News Release
Contact:
Jen Hartmann
Director, Public Relations
HartmannJenniferA@JohnDeere.com
Deere Reports Second Quarter Net Income of $2.370 Billion
Quarterly results underscore sound execution in the face of challenging market conditions.
Global agricultural and turf demand further softens while the construction industry remains stable.
Full-year net income forecast updated to approximately $7.0 billion.
MOLINE, Illinois (May 16, 2024) — Deere & Company reported net income of $2.370 billion for the
second quarter ended April 28, 2024, or $8.53 per share, compared with net income of $2.860 billion, or
$9.65 per share, for the quarter ended April 30, 2023. For the first six months of the year, net income
attributable to Deere & Company was $4.121 billion, or $14.74 per share, compared with $4.819 billion, or
$16.18 per share, for the same period last year.
Worldwide net sales and revenues decreased 12 percent, to $15.235 billion, for the second quarter of
2024 and decreased 9 percent, to $27.420 billion, for six months. Net sales were $13.610 billion for the
quarter and $24.097 billion for six months, compared with $16.079 billion and $27.481 billion last year.
“John Deere’s second-quarter results were noteworthy in light of continued changes across the global
agricultural sector,” stated John C. May, chairman and chief executive officer. “Thanks to the dedication
and hard work of our team, we continue to demonstrate structurally higher performance levels across
business cycles and are benefitting from stability in construction end markets amid declining agricultural
and turf demand.”
Company Outlook & Summary
Net income attributable to Deere & Company for fiscal 2024 is forecasted to be approximately
$7.0 billion.
“We are proactively managing our production and inventory levels to adapt to demand changes and
position the business for the future,” May explained. “Despite market conditions, we are committed to our
strategy and are actively investing in and deploying innovative technologies, products, and solutions to
ensure our customers' success.”
Deere & Compan
y
Second Quarter Year to Date
$ in millions, except per share amounts 2024 2023 % Chan
g
e 2024 2023 % Chan
g
e
Net sales and revenues $ 15,235 $ 17,387 -12% $ 27,420 $ 30,038 -9%
Net income $ 2,370 $ 2,860 -17% $ 4,121 $ 4,819 -14%
Full
y
diluted EPS $ 8.53 $ 9.65 $ 14.74 $ 16.18
Prior period results were affected by a special item. See Note 1 of the financial statements for further
details.
Production & Precision A
g
riculture
Second Quarter
$ in millions 2024 2023 % Chan
g
e
Net sales $ 6,581 $ 7,822 -16%
Operatin
g
profit $ 1,650 $ 2,170 -24%
Operatin
g
mar
g
in 25.1% 27.7%
Production and precision agriculture sales decreased for the quarter as a result of lower shipment
volumes, partially offset by price realization. Operating profit decreased due to lower shipment volumes
and higher production costs, partially offset by price realization.
Production & Precision Agriculture Operating Profit
Second Quarter 2024 Compared to Second Quarter 2023
$ in millions
Small A
g
riculture & Tur
f
Second Quarter
$ in millions 2024 2023 % Chan
g
e
Net sales $ 3,185 $ 4,145 -23%
Operatin
g
profit $ 571 $ 849 -33%
Operatin
g
mar
g
in 17.9% 20.5%
Small agriculture and turf sales decreased for the quarter as a result of lower shipment volumes,
partially offset by price realization. Operating profit decreased due to lower shipment volumes, partially
offset by price realization.
Small Agriculture & Turf Operating Profit
Second Quarter 2024 Compared to Second Quarter 2023
$ in millions
Construction & Forestr
y
Second Quarter
$ in millions 2024 2023 % Chan
g
e
Net sales $ 3,844 $ 4,112 -7%
Operatin
g
profit $ 668 $ 838 -20%
Operatin
g
mar
g
in 17.4% 20.4%
Construction and forestry sales decreased for the quarter due to lower shipment volumes. Operating
profit decreased due to lower shipment volumes and higher SA&G and R&D expenses.
Construction & Forestry Operating Profit
Second Quarter 2024 Compared to Second Quarter 2023
$ in millions
Financial Services
Second Quarter
$ in millions 2024 2023 % Chan
g
e
Net income $ 162 $ 28 479%
Financial services net income for the quarter increased due to income earned on higher average
portfolio balances, partially offset by a higher provision for credit losses and less-favorable financing
spreads. The results of the prior period were also affected by a correction of the accounting treatment for
financing incentives offered to John Deere dealers. The cumulative effect of this correction, $173 million
pretax ($135 million after-tax), was recorded in the second quarter of 2023.
Industr
y
Outlook for Fiscal 2024
A
g
riculture & Turf
U.S. & Canada:
Lar
g
e A
g
Down ~ 15%
Small A
g
& Turf Down ~ 10%
Europe Down ~ 15%
South America
(
Tractors & Combines
)
Down 15 to 20%
A
sia Down moderatel
y
Construction & Forestr
y
U.S. & Canada:
Construction Equipment Flat to Down 5%
Compact Construction Equipmen
t
Flat
Global Forestr
y
Down ~ 10%
Global Roadbuildin
g
Flat to Down 5%
Deere Se
g
ment Outlook for Fiscal 2024
Currency Price
$ in millions Net Sales Translation Realization
Production & Precision Ag Down 20% to 25% ~ Flat +1.5%
Small Ag & Turf Down 20% to 25% ~ Fla
t
+1.5%
Construction & Forestry Down 5% to 10% ~ Flat +1.5%
Financial Services Net Income ~$ 770
Financial Services. Fiscal-year 2024 net income attributable to Deere & Company for the financial
services operations is forecasted to be approximately $770 million. Results are expected to be higher
than fiscal year 2023 due to income earned on a higher average portfolio, partially offset by a higher
provision for credit losses and less-favorable financing spreads. A correction of the accounting treatment
for financing incentives offered to John Deere dealers impacted 2023 financial results. The cumulative
effect of this correction, $173 million pretax ($135 million after-tax), was recorded in the second quarter of
2023.
FORWARD-LOOKING STATEMENTS
Certain statements contained herein, including in the section entitled “Company Outlook & Summary,”
“Industry Outlook,” and “Deere Segment Outlook,” relating to future events, expectations, and trends
constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995
and involve factors that are subject to change, assumptions, risks, and uncertainties that could cause
actual results to differ materially. Some of these risks and uncertainties could affect all lines of the
company’s operations generally while others could more heavily affect a particular line of business.
Forward-looking statements are based on currently available information and current assumptions,
expectations, and projections about future events and should not be relied upon. Except as required by
law, the company expressly disclaims any obligation to update or revise its forward-looking statements.
Many factors, risks, and uncertainties could cause actual results to differ materially from these forward-
looking statements. Among these factors are risks related to:
changes in and compliance with U.S., foreign and international laws, regulations, and policies relating
to trade, economic sanctions, data privacy, spending, taxing, banking, monetary, environmental
(including climate change and engine emissions), and farming policies;
political, economic, and social instability of the geographies in which the company operates, including
the ongoing war between Russia and Ukraine and the conflict in the Middle East;
adverse macroeconomic conditions, including unemployment, inflation, rising interest rates, changes
in consumer practices due to slower economic growth, and regional or global liquidity constraints;
worldwide demand for food and different forms of renewable energy;
the ability to execute business strategies, including the company’s Smart Industrial Operating Model,
Leap Ambitions, and mergers and acquisitions;
the ability to understand and meet customers’ changing expectations and demand for John Deere
products and solutions;
accurately forecasting customer demand for products and services and adequately managing
inventory;
the ability to integrate new technology, including automation and machine learning, and deliver
precision technology and solutions to customers;
changes to governmental communications channels (radio frequency technology);
the ability to adapt in highly competitive markets;
dealer practices and their ability to manage distribution of John Deere products and support and
service precision technology solutions;
changes in climate patterns, unfavorable weather events, and natural disasters;
governmental and other actions designed to address climate change in connection with a transition to
a lower-carbon economy;
higher interest rates and currency fluctuations which could adversely affect the U.S. dollar, customer
confidence, access to capital, and demand for John Deere products and solutions;
availability and price of raw materials, components, and whole goods;
delays or disruptions in the company’s supply chain;
our equipment fails to perform as expected, which could result in warranty claims, post-sales repairs
or recalls, product liability litigation, and regulatory investigations;
the ability to attract, develop, engage, and retain qualified personnel;
security breaches, cybersecurity attacks, technology failures, and other disruptions to John Deere
information technology infrastructure and products;
loss of or challenges to intellectual property rights;
legislation introduced or enacted that could affect the company’s business model and intellectual
property, such as right to repair or right to modify legislation;
investigations, claims, lawsuits, or other legal proceedings;
events that damage the company’s reputation or brand;
the agricultural business cycle, which can be unpredictable and is affected by factors such as world
grain stocks, available farm acres, acreage planted, soil conditions, harvest yields, prices for
commodities and livestock, input costs, and availability of transport for crops; and
housing starts and supply, real estate and housing prices, levels of public and non-residential
construction, and infrastructure investment.
Further information concerning the company and its businesses, including factors that could materially
affect the financial results, is included in the company’s filings with the SEC (including, but not limited to,
the factors discussed in Item 1A. “Risk Factors” of the company’s most recent Annual Report on Form 10-
K and subsequent Quarterly Reports on Form 10-Q). There also may be other factors that the company
cannot anticipate or that are not described herein because the company does not currently perceive them
to be material.
DEERE & COMPANY
SECOND QUARTER 2024 PRESS RELEASE
(In millions of dollars) Unaudited
Three Months Ended Six Months Ended
A
pril 28
A
pril 30 %
A
pril 28
A
pril 30 %
2024 2023 Chan
g
e 2024 2023 Chan
g
e
Net sales and revenues:
Production & precision a
g
net sales $ 6,581 $ 7,822 -16 $ 11,430 $13,021 -12
Small a
g
& turf net sales 3,185 4,145 -23 5,610 7,146 -21
Construction & forestr
y
net sales 3,844 4,112 -7 7,057 7,314 -4
Financial services revenues 1,395 1,107 +26 2,770 2,147 +29
Other revenues 230 201 +14 553 410 +35
Total net sales and revenues $15,235 $17,387 -12 $ 27,420 $30,038 -9
Operatin
g
profit: *
Production & precision a
g
$ 1,650 $ 2,170 -24 $ 2,695 $ 3,378 -20
Small a
g
& turf 571 849 -33 897 1,296 -31
Construction & forestr
y
668 838 -20 1,234 1,463 -16
Financial services 209 41 +410 466 279 +67
Total operatin
g
profit 3,098 3,898 -21 5,292 6,416 -18
Reconcilin
g
items ** 23
(
47
)
49
(
69
)
Income taxes
(
751
)
(
991
)
-24
(
1,220
)
(
1,528
)
-20
Net income attributable to Deere & Compan
y
$ 2,370 $ 2,860 -17 $ 4,121 $ 4,819 -14
* Operating profit is income from continuing operations before corporate expenses, certain external
interest expenses, certain foreign exchange gains and losses, and income taxes. Operating profit for
financial services includes the effect of interest expense and foreign exchange gains or losses.
** Reconciling items are primarily corporate expenses, certain interest income and expenses, certain
foreign exchange gains and losses, pension and postretirement benefit costs excluding the service
cost component, equity in income of unconsolidated affiliates, and net income attributable to
noncontrolling interests.
DEERE & COMPANY
STATEMENTS OF CONSOLIDATED INCOME
For the Three and Six Months Ended April 28, 2024 and April 30, 2023
(In millions of dollars and shares except per share amounts) Unaudited
Three Months Ended Six Months Ended
2024 2023 2024 2023
Net Sales and Revenues
Net sales $ 13,610 $ 16,079 $ 24,097 $ 27,481
Finance and interest income 1,387 1,079 2,746 2,073
Other income 238 229 577 484
Total 15,235 17,387 27,420 30,038
Costs and Expenses
Cost of sales 9,157 10,730 16,357 18,663
Research and development expenses 565 547 1,098 1,043
Sellin
g
, administrative and
g
eneral expenses 1,265 1,330 2,330 2,283
Interest expense 836 569 1,638 1,049
Other operatin
g
expenses 295 363 664 660
Total 12,118 13,539 22,087 23,698
Income of Consolidated Group before Income Taxes 3,117 3,848 5,333 6,340
Provision for income taxes 751 991 1,220 1,528
Income of Consolidated Group 2,366 2,857 4,113 4,812
Equit
y
in income of unconsolidated affiliates 2 2 3 3
Net Income 2,368 2,859 4,116 4,815
Less: Net loss attributable to noncontrollin
g
interests
(
2
)
(
1
)
(
5
)
(
4
)
Net Income Attributable to Deere & Compan
y
$ 2,370 $ 2,860 $ 4,121 $ 4,819
Per Share Data
Basic $ 8.56 $ 9.69 $ 14.80 $ 16.26
Diluted 8.53 9.65 14.74 16.18
Dividends declared 1.47 1.25 2.94 2.45
Dividends paid 1.47 1.20 2.82 2.33
Avera
g
e Shares Outstandin
g
Basic 276.8 295.1 278.4 296.3
Diluted 277.9 296.5 279.5 297.8
See Condensed Notes to Interim Consolidated Financial Statements.
DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions of dollars) Unaudited
A
pril 28 October 29
A
pril 30
2024 2023 2023
Assets
Cash and cash equivalents $ 5,553 $ 7,458 $ 5,267
Marketable securities 1,094 946 856
Trade accounts and notes receivable
–
net 8,880 7,739 9,971
Financin
g
receivables
–
net 45,278 43,673 38,954
Financin
g
receivables securitized
–
net 7,262 7,335 5,659
Other receivables 2,535 2,623 2,593
Equipment on operatin
g
leases
–
ne
t
6,965 6,917 6,524
Inventories 8,443 8,160 9,713
Propert
y
and equipment
–
net 7,034 6,879 6,288
Goodwill 3,936 3,900 3,963
Other intan
g
ible assets
–
net 1,064 1,133 1,222
Retirement benefits 3,056 3,007 3,519
Deferred income taxes 1,936 1,814 1,308
Other assets 2,592 2,503 2,510
Total Assets $ 105,628 $ 104,087 $ 98,347
Liabilities and Stockholders’ Equit
y
Liabilities
Short-term borrowin
g
s $ 17,699 $ 17,939 $ 17,109
Short-term securitization borrowin
g
s 6,976 6,995 5,379
A
ccounts pa
y
able and accrued expenses 14,609 16,130 14,716
Deferred income taxes 491 520 511
Lon
g
-term borrowin
g
s 40,962 38,477 35,611
Retirement benefits and other liabilities 2,105 2,140 2,520
Total liabilities 82,842 82,201 75,846
Redeemable noncontrollin
g
interest 98 97 102
Stockholders’ Equit
y
Total Deere & Compan
y
stockholders’ equit
y
22,684 21,785 22,395
Noncontrollin
g
interests 4 4 4
Total stockholders’ equit
y
22,688 21,789 22,399
Total Liabilities and Stockholders’ Equit
y
$ 105,628 $ 104,087 $ 98,347
See Condensed Notes to Interim Consolidated Financial Statements.
DEERE & COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
For the Six Months Ended April 28, 2024 and April 30, 2023
(In millions of dollars) Unaudited
2024 2023
Cash Flows from Operatin
g
Activities
Net income $ 4,116 $ 4,815
Adjustments to reconcile net income to net cash provided by (used for)
operatin
g
activities:
Provision
(
credit
)
for credit losses 131
(
89
)
Provision for depreciation and amortization 1,045 995
Other non-cash ad
j
ustments
(
Note 1
)
173
Share-based compensation expense 104 54
Credit for deferred income taxes
(
120
)
(
377
)
Chan
g
es in assets and liabilities:
Receivables related to sales
(
2,469
)
(
4,407
)
Inventories
(
409
)
(
982
)
A
ccounts pa
y
able and accrued expenses
(
1,300
)
(
313
)
A
ccrued income taxes pa
y
able/receivable
(
29
)
(
96
)
Retirement benefits
(
208
)
(
68
)
Other 83 148
Net cash provided b
y
(
used for
)
operatin
g
activities 944
(
147
)
Cash Flows from Investin
g
Activities
Collections of receivables
(
excludin
g
receivables related to sales
)
13,703 12,593
Proceeds from maturities and sales of marketable securities 200 98
Proceeds from sales of equipment on operatin
g
leases 1,011 993
Cost of receivables acquired
(
excludin
g
receivables related to sales
)
(
14,091
)
(
13,451
)
Purchases of marketable securities
(
432
)
(
188
)
Purchases of propert
y
and equipmen
t
(
719
)
(
584
)
Cost of equipment on operatin
g
leases acquired
(
1,369
)
(
1,229
)
Collateral on derivatives
–
net 96 367
Other
(
69
)
(
93
)
Net cash used for investin
g
activities
(
1,670
)
(
1,494
)
Cash Flows from Financin
g
Activities
Net proceeds in shor
t
-term borrowin
g
s
(
ori
g
inal maturities three months or less
)
58 3,992
Proceeds from borrowin
g
s issued
(
ori
g
inal maturities
g
reater than three months
)
10,189 4,868
Pa
y
ments of borrowin
g
s
(
ori
g
inal maturities
g
reater than three months
)
(
8,139
)
(
3,567
)
Repurchases of common stock
(
2,422
)
(
2,546
)
Dividends paid
(
796
)
(
697
)
Other
(
52
)
(
33
)
Net cash provided b
y
(
used for
)
financin
g
activities
(
1,162
)
2,017
Effect of Exchange Rate Changes on Cash, Cash Equivalents, and
Restricted Cash
(
5
)
70
Net Increase
(
Decrease
)
in Cash, Cash Equivalents, and Restricted Cash
(
1,893
)
446
Cash, Cash Equivalents, and Restricted Cash at Be
g
innin
g
of Period 7,620 4,941
Cash, Cash Equivalents, and Restricted Cash at End of Period $ 5,727 $ 5,387
See Condensed Notes to Interim Consolidated Financial Statements.
DEERE & COMPANY
Condensed Notes to Interim Consolidated Financial Statements
(
In millions of dollars
)
Unaudited
(1) In the second quarter of 2023, the company corrected the accounting treatment for financing
incentives offered to John Deere dealers, which impacted the timing of expense recognition and the
presentation of incentive costs in the consolidated financial statements. The cumulative effect of this
correction, $173 million pretax ($135 million after-tax), was recorded in the second quarter of 2023 in
“Selling, administrative and general expenses” by financial services.
(2) The consolidated financial statements represent the consolidation of all Deere & Company’s
subsidiaries. The supplemental consolidating data is presented for informational purposes.
Transactions between the equipment operations and financial services have been eliminated to arrive
at the consolidated financial statements. In the supplemental consolidating data in Note 3 to the
financial statements, the “Equipment Operations” represents the enterprise without “Financial
Services”, which include the company’s production and precision agriculture operations, small
agriculture and turf operations, and construction and forestry operations, and other corporate assets,
liabilities, revenues, and expenses not reflected within “Financial Services.”
DEERE & COMPANY
(3) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENTS OF INCOME
For the Three Months Ended April 28, 2024 and April 30, 2023
(In millions of dollars) Unaudited
EQUIPMENT
FINANCIAL
OPERATIONS
SERVICES ELIMINATIONS CONSOLIDATED
2024 2023 2024 2023 2024 2023 2024 2023
Net Sales and Revenues
Net sales $ 13,610 $ 16,079 $ 13,610 $ 16,079
Finance and interest income 129 121 $ 1,496 $ 1,206 $ (238) $ (248) 1,387 1,079
1
Other income 198 185 92 91 (52) (47) 238 229
2, 3
Total 13,937 16,385 1,588 1,297 (290) (295) 15,235 17,387
Costs and Expenses
Cost of sales 9,164 10,737 (7) (7) 9,157 10,730
4
Research and development expenses 565 547 565 547
Selling, administrative and general expenses 1,007 935 260 397 (2) (2) 1,265 1,330
4
Interest expense 114 103 780 540 (58) (74) 836 569
1
Interest compensation to Financial Services 180 174 (180) (174)
1
Other operating expenses 1 85 337 316 (43) (38) 295 363
3, 5
Total 11,031 12,581 1,377 1,253 (290) (295) 12,118 13,539
Income before Income Taxes 2,906 3,804 211 44 3,117 3,848
Provision for income taxes 700 974 51 17 751 991
Income after Income Taxes 2,206 2,830 160 27 2,366 2,857
Equity in income of unconsolidated affiliates 1 2 1 2 2
Net Income 2,206 2,831 162 28 2,368 2,859
Less: Net loss attributable to
noncontrolling interests (2) (1) (2) (1)
Net Income Attributable to Deere & Company $ 2,208 $ 2,832 $ 162 $ 28 $ 2,370 $ 2,860
1
Elimination of intercompany interest income and expense.
2
Elimination of Equipment Operations’ margin from inventory transferred to equipment on operating leases.
3
Elimination of income and expense between Equipment Operations and Financial Services related to intercompany guarantees of
investments in certain international markets and intercompany service revenues and expenses.
4
Elimination of intercompany service fees.
5
Elimination of Financial Services’ lease depreciation expense related to inventory transferred to equipment on operating leases.
DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENTS OF INCOME
For the Six Months Ended April 28, 2024 and April 30, 2023
(In millions of dollars) Unaudited
EQUIPMENT
FINANCIAL
OPERATIONS
SERVICES ELIMINATIONS CONSOLIDATED
2024 2023 2024 2023 2024 2023 2024 2023
Net Sales and Revenues
Net sales $ 24,097 $ 27,481 $ 24,097 $ 27,481
Finance and interest income 285 234 $ 2,929 $ 2,274 $ (468) $ (435) 2,746 2,073
1
Other income 487 417 211 268 (121) (201) 577 484
2, 3
Total 24,869 28,132 3,140 2,542 (589) (636) 27,420 30,038
Costs and Expenses
Cost of sales 16,371 18,675 (14) (12) 16,357 18,663
4
Research and development expenses 1,098 1,043 1,098 1,043
Selling, administrative and general expenses 1,882 1,719 453 569 (5) (5) 2,330 2,283
4
Interest expense 223 204 1,542 983 (127) (138) 1,638 1,049
1
Interest compensation to Financial Services 341 297 (341) (297)
1
Other operating expenses 91 137 675 707 (102) (184) 664 660
3, 5
Total 20,006 22,075 2,670 2,259 (589) (636) 22,087 23,698
Income before Income Taxes 4,863 6,057 470 283 5,333 6,340
Provision for income taxes 1,117 1,455 103 73 1,220 1,528
Income after Income Taxes 3,746 4,602 367 210 4,113 4,812
Equity in income of unconsolidated affiliates 1 3 2 3 3
Net Income 3,746 4,603 370 212 4,116 4,815
Less: Net loss attributable to
noncontrolling interests (5) (4) (5) (4)
Net Income Attributable to Deere & Company $ 3,751 $ 4,607 $ 370 $ 212 $ 4,121 $ 4,819
1
Elimination of intercompany interest income and expense.
2
Elimination of Equipment Operations’ margin from inventory transferred to equipment on operating leases.
3
Elimination of income and expense between Equipment Operations and Financial Services related to intercompany guarantees of
investments in certain international markets and intercompany service revenues and expenses.
4
Elimination of intercompany service fees.
5
Elimination of Financial Services’ lease depreciation expense related to inventory transferred to equipment on operating leases.
DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEETS
(In millions of dollars) Unaudited
EQUIPMENT
FINANCIAL
OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED
Apr 28 Oct 29 Apr 30 Apr 28 Oct 29 Apr 30 Apr 28 Oct 29 Apr 30 Apr 28 Oct 29 Apr 30
2024 2023 2023 2024 2023 2023 2024 2023 2023 2024 2023 2023
Assets
Cash and cash equivalents $ 3,800 $ 5,720 $ 3,587 $ 1,753 $ 1,738 $ 1,680 $ 5,553 $ 7,458 $ 5,267
Marketable securities 148 104 14 946 842 842 1,094 946 856
Receivables from Financial
Services 4,480 4,516 5,899 $(4,480) $(4,516) $(5,899)
6
Trade accounts and notes
receivable
–
net 1,320 1,320 1,562 10,263 8,687 10,422 (2,703) (2,268) (2,013) 8,880 7,739 9,971
7
Financing receivables
–
net 80 64 54 45,198 43,609 38,900 45,278 43,673 38,954
Financing receivables
securitized
–
net 1 7,262 7,335 5,658 7,262 7,335 5,659
Other receivables 1,822 1,813 2,201 760 869 481 (47) (59) (89) 2,535 2,623 2,593
7
Equipment on operating
leases
–
net 6,965 6,917 6,524 6,965 6,917 6,524
Inventories 8,443 8,160 9,713 8,443 8,160 9,713
Property and equipment
–
net 6,999 6,843 6,254 35 36 34 7,034 6,879 6,288
Goodwill 3,936 3,900 3,963 3,936 3,900 3,963
Other intangible assets
–
net 1,064 1,133 1,222 1,064 1,133 1,222
Retirement benefits 2,980 2,936 3,450 77 72 69 (1) (1) 3,056 3,007 3,519
8
Deferred income taxes 2,210 2,133 1,355 71 68 59 (345) (387) (106) 1,936 1,814 1,308
9
Other assets 2,105 1,948 1,961 504 559 564 (17) (4) (15) 2,592 2,503 2,510
Total Assets $39,387 $40,590 $41,236 $73,834 $70,732 $65,233 $(7,593) $(7,235) $(8,122) $ 105,628 $104,087 $98,347
Liabilities and
Stockholders’ Equity
Liabilities
Short-term borrowings $ 1,055 $ 1,230 $ 1,755 $16,644 $16,709 $15,354 $ 17,699 $ 17,939 $17,109
Short-term securitization
borrowings 6,976 6,995 5,379 6,976 6,995 5,379
Payables to Equipment
Operations 4,480 4,516 5,899 $(4,480) $(4,516) $(5,899)
6
A
ccounts payable and
accrued expenses 13,771 14,862 13,759 3,605 3,599 3,074 (2,767) (2,331) (2,117) 14,609 16,130 14,716
7
Deferred income taxes 421 452 402 415 455 215 (345) (387) (106) 491 520 511
9
Long-term borrowings 6,575 7,210 7,310 34,387 31,267 28,301 40,962 38,477 35,611
Retirement benefits and
othe
r
liabilities 1,995 2,032 2,410 111 109 110 (1) (1) 2,105 2,140 2,520
8
Total liabilities 23,817 25,786 25,636 66,618 63,650 58,332 (7,593) (7,235) (8,122) 82,842 82,201 75,846
Redeemable noncontrolling
interest 98 97 102 98 97 102
Stockholders’ Equity
Total Deere & Company
stockholders’ equity 22,684 21,785 22,395 7,216 7,082 6,901 (7,216) (7,082) (6,901) 22,684 21,785 22,395
10
Noncontrolling interests 4 4 4 4 4 4
Financial Services equity (7,216) (7,082) (6,901) 7,216 7,082 6,901
10
Adjusted total stockholders' equit
y
15,472 14,707 15,498 7,216 7,082 6,901 22,688 21,789 22,399
Total Liabilities and
Stockholders’ Equity $39,387 $40,590 $41,236 $73,834 $70,732 $65,233 $(7,593) $(7,235) $(8,122) $ 105,628 $104,087 $98,347
6
Elimination of receivables / payables between Equipment Operations and Financial Services.
7
Primarily reclassification of sales incentive accruals on receivables sold to Financial Services.
8
Reclassification of net pension assets / liabilities.
9
Reclassification of deferred tax assets / liabilities in the same taxing jurisdictions.
10
Elimination of Financial Services’ equity.
DEERE & COMPANY
SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENTS OF CASH FLOWS
For the Six Months Ended April 28, 2024 and April 30, 2023
(In millions of dollars) Unaudited
EQUIPMENT FINANCIAL
OPERATIONS SERVICES ELIMINATIONS CONSOLIDATED
2024 2023 2024 2023 2024 2023 2024 2023
Cash Flows from Operating Activities
Net income $ 3,746 $ 4,603 $ 370 $ 212 $ 4,116 $ 4,815
A
djustments to reconcile net income to net cash provided by
(used for) operating activities:
Provision (credit) for credit losses 10 4 121 (93) 131 (89)
Provision for depreciation and amortization 608 565 509 500 $ (72) $ (70) 1,045 995
11
Other non-cash adjustments (Note 1) 173 173
Share-based compensation expense 104 54 104 54
12
Distributed earnings of Financial Services 247 12 (247) (12)
13
Credit for deferred income taxes (74) (304) (46) (73) (120) (377)
Changes in assets and liabilities:
Receivables related to sales (58) (255) (2,411) (4,152) (2,469) (4,407)
14, 16
Inventories (300) (910) (109) (72) (409) (982)
15
Accounts payable and accrued expenses (1,012) 161 147 243 (435) (717) (1,300) (313)
16
Accrued income taxes payable/receivable (20) (97) (9) 1 (29) (96)
Retirement benefits (205) (67) (3) (1) (208) (68)
Othe
r
89 54 65 103 (71) (9) 83 148
11, 12, 15
Net cash provided by (used for) operating activities 3,031 3,766 1,154 1,065 (3,241) (4,978) 944 (147)
Cash Flows from Investing Activities
Collections of receivables (excluding receivables related
to sales) 14,175 13,169 (472) (576) 13,703 12,593
14
Proceeds from maturities and sales of marketable securities 58 62 142 36 200 98
Proceeds from sales of equipment on operating leases 1,011 993 1,011 993
Cost of receivables acquired (excluding receivables related
to sales) (14,238) (13,584) 147 133 (14,091) (13,451)
14
Purchases of marketable securities (226) (21) (206) (167) (432) (188)
Purchases of property and equipment (718) (583) (1) (1) (719) (584)
Cost of equipment on operating leases acquired (1,516) (1,327) 147 98 (1,369) (1,229)
15
Decrease (increase) in investment in Financial Services 10 (799) (10) 799
17
Increase in trade and wholesale receivables (3,171) (5,310) 3,171 5,310
14
Collateral on derivatives
–
net 96 367 96 367
Othe
r
(68) (119) (2) 25 1 1 (69) (93)
Net cash used for investing activities (944) (1,460) (3,710) (5,799) 2,984 5,765 (1,670) (1,494)
Cash Flows from Financing Activities
Net proceeds (payments) in short-term borrowings (original
maturities three months or less) 189 (225) (131) 4,217 58 3,992
Change in intercompany receivables/payables 31 932 (31) (932)
Proceeds from borrowings issued (original maturities greater
than three months) 34 41 10,155 4,827 10,189 4,868
Payments of borrowings (original maturities greater than
three months) (1,012) (47) (7,127) (3,520) (8,139) (3,567)
Repurchases of common stock (2,422) (2,546) (2,422) (2,546)
Capital Investment from Equipment Operations (10) 799 10 (799)
17
Dividends paid (796) (697) (247) (12) 247 12 (796) (697)
13
Othe
r
(27) (5) (25) (28) (52) (33)
Net cash provided by (used for) financing activities (4,003) (2,547) 2,584 5,351 257 (787) (1,162) 2,017
Effect of Exchange Rate Changes on Cash, Cash
Equivalents, and Restricted Cash 62 (5) 8 (5) 70
Net Increase (Decrease) in Cash, Cash Equivalents, and
Restricted Cash (1,916) (179) 23 625 (1,893) 446
Cash, Cash Equivalents, and Restricted Cash at
Beginning o
f
Period 5,755 3,781 1,865 1,160 7,620 4,941
Cash, Cash Equivalents, and Restricted Cash at
End o
f
Period $ 3,839 $ 3,602 $ 1,888 $ 1,785 $ 5,727 $ 5,387
11
Elimination of depreciation on leases related to inventory transferred to equipment on operating leases.
12
Reclassification of share-based compensation expense.
13
Elimination of dividends from Financial Services to the Equipment Operations, which are included in the Equipment Operations operating activities.
14
Primarily reclassification of receivables related to the sale of equipment.
15
Reclassification of direct lease agreements with retail customers.
16
Reclassification of sales incentive accruals on receivables sold to Financial Services.
17
Elimination of change in investment from Equipment Operations to Financial Services.
