ ​ (27) ​ (20) ​ ​ (55) ​ (39) ​ Amortization of actuarial (gain) loss ​ ​ (10) ​ 7 ​ ​ (9) ​ 14 ​ Amortization of prior service credit ​ ​ (1) ​ (1) ​ ​ (2) ​ (2) ​ Net (benefit) cost ​ $ (4) ​ $ 23 ​ $ 6 ​ $ 48 ​ ​ The components of net periodic pension and OPEB costs excluding the service cost component are included in the line item Other operating expenses in the statements of consolidated income. 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. In the first quarter of 2022, the Company remeasured the U.S. hourly pension plan due to the new collective bargaining agreement, which decreased the plan’s funded status by approximately $495 million and will increase pension expense in 2022 by nearly $80 million with $35 million negatively impacting operating profit in 2022. During the first six months of 2022, the Company contributed $47 million to its pension plans and $1,085 million to its OPEB plans. The OPEB contributions include a voluntary contribution of $1,000 million to a U.S. plan on November 30, 2021. The Company presently anticipates contributing an additional $43 million to its pension plans and $50 million to its OPEB plans during the remainder of fiscal year 2022. The remaining pension and OPEB contributions are primarily direct benefit payments from Company funds. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
May 01, 2022 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | (7)   Segment Reporting Worldwide net sales and revenues, operating profit, and identifiable assets by segment were as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ May 1 ​ May 2 ​ % ​ May 1 ​ May 2 ​ % ​ ​ 2022 ​ 2021 ​ Change ​ 2022 ​ 2021 ​ Change Net sales and revenues: ​ ​ ​ ​ ​ ​ Production & precision ag net sales $ 5,117 ​ $ 4,529 ​ +13 $ 8,473 ​ $ 7,599 ​ +12 ​ Small ag & turf net sales ​ ​ 3,570 ​ ​ 3,390 ​ +5 ​ ​ 6,201 ​ ​ 5,904 ​ +5 ​ Construction & forestry net sales ​ ​ 3,347 ​ 3,079 ​ +9 ​ ​ 5,891 ​ 5,546 ​ +6 ​ Financial services revenues ​ ​ 864 ​ 892 ​ -3 ​ ​ 1,734 ​ 1,776 ​ -2 ​ Other revenues ​ ​ 472 ​ 168 ​ +181 ​ ​ 640 ​ 345 ​ +86 ​ Total net sales and revenues $ 13,370 ​ $ 12,058 ​ +11 $ 22,939 ​ $ 21,170 ​ +8 ​ Operating profit: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production & precision ag $ 1,057 ​ $ 1,007 ​ +5 $ 1,353 ​ $ 1,651 ​ -18 ​ Small ag & turf ​ ​ 520 ​ ​ 648 ​ -20 ​ ​ 891 ​ ​ 1,117 ​ -20 ​ Construction & forestry ​ ​ 814 ​ 489 ​ +66 ​ ​ 1,085 ​ 756 ​ +44 ​ Financial services ​ ​ 279 ​ 295 ​ -5 ​ ​ 577 ​ 553 ​ +4 ​ Total operating profit ​ ​ 2,670 ​ 2,439 ​ +9 ​ ​ 3,906 ​ 4,077 ​ -4 ​ Reconciling items ​ ​ (111) ​ (119) ​ -7 ​ ​ (195) ​ (226) ​ -14 ​ Income taxes ​ ​ (461) ​ (530) ​ -13 ​ ​ (710) ​ (838) ​ -15 ​ Net income attributable to Deere & Company $ 2,098 ​ $ 1,790 ​ +17 $ 3,001 ​ $ 3,013 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intersegment sales and revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production & precision ag net sales $ 6 ​ $ 7 ​ -14 $ 10 ​ $ 13 ​ -23 ​ Small ag & turf net sales ​ ​ 4 ​ ​ 4 ​ ​ ​ ​ 6 ​ ​ 8 ​ -25 ​ Construction & forestry net sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial services revenues ​ ​ 87 ​ 62 ​ +40 ​ ​ 133 ​ 112 ​ +19 ​ ​ Operating profit is income from continuing operations before reconciling items 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 expense, certain foreign exchange gains and losses, pension and OPEB benefit costs excluding the service cost component, and net income attributable to noncontrolling interests. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 October 31 ​ May 2 ​ ​ 2022 ​ 2021 ​ 2021 Identifiable assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production & precision ag $ 8,680 ​ $ 7,021 ​ $ 6,602 ​ Small ag & turf ​ ​ 4,431 ​ ​ 3,959 ​ ​ 3,605 ​ Construction & forestry ​ ​ 6,984 ​ 6,457 ​ 6,500 ​ Financial services ​ ​ 53,110 ​ 51,624 ​ 50,849 ​ Corporate ​ ​ 10,894 ​ 15,053 ​ 11,423 ​ Total assets $ 84,099 ​ $ 84,114 ​ $ 78,979 ​ ​ |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 6 Months Ended |
May 01, 2022 | |
FINANCING RECEIVABLES | |
FINANCING RECEIVABLES | (8)   Financing Receivables The Company monitors 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. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1, 2022 ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ 2019 ​ 2018 ​ Prior Years ​ Revolving Charge Accounts ​ Total ​ Retail customer receivables: ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 5,540 ​ $ 10,141 ​ $ 5,318 ​ $ 2,684 ​ $ 1,286 ​ $ 723 ​ $ 3,381 ​ $ 29,073 ​ 30-59 days past due ​ ​ 20 ​ ​ 75 ​ ​ 36 ​ ​ 20 ​ ​ 9 ​ ​ 5 ​ ​ 12 ​ ​ 177 ​ 60-89 days past due ​ ​ 4 ​ ​ 29 ​ ​ 14 ​ ​ 9 ​ ​ 5 ​ ​ 2 ​ ​ 4 ​ ​ 67 ​ 90+ days past due ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ Non-performing ​ ​ 3 ​ ​ 40 ​ ​ 44 ​ ​ 41 ​ ​ 25 ​ ​ 31 ​ ​ 14 ​ ​ 198 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 1,506 ​ ​ 2,404 ​ ​ 1,211 ​ ​ 577 ​ ​ 234 ​ ​ 105 ​ ​ 91 ​ ​ 6,128 ​ 30-59 days past due ​ ​ 20 ​ ​ 52 ​ ​ 33 ​ ​ 17 ​ ​ 6 ​ ​ 2 ​ ​ 3 ​ ​ 133 ​ 60-89 days past due ​ ​ 7 ​ ​ 25 ​ ​ 15 ​ ​ 6 ​ ​ 1 ​ ​ 1 ​ ​ 1 ​ ​ 56 ​ 90+ days past due ​ ​ ​ ​ ​ 1 ​ ​ 1 ​ ​ 1 ​ ​ 1 ​ ​ 5 ​ ​ ​ ​ ​ 9 ​ Non-performing ​ ​ 3 ​ ​ 46 ​ ​ 50 ​ ​ 29 ​ ​ 12 ​ ​ 5 ​ ​ 1 ​ ​ 146 ​ Total retail customer receivables ​ $ 7,103 ​ $ 12,813 ​ $ 6,723 ​ $ 3,384 ​ $ 1,579 ​ $ 879 ​ $ 3,507 ​ $ 35,988 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 31, 2021 ​ ​ ​ 2021 ​ 2020 ​ 2019 ​ 2018 ​ 2017 ​ Prior ​ Revolving Charge Accounts ​ Total ​ Retail customer receivables: ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 12,877 ​ $ 6,676 ​ $ 3,463 ​ $ 1,738 ​ $ 728 ​ $ 211 ​ $ 3,704 ​ $ 29,397 ​ 30-59 days past due ​ ​ 43 ​ ​ 53 ​ ​ 29 ​ ​ 16 ​ ​ 7 ​ ​ 3 ​ ​ 14 ​ ​ 165 ​ 60-89 days past due ​ ​ 16 ​ ​ 23 ​ ​ 12 ​ ​ 6 ​ ​ 3 ​ ​ 1 ​ ​ 4 ​ ​ 65 ​ 90+ days past due ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ Non-performing ​ ​ 23 ​ ​ 57 ​ ​ 53 ​ ​ 32 ​ ​ 17 ​ ​ 23 ​ ​ 7 ​ ​ 212 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 3,122 ​ ​ 1,575 ​ ​ 754 ​ ​ 273 ​ ​ 57 ​ ​ 7 ​ ​ 92 ​ ​ 5,880 ​ 30-59 days past due ​ ​ 50 ​ ​ 40 ​ ​ 27 ​ ​ 7 ​ ​ 4 ​ ​ 1 ​ ​ 3 ​ ​ 132 ​ 60-89 days past due ​ ​ 15 ​ ​ 11 ​ ​ 9 ​ ​ 6 ​ ​ 1 ​ ​ ​ ​ ​ 1 ​ ​ 43 ​ 90+ days past due ​ ​ 1 ​ ​ 2 ​ ​ 3 ​ ​ 3 ​ ​ 4 ​ ​ 2 ​ ​ ​ ​ ​ 15 ​ Non-performing ​ ​ 26 ​ ​ 56 ​ ​ 39 ​ ​ 17 ​ ​ 7 ​ ​ 3 ​ ​ ​ ​ ​ 148 ​ Total retail customer receivables ​ $ 16,173 ​ $ 8,494 ​ $ 4,389 ​ $ 2,098 ​ $ 828 ​ $ 251 ​ $ 3,825 ​ $ 36,058 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 2, 2021 ​ ​ ​ 2021 ​ 2020 ​ 2019 ​ 2018 ​ 2017 ​ Prior ​ Revolving Charge Accounts ​ Total ​ Retail customer receivables: ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 6,017 ​ $ 8,375 ​ $ 4,436 ​ $ 2,402 ​ $ 1,136 ​ $ 494 ​ $ 3,221 ​ $ 26,081 ​ 30-59 days past due ​ ​ 20 ​ ​ 64 ​ ​ 41 ​ ​ 19 ​ ​ 10 ​ ​ 5 ​ ​ 20 ​ ​ 179 ​ 60-89 days past due ​ ​ 5 ​ ​ 34 ​ ​ 18 ​ ​ 9 ​ ​ 4 ​ ​ 2 ​ ​ 5 ​ ​ 77 ​ 90+ days past due ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2 ​ Non-performing ​ ​ 2 ​ ​ 51 ​ ​ 69 ​ ​ 54 ​ ​ 29 ​ ​ 33 ​ ​ 16 ​ ​ 254 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 1,568 ​ ​ 2,077 ​ ​ 1,106 ​ ​ 454 ​ ​ 118 ​ ​ 22 ​ ​ 81 ​ ​ 5,426 ​ 30-59 days past due ​ ​ 21 ​ ​ 43 ​ ​ 35 ​ ​ 14 ​ ​ 5 ​ ​ 1 ​ ​ 3 ​ ​ 122 ​ 60-89 days past due ​ ​ 6 ​ ​ 13 ​ ​ 12 ​ ​ 7 ​ ​ 3 ​ ​ 1 ​ ​ 1 ​ ​ 43 ​ 90+ days past due ​ ​ ​ ​ ​ 2 ​ ​ 10 ​ ​ 5 ​ ​ 6 ​ ​ 3 ​ ​ ​ ​ ​ 26 ​ Non-performing ​ ​ 1 ​ ​ 38 ​ ​ 37 ​ ​ 22 ​ ​ 11 ​ ​ 7 ​ ​ 1 ​ ​ 117 ​ Total retail customer receivables ​ $ 7,640 ​ $ 10,697 ​ $ 5,765 ​ $ 2,987 ​ $ 1,322 ​ $ 568 ​ $ 3,348 ​ $ 32,327 ​ ​ The credit quality analysis of wholesale receivables by year of origination was as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1, 2022 ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ 2019 ​ 2018 ​ Prior ​ Revolving ​ Total ​ Wholesale receivables: ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 224 ​ $ 155 ​ $ 43 ​ $ 8 ​ $ 1 ​ $ 2 ​ $ 1,605 ​ $ 2,038 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 5 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 5 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 6 ​ ​ 35 ​ ​ 4 ​ ​ 2 ​ ​ ​ ​ ​ 1 ​ ​ 268 ​ ​ 316 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ 1 ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total wholesale receivables ​ $ 230 ​ $ 190 ​ $ 47 ​ $ 15 ​ $ 1 ​ $ 4 ​ $ 1,873 ​ $ 2,360 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 31, 2021 ​ ​ ​ 2021 ​ 2020 ​ 2019 ​ 2018 ​ 2017 ​ Prior ​ Revolving ​ Total ​ Wholesale receivables: ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 346 ​ $ 80 ​ $ 22 ​ $ 9 ​ $ 3 ​ ​ ​ ​ $ 1,696 ​ $ 2,156 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ 12 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 12 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 41 ​ ​ 7 ​ ​ 7 ​ ​ ​ ​ ​ 1 ​ $ 1 ​ ​ 340 ​ ​ 397 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ 1 ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total wholesale receivables ​ $ 387 ​ $ 87 ​ $ 41 ​ $ 9 ​ $ 4 ​ $ 2 ​ $ 2,036 ​ $ 2,566 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 2, 2021 ​ ​ ​ 2021 ​ 2020 ​ 2019 ​ 2018 ​ 2017 ​ Prior ​ Revolving ​ Total ​ Wholesale receivables: ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 191 ​ $ 144 ​ $ 55 ​ $ 13 ​ $ 4 ​ $ 1 ​ $ 2,146 ​ $ 2,554 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ 22 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 22 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 5 ​ ​ 10 ​ ​ 15 ​ ​ 1 ​ ​ 1 ​ ​ 3 ​ ​ 341 ​ ​ 376 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total wholesale receivables ​ $ 196 ​ $ 154 ​ $ 92 ​ $ 14 ​ $ 5 ​ $ 4 ​ $ 2,487 ​ $ 2,952 ​ ​ ​ An analysis of the allowance for credit losses and investment in financing receivables in millions of dollars during the periods follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retail Notes ​ Revolving ​ ​ ​ ​ ​ ​ ​ ​ ​ & Financing ​ Charge ​ Wholesale ​ ​ ​ ​ ​ ​ Leases ​ Accounts ​ Receivables ​ Total ​ Three Months Ended May 1, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance: ​ ​ Beginning of period balance $ 138 $ 15 ​ $ 5 ​ $ 158 ​ Provision ​ ​ 39 ​ ​ 3 ​ ​ ​ ​ ​ 42 ​ Write-offs ​ ​ (18) ​ ​ (8) ​ ​ ​ ​ ​ (26) ​ Recoveries ​ ​ 5 ​ ​ 7 ​ ​ ​ ​ ​ 12 ​ Translation adjustments ​ ​ 4 ​ ​ ​ ​ ​ ​ ​ ​ 4 ​ End of period balance $ 168 $ 17 ​ $ 5 ​ $ 190 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended May 1, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning of period balance $ 138 $ 21 ​ $ 7 ​ $ 166 ​ Provision (credit) ​ ​ 52 ​ ​ (7) ​ ​ (2) ​ ​ 43 ​ Write-offs ​ ​ (35) ​ ​ (12) ​ ​ ​ ​ ​ (47) ​ Recoveries ​ ​ 9 ​ ​ 15 ​ ​ ​ ​ ​ 24 ​ Translation adjustments ​ ​ 4 ​ ​ ​ ​ ​ ​ ​ ​ 4 ​ End of period balance $ 168 $ 17 ​ $ 5 ​ $ 190 ​ Financing receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ End of period balance $ 32,481 $ 3,507 ​ $ 2,360 ​ $ 38,348 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retail Notes ​ Revolving ​ ​ ​ ​ ​ ​ ​ ​ & Financing ​ Charge ​ Wholesale ​ ​ ​ ​ ​ Leases ​ Accounts ​ Receivables ​ Total ​ Three Months Ended May 2, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance: ​ ​ ​ ​ ​ Beginning of period balance ​ $ 180 $ 24 ​ $ 7 ​ $ 211 ​ Provision (credit) ​ (17) ​ ​ (6) ​ ​ ​ ​ (23) ​ Write-offs ​ (15) ​ ​ (9) ​ ​ ​ ​ (24) ​ Recoveries ​ 4 ​ ​ 10 ​ ​ ​ ​ 14 ​ End of period balance ​ $ 152 ​ $ 19 ​ $ 7 ​ $ 178 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended May 2, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance: ​ ​ ​ Beginning of period balance ​ $ 133 $ 43 ​ $ 8 ​ $ 184 ​ ASU No. 2016-13 adoption ​ ​ 44 ​ ​ (13) ​ ​ ​ ​ ​ 31 ​ Provision (credit) ​ (13) ​ ​ (16) ​ ​ (1) ​ (30) ​ Write-offs ​ (23) ​ ​ (14) ​ ​ ​ ​ (37) ​ Recoveries ​ 10 ​ ​ 19 ​ ​ ​ ​ 29 ​ Translation adjustments ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ 1 ​ End of period balance ​ $ 152 ​ $ 19 ​ $ 7 ​ $ 178 ​ Financing receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ End of period balance ​ $ 28,979 $ 3,348 ​ $ 2,952 ​ $ 35,279 ​ ​ The allowance for credit losses increased in the second quarter and the first six months of 2022 mainly due to higher reserves related to the events in Russia / Ukraine and higher portfolio balances. A troubled debt restructuring is the modification of debt in which a creditor grants a concession it would not otherwise consider to a debtor that is experiencing financial difficulties. These modifications may include a reduction of the stated interest rate, an extension of the maturity date, a reduction of the face amount or maturity amount of the debt, or a reduction of accrued interest. During the first six months of 2022, the Company identified 184 receivable contracts, primarily retail notes, as troubled debt restructurings with aggregate balances of $8 million pre-modification and $7 million post-modification. During the first six months of 2021, the Company identified 199 receivable contracts, primarily retail notes, as troubled debt restructurings with aggregate balances of $8 million pre-modification and $7 million post-modification. During these same periods, there were no significant troubled debt restructurings that subsequently defaulted and were written off. At May 1, 2022, the Company had no commitments to lend to borrowers whose accounts were modified in troubled debt restructurings. |
SECURITIZATION OF FINANCING REC
SECURITIZATION OF FINANCING RECEIVABLES | 6 Months Ended |
May 01, 2022 | |
SECURITIZATION OF FINANCING RECEIVABLES | |
SECURITIZATION OF FINANCING RECEIVABLES | (9)   Securitization of Financing Receivables As a part of its overall funding strategy, the Company periodically transfers certain 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). The structure of these transactions is such that the transfer of the retail notes does not meet the accounting criteria for sales of receivables, and is, therefore, 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 are legally isolated. Use of the assets held by the SPEs or the non-VIEs is restricted by terms of the documents governing the securitization transactions. The components of consolidated restricted assets, secured borrowings, and other liabilities related to secured borrowings in securitization transactions were as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 October 31 May 2 ​ ​ 2022 ​ 2021 ​ 2021 Financing receivables securitized (retail notes) $ 4,085 ​ $ 4,673 ​ $ 4,122 ​ Allowance for credit losses ​ ​ (12) ​ (14) ​ (15) ​ Other assets (primarily restricted cash) ​ ​ 124 ​ 107 ​ 91 ​ Total restricted securitized assets $ 4,197 ​ $ 4,766 ​ $ 4,198 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term securitization borrowings ​ $ 4,006 ​ $ 4,605 ​ $ 4,106 ​ Accrued interest on borrowings ​ ​ 2 ​ ​ 2 ​ 3 ​ Total liabilities related to restricted securitized assets ​ $ 4,008 ​ $ 4,607 ​ $ 4,109 ​ ​ |
INVENTORIES
INVENTORIES | 6 Months Ended |
May 01, 2022 | |
INVENTORIES | |
INVENTORIES | (10)    Inventories Most inventories owned by Deere & Company and its U.S. equipment subsidiaries 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, estimated inventories by major classification in millions of dollars would have been as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 October 31 May 2 ​ ​ 2022 ​ 2021 ​ 2021 Raw materials and supplies $ 4,384 ​ $ 3,524 ​ $ 2,469 ​ Work-in-process ​ ​ 1,640 ​ 994 ​ 967 ​ Finished goods and parts ​ ​ 5,434 ​ 4,373 ​ 4,334 ​ Total FIFO value ​ ​ 11,458 ​ 8,891 ​ 7,770 ​ Less adjustment to LIFO value ​ ​ 2,428 ​ 2,110 ​ 1,728 ​ Inventories $ 9,030 ​ $ 6,781 ​ $ 6,042 ​ ​ |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS-NET | 6 Months Ended |
May 01, 2022 | |
GOODWILL AND OTHER INTANGIBLE ASSETS-NET | |
GOODWILL AND OTHER INTANGIBLE ASSETS-NET | (11)    Goodwill and Other Intangible Assets – Net The changes in amounts of goodwill by operating segments were as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production & Small Ag Construction ​ ​ ​ ​ Precision Ag ​ & Turf ​ & Forestry ​ Total Goodwill at November 1, 2020 ​ $ 333 ​ $ 268 ​ $ 2,480 ​ $ 3,081 ​ Acquisition ​ 12 ​ ​ ​ ​ ​ ​ ​ ​ 12 ​ Translation adjustments ​ 10 ​ ​ (2) ​ ​ 89 ​ ​ 97 ​ Goodwill at May 2, 2021 ​ $ 355 ​ $ 266 ​ $ 2,569 ​ $ 3,190 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill at October 31, 2021 ​ $ 542 ​ $ 265 ​ $ 2,484 ​ $ 3,291 ​ Acquisitions ​ ​ 122 ​ ​ 69 ​ ​ 600 ​ ​ 791 ​ Translation adjustments ​ ​ (11) ​ ​ (7) ​ ​ (252) ​ ​ (270) ​ Goodwill at May 1, 2022 ​ $ 653 ​ $ 327 ​ $ 2,832 ​ $ 3,812 ​ There were no accumulated goodwill impairment losses in the reported periods. The components of other intangible assets were as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 October 31 May 2 ​ ​ 2022 ​ 2021 ​ 2021 Amortized intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer lists and relationships ​ $ 520 ​ $ 542 ​ $ 549 ​ Technology, patents, trademarks, and other ​ ​ 1,350 ​ 1,104 ​ 1,097 ​ Total at cost ​ ​ 1,870 ​ 1,646 ​ 1,646 ​ Less accumulated amortization: ​ ​ ​ ​ ​ ​ ​ ​ Customer lists and relationships ​ ​ 158 ​ ​ 151 ​ ​ 136 ​ Technology, patents, trademarks, and other ​ ​ 360 ​ ​ 343 ​ ​ 323 ​ Total accumulated amortization ​ ​ 518 ​ ​ 494 ​ ​ 459 ​ Amortized intangible assets, net ​ ​ 1,352 ​ ​ 1,152 ​ ​ 1,187 ​ Unamortized intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In-process research and development ​ ​ ​ ​ ​ 123 ​ ​ 123 ​ Other intangible assets – net ​ $ 1,352 ​ $ 1,275 ​ $ 1,310 ​ ​ 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 second quarter and the first six months of 2022 was $34 million and $62 million, and for 2021 was $27 million and $62 million, respectively. The estimated amortization expense for the next five years is as follows in millions of dollars: remainder of 2022 – $107, 2023 – $167, 2024 – $163, 2025 – $135, 2026 – $116, and 2027 – $114. |
TOTAL SHORT-TERM BORROWINGS
TOTAL SHORT-TERM BORROWINGS | 6 Months Ended |
May 01, 2022 | |
TOTAL SHORT-TERM BORROWINGS | |
TOTAL SHORT-TERM BORROWINGS | (12) Total Short-Term Borrowings Total short-term borrowings were as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 ​ October 31 ​ May 2 ​ ​ 2022 2021 2021 ​ Equipment Operations ​ ​ ​ ​ ​ ​ ​ Notes payable to banks ​ $ 407 ​ $ 273 ​ $ 122 ​ Finance lease obligations due within one year ​ ​ 21 ​ ​ 23 ​ ​ 24 ​ Long-term borrowings due within one year ​ 1,126 ​ 1,213 ​ 206 ​ Total ​ 1,554 ​ 1,509 ​ 352 ​ Financial Services ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ 3,403 ​ 2,230 ​ 2,259 ​ Notes payable to banks ​ 148 ​ 63 ​ 89 ​ Long-term borrowings due within one year ​ 7,308 ​ 7,117 ​ 7,211 ​ Total ​ 10,859 ​ 9,410 ​ 9,559 ​ Short-term borrowings ​ 12,413 ​ 10,919 ​ 9,911 ​ Short-term securitization borrowings ​ ​ ​ ​ ​ ​ ​ Equipment Operations ​ ​ 5 ​ ​ 10 ​ ​ 14 ​ Financial Services ​ ​ 4,001 ​ ​ 4,595 ​ ​ 4,092 ​ Total ​ ​ 4,006 ​ ​ 4,605 ​ ​ 4,106 ​ Total short-term borrowings $ 16,419 $ 15,524 $ 14,017 ​ ​ |
LONG-TERM BORROWINGS
LONG-TERM BORROWINGS | 6 Months Ended |
May 01, 2022 | |
LONG-TERM BORROWINGS | |
LONG-TERM BORROWINGS | (13) Long-Term Borrowings Long-term borrowings were as follows in millions of dollars. The financial services medium-term notes include fair value adjustments related to interest rate swaps. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 ​ October 31 ​ May 2 ​ ​ 2022 2021 2021 ​ Equipment Operations ​ ​ ​ ​ ​ ​ ​ U.S. dollar notes and debentures: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2.60% notes due 2022 ​ ​ ​ ​ ​ ​ $ 1,000 ​ 2.75% notes due 2025 ​ $ 700 ​ $ 700 ​ ​ 700 ​ 6.55% debentures due 2028 ​ 200 ​ 200 ​ 200 ​ 5.375% notes due 2029 ​ 500 ​ 500 ​ 500 ​ 3.10% notes due 2030 ​ ​ 700 ​ ​ 700 ​ ​ 700 ​ 8.10% debentures due 2030 ​ 250 ​ 250 ​ 250 ​ 7.125% notes due 2031 ​ 300 ​ 300 ​ 300 ​ 3.90% notes due 2042 ​ 1,250 ​ 1,250 ​ 1,250 ​ 2.875% notes due 2049 ​ ​ 500 ​ ​ 500 ​ ​ 500 ​ 3.75% notes due 2050 ​ ​ 850 ​ ​ 850 ​ ​ 850 ​ Euro notes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ .5% notes due 2023 (€500 principal) ​ ​ 525 ​ ​ 584 ​ ​ 606 ​ 1.375% notes due 2024 (€800 principal) ​ ​ 840 ​ ​ 934 ​ ​ 969 ​ 1.85% notes due 2028 (€600 principal) ​ ​ 630 ​ ​ 701 ​ ​ 727 ​ 2.20% notes due 2032 (€600 principal) ​ ​ 630 ​ ​ 701 ​ ​ 727 ​ 1.65% notes due 2039 (€650 principal) ​ ​ 682 ​ ​ 759 ​ ​ 788 ​ Finance lease obligations and other notes ​ 50 ​ 40 ​ 115 ​ Less debt issuance costs and debt discounts ​ ​ (51) ​ ​ (54) ​ ​ (58) ​ Total ​ 8,556 ​ 8,915 ​ 10,124 ​ Financial Services ​ ​ ​ ​ ​ ​ ​ Notes and debentures: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Medium-term notes (principal as of: May 1, 2022 - $23,247, October 31, 2021 - $22,647, May 2, 2021 - $21,800) ​ 22,740 ​ ​ 22,899 ​ ​ 22,161 ​ Other notes ​ 1,216 ​ 1,138 ​ 1,121 ​ Less debt issuance costs and debt discounts ​ ​ (65) ​ ​ (64) ​ ​ (60) ​ Total ​ 23,891 ​ 23,973 ​ 23,222 ​ Long-term borrowings $ 32,447 ​ $ 32,888 ​ $ 33,346 ​ ​ In April 2022, the Company’s financial services operations issued $600 million of sustainability-linked medium-term notes with an initial interest rate of 3.35 percent, which are due in 2029. This transaction supports the Company’s commitment to environmental sustainability. Failure to meet the stated sustainability performance target will result in a 25-basis point increase to the interest rate payable on the 2029 notes from and including April 2026. |
LEASES - LESSOR
LEASES - LESSOR | 6 Months Ended |
May 01, 2022 | |
LEASES - LESSOR | |
LEASES - LESSOR | (14) Leases - Lessor The Company leases equipment manufactured or sold by the Company and a limited amount of non-John Deere equipment to retail customers through sales-type, direct financing, and operating leases. Sales-type and direct financing leases are reported in Financing receivables - net on the consolidated balance sheets, while operating leases are reported in Equipment on operating leases - net. Lease revenues earned by the Company were as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 ​ Sales-type and direct finance lease revenues ​ $ 35 ​ $ 34 ​ $ 74 ​ $ 70 ​ Operating lease revenues ​ ​ 330 ​ ​ 358 ​ ​ 665 ​ ​ 721 ​ Variable lease revenues ​ ​ 7 ​ ​ 6 ​ ​ 14 ​ ​ 12 ​ Total lease revenues ​ $ 372 ​ $ 398 ​ $ 753 ​ $ 803 ​ ​ |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
May 01, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | (15) Commitments and Contingencies The Company generally determines its total warranty liability by applying historical claims rate experience to the estimated amount of equipment that has been sold and is still under warranty based on dealer inventories and retail sales. The historical claims rate is primarily determined by a review of five-year claims costs and current quality developments. The premiums for extended warranties are primarily recognized in income in proportion to the costs expected to be incurred over the contract period. These unamortized extended warranty premiums (deferred revenue) included in the following table totaled $809 million and $681 million at May 1, 2022 and May 2, 2021, respectively. A reconciliation of the changes in the warranty liability and unearned premiums was as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ May 1 ​ May 2 ​ May 1 ​ May 2 ​ ​ 2022 ​ 2021 ​ 2022 ​ 2021 Beginning of period balance $ 2,064 $ 1,803 $ 2,086 $ 1,743 ​ Payments ​ ​ (224) ​ (202) ​ ​ (417) ​ (417) ​ Amortization of premiums received ​ ​ (64) ​ (65) ​ ​ (130) ​ (128) ​ Accruals for warranties ​ ​ 223 ​ 248 ​ ​ 404 ​ 495 ​ Premiums received ​ ​ 91 ​ 90 ​ ​ 174 ​ 163 ​ Foreign exchange ​ ​ 5 ​ 2 ​ ​ (22) ​ 20 ​ End of period balance ​ $ 2,095 ​ $ 1,876 ​ $ 2,095 ​ $ 1,876 ​ ​ At May 1, 2022, the Company had approximately $352 million of guarantees issued primarily to banks outside the U.S. and Canada related to third-party receivables for the retail financing of John Deere equipment. The Company may recover a portion of any required payments incurred under these agreements from repossession of the equipment collateralizing the receivables. At May 1, 2022, the Company had accrued losses of $4 million under these agreements. The maximum remaining term of the receivables guaranteed at May 1, 2022 was approximately six years. At May 1, 2022, the Company had commitments of $392 million for the construction and acquisition of property and equipment. Also, at May 1, 2022, the Company had restricted assets of $69 million, classified as Other assets. See Note 9 for additional restricted assets associated with borrowings related to securitizations. The Company also had other miscellaneous contingent liabilities totaling approximately $75 million at May 1, 2022. The accrued liability for these contingencies was not material at May 1, 2022. The Company is 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, and trademark matters. The Company believes the reasonably possible range of losses for these unresolved legal actions would not have a material effect on its consolidated financial statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
May 01, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | (16)    Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To determine fair value, the Company uses various methods including market and income approaches. The Company utilizes valuation models and techniques that maximize the use of observable inputs. The models are industry-standard models that consider various assumptions including time values and yield curves as well as other economic measures. These valuation techniques are consistently applied. Level 1 measurements consist of quoted prices in active markets for identical assets or liabilities. Level 2 measurements include significant other observable inputs such as quoted prices for similar assets or liabilities in active markets; identical assets or liabilities in inactive markets; observable inputs such as interest rates and yield curves; and other market-corroborated inputs. Level 3 measurements include significant unobservable inputs. The fair values of financial instruments that do not approximate the carrying values were as follows in millions of dollars. Long-term borrowings exclude finance lease liabilities. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1, 2022 ​ October 31, 2021 ​ May 2, 2021 ​ ​ Carrying ​ Fair ​ Carrying ​ Fair ​ Carrying ​ Fair Financing receivables – net ​ $ 34,085 ​ $ 33,540 ​ $ 33,799 ​ $ 33,718 ​ $ 30,994 ​ $ 31,165 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financing receivables securitized – net ​ $ 4,073 ​ $ 4,016 ​ $ 4,659 ​ $ 4,704 ​ $ 4,107 ​ $ 4,188 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term securitization borrowings: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equipment operations ​ $ 5 ​ $ 6 ​ $ 10 ​ $ 10 ​ $ 14 ​ $ 15 ​ Financial services ​ ​ 4,001 ​ ​ 3,938 ​ ​ 4,595 ​ ​ 4,600 ​ ​ 4,092 ​ ​ 4,117 ​ Total ​ $ 4,006 ​ $ 3,944 ​ $ 4,605 ​ $ 4,610 ​ $ 4,106 ​ $ 4,132 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term borrowings due within one year: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equipment operations ​ $ 1,126 ​ $ 1,128 ​ $ 1,213 $ 1,222 ​ $ 206 ​ $ 211 ​ Financial services ​ ​ 7,308 ​ ​ 7,270 ​ 7,117 ​ 7,142 ​ 7,211 ​ ​ 7,293 ​ Total ​ $ 8,434 ​ $ 8,398 ​ $ 8,330 ​ $ 8,364 ​ $ 7,417 ​ $ 7,504 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term borrowings: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equipment operations ​ $ 8,519 ​ $ 8,546 ​ $ 8,877 $ 10,244 ​ $ 10,079 ​ $ 11,391 ​ Financial services ​ ​ 23,891 ​ ​ 23,429 ​ 23,973 ​ 24,262 ​ 23,222 ​ ​ 23,701 ​ Total ​ $ 32,410 ​ $ 31,975 ​ $ 32,850 ​ $ 34,506 ​ $ 33,301 ​ $ 35,092 ​ Fair value measurements above were Level 3 for all financing receivables, Level 3 for equipment operations short-term securitization borrowings, and Level 2 for all other 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 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 cash equivalents, which were carried at cost that approximates fair value and consisted primarily of money market funds and time deposits. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 October 31 May 2 ​ ​ 2022 ​ 2021 ​ 2021 Level 1: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Marketable securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ International equity securities ​ $ 2 ​ $ 2 ​ $ 2 ​ U.S. equity fund ​ ​ 65 ​ ​ 75 ​ ​ 71 ​ U.S. government debt securities ​ ​ 59 ​ 59 ​ 59 ​ Total Level 1 marketable securities ​ ​ 126 ​ ​ 136 ​ ​ 132 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 2: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Marketable securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government debt securities ​ ​ 130 ​ ​ 139 ​ ​ 121 ​ Municipal debt securities ​ ​ 67 ​ 73 ​ 69 ​ Corporate debt securities ​ ​ 206 ​ 224 ​ 202 ​ International debt securities ​ ​ 2 ​ ​ 2 ​ ​ 4 ​ Mortgage-backed securities ​ ​ 151 ​ 154 ​ 140 ​ Total Level 2 marketable securities ​ ​ 556 ​ 592 ​ 536 ​ Other assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives ​ ​ 407 ​ ​ 275 ​ ​ 402 ​ Accounts payable and accrued expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives ​ ​ 780 ​ ​ 228 ​ ​ 223 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 3: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable and accrued expenses – Deferred consideration ​ ​ 262 ​ ​ ​ ​ ​ ​ ​ ​ The contractual maturities of debt securities at May 1, 2022 in millions of dollars are shown below. Actual maturities may differ from contractual maturities because some securities may be called or prepaid. Because of the potential for prepayment on mortgage-backed securities, they are not categorized by contractual maturity. Mortgage-backed securities were primarily issued by U.S. government sponsored enterprises. Unrealized losses of debt securities at May 1, 2022 were not recognized in income due to the ability and intent to hold to maturity. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ Fair ​ ​ ​ Cost ​ Value ​ Due in one year or less $ 27 ​ $ 27 ​ Due after one through five years ​ ​ 92 ​ ​ 90 ​ Due after five through 10 years ​ ​ 171 ​ ​ 155 ​ Due after 10 years ​ ​ 221 ​ ​ 192 ​ Mortgage-backed securities ​ ​ 167 ​ ​ 151 ​ Debt securities $ 678 $ 615 ​ ​ 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. Property and equipment – net and Other assets fair value for October 31, 2021 represents the fair value assessment at January 31, 2021. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ Losses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ ​ May 1 ​ October 31 ​ May 2 ​ May 1 ​ May 2 ​ May 1 ​ May 2 ​ ​ 2022 2021 2021 2022 2021 2022 2021 Inventories ​ $ 19 ​ ​ ​ ​ ​ ​ ​ $ 8 ​ ​ ​ ​ $ 8 ​ ​ ​ ​ Property and equipment – net ​ $ 15 ​ $ 41 ​ ​ ​ ​ $ 41 ​ ​ ​ ​ $ 41 ​ $ 44 ​ Other intangible assets – net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 28 ​ ​ ​ ​ $ 28 ​ ​ ​ ​ Other assets ​ ​ ​ ​ $ 1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 6 ​ ​ The following is a description of the valuation methodologies the Company uses to measure certain balance sheet items at fair value: Marketable securities – Derivatives – 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). Inputs include a selection of realizable values. Inventories – The service parts inventory impairment was based on net realizable value, less reasonably predictable selling and disposal costs. 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. Other intangible assets – net – The Company considered external valuations based on the Company’s probability weighted cash flow analysis. Other assets – The impairments were measured at the fair value of the right of use operating lease asset. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
May 01, 2022 | |
DERIVATIVE INSTRUMENTS | |
DERIVATIVE INSTRUMENTS | (17)    Derivative Instruments It is the Company’s policy that derivative transactions are executed only to manage exposures arising in the normal course of business and not for the purpose of creating speculative positions or trading. The Company’s financial services operations manage the relationship of the types and 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 exposures at certain equipment operations units for sales incentive programs. All derivatives are recorded at fair value on the balance sheet. Cash collateral received or paid is not offset against the derivative fair values on the balance sheet. The cash flows from these contracts were 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 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 May 1, 2022, October 31, 2021, and May 2, 2021 were $2,450 million, $2,700 million, and $1,850 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 affected earnings. These amounts offset the effects of interest rate changes on the related borrowings. The amount of gain recorded in OCI at May 1, 2022 that is expected to be reclassified to interest expense in the next twelve months if interest rates remain unchanged is approximately $23 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 May 1, 2022, October 31, 2021, and May 2, 2021 were $8,655 million, $8,043 million, and $8,340 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cumulative Increase (Decrease) of Fair ​ ​ ​ ​ ​ Value Hedging Adjustments Included in ​ ​ ​ ​ ​ ​ the Carrying Amount ​ ​ ​ Carrying ​ Active ​ ​ ​ ​ ​ ​ Amount of ​ Hedging ​ Discontinued ​ ​ ​ ​ ​ ​ Hedged Item ​ Relationships ​ Relationships ​ Total May 1, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term borrowings due within one year $ 185 $ 1 $ 7 $ 8 ​ Long-term borrowings ​ ​ 7,933 ​ ​ (613) ​ ​ 106 ​ ​ (507) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 31, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term borrowings due within one year ​ $ 189 ​ $ 3 ​ $ (2) ​ $ 1 ​ Long-term borrowings ​ ​ 8,070 ​ ​ 29 ​ ​ 223 ​ ​ 252 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 2, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term borrowings due within one year ​ $ 163 ​ $ 1 ​ $ (1) ​ ​ ​ ​ Long-term borrowings ​ ​ 8,502 ​ ​ 190 ​ ​ 171 ​ $ 361 ​ Long-term borrowings due within one year are presented in short-term borrowings. 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, primarily for certain borrowings, purchases or sales of inventory, and sales incentive programs. The total notional amounts of these interest rate swaps at May 1, 2022, October 31, 2021, and May 2, 2021 were $9,912 million, $10,848 million, and $8,694 million, the foreign exchange contracts were $7,640 million, $7,584 million, and $6,239 million, and the cross-currency interest rate contracts were $264 million, $238 million, and $151 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 in the condensed consolidated balance sheets were as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 October 31 May 2 Other Assets ​ 2022 ​ 2021 ​ 2021 Designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts $ 63 ​ $ 166 ​ $ 301 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Not designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ ​ 180 ​ 73 ​ 67 ​ Foreign exchange contracts ​ ​ 125 ​ 31 ​ 30 ​ Cross-currency interest rate contracts ​ ​ 39 ​ 5 ​ 4 ​ Total not designated ​ ​ 344 ​ 109 ​ 101 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total derivative assets $ 407 ​ $ 275 ​ $ 402 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts Payable and Accrued Expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts $ 591 ​ $ 99 ​ $ 80 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Not designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ ​ 75 ​ ​ 33 ​ ​ 52 ​ Foreign exchange contracts ​ ​ 114 ​ 94 ​ 89 ​ Cross-currency interest rate contracts ​ ​ ​ ​ 2 ​ 2 ​ Total not designated ​ ​ 189 ​ 129 ​ 143 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total derivative liabilities $ 780 ​ $ 228 ​ $ 223 ​ ​ The classification and gains (losses) including accrued interest expense related to derivative instruments consisted of the following in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ May 1 ​ May 2 ​ May 1 ​ May 2 ​ ​ 2022 ​ 2021 ​ 2022 ​ 2021 Fair Value Hedges: ​ ​ ​ ​ Interest rate contracts - Interest expense $ (514) ​ $ (170) $ (656) ​ $ (225) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flow Hedges ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recognized in OCI ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts - OCI (pretax) ​ ​ 35 ​ ​ ​ ​ 50 ​ ​ ​ Reclassified from OCI ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts - Interest expense ​ ​ (1) ​ (4) ​ ​ (3) ​ (9) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Not Designated as Hedges: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts - Net sales ​ $ 31 ​ $ 5 ​ $ 44 ​ $ 5 ​ Interest rate contracts - Interest expense * ​ 61 ​ ​ ​ ​ 59 ​ ​ (4) ​ Foreign exchange contracts - Net sales ​ ​ (1) ​ ​ ​ ​ ​ (1) ​ ​ ​ ​ Foreign exchange contracts - Cost of sales ​ ​ (79) ​ (48) ​ ​ (80) ​ ​ (100) ​ Foreign exchange contracts - Other operating expenses * ​ ​ 26 ​ (78) ​ ​ 173 ​ (204) ​ Total not designated $ 38 ​ $ (121) $ 195 ​ $ (303) ​ *   ​ 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 May 1, 2022, October 31, 2021, and May 2, 2021, was $673 million, $135 million, and $136 million, respectively. In accordance with the limits established in these agreements, the Company posted $254 million of cash collateral at May 1, 2022. The Company posted no cash collateral in accordance with the limits established in those agreements at either October 31, 2021 or May 2, 2021. In addition, the Company paid $8 million of cash collateral that was outstanding at May 1, 2022, October 31, 2021, and May 2, 2021 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 was as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts ​ Netting ​ ​ ​ ​ ​ May 1, 2022 Recognized Arrangements Collateral Net Amount Assets $ 407 $ (110) ​ ​ $ 297 ​ Liabilities ​ ​ 780 ​ ​ (110) ​ $ (254) ​ ​ 416 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts ​ Netting ​ ​ ​ ​ ​ October 31, 2021 Recognized Arrangements Collateral Net Amount Assets ​ $ 275 $ (105) ​ ​ ​ $ 170 ​ Liabilities ​ ​ 228 ​ ​ (105) ​ $ (5) ​ ​ 118 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts Netting ​ ​ ​ May 2, 2021 ​ Recognized ​ Arrangements ​ Collateral ​ Net Amount Assets ​ $ 402 ​ $ (125) ​ $ (21) ​ $ 256 ​ Liabilities ​ 223 ​ (125) ​ ​ (1) ​ 97 ​ ​ |
STOCK OPTION AND RESTRICTED STO
STOCK OPTION AND RESTRICTED STOCK AWARDS | 6 Months Ended |
May 01, 2022 | |
STOCK OPTION AND RESTRICTED STOCK AWARDS | |
STOCK OPTION AND RESTRICTED STOCK AWARDS | (18)    Stock Option and Restricted Stock Awards In December 2021, the Company granted stock options to employees for the purchase of 197 thousand shares of common stock at an exercise price of $343.94 per share and a binomial lattice model fair value of $89.20 per share at the grant date. At May 1, 2022, options for 2.2 million shares were outstanding with a weighted-average exercise price of $152.99 per share. The Company also granted 160 thousand restricted stock units to employees and non-employee directors in the first six months of 2022, of which 123 thousand are subject to service based only conditions and 37 thousand are subject to performance/service based conditions. The weighted-average fair value of the service based only units at the grant date was $345.94 per unit based on the market price of a share of underlying common stock. The fair value of the performance/service based units at the grant date was $331.47 per unit based on the market price of a share of underlying common stock excluding dividends. At May 1, 2022, the Company was authorized to grant an additional 17.2 million shares under the equity incentive plan. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
May 01, 2022 | |
ACQUISITIONS | |
ACQUISITIONS | (19)    Acquisitions Kreisel Acquisition On February 7, 2022, the Company acquired majority ownership in Kreisel Electric Inc. (Kreisel), a pioneer in the development of immersion-cooled battery technology. The Austrian company manufactures high-density, high-durability electric battery modules and packs for high-performance and off-highway applications and has created a battery-buffered, high-powered charging infrastructure platform. The transaction includes a call option to purchase the remaining ownership interest in Kreisel in 2027. The minority interest holders also have a put option that would require the Company to purchase the holder’s ownership interest in 2027. The put and call options cannot be separated from the noncontrolling interest. Due to the redemption features, the minority interest is classified as redeemable noncontrolling interest in the Company’s consolidated balance sheets. The total cash purchase price was $276 million, consisting of $253 million for the acquired equity interests, $21 million to reduce the option price, and customary working capital adjustments, net of cash acquired. The preliminary fair values assigned to the assets and liabilities of the acquired entity in millions of dollars, which is based on information as of the acquisition date and available at May 1, 2022 follows: ​ ​ ​ ​ ​ ​ ​ ​ February 7 ​ ​ ​ 2022 ​ Trade accounts and notes receivable ​ $ 2 ​ Other receivables ​ ​ 11 ​ Inventories ​ ​ 11 ​ Property and equipment ​ ​ 11 ​ Goodwill ​ ​ 217 ​ Other intangible assets ​ ​ 178 ​ Other assets ​ ​ 6 ​ Total assets ​ $ 436 ​ ​ ​ ​ ​ ​ Accounts payable and accrued expenses ​ $ 28 ​ Deferred income taxes ​ ​ 36 ​ ​ ​ ​ ​ ​ Redeemable noncontrolling interest ​ $ 96 ​ ​ The identifiable intangible assets were related to technology, trade name, and customer relationships with a weighted average amortization period of 12 years. The goodwill is not deductible for income tax purposes. Kreisel will be allocated amongst the Company’s production and precision agriculture, small agriculture and turf, and construction and forestry segments. Acquisition of Excavator Factories On February 28, 2022, the Company acquired full ownership of three former Deere-Hitachi joint venture factories and began new license and supply agreements with Hitachi Construction Machinery (Hitachi). The two companies also ended their joint venture manufacturing and marketing agreements. The former joint venture factories will continue to manufacture Deere-branded construction excavators and forestry equipment. Through a new supply agreement with Hitachi, Deere will continue to offer a full portfolio of excavators. Deere’s marketing arrangement for Hitachi-branded construction excavators and mining equipment in the Americas has ended with Hitachi assuming distribution and support of these products. John Deere dealers may continue to support their existing field population of Hitachi-branded excavators. With the completion of this acquisition, the Company now has complete control over its excavator design, product, and feature updates, making it possible to more rapidly respond to customer requirements and integrate excavators with other construction products in the John Deere product portfolio. The Company can leverage technology developed for other product lines and production systems across the enterprise and extend those advanced solutions to Deere-designed excavators, strengthening the entire product portfolio. The total invested capital follows: ​ ​ ​ ​ ​ ​ ​ February 28 ​ ​ ​ 2022 ​ Cash consideration for factories ​ $ 205 ​ Cash consideration for license agreement ​ ​ 70 ​ Deferred consideration ​ ​ 271 ​ Total purchase price consideration ​ ​ 546 ​ Less: Cash obtained ​ ​ (187) ​ Less: Settlement of intercompany balances ​ ​ (113) ​ Net purchase price consideration ​ ​ 246 ​ Fair value of previously held equity investment ​ ​ 444 ​ Total invested capital ​ $ 690 ​ ​ The total purchase price consideration includes deferred consideration that will be paid as the Company purchases John Deere-branded excavators, components, and service parts from Hitachi under the new supply agreement with a duration that ranges from 5 after-tax Prior to the acquisition, the Company purchased John Deere and Hitachi-branded excavators, components, and parts from the Deere-Hitachi joint venture factories for sale to John Deere dealers. These purchases were included in Cost of sales, while the sale to John Deere dealers were included in Net sales. Cost of sales also included profit-sharing payments to Hitachi in accordance with the previous marketing agreements. Following the acquisition, Net sales will only include the sale of John Deere-branded excavators to John Deere dealers, while Cost of sales will reflect market pricing to purchase and manufacture excavators, as well as the related components and service parts. The preliminary fair values assigned to the assets and liabilities of the acquired factories in millions of dollars, which is based on information as of the acquisition date and available at May 1, 2022 follows: ​ ​ ​ ​ ​ ​ ​ February 28 ​ ​ ​ 2022 ​ Other receivables ​ $ 29 ​ Inventories ​ ​ 286 ​ Property and equipment ​ ​ 182 ​ Goodwill ​ ​ 534 ​ Other intangible assets ​ ​ 70 ​ Deferred income taxes ​ ​ 49 ​ Total assets ​ $ 1,150 ​ ​ ​ ​ ​ ​ Accounts payable and accrued expenses ​ $ 297 ​ Long-term borrowings ​ ​ 163 ​ Total liabilities ​ $ 460 ​ ​ The identifiable intangible assets were related to technology with a 10-year Other Acquisitions In the first six months of the year, the Company acquired AgriSync Inc., a technology service provider; an 80 percent stake in SureFire Ag Systems, Inc. and SureFire Electronics, LLC, which design and manufacture liquid fertilizer application and spray tendering systems; and a 40 percent equity method investment in GUSS Automation LLC, a pioneer in semi-autonomous orchard and vineyard sprayers. The combined cost of the acquisitions was $109 million, net of cash acquired of $3 million. The preliminary asset and liability fair values at the respective acquisition dates follow in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ May 1 ​ ​ ​ 2022 ​ Trade accounts and notes receivable ​ $ 7 ​ Inventories ​ ​ 8 ​ Property and equipment ​ ​ 4 ​ Goodwill ​ ​ 40 ​ Other intangible assets ​ ​ 20 ​ Other assets ​ ​ 50 ​ Total assets ​ $ 129 ​ ​ ​ ​ ​ ​ Accounts payable and accrued expenses ​ $ 6 ​ Deferred income taxes ​ ​ 5 ​ Total liabilities ​ $ 11 ​ ​ ​ ​ ​ ​ Redeemable noncontrolling interest ​ $ 9 ​ ​ The identifiable intangible assets related to trade name, technology, and customer relationships with a weighted average amortization period of 6 years. AgriSync will be allocated amongst the Company’s production and precision agriculture, small agriculture and turf, and construction and forestry segments, while SureFire will be allocated to the production and precision agriculture segment. GUSS Automation will be assigned to the small agriculture and turf segment. For all acquisitions, the goodwill was the result of future cash flows and related fair value exceeding the fair value of the identified assets and liabilities. The pro forma results of operations as if these acquisitions had occurred at the beginning of the current or comparative fiscal year would not differ significantly from the reported results. |
SPECIAL ITEMS
SPECIAL ITEMS | 6 Months Ended |
May 01, 2022 | |
SPECIAL ITEMS | |
SPECIAL ITEMS | (20)   S pecial Items ​ 2022 Special Items Impact of events in Russia / Ukraine The recent events in Russia / Ukraine have resulted in the Company suspending shipments of machines and service parts to Russia. The Company has equipment operations in Russia / Ukraine, and financial services operations in Russia. As of May 1, 2022, the Company's net exposure in Russia / Ukraine was approximately $454 million. Net sales from the Company’s Russian operations represented 2 percent of consolidated annual net sales from 2017 to 2021. The Ukraine operations were not material to the consolidated financial statements. The suspension of shipments to Russia will reduce forecasted revenue for the region, which makes it probable future cash flows will not cover the carrying value of certain assets. The accounting consequences during the second quarter of 2022 were impairments of most long-lived assets, an increase in reserves of certain financial assets, and an accrual for various contractual uncertainties. No significant reserves were established on trade receivables or complete goods inventory, as the Company continues to experience strong payment performance and requires prepayment of existing inventories. However, the situation is fluid, and the Company continues to closely monitor all financial and operational risks. A summary of the reserves and impairments recorded in the second quarter of 2022 follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended May 1, 2022 ​ ​ ​ PPA SAT CF FS Total ​ 2022 Expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inventory reserve – Cost of sales ​ $ 6 ​ ​ ​ ​ $ 2 ​ ​ ​ ​ $ 8 ​ Fixed asset impairment – Cost of sales ​ ​ 30 ​ ​ ​ ​ ​ 11 ​ ​ ​ ​ ​ 41 ​ Intangible asset impairment – Cost of sales ​ ​ ​ ​ ​ ​ ​ ​ 28 ​ ​ ​ ​ ​ 28 ​ Allowance for credit losses – Financing receivables – SA&G expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 26 ​ ​ 26 ​ Contingent liabilities – Other operating expenses ​ ​ 10 ​ $ 1 ​ ​ 6 ​ ​ ​ ​ ​ 17 ​ Total Russia/Ukraine events pretax expense ​ $ 46 ​ $ 1 ​ $ 47 ​ $ 26 ​ $ 120 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net tax impact ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (14) ​ Total Russia/Ukraine events after-tax expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 106 ​ ​ Gain on Previously Held Equity Investment On February 28, 2022, the Company acquired full ownership of three former Deere-Hitachi joint venture factories and began new license and supply agreements with Hitachi. The fair value of the previous equity investment resulted in a non-cash gain of $326 million (pretax and after-tax ; see Note 19). UAW Collective Bargaining Agreement On November 17, 2021, employees represented by the 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 includes 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 Company remeasured the U.S. hourly pension plan as of November 30, 2021 due to the new collective bargaining agreement. See Note 6 for more information on the U.S. hourly plan remeasurement. 2021 Special Items During the first quarter of 2021, the fixed assets in an asphalt plant factory in Germany were impaired by $38 million, pretax and after-tax . The Company also continued to assess its manufacturing locations, resulting in additional long-lived asset impairments of $12 million pretax. The impairments were the result of a decline in forecasted financial performance that indicated it was probable future cash flows would not cover the carrying amount of the net assets. These impairments were offset by a favorable indirect tax ruling in Brazil of $58 million pretax. See Note 16 for fair value measurement information. The following table summarizes the operating profit impact, in millions of dollars, of the special items recorded for the three months and six months ended May 1, 2022 and May 2, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months ​ Six Months ​ ​ ​ PPA SAT CF FS Total ​ PPA SAT CF FS Total ​ 2022 Expense (benefit): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain on remeasurement of equity investment – Other income (see Note 19) ​ ​ ​ ​ ​ ​ ​ $ (326) ​ ​ ​ ​ $ (326) ​ ​ ​ ​ ​ ​ ​ $ (326) ​ ​ ​ ​ $ (326) ​ Total Russia/Ukraine events pretax expense ​ $ 46 ​ $ 1 ​ ​ 47 ​ $ 26 ​ ​ 120 ​ $ 46 ​ $ 1 ​ ​ 47 ​ $ 26 ​ ​ 120 ​ UAW ratification bonus – Cost of sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 53 ​ ​ 9 ​ ​ 28 ​ ​ ​ ​ ​ 90 ​ Total expense (benefit) ​ $ 46 ​ $ 1 ​ $ (279) ​ $ 26 ​ $ (206) ​ $ 99 ​ $ 10 ​ $ (251) ​ $ 26 ​ $ (116) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 Expense (benefit): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-lived asset impairments – Cost of sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 5 ​ $ 3 ​ $ 42 ​ ​ ​ ​ $ 50 ​ Brazil indirect tax – Cost of sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (53) ​ ​ ​ ​ ​ (5) ​ ​ ​ ​ ​ (58) ​ Total expense (benefit) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ (48) ​ $ 3 ​ $ 37 ​ ​ ​ ​ $ (8) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Period over period change ​ $ 46 ​ $ 1 ​ $ (279) ​ $ 26 ​ $ (206) ​ $ 147 ​ $ 7 ​ $ (288) ​ $ 26 ​ $ (108) ​ ​ ​ |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING STANDARDS (Policies) | 6 Months Ended |
May 01, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING STANDARDS | |
Fiscal Period, Policy | The Company uses a 52/53 week fiscal year with quarters ending on the last Sunday in the reporting period. The second quarter ends for fiscal year 2022 and 2021 were May 1, 2022 and May 2, 2021, respectively. Both second quarters contained 13 weeks, while both year-to-date periods contained 26 weeks. Unless otherwise stated, references to particular years or quarters refer to the Company’s fiscal years generally ending in October and the associated periods in those fiscal years. |
Use of Estimates in Financial Statements | The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Actual results could differ from those estimates. |
Revenue Recognition | Prior to fiscal year 2022, certain goods were shipped to Canadian dealers on a consignment basis under which the risk and rewards of ownership were not transferred to the dealer at the time the goods were delivered. Accordingly, sales were not recorded until a retail customer purchased the goods. The dealer contract in Canada was changed for goods delivered after November 1, 2021, resulting in transfer of control and revenue recognition upon delivery. For certain goods delivered to Canadian dealers prior to November 1, 2021, the dealer consignment terms already in place remain in effect. |
Financing Receivables - Non-Performing, Policy | The Company monitors 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. |
Troubled Debt Restructuring, Policy | A troubled debt restructuring is the modification of debt in which a creditor grants a concession it would not otherwise consider to a debtor that is experiencing financial difficulties. These modifications may include a reduction of the stated interest rate, an extension of the maturity date, a reduction of the face amount or maturity amount of the debt, or a reduction of accrued interest. |
Inventory Valuation, Policy | Most inventories owned by Deere & Company and its U.S. equipment subsidiaries are valued at cost on the last-in, first-out (LIFO) basis. |
Product Warranties | The Company generally determines its total warranty liability by applying historical claims rate experience to the estimated amount of equipment that has been sold and is still under warranty based on dealer inventories and retail sales. The historical claims rate is primarily determined by a review of five-year claims costs and current quality developments. |
Extended Product Warranty, Policy | The premiums for extended warranties are primarily recognized in income in proportion to the costs expected to be incurred over the contract period. |
Fair Value of Financial Instruments, Policy | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To determine fair value, the Company uses various methods including market and income approaches. The Company utilizes valuation models and techniques that maximize the use of observable inputs. The models are industry-standard models that consider various assumptions including time values and yield curves as well as other economic measures. These valuation techniques are consistently applied. |
Derivative Financial Instruments | It is the Company’s policy that derivative transactions are executed only to manage exposures arising in the normal course of business and not for the purpose of creating speculative positions or trading. The Company’s financial services operations manage the relationship of the types and 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 exposures at certain equipment operations units for sales incentive programs. All derivatives are recorded at fair value on the balance sheet. Cash collateral received or paid is not offset against the derivative fair values on the balance sheet. The cash flows from these contracts were 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 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. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
May 01, 2022 | |
REVENUE RECOGNITION | |
Schedule of Revenue Recognition | The Company’s net sales and revenues by primary geographic market, major product line, and timing of revenue recognition in millions of dollars follow: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended May 1, 2022 ​ ​ Production & Precision Ag Small Ag & Turf Construction Financial Total ​ Primary geographic markets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 2,434 ​ $ 2,103 ​ $ 2,108 ​ $ 569 ​ $ 7,214 ​ Canada ​ ​ 309 ​ ​ 161 ​ ​ 355 ​ 149 ​ 974 ​ Western Europe ​ ​ 536 ​ ​ 658 ​ ​ 464 ​ 25 ​ 1,683 ​ Central Europe and CIS ​ ​ 404 ​ ​ 151 ​ ​ 146 ​ 11 ​ 712 ​ Latin America ​ ​ 1,126 ​ ​ 134 ​ ​ 333 ​ 73 ​ 1,666 ​ Asia, Africa, Australia, New Zealand, and Middle East ​ ​ 367 ​ ​ 399 ​ ​ 318 ​ ​ 37 ​ ​ 1,121 ​ Total ​ $ 5,176 ​ $ 3,606 ​ $ 3,724 ​ $ 864 ​ $ 13,370 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Major product lines: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production agriculture ​ $ 5,032 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 5,032 ​ Small agriculture ​ ​ ​ ​ $ 2,668 ​ ​ ​ ​ ​ ​ 2,668 ​ Turf ​ ​ ​ ​ ​ 817 ​ ​ ​ ​ ​ ​ 817 ​ Construction ​ ​ ​ ​ ​ ​ ​ $ 1,516 ​ ​ ​ 1,516 ​ Compact construction ​ ​ ​ ​ ​ ​ ​ ​ 427 ​ ​ ​ ​ ​ 427 ​ Roadbuilding ​ ​ ​ ​ ​ ​ ​ ​ 1,017 ​ ​ ​ 1,017 ​ Forestry ​ ​ ​ ​ ​ ​ ​ ​ 325 ​ ​ ​ 325 ​ Financial products ​ ​ 10 ​ ​ 9 ​ ​ 6 ​ $ 864 ​ 889 ​ Other ​ ​ 134 ​ ​ 112 ​ ​ 433 ​ ​ ​ 679 ​ Total ​ $ 5,176 ​ $ 3,606 ​ $ 3,724 ​ $ 864 ​ $ 13,370 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue recognized: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At a point in time ​ $ 5,144 ​ $ 3,593 ​ $ 3,707 ​ $ 26 ​ $ 12,470 ​ Over time ​ ​ 32 ​ ​ 13 ​ ​ 17 ​ ​ 838 ​ ​ 900 ​ Total ​ $ 5,176 ​ $ 3,606 ​ $ 3,724 ​ $ 864 ​ $ 13,370 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended May 1, 2022 ​ ​ ​ Production & Precision Ag Small Ag & Turf Construction Financial Total ​ Primary geographic markets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 4,042 ​ $ 3,541 ​ $ 3,368 ​ $ 1,142 ​ $ 12,093 ​ Canada ​ ​ 448 ​ ​ 283 ​ ​ 687 ​ 301 ​ 1,719 ​ Western Europe ​ ​ 1,003 ​ ​ 1,190 ​ ​ 822 ​ 51 ​ 3,066 ​ Central Europe and CIS ​ ​ 606 ​ ​ 277 ​ ​ 341 ​ 22 ​ 1,246 ​ Latin America ​ ​ 1,902 ​ ​ 238 ​ ​ 561 ​ 141 ​ 2,842 ​ Asia, Africa, Australia, New Zealand, and Middle East ​ ​ 608 ​ ​ 751 ​ ​ 537 ​ ​ 77 ​ ​ 1,973 ​ Total ​ $ 8,609 ​ $ 6,280 ​ $ 6,316 ​ $ 1,734 ​ $ 22,939 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Major product lines: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production agriculture ​ $ 8,315 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 8,315 ​ Small agriculture ​ ​ ​ ​ $ 4,600 ​ ​ ​ ​ ​ ​ 4,600 ​ Turf ​ ​ ​ ​ ​ 1,444 ​ ​ ​ ​ ​ ​ 1,444 ​ Construction ​ ​ ​ ​ ​ ​ ​ $ 2,691 ​ ​ ​ 2,691 ​ Compact construction ​ ​ ​ ​ ​ ​ ​ ​ 748 ​ ​ ​ ​ ​ 748 ​ Roadbuilding ​ ​ ​ ​ ​ ​ ​ ​ 1,709 ​ ​ ​ 1,709 ​ Forestry ​ ​ ​ ​ ​ ​ ​ ​ 630 ​ ​ ​ ​ 630 ​ Financial products ​ ​ 22 ​ ​ 20 ​ ​ 11 ​ $ 1,734 ​ 1,787 ​ Other ​ ​ 272 ​ ​ 216 ​ ​ 527 ​ ​ ​ 1,015 ​ Total ​ $ 8,609 ​ $ 6,280 ​ $ 6,316 ​ $ 1,734 ​ $ 22,939 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue recognized: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At a point in time ​ $ 8,540 ​ $ 6,247 ​ $ 6,277 ​ $ 50 ​ $ 21,114 ​ Over time ​ ​ 69 ​ ​ 33 ​ ​ 39 ​ ​ 1,684 ​ ​ 1,825 ​ Total ​ $ 8,609 ​ $ 6,280 ​ $ 6,316 ​ $ 1,734 ​ $ 22,939 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended May 2, 2021 ​ ​ Production & Precision Ag Small Ag & Turf Construction Financial Total ​ Primary geographic markets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 2,211 ​ $ 1,838 ​ $ 1,481 ​ $ 608 ​ $ 6,138 ​ Canada ​ ​ 252 ​ ​ 144 ​ ​ 320 ​ 153 ​ 869 ​ Western Europe ​ ​ 589 ​ ​ 738 ​ ​ 514 ​ ​ 26 ​ 1,867 ​ Central Europe and CIS ​ ​ 531 ​ ​ 160 ​ ​ 209 ​ ​ 9 ​ 909 ​ Latin America ​ ​ 700 ​ ​ 103 ​ ​ 220 ​ ​ 60 ​ 1,083 ​ Asia, Africa, Australia, New Zealand, and Middle East ​ ​ 319 ​ ​ 444 ​ ​ 393 ​ ​ 36 ​ ​ 1,192 ​ Total ​ $ 4,602 ​ $ 3,427 ​ $ 3,137 ​ $ 892 ​ $ 12,058 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Major product lines: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production agriculture ​ $ 4,466 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 4,466 ​ Small agriculture ​ ​ ​ ​ $ 2,417 ​ ​ ​ ​ ​ ​ 2,417 ​ Turf ​ ​ ​ ​ ​ 898 ​ ​ ​ ​ ​ ​ 898 ​ Construction ​ ​ ​ ​ ​ ​ ​ $ 1,232 ​ ​ ​ 1,232 ​ Compact construction ​ ​ ​ ​ ​ ​ ​ ​ 396 ​ ​ ​ ​ ​ 396 ​ Roadbuilding ​ ​ ​ ​ ​ ​ ​ ​ 1,066 ​ ​ ​ 1,066 ​ Forestry ​ ​ ​ ​ ​ ​ ​ ​ 343 ​ ​ ​ 343 ​ Financial products ​ ​ 12 ​ ​ 10 ​ ​ 5 ​ $ 892 ​ 919 ​ Other ​ ​ 124 ​ ​ 102 ​ ​ 95 ​ ​ ​ 321 ​ Total ​ $ 4,602 ​ $ 3,427 ​ $ 3,137 ​ $ 892 ​ $ 12,058 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue recognized: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At a point in time ​ $ 4,562 ​ $ 3,412 ​ $ 3,114 ​ $ 26 ​ $ 11,114 ​ Over time ​ ​ 40 ​ ​ 15 ​ ​ 23 ​ ​ 866 ​ ​ 944 ​ Total ​ $ 4,602 ​ $ 3,427 ​ $ 3,137 ​ $ 892 ​ $ 12,058 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended May 2, 2021 ​ ​ Production & Precision Ag Small Ag & Turf Construction Financial Total ​ Primary geographic markets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 3,820 ​ $ 3,261 ​ $ 2,683 ​ $ 1,206 ​ $ 10,970 ​ Canada ​ ​ 364 ​ ​ 223 ​ ​ 508 ​ ​ 307 ​ 1,402 ​ Western Europe ​ ​ 1,038 ​ ​ 1,224 ​ ​ 953 ​ ​ 50 ​ 3,265 ​ Central Europe and CIS ​ ​ 692 ​ ​ 244 ​ ​ 387 ​ ​ 18 ​ 1,341 ​ Latin America ​ ​ 1,213 ​ ​ 180 ​ ​ 390 ​ ​ 119 ​ 1,902 ​ Asia, Africa, Australia, New Zealand, and Middle East ​ ​ 623 ​ ​ 845 ​ ​ 746 ​ ​ 76 ​ ​ 2,290 ​ Total ​ $ 7,750 ​ $ 5,977 ​ $ 5,667 ​ $ 1,776 ​ $ 21,170 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Major product lines: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production agriculture ​ $ 7,478 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 7,478 ​ Small agriculture ​ ​ ​ ​ $ 4,228 ​ ​ ​ ​ ​ ​ ​ 4,228 ​ Turf ​ ​ ​ ​ ​ 1,549 ​ ​ ​ ​ ​ ​ ​ 1,549 ​ Construction ​ ​ ​ ​ ​ ​ ​ $ 2,119 ​ ​ ​ ​ 2,119 ​ Compact construction ​ ​ ​ ​ ​ ​ ​ ​ 742 ​ ​ ​ ​ ​ 742 ​ Roadbuilding ​ ​ ​ ​ ​ ​ ​ ​ 1,976 ​ ​ ​ ​ 1,976 ​ Forestry ​ ​ ​ ​ ​ ​ ​ ​ 633 ​ ​ ​ ​ 633 ​ Financial products ​ ​ 28 ​ ​ 20 ​ ​ 12 ​ $ 1,776 ​ 1,836 ​ Other ​ ​ 244 ​ ​ 180 ​ ​ 185 ​ ​ ​ ​ 609 ​ Total ​ $ 7,750 ​ $ 5,977 ​ $ 5,667 ​ $ 1,776 ​ $ 21,170 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue recognized: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At a point in time ​ $ 7,668 ​ $ 5,946 ​ $ 5,614 ​ $ 50 ​ $ 19,278 ​ Over time ​ ​ 82 ​ ​ 31 ​ ​ 53 ​ ​ 1,726 ​ ​ 1,892 ​ Total ​ $ 7,750 ​ $ 5,977 ​ $ 5,667 ​ $ 1,776 ​ $ 21,170 ​ |
OTHER COMPREHENSIVE INCOME IT_2
OTHER COMPREHENSIVE INCOME ITEMS (Tables) | 6 Months Ended |
May 01, 2022 | |
OTHER COMPREHENSIVE INCOME ITEMS | |
Schedule of After-Tax Components of Accumulated Other Comprehensive Income (Loss) | The after-tax components of accumulated other comprehensive income (loss) in millions of dollars follow: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 ​ October 31 ​ May 2 ​ ​ ​ 2022 ​ 2021 ​ 2021 ​ Retirement benefits adjustment ​ $ (1,250) ​ $ (1,034) ​ $ (3,764) ​ Cumulative translation adjustment ​ ​ (1,993) ​ ​ (1,478) ​ ​ (1,163) ​ Unrealized loss on derivatives ​ ​ ​ ​ ​ (42) ​ ​ (51) ​ Unrealized gain (loss) on debt securities ​ ​ (48) ​ ​ 15 ​ ​ 18 ​ Total accumulated other comprehensive income (loss) ​ $ (3,291) ​ $ (2,539) ​ $ (4,960) ​ |
Schedule of Amounts Recorded in and Reclassifications out of Other Comprehensive Income (Loss) and the Income Tax Effects | Following are amounts recorded in and 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 ​ ​ Tax ​ (Expense) ​ Tax Three Months Ended May 1, 2022 ​ Amount ​ Credit ​ Amount Cumulative translation adjustment ​ $ (243) ​ $ (5) ​ $ (248) ​ Unrealized gain (loss) on derivatives: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized hedging gain (loss) ​ ​ 35 ​ ​ (7) ​ ​ 28 ​ Reclassification of realized (gain) loss to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts – Interest expense ​ ​ 1 ​ ​ (1) ​ ​ ​ ​ Net unrealized gain (loss) on derivatives ​ ​ 36 ​ ​ (8) ​ ​ 28 ​ Unrealized gain (loss) on debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gain (loss) ​ ​ (61) ​ ​ 13 ​ ​ (48) ​ Net unrealized gain (loss) on debt securities ​ ​ (61) ​ ​ 13 ​ ​ (48) ​ Retirement benefits adjustment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net actuarial gain (loss) ​ ​ 128 ​ ​ (30) ​ ​ 98 ​ Reclassification to Other operating expenses through amortization of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actuarial (gain) loss ​ ​ 27 ​ ​ (7) ​ ​ 20 ​ Prior service (credit) cost ​ ​ 8 ​ ​ (2) ​ ​ 6 ​ Settlements ​ ​ 7 ​ ​ (2) ​ ​ 5 ​ Net unrealized gain (loss) on retirement benefits adjustment ​ ​ 170 ​ ​ (41) ​ ​ 129 ​ Total other comprehensive income (loss) $ (98) ​ $ (41) ​ $ (139) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Before Tax After ​ ​ Tax ​ (Expense) ​ Tax Six Months Ended May 1, 2022 ​ Amount ​ Credit ​ Amount Cumulative translation adjustment $ (507) ​ $ (8) ​ $ (515) ​ Unrealized gain (loss) on derivatives: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized hedging gain (loss) ​ ​ 50 ​ ​ (10) ​ ​ 40 ​ Reclassification of realized (gain) loss to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts – Interest expense ​ ​ 3 ​ ​ (1) ​ ​ 2 ​ Net unrealized gain (loss) on derivatives ​ ​ 53 ​ ​ (11) ​ ​ 42 ​ Unrealized gain (loss) on debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gain (loss) ​ ​ (80) ​ ​ 17 ​ ​ (63) ​ Net unrealized gain (loss) on debt securities ​ ​ (80) ​ ​ 17 ​ ​ (63) ​ Retirement benefits adjustment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net actuarial gain (loss) ​ ​ (372) ​ ​ 90 ​ ​ (282) ​ Reclassification to Other operating expenses through amortization of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actuarial (gain) loss ​ ​ 67 ​ ​ (17) ​ ​ 50 ​ Prior service (credit) cost ​ ​ 14 ​ ​ (4) ​ ​ 10 ​ Settlements ​ ​ 8 ​ ​ (2) ​ ​ 6 ​ Net unrealized gain (loss) on retirement benefits adjustment ​ ​ (283) ​ ​ 67 ​ ​ (216) ​ Total other comprehensive income (loss) $ (817) ​ $ 65 ​ $ (752) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Before Tax After ​ ​ Tax ​ (Expense) ​ Tax Three Months Ended May 2, 2021 ​ Amount ​ Credit ​ Amount Cumulative translation adjustment $ 37 ​ ​ ​ ​ $ 37 ​ Unrealized gain (loss) on derivatives: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reclassification of realized (gain) loss to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts – Interest expense ​ ​ 4 ​ $ (1) ​ ​ 3 ​ Net unrealized gain (loss) on derivatives ​ ​ 4 ​ ​ (1) ​ ​ 3 ​ Unrealized gain (loss) on debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gain (loss) ​ ​ (14) ​ ​ 1 ​ ​ (13) ​ Net unrealized gain (loss) on debt securities ​ ​ (14) ​ ​ 1 ​ ​ (13) ​ Retirement benefits adjustment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net actuarial gain (loss) ​ ​ 41 ​ ​ (9) ​ ​ 32 ​ Reclassification to Other operating expenses through amortization of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actuarial (gain) loss ​ ​ 72 ​ ​ (19) ​ ​ 53 ​ Prior service (credit) cost ​ ​ 2 ​ ​ ​ ​ ​ 2 ​ Settlements ​ ​ 5 ​ ​ (1) ​ ​ 4 ​ Net unrealized gain (loss) on retirement benefits adjustment ​ ​ 120 ​ ​ (29) ​ ​ 91 ​ Total other comprehensive income (loss) $ 147 ​ $ (29) ​ $ 118 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Before Tax After ​ ​ Tax ​ (Expense) ​ Tax Six Months Ended May 2, 2021 ​ Amount ​ Credit ​ Amount Cumulative translation adjustment $ 431 $ 2 ​ $ 433 ​ Unrealized gain (loss) on derivatives: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reclassification of realized (gain) loss to: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts – Interest expense ​ ​ 9 ​ ​ (2) ​ ​ 7 ​ Net unrealized gain (loss) on derivatives ​ ​ 9 ​ ​ (2) ​ ​ 7 ​ Unrealized gain (loss) on debt securities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized holding gain (loss) ​ ​ (17) ​ ​ 2 ​ ​ (15) ​ Net unrealized gain (loss) on debt securities ​ ​ (17) ​ ​ 2 ​ ​ (15) ​ Retirement benefits adjustment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net actuarial gain (loss) ​ ​ 40 ​ ​ (9) ​ ​ 31 ​ Reclassification to Other operating expenses through amortization of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actuarial (gain) loss ​ ​ 142 ​ ​ (36) ​ ​ 106 ​ Prior service (credit) cost ​ ​ 4 ​ ​ (1) ​ ​ 3 ​ Settlements ​ ​ 18 ​ ​ (4) ​ ​ 14 ​ Net unrealized gain (loss) on retirement benefits adjustment ​ ​ 204 ​ ​ (50) ​ ​ 154 ​ Total other comprehensive income (loss) $ 627 ​ $ (48) ​ $ 579 ​ |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
May 01, 2022 | |
EARNINGS PER SHARE | |
Reconciliation of Basic and Diluted Net Income 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 ​ Six Months Ended ​ ​ May 1 ​ May 2 ​ May 1 ​ May 2 ​ ​ 2022 ​ 2021 ​ 2022 ​ 2021 Net income attributable to Deere & Company $ 2,098 $ 1,790 $ 3,001 $ 3,013 ​ Average shares outstanding ​ ​ 306.2 ​ 312.8 ​ ​ 306.8 ​ 313.1 ​ Basic per share ​ $ 6.85 ​ $ 5.72 ​ $ 9.78 ​ $ 9.62 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average shares outstanding ​ ​ 306.2 ​ 312.8 ​ ​ 306.8 ​ 313.1 ​ Effect of dilutive share-based compensation ​ ​ 1.9 ​ 2.4 ​ ​ 2.0 ​ 2.5 ​ Total potential shares outstanding ​ ​ 308.1 ​ 315.2 ​ ​ 308.8 ​ 315.6 ​ Diluted per share ​ $ 6.81 ​ $ 5.68 ​ $ 9.72 ​ $ 9.55 ​ |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 6 Months Ended |
May 01, 2022 | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | |
Schedule of Components of Net Periodic Pension and OPEB (Benefit) Cost | The components of net periodic pension cost consisted of the following in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ May 1 ​ May 2 ​ May 1 ​ May 2 ​ ​ 2022 ​ 2021 ​ 2022 ​ 2021 Service cost $ 94 $ 83 $ 179 $ 168 ​ Interest cost ​ ​ 80 ​ 69 ​ ​ 157 ​ 138 ​ Expected return on plan assets ​ ​ (180) ​ (200) ​ ​ (362) ​ (400) ​ Amortization of actuarial loss ​ ​ 37 ​ 65 ​ ​ 76 ​ 128 ​ Amortization of prior service cost ​ ​ 9 ​ 3 ​ ​ 16 ​ 6 ​ Settlements ​ ​ 7 ​ 5 ​ ​ 8 ​ 18 ​ Net cost ​ $ 47 ​ $ 25 ​ $ 74 ​ $ 58 ​ The components of net periodic OPEB (benefit) cost consisted of the following in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ May 1 ​ May 2 ​ May 1 ​ May 2 ​ ​ 2022 ​ 2021 ​ 2022 ​ 2021 Service cost $ 11 $ 12 $ 23 $ 24 ​ Interest cost ​ ​ 23 ​ 25 ​ ​ 49 ​ 51 ​ Expected return on plan assets ​ ​ (27) ​ (20) ​ ​ (55) ​ (39) ​ Amortization of actuarial (gain) loss ​ ​ (10) ​ 7 ​ ​ (9) ​ 14 ​ Amortization of prior service credit ​ ​ (1) ​ (1) ​ ​ (2) ​ (2) ​ Net (benefit) cost ​ $ (4) ​ $ 23 ​ $ 6 ​ $ 48 ​ |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
May 01, 2022 | |
SEGMENT REPORTING | |
Schedule of Segment Reporting Information | Worldwide net sales and revenues, operating profit, and identifiable assets by segment were as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ May 1 ​ May 2 ​ % ​ May 1 ​ May 2 ​ % ​ ​ 2022 ​ 2021 ​ Change ​ 2022 ​ 2021 ​ Change Net sales and revenues: ​ ​ ​ ​ ​ ​ Production & precision ag net sales $ 5,117 ​ $ 4,529 ​ +13 $ 8,473 ​ $ 7,599 ​ +12 ​ Small ag & turf net sales ​ ​ 3,570 ​ ​ 3,390 ​ +5 ​ ​ 6,201 ​ ​ 5,904 ​ +5 ​ Construction & forestry net sales ​ ​ 3,347 ​ 3,079 ​ +9 ​ ​ 5,891 ​ 5,546 ​ +6 ​ Financial services revenues ​ ​ 864 ​ 892 ​ -3 ​ ​ 1,734 ​ 1,776 ​ -2 ​ Other revenues ​ ​ 472 ​ 168 ​ +181 ​ ​ 640 ​ 345 ​ +86 ​ Total net sales and revenues $ 13,370 ​ $ 12,058 ​ +11 $ 22,939 ​ $ 21,170 ​ +8 ​ Operating profit: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production & precision ag $ 1,057 ​ $ 1,007 ​ +5 $ 1,353 ​ $ 1,651 ​ -18 ​ Small ag & turf ​ ​ 520 ​ ​ 648 ​ -20 ​ ​ 891 ​ ​ 1,117 ​ -20 ​ Construction & forestry ​ ​ 814 ​ 489 ​ +66 ​ ​ 1,085 ​ 756 ​ +44 ​ Financial services ​ ​ 279 ​ 295 ​ -5 ​ ​ 577 ​ 553 ​ +4 ​ Total operating profit ​ ​ 2,670 ​ 2,439 ​ +9 ​ ​ 3,906 ​ 4,077 ​ -4 ​ Reconciling items ​ ​ (111) ​ (119) ​ -7 ​ ​ (195) ​ (226) ​ -14 ​ Income taxes ​ ​ (461) ​ (530) ​ -13 ​ ​ (710) ​ (838) ​ -15 ​ Net income attributable to Deere & Company $ 2,098 ​ $ 1,790 ​ +17 $ 3,001 ​ $ 3,013 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intersegment sales and revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production & precision ag net sales $ 6 ​ $ 7 ​ -14 $ 10 ​ $ 13 ​ -23 ​ Small ag & turf net sales ​ ​ 4 ​ ​ 4 ​ ​ ​ ​ 6 ​ ​ 8 ​ -25 ​ Construction & forestry net sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial services revenues ​ ​ 87 ​ 62 ​ +40 ​ ​ 133 ​ 112 ​ +19 ​ ​ Operating profit is income from continuing operations before reconciling items 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 expense, certain foreign exchange gains and losses, pension and OPEB benefit costs excluding the service cost component, and net income attributable to noncontrolling interests. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 October 31 ​ May 2 ​ ​ 2022 ​ 2021 ​ 2021 Identifiable assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production & precision ag $ 8,680 ​ $ 7,021 ​ $ 6,602 ​ Small ag & turf ​ ​ 4,431 ​ ​ 3,959 ​ ​ 3,605 ​ Construction & forestry ​ ​ 6,984 ​ 6,457 ​ 6,500 ​ Financial services ​ ​ 53,110 ​ 51,624 ​ 50,849 ​ Corporate ​ ​ 10,894 ​ 15,053 ​ 11,423 ​ Total assets $ 84,099 ​ $ 84,114 ​ $ 78,979 ​ |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 6 Months Ended |
May 01, 2022 | |
Financing Receivables | |
Analysis of the Allowance for Credit Losses and Investment in Financing Receivables | An analysis of the allowance for credit losses and investment in financing receivables in millions of dollars during the periods follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retail Notes ​ Revolving ​ ​ ​ ​ ​ ​ ​ ​ ​ & Financing ​ Charge ​ Wholesale ​ ​ ​ ​ ​ ​ Leases ​ Accounts ​ Receivables ​ Total ​ Three Months Ended May 1, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance: ​ ​ Beginning of period balance $ 138 $ 15 ​ $ 5 ​ $ 158 ​ Provision ​ ​ 39 ​ ​ 3 ​ ​ ​ ​ ​ 42 ​ Write-offs ​ ​ (18) ​ ​ (8) ​ ​ ​ ​ ​ (26) ​ Recoveries ​ ​ 5 ​ ​ 7 ​ ​ ​ ​ ​ 12 ​ Translation adjustments ​ ​ 4 ​ ​ ​ ​ ​ ​ ​ ​ 4 ​ End of period balance $ 168 $ 17 ​ $ 5 ​ $ 190 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended May 1, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning of period balance $ 138 $ 21 ​ $ 7 ​ $ 166 ​ Provision (credit) ​ ​ 52 ​ ​ (7) ​ ​ (2) ​ ​ 43 ​ Write-offs ​ ​ (35) ​ ​ (12) ​ ​ ​ ​ ​ (47) ​ Recoveries ​ ​ 9 ​ ​ 15 ​ ​ ​ ​ ​ 24 ​ Translation adjustments ​ ​ 4 ​ ​ ​ ​ ​ ​ ​ ​ 4 ​ End of period balance $ 168 $ 17 ​ $ 5 ​ $ 190 ​ Financing receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ End of period balance $ 32,481 $ 3,507 ​ $ 2,360 ​ $ 38,348 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Retail Notes ​ Revolving ​ ​ ​ ​ ​ ​ ​ ​ & Financing ​ Charge ​ Wholesale ​ ​ ​ ​ ​ Leases ​ Accounts ​ Receivables ​ Total ​ Three Months Ended May 2, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance: ​ ​ ​ ​ ​ Beginning of period balance ​ $ 180 $ 24 ​ $ 7 ​ $ 211 ​ Provision (credit) ​ (17) ​ ​ (6) ​ ​ ​ ​ (23) ​ Write-offs ​ (15) ​ ​ (9) ​ ​ ​ ​ (24) ​ Recoveries ​ 4 ​ ​ 10 ​ ​ ​ ​ 14 ​ End of period balance ​ $ 152 ​ $ 19 ​ $ 7 ​ $ 178 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended May 2, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance: ​ ​ ​ Beginning of period balance ​ $ 133 $ 43 ​ $ 8 ​ $ 184 ​ ASU No. 2016-13 adoption ​ ​ 44 ​ ​ (13) ​ ​ ​ ​ ​ 31 ​ Provision (credit) ​ (13) ​ ​ (16) ​ ​ (1) ​ (30) ​ Write-offs ​ (23) ​ ​ (14) ​ ​ ​ ​ (37) ​ Recoveries ​ 10 ​ ​ 19 ​ ​ ​ ​ 29 ​ Translation adjustments ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ 1 ​ End of period balance ​ $ 152 ​ $ 19 ​ $ 7 ​ $ 178 ​ Financing receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ End of period balance ​ $ 28,979 $ 3,348 ​ $ 2,952 ​ $ 35,279 ​ |
Retail Customer Receivables | |
Financing Receivables | |
Credit Quality Analysis | 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1, 2022 ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ 2019 ​ 2018 ​ Prior Years ​ Revolving Charge Accounts ​ Total ​ Retail customer receivables: ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 5,540 ​ $ 10,141 ​ $ 5,318 ​ $ 2,684 ​ $ 1,286 ​ $ 723 ​ $ 3,381 ​ $ 29,073 ​ 30-59 days past due ​ ​ 20 ​ ​ 75 ​ ​ 36 ​ ​ 20 ​ ​ 9 ​ ​ 5 ​ ​ 12 ​ ​ 177 ​ 60-89 days past due ​ ​ 4 ​ ​ 29 ​ ​ 14 ​ ​ 9 ​ ​ 5 ​ ​ 2 ​ ​ 4 ​ ​ 67 ​ 90+ days past due ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ Non-performing ​ ​ 3 ​ ​ 40 ​ ​ 44 ​ ​ 41 ​ ​ 25 ​ ​ 31 ​ ​ 14 ​ ​ 198 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 1,506 ​ ​ 2,404 ​ ​ 1,211 ​ ​ 577 ​ ​ 234 ​ ​ 105 ​ ​ 91 ​ ​ 6,128 ​ 30-59 days past due ​ ​ 20 ​ ​ 52 ​ ​ 33 ​ ​ 17 ​ ​ 6 ​ ​ 2 ​ ​ 3 ​ ​ 133 ​ 60-89 days past due ​ ​ 7 ​ ​ 25 ​ ​ 15 ​ ​ 6 ​ ​ 1 ​ ​ 1 ​ ​ 1 ​ ​ 56 ​ 90+ days past due ​ ​ ​ ​ ​ 1 ​ ​ 1 ​ ​ 1 ​ ​ 1 ​ ​ 5 ​ ​ ​ ​ ​ 9 ​ Non-performing ​ ​ 3 ​ ​ 46 ​ ​ 50 ​ ​ 29 ​ ​ 12 ​ ​ 5 ​ ​ 1 ​ ​ 146 ​ Total retail customer receivables ​ $ 7,103 ​ $ 12,813 ​ $ 6,723 ​ $ 3,384 ​ $ 1,579 ​ $ 879 ​ $ 3,507 ​ $ 35,988 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 31, 2021 ​ ​ ​ 2021 ​ 2020 ​ 2019 ​ 2018 ​ 2017 ​ Prior ​ Revolving Charge Accounts ​ Total ​ Retail customer receivables: ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 12,877 ​ $ 6,676 ​ $ 3,463 ​ $ 1,738 ​ $ 728 ​ $ 211 ​ $ 3,704 ​ $ 29,397 ​ 30-59 days past due ​ ​ 43 ​ ​ 53 ​ ​ 29 ​ ​ 16 ​ ​ 7 ​ ​ 3 ​ ​ 14 ​ ​ 165 ​ 60-89 days past due ​ ​ 16 ​ ​ 23 ​ ​ 12 ​ ​ 6 ​ ​ 3 ​ ​ 1 ​ ​ 4 ​ ​ 65 ​ 90+ days past due ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ Non-performing ​ ​ 23 ​ ​ 57 ​ ​ 53 ​ ​ 32 ​ ​ 17 ​ ​ 23 ​ ​ 7 ​ ​ 212 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 3,122 ​ ​ 1,575 ​ ​ 754 ​ ​ 273 ​ ​ 57 ​ ​ 7 ​ ​ 92 ​ ​ 5,880 ​ 30-59 days past due ​ ​ 50 ​ ​ 40 ​ ​ 27 ​ ​ 7 ​ ​ 4 ​ ​ 1 ​ ​ 3 ​ ​ 132 ​ 60-89 days past due ​ ​ 15 ​ ​ 11 ​ ​ 9 ​ ​ 6 ​ ​ 1 ​ ​ ​ ​ ​ 1 ​ ​ 43 ​ 90+ days past due ​ ​ 1 ​ ​ 2 ​ ​ 3 ​ ​ 3 ​ ​ 4 ​ ​ 2 ​ ​ ​ ​ ​ 15 ​ Non-performing ​ ​ 26 ​ ​ 56 ​ ​ 39 ​ ​ 17 ​ ​ 7 ​ ​ 3 ​ ​ ​ ​ ​ 148 ​ Total retail customer receivables ​ $ 16,173 ​ $ 8,494 ​ $ 4,389 ​ $ 2,098 ​ $ 828 ​ $ 251 ​ $ 3,825 ​ $ 36,058 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 2, 2021 ​ ​ ​ 2021 ​ 2020 ​ 2019 ​ 2018 ​ 2017 ​ Prior ​ Revolving Charge Accounts ​ Total ​ Retail customer receivables: ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 6,017 ​ $ 8,375 ​ $ 4,436 ​ $ 2,402 ​ $ 1,136 ​ $ 494 ​ $ 3,221 ​ $ 26,081 ​ 30-59 days past due ​ ​ 20 ​ ​ 64 ​ ​ 41 ​ ​ 19 ​ ​ 10 ​ ​ 5 ​ ​ 20 ​ ​ 179 ​ 60-89 days past due ​ ​ 5 ​ ​ 34 ​ ​ 18 ​ ​ 9 ​ ​ 4 ​ ​ 2 ​ ​ 5 ​ ​ 77 ​ 90+ days past due ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ ​ 1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2 ​ Non-performing ​ ​ 2 ​ ​ 51 ​ ​ 69 ​ ​ 54 ​ ​ 29 ​ ​ 33 ​ ​ 16 ​ ​ 254 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 1,568 ​ ​ 2,077 ​ ​ 1,106 ​ ​ 454 ​ ​ 118 ​ ​ 22 ​ ​ 81 ​ ​ 5,426 ​ 30-59 days past due ​ ​ 21 ​ ​ 43 ​ ​ 35 ​ ​ 14 ​ ​ 5 ​ ​ 1 ​ ​ 3 ​ ​ 122 ​ 60-89 days past due ​ ​ 6 ​ ​ 13 ​ ​ 12 ​ ​ 7 ​ ​ 3 ​ ​ 1 ​ ​ 1 ​ ​ 43 ​ 90+ days past due ​ ​ ​ ​ ​ 2 ​ ​ 10 ​ ​ 5 ​ ​ 6 ​ ​ 3 ​ ​ ​ ​ ​ 26 ​ Non-performing ​ ​ 1 ​ ​ 38 ​ ​ 37 ​ ​ 22 ​ ​ 11 ​ ​ 7 ​ ​ 1 ​ ​ 117 ​ Total retail customer receivables ​ $ 7,640 ​ $ 10,697 ​ $ 5,765 ​ $ 2,987 ​ $ 1,322 ​ $ 568 ​ $ 3,348 ​ $ 32,327 ​ |
Wholesale Receivables | |
Financing Receivables | |
Credit Quality Analysis | The credit quality analysis of wholesale receivables by year of origination was as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1, 2022 ​ ​ ​ 2022 ​ 2021 ​ 2020 ​ 2019 ​ 2018 ​ Prior ​ Revolving ​ Total ​ Wholesale receivables: ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 224 ​ $ 155 ​ $ 43 ​ $ 8 ​ $ 1 ​ $ 2 ​ $ 1,605 ​ $ 2,038 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 5 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 5 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 6 ​ ​ 35 ​ ​ 4 ​ ​ 2 ​ ​ ​ ​ ​ 1 ​ ​ 268 ​ ​ 316 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ 1 ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total wholesale receivables ​ $ 230 ​ $ 190 ​ $ 47 ​ $ 15 ​ $ 1 ​ $ 4 ​ $ 1,873 ​ $ 2,360 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 31, 2021 ​ ​ ​ 2021 ​ 2020 ​ 2019 ​ 2018 ​ 2017 ​ Prior ​ Revolving ​ Total ​ Wholesale receivables: ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 346 ​ $ 80 ​ $ 22 ​ $ 9 ​ $ 3 ​ ​ ​ ​ $ 1,696 ​ $ 2,156 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ 12 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 12 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 41 ​ ​ 7 ​ ​ 7 ​ ​ ​ ​ ​ 1 ​ $ 1 ​ ​ 340 ​ ​ 397 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ 1 ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total wholesale receivables ​ $ 387 ​ $ 87 ​ $ 41 ​ $ 9 ​ $ 4 ​ $ 2 ​ $ 2,036 ​ $ 2,566 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 2, 2021 ​ ​ ​ 2021 ​ 2020 ​ 2019 ​ 2018 ​ 2017 ​ Prior ​ Revolving ​ Total ​ Wholesale receivables: ​ Agriculture and turf ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ $ 191 ​ $ 144 ​ $ 55 ​ $ 13 ​ $ 4 ​ $ 1 ​ $ 2,146 ​ $ 2,554 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ 22 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 22 ​ Construction and forestry ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ 5 ​ ​ 10 ​ ​ 15 ​ ​ 1 ​ ​ 1 ​ ​ 3 ​ ​ 341 ​ ​ 376 ​ 30+ days past due ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-performing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total wholesale receivables ​ $ 196 ​ $ 154 ​ $ 92 ​ $ 14 ​ $ 5 ​ $ 4 ​ $ 2,487 ​ $ 2,952 ​ |
SECURITIZATION OF FINANCING R_2
SECURITIZATION OF FINANCING RECEIVABLES (Tables) | 6 Months Ended |
May 01, 2022 | |
SECURITIZATION OF FINANCING RECEIVABLES | |
Components of Consolidated Restricted Assets, Secured Borrowings and Other Liabilities Related to Securitization Transactions | The components of consolidated restricted assets, secured borrowings, and other liabilities related to secured borrowings in securitization transactions were as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 October 31 May 2 ​ ​ 2022 ​ 2021 ​ 2021 Financing receivables securitized (retail notes) $ 4,085 ​ $ 4,673 ​ $ 4,122 ​ Allowance for credit losses ​ ​ (12) ​ (14) ​ (15) ​ Other assets (primarily restricted cash) ​ ​ 124 ​ 107 ​ 91 ​ Total restricted securitized assets $ 4,197 ​ $ 4,766 ​ $ 4,198 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term securitization borrowings ​ $ 4,006 ​ $ 4,605 ​ $ 4,106 ​ Accrued interest on borrowings ​ ​ 2 ​ ​ 2 ​ 3 ​ Total liabilities related to restricted securitized assets ​ $ 4,008 ​ $ 4,607 ​ $ 4,109 ​ |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
May 01, 2022 | |
INVENTORIES | |
Major Classification of Inventories | If all of the Company’s inventories had been valued on a first-in, first-out (FIFO) basis, estimated inventories by major classification in millions of dollars would have been as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 October 31 May 2 ​ ​ 2022 ​ 2021 ​ 2021 Raw materials and supplies $ 4,384 ​ $ 3,524 ​ $ 2,469 ​ Work-in-process ​ ​ 1,640 ​ 994 ​ 967 ​ Finished goods and parts ​ ​ 5,434 ​ 4,373 ​ 4,334 ​ Total FIFO value ​ ​ 11,458 ​ 8,891 ​ 7,770 ​ Less adjustment to LIFO value ​ ​ 2,428 ​ 2,110 ​ 1,728 ​ Inventories $ 9,030 ​ $ 6,781 ​ $ 6,042 ​ |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS-NET (Tables) | 6 Months Ended |
May 01, 2022 | |
GOODWILL AND OTHER INTANGIBLE ASSETS-NET | |
Changes in Goodwill by Operating Segments | The changes in amounts of goodwill by operating segments were as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production & Small Ag Construction ​ ​ ​ ​ Precision Ag ​ & Turf ​ & Forestry ​ Total Goodwill at November 1, 2020 ​ $ 333 ​ $ 268 ​ $ 2,480 ​ $ 3,081 ​ Acquisition ​ 12 ​ ​ ​ ​ ​ ​ ​ ​ 12 ​ Translation adjustments ​ 10 ​ ​ (2) ​ ​ 89 ​ ​ 97 ​ Goodwill at May 2, 2021 ​ $ 355 ​ $ 266 ​ $ 2,569 ​ $ 3,190 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill at October 31, 2021 ​ $ 542 ​ $ 265 ​ $ 2,484 ​ $ 3,291 ​ Acquisitions ​ ​ 122 ​ ​ 69 ​ ​ 600 ​ ​ 791 ​ Translation adjustments ​ ​ (11) ​ ​ (7) ​ ​ (252) ​ ​ (270) ​ Goodwill at May 1, 2022 ​ $ 653 ​ $ 327 ​ $ 2,832 ​ $ 3,812 ​ There were no accumulated goodwill impairment losses in the reported periods. |
Components of Other Intangible Assets | The components of other intangible assets were as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 October 31 May 2 ​ ​ 2022 ​ 2021 ​ 2021 Amortized intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer lists and relationships ​ $ 520 ​ $ 542 ​ $ 549 ​ Technology, patents, trademarks, and other ​ ​ 1,350 ​ 1,104 ​ 1,097 ​ Total at cost ​ ​ 1,870 ​ 1,646 ​ 1,646 ​ Less accumulated amortization: ​ ​ ​ ​ ​ ​ ​ ​ Customer lists and relationships ​ ​ 158 ​ ​ 151 ​ ​ 136 ​ Technology, patents, trademarks, and other ​ ​ 360 ​ ​ 343 ​ ​ 323 ​ Total accumulated amortization ​ ​ 518 ​ ​ 494 ​ ​ 459 ​ Amortized intangible assets, net ​ ​ 1,352 ​ ​ 1,152 ​ ​ 1,187 ​ Unamortized intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In-process research and development ​ ​ ​ ​ ​ 123 ​ ​ 123 ​ Other intangible assets – net ​ $ 1,352 ​ $ 1,275 ​ $ 1,310 ​ |
TOTAL SHORT-TERM BORROWINGS (Ta
TOTAL SHORT-TERM BORROWINGS (Tables) | 6 Months Ended |
May 01, 2022 | |
TOTAL SHORT-TERM BORROWINGS | |
Short-Term Borrowings | Total short-term borrowings were as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 ​ October 31 ​ May 2 ​ ​ 2022 2021 2021 ​ Equipment Operations ​ ​ ​ ​ ​ ​ ​ Notes payable to banks ​ $ 407 ​ $ 273 ​ $ 122 ​ Finance lease obligations due within one year ​ ​ 21 ​ ​ 23 ​ ​ 24 ​ Long-term borrowings due within one year ​ 1,126 ​ 1,213 ​ 206 ​ Total ​ 1,554 ​ 1,509 ​ 352 ​ Financial Services ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ 3,403 ​ 2,230 ​ 2,259 ​ Notes payable to banks ​ 148 ​ 63 ​ 89 ​ Long-term borrowings due within one year ​ 7,308 ​ 7,117 ​ 7,211 ​ Total ​ 10,859 ​ 9,410 ​ 9,559 ​ Short-term borrowings ​ 12,413 ​ 10,919 ​ 9,911 ​ Short-term securitization borrowings ​ ​ ​ ​ ​ ​ ​ Equipment Operations ​ ​ 5 ​ ​ 10 ​ ​ 14 ​ Financial Services ​ ​ 4,001 ​ ​ 4,595 ​ ​ 4,092 ​ Total ​ ​ 4,006 ​ ​ 4,605 ​ ​ 4,106 ​ Total short-term borrowings $ 16,419 $ 15,524 $ 14,017 ​ |
LONG-TERM BORROWINGS (Tables)
LONG-TERM BORROWINGS (Tables) | 6 Months Ended |
May 01, 2022 | |
LONG-TERM BORROWINGS | |
Long-Term Borrowings | Long-term borrowings were as follows in millions of dollars. The financial services medium-term notes include fair value adjustments related to interest rate swaps. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 ​ October 31 ​ May 2 ​ ​ 2022 2021 2021 ​ Equipment Operations ​ ​ ​ ​ ​ ​ ​ U.S. dollar notes and debentures: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2.60% notes due 2022 ​ ​ ​ ​ ​ ​ $ 1,000 ​ 2.75% notes due 2025 ​ $ 700 ​ $ 700 ​ ​ 700 ​ 6.55% debentures due 2028 ​ 200 ​ 200 ​ 200 ​ 5.375% notes due 2029 ​ 500 ​ 500 ​ 500 ​ 3.10% notes due 2030 ​ ​ 700 ​ ​ 700 ​ ​ 700 ​ 8.10% debentures due 2030 ​ 250 ​ 250 ​ 250 ​ 7.125% notes due 2031 ​ 300 ​ 300 ​ 300 ​ 3.90% notes due 2042 ​ 1,250 ​ 1,250 ​ 1,250 ​ 2.875% notes due 2049 ​ ​ 500 ​ ​ 500 ​ ​ 500 ​ 3.75% notes due 2050 ​ ​ 850 ​ ​ 850 ​ ​ 850 ​ Euro notes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ .5% notes due 2023 (€500 principal) ​ ​ 525 ​ ​ 584 ​ ​ 606 ​ 1.375% notes due 2024 (€800 principal) ​ ​ 840 ​ ​ 934 ​ ​ 969 ​ 1.85% notes due 2028 (€600 principal) ​ ​ 630 ​ ​ 701 ​ ​ 727 ​ 2.20% notes due 2032 (€600 principal) ​ ​ 630 ​ ​ 701 ​ ​ 727 ​ 1.65% notes due 2039 (€650 principal) ​ ​ 682 ​ ​ 759 ​ ​ 788 ​ Finance lease obligations and other notes ​ 50 ​ 40 ​ 115 ​ Less debt issuance costs and debt discounts ​ ​ (51) ​ ​ (54) ​ ​ (58) ​ Total ​ 8,556 ​ 8,915 ​ 10,124 ​ Financial Services ​ ​ ​ ​ ​ ​ ​ Notes and debentures: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Medium-term notes (principal as of: May 1, 2022 - $23,247, October 31, 2021 - $22,647, May 2, 2021 - $21,800) ​ 22,740 ​ ​ 22,899 ​ ​ 22,161 ​ Other notes ​ 1,216 ​ 1,138 ​ 1,121 ​ Less debt issuance costs and debt discounts ​ ​ (65) ​ ​ (64) ​ ​ (60) ​ Total ​ 23,891 ​ 23,973 ​ 23,222 ​ Long-term borrowings $ 32,447 ​ $ 32,888 ​ $ 33,346 ​ |
LEASES - LESSOR (Tables)
LEASES - LESSOR (Tables) | 6 Months Ended |
May 01, 2022 | |
LEASES - LESSOR | |
Schedule of Lease Revenues Earned | Lease revenues earned by the Company were as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ May 1, 2022 May 2, 2021 May 1, 2022 May 2, 2021 ​ Sales-type and direct finance lease revenues ​ $ 35 ​ $ 34 ​ $ 74 ​ $ 70 ​ Operating lease revenues ​ ​ 330 ​ ​ 358 ​ ​ 665 ​ ​ 721 ​ Variable lease revenues ​ ​ 7 ​ ​ 6 ​ ​ 14 ​ ​ 12 ​ Total lease revenues ​ $ 372 ​ $ 398 ​ $ 753 ​ $ 803 ​ |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
May 01, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
Reconciliation of the Changes in Warranty Liability and Unearned Premiums | A reconciliation of the changes in the warranty liability and unearned premiums was as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ May 1 ​ May 2 ​ May 1 ​ May 2 ​ ​ 2022 ​ 2021 ​ 2022 ​ 2021 Beginning of period balance $ 2,064 $ 1,803 $ 2,086 $ 1,743 ​ Payments ​ ​ (224) ​ (202) ​ ​ (417) ​ (417) ​ Amortization of premiums received ​ ​ (64) ​ (65) ​ ​ (130) ​ (128) ​ Accruals for warranties ​ ​ 223 ​ 248 ​ ​ 404 ​ 495 ​ Premiums received ​ ​ 91 ​ 90 ​ ​ 174 ​ 163 ​ Foreign exchange ​ ​ 5 ​ 2 ​ ​ (22) ​ 20 ​ End of period balance ​ $ 2,095 ​ $ 1,876 ​ $ 2,095 ​ $ 1,876 ​ |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
May 01, 2022 | |
FAIR VALUE MEASUREMENTS | |
Fair Value of Financial Instruments | The fair values of financial instruments that do not approximate the carrying values were as follows in millions of dollars. Long-term borrowings exclude finance lease liabilities. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1, 2022 ​ October 31, 2021 ​ May 2, 2021 ​ ​ Carrying ​ Fair ​ Carrying ​ Fair ​ Carrying ​ Fair Financing receivables – net ​ $ 34,085 ​ $ 33,540 ​ $ 33,799 ​ $ 33,718 ​ $ 30,994 ​ $ 31,165 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financing receivables securitized – net ​ $ 4,073 ​ $ 4,016 ​ $ 4,659 ​ $ 4,704 ​ $ 4,107 ​ $ 4,188 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term securitization borrowings: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equipment operations ​ $ 5 ​ $ 6 ​ $ 10 ​ $ 10 ​ $ 14 ​ $ 15 ​ Financial services ​ ​ 4,001 ​ ​ 3,938 ​ ​ 4,595 ​ ​ 4,600 ​ ​ 4,092 ​ ​ 4,117 ​ Total ​ $ 4,006 ​ $ 3,944 ​ $ 4,605 ​ $ 4,610 ​ $ 4,106 ​ $ 4,132 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term borrowings due within one year: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equipment operations ​ $ 1,126 ​ $ 1,128 ​ $ 1,213 $ 1,222 ​ $ 206 ​ $ 211 ​ Financial services ​ ​ 7,308 ​ ​ 7,270 ​ 7,117 ​ 7,142 ​ 7,211 ​ ​ 7,293 ​ Total ​ $ 8,434 ​ $ 8,398 ​ $ 8,330 ​ $ 8,364 ​ $ 7,417 ​ $ 7,504 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term borrowings: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equipment operations ​ $ 8,519 ​ $ 8,546 ​ $ 8,877 $ 10,244 ​ $ 10,079 ​ $ 11,391 ​ Financial services ​ ​ 23,891 ​ ​ 23,429 ​ 23,973 ​ 24,262 ​ 23,222 ​ ​ 23,701 ​ Total ​ $ 32,410 ​ $ 31,975 ​ $ 32,850 ​ $ 34,506 ​ $ 33,301 ​ $ 35,092 ​ Fair value measurements above were Level 3 for all financing receivables, Level 3 for equipment operations short-term securitization borrowings, and Level 2 for all other borrowings. |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis in millions of dollars follow, excluding the Company’s cash equivalents, which were carried at cost that approximates fair value and consisted primarily of money market funds and time deposits. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 October 31 May 2 ​ ​ 2022 ​ 2021 ​ 2021 Level 1: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Marketable securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ International equity securities ​ $ 2 ​ $ 2 ​ $ 2 ​ U.S. equity fund ​ ​ 65 ​ ​ 75 ​ ​ 71 ​ U.S. government debt securities ​ ​ 59 ​ 59 ​ 59 ​ Total Level 1 marketable securities ​ ​ 126 ​ ​ 136 ​ ​ 132 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 2: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Marketable securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. government debt securities ​ ​ 130 ​ ​ 139 ​ ​ 121 ​ Municipal debt securities ​ ​ 67 ​ 73 ​ 69 ​ Corporate debt securities ​ ​ 206 ​ 224 ​ 202 ​ International debt securities ​ ​ 2 ​ ​ 2 ​ ​ 4 ​ Mortgage-backed securities ​ ​ 151 ​ 154 ​ 140 ​ Total Level 2 marketable securities ​ ​ 556 ​ 592 ​ 536 ​ Other assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives ​ ​ 407 ​ ​ 275 ​ ​ 402 ​ Accounts payable and accrued expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives ​ ​ 780 ​ ​ 228 ​ ​ 223 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 3: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable and accrued expenses – Deferred consideration ​ ​ 262 ​ ​ ​ ​ ​ ​ ​ |
Contractual Maturities of Debt Securities | The contractual maturities of debt securities at May 1, 2022 in millions of dollars are shown below. Actual maturities may differ from contractual maturities because some securities may be called or prepaid. Because of the potential for prepayment on mortgage-backed securities, they are not categorized by contractual maturity. Mortgage-backed securities were primarily issued by U.S. government sponsored enterprises. Unrealized losses of debt securities at May 1, 2022 were not recognized in income due to the ability and intent to hold to maturity. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ Fair ​ ​ ​ Cost ​ Value ​ Due in one year or less $ 27 ​ $ 27 ​ Due after one through five years ​ ​ 92 ​ ​ 90 ​ Due after five through 10 years ​ ​ 171 ​ ​ 155 ​ Due after 10 years ​ ​ 221 ​ ​ 192 ​ Mortgage-backed securities ​ ​ 167 ​ ​ 151 ​ Debt securities $ 678 $ 615 ​ ​ |
Fair Value, Nonrecurring Level 3 Measurements from Impairments | 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. Property and equipment – net and Other assets fair value for October 31, 2021 represents the fair value assessment at January 31, 2021. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ Losses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ ​ May 1 ​ October 31 ​ May 2 ​ May 1 ​ May 2 ​ May 1 ​ May 2 ​ ​ 2022 2021 2021 2022 2021 2022 2021 Inventories ​ $ 19 ​ ​ ​ ​ ​ ​ ​ $ 8 ​ ​ ​ ​ $ 8 ​ ​ ​ ​ Property and equipment – net ​ $ 15 ​ $ 41 ​ ​ ​ ​ $ 41 ​ ​ ​ ​ $ 41 ​ $ 44 ​ Other intangible assets – net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 28 ​ ​ ​ ​ $ 28 ​ ​ ​ ​ Other assets ​ ​ ​ ​ $ 1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 6 ​ |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
May 01, 2022 | |
DERIVATIVE INSTRUMENTS | |
Amounts Recorded in the Balance Sheet Related to Borrowings Designated in Fair Value Hedging Relationships | The amounts recorded in the consolidated balance sheet related to borrowings designated in fair value hedging relationships were as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cumulative Increase (Decrease) of Fair ​ ​ ​ ​ ​ Value Hedging Adjustments Included in ​ ​ ​ ​ ​ ​ the Carrying Amount ​ ​ ​ Carrying ​ Active ​ ​ ​ ​ ​ ​ Amount of ​ Hedging ​ Discontinued ​ ​ ​ ​ ​ ​ Hedged Item ​ Relationships ​ Relationships ​ Total May 1, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term borrowings due within one year $ 185 $ 1 $ 7 $ 8 ​ Long-term borrowings ​ ​ 7,933 ​ ​ (613) ​ ​ 106 ​ ​ (507) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 31, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term borrowings due within one year ​ $ 189 ​ $ 3 ​ $ (2) ​ $ 1 ​ Long-term borrowings ​ ​ 8,070 ​ ​ 29 ​ ​ 223 ​ ​ 252 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 2, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term borrowings due within one year ​ $ 163 ​ $ 1 ​ $ (1) ​ ​ ​ ​ Long-term borrowings ​ ​ 8,502 ​ ​ 190 ​ ​ 171 ​ $ 361 ​ Long-term borrowings due within one year are presented in short-term borrowings. |
Fair Value of Derivative Instruments in Consolidated Balance Sheet | Fair values of derivative instruments in the condensed consolidated balance sheets were as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ May 1 October 31 May 2 Other Assets ​ 2022 ​ 2021 ​ 2021 Designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts $ 63 ​ $ 166 ​ $ 301 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Not designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ ​ 180 ​ 73 ​ 67 ​ Foreign exchange contracts ​ ​ 125 ​ 31 ​ 30 ​ Cross-currency interest rate contracts ​ ​ 39 ​ 5 ​ 4 ​ Total not designated ​ ​ 344 ​ 109 ​ 101 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total derivative assets $ 407 ​ $ 275 ​ $ 402 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts Payable and Accrued Expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts $ 591 ​ $ 99 ​ $ 80 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Not designated as hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts ​ ​ 75 ​ ​ 33 ​ ​ 52 ​ Foreign exchange contracts ​ ​ 114 ​ 94 ​ 89 ​ Cross-currency interest rate contracts ​ ​ ​ ​ 2 ​ 2 ​ Total not designated ​ ​ 189 ​ 129 ​ 143 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total derivative liabilities $ 780 ​ $ 228 ​ $ 223 ​ |
Gains (Losses) Related to Derivative Instruments on Statement of Consolidated Income | The classification and gains (losses) including accrued interest expense related to derivative instruments consisted of the following in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ May 1 ​ May 2 ​ May 1 ​ May 2 ​ ​ 2022 ​ 2021 ​ 2022 ​ 2021 Fair Value Hedges: ​ ​ ​ ​ Interest rate contracts - Interest expense $ (514) ​ $ (170) $ (656) ​ $ (225) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flow Hedges ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recognized in OCI ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts - OCI (pretax) ​ ​ 35 ​ ​ ​ ​ 50 ​ ​ ​ Reclassified from OCI ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts - Interest expense ​ ​ (1) ​ (4) ​ ​ (3) ​ (9) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Not Designated as Hedges: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest rate contracts - Net sales ​ $ 31 ​ $ 5 ​ $ 44 ​ $ 5 ​ Interest rate contracts - Interest expense * ​ 61 ​ ​ ​ ​ 59 ​ ​ (4) ​ Foreign exchange contracts - Net sales ​ ​ (1) ​ ​ ​ ​ ​ (1) ​ ​ ​ ​ Foreign exchange contracts - Cost of sales ​ ​ (79) ​ (48) ​ ​ (80) ​ ​ (100) ​ Foreign exchange contracts - Other operating expenses * ​ ​ 26 ​ (78) ​ ​ 173 ​ (204) ​ Total not designated $ 38 ​ $ (121) $ 195 ​ $ (303) ​ *   |
Impact on Derivative Assets and Liabilities Related to Netting Arrangements and Collateral | 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 was as follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts ​ Netting ​ ​ ​ ​ ​ May 1, 2022 Recognized Arrangements Collateral Net Amount Assets $ 407 $ (110) ​ ​ $ 297 ​ Liabilities ​ ​ 780 ​ ​ (110) ​ $ (254) ​ ​ 416 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts ​ Netting ​ ​ ​ ​ ​ October 31, 2021 Recognized Arrangements Collateral Net Amount Assets ​ $ 275 $ (105) ​ ​ ​ $ 170 ​ Liabilities ​ ​ 228 ​ ​ (105) ​ $ (5) ​ ​ 118 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amounts Netting ​ ​ ​ May 2, 2021 ​ Recognized ​ Arrangements ​ Collateral ​ Net Amount Assets ​ $ 402 ​ $ (125) ​ $ (21) ​ $ 256 ​ Liabilities ​ 223 ​ (125) ​ ​ (1) ​ 97 ​ |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
May 01, 2022 | |
Kreisel | |
Preliminary Fair Values Assigned to Assets and Liabilities as of the Acquisition Date | The preliminary fair values assigned to the assets and liabilities of the acquired entity in millions of dollars, which is based on information as of the acquisition date and available at May 1, 2022 follows: ​ ​ ​ ​ ​ ​ ​ ​ February 7 ​ ​ ​ 2022 ​ Trade accounts and notes receivable ​ $ 2 ​ Other receivables ​ ​ 11 ​ Inventories ​ ​ 11 ​ Property and equipment ​ ​ 11 ​ Goodwill ​ ​ 217 ​ Other intangible assets ​ ​ 178 ​ Other assets ​ ​ 6 ​ Total assets ​ $ 436 ​ ​ ​ ​ ​ ​ Accounts payable and accrued expenses ​ $ 28 ​ Deferred income taxes ​ ​ 36 ​ ​ ​ ​ ​ ​ Redeemable noncontrolling interest ​ $ 96 ​ |
Excavator Factories | |
Total Invested Capital | The total invested capital follows: ​ ​ ​ ​ ​ ​ ​ February 28 ​ ​ ​ 2022 ​ Cash consideration for factories ​ $ 205 ​ Cash consideration for license agreement ​ ​ 70 ​ Deferred consideration ​ ​ 271 ​ Total purchase price consideration ​ ​ 546 ​ Less: Cash obtained ​ ​ (187) ​ Less: Settlement of intercompany balances ​ ​ (113) ​ Net purchase price consideration ​ ​ 246 ​ Fair value of previously held equity investment ​ ​ 444 ​ Total invested capital ​ $ 690 ​ |
Preliminary Fair Values Assigned to Assets and Liabilities as of the Acquisition Date | The preliminary fair values assigned to the assets and liabilities of the acquired factories in millions of dollars, which is based on information as of the acquisition date and available at May 1, 2022 follows: ​ ​ ​ ​ ​ ​ ​ February 28 ​ ​ ​ 2022 ​ Other receivables ​ $ 29 ​ Inventories ​ ​ 286 ​ Property and equipment ​ ​ 182 ​ Goodwill ​ ​ 534 ​ Other intangible assets ​ ​ 70 ​ Deferred income taxes ​ ​ 49 ​ Total assets ​ $ 1,150 ​ ​ ​ ​ ​ ​ Accounts payable and accrued expenses ​ $ 297 ​ Long-term borrowings ​ ​ 163 ​ Total liabilities ​ $ 460 ​ |
Other Acquisitions | |
Preliminary Fair Values Assigned to Assets and Liabilities as of the Acquisition Date | The preliminary asset and liability fair values at the respective acquisition dates follow in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ May 1 ​ ​ ​ 2022 ​ Trade accounts and notes receivable ​ $ 7 ​ Inventories ​ ​ 8 ​ Property and equipment ​ ​ 4 ​ Goodwill ​ ​ 40 ​ Other intangible assets ​ ​ 20 ​ Other assets ​ ​ 50 ​ Total assets ​ $ 129 ​ ​ ​ ​ ​ ​ Accounts payable and accrued expenses ​ $ 6 ​ Deferred income taxes ​ ​ 5 ​ Total liabilities ​ $ 11 ​ ​ ​ ​ ​ ​ Redeemable noncontrolling interest ​ $ 9 ​ |
SPECIAL ITEMS (Tables)
SPECIAL ITEMS (Tables) | 6 Months Ended |
May 01, 2022 | |
SPECIAL ITEMS | |
Schedule of Special Items | A summary of the reserves and impairments recorded in the second quarter of 2022 follows in millions of dollars: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended May 1, 2022 ​ ​ ​ PPA SAT CF FS Total ​ 2022 Expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inventory reserve – Cost of sales ​ $ 6 ​ ​ ​ ​ $ 2 ​ ​ ​ ​ $ 8 ​ Fixed asset impairment – Cost of sales ​ ​ 30 ​ ​ ​ ​ ​ 11 ​ ​ ​ ​ ​ 41 ​ Intangible asset impairment – Cost of sales ​ ​ ​ ​ ​ ​ ​ ​ 28 ​ ​ ​ ​ ​ 28 ​ Allowance for credit losses – Financing receivables – SA&G expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 26 ​ ​ 26 ​ Contingent liabilities – Other operating expenses ​ ​ 10 ​ $ 1 ​ ​ 6 ​ ​ ​ ​ ​ 17 ​ Total Russia/Ukraine events pretax expense ​ $ 46 ​ $ 1 ​ $ 47 ​ $ 26 ​ $ 120 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net tax impact ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (14) ​ Total Russia/Ukraine events after-tax expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 106 ​ The following table summarizes the operating profit impact, in millions of dollars, of the special items recorded for the three months and six months ended May 1, 2022 and May 2, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months ​ Six Months ​ ​ ​ PPA SAT CF FS Total ​ PPA SAT CF FS Total ​ 2022 Expense (benefit): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain on remeasurement of equity investment – Other income (see Note 19) ​ ​ ​ ​ ​ ​ ​ $ (326) ​ ​ ​ ​ $ (326) ​ ​ ​ ​ ​ ​ ​ $ (326) ​ ​ ​ ​ $ (326) ​ Total Russia/Ukraine events pretax expense ​ $ 46 ​ $ 1 ​ ​ 47 ​ $ 26 ​ ​ 120 ​ $ 46 ​ $ 1 ​ ​ 47 ​ $ 26 ​ ​ 120 ​ UAW ratification bonus – Cost of sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 53 ​ ​ 9 ​ ​ 28 ​ ​ ​ ​ ​ 90 ​ Total expense (benefit) ​ $ 46 ​ $ 1 ​ $ (279) ​ $ 26 ​ $ (206) ​ $ 99 ​ $ 10 ​ $ (251) ​ $ 26 ​ $ (116) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 Expense (benefit): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-lived asset impairments – Cost of sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 5 ​ $ 3 ​ $ 42 ​ ​ ​ ​ $ 50 ​ Brazil indirect tax – Cost of sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (53) ​ ​ ​ ​ ​ (5) ​ ​ ​ ​ ​ (58) ​ Total expense (benefit) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ (48) ​ $ 3 ​ $ 37 ​ ​ ​ ​ $ (8) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Period over period change ​ $ 46 ​ $ 1 ​ $ (279) ​ $ 26 ​ $ (206) ​ $ 147 ​ $ 7 ​ $ (288) ​ $ 26 ​ $ (108) ​ |
ORGANIZATION AND CONSOLIDATION
ORGANIZATION AND CONSOLIDATION (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
May 01, 2022 | May 02, 2021 | Jan. 31, 2021 | May 01, 2022 | May 02, 2021 | |
Fiscal period duration | 91 days | 91 days | 182 days | 182 days | |
Wirtgen Group Holding GmbH (Wirtgen) | |||||
Net sales | $ 270 | $ 270 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING STANDARDS (Details) - USD ($) $ in Millions | May 01, 2022 | Oct. 31, 2021 |
Canada | ||
Revenue Recognition | ||
Remaining consigned inventory | $ 46 | $ 150 |
REVENUE RECOGNITION - Primary G
REVENUE RECOGNITION - Primary Geographic Market, Major Product Line, and Timing (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | |
Revenue Recognition | ||||
Net sales and revenues | $ 13,370 | $ 12,058 | $ 22,939 | $ 21,170 |
Revenue Recognized at a Point in Time | ||||
Revenue Recognition | ||||
Net sales and revenues | 12,470 | 11,114 | 21,114 | 19,278 |
Revenue Recognized Over Time | ||||
Revenue Recognition | ||||
Net sales and revenues | 900 | 944 | 1,825 | 1,892 |
Production Agriculture | ||||
Revenue Recognition | ||||
Net sales | 5,032 | 4,466 | 8,315 | 7,478 |
Small Agriculture | ||||
Revenue Recognition | ||||
Net sales | 2,668 | 2,417 | 4,600 | 4,228 |
Turf | ||||
Revenue Recognition | ||||
Net sales | 817 | 898 | 1,444 | 1,549 |
Construction | ||||
Revenue Recognition | ||||
Net sales | 1,516 | 1,232 | 2,691 | 2,119 |
Compact Construction | ||||
Revenue Recognition | ||||
Net sales | 427 | 396 | 748 | 742 |
Roadbuilding | ||||
Revenue Recognition | ||||
Net sales | 1,017 | 1,066 | 1,709 | 1,976 |
Forestry | ||||
Revenue Recognition | ||||
Net sales | 325 | 343 | 630 | 633 |
Financial Products | ||||
Revenue Recognition | ||||
Financial | 889 | 919 | 1,787 | 1,836 |
Other income | ||||
Revenue Recognition | ||||
Other net sales and revenues | 679 | 321 | 1,015 | 609 |
United States | ||||
Revenue Recognition | ||||
Net sales and revenues | 7,214 | 6,138 | 12,093 | 10,970 |
Canada | ||||
Revenue Recognition | ||||
Net sales and revenues | 974 | 869 | 1,719 | 1,402 |
Western Europe | ||||
Revenue Recognition | ||||
Net sales and revenues | 1,683 | 1,867 | 3,066 | 3,265 |
Central Europe and CIS | ||||
Revenue Recognition | ||||
Net sales and revenues | 712 | 909 | 1,246 | 1,341 |
Latin America | ||||
Revenue Recognition | ||||
Net sales and revenues | 1,666 | 1,083 | 2,842 | 1,902 |
Asia, Africa, Australia, New Zealand, and Middle East | ||||
Revenue Recognition | ||||
Net sales and revenues | 1,121 | 1,192 | 1,973 | 2,290 |
Production & Precision Ag (PPA) | ||||
Revenue Recognition | ||||
Net sales and revenues | 5,176 | 4,602 | 8,609 | 7,750 |
Production & Precision Ag (PPA) | Revenue Recognized at a Point in Time | ||||
Revenue Recognition | ||||
Net sales and revenues | 5,144 | 4,562 | 8,540 | 7,668 |
Production & Precision Ag (PPA) | Revenue Recognized Over Time | ||||
Revenue Recognition | ||||
Net sales and revenues | 32 | 40 | 69 | 82 |
Production & Precision Ag (PPA) | Production Agriculture | ||||
Revenue Recognition | ||||
Net sales | 5,032 | 4,466 | 8,315 | 7,478 |
Production & Precision Ag (PPA) | Financial Products | ||||
Revenue Recognition | ||||
Financial | 10 | 12 | 22 | 28 |
Production & Precision Ag (PPA) | Other income | ||||
Revenue Recognition | ||||
Other net sales and revenues | 134 | 124 | 272 | 244 |
Production & Precision Ag (PPA) | United States | ||||
Revenue Recognition | ||||
Net sales and revenues | 2,434 | 2,211 | 4,042 | 3,820 |
Production & Precision Ag (PPA) | Canada | ||||
Revenue Recognition | ||||
Net sales and revenues | 309 | 252 | 448 | 364 |
Production & Precision Ag (PPA) | Western Europe | ||||
Revenue Recognition | ||||
Net sales and revenues | 536 | 589 | 1,003 | 1,038 |
Production & Precision Ag (PPA) | Central Europe and CIS | ||||
Revenue Recognition | ||||
Net sales and revenues | 404 | 531 | 606 | 692 |
Production & Precision Ag (PPA) | Latin America | ||||
Revenue Recognition | ||||
Net sales and revenues | 1,126 | 700 | 1,902 | 1,213 |
Production & Precision Ag (PPA) | Asia, Africa, Australia, New Zealand, and Middle East | ||||
Revenue Recognition | ||||
Net sales and revenues | 367 | 319 | 608 | 623 |
Small Ag & Turf (SAT) | ||||
Revenue Recognition | ||||
Net sales and revenues | 3,606 | 3,427 | 6,280 | 5,977 |
Small Ag & Turf (SAT) | Revenue Recognized at a Point in Time | ||||
Revenue Recognition | ||||
Net sales and revenues | 3,593 | 3,412 | 6,247 | 5,946 |
Small Ag & Turf (SAT) | Revenue Recognized Over Time | ||||
Revenue Recognition | ||||
Net sales and revenues | 13 | 15 | 33 | 31 |
Small Ag & Turf (SAT) | Small Agriculture | ||||
Revenue Recognition | ||||
Net sales | 2,668 | 2,417 | 4,600 | 4,228 |
Small Ag & Turf (SAT) | Turf | ||||
Revenue Recognition | ||||
Net sales | 817 | 898 | 1,444 | 1,549 |
Small Ag & Turf (SAT) | Financial Products | ||||
Revenue Recognition | ||||
Financial | 9 | 10 | 20 | 20 |
Small Ag & Turf (SAT) | Other income | ||||
Revenue Recognition | ||||
Other net sales and revenues | 112 | 102 | 216 | 180 |
Small Ag & Turf (SAT) | United States | ||||
Revenue Recognition | ||||
Net sales and revenues | 2,103 | 1,838 | 3,541 | 3,261 |
Small Ag & Turf (SAT) | Canada | ||||
Revenue Recognition | ||||
Net sales and revenues | 161 | 144 | 283 | 223 |
Small Ag & Turf (SAT) | Western Europe | ||||
Revenue Recognition | ||||
Net sales and revenues | 658 | 738 | 1,190 | 1,224 |
Small Ag & Turf (SAT) | Central Europe and CIS | ||||
Revenue Recognition | ||||
Net sales and revenues | 151 | 160 | 277 | 244 |
Small Ag & Turf (SAT) | Latin America | ||||
Revenue Recognition | ||||
Net sales and revenues | 134 | 103 | 238 | 180 |
Small Ag & Turf (SAT) | Asia, Africa, Australia, New Zealand, and Middle East | ||||
Revenue Recognition | ||||
Net sales and revenues | 399 | 444 | 751 | 845 |
Construction & Forestry (CF) | ||||
Revenue Recognition | ||||
Net sales and revenues | 3,724 | 3,137 | 6,316 | 5,667 |
Construction & Forestry (CF) | Revenue Recognized at a Point in Time | ||||
Revenue Recognition | ||||
Net sales and revenues | 3,707 | 3,114 | 6,277 | 5,614 |
Construction & Forestry (CF) | Revenue Recognized Over Time | ||||
Revenue Recognition | ||||
Net sales and revenues | 17 | 23 | 39 | 53 |
Construction & Forestry (CF) | Construction | ||||
Revenue Recognition | ||||
Net sales | 1,516 | 1,232 | 2,691 | 2,119 |
Construction & Forestry (CF) | Compact Construction | ||||
Revenue Recognition | ||||
Net sales | 427 | 396 | 748 | 742 |
Construction & Forestry (CF) | Roadbuilding | ||||
Revenue Recognition | ||||
Net sales | 1,017 | 1,066 | 1,709 | 1,976 |
Construction & Forestry (CF) | Forestry | ||||
Revenue Recognition | ||||
Net sales | 325 | 343 | 630 | 633 |
Construction & Forestry (CF) | Financial Products | ||||
Revenue Recognition | ||||
Financial | 6 | 5 | 11 | 12 |
Construction & Forestry (CF) | Other income | ||||
Revenue Recognition | ||||
Other net sales and revenues | 433 | 95 | 527 | 185 |
Construction & Forestry (CF) | United States | ||||
Revenue Recognition | ||||
Net sales and revenues | 2,108 | 1,481 | 3,368 | 2,683 |
Construction & Forestry (CF) | Canada | ||||
Revenue Recognition | ||||
Net sales and revenues | 355 | 320 | 687 | 508 |
Construction & Forestry (CF) | Western Europe | ||||
Revenue Recognition | ||||
Net sales and revenues | 464 | 514 | 822 | 953 |
Construction & Forestry (CF) | Central Europe and CIS | ||||
Revenue Recognition | ||||
Net sales and revenues | 146 | 209 | 341 | 387 |
Construction & Forestry (CF) | Latin America | ||||
Revenue Recognition | ||||
Net sales and revenues | 333 | 220 | 561 | 390 |
Construction & Forestry (CF) | Asia, Africa, Australia, New Zealand, and Middle East | ||||
Revenue Recognition | ||||
Net sales and revenues | 318 | 393 | 537 | 746 |
Financial Services (FS) | ||||
Revenue Recognition | ||||
Financial | 864 | 892 | 1,734 | 1,776 |
Financial Services (FS) | Revenue Recognized at a Point in Time | ||||
Revenue Recognition | ||||
Financial | 26 | 26 | 50 | 50 |
Financial Services (FS) | Revenue Recognized Over Time | ||||
Revenue Recognition | ||||
Financial | 838 | 866 | 1,684 | 1,726 |
Financial Services (FS) | Financial Products | ||||
Revenue Recognition | ||||
Financial | 864 | 892 | 1,734 | 1,776 |
Financial Services (FS) | United States | ||||
Revenue Recognition | ||||
Financial | 569 | 608 | 1,142 | 1,206 |
Financial Services (FS) | Canada | ||||
Revenue Recognition | ||||
Financial | 149 | 153 | 301 | 307 |
Financial Services (FS) | Western Europe | ||||
Revenue Recognition | ||||
Financial | 25 | 26 | 51 | 50 |
Financial Services (FS) | Central Europe and CIS | ||||
Revenue Recognition | ||||
Financial | 11 | 9 | 22 | 18 |
Financial Services (FS) | Latin America | ||||
Revenue Recognition | ||||
Financial | 73 | 60 | 141 | 119 |
Financial Services (FS) | Asia, Africa, Australia, New Zealand, and Middle East | ||||
Revenue Recognition | ||||
Financial | $ 37 | $ 36 | $ 77 | $ 76 |
REVENUE RECOGNITION - Advanced
REVENUE RECOGNITION - Advanced Customer Payments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | Oct. 31, 2021 | |
Advanced customer payments | |||||
Deferred revenue received | $ 1,423 | $ 1,249 | $ 1,423 | $ 1,249 | $ 1,344 |
Revenue recognized from deferred revenue | $ 130 | $ 111 | $ 395 | $ 335 |
REVENUE RECOGNITION - Unsatisfi
REVENUE RECOGNITION - Unsatisfied Performance Obligations (Details) $ in Millions | May 01, 2022USD ($) |
Unsatisfied performance obligations | |
Unsatisfied performance obligations for contracts with an original duration greater than one year | $ 1,116 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-05-02 | |
Unsatisfied performance obligations | |
Unsatisfied performance obligations for contracts with an original duration greater than one year | $ 173 |
Period estimated revenue to be recognized | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-31 | |
Unsatisfied performance obligations | |
Unsatisfied performance obligations for contracts with an original duration greater than one year | $ 311 |
Period estimated revenue to be recognized | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-30 | |
Unsatisfied performance obligations | |
Unsatisfied performance obligations for contracts with an original duration greater than one year | $ 260 |
Period estimated revenue to be recognized | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-28 | |
Unsatisfied performance obligations | |
Unsatisfied performance obligations for contracts with an original duration greater than one year | $ 168 |
Period estimated revenue to be recognized | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-11-03 | |
Unsatisfied performance obligations | |
Unsatisfied performance obligations for contracts with an original duration greater than one year | $ 87 |
Period estimated revenue to be recognized | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-11-02 | |
Unsatisfied performance obligations | |
Unsatisfied performance obligations for contracts with an original duration greater than one year | $ 52 |
Period estimated revenue to be recognized | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-11-01 | |
Unsatisfied performance obligations | |
Unsatisfied performance obligations for contracts with an original duration greater than one year | $ 65 |
Period estimated revenue to be recognized | 24 months |
OTHER COMPREHENSIVE INCOME IT_3
OTHER COMPREHENSIVE INCOME ITEMS - After-Tax Components (Details) - USD ($) $ in Millions | May 01, 2022 | Oct. 31, 2021 | May 02, 2021 |
Accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | $ 18,904 | $ 18,431 | $ 15,092 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | (3,291) | (2,539) | (4,960) |
Retirement Benefits Adjustment | |||
Accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | (1,250) | (1,034) | (3,764) |
Cumulative Translation Adjustment | |||
Accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | (1,993) | (1,478) | (1,163) |
Unrealized Gain (Loss) on Derivatives | |||
Accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | (42) | (51) | |
Unrealized Gain (Loss) on Debt Securities | |||
Accumulated other comprehensive income (loss) | |||
Total accumulated other comprehensive income (loss) | $ (48) | $ 15 | $ 18 |
OTHER COMPREHENSIVE INCOME IT_4
OTHER COMPREHENSIVE INCOME ITEMS - Amounts Recorded in and Reclassifications out of (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | |
Other Comprehensive Income (Loss), Before Tax | ||||
Interest expense | $ (187) | $ (268) | $ (417) | $ (538) |
Total other comprehensive income (loss), before tax | (98) | 147 | (817) | 627 |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||||
Total other comprehensive income (loss), tax (expense) credit | (41) | (29) | 65 | (48) |
Other Comprehensive Income (Loss), After Tax | ||||
Other comprehensive income (loss), net of income taxes | (139) | 118 | (752) | 579 |
Cumulative Translation Adjustment | ||||
Other Comprehensive Income (Loss), Before Tax | ||||
Total other comprehensive income (loss), before tax | (243) | 37 | (507) | 431 |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||||
Total other comprehensive income (loss), tax (expense) credit | (5) | (8) | 2 | |
Other Comprehensive Income (Loss), After Tax | ||||
Other comprehensive income (loss), net of income taxes | (248) | 37 | (515) | 433 |
Unrealized Gain (Loss) on Derivatives | ||||
Other Comprehensive Income (Loss), Before Tax | ||||
Other comprehensive income (loss) before reclassification, before tax | 35 | 50 | ||
Total other comprehensive income (loss), before tax | 36 | 4 | 53 | 9 |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||||
Other comprehensive income (loss) before reclassification, tax (expense) credit | (7) | (10) | ||
Total other comprehensive income (loss), tax (expense) credit | (8) | (1) | (11) | (2) |
Other Comprehensive Income (Loss), After Tax | ||||
Other comprehensive income (loss) before reclassification, after tax | 28 | 40 | ||
Other comprehensive income (loss), net of income taxes | 28 | 3 | 42 | 7 |
Unrealized Gain (Loss) on Derivatives | Interest Rate Contracts | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||
Other Comprehensive Income (Loss), Before Tax | ||||
Interest expense | 1 | 4 | 3 | 9 |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||||
Reclassification from accumulated other comprehensive income, tax (expense) credit | (1) | (1) | (1) | (2) |
Other Comprehensive Income (Loss), After Tax | ||||
Reclassification from accumulated other comprehensive income, after tax | 3 | 2 | 7 | |
Unrealized Gain (Loss) on Debt Securities | ||||
Other Comprehensive Income (Loss), Before Tax | ||||
Other comprehensive income (loss) before reclassification, before tax | (61) | (14) | (80) | (17) |
Total other comprehensive income (loss), before tax | (61) | (14) | (80) | (17) |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||||
Other comprehensive income (loss) before reclassification, tax (expense) credit | 13 | 1 | 17 | 2 |
Total other comprehensive income (loss), tax (expense) credit | 13 | 1 | 17 | 2 |
Other Comprehensive Income (Loss), After Tax | ||||
Other comprehensive income (loss) before reclassification, after tax | (48) | (13) | (63) | (15) |
Other comprehensive income (loss), net of income taxes | (48) | (13) | (63) | (15) |
Retirement Benefits Adjustment | ||||
Other Comprehensive Income (Loss), Before Tax | ||||
Other comprehensive income (loss) before reclassification, before tax | 128 | 41 | (372) | 40 |
Total other comprehensive income (loss), before tax | 170 | 120 | (283) | 204 |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||||
Other comprehensive income (loss) before reclassification, tax (expense) credit | (30) | (9) | 90 | (9) |
Total other comprehensive income (loss), tax (expense) credit | (41) | (29) | 67 | (50) |
Other Comprehensive Income (Loss), After Tax | ||||
Other comprehensive income (loss) before reclassification, after tax | 98 | 32 | (282) | 31 |
Other comprehensive income (loss), net of income taxes | 129 | 91 | (216) | 154 |
Actuarial (Gain) Loss | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||
Other Comprehensive Income (Loss), Before Tax | ||||
Other operating expenses | 27 | 72 | 67 | 142 |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||||
Reclassification from accumulated other comprehensive income, tax (expense) credit | (7) | (19) | (17) | (36) |
Other Comprehensive Income (Loss), After Tax | ||||
Reclassification from accumulated other comprehensive income, after tax | 20 | 53 | 50 | 106 |
Prior Service (Credit) Cost | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||
Other Comprehensive Income (Loss), Before Tax | ||||
Other operating expenses | 8 | 2 | 14 | 4 |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||||
Reclassification from accumulated other comprehensive income, tax (expense) credit | (2) | (4) | (1) | |
Other Comprehensive Income (Loss), After Tax | ||||
Reclassification from accumulated other comprehensive income, after tax | 6 | 2 | 10 | 3 |
Settlements | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||
Other Comprehensive Income (Loss), Before Tax | ||||
Other operating expenses | 7 | 5 | 8 | 18 |
Other Comprehensive Income (Loss), Tax (Expense) Credit | ||||
Reclassification from accumulated other comprehensive income, tax (expense) credit | (2) | (1) | (2) | (4) |
Other Comprehensive Income (Loss), After Tax | ||||
Reclassification from accumulated other comprehensive income, after tax | $ 5 | $ 4 | $ 6 | $ 14 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | |
EARNINGS PER SHARE | ||||
Net income attributable to Deere & Company | $ 2,098 | $ 1,790 | $ 3,001 | $ 3,013 |
Average shares outstanding | 306.2 | 312.8 | 306.8 | 313.1 |
Basic (in dollars per share) | $ 6.85 | $ 5.72 | $ 9.78 | $ 9.62 |
Diluted Earnings Per Share | ||||
Average shares outstanding | 306.2 | 312.8 | 306.8 | 313.1 |
Effect of dilutive share-based compensation (in shares) | 1.9 | 2.4 | 2 | 2.5 |
Total potential shares outstanding | 308.1 | 315.2 | 308.8 | 315.6 |
Diluted (in dollars per share) | $ 6.81 | $ 5.68 | $ 9.72 | $ 9.55 |
Antidilutive incremental shares excluded from computation of earnings per share | 0.2 | 0 | 0.1 | 0 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Components of Net Periodic (Benefit) Cost (Details) - USD ($) $ in Millions | Nov. 30, 2021 | May 01, 2022 | Jan. 30, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | Oct. 30, 2022 |
Net Periodic (Benefit) Cost | |||||||
Location of costs excluding the service component | Other operating expenses | Other operating expenses | Other operating expenses | Other operating expenses | |||
Pensions | |||||||
Net Periodic (Benefit) Cost | |||||||
Service cost | $ 94 | $ 83 | $ 179 | $ 168 | |||
Interest cost | 80 | 69 | 157 | 138 | |||
Expected return on plan assets | (180) | (200) | (362) | (400) | |||
Amortization of actuarial (gain) loss | 37 | 65 | 76 | 128 | |||
Amortization of prior service (credit) cost | 9 | 3 | 16 | 6 | |||
Settlements | 7 | 5 | 8 | 18 | |||
Net (benefit) cost | 47 | 25 | 74 | 58 | |||
Employer Contributions | |||||||
Defined benefit plan employer contributions | 47 | ||||||
Defined benefit plan employer contributions expected for the remainder of the fiscal year | 43 | 43 | |||||
Pensions | UAW Collective Bargaining Arrangement | United States | |||||||
UAW Contract Remeasurement | |||||||
Decrease in plan's funded status | $ (495) | ||||||
Pensions | UAW Collective Bargaining Arrangement | United States | Forecast | |||||||
UAW Contract Remeasurement | |||||||
Pension expense increase | $ 80 | ||||||
Pensions | UAW Collective Bargaining Arrangement | United States | Forecast | Operating Profit | |||||||
UAW Contract Remeasurement | |||||||
Pension expense increase | $ 35 | ||||||
OPEB | |||||||
Net Periodic (Benefit) Cost | |||||||
Service cost | 11 | 12 | 23 | 24 | |||
Interest cost | 23 | 25 | 49 | 51 | |||
Expected return on plan assets | (27) | (20) | (55) | (39) | |||
Amortization of actuarial (gain) loss | (10) | 7 | (9) | 14 | |||
Amortization of prior service (credit) cost | (1) | (1) | (2) | (2) | |||
Net (benefit) cost | (4) | $ 23 | 6 | $ 48 | |||
Employer Contributions | |||||||
Defined benefit plan employer contributions | 1,085 | ||||||
Defined benefit plan employer contributions expected for the remainder of the fiscal year | $ 50 | $ 50 | |||||
OPEB | United States | |||||||
Employer Contributions | |||||||
Defined benefit plan employer voluntary contributions | $ 1,000 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | Oct. 31, 2021 | |
Net Sales and Revenues | |||||
Net sales and revenues | $ 13,370 | $ 12,058 | $ 22,939 | $ 21,170 | |
% Change - Net sales and revenues | 11.00% | 8.00% | |||
Operating Profit (Loss) | |||||
Total operating profit | $ 2,670 | 2,439 | $ 3,906 | 4,077 | |
% Change - Operating profit | 9.00% | (4.00%) | |||
Net income attributable to Deere & Company | $ 2,098 | 1,790 | $ 3,001 | 3,013 | |
% Change - Net income attributable to Deere & Company | 17.00% | ||||
Identifiable Assets | |||||
Total Assets | $ 84,099 | 78,979 | 84,099 | 78,979 | $ 84,114 |
Operating Segments (Other) | |||||
Reconciling items | $ (111) | (119) | $ (195) | (226) | |
% Change - Reconciling items | (7.00%) | (14.00%) | |||
Income taxes | $ (461) | (530) | $ (710) | (838) | |
% Change - Income taxes | (13.00%) | (15.00%) | |||
Corporate | |||||
Identifiable Assets | |||||
Total Assets | $ 10,894 | 11,423 | $ 10,894 | 11,423 | 15,053 |
Other Revenues | |||||
Net Sales and Revenues | |||||
Other revenues | $ 472 | 168 | $ 640 | 345 | |
% Change - Other revenues | 181.00% | 86.00% | |||
Production & Precision Ag (PPA) | |||||
Net Sales and Revenues | |||||
Net sales and revenues | $ 5,176 | 4,602 | $ 8,609 | 7,750 | |
Intersegment sales and revenues | $ 6 | 7 | $ 10 | 13 | |
% Change - Intersegment sales and revenues | (14.00%) | (23.00%) | |||
Operating Profit (Loss) | |||||
Total operating profit | $ 1,057 | 1,007 | $ 1,353 | 1,651 | |
% Change - Operating profit | 5.00% | (18.00%) | |||
Identifiable Assets | |||||
Total Assets | $ 8,680 | 6,602 | $ 8,680 | 6,602 | 7,021 |
Small Ag & Turf (SAT) | |||||
Net Sales and Revenues | |||||
Net sales and revenues | 3,606 | 3,427 | 6,280 | 5,977 | |
Intersegment sales and revenues | 4 | 4 | $ 6 | 8 | |
% Change - Intersegment sales and revenues | (25.00%) | ||||
Operating Profit (Loss) | |||||
Total operating profit | $ 520 | 648 | $ 891 | 1,117 | |
% Change - Operating profit | (20.00%) | (20.00%) | |||
Identifiable Assets | |||||
Total Assets | $ 4,431 | 3,605 | $ 4,431 | 3,605 | 3,959 |
Construction & Forestry (CF) | |||||
Net Sales and Revenues | |||||
Net sales and revenues | 3,724 | 3,137 | 6,316 | 5,667 | |
Operating Profit (Loss) | |||||
Total operating profit | $ 814 | 489 | $ 1,085 | 756 | |
% Change - Operating profit | 66.00% | 44.00% | |||
Identifiable Assets | |||||
Total Assets | $ 6,984 | 6,500 | $ 6,984 | 6,500 | 6,457 |
Financial Services (FS) | |||||
Net Sales and Revenues | |||||
Financial revenues | $ 864 | 892 | $ 1,734 | 1,776 | |
% Change - Financial revenues | (3.00%) | (2.00%) | |||
Intersegment sales and revenues | $ 87 | 62 | $ 133 | 112 | |
% Change - Intersegment sales and revenues | 40.00% | 19.00% | |||
Operating Profit (Loss) | |||||
Total operating profit | $ 279 | 295 | $ 577 | 553 | |
% Change - Operating profit | (5.00%) | 4.00% | |||
Identifiable Assets | |||||
Total Assets | $ 53,110 | 50,849 | $ 53,110 | 50,849 | $ 51,624 |
Net Sales | |||||
Net Sales and Revenues | |||||
Net sales and revenues | 12,034 | 10,998 | 20,565 | 19,049 | |
Net Sales | Production & Precision Ag (PPA) | |||||
Net Sales and Revenues | |||||
Net sales | $ 5,117 | 4,529 | $ 8,473 | 7,599 | |
% Change - Net sales | 13.00% | 12.00% | |||
Net Sales | Small Ag & Turf (SAT) | |||||
Net Sales and Revenues | |||||
Net sales | $ 3,570 | 3,390 | $ 6,201 | 5,904 | |
% Change - Net sales | 5.00% | 5.00% | |||
Net Sales | Construction & Forestry (CF) | |||||
Net Sales and Revenues | |||||
Net sales | $ 3,347 | $ 3,079 | $ 5,891 | $ 5,546 | |
% Change - Net sales | 9.00% | 6.00% |
FINANCING RECEIVABLES - Financi
FINANCING RECEIVABLES - Financing Receivables Past Due (Details) | 6 Months Ended |
May 01, 2022 | |
FINANCING RECEIVABLES | |
Minimum number of days for a financing receivable to be considered past due | 30 days |
Generally the number of days for a financing receivable to be considered non-performing | 90 days |
Generally the number of days before a receivable is delinquent and the estimated uncollectible amount is written off | 120 days |
FINANCING RECEIVABLES - Retail
FINANCING RECEIVABLES - Retail Notes, Financing Leases, and Revolving Charge Accounts Credit Quality Analysis (Details) - USD ($) $ in Millions | May 01, 2022 | Oct. 31, 2021 | May 02, 2021 |
Credit Quality Analysis | |||
Total retail customer receivables | $ 38,348 | $ 35,279 | |
Retail Customer Receivables | |||
Credit Quality Analysis | |||
2022 and 2021, respectively | 7,103 | $ 16,173 | 7,640 |
2021 and 2020, respectively | 12,813 | 8,494 | 10,697 |
2020 and 2019, respectively | 6,723 | 4,389 | 5,765 |
2019 and 2018, respectively | 3,384 | 2,098 | 2,987 |
2018 and 2017, respectively | 1,579 | 828 | 1,322 |
Prior years | 879 | 251 | 568 |
Revolving | 3,507 | 3,825 | 3,348 |
Total retail customer receivables | 35,988 | 36,058 | 32,327 |
Retail Customer Receivables | Agriculture and Turf | 30-59 Days Past Due | |||
Credit Quality Analysis | |||
2022 and 2021, respectively | 20 | 43 | 20 |
2021 and 2020, respectively | 75 | 53 | 64 |
2020 and 2019, respectively | 36 | 29 | 41 |
2019 and 2018, respectively | 20 | 16 | 19 |
2018 and 2017, respectively | 9 | 7 | 10 |
Prior years | 5 | 3 | 5 |
Revolving | 12 | 14 | 20 |
Total retail customer receivables | 177 | 165 | 179 |
Retail Customer Receivables | Agriculture and Turf | 60-89 Days Past Due | |||
Credit Quality Analysis | |||
2022 and 2021, respectively | 4 | 16 | 5 |
2021 and 2020, respectively | 29 | 23 | 34 |
2020 and 2019, respectively | 14 | 12 | 18 |
2019 and 2018, respectively | 9 | 6 | 9 |
2018 and 2017, respectively | 5 | 3 | 4 |
Prior years | 2 | 1 | 2 |
Revolving | 4 | 4 | 5 |
Total retail customer receivables | 67 | 65 | 77 |
Retail Customer Receivables | Agriculture and Turf | 90 Days or Greater Past Due | |||
Credit Quality Analysis | |||
2021 and 2020, respectively | 1 | ||
2020 and 2019, respectively | 1 | 1 | |
2019 and 2018, respectively | 1 | ||
Total retail customer receivables | 1 | 1 | 2 |
Retail Customer Receivables | Agriculture and Turf | Current | |||
Credit Quality Analysis | |||
2022 and 2021, respectively | 5,540 | 12,877 | 6,017 |
2021 and 2020, respectively | 10,141 | 6,676 | 8,375 |
2020 and 2019, respectively | 5,318 | 3,463 | 4,436 |
2019 and 2018, respectively | 2,684 | 1,738 | 2,402 |
2018 and 2017, respectively | 1,286 | 728 | 1,136 |
Prior years | 723 | 211 | 494 |
Revolving | 3,381 | 3,704 | 3,221 |
Total retail customer receivables | 29,073 | 29,397 | 26,081 |
Retail Customer Receivables | Agriculture and Turf | Non-performing | |||
Credit Quality Analysis | |||
2022 and 2021, respectively | 3 | 23 | 2 |
2021 and 2020, respectively | 40 | 57 | 51 |
2020 and 2019, respectively | 44 | 53 | 69 |
2019 and 2018, respectively | 41 | 32 | 54 |
2018 and 2017, respectively | 25 | 17 | 29 |
Prior years | 31 | 23 | 33 |
Revolving | 14 | 7 | 16 |
Total retail customer receivables | 198 | 212 | 254 |
Retail Customer Receivables | Construction and Forestry | 30-59 Days Past Due | |||
Credit Quality Analysis | |||
2022 and 2021, respectively | 20 | 50 | 21 |
2021 and 2020, respectively | 52 | 40 | 43 |
2020 and 2019, respectively | 33 | 27 | 35 |
2019 and 2018, respectively | 17 | 7 | 14 |
2018 and 2017, respectively | 6 | 4 | 5 |
Prior years | 2 | 1 | 1 |
Revolving | 3 | 3 | 3 |
Total retail customer receivables | 133 | 132 | 122 |
Retail Customer Receivables | Construction and Forestry | 60-89 Days Past Due | |||
Credit Quality Analysis | |||
2022 and 2021, respectively | 7 | 15 | 6 |
2021 and 2020, respectively | 25 | 11 | 13 |
2020 and 2019, respectively | 15 | 9 | 12 |
2019 and 2018, respectively | 6 | 6 | 7 |
2018 and 2017, respectively | 1 | 1 | 3 |
Prior years | 1 | 1 | |
Revolving | 1 | 1 | 1 |
Total retail customer receivables | 56 | 43 | 43 |
Retail Customer Receivables | Construction and Forestry | 90 Days or Greater Past Due | |||
Credit Quality Analysis | |||
2022 and 2021, respectively | 1 | ||
2021 and 2020, respectively | 1 | 2 | 2 |
2020 and 2019, respectively | 1 | 3 | 10 |
2019 and 2018, respectively | 1 | 3 | 5 |
2018 and 2017, respectively | 1 | 4 | 6 |
Prior years | 5 | 2 | 3 |
Total retail customer receivables | 9 | 15 | 26 |
Retail Customer Receivables | Construction and Forestry | Current | |||
Credit Quality Analysis | |||
2022 and 2021, respectively | 1,506 | 3,122 | 1,568 |
2021 and 2020, respectively | 2,404 | 1,575 | 2,077 |
2020 and 2019, respectively | 1,211 | 754 | 1,106 |
2019 and 2018, respectively | 577 | 273 | 454 |
2018 and 2017, respectively | 234 | 57 | 118 |
Prior years | 105 | 7 | 22 |
Revolving | 91 | 92 | 81 |
Total retail customer receivables | 6,128 | 5,880 | 5,426 |
Retail Customer Receivables | Construction and Forestry | Non-performing | |||
Credit Quality Analysis | |||
2022 and 2021, respectively | 3 | 26 | 1 |
2021 and 2020, respectively | 46 | 56 | 38 |
2020 and 2019, respectively | 50 | 39 | 37 |
2019 and 2018, respectively | 29 | 17 | 22 |
2018 and 2017, respectively | 12 | 7 | 11 |
Prior years | 5 | 3 | 7 |
Revolving | 1 | 1 | |
Total retail customer receivables | $ 146 | $ 148 | $ 117 |
FINANCING RECEIVABLES - Wholesa
FINANCING RECEIVABLES - Wholesale Receivables Credit Quality Analysis (Details) - USD ($) $ in Millions | May 01, 2022 | Oct. 31, 2021 | May 02, 2021 |
Credit Quality Analysis | |||
Total wholesale receivables | $ 38,348 | $ 35,279 | |
Wholesale Receivables | |||
Credit Quality Analysis | |||
2022 and 2021, respectively | 230 | $ 387 | 196 |
2021 and 2020, respectively | 190 | 87 | 154 |
2020 and 2019, respectively | 47 | 41 | 92 |
2019 and 2018, respectively | 15 | 9 | 14 |
2018 and 2017, respectively | 1 | 4 | 5 |
Prior years | 4 | 2 | 4 |
Revolving | 1,873 | 2,036 | 2,487 |
Total wholesale receivables | 2,360 | 2,566 | 2,952 |
Wholesale Receivables | Agriculture and Turf | Current | |||
Credit Quality Analysis | |||
2022 and 2021, respectively | 224 | 346 | 191 |
2021 and 2020, respectively | 155 | 80 | 144 |
2020 and 2019, respectively | 43 | 22 | 55 |
2019 and 2018, respectively | 8 | 9 | 13 |
2018 and 2017, respectively | 1 | 3 | 4 |
Prior years | 2 | 1 | |
Revolving | 1,605 | 1,696 | 2,146 |
Total wholesale receivables | 2,038 | 2,156 | 2,554 |
Wholesale Receivables | Agriculture and Turf | Non-performing | |||
Credit Quality Analysis | |||
2020 and 2019, respectively | 12 | 22 | |
2019 and 2018, respectively | 5 | ||
Total wholesale receivables | 5 | 12 | 22 |
Wholesale Receivables | Construction and Forestry | 30+ days past due | |||
Credit Quality Analysis | |||
Prior years | 1 | 1 | |
Total wholesale receivables | 1 | 1 | |
Wholesale Receivables | Construction and Forestry | Current | |||
Credit Quality Analysis | |||
2022 and 2021, respectively | 6 | 41 | 5 |
2021 and 2020, respectively | 35 | 7 | 10 |
2020 and 2019, respectively | 4 | 7 | 15 |
2019 and 2018, respectively | 2 | 1 | |
2018 and 2017, respectively | 1 | 1 | |
Prior years | 1 | 1 | 3 |
Revolving | 268 | 340 | 341 |
Total wholesale receivables | $ 316 | $ 397 | $ 376 |
FINANCING RECEIVABLES - Allowan
FINANCING RECEIVABLES - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | Oct. 31, 2021 | |
Allowance: | |||||
Beginning of period balance | $ 158 | $ 211 | $ 166 | $ 184 | |
Provision (credit) | 42 | (23) | 43 | (30) | |
Write-offs | (26) | (24) | (47) | (37) | |
Recoveries | 12 | 14 | 24 | 29 | |
Translation adjustments | 4 | 4 | 1 | ||
End of period balance | 190 | 178 | 190 | 178 | |
Financing receivables: | |||||
End of period balance | 38,348 | 35,279 | 38,348 | 35,279 | |
Cumulative Effect from Adoption | ASU 2016-13 | |||||
Allowance: | |||||
Beginning of period balance | 31 | ||||
Retail Customer Receivables | |||||
Financing receivables: | |||||
End of period balance | 35,988 | 32,327 | 35,988 | 32,327 | $ 36,058 |
Retail Notes and Financing Leases | |||||
Allowance: | |||||
Beginning of period balance | 138 | 180 | 138 | 133 | |
Provision (credit) | 39 | (17) | 52 | (13) | |
Write-offs | (18) | (15) | (35) | (23) | |
Recoveries | 5 | 4 | 9 | 10 | |
Translation adjustments | 4 | 4 | 1 | ||
End of period balance | 168 | 152 | 168 | 152 | |
Financing receivables: | |||||
End of period balance | 32,481 | 28,979 | 32,481 | 28,979 | |
Retail Notes and Financing Leases | Cumulative Effect from Adoption | ASU 2016-13 | |||||
Allowance: | |||||
Beginning of period balance | 44 | ||||
Revolving Charge Accounts | |||||
Allowance: | |||||
Beginning of period balance | 15 | 24 | 21 | 43 | |
Provision (credit) | 3 | (6) | (7) | (16) | |
Write-offs | (8) | (9) | (12) | (14) | |
Recoveries | 7 | 10 | 15 | 19 | |
End of period balance | 17 | 19 | 17 | 19 | |
Financing receivables: | |||||
End of period balance | 3,507 | 3,348 | 3,507 | 3,348 | |
Revolving Charge Accounts | Cumulative Effect from Adoption | ASU 2016-13 | |||||
Allowance: | |||||
Beginning of period balance | (13) | ||||
Wholesale Receivables | |||||
Allowance: | |||||
Beginning of period balance | 5 | 7 | 7 | 8 | |
Provision (credit) | (2) | (1) | |||
End of period balance | 5 | 7 | 5 | 7 | |
Financing receivables: | |||||
End of period balance | $ 2,360 | $ 2,952 | $ 2,360 | $ 2,952 | $ 2,566 |
FINANCING RECEIVABLES - Trouble
FINANCING RECEIVABLES - Troubled Debt Restructuring (Details) $ in Millions | 6 Months Ended | |
May 01, 2022USD ($)item | May 02, 2021USD ($)item | |
Financing Receivables Related to Troubled Debt Restructurings | ||
Financing receivable contracts in troubled debt restructuring, number | item | 184 | 199 |
Financing receivables in troubled debt restructurings, aggregate balances, pre-modification | $ 8 | $ 8 |
Financing receivables in troubled debt restructurings, aggregate balances, post-modification | 7 | $ 7 |
Commitments to lend additional funds to borrowers whose accounts were modified in troubled debt restructurings | $ 0 |
SECURITIZATION OF FINANCING R_3
SECURITIZATION OF FINANCING RECEIVABLES (Details) - USD ($) $ in Millions | May 01, 2022 | Oct. 31, 2021 | May 02, 2021 |
Securitization Transactions | |||
Short-term securitization borrowings | $ 4,006 | $ 4,605 | $ 4,106 |
Accrued interest on borrowings - securitization transactions | 2 | 2 | 3 |
Total liabilities related to restricted securitized assets - securitization transactions | 4,008 | 4,607 | 4,109 |
Securitized | |||
Securitization Transactions | |||
Financing receivables securitized (retail notes) | 4,085 | 4,673 | 4,122 |
Allowance for credit losses - securitization transactions | (12) | (14) | (15) |
Other assets (primarily restricted cash) - securitization transactions | 124 | 107 | 91 |
Total restricted securitized assets - securitization transactions | $ 4,197 | $ 4,766 | $ 4,198 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | May 01, 2022 | Oct. 31, 2021 | May 02, 2021 |
INVENTORIES | |||
Raw materials and supplies | $ 4,384 | $ 3,524 | $ 2,469 |
Work-in-process | 1,640 | 994 | 967 |
Finished goods and parts | 5,434 | 4,373 | 4,334 |
Total FIFO value | 11,458 | 8,891 | 7,770 |
Less adjustment to LIFO value | 2,428 | 2,110 | 1,728 |
Inventories | $ 9,030 | $ 6,781 | $ 6,042 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS-NET - Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | |
May 01, 2022 | May 02, 2021 | |
Changes in Amounts of Goodwill | ||
Goodwill - net, beginning balance | $ 3,291 | $ 3,081 |
Acquisitions | 791 | 12 |
Translation adjustments | (270) | 97 |
Goodwill - net, ending balance | 3,812 | 3,190 |
Accumulated goodwill impairment losses | 0 | 0 |
Production & Precision Ag (PPA) | ||
Changes in Amounts of Goodwill | ||
Goodwill - net, beginning balance | 542 | 333 |
Acquisitions | 122 | 12 |
Translation adjustments | (11) | 10 |
Goodwill - net, ending balance | 653 | 355 |
Small Ag & Turf (SAT) | ||
Changes in Amounts of Goodwill | ||
Goodwill - net, beginning balance | 265 | 268 |
Acquisitions | 69 | |
Translation adjustments | (7) | (2) |
Goodwill - net, ending balance | 327 | 266 |
Construction & Forestry (CF) | ||
Changes in Amounts of Goodwill | ||
Goodwill - net, beginning balance | 2,484 | 2,480 |
Acquisitions | 600 | |
Translation adjustments | (252) | 89 |
Goodwill - net, ending balance | $ 2,832 | $ 2,569 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS-NET - Intangible Assets (Details) - USD ($) $ in Millions | May 01, 2022 | Oct. 31, 2021 | May 02, 2021 |
Amortized intangible assets: | |||
Total at cost | $ 1,870 | $ 1,646 | $ 1,646 |
Total accumulated amortization | 518 | 494 | 459 |
Amortized intangible assets - net | 1,352 | 1,152 | 1,187 |
Unamortized intangible assets: | |||
Other intangible assets - net | 1,352 | 1,275 | 1,310 |
Customer Lists and Relationships | |||
Amortized intangible assets: | |||
Total at cost | 520 | 542 | 549 |
Total accumulated amortization | 158 | 151 | 136 |
Technology, Patents, Trademarks and Other | |||
Amortized intangible assets: | |||
Total at cost | 1,350 | 1,104 | 1,097 |
Total accumulated amortization | $ 360 | 343 | 323 |
In-process Research and Development | |||
Unamortized intangible assets: | |||
Unamortized intangible assets | $ 123 | $ 123 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS-NET - Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | |
Amortized Intangible Assets: | ||||
Amortization expense of other intangible assets | $ 34 | $ 27 | $ 62 | $ 62 |
Amortization expense of other intangible assets - remainder of 2022 | 107 | 107 | ||
Amortization expense of other intangible assets - 2023 | 167 | 167 | ||
Amortization expense of other intangible assets - 2024 | 163 | 163 | ||
Amortization expense of other intangible assets - 2025 | 135 | 135 | ||
Amortization expense of other intangible assets - 2026 | 116 | 116 | ||
Amortization expense of other intangible assets - 2027 | $ 114 | $ 114 |
TOTAL SHORT-TERM BORROWINGS (De
TOTAL SHORT-TERM BORROWINGS (Details) - USD ($) $ in Millions | May 01, 2022 | Oct. 31, 2021 | May 02, 2021 |
Short-term borrowings | |||
Short-term borrowings | $ 12,413 | $ 10,919 | $ 9,911 |
Short-term securitization borrowings | 4,006 | 4,605 | 4,106 |
Total short-term borrowings | 16,419 | 15,524 | 14,017 |
Equipment Operations | |||
Short-term borrowings | |||
Short-term borrowings | 1,554 | 1,509 | 352 |
Short-term securitization borrowings | 5 | 10 | 14 |
Equipment Operations | Notes Payable to Banks | |||
Short-term borrowings | |||
Short-term borrowings | 407 | 273 | 122 |
Equipment Operations | Finance Lease Obligations Due Within One Year | |||
Short-term borrowings | |||
Short-term borrowings | 21 | 23 | 24 |
Equipment Operations | Long-term Borrowings Due Within One Year | |||
Short-term borrowings | |||
Short-term borrowings | 1,126 | 1,213 | 206 |
Financial Services | |||
Short-term borrowings | |||
Short-term borrowings | 10,859 | 9,410 | 9,559 |
Short-term securitization borrowings | 4,001 | 4,595 | 4,092 |
Financial Services | Commercial Paper | |||
Short-term borrowings | |||
Short-term borrowings | 3,403 | 2,230 | 2,259 |
Financial Services | Notes Payable to Banks | |||
Short-term borrowings | |||
Short-term borrowings | 148 | 63 | 89 |
Financial Services | Long-term Borrowings Due Within One Year | |||
Short-term borrowings | |||
Short-term borrowings | $ 7,308 | $ 7,117 | $ 7,211 |
LONG-TERM BORROWINGS (Details)
LONG-TERM BORROWINGS (Details) € in Millions, $ in Millions | Apr. 12, 2022USD ($) | May 01, 2022USD ($) | May 01, 2022EUR (€) | Oct. 31, 2021USD ($) | Oct. 31, 2021EUR (€) | May 02, 2021USD ($) | May 02, 2021EUR (€) |
Long-term borrowings | |||||||
Total long-term borrowings | $ 32,447 | $ 32,888 | $ 33,346 | ||||
Equipment Operations | |||||||
Long-term borrowings | |||||||
Less debt issuance costs and debt discounts | (51) | (54) | (58) | ||||
Total long-term borrowings | 8,556 | 8,915 | 10,124 | ||||
Equipment Operations | 2.60% Notes Due 2022 | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 1,000 | ||||||
Debt instrument, stated interest rate | 2.60% | 2.60% | |||||
Equipment Operations | 2.75% Notes Due 2025 | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 700 | $ 700 | $ 700 | ||||
Debt instrument, stated interest rate | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | |
Equipment Operations | 6.55% Debentures Due 2028 | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 200 | $ 200 | $ 200 | ||||
Debt instrument, stated interest rate | 6.55% | 6.55% | 6.55% | 6.55% | 6.55% | 6.55% | |
Equipment Operations | 5.375% Notes Due 2029 | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 500 | $ 500 | $ 500 | ||||
Debt instrument, stated interest rate | 5.375% | 5.375% | 5.375% | 5.375% | 5.375% | 5.375% | |
Equipment Operations | 3.10% Notes Due 2030 | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 700 | $ 700 | $ 700 | ||||
Debt instrument, stated interest rate | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | 3.10% | |
Equipment Operations | 8.10% Debentures Due 2030 | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 250 | $ 250 | $ 250 | ||||
Debt instrument, stated interest rate | 8.10% | 8.10% | 8.10% | 8.10% | 8.10% | 8.10% | |
Equipment Operations | 7.125% Notes Due 2031 | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 300 | $ 300 | $ 300 | ||||
Debt instrument, stated interest rate | 7.125% | 7.125% | 7.125% | 7.125% | 7.125% | 7.125% | |
Equipment Operations | 3.90% Notes Due 2042 | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 1,250 | $ 1,250 | $ 1,250 | ||||
Debt instrument, stated interest rate | 3.90% | 3.90% | 3.90% | 3.90% | 3.90% | 3.90% | |
Equipment Operations | 2.875% Notes Due 2049 | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 500 | $ 500 | $ 500 | ||||
Debt instrument, stated interest rate | 2.875% | 2.875% | 2.875% | 2.875% | 2.875% | 2.875% | |
Equipment Operations | 3.75% Notes Due 2050 | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 850 | $ 850 | $ 850 | ||||
Debt instrument, stated interest rate | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | |
Equipment Operations | .5% Notes Due 2023 | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 525 | $ 584 | $ 606 | ||||
Debt instrument, stated interest rate | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | |
Principal amount | € | € 500 | € 500 | € 500 | ||||
Equipment Operations | 1.375% Notes Due 2024 | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 840 | $ 934 | $ 969 | ||||
Debt instrument, stated interest rate | 1.375% | 1.375% | 1.375% | 1.375% | 1.375% | 1.375% | |
Principal amount | € | € 800 | € 800 | € 800 | ||||
Equipment Operations | 1.85% Notes Due 2028 | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 630 | $ 701 | $ 727 | ||||
Debt instrument, stated interest rate | 1.85% | 1.85% | 1.85% | 1.85% | 1.85% | 1.85% | |
Principal amount | € | € 600 | € 600 | € 600 | ||||
Equipment Operations | 2.20% Notes Due 2032 | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 630 | $ 701 | $ 727 | ||||
Debt instrument, stated interest rate | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% | 2.20% | |
Principal amount | € | € 600 | € 600 | € 600 | ||||
Equipment Operations | 1.65% Notes Due 2039 | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 682 | $ 759 | $ 788 | ||||
Debt instrument, stated interest rate | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% | 1.65% | |
Principal amount | € | € 650 | € 650 | € 650 | ||||
Equipment Operations | Other Notes | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 50 | $ 40 | $ 115 | ||||
Financial Services | |||||||
Long-term borrowings | |||||||
Less debt issuance costs and debt discounts | (65) | (64) | (60) | ||||
Total long-term borrowings | 23,891 | 23,973 | 23,222 | ||||
Financial Services | Medium-term Notes | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | 22,740 | 22,899 | 22,161 | ||||
Principal amount | 23,247 | 22,647 | 21,800 | ||||
Financial Services | Other Notes | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 1,216 | $ 1,138 | $ 1,121 | ||||
Financial Services | 3.35% Sustainability-Linked Medium Term Notes Due 2029 | |||||||
Long-term borrowings | |||||||
Long-term borrowings, gross | $ 600 | ||||||
Debt instrument, stated interest rate | 3.35% | ||||||
Financial Services | 3.35% Sustainability-Linked Medium Term Notes Due 2029 | Stated Sustainability Performance Target | |||||||
Long-term borrowings | |||||||
Interest rate increase (as a percent) | 0.25% |
LEASES - LESSOR - Lease Revenue
LEASES - LESSOR - Lease Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | |
LEASES - LESSOR | ||||
Sales-type and direct finance lease revenues | $ 35 | $ 34 | $ 74 | $ 70 |
Operating lease revenues | 330 | 358 | 665 | 721 |
Variable lease revenues | 7 | 6 | 14 | 12 |
Total lease revenues | $ 372 | $ 398 | $ 753 | $ 803 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Warranty (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | |
COMMITMENTS AND CONTINGENCIES | ||||
Historical claims rate, review period | 5 years | |||
Unamortized extended warranty premiums (deferred revenue) | $ 809 | $ 681 | $ 809 | $ 681 |
Change in Warranty Liability and Unearned Premiums | ||||
Beginning of period balance | 2,064 | 1,803 | 2,086 | 1,743 |
Payments | (224) | (202) | (417) | (417) |
Amortization of premiums received | (64) | (65) | (130) | (128) |
Accruals for warranties | 223 | 248 | 404 | 495 |
Premiums received | 91 | 90 | 174 | 163 |
Foreign exchange | 5 | 2 | (22) | 20 |
End of period balance | $ 2,095 | $ 1,876 | $ 2,095 | $ 1,876 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Other (Details) $ in Millions | 6 Months Ended |
May 01, 2022USD ($) | |
Long Term Purchase Commitments | |
Commitments for the construction and acquisition of property and equipment | $ 392 |
Restricted Assets and Other Contingent Liabilities | |
Other restricted assets | 69 |
Miscellaneous contingent liabilities | 75 |
Guarantees, Third-party Receivables | |
Guarantee Obligations | |
Guarantee obligations maximum exposure | 352 |
Guarantee obligations accrued losses | $ 4 |
Guarantee obligations term | 6 years |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Instruments (Details) - USD ($) $ in Millions | May 01, 2022 | Oct. 31, 2021 | May 02, 2021 |
Fair Values of Financial Instruments | |||
Financing receivables - net | $ 34,085 | $ 33,799 | $ 30,994 |
Financing receivables securitized - net | 4,073 | 4,659 | 4,107 |
Short-term securitization borrowings | 4,006 | 4,605 | 4,106 |
Long-term borrowings | 32,447 | 32,888 | 33,346 |
Level 2 | |||
Fair Values of Financial Instruments | |||
Long-term borrowings due within one year | 8,398 | 8,364 | 7,504 |
Long-term borrowings | 31,975 | 34,506 | 35,092 |
Level 3 | |||
Fair Values of Financial Instruments | |||
Financing receivables - net | 33,540 | 33,718 | 31,165 |
Financing receivables securitized - net | 4,016 | 4,704 | 4,188 |
Level 2 and Level 3 | |||
Fair Values of Financial Instruments | |||
Short-term securitization borrowings | 3,944 | 4,610 | 4,132 |
Carrying Value | |||
Fair Values of Financial Instruments | |||
Financing receivables - net | 34,085 | 33,799 | 30,994 |
Financing receivables securitized - net | 4,073 | 4,659 | 4,107 |
Short-term securitization borrowings | 4,006 | 4,605 | 4,106 |
Long-term borrowings due within one year | 8,434 | 8,330 | 7,417 |
Long-term borrowings | 32,410 | 32,850 | 33,301 |
Equipment Operations | |||
Fair Values of Financial Instruments | |||
Short-term securitization borrowings | 5 | 10 | 14 |
Long-term borrowings | 8,556 | 8,915 | 10,124 |
Equipment Operations | Level 2 | |||
Fair Values of Financial Instruments | |||
Long-term borrowings due within one year | 1,128 | 1,222 | 211 |
Long-term borrowings | 8,546 | 10,244 | 11,391 |
Equipment Operations | Level 3 | |||
Fair Values of Financial Instruments | |||
Short-term securitization borrowings | 6 | 10 | 15 |
Equipment Operations | Carrying Value | |||
Fair Values of Financial Instruments | |||
Short-term securitization borrowings | 5 | 10 | 14 |
Long-term borrowings due within one year | 1,126 | 1,213 | 206 |
Long-term borrowings | 8,519 | 8,877 | 10,079 |
Financial Services | |||
Fair Values of Financial Instruments | |||
Short-term securitization borrowings | 4,001 | 4,595 | 4,092 |
Long-term borrowings | 23,891 | 23,973 | 23,222 |
Financial Services | Level 2 | |||
Fair Values of Financial Instruments | |||
Short-term securitization borrowings | 3,938 | 4,600 | 4,117 |
Long-term borrowings due within one year | 7,270 | 7,142 | 7,293 |
Long-term borrowings | 23,429 | 24,262 | 23,701 |
Financial Services | Carrying Value | |||
Fair Values of Financial Instruments | |||
Short-term securitization borrowings | 4,001 | 4,595 | 4,092 |
Long-term borrowings due within one year | 7,308 | 7,117 | 7,211 |
Long-term borrowings | $ 23,891 | $ 23,973 | $ 23,222 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liaibilities - Recurring (Details) - USD ($) $ in Millions | May 01, 2022 | Oct. 31, 2021 | May 02, 2021 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | $ 682 | $ 728 | $ 668 |
Derivative assets | 407 | 275 | 402 |
Derivative liabilities | 780 | 228 | 223 |
Other Assets Member | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Derivative assets | 407 | 275 | 402 |
Accounts Payable and Accrued Expenses | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Derivative liabilities | 780 | 228 | 223 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 126 | 136 | 132 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | U.S. Equity Fund | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 65 | 75 | 71 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | International Equity Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 2 | 2 | 2 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 1 | U.S. Government Debt Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 59 | 59 | 59 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 556 | 592 | 536 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Other Assets Member | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Derivative assets | 407 | 275 | 402 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Accounts Payable and Accrued Expenses | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Derivative liabilities | 780 | 228 | 223 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | U.S. Government Debt Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 130 | 139 | 121 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Municipal Debt Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 67 | 73 | 69 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Corporate Debt Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 206 | 224 | 202 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | International Debt Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 2 | 2 | 4 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 2 | Mortgage-backed Securities | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Marketable securities | 151 | $ 154 | $ 140 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Level 3 | Accounts Payable and Accrued Expenses | |||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||
Deferred consideration | $ 262 |
FAIR VALUE MEASUREMENTS - Contr
FAIR VALUE MEASUREMENTS - Contractual Maturities of Debt Securities (Details) $ in Millions | May 01, 2022USD ($) |
Contractual Maturities of Debt Securities, Amortized Cost | |
Amortized cost, due in one year or less | $ 27 |
Amortized cost, due after one through five years | 92 |
Amortized cost, due after five through 10 years | 171 |
Amortized cost, due after 10 years | 221 |
Amortized cost, mortgage-backed securities | 167 |
Amortized cost, debt securities | 678 |
Contractual Maturities of Debt Securities, Fair Value | |
Fair value, due in one year or less | 27 |
Fair value, due after one through five years | 90 |
Fair value, due after five through 10 years | 155 |
Fair value, due after 10 years | 192 |
Fair value, mortgage-backed securities | 151 |
Fair value, debt securities | $ 615 |
FAIR VALUE MEASUREMENTS - Nonre
FAIR VALUE MEASUREMENTS - Nonrecurring Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 01, 2022 | May 02, 2021 | Oct. 31, 2021 | |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||
Inventories | $ 9,030 | $ 9,030 | $ 6,042 | $ 6,781 |
Fair Value, Nonrecurring Measurements | Level 3 | ||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||
Inventories | 19 | 19 | ||
Losses, Inventories | 8 | 8 | ||
Property and equipment - net | 15 | 15 | 41 | |
Losses, Property and equipment - net | 41 | 41 | 44 | |
Losses, Other intangible assets - net | $ 28 | $ 28 | ||
Other assets | $ 1 | |||
Losses, Other assets | $ 6 |
DERIVATIVE INSTRUMENTS - Cash F
DERIVATIVE INSTRUMENTS - Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 01, 2022 | Oct. 31, 2021 | May 02, 2021 | |
Cash Flow Hedges | ||||
Cash flow hedge gain (loss) recorded in OCI expected to be reclassified within twelve months | $ 23 | |||
Gains or losses reclassified from OCI to earnings | 0 | |||
Interest Rate Contracts | ||||
Cash Flow Hedges | ||||
Cash flow hedges, recognized in OCI | $ 35 | 50 | ||
Interest Rate Contracts | Cash Flow Hedges Member | Designated as Hedging Instruments | ||||
Cash Flow Hedges | ||||
Notional amount of cash flow hedge derivatives | $ 2,450 | $ 2,450 | $ 2,700 | $ 1,850 |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Value Hedges (Details) - Interest Rate Contracts - USD ($) $ in Millions | May 01, 2022 | Oct. 31, 2021 | May 02, 2021 |
Fair Value Hedges Member | Designated as Hedging Instruments | |||
Fair Value Hedges | |||
Notional amount of interest rate fair value hedge derivatives | $ 8,655 | $ 8,043 | $ 8,340 |
Long-term Borrowings Due in One Year | |||
Borrowings Designated in Fair Value Hedging Relationships | |||
Carrying Amount of Hedged Item | 185 | 189 | 163 |
Active Hedging Relationships | 1 | 3 | 1 |
Discontinued Relationships | 7 | (2) | (1) |
Total | 8 | 1 | |
Long-term Borrowings | |||
Borrowings Designated in Fair Value Hedging Relationships | |||
Carrying Amount of Hedged Item | 7,933 | 8,070 | 8,502 |
Active Hedging Relationships | (613) | 29 | 190 |
Discontinued Relationships | 106 | 223 | 171 |
Total | $ (507) | $ 252 | $ 361 |
DERIVATIVE INSTRUMENTS - Not De
DERIVATIVE INSTRUMENTS - Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instruments - USD ($) $ in Millions | May 01, 2022 | Oct. 31, 2021 | May 02, 2021 |
Interest Rate Contracts | |||
Derivatives Not Designated as Hedging Instruments | |||
Notional amounts | $ 9,912 | $ 10,848 | $ 8,694 |
Foreign Exchange Contracts | |||
Derivatives Not Designated as Hedging Instruments | |||
Notional amounts | 7,640 | 7,584 | 6,239 |
Cross-Currency Interest Rate Contracts | |||
Derivatives Not Designated as Hedging Instruments | |||
Notional amounts | $ 264 | $ 238 | $ 151 |
DERIVATIVE INSTRUMENTS - Fair_2
DERIVATIVE INSTRUMENTS - Fair Value (Details) - USD ($) $ in Millions | May 01, 2022 | Oct. 31, 2021 | May 02, 2021 |
Fair Value of Derivative Instruments | |||
Total derivative assets | $ 407 | $ 275 | $ 402 |
Total derivative liabilities | 780 | 228 | 223 |
Other Assets Member | |||
Fair Value of Derivative Instruments | |||
Total derivative assets | 407 | 275 | 402 |
Accounts Payable and Accrued Expenses | |||
Fair Value of Derivative Instruments | |||
Total derivative liabilities | 780 | 228 | 223 |
Designated as Hedging Instruments | Interest Rate Contracts | Other Assets Member | |||
Fair Value of Derivative Instruments | |||
Total derivative assets | 63 | 166 | 301 |
Designated as Hedging Instruments | Interest Rate Contracts | Accounts Payable and Accrued Expenses | |||
Fair Value of Derivative Instruments | |||
Total derivative liabilities | 591 | 99 | 80 |
Not Designated as Hedging Instruments | Other Assets Member | |||
Fair Value of Derivative Instruments | |||
Total derivative assets | 344 | 109 | 101 |
Not Designated as Hedging Instruments | Accounts Payable and Accrued Expenses | |||
Fair Value of Derivative Instruments | |||
Total derivative liabilities | 189 | 129 | 143 |
Not Designated as Hedging Instruments | Interest Rate Contracts | Other Assets Member | |||
Fair Value of Derivative Instruments | |||
Total derivative assets | 180 | 73 | 67 |
Not Designated as Hedging Instruments | Interest Rate Contracts | Accounts Payable and Accrued Expenses | |||
Fair Value of Derivative Instruments | |||
Total derivative liabilities | 75 | 33 | 52 |
Not Designated as Hedging Instruments | Foreign Exchange Contracts | Other Assets Member | |||
Fair Value of Derivative Instruments | |||
Total derivative assets | 125 | 31 | 30 |
Not Designated as Hedging Instruments | Foreign Exchange Contracts | Accounts Payable and Accrued Expenses | |||
Fair Value of Derivative Instruments | |||
Total derivative liabilities | 114 | 94 | 89 |
Not Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Other Assets Member | |||
Fair Value of Derivative Instruments | |||
Total derivative assets | $ 39 | 5 | 4 |
Not Designated as Hedging Instruments | Cross-Currency Interest Rate Contracts | Accounts Payable and Accrued Expenses | |||
Fair Value of Derivative Instruments | |||
Total derivative liabilities | $ 2 | $ 2 |
DERIVATIVE INSTRUMENTS - Gains
DERIVATIVE INSTRUMENTS - Gains (Losses) on Statement of Consolidated Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | |
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||||
Not designated as hedges, gains (losses) | $ 38 | $ (121) | $ 195 | $ (303) |
Interest Rate Contracts | ||||
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||||
Cash flow hedges, recognized in OCI | 35 | 50 | ||
Interest Rate Contracts | Net Sales Related to Derivative Instruments | ||||
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||||
Not designated as hedges, gains (losses) | 31 | 5 | 44 | 5 |
Interest Rate Contracts | Interest Expense Member | ||||
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||||
Fair value hedges, gains (losses) | (514) | (170) | (656) | (225) |
Cash flow hedges, reclassified from OCI | (1) | (4) | (3) | (9) |
Not designated as hedges, gains (losses) | 61 | 59 | (4) | |
Foreign Exchange Contracts | Net Sales Related to Derivative Instruments | ||||
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||||
Not designated as hedges, gains (losses) | (1) | (1) | ||
Foreign Exchange Contracts | Cost of Sales | ||||
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||||
Not designated as hedges, gains (losses) | (79) | (48) | (80) | (100) |
Foreign Exchange Contracts | Other Operating Expense | ||||
Classification and gains (losses) including accrued interest expense related to derivative instruments | ||||
Not designated as hedges, gains (losses) | $ 26 | $ (78) | $ 173 | $ (204) |
DERIVATIVE INSTRUMENTS - Counte
DERIVATIVE INSTRUMENTS - Counterparty Risk and Collateral (Details) - USD ($) $ in Millions | May 01, 2022 | Oct. 31, 2021 | May 02, 2021 |
Derivative instruments | |||
Fair value of derivatives with credit-risk-related contingent features in a liability position | $ 673 | $ 135 | $ 136 |
Cash collateral posted | 254 | 0 | 0 |
Derivative Assets | |||
Gross amounts recognized | 407 | 275 | 402 |
Netting arrangements | (110) | (105) | (125) |
Collateral received | (21) | ||
Net amount | 297 | 170 | 256 |
Derivative Liabilities | |||
Gross amounts recognized | 780 | 228 | 223 |
Netting arrangements | (110) | (105) | (125) |
Collateral paid | (254) | (5) | (1) |
Net amount | 416 | 118 | 97 |
International Futures Market | |||
Derivative instruments | |||
Collateral to participate in an international futures market | $ 8 | $ 8 | $ 8 |
STOCK OPTION AND RESTRICTED S_2
STOCK OPTION AND RESTRICTED STOCK AWARDS (Details) - $ / shares shares in Thousands | 1 Months Ended | 6 Months Ended |
Dec. 26, 2021 | May 01, 2022 | |
Share-based Compensation, Aggregate Disclosures | ||
Number of additional shares authorized for grant under the equity incentive plan | 17,200 | |
Stock Options | ||
Share-based Compensation, Aggregate Disclosures | ||
Options granted (in shares) | 197 | |
Options granted, exercise price (in dollars per share) | $ 343.94 | |
Options granted, fair value (in dollars per share) | $ 89.20 | |
Options outstanding (in shares) | 2,200 | |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 152.99 | |
Fair value assumptions method used | lattice model | |
Restricted Stock Units | ||
Share-based Compensation, Aggregate Disclosures | ||
Restricted stock units granted (in shares) | 160 | |
Restricted Stock Units Subject to Service-based Conditions | ||
Share-based Compensation, Aggregate Disclosures | ||
Restricted stock units granted (in shares) | 123 | |
Restricted stock units granted, weighted-average fair value (in dollars per unit) | $ 345.94 | |
Restricted Stock Units Subject to Performance/Service-based Conditions | ||
Share-based Compensation, Aggregate Disclosures | ||
Restricted stock units granted (in shares) | 37 | |
Restricted stock units granted, weighted-average fair value (in dollars per unit) | $ 331.47 |
ACQUISITIONS - Kreisel Acquisit
ACQUISITIONS - Kreisel Acquisition (Details) - USD ($) $ in Millions | Feb. 07, 2022 | May 01, 2022 | May 02, 2021 | Oct. 31, 2021 | Nov. 01, 2020 |
Acquisitions | |||||
Cash purchase price, net of cash acquired | $ 473 | $ 19 | |||
Preliminary Asset and Liability Fair Values at the Acquisition Date | |||||
Goodwill | $ 3,812 | $ 3,190 | $ 3,291 | $ 3,081 | |
Kreisel | |||||
Acquisitions | |||||
Cash purchase price, net of cash acquired | $ 276 | ||||
Cash consideration for acquired equity interests | 253 | ||||
Cash consideration to reduce the option price | 21 | ||||
Preliminary Asset and Liability Fair Values at the Acquisition Date | |||||
Trade accounts and notes receivable | 2 | ||||
Other receivables | 11 | ||||
Inventories | 11 | ||||
Property and equipment | 11 | ||||
Goodwill | 217 | ||||
Other intangible assets | 178 | ||||
Other assets | 6 | ||||
Total assets | 436 | ||||
Accounts payable and accrued expenses | 28 | ||||
Deferred income taxes | 36 | ||||
Redeemable noncontrolling interest | $ 96 | ||||
Identifiable Intangible Assets | |||||
Weighted-average amortization period (in years) | 12 years |
ACQUISITIONS - Acquisition of E
ACQUISITIONS - Acquisition of Excavator Factories (Details) - USD ($) $ in Millions | Feb. 28, 2022 | May 01, 2022 | Oct. 31, 2021 | May 02, 2021 | Nov. 01, 2020 |
Invested Capital | |||||
Non-cash gain on remeasurement of previously held equity investment, pretax | $ 326 | ||||
Preliminary Asset and Liability Fair Values at the Acquisition Date | |||||
Goodwill | 3,812 | $ 3,291 | $ 3,190 | $ 3,081 | |
Construction & Forestry (CF) | |||||
Preliminary Asset and Liability Fair Values at the Acquisition Date | |||||
Goodwill | 2,832 | $ 2,484 | $ 2,569 | $ 2,480 | |
Excavator Factories | |||||
Invested Capital | |||||
Deferred consideration | $ 271 | ||||
Total purchase price consideration | 546 | ||||
Less: Cash obtained | (187) | ||||
Less: Settlement of intercompany balances | (113) | ||||
Net purchase price consideration | 246 | ||||
Fair value of previously held equity investment | 444 | ||||
Total invested capital | 690 | ||||
Net present value of deferred consideration | $ 262 | ||||
Non-cash gain on remeasurement of previously held equity investment, after-tax | 326 | ||||
Preliminary Asset and Liability Fair Values at the Acquisition Date | |||||
Other receivables | 29 | ||||
Inventories | 286 | ||||
Property and equipment | 182 | ||||
Goodwill | 534 | ||||
Other intangible assets | 70 | ||||
Deferred income taxes | 49 | ||||
Total assets | 1,150 | ||||
Accounts payable and accrued expenses | 297 | ||||
Long-term borrowings | 163 | ||||
Total liabilities | $ 460 | ||||
Identifiable Intangible Assets | |||||
Weighted-average amortization period (in years) | 10 years | ||||
Excavator Factories | Other Income | Construction & Forestry (CF) | |||||
Invested Capital | |||||
Non-cash gain on remeasurement of previously held equity investment, pretax | $ 326 | ||||
Excavator Factories | John Deere-branded Excavators, Components, and Service Parts | |||||
Invested Capital | |||||
Price increases (as a percent) | 27.00% | ||||
Excavator Factories | John Deere-branded Excavators, Components, and Service Parts | Minimum | |||||
Invested Capital | |||||
Supply agreement period | 5 years | ||||
Excavator Factories | John Deere-branded Excavators, Components, and Service Parts | Maximum | |||||
Invested Capital | |||||
Supply agreement period | 30 years | ||||
Excavator Factories | License Agreement | |||||
Invested Capital | |||||
Cash consideration | $ 70 | ||||
Excavator Factories | Factories | |||||
Invested Capital | |||||
Cash consideration | $ 205 |
ACQUISITIONS - Other Acquisitio
ACQUISITIONS - Other Acquisitions (Details) - USD ($) $ in Millions | 6 Months Ended | |||
May 01, 2022 | May 02, 2021 | Oct. 31, 2021 | Nov. 01, 2020 | |
Acquisitions | ||||
Cash purchase price, net of cash acquired | $ 473 | $ 19 | ||
Preliminary Asset and Liability Fair Values at the Acquisition Date | ||||
Goodwill | $ 3,812 | $ 3,190 | $ 3,291 | $ 3,081 |
GUSS Automation | ||||
Acquisitions | ||||
Equity method investment ownership acquired (as a percent) | 40.00% | |||
Other Acquisitions | ||||
Acquisitions | ||||
Cash purchase price, net of cash acquired | $ 109 | |||
Cash acquired | 3 | |||
Preliminary Asset and Liability Fair Values at the Acquisition Date | ||||
Trade accounts and notes receivable | 7 | |||
Inventories | 8 | |||
Property and equipment | 4 | |||
Goodwill | 40 | |||
Other intangible assets | 20 | |||
Other assets | 50 | |||
Total assets | 129 | |||
Accounts payable and accrued expenses | 6 | |||
Deferred income taxes | 5 | |||
Total liabilities | 11 | |||
Redeemable noncontrolling interest | $ 9 | |||
Identifiable Intangible Assets | ||||
Weighted-average amortization period (in years) | 6 years | |||
SureFire Ag Systems and SureFire Electronics | ||||
Acquisitions | ||||
Interest acquired (as a percent) | 80.00% |
SPECIAL ITEMS - Impact of Event
SPECIAL ITEMS - Impact of Events in Russia and Ukraine (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 60 Months Ended | ||
May 01, 2022 | May 02, 2021 | May 01, 2022 | May 02, 2021 | Oct. 31, 2021 | |
Special Items | |||||
Allowance for credit losses | $ 42 | $ (23) | $ 43 | $ (30) | |
Reserves and Impairments | |||||
Special Items | |||||
Total Russia/Ukraine events pretax expense | 120 | ||||
Net tax impact | (14) | ||||
Total Russia/Ukraine events after-tax expense | 106 | ||||
Reserves and Impairments | Cost of Sales | |||||
Special Items | |||||
Inventory reserve | 8 | ||||
Fixed asset impairment | 41 | ||||
Intangible asset impairment | 28 | ||||
Reserves and Impairments | Selling, Administrative and General Expenses | |||||
Special Items | |||||
Allowance for credit losses | 26 | ||||
Reserves and Impairments | Other Operating Expenses | |||||
Special Items | |||||
Contingent liabilities | 17 | ||||
Reserves and Impairments | Production & Precision Ag (PPA) | |||||
Special Items | |||||
Total Russia/Ukraine events pretax expense | 46 | ||||
Reserves and Impairments | Production & Precision Ag (PPA) | Cost of Sales | |||||
Special Items | |||||
Inventory reserve | 6 | ||||
Fixed asset impairment | 30 | ||||
Reserves and Impairments | Production & Precision Ag (PPA) | Other Operating Expenses | |||||
Special Items | |||||
Contingent liabilities | 10 | ||||
Reserves and Impairments | Small Ag & Turf (SAT) | |||||
Special Items | |||||
Total Russia/Ukraine events pretax expense | 1 | ||||
Reserves and Impairments | Small Ag & Turf (SAT) | Other Operating Expenses | |||||
Special Items | |||||
Contingent liabilities | 1 | ||||
Reserves and Impairments | Construction & Forestry (CF) | |||||
Special Items | |||||
Total Russia/Ukraine events pretax expense | 47 | ||||
Reserves and Impairments | Construction & Forestry (CF) | Cost of Sales | |||||
Special Items | |||||
Inventory reserve | 2 | ||||
Fixed asset impairment | 11 | ||||
Intangible asset impairment | 28 | ||||
Reserves and Impairments | Construction & Forestry (CF) | Other Operating Expenses | |||||
Special Items | |||||
Contingent liabilities | 6 | ||||
Reserves and Impairments | Financial Services (FS) | |||||
Special Items | |||||
Total Russia/Ukraine events pretax expense | 26 | ||||
Reserves and Impairments | Financial Services (FS) | Selling, Administrative and General Expenses | |||||
Special Items | |||||
Allowance for credit losses | 26 | ||||
Russia / Ukraine | |||||
Special Items | |||||
Net exposure | $ 454 | $ 454 | |||
Russia | |||||
Special Items | |||||
Net sales and revenues (as a percent) | 2.00% |
SPECIAL ITEMS - Gain on Previou
SPECIAL ITEMS - Gain on Previously Held Equity Investment (Details) - USD ($) $ in Millions | Feb. 28, 2022 | May 01, 2022 |
Special Items | ||
Non-cash gain on remeasurement of previously held equity investment, pretax | $ 326 | |
Excavator Factories | ||
Special Items | ||
Non-cash gain on remeasurement of previously held equity investment, after-tax | $ 326 | |
Gain | Excavator Factories | ||
Special Items | ||
Non-cash gain on remeasurement of previously held equity investment, pretax | 326 | |
Non-cash gain on remeasurement of previously held equity investment, after-tax | $ 326 |
SPECIAL ITEMS - UAW Collective
SPECIAL ITEMS - UAW Collective Bargaining Agreement (Details) - UAW Collective Bargaining Arrangement | Nov. 17, 2021USD ($)facility | Jan. 30, 2022USD ($) |
Special Items | ||
Term of collective bargaining agreement | 6 years | |
Immediate wage increase (as a percent) | 10.00% | |
United States | ||
Special Items | ||
Number of facilities represented under collective bargaining agreement | facility | 14 | |
Ratification Bonus | ||
Special Items | ||
Ratification bonus payment per eligible employee | $ 8,500 | |
UAW ratification bonus | $ 90,000,000 |
SPECIAL ITEMS - 2021 Special It
SPECIAL ITEMS - 2021 Special Items (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jan. 31, 2021 | May 01, 2022 | May 02, 2021 | |
Special Items | |||
Long-lived asset impairments, pretax | $ 77 | $ 50 | |
Impairments and Other Benefit | Brazil | Foreign Tax Authority | |||
Special Items | |||
Indirect tax benefit, pretax | $ (58) | ||
Impairments and Other Benefit | German Asphalt Plant Factory | |||
Special Items | |||
Long-lived asset impairments, pretax | 38 | ||
Fixed asset impairment, after-tax | 38 | ||
Impairments and Other Benefit | Manufacturing Locations | |||
Special Items | |||
Long-lived asset impairments, pretax | $ 12 |
SPECIAL ITEMS - Operating Profi
SPECIAL ITEMS - Operating Profit Impact (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
May 01, 2022 | May 01, 2022 | May 02, 2021 | |
Special Items | |||
Gain on remeasurement of previously held equity investment | $ (326) | ||
Long-lived asset impairments, pretax | 77 | $ 50 | |
Period over period change | $ (206) | (108) | |
Production & Precision Ag (PPA) | |||
Special Items | |||
Period over period change | 46 | 147 | |
Small Ag & Turf (SAT) | |||
Special Items | |||
Period over period change | 1 | 7 | |
Construction & Forestry (CF) | |||
Special Items | |||
Period over period change | (279) | (288) | |
Financial Services (FS) | |||
Special Items | |||
Period over period change | 26 | 26 | |
Reserves, Impairments, Gain, and Ratification Bonus | |||
Special Items | |||
Total Russia/Ukraine events pretax expense | 120 | 120 | |
Total pretax expense (benefit) | (206) | (116) | |
Reserves, Impairments, Gain, and Ratification Bonus | Other Income | |||
Special Items | |||
Gain on remeasurement of previously held equity investment | (326) | (326) | |
Reserves, Impairments, Gain, and Ratification Bonus | Cost of Sales | |||
Special Items | |||
UAW ratification bonus | 90 | ||
Reserves, Impairments, Gain, and Ratification Bonus | Production & Precision Ag (PPA) | |||
Special Items | |||
Total Russia/Ukraine events pretax expense | 46 | 46 | |
Total pretax expense (benefit) | 46 | 99 | |
Reserves, Impairments, Gain, and Ratification Bonus | Production & Precision Ag (PPA) | Cost of Sales | |||
Special Items | |||
UAW ratification bonus | 53 | ||
Reserves, Impairments, Gain, and Ratification Bonus | Small Ag & Turf (SAT) | |||
Special Items | |||
Total Russia/Ukraine events pretax expense | 1 | 1 | |
Total pretax expense (benefit) | 1 | 10 | |
Reserves, Impairments, Gain, and Ratification Bonus | Small Ag & Turf (SAT) | Cost of Sales | |||
Special Items | |||
UAW ratification bonus | 9 | ||
Reserves, Impairments, Gain, and Ratification Bonus | Construction & Forestry (CF) | |||
Special Items | |||
Total Russia/Ukraine events pretax expense | 47 | 47 | |
Total pretax expense (benefit) | (279) | (251) | |
Reserves, Impairments, Gain, and Ratification Bonus | Construction & Forestry (CF) | Other Income | |||
Special Items | |||
Gain on remeasurement of previously held equity investment | (326) | (326) | |
Reserves, Impairments, Gain, and Ratification Bonus | Construction & Forestry (CF) | Cost of Sales | |||
Special Items | |||
UAW ratification bonus | 28 | ||
Reserves, Impairments, Gain, and Ratification Bonus | Financial Services (FS) | |||
Special Items | |||
Total Russia/Ukraine events pretax expense | 26 | 26 | |
Total pretax expense (benefit) | $ 26 | $ 26 | |
Impairments and Other Benefit | |||
Special Items | |||
Total pretax expense (benefit) | (8) | ||
Impairments and Other Benefit | Cost of Sales | |||
Special Items | |||
Long-lived asset impairments, pretax | 50 | ||
Indirect tax benefit, pretax | (58) | ||
Impairments and Other Benefit | Production & Precision Ag (PPA) | |||
Special Items | |||
Total pretax expense (benefit) | (48) | ||
Impairments and Other Benefit | Production & Precision Ag (PPA) | Cost of Sales | |||
Special Items | |||
Long-lived asset impairments, pretax | 5 | ||
Indirect tax benefit, pretax | (53) | ||
Impairments and Other Benefit | Small Ag & Turf (SAT) | |||
Special Items | |||
Total pretax expense (benefit) | 3 | ||
Impairments and Other Benefit | Small Ag & Turf (SAT) | Cost of Sales | |||
Special Items | |||
Long-lived asset impairments, pretax | 3 | ||
Impairments and Other Benefit | Construction & Forestry (CF) | |||
Special Items | |||
Total pretax expense (benefit) | 37 | ||
Impairments and Other Benefit | Construction & Forestry (CF) | Cost of Sales | |||
Special Items | |||
Long-lived asset impairments, pretax | 42 | ||
Indirect tax benefit, pretax | $ (5) |